Chemical Company of Malaysia Berhad Annual Report 2019

Amongst the policies included in the Code of Conducts are Conflict of Interest, Anti-Bribery & Corruption, Gift and Entertainment, Competition Law, Securities & Insider Trading, Risk Management, Information Communication Technology, Intellectual Property and Innovation, Quality and Halal policies. The Board had during the year, approved the revised Gift, Entertainment & Hospitality Policy as well as the Whistleblowing Policy. The Code of Conduct also includes the Whistle Blowing Policy, which aims to encourage the employees to feel confident in raising serious concerns and to provide a formal channel for them to raise these concerns and receive feedback on any actions taken. The Policy also provides assurance that the whistle blower will be protected from possible reprisals or victimisation if they have a reasonable belief that they have made any disclosure in good faith. A whistleblowing hotline has been established to further facilitate the employees and external parties to raise their concerns on possible misconduct or violation of the rules and regulations. Corporate Integrity Pledge and Integrity Pact In May 2014, the Company signed the Corporate Integrity Pledge with the Malaysian Anti-Corruption Commission (MACC) to mark its commitment to enhance corporate governance, accountability and transparency in all aspects of the business operations in the CCM Group. By signing the pledge, CCM is making a unilateral declaration that it will not commit corrupt acts, will work towards creating a business environment that is free from corruption and will uphold the Anti-Corruption Principles for Corporations in Malaysia in the conduct of its business and in its interactions with its business partners and the Government. In 2015, Integrity Pacts were implemented and suppliers of the Group were encouraged to sign up the Integrity Pact to state their commitment in supporting the Group’s initiatives in combating corruption. Human Resource Management Key Performance Indicators are used to measure the achievement of staff in achieving the business and operational objectives. To enhance the competencies of the Group’s talent pool, staff are kept updated with required training programmes ensuring their capabilities to carry out duties and responsibilities towards achieving the Group’s objectives. The Group has in place guidelines for handling misconduct and disciplinary matters which include breach of integrity and other misconduct which do not comply with the terms and conditions of service whether expressed or implied to ensure unsatisfactory performance and/or workplace conflicts are properly dealt with. Group Risk Management The Group Risk Management Department reviews the risk analysis including those relating to strategic business objectives, operational initiatives and emerging issues in the Group. It also conducts periodic follow- up in the updating of risk profiles and the implementation of risk treatment measures by management. The Group Risk Management Department also provides guidance to the Group’s operations in identifying and assessing risks, developing relevant and effective mitigation strategies to manage the risks. | Statement on Risk Management Committee | and Internal Control 106 CHEMICAL COMPANY OF MALAYSIA BERHAD