MENDELOWS MATRIX
Government-linked Company. Privatised the construction and administration of the NorthSouth Expressway in 1988. Since 1994, PLUS has more highways under its wings through organic growth and takeovers. Mission Statement: To provide efficient and safe expressways that enhances quality of life.
Environment
Community
Marketplace
Workplace
Transit tickets and disused road accessories are sent for proper recycling.
Community
Road safety campaigns - Malaysians Unite for Road Safety (MUFORS) campaign, 2009. Employees: 2-days dedication to community work a year. Providing business and employment opportunities. Making donations to worthy causes. Promote environmental awareness. Sports for the youth Go-kart.
Marketplace
Road safety audit by independent certified auditors. User loyalty programme: PLUSMiles for customers, PLUSTrack for fleet operators. Enhanced safety features on the highways.
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Workplace
oA variety of training programmes (inhouse /outhouse).
oPersonnel Exchange Programme with NEXCO in Japan. oScheduled health check-ups for toll tellers. oChild Development Centres (CDC). oPre-retirement training: Retirement Settlement Scheme. oSports and Leisure. o Staff toll payment subsidy.
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Community
Employees
Key Stakeholders
Government and Regulatory Authorities
Customers
Suppliers
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IMPACT ON STAKEHOLDERS
Shareholders
Companys most influential stakeholders.
Has to engage majority shareholders Obtain blessings on any new corporate directions. Balancing majority interests Short term gains (dividend payouts) versus long-term growth investors (retain profits for growth). PLUS - Performed well payout is good. rising revenue and profits; dividend
For 2010 Net profit rose to RM1.301 billion. Dividend payout in 2009 was 16.5% while EPS was 23.73 sen.
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FINANCIAL HIGHLIGHTS
PLUS PROFIT PROFILE (2003-2010)
14 30 25 20 SEN 15 14.64 15.37
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10 8
RM Bil
6 4 2 0
10 5 0
2003 2004 2005 2006 2007 2008 2009 2010
YEAR Year
Percentage
2003
2004
2005
2006 Year
2007
2008
2009
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Employees
Members of an in-house union. Consulted on areas affecting them. In-house union members have limited bargaining powers.
Customers
As PLUS manages some strategic highways, many customers have little choice but to use them. Customers are kept aware of PLUS operations through the media. Grievances over high toll rates and impending toll rate increases have compelled the government, a powerful PLUS stakeholder, to order a freeze on toll rate increases for the next 5 years. Can decide to use alternative mode of transportation such as using a plane or a train if they are disillusioned with PLUSs service.
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Suppliers
Minimal power over PLUS. Interests over what the procurement requirements of PLUS. A conduit of information to PLUS: New and better products that it can choose to use.
Has to follow rules laid down by the Securities Commission of Malaysia and
Bursa KL.
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Community
Do not wield much power over PLUS. Have a keen interest in the environment. PLUS has been engaging communities via: Community-based Programmes Philanthropic Pursuits Business Opportunities Work Opportunities
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Workplace
Organising safety seminars to ensure an accident-free workplace.
Building safety corridors for toll collectors to safely cross ETC lanes.
Limits the maximum hours that each employee can work and discourages overtime work. Increase number of women workers with more emphasis on the female gender in new appointments. Increasing job opportunities for the disabled. NEXCO has its offices renovated for the convenience of the disabled and elderly staff.
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Criticisms
Reluctance to accept responsibility to protect flora and fauna within its operational areas. Bureaucratic and slow to respond to the public queries.
Poor signages, inadequate night lighting, roadworks, traffic jams during festive seasons and slow response to consumer complaints.
Do not have many disabled workers. Not transparent on the number of women workers in its organisation. Complaints that certain RSAs have sub-standard level of maintenance. Few respondents are aware of PLUSs use of alternative energy like solar.
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Recommendations
Encourage more migration of cash payment mode to ETCs. Use asphalt pavements to reduce noise pollution. Conduct a study on mitigation of light pollution.
Reduce bitumen usage in road works with new non-fossil based materials.
More creative community programmes - River rehabilitation, rural areas road upgrading. Be more responsive to public request for information. Consider giving special rebates to disabled drivers and senior citizens. Hire more of the disabled and women. Expand participation at conferences, seminars and visits and international fairs.
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Conclusion
CSR is a dynamic process and a moving target. Analysis - PLUS has adhered to most of the disclosure guidelines in CSR frameworks in spirit and substance. PLUS needs to enhance further its CSR programmes and activities in the current areas of commitment by having more appropriate follow-up action plans. Attention should not only be limited to majority shareholders, the government and regulatory authorities or its employees. PLUS - be proactive and do its obligations as befit its image as the premier toll highway operator in the country and the world.
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