What Are the Areas of Egsee Covered or Not Covered in the Sustainability Report?

What are the areas of EGSEE covered or not covered in the sustainability report?

The disturbance of the global financial crisis in 2007 to 2009 has made brandish of financial scandals in the early 2000s. The factors that caused global financial crisis happened were inadequate of risk assessment and management, ineffective corporate governance and strong focus on achieving short-term performance. Then, appear regulatory responses on the considerable interest in business sustainability, corporate governance, ethical and corporate accountability. Besides that, businesses and professional organizations worldwide have also take action by developing a business sustainability framework consisting of five overriding dimensions of economic, governance, social, ethical and environmental (EGSEE) performance. This sustainability able to solve all aspects of business and markets from strategic decisions to operations, performance and disclosures of sustainability information to investors and financial markets that could prevent future economic, social, ethical, governance and environmental crises.

As a team of consultants, our group has been assigned by our employer, Hock Hua Consulting Limited Liable Partnership to do a critical analysis and review of a Malaysian public-listed company of our choice in term of the adequacy and completeness of its sustainability reporting. Our group going to assess the sustainability reports in terms of the five dimensions of EGSEE, namely economic, governance, social, ethical and environmental performance. Then, we would like to assess Maxis sustainability reports in 2014 in order to analyze the areas of EGSEE. According to the analysis that done by our group, we find that Maxis works to become an organization that is admired for excellence in term of focusing on four core areas. Delivering unmatched customer experience, developing best network, creating a place for high-performers and making a fun place to work for Maxis’ employees are the four core areas that included for Maxis transformation journey. According to Morten Lundal, the Chief Executive Officer of Maxis; they entered the year 2014 with a clear goal to revitalize and refocus Maxis into delivering the best in mobile internet access and unmatched customer experience as year 2014 was a transformational year for Maxis. Maxis have outlines sustainability principles, governance and standards that add force to their operations. Maxis also included economic performance, environmental and social considerations when taking business decisions. Besides, in the Maxis sustainability report also covered for the ethical dimensions.

First, for the economic dimension Maxis consist of conventional financial information and non-financial information inside sustainability report together highlights their clear ambition to ensure Maxis delivers the best internet experience by giving customers with worry-free internet access and opportunities to use data in the way they want. Besides, Maxis has provided strategic information on their goals and objectives to become an organization that is admired for excellence. Then, information on corporate structure also provided such as Maxis Berhad get hold of 100% in Maxis Broadband Sdn Bhd, Maxis International Sdn Bhd, Maxis Mobile Services Sdn Bhd and 75% in Wireless Technologies Sdn Bhd along with the ownerships of the 10 largest shareholders of Maxis based on the Record of Depositors as at 31 December 2014. Followed by, disclosing financial statements in term of income statement and balance sheet together with the financial ratios such as Return on Average Equity, Return on Average Assets and Gearing ratio for the year 2012, 2013 and 2014. Besides that, corporate responsibility information on environmental and social information has given by Maxis as well as the value creating information for customers, employees, suppliers and innovative brands also found in Maxis sustainability report. This because from the report has stated that Maxis engaging in quality and coverage for customers, engaged in training and development for employees, become proactive partnership for suppliers then creating best network initiatives for innovative brands.

For the governance dimension Maxis has provided Chairman and CEO messages. Then, Global Reporting Initiative (GRI) was used as outline for economic, social and others. Maxis believed that Corporate Responsibility is an integral part of their business strategy and framework. This can be proof that in November 2011, the Board approved Maxis’ Corporate Responsibility framework to delineate the Company’s CR mission, philosophy, strategic pillars and governance structure since the framework able to provide clear guidelines for the implementation of CR program that are reliable with the company’s strategic goals and facilitates structured approach in delivering company’s efforts in marketplace, workplace, environment and community. Besides, CR team work with CR Working Committee which represented by individuals that called CR Ambassadors from various divisions in Maxis and responsible on coordinated reporting of CR initiatives. Apart of that, Maxis also provided management function under corporate governance which was risk management. This risk management framework and procedures for internal control established by Group in order embedded into culture, processes and structures of the Group that subject to regular review by the Board. Then, the Board has oversight over critical area through Audit Committee because Audit Committee supported by Internal Audit department which supplying an independent assessment of the effectiveness of the Maxis Enterprise Risk Management (ERM) framework and will report to the Board on yearly basis. Since ERM work closely with Group’s operational managers, it can respond effectively to the constantly changing business environment and strengthen risk management thus able to enhance and protect shareholder value. By the way, under corporate governance also have compliance function which was the Code of Business Practice that applied to vendors, contractors and temporary employees along with asked Directors, Management and employees to review and sign the Code of Business Practice annually in order to ensure awareness and compliance. Whistle-blowing policy also put in place to ensure any discrepancies do not go unreported.

Then, for the social dimension Maxis believing that Corporate Responsibility (CR) considered whole part of their business strategy and framework because implementing CR policies and program involved