Malaysia: CSR Report Card 2008 – Part 4 (Community)

Community

This, the CSR Digest‘s first editorial, has discussed corporate social responsibility (CSR) issues highlighted by the press in 2008. In the first part, Malaysian CSR marketplace issues were explored, while the second instalment discussed CSR at the workplace issues. The third part took a look at environmental issues, while this instalment will discuss CSR in the community.

Native Rights

Logging companies were condemned due to allegations of rape against women from the Penan people, an indigenous tribe found in East Malaysia’s forest. The Bruno Manser Fonds (BMF) reported, “Penan women from the Middle Baram area of Sarawak are launching a cry of alarm to the international community over cases of sexual abuse by logging company workers in the East Malaysian state’s rainforests.

Old Logging Road, courtesy of Kekilen.

According to initial news reports, officials from the logging companies, Interhill Logging and Samling, were unaware of the allegations. Samling’s Cheryl Yong stated, “Such events are criminal and will not be tolerated because we do not condone any illegal act by employees… Any victim of criminal acts should lodge their complaints directly to the police.”

Interhill’s representative, identified as “Mr. Kiu”, admitted that so far they had no information on the matter, and that this could be because of the bad infrastructure in the interiors, which has caused infrequent communication between the camp and the headquarters.

Due to local and international outcry, investigations into the allegations are underway by the Women, Family and Community Development Ministry and the Malaysian Human Rights Commission, Suhakam.

Indigenous tribes in Sarawak also hit the headlines when they rejected government compensation for their ancestral land. The compensation was for three Bidayuh villages – Rejoi, Pain Bojong and Taba Sait – which are affected by the construction of the RM320 million Bengoh dam.

The Bengoh dam project was awarded to Naim Cendera, a corporation said to be linked to associates and relatives of Sarawak Chief Minister, Abdul Taib Mahmud.

Future by Andycap

Although some of the villagers received their compensation happily, many others protested and refused the compensation, some of which amounted to RM200,000 or more. Their main complaints include unsuitable relocation sites, inadequate compensation and non-recognition of their Native Customary Rights (NCR) land.

The Trains

Late in 2008, Malaysiakini reported the Penang state government’s dissatisfaction with MMC-Gamuda Joint Venture Sdn Bhd for attempting to ‘pass the buck’ on relocating temples affected by its electric train double-track project.

Deputy Chief Minister Dr P Ramasamy was reported to have said that the company was unethical and irresponsible. Apparently, Ramasamy was particularly unhappy with the company’s position that the temples were illegal structures. He was reported to have said,

I have told the company not to classify them as illegal because the temples have existed for decades. How could the temples suddenly become illegal structures overnight just because of the double-track project?

Meanwhile, Penang’s Chief Minister, Lim Guan Eng, expressed disappointment with MMC-Gamuda for awarding unsatisfactory compensation to private house owners and places of worship in its land acquisition process for the project. He was reported to have said,

The company should consider giving a higher quantum to compensate not only for land acquisition but also for relocation process for them. The house owners may not be able to buy even a bathroom with the amount the company plans to compensate according to market valuation,

The RM12.485 billion project, stretching from Ipoh to Padang Besar, started in January this year and is expected to be complete in 2013.

Privatization

Sime Darby Berhad announced that it was taking over majority equity in the National Heart Institute (IJN) in December 2008. Notwithstanding the company’s president and group chief executive, Datuk Seri Ahmad Zubir Murshid, assuring the public that maintaining IJN’s social obligations was not only one of the conditions from the Government but also a demand by his own board of directors,  the public and many political parties felt that privatization of such a major health care institution should not be effected.

Because of the outcry, Deputy Prime Minister Datuk Seri Najib Razak announced a few days later that Sime Darby’s acquisition deal had been postponed until an in-depth review was undertaken by the relevant ministries. Datuk Seri Najib explained that the review, led by the relevant ministries, might take several months.

Other CSR issues in the community

A number of other incidents occurred late in the year, some which overlap over into other categories. For instance, the landslides discussed in the previous part also fall into the ‘environmental’ category. Likewise, an express bus accident which took place in early December not only falls into ‘community’ but also ‘marketplace’.

The accident caused the deaths of ten people, including a nine-year-old girl, when the express bus crashed into a tree along the North-South Expressway near Tangkak. Seven of the crash victims died at the scene while the remaining two succumbed to their injuries at a hospital in Muar. According to a passenger, the roof of the bus was ripped off by the impact.

Accident by Neodecay

Twenty-six passengers, including the deceased, and two drivers were on the bus heading to Johor Bahru and Singapore from Perak. The press did not include any mention of the transport corporation involved, neither was there any highlights on action taken against the bus driver or the employer.

Plus Expressway Berhad, on the other hand, reacted promptly, announcing to the press through its corporate communication general manager, Khalilah Datuk Mohd Talha, that it was the first time a major accident had occurred at that location. She was reported to have said that a a technical team from Plus was sent to the site to identify the cause of the accident.

There have been no recent reports on any further developments.

In other community news, corporations have been reported to be doing their bit. For example, RHB Bank presented two schools with a 12-page booklet, containing instructions for children to ensure their safety when out of sight of their parents, guardians or teachers. Also, CISCO Malaysia (Cisco) recently teamed up with its business partners to raise RM14,700 for Rumah Amal Limpahan Kasih (RALK), a children’s home in Puchong. Meanwhile, Watsons Malaysia sold umbrellas, of which RM2 sales proceeds would go towards the Society for the Severely Mentally Handicapped and Shelter.

Child's Worst Nightmare by SpasticPoison

These are among many charitable endeavours undertaken by businesses in 2008. However, the press did not follow up on any stories highlighted. The public might have liked to have known how the organizations utilized the funds, or if the funds reached them in a timely manner, or if the funds reached them at all.

Onward to 2009

Malaysian businesses have a long way to go in their CSR and SRI efforts. Transparency International Malaysia released in late 2008 its findings of its Transparency International’s 2008 Bribe Payers Index (BPI). Under the findings, corporations interestingly believed that their own organizations are involved in corrupt practices in Malaysia and the region. Forty-four per cent of the 93 Malaysian businesses surveyed also believed that there was use of personal and familiar relationships when it came to public contracting.

Needless to say, this is not a good indicator of the state of CSR in Malaysia, as transparency is key in any kind of organizational best practice. For example, an organization may claim to make donations, but how is the public to know whether or not the donations were actually paid in the end?

However, there is some good news in 2008. For example, Malaysian companies are encouraged to go green by having their carbon credit income exempted from tax from 2008 to 2010, while CSR gets highlighted more and more in this press.

According to a news report, OWW Consulting, a leading CSR & SRI consultancy in Malaysia, has stated that Malaysia is ahead of other countries in the region in terms of CSR activities. And has been discussed, Prime Minister, Datuk Seri Abdullah Ahmad Badawi has placed emphasis on CSR and introduced reporting requirements and incentives for businesses to take CSR seriously.

With Datuk Seri Abdullah retiring next year, only time will tell if Malaysia’s national leadership will progress further on the road of corporate social responsibility, transparency and accountability.◊

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