CSR Group Project ASM401 PDF

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UNIVERSITI TEKNOLOGI MARAASMFUNDAMENTALS OF BUSINESSGROUP PROJECT REPORTCORPORATE SOCIAL RESPONSIBILITY (CSR)PREPARED BY:NUR HIDAYAH BINTI MOHAMED ZIADI (2020461586)AUNI AQILAH BINTI AHMAD TARMIZI (2020897482)NUR ALIAH SYAFIQAH BT AZAHAR (2020853174)PREPARED FOR:NOORIZAN BINTI MOHAMAD MOZIE5 th JANU...

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UNIVERSITI TEKNOLOGI MARA

ASM401 FUNDAMENTALS OF BUSINESS

GROUP PROJECT REPORT CORPORATE SOCIAL RESPONSIBILITY (CSR)

PREPARED BY: NUR HIDAYAH BINTI MOHAMED ZIADI (2020461586) AUNI AQILAH BINTI AHMAD TARMIZI (2020897482) NUR ALIAH SYAFIQAH BT AZAHAR (2020853174)

PREPARED FOR: NOORIZAN BINTI MOHAMAD MOZIE 5th JANUARY 2021

Table of Contents ACKNOWLEDGEMENTS EXECUTIVE SUMMARY

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BACKGROUND OF ORGANIZATION

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DISCUSSIONS I. II.

Core Principles and Organizational Values Stakeholders of The Organization

III.

Areas of Social Responsibility

IV.

Approaches to Social Responsibility Programs

V. VI.

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Corporate of Social Responsibility Programs Social Responsibility Management

CONCLUSION

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REFERENCES

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ACKNOWLEDGEMENT

We are very grateful because, within the time provided by our lecturer, we managed to complete our group project assignment. The assignment cannot be completed without the effort and co-operation from our group members, Nur Aliah Syafiqah, Nur Hidayah and Auni Aqilah. We also sincerely thank our lecturer of Fundamental of Business(ASM401), Puan Noorizan Bt Mohamad Mozie for the guidance and encouragement in finishing this assignment and also teaching us in this course. Last but not least, we would like to express our gratitude to our friends and parties involved especially Tenaga Nasional Berhad parties who provide good cooperation in providing assistance to complete this group project. The success and final outcome of this assignment needed a lot of guidance and assistance from many people and we extremely lucky to have got this all long the completion of our assignment work.

EXECUTIVE SUMMARY For the subject Fundamentals of Business, ASM401, students were instructed to do an interview with the company of our choice. The objective of this interview is to identify the company’s Corporate Social Responsibility (CSR). Corporate Social Responsibility is a business strategy of self-regulation that allows a business to be socially responsible to itself, its customers, and the public [ CITATION Jas20 \l 17417 ]. Companies should be aware of what kind of effect they have on all facets of society, particularly economic, social, and environmental factors, by performing corporate social responsibility, sometimes known as corporate citizenship [ CITATION Jas20 \l 17417 ]. This report was appointed to examine the fields of the principle of ethics and corporate social responsibility within the company. For our group, we picked Tenaga Nasional Berhad (TNB) to find out what are their corporate social responsibility movement. We wanted to know what they did in order to improve their company, improve their relationship with the consumers, and to society. However, since the pandemic occurred, we could not implement the interview in person. Thus, we carried out the interview through online. The medium that we used for the interview session was Google Meet. The interview was held on Friday, 4th December 2020 at 10:00 a.m. The interview session was conducted with Zulhisham Bin Hj Harun, Manager of Communication Outreach, TNB. Since it was done through the internet, the location of the interview was at our own residence. We have gathered a ton of information regarding the accountability of the organization for personnel, consumers, and the environment. The distribution of their corporate social responsibility was very detail, helpful and we understood it profoundly. For the most part, with all the data presented, students were able to comprehend more about Tenaga Nasional Berhad’s corporate social responsibility. The students believe that firms have the opportunity to demonstrate their core values and establish trust between their workers and their customers by developing and engaging in corporate social responsibility initiatives [ CITATION Kat18 \l 17417 ].

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BACKGROUND OF ORGANIZATION Prime Minister Dato Seri Dr. Mahathir bin Mohamad officially declared the TNB as the heir and successor to the NEB on 1 September 1990. TNB became a wholly government-owned private company; Tan Sri Dato Haji (Dr) Ani bin Arope was elected chairman on the same day. Tenaga Nasional Berhad, with a foreign presence in the United Kingdom, Kuwait, Turkey, Saudi Arabia, Pakistan, India, and Indonesia, is the largest electricity utility in Malaysia and a major utility company in Asia. TNB has evolved from strength to strength since its listing on 28 May 1992, becoming a service that reacts to the needs of its stakeholders and the marketplace. They are motivated by their strong conviction in all of their actions that they have a duty to better the lives of the people of Malaysia. They are therefore looking forward to ensuring a better and happier tomorrow for us. Their clients are primarily made up of commercial, industrial and residential clients. Their industrial clients are involved in the processing of goods and services. While they make up their customers' smallest segment, they still account for the bulk of their electricity sales. Their commercial clients are their second-largest heirs to the sale of energy, carrying out the corporate and commercial activities that drive their economy. Their residential clients constitute the bulk of the 31.7 million population of Malaysia. They push us as their biggest market to offer innovation in their goods and services. Together, their mission is to bring life to a better world through creative and sustainable solutions. Their aim is to be a leading supplier of renewable energy solutions in Malaysia and abroad.

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DISCUSSIONS I.

Core Principles and Organizational Values

i.

How Does TNB Develop and Define its Cores Values?

Tenaga Nasional Berhad does define their core values. The core principles of an individual or organization in the TNB are core values. These guiding principles guide conduct and can assist individuals (workers) to grasp the distinction between right and wrong. In other words, consider the guiding light of core principles to teach individuals (workers) how to behave in the work environment. Tenaga Nasional Berhad’s core value is integrity, collaborative, professionalism, customer centricity, forward thinking and mindfulness.

ii.

Why Is It So Important to Do So?

Having strong company principles allows them to ensure that all workers work for the same objectives. Their core values help the mission of the business and form their community. That's why these principles should be matched with every single business decision. A company without core principles isn't really a company. If they have not established and shared their company values with the staff, how will they create great teams, provide outstanding customer support and encourage innovation? In other words, they may argue that their core values form the atmosphere of the organization and influence their business strategy. The core values help them build a mission, strengthen team cohesion, and create a sense of organizational involvement.

II.

Stakeholders of The Organization

i.

The Stakeholders in The Organization.

There were people in charge of driving TNB forward. The first one is Datuk Seri Amir Hamzah Azizan. He is a President or Chief Executive Officer for TNB. Datuk Seri Amir Hamzah Azizan joined Tenaga Nasional Berhad in April 2019 as President / CEO. For corporate division, Datuk Wira Roslan Bin Abdul Rahman as Chief Corporate Officer. He tracks and informs the CEO and Board of Directors on all activities related to corporate communication as part of his work.

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For core business, Dato' Nor Azman Bin Mufti as Chief Power Generation OfficerHe was the Vice President of Energy Projects prior to his current appointment. Second is, Datuk Ir. Baharin Bin Din as Chief Distribution Network OfficerHe develops the priorities and plans of the Division for the Distribution Network company of Tenaga Nasional based on the overall goals of Tenaga as part of his duties. Third one is, Datuk Ir. Megat Jalaluddin Bin Megat Hassan as Chief Retail Officer. As a leading retail business of the future, he is responsible for delivering the aspiring vision for TNB. Next, Datuk Ir. Husaini Bin Husin as Chief Grid OfficerThe chief is responsible for the overall performance of the transmission company of Tenaga Nasional, which focuses on the transport of electricity, the management of the properties of the division, as well as the operation and maintenance of the transmission network. For non-core business, Nazmi Bin Othman as Chief Financial Officer. Next, Iwan Azlan Bin Mokhtar as Chief People Officer and Human Resources. Next is Amir Mahmod Abdullah as Chief Procurement Officer. He describes and manages the long-term group-wide procurement strategy as part of his work scope, identifies group-wide cost reduction strategies, the role and scope of central procurement, and defines the implementation of best practices. Besides, Datuk Fazlur Rahman Bin Zainuddin as Chief Strategy and Regulatory Officer. Datuk Fazlur Rahman bin Zainuddin is a former CFO of Tenaga Nasional for 6 years and currently holds the position of Chief Strategy and Regulatory Officer effective 1st August 2018 as part of job rotation in line with TNB's succession planning program. Next is Datuk Fazil Bin Ibrahim as Chief Information Officer. His work responsibilities include delivering holistic and creative ICT solutions to sustain the business of Tenaga Nasional, concentrating on effective ICT governance, planning for security and business continuity, comprehensive delivery and management of telecommunication infrastructure/applications, and business enablement. Besides that, is Mohamad Ariff Bin Zainol as Chief Global Business Solutions. Its division includes the Human Resources, Financing, Procurement, Fleet Management and Business Support Office Shared Services Hub, which is responsible for supplying the entire organization and its subsidiaries with support services. Next is Lim Fu Yen as Chief Subsidiary Management Officer. His division is responsible for managing and optimizing the efficiency of 12 Manufacturing & Services, Power and Telco & Communication Solutions subsidiaries (TeCS). Futher, Shahazwan Harris as Chief International Officer. For company secretary, Norazni Binti Mohd Isa as Company Secretary.

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ii.

The Most Important Stakeholders in The Company?

The most important stakeholders in Tenaga Nasional Berhad for 2020 is Dato' Seri Mahdzir Bin Khalid. He is Non-Independent Non-Executive Chairman for TNB.

iii.

Does The Stakeholders Have a Fundamental Impact On Your Organization’s

Performance? In the management of the company, stakeholders do not have any role, yet they control the management of organizations. Stakeholders oversee the decision making process. They ensure that the organizational working atmosphere is diverse, stimulating, and fulfilling and that good working conditions are accessible to the organization so that the organization can perform well. However, it should be understood that the stakeholders have their own needs which the organization must fulfilled. Performance, environment, efficiency, technology, financial, regulatory, welfare or ethical issues, etc. may relate to these priorities. The organization must recognise the needs of the stakeholders, thoroughly understand and resolve them. This is a very sensitive method that needs to be handled with discretion, since it will assist the company to achieve long-term success. The object of its life is defeated by an organisation that does not have the capacity to fulfilled its stakeholders.

III.

Areas of Social Responsibility

i.

Responsibility Towards Shareholders or Owners

The company's owners are shareholders. To start up the business and accept the consequences of failure, they invest capital. Shareholders have a major interest within the corporation's

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wellbeing and its development. The core obligations of the company to shareholders are to guarantee protection or capital expenditure, to provide equal opportunities for all shareholders to engage in the leadership of the firm as mandated by law, to provide a reasonable and sufficient return on the investment of shareholders, and in order to provide accurate and periodic data on business and other transactions and to improve the profitability of capital investment, optimal resource usage was considered.

ii.

Responsibility Towards the Employees

Workers are the best tools for all corporations. It is not possible for businesses to be controlled solely by founders or shareholders alone. It needs worker assistance. They are the company enterprise's assets as well as the organisation is more accountable for their wellbeing. Instances of the company's duty are to guarantee job protection for its employees are the establishment of a courteous relationship between management and employees, the involvement of employees in decision-making and profit sharing, the ability for training, advancement and career growth, and the consideration and handling of employee concerns.

iii.

Responsibility Towards the Government and Community

Government The government plays a crucial role in developing favourable terms for the creation, operation and growth of an organization by formulating effective policies and setting up the necessary infrastructures. The responsibility towards the government are to pay taxes faithfully and consistently, to assist the government in improving the quality of life, to obey the laws, legislation, and regulations, to prevent monopolistic and discriminatory trade practices, to compensate each states zakat and to get back wakalah, to provide the government with valuable market tips and guidance whenever possible. Community

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The Community refers to a group of people in the surrounding environment of the organisation. The business is a social institution, where it exists, survives and grows, that requires to be responsible to its community. It must take into account social expectations and strive to fulfil them. Promoting social values and standards is the primary duty of company towards the society. Example of their projects are Project Mesra Rakyat (PMR), it is to build a house for selected non-Muslim who is poor and unable to afford a house by state in Malaysia. Next is, Project Better Brighter Vision (BBV), a collaboration with selected eye hospitals give funds to make glasses for school students categorizes of Asnaf. After that, to utilize the resources of the community. Example of their projects are Project Baiti Jannati (PBJ), the fund come from Wakalah money. Wakalah means every year TNB pay zakat for each state and state give back money in quantum for example 2/8 of zakat to TNB. TNB utilized use wakalah money for community muslim and the example project TNB do is PBJ which is build a house for selected Muslim who have Asnaf confirmation unable to afford a house. This project TNB do by state in Malaysia. Besides, to provide financial assistance for example, Educational Institution, TNB build Uniten for community to join future study at their University. They also provide scholarship or loans to anyone who qualifies. Hospital, TNB collaboration with selected hospital such as IJN, Hospital Serdang and Melaka. This project call as Better Brighter Shelter (BBS). This project is the building of the TNB boarding house for visitors or heirs who are located far from the hospital. To help to protect the environment from pollution and maintain the ecology. The one of the TNB project is planting mangrove trees along the coast. Next thing is, to create employment opportunities for skilled, semi-skilled and unskilled worker. Such as collaboration with Tabung Pendidikan Melaka (Tapem), it is to support student future study and teach the skilled in Chargeman AO at ILSAS. Other than that, Programme of Protégé, it is the chances to absorbed as a worker.

IV.

Approaches to Social Responsibility Programs

i.

Obstructive Approach of TNB

First and foremost, the phenomena of COVID-19. It caused project delay and limited to involve into new project. After that, cost of project increase. It caused TNB need to find out other sources or fund to support the additional project cost. Last but not least is last minute

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cancellation other parties to do collaboration, it caused TNB need more time to find out new parties and do again the project paper.

ii.

Defensive Approach of TNB

Websites In order to advertise their enterprises, goods and services, businesses usually create websites. TNB also has its own website to promote their company, which is https://www.tnb.com.my. An engaging tool to convey information to customers and receive input via comments is also given on the website. Additionally, for banner advertising and other ad placements, TNB uses sites as media. For example, on sports-rated websites, a sports retailer can pay to position banner advertising. Email To attract new customers and establish close relationships with existing ones, email marketing is used. TNB uses lead generation software to send out mass emails at a low cost and purchase email lists. For email newsletters and TNB included, many businesses provide sign-up forms on their websites. To target loyal customers with details and special deals, TNB uses email. Social Media E-Commerce companies often use social media platforms to build awareness, draw buyers and connect directly with users, including Twitter, Facebook, Pinterest, and YouTube. This is because people are very familiar with receiving data or news from social media nowadays. This is a good opportunity for TNB to make brand or product updates for supporters and track social media discussions about their companies.

iii.

Accommodating Approach of TNB

They did a collaboration with other organization. For illustration, Project Baiti Jannati (PBJ) collaboration with DBKL for PBJ Wilayah and collaboration with PKNS for PBJ Selangor. Next is, Project Better Brighter Shelter (BBS) collaboration with Hospital Melaka, Serdang and IJN to do this project. Lastly, Project Better Brighter Vision (BBV) collaboration with selected eye hospitals such as Tun Hussein Onn National Eye Hospital (TONEH).

iv.

Proactive Approach of TNB 8

TNB proactive approaches are firstly, Foresight Planning ahead for any potential problems for the business. If they are a start-up, for example, with a runway of a year. The proactive TNB do is starts looking for new investors and funding 6 months in first. Secondly, opportunism. There is always an unlikely partnership, a new way to create value or make more money right around the corner and it is going to stay there unless the TNB is proactive enough to seek them out. Thirdly, risk management. What TNB will do to make their business proactive is there is a chance for this decision to backfire within the foreseeable future, TNB will put in safeguards that would help in case everything goes bad.

V.

Corporate Social Responsibility Programs

i.

What Are the Two Types of Previous Programs That Have Been Done by TNG and

Where the Programs Was Carried Out? The two types of previous programs that have been done by TNB are Tabung Pembangunan Asnaf, Baiti Jannati program, Desa Wawasan Program and Used Car Donations Program. Tabung pembangunan asnaf has been done for every year using the wakalah money that TNB got from zakat center. The wakalah money are money that TNB got after paying the zakat. All this wakallah money that...