PRESENTATION AT ITC-ILO/ ACTRAV TRAINING COURSE 30TH NOVEMBER 2005 ISTANA HOTEL, KUALA LUMPUR Corporate Social Responsibility (CSR) Policy & Strategy Of TM Group By: MAT NORDI AWANG, HAJI GROUP HUMAN RESOURCE, TM

CSR - INTRODUCTION CSR is generally understood as the way a company achieve a balance or integration of economic, environmental and social imperatives while at the same time addressing stakeholders’ expectation; Generally seen as business contribution to sustainable development; CSR commitments and activities typically address aspects of company’s behavior with respect to key elements such as health and safety, environment protection, human rights, community development, consumer protection etc; Today’s stakeholders are increasingly aware of the importance and impact of corporate decisions upon society and environment.

CSR – HISTORICAL CONTEXT Mid 20th. Century - CSR being discussed by Mgt. Gurus. -Economist Milton Friedman outlined his views that social responsibility of corporations is to make profits within the boundaries of societal moral and laws. Last decade - CSR - related concepts such as corporate citizenship have expanded due to new globalization issues and challenges.

CSR – DIVERSITY OF PERSPECTIVES EXAMPLE 1 : Globescan:- - supporting charities and communities; - responding to public concerns and viewpoints; - supporting progressive government policies. EXAMPLE 2 : OECD:- - employment and industrial relations; - corruption, - environmental management

WHY COMPANIES TAKING CSR ? Benefits to Company:- Stronger financial performance and profitability through operational efficiency gains; Improved relations with investment community and better access to capital; Enhance employee relations that yields better results – motivation, retention, learning and innovation and productivity; Stronger relationships with communities and enhanced license to operate. Improved Reputation and Branding

CSR - TELEKOM MALAYSIA BERHAD (TM) Embedded into our core values and principles and integrated into the way we run our business. In the early days of country’s development, TM’s core business of telecommunications fulfilled an essential social function in improving communication and accessibility. Today, in line with technological developments, TM supports and enhances efficiency and quality of telecommunications for trade and commerce as Malaysia moves into globalised era.

CSR - TM Over the years, TM remained committed to community programmes and has promoted excellence in many fields. In 2004, the Group was actively involved in various CSR initiatives, especially in events related to Sports, Education, Information & Communication Technology (ICT), Health and Social Services and the Environment.

TM’s - CSR INITIATIVES Sports:- - Langkawi International Nature Challenge - Formula One - Sarawak Regatta 2002 - Asian Youth Football Championship 2004 - SUKMA Education & ICT:- - Akademi NUTE - TM-Persama Mathematic Camp - MSC-APICTA Award - World Universities Debating Championship (WUDC)

TM’s - CSR INITIATIVES Community & International:- - LID (Langkawi International Dialogue) - 8th. IAP-MSC - Malaysia’s Consumer Day - 1st. Malaysia Radio Industry Award - Tsunami Disaster (RM6.7m in cash/kind)

Thank You