Sustainability has always been an important factor which we incorporate into our business at KOSSAN. While aiming for top financial performance and growth, we believe that it should be done in line with the highest standards of corporate and social responsibility (“CSR”).
We are committed to integrate corporate responsibility and sustainability across every aspect of our business. That is why we launched Yayasan Kossan in December 2015 to facilitate a well-structured, organized and focused platform to carry out KOSSAN’s Corporate Social Responsibility efforts effectively and with strong impact in reaching out to those in need.
KOSSAN’s CSR agenda is fully aligned with Bursa Malaysia’s CSR Framework for Malaysian Corporations. Our CSR programmes and initiatives rest on four pillars: Marketplace Development; Workplace Development; Community Development and Environment preservation.
From its early days, Kossan has been a firm believer in R&D as the way forward in a dynamic and competitive business. As the industry matures, Kossan, like other industry players, is moving into third generation automation and robotics to remain cost competitive and efficient. In line with its Sustainability Policy, Kossan continues to invest heavily in R&D and technology to meet global quality and productivity expectations. We are constantly looking to develop products of tomorrow, supplying global markets with improved gloves for surgical, medical examination, household and industrial use. A significant milestone was achieved on 1 September 2016, when Kossan officially launched its patented Low Derma Technology. The Intellectual Property (“IP”) of our Low Derma Technology has been registered in the US, Japan and China, amongst the largest consumers of nitrile gloves in the world. It joins a growing list of patents already held by Kossan to protect its products in the marketplace, reinforce its brand presence and maintain its market position. The technology has resulted in a revolutionary, new generation nitrile glove which made its debut under Kossan’s house brand 7th Sense. Kossan is set to open its first R&D centre in fourth quarter 2017. The new research centre will open a new chapter and enhance Kossan’s research and development activities and potentials.
Ethics, integrity and transparency have increasingly become mainstream business issues in today’s business environment. In June 2014, the Company issued the Kossan Code of Ethics and Conduct as a guide to all employees and directors in conducting business ethically and sustainably. Additionally, a Whistle-Blowing Policy and the relevant mechanisms have been established, providing an avenue for employees and the public to lodge complaints of corrupt practices or wrong-doings in confidence. As part of a continuing effort to educate on corruption and code of ethics, talks and trainings have been organised for new recruits as well as for existing employees. In managing our supply chain, we work collaboratively with our vendors and suppliers to conduct our businesses ethically in line with our corporate core values of Integrity, Respect and Professionalism. Kossan believes in a level playing field in dealings with third-party contractors, ensuring that the principle of fair competition is upheld at all times. Even as we grow, we ensure that our growth is inclusive through various initiatives, such as our Vendor Development Programme. Annual satisfaction surveys are carried out to ascertain areas for mutual improvements.
To keep pace with the projected demand and sustain our business growth, Kossan has plans to double its existing production capacity from the present 22 billion pieces to 44 billion pieces by the year 2023. Currently, there are three expansion projects in the pipeline. The first will see the construction of a nitrile glove plant on a 10-acre piece of land at Meru, Klang with a capacity of 3.0 billion pieces per annum which is expected to be completed and commence production in July 2017. The construction works for the other two projects, with combined capacity of 4.5 billion pieces per annum to be built in 2 different plot of lands in Meru are expected to kick-start in stages from second quarter 2017 onward and is expected to be completed in the first and third quarter of 2018.
The commissioning of the three new plants in 2017/2018 will boost Kossan’s glove manufacturing capacity by 7.5 billion pieces per annum and bring the total capacity to 29.5 billion pieces of gloves per annum by end of 2018. These new plants will increase our revenue stream, underpinning Kossan’s earnings from FY 2017 onwards. Another bigger scale expansion project will be the development of the 56-acre site at Bestari Jaya, Selangor, to be implemented over four years in four phases with combined capacity of approximately 18 billion pieces of glove until the year 2023. Each phase will see the construction of one plant, with the first scheduled for construction by the end of 2018.
As an equal opportunity employer, our workplace terms and conditions of employment are opposed to any form of discrimination, upholding the fundamental human rights protected by legislation.
The safety and health of our employees at the workplace has always been a paramount consideration. Kossan seeks continuous improvement in occupational safety and health of our employees and those who may be affected by the work activities and is committed to comply with the relevant laws and regulations prescribed by the Department of Occupational Safety and Health (“DOSH”). To ensure compliance and a safe working environment, Kossan has a dedicated Safety Department reporting directly to the Executive Director. Kossan believes in a proactive approach in managing health and safety related issues. Our Safety Department continually reviews the system that is in place, and if necessary, new measures are introduced to improve safe and hygienic working conditions and/or minimise workplace accidents. Kossan has also established a Work Safety Committee that has been tasked to improve safety and hygiene conditions on the production floor and premises.
Employees are a vital component of a company’s business. Their performance, commitment and loyalty to the job are critical not only in achieving the company’s goals and objectives but most important for its long-term survival and sustainability. In this respect, Kossan is embarking to enhance its human resources department and capabilities to develop a strong human capital foundation by strengthening the leadership and adopting effective HR practices as well as attracting and retaining the right talent.
To accomplish this undertaking, Kossan envisages to invest resources to ensure that employees have the knowledge, skills, and competencies they need to work effectively in a rapidly changing and complex environment. Human capital development, therefore, becomes a part of an overall effort and strategy to achieve cost effectiveness and performance.
Kossan is pleased to be recognised for doing the right things in the key area of human resource management. This was borne out when we were named by the Employer Branding Institute (“EBI”) as one of the recipients of Malaysia’s Best Employer Brand 2016 and Asia’s Best Employer Brand 2016. The EBI brings together senior human resource practitioners to share and celebrate the best practices in Employer Branding in several Asian countries.
We are constantly nurturing the skills and knowledge of our employees. As part of their induction programme, all new recruits go through the Kossan Employee Engagement Programme (“KEEP”). This is a platform used by the Group Chief Executive Officer (“CEO”) to share the Company’s Vision and Mission and impart his personal knowledge and words of wisdom. As part of the induction process, the programme includes a session on “Jom! The Kossan Way”.
To ensure the effectiveness of the training effort, Training Needs Analyses (“TNA”) are conducted annually to ensure the relevance of the programmes to suit individual requirements.
Reprising the success in 2015, one of the highlights of the training calendar 2016 was a revisit to Franklin Covey’s signature programme, “The 7 Habits of Highly Effective People”. The programme was conducted over several sessions for staffs at the supervisory, executive and managerial levels and the key points were cascaded down through sharing sessions.
We believe fulfilling our dues to society should not solely involve the Company, but also from individuals as well. Kossan has always encouraged its management and staffs to be involved in welfare work and charity and we are pleased that the spirit of giving is very much alive within the Group.
Yayasan Kossan was established in December 2015 as our platform to play a more meaningful role in our community outreach programmes to create an environment of inclusion and acceptance. Traditionally our key focus has been in the areas of education, welfare and charity, and cultural development, including the arts and performance. Currently Yayasan Kossan is adopting a more holistic approach in identifying long-term projects that are most relevant, needed and impactful.
Kossan supports the various charity organisations, schools and worthy causes via donation and sponsorships. During the year, besides providing financial aids and donations to individuals, schools and charitable organisations, Kossan has also sponsored the organising of the Asian Art Exhibition and the purchase of physiotherapy equipment for the Handicapped and Disabled Children Association of Klang.
Under our signature “Project Smile”, many of our staffs have volunteered their time and efforts to participate in many community projects, such as beautifying a rural school or visiting an Orang Asli community in the heart of the rainforest. For many of the participants who delivered clothing, food, drinking water and toys to the rural community, volunteerism has been a truly rewarding experience.
Kossan’s internship programme was established back in 2000 to enable students at diploma and post-graduate levels in both technical and non-technical disciplines to receive on-the-job training. Upon completion of the programme, exceptional and deserving candidates were offered job opportunities within the Group. For the year 2016, a total of 34 students have benefited from our internship programme.
Over the past two years, Kossan has also offered 30 scholarships and education subsidies to eligible students in need of financial assistance to enable them to continue with their studies. Industry visitations to our manufacturing plants were also organized for students from tertiary institutions as a platform for them to learn and better understand the manufacturing process of gloves.
In a world increasingly concerned about environmental preservation, Kossan has long taken environmental stewardship in its stride as an integral part of its strategy towards sustainability. Kossan is committed to play its role as a responsible corporate citizen.
From the time of our establishment since 1979, Kossan has always committed to comply with the legal and regulatory requirements of the Malaysian Department of Environment (“DOE”) and other regulators and authorities. To this end, environmental protection measures and considerations have long been embedded in our manufacturing processes and day-to-day operations. Emphasizing the importance of environmental preservation, we have realigned our Mission Statement to reflect our aspiration to be “a good and responsible corporate citizen with effective policies to protect the earth and promote sustainability”.
Over the years, Kossan has relentlessly adopted the environmental best practices in its manufacturing processes. We have adopted the EMS as the framework to help achieve our environmental goals through consistent control of our operations. Two of our manufacturing plants for technical rubber products have already earned certification to ISO 14001:2015, the core set of internationally recognised standards for designing and implementing an effective EMS. Our target is to achieve certification for all our plants over the next five years in order to further enhance our responsibility towards our environment.
A particular concern is the discharge of hazardous chlorine gases as by-products of the manufacturing process. All our plants are installed with scrubber system that filters and removes toxic chlorine before discharging the emissions into the atmosphere.
Waste production is inevitable as part of our business’s manufacturing process. However, solid wastes are segregated into their respective categories – metal, rubber, paper, plastic, wood and other recyclable materials – before they are sent to regulator-approved companies for proper disposal or recycling. As a business, we see waste as an additional cost to production. All heads of our manufacturing plants are therefore reminded from time to time to minimise waste and this has formed an important part of their key performance indicators.
We are determined to make tomorrow a better place for all of us. With the establishment of Yayasan Kossan, we are taking a more holistic approach to CSR in identifying long-term projects and to see where our initiatives are most relevant, needed and impactful.