sustainability report 2013/2014 overview • 2 Who We Are • 4 Chairman’s Statement • 6 CEO’s Statement • 10 Awards and Recognition • 12 Corporate Structure • 13 Financial Highlights • 14 Shaping a Sustainable Future • 15 Stakeholders Engagement • 16 Corporate Governance becoming an operator of choice • 20 Best Network • 22 Delivering an Unmatched Customer Experience • 26 Making a Difference to the Community • 31 Good Practices in Procurement creating a great place to work • 34 Culture Change and New Way of Working • 39 Training and Development • 42 Ensuring Health and Safety • 44 Benefits and Rights Advocating Environmentally Friendly Practices • 48 Advocating Environmentally Friendly Practices 49GRI Content Index 59MATERIALITY ANALYSIS 60 aBOUT THE REPORT who we are We are the leading communications service provider in Malaysia, enabling both individuals and businesses to connect and communicate anytime and anywhere. We are passionate about what we do, and we are obsessed with providing an unmatched experience to our customers. Our customers enjoy a superior internet experience, make voice calls and text, and use an ever expanding universe of connected applications on the most advanced cellular network, encompassing 3G and 4G LTE technologies. Our passion drives us to innovate and market services that are worry-free for our customers, so they can stay focused on the pursuit of their goals. For our enterprise customers, our integrated solutions are a compelling proposition which enables them to enhance their business goals. Our people are our competitive advantage. We prepare for the future today by developing the skills and talent of all employees, making Maxis a great place to work for great people. Underpinning this is the Maxis Way, our approach to work that champions passion, positivity, and collaboration. Beyond connecting people with our services, we are passionate about making a positive impact on the community in which we operate. Our Corporate Responsibility efforts aim to develop and enrich our community, customer and partners, creating a fun place to work and advocating environmentally friendly practices. chairman’s statement chairman’s statement The world has changed a great deal in the 20 years since we started operations, with sustainability and its impact on businesses becoming increasingly important to you, our stakeholders. Responsible and ethical business practices are central to ensuring the sustainability of any business. Just as risk management needs to be inculcated into our business decision, each employee must also learn to make the right and responsible choices and to identify opportunities for Maxis to make a positive contribution. At Maxis, our commitment towards responsible practices are embedded into our CR strategy: developing and enriching lives, creating a great place to work and advocating environmentally friendly practices. This is underpinned by our commitment to uphold the highest standards of governance as outlined in the Malaysian Code of Corporate Governance. With the extensive reach of our technology and services, we are conscious of our responsibility towards you and making a positive impact on society, especially within the communities in which we operate. This commitment and our aspirations necessitate us to ensure that we stay relevant to you while enriching your lives. Just as risk management needs to be inculcated into our business decision, each employee must also learn to make the right and responsible choices and to identify opportunities for Maxis to make a positive contribution. 4 SUSTAINABILITY REPORT 2013/2014 At Maxis, we’re working together to make a difference, and in 2014 we took a strategic decision to refocus our business and embark on a transformation journey to revitalise the Company. We aim to become an organisation that is admired for excellence. The transformation journey focuses on four core areas; delivering unmatched customer experience, developing the best network, creating a place for high-performers and making it a fun place to work for our employees. As a brand that connects 13 million customers, Maxis is extremely well positioned to deliver connectivity and innovative services that can be enormously empowering and bring a positive impact on peoples’ well-being. We can see how technology is making a significant difference to people’s lives and how our products enable people to work smarter, more flexibly and remotely. We also support businesses to optimize their operations, thus enhancing productivity and effectiveness. Our worry-free propositions, business solutions for the government, enterprise and SMEs offer significant potential to help individuals and organisations work and operate more efficiently and sustainably. We are also harnessing technology to bring underserved areas of the country into the mainstream economy in much faster ways. That is why supporting the national agenda to provide connectivity for communities in remote and underserved areas of the country is very close to our hearts. In addition to this, we are also actively involved in initiatives by the Malaysian Communication and Multimedia Commission (MCMC) to promote the widespread availability and usage of communication and multimedia services in underserved areas for underserved groups. Under these programmes, we have continued to build and operate Pusat Internet 1Malaysia (PI1M) and Kampung Tanpa Wayar (KTW). Currently, we have 68 PI1Ms of which 39 are still under construction. For KTW, we have 550 KTWs of which 280 are still under construction. On the environmental front, we recognise that achieving the sustainability of our planet is one of the defining challenges of the 21st Century. We realise that we need to play a bigger role in adopting and advocating environmentally-friendly practices, and that we have the potential to do so. For now, our Technology division takes the lead in tracking our carbon footprint. Our main focus is on using energy more efficiently in our networks, data centres Maxis Way, our internal guides and processes to develop highly capable and engaged people who are positive, passionate and collaborative, is central to our quest to achieve our vision. As a brand that connects 13 million customers Maxis is extremely well positioned to deliver connectivity and innovative services that can be enormously empowering and bring a positive impact on peoples’ well-being. and operations, where we believe we can make the biggest difference to our environmental footprint. Furthermore, by tackling related carbon dioxide (CO2) emissions, we also save on energy costs, thus building a strong business case for our efforts. As we continue on our transformation journey, we have not lost sight of the core foundation to our change process - our people. Organisational transformation always begins from within and that means creating a great working environment for our people. Maxis Way, our internal guides and processes to develop highly capable and engaged people who are positive, passionate and collaborative, is central to our quest to achieve our vision. Beyond financial rewards, we provide platforms for our employees to take part in volunteer projects where they can go out to the community, represent our brand and build relationships by sharing their skills and passions. These could be Maxis-led community programmes as well as market initiatives involving the larger community. We are pleased to share our responsible practices in the marketplace, workplace, community and environment in this Sustainability Report. This report covers the 24 month period between 1 January 2013 and 31 December 2014 and is guided by Global Reporting Initiative (GRI) reporting framework. This will also be our first web-based report in line with the conscious decision to implement environmentalfriendly practices. We hope this report is informative in giving an overview of how we are integrating responsible practices into the way we do business and ensuring our sustainability well into the future. We have made headway with our transformation journey. Our vision is clear: to deliver a worry-free Internet experience on the best network and be a company admired for excellence. By acting in a sustainable and responsible way in all areas, we are taking a step-by-step approach to ensure this vision becomes reality. Through this report, we want to demonstrate how Maxis is shaping its future. In doing so, we hope to widen our impact to the communities within which we operate and create long-term value for our stakeholders in the long run. raja TAN SRI DATO’ SERI ARSHAD BIN RAJA TUN UDA Chairman SUSTAINABILITY REPORT 2013/2014 5 ceo’s statement ceo’s statement 2014 was a transformational year for Maxis. We entered the year with a clear goal - to revitalise and refocus the Company into delivering the very best in mobile Internet access and an unmatched customer experience. We’ve made great strides with our transformation initiatives during the year, overhauling many areas of the Company and introducing drastic changes. There is more work to be done, but we now have a much improved business and operation as well as positive momentum to go forward with. I’m confident that we are poised to win in the marketplace in the next years. In this Sustainability Report, my first as Maxis’ CEO, I’m pleased to share the initiatives that we’ve put in place to ensure our sustainability well into the future. Our change process had already begun even in 2013. Maxis as a company has always performed financially, but we were drifting towards being average. So we wanted to regain the affection of our customers and get Maxis back on track to being a high-performance organisation, moving the Company from OK to great and becoming an organisation that is admired for excellence. 2014 was a transformational year for Maxis. We entered the year with a clear goal - to revitalise and refocus the Company into delivering the very best in mobile Internet access and an unmatched customer experience. 6 SUSTAINABILITY REPORT 2013/2014 With the Internet going increasingly mobile, we continued to experience high and growing demand for our data services. More people are accessing this new world, spending a great deal of time online. We know that we can serve this demand better. Our proposition is that, the Internet is always better with Maxis. We want our customers to have the freedom to communicate and connect wherever, whenever and however they choose. Our new mobile Internet plans are set to inspire confidence and trust, allowing users worry-free Internet access and opportunities to use data just the way they want it. Foremost in our thoughts is the promise to customers to ‘feel free’. We aim to differentiate ourselves from our competitors by delivering an unmatched customer experience. This we do by having touchpoint excellence, providing the best network and delivering easy to use products and services. We’ve already made considerable headway with our initiatives. Last year, we gave our customers the ‘always on’ proposition with free basic internet when we launched #Hotlink. We followed that up this year with MaxisONE Plan for our postpaid and business customers. With this plan, we made a fundamental change by offering truly limitless voice and SMS as well as a generous and worry-free data offering. With this change, the whole focus on how much customers call or SMS is gone - a truly new experience for the Malaysian market and also a first in Asia. We took away the very high pay-per-use rates for data usage and also made both prepaid and postpaid roaming a worry-free experience for customers. These game-changing postpaid products - the MaxisONE Plan and MaxisONE Business - are gaining very good traction, while our prepaid business, led by #Hotlink, is regaining market share. which will enable us to access information wherever we are, often using our mobile devices. We certainly need to have the best network to build the capabilities that we require for robust growth. With that in mind, we have invested considerably in our network, which is now indisputably the best in Malaysia. Our work on network modernisation, capacity and quality improvements as well as focused 4G coverage expansion are really the backbone that ensures customers get a consistent data experience. With our improving network as well as the drastic measures we have taken in removing pay-­per­-use charges for data usage, customer complaints have dramatically reduced - it was down by over 30% compared to 2013. But it’s not just about the plans and network infrastructure. We are also complementing all these by ensuring touchpoint excellence in our distribution channel; from our retail stores, to branding and our end-to-end processes. More importantly, it is not just about physical change. We aim to create more “like” moments for the brand. It’s about going that extra mile to create a positive surprise that makes the customer happy and thereafter be a promoter of the Maxis Experience. One of those moments was when we had the first ever Maxis Midnight Express™ which saw 400 Maxis employees including me and our Maxis Management Team, personally delivering iPhones to customers wherever they were around the country at midnight on the day of the iPhone 6’s launch. This is where the strength of our people really shines. Essentially, it is our people who are making the positive changes and a difference with everyone we deal with. We are re-energising the inner workings and company DNA with We are also strengthening our enterprise capabilities to offer new ways of working and drive enterprises towards digital transformation. In fact, we are going to be a showcase in how companies can digitally transform themselves. We are working on creating all these capabilities now, and by next year we will be a leading company when it comes to how far we have gone on the route of digital transformation. So, what is digital transformation? This is about really embracing the Internet, cloud and mobile in everything we do. The transactional relationship between our customers, vendors and partners with ourselves should be digital. Also internally, we should use the latest IT tools and software to drive collaboration and productivity. Typically, we will do that in a cloud based environment, Maxis understands the importance of creating ‘like’ moments for our customers, by giving them positive surprises such as the iPhone 6 Midnight Express. SUSTAINABILITY REPORT 2013/2014 7 ceo’s statement ceo’s statement We recognise that dialogues with leaders help people feel engaged and connected to the business. We made this happen through CEO Coffee Chats, quarterly divisional townhalls and briefings for the managers. All these efforts were reflected in the results of our 2014 Voice of Maxis survey which saw a tremendous improvement vs. 2013. So our engagement calendar was full for the year. Apart from the usual employee events such as annual dinners, family days, festive gatherings and treasure hunts, we injected some fun, competition and sports into our engagement initiatives. We also got our employees to participate in our market initiatives, to learn and provide feedback. Maxis recognises that dialogues between leaders and employees are important in helping people feel more engaged. This includes updating them on the latest products and services as well as the business as a whole. We are also embracing a new way of working. Our newly renovated office in Menara Maxis is now the most talked about work place in corporate Malaysia, and is a great example of the new culture we are creating - open, collaborative and agile. 8 SUSTAINABILITY REPORT 2013/2014 Maxis Way, where we measure ourselves on the values or being Positive, having Passion and being Collaborative. To inspire change and get employees to embrace Maxis Way more swiftly, we conducted companywide Living the Maxis Way (LMW) workshops. Over 3,000 Maxisians were trained in over 100 sessions, by our own employees who were selected as change agents to conduct the workshops. With Maxis Way, we are putting in place a cultural change to develop highly capable and engaged people in driving towards a high performing culture throughout the Company. This is supported by our leaner and fitter organisation structure, which enables us to work in a more results-driven way. We are also embracing a new way of working. Our newly renovated office in Menara Maxis is now the most talked about work place in corporate Malaysia, and is a great example of the new culture we are creating - open, collaborative and agile. We are on the way to refresh all of our offices in 2015. We’ve also launched an internal social network tool for collaboration and are in the process of going totally paperless. Improving the customer journey was one such example. We had crossfunctional teams coming together to examine and analyse pain points at every step of the journey from the moment customers take up our service to using, paying, engaging, renewing and even leaving us should they choose to do so. We also had hundreds of employees, including our leadership team, volunteering to buddy with their colleagues in the call centre, attending to customers at our Maxis Centres, and joining our sales team to engage customers on the ground. This is all for getting the basics right, fixing what’s wrong and making sure we are not doing any mistakes in our interaction with customers. We also had 1,000 of our employees participating in Maxis’ New Network Test Drive to test our modernised data network across Peninsular Malaysia. The employees got to experience for themselves the newly modernised network in a fun and exciting way, as well as to engage with customers on the ground. As an industry, we do our part in Universal Service obligation to the Malaysian Communications and Multimedia Commission (MCMC) to support deployment of fixed and mobile access to the less advanced areas. On our own, we’ve engaged with the regulator to deploy internet centres, sometimes using satellites as a backbone to power the internet in more rural areas. Our own community flagship programme, the Maxis Cyberkids programme, reached out to teach students and teachers basic IT knowledge and enable them to be agents of change in their respective communities. More than 9,000 teachers and students from semiurban and rural backgrounds in 1,525 schools nationwide benefited from the programme since its launch in 2002. We plan to move into the next phase of our community programme in 2015 to make a direct impact on learning in the classroom, supporting the Government’s aspiration to use ICT to scale up the quality of learning across schools in the country. All in all, we’ve made huge strides in 2014. I’d like to thank the Maxis team for their participation to transform Maxis. It is truly an exciting time for our Company and we are completely committed to moving through with our transformation and continue focusing on quality and delivering as promised. By bringing together our networks, technology and the passion of our people, we are making a positive impact and generating value for our shareholders, customers and society. morten lundal Chief Executive Officer Beyond engaging customers with our products and services, we are passionate about giving back to the community in which we operate. SUSTAINABILITY REPORT 2013/2014 9 awards and recognition awards and recognition 2013 2014 CNET Asia’s Readers Choice 2012/2013 Best Telco (Malaysia) PC.com 13th Readers’ Choice Awards 2013 Best Postpaid Service Provider Putra Brand Awards 2013 The People’s Choice Putra Brand Icon The People’s Choice GOLD - Communication Networks 8th Annual Computer World’s Customer Care Awards 2014 Telecommunications category - Winner Reader’s Digest Trusted Brand Awards 2013 Platinum - Phone & Broadband Service Putra Brand Awards 2014 The People’s Choice GOLD - Communication Networks 14th Malaysia CRM & Contact Centre Industry Award 2013 Best of the Best Contact Centre in Malaysia (In-House Category) Corporate Awards 1st Place Best In-House Outbound Contact Centre (under 100 seats) CRM Programme Implementation Contact Centre Process Excellence Contact Centre Social Media Programme Contact Centre Technology Innovation Contact Centre 2nd Place Best In-House Inbound Contact Centre (over 100 seats) Most Creative Contact Centre Most Green Contact Centre Malaysia’s 100 Leading Graduate Employers Awards 2014 Best Graduate Employer (Telecommunications) Malaysia’s Top 100 Leading Graduate Employers 15th National Customer Experience Industry Award 2014 Individual Awards - Team Leader Best Contact Centre TL - Inbound (above 100 seats) Best Contact Centre TL - Outbound (under 100 seats) Best Contact Centre TL - WF/QA (above 100 seats) Prestige Award Industry Professional Development Achievement (Individual) Individual Awards Best Contact Centre Manager - Operations (under 100 seats) Best Contact Centre Manager - Operations (over 100 seats) Best Contact Centre Manager - Non Operations (under 100 seats) Best Contact Centre Manager - Non Operations (over 100 seats) Best Contact Centre Team Leader - Operations (over 100 seats) Best Contact Centre Team Leader - Non Operations (over 100 seats) Best Contact Centre Professional - Operations (over 100 seats) Best Contact Centre Professional - Non Operations (over 100 seats) Best Contact Centre Telemarketer (Open) Malaysia’s 100 Leading Graduate Employers Awards 2013 Best Graduate Employer (Telecommunications) Malaysia’s Top 100 Leading Graduate Employers Gradmalaysia Graduate Recruitment Awards 2013 Best Management Trainee/Graduate Programme 10 SUSTAINABILITY REPORT 2013/2014 Individual Awards - Professional Best Contact Centre Professional - Inbound (under 100 seats) Best Contact Centre Professional - People (above 100 seats) Best Contact Centre Professional - WF/QA (under 100 seats) Best Contact Centre Professional - WF/QA (above 100 seats) Individual Awards - Manager Best Contact Centre Manager - Inbound (under 100 seats) Best Contact Centre Manager - Inbound (above 100 seats) Best Contact Centre Manager - Outbound (under 100 seats) Best Contact Centre Manager - People (above 100 seats) Best Head of Contact Centre Corporate Awards Best In-House Inbound Contact Centre (above 100 seats) Best In-House Outbound Contact Centre (under 100 seats) CRM Programme Implementation Contact Centre (Open) Video Contact Centre (Open) Technology Innovation Contact Centre (Open) Process Excellence Contact Centre (Open) Most Green Contact Centre (Open) Social Media Programme Contact Centre (Open) Most Creative Contact Centre (Open) Best Contact Centre - Telecommunication Best of The Best Contact Centre (In-House) SUSTAINABILITY REPORT 2013/2014 11 corporate structure financial highlights maxis berhad For the year ended 31 Dec 2014 For the year ended 31 Dec 2013 For the year ended 31 Dec 2012 Revenue 8,389 9,084 8,967 EBITDA 4,229 4,310 4,359 Normalised EBITDA (1) 4,207 4,522 4,359 Profit from Operations 2,816 2,825 2,864 Profit Before Tax (“PBT”) 2,436 2,496 2,576 Profit After Tax (“PAT”) 1,725 1,772 1,860 Normalised PAT (2) 1,910 2,097 2,049 Profit attributable to equity holders of the Company 1,718 1,765 1,856 50.4% 47.4% 48.6% Financial Results Financial Indicators: (RM’m) Maxis Broadband Sdn Bhd Maxis International Sdn Bhd Maxis Mobile Sdn Bhd Advanced Wireless Technologies Sdn Bhd Maxis Mobile Services Sdn Bhd Maxis Collections Sdn Bhd Maxis Multimedia Sdn Bhd Financial Ratios: EBITDA Margin (%) Maxis Online Sdn Bhd Maxis Mobile (L) Ltd UMTS (Malaysia) Sdn Bhd The above structure represents Maxis Berhad and its subsidiaries, collectively referred to as ‘Maxis’, ‘the Group’ or ‘the Company’. Normalised EBITDA Margin (%) 50.1% 49.8% 48.6% PBT Margin (%) 29.0% 27.5% 28.7% PAT Margin (%) 20.6% 19.5% 20.7% Normalised PAT Margin (%) 22.8% 23.1% 22.9% 6.6 7.9 8.4 22.9 23.5 24.7 Interest Cover Ratio Earnings per ordinary share (sen): - Basic OWNERSHIP 22.9 23.5 24.7 40.0 40.0 40.0 4,716 6,002 7,049 18,109 17,330 17,802 8,798 7,525 7,312 Return on Invested Capital (%) (4) 16.9% 16.1% 15.9% - Fully diluted Based on the Record of Depositors as at 31 December 2014, the 10 largest shareholders of Maxis are listed below: Dividends per share (sen) (3) FINANCIAL POSITIONS Name of Shareholder No. of Shareholding Percentage 1 BGSM Equity Holdings Sdn. Bhd. 4,875,000,000 64.94 2 Amanahraya Trustees Berhad Skim Amanah Saham Bumiputera 616,887,200 8.22 3 Citigroup Nominees (Tempatan) Sdn. Bhd. Employees Provident Fund Board 462,466,700 6.16 4 Lembaga Tabung Haji 139,522,300 1.86 Return on Average Equity (%) (4) 32.1% 27.1% 24.5% Return on Average Assets (%) (4) 12.0% 12.0% 12.2% 5 Kumpulan Wang Persaraan (Diperbadankan) 107,866,400 1.36 Gearing ratio 1.53 1.12 0.90 6 Amanahraya Trustees Berhad Amanah Saham Malaysia 71,670,000 0.95 Net assets per share attributable to ordinary equity holders of the Company (RM) 0.63 0.80 0.94 7 Amanahraya Trustees Berhad Amanah Saham Wawasan 2020 69,137,600 0.92 8 Amanahraya Trustees Berhad AS 1Malaysia 59,432,200 0.79 9 Cartaban Nominees (Asing) Sdn. Bhd. Exempt AN For State Street Bank & Trust Company (West CL T0D67) 58,958,500 0.79 10 HSBC Nominees (Asing) Sdn. Bhd. BBH and Co Boston for Vanguard Emerging Markets Stock Index Fund 49,539,450 0.66 12 SUSTAINABILITY REPORT 2013/2014 Financial Indicators: (RM’m) Equity attributable to equity holders of the Company Total Assets Total Borrowings Financial Ratios: Notes: (1)Exclude one-off items for the following years: (a) Year-to-date ended 30 September 2014 - reversal for contract obligations of RM22 million (b) Year 2013 - RM212 million comprising (i) Career Transition Scheme (CTS) costs of RM143 million; (ii) provision for contract obligations of RM65 million; and (iii) write down of Home assets of RM4 million (2)Exclude one-off items (after tax effect) for the following years: (a) Year-to-date ended 30 September 2014 - RM101 million comprising (i) accelerated depreciation of RM117 million; offset by (ii) reversal for contract obligations of RM16 million (b) Year 2013 - RM325 million comprising (i) CTS costs of RM107 million; (ii) provision for contract obligations of RM49 million; (iii) write down of assets of RM65 million; and (iv) accelerated depreciation of RM104 million (c) Year 2012 - RM189 million comprising (i) accelerated depreciation of RM121 million; and (ii) write down of assets of RM100 million, offset by last mile broadband tax incentive of RM32 million (d) Year 2011 - RM339 million comprising last mile broadband tax incentive of RM352 million offset by accelerated depreciation of RM13 million (3) Dividends per share consists of interim and final dividends declared and proposed in respect of the designated financial years (4)Return ratio is calculated on annualised basis SUSTAINABILITY REPORT 2013/2014 13 shaping a sustainable future stakeholders engagement Our ambition is clear - to ensure that Maxis delivers the best Internet experience. This essentially means providing customers with worry-free Internet access and opportunities to use data just the way they want it. With the Internet experience increasingly going mobile, it brings a profound impact on the way people manage their daily lives and how companies operate. We see significant opportunities to grow and enhance our business by developing innovative products and services while helping consumers, governments and enterprises tackle some of the significant challenges they face. Advocating Environmentally Friendly Practices 14 leading-edge and In our drive for continuous improvement and long-term sustainability, we actively engage with our stakeholders as their views are important to help us understand their needs and expectations. Our engagement processes are tailored to suit each different stakeholder group so that we can have effective platforms to receive their feedback, explain our perspectives and discuss issues to address. for the economy, society and environment Regular engagements also help build strong relations with respective stakeholders, and our regional offices play an important role in forming relationships within their respective regions. in which we operate. Stakeholder Group Key Engagement Areas How We Engage Government and Regulators • Connectivity and access to technology in rural and underserved areas • Development of the telco industry and market • Spectrum management • Access issues and policies • Quality of service and consumer issues • Collaborative programmes related to the national agenda • Regular reports and progress updates • Formal and informal meetings • Participation in government programmes and initiatives • Regular joint site visits Shareholders, Investors and Analysts • Profits and dividends • Responsible business • Corporate Governance • Annual report and quarterly financial announcements • Annual General Meeting/Extraordinary General Meeting • Dedicated Investor Relations page on our corporate website, maxis.com.my • Dedicated investor relations email address • Analyst and investor briefings • Online media centre Customers • Quality and coverage • Security protection • Education and awareness • Innovative offerings • Maxis Centres and Exclusive Partner Outlets • Customer satisfaction surveys • Focus group discussions • Customer service channels (Maxis Forum, customer helpline, social media) Employees • Workplace inclusivity • Training and development • Health and safety • Benefits and rights • Annual employee engagement survey • Consultative groups and focus groups • CEO email to employees • Intranet • Regular employee briefings • Engagement initiatives • Employee volunteerism Focus Approach Best Network • Best Network initiative to support customer needs and requirements Delivering an Unmatched Customer Experience • Worry-free Internet access • Supporting SMEs • Improving customer experience journey • Responding to queries and resolving complaints • Investing in our service capabilities • Engaging with stakeholders for customers feedback Making a Difference to the Community • Empowering the community through technology and education • Providing access to underserved communities • Ad-hoc donations • Relief aid for flood victims • Nurturing future talent Good Practices in Procurement • Advocating green practices among our vendors • Ensuring ethical practices and transparency in procurement Culture Change and New Way of Working • Living the Maxis Way • New ways of working • Employee engagement Training and Development • Maxis Management Associate Programme • Maxis Internship Programme • Engaging young talent Ensuring Health and Safety • Health and Safety management • Safe working culture initiative Benefits and Rights • New benefit programme to support the new culture • Ethics, anti-corruption and bribery Local Communities and NGOs • Education and awareness • Community support • CR initiatives • Briefings/meetings with residents’ associations Resource Efficiency • Increasing energy efficiency of network facilities Suppliers and Distributors • Proactive partnerships • Partner events, trainings and briefings • Site visits Carbon Management • Reducing CO2 footprint Media • All of the above Waste Management • Supporting green practices in the office • Media visits • Media events and interviews • Online media centre Becoming an Operator of Choice Creating a Great Place to Work Our CR Mission SUSTAINABILITY REPORT 2013/2014 SUSTAINABILITY REPORT 2013/2014 15 corporate governance corporate governance CR Governance Risk Management Anti-Corruption We believe that Corporate Responsibility (CR) is an integral part of our business strategy and corporate governance framework. In November 2011, the Board approved Maxis’ Corporate Responsibility framework to define the Company’s CR mission, strategic pillars, philosophies and governance structure. The Company drives a pro-active risk management culture where regular risk awareness and coaching sessions are held to ensure that employees have a good understanding and application of risk management principles. Maxis is committed to the highest standards of ethical business conduct and we take a zero tolerance position in relation to bribery and corruption. The framework provides clear guidelines for the implementation of CR programmes that are consistent with the Company’s strategic goals and facilitates a structured approach in delivering the Company’s efforts in the marketplace, workplace, community and environment. The CR team within Corporate Affairs leads the implementation of flagship programmes for the community. The CR team works with the CR Working Committee, represented by individuals called CR Ambassadors from various divisions in Maxis. They coordinate the reporting of CR initiatives undertaken by their respective business units and champion, as well as incorporate, the relevant CR initiatives as part of their day-to-day business activities. Implementing CR policies and programmes is not only about conducting business responsibly, but also about ensuring that the communities in which we operate are well-served by the Company, thus mitigating possible business or social risks. We view our relationships with the communities as symbiotic and mutually beneficial. Additionally, our CR initiatives allow us to better engage with many of our stakeholders, including investors and consumers. Please refer to the Corporate Governance pages of Maxis’ Annual Report for a comprehensive view of Maxis’s Governance Structure, composition of the Board, roles and responsibilities of the Board and mechanism for shareholders and employees to provide recommendations. 16 SUSTAINABILITY REPORT 2013/2014 A dedicated ERM department works closely with the Group’s operational managers to continuously strengthen the risk management initiatives within the Group so that it responds effectively to the constantly changing business environment and is thus able to protect and enhance shareholder value. The Maxis Code of Business Practice helps put our Business Principles into practice in our day-today operations and outlines our position for all Maxis employees regarding anything that could be construed as corruption. Specifically, this includes: The Group has established a sound risk management framework and procedures for internal control. These procedures, which are embedded into the culture, processes and structures of the Group, are subject to regular review by the Board. They provide an on-going process for identifying, evaluating and managing the significant risks faced by the Group that may affect the achievement of its business objectives and strategies. The Board regards risk management as an integral part of the Group’s business operations and the Board has oversight over this critical area through the Audit Committee. The Audit Committee, supported by the Internal Audit department, provides an independent assessment of the effectiveness of the Maxis Enterprise Risk Management (ERM) framework and reports to the Board on a yearly basis. cash gifts tickets meals cash equivalents passes Key principles on managing risks: controls risks Alignment identify & analyse respond monitor & report • Risk must be considered and managed enterprise-wide • Risk management is integral to the business processes • Risks are identified, analysed, responded, monitored, and reported in accordance to Maxis’ policies and procedures • Risk responses must be tailored to each particular circumstance • Management must regularly assess the status of risks and risk responses • Compliance with the ERM framework must be monitored and reported Whistle-Blowing Policy To ensure that any discrepancies or misconduct do not go unreported, we have put in place a whistle-blower procedure. The procedure includes a 24-hour ethics hotline and a dedicated ethics email address, and all information received is treated as strictly confidential. Employees can contact 03 2330 6678 (during office hours) or 017 200 3922 (24 hours; SMS or call), or email ethics@maxis.com.my Personal Data Protection Act (Pdpa) Maxis’ Enterprise Risk Management Framework (ERM) objectives The Code of Business Practice also applies to vendors, contractors and temporary employees. To ensure awareness and compliance, Directors, Management and employees are asked to review and sign the Code of Business Practice annually. A Gift Recurring gifts from the same party are not considered a business norm. to use. The Company recognises the importance of protecting shareholders’ and customers’ personal data, and has taken steps to be compliant with the Personal Data Protection Act 2010 (PDPA 2010). The Company will not disclose information without their consent unless allowed by the PDPA 2010, and any other applicable laws and regulations. Declaration of in value to the Office of Business Practice. SUSTAINABILITY REPORT 2013/2014 17 Becoming an operator of choice We want to be agents of positive and sustainable change. In particular, we want to make a positive and lasting impact through the use of our knowledge, skills, technology and resources. These include delivering an unmatched customer experience, being responsible in our operations and making a meaningful difference to the community we operate in. best network Wireless Population Coverage 2G and 3G Our network is the single most important driver of customer experience, and we obsess over the smallest detail. 95.4% 2G Coverage 88.0% In 2013, Maxis scored a critical win by being the first to launch commercial 4G LTE services. We also continued to modernise our network, increase our network capacity and deliver communication services to more rural areas. We have also changed our legacy network in selected areas in the East Coast and East Malaysia to meet capacity demands. In modernising the network, we have added more 3G sites and activated W900 for deep indoor 3G coverage. On 4G LTE, we expanded our network to areas with high data demands. Our 4G LTE coverage will soon reach a third of the population. We also acquired and upgraded our tools and systems to give us better insights on customers’ experience on our network. This has helped to enhance and further optimise the network to provide the best voice and data experience to customers. 20 SUSTAINABILITY REPORT 2013/2014 Employees hit the streets to test out Maxis’ modernised data network, while engaging with customers. Some of the measures we have undertaken to maintain our network: We undertake periodic preventive maintenance on the network to We are also ISO 9001:2008 (Quality Management System) for the plan design investing such as secondary fibre route, improving the battery backup for sites at locations that have unstable power supply and modernising the network equipment. Maxis’ network is also certified with the prestigious implementation As at end 2014, our 2G and 3G networks covered 95% and 88% of the population respectively, of which 77% and 75% respectively are new replacement networks. Our strategy is to prioritise specific market centres to cover significant parts of Klang Valley, Johor Bahru, Penang and secondary towns such as Ipoh, Seremban, Malacca, Muar, Batu Pahat, Kluang and Bukit Mertajam. 3G Coverage operation Best Network Initiatives best network We have also achieved certification of (Business Continuity Management System). maintenance of telecommunications network the only cellular operator in Malaysia to achIEve this milestone. Maxis New Network Test Drive Network Deployment In November 2014, some 1,000 Maxis staff hit the streets of Kuala Lumpur, Selangor, Pahang, Penang and Johor in the Company’s Network Test Drive. Donning bright green Maxis shirts, teams were deployed to test Maxis’ modernised data network in a fun and exciting way, while engaging with customers on the ground. These tests were conducted based on three key areas important to customer experience - namely download speeds, loading time for popular websites and YouTube streaming. Our Site Planning and Implementation Guidelines, along with our Electromagnetic Field (EMF) and Health and Safety standards, set consistent standards for all our sites in five key areas: legal compliance, environmental impact, radio frequency emissions, site planning and selection, as well as health and safety. The standards and guidelines also apply to contractors and their sub-contractors, who carry out much of the work involved in network deployment - from the planning and acquisition of sites to the construction and maintenance of base stations. Contractor compliance is a priority and we have an audit programme in place to monitor contractors’ performance in the key areas of health and safety. When selecting base station sites, we always aim to comply with local planning regulations. All our base station sites are designed and built in compliance with local planning regulations and international safety guidelines. SUSTAINABILITY REPORT 2013/2014 21 delivering an unmatched customer experience delivering an unmatched customer experience Improving Customer Experience Journeys Customer service is core to our sustainable business strategy and we continuosly work to improve the experience we provide to our customers. During this reporting period, we embarked on a structured operational framework of Customer Experience, covering identified insights through the Voice-of-Customers. We prioritised areas such as making customer journey improvements and continuously managed Customer Experience through performance metrics. MaxisONE is the only Internet plan with limitless voice and text. We also initiated three key initiatives to re-design our Joining Journey and the Mobile Internet journey. We are embedding a Customer Experience mindset into our core processes as a way of strengthening our product design with customer advocacy. Customers are able to enjoy a worry-free experience with the MaxisONE Plan for both postpaid and enterprise customers. Worry-Free Internet Access We continue to introduce new and innovative services to give our customers peace-of-mind and a worryfree Internet experience, empowering people to connect, learn, work, play, be entertained and broaden their horizons wherever and however they choose. In September 2013, we introduced #Hotlink for our prepaid customers, which eliminated expensive pay-per- 22 SUSTAINABILITY REPORT 2013/2014 FINDIT is Malaysia’s largest digital directory service, enabling businesses to connect with consumers. A special session with our SME customers to share information on the new ways of working and digitising their businesses. use data charges by offering free basic Internet access. We subsequently launched MaxisONE Plan for our postpaid customers in May 2014, the only Internet plan with limitless voice and text. Supporting SMEs We made a fundamental change in postpaid with our MaxisONE Plan, by offering truly limitless voice and SMS as well as a generous and worry-free data offering. Furthermore, we also took away the very high pay-per-use rates for data usage. Ultimately, customers will no longer entangle themselves in unintentional or uncontrolled data usage resulting in bill shocks. It is a simple, flexible plan that is relevant to the needs of our customers. We also made both prepaid and postpaid roaming a worryfree experience for customers. The first part of the journey was kicked off with Maxis Management Team (MMT) members on 24 April 2014, who were based at various Maxis locations nationwide - our branches, the Sunway contact centre, as well as our service operation centre at Subang Hi-Tech. These leaders experienced what it was like to be at the retail centres, signing on new postpaid customers, troubleshooting devices, and even selling Hotlink top-up tickets. Feedbacks from the MMT were then taken and channelled to relevant departments for further improvement and resolution. Maxis launched FINDIT, a local business directory service to connect local businesses with consumers via smartphone apps, website and other mobile channels, enabling businesses to reach out to a wider market to promote their products, services and deals. This service is open to all Malaysians for free and is an opportunity to help businesses, especially SMEs, to reach out to the growing mobile-based digital savvy Malaysians. To date, consumers have access to more than 175,000 business listings in over 2,500 categories. We met with our key SME customers to inspire them on adopting our new ways working which is open, collaborative and simple. We would like to be a digital showcase and want to change the way Malaysian companies operate and help them to become digitised. The Maxis Management Team interacting with customers during their visits to the Maxis Centres. SUSTAINABILITY REPORT 2013/2014 23 delivering an unmatched customer experience delivering an unmatched customer experience Maxis Midnight ExpressTM The first ever Maxis Midnight Express™ saw Maxis employees including CEO Morten Lundal and MMT, personally delivering iPhones to customers around the country. About 200 randomly selected customers who pre-ordered the iPhone 6 or iPhone 6 Plus via the Maxis Online Store from 31 October onwards were offered the Maxis Midnight Express™ delivery service, and received their phones at midnight of 6 November 2014. 400 employees were involved in this initiative. As part of the iPhone 6 launch, up to 400 employees took part in delivering the iPhone 6 to our customers. Over the course of the reporting period, we implemented a number of new ways to make it easier for customers to contact us: We provided a number of helpful videos on our YouTube channel. These have been viewed over 19 million times in 2014, enabling many customers to resolve a problem without needing to contact us directly. Our presence or support channels over social media have been enhanced from to channels for our customers to This year, the number of customer tweets we’ve responded to has doubled, while the number of people following information and access helpful solutions and tips. Investing in Our Service Capabilities for postpaid and prepaid respectively, grew by We want to empower our customers to interact more with us via their mobile devices. In line with this, we made major IT investments in 2013 to strengthen our customer relationship management and billing capabilities. • An interactive online platform which allows our customers to view their bill over a six-month period, which can be broken down into domestic and international calls. User convenience was further enhanced when we launched our Maxis Online Store (MOS) in February 2013, and our revamped website in April 2013. • Flags in our systems to identify when a customer has called us more than once recently, so that our advisors can take extra care to resolve the issue. • New diagnostic tools to enable us to identify issues in the network as soon as they happen, and proactively resolve them. As at December 2014, we have an online community engagement of over 2 2 million . on our social media channels. Our process improvement efforts are about 70% complete and are still on-going, as we aspire to reduce customer complaints further. 24 SUSTAINABILITY REPORT 2013/2014 We want to resolve issues as quickly as possible for our customers and continue to reduce the number of complaints we receive year on year. In 2014, our complaints reduced by a further 41%, from 19,718 in 2013 to 11,698. Also, we continue to put new processes in place to ensure we resolve complaints quickly and effectively at the first opportunity, through our One Contact Resolution programme. @MaxisListens and @HotlinkListens while those who ‘like’ Maxis on Facebook increased by 12%. & promotional updates over Facebook and Twitter; with Maxis Forum supporting an online community with the platform to Responding to Queries and Resolving Complaints Transforming an ordinary retail experience with retail excellence for an unmatched customer experience. The new Maxis flagship store radiates with a modern look, aimed at offering a better retail experience for customers. We modernised our KLCC flagship centre in August 2013, to not only provide a new service experience, but also to redefine our engagement and service support to our customers. Some of the changes in the store include: • Service Ambassadors at the store entrance to guide customers to either the Sales Associates for sales enquiries or the front desk for service enquiries. The front desk is also enabled to fulfil certain popular transactions on-the-spot without forwarding customers to different counters. • Customers have the privilege to be served anywhere within the store by our customer service agents, who are now equipped with tablets to enable processing of most of the sales and certain service transactions. • Customers who are interested to learn more about mobile phone features and functions, or to view new product snippets can attend the tutorials provided by the Tech Help specialists. Customer Service Challenges During the reporting period, we had to cope with a number of issues. The theft of fibre cable grew significantly, increasing the number of faults suffered by customers. We have worked with the police, Government, media and other stakeholders to raise awareness of cable theft and to take action to reduce it. Cable theft declined in the later part of 2014 as a result of this collective effort, but more work is needed. We have invested in a number of innovations to help prevent cable theft. Measures to curb fibre theft: • Configuring fibre resiliency and installing CCTV or motion sensors on sites that experience frequent theft. • Joint efforts with OLOs (Other Licensed Operators) on joint site patrols and deployment of security guards at theft hotspots. We also have programmes in collaboration with Polis DiRaja Malaysia (PDRM). In the last two years, we invested in our people’s service capabilities by conducting over 1,020 days of training, skills and support the to enhance our The Maxis management team addressed tech and lifestyle bloggers about Maxis’ latest products and services as well as UCE initiatives. Engaging with Stakeholders for Customer Insights Maxis’ Customer Service team engages with the Complaint Bureau of MCMC via periodical meetings to mutually discuss and review complaint management matters, product and services information, quarterly performance reports and statistics on complaint management. We also engage with the Public Complaints Bureau (PCB) in the Prime Minister’s Department, Consumer Forum Malaysia (CFM) and other government agencies to obtain feedback. release of new products to market. SUSTAINABILITY REPORT 2013/2014 25 making a difference to the community making a difference to the community Modules Taught During the Maxis Cyberkids Camps in 2014 Through the years, we have been involved in efforts to help strengthen the communities we proudly serve. Maxis Cyberkids Portal This is a guided tutorial on how to use the Maxis Cyberkids Portal, which acts as a social media network for teachers, students and other Maxis Cyberkids participants to connect, exchange, and share ideas. Students were guided on how to sign up, log in and use the portal wisely. Our corporate responsibility initiatives have always focused on both education and technology. Today, we maintain this commitment through our efforts to equip individuals with skills to enrich and improve their lives. Maxis Cyberkids Programme The Maxis Cyberkids Programme is our flagship corporate responsibility initiative, designed to open up the world of IT to both students and teachers, and exposing them to the wonderful world of technology. The Maxis Cyberkids Programme in 2013 and 2014 included: • Maxis Cyberkids Camps • Maxis Cyberkids with Employees’ Children • Maxis Cyberkids with Community App Inventor Students enjoy the modules taught at the Maxis Cyberkids camps. Maxis Cyberkids Camps Since 2002, we have successfully conducted numerous Maxis Cyberkids camps nationwide, giving youth the opportunity to explore the Internet and other technological tools. Fast forward 12 years later, and we are proud to say that our camps have reached out to some 9,079 students and teachers, as well as to 1,525 schools throughout the country. App Inventor lets the student develop applications for Android phones using a web browser and either a connected phone or an emulator. Website Development using Joomla This involved the creation of participating schools’ websites using Joomla, a content management system. Through the websites, teachers and students connected not only with each other but also with the public at large. Windows Movie Maker, a video editing software by Microsoft, allows participants to create, edit and publish their own videos. Blogs allow students to express themselves and their feelings in a more informal manner, with the use of text, pictures, and videos. They also encourage students to be more interested in writing and reading, and to develop and share content over the Internet. Storybird allows students to craft their own stories with the use of thousands of images and pictures available in the application. Students can craft stories in a more fun and exciting manner a definite plus point for special needs students who tend to learn better with visual aids. The Maxis Cyberkids Programme has been well received over the years, and during the 2013/2014 reporting period, we ramped up our efforts to increase the number of schools that we reached out to - in particular, special needs schools. Maxis Cyberkids with Employees’ Children In 2013, we extended the Cyberkids Programme to our own employees. In order to cater to the needs of the participants, the modules taught throughout this initiative were tailored from the Maxis Cyberkids Camps - which entails exploring and learning about Microsoft Office applications and having a general understanding of the Internet. These modules are also interspersed with team-building exercises meant to build confidence, innovation and creativity. “I learnt how to write stories in a more creative way, and Storybird is great for people like me who love writing!” Nada Natasha, SMK Dato’ Bentara Dalam, Johor SUSTAINABILITY REPORT 2013/2014 Windows Movie Maker Storybird “I’m so excited! I got to learn how to create a phone application with App Inventor!” Nurul Nadhirah binti Razak, SMK Dato’ Undang Musa Al-Haj, Negeri Sembilan 26 WeVideo is a cloud-based video editor that makes editing with browsers more fun and simpler. Blog “I learnt how to make paper roller coaster movies together with my friends! But it doesn’t stop there - everything else about the camp is fun!” Amirul Asyraaf bin Mohd Khaidzir, SMPKV Indahpura, Johor Maxis Cyberkids provides children with the opportunity to expand their computing and educational skills through Internet exposure. WeVideo The Maxis Cyberkids Progamme was also extended to children of Maxis employees, with more than 210 children taking part in the camps in 2013 and 2014. In 2013, two camps were conducted, which saw the participation of some 60 children aged from 9 to 11 years. The overwhelming response from our employees spurred us to increase the number of camps to seven in 2014, benefitting 210 children in total over the two-year period. SUSTAINABILITY REPORT 2013/2014 27 making a difference to the community Providing Access to Underserved Communities We have been supportive of the MCMC’s initiatives to promote the widespread availability and usage of communication and multimedia services in underserved areas for underserved groups. This includes the Pusat Internet 1Malaysia (PI1M), Kampung Tanpa Wayar (KTW) and WiFi 1Malaysia (W1M) programmes to enable these communities to access the Internet. Under these programmes, we have continued to build and operate PI1Ms and KTWs. Currently, we have 68 PI1Ms of which 39 are still under construction. For KTW, we have 550 KTWs of which 280 are still under construction. Going above and beyond, Maxis brought the Maxis Cyberkids Programme out A total of four community training sessions were conducted in 2014, reaching out to underserved areas in Kedah, Langkawi and Negeri Sembilan. About 200 residents from nine homes were special guests at Maxis’ Hari Raya Aidilfitri Open House held in Kuantan. Maxis contributed a total of RM50,000 to the homes and distributed ‘duit raya’ to its residents. Through the home adoption programme, Maxis provides training to develop the participants’ IT skills. We also continue to collaborate with MCMC to roll-out mobile services to underserved areas. Key target areas include FELDA, FELCRA, plantations, Orang Asli settlements, new remote tourist spots and significant areas along the federal highways. Over and above cellular technology, we also look at VSAT technology, where we have the largest number of VSATs in rural areas. In addition, we also have about 130 2G nano sites and 330 3G Femto sites serving the remote areas in East Malaysia. Maxis’ Home Adoption Programme SUSTAINABILITY REPORT 2013/2014 As part of Maxis’ CR, we have also allocated a portion of our budget to charitable organisations, or events organised to lend a helping hand to those in need. During the community events, participants learnt how to create their own blogs, edit and produce videos, and develop a better understanding of Google applications such as Gmail, Google Docs and Drive, as well as Google Calendar. This programme consists of the provision of communication towers for the purpose of Infra Sharing (IS) and Domestic Roaming (DR) for cellular services. 28 Ad Hoc Donations of schools and extended it to various underserved groups within the communities we operate in. In May 2014, we kickstarted our very first community training at Sungai Limau Dalam in Yan, Kedah. The Time 3 programme is targeted at extreme rural areas and villages with the population density of below 80 persons per square kilometres. The Maxis Cyberkids Programme was also extended to various underserved groups within the communities we operate in, equipping more Malaysians with basic IT skills. making a difference to the community In 2012, Maxis adopted two homes the Independent Learning and Training Centre (ILTC) in Rawang, Selangor and Jenjarom Old Folks’ Home in Banting, Selangor - for a period of two years. During this period, we worked closely ILTC members spent a day exploring Zoo Negara with Maxis staff. Maxis hosted a Chinese New Year celebration at the KLCC Maxis Centre, during which the ‘God of Prosperity’ handed out ang pows to customers. In the spirit of giving, Maxis hosted a special Christmas celebration for 70 guests from three charity homes in Sarawak, namely The Salvation Army, Sarawak Children Cancer Society and Persatuan Bagi Kebajikan Kanak Kanak Terencat Akal. with them to see how we could best meet their operational needs, while providing training to develop their social and IT skills. Some of the initiatives that we conducted in 2013 and 2014 included a two-day workshop on basic IT skills at the Maxis Academy in Menara Sunway for members of ILTC, and a half-day workshop, also on basic IT skills, for the senior citizens at Jenjarom Old Folks’ Home. In addition, festive celebrations were also held at the these homes, with Maxis staff and residents both enjoying the merriment of Chinese New Year and Deepavali. As part of its ongoing community initiatives, Maxis also organised a special visit to Zoo Negara for the members of the ILTC. Participanting in the Rat Race allowed Maxis to play a part in donating funds to 28 beneficiaries in a more fun and engaging manner, as this involved a network of Maxis volunteers and staff acting not only as runners, but also as cheerleaders and supporters. Maxis introduced the ‘Share The Light’ campaign in conjunction with Deepavali, which saw us partnering with LINE to empower Malaysians to donate digitally. The public just needed to view the ‘Share The Light’ video and download free Deepavali stickers from LINE. For every single download, Maxis donated RM1 with the proceeds going to 10 selected children’s homes around the country. Maxis also got its employees actively involved in CR activities by introducing the Hot Beverage Charity Card. Through this internal campaign, employees were able to purchase 10 cups of any beverage of their choice by purchasing the charity cards for just RM50. Three charity organisations, namely Beautiful Gate, Pertubuhan Kebajikan Ibu Tunggal An-Nur Kuala Lumpur & Selangor and Trinity Community Children’s Home Society, have been identified to receive the collection. SUSTAINABILITY REPORT 2013/2014 29 good practices in procurement making a difference to the community Relief Aid for Flood Victims We provided aid to flood victims in three areas by distributing essential items at relief centres at Sekolah Kebangsaan Getting, in Tumpat, Kelantan, as well as SK Teluk Kepayang and SK Muzafar Sha in Bota, Perak. We also publicised the Ministry’s and MCMC’s Humanitarian Donation Drive through SMS blast from 29 December 2014 onwards to all our customers, as well as announcement on our website and social media channels. To make it easier for customers in the affected states to stay in touch with their loved ones, we provided free 100 minutes and 100 SMS over the weekend of 27 December 2014. Further to that, from 31 December 2014 until 2 January 2015, we offered our Hotlink customers in Kelantan and Terengganu free calls and SMS to other Hotlink/Maxis numbers, while our postpaid customers enjoyed 100 minutes and 100 SMS to any Maxis/ Hotlink numbers. Sourcing for green products As part of its relief efforts for the flood victims, Maxis provided aid in the form of essential items as well as free calls and SMS to help customers stay in touch with loved ones. Maxis Scholarships for Excellence Awards (MSEA) diesel hybrid system The programme now offers scholarship opportunities to all Malaysians to pursue undergraduate studies in the field of Engineering, Technology and Social Sciences in top institutions overseas. In 2014, 10 scholarships were awarded to deserving students. and energy savings lighting system were deployed to replace the traditional generator set to increase energy efficiency. Advocating Green Practices Among Our Vendors In addition, we provided 35 free lines at selected relief centres - 10 in Kota Bahru, 15 in Ipoh and 10 in Kelantan. More than 100 Hotlink dealers’ shops were damaged and our partners had suffered varying degrees of losses. Some of the shops were completely submerged under water, causing the efforts to resume business operations arduous. Maxis Scholarship for Excellence Awards is open to all Malaysians, offering scholarship opportunities for undergraduate studies in top institutions overseas. We helped clean their shops, refurbish their display cabinets, restore IT systems and replenished POSM materials to help them resume operations. We also repainted some of the dealers’ shops. “It feels great. After various assessments, it’s truly an honour to be one of the recipients. This is a lifetime opportunity and I’m very grateful to Maxis for it.” said Girrja SUSTAINABILITY REPORT 2013/2014 solar hybrid system In 2014, Maxis extended the MSEA programme to all Malaysians, instead of just to our customers and their children. We want to play a bigger part in developing the country’s talent pool by nurturing exceptional young Malaysians and eventually developing them to hold leadership positions in Maxis, in particular, and the communications industry in general. Customers in the affected states were also given free Notify Me SMS beginning from 3 to 31 January 2015. 30 such as the As part of our efforts to reduce energy consumption, our engineers work with selected third parties to develop a heat management system that reduces air-conditioning run time and thereby lower our power consumption. “It feels amazing being a MSEA recipient. I still wake up in the morning in disbelief. Not only have I been waiting so long for a chance to further my studies, but to also get it from one of the most coveted scholarship programs in the country is the cherry on top.” said Afiq “I’d like to thank Maxis for giving me the opportunity to be part of their young talent pool and to better serve the nation through the MSEA programme.” said Tien Eu Min As part of our efforts to reduce energy consumption, our engineers work with selected third parties to develop a heat management system that reduces air-conditioning run time and thereby lower our power consumption. Our procurement process supports this effort by sourcing for green products such as the solar hybrid system and energy savings lighting system for our sites. The diesel hybrid system was deployed to replace the traditional generator set to increase the efficiency of energy and diesel consumption at sites. We have also re-evaluated the evaluation criteria for the award of major tenders. Apart from the products and services pricing, low energy consumption is also considered in the selection of a suitable vendor. Fulfilling Ethical Requirements Maxis’ emphasis and expectation of high ethical business standards in its Supply Chain Management process is reiterated with the requirement for all its active registered vendors to periodically acknowledge their commitment to the Maxis Code of Business Practice. This is to ensure our vendors continue to be committed to conduct business with Maxis in the most transparent and ethical manner. The evaluation and selection of vendors are also guided by vendors’ compliance to the technical and commercial requirements as specified in the Maxis Procurement Manual. In complying with the Personal Data Protection Act 2010 (PDPA) requirements, Maxis has embarked on an exercise of sending PDPA notices to all its active registered vendors to ensure observance and compliance to the PDPA requirements. Maxis also conducts anti-fraud workshops which involves speakers from various departments including Sourcing Department, to share the controls in place and real life fraud cases in their respective field of expertise. SUSTAINABILITY REPORT 2013/2014 31 creating a great place to work Developing and retaining the right people is critical to us. As we take our transformation journey from OK to great, the emphasis is strongly on creating a great place to work for great people. We are building leadership and capability in the skills most crucial to our business, particularly in diversifying our product and service offerings, especially in enterprise solutions and digital services. We work hard to retain our best people and to provide an environment that will motivate them to give their best and reach their full potential. CULTURE CHANGE AND NEW WAY OF WORKING CULTURE CHANGE AND NEW WAY OF WORKING Total Workforce by Employee Type, Gender and Age Jan 2013 Dec 2013 Jan 2014 Dec 2014 Total Number 3,117 2,901 Within Malaysia 3,117 2,901 Executive 2,155 2,035 Non-Executive 963 865 Full-Time 3,117 2,901 Part-Time 0 0 Permanent Staff 2,903 2,652 Non-Permanent Staff (Contract) 214 248 Female 1,416 1,286 Male 1,701 1,614 <30 909 805 31-40 1,519 1,345 41-50 608 679 >51 81 71 Female 10 12 Male 29 19 Employee by Age Group (%) (as of 31 December 2014) 3% 28% 23% <30 31-40 41-50 >51 46% Age Group Maxis Way represents who we are, what we do, how we work and how we want to be perceived, all with the aim of becoming a Company admired for excellence. Living the Maxis Way The “Maxis Way” is about who we are, what we do, how we work and how we want to be perceived. It is about being constantly inspired to become better as an individual, and as a team player, as well as embracing our new way of working together towards making us a company that is admired for excellence. Leadership Positions (SLT & Above) The Maxis Way was officially launched in February 2014, followed by the various programmes and activities meant to create awareness and educate employees in the Maxis Way. To inspire change and get employees to embrace the Maxis Way more swiftly, we conducted company-wide Living the Maxis Way (LMW) workshops. To ensure all employees are on the same page, we also developed and distributed a Maxis Way toolkit, which breaks the Maxis Way down into easily digestible bits to help everyone understand it better. Employee Turnover by Age Groups and Gender Jan 2013 Dec 2013 Jan 2014 Dec 2014 Within Malaysia 23.74% 17.91% Female 307 269 Male 433 369 Age Group 196 228 31-40 312 217 41-50 157 146 >51 75 47 SUSTAINABILITY REPORT 2013/2014 (as of 31 December 2014) 7% 23% <30 34 Employee Turnover by Age Group (%) <30 31-40 41-50 >51 34% 36% staff were selected as change agents to conduct the workshops (LMW) over 3,000 maxisians were trained in over 100 sessions Maxis Way Values of Engaged People Positive We are committed, driven, and change-oriented. passionate We are proud of our brand, obsessed about our customers and their experience, and are passionate about how we work. collaborative We are inclusive, team-oriented, and supportive of each other. SUSTAINABILITY REPORT 2013/2014 35 CULTURE CHANGE AND NEW WAY OF WORKING CULTURE CHANGE AND NEW WAY OF WORKING Employee Engagement - Collaboration And Having Fun @ Work Maxis people work hard, and have fun doing it. At Maxis, we are cognisant of the fact that creating a platform for social interaction amongst colleagues is important in fostering teamwork, loyalty and commitment. Apart from the usual employee events such as annual dinners, family days, festive gatherings and treasure hunts, we have also introduced initiatives to inject fun, competition and sports into our engagements. Informal meeting rooms facilitate good discussion between teams. Maxis’ redesigned office boasts an open space concept meant to promote collaboration. • Leadership Communications We also recognise that dialogues with leaders help people feel connected to the business. We made this happen through CEO Coffee Chats, quarterly divisional townhalls and briefings for the managers. The Mini Café is a central hub with a spacious and open layout that encourages connection through chance encounters. New Ways of Working We want Maxis to be a showcase a representation of a modern digital age company. The new way of working is characterised by surprising simplicity, where we work well together and have fun. Breaking Down Walls with Open Space Office Our redesigned office is an open space with clustered workstations. Employees can sit where they wish. Everyone, including the CEO, sits in the same open-plan space regardless of his or her role or job title. Laptops have replaced desktop PCs, mobile phones have replaced desk 36 SUSTAINABILITY REPORT 2013/2014 phones, wi-fi has replaced fixed broadband connections. We’ve also gone paperless for maximum efficiency at work. This work environment has resulted in a more engaged, productive workforce. Enterprise Social Network as Collaboration Tool We believe effective internal communication is two-way. Our Intranet, which is complemented by the enterprise social network Yammer, keeps employees up-to-date on company strategies, internal news and events, as well as provides videos from around Maxis and promotes constructive discussions. Managing Organisational Change In 2013, we refined our organisational structure to make it more agile and lean, streamlining our operations into four core areas: Consumer Business, Enterprise Solutions, Digital Services and Sales and Services. As part of the exercise, all roles were evaluated to re-align employee skill sets with our business priorities. Maxis provided support to help affected employees find new jobs either within the Company or externally as part of a Career Transition Scheme which Maxis undertook. • Superhero Event Celebrating the Frontliners • Family Day The event saw more than 1,520 of our frontline staff come together for a night of fun with the SLT and MMT, during which they had the opportunity to interact with the management and find out more about our network, products and services as well as business operations. Our employees enjoy a healthy and interactive social calendar courtesy of special events such as our annual Family Day to create camaraderie outside the office environment. SUSTAINABILITY REPORT 2013/2014 37 CULTURE CHANGE AND NEW WAY OF WORKING • Geekology • Maxis Wellness Month As a mobile technology company, Maxis encourages its employees to showcase their creativity and innovation as demonstrated by its first ever ‘Geekology’ Day. They were given a chance to come up with game-changing ideas related to technology for a chance to win cash prizes. With the aim to get employees fit and healthy, Maxis dedicated the entire month of June 2014 to wellness. This ranged from activities that pushed our employee’s physical fitness to the test, such as boot camp sessions - to a less intensive sports carnival which saw 373 participants and over 400 spectators involved in telematches, futsal, badminton, as well as exhilarating volleyball matches. TRAINING and DEVELOPMENT • Volunteering for Charities and Communities Our employees are encouraged to volunteer in Maxis-led community initiatives, and are given at least three days per year of work time for this purpose. Voice of Maxis We use our annual company-wide people survey, Voice of Maxis (VOM), to get a better understanding of our employees’ morale, satisfaction and engagement at Maxis. Employees are asked to give their feedback on communication, values, culture, leadership and work environment. For a company undergoing transformation, Maxis recorded healthy improvement its VOM score in 2014. Employee Engagement score in particular improved to 75% from 67% in 2013. Voice of Maxis 2014: Employee Engagement score improved significantly from 2013 Increase vs. 2013 Customer Focus 86 11 Communication82 12 Sustainable Engagement 6 82 Our Values, Our Culture 80 Supervision/Manager’s Effectiveness 7 75 75 Employee Engagement Score (%) 38 We conduct an annual analysis of learning needs across the business to identify priorities and ensure that learning plans support our business strategy. Our training arm, Maxis Academy, works with leading business schools and accredited external providers to develop and deliver the SUSTAINABILITY REPORT 2013/2014 training. With a competency-based blended learning approach, we aspire to increase the scope, quality and impact of learning and development. Overall Training Summary for 2013 and September 2014 Total Consolidated Training Hours Training Delivery Method No. of Learning Hours YTD Nov 2013 Total Learning Hours Per Staff Target Learning Hours Per Staff 2013 Instructor Led Training (ILT) 70,009.50 23.11 20.00 Web Based Training (WBT) 5,055.45 1.67 10.00 75,064.95 24.77 30.00 38,956.75 13.51 20.00 4,531.83 1.57 10.00 43,488.58 15.08 30.00 Total Learning Hours 2014 69 Instructor Led Training (ILT) 67 Web Based Training (WBT) 2011 In line with our commitment to human capital development in delivering quality learning to our employees, we also invested in online learning, coaching and mentoring by subject matter experts and senior leaders. 8 N = 2,576 (86% response rate) 71 At Maxis, we take pride in honing and developing our talent - whether it’s for young and vibrant individuals, or for identified future leaders of the organisation. 24 76 Employee Engagement Our long-term sustainability depends on us having the right people with the right skills to manage our network and continuously rethink our systems, processes and products. 2012 2013 2014 Total Learning Hours SUSTAINABILITY REPORT 2013/2014 39 TRAINING and DEVELOPMENT TRAINING and DEVELOPMENT Maxis received the Graduate Recruitment Award for having the Best Management Trainee/Graduate Programme, hosted by GradMalaysia and endorsed by TalentCorp. The Maxis Management Associate Programme (MMAP) is tailored to nurture and groom able young talents into future leaders. Management Associates were given the opportunity to share their Technical Expertise experience with the CTO over lunch. The Maxis Internship Programme Partnerships and Market Engagement This programme is open to Malaysian students, studying locally and overseas, who are interested to gain exposure in the telecommunications industry. In an effort to continuously engage with young talents, Maxis hosted high school and university students in our premises through various collaborations with universities and student bodies. These engagements included conducting career talks, business case challenges and visits to the Maxis Academy. In 2013, Maxis recruited 94 interns who were assigned to projects in line with their field of study. The programme exposed the interns to cross-functional projects, mini assignments and engagement activities. The students were given the opportunity to engage with Maxis senior leaders and be involved in projects sponsored by Maxis. Among the schools that Maxis hosted included: • Harvard Business School • Melbourne University • Swinburne University of Technology • Vellore Institute of Technology In 2013 and 2014, Maxis was voted as the leading graduate employer in Malaysia’s 100 Leading Graduate Employers Awards Ceremony for the telecommunications sector. In 2013, Maxis also received the Graduate Recruitment Award for having the Best Management Trainee/Graduate Programme, hosted by GradMalaysia and endorsed by TalentCorp. Our training academy aims to change mindsets and make learning fun, through a wide variety of customised business and professional development, leadership management, technical, sales and service and customer experience programmes. We want people to grow at Maxis and develop their careers in the Company, either through promotion or a change of role to broaden their experience. We 40 SUSTAINABILITY REPORT 2013/2014 also conduct quarterly Talent Reviews for senior leaders to identify highpotential leaders, match their skills to business needs and help individuals achieve their development goals. Maxis Management Associate Programme (MMAP) The MMAP is designed to provide its graduates with a holistic view of the business while being hands-on in customer intimacy, technical expertise, operational excellence and business impact. This two-year fast-track programme empowers the younger workforce to make a difference and become change agents for the organisation. MMAP empowers the younger workforce to make a difference and become change agents for the organisation. SUSTAINABILITY REPORT 2013/2014 41 ensuring health and safety benefits and rights Osh Contractor Safety Management Procedure • Highlights Maxis’ OSH policy, procedures and requirements. • Training programmes for internal (Maxis employees) and external (Contractors) workforce. • Quarterly audits on all contractors. • Quarterly communication sessions with all Safety and Health Officers. • Maintaining a good working relationship with the Department of Occupational Safety and Health (DOSH). • Ensuring compliance to all local legislations in relation to OSH i.e. Occupational Safety and Health Act (OSHA) 1994, Factories and Machinery Act (FMA) 1967 and its regulations. Contractor Safety and Health Construction Manual • Designed to guide contractors on the best practices for health and safety at worksites. It also provides the basic information needed on relevant laws and regulations within the construction industry. Separately, Maxis has also implemented several safety initiatives to inculcate and instill a safe working culture within the Company. These include: Maxis applies strict safety measures and guidelines to safeguard the welfare and interest of our employees. Maxis continuously emphasises that high standards of health and safety need to be constantly maintained. Employees, visitors, contractors as well as the public can rest assured that a safe and healthy working environment will be provided through the development of our Occupational Safety and Health Management System (OSHMS). This system is adopted through the Occupational Safety and Health Malaysian Standard 1722 that outlines the general guidelines towards the development of a sustainable health and safety culture in Maxis. While the OSHMS serves as a point of reference, we have also taken additional measures in cultivating this culture through the development of policy manuals as listed below: Occupational Safety and Health (OSH) Manual and Procedures • A documented system developed for the purpose of hazard prevention, performance monitoring and measurement guidelines aimed at highlighting awareness on potential risk and avenues to reduce/mitigate incidents. 42 SUSTAINABILITY REPORT 2013/2014 • Safety Inspection for Network related projects i.e. Installation, Upgrade, Maintenance and Survey. The table below describes statistics between January 2013 and June 2014 on activities/initiatives that were carried out: In 2014, a new benefit programme was introduced in line with the Maxis Way culture. Designed to be competitive with market benchmarks, the new plan is common to all Maxis employees and eliminates differentiated benefits based on grade and seniority. The new key benefit upgrades include: • Standardisation of annual leave to 20 days • Extended maternity leave of up to 120 days • Increased EPF contribution to 15% effective in 2015 • Simplified medical outpatient which allows direct access to Specialists and increased hospitalisation limit • Standardised device subsidy of RM1,500 Ethics, Anti-Corruption and Bribery Behaving responsibly is fundamental to our approach to business. Whether it’s with our customers, employees or suppliers, we must always do the right thing and act within the law. We have stringent measures in place to prevent improper conduct such as bribery, corruption and fraud. No. of Activities Safety Activities Jan - Dec 2013 Jan - June 2014 Training 24 11 Workforce Participation for Trainings 220 161 Safety Inspections 169 125 Contractors Documentation Audit 17 0* * Audit frequency has been amended from a quarterly basis to a half-yearly basis. Rate of injury and number of work-related fatalities: Fatalities Total Accidents Lost Time Accident Rate* Severity Rate** July 2013 - June 2014 0 1# 0.29 5.57 July 2012 - June 2013 0 0 0 0 Year * (1000 x no. of accidents)/average workers per year. ** (1,000,000 x LTI)/man hour. # Slip and fall incident at Lift Lobby due to wet floor condition involving Maxis employee with 44 days of LTI. Building Owner is responsible for the maintenance and cleanliness of the area. All evidence have been provided to DOSH. SUSTAINABILITY REPORT 2013/2014 43 advocating environmentally friendly practices The core of our environmentally friendly initiatives involves increasing the energy efficiency of our network facilities as well as reducing and managing our carbon emissions. This is where we can make the biggest difference to our environmental footprint. Additionally, this year we’ve also implemented a paperless policy throughout our headquarters in Menara Maxis. advocating environmentally friendly praCtices advocating environmentally friendly pratices advocating environmentally friendly praCtices Average Electricity Cost Per Physical Site (At Current Rate of RM0,509/kWh**) This is detailed in the following three key areas: 1) Resource Efficiency 2) Carbon Management 3) Waste Management Resource Efficiency Increasing the energy efficiency of our network facilities has been central to our environmentally friendly initiatives. We have improved our energy usage over the years by adopting various energy efficiency solutions at our base stations and Technical Operations Centres (TOC), which include the installation of free cooling systems, energy efficient airconditioners and LED lighting. Additionally, we have also been exploring the use of alternative energy, with 44 of our base stations now operating on solar power. 305 300 295 295 7700 287 7600 290 285 7500 280 7400 275 2012 Physical Sites (2G and 3G) 2013 2014* 12,470 11,841 2012 2014 2013 We have managed to effectively manage our carbon emissions by embarking on a strategy to modernise our 2G and 3G legacy networks, introducing energy efficient “Single RAN” or multi-technology radio platforms. We have also expedited replacing diesel power with solar power at remote base stations and advocate the sharing of networks so that resources are not duplicated. Energy Usage (GWh) Number of Sites 7800 13,073 Carbon Management Number of Sites vs. Energy Usage 301 13,200 13,000 12,800 12,600 12,400 12,200 12,000 11,800 11,600 11,400 11,200 11,000 ** Latest electricity tariff rate as per time of reporting The chart below shows the total number of physical sites (2G and 3G) against our network energy usage over the past three years. Although we are building more sites year-on-year, our effective energy usage has decreased with the implementation of energy efficiency initiatives. 7900 RM per annum We recognise that the creation of our products and services may have an impact on the environment, which is why we’re doing our best to promote environmentally friendly practices both externally and within the organisation. The following chart shows comparison of average electricity cost per physical site for the past three years, which sees a drop of about 5%, year-on-year. This signifies better efficiency in electricity usage at our sites. The core of our environmentally friendly initiatives involves increasing the energy efficiency of our network facilities as well as reducing and managing our carbon emissions. This year, we’ve also implemented a paperless policy throughout our headquarters in Menara Maxis. As of June 2014, 61.7% of our physical base station sites are shared with other operators and 21.3% active 3G Radio Access Network (RAN) sharing with UMobile. With these initiatives in place, we have recorded a cumulative reduction of 56,052 tonnes of carbon dioxide (CO2) emissions from 2009 to 2014, resulting in a total reduction of about 6% over five years. These results are shown in the charts below: Network GHG Emission Performance (Tonnes CO2e) 250,000 200,000 176,672 180,086 193,911 202,434 199,122 56,052 193,956 150,000 100,000 50,000 Total Network Energy Usage 2009 2010 2011 2012 2013 70,000 60,000 50,000 40,000 30,000 20,000 10,000 2014 Actual CO2 emission Expected CO2 emission (2009 baseline projection) Cummulative CO2 emission reduction 46 SUSTAINABILITY REPORT 2013/2014 SUSTAINABILITY REPORT 2013/2014 47 advocating environmentally friendly practices The chart below shows annual CO2 emissions per Base Transceiver Station over the past three years, which shows a reduction of some 4% year-on-year. This is in accordance with our overall improvement in energy efficiency across the network. 27.50 27.00 Tonnes CO2e 27.14 26.00 26.13 25.50 25.24 25.00 1. Product certification 2.Performance testing 3.Recycled content and renewable resource 4. Waste reduction 5. Energy and resource efficiency 6. Hazardous materials and substances 7.Packaging 8. Supplier sustainable attributes 24.50 24.00 2012 2014 2013 Maxis Takes First Step Towards Green Procurement Maxis has introduced the Sustainable Product Purchasing checklist into our contract requirements in 2014. This is meant to provide product visibility in terms of environmental and human health concerns while highlighting sustainable activities of our vendors. It is our responsibility to search for high quality products at competitive prices with minimal adverse impacts to the environment. The areas considered in the checklist covers: Average CO2 Emission Per Base Station 26.50 gri content index Waste Management WWF Paperless Initiative Internally, we are pleased to report that through improvements in our processes, we have reduced paper usage for our day-to day administrative operations. This does not only reduce waste, but resulted in cost savings in our overheads as well. Maxis has also extended its paperless initiatives to our customers. While we have, in the past, encouraged our customers to opt for our e-billing service by taking RM5 off their total bill, we have taken a step further with a three-month campaign with the World Wide Fund for Nature (WWF). From October to December 2014, we introduced an e-billing initiative - with every conversion, RM2 was donated to WWF-Malaysia as part of their reforestation project in Ulu Segama, Sabah. Quantity (Ream) Per Ream (RM) Total (RM) A4 80gsm Paper - Klang Valley Locations (2013) 25,160 7.5 188,700.00 A4 80gsm Paper Menara Maxis Only (2013) 7,200 7.5 54,000.00 Reduction noticed in the last 3 months (less 10%) 720 Estimated reduction over the next 1 year 6,480 5,400.00 In line with our efforts to maintain a paperless workplace, all employees are also required to clear their workstations at the end of the day, especially any printed documents. SUSTAINABILITY REPORT 2013/2014 The guidelines contain principles and performance indicators for reporting. More than 3,000 organisations have used the guidelines to produce their sustainability reports. The latest version, G3.1 was launched in March 2011, and is used for this report. Description Page Remark 1.1 Statement from the most senior decision-maker of the organisation. 4-5 Chairman’s Statement 1.2 Description of key impacts, risks, and opportunities. 4-5, 6-9 Chairman’s Statement, CEO’s Statement 2.1 Name of the organisation. 3 Who We Are 2.2 Primary brands, products, and/or services. 3 Who We Are 2.3 Operational structure of the organisation, including main divisions, operating companies, subsidiaries, and joint ventures. 12 Corporate Structure 2.4 Location of organisation’s headquarters. Back Cover 2.5 Number of countries where the organisation operates, and names of countries with either major operations or that are specifically relevant to the sustainability issues covered in the report. 60 About the Report 2.6 Nature of ownership and legal form. 12 Ownership 2.7 Markets served (including geographic breakdown, sectors served, and types of customers/beneficiaries). 3 Who We Are 2.8 Scale of the reporting organisation. 13 Financial Highlights 2.9 Significant changes during the reporting period regarding size, structure, or ownership. 2.10 Awards received in the reporting period. 10-11 Awards and Recognition 3.1 Reporting period (e.g., fiscal/ calendar year) for information provided. 60 About the Report 3.2 Date of most recent previous report (if any). 60 About the Report 48,600.00 This year, we have also further reinforced the concept of a paperless workplace. For instance, the introduction of mobile workstations at our headquarters in Menara Maxis makes it challenging for employees to store paper - instead, scanned documents are encouraged, greatly reducing the need to print and use paper unnecessarily. In addition, the number of printers per floor have also been halved, from four to two. 48 Our report is aligned to the Global Reporting Initiative (GRI), the leading guidelines for sustainability reporting. The GRI is a multistakeholder organisation, seeking to make social, environmental and governance reporting as robust as financial reporting. Profile Disclosure A paperless workplace means employees are expected to maintain a clean workstation. SUSTAINABILITY REPORT 2013/2014 49 gri content index gri content index Profile Disclosure Description Page Remark Profile Disclosure 3.3 Reporting cycle (annual, biennial, etc.) 60 About the Report 4.6 3.4 Contact point for questions regarding the report or its contents. 60 About the Report Processes in place for the highest governance body to ensure conflicts of interest are avoided. 3.5 Process for defining report content. 60 About the Report 4.7 3.6 Boundary of the report (e.g., countries, divisions, subsidiaries, leased facilities, joint ventures, suppliers). See GRI Boundary Protocol for further guidance. 60 About the Report Process for determining the composition, qualifications, and expertise of the members of the highest governance body and its committees, including any consideration of gender and other indicators of diversity. 4.8 3.7 State any specific limitations on the scope or boundary of the report (see completeness principle for explanation of scope). 60 About the Report 3.8 Basis for reporting on joint ventures, subsidiaries, leased facilities, outsourced operations, and other entities that can significantly affect comparability from period to period and/or between organisations. 3.9 Data measurement techniques and the bases of calculations, including assumptions and techniques underlying estimations applied to the compilation of the Indicators and other information in the report. Explain any decisions not to apply, or to substantially diverge from, the GRI Indicator Protocols. 3.10 Explanation of the effect of any re-statements of information provided in earlier reports, and the reasons for such restatement (e.g.,mergers/acquisitions, change of base years/ periods, nature of business, measurement methods). 3.11 Significant changes from previous reporting periods in the scope, boundary, or measurement methods applied in the report. 3.12 Table identifying the location of the Standard Disclosures in the report. 3.13 Policy and current practice with regard to seeking external assurance for the report. 4.1 Governance structure of the organisation, including committees under the highest governance body responsible for specific tasks, such as setting strategy or organisational oversight. 49 GRI G3.1 Index 16 CR Governance Description Page Remark Internally developed statements of mission or values, codes of conduct, and principles relevant to economic, environmental, and social performance and the status of their implementation. 14 Shaping a Sustainable Future 4.9 Procedures of the highest governance body for overseeing the organisation’s identification and management of economic, environmental, and social performance, including relevant risks and opportunities, and adherence or compliance with internationally agreed standards, codes of conduct, and principles. 16 CR Governance 4.10 Processes for evaluating the highest governance body’s own performance, particularly with respect to economic, environmental, and social performance. 16 CR Governance 4.11 Explanation of whether and how the precautionary approach or principle is addressed by the organisation. 17 Anti-Corruption, Whistle-Blowing Policy, Personal Data Protection Act, Network Deployment 4.12 Externally developed economic, environmental, and social charters, principles, or other initiatives to which the organisation subscribes or endorses. 25 Engaging with Stakeholders for Customer Insights 4.13 Memberships in associations (such as industry associations) and/or national/international advocacy organisations in which the organisation: * Has positions in governance bodies; * Participates in projects or committees; * Provides substantive funding beyond routine membership dues; or * Views membership as strategic. 25 Engaging with Stakeholders for Customer Insights 4.14 List of stakeholder groups engaged by the organisation. 4.15 Basis for identification and selection of stakeholders with whom to engage. 37 Partially - Stakeholders Engagement Stakeholders Engagement 4.2 Indicate whether the Chair of the highest governance body is also an executive officer. 4.16 37 Stakeholders Engagement 4.3 For organisations that have a unitary board structure, state the number and gender of members of the highest governance body that are independent and/or non-executive members. Approaches to stakeholder engagement, including frequency of engagement by type and by stakeholder group. 4.17 37 Stakeholders Engagement 4.4 Mechanisms for shareholders and employees to provide recommendations or direction to the highest governance body. Key topics and concerns that have been raised through stakeholder engagement, and how the organisation has responded to those key topics and concerns, including through its reporting. 4.5 Linkage between compensation for members of the highest governance body, senior managers, and executives (including departure arrangements), and the organisation’s performance (including social and environmental performance). 50 SUSTAINABILITY REPORT 2013/2014 SUSTAINABILITY REPORT 2013/2014 51 gri content index gri content index Standard Disclosures Part III: Performance Indicators PERFORMANCE INDICATOR PERFORMANCE INDICATOR DESCRIPTION PAGE REMARK DESCRIPTION Water Economic Performance EC2 REMARK ECONOMIC ECONOMIC EC1 PAGE Direct economic value generated and distributed, including revenues, operating costs, employee compensation, donations and other community investments, retained earnings, and payments to capital providers and governments. 19-33 Financial implications and other risks and opportunities for the organisation’s activities due to climate change. 45-48 EN9 Water sources significantly affected by withdrawal of water. Our direct water usage is limited to standard office use and we do not consider this a material issue EN10 Percentage and total volume of water recycled and reused. Our direct water usage is limited to standard office use and we do not consider this a material issue EN11 Location and size of land owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity value outside protected areas. Our impact on biodiversity is limited to land use for base stations and office operations. We do not consider this a material impact Becoming an Operator of Choice Advocating Environmentally Friendly Practices Market Presence EC6 Policy, practices, and proportion of spending on locally-based suppliers at significant locations of operation. 19-33 Becoming an Operator of Choice EC7 Procedures for local hiring and proportion of senior management hired from the local community at significant locations of operation. 19-33 Becoming an Operator of Choice EN12 Description of significant impacts of activities, products and services on biodiversity in protected areas and areas of high biodiversity value outside protected areas. 19-33 Becoming an Operator of Choice Our impact on biodiversity is limited to land use for base stations and office operations. We do not consider this a material impact EN13 Habitats protected or restored. Our impact on biodiversity is limited to land use for base stations and office operations. We do not consider this a material impact EN14 Strategies, current actions and future plans for managing impacts on biodiversity. Our impact on biodiversity is limited to land use for base stations and office operations. We do not consider this a material impact EN15 Number of IUCN Red List species and national conservation list species with habitats in areas affected by operations, by level of extinction risk. Our impact on biodiversity is limited to land use for base stations and office operations. We do not consider this a material impact Indirect Economic Impacts EC8 Development and impact of infrastructure investments and services provided primarily for public benefit through commercial, in-kind or pro bono engagement. Not reported - EC3, EC4, EC5, EC9. Materials EN1 Materials used by weight or volume. 45-48 Partially - Advocating Environmentally Friendly Practices Energy EN3 Direct energy consumption by primary energy source. 45-48 Advocating Environmentally Friendly Practices EN4 Indirect energy consumption by primary source. 45-48 Advocating Environmentally Friendly Practices EN5 Energy saved due to conservation and efficiency improvements. 45-48 Advocating Environmentally Friendly Practices EN6 Initiatives to provide energy-efficient or renewable energy based products and services and reductions in energy requirements as a result of these initiatives. 45-48 Advocating Environmentally Friendly Practices EN7 Initiatives to reduce indirect energy consumption and reductions achieved. 45-48 Advocating Environmentally Friendly Practices EN8 Total water withdrawal by source. 45-48 Our direct water usage is limited to standard office use and we do not consider this a material issue 52 SUSTAINABILITY REPORT 2013/2014 SUSTAINABILITY REPORT 2013/2014 53 gri content index PERFORMANCE INDICATOR gri content index DESCRIPTION PAGE REMARK PERFORMANCE INDICATOR DESCRIPTION EN16 Total direct and indirect greenhouse gas emissions by weight. 45-48 Advocating Environmentally Friendly Practices EN18 Initiatives to reduce greenhouse gas emissions and reductions achieved. 45-48 Advocating Environmentally Friendly Practices EN21 Total water discharge by quality and destination. Our direct water usage is limited to standard office use and we do not consider this material issue LA13 Composition of governance bodies and breakdown of employees per employee category according to gender, age group, minority group membership and other indicators of diversity. SOCIAL: HUMAN RIGHTS Indigenous Rights Monetary value of significant fines and total number of nonmonetary sanctions for non-compliance with environmental laws and regulations. No significant fines or nonmonetary sanction in the reporting period HR9 Total number of incidents of violations involving rights of indigenous people and actions taken. Not reported - EN2, EN17, EN19, EN20, EN22, EN23, EN24, EN25, EN26, EN27, EN29, EN30. Not reported - HR1, HR2, HR3, HR4, HR5, HR6, HR7, HR8, HR10, HR11. SOCIAL: LABOUR PRACTICES AND DECENT WORK SOCIAL: SOCIETY LA1 Total workforce by employment type, employment contract and region, broken down by gender. 33-42 Creating a Great Place to Work LA2 Total number and rate of new employee hires and employee turnover by age group, gender and region. 33-42 Creating a Great Place to Work LA3 Benefits provided to full-time employees that are not provided to temporary or part-time employees, by major operations. 33-42 Creating a Great Place to Work Percentage of total workforce represented in formal joint management-worker health and safety committees that help monitor and advise on occupational health and safety programmes. 42 Partially - Ensuring Health and Safety Rates of injury, occupational diseases, lost days, and absenteeism and number of work-related fatalities by region and by gender. 42 SO1 Percentage of operations with implemented local community engagement, impact assessments, and development programmes. 29 Making a Difference to the Community SO9 Operations with significant potential or actual negative impacts on local communities. 20 Network Deployment SO10 Prevention and mitigation measures implemented in operations with significant potential or actual negative impacts on local communities. 20 Network Deployment Occupational Health and Safety Public Policy SO5 Public policy positions and participation in public policy development and lobbying. Engaging with Stakeholders for Customer Insights Anti-Competitive Behaviour Ensuring Health and Safety SO7 Total number of legal actions for anti-competitive behaviour, anti-trust and monopoly practices and their outcomes. Training and Education No legal actions in reporting this period Compliance LA10 Average hours of training per year per employee by gender and by employee category. 33-42 Creating a Great Place to Work LA11 Programmes for skills management and lifelong learning that support the continued employability of employees and assist them in managing career endings. 33-42 Creating a Great Place to Work LA12 Percentage of employees receiving regular performance and career development reviews, by gender. 33-42 Creating a Great Place to Work SUSTAINABILITY REPORT 2013/2014 We have not identified activities within our operations which may impose directly on rights of indigenous people Local Communities Employment 54 Creating a Great Place to Work Not reported - LA4, LA5, LA8, LA9, LA14, LA15. Compliance LA7 33-42 Diversity and Equal Opportunity Emissions, Effluents and Waste LA6 REMARK ECONOMIC ECONOMIC EN28 PAGE SO8 Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with laws and regulations. No significant fines or nonmonetary sanction for noncompliance in the reporting period Not reported - S02, S03, S04, S06. SUSTAINABILITY REPORT 2013/2014 55 gri content index PERFORMANCE INDICATOR gri content index DESCRIPTION PAGE REMARK SOCIAL: PRODUCT RESPONSIBILITY DESCRIPTION PAGE REMARK 20 In Malaysia, telecommunications companies are required to be compliant to the electromagnetic exposure standards and guidelines of the Malaysian Communications and Multimedia Commission (MCMC) who are guided by ICNIRP standards. Reported in Network Deployment 20 Maxis has the Largest High Speed Network Footprint TELECOMMUNICATIONS SECTOR SUPPLEMENT (TSS) Customer Health and Safety PR2 PERFORMANCE INDICATOR INTERNAL OPERATIONS Total number of incidents of non-compliance with regulations and voluntary codes concerning health and safety impacts of products and services during their life cycle, by type of outcomes. No non-compliances in the reporting period Health and Safety IO5 Compliance with ICNIRP (International Commission on Non-Ionising Radiation Protection) guidelines on exposure to radiofrequency (RF) emissions from base stations. Product and Service Labelling PR4 Total number of incidents of non-compliance with regulations and voluntary codes concerning product and service information and labelling, by type of outcomes. PR5 Practices related to customer satisfaction, including results of surveys measuring customer satisfaction. No non-compliances in the reporting period 23 Raising the Bar in Customer Service Marketing Communications PR7 Total number of incidents of non-compliance with regulations and voluntary codes concerning marketing communications, including advertising, promotion, and sponsorship by type of outcomes. No non-compliances in the reporting period Infrastructure IO8 Number and percentage of stand-alone sites, shared sites, and sites on existing structures. Not reported - IO1, IO2, IO4, IO6, IO7. Customer Privacy PR8 Total number of substantiated complaints regarding breaches of customer privacy and losses of customer data. No non-compliances in the reporting period Compliance PR9 Monetary value of significant fines for non-compliance with laws and regulations concerning the provision and use of products and services. No non-compliances in the reporting period PROVIDING ACCESS Access to Telecommunications Products and Services: Bridging the Digital Divide PA1 Policies and practices to enable the deployment of telecommunications infrastructure and access to telecommunications products and services in remote and low population density areas. Include an explanation of business models applied. 26 Providing Access to Underserved Communities PA2 Policies and practices to overcome barriers for access and use of telecommunications products and services including: language, culture, illiteracy, lack of education, income, disabilities, and age. Include an explanation of business models applied. 26 Maxis Cyberkids Programme Providing Access to Underserved Communities PA3 Policies and practices to ensure availability and reliability of telecommunications products and services and quantify, where possible, for specified time periods and locations of down time. 19-33 Becoming an Operator of Choice PA4 Quantify the level of availability of telecommunications products and services in areas where the organisation operates. Examples include: customer numbers/market share, addressable market, percentage of population covered, percentage of land covered. 19-33 Becoming an Operator of Choice Not reported - PR1, PR3, PR6. TELECOMMUNICATIONS SECTOR SUPPLEMENT (TSS) INTERNAL OPERATIONS Health and Safety IO3 56 Practices to ensure health and safety of field personnel involved in the installation, operation and maintenance of masts, base stations, laying cables and other outside plant. Related health and safety issues include working at heights, electric shock, exposure to EMF and radio frequency fields, and exposure to hazardous chemicals. SUSTAINABILITY REPORT 2013/2014 42 Ensuring Health and Safety SUSTAINABILITY REPORT 2013/2014 57 gri content index PERFORMANCE INDICATOR materiality analysis DESCRIPTION PAGE REMARK Maxis’ Annual Operating planning exercise identify strategic and operational priorities that are most important to the sustainability of our business. PROVIDING ACCESS PA5 WHAT’S IMPORTANT TO US Number and types of telecommunications products and services provided to and used by low and no income sectors of the population. Provide definitions selected. Include explanation of approach to pricing, illustrated with examples such as price per minute of dialogue/bit of data transfer in various remote, poor or low population density areas. 20 Providing Access to Underserved Communities These are the five key areas of focus for us: HAPPY CUSTOMERS Our top priority is to create as many LIKE moments as possible for our customers. By delivering meaningful solutions and embedding unmatched customer experiences into our processes, we aim to deliver on our brand promises to our customers. BEST NETWORK Customer Relations PA8 Policies and practices to publicly communicate on MF related issues. Include information provided at points of sales material. 20 Partially - Network Deployment We believe network coverage and quality are real differentiators for us and our customers. We are continually expanding the reach of our modernised network, upgrading it to increase speed, consistency, and reliability of service. We are also rapidly expanding our superfast 4G network. PA9 Total amount invested in programmes and activities in electromagnetic field research. Include description of programmes currently contributed to and funded by the reporting organisation. 20 Partially - Network Deployment BEST PEOPLE Initiatives to inform customers about product features and applications that will promote responsible, efficient, cost effective and environmentally preferable use. 20 PA11 We need the best people to be able to deliver. That’s why attracting, retaining and developing talent is another key priority for us. Besides investing in growing and deepening our talents’ skills set, we have refreshed our communication tools and reinvigorated our work environment into one that encourages openness, fun and collaboration. Waste Management We are rising to the challenge of constant global pressures by thinking out-of-the box when creating innovative solutions. We are always building new products and services and innovative digital services that are relevant and meaningful in an increasingly digitalised world. Not reported - PA6, PA7, PA10. STRATEGIC GOVERNMENT AND INVESTOR RELATIONS TECHNOLOGY APPLICATIONS RESOURCE EFFICIENCY TA1 Provide examples of the resource efficiency of telecommunications products and services delivered. 19-31 Becoming an Operator of Choice TA2 Provide examples of telecommunications products, services and applications that have the potential to replace physical objects (e.g. a telephone book by a database on the web or travel by videoconferencing). 19-31 Becoming an Operator of Choice Disclose any measures of transport and/or resource changes of customer use of the telecommunications products and services listed above. Provide some indication of scale, market size or potential savings. 19-31 TA3 INNOVATIVE SOLUTIONS We regularly engage with the Ministry of Communications and Multimedia and the Malaysian Communications and Multimedia Commission to shape regulatory policy. We also engage other regulatory authorities and actively participate in various industry forums such as the Communications and Multimedia Consumer Forum of Malaysia (CFM), Malaysian Access Forum Berhad and Malaysian Technical Standards Forum Berhad. This way, we can participate in the self-regulatory initiatives of the industry forums to ensure an acceptable solution for the various stakeholders. The report covers the initiatives that we have undertaken with the above five key areas as strategic thrusts. Becoming an Operator of Choice Not reported - TA4, TA5. 58 SUSTAINABILITY REPORT 2013/2014 SUSTAINABILITY REPORT 2013/2014 59 about the report Reporting Period This is Maxis’ third sustainability report. The report covers the 24 months period from 1 January 2013 to 31 December 2014. Maxis’ last sustainability report covered the 18 months period from 1 July 2011 to 31 December 2012. Reporting Scope Our report covers the operations of Maxis Berhad in Malaysia. This sustainability report discloses our activities in 2013 and 2014, detailing the initiatives that have been undertaken in the marketplace, workplace, community and environment. This report is to be read alongside our annual report for a more comprehensive view of the Company’s overall financial and non-financial performance. Reporting Framework Our report is aligned to the Global Reporting Initiative (GRI), the leading guidelines for sustainability reporting. We used GRI’s G3.1 guidelines in preparing this report. We are also guided by Bursa Malaysia’s Corporate Responsibility Guidelines. We believe these best practices reflect and capture our commitment to Corporate Responsibility (CR). The report is available to all stakeholders from our website www.maxis.com.my. For further information and comments, please contact: MARIAM BEVI BATCHA Head, Corporate Affairs Maxis Berhad Level 24 Menara Maxis Kuala Lumpur City Centre Off Jalan Ampang 50088 Kuala Lumpur T : 603 2330 7000 E : corporateaffairs@maxis.com.my W : maxis.com.my 60 SUSTAINABILITY REPORT 2013/2014 Maxis Berhad (867573-A) Level 18, Menara Maxis Kuala Lumpur City Centre Off Jalan Ampang 50088 Kuala Lumpur maxis.com.my