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CORPORATE SOCIAL RESPONSIBILITY AND SUSTAINABILITY

In conducting business, the Company constantly upholds to the spirit of "Oyakudachi“, the spirit of providing benefits, as well as for the surrounding environment. Thus, corporate social responsibility and sustainability is among the Company’s focus in realizing a sustainable business.

In realizing the said condition, there are four pillars which the Company believes to be the key in achieving sustainable development in the society namely Economy, People, Environment, and Good Corporate Governance.

 

ECONOMY

Financial issues often considered as the main reasons for any problems within a society. People use this as the rationale for their misbehavior. Regardless any SES (social-economic-status), people who cannot manage their funds, will not be able to enjoy their income. Therefore, reaching financial freedom is important in order for people to enjoy their life. Financial freedom means you can make big life decisions without being stressed about money. It is feasible by managing your income, knowing where the money come and go, and go beyond saving to investing.

Realizing this matter, since 2017 the Company had actively begun to promote financial literacy to encourage financial freedom and this will be the Company’s main focus in terms of Economy. Several activities conducted to realize the said matter among others:

Yuk Nabung Saham Campaign

In collaboration with Indonesia Stock Exchange, the Company conducted Yuk Nabung Saham campaign within the Company as a form of Stock Market education for the Company’s employees. In this campaign, employees were encouraged to understand stock market, learn aboyt investment alternatives as well as the risks. Through the Yuk Nabung Saham campaign, the Company hoped to add employees‘ knowledge toward financial literacy with the intention that they could manage their financial more wisely.

 

ENVIRONMENT

Manufacturing activity produces industrial wastes that maybe harmful to the environment. Product packaging piled up creating trash mountain and the Company is aware in the said condition. Therefore, in conducting business, the Company is committed to create business growth which is in line with the improvement of environment quality. For that reason, environmentally friendly business activities are realized by the Company through:

  • Waste Management and Control

The Company is committed to constantly minimize negative impact from the waste generated. This is realized by the Company by preserving the environment and building waste management installation so that waste generated is safe for the surrounding environment. Every day, waste water is controlled closely by waste control team and Quality Control Department. Besides, the waste is also monitored monthly by the management office of MM 2100 Industrial Town, Bekasi. Then, report on the monitoring and controlling activities are presented every 6 months to the Local Environmental Management Body (BPLHD) and submitted into the Report of the Implementation of Environmental Management Plan and Environmental Monitoring Plan (RKL & RPL) which then reported to the Ministry of Environment.

While for Hazardous and Toxic Material wastes (B3), the Company had permission to store the B3 waste temporarily which then the waste is transported by third party.

  • Realizing a Healthy Working Environment

The Company constantly strives to realize a healthy working environment for the employees. Therefore, in the effort to preserve air quality within the Company’s environment, reforestation around the Company area is continuously performed. Besides, the Company also regularly conduct emission test on boiler and chimney. While to protect working environment, the Company regularly conduct ambient (air condition) check in production area and room noise.

  • Creating Environmentally Friendly Products

The Company is committed to develop beneficial and quality products which are well-synergized with the environment. Therefore, during the product development process, the Company constantly implementing 3R policy, namely Reduce, Reuse and Recycle without minimizing consumer satisfaction in terms of quality, function and design. This is realized by the Company by offering products in refill packaging for several products such as GATSBY Shower Gel, PIXY Two Way Cake, and others. In addition, the Company also had replaced several raw materials to the environmental friendly choices. This signifies the Company’s commitment in minimizing negative impact the Company has to the environment.

  • Participation in Preserving the Environment

The Company is committed to constantly contribute actively in preserving the environment. This is realized by the Company through several activities conducted in the effort to preserve the environment, among others by participating in the One Million Trees Reforestation Program in Bekasi Regency on March 2018 in cooperation with MM 2100 Industrial Town, which then the trees will be planted in several areas within the Bekasi Regency.

Besides that, in August 2018, PT Mandom Indonesia Tbk in cooperation with BeFa (Bekasi Fajar, MM 2100 Industrial Town) had planted hundreds of Mangrove trees in the area of Desa Pantai Bahagia, Muaragembong, Bekasi. Mangrove is a beneficial plant for people living near the seashore area. The benefits among others to reduce 50%-60% of tsunami waves and abrasion rate, sterilize salty seawater to freshwater, as well as recreation and eco-tourism area.

  • Mechanism of Complaints on Environmental Problem

For those who would like to submit complaints regarding environmental problem which relate to the Company, they may contact through phone or fill in the form available in the “Contact Us” page in the Company’s website. During the year 2019, there were no complaints submitted regarding environmental problem.

 

PEOPLE

RESPONSIBILITY TOWARD CONSUMER

In realizing the responsibility toward consumer, the Company is committed to create the best products which constantly capable in providing inspirations and good image for consumer. In realizing this mater, the Company closely monitors the production process starting from the initial process until the products reach the consumer. Furthermore, the Company also carefully conduct test on raw materials used based on the standard of Mandom Corporation, Japan as well as the National Agency of Drug and Food Control (BPOM).

In conjunction with the increasing awareness toward Halal products, in 2018 almost all of the Company’s products had obtained Halal certifications. The Company had also put Halal label on products with Halal certifications. By obtaining the certifications, the Company hoped to enhance the sense of security and comfort for consumer in using the Company’s products.

Meanwhile, in the effort to build good communication with the consumer, the Company also provide customer care through telephone or social media who are ready to answer every question and respond to consumer complaints. The Company hoped that through both services, consumer can feel closer with the Company and may enhance consumer trust toward the Company’s products.

 

RESPONSIBILITY TOWARD SOCIETY

The Company is committed to build business which provide benefits to every element of the society. In realizing such matter, during the year 2018 the Company had conducted and participated in several social events, among others:

  • Yokoso! Mandom

Yokoso! Mandom is a factory visit program held by the Company to build good relationship with education entities and the society. Through "Yokoso“ Mandom program which means welcome in Japanese, the Company wished to welcome community or educational institutions who would like to know the Company’s business process. In addition to factory visit, participants were also provided with grooming knowledge so that they can maintain their appearance to the fullest. During the year 2018 there were 13 institutions and communities who joined the Yokoso! Mandom program with total participants amounting to more than 1,000.

  

 

  • Job Opportunities for Local Workforces

The Company accomodates workforces around the Company’s factory through cooperation with local officials in the distribution of workforces based on the needs and skills required by the Company. During the selection process, the Company ensures there were no fees or requests for compensation in any form.

  • Quick Action Donation
With regard to natural disasters which took place in some places, the Company carried out a Quick Action Donation which also encouraged the Company’s employees to participate in the donation that is expected to help ease the burden of the victim. In 2018, the Company had carried out several Quick Action Donations for victims of earthquake and tsunami in Lombok, Palu, and Donggala.



 

RESPONSIBILITY TOWARD EMPLOYEES

In accordance with the Company’s Mission that is a human oriented company (Human to Human), the Company constantly appreciate every human resources within the Company. Therefore, the Company continuously strives to create a condusive environment and working condition, as well as fulfills employees’ rights such as health facilities, safety & security during work, and career development.

The efforts is confirmed by the Company by re-achieving WRAP (Worldwide Responsible Accredited Production) certification for the third time. By obtaining the WRAP certification, the Company confirmed to implement safe business in terms of production activities, comply with regulations regarding environment, and constantly fulfill employees’ rights.

The principles of WRAP which relate to employment are as follows:

  • No Forced Labor

As a human oriented company, the Company highly upholds its employees’ rights. Thereby in its business process, the Company will not employ its employees by force, involuntarily or trafficking. It is proven by the existence of SOP (Standard Operating Procedure) on Manpower Employment, where the Company actively communicates the ban of forced labor, mentions the ban of forced labor in the work contract signed by both parties, carries out physical checking to the employee whenever coming and going home according to the decency norm, and routinely the officer caries out the checking to ensure that there is no forced labor practice in the Company’s environment.

  • No Underage Workers

In performing its business, the Company will not hire the underage workers. It is proven by the existence of SOP on Ban of Hiring of Underage Workers, where the Company carries out age verification to its prospective employees through the data and interview, as well as communicates actively the ban on hiring of underage workers to all employees and outsourcing party.

  • Strictly Prohibit Harassment and Torture

The Company strictly prohibits harassment and torture in the Company’s environment. It is proven by the existence of SOP on Ban of Harassment and Torture, in which the Company actively communicates the ban of harassment and torture to all stakeholders, carries out periodical monitoring, and secures that every reporting on harassment and torture act will as soon as possible be followed up.

  • Providing Compensation and Benefit according to Provisions

Compensation and Benefit

The Company always does its best to provide compensation and benefit according to the determined standard. It is conducted as mentioned in the Collective Labor Agreement, already signed by the Company and Labor Union. In addition to compensation, several benefits received by the employees are among others holiday allowances and overtime as well as health and social security guarantees which relate to the Social Security Administering Body (BPJS) for Health and BPJS for Employment.

Pension Fund for Employees

As the realization of the Company’s commitment in creating more prosperous future for the employee, the Company also provides Training on Pension Preparation and Pension Fund program of Employer with fixed benefit system in which starting from 2014 the Company applied fixed contribution system for the new membership. In early, the Pension Fund was established and managed by Tancho Indonesia Foundation since 1992. But in 1996 it has changed to become Pension Fund of Mandom Indonesia. Such change was made in line with the provisions in the Law No.11 of 1992 Regarding Pension Fund. Currently, the Pension Fund has 1,587 participants.

 

  • Employing Employee According to Determined Time

The Company employs its employees according to the time already determined. While for additional working hour, it has been approved by the employee by obtaining the pay increment according to the working hour, and the increase in working hour will not exceed the time limit already determined.

  • Ban of Discrimination

The Company prohibits the discrimination practice in its business activity. The Company always hires, provides salary and promotes the employee objectively without seeing SARA (Ethnic, Religion, Race, Inter-Group). Thereby the career development activity becomes the right of all employees. It is proven by the holding of career development activity applied to all employees, already adjusted to each position, thereby it is expected that the career development can be made maximally. Several trainings attended by the employees in 2018 are among others:

No.Training
1 Careerpath & Succession Planning
2 Communication Branding & Digital Media
3 The 29th Asean Cosmetic Committee
4 Professional Coach Certification Program
5 Management Risk for Pension Fund
6 Risk Assesment
7 Ergonomic Occupational Health and Safety (OHS)
8 Safety Riding
9 HPE Hybrid IT Summit 2018
10 Color & Fragrance Development

 

In addition, for new employees, the Company also provides a new employee orientation program with objective in order that the employees are able to identify his right as employee, and understand the Company’s business entirely.

  • Always take into account Occupational Health, Security and Safety

The Company always does its best to take into account its employees including in case of occupational health, security and safety materialized by the Company through various activities, among others:

Medical Check-Up

In maintaining the employees’ health, the Company regularly provides medical check-up and health seminar for all employees. It is expected that, by conducting such activity, employees are able to control and prevent several diseases arising as the consequence of unhealthy life style such as cholesterol risk and heart disease. In addition, the Company also provides clinic for the employees suffering from sickness or requires first aid when in the Company’s environment.

Pink Walk

Welcoming the Breast Cancer month awareness, in October 2018, the Company participated in Pink Walk event held by Yayasan Daya Dara Indonesia (Lovepink). In this event, the Company also encouraged employees to actively participate to be Pink Warriors, that is a breast cancer awareness agent by sharing knowledge regarding the importance of breast cancer early detection to family and friends.

 

Breastfeeding Corner

The Company also takes part in supporting exclusive breastfeeding by providing breastfeeding Corner for the breastfeeding female employees.

Applying Occupational Health and Safety (SMK3) Management System

Occupational safety is the Company’s priority as manufacturing company. Therefore, in order to realize occupational health and safety, the Company had applied Occupational Health and Safety (SMK3) Management System. This application is the Company’s commitment to the quality, occupational health and safety as well as environment for all managements, employees and community. To support such application, the Company routinely involves the employee and provides several trainings among others, fire evacuation drill until trainings related to occupational health and safety (K3). As of the end of 2018, total employees holding certification of K3 experts were 591 persons.

The Company also regularly conducts inspection of facilities in supporting Occupational Health and Safety (K3) through the Company’s K3 team. In addition, the awareness on the importance of K3 is constantly built by the Company through placement of posters in the Company’s office and factories, internal media “Halo Mandom”, as well as several socialization and education activities conducted regularly every year. The Company also produced safety induction video which must be aired before any events/activities are conducted within the Company’s area.

Besides, the Company also evaluates Occupational Health and Safety programs which already performed through continuous monitoring of work accident rate. This effort is aiming to prevent any work accidents. Therefore, the Company had targeted to achieve zero accident during 2018. As of the end of 2018, there were 13 work accidents occurred in the Company’s area but none were fatal or caused casualties.

 

  • Respecting Freedom of Employee in Union & Bargaining

The Company respects its employees’ rights to implement their valid rights, which is to negotiate jointly. It is proven by the existence of the Labor Union that always be involved in the preparation of Collective Labor Agreement.

 

The Company upholds the rights of every employee. Mechanism of complaints regarding employment issues is regulated in Collective Labor Agreement (PKB) which regularly reviewed every 2 (two) years and distributed to all employees of the Company. In addition, through whistleblowing mechanism, employees may submit complaints/reports to direct superiors whereby if the issues are unresolved, employees may report to labor union and conduct consultation involving mediator of Pancasila Industrial Relations or industrial relations trial based on the prevailing regulations.

 

GOOD CORPORATE GOVERNANCE

Business must hold a commitment for sustainability. In terms of environment, people or managing the company sustainably. The later is accomplished by implementing principles of good corporate governance which may ensure a sustainable growth of the Company.

Transparency, accountability, responsibility, independency, and fairness, altogether aiming to manage the company in a professional way and leaving no room for a biased decision-making process. As a listed company, the importance of realizing good corporate governance is mandatory in order to maintain shareholders’ confidence toward the company.

 

 

Creating Regulations to Achieve Sustainable Business Growth

Managing the Company in sustainable manner may only be achieved through supports from the people within the company that is the employees. Therefore, the Company is committed to conduct sustainable improvement internally to ensure that the commitment toward sustainability is implemented wholeheartedly through several actions among others formulating regulation on anti corruption, gratification, and fraud as well as preparing the whistleblowing system. Besides, the Company also enforced internal education through communication channel such as internal media “Halo Mandom” regarding the Company’s mission and values, code of conduct and risk management system. The Company is committed to continuously improve corporate governance, therefore the Company is able to realize a sustainable growth.

The Company is committed to constantly enhance concern toward the employees, in terms of occupational health, security, and safety to career development from time to time. It is expected that these efforts may reduce the employee turn over rate which in 2018 was recorded at 7.8%.

While total costs incurred by the Company for social responsibility activity along 2018 were amounting to Rp 3.3 billion with breakdown as follows:

  • Employment    : Rp 2,7 billion
  • Environment    : Rp 630 million