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Corporate Social Responsibility

Corporate Social
Responsibility (CSR)
Plays an Increasingly
Important Role in the
Malaysian Business
Arena, and KFC
Holdings (Malaysia)
Bhd (KFCH) has Made
it an Integral Part of the
Groups Culture.

As part of the Groups commitment to


contributing to the wellbeing of the
communities in which it operates, KFCH
embraces its responsibility through
extensive activities within the region.The
Group also never loses sight of the fact
that each decision has an impact on both
employees and customers.
The Group takes CSR very much to heart.
As a corporation, KFCH realises the
impact it makes within its community
and the vital role in sharing and
promoting its CSR principles.As KFCH
takes action to strengthen communities,
develop employees potential, offer
greater opportunities for employment
and education, as well as preserve the
environment, it is with the belief that the
benefits extend to everyone involved.

48

KFC Holdings (Malaysia) BHD (65787-T)


Annual Report 2011

Corporate Social Responsibility

COMMUNITY

Tabung Penyayang KFC

KFCH has always striven to build strong relationships


with the communities in which it operates, and the
CSR initiatives in this area highlight the Groups
dedication. In certain cases, aid takes the form of
purely philanthropic donations to organisations
such as the Kiwanis Down Syndrome Foundation,
the Cancerlink Foundation, Rumah KFC Bakti
Semantan, and the Kuala Lumpur Society of the
Deaf, now known as the Malaysian Federation of the
Deaf. On other occasions, the Group joins community
members by sponsoring and participating in a variety
of events and activities.

Established in 1997, Tabung Penyayang KFC is a


vehicle for the Groups various CSR programmes to
help the needy. Funds are collected for these initiatives
in two ways. First, KFC donates to the fund ten cents
from every Chicky Meal sold. Second, collection
boxes are placed at strategic locations in every
KFC restaurant in Malaysia, thereby encouraging
customers to add their own contributions. In 2011,
Tabung Penyayang made regular contributions to a
variety of charities.

KFCS Feeding Programme

2011 marks the fifth year that KFC and Pizza Hut
participated in the World Hunger Relief Programme.
On 29 October, the Group organised the Step Out,
Stop Hunger 5km charity walk in Putrajaya. Over
10,000 people joined this event, which also featured
a games carnival, musical concerts and various
contests as well as other activities. Over RM2.1
million was collected and distributed to the faminestricken around the world as well as local charities.

Be the Movement Charity Walk

KFCs Projek Penyayang, one of the Groups most


rewarding and beneficial initiatives, is now in its
18th year. Organised four times a year, usually in
conjunction with festive seasons, this programme
sees the distribution of free meals to various charity
homes. In 2011, 150 homes with over 12,000 less
fortunate residents throughout Malaysia benefited
from this programme. By the end of the year, over
48,000 KFC meals were shared.

49

KFC Holdings (Malaysia) BHD (65787-T)


Annual Report 2011

Corporate Social Responsibility

KFC Hearing Impaired Community Care Stores

Football Association of Johor

26 years ago, KFC launched a pioneering effort


of which it is still immensely proud of. Indeed, the
Hearing Impaired Community Care Stores have
attracted worldwide recognition. Malaysia now
boasts four KFC restaurants run entirely by speechand hearing-impaired staff, offering 60 members of
this community independence and empowerment.
KFCs Hearing-Impaired Community Care Stores
are located in Sentul Raya (Kuala Lumpur), Tanjung
Aru (Sabah), Saujana (Sarawak) and Taman Masai
(Johor).

In 2011, KFC commenced sponsorship of this


sporting association, joining the teams royal
patron, DYMM Sultan Ibrahim Ibni Almarhum Sultan
Iskandar, Sultan of Johor, in supporting the team as
it represented the state in national competitions.
International Childrens Day
KFCs involvement with International Childrens
Day began in 1994. On 22 October, the Group
contributed to the 2011 celebration, which was held
at Sri Pentas. YB Dato Sri Shahrizat binti Abdul
Jalil, Minister of Women, Family and Community
Development officiated at the event, where over
6,000 children enjoyed the Kids Parade, board
games, cake decorating competition, colouring
contests and more.

Buka Puasa with Orphans


On 10 August 2011, KFC Malaysia contributed
duit raya, KFC vouchers and food to a buka puasa
gathering in Batu Pahat, Johor. DYMM Sultan
Ibrahim Ibni Almarhum Sultan Iskandar, Sultan of
Johor, officiated at the event which brought joy to
over 200 orphans from the surrounding areas.

50

KFC Holdings (Malaysia) BHD (65787-T)


Annual Report 2011

Corporate Social Responsibility

International Kite Festival

Utusan Sepaktakraw

For the second year in a row, KFC sponsored the
KFC-Utusan Sepaktakraw tournament. The Grand
Finale, held at The Curve, Petaling Jaya, was
attended by YB Dato Ahmad Shabery bin Cheek,
Minister of Youth and Sports.

KFC Malaysia was the main sponsor of the


International Kite Festival, organised by the Pasir
Gudang (Johor) City Council in February 2011.
As visitors enjoyed the colourful kites in the sky,
they were also able to sample KFC, RasaMas and
Ayamazz Roti Impit meals at the venue.

51

KFC Holdings (Malaysia) BHD (65787-T)


Annual Report 2011

Corporate Social Responsibility

and procedures adhering to halal requirements, and


employees are devoted to maintaining the most
rigorous standards.

Malaysian Yacht Association


Since 2007, KFC has been very active in Malaysian
yachting, contributing every year to the Malaysian
Yacht Association. In 2011, the Association held
regattas around Malaysias coasts and islands,
including Langkawi, Penang and Terengganu.
The regattas attracted international participation
with entrants from countries such as Australia,
New Zealand, Brazil, Mexico, USA, South Korea,
Cambodia, Sri Lanka, India and Hong Kong.

The Halal Food Standards Realisation (HAFSTAR)


programme was developed by the Halal Development
Corporation (HDC) and the Department of Standards
(SIRIM) to promote Malaysian halal standards. KFCH
is an active participant in the programmes events
which occur all over Malaysia and provide a forum
for discussion and education.
In April 2011, KFCH set up an exhibitors booth at
the Malaysian International Halal Showcase (MIHAS),
Malaysias largest food and beverage exhibition. The
fair drew over 16,000 people and gave the Group an
excellent opportunity to share its halal-certified foods
and services with an international audience.

MARKETPLACE
Halal Initiatives
One of the most essential aspects of the Groups
continued success is its insistence upon strict halal
compliance. Customers rely upon all KFCH products

52

KFC Holdings (Malaysia) BHD (65787-T)


Annual Report 2011

Corporate Social Responsibility

WORKPLACE

Restaurant Managers Convention

KFCH is currently one of the largest employers in


the food sector industry in the region, with a team
of over 24,000. The Group acknowledges the
substantial role personnel have played in its success,
and to reward the hard work and fuel the personal
and professional development of its staff, various
events are organised throughout the year. The Group
believes that each individual plays an important role
in contributing to the success of the company. To
reward its staff for their dedication, commitment and
hard work, various activities were organised.

The KFC Restaurant Managers Convention was held


at Nexus Karambunai Resort in Sabah. For their roles
in Making KFC So Good (which was the theme of
the 2011 convention), the managers celebrated
each others accomplishments at award ceremonies
and enjoyed some well-earned relaxation on outings
to the Mount Kinabalu foothills and nearby Mamutik
Island.

53

KFC Holdings (Malaysia) BHD (65787-T)


Annual Report 2011

Corporate Social Responsibility

National Ayamas Challenge

Champs Challenges

In 2011, Kedai Ayamas and RasaMas introduced a

The 2011 National Champs Challenge took place

nationwide initiative for staff with the aim of setting

from 26-27 April at the KFC Subang 2 Drive-Thru.

and maintaining superior standards in customer

11 teams competed: nine teams from Peninsular

service by way of a fun-filled competition. More than

Malaysia and one team each from Sabah and

60 employees in 16 teams took part in the inaugural

Sarawak. At the end of the event, the five best team

competition. The finals were held in December at

members and manager were chosen to represent

Wisma KFC, and the winning teams and individuals

Malaysia in the Regional Champs Challenge in

won a range of trophies and prizes.

Jakarta, Indonesia in November 2011. Ten teams


competed at this event, and the Malaysian team
came home with five individual and executional
awards.

54

KFC Holdings (Malaysia) BHD (65787-T)


Annual Report 2011

Corporate Social Responsibility

Hari Mekar Quality Day

Gerak Kemas

The Groups holding company, QSR organises its

KFCH introduced its own 5 Sigma (5S) initiative at

popular annual event, Quality Day or better known as

Wisma KFC in 2009. The goal of this programme,

Hari Mekar. Every December, Hari Mekar brings teams

known as Gerak Kemas (GK), is to ensure office

of employees together for one day to compete in

cleanliness by discarding unwanted items like empty

quality-related contests. It is a vibrant forum in which

boxes and obsolete documents. GK has since

employees present their ideas for new methods and

become an annual spring cleaning event at Wisma

projects to increase productivity and reduce costs.

KFC. In 2010, staff successfully incorporated the

The winners of the QSR Hari Mekar proceed to the

Hazard Hunt as part of the GK programme, whereby

JCorp Hari Mekar, where they compete against

employees identify potential hazards in the office

teams from JCorp and all its subsidiaries. They also

environment. This in turn raised the endeavour from

go on to represent QSR at the Malaysia Productivity

5S to 6 Sigma (6S).

Corporation (MPC) Awards. The overall winner at the


JCorp Hari Mekar for the fifth consecutive year was

In 2011, the 6S audit was launched, involving all

KFCHs holding company, QSR.

personnel in Wisma KFC. The Gerak Kemas Audit


Committee carried out two separate audit sessions
during the year. The aim of these exercises is to

Bank Negara Malaysia GP2000

inculcate the 6S culture amongst all staff and to


In 2011, Bank Negara Malaysia organised the

promote a sense of mutual responsibility for safety

GP2000 programme. The programmes objective is

and cleanliness in their office environment.

for participating companies to provide training and


employment opportunities for 200 recent graduates

THE ENVIRONMENT

from low-income backgrounds. KFCH joined the


programme in 2011, and as of 1 June, had selected

KFCH is concerned with the impact that its

four candidates. By the end of the training period,

operations have upon the environment. The Group

all four candidates were accepted as permanent

consistently aims to find ways to deploy ecologically

employees.

sound practices whilst maintaining its high levels of


product quality and shareholder value.

55

KFC Holdings (Malaysia) BHD (65787-T)


Annual Report 2011

Corporate Social Responsibility

Ayamas Port Klang

Bakery & Commissary

Since 1998, Ayamas Port Klang has operated its own

The Bakery and Commissary divisions, based at

waste water treatment facility. The final discharge

Kompleks KFC Glenmarie, also operate their own

earns the Malaysian Department of Environment

waste water treatment plant. Releasing treated water

(DOE) rating of Standard B. The Group has since

which meets the DOE Standard B rating, it employs

invested approximately RM5 million in upgrading

a Biological Treatment System, which consists of

the facility a number of times. The facility uses two

an Up-Flow Anaerobic Sludge Bed (UASB) and

different waste water processes, a Continuous

Alternative Intermittent Cyclic Reactor (AICAR).

Processor and a Sequential Batch Reactor (SBR)


process. At present, the plant treats approximately

Region Food Industries

2,000 cubic metres of waste water discharge per


In 2004, Region Food Industries Sdn Bhd (RFI), the

day.

Groups sauce manufacturing division, deployed its


own waste water treatment plant. The final discharge

Ayamas Bandar Tenggara, Johor

meets the DOEs Standard B rating, and the plant


In 2009, the Group opened its second waste water

treats about 250 cubic metres of waste water per

treatment facility at Ayamas Bandar Tenggara, Johor.

day using a continuous biological and chemical

This facilitys final discharge is in compliance with the

process. In 2009, to reduce its environmental impact,

DOE Standard A. Built at a cost of RM2 million, this

RFI also upgraded its burner to enable its production

waste water facility uses only the SBR process, and it

machinery to use natural gas instead of diesel.

treats 800 cubic metres of final discharge waste water


per day.

56

KFC Holdings (Malaysia) BHD (65787-T)


Annual Report 2011

Corporate Social Responsibility

LOOKING AHEAD

In the years ahead, KFCH will continue to fulfill its


role as a responsible corporate citizen by working

In partnership with its holding company, QSR, KFCH

in close cooperation with the communities in which

has set up the Yayasan Amal Bistari (YAB) to form the

it operates because, in the final analysis, the most

framework and oversee funding of all CSR initiatives

effective way to enhance the lives and environments of

by both QSR and KFCH. Under the YAB umbrella,

those communities is through the direct involvement

it has succeeded in boosting the effectiveness and

of the Group and its people.

organisation of its CSR endeavours by creating


awareness of the Groups activities.

57

KFC Holdings (Malaysia) BHD (65787-T)


Annual Report 2011

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