MISC Integrated Annual Report 2020

Human Resource The professionalism and competency of employees are enhanced through structured development programmes and potential entrants or candidates are subject to a stringent recruitment process. A performance management system was established with performance indicators to measure employees’ performance and performance reviews are conducted twice annually. Action plans to address employees’ developmental requirements are prepared and implemented in a timely manner. This is to ensure that employees are able to deliver the expected performance so that the Group can meet its plans and targets. A structured Succession Planning framework was developed and implemented to identify and develop a leadership pipeline in the Group. The Succession Planning framework takes into account the potential successor’s performance track record, leadership capability and display of the MISC cultural beliefs. The Succession Planning framework also provides development plans to be mapped appropriately for each potential successor in order for them to be ready to assume critical positions as the opportunity arises. A special talent review session led by the Management Development Committee is conducted bi-annually to assess and gauge the identified talent pool’s suitability as well as their readiness level for the proposed critical position. To ensure that the organisation has the right competency and capability, a structured Functional Competency and Leadership Competency framework is applicable to all employees in the Company. The objective of the Functional Competency and Leadership Competency framework is to have a competent and capable workforce through a structured and holistic developmental process, which ultimately feeds into the talent pipeline for the Succession Planning framework. Through the framework, all employees are required to go through the functional and leadership competency assessment annually where they are assessed against the competency required for their roles and at their job levels respectively. Based on the competency gap identified from the assessment, employees are empowered to identify and propose suitable intervention plans to address their competency gap via one-on-one discussion with their supervisors. The Functional Competency and Leadership Competency framework, together with the Succession Planning framework, demonstrates the Group’s commitment towards developing future leaders of MISC. Compliance & Ethics The MISC Compliance and Ethics Programme 2020 was developed and approved in June 2016 (also formed part of the Sustainability Strategy 2025 under the Governance Pillar). The programme is a five-year strategic plan consisting of a set of action plans and deliverables to ultimately create a mature compliance and ethics culture within MISC whereby the aim is to achieve ‘robust’ maturity level by year 2020, where ethics and integrity become a part of all business conduct and transactions. The programme is a comprehensive programme which underpins the role of the Board and management in combatting bribery and corruption and provides enhanced training and communication programmes, and implementation of appropriate counter-party due diligence and anti-bribery risk assessments. A compliance unit is assigned with the responsibility to oversee the implementation of MISC Compliance and Ethics Programme and the Anti-Bribery Management System (ABMS), with direct access to the Board and management for issues relating to bribery and corruption. At the end of the five-year programme ending 2020, MISC has managed to successfully achieve and exceed the targets for the programme. In the past five years, MISC has put in place fundamental policies in line with the Code of Conduct and Business Ethics (CoBE) that extends to employees and directors within the MISC Group and third parties performing works or services for or on behalf of MISC Group. Internal controls including policies and measures addressing the critical laws namely the personal data privacy laws, economic sanctions, global export, competition laws and human rights/modern slavery laws through the following policies: • MISC as per the Anti-Bribery and Corruption Policy Statement (ABC Policy and Guidelines) and ABC Manual, has a zero-tolerance policy towards any form of bribery and corruption by employees or companies acting for or on behalf of MISC. The MISC CoBE and ABC Policy and Guidelines apply throughout the Group and reflect the Group’s commitment to fight against any corrupt or unethical practices in the course of conducting businesses in the jurisdictions in which it operates. This is further strengthened through the ABMS which sets out the requisite requirements to prevent, identify and respond to bribery. To further fortify the internal control processes and systems of the Company in respect of anti-bribery and corruption management, MISC has received certification as per ISO 37001:2016 (ISO ABMS) in 2019. The Bribery and Corruption Risk Assessment has also been completed to ensure MISC fulfils the requirements of the Guidelines on Adequate Procedures and is safeguarded against the new provision in the MACC Act (Amendment 2018) under Section 17A: Corporate Liability which was effective from 1 June 2020. There will be annual reviews and updates to the Bribery and Corruption Risk Assessment Report to ensure that the bribery and corruption risks including its ratings and mitigation measures are updated to fulfill requirements under the ISO ABMS and the Guidelines on Adequate Procedures. • MISC has established the Corporate Privacy Policy and Master Guidelines which demonstrate the commitment to handle and manage personal data in accordance with the general principles of personal data protection and applicable laws in various jurisdictions. • The Economic Sanctions and Export Control Policy and Guidelines underpin the Group’s commitment to comply with relevant economic sanctions and export control regulations in the jurisdictions it operates in, through identifying, mitigating and managing such risks. • MISC has a policy under the Competition Law Guidelines and its supporting protocols on meetings and information sharing, and merger and acquisition transactions for fully complying with competition laws of every country we operate in. The policy outlines the main competition laws applicable in most jurisdictions around the world and provides guidelines to ensure strict compliance with these rules in the day-to-day operations. • MISC Group has also adopted the Human Rights Commitment and Modern Slavery Policy on 24 May 2019 to ensure adherence to the CoBE, which outlines the standards and behaviours that the Group upholds, with emphasis on due respect for human rights and compliance applicable to global laws and rules. • For other relevant laws, MISC through the Regulatory and Legislation (R&L) Register, maintains regulations and legislations which can potentially impact the organisation. The R&L Register shall be the guide to ensure that MISC operates in accordance with the R&L requirements and for any potential exposures to be adequately mitigated. Dealing with third parties is part of MISC’s business operations and in ensuring that all business dealings are conducted in accordance with the MISC CoBE related policies and guidelines, due diligence exercises are carried out on all third parties as outlined in MISC’s Third-Party Compliance Due Diligence Operational Guidelines. There have been continuous awareness sessions through the “See.Speak.Support” campaigns since 2017 with the objective of highlighting and creating awareness amongst employees on MISC’s principal elements of the CoBE. The campaigns were aimed at promoting MISC’s whistleblowing channels and processes to employees. Continuous training on the CoBE and its related policies covering the critical laws have been conducted for employees, directors and third parties. The Group continues to monitor any potential conflicts of interest through the annual declaration by employees, and the receipt and/or giving of any gifts via the employees’ Conflict of Interest Register and employees’ Gift Register. The Group also continues to monitor and ensure effectiveness of the Compliance and Ethics Programme, which shall be further strengthened under the MISC Sustainability Strategy 2025 (Governance Pillar) especially in respect of compliance management, monitoring and assurance for the next five years. STATEMENT ON RISK MANAGEMENT AND INTERNAL CONTROL /////// Business Review / Leadership / Governance / Financial Statements / Additional Information / MISC Berhad / Integrated Annual Report 2020 9 304 MISC Berhad / Integrated Annual Report 2020 9 305 / Additional Information / Financial Statements / Governance / Leadership / Business Review /////// Section Section