Annual Report 2019

Corporate Governance & Conduct To uphold our stakeholders’ expectations, it is imperative for us to have a structured approach designated for sound governance and management within the Group to meet specific targets. We strive to have our own ethics and anti-corruption practices in place that ensure the adoption of a transparent and fair management culture. Code of Conduct AirAsia has a Code of Conduct that sets out the standards and ethics for employees to adhere to, which covers workplace, working culture, conflict of interest, confidentiality of information, good practices and control, duty and declaration Refer to the SORMIC on page 195 for further information Whistleblowing Policy AirAsia conducts internal control, fraud and whistleblowing awareness briefings to all new hires through the Regional Orientation Programme held in collaboration with the People & Culture Department. GIAD also shares information and articles regarding whistleblowing and fraud through AAGB’s internal sharing platform, Workplace, which is accessible to all employees Refer to the SORMIC on page 195 for further information Conflict of Interest AirAsia endeavours to ensure accountability and transparency in the conduct of our business operations as well as our employees by promoting the adoption of good corporate governance practices eliminating possible conflict of interest, where all policies and procedures are clearly communicated to all Disciplinary Policy AirAsia has established procedures to handle any breach of established norm/discipline, ensuring impartiality and fairness, to support a fair and non-threatening working environment Workplace Search Policy AirAsia Group Security has the right to conduct searches on Allstars in areas where AirAsia operates to prohibit misconducts Remuneration Policy Provides clear direction regarding remuneration structures and practices consistent with principles and market practice for both the Board of Directors as well as employees Board Diversity Policy AirAsia sets out to diversify our Board of Directors by ensuring a broad dimension of diversity is present to guarantee varying viewpoints. It is also in compliance with the Corporate Governance Blueprint 2011 by the Securities & Exchange Commission (“SEC”) Our Code of Business Conduct published on our website has in place a Conflict of Interest Policy which provides guidelines and procedures in relation to conflict of interest including the receipt or offering of gifts to enable accountability and transparency. Lastly, any instances of bribery or corruption may be reported by an employee through the procedures set out in our Whistleblowing Policy. We have established a specific policy regarding anti-corruption and bribery which addresses the new corporate liability pursuant to the amendments to Section 17A of the Malaysian Anti- Corruption Commission Act 2009. Types & Numbers of Ethical Breaches in FY2019 Abuse of Authority Abuse of Company Benefits Misappropriation Conflict of Interest 0 2 4 6 8 10 12 14 16 18 20 Drug Theft Harassment Final Warning Letter Verbal Warning Self-Resignation Warning Letter Department Warning Letter Department Reprimand Letter Caution Dismissal Department Demerit Briefing Note AIRASIA GROUP BERHAD ANNUAL REPORT 2019 137 SUSTAINABILITY STATEMENT