Corporate Integrity Building and Redline System.pptx

corporate integrity

1. CORPORATE INTEGRITY BUILDING AND RED LINE SYSTEM

2. COURSE OBJECTIVE Be familiar with the company's red line system, stick to the bottom line, and never step on the red line

3. Corruption: Behavior that violates the values advocated by the company, takes advantage of work or position or authority to seek personal interests or harm the interests of the company. Violations: Behaviors that violate the company's rules and regulations, business processes, hinder fair competition, and damage the company's interests or reputation. INTERPRETATION OF THE RED LINE SYSTEM - CORRUPTION AND VIOLATIONS

4. Those who comply with corruption behavior will be given a demerit or the labor contract will be terminated depending on the circumstances. Those involved in illegal crimes will be reported to the police for legal liability. Those who meet the violation will be given a notice of criticism or downgrade depending on the circumstances; if the circumstances are serious, they will be terminated from the labor contract. The existence of a loan relationship is directly deemed as bribery. The presence of any gambling proceeds is directly considered bribery. INTERPRETATION OF THE RED LINE SYSTEM - CORRUPTION AND VIOLATIONS RED LINE

5. THINGS YOU ABSOLUTELY MUST NOT DO Asking for Bribes and Accepting Bribes The company strictly prohibits soliciting bribes from suppliers such as asking for money and materials, sharing cooperation commissions, etc. It also prohibits borrowing from suppliers and other partners, and using its authority to ask for benefits, etc. Consequences: Immediate dismissal upon verification

6. Stealing Customer Goods The company strictly prohibits anyone from stealing any customer goods. Consequences: ① Immediate dismissal upon verification ② Report to the police or court and impose penalties ③ Compensation for the relevant goods or the value of the relevant goods THINGS YOU ABSOLUTELY MUST NOT DO

7. Misappropriation, Embezzlement, and Theft of Company Property The company strictly prohibits anyone from misappropriating, embezzling or stealing company property and payment! Consequences: ① Immediate dismissal upon verification ② Report to the police or court and impose penalties ③ Compensation for the relevant goods or the value of the relevant goods THINGS YOU ABSOLUTELY MUST NOT DO

8. Abuse of Authority and False Reporting of Expenses The company strictly prohibits abusing power and falsely reimbursing expenses, and reimburses real expenses in accordance with the system. Consequences: Illegal gains will be recovered and punishment will be imposed by the company upon verification THINGS YOU ABSOLUTELY MUST NOT DO

9. 5. Fraud and Whitewash Performance The company pursues healthy and long-term operations and resolutely opposes fraud, whitewashing performance, false billing, illegal concessions to customers, etc.! Consequences: The real assessment data will be restored and internal punishment will be imposed within the company upon verification THINGS YOU ABSOLUTELY MUST NOT DO

10. 6. Charging Customer Price Difference This behavior is a serious personality and audit issues in any country or company. The company also strictly prohibits this behavior. Any behavior deemed to be charging a customer price difference is also prohibited. (Except for legal operations such as business partners) Consequences: ① Immediate dismissal and will never be hired upon verification ② Report to the police and court to pursue legal responsibility THINGS YOU ABSOLUTELY MUST NOT DO

11. 7. Insulting and Assaulting Customers The company strictly prohibits insulting and assaulting customers! Consequences: ① Assaulting customers will be dismissed immediately upon verification ② Insulting customers will be given a warning letter upon verification. If you cause bad public opinion, you will be dismissed immediately THINGS YOU ABSOLUTELY MUST NOT DO

12. 8. Strike and Organize Strikes The company pays attention to the realization of employees' demands, but demands must be expressed through formal grievance channels. It is strictly prohibited to express demands through strikes or organizing others to go on strike together. Consequences: ① The organizers of the strike will be dismissed and will never be hired ② Strikers will be considered for continued employment based on their attitudes and rework speed ③ Strikes will only be paid basic salary for the month and will be considered absenteeism according to the strike time ④ A strike lasting more than 3 days shall be deemed as voluntary separation THINGS YOU ABSOLUTELY MUST NOT DO

13. 9. Disclosure of Company Confidential Information The company advocates information security and strictly prohibits anyone from disclosing the company's confidential information, including but not limited to business strategies, price discounts, salary performance, financial planning, etc. Consequences: ① Immediate dismissal and will never be hired upon verification ② Report to the police and court to pursue legal responsibility THINGS YOU ABSOLUTELY MUST NOT DO

14. Siva Kumar Jeyapalan & Anor v Firwas Sdn Bhd [2024] CLJU 170 The director of the Company abused his power as director to enforce a sham SPA and thereafter kept to himself the earnest deposit of RM1.2 million for his own unlawful and private profit, in furtherance causing loss to the Company. The Court ruled the director as guilty and ordered the director to make compensation in the sum of 52 million. Abuse of power: When performing company duties, employees use public power for private purposes, harm the public and enrich themselves, and use their power to earn improper income. REDLINE CASE 1 - ABUSE OF POWER Study Case

15. Fraud: Company employees use false information to obtain positions, benefits or assessment advantages when performing company duties. REDLINE CASE 2 – FRAUD Poonjelian Chandran v Sunshine Bread Sdn Bhd [2024] 1 ILR 667 The subject employee had falsified documents and made fraudulent representations to the Company in relation to the expiry date of the products produced, causing losses to the Company. The Court determines that such conduct of falsification and misrepresentations justifies the termination and dismissal of the subject employee, and may be subjected to criminal prosecution. Study Case

16. Conflicts of interest include, but are not limited to: Enterprises established by employees and their close relatives have business relations with the company Employees and their close relatives invest in or hold positions in enterprises that have business relationships with the company The employee holds any interest in a competing company Shareholding/individual joining company outlets The employees hold positions in other organizations that conflict with the company's interests during employment with the company Poke Food (M) Sdn Bhd & Anor v Fooditive Holdings Sdn Bhd & Ors There is a conflict of interest where the 2nd Defendant had directed secret profits using the Plaintiff’s assets, therefore obtaining unjust enrichment from the same. In this regard, the 2nd Defendant was ordered to make compensation in the sum of RM500,000.00 to the Plaintiff for the losses caused. Conflict of interest: A situation in which employee conflicts with the company's interests and his or her own personal interests when performing company duties, which may harm the interests of the company and shareholders. REDLINE CASE 3 – CONFLICT OF INTEREST Study Case

17. In the daily management work, including but not limited to the following situations: Perfunctory, evasive and failure to handle work in a timely manner leading to serious consequences; Failure to take the initiative to make decisions, fail to follow up in a timely manner, or fail to effectively resolve major issues that arise within the jurisdiction; There is serious failure to implement management actions clearly required by company documents or systems; Abnormal problems reported by outlets/customers/partners/employees are ignored and neglected, and no feedback is given and the problem is not solved for a long time, which has an important impact; Being passive and slacking off during work (such as sleeping, playing games, etc.); Inaction: Another form of corruption. Incorporate inaction into supervision management, combat lazy administrative behavior , and enhance the sense of responsibility and enterprising spirit Malaysia Smelting Corp Sdn Bhd v Kesatuan Kebangsaan Pekerja-Pekerja Perusahan Pelaboran Logam [1989] 1 ILR 565 The Court ruled that employee sleeping on duty, particularly when the employee’s role is an operator whose principal duty is one of vigilance to ensure his works are attended to, constitutes a major misconduct and therefore, the termination and dismissal of his employment is justified. REDLINE CASE 4 – INACTION Study Case

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