Tesoro report
In 2012, their refinery operations included seven refineries in the western United States with a combined capacity of approximately 675,000 barrels per day, which refine crude oil and other feedstock into transportation fuels, such as gasoline, diesel, Jet fuel and other products, including heavy fuel oils, liquefied petroleum gas, petroleum coke and asphalt.
1 . Describe the corporate social activities of a company. A. Kind of activities?
A- The corporate social activities of Tester are mainly focused to the following groups: People – Employment Their success is directly tied to their ability to attract, hire, develop, promote and retain a talented and diverse workforce. They achieve these objectives by: Hiring the best people with diverse experiences and perspectives that enhance our ability to row, Treating employees fairly and equitably by providing equal access to opportunities Rewarding employees in ways that recognize their individual accomplishments and their contributions to business result.
Providing employees with meaningful opportunities to grow and develop their skills, Supporting employees with programs to enhance their health and well-being, and Encouraging employees to actively serve in the community and contribute to the community’s health and vitality.
Compensation and Rewards Tester is committed to providing competitive compensation and rewards to attract, retain, reward and motivate employees. They are a pay for performance organization, and their compensation programs align directly to our business objectives.
In addition, their comprehensive programs include a pension plan at no cost to employees and a matching Thrift 401(k) Plan with investment alternatives. In keeping with our philosophy of individual accountability, their financial benefits encourage shared responsibility. They provide employees with the tools to save for retirement and ways to enhance their financial security.
Employee Health and Wellness The health and well-being of employees is vital to our success. They believe healthy employees are more engaged, more productive and better equipped to do their Jobs safely and efficiently.
Conversely, employee health problems can contribute significantly to both direct medical costs and indirect costs, such as decreased productivity and absenteeism. Education and Development Employee Benefits include: Medical, dental and vision coverage offered to full-time employees and their eligible dependents Wellness benefits, including fitness center and Weight Watcher” reimbursement Flexible spending accounts for medical and dependent care expenses Adoption assistance
Diversity, Inclusion, Equal Opportunity and Non-Discrimination Tester offers equal employment opportunities to those who meet our qualifications. They recruit and post Job openings nationally and hire the best candidate for each position. They have long recognized our moral and legal obligation to support equal employment opportunities for all, without regard to gender, age, race, ethnicity, color, national origin, religion, marital status, sexual orientation, disability, veteran status or any other protected basis.
Communities – They strive to make an impact in three primary areas: Community
Vitality – They aim to make communities stronger and more dynamic by helping people and improving their opportunities in life. Education – They focus on giving students the tools they need to succeed and grow, both in knowledge and character. Environment – They help better the lives of people for generations to come by preserving natural resources and promoting clean surroundings. Health and Safety – Process Safety – They use industry-recognized process safety and asset integrity assurance methodologies to reduce the risk of all process safety events.
Process safety fundamentals have been implemented throughout their operations, including management of change, mechanical integrity assurance, incident investigation, process hazard operating procedures analysis and making process information available to the workforce. Personal Safety – Strong management support, emphasis and leadership clearly identify safety as a priority for the organization.
Tester has adopted standards that establish safe work practices.
Audits, assessments and program reviews are conducted to ensure these practices are being followed, and to identify improvements that will further reduce risks and improve the effectiveness of the standards. Transportation Safety – They take many preventative measures to promote the safe operations of our pipelines and related facilities. They work to continuously improve the performance of their pipelines, ensuring that the lessons learned from pipeline industry incidents are incorporated into our Integrity Management Program.
Multiple pipeline management systems are also in place to mitigate or eliminate potential adverse impacts to our employees, our communities and the environment.
The Environment – Air Emissions At their refineries, they manage air emissions through the use of environmental management systems. They monitor and report emissions to government agencies on a regular basis. They are committed to implementing cost effective energy conservation measures which reduce direct emissions of criteria air pollutants and greenhouse gases (Sighs).
Greenhouse Gas and Energy Use – They manage our GOGH emissions by improving energy and process efficiencies, reducing flare activity where safely possible, monitoring for leaks and repairing them promptly, and minimizing energy loss through equipment insulation. They consider GOGH emissions when evaluating projects and business opportunities.
Waste – Their preferred approach is o minimize waste generated at the source, then recycle or reuse the waste. They are committed to disposing of any remaining waste in a safe and environmentally approved manner as required by EPA and state regulations.
Ecosystem Protection- Our operations take place near sensitive ecosystems that contain diverse wildlife and habitats. We are vigilant in working to ensure that our operations do not have a negative impact on these natural resources. B.
Geographical focus of activities (Countries, Regions, etc. )? A- The company owns and operates six refineries, with a combined crude oil processing capacity of approximately 845,000 Able/d, located in California, Alaska, Washington, Hawaii, North Dakota, and Utah. Tester’s geographically focused refining business has made it the largest independent refiner on the U.
S. West Coast.
The Retail segment distributes motor fuels to wholesale and retail customers, as well as to commercial end-users through a network of more than 2,200 branded retail outlets, primarily under the Tester’, Shell’, USA Gasoline’, and Miramar’ names. Ancestor Refinery – The Ancestor Refinery ships gasoline, Jet fuel and diesel fuel through a third-party pipeline system that serves western Washington and Oregon. The facility delivers refined products, including CARR gasoline and components for it, through our marine terminal, to ships and barges.
Additionally, Tester operates refined products terminals at Ancestor, Port Angels and Vancouver, Wash. Keenan Refinery – A 68-mile, 42,000 bad common-carrier products pipeline transports jet fuel, gasoline and diesel fuel to the Port of Anchorage and the Anchorage International Airport. Wholesale delivery occurs through terminals in Keenan, Anchorage, Tester’s Nikkei dock and the Port of Anchorage.
The refinery also supplies Tester’s network of Tester@ and USA Gasoline”* stations throughout Alaska. Los Angels Refinery – The Los Angels Refinery receives crude at its marine terminals in L.
A. Harbor and ships products throughout southern California, Arizona and Nevada via its connections to several product distribution pipelines and terminals. It distributes all grades of gasoline and ultra-low-sulfur diesel, primarily to Tester’s retail system under the Tesoro@, Shell@, RACE, Exxon@, Mobil@, and USA Gasoline”* brands. Its Watson Generation plant produces 400 MM, and is the largest generation facility in California.
Amanda Refinery – The facility manufactures gasoline, diesel fuel, Jet fuel, heavy fuel ills and liquefied petroleum gas.
Refined products are trucked and railed from Amanda, and also shipped east via pipeline to supply the Jamestown area, eastern North Dakota and Minnesota. Salt Lake City Refinery – The refinery supplies Tester’s network of Tesoro@, Shell@, and USA Gasoline stations mostly in Utah, Idaho and Nevada. C. Resources involved (Manpower, budget, etc. ) A- The Refining segment manufactures and sells gasoline and gasoline-blend stocks, jet fuel, diesel fuel, and other refined products to customers, primarily in the mid- continental and the western U.
S. This segment also markets liquefied petroleum gas, trolley coke, and asphalt whereas the Retail segment distributes motor fuels to wholesale and retail customers. Some of the assets include: A crude oil gathering system in North Dakota, Eight refined products terminals in the Midwestern and western United States, A crude oil and refined products storage facility and five related short-haul pipelines in Utah, Two marine terminals in California, and A rail car unloading facility in Washington. 2.
Illustrate how those activities (or a selection thereof) affect the company stakeholders and why you think the company has chosen those stakeholders? A.
What kinds of stakeholders are affected? A- The kinds of stakeholders that are affected are: Employees Communities Local, State and Federal Governments Customers Investors Suppliers and Business Partners b. Why have they been selected? Employees – The employees are the most important asset, and they are committed to building a workforce that reflects the markets in which they operate and broadens their ability to address the needs of our stakeholders.
Communities – At Tester, they measure success not only by the bottom line, but also by how well they perform as a responsible corporate citizen in the communities where their employees live and ark. Volunteering and charitable giving are woven into our corporate culture. Local, State and Federal Governments – They are responsible for development of Tester’s position and advocacy strategy to respond to local regulatory issues. Also serves as a credible and sought-after thought leader on issues that matter to government and Tester.
Customers- Tester is committed to providing their wide range of customers with reliable product supply that meets local clean fuel requirements, consistent product quality and outstanding customer service. Investors – Represents warehouses and delegates authority to management to pursue the Company’s business. Suppliers and Business Partners – Tester engages with a range of suppliers and contractors to support their business operations, and they aim to facilitate easy and efficient information exchange for them. D. How are they affected (impact, involvement, etc.
)?
A- Employees Weekly news stories on intranets Electronic surveys and in-person focus groups Frequent updates from executives with feedback opportunities Interactive town hall meetings with senior management Regular dialogue with community leaders, residents, nonprofit charities and non- overpayment organizations Charitable investments in groups and programs that serves our communities Employee engagement through workplace giving, volunteerism and non-profit board leadership Local, State and Federal Governments Discussions on key issues with officials at all levels of government Formal and informal meetings Posting on public policy website (wry. Doctors. Mom) Formal and informal meetings Postings on corporate internet Frequent investor meetings Quarterly, periodic and annual financial reports Press releases and other materials issued through the media and posted on reporter internet Say on Pay – shareholder’s ability to vote on how they view their pay practices Suppliers and Business Partners Frequent dialogue with suppliers and business partners on topics including environmental stewardship and operational safety and reliability Work with suppliers to assure adherence to highest safety and ethical standards. 3. Evaluate the impact of those CARS activities a.
Have the activities had any impact on the stakeholders? A- Yes, the CARS activities have an impact on the stakeholders as they measure business performance. Both primary (e. G. , consumers, ‘internal managers and employees’ and easiness collaborators) and secondary stakeholders (e. G.
, governments, media, local community and Nags) positively influence CARS activities.
CARS activities enables firms to improve reputation with a broad range of stakeholders including employees (internal customers), customers (external customers), suppliers, competitors, bankers, and investors. CARS activities are positively related to profitability and firm value, thereby increasing attractiveness to potential and existing employees. Employees play a major role in getting influenced by the CARS activities as they act as agents for social change when they push corporations to adopt socially responsible behavior. Also, environmental policy demonstrates that employee’s support is necessary to secure effective CARS programs and policies. Moreover, employees as a stakeholder group perceive, evaluate, Judge and react to CARS programs and actions.
B. Provide third party evidence for their impact (e. G. Reese articles, charity reports, COED/UN reports or any other sources that confirm the firm’s impact on stakeholders) Tester Upgrading Rail Car Fleet to Consist Entirely of Newer CUP-1232-Compliant ears SAN ANTONIO – February 6, 2014 – Tester corporation (NYSE: TTS) announced today that Tester Refining & Marketing Company LLC (TRIM) has proactively begun replacing older cars in its crude oil rail car fleet with post-October 2011 design, CUP 1232-compliant rail cars, after evaluating rail car safety features. Specifically, Tester is committing that its rail car fleet will consist entirely of the newer DOT-111 design rail cars equipped with reinforced shields and relief devices by mid-2014.
While this action applies to the vast majority of crude oil deliveries into Tester facilities, singeing in mid-2014 Tester will also make rail car design a part of its commercial considerations with all business partners who may ship crude oil into company- owned facilities.
This includes Tester’s refinery in Ancestor, Wash. , and the proposed Tester-savage Energy Distribution Terminal in Vancouver, Wash. “Tester is committed to the safe and environmentally sound handling of crude oil. The safe design of rail cars in crude service is of paramount importance,” said Keith Casey, senior vice president of strategy and business development, Tester. “We’re proactively making these commitments today, before expected changes in future deader regulations, because we believe it’s the right thing to do for all of our stakeholders. The upgrades to Tester’s rail car fleet will be completed before construction of the proposed Tester-savage Energy Distribution Terminal would begin and before the terminal would start accepting crude oil deliveries.
Because Tester is underpinning the initial capacity of the facility, many of the crude oil deliveries handled at the terminal at start-up will be owned by Tester and will arrive in Tester rail cars. Tester Corporation, a Fortune 100 company, is an independent refiner and marketer of petroleum products. Tester, through its subsidiaries, operates six refineries in the western United States with a combined capacity of over 850,000 barrels per day. Tester’s retail-marketing system includes over 2,200 retail stations under the Tesoro@, Shell@, RACE, Exxon@, Mobil@ and USA Gasoline (TM) brands.
This earnings release contains certain statements that are “forward-looking” statements within the meaning of Section AAA of the Securities Act of 1933 and Section 21 E of the Securities Exchange Act of 1934 concerning the conversion of its rail fleet. For more information concerning factors that could affect these statements e our annual report on Form 10-K and quarterly reports on Form 10-Q, filed with the Securities and Exchange Commission.
We undertake no obligation to publicly release the result of any revisions to any such forward-looking statements that may be made to reflect events or circumstances that occur, or which we become aware of, after the date hereof.
Contact: Media: Tester Media Relations, media@tsocorp. Com, (210) 626-7702 Investors: Brian Ransacked, Senior Director, Investor Relations, (210) 626-475 Conclusion Tester is dedicated to operating in a socially responsible manner. Their core values re reflected in the way they run their business, with commitment to integrity, respect, the environment and safety. Moving ahead, they are committed to continuing to meet and exceed the standards of safe, reliable operations, while focusing on improving profitability and increasing shareholder value. They strive for continuous improvement in all the areas such as environment, communities, people and health & safety.
