MISC Annual Report 2019

ISO 37001 Anti-Bribery Management System In 2019, MISC Berhad and MHB attained the ISO 37001 Anti-Bribery Management System certification from SIRIM. The target is for all subsidiaries within the Group to be ISO 37001 certified by the end of 2020. This reinforces the Group’s zero tolerance policy against all forms of bribery and corruption and signifies MISC’s commitment to prevent, detect and respond to bribery incidences. The standard also includes compliance to laws, regulations and other voluntary commitments. Maritime Anti-Corruption Network (MACN) MISC is a member of the MACN, a global business network working towards the vision of a maritime industry free of corruption that enables fair trade to the benefit of society at large. Our participation in MACN is aligned to the United Nation’s Sustainable Development Goals (UNSDGs), in particular, UNSDG 16 for Peace, Justice and Strong Institutions and UNSDG 17 for Partnership for Goals. Anti-Competition & Anti-Trust MISC’s policy is to conduct its business activities in accordance with competition laws in areas of its operations and to avoid anti- competitive behaviours at all times. Employees are required to act fairly towards business partners, competitors and government authorities in accordance with proper business practices and in compliance with competition laws. Whistleblowing MISC Group’s Whistleblowing policy provides an avenue for all employees to disclose and report any suspected unethical and/or unlawful conduct involving our employees. The policy provides clarity of oversight and responsibilities of the whistleblowing process, the reporting process, protection to whistleblowers and confidentiality afforded to the whistleblowers. The three whistleblowing channels are available on MISC Group’s website and include email, e-form through portal or website and hotline. The Whistleblowing policy is managed by the Whistleblowing Secretariat, deliberated at the Whistleblowing committee level and reported to the Board. In 2019, five whistleblowing cases were received and investigated. Human Rights Commitment & Modern Slavery Policy and Statement In 2019, MISC Group established its Human Rights commitment and Modern Slavery policy and statement. Following this, a social risk assessment encompassing human rights elements on community well-being, labour and working conditions as well as third party and security-related activities were initiated by MISC’s Human Rights Working Group for some of our operations. Awareness programmes were conducted for all employees and contractors within the supply chain to communicate MISC’s commitment initiatives related to human rights. Data Privacy In 2019, MISC’s Corporate Privacy Policy was refreshed to incorporate additional core privacy and personal data protection values. This is aligned with the General Data Protection Regulation (EU) 2016/679 (GDPR) on data protection and privacy in the European Union (EU) and the European Economic Area (EEA) as well as transfer of personal data outside the EU and EEA areas. As MISC operates globally, the decision was made to incorporate GDPR elements into our existing policy. An awareness roadshow was rolled out to all employees and third party on the revised policy. Public Policy Positions/Political Contributions MISC does not allow for any political contributions, or the use of MISC’s facilities, resources and equipment for any political related activities, campaigns or functions so as not to compromise its interest, nor do we receive any form of financial assistance from the government. Employees are also prohibited from using their position in MISC to influence political contributions and support, as stated in our Employee Handbook. Third Party Due Diligence and Contractual Provisions MISC’s Third Party Compliance Due Diligence Operational guidelines state the requirements of conducting due diligence with the aim to reduce risks when entering into contractual relationship with third parties and business partners. The guidelines set out the requirements to complete Know Your Customer Questionnaires (KYCs) or in conducting Enhanced Due Diligence (EDD) for high risk counter-parties, imposed on all counter- parties and compliance risk assessments on areas such as anti-corruption, data privacy and human rights. All red flags highlighted from the questionnaires or EDD need to be appropriately mitigated with action plans. Standard contractual compliance clauses such as CoBE, data privacy and human rights are provisioned in all contracts and invitation to bid documents. Making the disclosure via one of the reporting channels Administers, classifies and evaluates disclosures registered under Whistleblowing Register Deliberates on the disclosure and decides on the next course of action Notified on the outcome of the disclosure Whistleblowing Policy Process of making disclosure for employees Conducts investigation and issues report Deliberates on the investigation report and decides on the next course of action Invokes disciplinary action process & procedures WHISTLEBLOWER WHISTLEBLOWING SECRETARIAT (WBS) HUMAN RESOURCE MANAGEMENT (HRM) Management Discussion & Analysis INVESTIGATION TEAM Operating Responsibly WHISTLEBLOWER COMMITTEE (WBC) WHISTLEBLOWER COMMITTEE (WBC) WHISTLEBLOWER 157 156 OUR BUSINESS PERFORMANCE MISC BERHAD PEOPLE. PASSION. POSSIBILITIES ANNUAL REPORT 2019