Warisan Garden Centres Sdn. Bhd. (Warisan) is a private company which operates a group of garden...

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Warisan Garden Centres Sdn. Bhd. (Warisan) is a private company which operates a group of garden centres in Kedah. The board of Warisan intends to go public to obtain funds for its future expansion. In preparation for this goal, the board is planning to adopt the relevant principles and practices on Malaysian Code on Corporate Governance 2021 (MCCG), especially on how to improve the company's approach to corporate social responsibility (CSR), including its engagement with stakeholders and in its corporate reporting. Two of the executive directors have expressed concerns about whether it is right to be increasing Warisan's emphasis on CSR matters, but a majority of the Board were in favour of it. The Board has therefore agreed to set up a staff focus group on CSR matters. The focus group is made up of representatives of staff and management. The Company Secretary, Molly Wong, is chair of the focus group and has been asked to report back on the group's findings and recommendations at the next Board meeting. At the first meeting of the focus group, the main issues raised by the staff members were: • the company should disclose more about its environmental impact; • there is no ability for staff to provide comments on CSR matters, which are not covered in the annual staff survey; and • Warisan does not have any Key Performance Ind cators (KPIS) in relation to non-financial performance. Warisan has this month been the subject of adverse social media criticism about one of the suppliers for the products that it sells, because the supplier has been accused of using child labour. The Board is concerned about the reputational impact of this criticism. The Board is also worried that Warisan's profitability has deteriorated over the last year and that sales may be impacted by a new competitor business which is opening a garden centre next month near to one of the Warisan centres. The Board has asked the audit committee to review the company's risk register in light of these concerns and has also asked the audit committee to consider what should be done about reputational risks, including the allegations of child labour. Warisan's risk register was last reviewed six months ago, and it does not currently include reputational risk. (a) Explain, with reference to the four main categories of the role of a Company Secretary, how Molly Wong can assist the focus group and the Board on corporate social responsibility issues. (b) Discuss how the Board of Warisan should approach the review of the risk register, and the ways in which the reputational risks to Warisan can be managed and mitigated. Warisan Garden Centres Sdn. Bhd. (Warisan) is a private company which operates a group of garden centres in Kedah. The board of Warisan intends to go public to obtain funds for its future expansion. In preparation for this goal, the board is planning to adopt the relevant principles and practices on Malaysian Code on Corporate Governance 2021 (MCCG), especially on how to improve the company's approach to corporate social responsibility (CSR), including its engagement with stakeholders and in its corporate reporting. Two of the executive directors have expressed concerns about whether it is right to be increasing Warisan's emphasis on CSR matters, but a majority of the Board were in favour of it. The Board has therefore agreed to set up a staff focus group on CSR matters. The focus group is made up of representatives of staff and management. The Company Secretary, Molly Wong, is chair of the focus group and has been asked to report back on the group's findings and recommendations at the next Board meeting. At the first meeting of the focus group, the main issues raised by the staff members were: • the company should disclose more about its environmental impact; • there is no ability for staff to provide comments on CSR matters, which are not covered in the annual staff survey; and • Warisan does not have any Key Performance Ind cators (KPIS) in relation to non-financial performance. Warisan has this month been the subject of adverse social media criticism about one of the suppliers for the products that it sells, because the supplier has been accused of using child labour. The Board is concerned about the reputational impact of this criticism. The Board is also worried that Warisan's profitability has deteriorated over the last year and that sales may be impacted by a new competitor business which is opening a garden centre next month near to one of the Warisan centres. The Board has asked the audit committee to review the company's risk register in light of these concerns and has also asked the audit committee to consider what should be done about reputational risks, including the allegations of child labour. Warisan's risk register was last reviewed six months ago, and it does not currently include reputational risk. (a) Explain, with reference to the four main categories of the role of a Company Secretary, how Molly Wong can assist the focus group and the Board on corporate social responsibility issues. (b) Discuss how the Board of Warisan should approach the review of the risk register, and the ways in which the reputational risks to Warisan can be managed and mitigated.

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A a Molly Wong as the Company Secretary can assist the focus group and the Board on corporate social ... View the full answer