Corporate Social Responsibility

1. Policy Overview

Out of the conviction that it needs to thrive in a good society, KTC firmly upholds corporate social responsibility in pursuing its business growth. Its focus is on the best interest of all stakeholders from KTC members, to business partners, to employees, to shareholders, to the society and also to the environment.

Business: As a Membership Company with the truly member-oriented management, the Company has carried out its business by integrating responsibility toward all its stakeholders into its work process. With focus on innovations, KTC has successfully delivered unique products and services, together with related offers and privileges that cover all types of lifestyles to “stakeholders” who have enjoyed such great things just like they are KTC “members”. To its credit card and personal loan customers, the Company has always encouraged them to plan their expenses reasonably in order to avoid excessive debt.

Internal Management: KTC believes that to be able to deliver excellent services and products to the public, it must first foster constructive creativity, good cooperation and social responsibility among its employees. Serious efforts have thus been made on a continued basis toward that goal.Moreover, KTC has striven to encourage and support its employees to develop their potential, as well as focused on providing work environment, with proper and modern facilities under the theme of “smart offices” so as to inspire innovative ideas. In addition, activities have been held to promote friendship and unity among KTC employees, all of whom are encouraged to pursue a work-life balance. Indeed, KTC is the Best Place to Work and also a Creative Organization.

While being a financial institution offering credit card and personal loan services as a cogwheel for the country’s economic growth, KTC is committed to social development. It starts from very relevant issues such as building learning organizations by encouraging learning environment within its organization and also in the society. Besides, it provides support for the empowerment and education of Thai youth mainly through the Learn & Earn project in the hope of creating quality human resources for the Thai society. The empowered Thai youth will grow up and be able to earn income by themselves on a sustainable basis. In addition, KTC has a clear policy to conduct its business without causing any adverse impact on natural resources, the environment and the society.

2. Operations and CSR Report

KTC has adopted the international framework developed by Global Reporting Initiative (GRI) and the guidelines set by the Stock Exchange of Thailand (SET) as standards in developing the code of conduct and CSR report, which are widely accepted by social responsible organizations and CSR implementers. Since the guidelines were laid down by SET, KTC has started off with its CSR report and been well on its path to prepare its sustainability report. The SET’s CSR guidelines cover all issues that need to be presented in not only nationally-recognized but also internationally-recognized sustainability reports.

On its operations, KTC has offered new products and services in an efficient manner. Specially designed in response to customers’ needs and proper segmentation, these products and services cater well to the different lifestyle of each customer group. KTC customers have enjoyed differentiated products/services with constant and well-rounded privileges because the Company is committed to serve what customers need. KTC strategized on partnering with specialists, implementing innovative technologies in business processes, focusing on quality over quantity when acquiring customers through various online channels, and enhancing self service activities to meet the digital lifestyle. Moreover, KTC has targeted to expand merchant acquiring business in the new and regional markets using appropriate KTC Payment Solutions such as KTC QR Code Payment and Alipay O2O (Online to Offline). This is with the intention to satisfy members and to bond with the KTC brand, which in turn leads to the Company’s sustainable growth.

At KTC, there is a special unit to monitor its customers’ transaction 24 hours every day so as to deliver timely assistance in of fraud. All the aforementioned factors have helped establish KTC as the leader and provider of comprehensive services in consumer finance market. KTC has also run its operations under the close supervision of committees and work panels established by top executives of relevant departments.

In planning its CSR process, KTC focuses on providing fair and proper treatment to all stakeholders from shareholders, to customers, to creditors, to suppliers, to business partners, to competitors, to the society and the environment, to the Board of Directors and the Management Team, to the employees, as well as to the government sector. The CSR guidelines are as follows:

KTC has striven to conduct its business in a way that repays society, communities and environment as follows:

  • Risk Assessment: As a company that operates in credit card and personal loan business, KTC emphasize in the risk management in various area that might effect to company’s business operation. The company has established the risk management guidelines and periodically reviewed the policy, which required the approval from the Risk Management Committee.
  • Formulation of Guidelines: KTC has issued policies and announcements to provide its employees with guidelines on standard operation procedures. All relevant units have carefully studied policies and rules before their implementation at KTC to ensure that all relevant parties understand not just the concept of good internal control but also their roles and duties. To set an operation standard, the company required all units to develop their standard operation procedures (SOP) for their main activities. To inform employees in the unit of the procedures in order to perform those tasks correctly. The standard operation procedures must be revised periodically.
  • Communications with Employees: KTC has communicated its policies and related news and announcements with employees via emails on a regular basis. Such communications are also stored in the Company’s online database, allowing convenient searches and retrievals.
  • Compliance Checks: To ensure that all its units comply with its policies and rules, KTC has required its Internal Audit department to develop annual internal control plans. The implementation of the plans examines the compliance of each department in a bid to keep good internal control in place and also to reduce work-related risks, as well as report its findings to the audit committee and / or the board of directors.

KTC’s CSR implementation has been in process in accordance with the following eight principles based on the SET’s CSR guidelines:

Note: resigned employees exclude retirees, early retirement, decedents, unsuccessful probation period, and termination of employment contract or dismissal.

  1. Fair Business Operations
    KTC has operated its business under the regulations of the Bank of Thailand (BOT), which cover requirements for credit cardholders and personal-loan applicants, credit-limit approval, interest rates determination and other fees. The Company, in addition, has required all its departments to comply with not just laws and BOT regulations but also requirements of each credit card service provider’s network.

    KTC has treated its customers in accordance with laws and requirements laid down by relevant authorities (BOT, Office of the Consumer Protection Board, and Credit Information Act), for example KTC will not approve the credit card of personal loan to minors, contracts provided are clear and fair contracts, any changes in terms and conditions of the contracts will be promptly notified, and notifying customers of the disclosure of their credit information.

    Create corporate governance policy and business ethics handbook for board of directors, managements, and employees as a guideline to operate fairly and responsibly to all stakeholders.

    When outsourcing to business partners or third parties to work on behalf of the Company in secondary or non-specialized businesses, KTC has done the followings:

    ˗ KTC values the service from outsource companies by providing the regulation and standardize of the procurement process. KTC also evaluate outsource companies whether they have meet the standard of KTC. This policy is harmonized with the policy of consolidated direction of KTC as the standard for selecting outsourced companies. All departments in KTC must follow this regulations mentioned above.

    ˗ KTC has monitored and control the quality of its service suppliers (outsources) in order to maintain proper service standards and of creating the relevance of the company itself, customers and suppliers’ needs. The ultimate goal is to improve work process as well as the products and services on a continued and sustainable basis. KTC has constantly explored opportunities to improve the product and services and also to cut down unnecessary use of resources. When resources-use efficiency improves, environmental impacts reduce and so does the operating cost. KTC, for example, has already reduced the use of print materials for some groups of customers. With the monitoring process well in place, suppliers have also got a channel to make recommendations and to jointly develop good and fair work process. For the purpose of quality control, KTC has organized meetings with its suppliers on a regular basis during which both sides can share their experiences and opinions.

    ˗ KTC has worked with its outsourced contractors in organizing annual training courses to develop outsourced employees’ skills such as collection officers, administrative officers and technicians.

    ˗ Responsibilities to suppliers or outsourced service providers within the supply chain.

    The Company recognizes the importance of social and environmental issues. Business processes emphasize on sustainable growth throughout the supply chain by performing businesses with honesty and transparency. The following scopes of work are conducted by outsourced companies.
    • Employment of outsourced personnel for services such as public relations, cleaning, document delivery.
    • Publishing, purchasing of office supplies or other products such as plastic cards production, stationery, and other office supplies.
    • IT procurement such as various IT devices (EDC machines, computers, copy machines, etc.) including procurement and maintenance.
    • Building and facilities such as decoration, renovations, maintenance, etc.

    Evidently, the Company’s suppliers are crucial to business operations. Therefore, KTC is committed to abide by the laws or the terms of contract. Guidelines have been set for procurement-related divisions to follow when selecting suppliers. In addition, it is stated in the contract that services conducted between the Company and partners or business representatives must operate with honesty, transparency, can be monitored in accordance with good corporate governance, and abide by the laws relating to anti-bribery and anti-corruption.

    Complaints Response
    ˗ KTC has set up various channels to deal with Customer Feedback. KTC Contact Center (02-665-5000) is in place to directly respond to customers’ complaints, compliments, and recommendations. KTC has also responded to feedback that has been sent in via regulatory bodies as well as social media. Customers’ complaints, compliments and recommendations are used to improve the Company’s services/products for the benefits and protection of customers. In events of complaints, KTC has quickly investigated their causes, reported progress to its customers, and solved the problems with the customers well informed of all stages. Throughout its operation, KTC has used customer feedback in improving its products/services and boosting the satisfaction of customers as well as stakeholders.

    ˗ KTC has set up the Internal Audit department, which works independently and reports directly to the Audit Committee. The Internal Audit department is in charge of assessing the adequacy and efficiency of internal control system, risk management and corporate governance mechanisms at KTC. Following the assessments, the Internal Audit Unit submits the report and recommendations on how to improve the internal control work to the Management and the Audit Committee for the purposes of ensuring good internal control, lowering cost, and minimizing risks. The Internal Audit Unit has played a role in promoting efficient audits, which provide the fundamental foundation for the Company’s sustainable growth.

    ˗ KTC has established a Compliance Departments as a consultant with the regulations of the government authorities such as Bank of Thailand, SEC: Securities and Exchange Commission, Anti-Money Laundering Office (AMLO), and National Credit Bureau. KTC will analyze the impact and arrange the conference for making the understanding with other KTC departments.
  2. Anti-Corruption
    The anti-corruption measures can be found in the corporate social responsibility section 5 prevention of corruption.
  3. Respect for 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 (2015) and applicable laws. The company setups training to ensure that debt collection are in line with the law, and collections performed without intimidation, contempt or sarcasm. KTC uses polite words in asking for repayments and does not disclose customers’ information to any third party either. In addition, KTC is sensitive to the feelings of its customers when following up with repayments.

    In order to comply with labor laws in recruitment process, KTC evaluate qualifications based on age, knowledge, abilities, skills, and performance of the applicants with no discrimination on the basis of sexuality, religion and political beliefs. People with physical disabilities are welcome to work at KTC if they have the potential to fulfill job descriptions and do not get any serious contagious disease. KTC employees are not subject to sexual, religious and 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.

  4. Fair Labor Practices
    The company established clear and transparent standard operation procedures (SOP) for new personnel recruitment, performance valuation, annual salary increase, performance incentive, and annual promotion, in order to set standards in human resources operation.

    In 2017, KTC recorded a number of 1,741 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 to avoid worsening the employees’ health.

    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.
    - Provide 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

    KTC emphasizes on human resources well-being and development to sustain and strengthen organization-employee relationship. In order for the Company to grow and be able to compete in the industry, it is of importance to have a great foundation from all our employees. Therefore, an employee survey is conducted to receive feedback and suggestions from employees. The survey information is kept confidential. The employees can rest assure that their opinions have no influence on how their performance will be evaluated. The survey conducted in 2017 by an independent agency was 68%, which was higher than the average for the participating companies. Employees felt they were part of the Company, eager to deliver high performances, and ready to be a part in the Company’s continuous development.

    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 2017

    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 long-term competitiveness, KTC focuses on attitude development and specialized operational skills with efficiency, accuracy, and speed to enhance customer experience and satisfaction. In 2017, more than 184 courses on human resources development 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 445 employees participated in the orientation. Afterwards, a test was conducted to evaluate knowledge and understanding. The minimum passing score is 85%.

    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 31.43 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. The activities were conducted in the form of discussion and practice at Wat Maheyong in Ayutthaya province.

    The KTC Sit & Talk activity was organized to share information and experiences in various fields by knowledgeable guest speakers in order for employees to stay up-to-date, for example, Digital Trend 2017, How to Survive in Digital Transformer Era, Crisis Management in the Digital World, FinTech The Next Gen Finance, AI in the World of FinTech, Good Nutrition Good Health, Charge Your Memories to Wake Your Ideas, Provident Fund Profits after Resignation, Get to Know Cyber Crimes, and Support Organic Rice Farmers.

    - KTC organized the “LEARN & EARN” program for the 14th consecutive year. This program supports development and empowerment of youths in the 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 2017, KTC focused on producing quality personnel under the concept “Endless Learning for Sufficient Living” by motivating students to never stop learning, to uphold the teachings of King Rama 9 as living principles, to prepare for new job opportunities in the digital era, and to adhere to morality, honesty, and good ethics.

    - 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, which include subjects such as anti-corruption, guideline on good governance policy, company’s business ethic manual, and social and environmental awareness, were provided with the 2017 results displayed in the table below;

    - Provide self assessment test in the knowledge and understanding of the law regarding Anti money laundering and anti terrorism financing via electronic channel for the management and employee. The results of 2017 are in below table;

    - Provide self assessment test in the knowledge and understanding of the law regarding legal transaction that will benefit the employee both professionally and personally. The learning topic is “Useful Law for KTC people”. The results of 2017 are in below table;

    - Provide self assessment test in the knowledge and understanding of “Fundamental Risk Management” covering risk definition, risk management process, and loss data from operational risks to benefit employees. The results of 2017 are in below table;

    The company believes that if employee is happy both physically and mentally, their performance will be good as well. Therefore, the company has created activities to promote for better physical and mental condition of employee. These are some of the activities for year 2017;
    - KTC has created employees’ consciousness to be 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. The activities were conducted in the form of lecture, discussion, and practice at Wat Maheyong in Ayutthaya province. KTC has brought 50 volunteered employees to practice Dhamma by upholding the 8 precepts and mental training to cleanse the mind and stay in the present.

    ˗ “KTC Sit & Talk” activity to share knowledge and experiences in various topics so that employees are kept up-to-date to current situation, there were guest speakers invited to lecture on topics, such as Digital Marketing Must-Dos, Crisis Management in the Digital World, Marketing in Innovation Era, AI in the World of FinTech, Thai and Global Economic Trends, Charge Your Memories to Wake Your Ideas, etc.

    ˗ Dhamma Talks under the topic “Happy Mind in the Imperfect World” by Phra Ajarn Jitr Jitrasangwaro and “Work Accomplished. Mind Delighted.” by Phra Maha Sompong were organized to adapt Dhamma teachings into work and daily lives.

    ˗ Held Badminton and Football competitions in order to promote unity, sportsmanship, and compassion.

    ˗ KTC encouraged employees to care for the society and their health through a supporting program by purchasing rice grains directly from farmers who cultivate organic rice, free from any chemical use.
  5. Responsibility towards Consumers
    KTC has joined hands with BOT and Legal Execution Depart in implementing the “Composition Festival for Negotiations with Debtors” and to provide knowledge in topic “Money Management and Creating Financial Discipline for KTC card member”, 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” 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 2017, the company has organized 6 of such projects in major provinces, with over 5,527 participating debtors, in which 93.34% 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 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.

    KTC aims to promote financial discipline, efficient income management, self reliance and 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 toward Professional Barista”, the “Macaron, the highly popular dessert”, the “Kanom Pia, easily made to eat, getting rich made 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 but they include relevant activities for participants to take part in.

    KTC has communicated with its debenture holders via “the Sovereign”, the pamphlet that informs them of their privileges and to them to join various seminars as well as recreational workshops in response to KTC’s policy to develop good ties with them. In 2017 the company held 15 such activities.

    24x7 Service
    ˗ KTC has prepared a team who is willing to provide counseling/assistance related to products/services to KTC members. In a bid to boost customers’ confidence in KTC services, Manager on Shift has also monitored the work real-time to ensure that timely solutions are introduced when the situation requires ones.

    ˗ 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.

    Fraud Prevention
    ˗ KTC has introduced the IVR (interactive voice response) Activation system to increase safety, convenience and speed in activating members’ cards.

    ˗ KTC has launched the IVR KTC Contact Center 02 123 5000, which allows customers to get information and updates related to their accounts by themselves via their PIN number. The system promises faster services as customers will no longer have to hold the line. In year 2017, the company has done the KTC Contact Center’s satisfaction survey through IVR system, there were 752,000 answers to this survey, the survey result showed satisfaction level of “Highly Satisfied”, the company will use the survey result to develop both the internal services and external services, such as service provided by the Outsource Sale, in order to prevent and reduce complaints and to improve company’s service efficiency.

    ˗ KTC has put in place the Verification Process so as to protect the safety of credit card members’ information and also to prevent frauds.
  6. Environmental Care
    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 eDocuments, to email eDocuments 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, which are 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 3 suppliers who receive “Carbon Neutral Certification” or “Green Print” to print company’s documents, such as credit card or personal loan application form and Newsletter to inform promotions to 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.

    Attempts to Save Electricity & Petrol
    ˗ KTC has reduced electricity consumption by using only energy-saving light bulbs (LED bulb) at its offices and also its service points across the country. Broken plasma screens at KTC are gradually replaced by LED TV Screens, which consume less electricity. In 2017, KTC was able to save electricity cost by 70%, up from 63% in 2016.

    ˗ KTC has the policy to save and reduce unnecessary energy in offices. The air-conditioning systems time was effectively controlled and managed, including dropping the air-conditioning temperature. Employees are allowed to wear casual clothes at work. Employees working on a night shift shall sit together at designated area so as to save electricity at the facilities and to keep all under the close supervision of their supervisor.
    ˗ KTC has reduced its petrol expenses by requiring that all company cars use environmentally-friendly petrol types such as E20 gasoline. In 2017, there were 17 E20-type corporate vehicles, which reduced fuel cost by 85,478.95 Baht, increased from 11,932.19 Baht in 2016.

    Environmental Health Care and Building Safety
    ˗ KTC has hired professionals to clean the inside of air-conditioning vent of the headquarters at United Business Center 2 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.
  7. Contributions to Community/Social Development
    KTC believes that everyone in the society must jointly make contributions to create a good society and that the development of quality human resources must start with young children. As a result, KTC mainly focuses on “youth” with a conviction that youth education is crucial to the country development. KTC has launched two big projects namely the “Learn & Earn” Project and the “KTC Offer” Project apart from providing educational support to government agencies, private organizations and academic institutes. KTC has carried out the Learn & Earn @ KTC project since 2003. Designed to inculcate the value of time and the need to manage their expenses in the youth, the project has recruited university students to work part-time at KTC. They can step in to get on-the-job training and receive wages on an hourly basis. KTC employees helped supervise and teach the interns useful knowledge in preparing them for the real working world. This project has helped create jobs in the society. More than 25,000 students have joined the Learn & Earn @ KTC project to date. Among them, over 3,300 have already completed the project’s training and several hundreds have finally secured full-time jobs at KTC. During the internship, university students also had the opportunity to participate in many skill-development activities by incorporating knowledge and skills from a variety of experts via Edutainment such as close discussions to inspire career choices with successful professionals from various fields. In addition, the Company arranged a field trip for the interns with the intention to instill the attitude of “giver”. In 2017, KTC carried out an inspirational activity called “Endless Learning for Sufficient Living” to uphold the teachings of King Rama 9 on perseverance, eagerness to learn, and sufficiency as living principles. Successful individuals who have abided by these principles were invited to share their personal experiences and to initiate ideas applicable for work life. Furthermore, the interns were to adhere to morality, honesty, and good ethics.

    KTC is committed to developing good and quality people for the society at a wider scale. Aware that the Learn & Earn project has limited positions, KTC has initiated the “KTC Offer” Project. Successful KTC executives who are experts in various fields such as marketing, finance, public relations, human resources, and legal, participated in the project by sharing their knowledge and experiences in university classrooms and through numerous seminars for the public. Following the organization of knowledge sharing policy, target audiences receive more than mere theoretical knowledge that supports critical thinking and is adaptive to both studies and professions.

    KTC has prepared a system in which KTC cardholders can use their cash-equivalent reward points in making donations to 25 charity organizations. Under the “Reward Points for Donations” Project, KTC cardholders can convert their points to cash donation with 1,000 points equivalent to Bt100. Donations can be made by calling the KTC Contact Center, contacting KTC Touch branches, or completing a form via “TapKTC” application or ClickKTC website. KTC will then submit the donations to their chosen charity organizations. KTC, in addition, has arranged a monthly donation program for interested cardholders. If they join the program, the donation will be monthly charged to their credit-card account. 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”, “Kao Charity Run Event by Toon Bodyslam”, “Fund Raising for Rachawadee Home”, etc. In 2017, 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 of and purchase of medical equipment for the Bhumisirimangkhalanusorn Building, the Chulalongkorn Hospital, and for the CCF Foundation to help underprivileged children at remote schools.
  8. Creation and Promotion of Innovations
    To be part of the government’s policies of National e-Payment, Thailand 4.0, and Bank of Thailand’s Cashless Society, KTC has developed a system to support an additional form of credit card payment for goods and services through the QR Code Payment in the “TapKTC” mobile application. The application was approved into the BOT’s Regulatory Sandbox and has been released to the public since November 16th, 2017. KTC is now the first and only credit card provider which caters to the usability of both credit cardholders and merchants. This advancement also reduces the merchants’ costs, helps reduce the EDC storage and facilitates usage through a stable form of mobile application payment. In terms of the customers, besides convenience and safety from using the mobile application to scan QR Codes to make payments, they can also receive the same payment credits they would receive normally through regular credit card transactions. Currently, there are 44 merchants undergoing BOT’s Regulatory Sandbox.

    In a bid to increase its customers’ convenience in accessing its services, KTC has developed efficient online channels for its customers. These online channels offer not just information but also platforms to carry out transactions in one-stop-service style. The “TapKTC” and “ClickKTC” applications cover all types of KTC products/services for credit cardholders/shops accepting credit-card payments. During their pilot phases, these applications were available on website only. However, they can now be accessed via smart phones and smart devices powered by both iOS and Android operating systems, because KTC seriously seeks to accommodate the growth of its big target groups, especially those providing payment services now and in the future. The online services available via “TapKTC” and “ClickKTC” applications include Cash Advance withdrawals from KTC credit-card/personal loan accounts. Customers can choose whether to put the cash in their account or others’. In addition, KTC’s personal-loan customers may choose to receive cash via any shop in the KTC network. With these online applications, customers can conveniently check their due amount, set due-payment alerts, and access various other services. In year 2017, there are 416,552 members who have applied for the services like E-Statement, which customers will not only get the statements more conveniently but also help lessen the need to produce hard-copy statements, thus reducing the need to use natural resources. There will be no need to use energy for disposing old and discarded statements either. Presently, there are 335,957 members who have applied for the E-Statement service. KTC has deployed the Contact Center staff to recommend the e-Statements service channel to customers.

    KTC has developed a new service under its TapKTC Merchant project to allow shops to accept credit card payments online. This new product is called “mPOS” (mobile point of sale) that can operate on either iOS or Android system. By joining the TapKTC Merchant project, every participating shop can accept payments for its services/products at the point of sale via a registered smart phone. The mPOS will process the payment and issue an online slip for customers to sign or to affix their e-Signature. The payment process will then move to the last stage in which an e-Receipt will be sent to customers’ email inbox. Since all information sent through the mPos is encrypted with high safety standards, shops and credit cardholders are ensured the confidentiality. Current members accepting mPOS are 2,899 shops.

    KTC uses innovations by all leading networks of credit-card providers namely Visa, MasterCard and JCB so that its team can develop its business further and generate income from these innovations.

    KTC has issued electronic credit cards for members who use services trough online channel (KTC Virtual Card), with an aim to lower the production cost of paper/plastic-based cards. KTC member will not have to worry if their cards are broken or lost. In year 2017, there were 8,270 members using this service

    KTC has come up with an initiative to notify applicants about its credit approval results via SMS. Work procedures now require that after credit analysts has reviewed credit-card/personal loan applications; they shall inform applicants of results via SMS. In the past, the notification was made via a mail – a process that consumed a huge volume of paper and that forced customers to wait for the result longer. Moreover, mail delivery could take time. In 2014, KTC thus launched the SMS notification initiative. Under this new system, applicants learn about the results fast via SMS in all events except when their applications are rejected. Laws require that any decision not to grant a credit be communicated in paper only. For successful applicants of credit cards and personal loans, they shall get SMS notification and no longer have to wait for a mail from KTC. With the SMS notifications, paper consumption significantly decreases. After credit cards and personal-loan cards are issued and sent to customers, KTC has a specific team to follow up with delivery and activation. After ensuring that the cards reach customers safely, the team will inform customers of cards’ benefits and facilitate their activation of the cards. Such procedures are taken to prevent damages from the loss or delayed delivery of the cards, reduce customers’ time/expense in following up on the cards, and minimize activation procedures for customers. KTC does not want to replace or re-deliver a card, where not necessary.

    KTC has compiled employee database in the Human Resource Information System (HRIS), which boosts database efficiency and reduce paper consumption. In addition, KTC has developed several HR modules in the HRIS to address all relevant needs. The HRIS can support more devices including smartphone applications such as keying information, leave and overtime approvals, etc.

    In the recruitment process, KTC started to let applicant filling the application form through Google Form channel in order to reduce document filling process. KTC has used QR Code to run the sequence of applicant in order to make job application become more systematic, to increase flexibility in application process and to create the image of professional and systematic working style.

3. Operations related to Corporate Social Responsibility

In 2017, KTC did not engage in any business operation that might affect the society or the environment.

4. After-Process Activities for the Environment and the Society

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

  1. Knowledge Sharing (target groups: community, media, and young generation) focused on activities in various forms of knowledge sharing and creating inspiration by collaborating with successful individuals from both state agencies and private sector. Examples as follow:
    Organized activities to commemorate the late King Bhumibol Adulyadej. More than 40 journalists attended a narration on the royal cremation ceremony. Interns from the LEARN&EARN program participated in the mug painting workshop. Twenty students from Mahamek Home for Boys were offered the opportunity in learning how to sail a boat under a supervision of Yacht Racing Association of Thailand under the Royal Patronage.

    Organized a workshop for grade 7-9 students with impairment from Setsatian School for the Deaf under the Royal Patronage to learn about meditation and mindfulness through body movements, breathing, scented crafts, and art of living and balancing.

    Organized the yoga meditation activity for journalists and 40 female inmates, who were nearly released from the prison, in order to help prepare mind-body balance of these prisoners before returning to the society by a special guest speaker, Kru Dol of Jivita Sikkhalay Club, at Central Women Correctional Institution, Lat Yao.

    “KTC FIT Talks” seminar to share knowledge continuously on finance, innovation, and technology to the press and KTC personnel. Special guest speakers with specialized knowledge and expertise have been invited in casual discussions on numerous interesting and trending topics, for example; KTC FIT Talk, Get ready for IFRS9 with the CFO, Fintech and the financial institutions.

    The Company has organized “Tour Thai Thai” activity under the KTC PR Press Club to various forms of media in order to present perspectives and stories that are beneficial to the society. In 2017, guest speakers from various fields were invited to educate people on local history, arts and culture, herbal recipes, and a visit to Nang Leng Community.

    Organized a K9 - police activity to promote understanding of K9 trainings and the missions police dogs undergo in serving the country. The activity was supported by the Mounted Police Sub-Division under the Patrol and Special Operation Division and other 3 police divisions: patrol, forensic, and K9 forensic.
  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 1,309,000 Baht as follows:
    KTC sponsored the “In Remembrance of the Supreme Artist” project under the “In Remembrance of the Great King“ exhibition to commemorate His Majesty the late King Bhumibol Adulyadej as the Supreme Artist who was the patron of arts and culture, and to propagate His proficiency in various forms of arts including visual arts, literature, and design innovation.

    Donated good-conditioned computers to the school under border patrol police sub-division 13 at Phra Phuttayodfa Camp in Phanom Thuan district, Kanchanaburi province, of whom participated in the 9th Shred2Share activity, for educational purposes.

    KTC and Krung Thai Bank PCL organized KTB Central Rally 2017 and planted trees for forestation in remembrance of HM the late King Bhumibol. Also, education and sports supplies were donated to Ban Tham Hin Border Patrol Police School in Suan Phueng district, Ratchaburi province.
  3. Sports
    To promote and support sports related activities, the company was involved in sponsoring tournaments, or other sport activities to associations, clubs, or foundations such as the Journalist and Media Association and other associations amounting to 60,000 Baht.
  4. Social and Society
    In order to promote and support Social Environmental related activities, the company participated by donating or sponsoring various foundations with the total of 632,999 Baht spent in 2017 as the following:

    For the past 11 years, KTC’s management and employees have donated blood to the Thai Red Cross Society. In 2017, a total of 188,550 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 124,000 Baht.

5. Prevention of Corruption

The Board of Directors has approved KTC’s anti-corruption policy, which is a part of the Company’s policies on corporate governance, with an aim to prevent directors, executives and employees from engaging or cordoning any form of corruption. With exceptions that such activities are in line with rule of law, regulation, and tradition. The company specifies roles, guidelines, duties, and penalty to handle corruptions cases. Reporting channels are also provided. All these efforts are made to ensure that executives and employees at all levels can carry out their work properly.

In 2013, KTC signed an agreement to declare its intention to join the “Private Sector Collective Action Coalition Against Corruption” during an international seminar on the Collective Anti-Corruption (CAC), which was organized 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.

KTC has been operating in compliance with the certification process of the Private Sector Collective Action Coalition Against Corruption (CAC) project by presenting evidences related to business policies, measures of business operations, and internal control system to the project’s committee. On April 22nd, 2016, the Company became a certified member of CAC.

In 2017, KTC continued to place importance on following anti-corruption policy. There are set guidelines for monitoring to prevent risks from corruption including instructions to oversee and evaluate performance on anti-corruption policy. Results are as follow:

  1. To review the Anti-Corruption Policy. It is a part of the Company’s policies on corporate governance, which has been approved from the Board of Directors by a resolution of the committee 3/2017 to comply with Article 123/5 stated by The National Anti-Corruption Commission. In order to ensure that the management is aware and give precedence to Anti Corruption and cultivate anti-corruption efforts into the company’s culture; by communicating the established policy to members, business partners as well as employees through company’s website (, intranet and company’s internal learning medias.
  2. Required all departments to annually evaluate “Risk control self-assessment (RCSA). The departments will select their procedure or “core business” and evaluate the likelihood of risk to indicated risk level. Then assess the level of control to indicate whether the control is appropriate, or should the level of risk be reduced. The RCSA covers corruption related risks, the assessment results are submitted to the Risk management committee (RMC) and annually reported to the Krung Thai Bank. In 2017, RCSA results of every work process or operation posing high chances of corruption risk have been strategically managed to prevent such risks from occurring.
  3. To create efficiency related to the business of the company, the President& CEO and top managements are involved in the initiation of the policies related to the company’s anti-corruption efforts; such as, the gifting policies.
  4. Provides standard working procedures in accordance to the anti-corruption policies, the collective action coalition, and the RCSA. As a guidance to the management and employees.
    1. Provides standard procurement procedure, for transparent procurement process without either direct or indirect involvement of corruption, with the company’s interest above all else.
    2. Provides rules & instructions related to anti-corruption policy which consists of: prohibition of bribery, rules regarding money value of dining, gifting or other beneficial exchange, rule regarding support to political parties, procedures regarding donation and charities.
    3. The company established the compliance department to increase efficiency towards the anti-corruption efforts. The compliance department is the center for advice, comments, and complaints regarding corruptions and misconducts. The company also setup a policy for reporting misconducts and protective measures to protect the complainants. Employees and stakeholders are able to file reports or complaints via the channels provided by the Corporate Governance policy and the anti-corruption policy. When filing reports or complaints, the complainants are to provide their names, last names, and detailed information regarding the complaints or misconducts, such as story background, related individuals, etc., in order to be able to continue with the investigation.

    Customers and Publics can submit the complaints or comments to the company by following channel:

    • customer relations 02 123 5000 24 hours a day
    • complaints hotline 02 123 5000
    • http:/// or submit messages to
    • Fax: 02 123 5190
    • by letter to 591 UBC II Building, 18 Floor, Sukhumvit 33 Road, North Klongton, Wattana, Bangkok 10110 Thailand

    Employees can submit comments or complaints directly by email. The company will keep the complaints confidential; the company will neither disclose names or private information of the complainant or those who cooperate with the internal investigation. There will be no penalty, demotion, or negative impact to the employee who refuse to participate in the corruption scheme even though such actions cost the company its business opportunities. Fairness will be also be provided to the accused.

    The Compliance department is responsible for collecting and monitoring reports/complaints during the investigation process, which will then be reviewed according to the corporate governance policy and anti-corruption related policies with related personnel or committees to provide conclusion in accordance to the human resources rules and procedures. In the case that the complaint is related to the company’s directors, it will be reported to the audit committee. The company also provides corruption complaints case studies as examples.

    However, procedural complaints, personal conflicts, or anonymous tips are not considered corruption complaints.

    In 2017, the Company received no complaints and found no corruptions conducted by insiders or outsiders. To be assured that the KTC management and employees are aware and accept anti-corruption measures, the newly employed management and employees are to acknowledge and accept such measures on their contract signing days in addition to the information they receive during orientation for newcomers.

  5. The company encouraged every operation unit in the company to comply to the Anti-Money Laundering law enforced by the Anti-money Laundering Office (AMLO), and that of the payment network providers to support governmental anti-corruption.
  6. The company has a clear policy against bribery, or monetary settlements during litigation with members and frauds.
  7. The company provides guideline regarding expense reimbursement and business records for correctness, assessable, and in accordance to accounting standards.
  8. Provide learning material to directors, managements, and personnel to be knowledgeable and understand related rule, procedure, and policy; such as Compliance Tip. As well as setup Corporate Governance, Business Ethics, and anti-corruption policy as a topic in the new employee orientation sessions.
  9. Provide management and personnel with annual self assessments via Google drive, which includes standards and regulations related to the law, corporate governance policy, business ethics and other standards, to create awareness to management and personnel.
  10. Established in detail within the service contract between the company and business partners that the business will be conducted with honesty, transparency, assessable by good corporate governance; abiding to the anti-corruption related laws.
  11. In order to follow up and assess the results in regard to the policy and the anti-corruption measures, the company has setup an internal audit who is independent in auditing efficiency, sufficiency assessment of internal control, risk management systems, and the company wide corporate governance by setting annual action plans according to the risk level and risk factors. The audit committee, corporate governance, and corporate social responsibility are responsible for the audit of the financial reporting system and the accounting system, internal control, internal audit, and risk management system; to ensure that it complies with international standards, appropriate, modern and effective. The audit committee, corporate governance, and CSR report to the Board of Directors annually.
  12. Disciplinary action
    a. The Company requires that all levels of employees must sign an agreement on acknowledging and accepting the Corporate Governance Policy, the Anti-Corruption Policy, the Code of Conduct manual and Anti-Corruption measures in order to show their commitment to embrace the guidelines, which everyone must strictly follow.
    b. Directors, management, and employees who fail to comply with the Anti-Corruption Policy may lead to disciplinary action by the Company and be subjected to the penalties under the related Laws.
Details regarding the company’s policy are disclosed on the company’s website, in the Corporate Social Responsibility section at