Definition of Responsible Business, Sime Darby as an example of company that applies in Malaysia PS: no reference list to be attached.

1. 1.0 INTRODUCTION
1.1 What is Responsible Business?
Basedto the organisationnamedORB,itclaimson the website thattheybelieve itisveryessential
that businessshouldbe profitable anditisalsoone of a mainresponsible too.However,itisalso
claimedthatprofitshouldnotovercome otheroptions aswell.Notonlyprofitisimportantbutthe
wayof gettingprofittooandthis leadsthe wayof not overlookingthe otherresponsibilityfor
optionsinbusiness. UnitedNationsGlobalCompact’sperceptionof responsiblebusinessisthatitis
a recognitionanda wayof respondingtointerconnectednessof businessinourworldwhere climate
and financial crisisare effectsof consequencestoo.Itisa practice that wouldadvocate a company
the true responsibilityandcostsof the organizationfinanciallyandnon-financially.Todothis,the
organizationshouldundergoprocessof transparency,comparabilityandaccountability.There are
mainlyfive aspectsthatshouldbe coveredbya responsiblebusinesspractice;Environmental,
Workplace Practices,Ethical Governance,Social/CommunityandMarketplace andBusinessConduct
(The Hub Responsible BusinessPractices,St.JamesEthicsCentre Australia).ThroughORBagain,
BusinessResponsible isoftenrelatedto(CSR) Corporate Social Responsibility.CSRhave toomany
definitionof itthroughoutthe world,evensome relate ittophilanthropicactivity. Referringtoa
definitionusedinWorldBusinessCouncilbyapublication,MakingGoodBusinessSensebyLord
Holme andRichard Watts forSustainable DevelopmentisthatCSR isaboutcontinuinga
commitmentinthe businessbybehavingethicallywhile contributingtothe economicdevelopment
and improve lifequalityof theirworkforce andtheirfamilyaswell forthe communityandsocial too.
1.2 Company’s Previewin Brief
Under corporate profilesof Sime Darby,itoperatesas aninvestmentholdingcompanyinMalaysia.
The previewof the companyispurelybasedonSime Darby’sofficial website andKLSEinfowebsite.

2. The previousname of the companybefore 206 isSynergyDrive until is mergedof bythree company
in2007, KumpulanSime DarbyBerhad, Guthrie BerhadandGoldenHope PlantationsBerhad. The
total employeesaftermergingisabout104300 byWikipedia. ItisalsostatedthatSime Darby isan
international conglomerate.
Sime Darby’sbusinessactivityispurelyregardingMotors,Industrial,Plantation,Property,General
Tradingand Energyand Utilities.Their mainbusinesspracticesis plantation.Itisaboutproducing
and marketingfreshfruits,palmkernel,crude palmoil,andmostlyregardingpalmoil andrubber.
Basedby Wiki too,Sime Darbyis inlistof the largestpalmoil producerinworld,whichisabout6
percentof worldsupply. The company’sindustrial iscoveredinsales,servicingandrentalsof heavy
machinesandequipment fornearlyeightcountries meanwhile motorsegment toohave dealerships
ineightcountriesand itsabout assemblinganddistributingvehiclesanditsprovisionafter-sale
services. TheyownAutoBavariawhichentitledtosell BMW’sandMini Coopers.Theyalsohave joint
ventureswithHyundai MotorCompanywhere the assemblingandsellingvehiclestake place. Not
onlythat,the propertybusinessisaboutdevelopandmarketresidential,developmentland,
recreational activitiesfacilitiesandservices,golf managementandprovisionandalsoindustrialand
commercial lands.Finally,the energyandutilitiesisaboutengineeringdesign,integrationsystem,
treatedwatertreatmentandsupplyandmore.Sime DarbyislistedinBursaMalaysia underMain
Market as well.
Sime Darby’sfirstoffice wasinMalacca in 1910.it isa brand more than 100 yearsinMalaysiaand a
legacybythree companiesthatmade up Sime Darby.Notonlythe name of brandit isknownfor,it is
alsofor theirhighintegrityinresponsible businesstoo.Inthe legal form, Sime Darbyisa public
limitedcompany.

3. 2.0 Current Business Practices
As writtenin Sime Darbyofficial website,“DevelopingSustainable Future”isaboutintegrationand
economicbalancing,considerationof environmental andsocial justastheydeveloptheirvarious
businesses.Theyalsotake sustainabilitytohelpthemconduct theirbusinessresponsibly.Intheir
mainbusinessstrategy,operationalperformance andriskmanagement,Sime Darbyhave a
competitivewaytoenhance andprotecttheirstakeholdervalue bymaintainingincorporated
sustainability. Theircommitmentforasustainable developmentisoperatedby fourmainareas.
2.1 Main Factors/Areas
The four mainareas are Environment,Workplace,CommunityandMarketplace. Thisiswhere they
getto balance businessingoodalongwithgoodcorporate responsibility. There are alsofunds,
donations,throughoutsociallytoo.
2.1.1Environment
On the website of Sime Darby,itisstatedthatconservingandprotectingnatural resourcesof earth
isveryimportant to ensure asustainable business.In2011, Sime Darbyhad conducteda baseline
carbon inventorysurvey of 85percentage of operationsinvolvinginventorystudy/effort inorderto
manage impactsinclimate changing accordingto the GreenHouse Gases(GHG). Notonlythat, Sime
Darby have greatdeal of respecttowardsenvironmentbypromotingenvironmental responsibility
and alsoencouragingdevelopmentusage of environmentally-friendlydesignandtechnologies.Being
one of the largestproducerof palmoil inthe world,Sime Darbycome upwitha palm oil scheme
withsustainabilitycertification inordertohave transparentandcredible processesof balancesand
checksso that palmoil isproducedresponsibly.

4. RSPOlikelytobe knownasThe Roundtable onSustainable PalmOil isanon-profitassociationfor
everythingrelatedtopalmoil like example oil palmproducers,manufacturers,banksandsoon. This
organizationisforpromotingthe usage andgrowthof oil palmproductsby the credible global
certificationstandards.MalaysianPalmOil Association isbeingrepresentedbySime Darby inthe
RSPOExecutive Board andhave involvedinmanyworksof RSPO. Sime Darbylikelycommittedto
RSPOto be a foundational standardinthe certificationindustry.Italsodevelopsaprogressive range
of practicestoenhance keyissues.Firstissue wouldbe carbon.A targetis set to be reducedforthe
emissionsintensityby40 percentbefore 2020. Thiswill helptogeta betterunderstandingand
respondstoa newdevelopmentinHighCarbonStick.Secondkeyissue isgoodpracticesof
agricultural.Usage of an herbicide,Paraquathave beenstoppedsincethe early2000s. Evenif it is
not banned,butdue toits potential toharmthe environmentanditssignificanthealthsafetyrisks it
have beenstopped. The final keyissue wouldbe managementof peatland.Tomanage changesin
global climate,peatforestplaysanimportantrole.Ithave acapabilitytokeepstorage of large
amountof carbonwhichis releasedasgreenhouse emissionsif itisburnedorcleared.Since 2008,
Sime Darbyhave beencommitingthemselvestoanew development inpeat.International
SustainabilityandCarbonCertification(ISCC) isavoluntaryprogramme recognisedbyEuropean
Commissionasanindependentcertificationsystemusedtovalidate andaccessof biomassand
biofuel forasustainable production.
Sime DarbyPlantationhave achieve ISSCcertificationbringinganannual capacityof production
crude palm oil until 480,000 tonnes. Sime Darbytooadoptedthe zeroburningreplantingtechnique.
It was firstintroducedin1989 andit isa practice of fellingandshreddingoil palm’soldstandsbefore
it isdecomposed.Bythis,the chemical balance andthe fertilityof soil returnstoorganicand reduce
greenhouse gasemissionsaswell. The recycledPackagingmaterial isregardingoperationsin
Industrial Divisiontouse shreddedpaperforpackagingof Malaysian’sinter-branchspare parts
replacingStyrofoam.Anamountof wastedpaperwouldbe generatedbythe productionof many
reportsrecycled.

5. 2.1.2 Workplace Factor/Areas
Sime Darbyworksunderthe foundationof strongvaluesandethical standardswhichisrepresented
by everyone inthe organization.Code of BusinessConduct(COBC) is the definitionof behaviour
standardexpectedforall Directorsandemployeesinthe company.ThisisderivedfromGroup’s
Core Valuesand Principle andappliestobusinessthroughoutinall countrythe organizations
operates.Inorderto enhance the employee’sawarenessandusage tothe Code,Sime Darby’sGroup
Compliance (GCO) have developedaCOBCCommunicationandAwarenessPlan.A portal page
includedwithGovernance,RiskandCompliance waslaunchedthisyeartoo.Moreover,Sime Darby
implyzerotolerance towardscorruptionandbribery.SimeDarbyhave complete solving13 anti-
corruption activitiesinpast2 years. Theyhave equippedlocal trainersregardingthe skillsand
informationneededforguidingthemtoencounterCOBCsessions. The labourpracticesinSime
Darby ishighbecause theyaimto be employerchoice.Theydonottolerate discriminationfromand
point.There are non-discriminationof race,colourgenderandorigin.Employeesare being
protectedandtreatedwithrespecttheydeserve.And there are zerotolerance forverbal orphysical
harassmentinthe workplace.
Human rights.InSime Darby’sGroup PoliciesandAuthoritiesunderthe SustainabilityPrinciple
‘Uphold fundamental human rights and respect cultures, customsand values in dealings with employees and others who are
affected byour activities’isembedded. Notonly that,theydon’temploychildren noruse
forced/compulsorylabour.There are children stayinginthe PlantationDivision’sestateswhichtheir
parentsare employeesof Sime Darbyaswell. Toraise awarenessregardingchildrenprotection,
safetyandwellbeing,SimeDarby launched aprogramme of ChildProtectionPolicy(CPP).Sime
Darby respectstheirforeignworkersbyobtainingpermissionfromthem toretaintheirpassportsin
orderto preventanylossor theft.Anyhow,theyhave beenprovidedwithaconsentletterintheir
native language fora verificationthatconsentletterhave beengiven.

6. One of the ultimate goal of Sime DarbyisZeroHarm. They aimto reduce and ensure the healthand
safetyof theiremployeesandcommunities.The governance sustainabilityof Sime Darbypriorityis
the healthandsafetyas a measuringkeyinthe organization’sperformance.Inthe Groupand
Divisional level forpreventingaccidents, thereare programmesandmanagementof safetyand
healthtookplace. Anexternal certificationscheme suchasOccupational HealthandSafety
AssessmentSeries(OSHAS) isbeingadaptedtostrengthenthe managementsystem.Moreover,a
safetyprogramme calledSIMEwhichstandsforthe meaningSpot,Intervene,ModifyandExecute.
Thisrequireseveryemployee totake partinorder to preventinjuryinapositive waythis
programme couldreduce incidentsandinjuriesof employeesbyobservingpeople bytheirworkina
waytheycouldbe engagedwithacorrect behaviour.
LTIP, LongTerm Incentive Plan isalongtermprogramme where itisperformance basedcash
scheme.Itisdesignedtorecognize anemployees’contributionandrewardthemforachieving
organization’slongtermgoal.Init,itis consistedwithBase Salary,Annual Bonus,ShortTerm
Incentive PlanandBenefitstoo.Toengage andembrace Sime Darbybrand,thiscan onlyhappen
whenall levelsof employeesare activelyinvolvedtomake changesinthe organization.Employee
EngagementRoadshowiswhere aseriesof roadshowsare conductedacrossthe organizationto
meetandspeakwiththe employee.Itisdesignedtoallow the PresidentandGroupChief Executive
(PGCE) to share the organizationperformance andsolve the queriesof employees. Lastly,thereare
no discriminationtogenderequalityinworkplace.Throughthe GenderPolicyProgramme,itis
neededtobe fairand equal ingenderpolicies.Thisalsodidimprovewomenrights,safety,security,
sexual harassment,domesticviolence andsoon.
2.1.3 Marketplace Factor/Areas
Sime Darbyhave a diversifiedmultinationportfolioof businessinmore than20 countries.By
knowingthe impactthishason society,the businessstartstomake directcontributionsthatis

7. beneficial tonationthroughmanydifferentpublicinvestments.Sime Darbyisalsoresponsible for
productperformance.Sime Darbyaimingcustomerneeds throughprovidingproductsandservices
affordable homes.Example550-acre Bandar Ainsdale townshipinNegeri Sembilanisafirstproperty
homesbycollaboratingwithProjekPerumahanRakyat1Malaysia(PR1MA).It has sustainable
featureslike solarenergyandrainwaterharvestsystem.Furthermore,incollaborationwithRoyal
MalaysianPolice,MalaysiaCrime PreventionFoundation(MCPF),Safe Citywaslaunched.Thiswas
initiatedtoreduce crime whilehavingagoodcommunityspirit. ThisisimplementedinKayuAra,
Damansara.
2.1.4 Community Factor/Areas
As businessrequiresgoodmanagementof impactsinoperationswiseforcommunitiesisrealizedby
Sime Darby.Throughoutoperations,Sime Darbyprovidethe communitywithemployment,raising
the livingstandardandguide communitywithneedsandconcerns.Therefore,SimeDarbyhave
directand indirectimpactsinthe community.Programmesinclude skillsdevelopmentsuchas
AustralianIndigenousCommunityProgramme.For20 weeks,Sime DarbyconductsanIndigenous
CommunityPre-VacationSchoolsincludingone week workingonteambuildingexercisesandwork
skillsinthe SalvationArmyLife SkillsCamp.There are alsoWork Preparationcoursesprovidedalong
at the end,traineeswouldreceive Certificate IIforResourcesandInfrastructuresWorkPreparation.
In Malaysia,realisingeducationiscruciallyimportant,HamanaChildAidSocietySabahcollaborated
withPlantationDivisionprovidingformal educationforchildrenstayinginthe estates,childrenof
migrantworkersspecifically.Sime Darbyfundthe construction of HamanaLearningCentre,the
teachermanagementandfacilitiesaswell.

8. 2.1.5 Social
i. Volunteering program
Sime Darbyhave come upwitha volunteeringprogram(SDVP) Sime DarbyVolunteeringProgram.
Thisactivityengagesbothinternal andexternalstakeholders,collaboratingmanydiversityof
organizationsandbodiesaswell forprojectpartners.SDVPwaslaunchedin2010 aimingfor
increasingemployees’spiritde corps,promotingcamaderie,enhancingthe belongingsenseand
applyingfosterteamwork.
ii.DonationtoHospisMalaysia
Sime DarbyMotors DivisioncollaboratingwithYayasanSime Darby(YSD) andHyundai-Sime Darby
Motors Sdn Bhd(HSDM) have donateda car, Hyundai Matrix 1.6 to HospisMalaysia.Thiscar would
be usedto transportworkersthere,mainlydoctorsandnursesintheirHome Care visitduration.
That car comesalongwith5 years warranty.
iii. Scholarships for Liberia
For the secondtime,YSDhave providedscholarshipsforover32 Liberians,allocationof USD500,000
to helpthemregardingtopursue tertiaryeducationinMalaysiaandLiberia.2studentswill enrol
mechanical orcivil engineeringcoursesinNational Universityof Malaysia(UKM).The rest30
studentswouldpursue underengineeringandtechnical Vocationalandagriculture studiesinthe
UniversityOf Liberia,StellaMarisPolytechnic,Bomi Community College,CuttingtonUniversity and
Sinje College.Thisispartof Sime Darby’scorporate social responsibilityinitiativeinthe locations
Sime Darbyoperates.

9. 2.2 ControversiesinSime Darby
IssuesinLiberia,Sime Darbywasaccusedforviolationof local community’slandrightwhich
concessionof 220,000 hectaresof farm landinvolved.Local environmental andhumanrightgroupin
LiberiaclaimSime Darby’scontract doesnot take count of ownershiprightsof those wholive inthe
concessionarea,mainlyrural communities.A formal complaintwasmade in2011 by a
representativesinone communitytoRoundtableonSustainablePalmOil (RSPO) criticizingthe
contract. But anyhow,Sime Darbydeniedthe case bycontendingthe contractwaslegal andhave a
completionwithnoevidenceprovingitdoesnotviolate humanright.Inaddition,Sime Darbywas
alsoaccusedfor lightingfiresinIndonesiaplantationin2013 whichcause pollutioninSingaporeand
Malaysia.The case wasalso deniedbySime Darbyfornoproves.

10. 3.0 ETHICAL THEORY
Accordingto Crane and Matten,2010 the mainprinciple/rule todetermine asituationif itsrightor
wrongis underthe usage of ethical theory.Below asstatedare the rankingfromgood to worse in
Sime Darby:
3.0.1 Employee and Rights
Sime Darby respecthumanrights. Nousage of childrenlabourandcame up witha CPPprogram to
protectthem. ZeroHarm procedure inworkplace. Safetyisconsideredimportantfortheir
employeesinSime Darby.OSHASisalsobeingadaptedtoempowerthe strengthof managementfor
safetyandSIME programfor determiningemployees’behavioural waytopreventaccidentsand
injury. Programme suchasLTIP, Long TermIncentive Planwhere the employees’wouldbe provided
withbenefits,annual bonus,shorttermincentiveplanandbase salary.Thisenablesemployee tobe
more proactive intheirprofessioninordertoreceive all those compensations.Thisactivityisto
maintaintheiremployees’foralongtermand to satisfytheirneeds,sothe theoryof Rule
Utilitarianismisappliedhere. Theygive concerntoproducingmore pleasureforthe societyinlonger
term.COBC CommunicationandAwarenessPlanandaportal page was launchedtooforthe usage
of the employees’. Sime Darbyisanti-corruptionbasedorganization.Theyhave solvedmore than13
casesin the past 2 years regardlessposition. Forthat,ethical theoryof Consequentialism2isapplied
as it iswrongto have such habitsinan organization.
3.0.2 Community
Sime Darbyhave directand indirectimpactsinthe community.Sime Darbytaughtpeople through
programme like AustralianIndigenousCommunityProgramme forAustralianindigenouscommunity
and Hamana ChildAidSocietyforSime Darby’sworkingmigrant’schildreninSabah.Itconsumes

11. time andeffort,yetSime Darby continuestotake chances.TheyusedUtilitarianism1ethical theory
inorder to see changesingrowingchildren’seducationsystem.Moreover,SimeDarbyissocially
active inlendinghands.Theyhave conductedvoluntaryprogramstohelpcommunityingeneral,
donationtoHospisMalaysiainterms of providingthemfacilitiestoaccommodate theirserviceand
alsoscholarshipsforLiberianstudentsinMalaysiaandLiberia. Ethical theoryof Virtue theory2was
impliedfromSime Darby’saction.Theyintendto helpthe communityasmanywaysas possible to
bringthe bestfrom them.
3.0.3 Environment
The leastbestactivityof Sime Darbywouldbe inenvironmentalaspect.The ethical theoryusedis
Consequentialism.Whenthe environmentissaferwithall the developmentaround,itisa goodand
morallyjudgedresulttothe worldandpeople around.Sime Darbydidagoodjob inmaintaining
environment.Sime Darbyconductresearchinmanagingimpactsinclimate changingregardingto
the GreenHouse Gases (GHG).RSPO,the non-profitassociationandtheiractivitiestoprotectthe
environment.Maintainzeroburningplantationmethod,stoppingthe usage of herbicide,Paraquat
eventhoughitisnot bannedbutfor itsharmingcapability.Targetedstake of Carbonemissions
intensityforreductionandpeatlandmanagementiscrucial asit seems.Sime Darbyrefusestotake
any chancesinany substancesthatmighthurt the environment.
3.0.4 Products and Services
Sime Darbyprovidespropertyandmotorservicestoo.Inmotorservices,theycombine handswith
Hyundai inhandlingthe vehicleanditsparts.For property,theyare enhancingdevelopmentareas,
replacingcommercial landandcreatingrecreationalactivityforinstant. Theyhave developedmost
areas inSelangordistinctforexampleinthe name of development.Ethicallytheyhave applythe

12. Non-Consequentialism.Theyhave tookthe rightdecisioninbringingupindustrial placesinKlang,
Shah Alamandmore places.
Recommendations
Withall the developmentplansahead, SimeDarbylosesitscharminmaintaining preservingtheir
productand service quality.Nopointof choppingawhole forestfordevelopmentandplantingjusta
tree.Asmuch developmentplansare made,thatmuch preservationof environment andservice
shouldbe done.Casesof takingownershipof concessionandrural areasfor developmentshouldbe
avoidedasthat isalsoa wayof preservingthe brandname.Insteadof takingovertheirplace called
home,Sime Darbycouldactuallycollaborate more planswith maintainingtheirenvironmental home
untouched.
Notonlythat, theycouldempowertheirnegotiationprocedurestoabetterstandard.To the
managementdepartment,theyshouldmanage abetternegotiationstepsasnoteveryone wouldbe
able to understandthe methodof howSime Darbyworks.If theygave a little extraattentiontothe
case back in2011 inLiberiaforcommunity’slandright,theywon’tbe ablack spotinsuch huge
reputationintheirservice.

13. Conclusion
The Corporate ResponsibilityforSime Darbyisproventhroughtheirwayof sharingvalue creation.It
isnot done by onlygoodgovernance butthe effortSime DarbytookforCommunity,Workplace,
EnvironmentandMarketplace.Theyfocusonmaintainingagoodvalue economically,legally,
ethicallyandthroughregulatorycompliance.Rulesof responsibilityishow Sime Darbywouldbe
presentingtheirCRvalues.Itisfocusedtoget profitfinanciallyandtobe goodin strategicgrowth
wise,engaginggoodrelationshipwithstakeholderandcustomers,preservingenvironmentand
maintainingastrategicphilanthropic.There are manydepartmentsandfunctionsinSime Darby
itself tomake sure CR valuesare beingimplemented.ForSime Darby,itiscrucial to integrate CR
valuesintheirbusiness.