SPECIAL REPORT SEPTEMBER 11, 2017
Recognising excellence in Malaysian organisations that are making strides to build trust special report | A2 MALAYSIA SEPTEMBER 11, 2017
Message from our KEYNOTE ADDRESS managing partner
As we venture forward into the future, the changing environment is ushering us into an unexpected trajectory. New challenges are emerging as jobs are being displaced by technology, as global imbalances from globalisation are resulting in protectionist policies and as shrinking margins and rising costs have affected the priority being accorded by businesses to the environment and to the value they bring to society. Cumulatively, these developments require greater trust and faith on the prevailing systems and arrangements to address these challenges.”
This event is a call for joining the dialogue on trust and for putting trust at the forefront — at the centre y Twitter feed is a source of constant news and the most trustworthy or that they are better trusted than of leadership and board discussions Mstories about trust, which either keep me on my other companies in Malaysia. Instead, these are the com- toes, arouse my curiosity or leave me with points panies that we believe are making the most attempts to to raise the standards and improve to ponder. build trust with their key stakeholders. the culture of always doing what is This is a clear example of how trust — or sometimes The winning companies demonstrate examples of good right and thereby restoring trust and the lack of it — is a common denominator that affects trust building at a strategic level as well as in their busi- all of us. ness operations. They have a keen understanding of how faith in our systems to deliver the Society’s expectations of trust and accountability have market trends like technological advancements and rapidly aspired results of a better future.” increased immensely in the past decade or so. In 2002, changing economic conditions impact their business strat- when PwC fi rst addressed trust in our Global CEO survey, egy and model, and are willing to share this transparently. Tan Sri Dr Zeti Akhtar Aziz only 29% of CEOs globally thought corporate misdeeds They are also making attempts to build trust with their Former governor, Bank Negara Malaysia; posed a serious threat to growth. Today, 58% of CEOs customers and investors based on this business strategy. Current co-chair, board of governors, globally worry about the potential fallout from the lack Asia School of Business of trust in business, according to our latest (20th Global Trust and the way forward for CEO) survey. Corporate Malaysia What’s clear is that there are opportunities for businesses OPENING SPEECH Why the Building Trust Awards? Why now? to enhance their trust-building efforts as they continuously We conceived our Building Trust Awards in 2015 against work to earn the trust and confi dence of their customers, a backdrop characterised by economic uncertainties and investors, the media and other stakeholders in a landscape lacklustre consumer confi dence. of increasing public scrutiny. Guided by PwC’s purpose, which is “to build trust in Trust should no longer be seen as the elephant in the society and solve important problems”, the Awards seek room in this environment of constant change. to recognise companies in Malaysia that are making efforts It is our fervent hope in PwC that these Awards will to build trust with their customers and investors. The fi rst serve as a platform to heighten the conversation on trust of its kind in Corporate Malaysia, the Awards introduce a among businesses, inspiring more best practices around distinctive way of measuring trust, beyond the fi nancials trust in Corporate Malaysia. of the companies assessed. An indicator of our success would be to see society Through the Awards, we hope to shape the narrative join our discussion on trust. We have started engaging on trust in Corporate Malaysia, sending out the message the wider public, young Malaysians and our future lead- that trust can be a valuable organisational asset that can ers, giving them a space for discourse and to contribute We as a ğ rm will engage clients and be cultivated, managed, measured and protected to bring their views on trust as part of our wider Building Trust friends like you here tonight, as part tangible gains to businesses. programme. We hope these efforts will, in time, bear of our effort to set the right tone from Our 2017 Awards build on the efforts we started with fruit in broadening the conversation on trust among the the top. We will continue talking to our inaugural Awards. Twenty fi nalists were selected from public to infl uence the future shape of business in Cor- our own staff, important ambassadors Bursa Malaysia’s top 50 public-listed companies (PLCs) porate Malaysia. of trust, because we know that in as part of our initiative to highlight the importance of order to build trust externally, you building trust in Corporate Malaysia. Sridharan Nair need to have it right internally. A distinguishing feature of the Awards is our unique Managing partner, methodology, which is underpinned by our belief that PwC Malaysia And ğ nally, we will continue our trust is a journey in resilience — a mindset that takes time conversations with the young. to cultivate throughout the organisation. Consistent with our previous Awards, we did not call for submissions or Datuk Mohammad Faiz Azmi nominations by the companies. Executive chairman, PwC Malaysia We do not proclaim that the winning companies are MALAYSIA SEPTEMBER 11, 2017 special report | A3
Recognising the value of trust
Members of PwC Malaysia’s country management team and the judges with representatives of the winning companies (Sime Darby and Axiata Group) and the special mention recipients
he second edition of PwC Malaysia’s THOUGHTS ON WINNING Building Trust Awards again turned Tan Sri Mohd Bakke Salleh the spotlight on the importance of with the trophy Ttrust as it recognised and celebrated “To me, I think it is Malaysia’s top public-listed companies indeed an honour that are making strides in building trust with to be given that their stakeholders. recognition and This year, Sime Darby Bhd emerged as I would pray and the winner of the awards, building on its hope that we previous accomplishment as one of the joint continue to develop runners-up in the inaugural awards in 2015. on where we are today, Telecommunications giant Axiata Group Bhd to strengthen our governance was named runner-up at the black-tie gala dinner and awards ceremony held at Hilton processes and to improve on Kuala Lumpur last Wednesday. the building trust process, to Both were selected from 20 fi nalists by be better as we move along.” an independent panel of judges with broad as well as several high-profi le cybersecuri- Nestlé (M) Bhd excelled in PwC Malay- expertise and experience in different ele- ty breaches and ethical lapses. These are sia’s public poll in May while Astro Malaysia Tan Sri Mohd Bakke Salleh ments of the business world. The fi nalists among the issues contributing to declining Holdings Bhd was ahead of the pack when President & group chief executive were, in turn, shortlisted from the top 50 trust in institutions,” he adds. it came to enjoying stakeholder confi dence, Sime Darby Bhd (winner) companies on Bursa Malaysia by market The Building Trust Awards, the fi rst of as demonstrated by an analysis of digital capitalisation. its kind in Malaysia, seeks to evaluate how conversations via PwC’s Trustworthy Organ- A unique feature of the awards is that all public-listed companies perform beyond their isation Model. evaluated companies are selected based on fi nancial statements as well as in respect of At the awards ceremony, former Bank Ne- what they disclose to stakeholders via cor- their corporate reporting and how they are gara Malaysia governor Tan Sri Dr Zeti Akhtar porate reporting. The qualifi ed companies perceived by stakeholders. Aziz, who was a member of the judging panel, “… we recognise are then put through a rigorous multi-stage It follows the establishment of PwC Ma- said the Building Trust Awards is an impor- the importance of assessment involving different dimensions laysia’s Building Trust Programme in 2015, tant initiative that highlights the importance building value of trust before the fi nal shortlist is present- says managing partner Sridharan Nair. The of trust in driving the sustainability of busi- and earning ed to the judges. fi rm has sought to encourage companies to nesses and organisations, especially amid a trust through “Building trust is a journey. What dif- perceive trust “as an asset that can be meas- global climate of eroding trust. continuous open ferentiates the 20 fi nalists and the winning ured, managed and nurtured to bring tangi- “This event takes place at a time when the and transparent companies is their commitment to earn the ble gains to businesses in an environment world sees the level of trust to be probably at engagements with our trust of the stakeholders [that are] most of constant change”. its worst with trust becoming increasingly rare important to them as they are continually For the first time, this edition of the in supply,” said Zeti. stakeholders in all our dealings to tested by forces beyond their control in this awards also conferred three special men- “Our concern here is the commitment to ensure we are able to thrive and dynamic business environment,” says PwC tions in recognition of outstanding perfor- drive sustainability by developing strategies contribute to local markets where Malaysia executive chairman Datuk Moham- mance by companies evaluated in specifi c that drive a performance, which is also rein- we operate.” mad Faiz Azmi. categories of trust-building assessments. forced by ethics and integrity. The call here “In recent months, we have seen business- Sime Darby shone the brightest, as bench- is to nurture the right environment for trust Tan Sri Jamaludin Ibrahim es come under greater public scrutiny amid marked against PwC’s Integrated Reporting to fl ourish and to recognise the value it can Managing director/president & group CEO continuing global economic uncertainties,
Building Trust Awards gala night
Representatives of fi nalist companies with PwC’s managing partner Sri Nair and judge Faris Hadad-Zervos (from left): Axiata Group, DiGi.Com, Gamuda, Malakoff Corp, Maybank, IHH Healthcare, Fraser & Neave Holdings, CIMB Group Holdings, Astro Malaysia Holdings and Alliance Financial Group
Nestlé (M) Bhd’s Eugene Chan, Datuk Mohd Rafi k Shah, Tan Sri Syed Shahnaz Jammal (CIMB Group Holdings), Shafi q Abdul Jabbar Gary Lee and Nurul A’in Abdul Latif (PwC) Anwar Jamalullail, Toh Puan Dr Aishah Ong and Nirmalah Th urai (Astro Malaysia Holdings), Datuk Hamidah Naziadin and Yap Wai Yip and David Lau (Axiata Group) (CIMB Group Holdings) and Sharifah Naelah Alhabshi (Maxis Bhd) FINALISTS
Alliance Financial Group CIMB Group Holdings
Tan Sri Mohd Bakke Salleh (Sime Darby), Datuk Wong Tuck Wai and Datuk Khor Chap Jen (S P Setia), Datuk Amirul Feisal Wan Zahir (Maybank) and Datuk Ahmad Pardas (S P Setia) DiGi.Com Fraser & Neave Holdings MALAYSIA SEPTEMBER 11, 2017 special report | A5
Representatives of fi nalist companies with PwC’s executive chairman Datuk Mohammad Faiz Azmi and judge Faris Hadad-Zervos (from left): Maxis Bhd, Petronas, Sime Darby, Telekom Malaysia, Westports Holdings, YTL Corp, Tenaga Nasional, S P Setia, Public Bank and Nestlé (Malaysia)
Tan Sri Dr Zeti Akhtar Aziz and Sri Nair Fatimah Merican (UOB Malaysia), Chin Suit Fang (PwC) Desmond Goh and Heather Khoo (PwC) with Yap Wai Yip (Axiata Group) and Vimala Menon (DiGi.Com) and Nestlé (Malaysia)’s Datuk Mohd Rafi k Shah
FINALISTS
Gamuda IHH Healthcare
Runner-up: Axiata Group Malakoff Maybank special report | A6 MALAYSIA SEPTEMBER 11, 2017
Irvin Menezes (PwC) and David Lau (Axiata Group) Astro’s Shafi q Abdul Jabbar and Datuk Rohana Rozhan PwC’s Kenneth Lim (second from left) and his bandmates
Toh Puan Dr Aishah Ong of Nestlé (Malaysia), Prof Dr Teo Soo-Hwang (Cancer Research Malaysia), Dr Tan See Leng (IHH Healthcare) and Emcees Stephanie Caunter and Ling Hsern Wei Tan Sri Siti Sa’diah Sheikh Bakir (KPJ), Sir David Tweedie (chief judge) Datin Linda Ngiam (Star Media Group) and Datuk Amirul Feisal Wan Zahir (Maybank) FINALISTS
Maxis Petronas
Special mention: PwC’s Trustworthy Organisation Model — Astro Malaysia Holdings Public Bank S P Setia MALAYSIA SEPTEMBER 11, 2017 special report | A7
Sundara Raj (PwC) and Datuk Zainal Amanshah (InvestKL) Norliwati Abdul Wahab (Petronas Dagangan), Tengku Muhammad Taufi k in conversation (PwC) and Nur Asyirin Ibrahim (Petronas Dagangan)
Datuk Bazlan Osman and Tan Sri Sulaiman Mahbob David Hoong (Fraser & Neave Holdings), Lee Tuck Heng (PwC) (Telekom Malaysia) and Datuk Zainal Amanshah (InvestKL) and Tan Hock Beng (Fraser & Neave Holdings)
Fiona Wilkinson (ICAEW Malaysia), Salika Suksuwan (PwC) and Loh Wei Yuen and Sharron Gunn (ICAEW Malaysia)
Guests mingling in the Hilton Kuala Lumpur foyer FINALISTS
Telekom Malaysia Tenaga Nasional Westports Holdings YTL Corp
Special mention: PwC Malaysia Trust in Business: Public Poll — Nestlé (Malaysia) It’s a wrap! … PwC’s Building Trust Awards 2017 committee special report | A8 MALAYSIA SEPTEMBER 11, 2017
NOTABLE QUOTES Awards methodology “PwC has undertaken a very good initiative. Most Malaysian corporates, if benchmarked against other regional companies, are up there when it comes to transparency, accountability and integrity — but, of course, there is always room for improvement. ” Tengku Datuk Seri Zafrul Aziz, Group chief executive CIMB Group Holdings Bhd
“I think it’s an accolade for all of my colleagues, shareholders and investors. It’s a testimony to all the effort and resources they put in to build trust with our patients by advocating transparency, and also in how we negotiate with our vendors and business partners.” Dr Tan See Leng,
Managing director & CEO
IHH Healthcare Bhd
“It hits the core of what is needed
most — an award that reflects the sincerity of an organisation in * These were the Bursa Malaysia pursuing everyone’s own business Top 50 public-listed companies affairs.” above RM1 billion market capitalisation Datuk Seri Mohammed Shazalli Ramly, Managing director & Group CEO Telekom Malaysia Bhd
“It’s a commendable initiative. I think delivering on promises is what builds trust. When we commit to our stakeholders certain targets and profits, we must deliver on that promise. Likewise for our customers, we’ll deliver the houses on time and of a certain quality, including making good of any latent shortcomings that might arise.” Datuk Khor Chap Jen President & CEO THE JUDGES’ REFLECTIONS S P Setia Bhd An independent panel of judges selected the winners via a face-to-face deliberation. The judges each contributed rich viewpoints to the discussion, shaped by their diverse backgrounds and experiences.
Sir David Tweedie Tan Sri Dr Zeti Akhtar Aziz Tan Sri Dr Jemilah Mahmood Faris Hadad-Zervos Chairman, board of trustees, International Former governor, Bank Negara Malaysia; Under-secretary-general, partnerships, Country manager and head, Valuation Standards Council; past chairman, current co-chair, board of governors, International Federation of Red Cross World Bank Group Global Knowledge International Accounting Standards Board Asia School of Business and Red Crescent Societies and Research Hub in Malaysia
A timely initiative to address Building the right environment Trust goes the distance More focus on internal trust needed the gaping trust defi cit in business for trust to fl ourish Companies would do well to We’ve heard many instances of how it This is my second time returning as a judge The awards presented today have taken communicate their brand value in only takes one incident to undermine for PwC’s Building Trust Awards. I believe into account the different dimensions terms of the work that they do, the trust in companies that took years to the awards are a very timely initiative of trust and have set a high bar for a competencies they have, and the way build. It’s a refl ection of the underlying to address declining trust levels among comprehensive set of requirements to be they handle their stakeholders’ interests. corporate ethos that a company has. businesses in Malaysia amidst continuing met. But on top of that, there’s a greater Ultimately, the health of a company is a economic uncertainties and increasing The aspirations of this initiative pressure now on brands to commit result of its investment and its people. stakeholder scrutiny. will, however, be fully achieved when to good stewardship of resources, Also, I observe that we often look PwC has evolved in its approach to companies actually effectively use trust environment, people and social needs. at trust as how a company is perceived assessing trust among the companies to add value to their business and when The future belongs to businesses that externally, but there should perhaps be selected as fi nalists, based on the belief business plans being developed take can differentiate themselves by focusing more focus on internal trust. Ultimately, that trust is a journey and a mindset that into account the building of trust for on the triple bottom line of “people, an organisation is nothing more than takes time to cultivate. achieving a sustainable business. planet, profi t”. Leaders can play an the combination of all of its staff and its This year, a public poll was introduced Of importance is that the emphasis important role in helping the country to management. Companies that build on to provide another element of trust for the will also need to be beyond just achieve the UN Sustainable Development the strengths of their employees will be judging panel to consider. It supplements achieving profi ts but also contributing Goals (SDGs). As a start, understand able to withstand any form of pressure the companies’ reporting efforts and towards creating a better world for all its which of the SDGs are important to and still maintain a true north in this digital conversations on these companies stakeholders. your sector so that you can direct your environment of volatility. based on what customers and investors investments and resources effi ciently. perceive of them (in terms of competence, This will enable you to align your experience and values trust, the three business with the SDGs while helping trust attributes as defi ned by PwC UK’s the country get on the path towards Trustworthy Organisation Model). sustainable growth. MALAYSIA SEPTEMBER 11, 2017 special report | A9
Turning the How the companies spotlight on trust were assessed For the Building Trust Awards 2017, 50 of Bursa Malaysia’s top public-listed companies by market Sime Darby’s Tan Sri Mohd Bakke capitalisation were selected for evaluation, which Salleh with his team involved several stages of assessment by PwC Malaysia before a fi nal face-to-face deliberation by an independent panel of judges. Th e fi rst phase began with an initial assessment of each company’s corporate reporting in its annual report using the International Integrated Reporting Council’s Integrated Reporting Framework. From this phase, 20 fi nalists were short-listed. PwC then assessed the public perception of each fi nalist among its stakeholders using PwC UK’s Trustworthy Organisation Model (TOM). In a nutshell, the TOM evaluates digital conversations of stakeholders, focusing on three dimensions of trust — competence, experience and values. Th ese digital conversations are sourced from over three million web Sime Darby ahead of the pack lighted as the most important aspect sources over a six-month period. ime Darby Bhd has emerged as the to them. Sclear winner of PwC Malaysia’s PwC found that Sime Darby’s key PwC Malaysia also conducted a public poll in two Building Trust Awards 2017, thanks performance indicators and priorities for languages over two weeks in May. to the group’s consistent performance the year were well defi ned in its annual across the elements of PwC’s trust report, along with clarity of its business methodology. model and value creation discussed Its clarity in fi nancial reporting and from each stakeholder’s perspective. efforts to create shareholder value re- sulted in a clear consensus among the Axiata delivers on expectations judges that Sime Darby is ahead of the he runner-up in the Building Trust pack when it comes to building trust. TAwards 2017, telecommunications In the fi rst stage of the assessment, giant Axiata Group Bhd performed which evaluated corporate reporting commendably in all three aspects of standards, Sime Darby was the only the trust methodology. Axiata Group’s Mohamad Idham Nawawi company that scored more than 50% PwC’s evaluation of Axiata’s cor- and David Lau in the integrated reporting framework porate reporting found that its annual benchmark in a fi eld of 50 selected report provided good disclosure of the dimension, signifying that the group un- fi rms. various factors that its board takes into derstands the needs of its stakeholders. The group subsequently came out consideration during the decision-mak- Both the trust scores contributed tops among the 20 fi nalists in the pub- ing process, such as the principal risks to the group’s overall high marks. The lic perception stage. When measured involved and activities or controls that scores, along with the positive inves- against PwC UK’s Trustworthy Organi- are in place to mitigate the effects of tor conversations online regarding the sation Model (TOM), its public percep- those risks. company’s long-term prospects, led tion was above average in its industry. Furthermore, the group’s strategic to its strong performance in the trust It also scored signifi cantly higher in objectives were clearly supported by methodology assessment. the competence and values trust di- quantifi able metrics. The public poll section of the as- mensions than the overall average. Based on its assessment of digital sessment also showed that the group Sime Darby’s public poll score was conversations about Axiata, PwC found outperformed its peers in the compe- also higher than the overall average of that the group performed well in the tence trust dimension — which assess- the other 20 fi nalists. experience trust dimension, meaning es how well a company delivers on its It is worth noting that it scored that it has consistently met the expec- promises — an area most of Axiata’s the highest in the competence trust tations of its stakeholders. peers in the media industry tradition- dimension, which respondents high- It also excelled in the values trust ally struggle with. E
SPECIAL MENTION
Nestlé (Malaysia) Bhd’s results came In PwC’s TOM, Astro Malaysia Holdings Sime Darby Bhd’s annual report stood out in PwC’s out on top in PwC Malaysia’s Trust in Bhd’s leading performance in Integrated Reporting Framework Business: Public Poll. The company experience and values trust benchmarking as it included a received the highest experience pushed it significantly ahead of discussion of key market trends, and values scores of all 20 Building the other finalists. The company connected the group’s priorities Trust Awards 2017 finalists. was also stronger in all three trust for the year ahead with its Nestlé’s performance was also dimensions compared with other business strategy and KPIs, and stronger compared with that of other finalists in the same industry. disclosed its business model companies in the same industry. “For Astro, in terms of packaging together with value creation from “Building trust is all about what you do. A lot of people our products, content and services, it’s extremely important each stakeholder’s perspective. basically just focus on the idea of building trust with that we not be deemed disingenuous. You have to mean “There is never a wrong time to build trust or build upon consumers, individuals, or stakeholders – but it’s about being what you say and only say what you mean. And practise it the trust you may have developed. At Sime Darby, building consistent in really living up to your values and your principles.” because that is part of your DNA.” trust is one of the six winning mindsets that we have adopted for our internal cultural transformation programme.” Alois Hofbauer Datuk Rohana Rozhan Executive director & CEO Executive director & Group CEO Tan Sri Mohd Bakke Salleh Nestlé (Malaysia) Bhd Astro Malaysia Holdings Bhd President & Group chief executive Sime Darby Bhd special report | A10 MALAYSIA SEPTEMBER 11, 2017
SCENES FROM THE JUDGES’ MEETING
•
• • • “Our goal hasn’t • changed since the • inception of our Awards in 2015. We want to send out the message that trust is a valuable • asset, which can be measured, nurtured and protected to • drive strong business performance.” • Pauline Ho Assurance and People Partner, PwC Malaysia
THE 20 FINALISTS MALAYSIA SEPTEMBER 11, 2017 special report | A11
THOUGHTS ON BEING RECOGNISED
Our journey “There are times when you are under a lot of In 2015, PwC Malaysia set out on a journey to pressure as a business to encourage Malaysian companies to make trust-building do the right a priority. Since then, we have continued to broaden thing. And trust is basically doing this conversation with more stakeholders, including the the right thing all the time, general public and future leaders. consistently. I think once you do that, the governments of the countries you work in will believe in you, what you stand for; the customers will believe in you, and most importantly, your staff will believe in you as well. These are the things that we stand for.”
David Lau Independent non-executive director and chairman of Axiata Group Bhd’s board audit committee
“There are no shortcuts and there is no magic formula. It is something that we have to do every day. And one of the things that we have to learn is that we have to become even more obsessive about our customers and embrace their stories, their hopes and their aspirations, and tell these in the most meaningful way, including also the truth and in regards to dealing with their issues.”
Datuk Rohana Rozhan Executive director & group CEO Astro Malaysia Holdings Bhd
“We are very honoured to have been selected as a ğ nalist two years in a row. We believe that trust is an absolutely critical asset for a company to sustain and be successful in the long run. You build trust by being consistent and living up to your values. In short, walking the talk.”
Alois Hofbauer Executive director & CEO Nestlé (Malaysia) Bhd special report | A12 MALAYSIA SEPTEMBER 11, 2017
Recognising excellence in Malaysian organisations that are making strides to build trust.
Congratulations
Winner
Runner-Up
Special mentions For their efforts in building trust as indicated by
PwC’s Integrated Reporting
http://pwc.com/my/bta2017
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