Corporate Social Responsibility

1.Policy Overview

KTC has aimed to pursue its continuing business growth as well as uphold its corporate social responsibility by providing the best interest to all stakeholders in every perspective. As The company performs its businesses in credit card and personal loan which are ones of the driving forces in domestic economy, it has focused on its social development by initially creating itself to be a learning and knowledge-sharing organization and then passing through that idea to outside society without any limitations. The company believes that everyone has potential for learning development, yet the disadvantaged group might be overlooked or neglected. Therefore, KTC has specifically provided learning opportunities to the disadvantaged not only for the disabilities but also for community schools both in nearby neighborhood and in distant rural areas.

The company has focused on performing its businesses based on its responsibilities towards all stakeholders involving in its entire working process by applying the management model of ‘Membership Company’ which emphasizes on member centricity. The company has continuingly provided new, unique and creative innovations in both products and services, along with all-round privilege offers and benefits. In addition, safe, convenient and efficient business operations have been implemented to ensure customer’s confidence. Furthermore, credit card and personal loan customers have been encouraged to create sensible spending plans in order to avoid excessive debts. Within the organization, The company has emphasized on giving its employees any opportunities in developing their potentials. It has also created unified corporate culture by arranging good working environment and atmosphere, providing modern and appropriate office equipment, as well as organizing various activities to promote friendship and unity among its employees.

2.Operations and CSR Reporting

KTC has adopted standards for developing its operating procedures and generating its CSR report based on CSR guidelines from the Stock Exchange of Thailand (SET) and the international framework developed by GRI or Global Reporting Initiative in which both are widely accepted among socially responsible organizations and people working in this field. By applying guidelines from the SET which cover every issue needed to be presented in sustainability report both domestically and internationally, the company has not only well initiated its path towards developing its CSR report but also well prepared for organizing its sustainability report in the future.

The company has performed its business operations by continuously offering its customers with new, creative and efficient products and services that also satisfy customer’s needs in all aspect. In doing so, the company has applied lifestyle segmentation in its marketing strategy to differentiate itself from other competitors. It has also consistently offered all-round benefits to customers so that it can accurately respond to customer’s need at appropriate timing. In addition, the company has concentrated on engaging with various expert partnership, together with implementing innovative technologies to enhance its businesses. Moreover, new member acquisition has been focused on quality rather than quantity through various online channels of both the company and its business partners. Self service business has also been improved to meet with current digital lifestyle. Furthermore, the company has targeted to expand its merchants in new types of businesses and in regional markets by providing each counterpart with appropriate KTC Payment Solutions such as KTC QR Code Payment, Alipay O2O (Online to Online) etc. All these mentioned above operations are purposefully focused to satisfy all members and to ensure their bond with KTC Brand, thus ultimately leading The company towards sustainable growth in the long run.

The company has also set up the special unit to monitor its customers’ transactions 24 hours every day in order to deliver timely assistance in case of credit card’s fraud. All the aforementioned factors have helped promote KTC to achieve its goal as the leading company for One Stop Services in consumer financial market. In addition, KTC has run its operations under the close supervision of committees and audit working panels composing of top executives from related departments.

Stakeholder Engagement
The company has prioritized Stakeholder engagement by providing clearly written guidelines for stakeholders in Corporate Governance Policy and Corporate Business Ethics Handbook. Stakeholders, divided by their relevance regarding the company’s business operations, are composed of 10 groups which are Shareholders, Customers, Creditors, Business Partners, Business Alliances, Competitors, Society and Environment, The Board of Directors and Executives, Employees and Government Sector. Suitable guidelines for Stakeholder engagement are established to ensure that Stakeholder’s needs and expectations are appropriately met and acknowledged, and these guidelines can be listed as follows :

The company has emphasized on performing its business operations based on good corporate governance principles in which operational details are explained as follows :

1. Identification of key sustainability issues
   •Analyze sustainability issues and present them to various departments in the company. Also evaluate the impacts of key sustainability issues on the company and its stakeholders. These procedures are listed as follows :
   1) Inside the organization, arrange for brainstorming from every significant departments in form of discussion or meeting in order to achieve both short-term and long-term strategies, along with prepare all related data for the company’s public information disclosure.
   (2) With regards to external stakeholders, customer’s complaints or suggestions are reviewed and acknowledged for their importance and their expectations towards the company
2. Prioritization of key sustainability issues
   • Analyze and review data gathered from the inquiry of the company’s internal departments and its stakeholders.
   • Prioritize key sustainability issues according to their importance to the company’s business operations and its stakeholders. Key sustainability issues are identified as 9 issues which can be defined in Materiality Matrix comprising of
   o X axis : Importance to The company’s business
   o Y axis : Importance to stakeholder

•   Corporate Governance
Long-Term Goal for Sustainability : The company’s corporate governance ranked as ‘Good to Excellent’ by external entities.

• Corporate Governance
  The Board of Directors bears the essential role in the company’s corporate governance and business administration. It possesses independent decisions to achieve best interests for the company and its stakeholders. It also has duties to validate the company’s visions, missions, core values as well as business strategies and to review them annually. In addition, it approves significant issues concerning the company’s business directions and operational policies, together with annual business plans and budgets. Furthermore, it oversees the management’s administration to be effectively in compliance with the company’s policies, strategies and business plans as well as with any related laws and regulations and shareholders’ resolutions. Additionally, the Board of Directors, in coordination with the management, supervises the implementation of suitable internal control system and appropriate risk management procedures so that the company can achieve its good performance and its continuous sustainable growth. The company conducts its full risk assessment every year by evaluating both present risks and probable future risks and presents its report to the Board of Directors for their acknowledgement.
  
  The Board of Directors has delegated the Nomination and Remuneration Committee to determine, nominate and appoint any individuals to serve in the Board of Directors according to the company’s recruitment process by considering gender, age, skills, knowledge, abilities and experience to ensure that the Board of Directors retains an appropriate structure, size and balance of skills. The nomination and recruitment also need to be in accordance with the company’s business strategies, its good corporate governance principles, its rules and regulations, or any legal requirements. To ensure independency and clarity concerning corporate governance management, the company has determined that the Chairman of the Board of Directors and the Chief Executive Officer must be different persons. However, both has regularly discussed or jointly considered various issues so as to achieve efficient business operations.
  
  In addition, the Board of Directors has appointed subcommittees in various fields to help closely oversee, study and analyze important issues and propose their opinions back to the Board of Directors.

•   Business Ethics
Long-Term Goal for Sustainability : No warnings or No significant non-compliance or illegal results from any regulatory bodies.

• Corporate Governance
  The company has conducted its businesses in compliance with law requirements and any related rules or regulations. All Directors, Executives and employees are bound by their duties and responsibilities to perform their tasks accurately, thoroughly and to strictly follow rules and regulations. With regards to newly issued regulations or announcements by any regulatory bodies, the company has organized to summarize and publish them to every related department, together with hold the meeting to ensure same understanding regarding to new announcements. For example, to be compliance with Market Conduct Practice, sales presentation documents were reviewed and improved as well as was employee governance guideline. Furthermore, the company has studied international laws relating its business operations such as General Data Protection Regulations and analyzed their possible impacts possibly arising from conducting The company’s businesses.
• Prevention of Corruption
  The Board of Directors has approved the Anti-Corruption Policy, which is a part of the company’s corporate governance policies, with an aim to refrain Directors, Executives and employees from engaging or accepting any forms of corruption for benefits of themselves or their friends or their acquaintances with the exceptions of any activities in line with rules of law or regulations or local customs and traditions. To ensure that Executive and staffs at all levels can perform their tasks accurately and properly, the Anti-Corruption Policy has specified roles, guidelines and penalties in case corruption occurs, along with established procedures and channels for whistleblowing and complaints.
  
  In 2013, The company jointly signed the agreement to declare its intention of participating in the collective action coalition against corruption in private sector during the international seminar of ‘Private Sector Collective Action Coalition against Corruption (CAC)’ held by the Thai Institute of Directors (IOD), the Thai Chamber of Commerce, the International Chamber of Commerce-Thailand, the Thai Listed Companies Association, the Thai Bankers Association, the Federation of Thai Capital Market Organizations, and the Federation of Thai Industries. The company has been operating its business in accordance with certification process of the Private Sector Collective Action Coalition against Corruption (CAC) Project. By presenting its corporate business policies, its standard operating procedures as well as its internal control system to the Project’s committee, the company has become a certified member of CAC since April 22, 2016 and is currently applying for membership renewal.
  
  In addition, in 2018 The company has focused its priority on complying with the anti-corruption policy by establishing not only monitoring guidelines to prevent risks from corruptions but also assessment guidelines to follow up practice results concerning the Anti-Corruption Policy. Operational details are listed as follows.
  1. Reviewed the Anti-Corruption Policy, which is a part of the company’s Corporate governance Policy, in the Audit Social Environmental & Governance Committee’s meeting no. 12/2018 and the Board of Directors’ meeting no. 1/2018. To ensure that the Board of Directors and the management realize the importance of anti-corruption and cultivate it as a part of corporate cultures, the company has published its anti-corruption policy to customers, business partners and all staffs through The company’s website (www.ktc.co.th), its intranet as well as its internal learning channels.
  2. Require all departments to annually perform risk control self-assessment (RCSA) which also covers the risk of corruption. Each department selects its process or procedure considered as its Core Business and then evaluate the probabilities and the impacts of risks in doing that business in order to define the risk level. After that, existing control is reviewed whether it is already appropriate or should be improved to reduce the risk to suitable level. RCSA results are annually presented to the Risk Management Committee and Krung Thai Bank Public Company Limited in which in 2018, RCSA results revealed that for every process and procedure subjected to risk of corruption, control procedures have already been established to prevent such risk from occurring.
  3. To create efficiency and be in accordance with the company’s business nature and its business operations, the Chief Executive Office and top managements has coordinately participated in defining anti-corruption practice guidelines according to its anti-corruption measures such as the determination of criteria including acceptable values upon giving and receiving gifts, rewards, gratuities or other benefits, etc.
  4. As a practice guidance to the management and employees, the company has established standard working procedures, along with various guidelines to be in compliance with the self-assessment regarding anti-corruption measures of the CAC project and the results of The company’s RCSA as follows :
     a) Establish standard procurement procedure to ensure that the company’s procurement process is transparent, has no direct or indirect involvement of corruption and concerns The company’s interest above all else.
     b) Establish anti-corruption practice guidelines in anti-corruption measures which consists of guidelines concerning prohibition of bribery, guidelines and acceptable values upon giving or receiving gifts, rewards or other benefits, guidelines regarding entertainment, guidelines with regards to political support and guidelines concerning donation and charity.
     c) To increase efficiency towards anti-corruption efforts, the company has assigned Compliance department to be the center in giving consultations or recommendations with regards to corruption whistleblowing and complaints. The company has also established the policy for reporting misconducts and the protective measures to protect whistleblowers. Employees and stakeholders can file reports or complaints via identified channels listed in the Corporate Governance policy and anti-corruption measures. Their first name and last name, along with detailed information regarding the complaints or misconducts such as story background, name of persons involved, timing of the incident etc. must be identified clearly and adequately for fact-findings to ensure further investigation.
      

     Channels to file report of corruption
     
     Customers and general public can submit complaints or comments to the company via following channels
     o Call Center no. 02 123 5000, 24 hours a day
     o Complaints Hotline 02 123 5000
     o Leave messages to KTC thru website http://www.ktc.co.th or send email to address CService@ktc.co.th
     o Fax no. 02 123 5190
     o Postal letter to address Krung Thai Card Public Company Limited, 591 United Business Center II Building, 14th Floor, Sukhumvit 33 Road, North Klongton, Wattana, Bangkok 10110
     
     Employees can submit their complaints and comments directly to the Board of Directors and the managements via email. The company will keep complaints and comments confidential and will neither disclose the complaints’ names or private information nor those who cooperate with internal investigation. In addition, there will be no demotion, penalty or negative impacts towards the employees who refuse to participate in the corruption scheme although such action would cost the company its business opportunity. The company will also provide fairness to the accused of misconducts.
     
     The Compliance Department is responsible for conducting investigation by collecting and monitoring whistleblowing or complaints concerning misconducts. Then the Compliance Department, along with related personnel or committees will review those whistleblowing and complaints based on the Corporate Governance Policy and related anti-corruption measures to yield disciplinary results according to Human Resource Management policy. In case of complaints against the Directors, the Audit Social Environmental & Governance Committee will be reported for its consideration. The company has also provided examples of whistleblowing and complaints regarding corruption.
     
     However, the complaints concerning personal problems or personal conflicts, or anonymous complaints are not regarded as corruption whistleblowing or complaints.
     In 2018, The company received no complaints and found no corruptions inside the organization conducted by either internal or external individuals

  5. To assure that the company’s management and employees are aware of and accept to comply with anti-corruption measures, any newly recruited management and employees are to acknowledge and accept such measures on their contract signing date aside from the information they receive during the orientation for newcomers.
  6. The company has encouraged all of its departments to comply with Anti-Money Laundering regulations enforced by the Anti-Money Laundering Office (AMLO) and by each of credit card provider networks in order to support governmental anti-corruption.
  7. The company has a clear policy against bribery or monetary settlements during investigative process with customers or the corrupt.
  8. To achieve accuracy, be ready for audit and be in accordance with accounting standards, the company has established operating manuals regarding expense reimbursement, document handling and business record keeping.
  9. Provide learning tools to the Board of Directors, Executives and employees to ensure their knowledge and understanding of the company’s policies and its related measures such as the arrangement of Multi-Animation, the assignment of topics regarding the Corporate Governance policy, Business Ethics Handbook as well as anti-corruption measures to be parts of the orientation course for new comers.
  10. To ensure awareness of the Executives and all employees, the company has arranged their annual self-assessment with regards to rules and regulations required by law, the Corporate Governance Policy, the Anti-Corruption Policy, Business Ethics Handbook and other related measures thru the learning tool of Multi-Animation.
  11. Establish details in service contract between the company and its business partners or its business representatives that business operations must be conducted with integrity, transparency and eligible for audit according to good corporate governance, as well as abided by any laws related to anti-bribery and anti-corruption.
  12. To follow up and evaluate performing results with regards to the policy and measures of anti-corruption, by determining in its annual business plan, the company has assigned the internal audit, who acts independently, to audit and assess the operations in every department according to their risk level and their risk factors for the efficiency and the adequacy of their internal control, their risk management system, and their corporate governance. The Audit Social Environmental & Governance Committee is responsible for reviewing financial and accounting reporting system, internal control system, internal audit system, and risk management system to be in accordance with the international standards as well as to be suitable, concise, up to date and efficient. The results of this review are reported every year to the Board of Directors for its acknowledgment.ปี
  13. Disciplinary actions
      •   To ensure all employees’ commitment to adopt good governance principles as their operating guidelines, the company requires staffs at all level to sign the agreement to comply with the Corporate Governance Policy, including the Anti-Corruption Policy, Business Ethics Handbook, and anti-corruption measures. Therefore, it is regarded as disciplines in which every employee must strictly follow.
      •   The company has established disciplinary procedures for Directors, Executives and employees who fail to comply with anti-corruption measures. Not only the wrongdoers will be subjected to the company’s disciplinary actions, but they might also be punishable by law in case of illegal activities

•   Customer Centricity
Long-Term Goal for Sustainability: Excellent service (determined by score of satisfaction towards employee’s services) > = 4.9 out of full score 5

• Financial products and services and financial innovation
  To respond to Thailand 4.0 and the Bank of Thailand’s policy and strategy in promoting National e-Payment, as well as Cashless Society policy in which customers presently tend to use more of technologies thru various devices for their financial activities, The company has developed its financial services to satisfy customer’s needs by providing services with speed, convenience, easy access and security as follows
  •   The company has developed its system of credit card payment for goods and services thru QR Code on its mobile application ‘KTC Mobile’ (used to name TapKTC) in which it was successfully tested in the Bank of Thailand’s Regulatory Sandbox at the end of August 2018. This application has satisfied the needs for both customers and merchants. With regards to customers, they no longer need to carry cash and can make payment by themselves thru their mobiles in such a convenient, fast and secure manner. After the payment transaction is completed, both customer and merchant will be informed. With regards to merchants, they can receive QR Code payment thru both credit card and Prompt Pay. This will help merchants in reducing their business costs and their risks of cash management such as cost of their employees’ fraud prevention, burglary risk, together with increasing speed of transactions and reducing the problem of cash change. The company has urgently acquired new merchants for KTC QR Pay to promote a cashless society and to ensure customers and merchants all over the country to experience more of the modern, convenient and fast way of spending.
   

  Performance •The number of merchants using QR Code payment is more than 500 outlets after the application was successfully tested in the Bank of Thailand’s Regulatory Sandbox in August 2018.

  
  •   The company has developed more of its effective online channels to increase convenience for customers in accessing its services. These online channels offer not just information but also platforms to carry out financial transactions in One-Stop Services style. Such channels which cover every product including services for both cardholders and merchants are the application ‘KTC Mobile’ and KTC websites. Their menus and features have been adjusted to ensure simplicity, convenience and speed, and to support the growing size of target customers for online payment in the present and in coming future. Online services provided by ‘KTC Mobile’ and KTC websites are such as request for temporary credit limit increase, cash advance from credit card account and withdrawal from KTC PROUD cash card in which not only customers can choose to receive money in their own account or other accounts but KTC PROUD personal loan customers can also choose to receive their money through the company’s merchants. Other services also include balance query, warning alert for payment due, card payment with KTB account and many other services. Websites www.ktc.co.th and www.ktcworld.co.th will also be improved for easier use and to satisfy further needs of customers
   

  Performance •The number of users thru KTC Mobile and KTC Online as of the end of December 2018 was 1,177,000, up 76%

  
  •   The company has encouraged its members to apply for electronic statement thru email (e-Statement) as it is faster and more convenient, as well as reduces natural resources in printing hard-copy statement and preserves environment by reducing energy in garbage disposal of no longer used statement. The company has also arranged its contact center staffs to give advice for this service.
   

  Performance • The number of e-statements amounts 600,000, 23% higher than that of 2017

  
  •   The company has developed and enhanced its ‘TapMerchant’ application to easier connect with mPOS device that can operate on either IOS or Android via Bluetooth signal. Merchants are able to receive goods and services payment which can be in form of full payment, installments, and points redemption by first logging into ‘TapMerchant’ application for sales transaction. Once the transaction is finished, the system will reply back result of that transaction thru merchant’s smartphone which requires e-signature from customer. Then, the system will notify customer the result of the transaction thru either email or SMS as indicated by customer. Total process now is completed. The whole process of sending and receiving data and information has been encrypted with standardized security system, thus providing high security. As this online payment method enhances convenience and can be used anywhere connected to the internet, together with mPOS device is easy to carry around, both cardholders and merchants can be confident in using this payment service.
   

  Performance • The number of merchants with mPOS device is more than 5,300 outlets (a 32% growth compared to 2017)

  
  •   The company has introduced innovations by each of major credit card networks such as Visa MasterCard and JCB to its team so that they can develop and improve the company’s services, expand its business and increase its income.
  
  •   The company has initiated the project of notifying applicants about credit approval results via SMS. According to credit analysis officer’s working procedures, after credit card or personal loan application is completely reviewed, the applicant must be notified of the result. The company has developed the system to inform the result via SMS rather than via a postal mail with the exception of the rational for credit rejection required by law to be notified in written paper only. SMS notification not only provides the applicant with fast response, without having to wait for the letter to be printed and for mail delivery but also helps reduce a huge volume of paper usage. To follow up with the result of credit card delivery and card activation, the company has established a specific team to follow up on card delivery and facilitate customers regarding card activation and card benefits. Such actions are taken to prevent damages that might occur from the loss or delay in credit card delivery, to reduce expense and time in credit card tracking, to minimize the cost of reissuing and resending the new card, as well as to minimize activation procedures after the card is received.
  
  •   The company has issued electronic credit cards to its members for online services (KTC Virtual Credit Card). This will help lower the cost of paper and plastic usage. Moreover, members will have no concerns of damaged or lost cards and can determine their credit limit for online spending.
   

  Performance • Members who already used KTC Virtual Credit Card for their online services at the end of December 2018 amounted to 7,600 members

• Customer Relationship Management
  •   Regarding customer complaints response, the company has established a specific unit for receiving complaints, compliments and customer feedback thru various channels. This can be done directly thru telephone channel via KTC Contact Center (02 123 5000) or thru any regulatory bodies or thru various social medias. Any complaints or feedbacks KTC received will be used to improve its products and services to protect customer’s benefits. For any complaints received, the company will investigate, notify its progress and inform next steps that will be taken, as well as proceed to solve the problems and notify customers the result as soon as possible. After that, all the information will be used to improve the quality of the company’s products and services to ensure satisfaction of customers and stakeholders.
  •   The company has designed its automatic response system for IVR Activation not only to provide security for actual cardholders but also to ensure speed and convenience of card activation.
  •   The company has launched its automatic response system IVR KTC Contact Center 02 123 5000 for customers’ data inquiry and transaction updates. To ensure faster service and not to wait long on the telephone line, customers are encouraged to use their own PIN number for system verification to gain access and conduct transactions by themselves. In year 2018, The company conducted the survey of customer’s satisfaction towards KTC Contact Center service thru IVR and the result showed the score of 4.86 out of full score 5. To prevent and reduce complaints and to enhance its services efficiency, the company has taken the survey result to improve its services provided by both inside the company and outside sources such as service provided by Outsource Sale etc.
  •   The company has put in place the Verification Process to provide security for customer information and to protect frauds.

•   Accountable and Fair Services
Long-Term Goal for Sustainability: Excellent service (determined by score of satisfaction towards employee’s services) > = 4.9 out of full score 5

Operational Guidelines

• The company has conducted its credit card and personal loan businesses under the Bank of Thailand (BOT) notifications and regulations such as the determination of credit cardholder’s qualifications for both primary card and supplementary card, personal loan applicant’s qualifications, as well as credit limit approval, interest rate charged and other fees etc. The company has also required all its department to comply not just with laws and BOT’s regulations but also with requirements of each credit card network.
• The company has treated its customers in accordance with laws or regulations issued by regulatory bodies (BOT, Office of the Consumer Protection Board, and Credit Information Business Act). For example, the company will not approve credit card or personal loan to minors. With regards to credit card and personal loan, the company organizes their contracts, terms and agreements in such a clear and fair manner. In case of any changes in the contract’s terms which affect customer’s rights, customers will be promptly notified. Customers will also be informed of their credit information disclosure as regulated by any officials.
• The company has established the Corporate Governance Policy and Business Ethics Handbook for Directors, Executives and employees as guidelines for conducting their businesses fairly and accountably towards all stakeholders.
• The company has established Internal Audit department, an independent unit that reports directly to the Audit Social Environmental & Governance Committee, to assess the adequacy and efficiency of the company’s internal control, risk management and corporate governance. Internal Audit department has consistently reported its findings of ineffective internal control and provided its added value opinions to achieve effective operations, efficient internal control, cost reduction, as well as lower risks to the Board of Directors and the Audit Social Environmental & Governance Committee. Effective internal audit is a key foundation of the company’s sustainable growth.
• The company has created Compliance department to give recommendations, along with review important operational procedures to reassure that the company conducts its businesses in compliance with rules and regulations required by officials such as BOT, SEC, AMLO, NCB etc. In addition, the Compliance department follows up and analyzes impacts of any regulations or laws related to the company in which the Compliance department might summarize and distribute significant materials or organize the meeting with related internal departments for briefing and clarification.
  
  Remark: Please study further details of the company’s products and services in the topic of ‘Business Nature’

Operational guidelines
Customer data security and privacy protection is considered as a key to create customer’s confidence and trust in using the company’s financial services. Insufficient internal control or protection might lead to various risks such as violation of personal information and data insecurity, cyberattack or cyber theft etc. These risks are regarded as severe and can cause damages in the company’s image, reliability and financial status, including the breach of regulatory requirements. Therefore, the company has determined measures to prevent and control risks that might occur by implementing security system, organizing oversight and establishing corrective guidelines or measures which details are as follows
•   Information technology management structure
The Board of Directors has put its primary focus on customer data security and privacy, thus assigning the Information Technology Steering Committee (ITSC) in determining information technology policy including monitoring, tracking and managing related risks to be at an appropriate level. Furthermore, the company has delegated Information Security Steering Committee (ISSC) to oversee and conduct operations regarding the company’s information security to be in compliance with any related standards and regulations. The ISSC also organizes resource and budget planning regarding the company’s information security as well as determines information strategies and plans to be in accordance with the company’s business nature. These two subcommittees, ITSC and ISSC, have constantly coordinated in reviewing various issues concerning information technology.
•   Information technology policy
In 2018, The company has reviewed its information technology policy to be in accordance with the Bank of Thailand’s regulations and the international standards.

• Customer data access and utilization
  The company has granted employees for customer’s access rights according to their operational functions. Employees are permitted to access customer data as per their given authorization only and they are required to keep that information confidential.
• Customer data disclosure
  The company has determined guidelines regarding information disclosure of the company or that of customer to external entities by allowing the disclosure only to any individuals or governmental entities with legal authorities. The company will never disclose information to any individuals or entities without legal authorities unless it gets the Board of Director’s approval or establishes information security control procedures such as arrangement of Non-Disclosure agreement (NDA) etc.

• Operations to support the international standards
  In 2018, The company has organized the projects of PCI-DSS and ISO 27001 to assure the security of the company’s computer systems and database systems to be in accordance with the international standards.
• Establishment of Security Operation Center)
• Implementation of data leakage detection and prevention system for significant information such as credit card number and customer’s personal data
• Arrangement of information security protection training for the company’s employees น

•   Supply Chain Management
Long-Term Goal for Sustainability: The company provides its key suppliers with Supplier Code of Conduct for their acknowledgement in which sustainability regarding society, environment, labor and human rights is identified.

• When outsourcing to business partners or third parties to conduct businesses on its behalf in non-primary on non-specialized businesses, the company has procedures as follows :
  o The company realizes the significance of outsourcing services, hence organizing procurement standards to identify criteria and qualifications of outsourcing companies, arranging fair contracts, along with performing goods inspection on delivery to ensure its compliance with service contract. The company has also established procurement process that is clear, transparent, and not against the Anti-Corruption policy. Furthermore, the company has organized the Outsourcing Service Policy which is in accordance with KTB’s consolidated governance policy to determine service provider’s selection criteria, service utilization criteria, and scopes and duties of service providers. In addition, the company oversees all its departments that need to acquire outsourcing services to comply with the aforementioned policy and standards.
  o The company’s operations department is responsible for overseeing quality control procedures of outsourcing service providers not only to ensure their service quality and standards but also to connect business partner’s needs and customer’s needs so that working process, products and services can be continuously and sustainably improved. The company has consistently enhanced its working process and reduced unnecessary use of national resources in its working procedures or in its products and services. This has resulted in not only reducing environmental burden but also decreasing the company’s operating cost. The example of such actions was the reduction of printing materials for some groups of customers. The aforementioned oversight of quality control procedures has also been the additional channel for suppliers to recommend and to jointly develop more efficient and fair working process in which suppliers and the company can share their experience during the joint meeting the company has regularly organized.
  o KTC has coordinated with its outsourcing companies in organizing annual training courses to enhance skills of outsourcing employees such as debt collection officers, administrative officers, and technicians etc.
  o Responsibilities towards suppliers or outsourcing service providers within Supply Chain
  The company recognizes the importance of social and environmental issues. Thus, it has operated its businesses by focusing on sustainable development throughout the whole Supply Chain. The company has conducted its businesses with integrity, transparency, and eligibility to audit in all its working procedures which can be done either thru procurement process or thru outsourcing from third parties.
  
  The company evidently realizes supplier’s significance. Hence, when acquiring suppliers, the company is committed to abide by laws or terms of mutual contract. The company has also determined guidelines regarding supplier selection for its procurement unit to follow. In addition, the company has stated in the service contract between the company and its alliance or its business representatives that businesses must be conducted with integrity, honesty, eligibility to audit according to good corporate governance principles as well as compliance with laws related to anti-bribery and anti-corruption.

•   Human Resources Management
Long-term sustainability goals: to ensure that the company’s personnel receive fair compensation and welfare, as well as suitable knowledge and skills necessary to perform duties and to get ahead in their careers.

Throughout 2018, KTC focused on preparing personnel to be ready for the rapid changes in the world, including recruitment, skill sets, knowledge, abilities, equipment, and environment so that work can be conducted anywhere, anytime, while providing reasonable compensation comparable with others in the industry. The company also emphasized on labor management, respects for differences, equality based on human rights, healthcare and safety, and employee development plans to equip personnel with appropriate abilities necessary for career growth.

•   Respect for Labor and Human Rights

• Out of its respect for human rights, KTC has ensured that its debt collection process carries out in line with BOT’s regulations – Debt Collection Act B.E. 2558 and applicable laws. The company provided the New Collector Training Program to educate employees and increase their expertise in debt collection as accordance with the laws, using polite words without intimidation, contempt or sarcasm while maintaining confidentiality to the third party.
• In order to comply with labor laws in recruitment process, KTC evaluates qualifications based on age, knowledge, abilities, skills, and performance of applicants with no discrimination on the basis of sexuality, religion, and political beliefs. People with physical disabilities not carrying any serious contagious disease are welcome to work at KTC if they have the potential to fulfill job descriptions. KTC employees are not subject to sexual, religious, or educational discrimination.
• Number of new recruits and resigned employees. To efficiently manage the company’s workforce when recruiting new employees to fill vacant positions, KTC has primarily placed great emphasis on internal recruitment. If, however, such positions require personnel with specialized skills not currently presented in the company, external candidates would then be recruited. Recruitment of new employees is based on necessity and candidates must possess appropriate qualifications, suitable experiences, and essential sets of skills. KTC also provides a reasonable compensation comparable to others in the industry.
  • Fair Labor Practices
    The company established standard operation procedures (SOP) for new personnel recruitment, performance evaluation, annual salary increase, performance incentive, and annual promotion, in order to set standards in human resources operation
    
    In 2018, KTC recorded a number of 1,767 employees classified by gender, employment type and level as follow:

    

• The company has employed physically disabled personnel to work in the IT department to create job opportunities and compensation equivalent to other employees. The Empowerment of Persons with Disabilities Act B.E. 2550 (2007) has the intention to provide people with disabilities jobs and employment without discrimination on the basis of physical and mental health. The Act declares that state agencies, employers, and business owners are to employ disabled personnel under Article 33; or contribute funds to the Fund for Empowerment of Persons with Disabilities under Article 34; or grant concessions for the benefits of the physically disabled under Article 35. In addition, KTC has a health care policy to rotate employees with health problems to a more suitable position accordingly in order to avoid worsening the employees’ health.
  
  In 2018, The company has changed the method for contributing funds to the Fund for Empowerment of Persons with Disabilities from Article 34 to Article 35. The Ministry of Labor supports and encourages various businesses to hire people with disabilities using to the new guidelines that altered the conditions from employing disabled personnel to work only in offices to enabling them to work in local communities or public organizations, or to support freelancing. The Social Innovation Foundation cooperates with human resources to facilitate employment of persons with disabilities and to promote new hiring guidelines to businesses. These benefit persons with disabilities directly in giving opportunities to those living in remote areas so that they are self-reliance. In 2018, KTC hired 17 disabled personnel in accordance with Article 35, whom receive their salaries directly from the company via account transfers. Therefore, there are no complaints regarding payments.
  
  The company concerns about the health of employees and thus provides them and their families with a variety of benefits as the followings:
  - Annual health check-up at leading hospitals in order to raise health awareness among the employees, to reduce health risks, and to prevent various illnesses.
  - Provide infirmary, nurses, medical services, first-aid medicines and supplies of adequate standards to employees, available every day during work hours. By doing so reduced dependency on others and helped employees by focusing on development rather than consolation. Medicinal treatments are temporary solutions, and proper self-care leads to less sicknesses.
  - Provide free vaccinations to employees for basic illnesses such as influenza.
  - Organize seminars by doctors from leading hospitals to educate employees on health issues such as nutrition, office syndrome, etc.
  - The company provides health benefits to employees. If any of their families wish to receive support from KTC, a 50% of their health insurance premium is contributed.
• Employees welfare and benefits
   

  

• In outsourcing process, KTC has clearly stated in outsource contracts that outsources must treat their employees fairly in line with labor laws. In addition, KTC has provided counseling and liaising services if any of their employees have questions about their labor practices.
• Safety, occupational health, and work environment
  - The company has followed safety, occupational health, and work environment guidelines as set by the company and are complied with relevant standards and laws.
  - Continuously arrange seminars on safety, occupational health, and work environment for employees.
  - Regularly monitor and improve working environment.
  - Regularly monitor and check the cleanliness of work area in each department.
  - Monitor and record occupational illnesses and injuries of employees to ensure that they receive appropriate treatments until they can return to their normal work life.
  
  Number of occupational illnesses or injuries in 2018

  

  Note: employees include full-time, contract, and temporary
• The company has policy on constant human resources development by focusing on education, skills, and potential in accordance with business direction. In order to improve competitiveness long-term, KTC focuses on attitude development and specialized operational skills with efficiency, accuracy, and speed to enhance customer experience and satisfaction. In 2018, more than 219 courses on human resources development and various activities occurred with the summarized details as follow:
  - Orientation for newly recruited employees to ensure that they have correct knowledge and understanding of the business, including various products offered by KTC. To also instill the core values of ethics, which are important to success, governance, and social and environment responsibility. Anti-corruption is another important principle to uphold in order to drive the company in achieving the targets. A corporate culture with core values is crucial in bringing the employees together to have awareness, understanding, and sense of team work moving forward in the same direction. There was a total of 362 employees participated in the orientation. Afterwards, a test was conducted to evaluate knowledge and understanding. The minimum passing score is 85%.
  - The company held the “Leading Innovation with Design Thinking” course, a strategic course to promote innovative thinking skills to meet customers’ demands and to develop effective work processes. Participants learned innovative creation processes that can be applied to their work duties and to make a difference.
  - The core courses promoted key employee attributes base on the company’s main core values—courageous, smart, simplicity, meaningful. Examples of such courses are “Spark Knowledge to KTC”, and “KTC Synergy 2018”, which urged employees to recognize, understand, and uphold core values as a part of their personal and work lives.
  - The functional courses allowed employees to better their skills, knowledge, and abilities, while improving work processes. Examples of functional courses are Future Market Access Strategies, Machine Learning for Business, Data Wrangling, Process Improvement for Productivity, Customer Experience Management, Service Beyond Expectation, Service Quality Contact Center, Analytics Enablement Program, etc.
  - Apart from the courses that focus on developing skills and knowledge, the company also promotes the “Learning Organization” culture in order to create the good working environment and atmosphere, aiming to create new ideas that lead to innovations, more effective and efficient work processes, and modern knowledge exchange through “KTC Knowledge Sharing”. Some courses are also offered online such as Coursera, which makes it easier for employees to choose topic of their interests and in turn encourage them to learn. Employees can exchange experiences and discuss via “Community” to promote social interactions and language development. Moreover, KTC has a collective information accessible on the company’s intranet system in an infographic format for easy usage. Thus far, the average learning hours per each employee is 21.33 hours/year.
  - KTC has created employees’ consciousness to perform on the basis of ethical and moral, to uplift spirits, to create positive attitudes of the mind towards oneself and work life, and to live with awareness through the “Detox D-Talk. Let Virtue Guide You” project. In 2018, employees attended a meditation retreat at Wat Pa Si Thawon Nimit in Nakhon Nayok province; and an almsgiving to 9 monks to celebrate the new year on January 3rd 2018, and the Thai new year on April 12th, 2018.
  - The KTC Sit & Talk activity was organized to share information and experiences in various fields to stay updated with the current situation, including financial innovation that influences business operations and Thai and Global economic trends, by knowledgeable guest speakers. Topic examples are Creativity for Change, Design Thinking, Blockchain The Next Technology in Your Life, Global and Thai Economic trends and risks, From Passion to Tourism Blockchain, Making impact with Big Data, Consumer & Technology Trend 2018, Keeping Up with Electronic and Online Payment Risks, NEXT-GEN PAYMENT, You Are More Powerful Than You Think.
  - KTC organized the “LEARN & EARN” program for the 15th consecutive year. This program supports development and empowerment of youths in Thai society by equipping them with the tools necessary for entering the work life. The company encourages youths to spend time efficiently, to experience other aspects of life not taught in classrooms, to earn income for themselves and families, and to develop skills beneficial to work and quality of life. In 2018, The company operated under the concept “Digital #Me” with the objective to motivate youths from the “LEARN & EARN” program to stay on top of the roles digital has on businesses and society. The company believed that the program partakes in developing and preparing youths to apply their technological knowledge and understanding in daily and working lives by encouraging them to learn about innovation, to think outside the box, and to use innovation in communicating successfully.
  - The company has gathered various learning materials on its Intranet so that the managements and employees can study and review these materials at their convenience. Other contents that were put on the Intranet include company’s important announcement, rules and regulations, such as Good Governance Principle, Business Ethic Manual, Anti-Corruption Practice, Money Laundering Law and other important laws that concern with the company. Moreover, the company also stipulates that every management and employee must complete the assessment through electronic channel to evaluate their knowledge, understanding and to create awareness of complying to the law or other important regulations, on the following topics:
  
  ◊   Corporate Governance Self-Assessment includes subjects such as anti-corruption, guidelines on good governance policy, company’s business ethic manual, and social and environmental awareness. The results of 2018 are in the below table:

  

  ◊   Provided self-assessment test on knowledge and understanding on the “laws regarding anti-money laundering and anti-terrorism financing” via electronic system for the management and employees. The results of 2018 are listed below:

  

  ◊   Provided self-assessment test on the knowledge and understanding of the laws and preparing legal contracts that are beneficial to the employees, professionally and personally. The learning topic was “Useful Laws for KTC people” and the results are shown below:

  

  ◊   Provided self-assessment test on the knowledge and understanding on “Risk Awareness” covering risk definition, risk management process, and loss data from operational risks to benefit employees. The results are shown below :

  

  ◊   KTC Product Knowledge test was conducted in accordance with the company’s policy on market conduct, which stated that employees are required to have firm knowledge on the company’s products and services in order to deliver accurate and fair information to customers. The results are shown below :

  

  ◊   KTC Core Business Process to educate employees on product development process and delivery service to customers. The results are shown in the table below:

  

  ◊   Regulations related to business operations. The results are shown below:

  

•   Community and Social Operations
Long-term sustainability goals: The company supports activities beneficial to the society.

Out of its commitment to repay its members and the general public, the company has accorded importance to conducting these following activities for public benefits:

1. The company focused on activities in various forms of knowledge sharing and creating inspiration by collaborating with successful individuals from both state agencies and private sector, under the concept of learning the Thai way of life, agricultural sufficiency, and religion and beliefs. Examples as follow:
   •   KTC invited students from Setsatian School for the Deaf and the media, a total of 80 people, to join an activity at an agricultural learning site in Bang Khae. The students learned about traditional farming, processes of growing organic vegetables, self-cultivation, cooking a few Thai dishes, and weaving with pandan leaves.
   •   KTC invited students from Ban Pranee Juvenile Vocational Training Center for Girls and the media, a total of 60 people, to participate in activities at Khlong Phitthayalongkon School. Such activities were visiting Bangkok Local Museum Bang Khun Thian District, joining a tie dye workshop, planting mangrove forest, and cooking Thai traditional local dessert.
   •   KTC invited 60 students from The Bangkok School for The Blind to learn about the history of the Giant Swing and about various sculptures by touching at Wat Suthat Thepwararam. They also learned about the meaning of sufficiency agriculture by hands-on rice farming, harvesting, vegetable growing, and fish farming at Wat Suthat School.
   •   Sixth grade students from WatRachsingkorn School partook in the “Explore the city with KTC. Learn the cultures communal ways” event to learn about the history from Wat Suwannaram Ratchaworawihan, viewed a demonstration on traditional horse racing to redeem a vow, listened to the stories of Trok Khao Mao Community, joined a “Khao Mao Mee” cooking workshop, and visited the local museum.
   •   KTC organized “Decode Thainess with Museum Siam” for 40 students from Sawasdee Wittaya School with the goal to promote and instill cultural and educational tourism in museums in Thai youths, as well as encouraging Thais to visit museums more. The campaign was held at Museum Siam, educational museum.
   •   KTC and youths from Baannokkamin Foundation visited Wat Champa to learn about history and art objects, as well as Wat Champa community’s way of life which is harmonious with nature. They also participated in crafting and Thai dessert cooking.
   
   A seminar was organized to share knowledge via Facebook Live to KTC CSR Club Fan Page, allowing fans to watch, ask questions, and play games during the live feed. Special guest speakers with knowledge and expertise joined in on the feed, consisted of:
   •   “KTC FIT Talks” seminar to share knowledge on current social interests regarding finance, innovation, and technology. In 2018, the topic was “KTC FIT Talks: Keeping up with Electronic and Online Payment Risks”, in which more than 200 of press members and KTC personnel attended in addition to audiences via Facebook Live.
   •  Special Dhamma lecture on “Pure Love” for Thai Mother’s Day. The audience group was 400 9th-10th grader students from Patumkongka School.
   •  Organized a knowledge sharing trip KTC PR Press Club in order to present perspectives and stories that are beneficial to the society. In 2018, The company organized “Reminisce Old Rattanakosin Tales through Literature from Rama IV’s Period” activity led by an expert in history to educate and guide through significant historical places during the reigns of Rama 1-9, including Phitchaya Yatikaram Worawiharn temple, Prayoonwongsawat temple, Rattanakosin exhibition hall, Sraket Rajavaravihara temple, and Princess Mother Memorial Park.
2. Youth and Education
   In order to support and cultivate Youth and Education, the company took part in organizing activities, awarding scholarships, aiding educational institutions, aiding charities and foundations amounting to 245,000 Baht as follows:
   •  Donated good-conditioned computers to border patrol police school in the Northern Region Under the Border Patrol Police Division 32, Phraya Ngam Muang camp, Phayao province, who traveled to join the 10th Shred2Share Marine Nature Study project.
3. Sports and Health
   To promote and support sports and health related activities, The company was involved in sponsoring tournaments and other sport activities to associations, clubs, or foundations such as the Journalist and Media Association and other associations amounting to 225,000 Baht.
4. Social and Environment
   In order to promote and support Social and Environment related activities, The company participated by donating or sponsoring various foundations and clubs with a total amount of 2,354,000 Baht as the following details:
   •  KTC donated portable water plants and water treatment systems worth 2,354,000 Baht to The Chaipattana Foundation for aiding people in remote areas and those suffered from floods.
   •  For the past 12 years, KTC’s management and employees have donated blood to the Thai Red Cross Society. In 2018, a total blood of 183,150 cc was donated. Moreover, the company has donated items to be sold at the Thai Red Cross’s “Hong Dai Boon”, in which the money earned will be spent for the greater good.
5. Religious Work
   KTC also took part in promoting and preserving Buddhism by supporting monks and other Buddhist sites for the entirety of 168,500 Baht.
6. Responsibility towards Consumers
   •  KTC has joined hands with BOT and Legal Execution Department in organizing a debt reconciliation event and a seminar on “Money Management and Creating Financial Discipline for KTC card members”, as well as the debt composition for chronic debtor, seeking more options than just interest cutting or extension of debt period, with the target to reduce country’s overall household debt.
   •  KTC has joined hands with Court of Justice in implementing the “Composition Festival for Negotiations with Debtors 2018” project so as to ensure that debtors get repayment conditions within the scope of their abilities. In events of errors or mistakes, proper adjustments shall be made to customers’ accounts. In 2018, The company has organized such projects in major provinces, with over 7,088 participating debtors, in which 94.77% of the due amount has been successfully negotiated. In addition, KTC has collaborated with the Legal Execution Department to mediate dispute in the execution class as well as conciliated with debtors affected by flood disaster in various regions and from other special projects in order to relief debts and participate in resolution of household debts in the country.
   •  In all events of disputes, KTC shall so as to provide consumers with clear-cut facts.
   •  KTC has the policy to keep customers’ confidential information and to not launch unfair products, including stipulating conditions of fair contracts.
   •  KTC aimed to promote financial discipline, efficient income management, and self-reliance, debt-free life among its members. And, therefore, has organized a series of seminars on financial discipline, supplementary occupations, and expense-reduction techniques. KTC members can join in these programs with special discount rate and/or can use Forever Reward as application fee to join the program. For example, the “First Step towards Professional Barista”, the “Macaron, the highly popular dessert”, the “Kanom Pia, easy to bake, easy to sell”, the “Kanom Chan Kularb, Thai sweet dessert for additional income” and the “Mushroom Cultivation workshop”, etc. Not only that these seminars have experts as speakers, they include relevant activities for participants to take part in.
   •  KTC has communicated with its debenture holders via “The Sovereign”, a pamphlet informing holders of their privileges and granting them admission to join various seminars as well as recreational workshops in response to KTC’s policy to develop good ties with them. In 2018, The company held 16 such activities
   •  24x7 Service
   - KTC has prepared a team to assist in product usage and member services. In a bid to boost customers’ confidence in KTC services, Manager on Shift team has been appointed to monitor the work real-time to ensure that timely solutions are introduced when any situation arises.
   - KTC has compiled reports on the number of calls and issues made and raised by customers, as well as the performance of each of its units. Relevant figures are then analyzed so as to develop a plan to prevent future problems on a sustainable basis.
7. contributions to Community/Social Development
   •  KTC has developed an open system for KTC cardholders nationwide to use their cash-equivalent reward points to make donations to 25 charity organizations under the “Reward Points for Donations” Project, in which conversion of 1,000 points is equivalent to 100 Baht. Donations can be made by calling the KTC Contact Center, contacting KTC Touch branches, or completing a form via “KTC Mobile” application, or KTC Online website. KTC was to gather the donations and convert them to cash before giving to their chosen charity organizations. KTC has also arranged a monthly donation program for interested cardholders. If they join the program, the donation will be monthly charged to their credit-card account. In addition, KTC has also made donation boxes available at its service points to ensure that customers can conveniently make merits. Moreover, the company has teamed up with business partners to participate in donations cumulated from customers’ spending in projects such as “Fund Raising for Regions affected by Floods”, “Contribution to Construction of Chakri Naruebodindra Medical Institute, Faculty of Medicine, Ramathibodi Hospital”, “Contribution to Navamindrapobitr 84th Anniversary Building, Siriraj Hospital”, “Contribution to supplying medical equipment for Banphaeo General Hospital”, etc. In 2018, donations via Reward Points amounted to 1,904,344.31 Baht.
   •  KTC has sent direct mails free of charge to its members with donations records for the purposes of raising fund for the Thai Red Cross Society so as to support the construction and purchase of medical equipment for the Bhumisirimangkhalanusorn Building, Chulalongkorn Hospital, and the CCF Foundation to help underprivileged children at remote schools.

Environmental Aspects

Long-term sustainability goals for 2020: focus on decreasing energy consumption and supporting all activities that contribute to continuous and sustainable reduction of greenhouse gas emission.

Operation guidelines
The company is aware of the global climate change caused by the greenhouse effect, which severely impacts living organisms and the future of human survival. As a result, the company focuses on operating business with environmental responsibility

• Environmental Management
  1. Use energy-saving and efficient electrical appliances
  2. Reduce energy and resource consumption
  3. Reduce The company’s greenhouse gas emission
  4. Use alternative energy or environment-friendly equipment
     • KTC has the policy to reduce the use of paper across its organization. This policy is a key part of KTC Smart Office project, which encourages employees to cut down on paper use, to keep their important documents in electronic forms or as e-Documents, to email e-Documents instead of sending hard copies to other units, and to recycle paper in their own units. Such moves lower the consumption of paper that is made from natural resources, reduce document storage space, boost convenience of searching and retrieving documents later on, and also save electricity that would otherwise be used for photocopying documents. In credit-approval process, KTC has now developed the Host-to-Host system to store relevant information and authorized only credit analysts to view the information. KTC has also informed its customers about the disclosure of their information to the National Credit Bureau (NCB) via a billing statement. Plus, it has lowered the use of paper when sending year-end summary to its customers as well as documents to NCB. In addition, KTC has used computer programs in analyzing information in the Contact Center’s database for the development/improvement of services and management of employees’ work schedule without printing out the information. While KTC’s legal department needs to use plenty of hard-copy billing statements for legal proceedings, it makes sure photocopies are printed on both sides of paper, which enables to reduce paper consumption by half. Moreover, the department has even worked with some courts in reducing the use of documents for legal proceedings (relying on the appendix of affidavit when citing document evidence). In events that the case is finally settled out of court, KTC asks for documents that are not needed at the court. This not only reduces the court’s document storage burden but also allows KTC to recycle those documents at the same time.
     • KTC has created electronic forms for its customers in submitting requests, including a request form for permanent-credit approval and an approval request form for internal use. Senders can complete forms online instead of using paper and even attach related files such as files that customers sent via facsimile, memos, and messages on screen from relevant systems. The forms and attachments can be forwarded online and stored in online database without any need to print them out.
     • KTC give importance to the reduction of greenhouse gas emission, the company choose eye-caring paper from suppliers who received “Carbon Neutral Certification” or “Green Print” to print company’s documents, such as credit card or personal loan application forms, and Newsletter containing promotions to inform customers.
     • KTC has used electronic form to replace paper document for human resource related works in order to make more convenient process and to save times from sending and receiving paper documents. Employee can access these “i-Form” documents on company’s intranet, such as job application form, employment contract, certification, health insurance request, employee’s ID request, probation evaluation process and resignation form.
     • Human resources information system was used to help store employee database and to reduce paper consumption. The system was developed to make connections among works related to human resources, while being able to support more devices—including smart phones such as requesting or approving leaves, and requesting approval for overtime, etc.
     • The company used Google Form, including the QR Code system, for the recruitment process to reduce the use of documents and to be flexible with contacts of job applicants, as well as representing an organized working system.
     • Operations on reducing electricity and petrol consumption
       - The company has implemented a Timer system to automatically turn the lights on and off for designated areas. As a result, electricity cost was reduced by approximately 16.7%
       - KTC has reduced electricity consumption by using only energy-saving LED T5 light bulbs at its offices and also its service points across the country, which successfully helped reduce electricity consumption with greater brightness and are longer lasting. Moreover, the bulbs reduce maintenance costs while being smaller, lighter, using less materials and mercury, which have less impact on the environment than the previous bulbs. The company has also uninstalled light bulbs in low usage areas such as 345 post bulbs, in which reduced electricity and bulb costs by 745,000 Baht per year, and less number of bulbs changed by approximately 83%.
       - The company has the policy to save and reduce unnecessary energy in offices. The air-conditioning systems timing was operated between 7.30 am to 6.00 pm, theoretically the cool air still remains 30-60 minutes after turn off, as well as dropping the air-conditioning temperature to an appropriate level. Employees working on a night shift shall sit together at designated areas so as to save electricity, which reduced yearly electricity consumption by 69,600 KWh
        

       

       
       - The company has reduced petrol expenses by requiring that all company cars use environment-friendly petrol types such as E20 gasoline. KTC was able to reduce fuel costs in 2016, 2017, and 2018 by 12,000 Baht, 85,000 Baht, and 90,000 Baht, respectively.
• Environmental Health Care and Building Safety
  - The company has hired professionals to clean the inside of air-conditioning vent of the headquarters at UBC II building in order to prevent dust and dirt accumulation which can negatively impact employees’ health and caused illnesses. Moreover, a clean air-conditioning system helped save electricity cost.
• Shred 2 Share Project
  - KTC is aware of environmental issues and is proud to be a part of the Shred 2 Share project. The project terminates unused documents properly, safely, and effectively, while protecting the clients’ confidentiality. It also reduces carbon dioxide gas emission, coal and water usage, as well as global warming effects.
   

  

3 Operations related to Corporate Social Responsibility

In 2018, KTC did not engage in any business operation that might affect the society or the environment.

Details regarding the company’s policy are disclosed to the public on The company’s website, in the Corporate Social Responsibility section at http://www.ktc.co.th/corporate-governance/responsibility