Crossing Boundaries Towards Driving Businesses Beyond Profitability (Mdm. Hjh Rokiah Mhd Noor, Malaysia)


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Crossing Boundaries Towards Driving Businesses Beyond Profitability (Mdm. Hjh Rokiah Mhd Noor, Malaysia)

  2. 2. MAIN AGENDA Why Corporate Responsibility (CR)? Why the Companies Commission of Malaysia (SSM)? The SSM CR Agenda Driving Businesses Beyond Profitability The Way Forward : Initiatives in 2011 2
  3. 3. WHY CORPORATE RESPONSIBILTY? WHY? Because it is very relevant in today’s corporate and business environment: Domestic (Malaysian) Benefits Context Nexus with International Business Context Sustainability 3
  4. 4. THE RELEVANCY OF CR: DOMESTIC CONTEXT The concept and implementation of CR practices have been cited and highlighted in many of Malaysia’s national agendas: Budget 2010 Speech by the the Honourable Prime Minister : “I often remind the private sector and Government-linked companies (GLCs) not to neglect their social responsibilities in their quest for profits.” 4
  5. 5. THE RELEVANCY OF CR : THE GLOBAL CONTEXT Public Sector Roles in Strengthening Corporate Social Responsibility: A Baseline Study: A World Bank related publication that outlines four roles of the public sector in strengthening CSR, namely the mandating role, facilitating role, endorsing role and partnering role. The Role of Government in Promoting Corporate Responsibility and Private Sector Engagement in Development A publication of the United Nations Global Compact and Bertelsmann Stiftung which highlights the main public policy options for governments in promoting CR and business engagement in development, namely awareness raising, mandating, partnering and soft law. IMD’s 2010 World Competitiveness Yearbook: The ‘Infrastructure’ Input Factor includes CR related themes such as: (i) Health problems (sickness, AIDS, alcohol, drug abuse etc); and (ii) Sustainable development . 5
  6. 6. BENEFITS OF THE PRACTICE OF CR The following benefits have been cited in many business articles and reports: Retain loyalty among customers and employees Attract better Reduce regulatory oversight employees Increase Increase Enhance productivity profit reputation 6
  7. 7. CR’S NEXUS WITH BUSINESS SUSTAINABILITY Address important issues, such as: 1. economic efficiency (innovation, prosperity, productivity); 2. social equity (poverty, community, health and wellness, human rights); 3. environmental accountability (climate change, land use, biodiversity). BUSINESS SUSTAINABILITY Business sustainability requires companies/firms to adhere to the principles of sustainable development. 7 Source: Financial Times Lexicon
  8. 8. WHY THE COMPANIES COMMISSION OF MALAYSIA? The Companies Commission of Malaysia (SSM) believes that it is in the best position to drive the CR culture among the corporate and business community in Malaysia. WHY? SSM is the SSM serves as Existence of Availability of Registrar of all the starting SSM’s a ready pool of companies and point to do organizational auxiliary businesses in business in linkage and supportive Malaysia. Malaysia. networking. elements. 8
  9. 9. THE SSM CR AGENDA Developed pursuant to SSM’s Second Direction Plan (2010- 2014) which envisages SSM as the driver of CR by end of 2014. Launched on 30 June 2009. Sets out SSM’s strategic framework which outlines SSM’s approach in inculcating the culture of CR amongst companies & businesses in Malaysia, focusing on Small Medium Enterprises (SMEs). 9
  10. 10. CONTENTS OF THE SSM CR AGENDA Chapter II: The SSM Chapter I: A Snapshot CR Agenda Parameter on CR Explains SSM’s Touches on the origin organizational and evolution of the parameter in relation concept of CR & to CR which includes explains the role the definition, played by the public organizational sector in relation to statement, objectives CR. & classification. Chapter IV: SSM’s Chapter III: Executing Embrace of the the Public Sector’s Notion of CR Various Roles in CR Explains the initiatives Explains the initiatives that will be taken by that will be taken by SSM in applying the SSM in carrying out its concept of CR within role as one of the SSM itself & also public bodies in forming relationships Malaysia. with international bodies promoting CR. 10
  11. 11. THE SSM CR AGENDA PARAMETER ORGANIZATIONAL CLASSIFICATION OF CR INITIATIVES: 1.Extrinsic: Programs, activities and initiatives carried out by DEFINITION: companies and businesses which carry a positive Commitment by corporations and impact externally within the parameter of the businesses towards achieving social, economic, and environmental well-being of sustainability in the social, the country; and economic and environmental 2. Intrinsic: Programs, activities and initiatives carried out by conditions in furtherance to companies and businesses which carry a positive the pursuit of profitability impact to the internal institutional environment within the parameter of the social, economic, and environmental well-being. OBJECTIVES: 1. To nurture the culture of CR in the Malaysian business environment; 2. To encourage all companies to strive in striking an equilibrium between the quest for profitability and creating a sustainable living environment; 3. Inculcate a corporate culture among Malaysian corporate players that values and recognizes all CR initiatives pursued by corporations demonstrated as creating premium for companies and businesses; and 4. Pursue and propagate good corporate governance in a more holistic basis. 11
  12. 12. THE SSM CR AGENDA LOGO & TAG LINE The building of the Petronas Twin Towers icon represents the economy element. The human icon The avian icon represents the represents the social element. environment element. SSM’s organizational logo. Tag Line: “Driving Business Beyond Profitability” The circular shape of the icons connotes sustainability & universal outlook 12
  13. 13. DRIVING BUSINESSES BEYOND PROFITABILITY Towards driving businesses to operate beyond profitability, SSM has carried out several CR-related initiatives since the launch of the SSM CR Agenda in 2009: Establishment of the CR Creation of an Internal Dedicated Driver Unit UKM I Formation of Strategic Alliances IIM N I UNICEF T Advocacy by SSM’s staff I A Training for staff & T Advocacy: Sharing of Knowledge stakeholders I Provision of platform to V strategic partners E S Engagement with the Promotional Drive media CSR Asia Global Presence CSE 13
  14. 14. CREATION OF AN INTERNAL DEDICATED DRIVER The CR Unit has been established and placed under the Corporate Development and Policy Division, consisting of two officers. The CR Unit is generally tasked to strategize and implement CR-related initiatives in furtherance to the SSM CR Agenda. 14
  15. 15. FORMATION OF STRATEGIC ALLIANCES Since the launch of the SSM CR Agenda, SSM has formed strategic alliances with three dynamic partners: UKM: IIM: UNICEF: • Signed an MoU • Leveraged on • Signed an MoU (specifically on the general MoU (specifically on CR) on 30 June signed between CR) on 28 Jan 2009. IIM & SSM on 7 2010. • To collaborate in Aug 2009. • To collaborate the area of CR, • To collaborate in towards mainly focusing the area of CR enhancing the on research and and corporate well-being of advocacy. integrity. children through the practice of CR. 15
  16. 16. FORMATION OF STRATEGIC ALLIANCES Following the formation of these strategic alliances, SSM has carried out several CR-related initiatives with its dynamic partners, including advocacy based initiatives: CR-related Initiatives Partner Triple Bottom Line Development of Best Business Practice UNICEF Social element Circular 1/2010 titled Establishment of a Child Care Centre at the Work Place by Corporate & Business Employers Development of Tool Kit on How to UNICEF Social element Establish Child Care Centres at the Work Place Organization of the IIM-SSM CR & IIM Economy element Corporate Integrity Forum Series Organization of the Tuanku Ja’afar Law UKM Economy element Conference on CR & CG Many more initiatives are in the pipe line. 16
  17. 17. BEST BUSINESS PRACTICE CIRCULAR 1/2010 Launched by YB Dato’ Sri Ismail Sabri Yaakob, Minister of Domestic Trade, Co- operatives & Consumerism, on 28 January 2010 Serves as a general guideline to facilitate employers in setting up child care centres at the work place for their employees. Touches on: I. The general legal and regulatory framework; II. The general procedures for the registration of child care centres; and III. The main principles of care. 17
  18. 18. TOOL KIT ON HOW TO SET UP A CHILD CARE CENTREAT THE WORK PLACE Launched by YABhg. Datin Paduka Seri Rosmah Mansor on 9 November 2010 Complements the Best Business Practice Circular 1/2010 on the Establishment of Child Care Centres at the Work Place by Corporate and Business Employers Touches among others, on the following: I. The application of the principle of best interest of the child; II. Recruitment of qualified staff; III. The importance of having child centred programmes and curriculum; IV. The need for staff performance monitoring; V. The need for human resource management; VI. Financial resources; and VII. Registration procedures. 18
  19. 19. INVOLVEMENT IN THE NATION’S PROMOTION& DEVELOPMENT OF EARLY CHILD CARE & EDUCATION SSM & UNICEF decided to focus on the establishment of child care centres at the work place, in light of the following:  The 10th Malaysia Plan - which calls for the setting up of child care centres to enable better participation by the women workforce in the job market;  Towards creating a sustainable corporate and social environment as well as striking a balance between economic development and social well being;  To facilitate working parents in balancing their work commitment and the nurturing of their young children;  To ensure the safety of young children of working parents in the corporate & business working environment; and  The need for a high quality early child care & education in the nation’s social system. Following SSM’s initiative to promote & encourage the establishment of child care centres at the work place, SSM was invited to be a member of a committee on Early Child Care & Education (ECCE), placed under Malaysia’s National Key Result Area (NKRA) on Education. 19
  20. 20. TUANKU JA’AFAR LAW CONFERENCE The Tuanku Ja’afar Law Conference was jointly organized by SSM and UKM on 19 & 20 Oct 2010 at Menara SSM@Sentral, Kuala Lumpur. The theme of this conference was CR & CG, where more than 30 papers were presented by presenters from inside and outside of Malaysia on these two subject matters. The conference was a very beneficial platform as it allowed people from different backgrounds i.e from the industry, the regulator and the hall of academia, to discuss, exchange views and share knowledge & experiences pertaining to CR & CG. 20
  21. 21. IIM-SSM CR & CORPORATE INTEGRITY FORUM SERIES The IIM-SSM CR & Corporate Integrity Forum Series was a jointly organized by SSM and IIM. The main objective was to create awareness and enhance the understanding of the concept of CR and corporate integrity among the corporate and business community, especially the SMEs, noting that the SMEs in Malaysia form 99.2% from the total number of business establishments. Thus far, two series have been conducted, one in Kuala Lumpur on 18 March 2010 and one in Penang on 16 July 2010. 21
  22. 22. ADVOCACY – SHARING OF KNOWLEDGE ON CR SSM advocates CR through the sharing of knowledge via three identified channels:  Advocacy by SSM staff: SSM staff gives lectures & talks during events & conferences to the members of the corporate and business community, students & academicians: Advocacy related Activities Date Public lecture titled “The 21st Century Business Environment: 20 Aug 2009 Integrating CG & CR into SMEs” Lecture on CG & CR at Curtin University‘s Evening Lecture Series 2 Nov 2009 Talk titled “The 21st Century Business Environment: Integrating CG & 18 Nov 2009 CR into SMEs” Talk titled “CG & CR: Reiterating the Basics for Future Sustainability” 13 Jan 2010 (at the MICG Director Duties & Governance Conference) First series of the IIM-SSM Corporate Responsibility & Corporate 18 Mar 2010 Integrity Forum (co-organized with IIM) Second series of the IIM-SSM Corporate Responsibility & Corporate 16 Jul 2010 Integrity Forum (co-organized with IIM) Tuanku Ja’afar Law Conference on CG & CR (co-organized with UKM) 19 & 20 Oct 2010 22
  23. 23. ADVOCACY – SHARING OF KNOWLEDGE ON CR(Cont.)  Training for stakeholders: CR is inserted in the training modules for directors (Corporate Directors Training Program), licensed secretaries (Licensed Secretaries Training Program) and staff of SSM (Knowledge Enhancement Employee Program). These training programs are conducted by SSM’s training arm; COMTRAC.  Provision of platform to strategic partners: SSM provides platforms to its strategic partners at its engagement sessions that are held every year, to talk on CR-related issues. At present, SSM has three engagement sessions i.e the Corporate Practice Consultative Forum (that is attended by professional bodies), the Annual Dialogue (that is attended by the business & corporate community) and the Business Engagement Chapters (that is attended by trade associations): Advocacy Related Activities Date IIM delivered a talk at SSM’s Corporate Practice Consultative 14 Jan 2010 Forum on Corporate Ethics UNICEF delivered a talk at SSM’s Annual Dialogue titled “The 14 & 15 Dec 2009 Role of the Private Sector in Enhancing the Welfare of Children in Malaysia 23
  24. 24. PROMOTIONAL DRIVE SSM has engaged the media to promote its CR-related initiatives, as part of its effort to create awareness among the public generally, and the business and corporate community specifically. SSM has featured articles on its initiatives in the media and has also invited the media to cover the events relating to the CR-related initiatives. 24
  25. 25. GLOBAL PRESENCE To be acknowledged as the driver of CR, SSM aspires to contribute and make a positive impact not only domestically, but also at the international level. Towards realizing this aspiration, SSM has become a member of CSR Asia since 1 November 2010 with the view to share knowledge, learn from the experiences and enhance SSM’s expertise. Apart from CSR Asia, SSM is also planning to be a member of the Centre for Sustainability & Excellence (CSE). 25
  26. 26. SSM’S CR INITIATIVES FOR 2011 National Survey on CR (with UKM) SME Manual on CR Best Business Practice Circular – Chief Integrity Officer (with IIM) Best Business Practice Circular - Creating a Child Friendly Environment within the Corporate Sector (with UNICEF) CR & Sustainability Workshop Business Case Studies on Child Care Centres CR @ Work (CR for SSM’s employees) Continuous advocacy events 26
  27. 27. ENHANCING THE DOMESTIC LEGAL & POLICYFRAMEWORK ON CORPORATE RESPONSIBILITY CURRENT FUTURE Ratified UN Conventions relating to CR: Various laws relating to CR: UN Convention No. 8 (Elimination Environmental Law of Discrimination against Women) All Employment Relations Law UN Convention No. 11 (Children’s companies Consumer Protection Rights) that are Labour Laws ILO Convention no. 138 (Minimum required to Age) submit annual returns: Bursa Malaysia Listing Khazanah Nasional Berhad To report Requirements – PLCs: – GLCs: voluntarily Provide statement on CR Silver Book: Achieving Value activities in Annual Report – through Corporate on CR Rule 9.25 read together with Responsibility activities Item 29 of Appendix 9C 27
  28. 28. THANK YOU 28