MISC Annual Report 2018

HIGHLIGHTS OF THE YEAR OUR BUSINESS OUR LEADERSHIP OUR PERFORMANCE OUR COMMITMENT TO SUSTAINABILITY OUR GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION 50 TH ANNUAL GENERAL MEETING 153 MISC BERHAD ANNUAL REPORT 2018 152 PROGRESS MOVING FORWARD • Continuous communication and awareness programmes through the ‘See Speak Support’ Campaign, to raise awareness on the MISC Code of Conduct and Business Ethics (CoBE) and Whistleblowing. • Completed Compliance and Ethics Benchmark Review and Culture Survey internally where MISC has exceeded targeted compliance maturity level of 3 in 2018. • Rolled out and implemented training programmes for employees as follows: -- CoBE training included in induction session for new employees. -- Introduction of annual refresher training course through e-Learning with a short video and mandatory assessment. -- CoBE awareness session for third parties to MISC, with focus on MISC’s vendors, included as part of the agenda for MISC Group Contractors HSSE Forum on 15 November 2018. -- Specific training on anti-bribery legislation and adequate procedures for directors. • To continue with quarterly “See Speak Support“ awareness programmes. • Continuous improvements to achieve level 4 maturity by 2020 in all compliance and ethics areas. • Continue to monitor, review and assess the effectiveness of compliance and ethics initiatives including the communications and awareness programmes. • Continuation of the: -- CoBE annual refresher training course for employees. -- CoBE awareness and training sessions for Third Party Service Providers. -- CoBE training for Board Members. • Compliance champions to be appointed to cover all jurisdictions where MISC operates. • Implementation of the areas for improvements following the Stage 2 ISO 37001 Anti Bribery Certification Audit. • ISO 37001:2016 Anti Bribery Certification exercise to be completed for the subsidiaries. • Continue to ensure third parties sign the Declaration and Integrity Pledge and comply with COBE for third party service providers or its equivalent. MISSION OBJECTIVES To maintain a sustainable governance and business ethics framework • Transparency & Trust PROGRESS MOVING FORWARD • Ensuring adequate compliance resources through expansion and restructuring of compliance function and appointment of Compliance Champions from all business units/ service units. Training sessions were also conducted for appointed Compliance Champions. • Commenced ISO 37001:2016 Anti-Bribery Management System Certification exercise. The following has been completed: -- MISC Anti-Bribery Management System Manual. -- Internal Audit Review. -- Top Management and Governing Body reviews. -- Stage 1 Audit by SIRIM. -- Stage 2 Audit by SIRIM. -- Successfully certified by SIRIM on 28 January 2019. • Enhancement of the Supply Chain Management by: -- Finalising the Declaration and Integrity Pledge and CoBE for Third Party Service Providers. -- Commencing Vendor Risk Assessment. • Developed and launched Whistleblowing (WB) Management System (We Care) for users to report on any wrongdoings. • Formalisation of the Human Rights Working Group to address Human Rights issues and develop related policies and statement. • Continue with Vendor Risk Assessments. • To develop framework and criteria for high risk vendor audits. • Continuous WB awareness session on availability of WB reporting channels. • Continuous management of the WB complaints in line with WB Policy and Procedures. • Continuous improvements of the WB Management procedures. • Continuous Quarterly Reporting to BARC on WB matters. • Adoption of a Human Rights Commitment, development of Modern Slavery Policy and Annual Modern Slavery Statement. • Conduct Social Risk assessments and due diligence on human rights for identified high risk operations as identified through the Social Risk assessments. • Planning and development for the inclusion of Sustainability on Board agenda according to Bursa guidelines. • Present to Board of Directors on MISC sustainability programmes and initiatives. SUSTAINABILITY STRATEGY UPDATES As a company with a vast global outreach that operates across markets and cultures, conducting ourselves with the highest standards of integrity is a key priority of MISC. Our strategic approach is focused on embedding business ethics and ethical conduct as a cultural component within the organisation, as we aspire to achieve excellent financial and operating results whilst adhering to the highest standards. GOVERNANCE & BUSINESS ETHICS 2020 TARGETS 4. Business conduct & ethics Business ethics and ethical conduct embedded as a cultural component within the organisation 5. Board oversight on sustainability Formal inclusion of sustainability on the Board agenda