MBK: Sustainable Development Report 2018

FOR

SUSTAINABLE MBK PUBLIC COMPANY LIMITED 8th Fl., MBK Center Building, 444 Phayathai Rd., Wangmai, Pathumwan, Bangkok 10330 Thailand Telephone: +66 (0) 2853 9000 Facsimile: +66 (0) 2853 7000

GROWTH

www.mbkgroup.co.th

SUSTAINABLE DEVELOPMENT REPORT 2018

CONTENTS

02 06

24

RISK MANAGEMENT

VISION & MISSION MBK PUBLIC COMPANY LIMITED

25

EMPLOYEE CARE

COMPANY INFORMATION

32

RESPONSIBILITY TO CONSUMERS

36

COMMUNITY AND SOCIETY DEVELOPMENT

MESSAGE FROM THE PRESIDENT AND CEO

08 10 12

SUSTAINABLE BUSINESS MANAGEMENT POLICY OF MBK PUBLIC COMPANY LIMITED

ABOUT OUR SUSTAINABILITY DEVELOPMENT REPORT IN 2018

13 15 20

STAKEHOLDERS ENGAGEMENT

GOOD CORPORATE GOVERNANCE FAIR COMPETITION

50 58

62

ENVIRONMENT MANAGEMENT

INNOVATION AND PROMOTION OF INNOVATION FROM SOCIAL RESPONSIBILITY ACTIVITIES

INDEX OF SUSTAINABILITY DEVELOPMENT REPORT

SUSTAINABILITY REPORT 2018 MBK PUBLIC COMPANY LIMITED

MESSAGE FROM THE PRESIDENT AND CEO The world is changing rapidly today.

Our economy and society are not exceptions.

MBK Public Company Limited, as the leading company that operates its businesses in different major industries, operates with a strong adherence to good governance, legal compliance, business ethics and company’s code of conduct, consistent shareholders’ return, transparent management, and corporate responsibility to the society, environment, and other stakeholders.

Our practices aim towards achieving sustainable development, by leveraging the company’s expertise in value creation for the organization and society in tandem. In addition, the company has established policies on sustainable business development for internal guidelines and practices, which also include the company’s efforts on various environmental issues.

In doing so,

MBK has rolled out many projects that tying participation in taking care and responsibility of the environment into every internal and external process. The company continues to support energy conservation activities, encourage effective resource management and usage, and instill environmental conservation mindset in our employees, as well as educate our customers and the public alike, while expanding our partnership to maintain the right balance between business operation and environmental conservation.

In 2018, MBK Public Company Limited and its subsidiaries continued to drive different corporate social responsibility (CSR) activities that support the society, communities, and environment. Both CSR-in-process and CSR-afterprocess have been integrated in our operation under the three-pillar sustainable development model that the company has prioritized and operated by, namely:

Economic Aspect: The company plans to invest in enhancing its competitive capability to support future business opportunities, generate good business results to the organization, and provide substantial returns to the shareholders.

At the same time, its business expansion also helps stimulate the country’s overall economy, bringing about jobs and employment, while supporting tourism industry.

SOCIAL ASPECT : The company remains committed to the “Thai Organization with Green Heart” concept, by multiplying our support for the community and related organizations to create one strong united society. The company organized various activities to share relevant knowledge to the surrounding communities. Moreover, we also provided funding, in-kind support, and activity space to charities, government agencies, college students, and educational institutions to organize socially benefiting activities, in order to foster supportive relationship between government agencies and communities and drive the society forward. Additionally, the company also donated more than 40,000 bottles of water and provided products and activity space for more than 45 activities, including donation for various charities.

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SUSTAINABILITY REPORT 2018 MBK PUBLIC COMPANY LIMITED

ENVIRONMENTAL ASPECT : The company shared useful and practical knowledge in the management of garbage, wastewater, and energy with different communities to enhance their quality of lives. Through problem solving from within the organization and sharing with the public through various projects by MBK Spirit, the employee volunteer group, more than 500 members took turns in joining the communities in implementing more than 12 conservation projects. We promoted plastic waste separation and recycling through “Only Takes One Day To Do Good At Banglamung: the beach cleanup activity in Banglamung, Chonburi” project to raise awareness on trash issues around the seaside communities to uplift the beach landscape, while “MBK Water Conservation” project helped demonstrate the installation of household grease separator to instill the awareness on the proper household waste management to prevent wastewater leaking into canals.

Moreover, “MBK Create...Happy Farm For Community” project was largely focused on reused materials, such as golf cart tyres and plastic bottles, that are transformed into tools and equipment for vegetable farming to pilot green patches and safe food source within the community, and lastly “Big Cleaning Day” project, was organized in partnership with government agencies, to clean up sidewalks to reduce dust, enhance the cleanliness and safety of the urban landscape, and create good reputation for our country.

Additionally, the company also initiated “Separate, Reduce, Eliminate, and Start” project by installing waste separation bins in the office. The objective

was to promote waste separation behavior prior to throwing away for proper disposal, to reduce energy usage at home and office, to eliminate one-time use plastics, including straws, plastic bags, and use alternative containers, like stainless straws, lunchboxes, or fabric bags. At the same time, “Suk Suk” project also continued for the second year to raise employees’ awareness on the post-separation value of reusable trash. Through this project, employees contributed more than 3,000 kilograms of waste, which was used to produce recycled t-shirts for another project, “MBK REMAKEABLE - Changing Waste Into The Future.”

T-shirts were also donated for public benefits. Every project marked another important step in establishing MBK Public Company Limited as the private company with corporate responsibility towards all stakeholders. In the future, the company is committed to operate our businesses sustainably and strongly, while caring for the society and environment in a sustainable manner.

MR. SUVAIT THEERAVACHIRAKUL PRESIDENT AND CEO

3

WITH GOOD CONSCIOUSNESS

ขยะ เศษอาหาร

ขยะ ร�ไซเคิล

ขยะทั่วไป

SUSTAINABILITY REPORT 2018 MBK PUBLIC COMPANY LIMITED

VISION

“THE COUNTRY’S LEADING GROUP OF COMPANIES WHICH FOCUSES ON BUSINESS OPERATIONS AND INVESTMENT WITH SUSTAINABLE GROWTH FOR GENERATING REGULAR RETURNS.

MISSION 1

2

TO FOCUS ON INVESTMENT IN POTENTIAL BUSINESSES.

TO GENERATE RETURNS FOR INVESTORS REGULARLY.

6

7

TO MAKE CUSTOMER FEEL SATISFIED.

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3

4

TO RUN BUSINESS TO CREATE THE BRAND OPERATIONS WITH AND IMAGE OF THE TRADE PARTNERS ORGANIZATION SYSTEMATICALLY AND CONTINUOUSLY. FAIRLY FOR THE SAKE OF MUTUAL BENEFIT.

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TO ENCOURAGE TO EFFICIENTLY AND DEVELOP DEVELOP THE HUMAN THE HUMAN RESOURCES RESOURCES IN MANAGEMENT SYSTEM ACCORDANCE WITH AND INFORMATION BUSINESS EXPANSION TECHNOLOGY AND COMMITMENT. SYSTEM.

5 TO DEVELOP MARKET ING CONTINUOUSLY.

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TO DEVELOP THE INNOVATION FOR SERVICES.

TO HAVE PERFORMANCE ON A GOOD CORPORATE GOVERNANCE BASIS.

SUSTAINABILITY REPORT 2018 MBK PUBLIC COMPANY LIMITED

MBK YES IDEOLOGY IS CONSISTED M

B

K

Y

E

S

MODERN

BELIFE

KEYS

YOU

EASY-GOING

STYLE

MODERN

3 To have modernized thinking and actions. To have positive thinking to open up the modernization

BELIEF

3 The ability to build trust, credibility, and confidence of both internal and external customers

KEYS

3 To understand various needs of both internal and external customers, from all target groups

YOU

3 To have understanding and have access to both internal and external customers through

willingly. To ceaseless creativity. To understand changing technologies and human behavior.

Be determined to prepare for encountering the coming future. To drive the organization into modernization and staying ahead in business. To create value for customers regularly. by means of systems and the transparent culture, morality and ethics, honesty, sincerity, promise keeping, and responsibilities. All these make customers feel the Companyís professionalism which can respond to customers properly and exactly as expected. The Company holds to its own conduct with honesty for itself, work, the organization, and stakeholders, as well as holding to the moral conduct and never accept all forms of corruption. and all situations. To be always able to present various alternatives or options as responses to customers through providing goods and services which make them become impressed and feel that we are good colleagues (for internal customers) or their business alliance (for external customers). attention, notice, listening to, learning about customersí behavioró even its small detailsóand to be open-minded to accept the customersí needs which are various and changing. To have customer-centric need management through focusing on a response to each customer with the creation of customer lifetime value as well as focusing on benefits both customers and the organization mutually gain in order to develop and drive the organization to be always number one in customersí heart.

EASY-GOING 3 To build a good relationship with customers and colleagues. To facilitate the customers and

the colleagues to have easy access to us or conveniently contact us. To arrange the friendly environment and atmosphere. To have a good attitude and good feelings one another so that this sustainably leads to an impression and a mutual friendship.

STYLE

3 The ability to develop forms of working, goods, services, and personnel in the organization to

be different from other competitors. This always makes customers recognize and think of our organization prior to others.

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SUSTAINABILITY REPORT 2018 MBK PUBLIC COMPANY LIMITED

COMPANY INFORMATION Company Name : MBK Public Company Limited Nature of Business : Shopping Center and Real Estate Address : 444, 8th Floor, MBK Center Building, Phayathai Road, Wang Mai, Pathumwan, Bangkok 10330 Registered and Paid-up Capital : 1,694,923,000 Baht

ABOUT MBK GROUP

MBK Public Company Limited and MBK GROUP has presence and operates in eight different businesses:

SHOPPING CENTER BUSINESS – MBK CENTER, THE NINE CENTER RAMA IX,

PARADISE PARK SHOPPING CENTER, AND PARADISE PLACE, GLAS HAUS BUILDING COMPANY LIMITED AND GIAS HAUS RATCHADA COMPANY LIMITED

HOTEL AND TOURISM BUSINESS

– PATHUMWAN PRINCESS, DUSIT THANI

KRABI BEACH RESORT, LAYANA RESORT AND SPA, TINIDEE HOTEL@RANONG, TINIDEE GOLF RESORT@PHUKET, AND TINIDEE HOTEL@BANGKOK GOLF CLUB.

GOLF BUSINESS – THE COMPANY PROVIDES SERVICES TO FOUR GOLF COURSES,

NAMELY RIVERDALE GOLF CLUB, BANGKOK GOLF CLUB IN PATHUMTHANI, RED MOUNTAIN GOLF CLUB, AND LOCH PALM GOLF CLUB IN PHUKET.

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SUSTAINABILITY REPORT 2018 MBK PUBLIC COMPANY LIMITED

REAL ESTATE BUSINESS,

MANAGED BY MBK REAL ESTATE COMPANY AND

PLAN ESTATE COMPANY, IS CONSISTED OF VARIOUS PROJECTS, INCLUDING QUINN RATCHADA 17, QUARITZ RAMA IX,QUINN SUKHUMVIT 101, PARK RIVERDALE AND RIVERDALE RESIDENCE IN PATHUMTHANI.

FOOD SOLUTION BUSINESS,

MANAGED BY PATUM RICE MILL AND GRANARY

PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES, MANUFACTURES AND SELLS PACKAGED RICE UNDER THE BRAND “MAHBOONKRONG RICE,” THE FIFTH FOOD AVENUE ON 5TH FLOOR AND MBK FOOD ISLAND ON 6TH FLOOR OF MBK CENTER, SUKIYAKI NUMBER ONE, HINA JAPANESE RESTAURANT, AND FUYU UDON.

FINANCIAL BUSINESS IS DIVIDED INTO THREE CATEGORIES, MBK GUARANTEE

COMPANY LIMITED, PROVIDING RESIDENTIAL MORTGAGE SERVICES TO FOREIGNERS AND SHORT-TERM BRIDGING LOAN, T LEASING COMPANY LIMITED, PROVIDING LOANS FOR NEW MOTORCYCLES, MBK LIFE ASSURANCE PUBLIC COMPANY LIMITED AND TM BROKER COMPANY LIMITED.

OTHER BUSINESS INCLUDE CAR AUCTION BUSINESS, OPERATED BY APPLE AUTO AUCTION (THAILAND) COMPANY LIMITED AND CO-INVESTED BY JAPAN’S APPLE GROUP

WHO HAS EXPERTISE AND LEADERSHIP IN THE ONLINE CAR AUCTION BUSINESS IN JAPAN AND OTHER COUNTRIES.

SUPPORTING BUSINESS IS THE CORE UNIT THAT ENCOURAGES THE USE OF

TECHNOLOGY TO INCREASE COMPANY’S POTENTIAL AND COMPETENCE IN ITS SUPPORTING ACTIVITIES, REDUCE COSTS, AND IMPROVE THE BACK OFFICE SYSTEM, INCLUDING HUMAN RESOURCE, ACCOUNTING AND BUDGETING, AND STRATEGIC PROCUREMENT MANAGEMENT. THESE DEVELOPMENTS WILL LAY A FOUNDATION FOR “SHARED SERVICES” CENTER, BY CREATING COMPETITIVE ADVANTAGE THROUGH RESOURCE SHARING.

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SUSTAINABILITY REPORT 2018 MBK PUBLIC COMPANY LIMITED

SUSTAINABLE BUSINESS MANAGEMENT POLICY OF MBK PUBLIC COMPANY LIMITED MBK PUBLIC COMPANY LIMITED PUTS HIGH EMPHASIS ON BUSINESS OPERATIONS THAT ARE SOCIALLY, COMMUNALLY, AND ENVIRONMENTALLY RESPONSIBLE, IN ACCORDANCE OF THE COMPANY’S VISION IN BEING “THE COUNTRY’S LEADING GROUP OF COMPANIES WHICH FOCUSES ON BUSINESS OPERATIONS AND INVESTMENT WITH SUSTAINABLE GROWTH FOR GENERATING REGULAR RETURNS.” FOR SUSTAINABLE GROWTH. WHILST INCORPORATING THE COMPANY’S EXPERTISE TO CREATE ECONOMIC AND SOCIAL VALUES, THE COMPANY HAS ALSO ESTABLISHED SUSTAINABLE BUSINESS DEVELOPMENT POLICY AS AN INTERNAL GUIDELINE, AS FOLLOWS:

ANTI-CORRUPTION PRACTICE

GOOD CORPORATE GOVERNANCE The company is committed to management practices that adhere to good corporate governance and are in compliance of the law, business ethics, and company’s code of conduct. The practices are focused on preventing corruption and deploring all forms of corruption, allowing the company to operate its businesses with integrity, transparency, and fairness. Such practice leads to stakeholders’ trust and value creation for company in the long run.

The company sees the importance of preventing corruption and deploring any forms of corruption to be a part of Thailand’s social and economic development, as well as to create business fairness. The “Policies and Measures against Corruption,” including instructions and processes of related tasks, provides guidelines for the directors, executives, and every employee to follow, granting us the membership of the “Collective Action Coalition Against Corruption” (CAC). The membership indicates clear intention of everyone in our organization in preventing all forms of corruption.

RESPECT FOR HUMAN RIGHTS FAIR BUSINESS PRACTICES The company is committed in operating business with transparency and integrity. The company only operates lawful businesses and has ethics in operating businesses with partners in a fair and equitable manner. All practice is based on the lawful and suitable business relationship, politically neutral operation, and guiding policies on anti-piracy and respect for intellectual property.

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The company promotes respect for human rights by treating all employee fairly, complying to the human rights and employment laws, as well as complying to the law regarding “Promotion and Development of Life Quality of Disabled Persons” by coordinating with government agencies, educational institutions, and various associations for people with disabilities to provide occupational support to them. At the same time, the company also has an appropriate channel and process for all employees to raise their complaints and issues.

SUSTAINABILITY REPORT 2018 MBK PUBLIC COMPANY LIMITED

FAIR LABOR TREATMENT The company realizes that every employee is valuable resource and is important to the company in achieving its goals and increasing its capabilities to reach sustainable business excellence. The establishment of suitable employment policies, welfare system, educational support and skill development for employees at all level. The opportunity to grow professionally, happiness creation, and work-life balance are offered to create stability and good quality of life.

RESPONSIBILITY TO CONSUMERS The company pays attention to customers’ expectation and satisfaction, by enacting management policies and treating all customers fairly under the agreed terms and conditions. In addition, the company also sufficiently and correctly communicates information and news to customers. The customer complaint system for company’s services aims to generate customer’s confidence in the company’s products and services, which, in turn, will result in smooth and sustainable operation.

PARTICIPATION IN COMMUNITY AND SOCIETY DEVELOPMENT

The company is committed to promote and support communities and societies by pursuing activities that create the greatest benefits as returns to the communities around the location of the business. The company pursues various activities, including volunteering, development of community, society, and educational institutions, preservation of local culture and tradition, as well as the ongoing communication for complaints that may lead to sustainable development of the communities and societies.

ENVIRONMENTAL MANAGEMENT The company assumes the role and responsibility in protecting the environment at every process, both within and outside of the organization through the promotion of energy conservation and efficient resource management, as well as increasing awareness of environmental protection among the employees, educating customers and the public, and partnership expansion to keep the balance between business operation and environmentally friendliness.

INNOVATION AND INNOVATION PROMOTION The company gives importance to developing innovation within the organization, by focusing on value-creation innovations in the forms of products, services, and processes of the company, society, community, environment, and key stakeholders. In addition, the company also consistently promotes innovation and creative content to all stakeholders.

For this policy, the executives must be a good role model, while employees of all level must understand and follow to achieve the organization’s objectives and targets.

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SUSTAINABILITY REPORT 2018 MBK PUBLIC COMPANY LIMITED

ABOUT OUR SUSTAINABILITY DEVELOPMENT REPORT IN 2018 REPORT

APPROACH

REPORT SCOPE

THIS 2018 SUSTAINABILITY REPORT IS THE THIRD REPORT REGARDING MBK PUBLIC COMPANY LIMITED. THE OBJECTIVE OF THIS REPORT IS TO REVEAL OUR ECONOMIC DEVELOPMENT; SOCIAL AND ENVIRONMENTAL PERFORMANCE ON SUSTAINABLE DEVELOPMENT DURING THE PERIOD OF1ST JANUARY TO 31ST DECEMBER 2018 FOR OUR STAKEHOLDERS. THIS REPORT CONTAINS STANDARD DISCLOSURES FROM THE SECURITIES AND EXCHANGE COMMISSION, THAILAND

SCOPE OF THIS REPORT WAS DETERMINED BY CONSIDERING THE RELEVANCE TO THE BUSINESS, AND THE OPERATION PERF ORMANCE UNDER MBK GROUP’S MAIN BUSINESS; MBK CENTER ETC.

STAKEHOLDER ENGAGEMENT

OUR STAKEHOLDERS BOTH INTERNAL AND EXTERNAL, WHO ARE AFFECTED BY OUR BUSINESS INCLUDE; SHAREHOLDERS, COMPETITORS, CREDITORS, CUSTOMERS, EMPLOYEES, THE COMMUNITY, SOCIETY, GOVERNMENT AND RELATED GOVERNMENT AGENCIES. THE COMPANY CONDUCTS ITSELF WITH APPROPRIATE RESPONSES AND COOPERATION TOWARDS S TAKEHOLDER’S EXPECTATIONS. THIS IS DONE FAIRLY AND EQUALLY WHICH HELPS THE COMPANY’S S USTAINABLY AND STEADY GROWTH. THESE STAKEHOLDERS HAVE BEEN INCLUDED IN THE 2018 SUSTAINABILITY REPORT.

* FOR ADDITIONAL INFORMATION, PLEASE REFER TO 2018 ANNUAL REPORT PAGE 162-189.

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SUSTAINABILITY REPORT 2018 MBK PUBLIC COMPANY LIMITED

STAKEHOLDERS ENGAGEMENT

STAKEHOLDER GROUP

SHAREHOLDER, COMPETITORS AND CREDITORS

EXAMPLE OF ENGAGEMENT METHOD 3 Annual General Meeting

3 Good Competitors

3 Annual Report

3 Transparency and accountability

3 Quarterly corporate

performance announcement via company website

3 Financial analysis meeting

3 Fairly and equitably treatment

of shareholders

3 Follow the agreed upon

3 Frequently phone call

3 Newsletters

3 Follow the agreed upon

3 Satisfaction survey

CUSTOMERS

RESPONSE TO STAKEHOLDER’S EXPECTATION

3 Customer visit 3 Frequently phone call

conditions and rules.

3 Sustainable return on investment

conditions

3 Fairly and equitably treatment

of customers

3 Maintain and keeps good

relationship

3 Customers’ safety

3 News letters every 2 months 3 Annual employee

3 Frequent internal

3 Knowledge Management

EMPLOYEES

3 Fairly and equitably treatment

engagement survey communication via electronic tools

3 Employee Performance

assessment during mid-year and year-end period

of employees

3 Happiness at work place 3 Opportunities of career 3 Fairly wages and benefit 3 Occupation Health and Safety 3 Compensation

3 Employees opinion sharing 3 Grievance mechanism

(Whistle Blowing)

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SUSTAINABILITY REPORT 2018 MBK PUBLIC COMPANY LIMITED

STAKEHOLDER GROUP

EXAMPLE OF ENGAGEMENT METHOD 3 Quarterly community and

society relation activities

RESPONSE TO STAKEHOLDER’S EXPECTATION 3 Community relations 3 Engage employees to take

good care of their communities and environment

3 Follow environment’s laws

COMMUNITY, SOCIETY

and rules

3 Support green products 3 Sponsorship of community activities 3 Development and

GOVERNMENT AND RELATED GOVERNMENT AGENCIES

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3 Continually participate or support in activities and programs.

troubleshooting for society and communities

3 Follow the agreed upon

conditions and rules

3 Anti-corruption

SUSTAINABILITY REPORT 2018 MBK PUBLIC COMPANY LIMITED

GOOD CORPORATE GOVERNANCE GOOD CORPORATE GOVERNANCE

The company’s Board of Directors has placed strong emphasis on making the company’s business management appropriate, transparent, fair and accountable.

The Company has established a Corporate Governance Code “CG Code” for listed companies 2017 by the Securities and Exchange Commission and Thai Institute of Directors which will bring about transparent business management and control as well as stability for the Company’s business operations.

In 2003, the company established a Good Corporate Governance policy which was in line with the Good Corporate Governance promoted by the Stock Exchange of Thailand. The company also prepared a manual of business ethics and a code of conduct for directors, executives and staff. The written information was disseminated to all the company’s executives and staff to sign an acknowledgement of compliance.

The company provides a manual of its Corporate Governance policy and code of business conduct of MBK Public Company Limited. The contents include the Good Corporate Governance policy, the code of business conduct, the code of ethics for directors and executives, and the code of ethics for employees by reviewing the company’s Corporate Governance policy and code of business conduct annually. They are given to all directors, executives and employees for their acknowledgment, sign-off, training and practice. The information, knowledge and the related news on the Corporate Governance are also distributed to the executives and employees regularly through the company’s internet and website. The orientation activities organized for new executives and employees also cover the topics on Corporate Governance as well as the code of ethics for executives and the code of ethics for employees for their information and practice guidelines. Moreover, when the company makes their

investments in various areas of businesses, it applies the principles of Good Corporate Governance to the business operations of those subsidiaries. The company’s Board of Directors is mainly determined to conduct all the company’s business affairs in an appropriate, transparent and fair manner. The adherence to the principles of Good Corporate Governance will not only enhance the confidence of all concerned, including its shareholders and stakeholders, but also will add value to the company in long term.

In 2018, the Board of Directors operated the Good Corporate Governance, as follows:

1. The Board of Directors reviewed the policy on Good Corporate Governance, the manual of business ethics, the code of conduct for directors, executives, and employees through improving and completing them so that they were complete, clear, and consistent with guidelines and rules of ASEAN CG Scorecard of the CGR project by Thai Institute of Directors and align with the anti-corruption policy.

2. The Board of Directors considered and reviewed the anti-corruption policy, anti-corruption measures, and the policy on whistle blowing and complaints. These policy and measures were modified in order to conform to current situations as well as rules and regulations related to regulatory agencies.

3. To determine that any meeting of the Board of Directors which needs a meetingís resolution, not less than two-thirds of all Directors of the Board have to attend the meeting. Such resolution is passed by majority vote.

One Director has one vote. If an equal number of votes occurs, Chairman of the meeting has an additional vote as a casting vote. Any Director who has a conflict of interest in any matter, he/she does not have the right to vote in such matter.

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SUSTAINABILITY REPORT 2018 MBK PUBLIC COMPANY LIMITED

4. To regulate the Companyís eight business groups to provide the action plan ìGood Corporate Governanceî (Action Plan GCG) in order to be consistent with issues proposed for criteria-specified improvement by the Internal Audit Division.

5. To provide training in the policy on the Good Corporate Governance, the policy and practice guidelines on anti-corruption, and business ethics to directors, executives, and employees of MBK GROUP.

6. To determine that all executives and employees annually take a test on rules, regulations, the policy and guidelines on anti-corruption, through the Companyís intranet system in order to ensure that all executives and employees have knowledge and understanding. Also, the knowledge and understanding can be used in work performance properly. Test results are used to assess the employeesí level of knowledge and understanding in order to improve the communication

so that the employees have thoroughly understanding and realize their duties to encourage the good corporate governance of the organization.

7. To promote and communicate the Good Corporate Governance and anti-corruption guidelines for MBK GROUPís employees continuously.

8. To exercise public relations through e-mails and the Companyís website in order to communicate with business partners, customers, and business agents in acknowledge as well as asking for cooperation to support a campaign against corruption by refraining from give presents to executives or employees, regardless of festivals or occasions.

9. To determine that anti-corruption is part of the MBKYES ideology of the organization in order that all employees in MBK Group can hold it as working practices which the essence is in BELIEF as follows:

BELIEF The ability to build trust, reliability, and confidence of both internal and external customers through the system and transparent working culture, morality and ethics, honesty and sincerity, keeping words and having responsibilities. All make the customers realize the professionalism which respond to customers properly and exactly as they expect, by holding to principles of honesty with oneself, work, the organization, and stakeholders as well as holding to moral principles and NO ACCEPTING ALL FORMS OF CORRUPTION.

10. To set up the policy for MBKís subsidiaries to announce their will to participate in anti-corruption of Thai private sector. In 2018, Paradise Park Company Limited (“PDP”)ó which is a subsidiary of MBK participated in the project on “Thailand’s Private Sector Collective Action Coalition Against Corruption”. * For additional information, please refer to 2018 annual report at “Good Corporate Governance” page: 162-189

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SUSTAINABILITY REPORT 2018 MBK PUBLIC COMPANY LIMITED

ANTI-CORRUPTION

The Board of Directors is well aware and places importance in operating the business on the principle of honesty, transparency and fairness to all parties, as well as operates the business with a focus of practicing in accordance with the rules of the established laws, the regulations and ethics in order to build confidence for employees and all stakeholders. More over, in 2011, the company declared its intention to participate in the anticorruption campaign “Private Sector Collective Action Coalition against Corruption”.

The campaign includes 8 organizations - Thai Institute of Directors, Thai Chamber of Commerce, Foreign Chamber of Commerce in Thailand, Thai Listed Companies Association, Thai Banks Association, Federation of Thai Capital Market Organizations, Federation of Thai Industries, and Tourism Council of Thailand in order to declare its intention to operate a transparent business, and stand against corruption with the consideration of the utmost benefits of all stakeholders.

On 14th October 2016, the company was certified as the member of Thai Private Sector Collective Action Coalition against Corruption (CAC) by the CAC committee.

This indicates the Company’s determiration to implement its anti-corruption intention obviously.

THE ANTI CORRUPTION POLICY

The Company sets out its Anti-Corruption policy by prohibiting directors, executives, and employees of the Company and its subsidiaries from directly and indirectly having or involving in every form of corruption for the benefits of themselves, or the Company, or other parties involving with them. The Anti-Corruption policy is thoroughly declared on the Company’s website www. mbkgroup.co.th

THE ASSESSMENT OF RISK CAUSED BY THE ANTI-CORRUPTION

The Company specifies that the corruptioninvolved risk assessment is conducted by the internal unit within the organization through analyzing, assessing, and reviewing the risk management involving the organization’s both internal and external factors. Then the Strategic and Operational Management Team takes responsibility for the coordination, consultation, and collection of information about the risk assessment, measures, solutions, and guidelines on controlling corruption-involved risk from various involved units in order to propose it to the Risk Management Committee (RMC) for consideration. It also verifies information about corruption-involved risk operations and reviews corruption-involved risk, every year.

THE GUIDELINES ON REGULATIONS AND INTERNAL CONTROL OF ANTI-CORRUPTION

The Company lays down the guidelines on regulations and internal control of Anti-Corruption by providing sufficient and proper internal control in order to prevent employees from not complying with policies, law, rules and regulations both inside and outside the organization; submitting accurate and transparent financial reports; managing risks involving corruption; regularly providing an audit process of procurement by clearly specifying steps and levels of procurement approval for the sake of accuracy and transparency; and regularly providing examinations and reviews of the compliance with the Anti-Corruption policy in order to conform to changes in business, rules and regulations, and the law.

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SUSTAINABILITY REPORT 2018 MBK PUBLIC COMPANY LIMITED

THE COMMUNICATION AND TRAINING

The Company disseminates and publicizes its policies on Anti-Corruption and Whistle Blowing and Complaints to the directors, executives, and employees of the Company and its subsidiaries, and the public through the Company’s website. The Company also campaigns to send a letter to its every customer, business trader, and supporter in order to ask for cooperation in abstaining from giving presents during the New Year’s celebration or other occasions in accordance with guidelines of the Private Sector Collective Action Coalition against Corruption.

Moreover, the Company provides training on the Private Sector Collective Action Coalition against Corruption by inviting experts outside the organization to train the Company’s senior executives. Also, the employees at all levels of the Company and its subsidiaries receive continuous training on Good Corporate Governance

and Anti-Corruption annually in order to acknowledge and abide by the common practice within the organization.

THE POLICY ON WHISTLE BLOWING AND COMPLAINTS

The Company issues the policy on Whistle Blowing and Complaints caused by abuses of law, rules, regulations, ethics, improper code of conduct, and behavior implying corruption of anyone in the organization and any stakeholder from every group. This policy allows a mechanism for protecting anyone who informs or complains about corruption, informants in good faith, and anyone who opposes corruption. Clues and complaints are treated as strictly confidential in order to give the informants, complainers, and anyone who opposes corruption confidence. The clues and complaints can be informed through channels of communication as follows:

The Letter to Persons Indicated above Channel

The E-mail Channel

• The Audit Committee

E-mail address : ac@mbkgroup.co.th

E-mail address : asksuvait@mbkgroup.co.th

Internal Audit Division E-mail address : ia@mbkgroup.co.th

• The President and CEO

• The Senior Executive Vice President of the

MBK Public Company Limited 8th Floor, MBK Center 444 Phayathai Road, Wang Mai, Pathumwan, Bangkok 10330

The President and CEO Channel MBK Public Company Limited P.O. Box 444 Rong Muang Post Office, Bangkok 10330

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SUSTAINABILITY REPORT 2018 MBK PUBLIC COMPANY LIMITED

THE OPERATIONAL PROCEDURE FOR WHISTLE BLOWING AND COMPLAINTS

1. The person who receives a complaint has to inform an authority in charge of this complaint within 7 working days of receiving it.

2.

Their work is not affected nor changed such as misemployment, suspension, job mobility, intimidation or any action unfair to informers, complainers, informants, or anyone who opposes corruption.

2. A Complaint related to corruption or any behavior that potentially leads to corruption must be submitted to Audit Department 1 and Audit Department 2 for further investigation. The report shall be submitted to the committee or the audit committee to investigate and report to the Chief E0xecutive Officer.

3.

The person who acknowledges a complaint or information relevant to the complaint has to keep it confidential and undisclosed to other people with regard to their safety and risks posed to them. In intentional contravention of this, that person will be face disciplinary actions and/or legal actions depending on circumstances.

3. A complaint irrelevant to or not implying corruption has to be submitted to the Human Resources Management Department according to the specified regulations. The CEO will be notified of its action result.

COLLABORATION WITH OTHER PARTIES

4. The Corruption Examination Committee or the Corruption Investigation Committee considers the facts and directs action to further follow the Company’s procedure.

THE PROTECTION OF INFORMERS, COMPLAINERS, INFORMANTS, OR ANYONE WHO OPPOSES CORRUPTION

The Company will afford the protection of informers, complainers, or informants as follows:

1. The identity of informers, complainers, informants, or anyone who opposes corruption is not disclosed. If necessary, only essential information is revealed with regard to their safety and risks posed to them and concerned parties.

MBK GROUP partners with the public and private sectors, under “Collective Action Coalition Against Corruption” (CAC), by establishing anti-corruption policies and measures as a practical guideline and baseline for collaboration. By issuing the rules on giving and accepting gifts, meals, or any benefit of the MBK GROUP, the company requests that the employees would refrain from accepting gifts from business operators, shops, customers, business representatives or any returns from a person or organization that is working with the company or has a desire to work with the company, as a representative or directly. In addition, the company also issues letters, requesting employees’ cooperation on the issue of accepting or giving gifts that are valued higher than what the company specifies. In addition, the company also issues a letter to business customers and partners of the MBK GROUP for their cooperation not to giving gifts to executives or employees in the MBK GROUP during the New Year or any other occasion.

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SUSTAINABILITY REPORT 2018 MBK PUBLIC COMPANY LIMITED

FAIR COMPETITION FAIR COMPETITION COMPANY’S STRATEGIC GOAL

The Company’s Board of Directors clearly establishes its vision, mission, business directions, policies, strategies, and targets through reviewing them annually.

They serve as guidelines for the management in formulating business plans and budgets as well as future business expansion plans in order to enable the Company to further achieve continuous growth and stability.

POLICIES ON REVIEWING THE STRATEGIES, VISION AND MISSION

MBK Public Co., Ltd. reviews its vision, mission, strategies, and action plans annually by specifying a 5-year time frame for long term planning in order to harmonize with financial goals and an investment cycle of the business. It is submitted to the Board of Directors for consideration before the implementation. In every month, operations are reviewed in order that the organization can adapt itself to situations and business environment which are changing. Such operations are considered by the Management Team and the Board of Directors. For 20192023 time frame, the Companyís strategic purposes are specified as follows:

STRATEGIC GOALS 1.

2.

3.

4.

5.

6.

7.

20

To efficiently manage the business portfolio for the highest benefits under an acceptable risk level.

Continuous growth income rate and net profit of more than 10% per year.

To be the Corporate Group with service mind for customers and efficient working procedures.

To build a long-term relationship with customers (Customer Relationship Management: CRM) by increasing customers satisfaction in every channel which the customers use.

Be the Corporate Group which possesses strong and united organizational culture as well as building the commitment to one another of the Corporate Group’s employees.

The Group of Companies focusing on digital and innovation.

To build the distinct identity of the brand of MBK GROUP to be powerful and united sustainably.

SUSTAINABILITY REPORT 2018 MBK PUBLIC COMPANY LIMITED

TRANSPARENCY IN DISCLOSURE AND REPORTING 1. TRANSPARENCY IN INFORMATION DISCLOSURE TO SHAREHOLDERS AND INVESTORS

(Issues regarding sustainable development)

To enable the company to develop sustainably and appropriately for the urgent needs of the organization and society, the company sees the importance in the issues, as well as the participation opportunities for sustainable development in terms of the shareholders and investors.

Objective

To generate confidence among shareholders and investors that the company operates in compliance with the regulations and discloses information transparently and fairly.

Scope of work

The company respects everyone’s rights, treats shareholders and investors fairly, accepts opinions and inquiries, as well as create mutual understanding between stakeholders, so that the company can operate its businesses sustainably.

Risks and opportunities

The company operates in the manner that is in compliance with the related rules and standards, including the Securities and Exchange Commission (SEC)’s regulation on generating, sharing, communicating, and publicizing useful information for investors and the public who follow such news for regular risk management and opportunities.

Shareholders and Investors Practice and Guideline

To take care of our shareholders and investors, the company sees the importance of communication and information disclosed, as follows:

1. Information on the company’s

business operation 1.1 Focus on the business performance and growth 1.2 Short- and long- term operating strategies, while taking into consideration the involved risks 1.3 Long term plan in the future

2. Multiple communication channels (as mentioned earlier) 2.1 The Annual General Meeting of Shareholders 2.2 Press conference on company’s performance and information disclosure on the company’s website 2.3 Meeting the analysts event 2.4 Company Visit activities

3. Results from such practice 3.1 Shareholders and investors are regularly informed of the progress, performance, and strategies.

3.2 The company is now aware of the interests, inquiries, and opinions from shareholders and investors and applies them to decision making process of related matters.

Information Disclosure Channels

The company places a strong emphasis in the disclosure of news and information of the company, by establishing policies pertaining to disclosure of various important financial and non-financial information in a complete, timely, and trustworthy manner. Such information shall be fairly disclosed to our shareholders and stakeholders for their acknowledgement in both Thai and English language. Information shall be disclosed through:

1) Annual Report

Both Thai and English annual reports and the corporate website (www.mbkgroup.co.th) shall outline

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SUSTAINABILITY REPORT 2018 MBK PUBLIC COMPANY LIMITED

good practices for our board of directors, as specified by the Stock Exchange of Thailand. The information includes

1. Financial statements, explanation, and financial analysis, as well as directors’ responsibilities to financial statements which are displayed with auditor’s report in the annual report

2. Report of the Audit Committee

3. Related party transactions

4. Policies and report of the Corporate Governance

5. Composition of the board of directors, their profiles, and experience that are beneficial to the operation of the company, as well as the roles, duties, and responsibilities of the board of directors, various committees, and the attendance record of each director in the committees.

6. Policy on remuneration for directors and senior executives, both in cash and other fringe benefits, as well as information about compensation for directors, members of various committees, and senior executives, (Notes: As regards directors and members of various committees, the Company will disclose details about the compensation of each person.).

7. Shareholdings of the directors and senior executives

8. Company’s organizational structure and subsidiaries

9. Vision and mission

10. Internal control and risk management

2) Website of Securities and Exchange Committee (SEC)

The company reported information and any changes, as specified by the SEC. The said information is disclosed to the general public through the website of the SEC, for instance, annual report, 56-1 report, financial statements, related party transactions, and any changes in the shareholdings of the company.

3) Investor Relations

The company established Investor Relations unit as the responsible person to disclose relevant information

22

to the shareholders, investors, and equity analysts. Such information is made available and reported through the corporate website (www.mbkgroup.co.th) under the Investor Relations tab. The website compiles all information reported to the Stock Exchange of Thailand (SET) and SEC, as well as shareholders’ information, analysis, and MBK TODAY, the quarterly investors’ journal which contains information such as quarterly performance, share price movement, businesses within the group, and corporate activities in the past quarter. The information is regularly updated to enable shareholders and interested persons to access the company’s information quickly and fairly.

In 2018, the company has held events for shareholders, investors, and equity analysts, as follows:

1. The annual general meeting of shareholders 1 time

2. The disclosure of every quarterly turnover on the Companyís website 4 times

3. To provide a quarterly magazine for investors called MBK Today 4 times

4. To meet and talk with investors and security analysts 15 times

5. To answer questions sent through telephone call and email channels

6. To have the activity ìThe Opportunity Dayî 1 time

For the participation in the Opportunity Day with SET, the company aims to explain business information and operation to the shareholders, equity analysts, investors, and the press in the attendance to access the information equitably.

Interested persons can contact Investor Relations at: Address

: MBK Public Company Limited,

8th floor, MBK Center

444 Phayathai Road, Wangmai,

Patumwan, Bangkok 10330

Tel

: 0-2853-7120 Fax: 0-2853-7138

Call Center : 1285 E-mail

: inv@mbk-center.co.th

Website

: www.mbkgroup.co.th

SUSTAINABILITY REPORT 2018 MBK PUBLIC COMPANY LIMITED

Whistle Blowing and Complaints

The Company issues the policy on Whistle Blowing and Complaints for any stakeholder from every group. Including clues and complaints are treated as strictly confidential in order to give the informants, complainers, and anyone who opposes corruption confidence.

Complaints can be informed through channels of communication as follows:

1. Phone : Call Center 1285

2. Website : www.mbkgroup.co.th

3. Email : Inv@mbk-center.co.th

4. Complaint boxes :

In the office area, 8th floor, MBK Center

Complaint boxes are placed on all floors of MBK Center

2. FAIR BUSINESS OPERATION AND SUSTAINABLE VALUE CREATION WITH BUSINESS PARTNERS

Policy of partner treatment, the company always operates with equality, honesty, and transparency. The company works to retain mutual benefits with every type of partner fairly and ethically, by following the terms and conditions, specified in the agreed contracts and the law.

Our objective to create stakeholders’ confidence in working with the business groups of the MBK GROUP that adheres to anti-corruption policy and corporate governance

• •

THE NON-INFRINGEMENT OF INTELLECTUAL PROPERTY OR COPYRIGHTS POLICIES AND GUIDELINES ON ANTI-INFRINGEMENT OF INTELLECTUAL PROPERTY AND COPYRIGHTS

The company sets rules against employees using copyrighted work in creating the company’s advertisement, publication or any use without the permission of the copyright owner that may deem an act of intellectual property infringement. Moreover, the company also educates store operators on non-infringement of intellectual pro perty and copyrights and promote store operators in creating their own brands.

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SUSTAINABILITY REPORT 2018 MBK PUBLIC COMPANY LIMITED

RISK MANAGEMENT

MBK GROUP deems risk management as an important mechanic and tool to manage the company to achieve the goals and objectives set forth. Risk management policy is established to focus on the development of risk management system in accordance to good corporate governance practice and anti-corruption policies and measures. At the same time, the guideline manages corporate risk in a holistic manner in alignment with the quality management system, ISO9001:2005, where risk management practice must be implemented systematically and continuously.

MBK GROUP maintains its risk profile according to the strategy and operation for every level, i.e. MBK GROUP level, Business unit (BU) level, Division level, Sub-business unit (SBU) level, and the risk of MBK Center. The efforts aim to bring the organization to achieve the objectives and goals set at each level.

On the other hand, at each level of the organization, risks can also be categorized by its direct impact on the business operation, as follows: strategic risk, operational risk, financial risk, compliance risk, and hazard risk.siness as follows: Strategic Risk, Operational Risk, Financial Risk, Compliance Risk, Hazard Risk.

RISK MANAGEMENT COMMITTEE OF MBK GROUP THE DUTIES AND RESPONSIBILITIES

1. To impose MBK GROUP’s policies and guidelines on risk management in order that MBK GROUP’s operations reach its objectives and goals.

2. To analyze and evaluate incurred or possibly incurred risks at a level of MBK GROUP continuously and annually.

3. To consider, approve and review risk management plans of MBK GROUP annually.

4. To review and monitor risk management performance of MBK GROUP regularly.

5. To report to the Board of Directors and communicate risks and major risk management to the Audit Committee.

6. To support, follow up and develop risk management of MBK GROUP regularly.

The group also closely monitored risk management, where each level must be reported their risk management quarterly in order to maintain the risk level at the acceptable level. These risks must also be reviewed regularly to align with the current situation every year.

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SUSTAINABILITY REPORT 2018 MBK PUBLIC COMPANY LIMITED

EMPLOYEE CARE OUR EMPLOYEE

The company is committed to respect for human rights, fair treatment of all employees, and strict compliance with the law relating to human rights and employment. The company establishes clear policies regarding recruitment and employment. Besides, the company also complies with the law regarding “Promotion and Development of Life Quality of Disabled Persons” by coordinating with government agencies, educational institutions, and various associations for people with disabilities to provide occupational support to them.

TOTAL EMPLOYEES IN 2018

BY GENDER

566 283 283 MALES

In 2018 we have the 5 disabled employees and 2 elderly employees which have still able to work for the company which this policy accordant with the government policy to step into elderly society in near future. (The information of employees is provided till 31 December 2018)

BY AGE UNDER 30 YEARS OLD

PEOPLE

126 365 73 2

PEOPLE

BETWEEN 30 TO 50 YEARS OLD

PEOPLE

FEMALES

PEOPLE

PEOPLE

BETWEEN 50 TO 60 YEARS OLD PEOPLE

MORE THAN 60 YEARS OLD PEOPLE

* Disabled employees : 5 people * Elderly employees : 2 people

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SUSTAINABILITY REPORT 2018 MBK PUBLIC COMPANY LIMITED

EMPLOYEE ENGAGEMENT

The company recently revamped its corporate values from interviews with executives in the director position and above to encourage employees to adjust themselves to the changing business environment. By changing from SMOOTH© to MBK YES, the company plans to organize activities to promote employees to behave according to the new ideologies and help employees feel inclusive as an important member of the company. The first impression is established from the first day with warm welcome among the friendly work environment filled with positive attitude and feelings.

The company also established the committee and working team that is made up of representatives from different departments who will help drive corporate culture and create knowledge base to encourage employees to act according to the company’s expectation.

Initiatives included the gathering of useful knowledge and creating knowledge base through different channels, for instance, activities to promote behaviors that are in line with the corporate cultures among employees to together bring organization to its target.

EMPLOYEE ENGAGEMENT SURVEY

The employee engagement survey is another tool in which employees can express their opinions of different factors and environment of their work. The company surveyed employee engagement by hiring external company to ensure accuracy, transparency, and fairness once a year. The survey results are then used to improve and develop various aspects to promote employee satisfaction in their work to help them achieve their full potential.

EMPLOYEE ENGAGEMENT EMPLOYEE ENGAGEMENT IN THE PAST THREE YEARS WERE

Year 2016

65%

Year 2017

70%

Year 2018

63%

Note : The employee engagement survey of 2019 is different from that of 2018. In 2019 survey, employees can express their opinions through Google Form which protects the employees’ anonymity and encourage freedom of expression.

RECRUITMENT RECRUITMENT AND ALLOCATION OF EMPLOYEES

The human resource management department plans to recruit for new employees, according to the annual headcount plans and the corporate structure, approved by the board of director. The company recruits by considering different recruitment methods in obtaining candidates who have qualifications, as specified in the headcount request

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SUSTAINABILITY REPORT 2018 MBK PUBLIC COMPANY LIMITED

form, and skills specified for each position. Such recruitment process is specified in the documents for ISO system on the recruitment of employees at all level. There are two recruitment methods: 1) Internal announcement within the MBK for all MBK employees through e-mail intranet and bulletin board and 2) External recruitment - We publicize our job openings on various channels, including website, external recruitment, roadshows to educational institutions, Career Day, Mini Career Day, and vocational training from different institutions.

Our job postings happen in tandem internally and externally, however our practice is to first consider the internal staffs of MBK GROUP, as they have a better understanding of the corporate culture and organizational values, enabling them to use their experience in their new tasks. The next group being considered is the applicants

from the surrounding communities, due to the convenience in their commute. Additionally, the Company has a diversity policy in accepting employees of all religions, without any prejudices. The company also accepts people with disability as our employees. To our recruitment process in terms of speed and quality that fits the business needs, Human Resource Department reviews the speed of the recruitment process and proposes to reduce the processes. The executives approve the new recruitment process. The Human Resource Department currently uses Functional Test and Competency-based interviews as parts of the selection criteria that are focused on the employees’ fitting qualities to the corporate values. The values are applied to the selection process that is aligned with the corporate culture and direction.

บริษัท เอ็ม บี เค จ�ำกัด (มหาชน) ค�ำนึงถึงการเคารพ

The company establishes policies on compensation, according to the evaluation of the employee’s work and capability, in various forms, for instance, salary increase, bonus, result-based rewards, and commission. The compensation payout policy supports the result-driven culture of the company, while creating incentives for employees to work and produce excellent results, so that the company can achieve the specified targets. Balanced Scorecard (BSC) and Key Performance Indicator (KPI) concepts are utilized as tools for resultoriented management. Additionally, while Core

Competency is set to create one unified organization, Functional Competency enables success in achieving targets and objectives. The performance and competency evaluations are then used to manage a fair compensation payout, resulting in a better relationship between employees and the organization. Moreover, the competency evaluation is also used to create individualized development plan to ensure that employees receive appropriate trainings for effective and efficient performance, which will impact the company’s overall performance.

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SUSTAINABILITY REPORT 2018 MBK PUBLIC COMPANY LIMITED

Compensation and welfare management

The company also establishes a welfare committee at each business operation location. Employees are selected through an internal election process to work on the effectiveness of the company’s welfare, to manage welfare and privileges for all employees and their family.

LABOR ECONOMICS WELFARE 1.

2.

3.

4.

5.

6.

7.

8.

This is to ensure that the employees will receive superior welfare than that specified by the law and that employees of the same level will receive the equitable level of welfare, without gender, nationality, and age or religion discrimination.

THE AMOUNT SENT TO THE COMPANY’S PROVIDENT FUND RANGES BETWEEN 5 – 10% OF SALARY, TOTALING TO 23,705,240.64 BAHT, FROM THE MEMBER POOL OF 419 EMPLOYEES AND EXECUTIVES FROM 566 EMPLOYEES.

Annual bonus payout Funeral assistance welfare Provision of company’s uniform Group insurance for employees, including life, accident, and health insurance MBK GROUP’s savings cooperative Paid leave Legal rights to take vacation are, as follows 30 days of sick leave, 6 days of business leave, 5 days of special business leave (for funerals of father, mother, children, and partners), 90 days of maternity leave (including at least 45 unpaid days), 7-15 days of monk ordination.

Annual leave 6-15 days

Not only the company provides welfare to all employees as required by the law, the company also proceeds to provide superior welfare than that required by the law, in the aspects of labor economics, self-development or education opportunities, health initiatives, family welfare, and socially responsible welfare.

Health Welfare

1.

2.

3.

4.

5.

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WELFARE FOR SELF-DEVELOPMENT OR EDUCATION OPPORTUNITY Organize various training curriculum during work Support employees to receive training from outside institutions Educate employees on the path of sufficiency economy Train / promote knowledge on drug prevention The company also has library, where the book club oversees over book borrowing and returns

SUSTAINABILITY REPORT 2018 MBK PUBLIC COMPANY LIMITED

HEALTH WELFARE 1. The company passed the Standard on Prevention and Solution to Drugs Problems in an Establishment Certificate 2. The company organizes health promotion activities, such as antioxidant testing to promote employees’ awareness on taking care of their health and weight loss competition that ran for three months to keep employees away from obesity by monitoring participating employees’ BMI. 3. The company provides space for employees to exercise at the multipurpose yard of MBK Tower.

4. The company organizes annual health check-up / flu shots / hepatitis b vaccinations to promote health and check for any illness or abnormality to promote good health among employees.

5. The company organizes MBK Sports Day to promote employees healthy lifestyles, while promoting teamwork and fostering relationship between different departments. MBK Sports Day is also a platform for employees to show off their sports capability.

6. The company also provides education for pregnant employees.

7. The company organizes recreational clubs, for example, music club, futsal club, badminton club, book club, Running Addict club, ballroom dancing, Easy Dance club, photography club, etc.

8. Benches for employees who stand for extended work hours are provided.

9. The company organizes birthday activities and gives gifts to employees.

10. Various parties are also organized for employees.

COMPANY ENGAGEMENT ACTIVITIES 1. Recreational clubs and societies are organized to promote mental health among employees.

2. Model employee award ceremony is held to honor and recognize employees in three categories: • Loyalty award for employees who have been employed for 10, 15, 20, 25, and 30 years • Commitment to the organization (no sick leave, no lateness, no absence, no leave) • Corporate love (no medical bill and no sick leave) • Corporate love (Volunteer spirit as a mentor for new employees) 3. Parties are held by occasions, for example, New Year party and birthday parties for employees, to create happiness for employees by the concept of Happy 8 4. Annual surveys on employee engagement and satisfaction are carried out. New employees have also been interviewed on their impressions and experience.

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SUSTAINABILITY REPORT 2018 MBK PUBLIC COMPANY LIMITED

HUMAN RESOURCE DEVELOPMENT GUIDELINE OF MBK GROUP

Training is one of the essential elements of the company’s human resource development that is focused on the development of employees of all levels to gain competency, enabling them to be more capable and competitive, compared to those of other leading companies. Eventually, our employees will be able to innovate and improve the organization consistently to become a ceaselessly advancing and sustainable company.

The Company establishes training road map for employees, which is used as the Master Plan for training and human resource development each year.

HUMAN RESOURCE DEVELOPMENT CURRICULUM

1. Core Course - to emphasize desirable attitudes and behaviors that are aligned with SMOOTH©, the corporate values, to promote corporate culture among employees, and to achieve the organization’s commitments, while aligning with the corporate business plan

2. Managerial Course - to increase knowledge and develop management skills for employees in the management level, from the manager rank and above, so that they can effectively manage tasks, teams, and organization, while being the change leader effectively.

Managerial Competencies are: 2.1) Leader of Change 2.2) Decisiveness 2.3) People Development

and are developed through participations in

different committees and working teams, learning from practice, and company visits to other organizations.

3. Functional Course - to increase the knowledge and understanding, as well as develop the skills for employees in different professions, or to reiterate the scope of work that the employees are responsible in their roles. The company sets individual KPIs in the training hours for training or on-the-job training.

The Scholarships The Company has adopted a strong will to support employees to increase their knowledge and abilities, and develop their potential, and want to study further by providing scholarships for junior high school, senior high school, bachelor’s and master’s degrees in order to increase opportunities for employees to selfdevelop to have progress and succeed in their career path.

Moreover, in promoting and supporting business ethics and practices, the company organizes “Good Corporate Governance” training session, where the content is focused on ethics in business operation towards stakeholders and personal ethics for oneself, colleagues, company, customers, and society. Executives are lecturers for these sessions and it is a compulsory curriculum that all employees must attend every year.

Human resource development department gives high importance in evaluation of results and effectiveness of the learning system and curriculum development in support of strategic objectives, as well as the summary of development and learning as data for future strategic planning.

IN 2018, EMPLOYEES AND EXECUTIVES ATTENDED TRAINING TO DEVELOP THEIR POTENTIAL WITH AVERAGE TRAINING HOURS, AS FOLLOWS,

EMPLOYEE RANKS

COLLECTING TRAINING HOURS

Management level (Rank 12 and above)

8,127.00

Operational level (Rank 1 – 11)

13,296.80

Temporary Total

35.00 21,458.80

* 1 Employee received a scholarship in Master’s degree

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SUSTAINABILITY REPORT 2018 MBK PUBLIC COMPANY LIMITED

HUMAN RIGHTS

Human Rights Management In the guideline of human rights management, the company is committed to respect for human rights, fair treatment of all employees, and strict compliance with the law relating to human rights and employment. The company establishes clear policies regarding recruitment and employment. Besides, the

company also complies with law regarding ‘Promotion and Development of Life Quality of Disabled Persons’ by coordinating with government agencies, educational institutions, and various associations for people with disabilities to provide occupational support to them.

FAIR TREATMENT OF LABOR

Labor relationship management The company sets up a welfare committee who has the responsibility of surveying, investigating, promoting, and developing the company’s welfare management system that is aligned with and supports the organization’s vision, strategies, targets, and values. Effective welfare system aims to improve employee’s quality of life, physically and

emotionally. The committee also joins the discussion with the employer in setting welfare to employees and provides opinion and guidelines in providing beneficial welfare to employees. In addition, the company also has a system, instruction, and process to consider the employee’s complaints and has investigation procedures for cases where employees violate rules related to fair work.

HEALTH AND SAFETY

The company sees the imp ortance and necessity in having its own healthcare system and safety, while operating its businesses, to ensure that employees and other related persons are safe from accidents and diseases from workplace. In 2018, there was no employee who falls sick or gets into an accident at work.

HEALTH

1. Annual health checkup for employees

2. Nurse room for temporary rest, Nurse and doctor availability at the nurse room for treatment

3. Medical equipment and modern medicine provision for employees’ daily usage

WORKPLACE SAFETY

The company complies with the Compensation Act B.E. 2537. The company makes deposits into the compensation fund, as required by the law, as the capital to provide to employees if they face danger at work. In addition, the company has a committee for occupational health, safety, and workplace environment who is responsible for exploring, investigating, promoting, and developing safety, health and workplace environment system, as well as campaigning and promoting the drug abuse prevention system at workplace. This is aligned with and supports vision, strategies, targets, and values of the company to ensure that safety, health and workplace environment system and drug abuse prevention system follow international standard.

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SUSTAINABILITY REPORT 2018 MBK PUBLIC COMPANY LIMITED

RESPONSIBILITY TO CONSUMERS VALUE CREATION IN SERVICES FOR CUSTOMERS

The company operates its businesses with a focus on continuous and sustainable growth. The company emphasizes business growth together with renters’ satisfaction, by paying attention on the management and relationship building with customers. Customer satisfaction is regularly assessed from the first contact with the company and after receiving service. The company is open for customers’ opinion and suggestions through various channels. Market research is also executed to study

behaviors of Thai and foreign customers, to understand their changing needs and expectations and utilize the information to develop the organization’s strategies each year, including product and services strategy. The company also has a process to select stores that sell desirable, quality, and affordable products. The satisfaction assessment will then be summarized for executive and related person’s report and used to analyze and improve the business continuously.

SUSTAINABLE VALUE CREATION FOR BUSINESS PARTNERS

MBK is committed in fostering relationship between service users and renters. Strategic objective, “Customer satisfaction and loyalty,” was established as loyalty program system was being developed. The MBK Application was developed as the CRM tool for service users to access store discounts, accumulate points from their spending, redeem special privileges. It is also a tool to communicate the company’s marketing activities and

Website

Facebook

Suggestion Box

MBK also manages relationship between service users and renters through voice of customers from different touch points, such as monthly renter visits, Line@ MBK Shop, focus group sessions with renters, renters’ satisfaction survey, and after-service survey. For service users, website, Facebook, suggestion box, call center, and information counter, I directory. Additionally, MBK also rolled out a number of surveys to enhance the MBK experience, including service users’ satisfaction survey, satisfaction survey on marketing activities and post-purchase experience, market survey to compare

32

to create sale opportunities for stores who have been a long-term renter of the shopping center. In 2018, MBK Application registered 61,656 user downloads. Moreover, MBK continues to build relationships with different partners, such as government agencies, private organizations, tour companies, tour guides, and surrounding communities, to build customer base and business partners in the future.

Call Center

Information Counter

I Directory

customer satisfaction among competitors, and daily data collection from company’s social media channels, such as website, Facebook, and Twitter. Moreover, MBK also hired external company to track its mentions on news website and webboards, like Pantip or MThai. If complaints or negative rumors arise, the case will be categorized as urgent/emergency and regular. Each case is then escalated for reviews, prioritization, and resolution time. In the third quarter, all voice of customer data from every touch point is analyzed for strategy planning, process improvement, and customer relations plan in the future.

SUSTAINABILITY REPORT 2018 MBK PUBLIC COMPANY LIMITED

CUSTOMERS’ VOICE LISTENING AND MANAGEMENT

With our commitment in service provision and listening to our customers, MBK is focused on listening for data and opinion on products and services to bring customers’ needs to improve the effectiveness of the current service provided. Today, renters have various channels to express their opinions, such as monthly renter visits to receive feedback on offensive service provision and online social media via Line@ MBK Shop, while service users can provide opinions through call center, information counter, suggestion box, and social media, from website, Facebook, and Twitter. At the same time, monitoring news website or webboards, like Pantip or MThai, gathers information and opinion or suggestion that are useful for future improvement and development of services.

For the voice of customer management process, MBK also established a committee to monitor and track resolutions and prevention for each case through customer complaint system that logs the complaints from the very beginning to the end. The system helps ensure that customer complaints are addressed in an effective and timely manner. Oftentimes, the company actively contacts customers to explain the resolutions/improvement and survey their satisfaction on the resolution. Those surveys are then summarized and analyzed systematically. In emergency cases, related departments proceed to fix the situation immediately and contact customers within 24 hours from the moment the complaint is registered.

TRACKING CUSTOMERS’ COMMENTS AND SATISFACTION SURVEY

Tracking opinions on quality of products and services immediately collects customer feedback for any post-service transactions at essential service touch points within the given timeline. While renters participate in the post-maintenance and after-service satisfaction surveys and satisfaction survey on marketing activities, the service users participate in after-service satisfaction surveys. The information collected is sent to related department monthly. If the survey result reveals a satisfaction score of less than 80% of any department, it reflects that the company’s service provision is problematic and responsible departments must analyze for the root cause, fix the situation, and roll out prevention measures for service provision improvement.

MBK satisfaction assessment for both renters and service users is executed internally every six months and is done by external company once every two years. In the fourth quarter of every year, the customer satisfaction survey is reviewed to ensure that it completely covers every operating process and that useful information can be extracted for future improvement and development.

Moreover, on a quarterly basis, the analysis is presented to the executives under the agenda, “Customer Satisfaction and Voices of Customers,” so that the information can be used for strategic planning, innovation, and customer loyalty programs, as well as continuous improvement of the effectiveness of customer satisfaction and loyalty survey.

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SUSTAINABILITY REPORT 2018 MBK PUBLIC COMPANY LIMITED

SATISFACTION ASSESSMENT FOR RENTERS/ CUSTOMERS

1. Information Service

2. Shop Visit

3. Maintenance request/ complaints

4. Bonding activities, e.g. merit making activities, training, Annual health check, etc.

5. Marketing activities to increase number of customers and sales,

ASSESSMENT METHODS

Customers can evaluate their satisfaction through automatic response system immediately after receiving service through contact Call Center 1285 Satisfaction survey on different aspects, twice a year and focus group, four times a year The company will survey satisfaction on the phone, after the issue is resolved.

Satisfaction survey on different aspects, twice a year Satisfaction survey after marketing activities Opinion survey after purchase

PROCESS OF MANAGING CUSTOMERS’ ISSUES AND COMPLAINTS

1.

2.

3.

4.

Customers can complain at call center 1285.

Each complaint is registered into the Customer Complaint System Each complaint is investigated and resolution is implemented.

Customer satisfaction is assessed by a phone call to customer, where satisfaction score and customer feedback are recorded for service development of development.

5. Summary report on the complaint and customer satisfaction score is compiled and presented to the management and related departments for the development of products and services.

SUSTAINABLE SERVICE DEVELOPMENT

• The I Directory system is an innovation that integrates search system and Facetime together to respond to customers’ needs in location inquiries and other services within the shopping center. Today, there is more and more people using this service, as it helps service users to locate stores within the shopping center easily and quickly.

34

• Call center system was developed to expand call center services to completely serve every segment of different businesses within the MBK Group.

The extended call center provides information and is open for suggestion and submission of infrastructure issues.

The service also aims to boost awareness on businesses within the MBK Group for the utmost satisfaction of the service users.

SUSTAINABILITY REPORT 2018 MBK PUBLIC COMPANY LIMITED

DEVELOPMENT AND RENOVATION OF DEPARTMENT STORE’S SPACE TO SUPPORT MARKETING ACTIVITIES

STRATEGIES TO TARGET TOURISTS THROUGH TOUR COMPANIES AND GUIDES

The company has been renovating different zones as a response to the changing trends and marketing activities. The renovation increases sales through the yearround activities and promotions. In addition, the development is based on safety, by having regular infrastructural maintenance done in accordance to the standards.

MBK Center remains the leading shopping destination that more than 12 million foreigners visit each year. The figures are increasing every year. The center is also one of the largest and the most modern centers of mobile phones and electronic devices in Thailand.

Therefore, targeted advertising and other tourist-friendly facilities, like Tourist Lounge and Luggage Delivery Service, are created for tourists.

DEVELOPMENT OF MARKETING ACTIVITIES AND COMMUNICATION STRATEGIES

To replicate the success of previous activities and create exciting experience through new activities to attract customers to come back and tell their friends, the company organizes different activities to respond to different lifestyle of customers.

SAFETY OF SERVICE USERS

For service users and surrounding communities

1. The company has the nurse room available for temporary bed rest and simple illnesses.

2. Nurses are available to treat basic illnesses for customers 3. The company has contacts with nearby hospital in sending ambulance to pick up patients, in cases of transfer to be quick and effective

4. The company has modern medical equipment to assist patients, including: 4.1 Medical bag 4.2 Automatic heart defibrillator 4.3 Stretcher 4.4 Emergency wheelchair 4.5 Oxygen kit for patients

5. The company provides safety training to renters and surrounding communities, for example, in-person dangers, fire, etc.

5.1 Training for the store operators and employees within the shopping center during fire and earthquake

5.2 Safety training for fire incidents in the nearby communities

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SUSTAINABILITY REPORT 2018 MBK PUBLIC COMPANY LIMITED

COMMUNITY AND SOCIETY DEVELOPMENT COMMUNITY AND SOCIETY DEVELOPMENT

MBK Public Company Limited is committed in operating our businesses sustainably and is the goodgovernance company that puts high importance in its operation in the economic, social, and environmental aspects, while producing good returns. All of which leads to the most important goal of sustainable development.

The company is dedicated in developing its operation that align all businesses under MBK Public Company Limited.

SOCIAL AND COMMUNITY GUIDELINES

For the society and communities, the company participates in the development of community, society, human resources within the company by supporting knowledge and skill enhancement of labor, while encouraging communities to strengthen and improve their qualities of lives. The company’s efforts contribute towards the following aspects:

Labor and human rights

Human resource development

Health and safety

Participation of stakeholders

Investment for community development and donation

• • • • •

DEVELOPMENT STRATEGIES 1.

2.

3.

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MBK Public Company Limited is focused on developing potential, creating values for the society and community in a sustainable manner, under the “Thai Organization with Green Heart.” The company works effortlessly in building connections and becoming part of the community to bring about mutual assistance. The company has become involved in taking care of the communities in various aspects, for example, financial support for organizations that are in need of assistance, space sponsorship for government agencies, educational institutions, charities, communities and farmers in organizing socially-benefiting activities, and lastly expert recruitment to train the community on various useful knowledge.

GOALS TO THE SUSTAINABLE DEVELOPMENT

•

MBK Public Company Limited is focused on encouraging its employees to foster good relationship with communities surrounding our business group and to volunteer to help the communities and participate in environmental conservation in and outside of the organization.

The company promotes the communities and society, as well as stakeholders, to grow and improve their qualities of lives in a sustainable manner.

•

Operate for sustainable development of the community and society, for instance, activities to increase awareness of the existing problems and their impacts on the society, to truly initiate solutions to those problems, and to expand those initiatives into the future.

Operate and organize activities that promote sustainable development within the organization, as well as the business group.

Invest for community development and donation to build a strong relationship with the society and surrounding communities. The company supports the society and surrounding communities through projects and activities that enable a collaboration between the organization and communities for sustainable and tangible development.

SUSTAINABILITY REPORT 2018 MBK PUBLIC COMPANY LIMITED

SUSTAINABLE OPERATIONS FOR COMMUNITIES AND THE SOCIETY MBK REMAKEABLE PROJECT

MBK Remakeable (Transform Trash…to Future) project was comprised of two major activities. First, the “Suk Suk” activity was organized to promote the awareness of the value of trash separation. The effort was focused on separating paper and plastic bottles, the majority of trash in the organization, and exchanging them for useful products at the end of month to alleviate employees from financial burden. In 2018, more than 3,000 kilograms of waste were separated and reused for community and social development. For example, trash separation by the concept of 3R can add values to these trash, reduce trash volume, and transform them into

money donated to Buddhist temples. Moreover, the company collaborated with the network of partners who transform those plastic bottles into recycled t-shirts that were provided to the communities for socially-benefiting activities. Another activity was to disseminate knowledge among employees, communities, and students to show them the larger impacts that are not only limited within their communities, but have a lasting impact on others’ wellbeing, especially those who live in the trash destination. Everyone is considered the important drivers of the process that promote goodness in the society and conserve the environment sustainably.

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SUSTAINABILITY REPORT 2018 MBK PUBLIC COMPANY LIMITED

ORGANIZING ACTIVITIES FOR THE SOCIETY AND SURROUNDING COMMUNITIES SUPPORT FOR SOCIALLY-BENEFITING ACTIVITIES, DONATION, AND ENVIRONMENTAL CONSERVATION

MBK Public Company Limited realizes that one of its missions is community development. It is one of the responsibilities of the private sector that must become involved in achieving sustainable development at every level.

We are committed in contributing back to the communities, customers, employees, and stakeholders. We started from the surrounding communities of our business groups and expanded to other communities that need our assistance. MBK Public Company Limited also emphasizes knowledge sharing from our employees to the community. Not only we lent our hands to the society, our initiatives also help foster a sustained relationship between the organization and communities.

In 2018, the company organized many organizations, as follows:

“SUK SUK MOBILE: BRING HAPPINESS TO COMMUNITY” ACTIVITY This activity aimed to share the knowledge on household trash management to residents of 12 communities in the surrounding areas of the our business.

Such knowledge included separation of plastic bottles, and cardboard boxes. The knowledge transfer was infused in the “Suk Suk” activities where participants joined at the end of each month to exchange their trash for useful daily products. This activity was then extended to those outside of the organization.

“MBK CREATION: HAPPY FARM FOR COMMUNITIES” ACTIVITY

MBK Public Company Limited, in partnership with Pathumwan District Office and Foundation for Child Development, organized activities under the “MBK Creation: Happy Farm For Communities” concept. This activity was an extension of “Start Green: DIY Vertical Vegetable Garden” CSR activity in 2017. It hoped to encourage residents in Pathumwan district to take parts in caring for the green patches within their communities

38

by creating a small vegetable farms from leftovers. Besides, these green patches have become a safe food source for the community, which helps reduce the risks of consuming chemical-contaminated vegetables and helps save on food spending. If there is leftover from the community consumption, residents can sell and generate income for the communities. Importantly, employee volunteers also participated in this activity that brought about benefits to the community and society.

SUSTAINABILITY REPORT 2018 MBK PUBLIC COMPANY LIMITED

“MBK CONSERVES WATER, COMMUNITY CONSERVES CANALS” ACTIVITY

MBK Public Company LImited, in partnership with Pollution Control Department, Pathumwan District Office, and Thai Environmental and Community Development Association (Magic Eyes), organized “MBK Conserves Water, Community Conserves Canals” activity to raise awareness on canal conservation among the communities in the area.

Household waste and trash separation methods were introduced to filter them out prior to disposal to the public water. Each community now treats its wastewater with grease separator in their household to prevent and reduce the disposal of wastewater into canals in Pathumwan district, resulting in improved water sources in the future.

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SUSTAINABILITY REPORT 2018 MBK PUBLIC COMPANY LIMITED

“MBK SPIRIT DAY 2018: VOLUNTEER SHARES HAPPINESS WITH COMMUNITY” ACTIVITY

MBK Public Company Limited, in partnership with Pathumwan District Office, organized “MBK SPIRIT DAY 2018: Volunteer Shares Happiness With Community” event, a series of volunteer activities by MBK Spirit, to transfer knowledge, instill the spirit of participation in caring for the surrounding environments with the communities and students at Jarumuang yard, Pathumwan district.

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SUSTAINABILITY REPORT 2018 MBK PUBLIC COMPANY LIMITED

SOCIAL INVESTMENT PROVISION OF SUPPORT TO THE SOCIALLY-BENEFITING ACTIVITIES AND DONATION

In 2018, MBK Public Company Limited provided supports, both in the space sponsorship for socially-benefiting activities and in-kind donation. In 2018, the company delivered more than 40,000 bottles of MBK drinking water, other products, including packed rice, from Ma Boon Krong brand, while donating money and other in-kinds.

“MBK SHARES OPPORTUNITIES FOR KIDS” ACTIVITY

MBK Public Company Limited organized “MBK Shares Opportunities For Kids” activity to invite all employee volunteers and shoppers to donate high-quality second hand items and deliver them to Pankan store, operated by Yuvabadhana Foundation, for future sale and scholarship for more than 5,000 underprivileged children under the care of the foundation.

“FUNDRAISING FOR UNDERPRIVILEGED PATIENTS AT SIRIRAJ HOSPITAL ON THE OCCASION OF MAHIDOL DAY” ACTIVITY

MBK Public Company Limited supported the fundraising activities for underprivileged patients at Siriraj Hospital on the occasion of Mahidol Day. The fundraising was organized by the Faculty of Medicine, Siriraj Hospital.

The public relations and special events division, Mahidol University, led by students at the Bangkok Noi campus, in collaboration with famous celebrities, fundraised and handed out Mahidol Day flags as souvenirs to the stores and customers at the shopping center. The fundraising event promoted the awareness of the value of helping the society in the public eyes.

PROVIDE FINANCIAL SUPPORT TO THE PROCUREMENT OF MEDICAL EQUIPMENT FOR CHAKRI NARUEBODINDRA MEDICAL INSTITUTE

MBK Public Company Limited provided 500,000 baht to Ramathibodi Foundation under the royal patronage of Her Royal Highness Princess Maha Chakri Sirindhorn as part of the financial support to the procurement of medical equipment, for instance, anesthesia machines, EKG machines, and respirators for Chakri Naruebodindra Medical Institute, Mahidol University.

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SUSTAINABILITY REPORT 2018 MBK PUBLIC COMPANY LIMITED

“10,000 KINDNESS RETURNED TO THE SOCIETY” ACTIVITY

MBK Public Company Limited sponsored MBK drinking water and other products in the group to socially benefitting activities to foster good relationship with various organizations, including government agencies, educational institutes, surrounding communities of MBK Centers, and universities, such as Chulalongkorn University, Thammasat University, Mahidol University, and Srinakharinwirot University.

In addition, the company also provided space within MBK Shopping Center to charities and government agencies to organize activities for social benefits:

•

The Foundation for the Welfare of the Mentally Retarded

UNICEF

UNHCR

• •

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SUSTAINABILITY REPORT 2018 MBK PUBLIC COMPANY LIMITED

“GIVE FOR NEW LIFE: ONE PERSON FOR MANY LIVES” ACTIVITY

MBK Public Company Limited, in partnership with The Thai Red Cross Society and Boromarajonani College of Nursing Nopparat Vajira, organized “Give For New Life: One person For Many Lives” activity to educate the public on organ donation and provide the opportunity for the public to donate their organs and eyes at the event.

“MBK GROUP DO GOOD TOGETHER ON VISAKHA BUCHA DAY” ACTIVITY

MBK Public Company Limited delivered 2,488 old calendars, donated by MBK Group employees, in the “MBK GROUP Do Good Together On Visakha Bucha Day” activity. The activity was publicized on Facebook: MBK GROUP News. The donations would be used to produce Braille and audio books for visually impaired people at Educational Technology for the Blind Center, Nonthaburi.

“MBK GROUP INVITES ALL TO SHARE FOR STREET DOGS YEAR 2” PROJECT

MBK Public Company Limited organized events to help street dogs under the care of dog shelter P Jim, Chonburi, where more than 400 dogs were cared for.

Financial support of 13,925 baht, together with food and other in-kinds such as 310 kilograms of rice, 96 kilograms of dog food, and dog care equipment was provided under “MBK GROUP Invites All To Share For Street Dogs Year 2” project, where employees contributed via Facebook: MBK Group News.

“THAI FARMERS CAN STILL SMILE” PROJECT TO HELP PINEAPPLE FARMERS EMERGE THROUGH LOW PRICE CRISES

MBK Public Company Limited, in partnership with Thanachart Bank Public Company Limited and Pathumwan Princess Hotel, provided assistance to Thai farmers during low-price crises of pineapples, under the “Thai Farmers Can Still Smile” to help pineapple farmers sell the oversupplied produce.

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SUSTAINABILITY REPORT 2018 MBK PUBLIC COMPANY LIMITED

“MBK WEAVES DREAMS, SHARES KNOWLEDGE YEAR 3” ACTIVITY Employees from MBK GROUP seven recreational clubs - book club, music club, Easy Dance club, Photo-tourism club, basketball club, football club, and MBK Running Addict club - joined employees from the golf and real estate businesses in volunteering at “MBK Weaves Dreams, Shares Knowledge Year 3” Activity. The activity is focused on instilling youths with the love for books and ensuring

44

age-appropriate development. The volunteers created “A Big Book of Stories” where children participated in storytelling contest. Then, children also enjoyed delicious lunch and ice cream, as well as games and performances.

The activity was closed with the handover of school equipment for children to the Ratsupapradit School, Ayutthaya.

SUSTAINABILITY REPORT 2018 MBK PUBLIC COMPANY LIMITED

SET SOCIAL IMPACT FAIR 2018: CRAFT FOR CHANGE

MBK Public Company Limited, in collaboration with Stock Exchange of Thailand, organized “SET Social Impact Fair 2018: Craft for Change, Open a distribution area for 16 Social Enterprise of hand-woven handicrafts, to create change in the society, to create change in the society, create jobs, and generate income to the

communities that craft products from their local wisdom and cultural heritage. The project also provides space for the craftsmen who showcased their skills in weaved fabrics to the world. The showcase of indigo fabric, cotton fabric, natural-dyed silk, Batik, and Mor hom boasts its unique style and natural crafts.

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SUSTAINABILITY REPORT 2018 MBK PUBLIC COMPANY LIMITED

ORGANIZATION OF ACTIVITIES THAT PROMOTE ENVIRONMENTAL AND ENERGY CONSERVATION MBK ZERO E-WASTE PROJECT

MBK Public Company Limited, in partnership with Pollution Control Department, established electronic waste collection point to encourage employees, store operators, and the public to dispose electronic waste properly. The collection point provides a convenient place for everyone to dispose their e-Wastes, including old

mobile phones, old batteries, etc. Those e-Wastes are then sent to the responsible agencies to be disposed properly. These collection points are installed in various shopping centers, including MBK Center, The nine Center Rama IX, Paradise Park Shopping Center, and Paradise Place.

PARTICIPATION IN “60+ EARTH HOUR 2018” TO COMBAT GLOBAL WARMING

MBK Public Company Limited promoted the “60+ Earth Hour 2018” activity by inviting businesses in the group, executives, employees, store operators, and customers at MBK Center to participate. The activity is part of Thailand’s and the world’s efforts in combating global

46

warming by turning off light for an hour. This one-hour turnoff at MBK Public Company Limited and other companies under MBK Group reduced electricity consumption by 0.366 megawatt, carbon dioxide emission by 0.158 ton, or an equivalent of planting 26.72 trees.

SUSTAINABILITY REPORT 2018 MBK PUBLIC COMPANY LIMITED

“ONLY TAKES ONE DAY TO DO GOOD AT BANGLAMUNG: THE BEACH CLEANUP ACTIVITY IN BANGLAMUNG, CHONBURI”

MBK Public Company Limited organized “Only Takes One Day To Do Good at Banglamung” activity, where more than 100 employee volunteers from MBK Spirit took parts in trash collection on over 3-kilometer beach and blue crab release. The volunteers also helped make separation trash cans with the residents and students of Banglamung School at Moo Baan Banglamung beach.

Because the model fishermen village is located in the gulf where its U-shaped beach is surrounded by the urban Pattaya and Laemchabang port, it has been greatly affected by the waves of trash flowing onto the beach. Its residents were highly committed in recovering its beach to return white sand and balance back to the nature.

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SUSTAINABILITY REPORT 2018 MBK PUBLIC COMPANY LIMITED

MBK SPIRIT - EMPLOYEE VOLUNTEERS PARTICIPATED IN “WE DO GOOD WITH OUR HEARTS”

MBK Center, in collaboration with Pathumwan District Office, organized activities for His Majesty the King’s 66th Birthday by revamping the landscape of Phayathai

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and Rama I roads throughout the year to contribute to His Majesty’s Merits. The event also promoted ‘doing good’ among the company’s employees as well as the public.

SUSTAINABILITY REPORT 2018 MBK PUBLIC COMPANY LIMITED

SUSTAINABILITY

Our company’s activities are focused on environmental aspects, including the awareness promotion and solutions for different issues. Many internal activities expanded externally like “Suk Suk at the End of Month” activity that was initiated as a project to raise awareness of the value of trash separation. Employees were encouraged to separate their trash, by singling out the highest volume categories like plastic bottles and paper to exchange them for daily necessities at the end of the month at Zero-baht store. In 2018 alone, employees of MBK Group separated more than 3,000 kilograms and the

separated plastic bottles were used as the main raw materials for producing recycled t-shirts. Those t-shirts were then delivered to communities for their activities.

Additionally, the “Separate, Reduce, Eliminate, and Start” activity also included the installation of separation bins in the office to instill the trash separation behaviors prior to proper disposal, energy conservation at homes and offices, eliminate one-time use plastic like straw and plastic bag, and start using alternative containers like stainless straws, lunch boxes, or fabric bags.

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SUSTAINABILITY REPORT 2018 MBK PUBLIC COMPANY LIMITED

ENVIRONMENT MANAGEMENT IN 2018 MBK CENTER

252,496 KG. EQUIVALENT OF PLANTING 42,820 TREES PER YEAR REDUCE CARBON DIOXIDE (CO2)

ENVIRONMENTAL OPERATION

The responsibility for the environment is MBK Public Company Limited’s crucial duty to take care of the environmental protection, from its internal process to support to activities concerning energy conservation and environmental protection for the sustainability in various dimensions as follows:

1. THE MANAGEMENT OF WASTEWATER BEFORE RELEASING IT TO PUBLIC WATERWAYS (ACCORDING TO THE ENERGY CONSERVATION PROMOTION ACT 1992 (B.E. 2535)

1.1 The deep shaft wastewater treatment from the building

Year

Electric Expenses

Wastewater Treatment System Maintenance Expenses Total (THB including VAT)

2009

3,325,403.00

1,730,341.00

5,055,744.00

2010

3,475,525.00

1,789,027.00

5,264,552.00

2011

3,237,825.00

2,275,174.00

5,512,999.00

2012

3,142,922.00

2,662,847.00

5,805,769.00

2013

4,041,236.00

1,146,160.00

5,187,396.00

2014

5,910,906.22

2,980,560.03

8,891,466.25

2015

4,439,109.47

1,271,768.70

5,710,878.17

2016

3,583,726.94

1,801,690.02

5,385,416.96

2017

2,924,250.62

2,227,444.35

5,151,694.97

2018

3,168,175.28

2,887,667.00

6,055,842.28

Total

34,080,904.25

17,885,012.10

51,965.916.10

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SUSTAINABILITY REPORT 2018 MBK PUBLIC COMPANY LIMITED

From 1996 to the present, MBK Center has installed the deep shaft wastewater treatment system, which is an activated sludge process that treats sewage by using biological sludge. During the treatment process, staff will continuously test and report the operation of the process. Wastewater samples are collected and sent to a laboratory every month in order to check the quality of the water before releasing it to public sewers. The wastewater is treated to meet the quality control standard for wastewater from a building (Type A). Sewage sludge from the treatment, which amounts to 2 tons per week, is sanitarily removed and disposed by a contractor hired by MBK Center.

1.2 Expenses of wastewater management (Wastewater Treatment System)

The project on improving the Wastewater Treatment System

Wastewater Treatment System Year

List of improving wastewater treatment system Investment

(THB including VAT)

2011 p Project on improving the ventilation system of

1,647,846.00

a wastewater treatment pond

p Project on changing fine screens

1,600,000.00

2012 p Project on changing scrapers’ chains at a sedimentation pond

983,062.50

2013 p Project on changing effluent pumps at Sump-3

187,250.00

p Project on improving a wastewater treatment pond area 2014 p Project on changing effluent pumps at SCP-01

2,525,000.00 405,262.50

p Project on changing air compressors

3,053,500.00

p Project on changing scrapers’ chains at a sedimentation pond-1

3,480,000.00

p Project on changing belt presses

5,475,725.00

2015 p Project on changing scrapers’ chains at a sedimentation pond-2

3,480,000.00

p Project on improving a lighting system at a wastewater

655,000.00

treatment pond area

2016 p Project on improving the ventilation system of a wastewater treatment pond

882,750.00

p Project on cleaning Sludge Tank

324,659.40

2017 p Project on repairing the wall tank EQ -1,2

3,742,244.75

p Project on improving Air Tube Deep Shaft

208,000.00

p Project on improving wastewater Sump No.2

977,591.80

Total

29,627,891.80

Because of well realizing the safety of tap water used by tenants and customers within the shopping center, MBK Center then checks the quality of tap water every 3 months by randomly collecting samples of tap water at various spots. The quality of drinking water is also tested once a year - in comparison with the quality of drinking water in tightly sealed containers - which consistently meets the required standard.

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SUSTAINABILITY REPORT 2018 MBK PUBLIC COMPANY LIMITED

2. THE QUALITY MANAGEMENT OF AIR QUALITY WITHIN MBK CENTER

2.1 To monitor the indoor air quality

At present, the engineering staff realizes and places emphasis on the building’s air quality by having an air conditioning system and a ventilation system purified by using cleaning solutions to clean air conditioners’ coils, washing air conditioners’ air ducts, and checking indoor air quality twice a year regularly. MBK Center also has more measures: 2.1.1 The use of sanitizing spray after cleaning air conditioners helps to reduce the accumulation of bacteria in air coils, air vents, and other parts.

2.1.2 The use of ozone sterilizers in central areas and air conditioners helps to reduce the accumulation of bacteria in air coils, air vents, and other parts.

2.1.3 The laboratory tests samples of water from the cooling tower system for Legionella Bacteria every 4 months.

As a result of these measures, MBK Center’s indoor air quality always maintains standards, which are examined and certified by accredited professional company.

2.2 Expenses of the quality management of air quality within MBK Center (Air Conditioning and Air Ventilation Systems)

Air Conditioning System and Ventilation System

Year Air Quality Gel and Cleaning air Cleaning fan

and Legionella Disinfectant Expenses coil Unit

Bacteria Expenses (Central) Expenses Monitoring (Central) Expenses

Total (THB including VAT)

2009

136,960.00 171,200.00 516,500.00

-

824,660.00

2010

261,600.00 60,000.00 737,000.00

-

1,058,600.00

2011

84,000.00 27,100.00 716,220.00 1,786,686.00 2,614,006.00

2012

280,340.00 30,446.00 1,087,024.52 1,193,054.28 2,590,864.80

2013

273,540.00 74,686.00 1,301,280.00

2014

242,890.00 46,545.00 1,451,120.00 2,080,000.00 3,820,555.00

2015

264,825.00

-

2016

265,788.00

- 1,693,435.39

-

1,959,223.39

2017

310,300.00

- 1,944,676.56

-

2,254,976.56

2018

309,150.00

Total

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-

1,649,506.00

1,829,793.00 2,320,000.00 4,414,618.00

2,097,051.56 1,147,484.61 3,553,686.17

2,429,393.00 409,977.00 13,374,101.03 8,527,224.89 24,740,695.92

SUSTAINABILITY REPORT 2018 MBK PUBLIC COMPANY LIMITED

2.3 Measures of investments to improve air quality within MBK Center Year

Air conditioning system and air ventilation system

List of improving the systems

Investments (THB including VAT)

2009 p Project on improving restrooms’ air-to-air ventilators 4,654,500.00 within MBK Center (Air to Air) p Project on purchasing air disinfectant ozonizers 205,440.00 p Project on increasing the efficiency of Air Handling Units (AHU) 4,107,730.00 and Fan Control Units (FCU) 2010 p Project on increasing the efficiency of Air Handling Units (AHU) 7,043,404.00 and Fan Control Units (FCU) 2011 p Project on increasing the efficiency of Air Handling Units (AHU) 3,259,800.00 and Fan Control Units (FCU) p Project on repairing Main Exhaust 6th-22nd floors (MBK Tower) 404,460.00 p Project on cleaning air ducts of Air to Air Heat Exchangers 432,850.00 2012 p Project on increasing the efficiency of Air Handling Units (AHU) 10,500,000.00 and Fan Control Units (FCU) p Project on repairing insulators for chilled water pipes within MBK Center 663,901.00 2013 p Project on increasing the efficiency of Air Handling Units (AHU) 5,000,000.00 and Fan Control Units (FCU) p Project on installing chambers of Air Handling Units (AHU) 1,249,500.00 within MBK Center p Project on changing Air Handling Units (AHU) and 1,011,800.00 Fan Control Units (FCU) around MBK Tower’s elevator halls p Project on repairing insulators for chilled water pipes within MBK Center 2,810,000.00 2014 p Project on increasing the efficiency of Air Handling Units (AHU) 7,393,507.94 and Fan Control Units (FCU) p Project on repairing insulators for chilled water pipes within MBK Center 5,835,780.00 2015 p Project on increasing the efficiency of Air Handling Units (AHU) 13,860,050.69 and Fan Control Units (FCU) p Project on repairing insulators for chilled water pipes within MBK Center 6,012,291.00 2016 p Project on increasing the efficiency of Air Handling Units (AHU) 13,860,050.69 and Fan Control Units (FCU) p Project on repairing insulators for chilled water pipes within MBK Center 5,939,661.06 2017 p Project on repairing insulators for chilled water pipes within MBK Center 8,026,161.00 2018 p Project on repairing insulators for chilled water pipes within MBK Center 800,000.00 p Project on increasing the efficiency of Air Handling Units (AHU) 2,500,000.00 and Fan Control Units (FCU) Total 105,570,887.38

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SUSTAINABILITY REPORT 2018 MBK PUBLIC COMPANY LIMITED

3. SUSTAINABLE RESOURCE USE

To reuse the treated wastewater (Recycle)

MBK Center has a project on reusing wastewater that is already treated in order to consume resources efficiently by using recycled water to clean areas around car parks and in a cooling tower system. Before reusing it, the wastewater is processed to remove unwanted suspensions through sand filters and to kill germs through Chlorine Dioxide disinfection in order that the quality of

recycled water is suitable and safe to use. Particularly, the recycled water used in a cooling tower system is randomly checked. Its samples are collected and sent to a laboratory to find Legion Ella Bacteria every 4 months. Therefore, the water recycling is safe for the indoor air quality within MBK Center and complies with best practices for Good Corporate Governance.

Expenses of recycling management

Recycled water system Amount of recycled

Year water treated

Electric Maintenance Total (Cubic meters per year)

Expenses Expenses

2009 114,720.00 180,917.00 295,637.00 57,403.00

2010 125,082.00 243,846.00 368,928.00 51,332.00

2011 174,500.00 149,238.00 323,738.00 15,045.00

2012 72,030.00 273,197.00 345,227.00 11,311.00

2013 84,505.00 681,820.00 766,325.00 20,753.00

2014 159,812.00 304,800.00 464,612.00 29,783.00

2015 50,507.58 213,845.00 264,352.58 12,054.00

2016 44,129.56 174,238.90 218,368.46 13,431.00

2017 55,864.71 93,155.00 149,014.71 10,971.00 2018

30,591.65

160,439.25

191,030.90

11,181

Total

911,742.50

2,475,491.15

3,387,233.65

233,264

4. MITIGATION AND ADAPTATION TO CLIMAGE CHANGE

Training and activities to promote the energy conservation and the environment preservation

The company annually provides training courses not only for its employees, but also for tenants in the shopping center. These training courses are, for example, Techniques of Energy Conservation and Consciousness of Environment

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SUSTAINABILITY REPORT 2018 MBK PUBLIC COMPANY LIMITED

Protection. Also, activities to promote the energy conservation and the environment preservation are organized such as a visit to observe energy efficiency and green buildings, having a smile with an electricity bill, and MBK Energy Day in which a lot of the company’s staff participates annually.

5. BIOLOGICAL DIVERSITY AND ENVIRONMENT PROTECTION

The energy management (according to the energy conservation promotion act 1992 (b.e. 2535) 5.1 The energy management

At present, the energy consumption within MBK Center is determined as a large designated building having energy consumption for over 3,000 MW or total energy consumption for over 60,000,000 MJ. Therefore, the company has to comply with the Energy Conservation

Promotion Act 1992 (Amendment Edition 2007) and then sets its internal committee on energy management in order to run operations to conform to its policies, action plans, and the law.

Projects on reducing energy consumption within MBK Center

Investments Savings in Savings in Payback Carbon Equivalent Year List (THB energy money period dioxide to plant

including VAT) (kW/hr (THB (year) reduction trees

per year) per year) (kg per year) (per year)

2010 p Project on increasing the 99,500,000.00 5,390,389.00 16,818,012.00 efficiency of chillers p Project on changing 220,800.00 28,788.00 266,335.00 fluorescent lamps and electronic ballasts 2011 p Project on installing 3,136,000.00 314,530.73 1,063,113.87 energy-saving devices for efficient lighting p Project on turn lights off - 5,760.00 19,468.80 during a lunch break on the office’s 8th floor 2012 p Project on replacing 235,400.00 60,480.00 205,027.20 Halogen lamps with LED lamps p Project on installing Motion 133,750.00 20,750.25 70,343.35 sensors to control the workings of lamps p Project on installing AC 3,355,520.00 430,682.20 1,460,012.66 voltage stabilizers

5.92

1,067,297

180,999

0.83

5,700

967

2.95

62,277

10,561

-

1,140

193

1.15

11,975

2,031

1.90

4,109

697

2.30

85,275

14,461

55

SUSTAINABILITY REPORT 2018 MBK PUBLIC COMPANY LIMITED

Projects on reducing energy consumption within MBK Center

Investments Savings in Savings in Payback Carbon Equivalent Year List (THB energy money period dioxide to plant

including VAT) (kW/hr (THB (year) reduction trees

per year) per year) (kg per year) (per year)

2013 p Project on changing fan 3,200,000.00 1,026,328.05 blades and a cooling tower’s control units. p Project on changing 3,644,940.00 43,800.00 aerators for a wastewater treatment system p Project on balancing 1,650,000.00 1,798,997.40 chilled water in an air-conditioning system of MBK Center p Project on changing water 5,700,000.00 254,040.00 pumps used in a chilled water supply system p Project on changing 3,959,000.00 61,320.00 scrapers’ chains in a grease trap used in a wastewater 2014 p Project on improving air 1,635,514.02 1,484,550.96 conditioners in a server room on 8th floor 2015 p Project on changing chains 3,959,000.00 61,320.00 and sludge scrapers (CS-02) used in a wastewater treatment system p Project on replacing light 22,309,870.00 1,999,728.00 bulbs along central passageways within the shopping center with energy-efficient LED bulbs 2016 p Project on changing 5,672,364.66 39,276.00 water-saving fixtures and Energy Award automatic water valves used in restrooms at MBK Center.

56

3,807,677.05

0.84

203,213

34,462

162,498.00

22.43

8,672

1,471

6,674,280.35

0.25

356,201

60,407

942,488.40

6.05

50,300

8,530

306,600.00

12.91

12,141

2,059

6,116,201.05

0.27

293,941

49,848

243,005.03

16.29

12,141

2,059

7,924,722.09

2.82

395,946

67,147

178,587.97

31.76

7,777

1,319

SUSTAINABILITY REPORT 2018 MBK PUBLIC COMPANY LIMITED

Projects on reducing energy consumption within MBK Center

Investments Savings in Savings in Payback Carbon Equivalent Year List (THB energy money period dioxide to plant

including VAT) (kW/hr (THB (year) reduction trees

per year) per year) (kg per year) (per year)

2017 p Project on Operate - 386,098.00 1,418,137.95 - Chiller Plant (Closed chiller between 24:00 - 06:00 o’clock) p MBK Energy Awards 2017, 118,128.00 225,780.00 774,854.38 0.15 Campaign of Reduce the Energy Consumption for tenant 2018 p MBK Energy Awards 2017, 189,566.00 411,722.94 0.29 23,917 Campaign of Reduce the Energy Consumption for tenant 118,128.00 p Adjusting the opening 7,895 28,817.73 and closing time of the lighting around MBK Center according to the time of the Hydrographic Department.

Total 158,430,286.66 14,033,573.59 49,655,415.32 -

Notes : 1.

2.

3.

76,447

12,964

44,704

7,581

4,056

1,563

265

2,765,028

468,910

To save electricity consumption of 1 kWh (1 Unit) can reduce 0.198 kg of carbon dioxide.

To reduce 5.8967 kg. of carbon dioxide can decrease planting 1 tree. Referred to Thailand Greenhouse Gas Management Organization (Public Organization).

2017 Toilet renovation project in MBK Center by using environmental friendly sanitaryware can save 102,651.00 units of water supply per year and lower water supply expense 1,675,082.81 Baht per year.

57

SUSTAINABILITY REPORT 2018 MBK PUBLIC COMPANY LIMITED

INNOVATION AND PROMOTION OF INNOVATION FROM SOCIAL RESPONSIBILITY ACTIVITIES

It is widely recognized that today, innovation is very important to businesses. It also helps increase competitive capability and create business sustainability. The company sees the importance of innovation in the organization, as expressed in the one of the missions of the organization. The company is committed in developing service innovation.

At MBK, “innovation” is defined as the application of knowledge, creativity, experience, new methods, and modern technologies in improving and developing novelties, including new processes, new products and services, or new businesses, to create value to the organization, customers, partners, and stakeholders in a sustainable manner.

The company also establishes organization-wide policies in promoting learning and human resource development, as well as organizational restructuring, to create conducive environment for continuous learning and innovating within our organization.

INNOVATION GOAL OF MBK GROUP

MBK GROUP’S INNOVATION GOAL IS TO INNOVATE SOLUTIONS FOR THE COMPANY EVERY YEAR TO ENHANCE CORPORATE SUSTAINABILITY.

ORGANIZATIONAL STRUCTURE TO PROMOTE INNOVATION WITHIN THE ORGANIZATION

1. Innovation Working Team is comprised of employees from different departments that are qualified, meet the criteria set by the company, and are selected by their executives or Innovation Committee. The objective is to develop employees’ potential and to equip employees with updated knowledge and skills for the fast-changing technologies and advanced innovation in today’s world. The working team has a mission and responsibilities in providing opinions, suggestions, and guidelines for innovation that are aligned with the

58

company’s policies. The working team also shares news, updated information, and new technologies in their monthly meeting in order to spark innovation within the organization.

2. Innovation Committee is consisted of executives from various departments. The committee is responsible for managing innovation within the policies and objectives of the company and promoting/mobilizing innovation within the organization. The committee also

SUSTAINABILITY REPORT 2018 MBK PUBLIC COMPANY LIMITED

considers innovation submissions from internal staffs and only selects innovation that creates values to the company or has business feasibility into Innovation Project. The committee also selects a cross functional team to work on each project in an effective manner to achieve results and targets. Additionally, the committee also approves budgets for small innovation projects.

3. Management Committee is consisted of the company’s top executives. It is responsible for discussing details and appropriateness of the project. The committee is also responsible for approving budgets for large innovation projects for commercial implementation in the future.

4. Strategic & Operation System Management Department is responsible for supporting and promoting innovation culture to develop and improve current work conditions as well as enhance the company’s productivity.

5. The company has Business Development Department who is responsible for analyzing business opportunities for their value creation potential prior to including them in the business plan and requesting for budget approval, as specified in the annual strategic planning process.

MECHANICS IN DRIVING INNOVATION WITHIN THE ORGANIZATION

1. Establish appropriate measures for internal creation of innovation, approved by the Innovation Committee, as corporate KPIs. Establish criteria for innovation award that is given out to employees every year.

2. Organize training on new innovation techniques in order to equip employees, Innovation Working Team, and executives by external speakers once a year, while training on basic innovation curriculum for both new and existing employees are carried out by internal speakers twice a year. Visits to leading companies in Innovation are also organized, including OUR FUTURE 2030: Share, Discuss, and Build Future and Start Up Thailand 2018 . These training and visits aim to instill continued learning of new innovation, in alignment of the goal of becoming the Learning Organization.

3. Communicate innovation news via quarterly e-mail to update knowledge and news on innovations in the readable and interesting format.

4. Organize Innovation Radio - “Innovation Club: Club for Innovators,” a monthly program to update news on innovations that happen both internally and externally. The end of the program invites employees to answer questions to win prizes. Answers can be also submitted via Inno Tank for a chance to win the prize.

5. Knowledge on different innovation is recorded, shared, exchanged, and uploaded to Inno Tank, on the company’s intranet system to disseminate knowledge, provide updates on innovation news, and publicize innovation-related activities. The Inno Tank is highly accessible anytime anywhere.

6. The company also encourage employees to submit their innovative ideas through the “Online Innovation Suggestion” form on Lotus Notes system. Direct supervisors can review and approve on the system immediately. It is also an open system where every employee can search for past information or access colleagues’ innovation for self-learning.

59

SUSTAINABILITY REPORT 2018 MBK PUBLIC COMPANY LIMITED

7. The company organizes MBK Innovation Day for employees to participate every year to excite employees and create an inducing atmosphere for employees to feel the need for change in this Innovation era. Furthermore, employees also experience real innovation product and can apply innovation concepts in their work. Top executives also show their support for the

60

event, by participating in the project from publicizing, joining the event, and presenting MBK Innovator Award to recognize employees. MBK Innovation Day aims to show employees that innovation is important and that it is important for them to adjust their behaviors to the company’s policies

SUSTAINABILITY REPORT 2018 MBK PUBLIC COMPANY LIMITED

61

SUSTAINABILITY REPORT 2018 MBK PUBLIC COMPANY LIMITED

INDEX OF SUSTAINABILITY DEVELOPMENT REPORT

DESCRIPTION

STATEMENT FROM THE MOST SENIOR DECISION-MAKER OF THE ORGANIZATION

PAGE

REMARK

2-3

6-9 Name of the organization 8, and 56-1 Primary brands, products and services 8, and 56-1 Structure of the organization 8, and 56-1 Location of the organization’s headquarter 8, and 56-1 The organization Number of countries where the organization operates, and - names of countries where either the organization has significant is only located in operations or that are specifically relevant to the sustaina bility Thailand topics covered in the report Nature of ownership and legal form 8 Scale of the organization (Total number of employees by types) 8, 25, and 56-1 Stakeholders Engagement 13-14 SCOPE OF THE REPORT 12 REPORTING PERIOD FOR INFORMATION PROVIDED 12 GOOD GOVERNANCE 15, and 56-1 COMPANY INFORMATION

FAIR BUSINESS PRACTICES 20

1. Policy regarding fair business practices 2. Policy regarding Anti Corruption 2.1 Policy regarding Anti- Corruption and Ethics 2.2 Board role in policy regarding Anti- Corruption 2.3 Policy of Anti- Corruption practices (Communication, Training and The Operational Procedure for Whistleblowing Policy.)

2.4 Collaboration with other parties 3. The non-infringement intellectual property or copyrights 4. Responsibility for supply chain

20 17-18, and 56-1 17, and 56-1 17 17-18 and 56-1 19 23, and 56-1 -

4.1 Select and assess suppliers with capability for sustainable business 4.2 Corporate with supplier for sustainability development

62

13

SUSTAINABILITY REPORT 2018 MBK PUBLIC COMPANY LIMITED

DESCRIPTION

PAGE

REMARK

HUMAN RIGHTS AND FAIR TREATMENT OF LABOR

1. Recruitment in term of Human Rights and Fair Treatment 1.1 No operations and suppliers identified as having significant risk for incidents of forced, compulsory labor or child labor 1.2 Equal opportunities

26-27 31 26-27

2. Employees Engagement 2.1 Employees opinion sharing

13

2.2 Disclosure of company information

13

2.3 Employees engagement to the company

25

3. Recruitment in term of Human Rights and Fair Treatment 3.1 Programs for skills management that support the continued employability of employees without discrimination 4. Health and Safety 4.1 The importance and necessity in having its own healthcare system and safety 5. Welfare 5.1 Benefits and welfare provided to full-time employees, included work balance and quality of life

30 and 56-1 30 28, and 31 31 28, and 56-1 28-29

RESPONSIBILITY TO CONSUMERS

1. Sustainable Service and products

32

1.1 Sustainable Value Creation for Products

-

1.2 Support the ability to access products and services

33

2. Customers Health and Safety

34

2.1 Product and Service information and labeling

32

2.2 Significant product and service categories for which health and safety 35 2.3 Customers Rights Protection 3. Fair market served

34 (some part) 20

63

SUSTAINABILITY REPORT 2018 MBK PUBLIC COMPANY LIMITED

DESCRIPTION

PAGE

COMMUNITY AND SOCIETY DEVELOPMENT

1. Survey the communities and societies around the located business 36 2. Significant investment for developing communities and societies 3. Social and Community Care

38-40 48

4. Significant investment in infrastructure such as School, Hospital and etc. 41-42 5. Supporting and participate in developing the sustainability for society 47-48 ENVIRONMENT MANAGEMENT

1. Significant reduce impact of products and services to society and environment

50

2. Climate Change

50

2.1 Waste management (Total weight of waste by type and disposal method)

51-52

3. Climate Change (Reduction of greenhouse gas)

52-53

4. Biodiversity

55

4.1 Guidelines for the protection of biodiversity from the impact of the company’s operations.

55

INNOVATION AND PROMOTION OF INNOVATION

Innovation and Promotion of Innovation From Social Responsibility Activities

64

58-61

REMARK

FOR

SUSTAINABLE MBK PUBLIC COMPANY LIMITED 8th Fl., MBK Center Building, 444 Phayathai Rd., Wangmai, Pathumwan, Bangkok 10330 Thailand Telephone: +66 (0) 2853 9000 Facsimile: +66 (0) 2853 7000

GROWTH

www.mbkgroup.co.th

SUSTAINABLE DEVELOPMENT REPORT 2018