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Advanced Info Service Plc. 020 Our partners

Goal Initiative 2013 Performance 2014 Target Partners.pdf · Development plan for every partner group including local contractors, sale agents, retailers and content developers

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Page 1: Goal Initiative 2013 Performance 2014 Target Partners.pdf · Development plan for every partner group including local contractors, sale agents, retailers and content developers

Advanced Info Service Plc.020

Our partners

Page 2: Goal Initiative 2013 Performance 2014 Target Partners.pdf · Development plan for every partner group including local contractors, sale agents, retailers and content developers

Sharing responsibility for our partners’ behaviors and actions.

Building win-win partnerships for mutual growth

RenovationofTelewizshops and service improvement for consistent branding of AIS image and enhancement of customer trust in Telewizshops.

ServiceQualityfor Telewiz(SQT)programassesses all aspects under sale and service criteria to raise our partners’ standards.

Successfully renovated and improved customer service management at 185shopsoutofthetotalof 450 shops.

Providedtrainingto Telewizshopstodevelopessential sales and service skills for operational staff.

Over85%ofallTelewizshops have successfully qualified and passed the AIS’SQTassessment.

ContinuetocompleterenovationofallTelewizshopswithinthe2ndquarterof2014,enhancethe quality of services and sales with the aim of eventually leading to increased revenue for ourTelewizpartners.

Achieve the target of 90%ofallTelewizshops passingtheAIS’SQT assessment.

AIS Sustainability Report 2013 021

Our Partners

Partner Targets and Performance Table

Goal Initiative 2013 Performance 2014 Target

Page 3: Goal Initiative 2013 Performance 2014 Target Partners.pdf · Development plan for every partner group including local contractors, sale agents, retailers and content developers

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Sharing responsibility for our partners’ behaviors and actionsAIS has implemented various initiatives to improve its procurement procedures and processes to be more clearly defined and closely aligned with international standards such as:

• standardizedcorporatecontractprices

• improvedpaymenttermsandconditions

• definedcontractspecificationstosupportthelong-termSustainable Development plan for every partner group including local contractors, sale agents, retailers and content developers.

Upstream partner: For suppliers and contractors, AIS implemented a sustainable procurement policy and procedures to improve the awareness of our partners including safety, hygiene, and human right such as the prohibition for use of child labor or forced labor.

Downstream partner: For sales representatives, retailers or service providers, AIS developed a quality assessment standard focusing on our exclusivepartner,Telewiz.TheServiceQualityforTelewiz(SQT)hasbeendeveloped as a mechanism for improving sales and customer service of our partner,whichareessentialfortheenhancementofTelewiz’scapabilitytogrowwithAIS.TheSQTwillassesssalesachievementandcustomerservicequality. The quantitative indicators for assessing sales performance include the number of newly registered in postpaid and prepaid numbers, total handsetsales,andthenumberofapplicationorservicesignupsineachTelewizshop. Whereas the service quality assesses from staff competency, customer satisfaction, and shop display in accordance with marketing strategy. If any shop performance is not up to standard, AIS will provide help in all aspects including human resources, competency development and financial support to improve its performance. This is part of the AIS commitment to achieving mutual growth through win-win partnerships.

• AISsupports environment friendly products.

• AISprocuresonlylegal products and services that respect intellectual property and human rights.

• AISsupportsThai and local businesses by purchasing products and services from the local communities where we operates.

source: procurement policy

“Our “ecosystem strategy” is how we embed sustainable practices into our partners’ operations by working closely and effectively to deliver the Best Customer Experience.”

Page 4: Goal Initiative 2013 Performance 2014 Target Partners.pdf · Development plan for every partner group including local contractors, sale agents, retailers and content developers

AIS Sustainability Report 2013 023

Building win-win Partnerships for Mutual GrowthThe AIS ecosystem enables us to collaborate closely with business alliances and partners to develop innovative products and solutions that deliver the best customer experience. The AIS ecosystem consists of 5 main elements as shown below:

ThesuccessofthisconceptisreflectedinTelewiz’sfinancialperformanceandcustomersatisfactionrates,both of which have continually increased.

NETWORK

Telewiz Financial Performance

Devices

BusinessAlliances

SolutionPartners

ContentsCustomerAssistant

2012 20132011

Bt 400mn Bt 400mn

Bt 500mn

Page 5: Goal Initiative 2013 Performance 2014 Target Partners.pdf · Development plan for every partner group including local contractors, sale agents, retailers and content developers

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Strengthening Partner’s Capacity

AIShasimplementedtheAISWayfortheTelewizprogram,whichhasbeenrunningfor10years.TheAIS Way is aimed at developing the competencies of Telewizpersonneltobeatthesamelevelasthoseof AIS personnel, which include the AIS emphasis on a service-oriented culture. Last year, AIS provided e-learningtrainingto240ofTelewiz’snewhires.Todate,AIShastrainedover2,021individualsthroughthisprogram.TelewizGurubyAISisaprogramthatprovidesspecialized training todevelopTelewizpersonneltoDeviceExpertswhoareknowledgeableabout the internet and relevant applications. Today, thereareatotal1,149TelewizDeviceExpertswho

can provide customer with the AIS level of service, as evidenced by the increase in customer satisfaction withthelevelofservicetheyreceiveinTelewizshops.

Inaddition,AIShastrainedTelewizpersonnelacrossthecountryunder theServiceFulfillment (SFF) program,whichfocusesonthecustomizationof packages or service to meet individual customer’s specific demands. AIS also provides basic training forTelewizpersonneltoimprovetheirefficiencyinresponding to application orders and to develop their fundamental skills to meet AIS’s standards.

In total 9,060 Telewiz personnel to receive training and skill development

BeyondTelewiz,AIShasalsolaunchedvariousinitiativestoencouragethedevelopmentofallpartners,suchasanannualAIS-PartnerConferencetobuildthecapabilityofsalesrepresentativesacrossthecountry,fundamental social etiquette, and basic internet protocol use.

Fundamental Training Programs for Telewiz Employees

Device setting and new technology 48%

New product 14%

The AIS Way 12%

New application and system 10%

3G2100 9%

New hire 4%

Telewizshopmanager 3%

Page 6: Goal Initiative 2013 Performance 2014 Target Partners.pdf · Development plan for every partner group including local contractors, sale agents, retailers and content developers

AIS Sustainability Report 2013 025

Developing New Partners

In2012,“AIStheStartUp”waslaunchedtosupporta new generation of creative content and application developers to become business owner. AIS developed aspecialbusinessmodelcalledIncubatedContentPartnerbyprovidingthemmentorshiponbusinessandmarketing know-how and technical development from both Thai and international experts. AIS also brought together funding, resources and leading investment experts to get AIS the StartUp off the ground. The selectedideaswillbecommercializedforAIScustomers as well as for users at the regional level. AIS works closely with our international partner, SingTel.

Lastyear,over1,000participantssubmittedinexcessof100ideas.Thewinningideain2013wasfromthe Noonswoon team, who presented an application that introduces new friends every day at noon. In addition to gaining access to AIS customers, the team alsoreceivedfundingfromtheGoldenGateVenturecompanyintheUSAfordevelopingtheICPmodelincollaboration with AIS.

Thesecondprizewinner, theFOURLEAFteam, developed the AIS iButler, an application to serve corporate customers, specifically hotel operators. With this application, hotel clients can check-in, order meals or request services without having to pick up the phone.

The launch of the “AIS the StartUp” program together with the creative ideas submitted by its participants resulted in over 300 new AIS content developers joining the AIS team. With so many creative minds pushing the envelope of innovation, AIS is delighted to be rolling out a range of newly developed contents and applications to national and international markets.

InThailand, initially therewereonly250majorapplicationdevelopers.To address this shortage, AIS is promoting ‘AIS the StartUp’, which aims at building and expanding the community of content developers and providing everyone with an opportunity to grow. In the recent event, over 300 SMEsparticipated,whichcontributedtothedevelopmentofatleast30new applications, some of which are already at the commercial stage, while others are due to be launched soon. In this way, AIS serves as a bridge to success by allowing innovative startups to fulfill their potential by offering them the immense advantage of being able to distribute their ideas in major markets both at national and global levels.”

Mr. Prattana Lepanang SVP-DigitalProductsandServices Source:ASTVOnlineManager-13February2013

Page 7: Goal Initiative 2013 Performance 2014 Target Partners.pdf · Development plan for every partner group including local contractors, sale agents, retailers and content developers

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Our people

Page 8: Goal Initiative 2013 Performance 2014 Target Partners.pdf · Development plan for every partner group including local contractors, sale agents, retailers and content developers

AIS Sustainability Report 2013 027

Employee Development Policy

AISbelievesthatemployeesarethecompany’smostvitalresourceandintegraltodrivingorganizationalgrowthandsustainability. “AIS is ready to grow with you” is AIS’s commitment to taking care of our employees by providing career advancement opportunities as well as a good work environment through a culture that nurtures the bond betweenemployeesandemployersothatAIScanbethe‘right’organizationforeveryemployee.

AIS’sEmployeeDevelopmentPolicyspecifies4areasofemployeecareasfollows:

Our People

1. Recruiting and staffing to meet business expansion

Due to an increasingly competitive market, there is a significant need for talented and knowledgeable employeestoserveasthedriversoforganizationalsuccess. An effective recruitment process is an important step in selecting the right employees. AIS improved our recruitment procedures and tools by combining the best hiring practices of leading companies from various fields, such as statistics, psychology and management standards, to serve as a recruitment platform to ensure that AIS selects the “right” employees with the skills that can drive organizationalsuccess.

2. Employee development

AIS systematically develops the skills and capabilities of our workforce by requiring employees and their supervisors to mutually develop an individual career development plan which is consistent with the department’sandorganization’sgoalsandisregularlyreviewed.Employeedevelopmentdealswiththefollowing areas:

• Leadershipmanagement;

• Careerdevelopment;

• Knowledgeacquisitionandsharing;and

• Innovationculture,encouragingemployeesto provide input and develop the work process.

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4. Employee wellbeing and work-life balance

Because our employees are part of the AIS family, we implement policies which take care of their health, family and social aspects. As part of our commitment to a happy work-life balance, we provide benefits tailored to employees’ needs and encourage them to spend time with their families during every important occasion.

Apart from a safe and hygienic work place, providing a creative atmosphere is another aspect of work upon which AIS places great emphasis. A friendly work environment will help employees relax and feel at home

3. Human resource management system

With AIS’s engineering and customer service offices located all over Thailand, we developed the ElectronicHumanResources(eHR)systemtoincrease operational efficiency in terms of accessing employee data.

AIS’s performance management system lets employees andsupervisorsagreeonworktargets(Management byobjective),whilesupervisorsprovideguidance,coaching, performance appraisal, and feedback. AIS focuses on building a work culture based on the organizationalvalueof “FASTMOVING”wherebysharing knowledge and expressing creativity are encouraged. We promote employees’ involvement inCorporateSocialResponsibility(CSR)programsnot only to give back to the wider society, but also to support employees in helping their colleagues when they encounter problems through our ‘friend helps friend’ program. AIS develops and promotes our employees to be altruistic and we inspire them to be good role models for society.

Page 10: Goal Initiative 2013 Performance 2014 Target Partners.pdf · Development plan for every partner group including local contractors, sale agents, retailers and content developers

AIS Sustainability Report 2013 029

People Targets and Performance Table

Building a top-tier team

Engaging with our employees

Occupational Health and Safety at work

Nurturing talent

Training and activities leading to tolerance and understanding of individuals to ensure work efficiency and excellence in team work.

Building employees engagement through various activities such as on-boarding, providing scholarships to employees’ child, and giving welfare that is above the legal requirements.

Training for executive level security, management level security, supervisory level security, and technical and vocational level security.

Learning opportunities in different forms for employees such as providing training and development activities whicharecategorizedaccording to each employee’s level

Achieved training goal for 885targetparticipants.

Achieved 70% of engagement level in the BestEmployercriteriaspecifiedbyAeonHewitt(Thailand)Co.,Ltd.

Achieved the number of participants on the following training program:

Management Level Security Officers: 76 participants

Supervisory Level SecurityOfficers:290participants

CoursesforHygieneandSafety at Workplace committee:102 participants

Organizedover103hoursof training for executives to develop their task and human management skills while enriching their perspectives.

Organizedover90hoursof training for management and professional level staff to develop their team management skills.

Organizedover186hoursof training for operational staff to develop their knowledge and work skills.

Achieve the training goal for target employees.

Achieve employee engagement level not lessthanthatof2013.

Providetrainingfor executives and employees not less than thatof2013.

Continuallydevelopprograms in proportional numbers not less than the programs developed in2013.

Goal Initiative 2013 Performance 2014 Target

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Promoting business code of conduct and ethics

Instillation of employee awareness of business code of conduct.

Provided10trainingonBusiness code of conduct seminar with chief executive operation andover200operationalstaffs from different fields of work

Providetrainingfor executives and employees not less thanthatof2013.

“All 10,000 AIS employees are integral to the growth and sustainability of the organization. Thus, AIS is committed to developing a top-tier team of people who will contribute to the creative work environment at AIS. ”

Building a Top-Tier TeamAt AIS, we take care of our employees by providing career advancement opportunities as well as a good work environment through a culture that nurtures the bondbetweenemployeesandtheorganization.Thisfocus on employee engagement serves to attract and retain our talents to stay with us for the long term. Our continued efforts have led AIS to be ranked as the‘BestEmployer2013’*byAeonHewitt(Thailand)Co.,Ltd.

Attracting and Retaining

Last year, AIS received over 35,000 applicants, 40% of whom were fresh graduates and 60% experienced professionals. AIS administers personality tests to all applicants to ensure that we recruit employees who share AIS’s values. The Behavior Based Interview methodology was implemented to help the hiring committee select the most suitable employees.

To ensure a transparent recruiting process, AIS encourages everyone to take up the opportunity of working with AIS through events such as AIS’s GuidanceWorldofWorkwhereAISprovides

guidance to future graduates on job hunting or adjusting to the workplace. The “University Roadshow”, a means of introducing AIS to fourth-year university students, is another way to help university students build their confidence before entering the working world and is complemented by the ‘GrowingwithAIS’projectwhichisasummerinternship program. Meanwhile, the AIS open house is a method of recruiting call center staff. These programs provide equal opportunities for all individuals regardless of sex, gender, age or physical impairment, including special opportunities for the hearing impaired or visually challenged to work with AIS.

Remark: *The 2013 Best Employer award is based on the results of a survey conducted by Aon Hewitt in collaboration with the Sasin Graduate Institute of Business Administration of Chulalongkorn University. AIS ranked number 1 from 9 surveyed organizations to receive the Best Employer award.

Goal Initiative 2013 Performance 2014 Target

Page 12: Goal Initiative 2013 Performance 2014 Target Partners.pdf · Development plan for every partner group including local contractors, sale agents, retailers and content developers

AIS Sustainability Report 2013 031

“Thereare10,000employeesatAIS,80%ofwhomareGenY.However,our full workforce is composed of people from all generations. Therefore, we must understand each generation’s viewpoint and find the right balance in responding to each generation’s needs in order to achieve our common goal, which is serving the customers. It is essential that our employees share AIS’s vision, so we have developed a practical framework with a focus on quality that every employee can implement.”

Mrs. Vilasinee Puddhikarant ChiefCustomerOfficer

Nurturing TalentOnce employees pass the selection process and join the AIS team, we are fully committed to building strong bonds and long-term relationships with them by providing a range of learning and development opportunitieswithintheorganization.AISprovidesvarious training courses appropriate to each

employee’s work experience, career path, responsibilities and current role, such as executive, talent, first line manager, middle line manager, or operationalstaff.Trainingcanalsobecategorizedbythe employee’s functional/professional competency.

Employment Development

Employee levelAverage training

hours per employee Training focus and goal

Executive

Management level/Professional

employee

Operational staff*

103hrs

90 hrs

186hrs

Emphasisondevelopingbusinessadministrationand human resource management while enriching perspectivesthroughprogramssuchasChiefandExecutiveDevelopment,Classroom,WorkshopandCoaching.

Emphasisonthedevelopmentoffunctionalskillsspecifictoeachcareerpath,suchasEfficientSalesRepresentativeforSMEclients,Advertisingon Social Media as well as courses on the development ofmanagementskillse.g.TeamPerformanceManagement and First Line Management

Emphasisonthedevelopmentoftechnicalandfunctional skills to enable employees to perform their assigned roles and responsibilities such as 3G-specificcourses,i.e.deviceandnetworksetting,SAPbusinessprocessesinfinancialaccounting.

Remark: *Excluding temporary staff

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Quality Improvement Program (Lean Six Sigma: LSS)

AISrecentlyimplementedLeanSixSigma(LSS)todriveorganizationalexcellencebyreducingerrors or damage to products and services. We set a strategy for each plan and initiative to align withorganizationalefficiencyandinternationalstandards.ToachievetheLSSgoal,AISorganized traininganddevelopmentcurriculaonLSSfor127employeesfrom27programsfromeverydepartment. We also specified reward criteria for outstanding programs. LSS will help accelerate AIS’s operational efficiency by expanding the knowledge and capacity of employees while ensuring consistent delivery of the best customer experience.

AIS culture - Triple I• Individualtalents• Ideagenerations• Infinitechanges

Knowledge Management

Knowledge management system: In2005,AISdeveloped Knowledge Management System named Nokhooktosystematicallyshareorganizationalknowledge and experiences as well as to serve as amodelforworkexecution.By2013,thesystemcontained over 6,000 items, and had been accessed by4,879uniqueusers.

e-Learning

AISofferedover1,670self-learningcoursesfor every field of the company’s operations and management level. The e-learning system covers4mainareas:CustomerServiceand CustomerCare,CustomerCareandDevice Usage, Management Development and Management Psychology,andEngineeringandITKnowledge. In 2013, 6,890 unique users accessed the e-Learning system.

English Language Development program

AIS invests over Baht 700,000 annually todeveloptheEnglishlanguageskillsof our AIS shop and call center staff. We also provide incentives for those withEnglishproficiency.In2013,over173ofouremployeesreceivedEnglishlanguage training.

Page 14: Goal Initiative 2013 Performance 2014 Target Partners.pdf · Development plan for every partner group including local contractors, sale agents, retailers and content developers

AIS Sustainability Report 2013 033

Eureka Project – Recognizing Innovation

Eurekaisaninitiativetoencourageproduct,serviceandprocessinnovationbyouremployeeswithafocusoncustomersatisfaction,increasedrevenueandsocialresponsibility.TheEurekainitiative reflects the AIS culture which constitutes the Triple I elements - Innovative, Infinite ChangeandIndividualTalent-throughacompetitiontoproposenewideasatbothindividualandteamlevels.Therelevantcommitteeforeachofthe8fieldsofworkactsascompetitionjudge.

Sinceitslaunchin2005,thenumberofparticipantsintheprogramhasincreasedsubstantiallywithover3,500participantsandover700ideasproposedin2013,a34%increasefrom2012when2,600employeesparticipated.Thenumberofsubmissionsalsoshowedasubstantialincreasefrom228ideasin2012to720in2013.Thisyear,theEurekaBestAwardwenttotheTechnicalOperationsNortheastteamwiththeir“NEDinfoAnyGWeCan”submission.Theinnovationisan application for use on the iOS platform which links various factors which contribute to network stability including voice and data quality, number of users, identification of areas with network problemsthroughGooglemap.SuchspatialconnectionhelpsAISmanageandmonitorournetworkperformance.Theprogramisalso4Gready.ThisinnovationwillalsosaveAISoverBaht200millionintechnologyprocurementcosts.

Career Development

Performance evaluation and remuneration assessment ismanaged throughAIS’Human PerformanceManagementSystem.Thesystem allows efficient access and management of employee’s data. The process starts with employees mutually set targets with their supervisors which are inlinewithdepartment’sandorganization’sgoal.Performanceevaluation,consultingandcoaching,and

regular review of development plan are then carried with the involvement of supervisors. AIS requires that every employee is to undergo performance reviewprocessforcareerdevelopment.In2013,100%ofouremployeesfromalldepartments received performance reviews.

Employee Engagement

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AIS provident Fund

The AIS provident fund is managed by an external fund management company certified by the Securities andExchangeCommission.ThefundwassetuptoprovideAISemployeeswithawaytosaveandprepareforretirement.Participationinthefundisoptionalbutavailabletoallpermanentstaff.AIScontributestoeach employee’s fund at a fixed rate of 3%-7% of their monthly salary based on the employee’s length oftenure.EmployeeswhohaveworkwithAISformorethan8yearsareentitledtoreceivethemaximumcontribution of 7%.

3P Principle

Pay for Position: remuneration is determinedby the value of the job function and position, based on a survey of prevailing market rates to ensure that our salary structure remains competitive.

Pay for Performance: remuneration is determined through a process of appraising key performance indicators of both individuals and teams.

Pay for Person: remuneration is determined following an assessment of the level of skills, knowledge and market’s demand of individuals.

Remuneration

AISusesthe3PPrinciple,whichwasdevelopedfrom the results of a benchmark study on leading companies within the industry, to ensure that AIS’s compensation structure is competitive enough to attract both fresh graduates and experienced professionals. Last year, AIS implemented a preventive approach to employee retention by ensuring that our employees receive satisfactory remuneration. This approach is different from the former collective approach in which remuneration was adjusted after an employee submitted a resignation letter.

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Career Development

AIS offers self-learning and career development opportunities to our employeesthroughtheAISCareerDevelopmentWebsite,whichisanintranetsite that builds upon the knowledge offered through the e-learning platform. EmployeescanusetheAISCareerDevelopmentWebtoplantheirindividualcareer development.

Talents & Critical Staff Retention Program

This initiative manages remunerations for high performance, high potential employee as well as for critical staff by considering appropriate salary increases. Last year, AIS adopted the Action LearningProjecttoencourageemployeestocreate new ideas. We increased the base salary of424employees(6.7%ofthetotalworkforce).This initiative helped increased employee job satisfaction which in turn leads to better service delivery to the customers.

AIS creates a happy working atmosphere while promoting the well-being and work-life balance of employees by providing a range of amenities and activities in the office, such as nursing rooms, health clubs,chilloutzones,andkaraokerooms.AISalsoencouragesandsupportsouremployeestoformclubsin their areas of interest. We regularly conduct surveys to understand employees’ attitudes and opinions towardthewelfareandbenefitsofferedbyAIS.Aftertheresultsareanalyzed,appropriateadjustmentsaremade to the welfares and benefits offered by AIS to ensure that they respond directly to employee needs.

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Benefit Permanent employees

Contractual employees (Monthly or dailycontract)

Hospitalroomwithon-calldoctorandnurse ✔ ✔

Flexible health insurance ✔ ✔

Annual health check ✔ ✔

Accident and life insurance ✔ ✔

Contributionstospecialevents ✔ ✔

Staff promotions for AIS’s products and services ✔ ✔

Providentfund ✔ X

AISSavingandCreditCooperative ✔ ✔

HealthClub ✔ ✔

Scholarship for employees’ children ✔ X

Increased shift allowance for employees working ✔ ✔ in shifts that are different from AIS’s regular workinghours(approximateincreaseof25%)

Increase vehicle maintenance allowance for ✔ ✔ employees who drive to work, for sales representative and for marketing staff (approximateincreaseof5%)

Employee Grievance Mechanism

At AIS, we listen to the opinions, suggestions or concerns of our employees through a variety of communication channels, such as our grievancemechanism(WhistleBlowing)forreporting violationstocompanyregulationsortheCodeofBusinessEthics,andthe “Anonymousbox”, a suggestion box placed in every restroom in the office where employees can propose their

ideas,whethertheyarerelatedtoorganizational developmentorgoodpracticestotheCEO.In2013,AISalsoinitiatedthe“VoiceofCEO”,awirelessbroadcast which airs every Monday and serves as a communicationchannelbetweenAIS’sCEOandemployees.

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Occupational Health and Safety ManagementLastyear,AISalsoconducted3fireresponsedrills,whiletheAISOccupationalHealthandSafety Committeeorganizedanumberof initiativestopromoteoccupationalhealthandsafetywithinthe organization,suchasproviding8trainingprogramsfor366highrankingsafetyofficersandtheirimmediate subordinates. Occupational health and safety surveillances are performed at each AIS office on a quarterly basis, with identified risks resolved and monitored by the occupational health and safety committee.

To ensure safe operations, AIS administers drug substance testing programs to all contractors’ drivers. For safety and security reasons, contractors who work in the AIS operational area are required to exchange their identification cards for a temporary pass in line with fire prevention standards while AIS’s security personnelandCCTVmonitorthesevisitors’movementsandsafety.Theimplementationofvarious preventive safety measures together with continuous campaigning for occupational health and safety atworkresultedinzeroaccidentsorinjuriesatAISduringworkinghoursin2013,whichrepresentsan improvementoverthepreviousyear’sresultsof3cases.Therewerenoworkfatalitiesin2013.

Promoting the business ethicsTheAIS’Codeofbusinessethicsispartofthe company’s corporate governance policy. The ethics is a set of practical guidelines outlining the appropriate behaviors and actions by which directors, managers and all employees can perform their duties with integrity and honesty. The document covers16mainareasofconductandethicsandisoverseenbytheBusinessEthicsCommittee,whichwasappointedon5April,2013.

Business Ethics in Organization

AIS encourages all executives, employees and partners to be mindful of business ethics, with a focus on preventing conflict of interest issue, including promoting campaigns against the

acceptance of gifts/contributions from partners. In2013,AISconductedvariousactivitiestoraiseawarenessincludingover200trainingsessionstopromote executives and employees to refrain from giving or receiving gifts under any circumstances, while this message was also reinforced through internal communication channels.

Through our active campaign and training, AIS uncovered flaws in the procurement process and one case in which an employee from the marketing departmentviolatedthebusinessethics(conflictofinterest)andcommittedfraudthroughabuseofposition for personal benefit. The said employee was dismissed in accordance with company policy and subject to regulatory charges.

AIS’sperformanceincorporategovernancewasassessedas“Excellent” by The Thai Institute of Directors Association for the five consecutive years

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Business and Ethics Grievance Mechanism

AIS allows all employees to report issues or inquire about any matter related to ethics through the company’ssecretariat,throughtheinternalauditcommitteeorviatheAISEthicsOnlinechannel.Forreporting cases of non-compliance, employees and any stakeholders can leave complaints anonymously throughthe “NokweedHotline3333”,whichcomplieswithAIS’swhistleblowingpolicytoprotectthe identity of reporters. All complaints received are investigated and evaluated in order to determine the most appropriate solutions or measures as well as to prevent further occurrences.

ViolationsoftheBusinessCodeofEthics,andactionstakenbyAISin2013wereasfollows:

Unethical conduct Action

Employeereceivedgiftsinexcessoftheamountspecified as acceptable by AIS and, after accepting the gifts, failed to bring them to AIS property or report the incident to a supervisor.

Employee asked for benefits froman AIS partner.

TheBusinessCodeofConductCommittee, InternalAuditCommitteeandHumanResources Management Department investigated the claim and verifiedtheviolation.Theemployeewaspenalizedin accordance with AIS regulation

TheBusinessCodeofConductCommittee, InternalAuditCommitteeandHumanResources Management Department investigated the claim and verifiedtheviolation.Theemployeewaspenalizedin accordance with AIS regulation

On 16 December 2013, AIS illustrated its commitment to ending corruption within our organization by participating in Thailand’s Private Sector Collective Action Coalition against Corruption (CAC). AIS is currently in the process of analyzing information to improve company policy beyond that already specified in the AIS Business Code of Conduct.

“All gifts and contributions, small or big, whether intended as a form of appreciation or to show gratefulness, and if not part of the annual seasonal greetings, are to be politely refused by AIS employees immediately and without any hesitation.”

Mr. Saran Paloprakarn SVP-Networkand ServicePlanning