FGV Annual Report 2015

144 Felda Global Ventures Holdings Berhad Annual Integrated Report 2015 Statement on Risk Management and Internal Control INTERNAL CONTROL FRAMEWORK FGV Group manages its risks by implementing various internal control mechanisms. The mechanism applies to all subsidiaries within the Group and excludes joint venture companies and associates not managed by FGV. However, the Group ensures that its interests and investments are safeguarded by having Board representation(s) and/or nominated appointee(s) in the respective joint ventures and/or associates. The key elements of the Group’s internal control structure are as follows: 1. Ethics and Integrity • Code of Ethics and Conduct for Employees The Group has Code of Ethics and Conduct for Employees (the Code), which sets out the principles to guide its employees in carrying out their duties and responsibilities to the highest standards of personal and corporate integrity. The Code covers areas such as compliance, integrity, conduct in the workplace, business conduct, protection of the Group’s assets, confidentiality and conflict of interest. The Code is available to all employees via the Group’s internal portal. • Integrity Initiatives As one of the signatories to the Corporate Integrity Pledge with the Malaysian Anti-Corruption Commission (MACC), the Group is committed to enhance its business environment by emphasising on transparency, integrity and good governance. In 2015, the Group has undertaken the following integrity awareness initiatives: • Integrity Awareness road show tour program through Jelajah Integriti & Integrity Talk. As at 31 December 2015, 7,082 staffs from a total of 19,000 staffs have signed the Integrity Pledge. • Pilot study for FGV SMART Integrity System to measure the level of integrity for individual and organisation was carried out from May 2015 – July 2015. • Integrity Tagline Competition – “Integrity Is Your Only True Compass” the winner was announced on Mar 2015 FGV Group has also extended its integrity initiative to its partners by implementing a group-wide Integrity Pact. This pact requires registered vendors and contractors to sign a pledge to uphold integrity principles in their dealings with the Group. As at 31 December 2015, a total of 8,846 registered vendors have signed the Integrity Pact. • Whistleblowing Policy and Procedures FGV Group has a Whistleblowing Policy and Procedures that serves as an official channel for its employees to raise their concerns in a secure and confidential manner. 2. Authority and Responsibility • Organisation Structure The Group organises its operations into six (6) Business Clusters, which are supported by Corporate Centre Divisions at FGV level. In achieving the Group’s strategic and business objectives, the Group has undergone several key transformational changes and an effective organisational architecture has been designed which combines employees in functions and product structures, across the Group’s Business Clusters and Corporate Centre Divisions. A matrix reporting model has been designed and implemented within FGV Group which provides the following benefits: Internal Control Structure Policies & Procedures - Group and Operational Policies & Procedures Ethics & Integrity - Code of Ethics & Conduct for Employees - Integrity Initiatives - Whistleblowing Policy & Procedures - P-R-I-D-E Information & Monitoring - Financial and Operational Review - Executive Information System - Budgetary Process - KPI Monitoring - Group Internal Audit Authority & Responsibility - Organisation Structure - Authority Limits - Job Description Competency - Learning Areas Framework - Functional Capability Development - Leadership Programs - Developmental Capability Development