Annual Report 2020

Supported by these policies and strong corporate governance, we investigate and monitor ethical breaches with the cooperation of the Internal Audit Department and Employee Relations, People & Culture Department. In 2020, we carried out thorough investigations on all unethical/non-compliance cases that were reported before proceeding with the appropriate action. Sustainability Statement 90% of Allstars have acknowledged and understand the ABAC Policy Anti-Bribery & Anti-Corruption In response to the amendment to Section 17A of the Malaysian Anti-Corruption Commission (MACC) Act 2009, our Risk Management Department engaged an external consultant to conduct an analysis of bribery or corruption-related risks faced by the Group. The consultant’s report highlighted 21 gaps and areas for improvement which were progressively addressed throughout 2020. The Group’s stance on bribery or corruption is clearly reflected in the Board of Directors’ zero tolerance for any form of bribery or corruption in AirAsia. This is further reinforced by our Anti-Bribery & Anti-Corruption (ABAC) Policy, which all Allstars as well as vendors, suppliers and consultants are required to read and acknowledge. Further strengthening the ABAC Policy, our Whistleblower Policy has been reviewed to ensure alignment with the ABAC Policy. No changes were deemed necessary for the time being. Fraud 15 9 8 0 20 40 60 58 Harassment Misappropriation Warning Final Warning Demotion Dismissal No Further Action Others Abuse of Company benefit/property Types & Incidence of Ethical Breaches in FY2020 Number of cases Much emphasis has been given to the new “No Gifts’’ principle of ABAC, since a relatively large number of Allstars have external dealings. The new guidelines require Allstars to refuse or return any offers; but should this not be possible, the gifts are to be declared to the Legal and Compliance Department or handed over to AirAsia Foundation as charitable donations. In 2020, one case of unsolicited gifts was declared by the Engineering Department. The items were handed over to the Legal and Compliance Department for further action. Following its launch, the ABAC Policy was reviewed by AirAsia’s Group Internal Audit department which recommended several improvements that have been incorporated in an updated document published in December 2020. Further recommendations will be addressed in 2021, mainly aimed at improving understanding and awareness among Allstars. Communication and Training Since 2018, all new hires are required to attend online and offline Code of Conduct training. The ABAC Policy was added into AirAsia’s Workday system which pushes notifications to each individual Allstar. As of February 2021, 90% of Allstars had acknowledged that they are aware of and understand the policy. The aim is to reach out to the remaining 10% by Q1 2021. In 2021, we will also translate the policy into Bahasa Malaysia, Bahasa Indonesia, Thai and Tagalog for ease of understanding of Allstars Group-wide. Other than training, all AirAsia policies and procedures are available for easy reference on the Group’s intranet portal. 104 AIRASIA GROUP BERHAD