Frontken Berhad Annual Report 2020

Annual Report 2020 27 FRONTKEN CORPORATION BERHAD 200401012517 (651020-T) Responsible Supply Chain The Group’s business operation requires raw materials, chemicals, consumables, equipment and supplier services. Our operation will be disrupted if our suppliers cannot deliver their products or perform their services. Therefore, we are committed to working proactively together with suppliers to mitigate supply chain risk, optimised delivery, cost and time, and improve suppliers’ businesses to grow sustainably. The Group is committed to achieve Sustainable Supply Chain and we take responsibility to ensure that our business operations including our key suppliers adopt the best practice of procurement and management of supplies, insurance, and other aspects of operations related to our business sustainability. We implemented the Sustainable Procurement and Supplier Management Policy to ensure excellence in procurement with transparency, fairness, and alignment with best practices that represent the highest standards of quality, integrity and excellence. We respect the unique customs and cultures in communities where we operate. Our Sustainable Procurement and Supplier Management Policy are aligned with the RBA Code of Conduct framework. The Group understands the importance of environmental risks in our value chain and we are committed to collaborating with environmentally responsible suppliers. We also recognise the importance of sustainable sourcing and procurement and is committed to responsible supply chain management practices, and developing a strong sustainable relationship with our suppliers; including labour practice, human rights, supplier diversity, environmental impact, data security and material sourcing. We actively collaborate with our suppliers to further our sustainable development efforts. We work with our suppliers to achieve a sustainable business ecosystem based on a philosophy of co-success. We are committed to grow together with our suppliers by carefully managing the risks and opportunities of our supply chain and considering sustainability at every stage of selecting, operating, and evaluating suppliers. We adopt a risk-based supply chain management practice to ensure that our supply chain is sustainable and resilient. We believe our competitive advantage can be improved by our supplier capabilities. We help all suppliers to abide by our Supplier Code of Conduct and related guidelines, and to manage their work environment risks related to human rights, Environment, Health and Safety and ethics in compliance with local regulations and global standards. Our supply chain is committed to our Supplier Code of Conduct and comply with applicable laws and regulations. The Supplier Code of Conduct is aligned with the UN Global Compact Framework and RBA; and it is to mitigate any social, economic and environmental risks by setting the standards for our suppliers to conduct their business. We seek to develop relationships with suppliers that share similar values and conduct business in an ethical manner. We are pleased to work with suppliers to ensure an understanding of and compliance with the requirements set forth in our Supplier Supply Chain Sustainability Guidelines: (a) Compliance with the laws and regulations of all the countries where we operate including all the laws relating to the business related and non-business related transactions. (b) Support fair employment practices consistent with our commitment to human rights in our workplace. Establish a strong and direct relationship with our employees through open and honest communications with fairness, dignity, and respect. (c) Respect human rights without discrimination, harassment of any kind, abuse or other inhumane treatment including no child labour or forced labour; proper management of employees’ work hours, breaks and holidays and prohibition of excessive overtime work; payment of the legally mandated minimum wage and to pay at least a living wage; and no inappropriate wage abatement; respect for employees’ right. (d) Recognise that climate change issues and conserve and protect the natural environment including reduce environmental negative impacts and prevent pollution. (e) Conduct fair business transactions including prevent all corruption types; offer no bribes or illegal contributions. (f ) Ensure safe and healthy workplaces and maintain a good working environment. (g) Ensure the quality and safety of products and services. Sustainability Report (cont’d)