SSM’s CORPORATE RESPONSIBILITY INITIATIVES : A STRATEGIC COLLABORATION BETWEEN

SSM & UNICEF ON ENCOURAGING RESPONSIBLE BUSINESS & CHILD RIGHTS IN MALAYSIA

NORHASLINDA SALLEH HEAD, CORPORATE PLANNING & STRATEGY

COMPANIES COMMISSION OF MALAYSIA

WHY THE COMPANIES COMMISSION OF MALAYSIA DRIVES CR?

The Companies Commission of Malaysia (SSM) is placed in the bestposition to drive the CR culture among the corporate and businesscommunities in Malaysia.

WHY?

SSM is theRegistrar ofcompanies,businesses andlimited liabilitypartnerships in

in Malaysia.

SSM serves asthe startingpoint to dobusiness inMalaysia.

Existence ofSSM’sorganizationallinkage andnetworking.

Availability ofa ready pool ofauxiliarysupportiveelements.

SSM’S STATUTORY FUNCTIONS

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7. Advising the Minister on corporations and businesses in relation to the prescribed laws

1. Due administration of prescribed laws

2. Agent for the Government in administering, collecting and payment of prescribed fees and charges

3. Regulation of corporations and businesses

4. Promote corporate governance

5. Enhance and promote the supply of corporate information

6. Research and studies on corporate and business activities

Companies Act 1965

Trust Companies Act 1949

Kootu Funds (Prohibition) Act 1971

Registration of Businesses Act 1956

Subsidiary legislations under the above Acts

Promotion through SSM’s CR Agenda

Limited Liability Partnerships Act 2012

Foreign4,569

*As at 28 February 2014

NUMBER OF COMPANIES INCORPORATED

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TOTAL COMPANIES : *1,071,118

TOTAL ACTIVE COMPANIES : 444,544

LOCAL COMPANIES : 1,066,545

FOREIGN COMPANIES : 4,573

AVERAGE REGISTERED PER YEAR : 42,250

AVERAGE REGISTERED PER MONTH : 3,860

* As at 28 February 2014

TOTAL BUSINESSES REGISTERED

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TOTAL BUSINESS REGISTERED: 5,355,928

TOTAL SOLE-PROPRIETORSHIPS: 4,235,967

TOTAL PARTNERSHIPS: 1,119,961

AVERAGE PER YEAR: 261,897

AVERAGE PER MONTH: 27,490

Launched: 5 February 2013

*Total LLPs: 1,810

LIMITED LIABILITY PARTNERSHIP ACT 2012

*As at 28 February 20146

THE SSM CR AGENDA

Developed pursuant to SSM’sStrategic Direction Plan II (2010-2014) which envisages SSM as thedriver of CR by the end of 2014.

Agenda was launched on 30 June2009.

This Agenda with a tagline“Driving Business BeyondProfitability”, sets out SSM’sstrategic framework whichoutlines SSM’s approach ininculcating the culture of CRamongst companies & businessesin Malaysia, focusing on SmallMedium Enterprises (SMEs).

OBJECTIVES:

1. To nurture the culture of CR in the Malaysian business environment;

2. To encourage all companies to strive in striking an equilibrium between the

quest for profitability and creating a sustainable living environment;

3. Inculcate a corporate culture among Malaysian corporate players that values

and recognizes all CR initiatives pursued by corporations demonstrated as

creating premium for companies and businesses; and

4. Pursue and propagate good corporate governance in a more holistic basis.

THE SSM CR AGENDA PARAMETER

• Comprise of Malaysia Anti-Corruption Commission (MACC),Companies Commission of Malaysia (SSM), Malaysia Institute ofIntegrity (IIM), National Key Result Areas (NKRA) Anti-Corruption,Performance Management & Delivery Unit (PEMANDU), BursaMalaysia Berhad, Securities Commission & TransparencyInternational Malaysia

• To implement the Corporate Integrity System Malaysiaa

CORPORATE INTEGRITY

SYSTEM MALAYSIA

ROUNDTABLE MEMBERS

FORMATION OF STRATEGIC ALLIANCES

To collaborate in the area of CR, mainly focusing on research andadvocacy

To collaborate in the area of CR and corporate integrity

To collaborate towards enhancing the well-being of children throughthe practice of CR

NATIONAL UNIVERSITY

MALAYSIA INSTITUTE OF

INTEGRITY

UNICEF

WHY SSM & UNICEF ?

Formed a strategic partnership where a win-win to implement SSM’s CR agenda and UNICEF to make aware on responsible business and children’s rights.

UNICEF added value was to provide technical input in building institutional capacity (long-term) of SSM in children’s rights and business (advocacy documents and training).

SSM as a the regulatory body of all businesses and as a nationally mandated corporate registry are well positioned to set a change in business practice behavior especially in corporate responsibility.

BEST BUSINESS PRACTICE CIRCULAR (BBPC) 1/2010

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Serves as a general guideline tofacilitate employers in setting upchild care centres at the work placefor their employees.

Touches on:I. The general legal and regulatory

framework;II. The general procedures for the

registration of child carecentres; and

III. The main principles of childcare.

TOOL KIT ON HOW TO SET UP A CHILD CARE CENTRE AT THE WORK PLACE

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Complements the Best Business PracticeCircular 1/2010 on the Establishment ofChild Care Centres at the Work Place byCorporate and Business Employers

Touches on :I. The application of the principle of best

interest of the child;II. Recruitment of qualified staff;III. The importance of having child centred

programmes and curriculum;IV. The need for staff performance

monitoring;V. The need for human resource

management;VI. Financial resources; andVII. Registration procedures.

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BBPC 2/2011 ENTITLED “ESTABLISHING A CONDUCIVE WORKING ENVIRONMENT FOR WOMEN: NURSING MOTHERS PROGRAMME AT THE

WORKPLACE”

• Highlights the role that companies andbusinesses can play in supporting familyand child-friendly environment at theworkplace by endorsing a nursing mother’sprogramme.

• Lists the basic components for a nursingmother’s programme and guides onestablishing a nursing room.

• Lists the tremendous implementationbenefits that employers will gain fromcontributing to a nursing mother’sprogramme at the workplace.

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The objectives of this BBPC are :

To promote and support public-privatepartnership (PPP) in providing technicaleducation and vocational training (TEVT), asan alternative to mainstream educationespecially for school dropouts; and

To provide the corporate sector withguidance on responsible employment ofyoung workers who come from TEVTprogrammes, and respecting and supportingchildren’s rights based on the Children’sRights and Business Principles that waslaunched in Malaysia on 11th September2012.

BBPC 4/2013 ENTITLED“EDUCATION FOR SUSTAINABLE DEVELOPMENT: PROMOTING

TECHNICAL AND VOCATIONAL TRAINING (TEVT)”

VOLUNTARY DISCLOSURE OF CSR INITIATIVES

• SSM plans to introduce a provision that willencourage non-financial reporting - includesvoluntary reporting on CSR initiatives in the newCompanies Act in 2014.

• This would indirectly place companies in aposition to re-strategize their business operationsinternally and externally and in many cases willimpact consumers, employees, suppliers andcommunity stakeholders, including children.

The framework of the CRBP could provide guidance to many companies on howbest to formulate their CSR work and strategic engagement whether they arean SME part of a global supply chain or whether they are a public listedcompany committed to producing annual company sustainability reports andgenerally all companies as a whole.

BBPC 5/2013 ENTITLED “CORPORATE RESPONSIBILITY : GUIDANCE TO DISCLOSURE AND REPORTING

• Promote the importance and relevance ofcorporate responsibility (CR) disclosureamong companies and businesses inMalaysia.

• Raise awareness on disclosure in line withsocietal need and to provideunderstanding on the new non-financialreporting under the new Companies Act.

• Provide an overview of availableapproaches, tools and resources andstandards to facilitate an accurate andreliable disclosure.

The objectives of this BBPC are:

ENHANCING THE DOMESTIC LEGAL & POLICYFRAMEWORK ON CORPORATE RESPONSIBILITY

Various laws relating to CR:Environmental Law

Employment Relations LawConsumer Protection

Labour Laws

Ratified UN Conventions relating to CR:

UN Convention No. 8 (Elimination of Discrimination against Women)UN Convention No. 11 (Children’s

Rights)ILO Convention no. 138

(Minimum Age)

Bursa Malaysia Listing Requirements – PLCs:

Provide statement on CR activities in Annual Report –

Rule 9.25 read together with Item 29 of Appendix

9C

Khazanah Nasional Berhad – GLCs:

Silver Book: Achieving Value through

Corporate Responsibility

Directors’ Report

will cover additional

matters including policies

on internal control and CR

CURRENT FUTURE

FUTURE REPORTING ON CORPORATE RESPONSIBILITY

Business Review

(Director’s Report)

Environmental matter, including the impact

of the company’s business on the

environment

Relates to: environment content

Company’s Employees

Relates to: workplace content

Social and community issues

Relates to: marketplace and

community content

Information on any policies in relation to

above matters and effectiveness of those

policies

Document Information

ref: page 10 of BBPC 5/2013

INFORMATION ON CORPORATE RESPONSIBILITY REPORTING

ENVIRONMENT

CONTENT

WORKPLACE

CONTENT

MARKETPLACE

CONTENT

COMMUNITY

CONTENT

Relates to

company’s efforts

to protect and

preserve natural

resources and

environment.

Examples: -

initiatives to use

renewable energy;

reduce air and

water pollution;

and

reduce use of

hazardous

chemicals.

Relates to

company’s efforts

on improvements

towards working

benefits and

support.

Examples: -

improve wages,

pensions and other

employees

benefits;

improve health

and safety at the

workplace; and

establish nursing

mother’s facility.

Relates to

company’s efforts

to integrate

responsible

business conduct

into practice and

operation.

Examples: -

improve product

safety;

establish

customer

education; and

fair pricing.

Relates to

company’s efforts

to promote

economic

development.

Examples: -

community

engagement and

development;

improve local

infrastructure; and

community

healthcare or

education.

IMPLEMENTATION BENEFITS

ref: page 20-21 of BBPC 5/2013

» Demonstrate better

governance and

transparency

» Create financial value

» Increase competitive

advantage

» Encourage innovation

» Motivate and align existing

staff and attract new talent

» Enhance reputation

» Reduce corporate risk

» Attract favourable financing

conditions

UNITED NATIONS AWARD 2013

On 24 October 2013, SSM was awarded the United Nations

Award 2013 for the “Millennium Development Goal (MDG) Eight” in conjunction with the celebration

of the 68th Anniversary of the United Nations. The primary objective of the Award is to

recognise the contribution of individuals or entities towards the achievement of a particular MDG.

MDG 8: Develop A Global Partnership For Development

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THANK YOUnorhaslinda@ssm.com.my