Fraser & Neave Holdings Bhd Annual Report 2021

WHISTLEBLOWING POLICY Whistleblowing Policy enables the businesses within the Group to respond nimbly to concerns raised notwithstanding changes in the environment and to ensure that the corporate culture of integrity, transparency and accountability are upheld across the Group. The policy encourages and provides a channel to employees and members of the public to report in good faith and in confidence, without fear of reprisals, of concerns about possible improprieties. Allegations of improprieties which are reported via the whistle-blowing channel such as a dedicated hotline and email account are appropriately followed up and the outcome(s) will be reported at the Audit Committee meetings. The above-mentioned policies/codes are available for reference at the Company’s website at https://www.fn.com.my/about-us/#our -codes- policies. BOARD AND BOARD COMMITTEES The Board delegates certain responsibilities to the Board Committees, all of which operate within defined terms of reference. Board and Board Committees provide oversight function and ascertain the adequacy of the internal control framework in the Group. Further details on the structures of the Board and its committees are provided under Corporate Information as well as the Corporate Governance Statement and Audit Committee Report. DELEGATION OF AUTHORITY The authority limits aligned to the Group’s organisational requirements in areas such as procurement, contracting, human resources and financial management are encapsulated in the Chart of Authority. The Chart of Authority provides guidance on the division of responsibilities between the Board and Management and is periodically reviewed and updated to reflect changes in the business, operational and organisational environment. ANNUAL BUSINESS PLANS AND PERFORMANCE The Annual Business Plan sets the targets and objectives based on the strategic directions and initiatives of the Group and is supplemented by key performance indicators to monitor and track the actual achievement against the Group’s targets and objectives. Frequent engagements between the Board and the CEO/Management via Group Executive Committee meetings and management reports provide a platform for performance to be periodically monitored, followed up and/or adjusted where appropriate. POLICIES, GUIDELINES AND PROCEDURES The Group has set in place standard operating procedures covering critical and significant facets of the Group’s business processes and are primarily geared towards the protection of assets and critical data as well as other major aspects of the Group’s business operations. These areas include financial management, occupational safety procedures, information technology and cyber security, social media, human capital management, productivity benchmarks, product quality assurance, compliance with regulatory standards and disciplines, among other matters. Policies, standards and procedures that are available to enhance the Group’s operational e&ciency and internal controls include (but not limited to): • Capital Expenditure & Acquisition Policy • Credit Control Policy and Procedures • Procurement Policy • Supplier Code of Practices • IT End User Policy • Network Security Policy • Executive Personnel Manual • Human Rights Policy • Halal Policy Policies and procedures are also subject to review as processes change or when new business requirements need to be met. Compliance with these policies and procedures is an essential element of the internal control framework. HUMAN CAPITAL Talent plays a pivotal role in achieving the business objectives of the Group. Hence, processes have been put in place to assess talent for career development and succession planning. Roles and responsibilities are clearly defined in the job description for each position. In addition, continuous improvement approach is implemented in the areas of operational e&ciencies as well as manpower productivity. To ensure the performance evaluation process is carried out in a systematic manner, Performance Management System which provides rating criteria for the assessment of employees’ performance based on agreed Key Result Areas and operational Key Performance Indicators, sustainability targets as well as talent development targets is deployed. INFORMATION AND COMMUNICATIONS SYSTEMS The Group operates on an enterprise resource planning system which integrates various facets of the Group’s operations. The system provides management with data, analysis, variations, exceptions and other input relevant to the Group’s performance. Employees within the Group are guided by the Information Technology (IT) policies and procedures such as IT Security Policy, Access Management, Cyber Security Framework and End User Policy. As part of the measures to raise awareness, cyber security and ransomware awareness mandatory training are conducted to all employees through online learning platform. 142 STATEMENT ON RISK MANAGEMENT AND INTERNAL CONTROL