KEENWAY INDUSTRIES SDN BHD - About PUMA

SUSTAINABILITY REPORT 

Year 2011 

KEENWAY INDUSTRIES SDN BHD 

KEENWAY INDUSTRIES 

SDN BHD

SUSTAINABILITY REPORT 2011 


CONTENTS 

ABOUT US 

Preface 2-4 

Statement from the Director 5-8 

Organizational Profile 9-18 

Corporate Governance 19-21 

Stakeholder Engagement 22-24 

ECONOMIC RESPONSIBILITY 

Our Economic Approach 26-28 

ENVIRONMENTAL RESPONSIBILITY 

Environmental Policy 29-31 

Energy Consumption 32-33 

Indirect Energy Consumption 34-35 

Energy Saving 35 

Water Withdraw By Source 35-36 

Greenhouse Gas Emissions 36-37 

Waste By Type and Disposal Method 37-39 

SOCIAL RESPONSIBILITY 

Employment 41-42 

Employment Diversity 43-46 

Collective Bargaining 47 

Occupational Health and Safety 47-48 

Employability 49 

Human Rights 50-51 

Child Labour 52 

Forced or Compulsory Labour 53 

SOCIETY 54-55 

PRODUCT RESPONSIBILITY 56 

Customer Health and Safety 57-58 

Customer Satisfaction 59-62 

GRI INDEX 63-71 

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Preface 

O 

ur first annual report was published in 2011. Using data from 1 January 2011 to 31 

December 2011, this second report was generated. At Keenway, we firmly believe that we 

can maintain a good balance between generating economic performance and preserving the social 

and environmental landscape of the communities in which we operate. 

This report focuses on the activities in both our Malaysia and Cambodian factories with more 

emphasis on data from the operations in the Malaysia factory. The calculation of indicators such as 

material flows and related responsibilities are derived based on the Malaysia units. Foreign 

subsidiaries are not included in the economic, environmental, and social performance indicators. 

There are instances where financial and non-financial data are considered proprietary and 

confidential, Keenway does not collect such data. Where data is not available for reporting, it will 

be stated. 

The organization’s sustainability practices and results detailed in this report are based on the Global 

Reporting Initiative (GRI) version G3.1 guidelines. This report is largely focused on three core 

indicators - Economic, Environment and Society. The data that are included in this report are based 

on our performance records throughout the year. Keenway uses numerous data measurement 

techniques in response to the GRI Indicator Protocols. Our environmental data was collected by the 

e-KPI Monitoring spreadsheet and the data of CO2 emission was collected from the Enablon 

System. Certain indicators have been reported with more accurate figures than the previous year. 

However, the current report does not include data for the new indicators as this would affect the 

basis for comparison of the relevant indicators with the previous years. A cautionary note is 

provided wherever applicable. 

To determine our report content, we had the internal meeting 

to identify the topics that were significant to us. Our 

company’s plans and policies served as a guideline in the 

selection. Topics identified as priorities by stakeholders were 

considered next. 

& Safety 

In this report, we discuss issues faced by the garment industry 

in general. We also reviewed regulations that may impact 

Product Safety 

Keenway while considering the research findings by industry 

experts on sustainability issues. Critical issues raised in this report are not only consistent with our 

organization’s policies and values but are also directly relevant to our stakeholders. 

 

 

 

 

Energy, Water and 

Waste 

Equal Opportunity by 

gender and region 

Human Rights 

Occupational Health 

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Thus, we hold these factors in deep consideration for their impact on our ability to compete 

successfully in the global market. 

Report Scope and Profile 

Cycle: January 2011– December 2011; Annual Report; Second Reporting 

Boundaries of the Report: 

This report focuses on the 

activities of Keenway 

Industries Sdn Bhd in the 

manufacturing of garments 

and apparels business. 

Specific aspects and 

indicators have been chosen 

from the G3.1 Guidelines, 

economic, environmental and 

social performance, and have 

been expounded and 

presented in this report that 

details the business’ overall 

sustainability performance. 

This Sustainability report is streamlined to touch on the flow of work in Keenway Industries Sdh 

Bhd and includes the very important opinions and viewpoints of our various stakeholders. The 

information presented in this report shares accurate and balanced information on our economic, 

environmental, and social sustainability performance. The report also forms a reference point from 

which we can evaluate and monitor our own internal methods, processes and sustainability 

performance as we seek to continually improve over the years to follow. 

Self-Declaration: 

Based on our year-end evaluation in 2011, we have attained a Level B for 

compliance with the GRI G3.1 reporting guidelines. This has been a 

significant change from a Level C in our previous report. Keenway does not 

currently engage an external agency to audit its GRI responses or our 

Corporate Sustainability Report. In the future, we plan to have a complete 

policy for external assurance. For easy reference, the GRI content is attached 

at the end of this report. 

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This report also forms a reference point from which we can continually evaluate and monitor our 

own internal methods, processes and sustainability performance to ensure the ongoing provision of 

optimal services. We hope this report will provide useful and pertinent information for our 

stakeholders. 

Feedback: 

Keenway Group sincerely welcomes your viewpoints and would like to hear your honest opinions. 

With your valued partnership and cooperation, we can work towards a greener, brighter, more 

sustainable future for all. 

Contact : Ken Ng 

Email : ken_ngcc@keenway.org 

Tel / Fax : 607-7724881 / 607-7724828 

Position : Chief Compliance/ Sustainability Officer 

4



Statement from the Director 

(Yesterday, Today and Tomorrow) 

Actions of yesterday will result in what happens today thus impact in what becomes of tomorrow. 

Bearing this in mind, we have been forward looking on the impacts of what our actions now would 

contribute to the world we live in future. With this belief in mind, that was how we kicked off our 

road to sustainability in 2010. 

Unlike the past where sustainability was just merely an initiative trigger as a result of demands by 

the market forces; now as a company we see sustainability as a commercial imperative. Our 

commitment to our sustainability has surpass the merely need for compliance and public image 

because now the company are seeing the economic benefits from making ourselves green. It has 

also become a critical success factor for our company to be successful. With a green-minded 

corporate culture instil, this means enthusiasm for environmentalism will only grow. 

The initial cost of sustainable implementation is high and with the global economic downturn and 

recession of our major stake holders in Europe and US, it has often prompted us to question our 

eco-agenda at times. However taking a long term approach, we believe the benefits outweigh the 

cost and besides saving costs in the long run, it also improves brand image. 

With the current economic condition where we are faced with challenges of ever increasing cost of 

production, faster lead time and a need for a more sustainable product thru out the supply chain; it 

can be observed that many other companies are also attempting to make their businesses more 

sustainable with the long term strategy of reducing cost as a result. Reduction of lead time allows 

speed to market thus enabling better sales forecast thus reducing over supply and balance stock 

.These promote sustainability by maximising the use of raw material we take from the environment 

and reducing wastage and cost in general with over supply due to variation in forecasts. 

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Recently the United Nation publish a report showing 93% of the world’s top chief executives view 

sustainability becoming a critical success factor to their company’s future success. Business to 

Government tie down is now commonly seen these days with both taking more ownership in 

environmental issues. This make many implementations more effective and successful as in the past 

infrastructure to support such initiatives are not readily present. 

As we move into another year of the Global Reporting initiative, we will review what we have 

achieves so far .In the first year of GRI, the focus on is on data collection .This allow us to establish 

the framework with key performance indicator to measure our sustainability progress .Being able to 

measure ourselves and knowing where we are now allows us to bench mark ourselves and monitor 

our progress .This sets the foundation for improvement in our sustainable journey. Now the 

challenge in 2011 is in effectively using the data we have collected to make it meaningful when 

implementation of short to midterm and long term initiatives. 

In the short term, we seek to take another year to further refine our collection of data with the GRI 

report G3.1 guidelines. As we shift from Standard Disclosure of C to B, this process is already 

underway. 

In concurrent with refining of our indicator, our mid-term strategy is to 

1. Reduce Indirect and indirect energy consumption 

2. Reduce water consumption 

3. Reduction of Carbon emission 

4. Increase the use of sustainable raw materials 

Reduce our Direct and Indirect energy consumption by 25%, water consumption by 25%, from 

where we first being in 2010. With this as a target, in the long run we should see reduction in cost 

on energy and water as an obvious benefit. 

6



Reduction of our CO2 emission by 25% by 2015 as a target. The global carbon market has grown to 

over US$170 billion now despite the economic downturn, according to a World Bank report. 

Although the Copenhagen fails to get the full commitment from countries in 2010 to succeed or 

extend the existing Kyoto Protocol, growth is still expected in the carbon markets. Hence, the 

markets for Certified Emissions Reductions (CERs) are expected to increase. Reduction in CO2 

emission would allow us in the long run to gain tax credit when more countries pass the carbon tax 

law which would be a political agenda for many governments in time to come. 

Increasing the use of sustainable raw materials. In line with the midterm strategy of our 

stakeholders, to have 40-50% of our products produce from sustainable raw materials. One of the 

greatest challenges we face as in having sustainable green product is in the higher cost of 

sustainable raw materials at the moment. Organic cotton comes at a higher cost of 20 to 30% at the 

moment. Recycled polyester also come at a much higher cost because of the high cost of collection 

and recycling plastic. At the moment, stake holders the end consumers are not able to match the 

increase in cost of sustainable products at the initial stage. Thus this puts tremendous pressure down 

the supply chain to mitigate this increase in cost. 

One of the strategies at the macro level is to steer the government involvement. Lobbying state 

governments to facilitate the collection and recycling process till it extends to each household 

would reduce the cost of recycled polyester fabric. Of course as we increase our % of recycled raw 

material used together with all the other like-minded eco warriors in the industry, this would bring 

economics to scale to cost down for suppliers hence reducing the cost of sustainable raw materials 

in the long run. 

The Malaysian Government in addition had considered playing a part by reviewing their policies on 

fiscal incentives. This includes pioneer status for corporations, investment tax allowance, and 

import duty and sales tax exemption for equipment used in energy conservation. 

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In conclusion, baby steps we once take in the sustainable journey now with the ever challenging 

environment we are to take bigger steps forward in achieving the goals we set for ourselves. The 

above mention is just the few strategy approaches we are taking as a company from the short to 

middle term. Sustainable journey is a continuous improvement process and we should be careful not 

to put boundaries to limits its potential. Most importantly we need to take a long term perspective 

when doing the cost benefit analysis. Our determination to supply sustainable product going 

forward is ever clear and this can only be made possible if the whole supply and demand chain are 

align towards the same vision. Everyone has a part to play here for “Yesterday, today and 

tomorrow.” 

Yours Sincerely 

Wilson Ng 

Managing Director of Keenway 

8



Organization Profile 

K 

eenway Industries was incorporated as a small sub-contracted company in Kluang, in the 

state of Johor, Malaysia in 1988. Since those early days, Keenway Industries, a nonresident 

control company (NRCC), has grown by leaps and bounds, growing from an 

estimated 50 workers, into 2247 employees today. 

Today, Keenway Group is a globally recognized manufacturer and exporter of casual, active and 

sporty lifestyle garments, such as men’s, ladies’, kids’ knit and woven tops, jackets and bottoms. 

Our distribution network spans the USA, Canada, Europe, Japan and Southeast-Asia, bringing 

world-renowned service and quality to the major sporting brands, our significant stakeholders. Over 

the last 23 years, we have gone through significant changes and growth in terms of recognition, 

products, workers, and profit despite the many obstacles we faced like: economic downturn, 

fluctuations in market prices, and increase in cost of raw supplies. In April 2010, Keenway 

Industries further expanded our production facilities by gaining a foothold in Cambodia (TKHKC) 

with two factories; concurrently we also further expanded our capacity and production in Malaysia 

(TMYKM), this latest expansion has made us one of the largest PUMA suppliers and raised our 

global ranking and status. 

9



We have strategically located offices and factories across South-East Asian, a sales office in 

Singapore, a sourcing office in Taiwan, two factories in Cambodia and two factories in Malaysia to 

allow us efficient monitoring and management of our operations. In September 2011, we 

centralized all production facilities in Malaysia into one location to allow better resource planning. 

This strategic move has resulted in cost savings in terms of electricity usage, production downtime, 

better line balancing and a more efficient management team. Our plan for 2012 is to centralize the 

two administrative offices in Malaysia for similar reasons. 

Keenway Group’s principle strategy that has enabled our tremendous growth and expansion 

internationally is to maintain strict standards of quality control and customer satisfaction. 

Consistency in our company’s delivery as a whole, has always been our key focus, and has proven 

time and again, to be the cornerstone to Keenway Group’s success. To ensure this consistency, we 

continually source for the best quality raw materials, conduct regular and meticulous fabric and 

garment inspections, and pay stringent attention to quality management. This also includes periodic 

maintenance of all its production equipment to minimize potential downtime and help the Group 

strive towards better customer value through quality products, on-time delivery and improved cost 

efficiency. 

What gives Keenway Group its market edge is also its application of the latest technology within its 

manufacturing processes. Keenway Group constantly invests in the state-of-the-art manufacturing 

technology such as, paper patterning and 3D-design stitching equipment as well as specialized ERP 

management software. All these equipment not only enable us to deliver with precision, the 

requirements of our valued significant partners but it also empowers the Group to optimize 

resources, maximize productivity and reduce wastage—a LEAN manufacturing process for higher 

efficiency. The adoption of LEAN manufacturing concept in 2006 was also an important milestone 

in the growth of our company. 

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Sales by Type 2011 

TOP 

62.00% 

BOTTOM 

28.28% 

SUITS 

9.72% 

Market Segmentation 

Our Major Customer 

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Units of the Organization 

Receiving fabric 

Our organization receives fabric 

from overseas textile manufacturers 

in large bolts with cardboard or 

plastic center tubes usually in piles 

or bags. There is a dedicated area to 

store the fabric during the period of 

time between arrival and 

manufacturing. 

Spreading, Form Layout, and Cutting 

The fabric is subsequently transferred to the 

spreading and cutting area in our manufacturing 

facility. The fabric is cut to the shape of the 

garment forms using either a manually operated 

cutting equipment or a computerized cutting 

system. The average quantity of fabric cuts per 

month is approximately 190,427.17. 

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Embroidery Section 

The embroidery section is performed using 

automated equipment, often with many 

machines concurrently embroidering the 

same pattern on multiple garments. The 

monthly embroidery efficiencies are 

normally achieved at 55%. 

Sewing Lines with LEAN System 

The sewing operator knits approximately 

209,900 garments per month in our Malaysia 

manufacturing factory. 

13



Spot Cleaning and Laundry 

In this section, to identify manufacturing defects, 

employees are tasked with performing quality assurance to 

look for cosmetic flaws, stains, or other spots on the 

garment that may have occurred during the cutting and 

sewing process. Our laundry facilities are equipped 

with at least two types of machines: washers and 

dryers. 

Ironing Section 

After a garment is fully sewn and assembled, it is 

transferred to the ironing section of the facility for final 

pressing. 

Finishing Section 

In the finishing department, the daily average 

packing productivity of each worker is 

approximately 320 pieces of garment. They 

expend around 3 hours to load cargo for export. 

14



15



Guiding Principles 

WE MUST ALWAYS STRIVE TO 

Care for customers, 

employees, and 

shareholders 

Speak with truth 

and sincerity 

Respect other 

and success 

together 

Balance short term 

and long term 

Win with diversity 

and inclusion 

16



Vision 

Our Philosophy 

Our Vision is to create a greener environment by using more sustainable materials in our 

manufacturing to reduce negative environmental impact. 

Mission 

Our Mission is to become the most productive garment manufacturer in the textile industry. We 

aspire to provide value and quality service to meet our customers’ needs, to promote the nation’s 

competitiveness and to protect the interests of our employees and shareholders to deliver 

sustainable growth. 

Values 

 

Caring 

Caring for our employees, customers, shareholders and business partners is the utmost value 

that the company upholds. Keenway is committed to act with compassion, integrity, honesty 

and high ethics in all situations, to listen to others with respect and to value different 

opinions. We are also committed to protect the global environment, to enhance the 

communities where employees live and work, and to be compliant with government laws 

and regulations. 

 

Teamwork 

The company values teamwork and believes that working together to share ideas, 

technologies and talents is the road to success. 

 

Continuous Improvement 

Keenway is committed to nurture our employees in their professional development and to 

upgrade our services with better understanding of our customers’ expectations and 

continuously working to innovate and improve its products and processes. 

17



Sustainability Principles 

Keenway recognizes that the economic, social and environmental issues that face the world can 

impact our business and our stakeholders. Similarly, our customers, employees and suppliers can 

also affect these same issues. 

The company strives to accomplish our business mission and build upon our guiding principles and 

values by adopting a business approach that deals with sustainability issues that intersect our value 

chain, present opportunities for shared value and are important to our stakeholders and the greater 

societies where we operate. We will achieve this by: 

Maintaining the highest standards of business ethics, governance, integrity, and safety. 

Embracing opportunities and managing risks deriving from economic, environmental 

and social developments. 

Responsibly using material and energy resources. 

Providing environmental solutions with economic value for our customers. 

Addressing issues of consequence to our stakeholders with sustainable business 

practices. 

Developing technologies, products and services that bring energy and the environment 

into harmony. 

Investing in the professional development of our employees and the communities where 

we operate. 

Creating long-term stockholder value through sustainable processes, products and 

services 

18



Corporate Governance 

I 

t is very crucial that key stakeholders’ interests are protected as 

well as enhancing corporate performance and accountability 

with good corporate governance. Keenway’s corporate 

governance is characterized by the highest standards and has 

always been a well-established guiding principle within the 

operations of the company. 

Keenway abides by the five major corporate governance codes, i.e. 

to protect the rights and interests of shareholders, strengthen the power of the Board of Directors, 

develop the function of supervisors, respect the rights and interests of interested parties, as well as 

promote information transparency, aiming at building up the operation of the Board of Directors as 

the top guideline. As a non-public offering company, Keenway upholds and promotes the 

transparency of operation and the fairness of information transmission, as well as releases material 

information, in terms of making business and financial information available for shareholders, 

customers and other interested parties via a unified source. 

Board members are elected by shareholders and composed of five directors, who are all 

professionals with the expertise in areas of commerce, law, accounts & finance and other required 

areas. 

Our Board of Directors oversee the strategic planning and the company overall performance. At the 

same time, our managers support and execute the management operations. We have regular 

Management Meeting which held by the Chief Executive Officer and attended by other Board of 

Directors and top management to present the performance of every department. All employees are 

welcome to provide any suggestion or direction to the Board of Director or top management. 

Each and every employee including the highest governance is expected to understand the 

company’s Code of Conduct as well as the Rules and Regulations. The Board deems the interests of 

the Company and shareholders as top priority, as well as conducts operation evaluations and 

material resolutions quarterly (in case of material events, urgent provisional meetings will be 

convened). If the items to be resolved relate to the interests of directors, which may conflict with 

the rights and interests of the Company, the director will be disqualified for such resolution. 

19



Furthermore, supervisors and accountants also play a supervisory role to monitor the 

implementation of business of the Company and the Board, so as to protect the rights and interests 

of shareholders and strengthen the power of the Board. 

Pertaining to the performance of employees and managers, company will organize performance 

appraisal at the end of each year for all employees including the top management will be evaluated 

by the Board of Directors. Keenway sets the objectives for the next six months every half a year, as 

well as determines the performance per the attainment of set objectives and reward bonus 

accordingly. The top management receives remuneration in addition to fixed salary based on the 

fulfillment of certain improvement targets in terms of economic, social or environmental fields. 

With respect to the performance management of the Board of Directors, their remunerations are 

subject to the resolution of the annual shareholders’ meeting. In the future, Keenway will maintain 

sounder decision-making and enforcement organizations to increase operational efficiency and 

implement corporate governance. 

There are many factors to determine the candidate for the highest governance body and its 

committees including the experience, management skills and leadership. In our annual performance 

appraisal, there is a part for the succession planning which the suitable successor could be proposed. 

Our Health, Safety and Environment Committee which is led by the top management assist the 

Board to oversee the company’s overall performance in safety, health and environment. The same 

concept apply in our Accounts Department to oversee the overall performance in economy while 

our HR, Admin and Compliance Department to oversee the overall performance in social part. The 

team reviews the status of company’s performance including procedures to ensure compliance with 

applicable laws and regulations to manage risks. The periodical performance will be reported to the 

Board during the Management Meeting. 

Risk management is vital to the Company’s financial success and business continuity in an everchanging 

world with limited resources. Keenway sets, confirms and manages annual economic, 

environmental and social performances via comparison with other branded companies, internal 

evaluation of each department, and both of internal and external auditing programs. 

20



In order to prevent the risk either external or internal occur in the company, precautionary action 

becomes significant to us, possible risks and opportunities, including the compliance with 

international regulations, code of conduct and principles, are monitored and reviewed. There are 

several steps to manage the risks:- 

1. Identify the risk. 

2. Determine the expected consequences of specific threat. 

3. Figure out ways to reduce the risk. 

4. Prioritize the risk management procedures based on the importance. 

At the same time, we always educate our people on the company Code of Conduct and the Rules 

and Regulations with highlight some potential risks that might be encountered by the employees. 

Our intention is to protect our employees from getting chance to involve in the potential risks. 

Keenway strives to comply with applicable laws 

and regulations related to economic, social and 

environmental governance applicable to where we 

operate. 

We work to proactively address concerns that may 

impact business operations. We have developed 

downturn recovery plans in at-risk markets to 

reduce the likelihood and severity of problems 

during economic downturn. We have also 

developed business continuity plans to minimize 

disruptions to our activities and leadership. We 

address sustainability issues in our portfolio, 

including energy and resource conservation. 

Keenway’s Governance Principles 

Keenway’s Board focuses on key 

business priorities and leadership 

development. 

Open communication between and 

among directors and management 

bring up effective oversight. 

Established policies guide governance 

and business integrity. 

Keenway’s Board plays an active role 

overseeing the integrity of the financial 

statement of the Company. 

This lowers operating costs and reduces impact on public infrastructure, communities and the 

environment. We believe that our actions will improve our business competitiveness while 

promoting environmental stewardship. 

21



Company Highlight 

Participation in associations is one of Keenway’s operational strategies. Association’s membership 

enables Keenway to access useful information, such as latest activities in the industry, branding 

operation and Government projects. Keenway can also disseminate our CSR experiences or 

achievements through seminars organized by seminars. Keenway’s memberships in associations in 

2011 are: 

Member of Malaysian Textile Manufacturers Association since 1998. 

Stakeholder Engagement 

A 

t Keenway, we are pro-active in collecting views from fulfilling expectations of our 

stakeholders in our drive for performance excellence. We try to communicate and engage 

with various stakeholders through different means to cater as far as possible for their needs, 

concerns and expectations on our business operations. Each and every one whether indirectly or 

directly influenced by our company’s existence makes us who we are today as a company and 

therefore is vital and important to us. They are our valuable customers, employees, shareholders, 

suppliers, authority, community and NGOs. 

There are several methods for us to communicate with our stakeholders and this Sustainability 

Report 2011 represents a significant platform for stakeholder dialogue. We included the key topics 

and concerns in the aspect of economy, social and environment that have been raised through 

stakeholder engagement. 

22



Customers 

At Keenway, we value all our customers, and believe that open and honest communication is key 

and vital to maintaining and cultivating good business relations. We strive to gain our customers’ 

loyalty through putting efforts to meet customers’ requirements and by delivering a superior value 

proposition such as the interaction in daily operations. Examples of our efforts include our “Close 

to the Customer” initiative within our Operations business that helps us better align our services 

with the needs of our customers. In addition, we always attend trainings and conferences provided 

by our customers to have better understanding in their direction and roadmap towards sustainable 

solutions. 

Besides the product quality and performance, customers’ satisfactions also depend on how our 

customers are treated and how service is delivered. Customer feedback survey form will be 

distributed to our customers at the end of the year in order to follow up on their feedbacks. 

Employees and Shareholders 

Our Employees make us who we are and reflect on all that we have achieved, so, they are our most 

important asset. The way we engage our employees is by providing regular meeting and training. At 

the same time, they are welcome to give suggestions or feedback to their superior or management 

directly or through the suggestion box. 

We understand it is important of the career development for our employees. By offering trainings 

and development opportunities, we are able to assist our employees to enhance their career 

development and reach the balance by creating a culture of teamwork, dedication and passion that 

encourage their creative contributions. 

In addition, Keenway hosts an annual meeting of stockholders at its headquarters; a two-way 

communication forum that allows shareholders to interface with company leadership. We have 

representatives participating in numerous industry organizations. 

Suppliers 

We view our suppliers as an extension of our manufacturing network. So, it is important to have 

close relationship with them. We share knowledge and information among each other to keep 

ourselves always in the up to date status and to increase our competitive. Likewise, Keenway held 

meetings with suppliers and communicate with them on topics of annual policy, goals, green 

product specifications and green supply chain management. 

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Authority, Community and NGOs 

Keenway participates in community hearings and other public forums to communicate about our 

development activities. This often includes dialogue with local community groups, local 

governments and conservation groups, as well as other non-governmental organizations. Our 

stakeholder engagement activities have been an integral part of our business for many years and 

were not undertaken specifically to facilitate preparation of the GRI report. 

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Economic 

Responsibility 

“Keenway has been recognized for its business strategy and excellent of 

the governance. In such dynamic and highly competitive industry, we 

continue to ahead by focusing on innovation in terms of economy, social 

and environment as well as customer service and productivity. We 

believe with better preparation to face the challenges, our business could 

be developed sustainable.” 

25



Our Economic Approach 

K 

eenway creates economic benefits through its sales and service revenue, customers’ 

purchases and the wages, benefits and taxes we pay to and on behalf of our employees. 

Our manufacturing model allows us to adjust, or flex our capacity to adapt accordingly to 

business conditions without incurring significant costs associated with expanding plant capacity 

during periods of high demand, or substantially reducing in-house manufacturing hours during 

periods of reduced demand. Our business model requires strong, enduring customer relations. As a 

supplier provider to the worldwide products infrastructure market, we are responding to our 

customers' concerns about product efficiency and regulatory change. 

Keenway also creates indirect economic benefit through the savings our customers achieve by using 

our products. The Company's executive staff operates within, and is measured against, the Annual 

Operating Plan, which is approved by the Board of Directors. 

Our consolidated financial statements are prepared in accordance with generally accepted 

accounting principle. Under the supervision and with the participation of our management, 

including our Managing Director, we conducted an evaluation of the effectiveness of the design and 

operation of our disclosure controls and procedures. Based on that evaluation, our Managing 

Director concluded that, as of December 31, 2011, our disclosure controls and procedures were 

effective. 

26



LOCAL HIRING PROCEDURE FOR SENIOR MANAGEMENT 

A talented and skilled workforce is essential to the strength of our business. Where the locally based 

labor pool meets these requirements, we seek to hire locally; in many cases, employees with local 

market expertise are best suited for these positions. Relocation opportunities are also provided to 

accommodate professional goals as well as family and personal needs. 

At the same time, we mostly recruited experienced workers to reinforce the development of our 

business garment and significantly to increase our overseas hiring to keep pace with the growth in 

production volume. 

When a vacancy arises, the Head of Department will need to fill in a Recruitment Requisition Form 

and submit to HR Department. Advertisement for the job will then be placed in the media such as 

the local newspaper or recruitment website as well as announced internally. Those who are 

interested for the job can apply by sending their resumes via post of email. HR staffs are 

responsible to make an appointment for an interview. 

Applicants will then be evaluated based on the following criteria: 

Past Working Experiences 

Academic Achievement 

Performance during the Conversation 

After the first interview, shortlisted candidates will be interviewed by both HR staff and Head of 

Department in the second interview. The selected candidate will be confirmed the join date and 

salary. 

30% 

70% 

Local Manager 

Foreign Manager 

Level 

Amount 

Local Manager 7 

Foreign Manager 3 

TOTAL 10 

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Among the overall manager level, the local managers consist of 7 persons and other 2 persons are 

from Singapore and another person is from Sri Lanka. 

Basically, there is no change of the managers compare with the year 2010, which means the same 

person hold the same post. 

For both local and foreign managers, the company does not apply any discrimination and they all 

have the same opportunity to develop in their careers. Each of them means importantly to the 

company and the company appreciates their contributions during the year. 

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Environmental 


29



Environmental Policy 

KEENWAY GROUP is dedicated to managing all of its business 

activities with integrity and excellence. Keenway reaffirms and 

formalizes its commitment on its current establishment, implementation 

and maintaining the said Environmental Management System as follows: 

 

 

 

 

 

To comply with relevant environmental regulations, legislation and all 

environmental issues which Keenway Group subscribes to; 

To continually improve and prevent pollution by disposing of waste 

according to regulated means; 

To educate, train and share and make available its Environmental 

Policy and experience with members of this organization, customers 

and vendors in order to encourage environmental awareness and 

excellence; 

To incorporate environmentally friendly ideas in our process of 

designing and producing our products without any usage of any toxic 

or harmful such as Azo dye-stuffs and the like of RSL (Restricted 

Substance List); 

to incorporate safe and best practices in usage, supply and storage of 

chemicals through its environmental program, objective and target. 

30



W 

e know the deterioration of the environment through depletion of resources such as air, 

water and soil due to human activities. The impact of the deterioration can cause the 

climate change which is considered one of the greatest threat to our planet. 

Keenway concerns seriously of the industrial impact to the environment. In fact, it is inevitable of 

the industry causes the depletion of resources and pollution. This would be the challenge for us due 

to our nature of business. So, managing the environmental footprint is a priority and we are 

committed to adopt best practices in our business operation. We will carry on to focus on 

environmental protection, resource conservation, waste reduction as well as the impact of the 

business activities to our environment. 

Our environmental policy focuses on our commitment to comply with the relevant regulations as 

well as educate our members in the organization. The HR, Admin & Compliance Department in the 

company responsible in the implementation of the relevant environmental programs, monitoring the 

progress and conduct training to increase the awareness in the company. 

Key Aspect Goals Performance in 2011 

Energy 1. To reduce 25% of direct and 

indirect energy consumption 

in 2015. 

1. The consumption of direct energy 

had been reduced for 17.76% while 

the indirect energy had been reduced 

for 15.28% 

Water 

2. To use cooling fan rather than 

air conditioning. 

1. To reduce 25% of water 

consumption in 2015. 

2. Promote the use of recycle 

water. 

2. Installed in sewing department and 

will be implement in other 

departments. 

1. The consumption of water had been 

reduced for 15.63% 

2. Collect air-conditioning waste water 

and rain water to flush the toilet. 

31

Litre 



Emission 

and Waste 

1. To reduce 25% of CO2 

emission and waste in 2015. 

2. To apply Global Recycle 

Standard (GRS) Certification 

in 2012. 

1. The topic were new for the company 

in measuring the CO2 emission and 

waste. The comparison could be 

done in future. 

2. In progress for the application. 

ENERGY CONSUMPTION BY PRIMARY SOURCE 

T 

his year’s report breaks the direct energy into diesel and petrol which the last year’s report 

combined both of the fuel and we will cover these for the future reporting. We differentiated 

the fuel into 2 types was due to having a clear and detail information on what kind of the 

direct energy we used. So, we could have specific countermeasures for saving the direct energy. 

The use of diesel and petrol are in transportation only. The figures are based on the monthly 

tracking of bills and invoices. 

8,000.00 

7,000.00 

6,000.00 

5,000.00 

4,000.00 

3,000.00 

2,000.00 

1,000.00 

- 

Fuel Consumption 2011 

Diesel 

Petrol 

The consumption for diesel was higher than petrol due to our lorries and vans are using diesel to 

operate while our company’s car are using petrol to operate. The frequency of using the lorries and 

vans depend on the production. The increase of diesel was happened during the peak period of the 

production. 

32

litre 

January 

February 

March 

April 

May 

June 

July 

August 

September 

October 

November 

December 

litre 

January 

February 

March 

April 

May 

June 

July 

August 

September 

October 

November 

December 



We will monitor closely on the direct energy consumption and fine an effective way to reduce the 

use of the direct energy. Proper logistic arrangement could reduce the unnecessary travel and to 

consumption of the direct energy. 

litre / piece or pair 2011 

for Diesel 

0.07 

0.06 

0.05 

0.04 

0.03 

0.02 

0.01 

0 

litre / piece or pair 2011 

for Petrol 

0.01 

0.008 

0.006 

0.004 

0.002 

0 

33

kwh 

kwh 

kwh 

January 

February 

March 

April 

May 

June 

July 

August 

September 

October 

November 

December 



INDIRECT ENERGY CONSUMPTION BY PRIMARY SOURCE 

T 

he main energy source used by the company is electricity, which is used in all aspect of the 

company’s operations and administrations. The electricity is the only significant form of 

intermediate energy utilized. The only supplier of the electricity in Malaysia is Tenaga 

Nasional Berhad (TNB). 

400,000.00 

350,000.00 

300,000.00 

250,000.00 

200,000.00 

150,000.00 

100,000.00 

50,000.00 

- 

Electric Consumption for 2011 & 2010 

2011 

2010 

2400000 

2300000 

2200000 

2100000 

2000000 

1900000 

1800000 

1700000 

Consumption 

Comparison 

Year 

2011 

Year 

2010 

Consumption 1975741 2332079 

2.5 

2 

1.5 

1 

0.5 

0 

kwh/pc or pair 

Basically, the overall electricity consumption for the year 2011 could be considered decrease 

compared to the electricity consumption for the year 2010. The decrease percentage is 15.28%. 

34

m3 



One of the reasons of reducing the electricity consumption was we are using the e-KPI Monitoring 

as our guideline to keep track of the electricity consumption. With the proper record of the 

electricity consumption, we would plan for the better usage of the electricity. 

In the future, we would like to plan for more energy saving activities in order to reduce the 

electricity consumption in 25% in 2015. 

ENERGY SAVING 

K 

eenway has always been enthusiastic in saving the energy by reducing the direct and 

indirect energy as well as the raw material consumption. Some of the conservation and 

efficiency improvements have been applied in order to achieve the target. 

Turn off the lights and air-conditioning during lunch hour for both office and production is a 

general practice in the company. Everybody has the initiative to implement the practice. 

Installed cooling fan rather than using air-conditioning contributed an efficient method in saving the 

electricity and brought the similar result. 

Using natural sunlight is a better way to save energy than using other forms of lights. The 

transparent high roofing can save the energy and the room temperature will not be too high as well. 

WATER WITHDRAW BY SOURCE 

T 

he company’s water supply is mainly from SAJ Holdings Malaysia. The water consumption 

for Malaysian factory was based on the monthly invoices. The water in Keenway is primary 

used for drinking and cleaning. The only purpose using in manufacturing process is for 

product wash test which contribute a portion of the overall water usage. 

2,500.00 

2,000.00 

1,500.00 

1,000.00 

500.00 

- 

Malaysian Factory Water Consumption 2011 & 

2010 

2011 

2010 

35

m3 

litre 

January 

february 

March 

April 

May 

June 

July 

August 

September 

October 

November 

December 



Consumption 

Comparison 

litre / pc or pair 2011 

20 

25000 

24000 

23000 

22000 

21000 

20000 

19000 

18000 

Year 

2011 

Year 

2010 

Consumption 20557 24365 

15 

10 

5 

0 

The overall water consumption for 2011 was decreased compared with the water consumption for 

2010. The decrease percentage is 15.63% 

Keenway will plan for more water saving activities in order to reduce the water usage including 

organize a team to have regular inspection on water piping. Besides that, we need to educate 

employees the importance of water and we need to save more water. 

For the conservation of resources, the company puts effort in using resources that can be reused in 

order to reduce using new resources. Collect air-conditioning waste water and rain water to flush 

the toilet is one of the practices we do in the company. 

At Keenway, we have installed closed process water system to process the waste water become 

uncontaminated before the waste water returned to the municipality or ecosystem. 

GREENHOUSE GAS EMISSIONS 

G 

reenhouse gases generally produce an increase in the average temperature of the earth. The 

rising of temperature may cause the climate change which may refer as change in weather, 

sea level as well as land use patterns. 

36



CO2 Emission 2011 

Direct Indirect 

9.58% 

90.42% 

At Keenway, the greenhouse gas emission 

come mostly energy use. Energy-related 

carbon dioxide (CO2) emission is resulting 

from direct and indirect energy. The direct 

greenhouse gas emission sourced from the 

use of diesel and petrol. The indirect 

greenhouse gas emission was from the use 

of electricity. 

Since, Keenway relied heavily on indirect 

energy, so the indirect CO2 emission was 

higher than the direct CO2 emission, which 

contributed 90.42% of total CO2 emission. 

The CO2 emission data was collected from the Enablon System. It is a software that for 

sustainability management. The CO2 emission per piece or pair is 0.57kg CO2. 

The company will put effort to reduce the consumption of direct and indirect energy in order to 

reduce the CO2 emission. Besides that, we follow the local legal rules that our commercial vehicles 

are scheduled for every 6 months inspection in order to make sure that the level of smoke of our 

vehicles do not above the limitation. 

WASTE BY TYPE AND DISPOSAL METHOD 

T 

he waste in Keenway Group can be classified into 4 categories: 

1. Cardboard & Paper 

2. Fabric Waste 

3. Plastic 

4. Rubbish 

Rubbish is waste that cannot be recycled while the 

rest are recyclable. 

Waste Discharge 2011 

22% 

78% 

Recyclable 

Non- 

Recyclable 

We prepared an area to store the wastes which were collected from the factory area. The wastes 

have been segregated according to the types. 

37

gram 

kg 

January 

February 

March 

April 

May 

June 

July 

August 

September 

October 

November 

December 



The Compliance Department will contact the waste collector to collect the waste when it was going 

to be full. The recycled waste would be weighted in front of the staff and sent to the waste collector 

for recycling. The rubbish would be processed by the local authority for land filling. 

25,000.00 

Weight of Waste 2011 

20,000.00 

15,000.00 

10,000.00 

5,000.00 

- 

Cardboard & Paper 

Fabric Waste 

Plastic 

Rubbish 

gram / pc or pair 2011 

160.00 

140.00 

120.00 

100.00 

80.00 

60.00 

40.00 

20.00 

- 

The volume of waste highly depended on the 

volume of production. 

The very peak season was from October to 

December 2011. Before the period, our Cutting 

Department needed to prepare the cut piece for 

the Sewing Department. 

The company will plan to increase the 

efficiency of pattern making so that more 

pattern can be placed in the fabric in order to 

reduce the waste fabric. The concept of Reduce, 

Reuse and Recycle will be implemented in the 

company. 

Employees are encouraged to save documents in softcopy rather than print out, or try to print out 

the document in paper for both sides when necessary. A box has been prepared beside the copier for 

the one-side used paper which can be reused. Paper which cannot be reused will then be sent for 

recycling by the recycled company. 

38



Used leftover fabric to make floor mat, wipe table and window as well as other cleaning purposes 

so that we could reuse the waste. 

Keenway encourages employees to use meal box to buy food rather than use polystyrene box as 

food container. 

39



Social 


40



Employment 

A Great Place to Build Our Career 

E 

ngaging employees has always been one of our key priorities. Keenway encourages an open 

door policy and have in place various channels for communication between employees and 

management. We continue to invest in our employees because we believe that employees, 

regardless of their position in the organization are the core of a sustainable business entity. 

At Keenway, we are committed to provide the opportunities for our people. We always take career 

development of our employees seriously. Our policy is to grow and develop employees of the 

company’s future leadership requirement. We want our employees work for their careers but not 

only for a job. Engaged and motivated employees to make our team become competitive and 

sustainable will be crucial to us in the future. We aim to be a benevolence and responsible employer 

of choice for our current and future employees. 

In our company Code of Conduct, we have made our commitment to operate within the legal 

framework and abide by the local legislation. In addition, we stated some clauses based on the 

Malaysian Employment Act 1955. Besides that, our Health, Safety and Environment Committee is 

responsible to keep track of the health and safety performance of the company. Trainings regarding 

general work rules, code of conduct as well as occupational health and safety have been provided 

regularly in order to ensure our employees know well of the company’s operation. Furthermore, the 

company provided opportunities for its employees to attend technical and soft skill training 

internally or externally so that they can always forefront in their fields. 

41



In terms of equal opportunity, the company does not practice or condone unlawful discrimination in 

any form against new applications or prospective employees on the grounds of race, color, religion, 

creed, gender, country of origin, age, or disability status. 

CODE OF CONDUCT 

At Keenway Industries, we are committed to operating within the legal framework in compliance 

with our Code of Conduct listed below: 

1. No employee is to be discriminated on the basis of their race, gender, nationality, ethnic 

origin, marital status, pregnancy status, religion, political views and/or sexual orientation. 

2. Hiring of any persons under the age of 16 years old is against company policy and will not 

be tolerated. 

3. Working hours consist of 48 hours per week as stipulated by applicable laws and regulations. 

Any hours in excess not exceeding 60 hours per week is therefore considered overtime and 

will be paid in accordance. 

4. Keenway Group ensures all obligatory social security requirements to each and every one of 

its employees in accordance to the applicable laws in force. 

5. As allowed by the local law, we would ensure that employees have the right to join or refuse 

to join representative organizations or associations with respect to workplace issues. The 

employee’s right to freely associate begins upon confirmation of employment and continues 

throughout the course of employment. 

6. The branch factory manager/executive at each location is fully responsible for maintaining 

safe and healthy working conditions and for making the necessary arrangements within the 

framework of our health and safety policy 

7. All employees are required to adhere to the Group’s terms and conditions and we pay wages 

to employees under equal terms and conditions. 

8. Managers at Keenway are responsible for the compliance of the rules and regulations of the 

Group by the staff and are expected to take disciplinary actions in the event of unethical 

behaviors and/or actions. 

9. Keenway respects and adhere to all applicable environmental laws and regulations. 

10. Should any violation of this code of conduct occur, the Managers and Board of Directors 

will be notified, as well as the concerned national authorities and relevant actions will be 

taken without any discrimination against or retaliated for the notification of an assumed 

violation. 

42



EMPLOYMENT STATUS 

W 

e view our people as our most valuable asset, and a primary reason for our continuous 

growth and success. Our peoples’ talent and endless passion has enabled us, over the 

years, to be flexible, creative and innovative and we firmly believe that investing in our 

human resources will drive the sustained and long-term growth of Keenway. 

E 

EMPLOYEE DEMOGRAPHICS 

As of 31 December 2011, we had 1079 employees work with us from diverse background and 

disciplines. They are all contracted on the full time basic and have signed a legal employment 

contract. 

This figure only applies to the number of 

employees working at the headquarters 

company of Keenway. 

1. Bangladesh 31.70% 6. Indonesia 3.61% 

2. Malaysia 29.40% 7. Myanmar 1.67% 

3. Cambodia 12.88% 8. Philippine 1.02% 

4. Nepal 9.73% 9. Pakistan 0.28% 

5. Vietnam 9.08% 10. Sri Lanka 0.09% 

9.73% 

3.61% 

12.88% 

Employees by Nationality 

0.09% 1.02% 

Malaysia 

9.08% 

29.94% 

0.28% 

1.67% 

31.70% 

Bangladesh 

Cambodia 

Myanmar 

Indonesia 

Nepal 

Vietnam 

Pakistan 

Sri Lanka 

Philippine 

We are proud of our employee diversity, and count has 10 different nationalities among our 

workforce. Keenway employs both permanent and contract employees. We are reporting that 29.94% 

of our employees are on our permanent payroll. However, 70.06% are contractually employed. 

43



An interesting characteristic of our workforce demographics reveals that 58.76% of our employees 

are male against 41.24% as their female counterparts. However, this is not due to any gender bias 

during any of our recruitment stages as the Company does not condone gender discrimination. 

Total Workforce 

Female 

41.24% 

Male 

58.76% 

In 2011, we expanded our workforce by 10%, thanks to our merger of two factories in Malaysia and 

to further business growth in our existing locations. 

7.00% 

6.00% 

5.00% 

4.00% 

3.00% 

2.00% 

1.00% 

0.00% 

New Hires by Gender per Region 

4.63% 

3.71% 

Female 

Male 

3.61% 

2.22% 

1.48% 

1.67% 

0.74% 0.74% 

Nepal Cambodia Malaysia Vietnam Indonesia 

The employee gender balance is likely 

to be maintained in the near future as 

the hiring rate of females continues to 

be higher than for males. The rate of 

new hires in this 2011 year period for 

males 8.98% and 9.82% for females. 

The slight difference between the 

gender hiring rates arises because most 

of the available vacancies are in the 

sewing areas, which has been 

traditionally a female-dominated 

segment. 

Throughout the year, we have continued to improve the quality of our employee training programs 

by revamping some of our training material and introducing new aspects to both basic training for 

new employees and enrichment programs for our existing staff. Our company strategy is to retain 

all the staff of the companies we acquire, most of whom are local and foreign people. 

44



Reflecting Keenway’s commitment to diversity, we adhere to guidelines on fair recruitment 

practices. All our people are selected on merit and all recruitment advertisements make no mention 

of specific requirements based on gender, 

ethnicity, age and nationality preferences. 

New Hires by Age Group 

During the new recruitment period, mostly the 

rates of employees will be under age of 30 years 

old as they will change a new working 

environment faster than employees which are 

above 30 years old because they are seeking 

highest salary to achieve their career development. 

29.56% 

1.48% 

68.96% 

Age Group < 30 years 

Over 50 years old 

30-50 years old 

Employee turnover across the company continues to remain moderate with averaging 5.16%. We 

set a target for 2012 to maintain our total turnover per year at less than 5% and we will continue to 

monitor this KPI, but a new target to improve performance in this area is needed. 

1.20% 

1.00% 

0.80% 

0.60% 

0.40% 

0.20% 

0.00% 

Employee Turnover by Gender per Region 

1.01% 

0.83% 

0.74% 

0.65% 

Male 

0.46% 

0.46% 

0.37% 

Female 

0.27% 0.28% 

0.09% 

Employee Resignations 2011 

divided by total number of 

employees. Keenway’s turnover rate 

is at an acceptable level in the 

country we operate. 

The reason of total turnover rate for 

foreign employees will be higher as 

their employment contract is expiry 

and they decide to return their own 

country for seeking a job. 

However, the turnover for Malaysia 

employees is slight lower as they are 

satisfy with our company’s benefit 

and salary, and we offer them a good 

& challenging working environment, 

which gives them the freedom to 

develop and fulfill their potential. 

45



Employee turnover reflects the percentage of people that left the company in relation to the average 

total headcount at the beginning and end of the year. These are the people who were let go and who 

left on their own violation. 

5.08% Employees Turnover by Age Group 

49.15% 

45.77% 

Age Group < 30 

years 

30-50 years old 

Over 50 years old 

Mobility is considering equal among 

those aged between 30 –50 years and age 

under 30 years as they comprised 49.15% 

and 45.77% of total turnover, followed by 

those over 50 years who made up 0.55% 

of those who left our Company to pursue 

other prospects. 

We continue our commitment to employee care by offering a competitive salary and benefits 

package to decrease the turnover rate. Aside from the benefit of attracting and retaining talented 

people, we want to ensure that our employees are able to cope with the costs of living and rising 

inflation while being rewarded for their contribution. Our benefits package is designed to help 

employees balance their work and home lives, and encourage them to have long careers with us. 

EMPLOYMENT DIVERSITY AND FAIR PAY POLICY 

There are no disparities in pay between women and men. All employees receive the same pay 

regardless of gender. Although there is no minimum wage law in Malaysia, our base salary is 

competitive and includes performance-based incentives and rewards. Our salary ratio between 

women and men is 1:1. 

1 : 1 

PAY PARITY 

46



COLLECTIVE BARGAINING 

K 

eenway Industries Sdn. Bhd. does not have collective bargaining agreements with 

employees. In our estimates, the benefits provided by our company to eligible employees 

would probably exceed those given by collective bargaining agreements. 

As allowed by local law, we would ensure that employees have the right to join or refuse to join 

representative organizations or associations with respect to workplace issues. The employee’s right 

to freely associate begins upon confirmation of employment, and continues throughout the course of 

employment. 

Our company always using the principles of co-existence, co-prosperity and harmony as the basic 

HR policy to lead the company and the workers will cooperate for mutual advancement. The 

organization attempt to provide a superior working condition relative to its peers so that employees 

do not feel the need for a labor union. 

In our organization, we have a worker council. Each of the worker council will hold at least one 

regular meeting per month. The council also gathers when the need arises to discuss matters. It 

enables grievances and requirements to be promptly carried to management so that the necessary 

corrective measures can be followed. Due consideration was given to employees’ requests to 

improve the work environment. 

OCCUPATIONAL HEALTH AND SAFETY 

I 

t is crucial to build up a health and safety working environment for our employees and even 

other stakeholders in the chain. In the current stage, Keenway keens to apply a holistic health 

and safety approach in the company which we comply with the Occupational Safety and Health 

Act of 1970 at the same time. We are committed to develop a health and safe working environment 

that increase employees’ productivity and reduce cost and an attractive working place for them. 

The Health, Safety and Environment Committee was set up to build our workplace health and safety 

capabilities. This Committee is led by top management and consists of other departmental persons 

in charge. Each and every employee has been educated with company policies, basic health and 

safety knowledge as well operation procedures. Fire drill and evacuation for factory and 

accommodation premises will be conducted regularly in order to increase the awareness on fire 

safety among the employees. Posters and slogans are pasted around the factory areas so that the 

health and safety awareness does not neglected by our employees. 

47



Keenway is always primed to set up appropriate response procedures and teams in relations to the 

threat of serious diseases. The HR department regularly sends medical and travel alerts when 

appropriate to all staff. Information on pandemic planning is made readily available for all staff on 

the Keenway. 

We did not have any incidence in occupational diseases, critical accidents and fatalities during the 

reporting year. For the absenteeism in 2011, the total missed days over the period was 8461 and 

total of workforce days worked in a year was 255268 days. The absentee rate was 0.033146 per day 

and for every 100 employees, 6629.2 hours were lost from work due to absentee. 

48



EMPLOYABILITY 

K 

eenway is committed to the professional growth and development of all employees. We 

strive to maintain an environment that encourages professional relationships for ongoing 

development and to provide training/education to enhance business skills. All employees 

are given the opportunity to advance through the levels of their chosen profession, depending on the 

individuals’ performance and interest, and the job requirements within the group. 

All the career development programs shall be joined by employees in terms of voluntary. The 

company will not have any disciplinary action towards the employees who refuse to join the 

programs. 

The following career development resources are available in the manner of fairness and 

transparence: 

a) Performance appraisals: An opportunity for two-way discussion between management 

and employees. It is an excellent avenue to review accomplishments, set business 

objectives and goals to enhance the necessary skills over the coming years. 

b) Training: Through a variety of media, including external and internal training as well as 

on-the-job training. Training programs range from general business skills to technical 

trainings. 

Keenway integrates one core programs to promote lifelong learning: a mandatory performance 

management program for every employee that fosters open communication between manager and 

employee for a greater perspective on the business. In addition to these, Keenway supports skills 

management programs such as industry seminars/conferences, internships, “on-the-job-training” 

programs, technology training and management training programs. 

Keenway also provides opportunities for informal learning, through periodic all-hands meetings that 

address companywide issues in an informal and interactive setting. 

49



Human Rights 

T 

he diversity of our employees is a tremendous asset. We provide equal opportunity in all 

aspects of employment and will not tolerate discrimination or harassment of any kind. At 

Keenway, one of the important component of the company practices is we respect for the 

individuals. We support the United Nations Universal Declaration of Human Rights and also stated 

in our Code of Conduct and other policies as a guideline for our business direction. 

Besides that, we would ensure that employees have the right to join or refuse to join representative 

organizations or associations with respect to workplace issues. We forbid any retaliation in our company 

which could be out of the human rights practice. Keenway continues to extend its localization strategy 

that expands our operations and investment in the communities where certain of our customers do 

business. By manufacturing, sourcing and servicing locally, we will build relationships with 

suppliers that will promote procurement and manufacturing of parts and equipment, provide 

competitive pricing and improved response time to our customers. 

Being in the garment manufacturing industry, child labor and forced or compulsory labor are the 

common potential risk facing by the production. The HR, Admin and Compliance Department 

responsible for monitoring the recruitment to prevent from recruit the child labor while the 

Production Department responsible for the production planning to avoid the forced laboring 

happened. Our HR, Admin and Compliance Manager who is also one of the directors in the 

company is the most senior position in dealing the human rights issues. 

Reporting unethical or illegal behavior is the responsibility of every employee. Employees who 

discover a potential violation of the Code are encouraged to inform our compliance committee. Our 

people were trained regularly to know what are their rights and how to protect themselves when their rights 

have been threaten. 

50



FREEDOM OF ASSOCIATION AND COLLECTIVE BARGAINING 

I 

n 2011, we identified no operations in which the right to exercise freedom of association and 

collective bargaining were at significant risk. In contrast, we support the rights of our 

employees to become members of council, and 100% percent of our employees have exercised 

that right. In addition, we encourage positive relationships with our employees and council by 

adhere to the principles outlined in our HR Policy as below: 

The employee’s right to free association and collective bargaining is consistent with the 

International Labor Organization’s Conventions #87 and #98. To ensure that these core 

International Labor Conventions are fully respected by us, the following would be followed: 

A. We would not use force or the presence of police or military to intimidate employees or to 

prevent peaceful organizing or assembly. 

B. We would not dismiss, discipline, or otherwise coerce or threaten employees seeking to exercise 

their right of free association, which includes the right to not only join but to refuse to join 

relevant employee representation organizations or associations. 

C. Employees have the right to elect representatives of their organizations and to conduct activities 

without our interference. Thus, we would not interfere with the right to freedom of association 

by controlling employee organizations or by favoring one organization over another. 

D. In cases where a single union represents employees, we will not interfere in any way in the 

employee’s ability to form other organizations to represent them. In any case where the 

industrial relations system specifies certain unions as the exclusive bargaining agent, we will not 

be required to engage in collective bargaining with other employee groups or organizations on 

matters covered by the collective agreement. 

E. As part of our standard employee training practices, all employees would receive training on 

their rights related to this standard, acknowledging that these rights may vary by location. 

Employees and the management would honor, in good faith, the terms of any signed collective 

bargaining agreement. 

F. Employees would be able to raise issues to management concerning compliance with the 

collective bargaining agreement without retaliation. 

51



CHILD LABOR 

A 

s a company, Keenway recognizes the right of children and they need to be protected from 

any form of exploitation and performing any work that will likely interfere with the child’s 

education or will be harmful to any aspect of the child’s development. 

Therefore, as a policy, the company shall not employ children who have not completed 16 years of 

age (or the age required by the local law if higher than 18 years old) for any work and for any 

position within the company. 

Keenway shall employ strict procedures to verify the age and any information supplied by any 

applicant and shall assign a trained staff for this purpose. 

In addition, Keenway does not entertain any job applicant who has no original copy of valid 

national identification such as Identity Card or birth certificate. Also, Keenway refrains from doing 

any business with companies or organizations who do not share the same policies on child labor 

and young workers. 

The company put a lot of effort to prevent from child labor recruitment. It shows that there is no 

incident of child labor recruitment and we will put our effort to maintain this. 

Keenway is very determined in the elimination of child labor issues and consider it as a step to take 

for moving further towards sustainability. Besides, the company never forgets that children are our 

future and they have the vision to shape the world with their limitless imagination. 

52



FORCED OR COMPULSORY LABOR 

FORCED LABOUR 

1. Prison Labor 

We would not use prison labor 

or subcontract work to prison. 

This includes procurement of 

any materials, goods or services 

used to manufacture products. 

2. Indentured/Bonded 

W 

e would not use forced labor to produce Buyer 

products in our own, subcontracted or vendor facilities. 

Forced labor includes prison, indentured, bonded and 

other forms as outlined in our Forced Labor Policy. 

It is unavoidable to have excessive overtime in the production 

processes since they are depending on customers requirements of 

the products. 

The overtime work is voluntary. Employees aware that they have 

the right to refuse to work overtime and will not be punished or 

retaliated. Employees who agree to work overtime will sign a the 

voluntary overtime form in respect of volunteer and the form will 

be approved by the supervisor in order to reduce abusive 

overtime work. 

Our company is putting effort to minimize the risk by having a 

proper production planning schedule with advance 

communication with buyers. Besides that, employees are given 

training opportunity to upgrade their technical knowledge and 

skill in order to increase the productivity and efficiency as well as 

to reduce the overtime working. 

Although we have policies and procedure in place against 

internal human rights abuses, we believe that there is more that 

we should do. This is an area of future focus and during 2012 we 

will ensure that our policies are consistent with the spirit and 

intent of the International Labor Organization (ILO) Declaration 

on Fundamental Principles and Rights at Work, where applicable 

to business. 

We would not participate in any 

system of recruitment or 

employment practice that 

indentures or bonds an 

employee to the workplace. All 

deductions from wages would 

be in accordance with local laws 

and no deduction would be 

allowed to serve as a repayment 

of a bond or other fee incurred 

in the course of recruitment. 

3. Freedom of Movement 

We would allow employees to 

move freely within their 

designated work areas during 

work hours, including being 

allowed access to water 

fountains or dispensers and 

toilet facilities. Employees 

would be allowed to leave the 

facility during extended meal 

periods or after work hours. 

4. Forced Overtime 

We would inform employee at 

the time of hire if necessary 

overtime is a condition of 

employment. Where local law 

does not allow mandatory 

overtime, we may not force 

employee to work overtime. 

53



Society 

O 

ur business success is supported by the strength of our relationships with the communities 

where we operate. We are focused on creating long-term economic, social and 

environmental benefits through sustainable initiatives, job creation, supplier engagement, 

research and development activities, and educational support. Our commitment is to broaden these 

benefits by expanding our local presence in the places where we operate. By doing so, we will 

extend our legacy and our business success into tomorrow. 

We promote the highest standards of governance. They are at the core of our Company's reputation 

and stability, and through them we are able to serve our stockholders, employees, clients, suppliers 

and other stakeholders with passion, hard work, confidence and an innovative spirit. Beyond our 

longstanding commitment to abide by laws and regulations applicable to us, we work hard to 

engender a culture of conducting ourselves ethically. Simply put, our management team continually 

encourages our workforce to do their jobs the right way. Our employees appreciate how quickly a 

company's goodwill can be destroyed by not adhering to this standard. Our governance systems are 

the cornerstone of our corporate management and, in conjunction with our Corporate Mission, 

Vision and Guiding Principles and Values, guide the decisions and actions of all employees. 

54



The business and affairs of the Company are managed by or under the direction of its Board of 

Directors, as well as by our Chief Executive Officer and other members of our senior management. 

We conduct regular training to educate our employees the responsibilities towards the society. 

Laws and Regulations on fair trade, environment and corruption are becoming increasingly rigorous 

across the globe. To realize sustained growth and development as a largest supplier company, 

Keenway is firmly committed to comply with laws and regulations and maintain high ethical 

standards. 

In fact, non-violation laws and regulations problems have arisen in our company as we are shifting 

its emphasis from reactive to preemptive activities and strengthening the oversight function to 

prevent compliance problems from occurring. 

55



Product Responsibility 

A 

s a global supplier, Keenway needs to continue provide and develop products that fulfill 

customers’ demands and we apply the same concept to our services as well. In fact, our 

product development is affected by the needs and requirements of customers. We are 

committed to provide our qualified products and services including delivery time to our customers. 

Our policies and trainings are geared towards ensuring compliance with the ethical expectations of 

customers. These include: 

1. Committing to providing professional, flexible and excellent customer service, adopted by 

everyone in the company. 

2. Ensuring the confidentiality and privacy of customer communication and information. 

3. Supporting customers and accommodating their demands in time of need. 

4. Providing a unique and differentiated customer experience. 

We have also established systems to ensure compliance, where applicable, with national and 

international laws regarding customer health and safety, product and service labeling. 

At Keenway, the quality assurance spanning the entire product life cycle. From the raw material 

that we purchased until the finished goods are packed in the box, our Quality Assurance Department 

plays an important role in the procedure. We aim to increase the overall department’s efficiency and 

maintain the percentage of Acceptable Quality Level (AQL) defect and reject below 2%. The curent 

performance for the department efficiency is below 60% and the AQL defect and reject is above 3% 

In order to achieve the target, training will be provided regularly to enhance the technic and skills of 

the employees. 

In addition, we believe that After Sale Service is the way for us to improve ourselves in term of the 

product quality, delivery time and services which can help us to go further and sustainable. We 

follow up with our customers and ask for feedback to know what and where we should do better or 

improve. 

56



We Care What You Care 

CUSTOMERS HEALTH AND SAFETY 

H 

ealth and safety are two significant aspects in every business, and is deemed very 

important at Keenway Industries. 

Constant signs and reminders are put up all around the factory to ensure that each step of the way in 

the production of each piece of garment, our workers are protected and knowledgeable as well as 

aware of health and safety. Proper Handling of machinery, proper attire, like gloves and shoes are 

not only provided in trainings, we have supervisors constantly providing supervision and care to 

make sure that the correct procedures and attire are being practiced. 

57



Our customers’ health and safety are the most importance to us, and of such, we have implemented 

very strict standards while manufacturing our garments. Each piece of garment manufactured is 

placed through the metal detector piece by piece, and from there, enters into an enclosed area for 

packing. Only authorized personnel are allowed in the enclosed area to pack the pieces of garments 

into the boxes for shipping out. With the help of metal detectors, which is currently a part of an 

overall safety policy, we are able to aim at eliminating any opportunity for metal pieces like broken 

needles, from any source, to contaminate the clothing. 

Our suppliers are authorized by the buyer. Besides that, we request these fabric suppliers to provide 

the Restricted Substances List (RSL) test report for our reference to show that we are using 

approved material for our products. For the coming year, Keenway plans to apply for the Global 

Recycle Standard (GRS) Certification to produce the products from sustainable material. 

58



CUSTOMERS SATISFACTION 

E 

stablishing the fact that our customers are one of our biggest stakeholders, we needed to 

keep their satisfaction always in our view. Even as we see the number of complaints 

decreasing over the months, we still continuously seek to improve on our standards, quality 

assurance and delivery time. 

Furthermore, our customer department will hand out the Customer Feedback Survey form to our 

customers at the end of each year and collect back within 30 days if possible. If the score is 3 points 

and above for Customer Satisfaction level; customer satisfactory is considered fine. Any score is 2 

or below, immediate action shall be reviewed and taken by representative HOD. Root cause and 

preventive action shall be discussed for effective correction. 

We regularly hold meeting to discuss on our procedures that are in place and how we could further 

improve on them. 

55.84% 

Claim Reason 2011 

1.35% 

1.03% 0.04% 

15.24% 

13.53% 

8.05% 

1.18% 

0.04% 1.60% 

2.10% 

shortage 

broken key holeer 

stain 

print peel off 

Heat Transfer defect 

repair 

Fabric Defects 

Needle Line 

Metal Found 

Yarn Breakage 

Missing Rivets 

Customer Service Program 2011 

59



Positive Attitude 

Adopt and train towards a positive “can-do” attitude. 

Keep Your Promises 

If you promise your customer something, make sure you can do it and keep 

that promise. Keep track of your promises and ensure to deliver them. 

Always look for ways to help your customers. 

Answer Phone and E-Mails 

Assure your customers that you can be reached conveniently. 

Deal with Complaints 

Deal with complaints immediately and efficiently. As much as we dislike 

complaints, it gives us an opportunity to improve. 

Work As A Team 

Make it a habit to engage the help of others in the same department in order 

to offer the best to our customers as it is unlikely that any one person is able 

to answer all your customer’s questions. 

Besides that, good quality of product can assure our customers satisfactory and can increase 

company’s business in long term. 

Our QC Department had implemented the Traffic Light System in our sewing line. Green, yellow 

and red cards are issued by the inline inspector to show the inspection result of the latest inline 

inspection done. 

Green Card 

Yellow 

Card 

Red Card 

Zero Defect One Defect Two or More Defects 

Only one card can be issued at a time. The cards have to be placed somewhere visible to everyone 

at the machine. The traffic light system should not be interpreted as a discriminatory system; it is a 

tool to identify quality related problems in the line. 

60



Group Delivery Performance 

for Year 2010 

Grace 

Period, 

973533, 

20% 

Above 7 

days, 

148792, 

3% 

On time, 

3671972 

, 77% 

Ontime 

Grace Period 

Above 7 days 

2010- del performance 97% 

Our delivery performance for year 2011 was 99% which higher 2% compared with delivery 

performance for year 2010. 

61



The good delivery performance could reduce the burden of airing the delay products and our 

company has enhanced the reputation. 

In future, the company will continue to train the employees in order to enhance their technical skills 

and we are able to reduce the outstanding production at the same time. Furthermore, good 

communication with our buyer in advance can make us have a proper planning for the production 

schedule. 

We aim to ensure that all of our products sold to the customers are safe and comfortable. To 

minimize any risks through direct contact with our products, we have implemented various 

precautionary practices. In 2011, Keenway has no events to be reported on non-compliance with 

laws and regulations concerning the provision and use of products and services during the reporting 

period 

62



GRI Content Index 

Page 

No 

Reported 

Yes No 

STRATEGY AND ANALYSIS 

1.1 Statement from the most senior decision maker of the organization 5 √ 

1.2 Description of the key impacts, risks, and opportunities 5-8 √ 

ORGANIZATIONAL PROFILE 

2.1 Name of the organization 9 √ 

2.2 Primary brands, products and / or services 11 √ 

2.3 Operational structure of the organization 12-14 √ 

2.4 Location of organization's headquarters 9 √ 

2.5 Number of countries where the organization operates 9 √ 

2.6 Nature of ownership and legal form of the organization 9 √ 

2.7 Markets served by the organization 9,11 √ 

2.8 Scale of the reporting organization 9-10 √ 

2.9 Significant changes during the reporting period 9 √ 

2.10 Awards received in the reporting period 9 √ 

REPORT PROFILE 

3.1 Reporting period for information provided 2 √ 

3.2 Date of most recent previous report 2 √ 

3.3 Reporting cycle 3 √ 

3.4 Contact point for questions regarding the report or its content 3 √ 

3.5 Process for defining report content 2 √ 

3.6 Boundary of the report 3 √ 

3.7 State any specific limitations on the scope or boundary of the report 2 √ 

3.8 Basic for reporting in joint ventures, subsidiaries, leased facilities, 

outsourced operations and other entities 2 √ 

Data measurement techniques and the bases of calculations, 

including assumptions and techniques underlying estimation applied 

3.9 

to the compilation of the indicators and other information in the 

report. 2 √ 

3.10 Explanation of the effect of any re-statements of information 

provided in earlier reports, and the reasons for such re-statements 23 √ 

3.11 Significant changes from previous reporting periods 2 √ 

3.12 GRI Content Index 63-72 √ 

3.13 Policy and current practice with regard to seeking external assurance 3 √ 

63



for the report. 

GOVERNANCE, COMMITMENTS AND ENGAGEMENT 

Governance structure of the organization, including committees 

4.1 under the highest governance body responsible for specific tasks, 

such as setting strategy or organizational oversight. 15,19-21 √ 

4.2 

Indicate whether the Chair of the highest governance body is also an 

executive officer. 19 √ 

For organizations that have a unitary board structure, state the 

4.3 number and gender of members of the highest governance body that 

are independent and / or non-executive members. 19 √ 

4.4 

Mechanism for shareholders and employees to provide 

recommendations or direction to the highest body governance. 19 √ 

Linkage between compensation for members of the highest 

4.5 governance body, senior managers, and executives and the 

organization’s performance. 20 √ 

4.6 

Process in place for the highest governance body to ensure conflicts 

of interest are avoided. 19 √ 

Process for determining the composition, qualifications, and 

4.7 

expertise of the members of the highest governance body and its 

committees, including any consideration of gender and other 

indicators of diversity. 19 – 20 √ 

Internally developed statements of mission or values, code of 

4.8 conduct, and principles relevant to economic, environmental, and 

social performance and the status of their implementation. 19 – 21 √ 

Procedures of the highest governance body for overseeing the 

organization’s identification and management of economic, 

4.9 environmental, and social performance, including relevant risks and 

opportunities, and adherence or compliance with internationally 

agreed standards, codes of conduct, and principles. 20 √ 

Process of evaluating the highest governance body’s own 

4.10 performance, particularly with respect to economic, environmental, 

and social performance. 19 √ 

4.11 

Explanation of whether and how the precautionary approach or 

principle is addressed by the organization. 20 √ 

Externally developed economic, environmental, and social charters, 

4.12 principles, or other initiatives to which the organization subscribes 

or endorses. 20 √ 

4.13 

Membership in associations and / or national / international 

advocacy organizations. 22 √ 

4.14 List of stakeholder groups engaged by the organization. 22 √ 

4.15 

Basis for identification and selection of stakeholders with whom to 

engage. 23-24 √ 

64



4.16 

4.17 

EC1 

Approaches to stakeholder engagement, including frequency of 

engagement by type and by stakeholder group. 23-24 √ 

Key topics and concerns that have been raised through stakeholder 

engagement, and how the organization has responded to those key 

topics and concerns, including through its report. 23-24 √ 

MANAGEMENT APPROACH AND INDICATORS 

Economic Disclosure on Management Approach 25-26 

Economic Performance 

Direct economic value generated and distributed, including 

revenues, operating costs, employee compensation, donations and 

other community investment, retained earnings, and payments to 

capital providers and government. 

EC2 Financial implications and other risks and opportunities for the 

organization's activities due to climate change. 

√ 

EC3 Coverage of the organization's defined benefit plan obligations. √ 

EC4 Significant financial assistance received from government. √ 

Market Presence 

EC5 

EC6 

EC7 

EC8 

Range of ratio of standard entry level wage by gender compared to 

local minimum wage at significant locations of operation. 

Policy, practices and proportion of spending on locally-based 

suppliers at significant locations of operation. 

Procedures for local hiring and proportion of senior management 

hired from the local community at locations of significant operation. 27-28 √ 

Indirect Economic Impacts 

Development and impact of infrastructure investment and services 

provided primarily for public benefit through commercial, in-kind, 

or pro bono engagement. 

EC9 Understanding and describing significant indirect economic impacts, 

including the extent of impacts. 

√ 

Environmental Disclosure on Management Approach 30-31 

Materials 

EN1 Materials used by weight or volume. √ 

EN2 Percentage of materials used that are recycled input materials. √ 

Energy 

EN3 Direct energy consumption by primary energy source. 32-33 √ 

EN4 Indirect energy consumption by primary source. 34 √ 

EN5 Energy saved due to conservation and efficiency improvements. 35 √ 

√ 

√ 

√ 

√ 

65



EN6 

Initiatives to provide energy-efficient or renewable energy-based 

products and services, and reductions in energy requirements as a 

result of these initiatives. 

EN7 Initiatives to reduce indirect energy consumption and reductions 

achieved. 

√ 

Water 

EN8 Total water withdrawal by source. 35-36 √ 

EN9 Water sources significantly affected by withdrawal of water. √ 

EN10 Percentage and total volume of water recycled and reused. √ 

Biodiversity 

EN11 

Location and size of land owned, leased, managed in, or adjacent to, 

protected areas and areas of high biodiversity value outside 

protected areas. 

Description of significant impacts of activities, products, and 

EN12 services on biodiversity in protected areas and areas of high 

biodiversity value outside protected areas. 

√ 

EN13 Habitats protected or restored. √ 

EN14 

Strategies, current actions, and future plans for managing impacts on 

biodiversity. 

Number of IUCN Red List species and national conservation list 

EN15 species with habitats in areas affected by operations, by level of 

extinction risk. 

√ 

Emissions, Effluents and Waste 

EN16 Total direct and indirect greenhouse gas emissions by weight. 36-37 √ 

EN17 Other relevant indirect greenhouse gas emissions by weight. √ 

EN18 

Initiatives to reduce greenhouse gas emissions and reductions 

achieved. 

√ 

EN19 Emissions of ozone-depleting substances by weight. √ 

EN20 NO, SO, and other significant air emissions by type and weight. √ 

EN21 Total water discharged by quality and destination. 36 √ 

EN22 Total weight of waste by type and disposal method. 37-39 √ 

EN23 Total number and volume of significant spills. √ 

EN24 

Weight of transported, imported, exported, or treated waste deemed 

hazardous under the terms of the Basel Convention Annex I, II, III 

and VIII, and percentage of transported waste shipped 

internationally. 

√ 

√ 

√ 

√ 

66



EN25 

EN26 

EN27 

EN28 

EN29 

EN30 

LA1 

Identity, size, protected status, and biodiversity value of water 

bodies and related habitats significantly affected by the reporting 

organization's discharges of water and runoff. 

Products and Services 

Initiatives to mitigate environmental impacts of products and 

services, and extend of impact mitigation. 

Percentage of products sold and their packaging materials that are 

reclaimed by category. 

Compliance 

Monetary value of significant fines and total number of nonmonetary 

sanctions for non-compliance with environmental laws 

and regulations. 

Transport 

Significant environmental impacts of transporting products and 

other goods and materials used for the organization's operations, and 

transporting members of the workplace. 

Overall 

Total environmental protection expenditures and investments by 

type. 

Labour Practice Disclosure on Management Approach 41-42 

Employment 

Total workforce by employment type, employment contact and 

region, broken down by gender. 43 √ 

LA2 Total number and rate of new employee hires and employees 

turnover by age group, gender and region. 43-46 √ 

Benefits provided to full-time employees that are not provided to 

LA3 temporary or part-time employees, by significant location of 

operations. 

LA15 Return to work and retention rates after parental leave, by gender. √ 

Labour / Management Relations 

Percentage of employees covered by collective bargaining 

LA4 agreements. 47 √ 

LA5 

LA6 

Minimum notice period(s) regarding operation changes, including 

whether it is specified in collective agreements. 

Occupational Health and Safety 

Percentage of total workforce represented in formal joint 

management-worker health and safety committees that help monitor 

and advise on occupational health and safety programs. 

√ 

√ 

√ 

√ 

√ 

√ 

√ 

√ 

67



LA7 

LA8 

LA9 

LA10 

LA11 

LA12 

LA13 

LA14 

HR1 

HR2 

Rates of injury, occupational diseases, lost days and absenteeism, 

and number of work-related fatalities by region and by gender. 47-48 √ 

Education, training, counselling, prevention and risk-control 

programs in place to assist workforce members, their families, or 

community members regarding serious diseases. 

Health and safety topics covered in formal agreements with trade 

unions. 

Training and Education 

Average hours of training per year per employee by employee 

gender, and by employee category. 

Programs for skills management and lifelong learning that support 

the continued employability of employees and assist them in 

managing career endings. 49 √ 

Percentage of employees receiving regular performance and career 

development reviews, by gender. 

Diversity and Equal Opportunity 

Composition of governance bodies and breakdown of employees per 

employee category according to gender, age group, minority group 

membership and other indicators of diversity. 

Ratio of basic salary and remuneration of women to men by 

employee category, by significant locations of operation. 46 √ 

Human Rights Disclosure on Management Approach 50 

Investment and Procurement Practices 

Percentage and total number of significant investment agreements 

and contracts that include clauses incorporating human rights 

concerns, or that have undergone human right screening. 

Percentage of significant suppliers, contractors and other business 

partners that have undergone human rights screening, and actions 

taken. 

Total hours of employees training on policies and procedures 

HR3 concerning aspects of human rights that are relevant to operations, 

including the percentage of employees trained. 

√ 

Non-discrimination 

HR4 Total number of incidents of discrimination and actions taken. √ 

Freedom of Association and Collective Bargaining 

HR5 

Operations and significant suppliers identified in which the right to 

exercise freedom of association and collective bargaining may be 

violated or at significant risk and actions taken to support these 51 √ 

68 

√ 

√ 

√ 

√ 

√ 

√ 

√



rights. 

HR6 

HR7 

HR8 

HR9 

HR10 

HR11 

SO1 

SO9 

SO10 

SO2 

Child Labour 

Operations and significant suppliers identified as having significant 

risk for incidents of child labour and measures taken to contribute to 

the abolition of child labour. 52 √ 

Forced and Compulsory Labour 

Operations and significant suppliers identified as having significant 

risk for incidents of forced or compulsory labour and measures to 

contribute to the elimination of all forms of forced or compulsory 

labour. 53 √ 

Security Practices 

Percentage of security personnel trained in the organization's 

policies or procedures concerning aspects of human rights that are 

relevant to operations. 

Indigenous Rights 

Total number of incidents of violations involving rights of 

indigenous people and actions taken. 

Assessment 

Percentage and total number of operations that have been subject to 

human rights reviews and/or impact assessments. 

Remediation 

Number of grievances related to human rights filed, addressed and 

resolved through formal grievance mechanisms. 

Society Disclosure on Management Approach 54-55 

Community 

Nature, scope and effectiveness of any programs and practices that 

assess and manage the impacts of operations on communities, 

including entering, operating and exiting. 

Operations with significant potential or actual negative impacts on 

local communities. 

Prevention and mitigation measures implemented in operations with 

significant potential or actual negative impacts on local 

communities. 

Corruption 

Percentage and total number of business units analysed for risks 

related to corruption. 

√ 

√ 

√ 

√ 

√ 

√ 

√ 

√ 

69



SO3 Percentage of employees trained in organization's anti-corruption 

policies and procedures. 

√ 

SO4 Actions taken in response to incidents of corruption. √ 

Public Policy 

SO5 

SO6 

SO7 

SO8 

PR1 

PR2 

PR3 

PR4 

PR5 

PR6 

Public policy positions and participation in public policy 

development and lobbying. 

Total value of financial and in-kind contributions to political parties, 

politicians and related institutions by country. 

Anti-Competitive Behaviour 

Total number of legal actions for anti-competitive behaviour, antitrust 

and monopoly practices and their outcomes. 

Compliance 

Monetary value of significant fines and total number of nonmonetary 

sanctions for non-compliance with laws and regulations. 55 √ 

Product Responsibility Disclosure on Management Approach 56 

Customer Health and Safety 

Life cycle stages in which health and safety impacts of products and 

services are assessed for improvement and percentage of significant 

products and services categories subject to such procedures. 57-58 √ 

Total number of incidents of non-compliance with regulations and 

voluntary codes concerning health and safety impacts of products 

and services during their life cycle, by type of outcomes. 

Product and Service Labelling 

Type of product and service information required by procedures and 

percentage of significant products and services subject to such 

information requirements. 


voluntary codes concerning product and service information and 

labelling, type of outcomes. 

Practices related to customer satisfaction, including results of 

surveys measuring customer satisfaction. 59-62 √ 

Marketing Communications 

Programs for adherence to laws, standards and voluntary codes 

related to marketing communications, including advertising, 

promotion and sponsorship. 

√ 

√ 

√ 

√ 

√ 

√ 

√ 

70



PR7 

PR8 

PR9 


voluntary codes concerning marketing communications, including 

advertising, promotions and sponsorship, by type of outcomes. 

Customer Privacy 

Total number of substantiated complaints regarding breaches of 

customer privacy and losses of customer data. 

Compliance 

Monetary value of significant fines of non-compliance with laws 

and regulations concerning the provision and use of products and 

services. 62 √ 

√ 

√ 

71

KEENWAY INDUSTRIES SDN BHD - About PUMA

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