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SOCIAL RESPONSIBILITY AND SUSTAINABILITY

A sustainable business is a business committed to provide values in long term whereby activities constantly consider economy, social, and environment values in the preparation of business policies and strategies. Within the Company’s extent, sustainable business is closely related to the implementation of good corporate governance.

For the Company, sustainable business embedded in the spirit of ”Oyakudachi“ as one of the Company’s philosophy which means the spirit of dedication to service. In addition, commitment to sustainable business also contained in the Company’s code of conduct which serves as a code of conduct for the Company’s management and employees. Thus, social responsibility and sustainability become one of the Company’s focus in realizing a sustainable business.

In order to realize the said objectives, the Company divided the efforts in four pillars as the key to achieve sustainable development in the society namely Economy, People, Environment, and Good Corporate Governance.

ECONOMY

Economy problem is among conditions that is often encountered in daily life. Human life revolves around things related to economy and the fulfillment of daily needs. Unfortunately, those with enough income still face economy problems due to the lack of ability in managing their finances. This made income earned is considered always less than enough to fulfill daily needs every month.

This lack of ability is basically due to the limited knowledge on things related to financial management. Based on the National Survey of Financial Literacy (SNLIK) year 2019 held by Financial Services Authority (OJK), Indonesia financial literacy index in 2019 increased to 38.03% from 29.7% in 2016. This signifies that in the past three years financial literacy of the societ had increased by 8.33%. Nonetheless, there are many efforts need to be carried out to ensure financial literacy in the society is evenly distributed.

Therefore, the Company considers that education on financial literacy is an important part in the efforts to increase the welfare of the society, which in this case includes the Company’s employees. In the National Strategy of Indonesia Financial Literacy published by OJK, it is explained that prudent financial attitude and behavior is reflected in someone’s ability in determining financial goals, preparing financial plan, financial management and able to make quality financial decision in utilizing financial products and services. In line with this matter, since 2017 the Company has been actively carried out education internally regarding financial literacy to encourage financial freedom through articles in internal media as well as workshops in cooperation with third parties. Financial freedom means being able to make big life decisions without worrying about financial matters. This is enabled through income management, knowing where the money come and go, and not only saving but also investing.

Next, information sharing and workshop regarding financial literacy will be the Company’s main focus in the field of economy.

 

PEOPLE

Responsibility Toward Consumer

Consumer holds important position in the Company’s business. Therefore, in realizing the social responsibility toward consumer, the Company is committed to create the best products which constantly bring wonder and inspiration to consumer. To achieve the said condition, the Company strictly conducts monitoring on production process from the initial process to the stage where the products already reached the consumer. In addition, the Company also carefully conducts test on raw material used to comply with the standard of Mandom Corporation and Food and Drug Monitoring Agency (BPOM).

Besides that, since 2018, almost all of the Company’s products already received Halal certification. This was conducted in line with the increasing awareness of the society regarding Halal products. In order to maintain consumer trust regarding the said matter, the Company already put Halal label for Halal certified products. Through the achievement of the said certification, it is expected to increase feeling of security and comfort for consumer in using the Company’s products.

In terms of maintaining consumer confidence toward the Company’s products, the Company constantly strive to establish good communication with consumer through the provision of customer care service through telephone or social media who are ready to answer every question and respond to consumer complaint. The Company expected that through both services, consumer can feel closer to the Company and can enhance consumer trust toward the Company’s products.

 

Responsibility Toward Society

The Company constantly strive to build a business which may provide benefits to every element in the society. Therefore, several programs were made by the Company focusing on the society. In realizing the said condition, throughout 2019 the Company had carried out and participated in several social activities, among others:

  • Yokoso! Mandom

Yokoso! Mandom is an educational program in the form of factory visit held by the Company as an effort to establish good relationship with the education institutions and society in general. Through Yokoso! Mandom which means welcome in Japanese, the Company welcome communities and education institutions who would like to further understand the Company’s business process. Besides factory visit, participants were also provided with grooming knowledge to help them in maintaining their performances. Throughout 2019 there were 14 institutions and communities participated in Yokoso! Mandom with total number of participants reaching more than 1,100 persons.

  

 

  • 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.

  • SABMID

Starting in 2019 the Company has new program that is SABMID or Donation of Praying Tools from Mandom Indonesia. As an initial effort, in 2019 the Company had distributed 125 praying tools to several foundations around the Company’s area.

 

Responsibility Toward Employees

The Company has a mission that is a human oriented company (Human to Human). Therefore, the Company continuously value every human resouces within the Company because they are among the supporting factors in the Company’s efforts to constantly growing and evolving. Thus, the Company always strive to create a condusive working environment and fulfilling employees‘ rights such as health facility, occupational health & safety, to career development.

This commitment of the Company is reflected in the WRAP (Worldwide Responsible Accredited Production) certification which was obtained by the Company since 2014. WRAP is a non profit independent organization who is dedicated in promoting and conducting certification on lawful manufacturing activities, humane, and ethical in a worldwide basis. The achievement of WRAP certification by the Company signifies that the Company had carried out safe business activities in terms of production process, comply with the laws and regulations regarding environment, and constantly fulfill the employees’ rights

WRAP principles regarding 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.

  • Provide 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.

 

  • Employinh 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 regulation on the calculation of overtime based on the prevailing laws and regulations and the increase in working hour will not exceed the time limit already determined.

  • Ban on 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. In 2019, the Company had facilitated internal and external trainings with total 236 trainings and 1,783 training hours. Several trainings attended by the employees in 2019 are:

No.Pelaihan/Training
1 The 31th ASEAN Cosmetics Commitee (ACC)/The 31th ASEAN Cosmetics Committee (ACC)
2 Workshop New Product Development/New Product Development Workshop
3 ASEAN Marketing Summit/ASEAN Marketing Summit
4 Knowledge Management Certification/Knowledge Management Certification
5 Safety Assessment of Cosmetics/Safety Assessment of Cosmetics
6 Training Eco-Friendly Packaging/Eco-Friendly Packaging Training
7 Fragrance Training/Fragrance Training
8 ASEAN Safety Assessment Workshop/ASEAN Safety Assessment Workshop
9 Manajemen Aset/Asset Management
10 Training For Trainers/Training For Trainers

 

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 the 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 the efforts to maintain the employees’ health, the Company regularly holds medical check-up and health seminar for all employees which aimed to increase knowledge for better control and prevention on several illness which occurred due to unhealthy lifestyle such as cholesterol and heart disease. In addition, the Company also provides 24 hours clinic in the Company’s area for employees suffering from sickness or requiring first aid during activities in the Company’s area.

Pink Walk

Majority of the Company’s employees are women whereby one of the most common illness suffered by women is breast cancer. Yet with early detection, breast cancer patient can fully recover. Therefore, the Company regularly participates in breast cancer awareness month that is in October, through Pink Walk activity held by Yayasan Daya Dara Indonesia (Lovepink). The socialization on early detection through SADARI (breast self examination), SADANIS (breast clinical examination), and counseling for women with breast cancer are among the focus activities of Yayasan Daya Dara Indonesia (Lovepink).

 

In the Pink Walk event held on October 2019, the Company together with the employees produced encouraging quotes for breast cancer survivors and actively involved being Pink Warriors, a breast cancer awareness agent who shall share the knowledge on the importance of early detection to related families and friends.

Breastfeeding Corner

The Company also takes part in supporting exclusive breastfeeding by providing Breastfeeding Corner for the breastfeeding female employees. Every female employee has the right to utilize the facility anytime during office hours.

Implementation of Occupational Health and Safety (OHS) Management System

For the Company, safety is the Company’s priority as a manufacturing company. Thus, in order to realize the occupational health and safety, the Company had implemented Occupational Health and Safety (OHS) Management System. The implementation is part of the Company’s commitment toward occupational quality, safety and health as well as environment for all management, employees and society. In order to support the said implementation, the Company regularly involves employees and conducts several trainings namely fire drill and trainings related to occupational health and safety. As of the end of 2019, total number of employees who already taken certification on Occupational Health and Safety (OHS) experts are 599 persons.

The Company also regularly carries out facilities inspection to support OHS through the Company’s OHS team. Besides that, awareness on the importance of OHS is constantly instilled by the Company through placement of posters in the Company’s office and factories area, internal media “Halo Mandom”, as well as through several socialization and education activities carried out regularly every year. The Company also has safety induction video which must be aired before any events/activities conducted in the Company’s area.

The Company also regularly carries out facilities inspection to support OHS through the Company’s OHS team. Besides that, awareness on the importance of OHS is constantly instilled by the Company through placement of posters in the Company’s office and factories area, internal media “Halo Mandom”, as well as through several socialization and education activities carried out regularly every year. The Company also has safety induction video which must be aired before any events/activities conducted in the Company’s area.

In addition, the Company also performed evaluation on OHS program through continuous monitoring on work accident rate. This effort is aimed for avoiding work accident. Thus the Company sets target of zero accident in 2019. As of the end of 2019, a number of 11 accidents took place in the Company’s area but none were fatal or causing any casualties.

 

  • Respect on the Freedom of Employees 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.

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 turnover rate which in 2019 was recorded at 4.14%.

 

ENVIRONMENT

The Company understands that manufacturing activities produce industrial wastes which may be harmful for the environment. Product packaging piling up creating mountains of garbage which are difficult to decompose. Therefore, in doing business, the Company is committed to create business growth which in line with improvement of the environment quality. Hence, environment friendly business is realized by the Company through:

  • Commitment on Waste Management and Control

The Company is constantly committed to minimize negative impact from the waste generated. This is realized by the Company through waste management installation so that waste generated is safe for 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.

In terms of minimizing negative impact of waste generated by the Head Office to the environment, in 2019 the Company started cooperation with third party that is Waste4Change for waste management. Through the said cooperation, waste generated from activities in Head Office will be managed fully by Waste4Change until leaving no negative impact to the environment. Thus the Company began to carry out internal education regarding waste sorting and to dispose waste according to the category. Through this good routine, the third party can carry out waste management based on the usage of each waste category. This is due to the sorted wastes can be utilized or processed by Waste4Change so that the said wastes can be zero waste. As an initial effort, in 2019 we started to implement this commitment in Head Office and in the future it is expected to be implemented throughout the Company area.

In terms of the Company’s file management in particular for unused files, the Company cooperated with IndoArsip in destroying the Company’s files which then will be recycled to be new products that are useful.

  • Commitment in 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.

  • Commitment in Creating Environmentally Friendly Products

The Company is committed to continuously provide beneficial and quality products yet possess good synergy with the environment. Hence, in terms of product development, the Company constantly implement environment friendly aspects among others through 3R policy that is Reduce, Reuse and Recycle without minimizing consumer satisfaction in terms of quality, function and design. This is realized by the Company through provision of refill products such as for PIXY Make It Glow Dewy Cushion, Miratone Hair Color in sachet and others. Through refill and sachet of several products, it is expected to reduce the use of plastic in a product. In addition, the Company currently changes several raw materials to environment friendly materials. This is a form of the Company’s commitment in reducing negative impact to the environment.

  • Commitment in Creating Environmentally Friendly Products

The Company is committed to continuously provide beneficial and quality products yet possess good synergy with the environment. Hence, in terms of product development, the Company constantly implement environment friendly aspects among others through 3R policy that is Reduce, Reuse and Recycle without minimizing consumer satisfaction in terms of quality, function and design. This is realized by the Company through provision of refill products such as for PIXY Make It Glow Dewy Cushion, Miratone Hair Color in sachet and others. Through refill and sachet of several products, it is expected to reduce the use of plastic in a product. In addition, the Company currently changes several raw materials to environment friendly materials. This is a form of the Company’s commitment in reducing negative impact to the environment.

  • Mechanism of Complaints on Environment 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.

GOOD CORPORATE GOVERNANCE

For the Company, must be committed with sustainable efforts in all aspects. In terms of environment, people or sustainable management of a company. The later can be realized through implementation of good corporate governance principles 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 Suistanable 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. In addition, 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 internal regulations in order to build mutual understanding of the employees in terms of compliance. The Company is committed to continuously improve corporate governance so that the Company is able to realize a sustainable growth.

While total costs incurred by the Company for social responsibility activity in 2019 were amounting to Rp 3.3 billion with breakdown as follows:

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