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MARKETPLACE PRACTICES :
STAYING SENSIBLE
&
RESPONSIBLE
Marketplace Practices
Code of Conduct: Upholding High
Ethical Standards
We are committed to adhering to local laws and regulations
and to acting in accordance with our own standards. Our
employees are briefed on our Code of Conduct which
details our expectations. We have a whistleblowing
mechanism in place for our stakeholders to report
incidents that violate the code. In FY13, we received nine
complaints. All reports were investigated and as a result
four employees were given warnings and one resigned to
avoid disciplinary action.
Supplier Code of Conduct: Bringing
the Best Out of Business Partners
Being a supplier to GAB requires excellence and integrity.
Our Code of Conduct for vendors and suppliers outlines
our expectations; in addition to commercial requirements,
our Code of Conduct outlines expectations of our vendors
and suppliers in their labour standards and policies,
environmental policies, health and safety regulations, and
applicable laws.
We meet with our suppliers once every two years to seek
input and advice on how we can improve as a business
partner. In FY13, we conducted a Supplier Satisfaction
Survey to gain feedback on our performance as an
organisation. We were rated highly for our professionalism
and integrity, and were the favourite business partner for
a majority of our suppliers. However, suppliers wanted to
see improvements in our speed of decision-making and
response times, as well as shorter credit terms.
We also encourage our suppliers to be more responsible
in their operations. At our biennial Supplier Engagement
event, we always recognise suppliers who showcase
extraordinary involvement in environment and community
initiatives by presenting them with a GAB Most Responsible
Supplier Award.
Duties & Taxes: Contributing to
the Greater Good
By far our biggest contribution to the economy and
communities of Malaysia is our payment of customs
and excise duties as well as taxes, which amounted to
RM902 million in FY13. We believe that this supports
the government-initiated Economic Transformation
Programme that will help turn the country into a high-
income nation by the year 2020.
However, we also believe that the investment we make
in our people as well as in our suppliers and business
partners will help the country move towards this goal,
not just through financial contributions, but also through
capacity and knowledge building.
Big Win: Drink Sensibly
Drink Sensibly (DS) is our flagship initiative to encourage
enjoyable and responsible drinking. As a rule, all GAB brand
communication materials carry a DS reminder. Now in
its fourth year, the DS programme is designed to reach
consumers directly through public campaigns and retail
outlets. Our DS programme begins with our employees,
undergoing education awareness of alcohol and its effects
on the body. The campaign has now reached over 30,000
consumers and is supported by more than 5,000 frontline
staff in retail outlets who have been trained in sensible
serving and drinking.
Big Challenge: IT Infrastructure
An 18-month IT infrastructure project was initiated to
simplify and streamline our business into two new systems
from four previously. These new systems will enable us
to obtain more in-depth commercial data, allowing us to
better fine-tune our commercial operations and thereby
becoming more effective and efficient. The new systems
went live at the end of 2012.
As with the implementation of any new systems, we
underwent several months of teething issues before
it was stabilised. As it was a live system, changes and
upgrades had to be done incrementally so as to not cause
major disruptions. We provided support services and
engagement with our distributors on the ground in order to
resolve problems in an expedient manner. As of September
2013, all distributors are now able to conduct entries and
verification online. Through this process we have learned
many valuable lessons which we will be able to leverage
on in the future. Our Business-IT transformation is still a
work in progress as we continue to leverage on the right
technology to provide the necessary data to operate in the
marketplace.
In FY13, we launched a mobile app to ensure that our
campaign touches more consumers. In addition to fun
activities, the app also contains practical tools such as a
drink measurement tool and taxi booking features.
We also now mobilise our DS Angels at major GAB events.
The DS Angels encourage consumers to download the DS
mobile app while educating and providing DS tips, handing
out bottles of water, and helping consumers book taxis
home after a night out.
We are looking to revamp our Drink Sensibly campaign over
the coming years. Our aim is to streamline the campaign
by adopting a more effective approach such as engaging
consumers outside of drinking hours.
Renuka Indrarajah, Corporate Relations and Legal Director of GAB
(second from right) officiating the launch of Malaysia’s first-ever
Drink Sensibly mobile app.
DS Angels engaging football fans on sensible drinking behaviour at
the Tiger FC Big Away Game in Sunway Giza.
ANALYSIS OF
GROUP REVENUE
(for nancial year ended
30 June 2013)
Excise & Customs
Duties & Sales Tax
49.59%
12.98%
4.24%
Taxation
6.50%
2.42%
Raw Materials
& Packaging
Costs
Depreciation
& Amortisation
Profit After
Taxation
4.67%
Staff Costs
19.60%
Distribution, Sales
& Admin Costs
17
16