Cover Mcot Sdeng

1. Message from the President

“Creating a Better Society” is MCOT’s approach towards Sustainability Development.

At the heart of our organization, we have realized that, MCOT, in its capacity as Thailand’s leading media organization, could be more than merely a profit-oriented organization. In fact, we have strived to maintain our socially and commercially balanced approach enabling us to play a vital role in driving social progress through the provision of our high quality “Content” that can influence people’s attitudes, way of thinking, beliefs and behaviors. Amid rising global awareness of the significance of corporate sustainable development, there have been calls for all organizations’ greater recognition of the importance of maintaining balance among these three dimensions; social, environment and economic in managing their business. Nevertheless, MCOT, in its capacity as a media organization, has been expected to play a primary role in addressing social issues, especially that concerning the building of “Brainprint”, and as such the question “What is the media’s responsibility in promoting patterns of thinking and actions of all members of society?” has been raised. Although this is the first Sustainable Development Report issued by MCOT, we have developed certain guidelines for the implementation of corporate sustainable development and have focused our efforts in making the necessary changes to meet future requirements since 2012. Later in 2013, in recognition of the need to adapt its business processes that enable balanced growth of the Company in the context of the digital television era, global economic uncertainty and unpredictability, rapidly changing technologies, the new, sophisticated, knowledgeable consumers’ needs, greater globalization and environmental limitations, MCOT set forth a concrete policy on Media Social Responsibility (MSR). Under the MSR policy, MCOT has focused on developing its strengths through integrating these three core principles; Responsible Action (Act), Creative Media Offerings (Creativity) and Commitment to Social Development (Society) into its business

1 processes or day-to-day operations to enable social change that leads to a better quality of life of individuals and society. The processes of MSR policy formulation and strategy development were conducted through employee engagement, the Company’s key internal stakeholders, as well as that with some significant external stakeholders including audiences/listeners who have access to MCOT’s media outlets, prominent media scholars involving in media development as well as members of professional media associations who play a key role in monitoring compliance with the code of ethics of the media. In 2014, MCOT’s stakeholder engagement will be expanded to cover other groups of stakeholders such as shareholders, supervisory government agencies, customers purchasing airtime and business partners. In addition, the MSR policy formulation and strategy development initiated in 2014 will be integrated into the Company’s managerial decision making process and day-to-day operations of all departments. The principles and concept about Media Social Responsibility (MSR) and corporate sustainable development were clearly communicated to employees at all levels to empower them to be the driving force behind the development towards a better society that originates inside the organization and expands to the larger society.

2. Our business

MCOT Public Company Limited (MCOT), a state enterprise under the supervision of the Office of the Prime Minister, was registered as a public limited company since 2004 with the objectives of operating the mass media business. With MCOT’s comprehensive and integrated media services --TV, radio and other media businesses--, we take pride in keeping the public informed of accurate, neutral, impartial and reliable information, offering high quality content (Responsible Content), ensuring equal access to knowledge and information, raising public awareness on significant issues and promoting important values. MCOT’s vision reflects our desire to be one of ASEAN’s leading integrated multimedia organizations with responsibility towards society and commitment to promoting a knowledge-based society.

MCOT’s core businesses comprise self-running business and joint operations. MCOT’s self-running business is divided into 2 types of businesses: broadcast including the free-to-air Modernine TV, a radio network, satellite TV, a website and new media and non-broadcast including MCOT Academy, an institution offering specialized training service, etc. MCOT has also joined hands with private companies under joint operation agreements with Bangkok Entertainment Company Limited and True visions Company Limited. MCOT’s mission statement is as follows:

Mission 1. To stand as one of ASEAN’s leading multimedia organizations with responsibility towards society and stakeholders. 2. To achieve sustainable growth in operating comprehensive multimedia business. 3. To enhance the Company’s capabilities that enable it to continuously develop as a modern, comprehensive and dynamic multimedia organization.

The organizational structure of MCOT is divided into 7 main business groups as detailed below. 1. Television Group comprising 3 offices: 1.1 Office of Television (TV Programming Department, TV Program Production Department, TV Production Support Department, Art Department) 1.2 Office of New Business (New Business Development Department) 1.3 MCOT Academy ( MCOT Talent Management Department and MCOT Training Center) 2. The Thai New Agency comprising 2 Bureaus: 2.1 Domestic News Bureau (Editorial Department, Department of Domestic News 1,Department of Domestic News 2, Department of Domestic News 3, Provincial News Department, News Production Support Department) 2.2 International News Bureau (International News Department)

3. Radio Group comprising 1 office: 3.1 Office of Radio (FM 95 MHz., FM 96.5 MHZ., FM 99 MHz., FM 100.5 MHz., FM 107 MHz., operted by SEED MCOT) 4. Engineering Group 4.1 Office of Network Engineering (Engineering planning and Development Department, Engineering Operations D0epartment, Engineering Service Department) 4.2 Information Technology Department 5. Marketing and Sales Group comprising 2 offices: 5.1 Office of Marketing (Marketing Strategy and Management Department, Business Relations and Marketing Events Department) 5.2 Office of Sales (Sales support and Special Events Department, Sales Management and Customer Service Department, Advertising Time Management Department) 6. Financial Group comprising 1 office and 2 departments: 6.1 Accounting and Finance Office (Accounting Department, Finance Department, Budget Department) 6.2 Corporate Strategy Department 6.3 Risk Management Department 7. Administration Group 7.1 Human Resources Office (Human Resources Department, Human Resources Development Department, Employee Welfare and Benefits Department) 7.2 Office of Legal Affairs (Legal Affairs Department, Business Law Department) 7.3 Office of General Administration (Purchase Department, General Services Department)

Besides, there are 4 offices that are directly under the President’s supervision in this organizational structure comprising; 1. Office of Corporate Secretary (Corporate Secretary Department) 2. Office of Internal Audit (Specialist (management audit), Specialist (Accounting and Finance audit) 3. Office of the Administration (Secretary to the President Department, Corporate Communication Department) 4. Office of the General Inspector (Senior Inspectors)

Organization Chart of MCOT Public Company Limited

Currently, the registered capital of MCOT Plc. is 3,835,000,000 baht. As of 31 December 2013, the Company consists of 1,461 employees, 1,104 of which are working in operational units and 357 of which are working in supporting units. The Company’s net income of 2013 equals 5,984 million baht. Based on MCOT’s shareholding structure, the top 10 largest shareholders who represent 77.28% of all shareholders are as follows:

1. Ministry of Finance 65.80% 2. The Government Savings Bank 11.48% 3. Thai NVDR Limited Company 4.84% 4. Government of Singapore Investment Corporation C 2.78% 5. American International Assurance Company, Limited-Apex 0.73% 6. Government of Singapore Investment Corporation H 0.65% 7. TFB FOR MFC-Thai FUND INVESTMENT PLAN 0.64% 8. Thai Life Insurance Company Public Limited 0.56% 9. Mr. Sophon Mitpanpanich 0.56% 10. GOLDMAN SACHS & CO 0.50%

Modernine TV, MCOT’s flagship business, produces and broadcasts TV programs and monitors its broadcast on a 24-hour basis. MCOT’s program signals are transmitted from its headquarters in Bangkok located at 63/1, Rama 9 Road, Huay Kwang Sub-District, Huay Kwang District, Bangkok 10130 to its relay stations nationwide. It has been over 10 years that MCOT has introduced the new look of its TV station under the concept of "Modern Television" or "Modernine TV" focusing on offering up-to-the-minute news reports and edutainment programs. Besides, a change in program presentation and deployment of new broadcast technologies were part of this big change of MCOT.

In 2013, MCOT has introduced a new concept of “Infinity Inspired” in an attempt to increase the percentage of its own programs to 50% to ensure adequate availability of knowledge content in its programming in accordance with the concept of " Wisdom Enables a Better Society", with a focus on delivering up-to-the-minute news reports, knowledge and creative entertainment programs that can inspire the audiences. In addition, MCOT joined hands with its business partners to hold roadshows in all regions of the country with an aim to broaden its reach to the audiences and listeners across the country. The roadshows allowed engagement with our stakeholders who provided us with useful information and feedback for improving our operations. In addition, in the same year, MCOT was permitted to conduct a digital television trial which allowed us an opportunity to prepare ourselves for entering into the auction for the licenses to operate digital TV channels. With MCOT’s capabilities, expertise and long experience in the media industry, we won two licenses to operate two commercial digital terrestrial television channels at national level in two categories, HD variety and SD kids and family. MCOT runs 62 F.M. and A.M. radio stations offering distinctive and a wide range of knowledge and entertainment programs to its listeners across the country. Under the concept of “Modern Network Moving towards Knowledge-Based Society, MCOT Radio Network strives to provide useful information and knowledge that people can use for improving the quality of their lives and make some programs dedicated to public and community service. In addition, local and overseas listeners can listen to our live and returning radio programs via MCOT’s web site: www.mcot.net or via applications on smart phones. MCOT radio programs are also integrated with such social media platform as YouTube, Facebook, Twitter, etc. Apart from the aforementioned core businesses, MCOT has also focused its attention to new media business consisting of Satellite TV service on C Band and Ku

Band. Our satellite TV channels, MCOT1 and MCOT 2 can be viewed nationwide or via the following websites: www.mcot.net/mcot1 and www.mcot.net/mcotworld. Embarking on our digital media business, MCOT has introduced MCOT Application, a new channel for viewing TV programs on Smart Phones allowing it to penetrate into virtually all media market segments. MCOT’s comprehensive and integrated multimedia platforms ranging from TV, radio, satellite TV, online media to mobile application have given us a competitive advantage providing opportunity to create new revenue streams and further develop its digital TV network business. However, MCOT is facing significant challenges, one of which is the effect of compliance with rules and regulations of Office of the National Broadcasting and telecommunications commission (NBTC) resulting in growing numbers of competitors which may cause a decline in its revenue and market share. The other major challenge facing MCOT is rapid changes in media and communication technologies, as such the Company needs to improve its equipment and enhance its employees’ abilities and skills and internal management in order to be able to efficiently compete and change organizational culture and values. Therefore, MCOT will strive to deliver high quality content and disseminate accurate, reliable, impartial and diversified information and news service, which are genuine needs of socially conscious consumers. The concept of social responsibility and sustainable development is therefore crucial to achieving steady growth of any media organization, not only for its financial stability and growth and the quality of society within the organization itself, but also for fostering economic and social values within the community where the Company is situated as well as in the larger society of its stakeholders.

3. MCOT with Media Social Responsibility and Sustainable Development

MCOT is Thailand’s first media organization who has given priority to social corporate responsibility (CSR) practices over a certain period of time. Operating business in line with social development has become MCOT’s vision and mission since its establishment as the Mass Communication Organization of Thailand (M.C.O.T.) in

1977. During the past several years, the Company has been committed to presenting neutral and reliable news and information, and high- quality entertainment through its comprehensive media services, under the theme of “Knowledge – Based Society”. Later in 2013, the new concept of “Wisdom Society” has been introduced resulting in an increase in the percentage of its own programs with premium edutainment content. In addition, MCOT, in collaboration with Moral Promotion Center (Public Organization) under the supervision of the Ministry of Culture and other leading media organizations in Thailand, formed a Moral Media Network. The role and mission of this network is to draw up and implement short-term and long-term action plans for the promotion of morality and ethics in the Thai society. As part of its initiative on sustainable development, MCOT has joined Thailand Business Council for Sustainable Development (TBCSD) as a member. To enable the Company to operate business with CSR principles that will lead to the achievement of sustainable growth in economy, society and environment, Media Social Responsibility (MSR) Master Plan was formulated in 2012. Realizing that the media can influence people’s attitudes, ways of thinking, beliefs and behaviors, MCOT is determined to promote moral and professional ethics to make positive difference in the society.

In order to achieve social sustainability, a set of policies are identified as follows: 1. To encourage operational responsibility in all units 2. To perform duty in accordance with principles and guidelines that are widely accepted 3. To maintain balance among three dimensions: economy, society, and environment 4. To enhance engagement with internal and external stakeholders 5. To raise the awareness of sustainable development in the society to enable accurate perception of the concept

The following concepts, principles and international standards are applied to formulate the aforementioned policies: 1. Concept of good corporate citizenship 2. Best practices on social responsibility adopted by Corporate Social Responsibility Institute and Stock Exchange of Thailand 3. Principles on social responsibility, in accordance with ISO 26000 4. Global Reporting Initiative: GRI-Media Sector Supplement 5. United Nations Global Compact The three dimensions on economy, society and environment on which MCOT has placed importance are as follows:

Economic dimension 1.MCOT will continue to develop growth in revenue while maintaining long-term economic stability for the sake of investors, employees, and local community. 2. MCOT will respond to socially responsible investment. 3. MCOT will offer social value-creating activities to its customers and business partners. Social dimension 1. MCOT will support social investment and provide the society satisfactory social returns, to create good quality of work life including occupational stability and security, and to improve quality of life for the people. 2. The Company’s responsibilities for all aspects will inspire the people in the community. 3. MCOT will be the key force in creating knowledge and influencing proper attitude and behavior of the members of society. Environmental dimension MCOT will carefully operate its business to reduce environmental effects. The Company’s responsibility for environment involves waste disposal, effective use of resources, and participation in activities relating to pollution mitigation.

The Company’s strong commitment to conducting business in the sustainable way and involvement of staff are the primary key drives that will enable MCOT to achieve social sustainability. With the Company’s comprehensive digital media outlets, MCOT will strive to create sustained and high-impact social changes in the community.

4. Stakeholder Engagement

In order to be able to obtain and maintain community’s support for business operations (License to Operate), all organizations are required to demonstrate their continuous commitment to meeting their key stakeholders’ expectations. MCOT has given priority to expectations and concerns of its key stakeholders, who were identified through the impact analysis as the stakeholders who may be affected by or have the effect on the Company’s decision-making and operational processes. The Company’s major stakeholders are divided as follows: 1) Internal stakeholders including executives and employees, and 2) External stakeholders including shareholders, audiences, program producers, goods and services supporters, program sponsors, business partners, creditors or debtors, business competitors, and related government sectors. In 2012, additional two groups of people who played important roles in media development, including media scholars and media-related associations, were identified as the Company’s key stakeholders. MCOT regularly engages with all groups of stakeholders to exchange information and learn about their expectations, requirements and advices, to maintain mutual healthy relationships through different channels of communications, for example; public meetings between executives and employees, monthly meetings between high-ranking executives, meetings between officers working in the same unit, meetings between Employees’ Welfare Committee Members, meetings between Labor Relations Committee Members, training programs for employees, internal memorandum, announcements on the Company’s website and in e-mail, daily internal news announcements, and the Company’s Annual Report. Moreover, the Company has assigned the Office of Inspector- General to engage with all internal units in both central

12 and regional offices, to compile related information and directly to propose to the President. The involvement with the Company’s internal stakeholders is conducted every month, at least through one channel.

Regarding external stakeholders, the engagement is carried out through interviews, group discussions, the Company’s Annual Report and official website (www.mcot.net), emails to the Directors and the Audit Committee at [email protected] and [email protected] respectively, social development activities, local purchasing policies, audience satisfaction surveys, meetings with program producers and sponsors, and community site visits. Furthermore, MCOT has adopted complaint management policy that enables the Company to identify external stakeholders’ dissatisfaction. The Audit Committee is appointed to investigate the compliant raised and solve the problem using an appropriate method within the set timeframe. In case that the complaint affects the overall stakeholders or the Company’s business operations, the Committee is required to propose to the Board of Directors for considerations. The engagement with the Company’s external stakeholders through the aforementioned channels is conducted at least once a year.

Issues and Response Important Issues Response Management and Staff Fair and appropriate staff x Competency - based staff recruitment and selection policy treatment x Staff preparedness for changes in competency and manpower requirements x Adoption of occupational safety and health, and work environment policy in compliance with the Notification of the Committee of State Enterprises Relation on Minimum Standard of Working Conditions in State Enterprises, and annual review of occupational safety and health, and welfare plans x Formulation of policy on the Company’s services and benefits x Survey on employees’ satisfaction x Survey on factors affecting employees' commitment to the organization x Formulation of Human Resource plan x Appointment of the Inspector - General Office Mutual respect and x Two-way communication system recognition x Fairness and freedom of expression

Shareholders Satisfactory returns x Shareholder Meeting/listening to shareholders’ comment on the Company’s business operations x Satisfactory operating results and sustainable returns Good Corporate x Formulation of corporate governance policy Governance x Appointment of the Corporate Governance Committee x Formulation of codes of conduct and ethics x Shareholder Meeting/ listening to shareholders’ comments on the Company’s business operations

Important Issues Response Audience Quality Content x Specification of steps in content preparation and program quality control in accordance with the concept of the program, to satisfy audience, meet sponsors’ requirements and to comply with regulations set by the National Broadcasting and Telecommunications Commission x Management of risks that raise public concerns on products, service and operations x Audience satisfaction surveys using both qualitative and quantitative methods x Launch of communication channels to listen to feedback and complaints from audience Political Domination x Specification of daily news programs content in compliance with code of conduct and professional ethics x Management of risks that raise public concerns on products, service and operations x Launch of communication channels to listen to feedback and complaints from audience Responsible Marketing x Management of risks that raise public concerns on products, service and operations x Audience satisfaction surveys using both qualitative and quantitative methods x Launch of communication channels to listen to feedback and complaints from audience Program Producers Business Integrity x Formulation of codes of conduct and ethics x Appointment of the Inspector - General Office x Management of risks that raise public concerns on products, service and operations x Launch of communication channels to listen to feedback and complaints from program producers

Important Issues Response Product and service supporters Freedom to produce x Specification of steps in content preparation and program information quality control in accordance with a concept of a program, to satisfy audience, meet sponsors’ requirements and to comply with regulations set by the National Broadcasting and Telecommunications Commission x Management of risks that raise public concerns on products, service and operations x Launch of communication channels to listen to feedback and complaints from product and service supporters Customer Relations x Specification of customer relationship management model x Customer satisfaction surveys x Evaluation and improvement of access to information and customer support x Launch of communication channels to listen to feedback and complaints from product and service supporters Program Sponsors Copyright Compliance x Formulation of codes of conduct and ethics x Appointment of the Inspector - General Office x Appointment of Intellectual Property Department x Management of risks that raise public concerns on products, service and operations x Launch of communication channels to listen to feedback and complaints from program sponsors Business Integrity x Service integrity x Fast and simple service delivery system x Management of risks that raise public concerns on products, service and operations x Launch of communication channels to listen to feedback and complaints from program sponsors Business Partners Business Integrity x Formulation of codes of conduct and ethics x Compliance with good corporate governance policy x Appointment of the Inspector - General Office x Management of risks that raise public concerns on products, service and operations x Launch of communication channels to listen to feedback and complaints from business partners

Important Issues Response Creditors or debtors Integrity Business x Clear specification of terms and conditions of debt in a (debt settlement on due business operation contract date and fair terms and x Internal financial audit conditions of debt x Management of risks that raise public concerns on products, settlement) service and operations x Launch of communication channels to listen to feedback and complaints from creditors or debtors Business competitors Responsible Marketing x Management of risks that raise public concerns on products, service and operations x Launch of communication channels to listen to feedback and complaints from business competitors Related government sectors Compliance with relevant x Compliance with policy and regulations stipulated by laws and regulations government sectors x Compliance with agreements x Compliance with relevant regulations x Presentation and performance in compliance with approved budget Media scholars Responsible content x Specification of steps in content preparation and program presentation quality control in accordance with a concept of a program, to satisfy audience, meet sponsors’ requirements and to comply with regulations set by the National Broadcasting and Telecommunications Commission x Specification of daily news programs content in compliance with code of conduct and professional ethics x Management of risks that raise public concerns on products, service and operations x Launch of communication channels to listen to feedback and complaints from media scholars Government Interference x Specification of daily news programs content in compliance (neutral and accurate news with code of conduct and professional ethics presentation) x Management of risks that raise public concerns on products, service and operations x Launch of communication channels to listen to feedback and complaints from media scholars

Important Issues Response Media-related associations Balanced news/content x Specification of daily news programs content in compliance presentation with code of conduct and professional ethics x Management of risks that raise public concerns on products, service and operations x Launch of communication channels to listen to feedback and complaints from media-related associations Responsible Marketing x Management of risks that raise public concerns on products, service and operations x Launch of communication channels to listen to feedback and complaints from media-related associations

5. Main Corporate Social Responsibility (Our Material Issues) Media has been challenged through the current situation in Thailand since their role and ethics are being questioned in society. Therefore, Media organizations now put more engagement in social responsibility and sustainable development. Especially in MCOT, employees from every department have participated in economic, social and environmental Materiality Assessment through brainstorming process. They are gathered to analyse how working process of their units relates to economic, social and environmental issues as well as to groups of stakeholders. In parallel, MCOT has linked all groups of stakeholders in order to share their concerns and expectations and ranked those issues on 2-Dimensional Matrix which consists of: 1. Significance of Economic, Environment and Social Impacts . Influence on Stakeholders Assessment and Decisions

Very High 15 1 11 10 25 7 3 2 18 Decisions 16 26 4 13 12 9 26 17 High 21 19

22 Assessment and 5 14 23 20

6 24

Moderate Moderate Influence on Stakeholder Influence Moderate High Very Significance of Economic, Environment and Social Impacts

1. Creative Independence 15. Transparency 2. Impartial and Balanced Output 16. Accountability 3. Freedom to access 17. Responsible Marketing 4. Media Literacy 18. Respectful Workplace 5. Customer Relationship 19. Intellectual Property 6. Supply Chain Integrity 20. Copyright 7. Promotion of Sustainable Development 21. Law and Regulations Compliance 8. Local License to Operate 22. Waste Disposal 9. Strategic Philanthropy 23. Efficient Energy Use 10. Corporate Governance 24. Efficient Resource Use 11. Leadership 25. Human Rights 12. Fair Operating Practices 26. Social Value Creation 13. Anti-Corruption 27. Appropriate and Fair Labor Practices 14. Green Procurement 28. Good Return on Investment

When plotting topics and issues on a matrix chart as shown in the picture, MCOT has selected the issues that fall on the very high areas (top right corner) of the chart, issues disclosed in this report and other issues such as Waste Disposal, Efficient Energy Use and Efficient Resource Use to be the issues that need active management approach. The 13 selected issues are as follow: 1. Good Governance and Leadership To perform good corporate governance, transparent and verifiable management and compliance with related laws, rules and regulations. Vision, mission, principles and policy of the organization shall be clearly defined. The leaders shall possess positive attitude and behaviour towards social responsibility and sustainable development commitment. 2. Respectful Workplace To establish and maintain good and valuable workplace where everyone respects others’ dignity, equality and diversity. The company should aim to establish safety, stability and suitability workplace to ensure all employees receive fair treatment and good quality of life in the workplace. 3. Human Rights To recognize equality, dignity and diversity of people. The company shall not conduct any discriminatory practices based on race, religion and belief.

4. Creative Independence To encourage freedom to create innovative works which are free from intervention by others such as politician and businessman as well as promoting communication and performance arts skills development to create better value for society. 5. Impartial and Balanced Output To put importance on providing accurate, reliable, diverse, unprejudiced and neutral news and information as well as providing the programs that meets the demand of all target audiences in the society and must comply with the law. 6. Freedom to Access To enhance the ability of all groups of people in the area to continuously and thoroughly get access to knowledge, information and news 7. Media Literacy To enhance audience’s skill and ability to access, analyse and evaluate media messages and applying them to develop creative society. 8. Intellectual Property and Copyright To give significant concern towards innovative and creative works, respect intellectual property and deny direct and indirect Intellectual Property Infringement. 9. Responsible marketing To perform responsive marketing activities that place primary concern on code of ethics and morals and avoid information distortion or exaggeration which will create negative social value and behaviour. 10. Promotion of Sustainable Development To promote and publicize contents on 3 sustainable developments dimensions: economy, society and environment in order to create the society’s awareness of related issues 11. Strategic Philanthropy The practice of targeting a company’s efforts that simultaneously provides a direct benefit to the society and also supports the company’s core business objectives. 12. Social Value Creation It is the social development process that aims to create positive social changes through several projects and activities that enhance knowledge, attitude and behaviour of audiences and project participants. 13. Environmental Footprint Corporate management that integrates environmental concerns into practices which includes environmental protection and conservation as well as climate changes and environmental impact reduction.

Comparison Table of Framework, Corporate Social Responsibility and the Concepts and the Key Standards

MCOT’ MSR (Corporate SEC’s CSR CSR UN Global GRI Media Framework Citizenship Guidelines) ISO 26000 Compact Sector Supplement Governance and Integration Corporate Organizational Anti- - Strategy and Leadership and Governance Governance Corruption Analysis Accountability - Governance, Commitment, and Engagement Respectful Workplace Responsible Human Rights Labor Labor Labor Business and Labor Practices Treatment Practices and Practices Practices Decent Work Outcomes Human Rights Responsible Human Rights Human Human Rights Human Rights Business and Labor Rights Practices Practices Practices Outcomes Creative Market Consumer Consumer Product Independence Strategy Responsibility Issues Responsibility Outcomes Impartial and Market Consumer Consumer Product Balanced Output Strategy Responsibility Issues Responsibility Outcomes Freedom to Access Market Community and Community Society Strategy Social Involvement Outcomes Development and Development Media Literacy Market Community and Community Society Strategy Social Involvement Outcomes Development and Development IP and Copyright Responsible Fair Business Fair Operating Human Rights Business Practices Practices Outcomes Practices

Responsible Market Consumer Consumer Product Marketing Strategy Responsibility Issues Responsibility Outcomes Promotion of Addressing Community and Community Society Sustainable Social Social Involvement Outcomes Development Challenges Development) and Development Strategic Philanthropy Addressing Community and Community Society Social Social Involvement Outcomes Challenges Development and Development Social Value Creation Addressing Community and Community Society Social Social Involvement Outcomes Challenges Development and Development Environmental Addressing Environment Environment (Environment) Environment Footprint Social Conservation Outcomes Challenges

6. Our MSR Framework and High Purpose

The Corporate Social Responsibility and Sustainable Development Framework have met MCOT's identity from the past to the present. MCOT has been conducting the business under the theme of “Knowledge based society” and "Creative Society" more than 10 years as we aim to be a part of creating a "better society" from our knowledge, capacities and our business's potentials. Activities or Initiatives that MCOT have conducted by itself or in cooperation with clients and partners do not aim only at the output, but also at our High Purpose which is "Social Change" since we are the business organization which can contribute more efficiently to the social dimension than other dimensions. "Social Change", as planned in the MCOT's goal, means significant change of behavioral pattern of people in the society. The behavioral pattern must result in better outcomes and have long-lasting effects on the society's culture, which will lead to a

23 better society. In the "communication society" at present, people need accurate and updated information. Therefore, as the role of the content creator and disseminator, the Mass Media Business influences significantly "what and the ways that society members think" or "Brainprint", which is considered as the main responsibility of the Mass Communication Business.

The Mass Media Business, like other types of business, is required to consider social responsibility and develop the suitable guidelines of sustainable creation for the organization. Therefore, in order to ensure the business’ growth, the concerns for the internal and surrounding societies and environment conservation as well as business conduct with transparency and governance must be taken into account to increase the competitive ability of the business in the future. MCOT has set up management operations between the organization and stakeholders for “the social change” of both inside and outside the organization through Media Social Responsibility practices which cover 13 responsibility aspects that MCOT considered as the organization’s materiality as follows: . Governance and Leadership . Respectful Workplace . Human Rights . Enhancement of Skills, Knowledge and Creative Independence . Impartial and Balanced Output . Freedom to Access . Media Literacy . IP and Copyright . Responsible Marketing

. Promotion of Sustainable Development . Strategic Philanthropy . Social Value Creation . Environmental Footprint (For the definition of each item, please see more details on main corporate social responsibility issues) MCOT has divided the 13 responsibility aspects above into 3 main MSR Frameworks as below: 1. ACT – Act responsibly MCOT will conduct the business with code of conduct and ethics, promote good practices, effectuate the business with fairness and manage the effectiveness of anti-corruption. Moreover, Human Resource management will apply good practices on labour and human rights. The rules will be specified based on national and international labour law and the social responsibility concept and principle. This framework aims to develop responsible Management and Manpower for the following social responsibility aspects as below: x Governance and Leadership x Respectful Workplace x Human Rights x IP and Copyright x Environmental Footprint 2. CREATIVITY – Creative Media Delivery MCOT will produce/broadcast accurate, concise, and impartial information which will reflect social diversity. The organization will take into account the benefits of each group of consumers and ensure that they will receive good quality and suitable information. The objective is to create responsible contents which cover social responsible aspects as follow: x Enhancement of Skills, Knowledge and Creative Independence x Impartial and Balanced Output) x Responsible Marketing

3. Society –Social Development Commitment MCOT will assist and develop the surrounding society and the wide area by using the approaches which continuously enhance people’s potentials and skills, aiming at behaviour change for solving social problems and for enhancing issues related to sustainability. This framework aims to create responsible people for the following social responsibility aspects as below: x Freedom to Access x Media Literacy x Promotion of Sustainable Development x Strategic Philanthropy x Social Value Creation

ACT - Act Responsibly

•Responsible•Responsible Management & MManpower

CREATIVITY -Creative Media Delivery

•Responsible•Responsible Content

SOCIETY - Social Development Commitment •Responsible•Responsible People

MCOT believes that all of these 3 frameworks aiming at the creation of responsible management and manpower, responsible content and responsible people will lead to positive “Social Change” and create a better society as expected.

Responsible Responsible Responsible Management & SOCIAL Content People Manpower CHANGE

7. Review of the Year (Towards A Better Society) The important mission of MCOT to make change of the Thai society towards becoming a better society begins internally within the organization based upon the idea “ACT (with responsibility)”, and from there to “Creativity”, as well as participating with “Society”, to make it a better one to live. Year 2013 has witnessed the Company’s following achievements: ACT With great care, MCOT has created the beauty of “responsible management and manpower” as follows”: 1. Governance and Leadership MCOT places importance upon good governance, which concerns relationships among several groups, ranging from shareholders, board of directors, executives, employees, stakeholders and the supportive structure that helps the Company operate smoothly and in accordance with its professional business objectives. Composition of the Board of Directors The Board of Directors of MCOT collectively consists of 13 Directors, 7 of which are independent directors, the latter being 54% of the entire composition. Mr. Sutham Saengpratoom serves as Chairman of the Board of Directors; however, he is not an executive officer. Each director has proven knowledgeable with skills in various, different fields deemed necessary and of importance to mass communication business management. The Company is clearly defined in terms of both composition and appointment of the Board of Directors under stipulation of Articles of Association in its concreter form. The Board of Directors has authority and duties to monitor and ensure that the Company’s business operations be done in compliance with the law of the land, corporate objectives, regulations and resolution of the shareholders meeting, with integrity, morality and codes of ethics. In addition, to ensure a higher level of effectiveness in monitoring and supervision of the enterprise, the Board of Directors has established Sub-Committees in response to several matters relevant to business operations, etc. (in 10 committees) as follows:

1. The Audit Committee 2. The Nomination Committee 3. The Remuneration Committee 4. The Risk Management Committee 5. The Corporate Governance Committee 6. The Labor Relations Committee 7. The Management Affairs Review Committee 8. The Performance Evaluation Committee for the President 9 The Organizational Capacity Building Working Group 10. Real Estate Development Monitoring Working Group

Each committee and each working group is clearly authorized with its respective power and is developed through the process of participating in training sessions and seminars, meetings held regularly with Thai Institute of Directors, The Stock Exchange of Thailand, The office of the Securities and Exchange Commission, The Listed Company Association, National Corporate Governance Committee and other institution. The Board of Directors holds the Board of Directors meeting regularly not less than 12 times each year. Each committee member is required to participate in the Board of Directors meeting not less than 75% of all meetings being held in the entire year in order to be able to take into consideration important meeting agendas, as well as opinions and resolutions of the Committees, which would be clearly recorded and systematically maintained and documented. Transparency and Prevention from Conflicts of Interest Regarding the issue of transparency of the Board of Directors’ operations, MCOT has specified that the Board of Directors are required to present to the Company the Conflicts of Interest Illustration upon taking the post or when internal changes take place within the specified period. Independent Status report must be prepared and submitted every year. In addition, for the Board of Directors truly to remain in balance of power, MCOT has stipulated that Chairman of the Board of Directors and the President must not be the same person. At present, Mr. Anek Permvongseni is the President. In the event that any person who is holding the position of President may happen to be

28 part of stake-holding or implied with conflicts of interest in any possible ways against the Company, the exercise of his/her power shall not be allowed. Regarding the issue of transparency, MCOT’s policy is to reveal information transparently and equally to all stakeholders. In 2013, MCOT also held analyst briefing sessions, investment-institutes road shows in Thailand and abroad, company visitations (between investment analysts “and investors and executives”), as well as providing information and responding to enquiries via e-mail and telephone by Investment Relations Section, Corporate Communication Department and Corporate Secretary Department. In 2013, in the Corporate Governance category for the listed company, MCOT has achieved great score ‘in the “excellent” level’, with the perfect score of “100%” in the Transparency category. In preventing conflicts of interest from occurring, the Company’s code of ethics for both executives and employees has been stipulated in writing, such as: - Performing duties in compliance with laws, objectives, MCOT’s Articles of Association, as well as the resolution of shareholders meeting. - Administration to be implemented with honesty and great care for benefits of all stakeholders at present and in future. - Administration to be implemented impartially and in balance, free from politics. - Not to be in conflicts of interest against the Company by way of competition unless assigned by the Company. - Not to receive cash, assets or any other benefits illegally except for the rightful benefits given by the Company; prohibition includes financial involvement or making financial commitment with clients or those related in business, etc.

Performance Evaluation for the Board of Directors, Top Executives and High- level Executives Assessment and evaluation shall be implemented as follows: Self-Assessment, Cross Evaluation, and Board Evaluation. Remuneration of the Board of Directors shall be considered at the general shareholders meeting by taking into consideration the size, type and correlations with the Company’s performance results, market norm, as well as the (same) industry and the Board of Directors’ duties and responsibilities.

The performance evaluation for the President and high-level executives shall be implemented on quarterly basis by the Executive Performance Evaluation Committee for Top Executives and High-level Executives; taken into consideration will be criteria, benchmarks, weights, (and) performance evaluation goals. Remuneration shall be determined by the Remuneration Committee (one of the Specific Committees) accordingly. Connections with Both Internal and External Stakeholders Activities related to the shareholders and stakeholders such as shareholders meeting, shareholders’ MCOT company inspection, the rights granted to minority shareholders to propose agenda items (etc.), analysts meetings, press conferences, etc. are to be held by the Company to ensure connections between the Board of Directors and the stakeholders. Regarding “important” communication -- one-way or two-way -- between high- level executives and the employees throughout the organization made in light of creating mutual understanding in corporate vision and corporate value, major decision- making upon business operations, transference of corporate policies, as well as follow- ups and the likes; methods and frequencies are shown as follows:

communication channel Receiver Sender Message Frequency Two-way One-way Management Staffs President Executive Vision Significant Assigned Follow- Up Meeting Seminars Site Visit News on Public Executive Senior Vice Central Regional Weekly Monthly Yearly Deemed Vice and decision Policy radio/ Relation Vice Vice President as President Values making Online President President appropriate broadcast 3333 333 3

333 3 3 3

33333 3

33 3 33 3 3

33 3 3 3 33 3

33 33 33 3 3 33333 3333

Leadership High-level executives of MCOT plays an important role in determining corporate vision, commitment and value in terms of both business and social responsibility. Corporate vision, commitment and value in turn have been employed in determining strategic plans whereby high-level executives are ones that communicate such vision, commitment and value through leadership so that personnel will adopt and take actions accordingly. However, even though MCOT has already been actively performing the activities pertaining to the collective issue of social responsibility for a certain period, the Company has never established corporate vision, commitment and value specifically towards the matters of content production and content broadcasting before, for instance, editorial independence, freedom of expression, protection of vulnerable audiences, etc. The Company, therefore, shall take actions upon the points of concern that are of importance to mass communication business. Regarding the issue of monitoring the Company’s business operations, top-level executives have been resolute towards monitoring the matter of business administration and management and ensure that it be in compliance with law and codes of ethic whereby transparency and fairness are one of the major guideline practices and policies to be implemented. Risk Management MCOT has determined the Company’s risk management policy clearly, in which risk management approach shall be employed in production business, visual transmission, radio broadcasting and telecommunication to ensure the highest level of effectiveness in accordance with the international broadcasting criteria, as well as ensuring that employees have knowledge and understanding while actively participating in risk management activities in aims that the Company shall remain in the acceptable level of risk factors. With the corporate objectives attained and good governance achieved, the Company shall experience the sustainable added value of its own organization.

(3) Major risks are as follows: 1. Business Risk 2. Operational Risk 3. Human Resources Risk (Manpower costs) Regarding the aforementioned risks, the Risk Management Department has analyzed and evaluated the data acquired and therefore has prepared the Financial Risk Determination measure, as well as other areas. These guidelines shall be proposed to the Risk Management Committee and the Board of Directors respectively for their approval whereupon the approved version of the proposal shall be in turned relayed within the organization to be used as guideline in risk management. Monitoring then shall be made and reports (business results) shall be smutted every two months accordingly. In addition, Risk Management Manual shall be annually reviewed by the Risk Management Department.

1.2 Respectful Workplace MCOT would like to ensure that the Company’s human resources and personnel are in possession of good conscience and considerateness in terms of social impacts, both internal and external, as well as in terms of environmental impacts incurred by the Company’s business operations. The Company has made efforts to create social awareness and social responsibility through executive communication made by its top- level executives, through training courses provided, etc., as well as ensuring that workplace be appropriate, respectable and a crucible where personnel are being encouraged to adopt newly positive attitude; etc., all for the benefits of “better society”. As of 2013, MCOT employs 1,461 employees, the details of which are as follows:

2013 MCOT Organizational Structure Type of Employment Temporary Permanent Education Level Employees Employees Male Female Male Female Total 109 162 747 443 Total per type of 271 1,190 employment Grand Total 1,461

Resignation: the Company’s employee turnover ratio is well below the industrial average in Thailand. On the other hand, MCOT also enjoys retaining rate of (post- maternity) returning from maternity leave of 100%.

Personnel Selection and Recruitment To ensure that the Company is an epitome of a respectable workplace, personnel selection is based upon “core competency” stipulated by State Enterprise. MCOT treats each and every candidate equally, especially those applying for high-level executive post; therefore, it is expected in turn that candidates are fully qualified for the posts in question. There is no religious or cultural discrimination. With regards to personnel administration, MCOT follows the model of State Enterprise Labor Relations 2543 BE (AD 2000), etc., as part of the guideline.

Personnel Development and Training MCOT Plc. gives much importance on the personnel development so that they consistently acquire more knowledge, skills, and competency in performing their work, and they are well prepared to respond to so many upcoming changes such as Act on Organization to Assign Radio Frequency and to Regulate the Broadcasting and Telecommunications Services, change of the analog broadcasting system to be the digital system, competition in new business models, and preparedness for the ASEAN

COMMUNITY in 2015. The implementations pursuant to the Human Resource Development Plan under MCOT Competency Model must involve the following: M: Managerial Competency -- Competency in management C: Core Competency -- Core competency of all personnel in MCOT Plc. for joint progress O: Operational Competency -- Specific competency to serve various operations of MCOT Plc. T: Technology & Transformation Competency in technology and transformation

Furthermore, in the event that duties and responsibilities are to be re-adjusted according to the new job description, additional, necessary training courses will be provided in order to help develop employees’ skills set so that they could perform their additional tasks accordingly. Five-Year (2013-2017) Personnel Development and Training plan has been set forth to meet personnel’s training needs based upon the Company’s corporate business environment and circumstances, organization’s strategic plan, as well as other relevant information on the personnel, all in order to identify the competencies needed in the following areas: Core Competency, Managerial Competency and Functional Competency. Training sessions are annually provided mainly to help develop multiple skills in employees, and thus ensure that they be ready for job rotation when needed. In addition, to promote the idea of business ethics, MCOT has arranged for several training courses including Good Corporate Governance, Morality and Ethical Development, and CSR on continual basis. In 2013, the personnel development and training table may be summarized as follows:

2013 Employee Training and Development Report Budget Implementation Target (hrs./ No. of Competency Amount Percentage person/yr.) participants Courses Training Hours (Hrs.) Total Cost (Baht) ( recount ) Managerial M 6 million Baht 20 465 13 4,064.50 856,073.60 Competency C Core Competency 3 million Baht 10 3,253 66 20,866.50 1,535,894.07 Function 30 O Competency and 9 million Baht 30 1,820 112 26,929.25 13,984,849.33 study visit Total 30 million Baht 60 5,538 191 51,860.25 16,376,817.00 Average 35.40 11,178.71 Amount/person/yr. (Baht)

Career Development MCOT takes actions to ensure there be career development for the Company’s employees in accordance with “pre-position training” terms and conditions. For those employed in key positions, “5-year Succession Plan” shall be prepared accordingly. Occupational Health and Safety MCOT has implemented the occupational hygiene and safety plan in accordance with the State Enterprise Labor Committee Announcement. Occupational Hygiene and Work Environment Committee has been established. Surveys were conducted in regards to workplace safety, occupational hygiene and environment. Monthly meetings were held to discuss the related matters, as well as evaluating and improving the related plans. There shall be physical examinations held annually in regards to employee’s well-being (health and hygiene). Regarding the matter of safety at work, MCOT has implemented contingency plans including in case of fire, etc. Furthermore, in media business operation, a number of company employees are required to work in 24-hour daily rotation, 8 hours per shift. And for those frequently out on the job and thus prone towards relatively higher risks, such as field reporters et al, Employees’ Safety Manual is also provided in which procedures are demonstrated and to be followed accordingly. Etc.

2013 Central and Regional Work-related injuries and Illnesses and Absence rate

Month Muscular diseases/time Work-related injuries/time Absence/day Jan 98 0 0 Feb 95 0 0 Mar 99 4 0 Apr 84 0 0 May 83 0 0 Jun 65 0 0 Jul 86 2 0 Aug 87 0 0 Sep 103 1 0 Oct 96 2 0 Nov 83 0 0 Dec 74 1 4 รวม 1053 10 4

Employee Benefits The Office of Human Resources of MCOT has conducted surveys to learn more about personnel’s satisfaction twice a year and therefore has made use of the results in analyzing the matter of employee benefits in terms of necessity.

Temporary Benefits and Rights of Employees Employee Employee Rights Rights to Leave of absence 3 3 Rights to leave pay 3 3 Rights to overtime pay 3 3 Benefits Annual Check up 3 3 Health and Life Insurance 3 3 Premium Life Insurance and Accident insurance 3 3 Medical care 3 3 Child Tuition Fee 3 3 Home Loan 3 3 Provident Fund 3 - Funeral Cost 3 3 Royal Decoration 3 - Other benefits such as uniforms, transfer service, 3 3 water cooler service available and etc.

Labor Relations

At MCOT, employees are allowed to form groups to negotiate the matters with the Company. Employees may have their representatives negotiate via the channel of monthly State Enterprise Labor Relation Committee’s meeting. Labor Union may represent the employees in the related matters as well. MCOT may notify its employees of any additional notifications and announcements one (1) month in advance. In case changes will take place in several units within the organization, meeting will be held to solicit employee’s opinions. Etc.

1.3 Human Rights MCOT respects equality among people and human dignity within and outside the organization. Violations are prohibited. Human rights are supported by laws. There shall be no discrimination of any kind. In case of selection and recruitment (new employees), both candidates without relevant experience and mid-career ones shall be considered based upon Core Competency approach required by State Enterprise. MCOT will never employ service provided by child labors or the forced ones. The Company observes the law of the land and practices personnel administration with transparency. Regarding the issue of human rights in general and outside the organization, MCOT is being active in supporting the rights of the general public to access information on non-discriminatory basis. In addition, since the rights to access information is limited among certain groups of people, including people with disability, the underprivileged et al; MCOT, realizing its own potential and capacity to be of good service for a better society, MCOT therefore has identified this particular point of concern under the CSR framework (social responsibility); additional information may be found in the related segment as well. Regarding the issue of human rights, stakeholders, both internal and external, may make complaints through respective channels as well.

1.4 Intellectual Properties and Copyrights Media business concerns directly with individual person’s creativity. In regards to such “valued product”, MCOT firmly believes that creativity, intellectual properties, copyrights and the likes must be fully respected. Violations in any form shall not be tolerated. At present, technological advancement makes it relatively easier for violation to be made; therefore, copyright infringement issue is one of the most monumental which requires discussion immediately, and MCOT believes it is the Company’s duties to be active about it with regards to CSR framework (social responsibility).

1.5 Protection of Environmental Footprint In aims at creating sustainable business, MCOT places importance upon the issue of natural environmental protection. Even though, the Company’s product -- media content -- may not directly affect our environment (negatively), the production process and the content broadcast, however, plays an important role in direct relation with natural environment; this includes consumption of electricity, gasoline, paper, etc. Therefore, employees are encouraged to use natural resources efficiently while in process, taking part in helping preserve the Thai natural environment. In 2013, MCOT also participated in environmental preservation-related activities including one by FM 100.5 News Network, performed at Ubonratchatani province, Thailand. However, activities performed in 2013 regarding natural environment preservation were not officially subjected to data compilation; MCOT has plan to build up environmental benchmark for this matter in relation with its business operation next year. Furthermore, with regards to the issue of environmental preservation, stakeholders are invited to contact the Company to progress the matter.

Creativity MCOT Presenting Creative Media, Showcasing “Responsible Content”: 1. Promoting Skills, Talent and Creative Independence Mass Communication business certainly plays an important role as an integral part to creating sustainability value to the Thai society, thus in process delivering something essential and meaningful (content), as well as providing useful information, news content, all of which are in turn responsible for nourishing the grace of “Brainprint”, that is, something monumental and influential to the collective thought paradigm within the Thai society in a proper way. Therefore, for MCOT, it is our great duty to help promote skills development among the Thai society members, communication skills, theatrical performance, arts, news and intelligence, etc. All in all, and in essence, this means oneself producing something substantial, with freedom to create, and independent of being overshadowed by external parties including political bodies, financial (business) benefits, etc.

In process of producing the program content, news and intelligence, as well as other good things to the Thai society by MCOT, ideas of program’s format and content are carefully developed, and quality control will be assured, program concept is clearly defined, etc.: to all of which are adhered to ensure that our audiences’ needs and wants are catered to, and that the regulations stipulated by Office of the National Broadcasting and Telecommunications Commission (NBTC) are observed during the process of content’s creation; furthermore, content shall meet the objectives while attracting and reaching out to viewers, audiences, program sponsors, as well as being in compliance with the law of the land. MCOT also observes and gives importance to the high value of integrity, morality, codes of ethics, as well as journalism ethics and standards. In addition, MCOT always upholds the basilica of being neutral and free from being overwhelmed by political entities, as well as considering the country’s benefits to be of highest priority and beyond one’s own personal interest while presenting the news and intelligence with no hidden agenda and independently of bias and prejudice. MCOT verifies the quality of its own programs’ content while making delivery to its audiences and other types of clienteles through process of listening; Sales and Marketing Office, TV and Radio (Offices), New Media, as well as Thai News Office, all will be listening to our customers’ needs and wants, as well as their expectations of our programs in comparison with the competitors. Corporate Communication Department serves as complaints center dealing with both internal and external stakeholders such as audiences, clients, shareholders and employees in a variety of issues at hand including the content development that might negatively affect our society, or concerns over the possibility of unethical conducts, etc. Customers include both current ones and those in the past, prospective clients, as well as those belonging to competitors’ accounts. Information obtained from communicating with them shall be used to prepare business strategic plans, as well as playing part in program-formatting, and how program’s quality is determined and developed in response to customers’ needs and wants through employing P-D-C-A Approach (Plan, Do, Check, Act), usage of benchmark, systematic reviews of performance results, etc.

In addition, feedback and complaints are made in response to program broadcasting including media accessibility, protection of underprivileged audience groups, informative decision-making, etc. Sales Office and Marketing Office shall make conclusion accordingly and make rectification at once to ensure customer satisfaction. Likewise, Corporate Communication Department shall receive complaints, put them through the screening process and have them relayed to those involved for the latter’s improvement. Reports are to be submitted to the President, the Corporate Governance Committee, and the Board of Directors on quarterly basis. Petitioners shall be notified and treated accordingly as well.

Table of channels and voice of customers management

Qualitative comments/complaints through media online and web Response Quantitative Research Interview Research technologies from Customer Sales Customers Indicators Objectives Customer Visit Revenue Face-to- Social Rating SurveyFocus Group SMS Phone E-mail Website s Face media 1. Current Customers monthly/ Need Daily/ monthly/ 1.1 Viewer quarterly twice a year N/A /////monthly / quarterly/ Rating Satisfaction quarterly/ yearly yearly Desire

Need monthly/ monthly/ quarterly/ Satisfaction Central quarterly twice a year N/A /////monthly / quarterly/ Rating semiannually / yearly Desire yearly 1.2 Feedback Listerners Need monthly/ Level of Satisfaction Regional N/A quarterlyN/A N/A / / / / / monthly / quarterly/ Customer Desire yearly Satisfaction Feedback Need monthly/ Level of once a Satisfaction 1.3 Media buyersN/A N/A N/A / / / / / Daily / quarterly/ Customer year Desire yearly Satisfaction Feedback when Need problem Satisfaction 1.4 Franchisee-- - -//-/N/A/- - occurred/ Desire contract Feedback when Need problem monthly/ Satisfaction 1.5 Lesseemonthly - - occurred/ N/A / / / / monthly / quarterly/ N/A Desire contract yearly Feedback expired 2. Ex-Customers Television and Radio Need services ( Ex. Satisfaction N/A quarterly twice a year / / / / /N/A N/A Customers who Desire switch to other Feedback 3. Future Customers Need Satisfaction Television and Radio N/A quarterly twice a year / / / / / N/A N/A Desire Feedback 4. Competitors’ customers Need Satisfaction Television and Radio N/A quarterly twice a year / / / / / N/A N/A Desire Feedback

Information needed : 1. Level of Customer Satisfaction 2. Current Customer’s needs and expectation 3. Needs and Expectation of ex customer, future customer and competitors’ customers.

2. Impartial and Balanced Output MCOT places importance upon providing impartial and balanced output , as well as its wide variety, while remaining professionally neutral. Journalism ethics and standards, as well as other regulations, have determined that information provided for the general public must be complete, accurate, without distorting the truth. News and content delivery must be impartial and balanced, fair to all involved, including the stakeholders et al. All parties involved should be given the opportunity to provide explanations. In addition, “balance” means being balanced to differences and disparities of societal members. Information must be presented with accuracy and reliability; creating balance of the content acquired through contacts with a variety of people with different thought paradigms and cultures. These constitute part of the “Brainprint”. Likewise, in inspecting as to whether or not the content has been provided and delivered impartially and in balance, Office of Marketing, Office of Sales, Office of Television, Office of Radio, Office of New Media Business , as well as Office of Thai news, are all listening to customers according to the information earlier provided. 3. Responsible Marketing MCOT places importance upon social and ethical value, thus taking good care of not trying to make any negative impacts upon society, tradition and culture; being adhered to honesty without distorting the truth; moreover, consumers, buyers and sellers et al are treated with fairness. MCOT firmly believes that responsible sales and marketing shall create sustainable relationships between the Company and its clients. MCOT’s marketing is focused upon doing business with fairness, as well as marketing communication according to the slogan “Society Created with Intellect”, which means keeping balance between commercial and social aspects, including responsible advertising. In marketing administration, MCOT takes great care of developing and presenting content and broadcasting both beneficial to consumers and customers. Content must be truthful and reliable – with noteworthy references and being focused upon creating right kind of attitude and understanding within the Thai society. Pricing strategy is to be conducted with fairness; product-and-service information is completely

43 provided. Customers are allowed to easily make access to the Company’s corporate IT. Business transactions are being made properly. Feedback and complaints are allowed to be implemented systematically: (through) telephone conversation, website, sms, fax, e-mail, letter correspondence, etc. At present, social media are alos added onto the list including Facebook (mcot.net, MCOT talent, news mania, news network), sms (“Kui- Kamong”), as well as Entertainment programs, etc. Regarding business transactions, MCOT treats each and every customer with fairness, as well as confidentiality. Importance has also been given to intellectual properties and taking care that there shall be no copyright infringement.

SOCIETY MCOT is resolute to help create responsible people:

1. Freedom to Access To encourage and ensure that the general public receives radio and television broadcasting and telecommunication service nationwide is part of the major plan of Office of the National Broadcasting and Telecommunications Commission (NBTC), because media accessibility is so integral a part to life in the modern day of the so- called “information society”. Nowadays, news and information has proved to be invaluable and important for content production, and in some cases, being the product itself. To encourage and ensure that Thai citizens be responsible also means that it be deemed appropriate to encourage people to be able make access to media as much as possible so that they realize, and become aware of preponderancy of living together within one’s own society; and to understand social problems prevalent within one’s own society, as well as one’s role as a good citizen. To promote freedom access is considered to represent direct potential of mass communication business. Therefore, MCOT has taken into consideration and finds itself currently active particularly in the following (2) factors: technological development of broadcasting and telecommunication, and development of communication channel so that it can reach across Thailand nationwide. At present, all media, that is, television,

44 radio, social network and application provided and delivered by MCOT have successfully reached out to around 93.8% of the entire population. 2. Media Literacy In the modern day when plenty of news and content is reported to have been produced and done so for various purposes and many objectives, “media literacy” is considered integral to developing human quality. It means an ability to analyze and understand news and media content, as well as being to respond with conscience and self-awareness to determine by oneself as to whether or not media in question are trustworthy or there be any underlying value beneath, what to be expected by producers from their audiences, as well as an ability to search for more information and various pieces of noteworthy news and quality content while making good use of it. Media are by no means being presented in a simple, straightforward way. Technologies and methodologies that come with them may influence one’s own perception and this could often means perception is not equal to reality; for instance, (only) certain angles are being presented or certain benefits are being made to the good of media viewers, etc. Audiences are expected to arrange their own perspectives in response to the media that come their ways. MCOT notably realizes the importance of abovementioned issue. To promote media literacy, it should begin at early age, commencing from childhood days and onwards; therefore, the Company has initiated “Sharing Knowledge of Creative Media to Schools” since 2013 with objectives to help build a good foundation for both teachers and students so that they understand how preponderant it is to be able to catch up with media; MCOT has successfully created and produced a good deal of invaluable media to the Thai society, thus helping create a model of good, intellectual society. At present, there are 77 participating schools said to have been active in their participations and the Company has enjoyed effective cooperation with its own employees from each and every Office all of whom are greatly responsible for moving forward the entire project and campaign to better days, with good alliance of Faculty of Communication Arts, Chulalongkorn University.

List of Participating Schools in 2013

Region School / Province Central Region Bangrachan Wittaya School, Sing Buri Province and Eastern Region Sing Buri School, Sing Buri province

Watpapradoo School, Rayong Province

Bankhai School, Rayong Province

Mathayom Taksin , Rayong Province

Trattrakarnkhun School, Trat Province

Streeprasertsin School, Trat Province

Banglamung School, Chon Buri Province

Darasamuth School, Chon Buri Province

Niwitratupatum School, Kanchanaburi Province

Thamakavitthayakom School, Kanchanaburi Province

Thamai “Phun Sawat Rat Nukul” School, Chanthaburi Province

Benchamarachuthit School, Chanthaburi Province Siyanuson School, Chanthaburi Province

Uthaiwitthayakhom School, Uthai Thani Province Nong Chang Vithaya School, Uthai Thani Province

Prachuapwittayalai School, Prachuap Khiri Khan Province Bangsaphanwithaya School, Prachuap Khiri Khan Province

Region School / Province Northeastern Region Sisaket Wittayalai School, Si Sa Ket Province

Bualuang Wittayakhom School, Buri Ram Province

Chaiyabhumbhakdeechumphon School, Chaiyaphum Province Chomphraprachasan School, Surin Province

Ratchasima Witthayalai School, Nakhon Ratchasima Province

Nong Ngulueam Phitthayakhom School, Nakhon Ratchasima Province Rajaprajanugroh 32 School, Ubon Ratchathani Province

Sripatumpitthayakarn School, Ubon Ratchathani Province

Rajaprajanugroh 28 School, Yasothon Province

Khon Kaen Wittayayon School, Khon Kaen Province

Kham Kaen Nakorn School, Khon Kaen Province

Sribuabanwittayakom School, NaKhon Phanom Province

Phadungnaree School, MaHa SaraKham Province

Sakolrajwithayanukool School, Sakon Nakhon Province

Phalanchaipittayakom School, Roi Et Province

Nongkhaiwittayakarn School, Nong Khai Province

Loeianukulwittaya School, Loei Province

Kalasinpittayasan School, Kalasin Province

Phenpittayakhom School, Udon Thani Province

UdonThanipittayakhom School, Udon Thani Province

Region School / Province Southern Region Saard Paderm Wittaya School, Chumphon Province Sriyapai School, Chumphon Province Thepmitrsuksa School, Surat Thani Province

Suratpittaya School, Surat Thani Province

Streeranong School, Ranong Province

Ammartpanichnukul School, Krabi Province Thungtakowitthaya School, Chumphon Province Suansriwittaya School, Chumphon Province Sawiwittaya School, Chumphon Province Satreephangnga School, Phangnga Province

Triam Udom Suksa School of the South, Nakhon Si Thammarat Province Kanlayaneesithammarat School, Nakhon Si Thammarat Province

Saparachinee Trang School, Trang Province

Narasikkhalai school, Narathiwat Province

Dechapattanayanukul School, Pattani Province Demonstration School of Prince of Songkla University, Pattani Province Satri Phatthalung School, Phatthalung Province Betong Wiraratprasan School, Yala Province Saengthong Vitthaya School, Songkhla Province Princess Chulabhorn’s College, Satun School, Satun Province

Region School / Province Northern Region Kawilawittayalai School, Chiang Mai Province The Vachiralai Bee School, Chiang Mai Province Triamudomsoksapattanakarn Chiangrai School, Chiang Rai Province Damrongratsongkroh School, Chiang Rai Province Phayaopittayakom School, Phayao Province Nareerat School, Phrae Province Stri Srinan School, Nan Province Hongsonsuksa School, Mae Hong Son Province Chakkham Kanathorn School, Lamphun Province Lampangkanyanee School, Lampang Province Sukhothaiwittayakom School, Sukhothai Province Udomdarunee School, Sukhothai Province Kamphaengphetpitayakom School, Kamphaeng Phet Province Banglaipittayakom School, Phichit Province Wachirabarameepittayakom School, Phichit Province Takpittayakom School, Tak Province Phadungpanya School, Tak Province Princess Chulabhorn’s College, Phitsanulok, Phitsanulok Province Saint Nicholas School Phitsanulok Thailand, Phitsanulok Province

The main idea of developing media literacy denotes accurately consuming media, an ability to analyze media, using media and media evaluation, covering seven (7) different areas of marketing, public relations, news and presentation, entertainment industry, social network, film production and creating the campaign.

Faculty of Communication Arts, Reception Chulalongkorn University Building Media Usage Understanding MCOT’s creative Creative Media Media Employee’s Literacy media network Schools engagement

Evaluation Analysis MCOT

This particular campaign may be explained using the Impact Value Chain as follows (in this paragraph). The Company has arranged media literacy learning course for the participating schools through communication activities and training sessions in order to obtain the students media literacy from the planned number of participating schools. With such knowledge, it is to be hoped that customer behavioral pattern will be changing in both teachers and students of the participating schools in terms of the ability to produce media for contest, curriculum integration, communicating the creative media, as well as preparing the knowledge set about the practically performed activities. In order that the shared value is created between society and the organization, the participating schools have adopted MCOT Creative Media course, as well as building the media literacy network while MCOT is being accepted by the Thai society in terms of CSR activities as well.

Inputs Activities

3. Promotion of Sustainable Development MCOT is focusing upon producing and promoting the Company’s programs’ content that covers all three (3) dimensions of sustainable development: economy, society and environment. This is to encourage the audiences to be able to realize the possible problems incurred in those aforementioned dimensions; with comprehension it could lead to sustainable development. The following programs are examples of MCOT’s efforts in this area: 1. Sustainable Economic Development “AEC: Getting Rich”, broadcast on Saturdays 12:30-13:00, concerns AEC-related business content, with 3 segments in particular: (each country’s) business analysis segment, Thai businessmen abroad segment and “Amazing ASEAN” segment. The program is strategically being produced to be entertaining to allow the audiences to reach and understand different ways of life, rules, taboos, etc. within each individual AEC countries, as well as AEC’s “business” way of life.

“One-hundred-million Youngster”, broadcast on Saturdays 10:30- 11:00 hours, showcases anecdotes and stories of financially successful people (being successful) at young age by presenting different angles of show guest’s life, which may inspire audiences; audiences also gain benefits by the ideas discussed during the show. 2. Sustainable Social Development “Jub Kao Bantao Tuk” , broadcast from Mondays to Fridays 14:50-15:00 hours, was born from the idea that television media are people’s echo and that hardships endured by society members should be revealed so that corrections may be made effectively. The program is being focused upon concisely presenting the existing social problems, penetrating through the roots of each one directly geared towards the target audiences with simple and straightforward format while serving as contact center in a sense.

“Khon Kon Khon” , broadcast on Saturdays 14:00-15:00 hours, in each episode showcases life of the show guest who is an ordinary person but find their way to contribute greatly to the Thai society. The show has been well received by both governmental and private sectors, garnering many awards along the way.

3. Sustainable Environmental Development “Green Planet” , broadcast from Wednesdays to Fridays 17:30-18:00 hours, provides knowledge content in its internationally-created, special documentary form, presenting life of world creature other than human beings on Earth. The underlining idea also includes the hope that audiences will come to realize importance of all world creatures and that of environmental preservation.

“Tong Tua Thai”, “Happy Map” and “Nee Teow” : all three programs. These three programs will take their audiences to different places in the world, domestic and international, to learn and be entertained by charms of those attractions, and peoples themselves, while the programs also hold firm to the idea of environment preservation.

4. Strategic Philanthropy MCOT showcases the Company’s good social responsibility by “giving”: promoting the value in both organization and the recipients themselves while continually focusing upon attaining both social and business-oriented goals hand in hand. Throughout 2013, MCOT has been organizing “MCOT Sanjorn” activities, with both the Company’s employees and officials, and DJ personalities, hosts, celebrities and artists collaborating for great cause, “giving” (back) to people in provinces and such, while entertaining many across the regions of Thailand. Strategic philanthropy has also been implemented in response to “MCOT brand”. And MCOT has also received commendable cooperation from a wide variety of TV programs, etc., including “Lady Nine”, “Klook Vong Khao”, etc. MCOT also has performed CSR-induced activities, which means for the good of social responsibility the Company is also designing/creating social-oriented activities for its corporate clients strategically in response to society’s needs and wants, as well as helping to present the clients’ corporate identities.

5. Social Value Creation MCOT’s social value creation is focused upon creating changes within the Thai society through the Company’s media programs/content, campaigns and activities in order to help create awareness. In 2013, “MCOT Let’s Green” campaign took shape with objectives to encourage general public, as well as the Company’s personnel, to realize importance of participating in energy and environmental preservation. While “Let’s Green” was not only be following up with the “output” (number of participants or number

53 of plants, etc.) but also the “outcome” (actual quantity of energy reduction, etc.) and the impressive “impacts” (changes in terms of [better] attitude and behavior of the participants).

8. Other Operating Performance

Adherence to social responsibility, MCOT Plc. has integrated CSR in every process and units of organization. Throughout the year 2013, we have consistently organized several activities through every channel to create benefit to society at large, for example;

x ABU Robot Contest Thailand 2013 x “Som Sang Suk” Project organized by Health Club TV Show x Field Trip to Chiengrai arranged by “Kui Kamong Bai Sam Mong” TV show x Modernine Cartoon Fair on National Children’s Day 2013 x To celebrate First Year Anniversary of “Kluk Wong Kao”, the program organized a special forum and a donation for the Babies’ Home Foundation in Rungsit. x F.M 96.5 on tour to Royal Project at Kao Hin Son, Cha Choeng Sao Province. x F.M 100.5 News Network on tour to Samed Island x F.M. 99 Active Radio Window 8 workshop opened for public x MET 107 MET MERIT OCTOBER GO PINK Activity: Breast Cancer Awareness Campaign x “Pedal for Young” Superstar Project organized by F.M 95 Luk Tung Mahanakorn

x D.J and artists from SEED F.M 97.5 joined Religious Sites Renovation Project at Klang Kred Temple, Nonthaburi. x Kids Camp Project organized by MCOT Radio Lungsuan, Chumporn x MCOT Radio Krabi organized special 2013 National Children’s Day event in Krabi. x MCOT Radio, Ranong made a special news scoop to promote annual tourism and tradition of Ranong and broadcast in MCOT FM Radio, MCOT 1 and social media x MCOT Radio, Rayong organized “2013 Good and Enough for King” Project at Rayong Province

9. About This Report Guidelines and Framework of the Report

The objective of this Annual Sustainability Report is to communicate MCOT's performance on social responsibility from the 1st January to 31st December 2013. This is the first year to separate the annual sustainability report from the annual report in order that the stakeholders who are particularly interested in social responsibility and sustainable development will be informed of clear and more complete information. The information disclosure in this report follows the guidelines of the Global Reporting Initiative (GRI) 4th Generation (G4). Starting from this year, it will be reported annually. For the first sustainability report, MCOT focuses at the performance operated by its own company. Therefore, the information does not cover subsidiary companies and co-operative companies. In addition to communication with stakeholders, MCOT PCL aims that this sustainability report preparation works as a tool to improve the organization's practices toward social responsibility since the report will disclose the commitment, management approach and performance according to indicators. Data collection and arrangement of report contents will reflect the company's operating performance, impacts, levels of

55 problems and commitment to problem solving which will lead to a vision for a better future's creation. MCOT staff members have taken an important part to specify the contents of the first annual report. Staff members of each sector have brainstormed to analyze nature of works, operational risks, impacts from operation and values for inside and outside the organization resulting from 3 operational aspects: economy, society and environment, and including the staff members who have conducted the links between their responsible areas and different groups of internal and external stakeholders. They, then, have ranked in order the importance of issues discovered by considering 2 dimensional matrixes which are 1) Significant of Economic, Environment and Social Impacts 2) Influence on Stakeholder Assessment and Decisions. All contents of the report were reviewed, verified and approved by the Corporate Governance Committee in the final step. The sectors related to concerned performance were assigned to be responsible for data collection and information calculation according to the indicators selected. Data were collected each month and calculated through the year. Some parts of data can be directly measured such as information on employee performance while the others need to be reconciled from 2 sources of data or above such as information on environment. MCOT has appointed the CSR activity team for evaluating internally CSR strategies and performance. We also invited scholars and experts in social responsibility and sustainable development to give their opinion on the information. For the following years, MCOT has planned to disclose more complete social responsibility and sustainable development performances by reviewing regularly stakeholders' expectation and concerns, consideration on increased indicators and improving data collection to be more complete. MCOT has planned to support partners in the supply chain to formulate the policy of mutual social responsibility practices which would help improve MCOT's performance. In case that you have questions or require further information on this report, please contact Corporate Communications Department, 1st floor, Administration Building 1, MCOT Head Office 63/1 Rama IX Road, Huay kwang Sub-District, Huay

56 kwang District, Bangkok, Telephone: 0-2201-6252-3 Fax : 0-2246-1866 Email : [email protected] .

10. Looking Ahead

The 2013 Sustainable Development Report is MCOT’s first report on corporate social responsibility. During the year 2013, a concrete MSR framework has been formulated through studies of responsibilities held by internal units and engagement with the stakeholders who wish for the Company’s responsibilities for operations, society and environment, which are the key forces to create positive social change. After adopting this framework, it is found that the Company has complied with certain important principles and a recording of Key Performance Indicators (KPIs) of the current business operation in accordance with Global Reporting Initiatives (GRI – G4) needs to be improved to enable efficiency in sustainable operations assessment. Also, MCOT will continue to attach the greatest importance on stakeholder involvement by annually reviewing procedures and results and improving the Sustainable Development Report. In 2014, MCOT plans to adopt Social Impact Assessment (SIA) model to assess the impacts on the society of the Company’s social development schemes and projects, including that on Sharing Knowledge of Creative Media to Schools. The year 2014 marks an important milestone in broadcasting industry, the switch from analog to digital broadcasting system, bringing business transformation and fierce competition among an increased number of operators. Although both the management and staff are required to adapt themselves to such competitive environment, MCOT is committed to maintaining socially and commercially balanced approach by offering creative and high quality content, under the concept of “Wisdom Society”.

11. GRI : G4 Content Index

General Standard Disclosure General Standard Disclosure Indicators Section Remarks STRATEGY AND ANALYSIS G4-1, G4-2 - Leadership Message - Our Business - Review of the year – ACT/Governance and Leadership ORGANIZATIONAL PROFILE G4-3 to G4-10 - Our Business G4-9, G4-10 Partially reported G4-11 to G4-13 Not available COMMITMENTS TO EXTERNAL G4-15 to G4-16 - MCOT’s MSR and Sustainability INITIATIVES IDENTIFIED MATERIAL ASPECTS G4-18 to G4-20 - Our Material Issues G4-17 Not AND BOUNDARIES available STAKEHOLDER ENGAGEMENT G4-24 to G4-27 - Stakeholder Engagement - Review of the year – ACT/Governance and Leadership REPORT PROFILE G4-28 to G4-32 9. About This Report G4-33 Not applicable GOVERNANCE G4-34, G4-38, G4- - Our Business 39 - Review of the year – ACT/Governance and Leadership ETHICS AND INTEGRITY G4-56 Review of the year – ACT/Governance and Leadership and CREATIVITY/Creative Independence

General Standard Disclosure Indicators Section Remarks General Standard Disclosures for G4-2 impacts, risks and -Our Business Sectors opportunities related to the creation -Review of the year – and dissemination of content ACT/Governance and Leadership G4-7 Ownership Structure to Our Business evaluate the integrity and independence of content G4-9 Breakdown number of Review of the year- Employees ACT/Respectful Workplace G4-34 Governance Structure and Review of the year – decision making process to ensure ACT/Governance and editorial independent Leadership G4-37 Expand the list of stakeholder Stakeholder Engagement group’s examples by including audience, advertisers, media observers among others. G4-42 Organization’s value with Review of the year- respect to content creation and CREATIVITY/creative dissemination for all content independence and Impartial & Balanced Output Review of the year- SOCIETY/Freedom to access