The Group’s focus towards higher performance in producing sustainable palm oil is intertwined with its commitment and holistic approach in managing social and environmental responsibility. In this respect, the Group continued to initiate and sustain its activities and new initiatives relating to corporate social responsibility (CSR) in line with its corporate theme of Nurturing Sustainability. The CSR framework of the Group involves integrating open and transparent business practices into the operations based on ethical values and in appreciation of the environment, surrounding community and employees, leading towards delivering sustainable shared value for all the relevant stakeholders.
The Group’s sustainability framework covers four (4) DNAs
of sustainability namely Productivity and Innovations,
Care for Environment, Investor in People and Returning
to the Community. It is in line with Bursa Malaysia’s
CSR framework centred on Environment, Community,
Workplace and Marketplace.
ENVIRONMENT
Certification
In the reporting year, the Group successfully certified the
remaining of its Sabah operating units under the Malaysian
Palm Oil Board’s (“MPOB”) Code of Practices certification
scheme. The Group is the first organisation to have
achieved this. The certification covered the Group’s entire
supply chain comprising of oil palm seeds production unit,
nursery, all estates and mills as well as the kernel crushing
plant. The Group remained as an ordinary member of the
Roundtable for Sustainable Palm Oil (“RSPO”) while its
research arm, the Quality, Training and Research Centre is an
affiliate member. Its kernel crushing plant is also certified
under Hazard Analysis Critical Control Point (“HACCP”) for
product quality and food safety.
Green Engagements
The Group continued its active engagement with relevant
stakeholders on sustainability of its overall business. Site
visits and dialogues revolved mainly around the subject
“Oil Palm and the Environment”. In the reporting year,
three (3) stakeholders green engagements were held. The
participating stakeholders included foreign visitors, local
journalists, market analysts and academicians.
The Group’s icon for green projects, the “Hundred-Acre
Wood” located in Sugut remained its Centre of Excellence
for eco-conservation, education and recreation. The
on-site training facilities enable it to be used as an effective
training centre. In the reporting year, additional plant
species, enhancement and upkeep works were carried out.
COMMUNITY
The Group continued to share its prosperity with targeted
groups in the surrounding community. Key initiatives
involved ongoing activities relating to sports excellence
and health awareness.
Youth Development through Sports
The sports excellence initiative through the rugby project
remains in the forefront as the Group’s CSR platform
for sustainable sports development in Sabah. In the
reporting year, the Group continued its collaboration
with the Sandakan Rugby Club and Sabah Rugby Union to
support the Sabah School Sports Council in promoting and
organising numerous school rugby tournaments such as
the MSSS and MSSM for both boys and girls. The annual tripartite IJMP/MSSS/SRU 10s and 7s
Age-Group rugby tournament featured prominently in
the Sabah junior rugby calendar. The tournament drew
overwhelming participation from both urban and rural
schools throughout Sabah. The 10-a-side rugby Year 2011
edition attracted a record participation from 45 schools
in Sabah.
The Group continued to sponsor school boys as full time ‘rugby students’ at the SMK Sandakan, the Centre for Sabah Rugby Excellence. The students’ daily schedule is carefully planned between sharpening their rugby skills on the pitch and raising their academic achievements in the classroom. In addition to providing the students with all their daily school necessities and fees, the full sponsorship includes additional tuition classes, nutritional supplements and playing gears. During the year there were 40 children aged between thirteen and sixteen were under this scheme.
Breast Health Awareness Programme
Ongoing scientific and clinical research by MPOB and
others researchers have demonstrated the beneficial
role of vitamins, namely tocotrienols from palm oil in
treating breast cancer patients. In support of the above
findings and also to promote the other goodness of palm
oil in health and nutrition, the Group continued to play its
role in reaching out to the public in Sabah through itsalrite
public health education programme focused on breast
health awareness.
The collaboration with the Sandakan Breast Health
Awareness Committee and the Duchess of Kent Hospital in
organising various public talks and awareness campaigns
continued during the year. The programme was extended
to rural schools during the year. In order to encourage
effective and wider awareness amongst rural women where
literacy levels are very low, it is targeted that the younger
generation should be the focus audience. SMK Beluran
was chosen as the first school to kick-start this outreach
programme. The brief on breast cancer and demonstration
on breast self-examination were very well received by the
participants.
Another key event from the above collaboration was
the Breast Health Awareness public forum in Kota
Kinabalu jointly organised with Kinabalu Pink Ribbon,
a non-governmental organisation. This forum attracted
over 300 participants. The Group donated teaching
materials and models to Kinabalu Pink Ribbon to enable
it to extend its coverage to a larger targeted group.
In addition, the Group also contributed funds for
distribution to breast cancer patients in need during
Mothers’ Day celebration in Sandakan.
The
Pink October Breast Health Awareness Campaign
was also organised in the operating units of the Group.
Throughout the month of October 2010, the campaign
was pursued with slogan competition, distribution of
newsletters and demonstration on breast self-examination
by the in-house nurses.
Plantation Attachment Training
The Group continued to support local tertiary centres
in extending learning opportunities to undergraduates
through attachment and placement trainings. In the
reporting year, undergraduate internship was extended
to 43 participants. In addition, the Group recruited
10 local cadets and 8 field conductors to undergo one year
intensive plantation training course, as part of its ongoing
commitment in the development of local talents.
WORKPLACE: PEOPLE FIRST
Housing and Food Initiatives
The Group strives to provide long term employment
with decent working and living environment. In the
operating units, the Group continued improving the living
environment of its people through phased upgrading and
new houses along with the ancillary buildings such as
clinics, creches and educational centres.
All employees are encouraged to plant their own vegetables
as part of the Group’s food initiative project. Vegetable
seeds and fertilisers were provided to the employees and
the harvests were shared. Other agro-farming products
such as planting tropical fruits, poultry and rearing fish
were also carried out in the various operating units.
Cooking oil and rice were also distributed to the workers
during the Hari Raya festive season
Strengthening Engagement with Workers
The Group constantly reviews and improves grievance procedure to ensure that the voices of its people are
appropriately channeled to management and are
responded accordingly. Joint consultative committees (JCC)
have been established in all operating units. Through JCC
meetings, a systematic and effective engagement with
the workers has been formulated. The committees are
well represented by all levels of employees in the operating
units, including workers representatives.
Human Capital Development
The Group envisages developing and training local talents
towards embracing green-collared professionalism.
In the Sabah operation, structured training and
re-training programmes involving staff and executive
were implemented to enhance the work-based knowledge
and management skills. Self improvement projects have
been initiated at the head office level where executives get
involved in public speaking and presentation skills through
“Tuesday Tea” talks. In addition, executives were also
exposed to project management skills through planning
and organising various job enhancement based projects.
In the Indonesian operation, local talents were sent
to Sabah for intensive executive cadetship training
programme. The one-year syllabus covers training on the
entire oil palm supply chain management, including soft
skills and hands-on knowledge. In the reporting year, the
third batch of cadets involving 19 trainees graduated from
this programme. They are now posted to the Indonesia
operations to start their plantation career. To-date, 43
cadets have graduated from this programme since it was
initiated in year 2008.
Promotion of Sports and Cultural Heritage
The Group’s employees in Sabah are from different ethnic groups and they embraced different customs and traditions. The Group promotes 1-IJM through ethnic cultural excellence by encouraging employees to pursue cultural and traditional musical performances. The Rakanan Jaya South Estate has become the Centre of Excellence for the promotion of cultural heritage within the Group. A traditional bamboo cultural centre was purpose-built and furbished with traditional musical instruments and local costumes. Traditional dances are choreographed and trained by our talented employees and performed at various in-house events.
Sports amongst all employees are promoted to enhance solidarity and team work. Various friendly matches involving different sports were organised in the operating units. The 15th edition IJM-Adidas football tournament was organised in Desa Talisai sport complex bringing together the plantation fraternity and government bodies.
Children Educational Support
The Group continued its collaboration with the social NGO, Borneo Child Aid in the provision of basic education for the children in plantation. Two new purpose-built IJMP-Humana schools located one each in Excellent Challenger II Estate and Sungai Sabang Estate in Sugut were under construction at the end of the reporting year. The schools will cater for more than 350 children in the region. In addition, the Group also operates 11 daycare centres and 10 kindergartens with considerable investment in the construction and maintenance of buildings, teaching materials and remuneration of teachers. For the local employees’ children, the Group’s school buses were used to send the children to and for nearest local schools.
Marketplace Engaging Stakeholders
The Group has implemented various policies, procedures
and practices on business ethics, good corporate governance
and stakeholder engagements in order to ensure market
confidence in its conduct of business. Flow of information
can be found in the Group’s
website, information portal
and annual reports.
The Group believes that effective dialogues can enhance relationship with stakeholders. In the reporting year, various engagement with stakeholders were organised involving students, fund managers, market analysts, governmental bodies, journalists, NGOs, and the industry fraternity.
Details pertaining to Marketplace are covered in the Statement on Corporate Governance in pages 37 to 43 and Statement on Internal Control in pages 46 to 47.