P1_Corporate_Responsibility_2013.pdf

Corporatere p o r t 2013

Resp nsibility

To be a sustainable business is to be a responsible business. As a young telecommunications company aspiring to be a leading player in Malaysia, Packet One Networks (Malaysia) Sdn Bhd (“P1”) manages our business with a focus on long-term sustainability and not just immediate profit and growth.

P1 as a subsidiary of Main Market listed, Green Packet Berhad, places strong emphasis on corporate governance in accordance to the high standards set out by the Malaysian Code of Corporate Conduct and the listing requirements of Bursa Malaysia.

While we have in the past five years since our incorporation, implemented initiatives that deliver value to our key stakeholder groups; employees, customers, community, suppliers, regulators, and shareholders; we are only beginning our journey in defining the P1 corporate responsibility framework and in the reporting of our efforts. However, we are pleased to find that our efforts are aligned to Bursa Malaysia’s corporate social responsibility framework built on the pillars of Workplace, Environment, Community and Marketplace.

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We believe that our employees, whom we refer to as ‘Packeteers,’ are the most important asset of our company. Our aim is to find and keep the highest caliber employees and encourage their strong contribution through active engagement and learning and development opportunities.

Employee engagementWe believe that successful employee engagement wins over the head and the heart. It is without a doubt that goals and role clarity is important for employees to effectively contribute to the overall success of the organization. However, that alone is not enough and at P1, we constantly strive to instill purpose and meaning into the work that we do.

P1 aims to be a top tier telecommunications company serving the most innovative converged communications services with advanced next generation technology. To reach our ultimate goal, the Packeteer must possess the P1 challenger DNA and practice our shared STRIP values – service excellence, teamwork, reliability, innovation and passion. Besides formal channels such as twice-yearly performance appraisals to reinforce a winning culture through a shared purpose and values, we engage with employees through various communication channels as follows: Intranet portal - PacketNet facilitates our employees’ daily administrative tasks and enables robust information and knowledge-sharing amongst employees.

Face-to-face sessions – Management’s open door policy, Quarterly Team Meet and cyclical ‘Teh Tarik’ (tea) sessions for employees to get closer to top management and provide feedback about the company. Active information updates – The sharing of key corporate developments and activities disbursed via platforms such as announcement email, memo board, and the company’s internal e-newsletter, ‘Packeteers’ Pride.’ Fielding of ideas, input and feedback – Encourage employee feedback with easily accessible channels such as email-based ‘Idea Hub’ and ‘speakout’ boxes located on every floor of our office building.

WORKPLACE

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With employees spending so many hours at work, it is important for us to make P1 a great place to work. We believe that employees’ happiness at work translates to a more productive, creative, and loyal workforce. Our initiatives, from purposefully creating recreational spaces for interaction at the work place, to running employee programs and activities; are aimed at promoting positive interaction, team spirit, and to boost employee pride.

Our facilities for employees include a dedicated recreation floor with a game room, relaxation room and a gym. We also have a rooftop garden, an in-house cafeteria and small group dining area for team get-togethers.

The Green Packet Group (GPG) Sports & Social Club also organizes activities throughout the year with a focus on community service and philanthropy, health and fitness, and to create festive joy around the many diverse cultural festivities celebrated in Malaysia. The GPG Sports & Social Club is run by employees of the Group on a voluntary basis with members elected by their peers annually.

Aside from social activities, we believe that open and candid communication in our daily work interactions is the key that will unlock our limitless potential. It is through open and candid communication that we fuel ideas; challenge concepts, systems and processes; and provide the check and balance that makes something good even better. While the company’s values of teamwork and passion both work to inculcate the desired communications culture, we believe that creating a casual and friendly environment is also necessary and hence practice a 5-day dress down policy among others.

HAPPINESS AT WORK

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ENVIRONMENTP1 is conscious about reducing the environmental impact of our operations and focuses on reducing paper usage, conserving energy and reducing our carbon footprint to play a part in protecting earth’s natural resources.

Reducing paper waste

Our efforts to reduce paper usage start at the workplace and extend to our commercial activities particularly on the reduction of physical bills and printed marketing collaterals.

P1 as at 30 June 2013, has 553,000 subscribers. To our deter customers from requesting for hardcopy bills, P1 imposes a charge of RM5.00 monthly. On top of that, we constantly promote the use of e-bill and the checking of billing information via P1’s Self Care portal. All of these efforts had resulted in 98.6% of our customers opting for e-bills.

In 2013, we also significantly reduced paper usage for marketing collaterals with a few simple but effective measures. They are as follows:

Use of lowergrammage paperfor leaflets

128 gsm art paper

Modify designsand layouts toreduce - the number of panels per leaflet

Volume composition of1,2,and 3-panelleaflets: 12:42:46

Stricter tradecontrol mechanismto counter wastage

Quantity: 10,477,030

80 gsm art paper

Quantity: 3,604,709

Volume composition of1,2,and 3-panelleaflets: 25:55:20

Revised registrationforms to reducenumber of sheetsrequired

Quantity: 1,323,000 sheetsof paper

Quantity: 576,667 sheetsof paper

38%

69%

Not applicable

56%

Initiative 2012 2013 Saving %

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Our efforts to reduce paper wastage will also reduce greenhouse gas emissions as less energy and fuel are being expended on printing, processing, mailing and the transportation of paper.

Taking cars off the roadAt P1, we encourage employees’ use of public transportation by providing shuttle services to and from public transportation hubs on a daily basis. Current, around 10% of our employees use this facility. We will encourage more employees to use this facility over time to help reduce the number of cars on the road.

Energy savingsAs part of the green initiative, we encourage employees to form the habit of switching off electricity that is not being used with internal announcements, notices and poster campaigns. The Facilities Department, which is accountable for the company’s energy savings goal, constantly makes adjustments and monitors progress. Some simple measures taken include switching off 50% of lighting in certain low-use areas and limiting the number of lifts operating from 7:00pm. Thus far, our efforts had resulted in an encouraging monthly reduction of RM11,319 on our electricity bills since March 2013. We will continue to track our energy consumption and aim for more savings.

Internally, our efforts to go paperless stepped up a notch in 2013 with the introduction of the Paper Use & Distribution process which regulates paper use by allocating a specified volume of paper to each department on a monthly basis. This effort is coordinated by the company’s Facilities Department and the appointed “Green” representative of each department. Paper allocation is based on the department’s historical usage and any additional requests will need valid justifications and approvals by departmental and divisional heads.

Target Distribution(A4 Reams)

Actual Distribution(A4 Reams) Saving (%)Month

173 -6.79%Jan

162 142 12.40%Feb

152 6.17%Mar

Apr 129 115 10.85%

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“We feel strongly about ‘closing gaps’ – be it bridging the digital divide, opportunity gap or leveling the playing field.”

As a company, we believe in ‘closing the gaps’ so that everyone can have access to similar opportunities. Over the years, P1 has actively supported various initiatives to carry out our belief.

- Implemented a proof-of-concept community broadband center utilizing 4G WiMAX in rural Chini Timur, Pahang. The center provides Internet access and implements various ongoing initiatives to develop the necessary skills and values for the community to adopt ICT.- Implemented nine (9) P1 community broadband centers and additionally provided broadband to homes in the rural areas of Perak and Kedah under the Government’s Universal Service Provision fund.- Collaborated with local youtubers on P1’s marketing campaign in 2012, and organised the “P1 Malaysian Filmmaker Showcase - 15Malaysia.” Both are aimed at bridging the wide local content gap and highlight the creativity of local independent filmmakers. - Contributed towards the Government’s public low cost housing fund to facilitate access to safe, comfortable living conditions where families may be raised with the hope of greater opportunities for their future.

Aside from facilitating access to equal opportunities through technology and infrastructure, P1 consistently runs our annual ‘Give blood, Give Life’ blood donation campaign; and through the GPG Sports & Social Club, organizes charitable initiatives for employees to give back to the underprivileged com-munities where we operate.

COMMUNITY

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MARKETPLACEExternal Stakeholder Engagement

Managing Customer ExpectationsResponsible marketing for broadband services is a major concern to both consumers and Government. Areas of concern include advertised speed against actual speed and key terms of services such as contract duration, opt-out service add-ons, and cancellation policies. At P1, we ensure to clearly manage customer expectations with a few extra steps beyond the inclusion of clauses in our marketing collaterals.

These extra steps include:• Including check-off boxes for important information and terms of service in registration forms which customers must acknowledge. • Disseminating a welcome leaflet with important information and terms of service as part of the sign-up process. • Making available and promoting to customers, P1’s comprehensive FAQ page on the official P1 customer portal.

Sustaining customer loyaltyWe believe that customers who are engaged are customers who will stay loyal to the brand and service. As such, P1 actively engages our customers for the purpose of building a strong P1 community, to educate, or to receive feedback. The few channels that we utilize are as follows:

1. Monthly e-newsletter, entitled P1 e-Social2. Annual Customer Satisfaction Survey3. The P1 Cares Facebook page for post-sale customer service4. The P1 Cares Twitter handle for post-sale customer service5. The P1 share email account for general customer feedback on their service6. Email and SMS service notifications 7. Loyalty rewards

Building P1 brand strengthIn today’s competitive marketplace, we understand that a strong brand is critical for our business success and place strong emphasis on crafting and presenting a unique brand identity. To do this, we developed a two-part brand book entitled, “How we look” and “Who we are.” The brand book acts as a guide for internal and external brand custodians to ensure consistent presentation of our brand visual identity and directs how we behave as an organization.

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A High Performing Organization Our formula for a high performing organization is to create a highly competent workforce through continuous learning and development; and to ensure that they are highly engaged.

Employee Satisfaction IndexOne of the ways that we engage our employees on the business methodically is through our annual employee engagement survey. The survey helps us better understand employees’ expectations and through that understanding, enables us to build a more conducive environment for a high performing organization.

The survey is independently administered by an international survey organization to ensure strict confidentiality and unbiased reporting. The survey response rate for 2012 was [87%].

Learning and developmentP1’s dedicated Learning & Development department continues to plan and organize in-house and external training programs based on the individual needs of our employees and in line with business requirements. GP Beyond, the Group’s e-learning platform carries a rich resource of relevant training and development courses that employees can access at anytime and complete at their own pace.

P1 also established a Leadership Program especially for key talents with specialized skill sets or are high performers. The program combines training and information-sharing in a small group setting, and 1-on-1 mentoring by the Group’s top management team.

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