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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

http://www.fima.com.my/corporate-governance.html.

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.