ENHANCING ENHANCING

INTEGRITY :INTEGRITY : BBEST PRACTICES EST PRACTICES FROM MALAYSIAFROM MALAYSIA

presentation by :

ABDUL WAHAB BIN ABDUL AZIZ

Chief Integrity OfficerAMANAH RAYA BERHAD

- the oldest and premier trust the oldest and premier trust company in Malaysia.company in Malaysia.

- formerly known as the formerly known as the Department Department of Public Trustee and Official of Public Trustee and Official Administrator since 1 May 1921.Administrator since 1 May 1921.

- corporatized on 29 May 1995 – corporatized on 29 May 1995 – operate as Amanah Raya Berhad operate as Amanah Raya Berhad on on 1 August 1995.1 August 1995.

REQUESTED ALL SECTORS, NAMELY REQUESTED ALL SECTORS, NAMELY GOVERNMENT, PRIVATE SECTOR, GOVERNMENT, PRIVATE SECTOR, POLITICAL PARTIES, RELIGIOUS POLITICAL PARTIES, RELIGIOUS

INSTITUTION, TRADE UNIONS, NGOS AND INSTITUTION, TRADE UNIONS, NGOS AND OTHER GROUPS TO DEEPEN THEIR OTHER GROUPS TO DEEPEN THEIR

UNDERSTANDING OF INTEGRITY AND UNDERSTANDING OF INTEGRITY AND COMMITTED TO IT COMMITTED TO IT

NATIONAL NATIONAL INTEGRITY PLAN INTEGRITY PLAN

The NIP emphasizes the importance of the private The NIP emphasizes the importance of the private sector to include Integrity agenda in their business sector to include Integrity agenda in their business operation : operation :

• Strengthen Corporate Sector Integrity.Strengthen Corporate Sector Integrity.• Promote and strengthen business ethics.Promote and strengthen business ethics.• Strengthen cooperation among all sector through the Strengthen cooperation among all sector through the

concept of Malaysia Incorporated in promoting concept of Malaysia Incorporated in promoting integrity.integrity.

• Strengthen cooperation between corporation and Strengthen cooperation between corporation and trade unions.trade unions.

• Enhancing corporate social responsibility and Enhancing corporate social responsibility and accountability, accountability,

• Corporate governance Corporate governance

INTEGRITY AGENDAINTEGRITY AGENDA

- launched by Tan Sri Bernard Giluk Dompok, Minister In The Prime Minister Department on 26th April 2006 at Institut Integriti Malaysia.

The purpose of initiating the Plan is to foster and maintain Public confidence in the company’s integrity.

This is achieved through provision of a framework to build an integrity culture in ARB by implementing the related objectives, strategies and program encompassed in the National Integrity Plan

AMANAHRAYA AMANAHRAYA

INTEGRITY PLANINTEGRITY PLANAN INTEGRATED APPROACHAN INTEGRATED APPROACH

To actively enhance a culture of

professionalism and integrity in AmanahRaya.

To prevent the incidence of misconduct and corruption linkages to other.

To ensure AmanahRaya’s integrity and transparency is sustained in daily practices through elements of honesty, efficiency and trustwothiness.

OBJECTIVESOBJECTIVES

APPROACHAPPROACH EducationEducation

integrated programs to increase knowledge, awareness integrated programs to increase knowledge, awareness and skills in integrity managementand skills in integrity management

PreventionPreventiondetect and identify weaknesses in practices, systems and detect and identify weaknesses in practices, systems and work procedures and continue to increase the level of work procedures and continue to increase the level of efficiency.efficiency.

EnhancementEnhancementemphasizes on efforts to ensure compliance on work emphasizes on efforts to ensure compliance on work processes, systems, code ethics and client’s charter. processes, systems, code ethics and client’s charter.

PunitivePunitivedevelop a mechanism that will increase the ability to develop a mechanism that will increase the ability to detect and punish those involved in activities that will detect and punish those involved in activities that will taint AmanahRaya’s integrity.taint AmanahRaya’s integrity.

ACTION PLANACTION PLAN Name of the programs Target groups Objectives to achieve Identify departments or units responsible for Time frame - schedule Evaluation method

CRITICAL SUCCESS CRITICAL SUCCESS FACTORSFACTORS

I.I. Full CommitmentsFull CommitmentsII.II. Total AwarenessTotal AwarenessIII.III. Open CommunicationOpen CommunicationIV.IV. EnhancementEnhancementV.V. PreventionPreventionVI.VI. TransparencyTransparencyVII.VII. AccountabilityAccountability

COMMITMENTCOMMITMENT Implementation of integrity Implementation of integrity

initiatives has been greatly support initiatives has been greatly support by the Group Managing Director.by the Group Managing Director.

Setting up of the Chief Integrity Setting up of the Chief Integrity Office (CIO) to formulate and review Office (CIO) to formulate and review corporate integrity strategies and corporate integrity strategies and action plan for promoting integrity.action plan for promoting integrity.

Setting up of Personnel and Integrity Setting up of Personnel and Integrity Committee at the Board level.Committee at the Board level.

AWARENESSAWARENESS Corporate Corporate Vision, MissionVision, Mission and and Values Values

have been widely circulated – integral in have been widely circulated – integral in cultivating an integrity culture.cultivating an integrity culture.

Education Programs – lectures, seminar, Education Programs – lectures, seminar, workshop & integrity corner.workshop & integrity corner.

Introduction of “Introduction of “e-buletin Integriti”e-buletin Integriti” - - online integrity newsletter.online integrity newsletter.

Integrity Awareness Test. Integrity Awareness Test.

COMMUNICATIONCOMMUNICATION

Introduced “Introduced “ethics_centre” - ethics_centre” - web web page for communication and page for communication and dissemination of information on dissemination of information on integrity.integrity.

Introduction and enforcement of Introduction and enforcement of “whistle blowing” “whistle blowing” policy – policy – encouraged employees to raise encouraged employees to raise their concerns about illegal or their concerns about illegal or unethical activities.unethical activities.

ENHANCEMENTENHANCEMENT

Maintaining integrity through the Maintaining integrity through the formulation of formulation of Code of Business Ethics Code of Business Ethics (COBE).(COBE).

Setting up of a Compliance Unit Setting up of a Compliance Unit under CIO to receive and under CIO to receive and investigate complaints.investigate complaints.

Briefings to vendors and suppliers on Briefings to vendors and suppliers on COBE - explain duties and obligation COBE - explain duties and obligation for a proper business conduct.for a proper business conduct.

PREVENTIONPREVENTION Identify & study the weaknesses in Identify & study the weaknesses in

practices, systems and work practices, systems and work procedures.procedures.

““Surprise Check” based on Internal Surprise Check” based on Internal Audit Report.Audit Report.

Drafted guidelines and procedures :Drafted guidelines and procedures :- Guideline and Procedure on gift.- Guideline and Procedure on gift.- Guideline on custody of proprietary- Guideline on custody of proprietary

information.information.

TRANSPARENCYTRANSPARENCY Developed a website to provide Developed a website to provide

public with relevant information public with relevant information about the company – about the company – www.arb.com.mywww.arb.com.my

Established a hotline for public to Established a hotline for public to lodge complaints and provide lodge complaints and provide information – managed by the information – managed by the Customer Relation Management Customer Relation Management Department. Department. (Careline : 03-20729999)(Careline : 03-20729999)

ACCOUNTABILITYACCOUNTABILITY Integrity Pledge by employees to provide Integrity Pledge by employees to provide

quality services to the public – help the quality services to the public – help the company to maintain public trust and company to maintain public trust and inspire confidence of higher public inspire confidence of higher public scrutiny and accountability.scrutiny and accountability.

Certification of Compliance to COBE – Certification of Compliance to COBE – responsible to comply with all the responsible to comply with all the provisions of the Code.provisions of the Code.

Integrity Pledge by vendors and Integrity Pledge by vendors and suppliers to foster an open, transparent suppliers to foster an open, transparent and productive relationship with these and productive relationship with these external parties.external parties.

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"Integrity without knowledge is weak and useless, and knowledge without integrity is dangerous and dreadful."

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