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Sustainability
Sustainability
CSR
With the commitment in growing its business steadily and sustainably, MC GROUP has set directions and formulated policies that focus on good corporate governance, corporate responsibility towards society and environment as well as fair treatments to all stakeholders. MC GROUP is also obliged to manage its businesses in compliance with laws and regulations.

Sustainable Development Initiatives

MC GROUP realised the importance of disclosure of information and rigorously comply with sustainable development guidelines and practices. The disclose of information will be beneficial to all stakeholders as they are fully informed of MC GROUP’s activities regarding social responsibility and sustainable development.

For the past year, the Company still put an emphasis on the importance of all stakeholders’ roles from shareholders, employees, customers, partners, competitors, creditors to society and environment and acted upon the policies and the procedures of sustainable development as follow:

1) Fair business conduct

The Company has policies to treat stakeholders ethically, transparently and under fair competition according to international rules and other relevant laws relating to trade competition regulations. These standards aim to prevent market monopoly, unfair market manipulation, bribery, market mechanism distortion and illegal access to competitors’ information. The Company also commits not to discredit and/or damage its competitors in any unethical ways, such as paying bribes to its competitor’s employees or accusing its competitors illegitimately.

The Company has conducted its business with ethics, transparency and credibility with a focus on building the business to attain sustainable stability in order to maximise its share values and be able to distribute dividends regularly. The Company has always intended to build good relationships with business partners, to have fair sourcing and procurement with no barrier of trades or limit to competition and also act according to the frame of fair business competition, contracts, code of conduct and promises given to customers with the concern of mutual benefits. The Company has a policy to deliver quality products within acceptable timeframes. Additionally, the Company is against any infringement of intellectual property rights and has put in place regular inspections for copyrighted products such as computer software or trademarks of others.

2) Anti-Corruption

The Company places great importance on the prevention of all kinds of corruption and aims to build organisation cultures based on honesty and righteousness. Right conscience and attitude are encouraged among its executives and employees in performing their duties under rules and regulations with honesty.

The Company has announced anti-corruption policy and guidelines for giving or accepting financial assistance, gifts, receptions or donations for charity or public interests including no gift policy during festive season to prohibit executives or employees from activities or actions with potential conflict of interest either directly or indirectly. The employees must refrain from offering or accepting gifts or benefits from any party relating to business that leads to actions or inactions harmful to the Company. The Company ensures strict compliance to prevent corruptions. To affirm the Company’s anti-corruption intention, the Company signed a joint declaration with the “Thai Private Sector’s Collective Action Coalition for Anti-Corruptions” and issued publications promoting anti-corruption policies to educate and inform its employees and business partners to conform to the policies.

In addition, the Company included Code of Conduct and Anti-Corruption in its new employees’ orientation every month as well as published articles relating to good corporate governance and anti-corruption in MC Society, the Company’s magazine issued every 2 months. This is to ensure the strict compliance to the stated policies of the employees.

Moreover, the Board of Directors has reviewed and amended the Company’s Code of Conduct in 2015 to be consistent with current business operations. Several topics were added in order to cover more related matters. The new Code of Conducts was announced on 12 July 2015 where penal provisions for the violation of the Code of Conduct were supplemented. In addition, the Company included Business Ethics and Anti-Corruption in its new employees’ orientation every month as well as published articles relating to good corporate governance and anti-corruption in MC Society, the Company’s magazine issued every 2 months. This is to ensure the strict compliance to the stated policies of the employees.

Furthermore, the Company put in place policies and channels for complaints for all stakeholders to inquire information, file complaints, submit comments/clues on illegal activities, accuracy of financial statements, shortfalls of internal control or other misconducts of the Company to the Chairman of the Audit Committee. The channels are as follow:

E-mail : auditcommittee@mcgroupnet.com
Mail : To Chairman of Audit Committee, MC GROUP PLC.
448,450 On Nut Road, Prawet, Prawet, Bangkok 10250

The complaints will be kept confidential and there are measures to protect whistleblowers to make sure that they will not be affected from giving or exposing information of any illegal activity directly or indirectly.

3) Respect for Human Rights

The Company strictly conforms to laws and principles relating to human rights by setting a code of conduct to ensure that its employees work and treat one another equally and fairly with respect to personal rights and without discrimination by race, religion, gender and social or political status, to be in compliance with standard practices relating to human rights. The Company has determined not to support or promote any businesses that violate human rights. The Company also respects individual privacy of their employees and personal information such as salary, medical history or family data are kept strictly confidential not to disclose to outside or unrelated parties with the exception of that information disclosure is required by law.

The Company hired disabled employees and assigned them to suitable positions to promote equality, diversity and non-discrimination in the organization as well as offer occupations for people with disability.

The Company has acted equally to all stakeholders and carefully monitored the business to ensure it is not involved in any violation of human rights. Moreover, there are channels for complaints for those who are treated unfairly as well as protection measures for whistleblowers. These channels are in harmony with corporate governance principles Section 3 on the corporate governance in Section 3 on Roles of stakeholders.

4) Equitable Treatment of Employees

The Company truly believes that its employees are the key stakeholders and are the most valuable assets that will help bring success to the Company. Thus, the Company is determined to ensure that every employee is fairly treated in terms of compensation and benefits, skill development and work safety The Company established an Environment, Health and Safety working unit as a central unit dedicated yo monitor all units of the group of companies of any matter relating to safety, environment and health as well as suggest solutions to issues or problems; for example, chemicals management in production process and integrated waste management.

Compensation and Benefits

The Company treats employees equally and fairly by providing fair and reasonable remunerations and benefits that match their knowledge, capability, responsibility and individual performances. Compensations and benefits offered are greater than as required by law. Provident funds, group health insurance, annual health check-up, 5S activity, safe working environment, educational scholarships for employees’ children are provided to employees. The Company also participated in a pilot organization development project on preterm labor prevention for pregnant employees. These compensations and benefits are rewarded based on the Company’s performance and performance of individual employee as well as competitiveness with others related industries. Additionally, the Company pays variable bonuses to employees when profit targets are met.

Quality of Life and Work Safety

With regard to work safety, the Company stipulated policies and other related welfare management to all employees in compliance with the laws and human rights relating to safety, hygiene and working conditions. The Company also urged its staff to set standards for operational excellence. Risks are identified, analyzed and mitigated in all processes and proper protections were put in place so each factory can easily implement these safety procedures. Furthermore, Occupational Safety, Health and Environment Committee, Safety Officer in Professional Level including Safety Officer in Management Level and Safety Officer in Supervising Level were set up to regularly train the employees on work safety. Safety, hygiene and work condition procedures were strictly implemented in accordance with standards.

The Company takes safety in life and property of its employees seriously as evidenced from its safety alarms in the buildings, fireman team for each factory purchase of fire gears, and its safety training such as an regular fire drills with proper plans and formats using codes. These procedures are in accordance with safety and environmental standards and other related regulations under new laws. Furthermore, safety trainings are regularly conducted internally such as environment, health and safety and working condition for employees course, basic firefighting training and fire drill as well as through external agencies; for example, an academic seminar “Eco Innovation and Solution 2016”, earthquake and fire preparedness for big, tall or residential buildings in Bangkok course and National Safety Day training.

Moreover, other safety and hygiene measures were implemented such as water quality test, condition improvement for male and female toilets to be more hygienic and suitable for use, Factory 1 emergency light replacement in order that all employees are safe and healthy according to standards.

The Company takes safety in life and property of its employees seriously as evidenced from its safety alarms in the buildings, fireman team for each factory and purchase of fire gears, including its safety training such as an annual fire drill with proper plans and formats. These procedures are in accordance with safety and environmental standards and other related regulations under new laws. Furthermore, safety trainings are regularly conducted such as chemical use safety course, environment, health and safety and working condition for employees course, and general knowledge on crimes.

Quality of Life

The Company ensures that its employees are healthy physically, mentally and socially. The Company provides full-time nurses on site to safeguard employees’ physical and mental health in compliance with the laws. Health check-up for all employees is also organized annually. The Company makes sure that employees work in good and safe working conditions without threats from sickness, injuries or any disease, causing them to work efficiently and live happily.

Human Resource Development

The Company is determined to ensure that every employee is well developed by enhancing their skills and knowledge to achieve higher efficiency and effectiveness at work. The Company initiated MC Academy aiming to equip its employees with skills and knowledge necessary to perform their jobs to attain set objectives and goals. In addition, executives and employees are encouraged to adopt the organisation’s Core Values called “Mc Way” to strengthen its organization culture as follow.

M Motivation Motivated to create best outputs for the customers
C Commitment Committed to promises made to the customers and partners under honest business conducts.
W Willingness Conduct business in all functions with strong will to deliver the best products and services
A Appreciation Appreciate and respect others as well as their works and be kind to each other both in the same department and organization wide
Y Yes-Minded Positively handle all kinds of issues and be ready to tackle the problems under any circumstance and believe that there is a solution for every problem

The Company is determined to ensure that every employee is well developed by enhancing their skills and knowledge to achieve higher efficiency and effectiveness at work. MC Academy stresses on human capital development covering employees of all levels. For instance, career path and promotion plan were arranged for salesforce in particular to enhance their competencies to be competitive with leading companies and aligned with business growth and requirements to enhance competitive advantage at present and in the future.

The company emphasize on employee’s potential and capability development seriously and continuously. In 2016, the company supported employees in developing their working skill through 90 training courses or 2,687 training hours per year approximately.

In addition to the above, the Company encourages employees to participate and voice their opinions in the annual Employee Opinion Survey (EOS) conducted in 2016 so that the information received and the results will be used for future improvements to become a “happy workplace”. Also, the survey led to recommendations and improvements on employee’s welfare and benefits. The Company supported the set-up of Employees’ Welfare Committee (EWC) where elected employees represent all employees in welfare matters in accordance to the Labor Protection Law BE2541.

5) Responsibilities to Consumers

The Company considers responsibility to customers as its priority and aims to create values and grow with its customers.Gaining customers’ trust is crucial to the Company’s success. Thus, customers must be treated with sincerity and politeness as well as an intention to serve them more efficiently. The Company has the following policies for treating its customers:

  1. Manufacture, design and deliver quality products that pass quality assurance and meet standards as promised to customers at reasonable prices.
  2. Provides correct, sufficient, and timely information to its customers regarding the Company’s products.
  3. Strictly conform to conditions/agreements made to customers. In case that a condition cannot be fulfilled, customers must be notified promptly to seek mutual solutions.
  4. Treat customers politely and be reliable for the customers.
  5. Ensure safe customer information management system including sufficient confidentiality measures. Do not disclose customer information without their consent and do not use customer information to wrongfully seek personal benefits or the benefits of related others.
  6. Warranty products under appropriate time condition and comply with Consumer Protection Act.
  7. Establish systems/processes for customers to send complaints regarding quality, quantity and safety of products and services and ensure speed in complaint management in order to resolve the issues for the customers.
  8. Initiate and promote activities relating to social responsibility for customers.
  9. Promote environmentally-friendly product development, packaging and logistics.
  10. Provide channels to disseminate information regarding products and product development for customers on a regular basis.

In 2016, products under Mc Jeans brand were given “Premium Products of Thailand” award from Thai Industrial Standards Institute (TISI), Ministry of Industry. This is good evidence on the Company’s focus on quality of products that gain trusts among consumers.

6) Environmental Conservation

The Company and its subsidiaries are committed to conserving the environment. Policies and measures are in place to solve any production problems that may harm the environment and assist environmental management. Continuous efforts were put to mitigate environmental impacts. The Company has put emphasis on its care for the environment in every step of its activities starting from procuring environmentally-friendly raw materials, reducing and managing wastes from its manufacturing, cutting energy consumption, managing wastes to recycling and reusing of used materials/residues. The social and environmental responsibilities are considered as an important mission in conducting business and included in its good corporate governance policies. Furthermore, the Company does not just only consider monetary interests of its new projects but also concerns safety and environment issues. EHS working unit participates since the inceptions of those projects to give advices and voice concerns relating to environmental preservation and safety.

Subsidiaries such as P.K. Garment (Import-Export) Co., Ltd and MC Jeans Manufacturing Co., Ltd also paid careful attention to conserving the environment through ongoing examinations of environmental risks incurred from production such as wastewater from dying and dust from color sprays. These are procedures and processes that the Company strictly follows and to control and manage environmental impacts of its business activities:

1. Environmental Management

1.1 Protection and monitoring

1.1.1 Air quality and working environment

The Company uses natural gas (LPG) to replace fuel oil in order to reduce the impact on the environment from air pollutants such as sulfur dioxide (SOx), nitrogen oxide (NOx) and carbon monoxide (COx). There are measures on environmental quality monitoring before releasing outside of factories as well as workplace environment monitoring such as air quality in the workplace (including total suspended particulate, chlorine, hydrogen peroxide, acetic acid and dust particles less than 10 micron), noise pollution, brightness and temperatures in workplace. All need to pass the standard regulations according to the laws.

1.1.2 Water quality

SBR Wastewater treatment system is operated to treat biological wastewater with the monthly monitoring activity of wastewater to meet the standards as regulated by the law.

1.2 Efficient resources management

1.2.1 Industrial waste management

A sorting waste procedure is in place to separate industrial waste to its category and systematically store before distribution to authorized waste disposal agents from the Department of Industrial Works to proceed with the required landfill or treatment.

1.2.2 Chemical management

Chemical products from dying are categorized and updated on Safety Data Sheets (SDS) to divide into each level of danger according to guidelines from the Department of Industrial Works and the National Fire Protection Association (NFPA). The Company follows the standards of chemical storage with the control of authorized persons set out by the Department of Industrial Works.

2. Employee education

The Company continually supports the education of employees on the matters by assigning them to seminars and trainings organized by related agencies. Examples include safe handling of hazardous materials for specific personnel course, the regulation of dangerous substances and environmental labeling in textile products course, the wastewater treatment for regular workers course and a course for regular operators in wastewater treatment.

Since the commencement of its operations, all factories run by the Company’s subsidiaries have not had any disputes or lawsuits relating to the environment. They have also not received any complaints from government departments regarding their compliance with environment-related regulations such as the Factory Act B.E. 2535 and the Enhancement and Conservation of National

Besides the mentioned initiatives, in 2016 the Company started the following environmental programs

Material Utilization Project

In current times of intense economic and trade competition, companies are pressured to come up with effective strategies to continuously improve and develop in order to survive while customer satisfaction in price, quality and delivery must still be maintained.

Regarding our factory operations, apart from constantly adopting new technology to increase production capacity or reduce production costs, we also reviewed current material utilization in order to promote higher efficiently in resource utilization to further reduce costs and boost profits for the Company. With a simple development concept, the following efforts were made at Mc Jeans Manufacturing.

  1. Changed pattern-marking approach (cutting marker) to allow less gap between pieces of cloth from 2mm to 0.5mm. This resulted in 1.5% saving of fabrics used.
  2. Improved fabrics-laying method by cutting edges for each layer rather than rolling their edges on another layer. This helped save 0.28% of the fabrics used.
  3. Selected similar width and colour of fabric rolls to specify proper sizes of markers that fit with the width.
  4. Adjusted patterns with acute angles to right angles to increase marking space.
  5. Collected all fabrics screened out for their defects to be made into grade B bottoms rather than selling them as fabric remnants.
  6. Specified new standard length of inseams by measuring from the middle of the crotch to the rim of the legs depending on the forms of male and female pants. Customers do not have to wait to cut the legs and this also saves fabrics used in the production. This resulted in overall cost reduction of 0.5-0.7%

Environmental Projects

  1. Improved waste management from production process of the factories for proper and environmentally-friendly treatment.
  2. Improved efficiency of compressed air system used in production process. This led to a significant electricity savings.
  3. Changed existing light bulbs to 20 watt LED bulbs in the Company’s properties both offices and factories. The replacement was already completed at Factory 1 and it led to some electricity saving.
  4. Added green spaces as appropriate by planting more trees in all properties of the Company.
  5. Prepared plan and budget to improve pollution control from spraying activity in bleaching and dyeing facility to be more efficient. The plan will be implemented in February 2017.
7) Community and Social Development

Through its clear vision and mission, the Company is committed to doing business successfully by satisfying all stakeholders alongside with fostering corporate social responsibility. The Company regards the responsibilities for community and society and as its key mission and relentlessly initiate projects and activities that help develop the communities and the society.

In 2016 the Company continued to contribute\ to communities and the society through various projects and was acclaimed from related government agencies as a good example in developing the society and the country or so-called civil state.

MC Sewing Training for Occupation Development

With its experience of 5 decades in the business and its potentials in continuous business development both in production technology and human resources management, the Company is dedicated to pass on its knowledge and experience in sewing to communities and the society. Therefore, Mc Sewing Training for Occupation Development was initiated to honor that endeavor. The main objective of the project is to offer an opportunity for residents in the communities close to the Company to participate in the project. The program educates and trains people who are interested to be able to earn their livings and take care of their families. Moreover, this can be considered an opportunity for participants in joining the Company in the future.

Mc Sewing Training for Occupation Development accepted applications from nearby people in Prawet district and other interested people to join the training every Saturday from 09.00-16.00 hrs. for a period of 3 months. The training curriculum consisted of theoretical sessions covering basic knowledge on fabrics and sewing techniques, basic knowledge of sewing machine maintenance and other related knowledge as well as practical sessions that allowed participants to sew.

In 2016, the Company received a good collaboration from Community Development and Social Welfares Department of Prawet District, Bangkok and 2 communities near the Company’s properties and successfully completed the project and satisfactorily met all objectives. There 2 c projects are Mc Sewing Training for Occupation Development #2 with Khlong Paklak Wattana community in Dokmai, Prawet District, Bangkok from 30 April 2016-18 June 2016 and Mc Sewing Training for Occupation Development #3 with Kwan Riam Sewing Group, Prawet District, Bangkok (a National 5-Star OTOP product community) from 23 July 2016-17 September 2016.

From the assessment of Mc Sewing Training for Occupation Development #2 and #3 mentioned, the programs showed a satisfactory result as the knowledge and experience gained are practical and useful to the people. The participants can apply the knowledge in sewing and fixing clothes in their everyday lives as well as generate additional income to help their families. Moreover, there were a number of organizations that were interested and requested collaboration from the Company to run the program for other communities.

Mc Smart Project # 2

Mc Smart Project #2 was organized during August 2016 – March 2017, following the first project initiated in 2015 to celebrate the 40th year of Mc Jeans. For this initiative, Mc Group Public Company Limited and Thailand Institute of Innovation and Trade Value Creation Promotion (formerly Thailand Institute of Design and Innovation Promotion, Department of International Trade Promotion (DITP), Ministry of Commerce share the aspiration to create practical arts, designs, or fashion items with values using jeans remnants and other waste materials from making Mc Jeans’ bottoms.

From the success of Mc Smart Project #1 which received much attention and good participation from students and general public to submit their works, Mc Group Public Company Limited and DITP were keen to progress on the project for the 2nd year under clear objectives as follow:

  • Motivation : To motivate people who love to design by offering opportunity or platform to showcase their creativity.
  • Creative : To develop and enhance creative skills and capabilities.
  • Social Responsibility : To foster social responsibility in environmental conservation through the use of recycled materials in creating valuable and useful works
  • Maximization : To promote the value of resource maximization in production.
  • ART : To promote the development and creation of valuable art pieces that are practical in everyday life.

Last but not least, the Company also engaged in other initiatives that promoted social responsibility as outlined below.

  • “Old Calendars, New Stories” Project to donate old desk calendars to Foundation for The Blind in Thailand under the Royal Patronage of H.M. the Queen.
  • Computer Donation for the Education of the Blind Project for Foundation for the Blind in Thailand under the Royal Patronage of H.M. the Queen.

“Mc Social Volunteer” Project to donate computers for education for Khlong Napong School, Pachuk , Muang, Uttaradit.

8) Innovation and Dissemination of Responsibility on Society, Environment, and Stakeholders

The Company upholds its commitment to developing good corporate governance to create an organization that adds value to society with the right balance between operational/financial results and its responsibility to its stakeholders including society, community, and the environment. The Company shall conform to any related laws and regulations to ensure that the rights of stakeholders are fairly reserved and protected and to encourage stakeholders to participate in creating wealth, stability, and sustainability of the Company in the long run.