At MSC Group, we are firm believers in the triple bottom line – People, Planet, Profit. It is our belief that the successful sustainability of a business is dependent in its ability to include public interest into the corporate-decision making of a business.

As such, we strive to integrate Corporate Social Responsibility into our business model. We closely monitor the impact of our activities on the environment, consumers, employees, communities, stakeholders and all other members of the public sphere and try to proactively promote public interest by encouraging community growth and development, and voluntarily eliminating practices that harm the public sphere.

To attain the above objectives, we practise an Integrated Management System with the adoption of quality management standards covering all areas of responsibility including social, environmental, occupational health and safety aspects. Standard operating procedures, training programmes and regular audit schedules are being practised with the aim of achieving continual improvement in all areas of activities.

Our key CSR initiatives are focussed in four main areas, namely:

At the heart of any company lies its employees. Socially responsible employees make for a socially responsible company. Therefore we instil and foster a culture of corporate social responsibility that pervades the Group’s operations at every level, from simple notions of implementing green practices to assist in environmental waste reduction such as encouraging recycling of paper, cans and bottles to collecting foods for the needy and engaging employees in the Group’s effort to help the community at large. Basically, we encourage our staff to be at the forefront of ethical and socially responsible behaviour. We foster a corporate culture that respects and stimulates diversity and create an environment where individual employees can realise their full potentials. The welfare of our employees is one of
our key priorities. Significant resources are spent every year on the education and training of our employees. We continue to offer tools and resources to help employees succeed at work and in life in a number of leadership and professional development programmes at both management and employee levels.

Fully cognisant of the fact that the way we operate affects the community in which we operate and that we do not do business in isolation, we ensure that we have meaningful engagements with various sectors of

the community where our operations are located vide a variety of means such as:
  company-community relationship through various social, welfare, religious and cultural programmes.
  socio-economic activities that have impact on the well-being of the local community through spin-off opportunities with emphasis on sustainability of these activities over the long-term.
  infrastructure and other physical development that enhance the quality of life and mobility of local community.

In view of the large areas of operation of the Group and variations in demography in terms of age group, culture,vocation and economic conditions in each community, the adoption of community development programmes need to suit the particular local community needs. The main focus for our community development projects is that they ought to have long term far-reaching beneficial impact to the particular community.

Some of the community development programmes undertaken by the Group for the year 2009 were as follows:
  youth training programmes in various areas of vocation including business/administration, engineering, workshop practice, aquaculture, farming;
  assistance with construction of community halls, sports facilities and religious buildings;
  building of infrastructure to assist with the mobility and accessibility of the local community;
  cooperation with the local government, community, employees and their families for sustainable economic development to improve quality of life especially in areas relating to agriculture and plantation in areas no longer required for mining;
  assistance in arts and cultural and sporting activities in order to enhance accomplishment of the local community in these activities;
  greater commitment toward continual improvements in safety, health and environmental performance that have direct positive impact on the local community.

A noteworthy effort that we are especially proud of is the sponsorship of an outing for selected art students and their teachers from Sekolah Menengah Pendidikan Khas Persekutuan, the Penang school for students with speech and hearing impairment, to visit the company’s smelting facility in Butterworth and mining operation in Rahman Hydraulic Tin Sdn. Bhd. Paintings drawn of the various aspects of the Company’s operations by these students formed the artwork for our corporate calendar for 2010 with the theme “Towards a caring and sharing society”.

Occupational health and safety not only contributes to corporate goals but also plays a part in the social and ethical role of the organisation. We inculcate the culture of safety, health and environmental consciousness in all areas of operations within the Group and provide and maintain safe systems of work, make arrangements for ensuring the safe use, handling, storage and transport of equipment and substances as well as provide necessary information, instruction, training and supervision to all employees.

Our Groupwide occupational health and safety programme comprises:
  Training and education
  Work design, workplace design and standard work methods
  Changes to work methods and practice, including those associated with technological changes
  Safety rules, including penalties
  Emergency procedures and drills
  Provision of Occupational Health & Safety equipment, services and facilities
  Workplace inspections and evaluations
  Reporting and recording of incidents, accidents, injuries and illnesses
  Provision of information to employees

At the mine site or in the compound of the smelter, the Group ensures that it has comprehensive safety and health facilities including clinic with in-house medical doctor and assistants, fire-fighting team together with relevant equipment which are always in the state of readiness for response. Dissemination of information concerning safety and health at workplace is an ongoing exercise at the Group.

Continuous improvement of the occupational health and safety programmes is carried out by way hazard identification systems, rigorous monitoring and effecting improvements.

Operating in the resource industry, the MSC Group is mindful of safeguarding the environment, now and for future generations. We are only too aware that mining operations leave significant impact on natural environment, more so than in any other industry – yet without mining, the modern world as we know today, would cease to exist. We seek to achieve a delicate balance by responsible environmental management at all our mining and smelting operation sites.

The land reclamation and rehabilitation programmes by the Group provides for long term environmental stability and economic post mining land-use. At the Company’s subsidiary, PT Koba Tin, an average of
600 hectares per year is cultivated with mixed plantings of plantation and local forest species. As part of the mine closure programme, the subsidiary pursues programmed relinquishment of land no longer required for mining operation and rehabilitation of disused mining pools for fresh water supply and aquaculture and other related activities. Similarly at RHTSB, the subsidiary works very closely with the Department of Environment on matters concerning treatment of effluent discharge from mining operations and rehabilitation of ex-mining areas. The ultimate goal is to assist in creating a self sustaining and healthy community when the mines have ceased operations.

The Company, as a co-founder and Board member, continues to support ITRI Ltd., an international tin

organization that, amongst other things, rigorously pursues R&D particularly in the area where tin can be used to replace toxic substances contained in many of today’s industrial applications. Tin has been touted as a “green metal” and its contribution to the environment through the replacement of toxic substances is immeasurable.


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