FIMA CORPORATION BERHAD ANNUAL REPORT 2020

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Fima CORPORATION Berhad (197401004110) (21185-P) • Annual Report 2020 67
Governance
Our Approach
Stakeholders are putting increased emphasis on businesses to meet
the corporate responsibility and sustainability standards, which is also
reflected in consumer behaviour and legislative requirements. To meet
these expectations and achieve long-term success and sustainable growth,
we are committed to undertake responsible business practice through
good governance which is supported by dedicated policies, resource and
operational efficiency and being accountable for our actions.
Governance
Many of our activities are highly regulated by laws and regulations
relating to health, safety, environment and community impacts. We are
committed to complying with the laws and regulations of the countries in
which we conduct business and, where applicable, to exceeding legal and
other requirements that are less stringent than our own. We believe high
governance standards are integral to ensuring the Group’s future viability
and maintaining our social license to operate.
We have a comprehensive system of stewardship and accountability that
meets the requirements of all applicable rules, regulations, standards and
internal and external policies.
Our diverse and highly engaged Board of Directors brings a range of
viewpoints and deep expertise that helps ensure effective oversight of
our strategic priorities and operations, having regard to the interests of
shareholders, customers, suppliers, and the wider community. The Board
is supported by dedicated Board committees, each with its own terms of
reference setting out its roles and responsibility. The Group Sustainability
Committee steers our sustainability activities which is chaired by a
Senior Independent Non-Executive Director, thus ensuring that we have
Board-level oversight of the critical sustainability issues affecting the
business and how they should be managed. At the management level,
the Heads of Division comprises the Group’s most senior executives.
There is a delegation of authority framework that clearly outlines those
matters delegated to the Managing Director and other members of senior
management. Besides, ad-hoc committees are established to deal with
particular sets of ongoing issues.
The business units are also responsible for adopting sustainability
strategies to their operating needs, as well as providing the resources
needed for its implementation. They align their brands, technologies and
sites involved in sustainability that is in line with the specific challenges
and priorities of their business portfolio. Our suppliers and contractors are
also required to observe the Group’s commitments on issues such as health
and safety, environment, human rights and local labour laws.
The Corporate Governance Overview section can be read in our Annual
Report and website at
We require all our business units to implement an appropriate level of risk
management to ensure compliance with all relevant legislation, health,
safety and environment policies, overriding business principles and Group
policies taking into account business needs and local circumstances.
Each business has developed and documented policies and procedures
to comply with the minimum control standards established over specified
processes, including methods to mitigate risk, monitoring compliance and
taking corrective action. Further details of our risk management can be
found in the Statement on Risk Management and Internal Control section in
the Annual Report.
Responsible business practices
The economic returns created by responsible and sustainable business
practices benefit a broad range of stakeholders. This includes the provision
of employment to over 1,700 people in 2 countries. In addition to corporate
income taxes, the companies within the Group pay many other taxes,
including social security contributions on the wages of its employees,
SST, customs duties and property taxes. All these taxes are a significant
source of funding for public services by governmental institutions. We
view the fulfilment of our tax obligations as part of the process of creating
sustainable value for all our stakeholders.