Kanbawza Group of Companies (Kbz)
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KANBAWZA GROUP OF COMPANIES (KBZ) UN Global Compact Communication on Progress May 2019 Contents 1. A Joint Statement form the Chairman, U Aung Ko Win and the Managing Director, U Nyo Myint of KBZ Group of Companies. 2. The KBZ Group Approach to Business 3. Human Rights Issues 4. Labour Rights 5. Environmental Issues 6. Anti-corruption 7. Analysis & Strategy for May 2019 – May 2020 A JOINT STATEMENT FROM THE CHAIRMAN & THE SENIOR MANAGING DIRECTOR “The last twelve months have proved to be another year of consolidation and further growth. Over this period, we have been delighted to see a continued upward trajectory across the Group following a consistent pattern over what is now approaching three decades.” “Our Group of companies employ in excess of 80,000 excellent staff. This is a statistic of which we are very proud. Over the last twelve months we have continued to consolidate our position as leading practitioners of international business standards in Myanmar. We continue to benefit both ourselves and our communities through the implementation of policies aligned with the United Nations Global Compact (UNGC) and other bodies such as the Global Reporting Initiative (GRI), Transparency International (TI) and the Myanmar Centre for Responsible Business (MCRB).” “We are committed as a Group to the UN Global Compact principles encompassing human rights, labour rights, the environment and anti-corruption. We committedly support the 17 Sustainable Development Goals and strive to implement them diligently across our Group. Signing up to the UN Global Compact in May 2015 was a significant demonstration of our intentions as an organization to adhere to these goals. We have steadfastly endeavoured to achieve this and have seen the value this approach is bringing not only to all our stakeholders but also society in general.” “Before and since we signed up to the UNGC, we have also collaborated with other organisations such as Global Witness, the Extractives Industries Transparencies Initiative (EITI) and multiple local industry initiatives. We have also been active in our support and engagement with the Government’s Myanmar Sustainable Development Plan (MSDP).” http://themimu.info/sites/themimu.info/files/documents/Core_Doc_Myanmar_Sustain able_Development_Plan_2018_-_2030_Aug2018.pdf “In addition to our strategic plans for responsible business, we continue to be firm believers in philanthropy. Contributing to those in need during a transitional stage in our country is an act we see as an obligation rather than an option. Our philanthropic work is outlined in more detail in our report.” “With more than 500 branches, KBZ Bank is the leading financial services provider in Myanmar. Our extensive network of branches extends throughout every State and Region in Myanmar. We continue to strongly believe that the provision of widely accessible financial services will provide an on-going major role in our country’s sustainable growth. We are proud of our micro-finance programmes and the positive outcomes we have seen as a result.” “Our collective Group success has continued to establish us as the country’s highest corporate tax payer for more almost a decade. KBZ Group thereby contributes significantly to Government development projects including education, healthcare and infrastructure for the betterment of society and communities across the country.” “One of our drives over the last few years has been to push further for ever greater inclusivity within our KBZ Group. At KBZ we are firm believers in embracing diversity and consider the benefits to our organisation are greatly enhanced through a rich blend of staff from all backgrounds. Through this approach, we are able to provide our companies with a wonderful melting pot of talent and ideas. We have paid particular attention towards providing access to workplaces and appropriate facilities for persons with disabilities to ensure all our staff and customers are treated with respect and dignity. We are similarly supportive of all other aspects of diversity within the workforce.” “Key to our business philosophy is integrity and transparency. There are multiple policies and strategies we have implemented over a number of years to ensure our companies are acting to the best possible standards in terms of ethics and integrity. All companies within our Group as well as our suppliers and affiliates are expected to meet the standards outlined in our Code of Conduct and align with our other Group policies. These encompass a comprehensive range of values and commitments which are listed on our website for all staff and members of the public to view. These policies have progressively been implemented and monitored over the last five years.” “We sincerely value our teams and we look to give them the opportunity to flourish through a conducive environment and excellent training and progression opportunities. Our training programmes stretch from the induction of new members of staff right to the Group Board. This is reflected by the staff recruitment and retention figures outlined in our sustainability reporting.” “Our multiple stakeholders continue to play a vital role in our success and Sustainability as a Responsible Corporate Entity. There are stakeholder mapping and engagement processes in place in addition to risk management controls throughout our organisation. These ensure we are all working together in harmony. As the Chairman and Senior Managing Director of the KBZ Group, we take responsibility to personally oversee these with the support of our Boards of Directors.” “We are grateful to our Leadership teams for supporting the continued growth of KBZ Group and its companies. They play a vital role in determining our future success. We are truly fortunate to have so many people in the Group that share our vision, mission and core values with a commitment and enthusiasm to support KBZ and our country to excel.” U Aung Ko Win U Nyo Myint Chairman Managing Director THE KBZ APPROACH TO BUSINESS In May 2015, KBZ Group became a signatory of the UN Global Compact. KBZ remains dedicated to its adherence to each and all of the Global Compact core principles. KBZ is fully committed to meeting its obligations towards the requirements of the UN’s Universal Declaration of Human Rights. Similarly it continues to follow the International Labour Organization’s (ILO) core conventions and the International Finance Corporation’s (IFC) Performance standards. KBZ has implemented social safeguards to ensure all employees and other stakeholders work in a secure environment and that it treats them with respect and dignity. There is significant diversity within the KBZ workforce, which we believe contributes enormously to our Group’s success. Our core values as an organisation determine the way in which we behave. With that principle in mind, we have implemented a Code of Conduct across the supply chain throughout our Group to which we expect all our staff, suppliers and contractors to comply to. Our Code of Conduct: https://www.kbzgroup.com.mm/sites/default/files/kbz_coc_eng.pdf Accountability for the implementation of this Code of Conduct and the more detailed stand-alone policies outlined below is designated to KBZ Managers at all levels in all our companies. It is their responsibility to communicate the importance of the Code and policies to all staff, suppliers, contractors or other engaged parties/stakeholders to ensure the standards expected by KBZ are universally met. This ongoing process includes regular training and follow up support/engagement. Quarterly reports on issues are sent to the central Group team and promptly responded to after due consideration according to the nature of the issue in case. KEY PERFORMANCE INDICATORS (KPIS) Each of our companies is responsible for developing their own KPIs and reporting on results and outcomes. Our KPIs are established and implemented according to a four stage process: 1. Formulation of Strategies (Mission, Values, Goals, Objectives, Incentives, Mapping) 2. Planning (Budgets, Forecasts, Models, Initiatives, Targets) 3. Monitoring/Analysis (Performance Analysis and Reporting) 4. Review/Adjustment (Interpret/Assess success, Change as necessary and Reformulation as required) We review KPIs annually at Group level at our Annual General Meetings. Our subsidiary companies are required to do the same. Group KPIs are outlined below with our success towards them in the shape of a performance dashboard. PERFORMANCE DASHBOARD 1. 90% Staff Retention Target 90% Progress 80% 2. 50% Staff Training p.a. Target 50% Progress 40% 3. 10% Net Profit Growth by 2019 Target 10% Progress 10% 4. Expand Business Presence by 20% by 2020 Target 20% Progress 20% 5. Expand Corporate Social Value (CSV) & Philanthropy by 15% by 2019 Target 15% Progress 20% 6. Universal Disability Access by 2021 Target 100% Progress 40% 7. UNGC COPs Advanced status by 2020 Target 100% Progress 60% 8. Employee Annual Surveys in 2019 Target 50% Progress 8% 9. Inclusive Leadership Programme for Group Directors & Senior Executives by 2020 Target 100% Progress 30% Our Performance Dashboard is a reflection of the progress we have made against both our Financial and Non-Financial KPIs. As a mid-year analysis, this is a predicative assessment of our end of year progress against our targets as set out this year. We will re-evaluate these measurements at the end of this financial year and reassess our KPIs Group-wide and formally agree specific KPIs for each of our subsidiary companies. The Board of Directors consider this