The Rompetrol GroupCSR Lessons

May 17, 2011

The Rompetrol Group (TRG) considers social responsibility as voluntary contribution to development of the society, connected with the basic activity of the company, the international laws and the resources of the group.

The commitment to CSR provides a guiding framework for all TRG management decisions and we focus particularly on harnessing industry best practice by encouraging Company and Community participation in corporate citizenship projects focused on raising the standards in the areas of business success, environment, health and safety, community responsibility, youth education and leadership.

Guiding principles of Rompetrol CSR Policy:

Respect Employees: To respect employees and help enhance their life through development opportunities and employment practices grounded on equal opportunities and Occupational and Safety Best Practices.Ongoing Involvement: To involve at an appropriate level the authorities, community, and other concerned stakeholders in all decisions that affect them.Health and Safety: To ensure the health and safety of our employees, suppliers and the communities in which we operate.Risk Management: To identify, assess, manage and mitigate risks to our host communities, employees, contractors, the environment and our business.Education and Leadership: To promote the spirit of leadership, especially among young people, through civic involvement and educational activities that encourages socially responsible pursuits and entrepreneurship.Respect local communities: To respect, protect and promote the human rights, culture, customs and values of the communities in which we operate.Best practice: To adhere to leading global Socially Responsible best practices. In particular, we are guided by the United Nations Global Compact’s ten principles in the areas of human rights, labor, the environment and anti-corruption.

What should Rompetrol sponsor ?

Research

• Sponsorship survey

Objectives

1. To evaluate the social context for oil company sponsorships

2. To identify appropriate causes and events for Rompetrol sponsorship

3. To determine which causes are more likely to appeal to Rompetrol targets creating goodwill

4. To obtain strategic information for designing both long-term and short-term cost effective sponsorship themes.

Method

• Quantitative research

• Face-to-face interviews at respondent’s homes

• Structured questionnaire based on input from qual. research.

Sample

1. National representative sample of urban general public (N=1,000):

18–55 y.o.

Personal income over 600 RON

2. Special focus sample (N=73):

Urban population

18 – 40 y.o.

Higher education

Car owners

Personal income over 1000 €

Fieldwork

• December 19th 2008 – January 8th 2009

7

Public preferences for Rompetrol sponsorships

Base 1,000

Based on respondent selecting 8-10 from list of 34 causes identified in qualitative research.

General public

Base 90

Drivers 18-40 very similar to General public.

18–40Higher ed.Higher inc.Car owners

High end

target66%

56%

58%

72%

47%

59%

63%

46%

44%

51%

51%

37%

Interpretation

Clear appeal of eco causes among high end users.

38%

44%

45%

53%

53%

58%

59%

60%

61%

61%

67%

69%

Sport halls in school

Fuel for ambulances

Cleaning polluted area

Renov. schools

First aid on road

Collect waste

Parks

Hospit. renov.

Trees

Med. research

Hospit. equip.

SMURD

Continues on next page

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Overall preference segments

Base 1,000

Based on respondents ranking their preferences. Subsequently preferences were clustered according to broader topical areas such as health, eco, edu. etc.

Health

50%

Eco 26%

Edu. 13%

Sport

5%

Car racing

Art & culture

Pop/Rock concerts

3% 2%

1%

General public

Drivers 18-40 very similar to General public.

Health

41%

Interpretation

More balanced distribution of preferences among high end target. Multiple theme sponsorship is more effective among this target, whereas single or double theme platforms are sufficient for the general public.

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Prioritizing preferences: how the public would distribute 1,000 €uro

Base 1,000

Health 400 €

Eco

200 €

Art & culture

160 €

Sport

160 €

Entertainment 80 €

General public

Drivers 18-40 very similar to General public.

Health 417 €

Eco250

€

Art & culture167 €

Sport

83 €

Entertainment 83 €

High end target

Base 90

18–40Higher ed.Higher inc.Car owners

Based on the study, The Rompetrol Group launched in May 2009 its CSR platform “Energy comes from your heart” which includes a national program, “Together for each and everyone”, and separate programs in the fields of healthcare and environment protection, the two directions the Group has decided to support.

The national program “Together for each and everyone”www.impreunapentrufiecare.ro

Eligible institutions for environment protection projects:- schools, city halls, NGOs etc.

Eligible activities:-preserving or improving existing environmental conditions at the local level through various activities (innovative projects that aim at improving the quality of air, water and environment in a particular area, develop heating systems for public buildings - dispensaries, schools using alternative sources of energy etc.).

In 2010:- 509 projects registered on the website (322 in the healthcare field and 187 in environment protection);- 20 projects (13 in healthcare, 7 in environment protection) located in Alba, Arges, Arad, Bucharest, Buzau, Bacau, Brasov, Caras-Severin, Constanta, Galati, Mures, Sibiu, Salaj were selected for implementation. Total amount allocated – 300,000 USD (without communication costs).

External CSR

RESULTS 2010 - “Together for each and everyone”www.impreunapentrufiecare.ro

* 13 Medical Units (5 in the rural area, 8 in the urban area) refurnished and equipped with medical furniture/devices (350 volunteers involved).* Rehabilitation of green areas, solar panels, plants for wastewater treatment (770 volunteers involved) ; organization of 22 educational activities for children, 5 exhibitions with paintings made by children, 8 school competitions.* Over 50 awareness seminars were organized (on specific environmental or healthcare subjects) - on average 2/project.* Materials distributed: over 1000 T-shirts and caps, 100 art albums (donated by Rompetrol for the libraries of the schools involved in the projects), notebooks, pens (over 1000).* 1500 leaflets on healthcare/environmental themes .The projects were mentioned in (written press, online, blogs) over 500 articles or TV programmes.Beneficiaries of the projects implemented in 2010: over 100,000 people

External CSR – The Rompetrol Group

Together for each and everyone 2010ECO H2O – The first ECO WasteWater Treatment PlantViscri, Brasov county

Together for each and everyone 2010Solar panels on Medicine University, Galati

Together for each and everyone 2010Solar panels on “Constantin Brancoveanu” Highschool, Bucharest

How Rompetrol communicated the national program ?

-Internal channels – through Intranet, radio PEM, internal magazine, emails, internal meetings etc.

-Externally – TV & newspapers ads, press releases, conferences/ meetings (with students, city halls representatives, doctors, NGOs representatives);

- blogs, discussion groups, socializing networks (Facebook, YouTube);- direct contacts with NGOs, Physicians Associations, Councils of Mayors etc.;

Media Rate 2010 (CSR without facebook) = 1,148 K euro

The national program “Together for each and everyone”www.impreunapentrufiecare.ro

CSR Lessons:

-Reach core target audience by using direct communication channels

- Change communication mix from TV/print to social media

- Empower partners & beneficiaries of projects to take decisions and become promoters of program

- Increase sustainability level

- Involve NGO’s in direct evaluation and management of projects

- Involve general public in voting process and evaluation

- Let results speak for themselves: change promotion/sponsorship ratio

The national program “Together for each and everyone”www.impreunapentrufiecare.ro

Thank you !