Prime Minister’s CSR Award:Community and social welfare

2010

Present by:Noorazlin Ani & Suhana Salleh

LECTURER:Assoc. Prof. Dr. Jamilah Hj. Ahmad, APR, FIPR

CIMB CSR Movie

http://youtu.be/MBldvgVGPbo

Corporate Responsibilityis an important aspectof CIMB Group. Itis embedded in theircorporate goal ofbecoming the mostvalued universal bank inSoutheast Asia.

COMPANY PROFILECIMB Group is a regional universal bank operating in high growth economies in ASEAN. CIMB Group has the widest retail branch network across the region and is an indigenous ASEAN investment bank.

1) CIMB INVESTMENT BANK2) CIMB BANK

3) CIMB ISLAMIC4) CIMB NIAGA

5) CIMB SECURITIES INTERNATIONAL

6) CIMB THAI

CIMB GROUP

NATURE OF BUSINESS:Consumer Banking, Corporate & Institutional Banking & Markets and Group Asset Management, Insurance & Takaful. CIMB Islamic operates in parallel with these businesses, in line with CIMB Group’s dual banking model.

Headquarter in Kuala Lumpur, presence in 14 countries, covering ASEAN and major global financial centre, as well as countries in every country of customers where have significant business and investment dealings. 40,000 employees, CIMB Group reaches 81% of the ASEAN population, representing 89% of the region’s gross domestic product.

LATEST NEWS

GROUP STURUCTURE

CORPORATE SOCIAL RESPONSIBILITYCIMB corporate social responsibility initiatives are implemented through CIMB Foundation, a non-profit organisation set up specifically for this.

• SET UP AS NON-PROFIT ORGANISATION TO IMPLEMENT CIMB GROUP’S CSR &PHILANTHROPIC INITIATIVE

• Was launched in May, 2007 as the Corporate Social Responsibility (CSR) and philanthropic arm of CIMB GroupAbout

CIMB FOUNDATION

•create opportunities and build capacity of communities by equipping them with the necessary resources to improve the quality of life and promote sustainable development.

•Focus on the environment, socio-economic development, health, national unity and education.

Community Development

•support activities relate to sports development by providing financial support and opportunities to nurture young talents and athletes for the nation.

Sport

•provide community-based learning opportunities as well as facilitating access to knowledge and learning for people of all walks of life and age.

Education

3 AREAS OF FOCUS:

PEOPLE INVOLVED

Dato’ Mohd Shukri HussinChief Executive Officer, CIMB Foundation

Datuk Dr. Richard Leete Tan Sri Dato’ Md Nor Yusof Puan Rosnah Kamarul Zaman

Board of Trustees

Tan Sri Dato’ Seri Siti Norma YaakobCIMB Foundation Chairperson

The Board will be assisted by a Working Committee. The Working Committee will evaluate projects submitted to the Foundation against a pre-determined set of criteria. Projects that satisfy the criteria will be recommended by the Working Committee to the Chief Executive Officer of the Foundation or the Board for approval.

WORKING COMMITTEE

COMMUNICATION TOOLS• INTERNET:• CEO Blog• CIMBnet• HR Newsletter - Yours

Truly HR• CIMB News

Communication tools

Public relation

and other print

material

Public service

broadcast and video

Media relation & spoke person

and event

Facebook

• 1,000,000 likes

Twitter

• 6,500 follower

Website

• 7, 500,000 visitors

* As of 26 February 2012

Medium

Number

SOCIAL MEDIA

An effective communications program will combine some or all of the following tools to communicate the intended message to the target audience:

•The tools used depend on the strategic goals, the objectives of the communication program, the profile of the target audience, the various advantages and disadvantage of each tool, and the communications budget.•Whichever tools are used, it is important to maintain consistency in the aesthetic appearance, linguistic style and tone, and message (including facts, figures, slogans, quotes) used in all the communications products for a single campaign. •Without this consistency, the message will not be as effective, even if the target audience is exposed to several of the communication products. Worse still, a lack of consistency may confuse or distract the target audience.

Using communication tools

Contribution for charity 86.66%Advertising 12.41%Transportation 0.2%Annual general meeting 0.33%Other 0.37%

CIMB EXPENDITURE 2010

CONTRIBUTE FOR CHARITYADVERTISINGTRANSPORTATION COSTANNUAL GENERAL MEETINGOTHER

RM 19,376,348EXPENDTOTAL

“Bringing our vision closer to stakeholders”

(RM Percentage) Community Development RM7,834,813 & percentage is 36%

Sports RM5,629,018 & percentage is 26%

Education RM6,209,939 & percentage is 28%

Donations 2,300,446 & percentage is 10%

Total RM21,974,216 & percentage is 100%

GRANTS DISBURSED IN 2010

PHILANTHROPIC Responsibilities Be a good Corporate Citizen. Contribute resources to the community; improve quality of life.

ETHICAL Responsibilities Be ethical.Obligation to do what is right,

just and fair; Avoid harm.

LEGAL Responsibilities

Obey the Law Law is society’s codification of right and wrong;

Play by the rules

ECONOMIC Responsibilities

Be Profitable The foundation upon which all others rest

Source: Carroll (1991)

The Pyramid of Social Responsibility

In 1971 the Committee for Economic Development used a "three concentric circles"approach to depicting CSR. The inner circle included basic economic functions i.e growth, products & jobs.

The intermediate circle suggested that the economic functions must be exercised with a sensitive awareness of changing social values and priorities.

The outer circle outlined newly emerging and still amorphous responsibilities that business should assume to become more actively involved in improving the social environment.

LEVEL 1 ECONOMIC

LEVEL 1 ECONOMIC

CIMB Group is a regional universal bank operating in high growth economies in ASEAN and has the widest retail branch network across the region and is an indigenous ASEAN investment bank.

Its principal role is to produce services that consumers needed and wanted and to make an acceptable profit to its clients.

The business is also bringing an economic growth to our country.

CIMB maintain a high level of operating efficiency.

LEVEL 1 ECONOMIC

CIMB is operating its business according to the profit motive and at the same time their business is complying with the Malaysian Laws and regulations as well as local governments in the respective country that they are operating.

Legal responsibilities reflect a view of “codified ethics” Ethics tend to be codified into a formal system or set of rules which are explicitly adopted by a group of people) in the sense that CIMB embody basic notions of fair operations as established by our law makers.

LEVEL 2 LEGAL

Ethical responsibilities embody those standards, norms, or expectations that reflect a concern for what consumers, employees, shareholders, and the community regard as fair, just, or in keeping with the respect or protection of stakeholders' moral rights.

It has often been seen that leadership by example is the most effective way to improve business ethics.

Under this category, CIMB is changing its stakeholder’s ethics/values precede the establishment of law and become the driving force i.e in environmental.

LEVEL 3 ETHICAL

• The environment

3 main methods:

- Enabling CIMB staff and business to become more environmentally-friendly.- Offering “Green Products” and services to their customers.- Empowering communities to go green by

promoting environmental awareness projects and campaigns, with a focus on schools and universities.

•Project Highlights- Office energy efficiency- CIMB Niaga Green Office Project- Leveraging on technology- Teleconferencing- Virtual Career Fair:- e-Procurement system:- New Corporate Head Office- Tree Planting

•Project Highlights- Waste management

- Recycling & Solid Waste Disposal Help us help The Environment - Promoting a Green Lifestyle to Universiti Kebangsaan Malaysia (UKM) - No Free Plastic Bags Campaign - Mangrove conservation and rehabilitation - River Engineering and Clean-Up with

Universiti Sains Malaysia (USM)

CIMB encompasses of those its corporate actions in response to society’s expectation and be good corporate citizens. This includes actively engaging in acts or programs to promote human welfare or goodwill.

Examples of philanthropy include business contributions to financial resources or executive time, such as contributions to the arts, education, or the community.

LEVEL 4 PHILANTHROPIC

In line with the transformation of CIMB Groupwhich began in 2005, corporate social responsibilitybecame a key area of focus of the transformationagenda, in focusing and creating long-term sustainablebenefit for the stakeholders of the Group,including the communities which they serve.

LEVEL 4 PHILANTHROPIC

• Community DevelopmentEncompasses projects which create opportunities and build capacity of communities by providing them with the necessary resources to improve their quality of life and promote sustainable development.

CIMB PHILANTHROPIC

- CIMB focus on capacity building and empowerment of communities, in particular, disadvantaged groups, with the aim of increasing their income.

- In total, CIMB Foundation funded 30programmes with a total grant

amount of RM1.7 million in this area.

• Project Highlights - Awarded grant to Asia Community Service and Pertubuhan Ibu Tunggal Desa Keda, Teluk Berembang, Pulau Tuba, to produce 700 tie-dye bags which were to be used as corporate gifts at the Group’s Annual General Meeting

- CIMB also funded cooking and baking classes and equipment for single mothers. They were also taught basic accounting and how to market their products online. The aim of the project is for these single mothers to start their own home based businesses in future.

“I experienced one of the most touching moments in my life when I was in Padang for the launch of the seven schools built by the CIMB-The Star Padang Relief Fund. On stage a 10-year old girl read a tear-jerking poem about the trauma her community experienced during and in the aftermath of the 2009 earthquake. She then stepped off the stage, ended her poem with “we love you” in English, walked up to me and placed a scarf around my neck. That was probably the most meaningful award that I have ever received.”Dato’ Sri Nazir Razak, Group Chief Executive

• National Unity- CIMB also funds projects which use arts and culture as means of promoting

national unity i.e Chinese flower drum troop, Indian drums & kompang.

- In 2010 CIMB expand projects to pre-schools from various ethnicities

where a group of 200 pre-school children were taught Malay, Chinese and Indian traditional dances

• Health - Preventing kidney disease

The Group’s partnership with the National Kidney Foundation (NKF) entered its 3rd year in 2010.

- Community health screeningsCIMB Thai kick-started its Community Linkinitiatives with free health screenings for thecommunities located around its headquarters inthe Langsuan area of Bangkok.

- Preventable BlindnessIn 2010, we initiated a new focus area for ourhealth portfolio - preventable blindness.

Education

Supports projects that provide learning opportunities to the younger generation. CIMB Foundation sees this as an investment in driving the transformation towards a knowledge-based economy.

EducationCIMB efforts in education cover a wide range of topics. They range from English reading classes for the urban poor, to IT and other skills training for the disabled and underprivileged, to motivation and revision camps for school children.

Scholarship

This prestigious scholarship targets citizens of ASEAN countries, who have an outstanding track record of achievements, demonstrate passion for their work and have the potential to make significant contributions towards the development of the region.

THE CATEGORIES

CIMB-Niaga Scholarship Programme.

The scholarship programme involves the establishment of a fund for deserving Indonesian students from underprivileged backgrounds to advance their education in institutions of higher learning in Malaysia.

Providing quality education for rural schoolChildren

CIMB has adopted 10 rural schools under the PINTAR programme.

CIMB Group has had a history of supporting sports as part of its CSR activities. Quite apart from the commercial sponsorship of sportsevents which regard more as a branding exercise, the Group has a strong focus on sports development. Through sports development, CIMB creates opportunities for sportsmen and women of all ages and capabilities.

SPORT

• Squash• Golf• Badminton• Cycling• Football• Paralympics• Skateboarding

The CIMB ethical or moral component of CSR is also related to perspectives that reflect ONE of the three major ethical approaches to management - immoral, amoral and moral.

The principal goal is to flesh out what it means to manage CIMB stakeholders in an ethical or moral fashion.

MORAL MANAGEMENT & STAKEHOLDERS

Orientation towards Stakeholders:

CIMB recognised the following as its stakeholder

ShareholdersEmployeesCustomersLocal Community

As creating value is the corner stone of CIMB Group’s corporate philosophy, through its corporate responsibility agenda, CIMB extend the value creation beyond merely making profits for shareholders. Recognising that the stakeholders of the business extend to employees, customers, their partners and suppliers and even the communities in which they operate, CIMB has extended its core philosophy of value creation to all stakeholders.

CONCLUSION

In line with the transformation of CIMB Groupwhich began in 2005, corporate responsibilitybecame a key area of focus of the transformationagenda, with the launch of CIMB Foundation,transforming our approach from one whichwas ad-hoc and donations-driven to one whichwas focused on creating long-term sustainablebenefit for the stakeholders of the Group,including the communities which they serve.

In summary, the total CSR of CIMB entails the simultaneous fulfilment of “Carroll’s Pyramid of Social Responsibility” (1989)

Thank You

Bringing our vision closer to stakeholders