Corporate Social Responsibility

Corporate Social Responsibility

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IFS Capital (Thailand) PCL (“the Company” or “IFS”) recognizes the importance of Social and Environmental Responsibilities, Consciences under Corporate Governance Principles (CG), and simultaneously takes into account the benefits to stakeholders. The Board of Directors of the Company therefore has set Corporate Social Responsibility (CSR) to be a part of the Company’s policy as well as supported the improvement and implementation of CSR towards the creation of CSR in process, which is vital for the sustainable development and success as well as the value added to the Company in the long-run. The Company’s guidelines for CSR and the activities of CSR in 2015 are as follows:-

Guidelines for Corporate Social Responsibility

  1. Fair Operating Practices
    The Company has adhered to the values of business treatment that are fair to all relevant parties to put mutual trust and maintain sustainable relationship with business partners in the long run. It establishes the Code of Business Conduct, which is incorporated into the Company’s Compliance Manual to provide guidelines for honest and fair conducts for directors, management and staff of all levels including the following aspects:
    • Conflict of Interests: IFS’ directors, executives and employees shall refrain from any activities or transactions that may result in conflict of interests with the Company. They shall not put their personal interest before the Company’s, nor shall they accept returns, such as gifts or entertainment, that may result in conflict of interests with the Company or the Company’s clients.
    • Financial Reporting:IFS’ accounts recording and financial reporting shall be accurate, complete and in a timely manner in accordance with the generally accepted accounting standards.
    • Confidential and Insider Information:IFS’ directors, executives and employees shall avoid using insider information for personal benefits and/or giving such information to others to be used in the trading of the Company’s securities or for other purposes.
    • Compliance with Relevant Rules, Laws and Regulations : IFS’ directors, executives and employees shall arrange to have an efficient internal control system to ensure that the Company fully complies with the relevant rules, laws and regulations.
    • Treatment of Suppliers and/or Creditors:IFS’ directors, executives and employees shall treat the Company’s suppliers and/or creditors with fairness and equality. They shall refrain from demanding, accepting or paying of dishonest benefits in dealing and negotiating with suppliers and/or creditors
    • Treatment of Competitors: IFS’ directors, executives and employees shall behave under the framework of fair competition.

    IFS had arranged training programs on business ethics for the employees. Moreover, the Company has established a Compliance Manual to review and report the findings to the Board of Directors.

  2. Respect on Human Rights and Labor Justices
    The Company places great importance to the respect of human rights and labor justices as it is the foundation of human resource development and we believe that the success of the Company is led by each individual’s creativity and good teamwork. Every employee is treated equally, fairly and without discrimination and offered the opportunity to develop himself/herself for professional advancement. In order to serve the business aims of the Company, the selection criteria for employees are based on the required level of competency, such as leadership and functional competencies. To motivate employees and build up organizational strength, every employee has opportunities for career path advancement both vertically and horizontally by exercising no prejudice against any person from a personal relationship. The Company emphasizes “promotion from within” for available job positions. Only if there is none well suited within the organization will hire from outside come into consideration. The company supports and respects the protection of human rights by monitoring businesses that will violate human rights as well as promoting the surveillance of human rights compliance. Moreover, the Company offers a proper remuneration policy and a fair and motivating remuneration structure.
  3. Responsibility to Clients
    The Company places absolute importance on responding appropriately to the needs of our clients which is the important key to earning trust and establishes the Code of Business Conduct towards Clients as follows:
    • IFS’ executives and employees shall deliver products or services with quality or exceed clients' expectations at fair conditions.
    • IFS’ executives and employees shall give correct, adequate and timely product and service information to clients to facilitate their decision making without overstating actual facts whether in advertisements or communications through other channels, which may cause clients to misunderstand the quality, value or any conditions attached to such products or services.
    • IFS’ executives and employees shall keep clients' secrets confidential and shall not improperly use the confidential information for personal interests or for the interest of other related parties.
    • IFS’ executives and employees shall promptly respond to clients' needs and shall implement an efficient system and procedures for submitting clients' complaints regarding the quality of products and services.
  4. Community and Social Development
    The Company highly values the development of society and community for a better quality of life together with high-level of ethical and moral operation standards. Each year the Company set aside a budget relating to community and social development in the Corporate Plan.
  5. Good Corporate Governance
    The Company has upheld the principles of maximum accountability, transparency and equitable treatment to create sustainable value to all stakeholders. The details of the CG has been presented separately in the topic of Good Corporate Governance in this annual report and the policy of CG has also been published in the website under "Investor Relations" and "Corporate Governance and the policy of CG” has also been published in the website.
  6. Anti-Corruption
    As the Company's business is in Finance, it is highly committed to conducting its business with integrity and transparency as well as compliance with good practices in corporate governance. The Company is opposed to all forms of corruption as unethical behavior erodes free and fair competition, and impedes economic and social development. The Company encourages its directors, executives, employees and all other relevant parties to comply with the Anti-Corruption Policy of the Company, as well as to cooperate with and participate in the Corruption Prevention Network to ensure that the Company conducts its business based on the principles of Good Corporate Governance, transparency and fairness to all stakeholders.
  7. Environment Conservation
    IFS aims for growth that is in harmony with the environment and places great importance on creating a mindset for energy and environmental conservation awareness among employees. To do so, the Company has held several awareness activities that are practical and concrete, such as energy-conserving, recycling and reducing electricity usage campaigns.
  8. CSR Innovation
    The Company encourages the development and distribution of innovations that respond to the economic, social and environmental objectives of all stakeholders, and increase the value of various processes to create good opportunities in the returns of stakeholders which will lead to achieving success and sustainability throughout the business.

Reports on the Activities of CSR

IFS had been established for 25 years. The Company’s mission is to commit to be a responsible corporate citizen along with being the leading specialist in providing factoring and financial solutions to local businesses and entrepreneurs. IFS has adopted a framework of “Dedication to Mutual Success” to promote the Company’s CSR Activities throughout the organization in order to be a driving force across functional systems. Our strategies are as follows:

  1. Dedicated to Service through Products or Services Development
    • The Company continues to grow its core business of factoring and equipment finance and will explore new financial products and services to expand its revenue base as well as exploring the opportunity for expansion to the Indo-China Region or CLMV countries.
    • As the objective of our business is to support the growth of SMEs, we plan to open provincial branches to help develop SMEs at the regional level in the medium term.
    • The Company has acquired a new factoring software, which is web-based system to help improve the efficiency of resource utilization and gives the clients more convenience, reduces the clients’ travelling time, and reduces the use of paper by allowing the clients to see their account status through the internet.
  2. Dedicated to Efficiency through Effective Process Development
    • The Company has revised and updated its procedures and approving authority limits for credit facilities to be more efficient. These procedures have been implemented since January 2016.
    • The Company has declared its intent to join the Private Sector Collective Section Coalition against Corruption Council (CAC) and became a member no.317. IFS opposes all forms of corruption by encouraging its directors, executives, employees and all other relevant parties to comply with the policy and distributing brochures to all our clients in order to build understanding of such intention between us. IFS will also cooperate with and participate in Corruption Prevention Network to ensure that the Company conducts its business based on the principles of Good Corporate Governance, transparency and fairness to all stakeholders. For the next step, the Company will apply as a certified company from the CAC in 2016.
    • The Company is in the process of preparing its Succession Planning to the Risk Management Committee for deliberation in mid-2016.
    • The Company has initiated the clean desk policy to reduce the risk of unauthorized access, loss of and damage to information during and outside normal working hours.
  3. Dedicated to All Stakeholders through People Development
    • The Company offers a proper remuneration policy and a fair and motivating remuneration structure. The Company utilizes a mixed compensation structure to match with the type of job or specialization required in the job. Such remuneration packages include salary, variable incentives, bonuses, provident fund, social welfare, medical allowance, health insurance and other benefits. In 2015, the Company has a turnover rate of 9.09% (approximately 7 staff out of 77), which is considered low.
    • The Company provides ongoing staff development as employee is the key resource of the Company. To enhance personnel competency, the Company regularly holds training programs conducted by trainers from both inside and outside the organization. In addition, IFS also invited specialists in some particular topics to share their knowledge at the Company’s annual seminar regularly.
    • The Company provides an appropriate workplace health promotion and safety protection system which helps foster clean workplace environment, prevent the incidence of work related injuries and disease, increase the green area within the office and promote wearing disposable masks when necessary to protect public health in the workplace.
    • The Company highly values the development of society and communities, together with CG-based operations. In 2015, IFS’ CSR activities include:
    • The Company went to Ban Muang Mai School in Nan Province to present scholarship for poor students as well as to donate teaching equipment and supplies to the school.
    • The Company supported Plookchit School (a public school nearby the Company) who organized the school’s activities on National Children’s Day by giving scholarships as well as gifts to their students on Children’s Day.
    • The Company supported the Coral Reef Restoration Project by encouraging staff to plant coral reef at Nang-Rum Beach in Chonburi Province.
    • The Company donated to the Royal Kathin on behalf of His Majesty the King at Wat Bueng Pra Lan Chai, Roiet Province organized by Bangkok Bank, and donated to support earthquake victims in Nepal.