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Group Corporate CommunicationsTELEKOM MALAYSIA BERHAD (128740-P)Level 8 (South Wing), Menara TMJalan Pantai Baharu, 50672 Kuala Lumpur, Malaysia
Printed on recycled paper
Sustainability Report 2009
tM sustainabilitY report 2009This report is one of TMs approaches to communicat ing our corporate information proactively to the public at large. It focuses on the delivery of social and environmental value, whereas our Annual Report deals with the delivery of economic value. Taken together, the two Reports will give shareholders and all stakeholders a clear, comprehensive and honest view of our performance in managing the economic, social and environmental dimensions of our activities
To produce this report, we have collated information and used quantitative indicators where relevant for better accuracy. We also highlight our achievements in 2009 in comparison to last years performance and use this as a benchmark to set targets for 2010.
scope of reportReporting period: January to December 2009
Coverage : TM and its subsidiaries as included in the companys consolidated financial statements. Subsidiaries refers to all companies in which TM holds a majority stake or has direct managerial control.
2-3 MESSAGE FROM GROUP CHIEF EXECUTIVE OFFICER
4-7 CORPORATE PROFILE
8 GROUP CORPORATE STRUCTURE
9 AWARDS AND RECOGNITION
10-11 TM WORLDWIDE COVERAGE
12-15 STRATEGY AND ANALYSIS
16-18 CORPORATE GOVERNANCE
52-53 GRI CONTEXT INDEX
54-55 PROFILE DISCLOSURES
56-58 DMA AND PERFORMANCE DATA
59 TELECOMMUNICATIONS SECTOR SUPPLEMENT
60-62 ASSURANCE STATEMENT
reference anD GuiDelinesPrinciple Guidelines: Global Reporting Initiative (GRI-G3) framework
BursaMalaysias CSR Framework
Silver Book by the Putrajaya Committee onGLC Transformation
reliabilitY of inforMation DiscloseDThe reliability of information in the Report has been examined by OWWConsulting Sdn Bhd. Theirconclusions are presented in their Assurance Statement which can be found at the end of this Report.
feeDbackThis report is available to all stakeholders in hard copy on request and can be downloaded from our website. For further information and commentsplease contact:
Group Corporate CommunicationsTelekomMalaysia BerhadLevel 8, South WingMenara TM, Jalan Pantai Baharu50672 Kuala LumpurMalaysiaTelephone : +603 2240 9494Facsimile : +603 7955 3620Email : firstname.lastname@example.org
sustainability report > telekoM MalaYsia berhaD2009
Corporate Responsibility (CR) is an important agenda for TM as CR is about doing business responsibly and ethically, with integrity and strong governance.Forus,thisextendsbeyondjustphilosophicalcommitment; itis embedded into how we run our business. Given its strategic importance, it has been taken up at the Board of Directors level to ensure theimplementation of the best practices that would produce profit and efficiency, whilst being responsible towards the employees and all other stakeholders. Ensuring responsible operations can help to sustain long term business growth.
Last year, we took a step further in communicating our commitment to transparency and accountability by producing our inaugural Sustainability Report. The Report gave additional perspectives on TMs performance in the marketplace, workplace, community and environment, showcasing our sustainable business practices in these areas. Consistent with the need for Triple Bottom Line reporting, TMs Sustainability Report has beenwritten in a format which complies with the Global Reporting Initiative (GRI) framework to provide our stakeholders both with financial and non-financial information against which to compare our current and future performance.
Basedonthegapsidentifiedinlastyearsreporting,wehaveextendedourefforts in formulating the necessary strategies and initiatives to fill these. In this report, we have included a materiality analysis, which outlines our performance in relation to the gaps from previous years and sets future targets. The improvement initiatives undertaken include strengthening Corporate Governance, ethics and compliance as set forth in the TM Group Code of Business Ethics. We are also working cooperatively withour suppliers to ensure the adoption of social responsibility in the supply chain.
We are pleased that our efforts and commitment continues to be recognised externally. In 2009, TM won the Prime Ministers CSR Awards in the Workplace Category and the Starbiz Malaysia Corporate Responsibility Awards in the Community Category for companies with market capitalisation above RM1 billion. While I am proud of the recognition that we have received, we continue to push ourselves to do more. We have set formal goals in our primary corporate responsibility focus areas, helping to drive accountability and continuous improvement. In 2009, we set new environmental goals in key areas such as emissions reduction and biodiversity. We also launched an internal green campaign to help focus all of our employees on environmental sustainability.
coMMunitYWe are committed to serving the community in which we operate. We do this by contributing towards the communitys capacity building. TMs goal is to assist in building Malaysias human capital, in support of the Governments vision of nurturing a knowledge-rich and skilled nation. Through our foundation, we provide scholarships to outstanding and deserving students to pursuetheirstudieslocallyandoverseas.Donationsare also given on a one-time basis to needy institutions and individuals such as Welfare Organisations, poor families, as well as students from primary, secondary and university in support of their educational and co- curriculum activities.
As a telco, our nation-building initiatives also focus on bridging the digital dividebetweenurbanandruralcommunities.Between2007and2010,wehave adopted a total of 5 schools into the PINTAR programme, which aims to create awareness of the importance of good academic achievement
sustainability report > telekoM MalaYsia berhaD2009
among students from low household income groups, and involves the community in IT. I am pleased to see the improved performance of the students in these schools in both in their academic and non-academic achievements. We have also extended our support to single parents to improve their lives and afford them a sustainable living through our Sejahtera programme.
These are just a few examples of what we are doing. At TM we are utilising our businesses, our technologies and the talents of our employees throughout the company in a coordinated manner. We aim to contribute to cultural and social progress and to support local communities. I sincerely hope that this report will provide you with a greater understanding of our efforts and our commitment to the community.
environMentWe have also further emphasised our role in nurturing the environment. In 2009, we have successfully launched our teleworking initiative and internal environmental awareness campaign, BumiKu. Across ouroperations, TM is implementing initiatives to reduce our water and energy use and also reduce the amount ofwastewe produce.Duringthe year, we are committed to monitor closely and disclose our environmental performance. This report includes our performance data in relation to TMs commitment to reducing all environmental components.
Climate change has been the defining social issue in recent years. In response to this issue, our Research and Development teamcontinues to innovate new developments such as alternative energy, renewable energy and carbon offset. We have set a target to improve energy efficiency and conservation by 3% at our headquarters, Menara TM during 2010.
MarketplaceWe recognise that our success in the marketplace depends on our ability to continually earn our stakeholders trust and meet their expectations. This simply means Doing Business Right, and it iscentral to our vision. Guiding our behaviour in the marketplace, TMs Code of Business Ethics applies to our Board, members of themanagement team, all employees and stakeholders of TM. It supports our core values by instilling and helping us to internalise the value of uncompromising integrity.
To ensure that TM delivers on its commitment and meets stakeholders expectations, we embarked on our Performance Improvement Programme (PIP) 1.0 in 2006 and continued with PIP 2.0 in 2008 This programme is anchored by four strategic thrusts Customer Centricity and Quality Improvements, Operational Excellence and Capital Productivity, One Company Mindset with execution orientation and Leadership through Commercial Excellence COOL.
WorkplaceInvesting in our employees is crucial to the sustainability of our business. They are the talent behind our success who translate complex technology into simple, effective services. To ensure their skills keep pace with emerging technologies, we constantly train and retrain our technical staff. With the deployment of Unifi, our high
speed broadband service, we have embarked on particularly intensive training on fibre technology. Last year alone, 7,000 employees underwent targeted IP-based training.
We are constantly improving the way we develop our people and how we communicate and engage with them so that we can continue to attract and retain the best talent. We have also taken further steps in promoting a better work-life balance with teleworking, flexible working hours and providing them the opportunity to volunteer in TMs c