GOVERNANCE At MISC, we believe a sound management system is key to good corporate governance. Our management systems and internal controls apply the core principles of good governance of fairness, accountability, responsibility and transparency. COMPLIANCE MANAGEMENT FRAMEWORK COMPLIANCE MANAGEMENT FRAMEWORK Embeds a compliance culture in MISC Group Guides management, business and operations in achieving compliance strategies and goals Identifies and proactively manages compliance risk and compliance obligations Prevent incidents of non-compliance Ensures corrective actions are put in place in a timely manner • Regulatory and Legislation Register • Group Policies on Critical Legal Areas • Anti-Bribery Management System Certification • Code of Conduct and Business Ethics • Bribery and Corruption Risk Management • Third-Party Risk Management • Conflict of Interest • Whistleblowing Management • Bi-annual compliance attestation by Head of Department of Business/ Service Units • MISC Group Annual myAssurance attestation programme on critical and operational legal areas • Management Reporting • Quarterly Reporting to BGRC/BAC • Communication and Awareness • Mandatory training on Critical Legal Areas, CoBE and Relevant Policies and Guidelines • Appointment of Compliance Champions in Business/Service Units and Subsidiaries • Compliance and Ethics benchmark and survey • Compliance and Ethics Feedback • Management Scorecard • Demonstrate tone from the top on ethical culture and behaviour • Ensure compliance to Rules, Regulations, and Governance LEADERSHIP CULTURE RISK MANAGEMENT MONITORING AND REPORTING COMPLIANCE LEADERSHIP MISC's Board and Management set the tone and provide guidance on what forms acceptable behaviours and actions expected from employees through a 'top–down' approach. This is based on our belief that Compliance Department cannot be solely responsible for compliance and internal assurance, but rather, it is a shared responsibility. Above and beyond that, the leadership team together with every employee will have to ensure compliance is maintained within MISC. Management Scorecard MISC is committed to foster a strong corporate governance, business ethics and compliance culture. Beginning in 2022, every business unit and service unit have a compliance scorecard that tied to their annual performance and remuneration. Raising awareness of the Code of Conduct and Business Ethics (CoBE) and Whistleblowing through our ‘See. Speak. Support.’ campaign Delivering comprehensive six Critical Legal Areas (CLA*) and CoBE training and refreshers sessions for employees, Directors and third parties Regular communications on various channels such as the MISC Compliance and Ethics intranet portal, email newsletters and workplace postings Communications and Awareness To meet compliance obligations, employees' knowledge and awareness must be continually refreshed and reinforced, and MISC’s expectations clearly communicated. The effectiveness of MISC's communications and awareness programmes is evaluated to ensure that employees are aware of the Group's Compliance and Ethics culture through periodical surveys. 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 Compliance department SUPPORT Do not underestimate the power of support. It can help a colleague to stand up and take action ‘See. Speak. Support’ Since 2017, we have been implementing the ‘See. Speak. Support’ campaign to raise employee awareness of MISC's key CoBE elements. Aside from that, the campaign aims to educate our employees on our six Compliance Legal Areas (CLA) and whistleblowing channels. The Campaign has three main themes as follows: *CLA : Ethics and Integrity, Personal Data Protection, Economic Sanctions, Export Control, Competition and Human Rights & Modern Slavery OPERATING RESPONSIBLY BUSINESS REVIEW COMPLIANCE AND ETHICS CULTURE At MISC, every employee is expected to have the right attitude and behaviour towards business ethics in order to create a sound compliance culture. This is critical to support and sustain an effective Compliance Management Framework towards achieving our intended outcomes. A strong culture of compliance is about infusing ethics into an organisation’s operations and MISC has a clear set of published values and expectations for employees to behave in a manner that upholds these values. MISC Berhad 194 Integrated Annual Report 2021 MISC Berhad Integrated Annual Report 2021 195
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