The Genting Group is Malaysia’s leading multinational corporation and one of Asia’s best-managed companies. The Group has over 35,000 employees, 4,500 hectares of prime resort land and about 133,500 hectares of plantation land. The company was incorporated under the Companies Act 1965 on 30 July 1968 under the original name of Genting Highlands Hotel Sdn Bhd to operate a hotel and casino, and to develop an integrated tourist complex in Genting Highlands, Malaysia. Genting’s company registration number is 7916-A. The company changed its name to Genting Highlands Hotel Berhad upon its conversion into a public company on 24 July 1970.
It assumed its present name of Genting Berhad on 9 June 1978. Genting Group was founded by the late Tan Sri (Dr.
Lim Goh Tong in 1965 when he began the initial development works of building a 20-kilometre private access road, across tough mountainous terrains from the foothills to the summit of Mount Ulu Kali, located at 2,000 metres above sea level. Genting Berhad is 39. 7% owned by Kien Huat Realty Sdn Bhd, a private company controlled by the late Tan Sri (Dr. ) Lim Goh Tong’s family. The shares of Genting Berhad were listed on the Main Market of Bursa Malaysia Securities Berhad in 1971. A restructuring exercise was undertaken in 1989, which involved the initial public offering and listing of Genting Malaysia Berhad on Bursa Securities and resulted in Genting Berhad’s becoming an investment and management company.
Genting Malaysia is principally involved in the leisure and hospitality business and its activities cover theme parks, gaming, hotels, seaside resorts and entertainment. The jewel of its crown is Resorts World Genting, a premier integrated family leisure and entertainment resort at the peak of Genting Highlands that attracted 19. 9 million visitors in 2010. Genting Group via Genting Berhad became involved in palm oil production in 1980 with the acquisition of The Rubber Trust Group, comprising three Hong Kong plantation companies which own approximately 13,660 hectares of plantation land in Peninsular Malaysia. This division under listed entity Genting Plantations Berhad now has about 133,000 hectares of land in Malaysia and Indonesia. It is one of the leading and lowest cost palm oil producers in Malaysia.
Genting Group via Genting Berhad became involved in the electricity power generation and supply and the paper manufacturing businesses in 1994, with the acquisition of Genting International Paper Holdings Limited, and in the exploration and production of oil and gas in 1996 under Genting Oil & Gas Limited. In July 2007, the Group divested its paper and packaging business to focus on its core businesses. Genting Berhad’s registered office is located at 24th Floor, Wisma Genting, Jalan Sultan Ismail, 50250 Kuala Lumpur, Malaysia. Genting Group is a leading multinational corporation committed to enhancing shareholder value and maintaining long-term sustainable growth in our core business. The missions are: 1. Be responsive to the changing demands of our customers and excel in providing quality products and services. 2.
Be committed to innovation and the adoption of new technology to achieve competitive advantage. 3. Generate a fair return to shareholders. 4. Pursue personnel policies that recognize and reward performance and contribution of employees and provide proper training, development and opportunities for career advancement. 5. Be a responsible corporate citizen, committed to enhancing corporate governance and transparency. Social Reporting Themes / Dimensions (Chan Sin Yee 148065) Care for the environment Environment care is a key social responsibility of Genting Group. They care of the environment by implementing a various kind of eco-friendly initiatives to achieve a sustainable balance between development and conservation.
For example, in a development project, they tried to minimize the impact on environment by planting turf or hydro seeding on the exposed surfaces. Thus, disturbance to the soil can be reduced and soil erosion can be prevented. Moreover, the Genting Group participates in Earth Hour every year since 2008. This has created the awareness amongst employees and resort guests so that energy can be conserved with a little effort from every individual on Earth. Other than that, many others projects such as “Optimisation of Steam Plants for Genting and First World Hotel Boilers” and “Paperless Electronic Vouchers” were carried out and won the awards for Genting Group. Care for the community
Genting Group seeks to build mutually beneficial relationships with the communities and they tried to fulfill their philanthropic responsibility by contributing to some charitable activities. Genting Group regularly contributes to help the less fortunate in the society. For instance, “MyKasih Love My Neighbourhood Programme” was implemented to help the poor by donating RM50,000 to 50 selected poor families. The most importantly is that Genting Group encourages the spirit of volunteerism amongst employees. For example, “We Care” teams and “aRWSome Volunteers Corp” were formed by Genting Group employees and they engaged actively in charity to support the Genting Group’s community efforts.
In education, Genting Group has supported various primary school, high school and even higher learning institutions such as Universiti Putra Malaysia by providing scholarships for high-achieving students and international students exchange programmes. In sports, for example, Genting Group is the main sponsor for King of Mountain jersey for Le Tour de Langkawi and they also supported many others sports events in Malaysia. In local culture and arts, for example, Genting Group supported the theatrical performance at Istana Budaya and providing a platform for local talents to show their creativity by donating RM100,000 to Cultural Fund. Care for the workplace
Genting Group values and put emphasis on their employees by investing in annual training conferences, team-building events and other employees development activities. Training will be provided to employees so that their core competencies can be developed. Therefore, Genting Group has a growing workforce and motivated professional employees. Moreover, Genting Group promotes a safe and engaging working environment to achieve a balance between work and life of employees. For example, Genting Malaysia is the country’s first leisure and hospitality company to embark on the National Institute of Occupational Safety and Health-GENTING Safety Passport Programme.
Genting group also organize some events such as “Employee of the Month Awards” and “Employees Appreciation Night” to encourage, appreciate and recognize employees’ contribution to the company. Care for the marketplace Genting Group strictly abides by the principles of integrity, honesty and commitment to excellence with the purpose of promoting responsible practices among shareholders. With timely dissemination of information with shareholders such as customers, investors, employees, public and other stakeholders, a good relationship among stakeholders can be promoted. Furthermore, information of Genting Group can be shared by using an official website (www. genting. com). Thus, stakeholders can obtain annual reports, sustainability reports, press releases and announcements by accessing the website.
In addition, Genting Group also undertakes “Responsible Gaming” practice by setting up counter in the casino, through website link or hotline services. Information and guidance on playing casino games is provided by the casino staffs so that customers can inquire about gaming problem. How has the company engage with their stakeholders? Who are these stakeholders? (Chan Sin Yee 148065) Stakeholders can be categorized into primary and secondary stakeholders. Genting Group set their vision as to enhance stakeholder value and maintain long-term sustainable growth in their core business. Hence, there are few groups of stakeholder that was identified by the Genting Group.
Employees, customers, investors, and community are categorized as primary stakeholder as they are involving in company economics transaction and their continued association is absolutely necessary for a firm’s survival. On the other hand, secondary stakeholder includes environment that do not engage in transactions with the company, thus they are not essential for company’s survival. First, Genting Group engages with community through various philanthropic contributions, support to non-governmental organizations and employee volunteerism. Genting Group contributes to charities and foundation regularly to support the people of less fortunate from many different sectors, irrespective of race, gender and religion.
Employee volunteerism proved that Genting Group as a whole support their employees contribute in charities and they do more than just donating money. Moreover, Genting Group also engages with community through their contribution in education, sports, and also local culture and arts. Job opportunities that created by the organization could reduce the unemployed rate and improve the socio-economic standard of the local community. Second, employees are playing an important role in helping the organization to generate revenues and gain profits in the business, therefore employees are stakeholders of the organization. Employees’ job satisfaction and performance would influence organization’s income and reputation.
Genting Group also engages with its employees by providing formal training such as annual training conferences, team-building events and other employee development activities to improve the quality of their employees. This shows that they value the contributions and efforts of employees. To recognize the well performance employees, Genting Group held events such as Employee of the Month Award to appreciate their contribution and motivate other employees to improve job performance. Third, Genting Group is a company that provides products and services to customers. Hence, customers are one of the important stakeholders of Genting Group that bring revenues for the company.
For instance, WorldCard was introduced by the Genting Group to benefit the customers by points collecting and redeeming in their outlets. Customers can redeem their points collected with room night stay, dining, bus tickets and theme park. Fourth, investors are group of people that invest capitals into the company to aid the company operation with the expectation of return of investment. Genting Group pays attention in promoting well relationship with their investors and provides information to inform the investors about the company latest operations and businesses. For example, Annual General Meeting is held to allow shareholders to share their ideals upon company operations.
Genting Group always does their best in order to meet the investors’ expectation and promise to generate a fair return for them. The last stakeholder in Genting Group is government. Genting Group has working closely with Ministry of Health to make sure that there is no violation in health and safety issue at the workplace. For example, Genting Malaysia team abide by the rules and regulations and comply with the Control of Tobacco Products Regulations so that every employee in the organization would not violate the rules at workplace. In term of environment caring, Genting Group always strives to attain a sustainable balance between development and conservation.
They take environment issues into their consideration by planning and designing the development carefully in order to protect and minimize the impact on the ecosystem. For instance, a hill-top resort, Resort World Genting, Malaysia is developed by wise planning to conserve the originality of flora and fauna in the surrounding. Forest is preserved and cared by the Genting Group during their development in order to keep it for future generations. The Genting Group has left out two stakeholders in sustainability report. First, media is the secondary stakeholder of Genting Group. The sustainability report left out the role of media at Genting Group.
However, there is indirect relationship between media and Genting Group. The activities and events organized by Genting Group will be reported through newspaper, magazine or internet. Thus, media is also another important stakeholder of Genting Group. Supplier has also been missed out in the sustainability report. Supplier should be included because of the foods and other products would be needed by customers and visitors of Genting. Supplier is important in providing foods to the restaurants in Genting. Moreover, supplier also needed to provide products such as souvenirs, t-shirt, key chains and many others to souvenir shop. Company’s Policies (Leo Mei Zhi 149602)
Genting Group has set their policies according to the missions in order to attain sustainability development. Environment care is set as one of their policies to achieve a sustainable balance between development and conservation. Genting Group’s project development and operation has to be done by careful planning and design in order to minimize and protect the ecosystem. In term of social policy, Genting Group cares for the community by building mutually beneficial relationship with the communities where they operate and with society at large through active engagement. Besides that, they encourage the employees volunteerism spirit to help the underprivileged groups.
Genting Group persues personnel policies to recognize and reward well performed employees, provide training and opportunities for career advancement. Other than that, they aim to enhance shareholder value and sustainable business growth by promote responsible practices and uphold good corporate governance. Company’s Strategies to Address Environmental/ Social Concerns (Leo Mei Zhi 149602) Genting group has fulfilled its social promises through contribution in various aspects: Care for environment Genting Group has made an effort to ensure the sustainability of environment through minimizing the impact on the nature throughout their development.
For instance, Resort World Genting in Malaysia constructs overhanging structures and bridges to preserve the rich species of flora and fauna in the rainforest. Meanwhile, Genting Group has also undertaken an energy audit whereby they succeed to reduce the consumption on electric, by using more eco-friendly T5 light bulbs with the Go Green initiative. The variable speed drive installment on the water pump motors decreased the electricity consumption at Maxims Genting and Highland Hotel. The emission of carbon dioxide gas is reduced by conducting the project named “Optimisation of Steam Plant for Genting & First World Hotel Boilers”. The paperless electronic vouchers that introduced by eGenting is one of the eco-friendly activities that conducted by Genting Group.
Wisma Genting, which is the Genting Group’s corporate head office in Malaysia is is fitted by Double Glazed Glass Exterior Wall Cladding Facade, that help to reduce heat penetration and air-conditioning consumption. In Singapore, they have also launched a Marine Life Fund to sponsor research, education and conservation effort to marine life such as Galapagos Marine Reserve protection and shark’s fin awareness campaign. Genting Group participates in Earth Hour since year 2008 by switching off lights at their key business properties to create awareness for employees and guests. Besides that, they being an active member in Roundtable on Sustainable Palm Oil (RSPO) to foster sustainable agriculture and participates in the World Wide Fund for nature to support land restoration.
In addition, they have formed ACGT Sdn Bhd to apply genomics-based for sustainable agriculture for oil crops. Care for the community Genting Group has shown their care to the community with the belief of ‘give and take’ from the community. Besides creation of working opportunity to uplift the socio-economic status of the community, Genting Group engaged themselves in philanthropy activities in many ways. The donating large sum of money to various charitable organizations such as orphanage and welfare house included the National Autism Society of Malaysia, Malayisian Association for the Blind and so on. They are also contributing in set up the 1MCA Medical Foundation to help the poor Malaysians to obtain medical treatment in private hospital.
Genting Group supported Tunku Azizah Fertility Foundation, Yayasan Jantung Negara and National, National Council of Senior Citizen Organizations Malaysia, PEMADAM Kebangsaan, Tabung Rayuan Hari Pahlawan, St. John Ambulans Malaysia and the National Kidney Foundation in Malaysia. They sponsored RM50,000 to MyKasih Love My Neighbourhood Programme by providing bi-monthly allowance for a year for 50 poor families in helping them to buy essential food items. To help the poor and disable students to purchase schoolbooks and uniforms, Genting Group donates in the Pertubuhan Amal Gabungan Permata Istimewa Malaysia. The corporate culture itself encourages the spirit of volunteerism among their employees by the organized of “We Care” team in Resort World Genting and the Awana resorts whereas “aRWSome Volunteers Corp” is organized in Resort World Sentosa.
They gave free tuition to orphans, repaired charity homes’ buildings, donated food supplies and visited to welfare homes during festival to bring happiness and care to the underprivileged. The Genting volunteers help to raise funds for the underprivileged and welfare centers by participated in “Great Charity Bake-a-thon” and ChildAid 2010. Moreover, Genting Group cares for the community in terms of the sustainable development of our future generation. They provide funds and scholarships in education field by Tan Sri (Dr. ) Lim Goh Tong Endowment Funds for University Putra Malaysia and University of Malaya’s Business and Accountancy Faculty respectively.
Genting Group also donates and helps the local schools to improve their infrastructure and facilities. Besides, Genting Goup supported and sponsored Le Tour de Langkawi, Football Association of Malaysia, Selangor Tennis Association for its Junior Development Programme 2010, Football Association of Pahang, the Pahang Women’s Hockey Association for the Queen’s Cup Hockey Challenge, and the Perdana de’ Everest Mission 2010/2011. The group promotes local culture and art by providing a platform for local talents and youth to growth. The actions taken are donated for Cultural Fund, supported theatrical performance of “Nostalgia Sri Mersing” and hosted “Orkestra Simfoni Remaja” and children’s musical theatre. Care for the workplace
Human resources development is very much emphasized in Genting Group corporate policies. Genting Group promotes a safe working environment for their employees, and it was the country’s first leisure and hospitality company to provide appropriate training and knowledge regarding workplace safety, aligned with National Institute of Occupational Safety and Health-GENTING Safety Passport Programme. Safety and health audits are done periodically by external specialists and monthly talks are held to educate employees. Meanwhile, they work closely with the Ministry of Health to ensure the compliance with the Control of Tabacco Products Regulations at the workplace.
Genting Group also promotes happy working culture and adhesion among employees by forming proactive recreational clubs in all of the business properties. Benefits and compensations such as Employee of the Month awards and Appreciation Night are help to recognize the employees’ performance. Resort World Sentosa signed an agreement with Singapore’s polytechnics to offer internship programme and scholarship for students. Marketplace To enhance stakeholders’ value and achieve sustainable business growth, Genting Group practice corporate social responsibilities by care for the shareholders and customers to meet the investors’ expectation. The oil mills of Genting Group grade and price the fruits according to the guidelines of Malaysia Palm Oil Board.
Besides that, Genting Group distributed the information equally to all stakeholders by held the Annual General Meeting and send annual report. Meanwhile, corporate website (www. genting. com) is developed to provide latest business activities information and responsible gaming practices for the stakeholders. Beisdes that, Genting Group developed a hotline for casino customers to deal with problem gaming. Social Promises and Commitment (Chew Wei Ye 149654) Conventionally, companies tend to make social promises to their stakeholders in order to attain a better reputation, which probably boost their sales, thereby increase in profits. However, it is often that the companies’ social commitment does not meet those of that expected by the stakeholders, as promised.
Specifically, some only fulfill the expectations of their shareholders, whereby their major concern is on the bottom-line, while neglecting their commitment to other stakeholders. Genting Group holds the philosophy of being a responsible corporation. They aimed to contribute to the sustainable development of the economy, the environment, the community, the marketplace and also their employees in the countries they operate. Genting Group has set a role model to the rest in terms of their participation in Corporate Social Responsibility activities. Genting Group has perform as an activist whereby it adopts active citizenship profiles at each and every country they operates in, generating great sum of benefits to their stakeholders scattered all around the world.
Based on the Genting Group’s social policies to ensure sustainability and its’ strategies to apply the policy, it is apparent that Genting Group has fulfilled its promise to their stakeholders. They have fulfilled the stakeholders’ expectations by participating in nationwide campaign, providing funds in research, taking care of the community’s welfare while uplifting the socio-economic status of the community members. Application of Guidance and Standards or Environmental Awards (Chew Wei Ye 149654) • Malaysia Productivity Corporation National Convention Award The engineering team’s project ‘Optimization of Steam Plant for Genting First World Hotel Boilers’ produced a reduction of Carbon Dioxide emission by 5454 metric tons per year. • Share/Guide Association Malaysia 2010 ICT Award “ Green IT Excellence Award”
Awarded when 7 million paper vouchers worth RM 1 million were saved after paperless electronic vouchers were introduced by eGenting in 2010. • Occupational Health and Safety management System 18001:2007 • Environment Management System (ISO 14001:2004) • Gold GREaTest Award Genting UK was awarded for its commitment to offer fair and responsible gambling to support The GREaT Foundation, which raises fund in relation of problem gambling. • GamCare Certificate of Social Responsibility External Verification for Social Report (Chew Wei Ye 149654) There is no any external verification for the social report of Genting Group. Recommendations of CSR Programmes (Chia Su Mei 149345)
As a successful and multinational corporation, Genting Group is always being a responsible corporation that has fulfills four aspects of corporate social responsibility which contributing to the sustainable development of the economy, environment, employees and also community. There are great amounts of activities that have been done by Genting Group in order to fulfill their social responsibilities. However, I have some recommendations which I think the company can further improve its social responsibility efforts. Firstly, in the aspect of environment sustainability, Genting Group has put much effort on it, for example, they minimize the use of their land bank and preserve rich flora and fauna, lower air-conditioning consumption and others. Besides than these efforts, we suggest that Genting Group should changing the T5 compact fluorescents light to LED light in order to reduce the energy consumption.
This is because LED light is 10 times more lasting than T5 light, more durable, cool and do not cause heat build up as T5 light, mercury free and use less power. Therefore, by changing T8 compact fluorescents light to LED light can reduce cost of electricity and cost of replacement. Other than cost savings on several aspects, LED light is also eco-friendly in term of energy saving and good for environment because LED light do not use mercury that will cause mercury contamination. So, by using LED light not only contributing to environment sustainability, but also helping company reducing the cost. Besides that, using of paperless electronic entrance ticket for indoor and outdoor theme park can be considered.
The reducing of using paper can contribute to better environment suitability. Thus, these actions are consistent with one of the Genting Group missions which is to be committed to innovation and the adoption of new technology to achieve competitive advantage. In addition, Genting Group has an active engagement in coomunity responsibility. For example, Genting Group contributes regularly to various charities for the group of people who needs the help like orphanages, old folks and disabled. Genting Group is principally involved in the leisure and hospitality business and its activities cover theme parks, gaming, hotels, seaside resorts and entertainment.
So, one of it’s main business activities is gambling. So, in my opinion, Genting can provides a short course or establishes a gambling consultancy centre to provides guidance or information for public to play the casino games responsibly or helps people who has gambling problem. Besides that, Genting Group can also provide a stop gambling courses for those who are having serious gambling problem. By this way, Genting Group may help to reduce the social issue which rose from gambling problem such as financial difficulty and family problem. This high standard of social responsible practices can bring advantages for Genting in the long term profits.
This is because this action will left a good impression for public that Genting is a corporation who not only care about the profits but also giving concern to the society. A good image of a corporation is very important for a company to continue its business in a long term period and for a better future. Furthermore, a good image of Genting Group can raise the confidence of investor and attract more investor from foreign country as well which can helping the company to expand their business and gain more profit. This action is match with two of the Genting Group missions which are to be a responsible corporate citizen and generate a fair return to shareholders.
As for workplace, Genting Group has put efforts on its social responsibility to employees as well for instance provides training for employees to enhance their skills, having events of reward, having proactive recreational club and others. Genting Group has many company divisions such as Singapore, New York and United Kingdom. Therefore, overseas training exchange progrmames can be organized to enable the employees to explore to more different experience which gaining from different culture and apply it on company once they back. Employee who gets the offer for exchange training can get higher salary once they finish their training or have the chance to be promoted to a higher position.
This can increase the employee’s motivation and can directly contribute to higher company’s productivity and thus benefits the company. This action is consistent with two of the Genting Group missions which are firstly, be responsive to the changing demands of their customers and excel in providing quality products and services, and secondly provide proper training, development and opportunities of career advancement for employees. Other than that, based on the Genting Group Social Report, we found that they didn’t include the information about the stakeholder completely. So, Genting Group should add the information of others stakeholder who has involve in the company in more detail such as media, government and others.
In addition, we also realize that there is no any external verification for Genting Group’s social report which makes it lack of credibility. Therefore, Genting Group should get the recognition or verification from external party for instance Price Waterhouse, KPMG, Veritas and others to add more credibility on their social report. Conclusion (Chia Su Mei 149345) Based on the social report of Genting Group, we realized that corporate social responsibility is vital for a company to pertain a long term success in company growth and sustainability. Corporate social responsibility is a company sense of responsibility toward the community and environment (both ecological and social) in which it operates.
Companies express this citizenship through their waste and pollution reduction processes, by contributing educational and social programs, and by earning adequate return on the employed resources. As we can see, Genting Group has fulfilled its social responsibility as what corporate social responsibility should be included. Genting Group has shown that sustainable development is integrated in the core of their operations and is therefore part of the corporate DNA. From the report, we found that Genting is conducting their business operations responsibly and they also focus on the environment, community, workplace and marketplace. This framework has structured their commitment to conduct their business operations in a sustainable and responsible manner.
They have created a balance between the long term interests of their stakeholder which including their shareholder, customers, employees, business partners and local communities as well. All in all, Genting Group has done a great job in performing their social responsibility. However, they can still improve their social responsibility efforts and practices to strive for a better future of company. References Genting. (2011). Awards and Recognition. Retrieved November 24, 2011, from http://www. genting. com/awards/index. htm Genting. (2011). Genting Group. Retrieved November 24, 2011, from http://www. genting. com/mission. htm Genting. (2011). Sustainability. Retrieved November 24, 2011, from http://www. genting. com/sustainability/index. htm
Cite this The Genting Group – Malaysia’s Leading Multinational Corporation
The Genting Group – Malaysia’s Leading Multinational Corporation. (2016, Oct 02). Retrieved from https://graduateway.com/the-genting-group-malaysias-leading-multinational-corporation/