26 / 80
Our Approach
S
takeholders are putting
increased emphasis on
businesses to meet corporate
responsibility and sustainability
standards, which is also reflected in
consumer behaviour and legislative
requirements. In order to meet
these expectations and achieve
long-term success and sustainable
growth, we are committed to
undertake responsible business
practices through good governance
which are supported by dedicated
policies, resource and operational
efficiency and being accountable
for our actions.
Responsible Business Practices
T
he economic returns
created by responsible
and sustainable business
practices benefit a broad range
of stakeholders. This includes the
provision of employment to more
than 3,000 people in 3 countries. In
addition to corporate income taxes,
the companies within the Group
pay many other taxes, including
social security contributions
on the wages of its employees,
SST, customs duties, property
taxes, etc. All these taxes are a
significant source of funding for
public services by governmental
institutions. We view the fulfilment
of our tax obligations as part of
the process of creating sustainable
value for all our stakeholders.
During the reporting year, our
Indonesian subsidiary PTNJL had
been awarded “50 Pembayar Pajak
Terbesar Tahun 2018” under the
“Wajib Pajak Badan” category in
Kalimantan Utara. This is the third
time that PTNJL has been awarded
this recognition.
Ethical Conduct
T
he Group has a zero-tolerance
approach to unethical
practices. The Group is
committed to complying with
the laws and regulations of the
countries in which we operate and
act in an ethical manner, consistent
with the principles of honesty,
integrity, fairness and respect and
every employee is accountable
for ensuring that these principles
are always upheld in all we do. We
expect the same standards from
all third parties who provide goods
and services to our companies.
We have policies in place that set
out standards for ethical behaviour
including the acceptance or
offering of corporate hospitality
and gifts. Corporate hospitality
must be reasonable and
proportionate and any gifts given
or received must not conflict
with our obligations to that party.
Furthermore, our procurement
and authorisation procedures are
consistent and transparent so that
all payments are documented
and understood. These internal
control procedures are also subject
to regular review to provide
assurance that they are effective in
countering any risks of bribery and
corruption. A significant number of
written agreements entered into by
our businesses with their respective
vendors and customers include
specific anti-bribery and corruption
clauses.
In addition, the Board, through
the Audit and Risk Committee,
reviews and monitors all related
party transactions and conflicts
of interest situation, if any, on
a quarterly basis. A Director or
member of senior management
who has an interest in a transaction
must abstain from deliberating and
voting on the relevant resolutions,
in respect of such transaction.
Cybersecurity
T
he Group acknowledges the
importance of cybersecurity
as a critical feature in
preserving our data integrity
and maintaining trust amongst
59.5 Employees (salaries,
wages, and other
benefits)
25.3 Shareholders
(dividends)
26.5 Government
(Tax and duties)
40.5 Reinvestment in
the business
Value
Distribution To
Stakeholder
(RM’Million)
24
Kumpulan Fima Berhad
(11817-V)
SUSTAINABILITY Report 2019