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Social
We are committed to creating positive impacts on the social systems within and outside its companies. Employees are one of the Group’s top priorities. We enhanced our human talent with development programmes that benefit the community in terms of business values. Improving the performance of human capital and their health & safety has always been crucial to the Group. At the same time, respecting human rights while improving workforce diversity, engagement and inclusion remain the Group’s focus as well.
Diversity & Inclusion
We are committed to creating a workplace where diversity and equality of opportunity are actively promoted and where unlawful discrimination is not tolerated. We recognise the business benefits of having a diverse workforce – attracting and retaining the best people for the job, supporting and delivering high performance and increasing the effectiveness of the company. To this end, we aim to build and maintain a working environment which is inclusive of all and values diversity. We recognise the importance of providing equal opportunities for all regardless of sex, race, ethnic origin or nationality, marital, pregnancy, maternity leave, disability, age, religion or belief, trade union membership, part-time working or fixed-term employee status. We will ensure that all staff have the opportunity to develop to their full potential.
Human Rights
Human rights are universal, and every employee deserves to be treated with dignity and have their interests considered equally. The Group maintains its commitment to continuously improving the welfare of all employees and that includes giving them a fair, respectable, and safe workplace for employees across all levels in the organisation. The Group is familiar with UN Guiding Principles on Business and Human Rights, the ILO Declaration on Fundamental Principles and Rights at Work and the UN Universal Declaration of Human Rights covering freedom of association and the right to collective bargaining, abolition of forced labour and child labour issues and zero tolerance for any form of discrimination. The Group’s commitment to human rights is aligned with Hong Leong Manufacturing Group’s Code of Conduct and Ethics, which applies to all employees.
Child & Forced Labour
The Group strictly complies with the fundamental requirements of the Children and Young Persons (Employment) (Amendment) Act 2010, and Employment Act 1955. The Group is against the use of child labour, forced labour, slavery, involuntary prison labour, and trafficking of persons at all times. Every employee is treated fairly with no bias at any work.
Labour Rights
These laws govern the protection of labour rights through fair payment of wages, fair working hours, and fair treatment of all without tolerating any form of discrimination on race, colour, gender, language, religion or political opinions. All workers are given an employment agreement that conveys the conditions of employment in a language they understand. To ensure equality for all, the most suitable candidates are selected, regardless of gender, age, race, religion, ethnicity, and disabilities. HCMT and HCCT comply with the applicable anti-discrimination laws and positions were awarded based on qualifications, experience and potential. The Group has shown concerns for freedom of association, the right to collective bargaining and discrimination in the workplace to protect the civil freedoms of the employees by local laws and regulations. Employees are free to join a trade union of their choice provided they abide by local laws and the rules of the trade union. The Group strongly believes in promoting the development of employees. Improving human capital performance has always been a priority in the Group. In line with that, the Group seeks ways to build and improve skills among its workforce to deliver high-quality services and efficiency to its customers.
Learning & Development
We are committed to the growth and development of our employee and recognizes that continuous learning is one of the strategic investments for the retention of our competitive advantage. To maximize our investment, learning and development must be aligned with our business strategies and needs. HR department and the Department Heads have the responsibility to ensure that our funds are strategically invested in the areas that yield the greatest return for our business and in employees whom they wish to attract, retain and develop. We offer continuous support and training to grow & develop our employees because we value the crucial contributions every employee makes to our success. Our Learning & Development programs are divided into 4 quadrants, and we have adopted a 70-20-10 approach.
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Bullying, Harassment and Victimisation
We foster a work environment devoid of bullying, harassment, victimisation, and any form of unacceptable behaviour, promoting the dignity of our staff in the workplace. Our goal is to treat others as we would like to be treated. We acknowledge that all staff have the right to:
• Be treated fairly and with respect.
• Work without the fear of being bullied, harassed, or victimised.
• Feel safe in their work environment.
• Have access to a fair process for addressing instances of unacceptable behaviour.
HCIB has taken a proactive stance in tackling workplace bullying and harassment by rolling out targeted training for managers. This training is meticulously designed to arm management with the knowledge and skills required to address these serious issues effectively. Besides that, the training also covered different topics including grievance, sexual harassment and force labour. The aim is to create a supportive atmosphere where employees feel confident to report incidents and trust that their concerns will be managed with the utmost care and professionalism.
Content of the training includes:
• Identification of bullying and harassment behaviours.
• Legal and policy frameworks pertaining to workplace conduct.
• Feel safe in their work environment.
• Techniques for empathetic listening and communication.
• Processes for confidential and supportive reporting.
• Protocols for conducting investigations with integrity.
• Steps for implementing disciplinary and corrective measures.
Time Management System (TMS) to monitor employee working hours
Our organisation employs a centralised Time Management System (TMS) to meticulously record and monitor employees' working hours and time-off. This advanced system allows for the thorough analysis of work hours, promoting a balanced workload across our team. It's designed to identify instances of excessive working hours undertaken without prior approval, prompting a follow-up to address and rectify the situation. This approach helps us in maintaining a balanced workload but also fosters a supportive work environment by prioritising the reduction of excessive working hours, thereby fostering a culture of efficiency and well-being.
HLMG Rewards Strategy
Hong Leong Manufacturing Group follows the total compensation philosophy of Hong Leong Group, encouraging a high-performance culture and fostering equity. Our rewards strategy offers competitive remuneration, benefits, and career growth opportunities, focusing on a mix of base pay, performance incentives, and long-term benefits to align with business goals. We provide competitive pay within our industry, incorporating cash and non-cash elements to align employee performance with the company’s strategic direction. This supports a fair compensation for all our employees. We practise no prejudice. Hong Leong Group’s recruitment policy ensures that every candidate is treated fairly; and that everyone gets an unbiased shot at any job vacancy. This policy applies to all be he/she a permanent employee, temporary or contract worker of any of Hong Leong Group’s companies.
To ensure equality for all, the most suitable candidate will be picked - man or woman, regardless of race and religion, and/or whether or not one has a disability. The respective companies within the Group shall comply with the applicable anti-discrimination laws and generally accepted practices in the countries in which they operate, and positions will be awarded based on qualifications, experience and potential
Instances of labour standards non-compliance
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For FY2023, HCIB reported zero incidents of labour standards non-compliance, reflecting our adherence to both Malaysian labour laws and HCIB's labour policies. Our HR department remains vigilant in maintaining compliance, underscoring our engagement to maintain a fair and lawful workplace. No further actions were required as there were no non-compliance incidents reported in our organisation.
Risk Assessments regarding labour issues
In conducting risk assessments on labour issues within HCIB, our analysis encompasses a range of indicators to carry out comprehensive due diligence for potential new operations and projects, as well as the ethical management of existing operations. Critical areas included in our risk assessment are indicators such as 'Abuse of cultural/religious beliefs', 'Restriction of movement', 'Isolation', 'Excessive overtime', and 'Abuse of working and living conditions'. For new projects, we scrutinise these indicators to pre-empt any potential risks, taking a proactive approach to identify red flags concerning labour conditions, ethical recruitment, working hours, and living conditions.
For existing operations, we monitor these indicators to detect any ongoing issues, thereby maintaining a workplace which is free from exploitative practices and complies with labour laws. We have effectively analysed and managed the consequence, likelihood, and risk level associated with each indicator, which range from trivial to critical, to safeguard workers' rights and uphold the organisation's reputation. Furthermore, we conduct reviews and implement updates to the assessment protocols as necessary to respond to changing conditions and new information.
HCIB and Union Collaboration
The Trade Unions Act 1959 (Act 262) upholds the rights of workers to form and join unions and mandates their operations be conducted with openness and integrity, fostering a culture of peaceful dialogue between trade unions and employers.
Aligned with this Act, HCIB has an in-house employee union. The union selects a leader who has the right to engage with company management, serving as a vital link for voicing the challenges and concerns of our employees. Through this engagement, we proactively address and resolve issues as they arise, emphasising our support to a harmonious and collaborative workplace.
The union's role extends beyond representation—it participates in crafting fair employment terms and advocates for equitable labour standards. It also plays a key role in driving the professional development of our workforce. In partnership with the union, HCIB's management team wants to foster an environment that supports the growth and well-being of every team member, contributing to the company's resilient and prosperous future.
It should be noted that HCCT Union signed a collective agreement with the Non-Metallic Mineral Products Manufacturing Employees’ Union, while HCMT Union signed a memorandum of agreement with the Cement Industries Employees Union.
HCIB and Inclusive Employment
HCIB supports the employment of underprivileged groups, including individuals from deprived backgrounds, those with poor social status, and individuals lacking formal education or qualifications. We are focused to contributing positively to the local community by offering employment opportunities to a segment of our support staff who may not possess formal qualifications. This approach underlines our believe in inclusivity and social responsibility, so that everyone has the opportunity to find meaningful work and contribute to our collective success.
We practice no prejudice. Hong Leong Group’s recruitment policy ensures that every candidate is treated fairly; and that everyone gets an unbiased shot at any job vacancy. This policy applies to all be he/she a permanent employee, temporary or contract worker of any of Hong Leong Group’s companies.
HCIB Diversity
HCIB has taken action to improve workforce diversity and provide equal opportunities in various areas, addressing discrimination based on:
1. Race
• HCIB has created a workforce that reflects a mix of different ethnic origins and nationalities, aiming for inclusivity and equal opportunities regardless of race or nationality. HCIB celebrates Chinese New Year, Hari Raya Aidilfitri and Deepavali annually, embracing the diverse celebrations of our workforce.
2. Religion
• The company fosters a workplace environment that actively promotes equality of opportunity and strictly prohibits any form of unlawful discrimination, which includes religious beliefs. We provide adequate space for our Muslim employees to perform their daily prayers. Additionally, we have designated separate halal and non-halal facilities in our food pantry, respecting the religious practices of our employees.
3. Gender:
• HCIB recognises the importance of gender diversity, particularly in operational roles traditionally held by men. Currently, women make up 28% of our executive category. We are aligned with the national vision to achieve a minimum of 30% female representation in decision-making positions across all sectors, including business. The group also celebrated women’s day to appreciate the uniqueness and resilience of female employees.
4. Age:
• In line with the Hong Leong Group Recruitment Policy, all candidates for senior management positions are evaluated equally, regardless of gender, race, religion, or disability, with appointments based on qualifications, experience, and potential. Additionally, our senior management team reflects a wide age range from the thirties to the fifties, demonstrating our approach to age diversity in leadership roles.
5. Disablities:
• HCIB recognises the importance of providing equal opportunities without discrimination against disabilities. For instance, in evaluating any new appointment of senior management (“SM”), the Company is guided by the Hong Leong Group Recruitment Policy where all potential candidates are given equal opportunity regardless of gender, race, and religion and/or whether or not one has disability. SM positions are awarded based on qualifications, experience and potential.
6. Nationality:
• HCIB cultivates a workplace that values diversity and inclusivity, where opportunities and career advancements are based on merit rather than nationality. This commitment to equality is evident across all organisational levels. From general workers to senior management, HCIB employs foreign nationals in a range of roles, underscoring our dedication to harnessing global talent and insights to enhance our workforce and fuel innovation.
Surau (prayer room) for our Muslim employees in Gopeng Plant
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Community Investment and HCIB Business Principles
HCIB is principally an investment holding company whilst the principal activities engaged in by its subsidiaries are that of investment holding, manufacturing and sale of cement and cement related products and manufacturing, marketing and sale of concrete and concrete related products.
HCIB’s business value chain model highlights the integration of financial performance with environmental and social responsibility to deliver value beyond just profits. By balancing the interests of various stakeholders and working towards common goals, the Group aims to build a resilient and prosperous business that serves the needs of both present and future generations.
HCIB’s business value chain model
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HCIB's community investment focus areas are intricately linked to the company's business strategy through a concerted emphasis on education and infrastructure support. By channelling resources into scholarship awards, local school sponsorships, and infrastructure improvements, HCIB advances educational opportunities and local community development, reflecting the company's strategic efforts to creating sustainable value for a broad range of stakeholders. These efforts are in alignment with HCIB's vast business strategy, ESG goals, underscoring a business model that seeks to achieve profitability while fostering social well-being and enhancing the quality of life within the communities it serves.
Children’s Rights and HCIB Business Principles
In addition to educational support, HCIB contributes to local communities by improving school infrastructure, which not only provides immediate benefits but also lays the groundwork for sustainable development and the protection of children's rights to access education. By sponsoring events and providing necessary resources to schools, HCIB helps that children have access to a safe and conducive learning environment.
HCIB’s strategic approach to community investment, particularly in education, aligns with the broader international framework of children's rights. It positions the company as a proactive partner in fostering an environment where children can learn, grow, and thrive. This holistic view not only aligns with HCIB's sustainability goals but also demonstrates a clear linkage between the company's business strategy and its dedication to upholding and advocating for the rights of children within its sphere of influence.
Health and Safety
Independent verification by a third party for health and safety data
Annually, the health and safety data at Hume Cement is audited by SIRIM, an independent third-party auditor. HCMT’s plant in Gopeng, Perak, has obtained ISO 45001:2018 certification, which adheres to OHSMS standards for the manufacturing of clinker and cement, including quarry operations. Additionally, SIRIM QAS International has granted HCMT the IQNet certificate for the effective implementation and practice of OHSMS.
SIRIM Audit on Health and Safety data in HCMT in 2023
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By obtaining certifications and adhering to industry standards, we highlight our dedication to maintaining high health and safety standards, ensuring the well-being of our employees, and benchmarking our performance against recognised industry standards.
Certificate, ISO 45001:2018
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Health and safety training
Besides this, in FY2023, all 721 staff members at HCIB participated in specific and general training sessions that encompassed various safety topics. These topics under general training for HCIB staff include workplace safety standards, emergency response procedures, health and safety regulations compliance, risk assessment and management, as well as first aid and CPR. General trainings, including induction for new employees and 5S trainings, incorporate safety elements. The inclusion of safety elements within our general trainings underscores the importance of creating a secure working environment. By integrating safety into everyday practices and procedures, employees are constantly reminded of the significance of maintaining a safe workspace.
