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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 best
position to drive the CR culture among the corporate and business
communities in Malaysia.
WHY?
SSM is the
Registrar of
companies,
businesses and
limited liability
partnerships in
in Malaysia.
SSM serves as
the starting
point to do
business in
Malaysia.
Existence of
SSM’s
organizational
linkage and
networking.
Availability of
a ready pool of
auxiliary
supportive
elements.
SSM’S STATUTORY FUNCTIONS
3
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
Foreign
4,569
*As at 28 February 2014
NUMBER OF COMPANIES INCORPORATED
4
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
5
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 2014 6
THE SSM CR AGENDA
Developed pursuant to SSM’s
Strategic Direction Plan II (2010-
2014) which envisages SSM as the
driver of CR by the end of 2014.
Agenda was launched on 30 June
2009.
This Agenda with a tagline
“Driving Business Beyond
Profitability”, 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).
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 of
Integrity (IIM), National Key Result Areas (NKRA) Anti-Corruption,
Performance Management & Delivery Unit (PEMANDU), Bursa
Malaysia Berhad, Securities Commission & Transparency
International Malaysia
• To implement the Corporate Integrity System Malaysia
a
CORPORATE
INTEGRITY
SYSTEM
MALAYSIA
ROUNDTABLE
MEMBERS
FORMATION OF STRATEGIC ALLIANCES
To collaborate in the area of CR, mainly focusing on research and
advocacy
To collaborate in the area of CR and corporate integrity
To collaborate towards enhancing the well-being of children through
the 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
11
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 child
care.
TOOL KIT ON HOW TO SET UP A CHILD CARE CENTRE AT THE
WORK PLACE
12
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 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; and
VII. Registration procedures.
13
BBPC 2/2011 ENTITLED “ESTABLISHING A CONDUCIVE WORKING
ENVIRONMENT FOR WOMEN: NURSING MOTHERS PROGRAMME AT THE
WORKPLACE”
• Highlights the role that companies and
businesses can play in supporting family
and child-friendly environment at the
workplace by endorsing a nursing mother’s
programme.
• Lists the basic components for a nursing
mother’s programme and guides on
establishing a nursing room.
• Lists the tremendous implementation
benefits that employers will gain from
contributing to a nursing mother’s
programme at the workplace.
14
The objectives of this BBPC are :
 To promote and support public-private
partnership (PPP) in providing technical
education and vocational training (TEVT), as
an alternative to mainstream education
especially for school dropouts; and
 To provide the corporate sector with
guidance on responsible employment of
young workers who come from TEVT
programmes, and respecting and supporting
children’s rights based on the Children’s
Rights and Business Principles that was
launched in Malaysia on 11th September
2012.
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 will
encourage non-financial reporting - includes
voluntary reporting on CSR initiatives in the new
Companies Act in 2014.
• This would indirectly place companies in a
position to re-strategize their business operations
internally and externally and in many cases will
impact consumers, employees, suppliers and
community stakeholders, including children.
The framework of the CRBP could provide guidance to many companies on how
best to formulate their CSR work and strategic engagement whether they are
an SME part of a global supply chain or whether they are a public listed
company committed to producing annual company sustainability reports and
generally all companies as a whole.
BBPC 5/2013 ENTITLED “CORPORATE RESPONSIBILITY :
GUIDANCE TO DISCLOSURE AND REPORTING
• Promote the importance and relevance of
corporate responsibility (CR) disclosure
among companies and businesses in
Malaysia.
• Raise awareness on disclosure in line with
societal need and to provide
understanding on the new non-financial
reporting under the new Companies Act.
• Provide an overview of available
approaches, tools and resources and
standards to facilitate an accurate and
reliable disclosure.
The objectives of this BBPC are:
ENHANCING THE DOMESTIC LEGAL & POLICY
FRAMEWORK ON CORPORATE RESPONSIBILITY
Various laws relating to CR:
Environmental Law
Employment Relations Law
Consumer 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
21
THANK YOU
norhaslinda@ssm.com.my

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Session on corporate social responsibility norhaslinda salleh

  • 1. 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
  • 2. WHY THE COMPANIES COMMISSION OF MALAYSIA DRIVES CR? The Companies Commission of Malaysia (SSM) is placed in the best position to drive the CR culture among the corporate and business communities in Malaysia. WHY? SSM is the Registrar of companies, businesses and limited liability partnerships in in Malaysia. SSM serves as the starting point to do business in Malaysia. Existence of SSM’s organizational linkage and networking. Availability of a ready pool of auxiliary supportive elements.
  • 3. SSM’S STATUTORY FUNCTIONS 3 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
  • 4. Foreign 4,569 *As at 28 February 2014 NUMBER OF COMPANIES INCORPORATED 4 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
  • 5. * As at 28 February 2014 TOTAL BUSINESSES REGISTERED 5 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
  • 6. Launched: 5 February 2013 *Total LLPs: 1,810 LIMITED LIABILITY PARTNERSHIP ACT 2012 *As at 28 February 2014 6
  • 7. THE SSM CR AGENDA Developed pursuant to SSM’s Strategic Direction Plan II (2010- 2014) which envisages SSM as the driver of CR by the end of 2014. Agenda was launched on 30 June 2009. This Agenda with a tagline “Driving Business Beyond Profitability”, 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).
  • 8. 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
  • 9. • Comprise of Malaysia Anti-Corruption Commission (MACC), Companies Commission of Malaysia (SSM), Malaysia Institute of Integrity (IIM), National Key Result Areas (NKRA) Anti-Corruption, Performance Management & Delivery Unit (PEMANDU), Bursa Malaysia Berhad, Securities Commission & Transparency International Malaysia • To implement the Corporate Integrity System Malaysia a CORPORATE INTEGRITY SYSTEM MALAYSIA ROUNDTABLE MEMBERS FORMATION OF STRATEGIC ALLIANCES To collaborate in the area of CR, mainly focusing on research and advocacy To collaborate in the area of CR and corporate integrity To collaborate towards enhancing the well-being of children through the practice of CR NATIONAL UNIVERSITY MALAYSIA INSTITUTE OF INTEGRITY UNICEF
  • 10. 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.
  • 11. BEST BUSINESS PRACTICE CIRCULAR (BBPC) 1/2010 11 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 child care.
  • 12. TOOL KIT ON HOW TO SET UP A CHILD CARE CENTRE AT THE WORK PLACE 12 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 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; and VII. Registration procedures.
  • 13. 13 BBPC 2/2011 ENTITLED “ESTABLISHING A CONDUCIVE WORKING ENVIRONMENT FOR WOMEN: NURSING MOTHERS PROGRAMME AT THE WORKPLACE” • Highlights the role that companies and businesses can play in supporting family and child-friendly environment at the workplace by endorsing a nursing mother’s programme. • Lists the basic components for a nursing mother’s programme and guides on establishing a nursing room. • Lists the tremendous implementation benefits that employers will gain from contributing to a nursing mother’s programme at the workplace.
  • 14. 14 The objectives of this BBPC are :  To promote and support public-private partnership (PPP) in providing technical education and vocational training (TEVT), as an alternative to mainstream education especially for school dropouts; and  To provide the corporate sector with guidance on responsible employment of young workers who come from TEVT programmes, and respecting and supporting children’s rights based on the Children’s Rights and Business Principles that was launched in Malaysia on 11th September 2012. BBPC 4/2013 ENTITLED “EDUCATION FOR SUSTAINABLE DEVELOPMENT: PROMOTING TECHNICAL AND VOCATIONAL TRAINING (TEVT)”
  • 15. VOLUNTARY DISCLOSURE OF CSR INITIATIVES • SSM plans to introduce a provision that will encourage non-financial reporting - includes voluntary reporting on CSR initiatives in the new Companies Act in 2014. • This would indirectly place companies in a position to re-strategize their business operations internally and externally and in many cases will impact consumers, employees, suppliers and community stakeholders, including children. The framework of the CRBP could provide guidance to many companies on how best to formulate their CSR work and strategic engagement whether they are an SME part of a global supply chain or whether they are a public listed company committed to producing annual company sustainability reports and generally all companies as a whole.
  • 16. BBPC 5/2013 ENTITLED “CORPORATE RESPONSIBILITY : GUIDANCE TO DISCLOSURE AND REPORTING • Promote the importance and relevance of corporate responsibility (CR) disclosure among companies and businesses in Malaysia. • Raise awareness on disclosure in line with societal need and to provide understanding on the new non-financial reporting under the new Companies Act. • Provide an overview of available approaches, tools and resources and standards to facilitate an accurate and reliable disclosure. The objectives of this BBPC are:
  • 17. ENHANCING THE DOMESTIC LEGAL & POLICY FRAMEWORK ON CORPORATE RESPONSIBILITY Various laws relating to CR: Environmental Law Employment Relations Law Consumer 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
  • 18. 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
  • 19. 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.
  • 20. 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
  • 21. 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 21