SUSTAINABILITY FAQ

  • We conduct town hall session with our suppliers to emphasise our stand on our robust labour practices. Supplier audits are being conducted after the town hall sessions to assess and monitor human rights risks and there were no potential negative social impacts identified https://www.topglove.com/social-compliance/

  • Top Glove enhanced its Product Streamlining to ensure proper management of products in categories such as industries, colors, weight etc.
  • Top Glove has diversified into different product range ie, Face mask, Hand Sanitiser, Household products. To add on we ventured into Rubber Reclaimed Products to increase our export.

With the engagement of independent consultant Impactt Limited to assess the Group’s social compliance practices, we have improved our labour practices. Impactt verified that we have eliminated all indicators of systemic forced labour in our direct operations in April 2021, a reflection of the effective engagement between the independent consultant and Top Glove.

Please click here, to read the full report.

Yes. The Freedom of Association Statement is articulated in our Human Rights & Ethical Conduct, under Section 4.4.

The management of the Company is subject to merits and demerits for compliance and non compliance respectively. Management staff will also be subject to severe disciplinary action, such as termination of employment, for critical non-compliance.

Labour management performance targets are set as a Group Key Performance Indicator (KPI); this is also linked to management incentives. These KPIs measurements are based on international standards, such as Business Social Compliance Initiative (BSCI) & Sedex Members Ethical Trade Audit (SMETA) standards, and social compliance audit scoring.

From our due diligence process, we have terminated 2 recruitment agents in FY2020 for not meeting the Company’s social compliance standards.

We raise awareness of labour rights through various means.

We have included labour management performance with external social compliance audit rating as a Group Key Performance Indicator (KPI); this is also linked to management incentives. The Human Resources (HR) Compliance Team conducts monthly internal social compliance audits. The management of the Company is subject to merits and demerits for compliance and non compliance respectively. Management staff will also be subject to severe disciplinary action, such as termination of employment, for critical non-compliance.

We also conduct monthly meetings between HR management representatives and worker representatives from each factory, enabling workers to raise workplace and accommodation issues. The Company also conducts town hall sessions with workers on the available grievance channels.

In FY2021, Top Glove has conducted more than 7,000 training hours on human rights and social compliance trainings. These include:

  1. Workplace bullying and sexual harassment training to all employees.
  2. Training sessions with workers, supervisors, and management on workplace bullying policies and how to raise grievances

To enhance employee engagement, we have developed multiple grievance mechanisms and independently managed whistleblowing channels for our employees, especially for our workers. Every factory has a worker representative from each nationality and gender, to carry out regular dialogues with Human Resources (HR) representatives to raise any concerns.

We also conduct quarterly meetings between worker representatives and Top Glove’s Independent Directors to discuss workplace and wellbeing related issues.

To know more about these engagement activities, please click here.

We improved our Prevention of Bullying Policy, Prevention of Sexual Harassment Policy & Grievance Procedures to ensure adequate procedures are in place. We have also included Job Advertising Policy in the ‘Recruitment Agreement’ to prevent workers being deceived by recruitment agents.

We enhanced the recruitment process through the enhancement and revision of the Recruitment Agreement, which includes a more robust and transparent job advertising policy. Due diligence on recruitment agents is part of the process to ensure no recruitment fee being collected from workers.

We practise a transparent, open and fair tender process as part of our process of appointing recruitment agencies.

We established a Hostel Management Committee in December 2020 to ensure accommodation compliance and manage workers’ accommodation issues.

Top Glove has also spent RM200 million on new accommodations for 13,000 workers, fully complying with Act 446.

To view improvements in our workers' accommodation, please click here.

Effective 10 September 2021, Top Glove Malaysia is cleared to resume exporting and selling gloves to USA following modification of finding by US CBP.

We have reimbursed a total of over RM150 million to our workers in relation to recruitment agency fees from August 2020 to April 2021, ahead of our planned timeline by July 2021.

Key corrective actions include:

  1. Establishment of independent grievance helplines in various workers’ native languages, which are managed by Impactt Limited UK;
  2. Enhancement of the Prevention of Sexual Harassment Policy and Prevention of Workplace Bullying Policy;
  3. Improvement of the recruitment process agreement with agents by adapting to transparent agent recruitment processes, in line with the Zero Cost Recruitment Policy;
  4. Human rights training and assessments as well as a strengthened advertising policy in relation to recruitment, to prevent incidences of deception; and
  5. Engaged an independent third party auditor to conduct quarterly assessments across our facilities to ensure ethical labour practices continue to be upheld.

Top Glove is adopting global standards such as Business Social Compliance Initiative (BSCI), Sedex Members Ethical Trade Audit (SMETA), International Labour Organisation (ILO) 11 forced labour indicators as well as United Nations Guiding Principles (UNGP) on Business and Human Rights.

We have strengthened our business practices in order to meet international best labour practices (guided by BSCI, SMETA &UNGC standards as well as ILO indicators).

We adopt the Human Rights and Ethical Conduct, referring to the Business Social Compliance Initiative (BSCI) Code of Conduct.

Our appointed independent third party consultant, Impactt Limited, has verified that Top Glove has eliminated all 11 ILO forced labour indicators in its direct operations, as of April 2021.

Top Glove has an enhanced Grievance Procedure Policy and developed multiple grievance mechanisms for our employees, especially for our foreign workers. These include independent multilingual grievance helplines which are available in 9 workers’ native languages and managed by third party consultant, Impactt Limited UK.

Every factory has a worker representative from each nationality and gender, to carry out monthly dialogues with Human Resources (HR) representatives to raise any concerns.

Top Glove’s Independent Directors engage with the workers representatives quarterly, to discuss workplace and wellbeing related issues.

Top Glove’s whistleblowing channels are managed by independent third party and oversight by the Whistleblowing Committee.

Click here to know more about Top Glove’s Grievance Procedure, and here for more information on Top Glove’s Grievance Mechanism

ESG issues, including labour rights, health and safety are oversight by the Board Risk Committee and Board Sustainability Committee, which are chaired by Independent Directors, and where Independent Directors consist a majority of committee members.

Each an Independent Director is part of an average of four (4) committees, including the Board Risk Committee (BRC), the Board Audit Committee (BAC), the Board Nomination and Remuneration Committee (BNRC), and the Board Sustainability Committee (BSC).

The Independent Director Committee meets regularly to discuss various issues such as the risk of global non-regulatory compliance and other ESG matters. The Independent Directors have also visited hostels and engaged directly with workers onsite

Independent Directors have quarterly meetings with Worker Representatives, the first of which was conducted on 9 March 2021 with worker representatives from Nepal & Bangladesh, to discuss worker issues.

For more information on the Board Committees and Management engagement practices, please click here.

Top Glove’s zero tolerance on corruption and bribery is articulated in our Code of Conduct, Anti-Bribery and Anti-Corruption (ABAC) Policy, No Gift Policy, and other governing documents which are applicable across all business units, including our suppliers and customers.

Our approaches and initiatives to embed anti-corruption and anti-bribery practices within the Company are as follows:

  1. ISO 37001 Anti-Bribery Management Systems (ABMS) Certification
  2. Anti Bribery and Anti Corruption Policy
  3. No Gift Policy
  4. Corruption Free Pledge
  5. Whistleblowing Policy
  6. Corruption risk management in supply chain
  7. Awareness events and programs

Yes, Top Glove has in place a Board Diversity Policy, in line with our belief that a diverse Board composition is an essential measure of good governance and a driver of its effectiveness.

We currently have 5 female directors, representing 38% of a total of 13 members.

Our Board of Directors comprise of individuals with diverse skills, gender and experience.

For more details of our Board members, please refer to pages 15 to 28 of our Integrated Annual Report 2021.

The Independent Directors Committee meets at least 4 times annually to discuss strategic, governance and operational issues, among others.

The Company has adopted a 9 year tenure limit towards maintaining independent deliberation, review and decision making of the Board. The Board is always mindful on the importance of governance and acknowledges to continue delivering sustainable performance and instilling best corporate governance practices in building a sustainable business.

To know more about this, please refer to our Corporate Governance Overview Statementand Corporate Governance Report.

We have appointed an independent auditor to conduct Board evaluations. The Board of Directors’ primary role is to promote long term sustainability and shareholder value creation. Additionally, it is also accountable for the performance of the company.

The Board Effectiveness Evaluation Framework provides directors with a vital tool to undertake their duties effectively and efficiently.

Towards further ensuring that the Company’s sustainability goals are advanced, the Management is held accountable for the achievement of these goals, with executive compensation tied in with the managing of identified material ESG issues.

40% of our Key Performance Indicators (KPIs) are related to the Social & Environmental pillars and aligned with the Group’s top 5 material issues. The ESG metrics used to determine executive compensation include:

  • Product quality & safety (Customer complaint rate reduction)
  • Occupational health & safety (Occupational accident rate reduction)
  • Human Rights and Labour Practices (Improvement of the social ethical audit scoring)
  • Carbon emission reduction (Scope 1 & 2 emissions intensity reduction)
  • Talent retention (Employee turnover rate)

To know more about this, please click here.