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Sustainability
Sustainability
SUSTAINABILITY

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.

  1. Sustainability strategy formulation and risk management to maintain stability and sustainability of the Company.
  2. Fair business conduct and commitment to moral principles, ethics, laws, good corporate governance principles and the code of conduct.
  3. Anti-corruption for all forms of corruption, honesty and righteousness in undertaking business without any fraud and bribery.
  4. Respect for human rights, equal and equitable treatment of all stakeholders and no involvement in any action violating human rights.
  5. 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.
  6. Responsibility for consumers in conducting business by creating quality products under good standards to meet the needs of consumers.
  7. 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.
  8. 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.
  9. 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.

Employment

The Company has employment policy for non-discrimination and equality opportunities for female, disabled persons or other underprivileged people to be suitable in each duty and position and non-employment for child and illegal labors.

To compliance with Promotion and development of life quality of Disabled persons, the Company has employed disabled persons continuously with suitable position to enhance the equality and diversity in organization which also help the career as well. In year 2018, the Company has joined the project labor law to support Wheelchair Basketball Association by hiring the athletes to work with MC Group to enhance the skill and capabilities for other aspects and also income-generating.

In addition, the Company has gender equality in term of employment and career path’s growth. MC group has hired female gender in equal proportion to male gender and two of six executives are female, this accelerates the opportunity and promotion of gender equality.

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.

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 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 Regulatory Updates and Interpretation Curriculum, Safety Thailand to Safety Work for Employee Health, Crisis Response Training and Production Process Safety Measure 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.

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 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.

At the end of June 2018, the Company encouraged employees to participate in various trainings totaling 12 curriculums and 6,624 hours or equivalent to the average number of training hours per employee of 11 hours.

The Company realizes the importance of communications between executives and salespersons who are the majority of employees spreading across branches throughout Thailand. The Company adopted online media by using Facebook Live under Pooky Live for executives and salespersons to express their opinions together. Moreover, this is considered a channel that salespersons can share their experiences and sales techniques with others to boost morale and motivate each other in performing their tasks.

In addition to the above, the Company encourages employees to participate and voice their opinions in the annual Employee Opinon 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.

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.

  1. To offer new experience and fun for customers in purchasing its products.
  2. To better understand customers so that the Company can benefit from customer information in product development or other direct marketing campaigns.
  3. 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) 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.

At the end of June 2018, 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 GROUP Delivering Happiness to Children at Huay Kub Kab Village, Chiang Mai

The Company sponsored “Caravan-Rally - Rain Protection for Kids, Happy You, Happier Me” project with the route Bangkok-Mae Tang-Chiang Mai from 8-10 June 2018 to deliver rain gears, apparels and other necessities to children and villagers at Huay Kub Kab Village under the intention to support the development of the country by enhancing the quality of living of communities and the society in a sustainable manner.

Sustainable Agriculture for Thai Farmers Under Sufficiency Economy Project

The Company supported Thai farmers in adopting sustainable agriculture practices under sufficiency economy philosophy on the occasion of Rice and Farmer’s Day on 5 June 2018 by purchasing 15,000 kilograms of “Sarus Crane Rice” which is organic jasmine rice grown by farmers at Ban Sawai Sor, Buriram. The area is known to welcome Thai eastern sarus cranes, recorded to be extinct for over 50 years that returned and live naturally again through its organic farming methods that care for traditional lifestyles and nature and promote sustainable ecosystems. The rice is clean, delicious, full of nutrition and chemical-free. The Company repackaged the rice to offer to customers who purchased our products as gifts under “Free Gift Sarus Rice” program.

The Company created apparel innovations to meet the needs of consumers of every group, age and lifestyle as follow.

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.

MC COOL Denim Innovation

With Thailand’s tropical climate that affects how consumers choose and purchase apparels, MC COOL was innovated to enhance fabric properties to stay at normal body temperature (37 ºC) as the temperature outside is rising higher than body temperature and adapt to temperature of the surroundings. The fabric not only helps keep the temperature and maintain body temperature but also ventilate and control moistures. This mechanism enables the fabric to dry fast and feel comfortable throughout wearing.

McT Innovation

  • McT, wearable t-shirts for both men and women, made with fabric innovation and production technology that offer special properties of wearing comfort perfect for all movement activities and diverse lifestyles. This innovation exhibits these listed technologies below.
  • SoftTech - a new brushing technology using brush heads made from special materials that allow micro-brush fabric with fine, spongy, dense and velvet-like feathers which gives a desirable soft feel.
  • Dri-Balance - a 2-layered fabric innovation with the inner layer made from microfiber polyester with a property in absorbing sweats and the outer layer made from cotton that helps ventilation. This fabric gives dry and comfort feeling when wearing.
  • Shimauma - a cotton comfort 100% weaving technology that offers dense but light fabric. Shimauma is famous for its unique texture and patterns as well as its softness that gives wearing comfort.

Anti-Mosquito Fabric Innovation

The Company came up with an innovation to support daily lifestyles with anti-mosquito t-shirts that are made by new sewing process technology using fabric treated by permethrin synthesized from chrysanthemums. The fabric has been tested and certified of its anti-mosquito property without irritation to skin or harm to body.