UCSI TERM ANSWEER D

1. Answer D:
(D) One of the principles of the Malaysian Code on Corporate Governance
(MCCG) 2021 that can be applied to AirAsia is Principle 3: Uphold Integrity in
Corporate Reporting and Meaningful Engagement with Stakeholders.
Principle 3 emphasizes the importance of maintaining integrity in corporate
reporting and establishing meaningful engagement with stakeholders. It promotes
transparency, accountability, and responsible decision-making to ensure that the
interests of all stakeholders are taken into consideration. This principle is crucial
for building trust and confidence among stakeholders, which is essential for the
long-term sustainability and success of any organization.
AirAsia, as a prominent Malaysian airline and one of the largest low-cost carriers
in the world, is subject to the MCCG principles, including Principle 3. Let's
explore howAirAsia can apply this principle in its corporate governance practices.
Integrity in Corporate Reporting:
AirAsia can demonstrate integrity in corporate reporting by ensuring that its
financial statements, reports, and other disclosures accurately represent the
company's financial performance, risks, and prospects. This involves adhering to
accounting standards, providing timely and accurate information, and avoiding
misrepresentation or manipulation of financial data.
For example, AirAsia should provide transparent and comprehensive financial
statements in its annual reports, including balance sheets, income statements, and
cash flow statements. These reports should be prepared in accordance with
relevant accounting standards and audited by independent external auditors to
ensure their accuracy and reliability. By doing so, AirAsia showcases its
commitment to integrity in corporate reporting, enabling stakeholders to make
informed decisions based on reliable information.
Meaningful Engagement with Stakeholders:
AirAsia can establish meaningful engagement with its stakeholders, such as
shareholders, employees, customers, suppliers, and the wider community. This
involves maintaining open lines of communication, actively seeking feedback,

2. and considering the interests and concerns of stakeholders in decision-making
processes.
For instance, AirAsia can organize regular shareholder meetings to provide
updates on the company's performance, strategy, and future plans. These meetings
should allow shareholders to ask questions, express their views, and vote on
significant matters. By facilitating two-way communication and considering
shareholders' input, AirAsia demonstrates its commitment to stakeholder
engagement and ensures that their interests are duly considered.
Similarly, AirAsia can engage with its employees by establishing channels for
feedback and addressing their concerns. This can be done through regular
employee surveys, town hall meetings, or an employee representative council. By
valuing employee feedback and addressing their needs, AirAsia fosters a positive
work culture, enhances employee satisfaction, and improves overall
organizational performance.
Furthermore, AirAsia can engage with its customers by collecting feedback,
responding to complaints, and incorporating their preferences into its services.
By actively listening to customer needs and addressing their concerns, AirAsia
can enhance customer satisfaction and loyalty, ultimately leading to improved
business performance.
In conclusion, the Malaysian Code on Corporate Governance (MCCG) 2021
Principle 3, which emphasizes integrity in corporate reporting and meaningful
engagement with stakeholders, is applicable to AirAsia. By upholding this
principle, AirAsia can enhance transparency, accountability, and trust among
stakeholders. Demonstrating integrity in corporate reporting and establishing
meaningful engagement with stakeholders can contribute to AirAsia's long-term
sustainability and success in the highly competitive aviation industry.
(e)