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Weaknesses and Recommendation

The document identifies several weaknesses in Sime Darby Berhad's corporate governance, CSR management, procurement policies, product responsibility, and community employment. It recommends that Sime Darby disclose any non-compliance with laws, have its CSR reporting audited by a third party, establish procurement policies, provide product responsibility statements, and clearly report the number of local workers employed to strengthen transparency and accountability.

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Edison Yap Suen Chee
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2K views

Weaknesses and Recommendation

The document identifies several weaknesses in Sime Darby Berhad's corporate governance, CSR management, procurement policies, product responsibility, and community employment. It recommends that Sime Darby disclose any non-compliance with laws, have its CSR reporting audited by a third party, establish procurement policies, provide product responsibility statements, and clearly report the number of local workers employed to strengthen transparency and accountability.

Uploaded by

Edison Yap Suen Chee
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Weaknesses and Recommendation Marketplace 1.

Corporate Governance Disclosure of non-compliance with laws/legislation/listing requirement Weakness: There is no disclosure of any information about non-compliance with laws/legislation/listing requirement in Sime Darby Berhads annual report. Thus, we do not know that whether they had compliance with the best practice required or they did not follow the laws/legislation/listing requirement and purposely ignore the necessary to disclose. Recommendation: A Statement of Compliance with respect to the Best Practice where all the listed company is required to identify and explain any non-compliance area of law,legislation and listing requirementshould be prepared by Sime Darby Berhadin their annual report.

2. CSR Management Third party report audit/review Weakness:There is no third party audit for the CSR reporting of Sime Darby Berhad. This may decrease the reliability of the CSR reporting of Sime Darby Berhad. Recommendation: CSR reporting of Sime Darby Berhad should be audited by third party to make sure the CSR is follow the requirement of Bursa Malaysia and increase the reliability of their CSR report. Procurement Policies Weakness:SD does not state any procurement policies in the annual report. Recommendation: SDshould set up a procurement policy in order to ensure that suppliers, equipment, construction and services are obtained efficiently and economically and in compliance with applicable federal law and executive orders. Besides that, they also should

state clearly about leverage on large scale purchase of agrochemicals, petroleum products, tools and machinery via centralised procurement effort. Product Responsibility Weakness: SD did not state clearly in annual report about their product responsibility such as the product quality, material used and production. Recommendation: SD has the responsibility to report its product responsibility to their shareholders, consumers and other relevant parties. Therefore, SD should provide a statement of product responsibility in the annual report.

1. Employment of local workforce Weakness: The Company does not mention the actual amount of local workers they hired and they do not perform any activity to attract more local workforce. Recommendation: SD can organise some activity such as open booth at career fair to give knowledge for local people to know their companys operation, benefits, wages and so on that they offer to their employee. This can encourage more local people work for them. Besides that, employed local workforce can boost up the economic and increase the livelihood of community. Moreover, SD should clearly state the amount of local workers they employed in the annual report. This will be easier for auditors to trace the number of overall employees working for the company. Community 1. Employment of local workforce Weakness: The Company does not mention the actual amount of local workers they hired and they do not perform any activity to attract more local workforce. Recommendation: SD can organise some activity such as open booth at career fair to give knowledge for local people to know their companys operation, benefits, wages and so on that they offer to their employee. This can encourage more local people work for them. Besides that, employed local workforce can boost up the economic and increase the livelihood of community. Moreover, SD should clearly state the amount of local workers they employed in the annual report. This will be easier for auditors to trace the number of overall employees working for the company.

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