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The penguins are scattered all throughout RuneScape, if you look on the RuneScape forums and go to 'distractions & diversions' you can look for many posts relating to the penguins for hide and seek. You can join certain Clan Chats dedicated to nothing but the spotting of penguins. Which are used to gain points which you can spend at the Ardougne Zoo either with Larry or Chuck the Polar bear depending on if you have completed 'The Hunt for Red Raktuber' Quest, with an addition to being able to find a polar bear agent with the completion of 'The Hunt for Red Raktuber' which gives an extra point.
Points can be spent on either experience or money.