VALUES AND VALUE CREATION FROM THE MATRIX PERSPECTIVE The integrated approach comprising focus on both creating and sustaining financial and nonfinancial values is increasingly becoming the basis for the business purpose of organisations, as companies seek to find continued relevance and competitiveness amidst a post-pandemic environment. It is clear to businesses that business as usual and that the philosophy of profit first and profit above all else, will not support the long-term resilience of businesses in a considerably changed operating environment, where the voice of stakeholders, environmental concerns and good corporate governance are fast becoming the licenses for companies to remain in operations. The integrated perspective to value creation is fast becoming the new normal for corporates globally. Financial values Financial values Material ESG matters and stakeholder views Material ESG matters and stakeholder views Value Creation Value Creation The single minded focus on revenues, earning and quantifiable business and operational KPIs is increasingly being expanded to include other considerations, beyond the typical financial perspective. Today, matters material to ESG, society, regulators and investors, external trends and developments aggregate together towards redefining value creation from a larger perspective. Legacy value creation perspective: Driven by short-term, perhaps immediate financial and business goals revolving around revenues, earnings, shareholder dividends and expansion of presence and capacity only. Little to no visibility to ESG beyond mandatory regulatory compliance. The same for society’s interest (beyond product quality and customer satisfaction). The new (and increasingly embraced) value creation perspective: Both financial and non-financial performance are measured across a triple bottom line of ESG considerations together with considerations of impacts on stakeholders. INTEGRATED ANNUAL REPORT 2023 MATRIX CONCEPTS HOLDINGS BERHAD 73
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