Social responsibility is vital for companies to manage social impacts in its areas of operations. Integrating key elements of social responsibility into a management system demonstrates PETRONAS' commitment in managing its social risks and leveraging on opportunities to improve the business.

In PETRONAS, Social Performance is integrated into a management system. It applies the ‘plan’, ‘do’, ‘check’ and ‘act’ (PDCA) cycle towards continual improvement and sustainability of the business. Therefore, Social Performance is a key consideration in business and project decision making. It offers great clarity and guidance to PETRONAS to conduct its business activities as a socially responsible corporate entity.

The focus of this paper is the component of Risk Management. Majority of social risks in PETRONAS are related to human rights which cut across the PETRONAS Social Performance Framework. A robust Social Risk Assessment (SRA) is established by integrating it into a management system. SRA enables projects and businesses to identify risks and impacts, as well as develop and prioritise the appropriate mitigation measures. The paper also discusses other integral elements of Social Performance in a management system.

Social Performance in a management system allows the company to identify and mitigate both actual and potential social risks across projects and facilities lifecycle. Hence, effective mitigation plans can be developed to manage these risks which aim to secure privilege to operate to avoid project delays, cost overrun, and opportunity loss as well as reputation damage. It supports PETRONAS projects to meet requirements for project financing, legislative and voluntary requirements. In addition, PETRONAS is aligning itself to industry's good practices.

In managing social risks, the integration benefits the organisation to improve its performance, productivity, overcoming the barriers to communications, clear accountabilities and reduce cost overruns. It also helps companies to save time, reduce conflicts and ensure performance efficiency and consistency in managing social risks.

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