CSR, or corporate social responsibility, has become a buzzword in both modern management and public relations. But Dr Anusorn Sangnimnuan, president of Bangchak Petroleum Plc, says that CSR means more to the petroleum refiner and marketer than just polishing its public relations credentials.

In fact, CSR is quite a matter of life and death for Bangchak, whose plants in Bangkok are currently the capital's only oil-refining facilities.

 "CSR is incorporated into our vision. It's an essential part of good corporate governance. It has been part of our corporate culture since the firm was set up in 1985."

"In other words, we've been genuinely serious about environmental protection and other community and societal interests since long before CSR became a popular term," said Anusorn, who joined Bangchak the year it was founded.

Anusorn, who holds a PhD in chemical engineering from Australia's Monash University, said the site where Bangchak's refinery was located had been home to one of Thailand's first oil refineries, built some four decades ago. In the 1960's, Bangchak was still a relatively quiet suburb of Bangkok. Few people lived there.

The government took over the site from Summit oil company when General Prem Tinnasulalonda was premier in the 1980s.

The move was part of a government policy to ensure the country's energy security.

At about the same time, Thai Oil Plc built its refinery in Sri Racha in Chon Buri. Those two plants were the country's first two refineries.

"In other words, the plant was already here before there was a large community around this place [near Sukhumvit 64]. As a result, we've always adhered to a high standard of safety and environmental protection.

"For instance, we require the use of petroleum with less sulphur than the legal maximum to ensure that we don't have problems with air or water quality around here.

"To prevent serious consequences resulting from accidents, our refinery operators are also instructed to shut down all operations in under two or three minutes if they're not sure about safety. Other refineries would take more time to make such a decision since an unnecessary shutdown means higher costs." "In addition, we plan to turn a waste-water treatment plant into a garden to further improve the landscape and quality of life around here."

"Currently our key performance indicator is to work towards getting zero complaints from residents in the nearby community.

"At this point we still get one or two a year about bad smells or black smoke. However, we found that the smoke, for instance, wasn't caused by the refinery but by a nearby plywood plant," said Anusorn.

In terms of landscaping, Bangchak has done a fine job of turning its complex of oil-storage tanks and refining facilities into an environmentally friendly place. For instance, a cluster of towering oil tanks have been painted white and are hidden behind large trees and other greenery.

Anusorn said it would cost more than Bt100 billion to move the company's facilities.

At present Bangchak has no relocation policy.

The company is also investing in a new cracking unit to convert bunker oil into more expensive diesel.

Once the expansion is completed in 2008, the company's refining capacity will be 120,000 barrels per day.

Since oil prices have skyrocketed, Bangchak has seen its market share for petrol rise from 57 million litres per month to over 65 million litres. Bangchak is currently the only company selling the cheaper 91 and 95 gasohols, a mix of petrol (90 per cent) and ethanol (10 per cent).

Ethanol is produced locally using sugar cane and cassava as raw materials. The company has also launched its own bio-diesel, a mix of diesel (95 per cent) and palm oil or recycled cooking oil.

At present, the company has a 12-per-cent share of the Thai petrol market.

Nophakhun Limsamarnphun

nop1122@yahoo.com