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. 2 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 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) 4 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) 5 Organization Chart of MCOT Public Company Limited 6 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. 7 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