Community Development and Social Collaboration

Importance

(GRI 3-3a, GRI 3-3b)

In today’s world where businesses are faced with multi-faceted problems and challenges, from increasing economic inequality to the destruction of the environment by toxic industrial pollution , businesses have an important role to play in driving the inclusive and sustainable development of the communities and society. Businesses must avoid negative impacts on communities, society, and the environment, while simultaneously creating business growth.

OR’s business activities are conducted in close proximity to the communities and society. For instance, Café Amazon stores may be located in dense urban communities, and PTT Stations’ business is associated with the use of public roads for oil transport. Such activities of OR may negatively impact the communities and society, such as by the release of pollutants into the environment, or exacerbating traffic conditions that may disturb the quality of life of communities in some areas. There may also be positive impacts, such as the procurement made within local communities that provide income for community members, in accordance with the “S” in OR SDG strategy – SMALL, or opportunities for the small people. Therefore, OR is committed to conducting business responsibly towards the communities and society, along with improving their quality of life.

2023 Target for CSR projects implemented surrounding operation sites

Management Approach

(GRI 3-3c., GRI 3-3d., GRI 3-3e., GRI 3-3f., GRI 413-1)

Sustainability Management Policy and the Corporate Citizenship and Philanthropy Framework

Implementation of all activities related to corporate citizenship and philanthropy fall under the scope of OR’s Sustainability Management Policy, available here: (For additional details, Click) The Policy focuses on ensuring environmentally-friendly business operations and business conduct that is responsible to all groups of stakeholders, and also supports OR’s policy regarding reputational management and corporate social responsibility and philanthropic activities.

Based on this Policy, in 2022, OR developed the Corporate Citizenship and Philanthropic Framework and Manual to define practical guidelines for the systematic and effective implementation of corporate social responsibility projects and activities. The Guideline spells out associated processes, including planning, implementing, and monitoring and evaluation. Practical meetings are organized at the operational level with relevant functions. In addition, OR has studied international standards related to the Business for Societal Impact Framework (B4SI), corporate social responsibility (CSR), creating shared values (CSV), Social Responsibility in Business Operations (CSR in Process), social responsibility beyond the business operation process (CSR after process), and social enterprise (SE) – and committed to aligning our activities with them.

In the development and implementation of all corporate social responsibility and philanthropy projects, OR adheres to the principle of collaboration with the communities and society with the aim of solving problems or creating social development projects and activities. OR utilizes the organization’s capabilities and expertise to create innovation to help raise the quality of life of the communities through OR’s social activities. In this way, we secure not only the trust but also appreciation of communities, ensuring that we have the social license to operate in the long term. OR defines the target group into two levels:

Local Level – Consisting of communities living in areas within a 5-kilometer radius of the operation area.
National Level – Activities outside of the 5-kilometer radius.

Corporate Citizenship and Philanthropic Framework

Implementation of corporate citizenship and philanthropy activities contributes directly to achieving the Company’s “OR 2030 Goals”, which include Living Community, Healthy Environment, and Economic Prosperity and are aligned with the United Nations Sustainability Development Goals (SDGs), specifically corresponding with nine targets, and in addition, SDG 4: Quality Education. In this regard, OR hacos grouped its corporate citizenship and philanthropy activities according to the objectives and characteristics of handling social and environmental issues into three main facets, as well as have included setting indicators to measure various performances. These are as follows:

Facet 1: S-SMALL (Opportunities for Communities) – Conducting business in tandem with creating value for communities in areas surrounding operations.

Facet 2: D-DIVERSIFIED (More Partners, Products and Services) – Creating shared value with communities beyond OR operational areas through designing activities targeted for the wider society and for socio-economic benefits through the country.

Facet 3: G-Green (Low Carbon Business Areas) – Maintaining environmental-friendliness and ensuring efficient management of natural resources.

Under these three main facets of corporate citizenship and philanthropy, OR establishes work plans for the projects and activities to create shared values with the society and community that would be consistent with the nature of business operations of the company. It has the following scope for highlighted operations:

Education: Implementation of educational projects and knowledge sharing activities that leverage OR’s expertise to enable job creation, and/or activities targeting basic knowledge and skills related to social and environmental issues – i.e., health and safety, child and youth education, and waste management.
Social Equality: Implementation of projects and activities supporting social equality, and access to basic needs of all groups through innovation and/or application of OR’s strength. This is to promote community strength and creating opportunities for vulnerable and disadvantaged people.
Product/ Service: Development and distribution of products and services that are socially and environmentally responsible, starting from the upstream of the supply chain, all through to downstream activities that deliver products and services to the society, such as the sourcing of raw materials from the community, promoting health and safety, and upcycling products.

Corporate Citizenship and Philanthropy Guideline

Engaging society and communities, and collaboratively analyzing community issues and needs

OR designs corporate citizenship and philanthropy activities by analyzing the problems and needs of society and communities. We obtain this information through various stakeholder engagement methods, depending on what is appropriate for that stakeholder group. This includes engaging relevant agencies in order to apply the results from public hearings to plan projects and implement activities that will strengthen community development collaboratively. In addition, these processes help strengthen community relations. During and after the project implementation, an evaluation of performance has been undertaken to review and improve the project’s work to meet the needs of its beneficiary group as much as possible. Simultaneously, OR has developed a tool for implementing corporate citizenship and philanthropy activities which is used in designing the project work plans and reporting the outcomes to stakeholders or authorizing bodies.

Furthermore, continuous dialogue and listening to the society and community group helps mitigate the risk that may cause negative impacts on communities through collaboration in the search for problem-solving initiatives. It also has the process to deal with incidents, should they occur, by gathering information from the community, checking the work of OR, and submitting the case to the committee to consider compensation or remedies for the affected people in order of steps. This can reduce the impact and concerns of business operations and lead to reviewing, improving, and developing the company’s work processes to prevent recurrence of such incidents in the future.

Performance

Initiatives/ programs that create shared value for our society and communities

In 2023, OR conducted a stakeholder survey to gather data and feedback from communities. The survey was administered both at the local level – consisting of communities within a 5-kilometer radius of the operation areas, across a total of 19 areas, or 100% of the operation areas – and at the national level – consisting of other stakeholders outside of the 5-kilometer radius or further out, such as farmers and community enterprises. The results of the survey revealed some issues of concern and interest of the communities and society.

In addition, OR has developed workplans and organized participatory community and social development projects. Some examples of projects and activities implemented in 2023, categorized in accordance with the Corporate Social Responsibility and Philanthropy Framework, are highlighted below.

Focus Area	Project/Activity	2023 Accomplishments
Neighbors Together (Community)
Health and safety training for communities	LPG Safety project – Gas Cylinder Fun Facts (2023)	A total of 1,400 community members from seven provinces (Nakhon Sawan, Saraburi, Lampang, Chonburi, Surat Thani, Ayutthaya and Phrae) were educated on the proper and safe use of cooking gas.
	Technical knowledge exchange on safety with government agencies and educational institutions (2023)	Arranged seminars for government agencies and educational institutions on issues involving fire-fighting, such as precautionary measures for gas and oil leaks, fire extinguishing, and basic use of fire extinguishing foam
	OR Ship and Ocean Conservation Project – For communities surrounding the petroleum terminal in Songkhla and Surat Thani provinces	Arranged activity to change engine oil for long-tail boats with the cooperation of lecturers and students from technical colleges and vocational schools at one location, along with a seminar on the proper and safe way to use cooking gas to prevent accidents at one location for 200 participants.
	Good Driving…Happy Living Project (2023)	Produced and disseminated a video among youths on the proper way to use lubricating oil and on road safety.
Sports promotion/support	Monetary support for sport activities (2023)	Monetary support for various competitive sporting activities, such as “Rotax Max Challenge Thailand 2023”, “ROK Cup Thailand” and “Baan Ping Pak, Hai Rak Chuay Run” charity mini-marathon
Promotion and support for equal access to basic needs, such as health care and education	Financial support for the construction of a building at Ramathibodhi Hospital and Innovation Space (2023)	Supported the cost of the construction of a hospital building at the site to help increase the capability to service in-patients and out-patients.
	Support treatment of stroke victims with help of Mobile Stroke Unit (2018 to present)	Supported for the cost of one Mobile Stroke Unit equipped with telemedicine capability and advanced communication system worth 20 million baht, presented to Rayong Provincial Public Health Office. Provided space at 11 PTT Stations in Nakhon Sri Thammarat Province to use as parking areas for Mobile Stroke Unit. These units were able to help 935 patients.
Provide business sector knowledge to government agencies and educational institutions on the subject of “Safety in Daily Life and business activity regarding aircraft refueling. Also, welcoming educational institutions and communities to join study tours of OR’s operation areas	OR Academy x KKBS sharing session on the topic of “Introduction to Aviation Fuel Supply Business (2023)	OR speaker gave lecture to students in the Faculty of Business Administration and Accountancy, Khon Kaen University.
	OR Volunteer Weavers of Happiness Project (2023)	Shared information and knowledge about PTT Lubricants products with the community, attended by more than 5,000 participants from 16 provinces, including Bangkok, Pathum Thani, Samut Sakhon, Ayutthaya, Chonburi, Khon Kaen, Ubon Ratchathani, Chiang Mai, Lampang, Phrae, Phitsanulok, Nakhon Sawan, Phuket, Surat Thani and Songkhla.
	Seeding the Future Project	This Project is ongoing for the sixth year to promote youth network creation to enhance value in society and to provide business knowledge. For 2023, opportunities were given to young students from Thailand, Lao People’s Democratic Republic, Cambodia, the Philippines, and the Republic of the Union of Myanmar. A total of 50 people participated in the project that would eventually lead to the sowing of the seeds of goodness that would grow into a promising future in furthering the development of the ASEAN region.
Shared Value (Social)
Sourcing raw materials from the communities	Community Coffee Sourcing Project	Supported farmers and community enterprises, developed knowledge and professional skills to produce quality coffee beans that meet the standards under the sustainable natural resources conservation system, as well as being a channel for farmers to sell parchment coffee beans for steady income and better living conditions through fair price purchasing. In 2023, coffee beans were purchased from 16 communities, generating income for a total of 350 farming households, with a purchasing value of over 36.9 million baht.
Providing knowledge on sustainable agriculture	OR Smart Farming & Marketing Project (2023)	Training provided for 50 farmers on the topics of increasing productivity, boosting income, and innovative agriculture.
Promoting job creation for vulnerable and underprivileged groups	Café Amazon for Chance Project (2018 – present)	Hired and trained employees total 263 persons since the Project launch, consisting of 1) elderly group, 231 positions; 2) hearing-impaired group, 25 positions; 3) intellectually-disabled group, 2 positions; 4) disabled veterans and their families group, 2 positions; and 5) group of abuse victims/physically disabled persons/youths without opportunities, 1 position. Increase the number of Café Amazon for Chance branches that provide employment to the underprivileged to total 279 branches since the project launch.
Creation of sales channels for community products	Thai Det Project (2018 – present)	Total 781 Thai Det products since the project launch Total communities joining the project is 376 A total of 325 Thai Det shops Generated 102 million baht in income for the communities in 2023 Set up Thai Det booths to sell products at Jiffy Shop in Enco C Building Signed an MOU with the Ministry of Interior to support community products to be sold in Thai Det shops at PTT Stations Produced a video to publicize the Thai Det project Coordinated and called meetings to enlarge the project’s partnership network.
Creation of sales channels for community products	Pan-Suk Space Project (2021 – present)	The number of participating PTT Stations has increased to 339, for a total of 1,139 stations since the project launch. A total of 3.30 million baht in revenue was generated last year, totaling 75.19 million baht since the project launch.
Development/sales of products and services that promote health and safety	Menu with oatmilk as ingredient at Café Amazon	Now available at Café Amazon are drinks with oatmilk among the ingredients for health-conscious drinks customers, and as a plant-based option for persons who are lactose-intolerant.
Development and support for community–based tourism	Pilot project to develop community-based tourism to create continuous and sustainable income from tourism for the community (2022-2023)	Revamped and improved tourism facilities and supported the public relations effort at 10 pilot communities throughout the country The number of tourist arrivals at the 10 pilot communities increased by 10% while the income from sale of local products also increased by 10%. Overall, the tourist satisfaction increased by an average of 15% compared to the period prior to the program implementation.
Support in creating new businesses	TOGETHER – Nong Yang Herbal Project (2023-present)	Joint development with community enterprises to create three new products while helping to promote Lampang Province’s OTOP products to increase the income of the community by 60% to 44,623 baht, compared to the period before project implementation. Organized training to develop community capability, promote skills in selling products and expand sales through online channels. A total of 16 members of Nong Yang Herbal Hub Community Enterprise Group participated.
Restoring Nature (Environment)
Awareness raising and promotion of waste management	TOGETHER – Zero Waste Project at Sao Hai district, Saraburi province (2023-present)	Organized training on household waste separation and waste recycling for maximum benefit. A total of 70 households participated. Prepared household handbooks for 70 households to promote collection of data on household waste, such as basic quantity of organic waste, other types of waste, and income from selling waste.
	TOGETHER – Conservation at Nong Kung district, Khon Kaen province (2022 – present)	Organized training on household waste separation and waste processing for maximum benefit. A total of 750 community households participated. Organized “waste market” activities within the communities. Created a vocational group that utilize leftover materials and waste to create various new products.
	Yak Lak Yim School Camp Project ( 2022 – present)	Organized a training camp on waste management within schools for representative teachers from 45 schools. Facilitated 33 schools in participating in the evaluation in the Low Emission Support Scheme (LESS) project in 2023. SROI 1.78. Avoided 61,599 tons of carbon dioxide equivalents in GHG emissions.
	Yak Lak Yim at PTT Station Project (2016 – present)	The number of participating PTT Stations increased by another 90 stations, contributing to a total of 2,094 stations since project launch. Income generated in the past year was 8 million baht, contributing to a total of 22.55 million baht since project launch.
	OR Plastic Blankets for Winter Warmth (2023)	A total of 357,026 PET bottles have been collected from donations and were made into fiber to be woven into blankets. The community had an income of 3,263,838 baht. A total of 16,000 blankets were donated to underprivileged people affected by cold weather. As much as 7,114 tons of carbon dioxide equivalent of greenhouse gas were prevented from being released into the atmosphere (For additional details, see Highlight: Participatory Community and Social Development Chapter, Click)
Expanding green areas	Reforestation project in National Reserve Forest areas in Chiang Rai and Phayao provinces in cooperation with the Forestry Department	A total area of 1,900 rai have been reforested and jurisdiction transferred.
Expanding green areas	Reforestation Project with PTT Group	OR signed an MOU with the PTT Group, Forestry Department, Department of National Parks, Wildlife and Plant Conservation and the Plant and Protect Mangrove Forests Project on March 20, 2023 to plant trees with the focus on the “Adjust, Change, Plant” strategy, and the business operations according to the sustainable development guideline towards Net-Zero in 2050.

Investments in Corporate Citizenship and Philanthropic Projects and Activities in 2023

OR has categorized corporate citizenship and philanthropic activities by the type of activity, and collected data on budget and investments in each activity and type. An overview is provided below.

In detail of the budget or value of social investment implemented surrounding operation sites in 2023 has been divided as follows: Total budget: 32.37 million baht

Cash Contributions at 22.12%, or 7.16 million baht
Time contributions by employee volunteers 4,971 hours
Donations or support in the form of goods or services (in-kind contributions) 77.88%, or 25.21 million baht
Project management costs
- Operating expenses (allowances, accommodation, etc.) 1.37 million baht
- Wages for employees of the Health Promotion Foundation (6 people) 4.51 million baht/year

Assessing the social return on investment (SROI)

In 2023, OR assessed the social return on investment (SROI) of two selected corporate citizenship and philanthropic activities. These included the Community Coffee Sourcing Project and the Thai Det Project, both operated by OR. The assessment included interviews with the project stakeholders, analysis of social outcomes, and calculation of the SROI value, respectively.

The Community Coffee Sourcing Project SROI analysis, calculated based on project performance throughout a six-year period (2017 – 2023) and covering Project in Chiangrai area, revealed that the project yields a social return of 1.48 baht for every 1 baht of investment, while the Thai Det Project SROI calculated based on project performance throughout a five-year period (2018 – 2023) will generate impacts to create awareness among consumers after three years because the project has invested heavily in product promotion in 2023.

(For additional details, see Highlight: Participatory Community and Social Development Chapter, Click)