The Company adheres to good corporate governance principles in managing its business by paying attention to the society and the environment and ensuring that all stakeholders are treated fairly. Compliance with the law is strictly observed in conducting business in order to attain stable and sustainable business growth.
Sustainable Development Committee formulated policies related to sustainable development as a guideline for handling sustainability management of the Company in the same direction so that directors, executives and employees at all levels can conform to in performing their duties to achieve a work culture that realizes the balance of economy, society and environment. Essential details of the policies are summarized below.
- Sustainability strategy formulation and risk management to maintain stability and sustainability of the Company.
- Fair business conduct and commitment to moral principles, ethics, laws, good corporate governance principles and the code of conduct.
- Anti-corruption for all forms of corruption, honesty and righteousness in undertaking business without any fraud and bribery.
- Respect for human rights, equal and equitable treatment of all stakeholders and no involvement in any action violating human rights.
- Fair treatment of workers, workplace safety, proper compensation and benefits, knowledge and skill development, transparent and fair performance evaluation and no child labour and illegal worker.
- Responsibility for consumers in conducting business by creating quality products under good standards to meet the needs of consumers.
- Environment conservation, environmental-friendly sourcing of raw materials and product design, efficient resource utilization, environment quality management and development and improvement of environment management systems.
- Community and society development through the Company’s activities and collaboration with government agencies, associations, business partners, civil society sector and other stakeholders in developing and supporting communities and the society.
- Business and social innovation development to create value added and growth for the Company in the long term.
Important Issues in Sustainable Development
The Company emphasizes on stipulating and prioritizing sustainable development issues by considering all issues crucial to its business conduct including other issues related to both internal and external stakeholders of the Company.
Steps in Assessing Important Issues in Sustainable Development
1. Analysis of issues that are essential to the Company
Consider and select sustainability issues that are important to its business conduct including its supply chain and consistent with the Company’s business context and covering all sustainability issues related to economy, society and environment.
2. Assessment of important issues from impacts to stakeholders.
Evaluate and prioritize importance of issues that affect stakeholders and expectations of stakeholders that the Company concerns through various activities such as opinion and complaint acceptance and satisfaction survey.
3. Assessment of level of importance.
Prioritize sustainability issues in each aspect by considering 2 factors which are probability and impact to the organization and attention level and impact to stakeholders. Approval from Sustainable Development Committee on this must be obtained.
Important Issues in Sustainable Development
Sustainable Development Initiatives
MC GROUP realized 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, debtors 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 3 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.
The Company announces and reviews its anti-corruption policy on a yearly basis including policies related to whistleblowing and complaint so that all stakeholders can inquire details, file complaints and report any misconduct, illegal behaviors, inaccuracy of financial reports, internal control problems or unethical behavior according to Corporate Governance Section 3 on roles of stakeholders. Details of complaints or whistleblowing and information of the complainants/whistleblowers will be protected and kept confidential to ensure that there will be no negative impact or damage to the whistleblower or the person giving information directly or indirectly
Thanks to its commitment to anti-corruption, the Company was certified as a member of Thailand’s Private Sector Collective Action Coalition against Corruption since 18 August 2017.
- 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 has acted equally to all stakeholders and carefully monitored the business to ensure it is not involved in any violation of human rights and support partners to operate business with non-violated of human rights as well. 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. From the past year, there was no record of any violation of human rights.
- 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 employment, compensation and benefits, skill development, quality of life and work safety. The Company established an Environment, Health and Safety working unit as a central unit dedicated to 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.
The Company set non-discrimination employment policies that offer equal opportunities to minorities like women, people with disabilities and the underprivileged without exploiting child labor or other illegal labor.
The Company strictly conforms to laws related to fair labor and support and development of quality of life of the disabled by providing various hiring opportunities to work with the Company. Furthermore, the Company also indirectly promotes employment and occupations of the disabled; for example, the aid granted to wheelchair basketball athletes of the Wheelchair Basketball Thailand as well as numerous supports to athletes with disabilities in other sports such as track and field, badminton, tennis, archery, and swimming.
In addition, the Company advocates gender equality in employment and career growth. In 2019, the proportions of men and women in our workplace are about the same and there are a significant number of female high-level executives which represent the equality in career advancement that made the glass ceiling less of an issue at Mc Group.
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.
In addition, the Company takes care of employees’ children through scholarship programs for eligible students who passed the selection process at different levels from kindergarten to higher education to lessen financial burdens of its employees, create educational opportunities and motivates students to further their studies to become the mainspring for the nation in the future.
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 by organizing monthly board meetings, 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 cares about general safety of employees for both their health and their properties as evidenced from its safety alarms in the buildings, fireman team for each factory and purchase of structural fire gear including its safety training such as an annual fire drill with proper plans and formats. These procedures are in accordance with concrete and safety and environmental standards and other related regulations under new laws. Safety trainings are regularly conducted not only internally such as courses on Safety Health and Environment course for employees, basic safety course for employee, basic Firefighting and Fire Drill but also externally through collaboration with other agencies such as Safety, Occupational Health and Working Environment Law Course, Safety Thailand to Safety Work Seminar, Workplace Fire Prevention, Ergonomic Risk Assessment for Occupational Injury, ISO 45001 and Indoor Air Quality Problems That affects the health of workers.
Moreover, other safety and hygiene measures were implemented such as Inspect the working environment regarding light, heat, noise, dust, and the quality of waste water out of the factory to comply with legal regulations, water quality test, Factory 1 emergency light replacement in order Including a work permit form, which inspects external contractors before entering the factory that all employees are safe and healthy according to standards.
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.
To ensure that employees have good quality of life outside work, the Company organised a training on basic medical care rights for its employees under collaboration with Social Security Office with the objective to raise awareness for its employees on their rights they are entitled to. Furthermore, the Company realised the importance of financial wellness of its employees as a critical factor affecting quality of life. Therefore, the Company worked together with the Government Savings Bank to offer low-interest loans to the employees. This is an option for employees to manage and restructure their debts and replace high-interest shark loans with low-interest loans. Better financial health will improve mental health and finally enhance quality of life of the employees.
Human Resource Development
The Company is determined to continuously develop its human capital through capability and skill enhancement that promotes work efficiency and effectiveness. Mc Academy was established to provide internal training for employees in addition to external training courses that the Company offers with the purpose to equip employees with knowledge, competencies and skills necessary to perform their duties to help the Company attain its defined business goals and objectives.
Mc Group earnestly stresses on talent development to enhance the capabilities of employees. As of the end of June 2019, the Company enrolled employees in 126 curriculum with accumulative hours of 7,968 hours or equivalent to 12 hours of training per employee.
In order to set and raise work standards to improve work efficiency and effectiveness, the Company added a number of PC trainers and PC supervisors to help educate and train new PCs to sufficiently address the training demand of PCs nationwide. This is in alignment with business growth and requirements which will enhance business competitiveness of the Company at present and in the future.
Additionally, the Company organized trainings for online sales for PCs to prepare for the expansion of e-commerce market which shows unwavering growth in the past years. This will allow the Company to achieve higher growth while sales channels are fortified to cash in on the expansionary trends.
Apart from e-commerce training, Mc Group realized the importance of social media and initiated a program to upskill PCs on social media under the topic “Facebook Fan Page” so that PCs are able to create and manage their own media as alternative channels to communicate with customers and promote our products directly. Last but not least, the Company collaborated with various companies that provide external learning and development programs and requested their training curriculum and subjects as useful information for interested employees who look for training courses to develop themselves and gain knowledge and skills needed to assist the Company to attain its goals.
- 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:
- Manufacture, design and deliver quality products that pass quality assurance and meet standards as promised to customers at reasonable prices.
- Provides correct, sufficient, and timely information to its customers regarding the Company’s products.
- 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.
- Treat customers politely and be reliable for the customers.
- 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.
- Warranty products under appropriate time condition and comply with Consumer Protection Act.
- 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.
- Initiate and promote activities relating to social responsibility for customers.
- Promote environmentally-friendly product development, packaging and logistics.
- Provide channels to disseminate information regarding products and product development for customers on a regular basis.
At the end of June 2018, the Company added more varieties of lifestyle products while stressed on quality, use of fabrics with special properties, modern designs and functional features perfect for everyday life and different lifestyles. “Mc Biker Denim ‘Motorcycle Series’” was inspired by car-racing outfit properties that offer the ease of wearing from combining denim made from safety-enhanced Kevlar with Spandex and T400 that promote flexibility and elasticity of the fabric. “Innerwear” was premiered as 100% cotton t-shirts designed for minimalists. “Mc Selvedge Walker” sneakers apply uniqueness of red selvedge denim to footwear by decorating with tapes. Moreover, in collaboration with the Walt Disney Thailand, the Company launched copyrighted Marvel Sport Fashion Collection with modern patterns and designs. Last but not least, Perfect Hoodie was introduced to the market as sport jackets using the reflective technique for front logos and the emboss technique for the back that allow wearers to freely mix&match with other apparels perfectly.
Furthermore, the Company expanded spaces in its branches to address higher demands of consumers. At the end of June 2018, the Company had a total of 880 locations that enable the Company to manage its products without difficulties. The Company can also introduce a variety of new products and organize sales promotion campaigns to better offer new experiences and fun to consumers leveraging on this extensive network. In order to enhance convenience for consumers in purchasing its products, the Company brushed up its online channel through mcshop.com website by improving its format and promoting new interesting features which are attractive and well-structured so that consumers can enjoy user-friendly and convenient online shopping experience.
The Company implemented a customer relationship management (CRM) system to register our customers for exclusive membership under the name “MC CLUB” with the following objectives.
- To offer new experience and fun for customers in purchasing its products.
- To better understand customers so that the Company can benefit from customer information in product development or other direct marketing campaigns.
- To provide privileges to customers such as MC Point, a points system that members can collect points for rewards, and special prices.
All customers can apply for MC CLUB membership free of charge through 2 channels either with any Mc Jeans branch or through the website http://mcclub.mcshop.com
Besides, in order to link offline and online channels together to create seamless shopping experience, the Company recently provides a delivery service “Ship to Shop” to accommodate customers who purchase products through its website mcshop.com where customers can pick up products they order online at Mc Jeans shops near them. Customers can check the products they purchase at the spot after delivery and can receive after-sales services such as size change or length adjustment instantly at respective Mc Jeans shops.
- 6) Environmental Conservation
The Company and its subsidiaries are committed to conserving the environment. Policies and measres 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 quality of wastewater disposal from factory and total suspended particulate. 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 has 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 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
The Company has wastewater treatment system and monitor for drinking water to meet the standards as regulated by the law.
1.2 Efficient resources management
For 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.
2. Employee education
The Company never overlooks the importance of sharing knowledge on environment to its employees regularly. Employees are sent to attend trainings held by different agencies such as Environmental Manager Training, Chemical Use Safety, Employee Development Program on the Assessment of Internal Energy Management, Guidelines to Water Management for Industrial Sector and How to Deal With Drug Abuse Problems at Workplace.
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
In 2017, the Company introduced light jacket hoodies to the market. This product is made from recycled plastic bottles using innovative technique to make it light as well as wind and vapor proof that enhances comfort and agility suitable for wearing. The use of fabrics from recycled plastic to make the jackets can reduce environmental impacts in a sustainable way.
Last but not least, the Company continues its initiatives in taking care of workplace environment as usual including the replacement of traditional lightbulbs with LED bulbs to save energy, reused paper project, green space for workplace project and electricity savings at lunch break project.
- 7) Participation in Community and Social Development
With well-defined vision and mission, the Company is committed to successfully undertaking its business alongside with maximizing satisfaction of all stakeholder. Therefore, the Company strictly adheres to policies related to corporate social responsibility as one of the core values and the Company continuously takes concrete actions to foster this value.
As of 30 June 2019, the Company conducted a number of major projects that help promote the development of community, the society and the nation as summarized below.
Royal Volunteer Project Under Royal Initiatives “We Do Good Deeds with Heart”
The Company supported the government policy by encouraging its executive and employees to join the Royal Volunteer Project Under Royal Initiatives “We Do Good Deeds with Heart” in August 2018. This is to foster socially-responsible mindset of its employees to perform acts of kindness and engage in public services for the society and the nation.
Personal Debt Management Collaboration Project with A Bank
Realizing the impacts of volatile economic conditions on employees’ lives, the Company initiated a project with a bank to assist employees in handling their personal debts. Qualified speakers from the Government Savings Bank headquarter and Bang Phlat branch were assigned to educate and advise interested employees especially operational levels on savings according to the sufficient economy philosophy as well as sustainable financial and debt management during 12-14 December 2018.
Uniting to Help Build the Society Project
The Company supported various projects and activities organized by external parties on a regular basis especially those run by Prawet District Office, Bangkok including activities held on National Children’s Day as well as World Environment Day on 5th June of every year. These activities not only helped build rapport with public and private agencies through social and community development but also uplift communities in the neighborhood of the Copmany to be stronger and more pleasant.
“Deekanna” Project 8th Year, Faculty of Commerce and Accountancy, Chulalongkorn University
The Company sponsored “Deekanna” Project for its 8th year as organized by students of the Faculty of Commerce and Accountancy, Chulalongkorn University during November 2018 and January 2019. This project received the Company’s continued support as the project fosters altruism in students to do good deeds for public interest and the society.
Youth Educational Support Program
The Company offered internships for interested educational institutions and students especially those universities with business administration, textile industry and fashion design courses that are related to the Company’s business. The objective of the program is to promote learning through real experience for students. The Faculty of Home Economics Technology, Rajamangala University of Technology Phra Nakhon have actively participated by sending both students and faculty members to visit the Company’s business and attend the internship program every year.
Moreover, the Company regularly supported learning activities of university students such as the thesis project of senior students of the Faculty of Fine Arts, Srinakharinwirot University which the Company was honored to be the official main sponsor for the past years.
MC GROUP for Sports and Youth Development Project (Youth Gifted In Sports)
The Company is an official sponsor of sport attire, equipment and scholarship for Miss Wanraya Wannapong or Nong Milk, a grade 6 student of Suwit Seree Anusorn School, Prawet District, Bangkok. Nong Milk is a national drone athlete who won the King’s Cup from King Rama the 9th and a number of international championships including FAI Drone Racing Championship 2018 held in Shenzhen, China during 1-4 November 2018. Nong Milk was the youngest drone racing world champion in the world.
Furthermore, various projects that support youth development were initiated and executed starting with sport activity development for schools in the Company’s vicinity with the intention to develop youth through sports to become quality citizens of the society and the nation both physically and mentally. For instance, the Company sponsored woodball of Suwit Seree Anusorn School, Prawet District, Bangkok and international tug of war of Mathayom Suwit Seree Anusorn School, Prawet District, Bangkok. Both schools continuously develop their sport activities which resulted in a number of victories at provincial and national levels. Some students were selected to be among Thailand’s national team to participate in international tug of war events including the tug of war team of Mathayom Suwit Seree Anusorn School.
- 8) Innovations and Dissemination of Innovations from Activities with Responsibility for Society, Environment, and Stakeholders
The Company upholds its commitment to developing good corporate governance and innovations 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.
Note that the Company has innovated apparels and wears to address the needs of consumers of all genders, ages and lifestyles including
McJeans has designed its denim collections that include denim jackets and oxford shirts from fabrics laced with antibacterial finish or silver nano which has a quality to resist growth and reproduction of bacteria reacting to human sweat. This will help eliminate undesirable or smelly orders while the substance is safe for the body.
Mc Jeans has also manufactured denim wears including light jackets and oxford shirts from fabrics coated with water-repellent technology. The substance has a hydrophobic quality that water will not be absorbed by the fabrics. Wearers can enjoy going outdoor without getting wet suitable for both weekday and weekend looks.