sustainable development report 2010 · sustainable development report 2010 (f) fixed income trading...

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Sustainable Development Report 2010

CONTENT


Message from the Chairman of the Board 2

of Directors

History 3

Business Operation 3

Corporate Governance 4

Business Operation with Fairness 5

Respect for Human Rights and Fair Labor Treatment 7

Responsibility to Customers 8

Community and Social Development 8

Corporate Social Responsibility 18

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Message from the Chairman ofthe Board of Directors

Despite the volatile political atmosphere that prevailed inthe first half of last year, in 2010 the Thai stock market recordedits highest average daily turnover since 1996. Regardless of thestate of the economy or the stock market, the Company isserious about its responsibility to contribute the environment andsociety at large. Apart from abiding by the principles of ethicsand good corporate governance, BLS has fostered the creationof economic, social and environmental values among all sectorsand is hoping for cooperative efforts from all parties concernedin forging ahead toward sustained development.

BLS is committed çto serve you betteré-our corporatemotto is a mission statement, not an empty platitude. Withregard to our customers, we are committed to improving ourservice quality further and developing new products. We arecommitted to adhering to good corporate governance principles.We believe our good corporate governance practices enhanceconfidence among, and protect the interests of, our shareholdersand all concerned parties, as well helping to improve theCompanyûs competitiveness.

Sansern Wongcha-umChairman of the Board of Directors

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Sustainable Development Report 2010Sustainable Development Report 2010

HistoryBualuang Securities Public Plc (çBLSé, çthe Companyé), formerly named

BOA Securities Company Limited, was established from the retail brokeragebusiness and private fund business of JP Morgan (Thailand) Securities Co Ltd,including personnel and related assets. BLS started operating on December,11, 2001. It changed its legal status to that of a public company on September14, 2004.

Business OperationBLS was granted a securities business license type Kor. (No. Lor

Kor-0005-01), pursuant to the Securities and Exchange Act B.E.2535.Currently, the Company is permitted by the SEC to offer six types of securitiesbusiness services, namely:

(1) Securities brokerage(2) Securities trading(3) Investment advisory(4) Securities underwriting(5) Private fund management(6) Stock borrowing and lending

Furthermore, the Company was granted a derivatives business licensetype Sor-1 (No. Sor1-0005-01), pursuant to the Derivatives Act B.E.2546,enabling it to offer derivative brokerage services. The SEC also approved theCompany to render the financial advisor services.

The Company currently undertakes eight securities businesses, namely;(a) Securities brokerage business(b) Derivatives brokerage business(c) Investment banking business: financial advisory and securities

underwriting(d) Private fund management business(e) Selling agent business

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(f) Fixed income trading business(g) Stock borrowing and lending business(h) Arbitrage investment business

BLSûs 2010 revenues totaled Bt1,645 million, of which Bt1,060 million,or 64% came from brokerage income. Employees at year-end 2010 totaled549 persons. The Company has a total of 24 branches covering all regions ofthe country, of which 14 are in Bangkok and vicinity and 10 in the provinces.The details are available in the 2010 annual report and the Company website(www.bualuang.co.th).

1. Corporate GovernanceThe Company has set up six committees, namely the Board of

Directors, the Executive Committee, the Audit Committee, the Nomination andRemuneration Committee, the Risk Management Committee and theCorporate Governance Committee. The members of the committees and themanagement are competent persons with full qualifications pursuant toSection 68 of the Public Limited Companies Act, B.E. 2535 and the Notificationof the SEC (and amendment thereto) pertaining to qualification of listedcompanies and other related rules and regulations. In addition, theEnvironment, Health and Safety Committee has been set up by the Companyto take care of the health and safety of, and create a good work environmentfor, the staff. The Welfare Committee has also been formed to look into andensure proper staff welfare. In 2010, the Company formed the çBualuang CSRClubé to allow for employees willing to dedicate to public services to join inthe Companyûs CSR activities.

The Corporate Governance Committee ensures that businessoperations and organization-wide practices comply with and adhere to thegood governance principles. The Committee is composed of at least fourmembers, at least one of whom shall be an independent director, together with

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one management director, the head of the Compliance and Internal AuditDepartment, and the head of Corporate Counsel and Investor RelationsDepartment/Company Secretary. The Chairman shall be an independentdirector. In 2010, the Corporate Governance Working Committee held twomeeting, with attendance by all members.

The term of service of a Corporate Governance Committee memberwho is a director of the Board is three years, the same as that of his or herBoard tenure.

The Company has put in place a policy for good corporate governancewhich incorporates the following key principles:

(1) Rights of Shareholders(2) Equitable Treatment of Shareholders(3) Role of Stakeholders(4) Disclosure and Transparency(5) Responsibilities of the BoardPolicy details are available on the Company website (www.bualuang.co.th).

2. Business Operation with FairnessBLS is committed to operating with integrity and conducting business

in good faith, ignoring any benefit that will be derived from an unacceptableactivity. The Company adheres to the following principles:

(1) Prevention any activity that could lead to a conflict of interestthrough the adoption of a policy on connected transactions andother activities that could be construed as entailing a potentialconflict of interest, as follows:(1.1) Connected transactions

Before entering into any connected transaction, BLScarefully considers the reasonableness of the transaction.After completion of a transaction that falls within thedisclosure rules of the supervisory authorities, the Board

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of Directors ensures that the said rules, conditions andprocedures for disclosure of information governing listedcompanies regarding connected transactions are strictlycomplied with and that the relevant information pertainingto the transaction is disclosed in the annual report andthe annual registration statement (Form 56-1), so as toensure the transparency of the connected transaction andthe elimination of any conflict of interest.

(1.2) Other activities that could possibly entail a conflict ofinterest

The Company will avoid any of authorized personswho are significant shareholders of, or have vestedinterest in, rival companies or trade partners fromparticipating in decision-making on matters concerningbusiness relationships with those parties, unlessotherwise approved by the Board of Directors.

(2) The promotion of free, fair (non-monopolistic) trade competitionand observe the competition regulations outlined by theregulatory authorities, especially the rules on brokerage fees andcommissions for marketing staff.

(3) Compliance with intellectual property or copyright law. In thecase that a violation of intellectual property rights is discovered,the Company will take prompt action, as deemed fit, in order toend such piracy.

(4) Establishing and maintaining a management system thatdiscourages and identifies bribery and fraud. In the case ofmalfeasance being discovered, an efficient remedy processensures justice for all parties.

(5) Enhancing the awareness of directors, management andemployees of the importance of resistance to all forms offraud, extortion and bribery.

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3. Respect for Human Rights and Fair Labor TreatmentBLS upholds human rights and labor treatment standards and

guidelines, as required by laws, with a view to improving the workplaceenvironment and employee quality of life and providing staff withtraining and skills development under the following principles andguidelines:(1) Provision of security for the employees to ensure that they

are safe from harassment and abuse and have freedom ofassembly within the purview of the relevant laws.

(2) Upholding the principles of equal opportunity, regardless of race,religion, color, gender identity, national origin or disability, withinthe purview of the relevant laws.

(3) Refusal to use forced labor and child labor.(4) Employee development_enhancing the skills and capabilities of

members of staff by offering opportunities to learn and to bepromoted, as deemed fit.

(5) The adoption of employment terms and conditions that are fairto employees and offer reasonable compensation, based on theskills and effort of each employee.

(6) Provision of appropriate welfare for employees, such as annualvacation leave, reasonable overtime, medical care, etc.

(7) Ensuring that employees manage a good balance betweencareer and personal life and have opportunities to participate inactivities that contribute to society. In the massive flood andstorm disasters in 2010, for instance, Bualuang CSR Clubpersuaded staff members to donate food, medicines and othernecessities to flood victims and joined with a group of volunteeremployees to help pack relief kits at the Dusit Thani Hotel fordistribution to flood victims. In addition, Bualuang CSR Clubinvited employees to donate blood to the National Blood Centerof the Thai Red Cross Society.

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Sustainable Development Report 2010Sustainable Development Report 2010

(8) Provision of a channel for stakeholders to report any leads ormisconduct to the Companyûs Audit Committee for furtherinvestigation, under a process specified by the Company, beforereporting to the Board of Directors. To ensure whistleblowerprotection, the Company treats any reported information withstrict confidentiality. Acceptance of a complaint and investigationprocedures are set out. The information regarding complaints isaccessible only to the persons assigned and involved.

4. Responsibility to CustomersThe Company is committed to creating maximum satisfaction for

customers with due care and accountability. BLS continues to developnew services and diversify the channels/options of current services, aswell as provide accurate, complete and precise information to clients.

The Company keeps customersû information strictly confidential.It discloses information about a client only with the permission of thatclient, except in case where information must be disclosed to a partyfor legal reasons. BLS has instituted a system to accommodatecustomer complaints so that the complaint can be resolved or settledfairly and promptly.

5. Community and Social DevelopmentCorporate Social Responsibility or CSR was first introduced in

Thailand around 2006. Thai listed Companies, multinational

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corporations and state enterprises have all recognized the significanceof CSR and the extent of its contribution to the creation of a goodcorporate image. The general public is appreciative of any generouscorporate action for the community or the environment, whilecustomers react positively toward a socially responsible entity.

BLS, as a corporate citizen of Thailand, is well aware of theimportance of integrating social and environmental concerns in itsbusiness operation and is determined to uphold codes of ethics andmorality in alignment with the Stock Exchange of Thailandûs policy toencourage listed firms to conduct business in a socially responsiblemanner, in order to ensure sustainable development. In 2010, theCompany formed the çBualuang CSR Clubé to allow for employeeswilling to dedicate to public services to join in the Companyûs CSRactivities. The Bualuang CSR Club held a total of five meetings in 2010and arranged a number of activities beneficial to society and theenvironment.

The Company has broadly welcomed proposals for CSR projectsput forward by employees. A project proposal format has been outlinedfor consideration at a meeting of the Bualuang CSR Club, covering thefollowing topics:CSR Project Proposal

1. Name of project 2. Responsible person/working group 3. Background and rationale 4. Objectives 5. Participants 6. Action plan 7. Budget required 8. Expected benefits 9. Project assessment

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The highlights of our cooperative efforts toward the sustainabledevelopment of communities and society within and outside the organizationin 2010 are as follows:

Internal CSR Projects/Activities(1) Financial aid to a total of 10 flood-hit employees.(2) Loans for employees to meet emergency spending needs.(3) Annual health check-up programs and health insurance provided to all

staff members to ensure the employeesû well-being is taken care ofacross the board and the vaccination of all employees against three fluvirus strains-A, B and H1N1 influenza .

(4) Creation of a pleasant workplace environment by playing easy-listeningmusic during office hours.

(5) Provision of staff welfare, such as annual vacation leave, reasonableovertime, etc.

(6) Arrangement of a yearly off-site employee seminar at Ravindra Beachand Resort Spa Hotel and Dor Shada Hotel in Chon Buri Province, amangrove reforestation project in Khlong Tamru Sub-district, Chon BuriProvince and a workshop on çA Happy Worker, A Pleasant Workplace,éto provide an opportunity for employees to recommend activities thatcould promote and encourage pooled efforts in performing their dutiesand upgrading their quality of life at work.

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(7) Sports competitions among BLS employees (football and badminton)to strengthen their unity and encourage exercise.

(8) Arrangement of an annual merit-making ceremony in which an offeringis made to monks and a buffet is provided to customers andemployees as a way of fostering Thai culture and tradition.

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(9) Organizing the Bualuang CSR Mart event to strengthen staff memberrelationships, employee engagement and social awareness under theCSR policy. At the event, items donated by employees were sold inorder to raise funds for CSR activities. Among the items sold werebags, watches, home decoration products, jewelry, dolls, pocket booksand others. There were also items donated by the Company directorsand the management team for auction, with the proceeds contributingto the fund for the Companyûs CSR activities.

(10) Arrangement of a New Year celebration party for employees at S31Hotel, Sukhumvit Road, in recognition of their hard work throughout theyear.

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(2) A seminar, çIm Boon On Tour No. 2é, enabled the management team,branch managers and marketing team leaders to socialize at SuksaSongkra Phetburi School, Phetchaburi Province, which is an ongoingsocial responsibility project, while a personnel development workshopon çKnow Your Colleagueé was aimed at enhancing participantsûunderstanding of their fellow employees and subordinates as part of aneffort to optimize working efficiency.

Suksa Songkra Phetburi School is for underprivileged children,who have difficulty getting access to education, due to economic,social or cultural issues. Mr. Pichet Sithi-Amnuai, BLS President,represented the Company and its customers in granting 85scholarships together with educational equipment worth more thanBt300,000 in total to assist and create educational opportunities forschool children in remote areas.

External CSR Projects/Activities(1) A seminar, çIm Boon On Tour No. 1é, enabled the management team,

branch managers and marketing team leaders to socialize in AmphawaDistrict, Samut Songkhram Province, while a workshop on çCoachingfor Changeé enhanced readiness for customer servicing in an era ofchange in the securities business at Baan Amphawa, Samut SongkhramProvince.

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(3) BLS joined as one of the Gold Sponsors for the charitable çCoins onSilomé Community Event, which was organized by the Rotary Club of

Bangkok South. In return for adonation, passersby were invited toplace a symbolic çcoiné bearing theevent sponsorsû logos on red tape.

The funds raised were donatedto Rotary Club of Bangkok Southcharitable projects across thecountry. These Rotary Club projectsare aimed at benefit ing theunderprivileged and the disabled-children and youth in particular. TheCompany is proud to havecontributed to the Rotary Club ofBangkok Southûs fund-raisingeffort.

(4) BLS promoted supplementary learning and education outside theclassroom by welcoming undergraduate and graduate students fromvarious universities to visit and tour the Company and listen to briefpresentations on the securities business. In 2010, undergraduatestudents and teachers from the Faculty of Business Administration,Ramkhamhaeng University and undergraduate students under the çNewInvestors Program: NIP 18é visited and toured the Company andlistened to brief presentations on the securities business.

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(5) BLS gave New Yearûs gifts to customers, business partners and otherexternal agencies in the form of 100% jasmine rice, labeled çSchoolRiceé packed in beautifully designed packets made from naturalmaterials and sold by Business for Rural Education and DevelopmentCo Ltd (BREAD).

The bagged rice was produced with cooperation from LamplaimatPhatthana Schoolûs students, teachers, parents and nearbycommunities. The profits earned by BREAD from the production of theçSchool Riceé New Yearûs gifts were allocated for social activities ineducational and life quality development in rural areas.

BREAD is an organization founded to engage in business withthe objective of utilizing profits for educational and social development.Its activities include procuring and selling products and services andcoordinating to creating business value for all types of enterprises andconsumers through selection of quality products and services frombusiness alliances with similar awareness of social responsibility.

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(6) çDo Good Deeds in Birth Monthé project under which the employeeswill, in the month of their birthdates, initiate social and environmentalactivities to encourage employees to contribute socially, such as blooddonations to the Thai Red Cross Society, assistance for flood victims,etc. Representatives of employees liaise in gathering members of staffto conduct any such proposed activities during their birth month.

(7) The BLS Vegetarian Practice program was introduced by employeesduring the Chinese vegetarian festival and is aimed at merit-making andspiritual cleansing through precepts observance and avoidance ofeating animal meat. This is deemed as a good starting point for anyother form of contribution to social assistance activities.

(8) Following the flooding that inundated many provinces in Thailand in late2010, the Companyûs CSR Club persuaded staff members to donatefood, medicines and other necessities to flood victims and joined witha group of volunteer employees to help pack relief kits at the DusitThani Hotel for distribution to flood victims.

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(10) Donations of funds for floodvictims in 2010 were made to theRajaprajanugroh Foundation(under Royal Patronage).

(11) The Bualuang iExcel Contest2010 followed the successfullaunch of the Bualuang iExcelservice and was organized in conjunction with Microsoft (Thailand) CoLtd and the Stock Exchange of Thailand. At this event, college studentspresented their own designs for the Bualuang iExcel template. The aimsof the event were to build confidence and positive values towardinvestment in Thai society and to expand the investor base, in order toensure the growth of the Thai capital market.

(9) Blood donations by employees to the National Blood Center, Thai RedCross Society, were arranged in honor of His Majesty the KingûsBirthday Anniversary in December.

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6. Corporate Social ResponsibilityBLS is committed to running its business along ethical lines and

maintaining good governance principles, in concurrence with the awareness ofits responsibilities to society and the environment, so ensuring sustainablebusiness development. The Company has made continued efforts to nourishand care for the environment and for society. BLS has allocated budgets insupport of social and environmental schemes and activities every year.

BLS is committed to arranging social and environmental conservationactivities, while avoiding any activities that could be harmful to naturalresources or the environment.

The milestones of our environmental concern activities in 2010 arelisted below:

(1) The Company strictly complied with the environment-related lawsand regulations, efficiently monitored the Companyûs securityand environment and promoted and instilled in our employeesan awareness of environmental protection issues and efficientuse of energy by adopting, for instance, a policy on 3Rs: Reduce,Reuse and Recycle.

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(2) The Company organized the çLight for the Blindé Project. Thecommunity infrastructure for visually-impaired people in Thailandis not particularly good, as evidenced by a lack of blind-friendlyaccess to certain buildings, walkways, public buses, etc. In orderto go some way to making amends, a school for the blind wasset up to play a pivotal role in the development of the visually-impaired. A crucial blind teaching media is the use of the Braillealphabet. Today, there is still a lack of paper used for printingdocuments and books in Braille.

Under çLight for the Blindé Project, the Company wouldwelcome donation of unused calendars or New Yearûs greetingcards to the Foundation for the Blind in Thailand under the RoyalPatronage of Her Majesty the Queen for recycling into Braillepaper for the blind.

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About this ReportThe 2010 BLS Sustainable Development Report was prepared based

on the Corporate Social Responsibility Guidelines of the Corporate SocialResponsibility Institute (CSRI).

This report was printed on Green Series paper, which is made from ecofiber, an agro-based recycled material, without additionally exploiting woodfiber.

This report was prepared in two languages: Thai and English. For moreinformation, please contact:

Bualuang Securities Public Company Limited

29th floor, Silom Complex Office Building,

191 Silom Road, Bangkok, 10500

Tel: 0-231-3777, 0-2618-1000

Fax: 0-2231-3951, 0-2618-1001

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