The group’s main divisions are utilities, cement manufacturing, construction contracting, operation & maintenance activities, property development and investment, hotel development and management, IT and E-commerce initiatives, operating mainly in Malaysia, United Kingdom and Singapore (YET, 2013). YET also provides carbon consulting service through Clean Development Mechanism (YET, 2012). The company is expanding its Real Estate Investment Trust (REID) portfolio with properties located at Koala Lump, Orchard Road in Singapore, Japan and Australia (YET, 2012).
Although YET is an innovative blue-chip company emphasizing on blue ocean treated to create a new market, they still have competitors. Local competitors include Teenage National Bertha, Gamut Bertha, JIM Corporation Bertha and Melanoma Bad. Foreign competitors are Gal Energy Ltd in Australia, National Grid Pal in United Kingdom, and Teammates Holdings in Singapore. 2. 0 Corporate Social Responsibility Practices at YET Corporation Bertha 2. 1 Marketplace 1 . Corporate governance Policy of Corporate Governance is yet to be included in the annual report.
A charter will be adopted at a later year. There are 13 directors, with 9 being executive directors and 4 independent non-executive directors. There are 2 women representatives of whom are both executive directors and daughters of the executive chairman. Board’s remuneration is decided by reviewing the performance of the individuals and the Group. Directors do not participate in decision making on their remuneration, and directors’ fees are approved by shareholders during Annual General Meeting (GM).
Risk Management Framework is included in its Statement on Risk Management and Internal Control. They have identified main financial risks, such as market risk, credit risk, liquidity risk and capital risk. Regular risk review analysis is carried out. The company disclosed that it recommends re-appointment of all Independent Non Executive Directors, although the code advises that they should not hold office for more than nine years. 2. Corporate Social Responsibility (CARS) Management or Reporting YET has a sustainability framework with four main focuses.
However, the sustainability mission is not clearly stated. This report adopted sustainability reporting frameworks and guidelines, Bursa Malaysia CARS Framework and COCA Malaysia Sustainability Reporting Guidelines for Malaysian Companies. The financial statements are audited by HAL Leer Lump. For sustainability report, YET obtained opinions from specialists and experts in the particular field, such as Sir Jonathan Portrait, founder director of Forum for the Future, and Brett Jeans, President and CEO of RARE, a United States-based conservation group. . Stakeholder Engagement YET engages with shareholders and stakeholders through various communication platforms such as Annual General Meeting, Group Sustainability Committee meeting, employee training, customer satisfaction surveys and henceforth. 4. Procurement policies YET has a policy of purchasing materials from locally based suppliers whenever Seibel to support local industries and reduce transportation related emissions. 5. Product Responsibility YET secures products and services standards by maintaining high standard of quality control.
Fourteen subsidiaries have ISO 9001:2008 Quality Management System certification, while YET Power Services Sad Bad has attained ISO 270012005 Information Security Management System to ensure customer privacy. 2. 2 Environment 1. Environmental policy YET is committed to cut down their carbon footprint, increase energy efficiency and reduce energy consumption through investing in renewable energy. 2. Measurement systems YET Powerlessly in Singapore has a carbon management programmer which constantly monitors their carbon footprint.
Wishes Water in United Kingdom also has a carbon management strategy on emissions avoidance, energy efficiency, renewable energy generation, technology of recycling sludge for use in the agricultural sector and for power generation. However, the measurements used are not disclosed. Eleven subsidiaries are accredited ISO 14001 :2004 Environmental Management System. ISO 50001 :2011 Energy Management System is obtained by Appear-Hangdog Semen Sad Bad, a cement plant, and ND YET Power Services’ PIT Hathaway Timer, a power station, to use and manage energy efficiently.
Water intensity is used to measure water consumption in YET Powerlessly. It is the net water consumed per unit of energy output, and proportion of types of water used for operation. Management system for waste production and management is outlined in an internal Environmental Policy, and industrial waste generated and reused is recorded. 3. Targets for Improvement & Significant initiatives YET has signed a series of Climate Communique©s, especially the Carbon Price Communique©, which advocate transparent and uniform carbon pricing.
YET Construction uses green materials and methodologies to encourage sustainable living through their projects. By doing so, it has been awarded Green and Gracious Builder Award by Singapore Building and Construction Authority. In order to reduce wasted heat, Waste Heat Recovery Power Generation project has been initiated in China by YET Cement and YET Power Services, saves electricity power, coals and reduced greenhouse gases. It was recognized by Hangout City Green Project Excellence Award for Excellent Emissions Reduction in 201 1 .
YET Powerlessly in Singapore has evolved from using freshwater sources to an n-house desalination plant which provide 90% of the plant’s water consumption. IRS principle (Reduce, Reuse and Recycle) is the ground rule for all subsidiaries. Recyclable hazardous waste such as used batteries is recycled, while non- recyclable chemical and contaminated wastes are disposed by licensed waste disposal contractor. YET Power Services goes paperless by using IBM Lotus Notes, which manage information, assessment and management systems electronically. 4.
Company’s impact on biodiversity, environmental impact assessments PIT YET Jaw Timer power station in Indonesia preserves biodiversity wrought consistently monitoring discharge water by external laboratory, carrying out seawater quality and seawater biota survey. A mangrove and reforestation programmer is also established since 2011 to improve water quality, prevent soil erosion and as a barrier against tidal waves. Gay Island Resort Marine Centre is set up to sustain and promote healthy marine life in Tune Abdul Raman Marine Park in Saba. It serves as a rescue and research centre for turtle and other marine biodiversity. . 3 Workplace 1. Health & Safety (H&S) issues H&S Committee of YET Corporation Bertha follows the standard of SHOOS 8001 : 2007 Occupational Health & Safety Management System. Ten subsidiaries have obtained certifications for the system. Employees are required to attend training programs on handling H&S issues. The H&S policy documentations are regularly reviewed to ensure best practice. Wishes Water uses media to educate employees including intranet pages, use of source, TV station, staff handbook, toolbox talks, DVD’s and safety forums. 2.
Human capital development YET held numerous programs for their employees to upgrade their competencies such as structured on-the-job exposure, mentoring or coaching and job rotation. Employees’ formal classroom trainings, workshops and seminars are held too. 3. Work-life balance Under the Flexi Start Scheme, eligible staffs can have the flexibility to start work later or earlier to cater to their family and personal commitments. The Vibrancy Club regularly organizes recreational activities like sport competitions, yoga and Palates workshops, Dragon Boat Race, Fatal Challenge, fishing and durian tour for staff and their families.
Sporting goods voucher and holiday accommodation schemes were drawn from the Vibrancy Trust Fund for staff. In terms of health are, 1 80 staff participated in the annual health screening exercise which was partially subsidized by the company. Employees Provident Fund is contributed by YET according to statutory percentage based on employees’ salary. 4. Diversity in the workplace YET has employees from all over the world with different ethnics and cultures to run a diversified global operation. E-MASS provides equal career growth opportunities for both gender.
Now, there are 5 women leaders in middle and senior management positions. The company adopts merit-based recruitment practices based on individual competencies, organizational and position it. Employees and managers are fairly treated and can openly discuss the performance, development, and career planning. 5. Employee welfare Employees are provided with competitive salary and bonuses, granted leave entitlements, medical benefits and group insurance plans and incentives under Employees’ Share Options Schemes (EGOS) and monthly PEP contribution. 2. 4 Community 1.
Employment of local workforce in its operations The group recruits locally based on the job fit and competences considerations, to increase job opportunities for the local community. Gay Island Resort and World Wide Fund for Nature (WFM) Saba office work with local fishermen through the line fishing activity. 2. Internship or graduate placement schemes YET has an ongoing Internship Programmer. These interns will gain real-life work exposure, develop new skills and able to broaden their business knowledge. Interns who perform well will be hired as a long term basis.
YET International College of Hotel Management provides foundational skills training in hospitality. Students are taught within a fully operating hotel in a campus. YET Hotels then provide industry placement for graduate students. . Company’s community investment initiatives YET Foundation provides 200 megabytes data to all teachers, parents and students under 1 Bestiaries project to utilize the Yes G mobile internet services. Appear-Hangdog Semen Sad Bad donates RAMMER to local schools in Padding Ranges, focusing on co-curricular activities and excellence awards. 4.
Encouraging employee volunteerism Wishes Water creates the “Community Plunged” to support local community. It matches every Pound Sterling raised up to a maximum of IEEE when a sponsored run, parachute jump or cycle ride has been done by employees. For 013, the total match funding was E,400 to a total of 33 members of staff. 3. 0 Audit Procedures for Corporate Social Responsibility Activities 3. 1 Identify existence of the code and charter through inspection of minutes of board meetings. Inquire with those charged with governance about the progress of developing the charter.
Examine the current corporate governance guidelines with the results, such as numbers of trainings attended by directors. Inspect human resource records of each directors to confirm their designations, relationships and general information. Send confirmation letter to companies here the directors also hold directorship to ensure the limit is complied. Examine members of standing committees, such as nomination committee, to ascertain the standard member requirements set by Bursa Malaysia is achieved. Review payroll records and recomputed compensation paid to each directors.
Inspect minutes of Annual General Meeting on shareholders’ consent on directors remuneration package. Inspect minutes of nomination committee to know the principles, basis and indicators of director’s performance evaluation. For foreign currency exchange risk, review the terms for forward foreign currency exchange contract. For interest rate risk, send confirmation to banks to confirm short term deposit balance and interest rates offered. Review appropriateness of Yeti’s risk management system on identification of risks, opportunities and impacts.
Confirm the period of service of all independent directors with reference to human resource records. Inquire advise from Securities Exchange officer on the effect of non-compliance. Assess the qualifications and integrity of those directors. 2. CARS Management and Reporting Identify existence of framework through reviewing minutes of board meeting with the Head of sustainability. Interview employees on whether they are aware of and understand the sustainability framework. Inquire on sustainability mission and details of framework from the Head of sustainability.
Observe the reporting process of sustainability department. Interview employees on their knowledge and application of framework. Obtain management representation that the Bursa Malaysia Framework is adopted by them for reporting. Send confirmation letter to HAL Leer Lump on period of engagements. Ascertain independence, skills and qualification of experts who had given reviews on the report. Evaluate the criteria and presumptions used by he experts. 3. Stakeholder engagement Inspect minutes of roundtable meetings with specific stakeholders group.
Review invoices of stakeholders-related events’ expenses such as venue rental and refreshments. Interview employees on frequency of trainings undergone and employer-employees dialogues held. 4. Procurement policies Reconcile sample of purchase requisitions, purchase orders, receiving reports with purchase invoices. Send confirmation letters to local suppliers to enquire on account balances. Perform analytical procedures to determine the standard and actual number of local suppliers of a sample of subsidiaries. Product responsibility Interview employees on procedures needed to be preformed under Quality Management System. Perform analytical procedure to compare current year sales return to previous year’s records Review customers’ feedbacks and complaints on products and services quality to cross check with faulty products rate. 3. 2 Environment 1 . Environmental policy clearly stated Inspect minutes of board meeting to confirm existence of policy. Conduct a site or office visit to ensure the policy is being implemented, by inquire employees on their awareness of the policy.
Examine environmental manuals distributed to employees to ascertain alignment of procedures with the policy. 2. Measurement systems in place to measure: Observe calibration of carbon footprint monitoring device by employees. Vouch payment of carbon tax of El . 5 million by Wishes Water, from journal to source documents of authorities’ assessments and payment receipt. Obtain prove of certification from each of the eleven subsidiaries, and send confirmation letter to accreditation agency to get their annual review report on the subsidiaries.
Review prior and current utilities bills, and compare energy input and output to determine the rate of efficiency. Test accuracy of calibration of electricity meter. Agree the recorded data to invoices of purchased energy. Check accuracy of calculation by reforming the process. Evaluate the suitability and relevance of calculation method as measurement. Interview employees responsible for methodologies used, and whether there was a change of methodologies, and any adjustment made. Inspect mitigation plans and procedures of waste management.
Obtain inventory records of cement by- products, and match with purchase orders to ascertain the claim of zero waste production. Examine the measurements for measuring input and output for Bristol Sewage Treatment Plant, and recalculate a sample to compare with the data recorded. 3. Set targets for improvements and/or significant initiatives to reduce the above Inspect the documents signed for Carbon Price Communique©. Inquire purchase or procurement department on the list of green materials used, with prices, benefits and information of alternative materials.
Send confirmation letter to Singapore Building and Construction Authority to ascertain GAB status awarded. Review Waste Heat Recovery project plan to evaluate the energy flow diagrams. Obtain sample of cost sheets and purchase invoices to recalculate accuracy of purchase and consumption of fuel. Perform analytical procedures to reconcile ratio of waste heat emission with plant operation energy usage. Inspect water utilities bills from period before using desalination plant to current period’s.
Interview the expert or engineer responsible for the desalination plant to inquire about capacity and efficiency of the plant. Obtain raw data of water consumption and scan to uncover any material deviation. Obtain specifications and processes of IBM Lotus Notes and evaluate its feasibility to support YET Power Services paperless approach. Obtain confirmation from licensed waste espousal contractor for types of waste recycled by YET. Conduct analytical procedures with Yeti’s records of recycling, and compare with industry average and best practice. . Company’s impact on biodiversity; environmental impact assessments Perform analytical procedures on prior and current periods records of discharged water, and compare to standard set by regulatory agency. Obtain confirmation on laboratory results from the accredited independent laboratory. Conduct a site visit to Indonesia to ascertain areas of reforestation project. Interview the resident marine biologist on the improvements brought to the diversity since setting up of GIRL Marine Centre.
Examine the appropriateness and quality of infrastructures and equipments of the marine centre to nurse and research marine biodiversity. Evaluate research results attained by the marine centre. 3. 3 Workplace Inspection of records and documents concerning SHOOS 18000: 2007 System and H policy, such as objectives and the basic health and safety philosophy. Observe the SHOOS System’s certification audit process, training programs and media by surveillance visits to access the procedures being carried out by employees. Inquiry has to be made through interviews with managers, staff and
H&S Committee to evaluate whether the company has conformed to the SHOOS System’s standard and the effectiveness of H programs and media. Obtain confirmation by requesting written representation letter from directors whether all requirements of the SHOOS standard are documented. 2. Human capital development Inspect staff development policy statement, as well as company’s manuals, handbooks and directives detailing staff development procedures. Observe training programs to access entire training procedures in terms of development status of the training materials and delivered arrangements for training orgasm.
Inquire and obtain feedbacks to evaluate the effectiveness of the training programs by conducting questionnaires and interviews. 3. Work-life balance Inquire feedback through Employee Satisfaction Surveys (SEES) and conduct interviews with human resource managers and person-in-charge of activities. Obtain confirmation from the particular companies which issued the vouchers about their validity, related health care authority about the conduct of health screening exercise and insurance company about the medical payments coverage.
Perform computation for number of working hours as provided in the employees flexing working hours’ and part-time working hours’ time sheet. 4. Diversity in the workplace Inspection of records and documents such as workplace, discrimination and recruitment policy statements, company’s sustainability reports and records of female employees. Observe recruitment and selection process to determine whether the management adopts merit-based recruitment practices.
Inquire by conducting interviews with the management and human resource department to evaluate whether good diversity practice is adopted into the daily workplace. Scan the payroll records and employees’ pay checks to access whether there is equal pay for both genders having the same positions. 5. Employee Welfare Inspection of records and documents concerning employee welfare benefit plans, such as policy statements of employee benefits, annual leave and health care, insurance records and medical records is required to be done by the auditor.
Get confirmation from the health care authority on the conduct of health care schemes and insurance company about the medical payments coverage. Scanning procedure should take place by reviewing the payroll records and employees’ pay checks to determine the consistency of payment of salaries and bonuses. . 4 Community 1 . Employment of local workforce in its operations Inspection of records and documents including the workplace, recruitment policy statements and company’s sustainability reports and records of local diversified employees needs to be done by the auditor.
Observe the recruitment and selection process to determine whether job fit and competency factors are adopted. Obtain confirmation by contacting World Wide Fund for Nature (WFM) officer in Saba regarding the fishing program. 2. Internship or graduate placement schemes Inspections of records and documents such as internship policy statement’s taters such as company’s commitment for intern development, and objectives of the schemes. Observe the internship schemes being conducted by the management to access the entire training programs being carried out.
Inquire and obtain interns’ or employees’ feedbacks to evaluate the effectiveness of each training programs by conducting questionnaires and interviews. 3. Details on the company’s community investment initiatives – Inspect documents such as community policy statement, scholarship agreements, sustainability reports, records of recipients whom donations are being issued and bank slips of related nations. Obtain confirmation by contacting the persons-in-charge of donations about the donations being made to related schools and organizations.
Perform computation for donations in monetary and material amount as being provided in the records of recipients of issued donations and donation receipts. 4. Inspect records such as community policy statement, the Community Plunged policy statement, sustainability reports, records of recipients of financial rewards and their bank slips. Observe the community service and attend the employees’ volunteerism events to identify the employee volunteerism initiatives. Inquire and conduct interviews with the management to evaluate the effectiveness and the performance of the schemes. . 0 Weaknesses and Recommendations The policy of Corporate Governance is not included in the annual report of YET. The company will adopt a formal charter at a later year. YET should establish clearly their Corporate Governance statement to align with company’s current corporate governance activities. The statement of Corporate Governance can be further divided into management succession, board’s qualifications and nominations, disclosing all Board’s committees and their charters. These should e included because stakeholders are concerned with every decision made by the Board.
Besides, YET does not clearly state the sustainability mission. YET should provide a simple and precise statement on their sustainability mission as a direction for sustainability activities. In other words, ensure goal congruence through the sustainability mission. It will ensure employees will achieve the common goal even with different methods. Stakeholders will also understand and aware of the mission. The sustainability reporting standards and guidelines are not updated. Global Reporting Initiative’s (GRID) Sustainability
Reporting Guidelines is the most widely used guidelines in the corporate world (KEMP, 2010). YET should adopt it since it is more comprehensive than Bursa Malaysia’s CARS Framework, with different application levels to indicate the effort in sustainability. For management standards and guidelines, YET should use SEA 3000 by SAAB or OASIS’S by AccountAbility, so that auditor will have an dubitable standard for CARS audit. Industry specific guidelines such as Cement Sustainability Initiative can be used by the cement manufacturing division.
The sustainability report is not audited, therefore YET should not only obtain expert’s commentary but also formal assurance from accountancy, certification bodies or technical experts firm. Result of stakeholders’ engagement is not shown, thus YET should disclose significant responses and agreement reached with stakeholders. YET should also develop suppliers’ code of conduct to ensure suppliers’ compliance with sustainability. YET does not clearly state the environmental policy, and the measurement units are only partially disclosed.
The Group should acknowledge their environmental policy in a short statement. Moreover, providing a comprehensive and diagrammatic presentation of heir environmental policy and significant measurements and figures can communicate effectively to public on their environmental achievements. Data for performance indicators should be provided by YET, such as percentage of suppliers meeting environmental criteria, emission ratio, energy ratio, waste ratio, waste diversion and percentage of employees based on race and ethnicity.
Yeti’s counseling or assistance programmer for their employees are not included in the report. Counseling programmer should be provided for the employees. YET should set up an Employee Referral Programmer, which employees can chive bonus or incentives if they can refer to management any colleagues who try to leave the company. After that, management can counsel the troubled employees and helping them in handling problems affecting their careers. Furthermore, there is no indication of YET hiring people with disabilities to work for the company.
YET may conduct recruitment only for those disabled because this can help the society. Those hired will feel more confident as they are able to earn money by themselves. Besides, the action of hiring disabled also helps to create a good image for the company and thus increase the company’s value. The Group may also promote the recruitment activity for disabled through mass media such as radio, television, internet and newspaper so that more people, especially those in need, know that they are qualified to apply as Yeti’s employees.
YET may also be the patron of disabilities organizations. For instance, make the organization a beneficiary of YET Foundation and commission them to produce crafts for display and decoration in the hotels. 5. 0 Conclusion Sustainability audit is a relatively new field that comes into focus since Enron scandal, therefore frameworks and guidelines are being researched and plopped in order to standardized the practice. It often involves vague areas where auditors need to think of appropriate audit procedures to quantify the goals, and audit against a standard.
It is not as clear cut as financial statement audits, where figures can be easily taken from statements prepared based on standardized approved accounting standards. It is similar with compliance audit, where the focus is on effectiveness, quality and accuracy of transfer of data from management systems, completeness and reliability of the data (Dwyer, 2011). Generally, YET is one of the pioneers in Malaysia to adopt sustainability porting. The commitments are shown through separation of sustainability report, establishment of CARS committee and a separate Sustainability division.