EN TH

Dear shareholders and stakeholders,

In 2019, the Corporate Governance and Social Responsibility Committee considered and acted the following tasks as stipulated in the Company’s Regulation on the Corporate Governance and Social Responsibility Committee:

1. Review the Group’s corporate governance policy: The adjustments to the policy were proposed and approved by the Company Board, to be in line with the Securities and Exchange Commission’s governance practices for listed companies that stress the Board of Directors’ role as the organizational leader who must lead the organization towards sustainable value growth together with building confidence among investors and lifting the Company’s governance practices to international standards. The Company participated in good governance-related assessment programs such as the Assessment of Corporate Governance Report of Thai Listed Companies, ASEAN CG Scorecard, and Annual General Shareholders’ Meeting Assessment. The Company ably maintained outstanding scores and recommendations from these assessments were considered and applied as deemed appropriate.

2. Corporate governance plans: The Corporate Governance Working Group action plan was reviewed and approved; along with development and training program to boost employees’ understanding in good governance practices and anti-fraud and corruption practices; activities to promote governance like communications through newsletters and other internal channels; and improving governance performance by benchmarking the Company’s practices against the principles and guidelines for listed companies and other companies’ assessment criteria and practices.

In raising awareness, the Committee followed the Company implementation in various forms and continuous approaches including newsletters to communicate with employees; exhibitions to promote awareness in safety, occupational health and work environment; energy and environmental conservation; healthcare; working with integrity and responsibility; orientation for new employees; E-learning; to promote self-learning and communications in writing with subsidiaries and affiliates for corresponding actions.

3. Anti-fraud and corruption: Preventive measures remained in focus. The Company’s Code of Conduct was reviewed concerning complaint measures, reporting channels and whistleblower’s protection. The Committee ensured communications with employees to raise their awareness; and tackled risks that appeared in Fraud Risk Register by, for example, improving the work process, relevant orders and practices. Early 2019, the Company’s certified membership in Thailand Private Sector Collective Action Coalition Against Corruption (CAC) was extended for 3 years until 2021.

4. Social and environmental project plans: Plans have consistently implemented covering local and national levels with 2 main goals: environment conservation and rehabilitation and enhancement of people’s quality of life. The projects have initiated based on adoption of the late King Rama IX’s philosophy on sustainability and the United Nations Sustainable Development Goals. The long-term flagship project is set to promote community forest management and strengthen community to rehabilitate and conserve national forests. Another projects seek to promote learning efficiency of children and the quality of life for the elders residing in Nonthaburi province, where the Company’s head office is located. Employees are also encouraged to join volunteering programs, as a way to share and benefit society and strengthen bonds with communities.

5. Development of corporate sustainability: Emphasis was placed on sustainable growth through a balance in economic, social and environmental dimensions under international standard governance practices. The Company was 1 of 98 listed companies in Thailand Sustainability Investment (THSI) 2019, the fifth consecutive year in a row. In the announcement of the SET Awards 2019, the Company won “Rising Star” Sustainability Excellence Award, among listed companies with market capitalization between Baht 30,000-100,000 million. It also gained sustainability assessment scoring 94 points which were higher than the previous year and remained in the industry’s Top Quartile. Aside, its sustainability report, which was recognized “Outstanding” in 2013 and “Excellent” in 2017, won the top prize of Sustainability Disclosure Award in 2019. The Company has also been recognized for its social and environmental programs.

6. Human Resources Development as an internal stakeholder: Recommendations were passed to the Management to set human resource development plan. It is found that human resource management is a crucial and needed to be continuously developed in line with the Company’s future growth path. Family atmosphere should be established for compassionate cooperation. Employees are entitled to a work and life balance. Cross-functional jobs are recommended to promote positive understanding towards others, strong teamwork spirit, and engagement with the organization. They, as key drivers, also support the Company’s expansion and fill up executive positions vacated due to retirement.

The Corporate Governance and Social Responsibility Committee has strong confidence that corporate good citizenship that emphasizes responsibility towards society and the environment both in production process and through the conservation of natural resources and the wellbeing of communities and society, as guided by good governance best practices, will be a key to success in creating growth and values for stakeholders in a stable and sustainable manner.

Mr. Chuan Sirinunporn
Chairman of Corporate Governance and
Social Responsibility Committee