Corporate Responsibility
Axiata is an organisation that is transforming itself in all aspects of its operations. Corporate Responsibility (CR) remains an integral part in this journey of transformation. Axiata is Advancing Asia by bringing affordable connectivity, innovative technology and world class talent to the countries that we operate in. We are focused on doing things better, and more efficiently and effectively towards generating long term economic, social and environmental value to all our stakeholders. We are constantly reviewing our practices and efforts, embracing innovation as the key enabler towards achieving our ambitions. Axiata approaches CR from the following perspectives: Marketplace, People, Environment and Community.
Marketplace Perspective
Axiata is commited towards operating in an ethical and transparent manner with its customers, employees, business partners, media and shareholders.
Following the demerger exercise on 28 April 2008, Axiata Group continued to adopt TM’s policies while taking measures to tailor them to Axiata. The revised Group Policies were implemented in March 2009 and forms an essential part of the Corporate Governance framework of the Group. These Group Policies state the principles and set the tone by which business is conducted across the Group.
Corporate Governance
Axiata’s commitment to corporate governance is reflected in the various initiatives which are stated within the detailed Statement of Corporate Governance available within this Annual Report on pages 64 to 78.
Risk Management
Risk management is integral to the Group’s business especially in view of the dispersion of its operations. Managing risks enables the Group to achieve its objectives and create value for its shareholders, satisfy its customers, protect its employees and assets. The Group is committed to manage those risks that arise in the course of Axiata’s business to an acceptable level, so as to maximise opportunities and minimise negative outcomes.
Procurement Practice
Axiata had in 2008 established a Group Procurement function to standardise procurement policy and processes across the Group. The role of this team is to maximise the buying power of the group, to develop strategic partnerships with key vendors and leverage synergy thoughout the Group. To achieve this goal, a spend analysis and benchmarking initiative has been put in place. The overall objective of this function is to optimise capital expenditure utilisation and reduce operating costs through the adoption of a total cost of ownership methodology.
In 2009, cost benchmarking was implemented across the group. Axiata also moved towards a partnership model with its infrastructure partners as a prelude to signing group wide frame agreements in 2010.
People Perspective
Axiata’s vision is to be a regional champion by 2015. The development of our talent pool of 25,000 employees towards fulfilling their potential is key to the future success of the Group.
Several initiatives have been put in place to ensure we become a Company that develops World Class Talent.
Talent Management and Leadership Development
In 2009, Axiata implemented a comprehensive Group-wide Talent Management programme, including the framework, assessment methodology and process for each OpCo to follow and govern at both the OpCo and Group levels. Currently about 48 CxO potentials within the Group have been identified and their development closely monitored. The target is to have 100 such potentials by 2015, with a high readiness level to succeed the existing CxOs and also to contribute to the human capital agenda of the countries that Axiata operates in.
The OpCos themselves are looking into establishing the talent pipeline at other levels within their organisations including top-quality graduate intake. Subsequently, four development platforms were established and a comprehensive development plan implemented for the identified potentials. The development platforms are designed to enable Axiata to leverage on its regional operations by exposing them to different markets and cultures.
The leadership development programme was rolled out across the Group, creating a platform where leaders get to work on real business issues in a safe environment as they internalise what they have learned. Self-awareness workshops, based on assessment of the individuals, had high traction with the incumbents. CEOs from across the Group also share their leadership insights with the participants.
As a testament to the Group’s commitment to developing talent, Axiata also has an active Group Talent Council made up of the Top Management from Corporate Centre and all the OpCos, chaired by the Group CEO and facilitated by Group HR as secretariat. The Council meets regularly to ensure the talent management framework continues to address current and future business needs and monitors the development of the identified potentials.
To supplement the current potentials from within the Group, steps are being taken to extend the talent management framework to include the recruitment of top graduates. The Young Talent Programme aims to identify fresh graduates to be part of the talent pipeline.
This 12-month programme will include on-the-job experience and intensive education-based development involving a combination of workshops, projects, coaching and opportunities to network with diverse groups of people – from peers to senior leadership teams in various functions and countries. A rigorous selection process is employed to ensure that Axiata recruits fresh graduates with high-potential to be accelerated in their development from the start of their career.
Talent Attraction
Axiata is also taking steps to establish itself as an employer of choice by strengthening its Employee Value Proposition. Steps taken include:
- A robust talent management and leadership development programme
- Facilitating regional career prospects through open resourcing and encouraging cross-country assignments
- Encouraging diversity of its employee population
- Differentiated compensation and rewards based on performance
- A high performance and integrity culture
Talent Retention
As part of its talent retention initiatives, Axiata continues to benchmark itself against other top-performing companies in terms of overall remuneration. In 2009, Axiata also introduced a highly performance based ESOS as a retention tool.
Axiata Asean Leadership Forum
Axiata is committed to shaping the future of Asia by developing human capital throughout the region. The Axiata Asean Leadership Forum is in line with our objective to nurture talent via self-learning and development, leadership and functional programmes, cross-country assignments and exposures, with coaching and mentoring opportunities from our leaders and captains of industry. The forum is an annual series organised by Asian Strategy & Leadership Institute (ASLI) with the support of Axiata, which brings together Government, Business and Thought Leaders to reflect on the key challenges facing ASEAN and business opportunities in the region. The Axiata 7th Asean Leadership Forum – with its theme of Transforming ASEAN, moving forward, was held on 5 April 2010 in Kuala Lumpur, where the Prime Minister of Malaysia, Dato’ Sri Mohd Najib Tun Razak delivered the Keynote Address and received the inaugural ASEAN Transformational Leader Award.
ENVIRONMENTAL PERSPECTIVE
As a regional telecommunications group, Axiata is aware of the need to reduce the environmental impact of its operations. There are over 27,000 BTS sites across the group which consume approximately 324,000 Mwh of energy units every year. The energy is mainly used for operating BTSs, air conditioners and the battery charging system. In sites where grid power is available for less than 24 hours, diesel generators (DG) and valve-regulated lead-acid (VRLA) batteries are used. The running of diesel generators is not only 13 times more expensive but also causes carbon dioxide (CO2) emissions which is highly detrimental to the environment.
The Group has launched a cross OpCo programme to manage energy efficiency in its networks. One of the objectives of the programme is to conduct trials in finding optimal alternative energy solutions and to deploy them across the Opcos.
Among the initiatives taken include:
- Deployment of Green Hybrid sites utilising solar, wind and biodiesel
- Phasing out of old generation BTSs which consume a lot of power and trialing excess capacity shutdown functions
- Reducing diesel consumption through reduction in number of DGs; use of fuel efficient DGs and batteries as prime back up
- Use of power efficient air conditioners and reducing running time, and eventually migration towards utilisation of outdoor BTSs which do not need air conditioning
- Use of new generation deep discharge batteries based on new technology which are able to operate at higher temperatures
Axiata has to date deployed 23 green sites and adopted the energy efficient programme, saving 215 MWh units of energy translating to USD22 million in energy cost and more importantly 142 tonnes reduction in CO2 emissions.
The Group’s Power Saving initiatives were shortlisted for the Green Network Award organised by GSMA.
Axiata has been focusing on passive elements in its energy saving initiatives. In the future, Axiata will focus on active elements of energy efficiency such as introducing mandatory active functions/features that can contribute to power savings based on site traffic, e.g. transceivers that will go on shutdown mode automatically when traffic in the area is low.
Moving forward, the group will continue to explore new green energy deployment. The target is to deploy 200 green mobile sites by 2012 and reduce CO2 emissions by up to 30% by 2015.
Community Perspective
The Group’s efforts towards community development remains focused on education and developing talent, via schools, scholarships, learning and development programmes as well as humanitarian efforts. The latter is through technology and non-technology assistance especially in Disaster Mitigation and Relief Programmes and ICT for Development.
At Group level, Axiata is reviewing its entire CR portfolio in 2010/2011 with a strong emphasis on secondary education and building well-rounded individuals, towards nurturing future leaders of Asia.
Axiata supports 1GOAL
Axiata Supports 1Goal: a global mobile campaign effort by the GSMA in support of universal education, which the Axiata Group will also be participating in.
The campaign was announced by HM Queen Rania of Jordan at the Mobile World Congress in Barcelona on 16th Feb 2010 (http://www.gsmworld.com/newsroom/press-releases/2010/4643.htm).
Dato’ Sri Jamaludin Ibrahim, in his capacity as a Board member of the GSMA is quoted in the press release as below.
Axiata Group Berhad:
Dato’ Sri Jamaludin Ibrahim, President and Group Chief Executive Officer of Axiata said
“Axiata Group is excited about being part of this significant global mobile voice to raise public
awareness on education towards realising the Millennium Development Goals (MDGs). A
child’s right to education is an ideal we hold very dear across the Axiata Group. We strongly
believe that it is the key to unlocking a child’s true potential, and gives his or her aspirations a
fighting chance to create a better, brighter future for themselves and for their nations. The
power of mobile communications is the perfect conduit to raise further awareness for this
worthy cause. For these reasons, we firmly support the 1GOAL: Education for All Mobile
Campaign”.
Axiata Group Berhad (Axiata), along with its
subsidiaries in Malaysia, Indonesia, Sri Lanka, Bangladesh as well as its associate in
Singapore, lends its support to the GSM Association (GSMA)’s 1GOAL: Education for All
mobile campaign, the world’s largest cause-related campaign ever undertaken. 1GOAL is a
GSMA initiative to ensure that every child in the world has the opportunity to go to school by
2015. Today, 72 million children in the world are denied that chance, and do not have access
to basic primary education. The campaign provides the platform for millions of citizens
globally, to show their support for 1GOAL.
Operators from across the mobile world have joined forces with global football stars, the
football world and FIFA, along with educational champions, charities and campaigners to
support 1GOAL – a legacy of the FIFA Football World Cup 2010™ - to give all children in the
world the chance in life an education brings.
Serving more than 1 billion mobile users, these operators will deliver an international mobile
communications campaign of unprecedented reach that combines the platform of the world’s
biggest sporting occasion with the world’s largest medium, to harness public support for
1GOAL.
In Malaysia, Axiata’s subsidiary Celcom Axiata Berhad (Celcom) will launch an SMS
campaign from 7 to 10 June to all Celcom customers. To show their support Celcom
customers need only to reply ‘YES’ to a simple free text. Signups from the 1GOAL mobile
campaign will be presented as a petition to world leaders at an education summit later this
year urging both developing and developed countries to provide further funding for
education. Axiata has also done its part via our website at http://www.axiata.com.
Across the region, the Axiata Group has also shown similar support. In Sri Lanka, Dialog
Telekom Plc (Dialog) has already launched its campaign on June 1 utilising both its mobile
and web platforms. Both PT XL Axiata Tbk (XL) in Indonesia and Axiata (Bangladesh)
Limited (Robi) will launch its SMS campaigns this week whilst in Singapore, M1 Limited (M1)
will be launching on June 7.
Please help support 1Goal.
http://www.join1goal.org/