Corporate Social Responsibility - Scomi Energy & Logistics ...
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Corporate Social Responsibility - Scomi Energy & Logistics ...
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MUTUALLY<br />
ADVANTAGEOUS<br />
24 SCOMI ENGINEERING BHD ANNUAL REPORT 2010
CORPORATE SOCIAL RESPONSIBILITY<br />
SCOMI ENGINEERING BHD ANNUAL REPORT 2010<br />
25
CORPORATE SOCIAL RESPONSIBILITY<br />
At <strong>Scomi</strong>, we are<br />
fully cognisant of our<br />
responsibility not only to<br />
optimise shareholder value,<br />
but also to contribute<br />
positively towards the<br />
advancement of the<br />
communities we operate<br />
within. We firmly believe<br />
that the Group does not<br />
operate in isolation and<br />
as such we are steadfast<br />
in our stand that our<br />
business objectives and<br />
decisions should take<br />
into consideration the<br />
sustainability of our<br />
actions in order for us to<br />
attain sustainable growth.<br />
Not only do we wish to<br />
be an organisation of<br />
international repute with<br />
the best in products,<br />
services and processes,<br />
we also wish to be an<br />
organisation that cares.<br />
On this premise, we have made corporate social<br />
responsibility the cornerstone of our efforts.<br />
An integral part of our Formula 2011 initiative,<br />
our <strong>Corporate</strong> <strong>Social</strong> <strong>Responsibility</strong> (“CSR”)<br />
efforts allow us to positively impact our human<br />
capital, the community, the environment and<br />
our stakeholders.<br />
The Marketplace<br />
Shareholder Engagement<br />
<strong>Scomi</strong> is aware of the value of maintaining<br />
continuous communication with our investors<br />
and key stakeholders in order to ensure a<br />
mutual understanding of objectives. As such,<br />
the Group recognises the benefit of utilising<br />
diverse modes of communication especially<br />
electronic communication tools in order to<br />
keep them updated on the Group’s latest<br />
developments in a timely manner.<br />
Our dedicated Investor Relations team<br />
proactively communicates with our<br />
shareholders and the investing community<br />
with continuous updates on the company<br />
through “Letter to Stakeholders”, regular<br />
meetings, briefings, road shows (both locally<br />
and internationally) as well as conferences.<br />
Nevertheless, we are always mindful of the<br />
fact that we need to ensure any company<br />
announcements that have a material effect is<br />
made to Bursa Malaysia beforehand.<br />
The Workplace<br />
People are indeed our valuable asset and in<br />
acknowledging that people make the ultimate<br />
difference in the success of our business,<br />
we established an integrated human capital<br />
strategy to nurture our employees.<br />
26 SCOMI ENGINEERING BHD ANNUAL REPORT 2010
Through this initiative, we are focused on<br />
developing a performance-driven, engaged<br />
and motivated workforce who epitomise the<br />
values of the <strong>Scomi</strong> brand.<br />
Whether they are stationed in an office or are<br />
out in the field, we seek to provide our people<br />
with the essential tools as well as conducive<br />
working environments to maximise their<br />
potential.<br />
Talent Development<br />
We realise that highly trained employees are<br />
the backbone of our operations. Moreover, we<br />
practice a culture of transformation in order<br />
to remain relevant in the sectors we operate<br />
within and this would not be possible without<br />
our staff members on board.<br />
On that note, during the year under review,<br />
we renewed our commitment to the<br />
continuous growth of our staff by providing<br />
them with training and career enhancement<br />
opportunities that would supply them with<br />
the edge needed to thrive in our competitive<br />
business environment.<br />
Our dedicated Group Learning and<br />
Development (“GLaD”) team oversees our<br />
talent development initiatives which are<br />
carried out across the Group. This includes inhouse<br />
training conducted in 2010 by GLaD in<br />
Malaysia, Dubai, India, Indonesia, Thailand, US,<br />
Australia, UK and Singapore. Topics covered<br />
include Induction, Financial Skills, Performance<br />
Management Development & Coaching Skills,<br />
Competency Based Assessment, Creativity &<br />
Innovation, Teamwork, Customer Service, Time<br />
Management & Goal Setting, Presentation<br />
Skills and Balanced Scorecard.<br />
Our initiatives for the year included the<br />
following:<br />
• The Management Trainee Programme<br />
is a fresh graduate programme where<br />
management trainees are exposed to all<br />
facets of <strong>Scomi</strong>’s business in preparation for<br />
senior executive positions. In the 18-month<br />
programme, the trainees underwent<br />
a specific and intensive development<br />
programme where they were attached to<br />
different departments to further enhance<br />
their skills and provide them with a broad<br />
range of knowhow, which will be invaluable<br />
as they progress in their careers.<br />
• The Executive Management Programme<br />
aims to provide middle level management<br />
with an opportunity to enhance leadership<br />
skills as well as an occasion to network<br />
with their global counterparts. This 5-day<br />
programme has been part of our talent<br />
development initiative since 2007 and<br />
during the year under review, we organised<br />
two Executive Management Programmes,<br />
one in Kuala Lumpur in May with 24<br />
participants as well as one in Dubai in<br />
November with 20 participants.<br />
• The Management Leadership<br />
Development Programme is organised for<br />
senior management and aims to develop<br />
future top leadership for the organisation.<br />
In this programme, the managers learnt<br />
diverse management knowledge,<br />
leadership styles and necessary skills to<br />
handle the challenges of a global business<br />
environment today.<br />
SCOMI ENGINEERING BHD ANNUAL REPORT 2010<br />
27
CORPORATE SOCIAL RESPONSIBILITY cont’d<br />
• The Work @ <strong>Scomi</strong> & Induction<br />
Programme is a core mandatory training<br />
programme for all new employees,<br />
designed to introduce <strong>Scomi</strong>, its culture<br />
and brand.<br />
• Mentoring Programme is a programme<br />
targeted to provide select managers with<br />
one on one mentoring in order to help<br />
them deal with the challenges and issues<br />
they face as they move up the leadership<br />
ladder. The mentors serve as a sounding<br />
board for the managers and provide them<br />
with feedback. This programme also serves<br />
as a mechanism for the development of<br />
employees to fill key positions in future, as<br />
part of <strong>Scomi</strong>’s succession plan.<br />
• Project Grooming Amazing Engineers<br />
(“GAME”) by <strong>Scomi</strong> Engineering aims<br />
to develop young engineers to become<br />
well rounded rail engineers, as part of<br />
our talent pipeline initiative. In this<br />
12-month programme, the engineers<br />
were given exposure to various aspects of<br />
rail engineering, manufacturing, product<br />
assurance and project delivery areas, as<br />
well as development of soft skills, in line<br />
with the <strong>Scomi</strong> brand and their future<br />
roles.<br />
Employee Communication<br />
We appreciate that it is important to constantly<br />
keep the employees informed of important<br />
updates and likewise for the management to<br />
constantly get feedback from employees. This<br />
is achieved via the following initiatives:<br />
strategic information, business direction,<br />
performance status and updates; accessible<br />
to <strong>Scomi</strong> employees across the globe,<br />
conducted via teleconference or webcast<br />
facilities. In addition, Town Hall sessions<br />
were also carried out throughout the<br />
group, where small groups were selected<br />
of 10 to 15 employees of the same level<br />
to have private sessions with the Group<br />
Chief Executive Officer or the Presidents<br />
of Business Units to discuss any issues that<br />
they might have at the workplace.<br />
• Global Executive Meeting is an annual<br />
event for senior management from global<br />
operations, aimed at re-examining and<br />
realigning strategies as the Group moves<br />
forward, gaining a better understanding<br />
of each business stream, improving on<br />
communication as well as strategising on<br />
marketing plans in order to strengthen<br />
market share globally. Leaders attending<br />
this meeting will subsequently cascade<br />
the business direction, information and<br />
key messages to their respective staff<br />
throughout the organisation.<br />
Facilities for Employees<br />
While we believe that the professional<br />
development of our people is vital to our<br />
growth, we place equal importance to<br />
enhancing their quality of life at work. During<br />
the year under review, we have taken various<br />
steps in the interest of the welfare of our<br />
employees at the work place.<br />
• Open Communication Sessions<br />
that promote sharing of knowledge,<br />
28 SCOMI ENGINEERING BHD ANNUAL REPORT 2010
• Relocation of Headquarters (“HQ”)<br />
to 1 First Avenue, Bandar Utama –<br />
1 First Avenue, a certified ‘Green’ Building<br />
provides our employees with better<br />
facilities and care. The office is equipped<br />
with a ‘sick bay’ and nursing rooms; and<br />
‘surau’ for both men and women on every<br />
floor. The neighbourhood also provides<br />
good public amenities - lots of eateries<br />
in the nearby mall and a bus hub at the<br />
Central Park Avenue.<br />
• North KL Facility – The Group provides<br />
residential quarters for the workers<br />
stationed at this facility. The new monorail<br />
factory is also equipped with shower<br />
facilities and ample locker space for<br />
employees, along with a recreational room<br />
for leisure activities.<br />
• <strong>Scomi</strong> Sports Club (“SSC”) was established<br />
to create an informal platform for employees<br />
to network and build relationship with other<br />
colleagues. Managed by employees, SSC<br />
gives employees free reign in organising<br />
sporting activities such as bowling, futsal,<br />
darts, netball, and volleyball throughout<br />
the year as well as events such as the<br />
‘family days’. The employees are grouped<br />
into different teams to encourage friendly<br />
competition and instil a sense of teamwork<br />
and togetherness.<br />
Safety & Health Initiatives<br />
It is our responsibility to provide a safe and<br />
healthy workplace for our people and to<br />
give proper regard to the conservation and<br />
protection of the environment throughout our<br />
business operations and activities.<br />
The Group places great emphasis on Health,<br />
Safety & Environment (“HSE”) practices<br />
and procedures as they are implemented<br />
throughout its operations. Realising that safe<br />
workplace practices and a high regard for the<br />
environment are integral to our continued<br />
success, we take every effort to ensure excellent<br />
HSE practices are inculcated among our<br />
employees and that the safety of our customers<br />
and the communities we operate within is<br />
continuously upheld. In order to encourage<br />
employees to adopt the right attitude towards<br />
health and safety, the HSE team in every<br />
location organises various safety awareness<br />
events. These events saw us executing various<br />
HSE-related engagement and teamwork<br />
activities which included general safety talks,<br />
toolbox talks specific to operations as well<br />
as fire safety briefings and demonstrations.<br />
We also have Safety Observation Cards to<br />
encourage people to report a safety or health<br />
hazard when sighted or occurring. Hence, we<br />
prioritise maintaining HSE standards by always<br />
benchmarking ourselves against industry<br />
standards.<br />
The Group’s dedicated HSE Committee<br />
which comprises of representatives from<br />
both employees and senior management is<br />
committed to instituting health and safety<br />
initiatives. At <strong>Scomi</strong>’s Global HQ, among the<br />
initiatives that have been established is the<br />
formation of the Emergency Response & First<br />
Aider Teams and a fully equipped First Aid<br />
Room. At <strong>Scomi</strong> Engineering, we have also<br />
instituted a Personal Protective Equipment<br />
(“PPE”) policy with regards to enforcement,<br />
issuance and replacement of PPE.<br />
SCOMI ENGINEERING BHD ANNUAL REPORT 2010<br />
29
CORPORATE SOCIAL RESPONSIBILITY cont’d<br />
During the year under review, <strong>Scomi</strong> Engineering<br />
was also awarded the Environmental<br />
Management System ISO 14001:2004 and<br />
Occupational Health and Safety Management<br />
System OHSAS 18001:2007 Certificates.<br />
The Environment<br />
Rapid economic growth and industrialisation<br />
has caused serious environmental challenges<br />
throughout the world. There is increased<br />
emphasis on the importance of preventive<br />
measures to mitigate and minimise negative<br />
environmental effects at source, to increase<br />
conservation efforts and ensure sustainable<br />
development of both exhaustible as well as<br />
renewable energy resources.<br />
At <strong>Scomi</strong>, our commitment to the environment<br />
is exemplified through our investment in<br />
sustainable business practices and processes.<br />
We have made it a point to leverage on<br />
technology and intellectual capital to create<br />
best-in-class clean, green solutions aimed<br />
at obtaining the highest level of customer<br />
satisfaction while at the same time contributing<br />
towards a sustainable environment.<br />
Environmental Initiatives<br />
Project “EnviroUs” was launched in January<br />
2010 with a tagline ‘If There’s No Earth, There’s<br />
No Us’. This project, which focused on our<br />
products and processes, was key to drive all the<br />
green initiatives by the organisation.<br />
During the year under review, various initiatives<br />
were implemented, among them were<br />
environmental E-bulletins, bi-weekly E-tips,<br />
Green Luncheon Talk on Sustainable Living,<br />
which highlighted and educated <strong>Scomi</strong> staff<br />
on current environmental issues, and stressed<br />
on the importance of reducing, reusing, and<br />
recycling daily wastes. As a testament to our<br />
commitment to the environment, we managed<br />
to achieve our target of a 20% reduction in<br />
printing costs during the year under review.<br />
‘Green’ Facility – October 2010 marked the<br />
official relocation of our Global Headquarters<br />
to 1 First Avenue in Bandar Utama, Petaling<br />
Jaya, Selangor which has a Green Building<br />
Certification. <strong>Energy</strong> conservation, highly<br />
efficient systems to optimise energy usage,<br />
environmentally safe coatings and paints are<br />
just some of the features in this new ‘green’<br />
building.<br />
<strong>Energy</strong> Efficient Products: Utilising green<br />
technology aided us in efficient energy<br />
consumption and reducing the negative impact<br />
on the environment. SUTRA or <strong>Scomi</strong> Urban<br />
Transit Rail Application – offers, amongst many<br />
features, an improved direct-drive propulsion<br />
system and lower vehicle weight translating<br />
into an energy-efficient monorail system.<br />
Furthermore, the monorail also promotes<br />
the use of public transportation which would<br />
reduce the use of private vehicles, thus reducing<br />
carbon emission levels to the environment.<br />
<strong>Scomi</strong> Engineering also garnered the Malaysian<br />
Trade & Industry Recognition award as well as<br />
the coveted Product Excellence Category of<br />
the Industry Excellence Award organised by<br />
the Ministry of International Trade & Industry.<br />
30 SCOMI ENGINEERING BHD ANNUAL REPORT 2010
The Community<br />
With the understanding that effective<br />
community relations are essential to our<br />
success and necessary for our holistic growth,<br />
in each of <strong>Scomi</strong> operations across 29<br />
countries, we ensure our CSR programmes<br />
make a difference to the community. Each<br />
year, we contribute to various programmes by<br />
raising standards of living and enriching the<br />
quality of life, or through developing people<br />
and organisations so that they in turn become<br />
effective contributors to society.<br />
Part of this effort was executed through<br />
employees participation in various communitybased<br />
activities under our very own Project<br />
Pyramid which was carried out with the theme<br />
“Bridging Us”. Launched in 2007, Project<br />
Pyramid was designed to foster a familyfriendly<br />
culture and to create a mentoring;<br />
and networking platform amongst employees.<br />
This was done through the active participation<br />
and contribution to the activities conducted.<br />
Project Pyramid is about giving back to the<br />
communities or the environment where <strong>Scomi</strong><br />
operates in be it locally or around the world.<br />
Over and above this, <strong>Scomi</strong> has an objective to<br />
develop an internal environment and inculcate<br />
a culture that is conducive for individuals from<br />
all walks of life, race & religion to perform<br />
effectively together.<br />
Project Pyramid Season 3 was officially launched<br />
in September 2010 and was a continuation of<br />
our efforts to encourage our staff members<br />
to be passionate about giving back to their<br />
community. This time, all employees in Malaysia<br />
were divided into 4 teams to execute their CSR<br />
initiatives. Each team was given “Seed” fund<br />
that is used to raise more funds so that greater<br />
benefits can be achieved.<br />
Project Pyramid Season 3 kicked off with the<br />
participation by all 4 houses in the Terry Fox<br />
Charity Run, an annual international event in<br />
aid of cancer research. Funds were channelled<br />
to the Cancer Research Initiatives Foundation<br />
(“CARIF”). From thereon, each house continues<br />
with their initiatives which include the Coastal<br />
Clean Up project, Save the Marine and Tiger<br />
Awareness project, Spa & Foot Massage for the<br />
Staff; and Bringing Joy to the Children of the<br />
Paediatric Oncology Wards of the University<br />
Kebangsaan Malaysia Medical Centre<br />
(“UKMMC”). The Project Pyramid Season 3<br />
continued with many more CSR activities by all<br />
4 houses and the closure was celebrated with<br />
an exciting “Debat Perdana” or Premier Debate<br />
by representatives from all houses.<br />
Philanthropy and Volunteerism<br />
Through Yayasan <strong>Scomi</strong>, we provided<br />
educational assistance and scholarships<br />
for needy students as well as rural school<br />
programmes, motivational programmes and<br />
provision of basic food for orphans, the poor,<br />
the underprivileged, the disabled and the<br />
senior citizen communities.<br />
The Group also joined in the effort to spread<br />
awareness on breast cancer by sponsoring<br />
buses to mobilise the crew of the Breast Cancer<br />
Awareness Campaign 2009-2010. Organised by<br />
the PRIDE foundation (“Pink Ribbon Deeds”) in<br />
collaboration with the National Population and<br />
Family Development Board (LPPKN) under the<br />
Ministry of Women, Family, and Community<br />
Development, the campaign was carried out in<br />
seven states throughout Malaysia from October<br />
2009 to March 2010.<br />
SCOMI ENGINEERING BHD ANNUAL REPORT 2010<br />
31