1. CORPORATE REGISTERS FORUM 2011, SINGAPORE
SSM’S CORPORATE
RESPONSIBILITY AGENDA:
CROSSING BOUNDARIES
TOWARDS DRIVING BUSINESSES
BEYOND PROFITABILITY
MADAM HAJAH ROKIAH MHD NOOR
DEPUTY CHIEF EXECUTIVE OFFICER (OPERATIONS)
11 MAY 2011
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2. MAIN AGENDA
Why Corporate Responsibility (CR)?
Why the Companies Commission of Malaysia (SSM)?
The SSM CR Agenda
Driving Businesses Beyond Profitability
The Way Forward : Initiatives in 2011
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3. WHY CORPORATE RESPONSIBILTY?
WHY? Because it is very relevant in today’s
corporate and business environment:
Domestic
(Malaysian) Benefits
Context
Nexus with
International
Business
Context
Sustainability
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4. THE RELEVANCY OF CR: DOMESTIC CONTEXT
The concept and implementation of CR practices have been cited and highlighted
in many of Malaysia’s national agendas:
Budget 2010 Speech by the the Honourable Prime Minister : “I often remind the
private sector and Government-linked companies (GLCs) not to neglect their
social responsibilities in their quest for profits.”
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5. THE RELEVANCY OF CR : THE GLOBAL CONTEXT
Public Sector Roles in Strengthening Corporate Social Responsibility:
A Baseline Study:
A World Bank related publication that outlines four roles of the public
sector in strengthening CSR, namely the mandating role, facilitating
role, endorsing role and partnering role.
The Role of Government in Promoting Corporate Responsibility and
Private Sector Engagement in Development
A publication of the United Nations Global Compact and Bertelsmann
Stiftung which highlights the main public policy options for
governments in promoting CR and business engagement in
development, namely awareness raising, mandating, partnering and
soft law.
IMD’s 2010 World Competitiveness Yearbook:
The ‘Infrastructure’ Input Factor includes CR related themes such as:
(i) Health problems (sickness, AIDS, alcohol, drug abuse etc); and
(ii) Sustainable development .
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6. BENEFITS OF THE PRACTICE OF CR
The following benefits have been cited in many business articles
and reports:
Retain loyalty among customers and
employees
Attract better
Reduce regulatory oversight
employees
Increase Increase Enhance
productivity profit reputation
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7. CR’S NEXUS WITH BUSINESS SUSTAINABILITY
Address important issues, such as:
1. economic efficiency (innovation, prosperity, productivity);
2. social equity (poverty, community, health and wellness, human
rights);
3. environmental accountability (climate change, land use, biodiversity).
BUSINESS SUSTAINABILITY
Business sustainability requires companies/firms to adhere to the
principles of sustainable development.
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Source: Financial Times Lexicon
8. WHY THE COMPANIES COMMISSION OF MALAYSIA?
The Companies Commission of Malaysia (SSM) believes that it is in the
best position to drive the CR culture among the corporate and business
community in Malaysia.
WHY?
SSM is the SSM serves as Existence of Availability of
Registrar of all the starting SSM’s a ready pool of
companies and point to do organizational auxiliary
businesses in business in linkage and supportive
Malaysia. Malaysia. networking. elements.
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9. THE SSM CR AGENDA
Developed pursuant to SSM’s
Second Direction Plan (2010-
2014) which envisages SSM as
the driver of CR by end of
2014.
Launched on 30 June 2009.
Sets out SSM’s strategic
framework which outlines
SSM’s approach in inculcating
the culture of CR amongst
companies & businesses in
Malaysia, focusing on Small
Medium Enterprises (SMEs).
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10. CONTENTS OF THE SSM CR AGENDA
Chapter II: The SSM
Chapter I: A Snapshot
CR Agenda Parameter
on CR
Explains SSM’s
Touches on the origin
organizational
and evolution of the
parameter in relation
concept of CR &
to CR which includes
explains the role
the definition,
played by the public
organizational
sector in relation to
statement, objectives
CR.
& classification.
Chapter IV: SSM’s
Chapter III: Executing Embrace of the
the Public Sector’s Notion of CR
Various Roles in CR Explains the initiatives
Explains the initiatives that will be taken by
that will be taken by SSM in applying the
SSM in carrying out its concept of CR within
role as one of the SSM itself & also
public bodies in forming relationships
Malaysia. with international
bodies promoting CR.
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11. THE SSM CR AGENDA PARAMETER
ORGANIZATIONAL CLASSIFICATION OF CR INITIATIVES:
1.Extrinsic: Programs, activities and initiatives carried out by
DEFINITION:
companies and businesses which carry a positive
Commitment by corporations and
impact externally within the parameter of the
businesses towards achieving
social, economic, and environmental well-being of
sustainability in the social,
the country; and
economic and environmental
2. Intrinsic: Programs, activities and initiatives carried out by
conditions in furtherance to
companies and businesses which carry a positive
the pursuit of profitability
impact to the internal institutional environment
within the parameter of the social, economic,
and environmental well-being.
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. 11
12. THE SSM CR AGENDA LOGO & TAG LINE
The building of the Petronas Twin Towers icon represents
the economy element.
The human icon The avian icon
represents the represents the
social element. environment
element.
SSM’s
organizational
logo. Tag Line:
“Driving
Business
Beyond
Profitability”
The circular shape of the icons connotes
sustainability & universal outlook
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13. DRIVING BUSINESSES BEYOND PROFITABILITY
Towards driving businesses to operate beyond profitability, SSM has carried out several
CR-related initiatives since the launch of the SSM CR Agenda in 2009:
Establishment of the CR
Creation of an Internal Dedicated Driver
Unit
UKM
I
Formation of Strategic Alliances IIM
N
I UNICEF
T
Advocacy by SSM’s staff
I
A Training for staff &
T Advocacy: Sharing of Knowledge stakeholders
I Provision of platform to
V strategic partners
E
S Engagement with the
Promotional Drive
media
CSR Asia
Global Presence
CSE 13
14. CREATION OF AN INTERNAL DEDICATED DRIVER
The CR Unit has been established and
placed under the Corporate Development
and Policy Division, consisting of two
officers. The CR Unit is generally tasked to
strategize and implement CR-related
initiatives in furtherance to the SSM CR
Agenda.
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15. FORMATION OF STRATEGIC ALLIANCES
Since the launch of the SSM CR Agenda, SSM has formed strategic
alliances with three dynamic partners:
UKM: IIM: UNICEF:
• Signed an MoU • Leveraged on • Signed an MoU
(specifically on the general MoU (specifically on
CR) on 30 June signed between CR) on 28 Jan
2009. IIM & SSM on 7 2010.
• To collaborate in Aug 2009. • To collaborate
the area of CR, • To collaborate in towards
mainly focusing the area of CR enhancing the
on research and and corporate well-being of
advocacy. integrity. children through
the practice of
CR.
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16. FORMATION OF STRATEGIC ALLIANCES
Following the formation of these strategic alliances, SSM has carried out
several CR-related initiatives with its dynamic partners, including advocacy
based initiatives:
CR-related Initiatives Partner Triple Bottom Line
Development of Best Business Practice UNICEF Social element
Circular 1/2010 titled Establishment of a
Child Care Centre at the Work Place by
Corporate & Business Employers
Development of Tool Kit on How to UNICEF Social element
Establish Child Care Centres at the Work
Place
Organization of the IIM-SSM CR & IIM Economy element
Corporate Integrity Forum Series
Organization of the Tuanku Ja’afar Law UKM Economy element
Conference on CR & CG
Many more initiatives are in the pipe line. 16
17. BEST BUSINESS PRACTICE CIRCULAR 1/2010
Launched by YB Dato’ Sri Ismail Sabri
Yaakob, Minister of Domestic Trade, Co-
operatives & Consumerism, on 28
January 2010
Serves as a general guideline to
facilitate employers in setting up child
care centres at the work place for their
employees.
Touches on:
I. The general legal and regulatory
framework;
II. The general procedures for the
registration of child care centres;
and
III. The main principles of care.
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18. TOOL KIT ON HOW TO SET UP A CHILD CARE CENTRE
AT THE WORK PLACE
Launched by YABhg. Datin Paduka Seri
Rosmah Mansor on 9 November 2010
Complements the Best Business Practice
Circular 1/2010 on the Establishment of Child
Care Centres at the Work Place by Corporate
and Business Employers
Touches among others, on the following:
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; and
VII. Registration procedures.
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19. INVOLVEMENT IN THE NATION’S PROMOTION
& DEVELOPMENT OF EARLY CHILD CARE & EDUCATION
SSM & UNICEF decided to focus on the establishment of child care centres at the
work place, in light of the following:
The 10th Malaysia Plan - which calls for the setting up of child care centres
to enable better participation by the women workforce in the job market;
Towards creating a sustainable corporate and social environment as well as
striking a balance between economic development and social well being;
To facilitate working parents in balancing their work commitment and the
nurturing of their young children;
To ensure the safety of young children of working parents in the corporate &
business working environment; and
The need for a high quality early child care & education in the nation’s social
system.
Following SSM’s initiative to promote & encourage the establishment of child
care centres at the work place, SSM was invited to be a member of a committee
on Early Child Care & Education (ECCE), placed under Malaysia’s National Key
Result Area (NKRA) on Education.
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20. TUANKU JA’AFAR LAW CONFERENCE
The Tuanku Ja’afar Law Conference was jointly organized by
SSM and UKM on 19 & 20 Oct 2010 at Menara SSM@Sentral,
Kuala Lumpur.
The theme of this conference was CR & CG, where more
than 30 papers were presented by presenters from inside
and outside of Malaysia on these two subject matters.
The conference was a very beneficial platform as it allowed
people from different backgrounds i.e from the industry, the
regulator and the hall of academia, to discuss, exchange
views and share knowledge & experiences pertaining to CR
& CG.
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21. IIM-SSM CR & CORPORATE INTEGRITY FORUM SERIES
The IIM-SSM CR & Corporate Integrity
Forum Series was a jointly organized by
SSM and IIM.
The main objective was to create
awareness and enhance the understanding
of the concept of CR and corporate
integrity among the corporate and business
community, especially the SMEs, noting
that the SMEs in Malaysia form 99.2% from
the total number of business
establishments.
Thus far, two series have been conducted,
one in Kuala Lumpur on 18 March 2010 and
one in Penang on 16 July 2010.
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22. ADVOCACY – SHARING OF KNOWLEDGE ON CR
SSM advocates CR through the sharing of knowledge via three identified channels:
Advocacy by SSM staff: SSM staff gives lectures & talks during events & conferences
to the members of the corporate and business community, students & academicians:
Advocacy related Activities Date
Public lecture titled “The 21st Century Business Environment: 20 Aug 2009
Integrating CG & CR into SMEs”
Lecture on CG & CR at Curtin University‘s Evening Lecture Series 2 Nov 2009
Talk titled “The 21st Century Business Environment: Integrating CG & 18 Nov 2009
CR into SMEs”
Talk titled “CG & CR: Reiterating the Basics for Future Sustainability” 13 Jan 2010
(at the MICG Director Duties & Governance Conference)
First series of the IIM-SSM Corporate Responsibility & Corporate 18 Mar 2010
Integrity Forum (co-organized with IIM)
Second series of the IIM-SSM Corporate Responsibility & Corporate 16 Jul 2010
Integrity Forum (co-organized with IIM)
Tuanku Ja’afar Law Conference on CG & CR (co-organized with UKM) 19 & 20 Oct 2010
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23. ADVOCACY – SHARING OF KNOWLEDGE ON CR
(Cont.)
Training for stakeholders: CR is inserted in the training modules for directors
(Corporate Directors Training Program), licensed secretaries (Licensed Secretaries
Training Program) and staff of SSM (Knowledge Enhancement Employee Program).
These training programs are conducted by SSM’s training arm; COMTRAC.
Provision of platform to strategic partners: SSM provides platforms to its strategic
partners at its engagement sessions that are held every year, to talk on CR-related
issues. At present, SSM has three engagement sessions i.e the Corporate Practice
Consultative Forum (that is attended by professional bodies), the Annual Dialogue
(that is attended by the business & corporate community) and the Business
Engagement Chapters (that is attended by trade associations):
Advocacy Related Activities Date
IIM delivered a talk at SSM’s Corporate Practice Consultative 14 Jan 2010
Forum on Corporate Ethics
UNICEF delivered a talk at SSM’s Annual Dialogue titled “The 14 & 15 Dec 2009
Role of the Private Sector in Enhancing the Welfare of Children
in Malaysia
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24. PROMOTIONAL DRIVE
SSM has engaged the media to promote its CR-related
initiatives, as part of its effort to create awareness
among the public generally, and the business and
corporate community specifically.
SSM has featured articles on its initiatives in the media
and has also invited the media to cover the events
relating to the CR-related initiatives.
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25. GLOBAL PRESENCE
To be acknowledged as the driver of CR, SSM aspires to
contribute and make a positive impact not only
domestically, but also at the international level.
Towards realizing this aspiration, SSM has become a
member of CSR Asia since 1 November 2010 with the
view to share knowledge, learn from the experiences
and enhance SSM’s expertise.
Apart from CSR Asia, SSM is also planning to be a
member of the Centre for Sustainability & Excellence
(CSE).
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26. SSM’S CR INITIATIVES FOR 2011
National Survey on CR (with UKM)
SME Manual on CR
Best Business Practice Circular – Chief Integrity
Officer (with IIM)
Best Business Practice Circular - Creating a
Child Friendly Environment within the Corporate
Sector (with UNICEF)
CR & Sustainability Workshop
Business Case Studies on Child Care Centres
CR @ Work (CR for SSM’s employees)
Continuous advocacy events
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27. ENHANCING THE DOMESTIC LEGAL & POLICY
FRAMEWORK ON CORPORATE RESPONSIBILITY
CURRENT FUTURE
Ratified UN Conventions
relating to CR:
Various laws relating to CR: UN Convention No. 8 (Elimination
Environmental Law of Discrimination against Women) All
Employment Relations Law UN Convention No. 11 (Children’s companies
Consumer Protection Rights) that are
Labour Laws ILO Convention no. 138 (Minimum required to
Age)
submit
annual
returns:
Bursa Malaysia Listing Khazanah Nasional Berhad To report
Requirements – PLCs: – GLCs:
voluntarily
Provide statement on CR Silver Book: Achieving Value
activities in Annual Report – through Corporate
on CR
Rule 9.25 read together with Responsibility activities
Item 29 of Appendix 9C
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