MISC Integrated Annual Report 2020

The Survey Results The 2020 results indicate overall improvements from the first survey in 2015. MISC Group employees are confident that the management is demonstrating positive strong tone from the top by supporting the effective implementation of ethics and integrity intiatives within respective business units and subsidiaries. COMPLIANCE AND ETHICS PROGRAMME – ACTIVITIES IN 2020 ANTI-BRIBERY AND CORRUPTION Bribery and Corruption Risk Management The first bribery and corruption risk assessment was conducted in 2017. In October 2019, MISC Berhad commenced its first review and update of more comprehensive bribery and corruption assessment for each business units’ and service units’ key activity/ process. A total of 56 bribery and corruption risks identified with 36 risks documented based on business units’ and service units’ key activities/processes. In 2020, the Risk Management Committee (RMC) agreed for the bribery and corruption risk to be linked to the Enterprise Risk Management (ERM) in 2021 where the key risk indicator will now include a new leading indicator in MISC Berhad’s risk register which will capture the Anti-Bribery Management System (ABMS) audit outcomes. ISO 37001:2016 Anti-Bribery Management System (ABMS) Journey for MISC Group SURVEY ANALYSIS - COMPLIANCE AND ETHICS SURVEY 2020 MONITORING OF BRIBERY/CORRUPTION RISK MITIGATION CONTROLS Leadership 4.13 4.32 3.23 3.72 3.77 3.28 4.66 4.63 4.22 4.88 4.14 3.92 4.02 4.66 4.24 4.08 4.60 3.98 4.20 3.60 Whistleblowing & Investigation Ethics Resources Bribery & Corruption Programme Ethical Risk Assessment Ethics Communication Ethics Training and Education Comparison Study: Survey Conducted in 2015, 2018 & 2020 2015 2018 2020 OPERATING RESPONSIBLY MISC RISK REGISTER 2021 Compliance & Ethics - KRI Lagging indicators Non-Compliances e.g. PDPA, MACC Act, etc Leading Indicators (NEW) Mitigation Action Plans as per the Corruption Risk Assessment reviewed by Group Internal Audit/ External Audits Audit opinion on ABMS related audits from Group Internal Audit/External Fulfills Adequate Procedures requirement Since 2019, MISC, MHB and AET have received certification for ISO 37001:2016 ABMS. Moving forward, MISC Group targets to complete the ISO 37001:2016 ABMS certification for Eaglestar, MMS and ALAM by the end of 2021. REGULATORY AND LEGISLATION (R&L) REGISTER As a diversified multinational, the Group’s businesses are subject to laws and regulations of all the countries in which we operate. MISC has put in place measures to ensure that our employees and partners adhere to all applicable policies, procedures, laws and regulations of the countries in which we operate and consistently upholds the highest standards of integrity and accountability. We have developed an R&L Register that contains the list of relevant laws and regulations to MISC Berhad’s operations based on legal operating entities and by functions within MISC Berhad. This will eventually cover the whole of MISC Group – including foreign legislations. SEE. SPEAK. SUPPORT. PROGRAMMES MISC had launched the “See, Speak and Support” Campaign back in October 2017, with the objectives of highlighting, and creating awareness, on MISC’s principal elements of the CoBE. There are three main themes: We have zero calls at ports in 20 countries that have the lowest rankings in Transparency International’s Corruption Perception Index. In 2020, the awareness sessions were conducted via online platforms on a quarterly basis and was conducted by distinguished external speakers and actively participated by an average of 250 employees per session. Quarter Topic Quarter 1 Conflict of interest The insightful talk touched on the duty as an employee to declare any conflict of interest, the implications of being involved in a conflict of interest situation and shared on potential conflict of interest situations. Quarter 2 T.R.U.S.T (Compliance towards corporate liability) The talk focused on Section 17A Corporate Liability Provision of the Malaysian Anti-Corruption Commission (MACC) Act 2009 and Guidelines on Adequate Procedures, in light of the enforcement of the Corporate Liability Provision on 1 June 2020. Quarter 3 Confidentiality obligations Touched on the definition of upholding confidentiality in law and as stated in the MISC CoBE, duty of care that is imposed on employees whilst being employed in MISC as well as post-employment obligations and lastly case studies related to confidentiality breach. Quarter 4 Conducive workplace - Free of discrimination and harassment The topic covered the meaning of creating a conducive workplace environment, types of discriminations and harassments that could take place in an organisation as well as sharing of case studies. SEE - If you see something or hear something that makes you feel uncomfortable, do not ignore it. SPEAK - It takes courage to speak up. Talk with your supervisor, Human Resource division or the Compliance division. SUPPORT - Do not underestimate the power of support. It can help a colleague to stand up and take action. ///// Sustainability / Financial Review / Business Review / Leadership / Governance /// MISC Berhad / Integrated Annual Report 2020 7 232 MISC Berhad / Integrated Annual Report 2020 7 233 /// Governance / Leadership / Business Review / Financial Review / Sustainability ///// Section Section