INTRODUCTION OF CORPORATE SOCIAL RESPONSIBILITIES

Corporate

social

responsibility -

CSR,

also

called corporate

conscience, corporate

citizenship or responsible businessis a form of corporate self-regulation integrated into a business

model. CSR policy functions as a self-regulatory mechanism whereby a business monitors and
ensures its active compliance with the spirit of the law, ethical standards and national or
international norms. With some models, a firm's implementation of CSR goes beyond
compliance and engages in "actions that appear to further some social good, beyond the interests
of the firm and that which is required by law."The aim is to increase long-term profits and
shareholder trust through positive public relations and high ethical standards to reduce business
and legal risk by taking responsibility for corporate actions. CSR strategies encourage the
company to make a positive impact on the environment and stakeholders including consumers,
employees, investors, communities, and others.
Proponents argue that corporations increase long-term profits by operating with a CSR
perspective, while critics argue that CSR distracts from businesses' economic role. A 2000 study
compared existing econometric studies of the relationship between social and financial
performance, concluding that the contradictory results of previous studies reporting positive,
negative, and neutral financial impact, were due to flawed empirical analysis and claimed when
the study is properly specified, CSR has a neutral impact on financial outcomes.
Critics questioned the "lofty" and sometimes "unrealistic expectations" in CSR. or that CSR is
merely window-dressing, or an attempt to pre-empt the role of governments as a watchdog over
powerful multinational corporations.
CSR is titled to aid an organization's mission as well as serve as a guide to what the company
represents for its consumers.Business ethics is the part of applied ethics that examines ethical
principles and moral or ethical problems that can arise in a business environment. ISO 26000 is
the recognized international standard for CSR. Public sector organizations (the United Nations
for example) adhere to the triple bottom line (TBL). It is widely accepted that CSR adheres to
similar principles, but with no formal act of legislation.

BACKGROUND OF HONDA MOTOR

Honda Motor Co., Ltd.is a Japanese public multinational corporation primarily known as a
manufacturer of automobiles, motorcycles and power equipment.
Honda has been the world's largest motorcycle manufacturer since 1959, as well as the world's
largest manufacturer of internal combustion enginesmeasured by volume, producing more than
14 million internal combustion engines each year. Honda became the second-largest Japanese
automobile manufacturer in 2001. Honda was the eighth largest automobile manufacturer in the
world behind General Motors, Volkswagen Group, Toyota,Hyundai Motor Group, Ford, Nissan,
and PSA Peugeot Citron in 2011.
Honda was the first Japanese automobile manufacturer to release a dedicated luxury
brand, Acura, in 1986. Aside from their core automobile and motorcycle businesses, Honda also
manufactures garden equipment, marine engines, personal watercraft and power generators, and
other products. Since 1986, Honda has been involved with artificial intelligence/robotics
research and released their ASIMO robot in 2000. They have also ventured into aerospace with
the establishment of GE Honda Aero Engines in 2004 and the Honda HA-420 HondaJet, which
began production in 2012. Honda has three joint-ventures in China (Honda China, Dongfeng
Honda, and Guangqi Honda).
In 2013, Honda invested about 5.7% (US$6.8 billion) of its revenues in research and
development. Also in 2013, Honda became the first Japanese automaker to be a net exporter to
the United States, exporting 108,705 Honda and Acura models, while importing only 88,357.

LEGAL RESPONSIBILITIES

Corporate Responsibility Statement

Honda strives to be a company that society wants to exist. Through our diverse array of
products, and the processes required to produce, sell and use them, we impact society in many
ways. Whether developing fuel-efficient, low-emission products, minimizing the environmental
impact of our global manufacturing operations, or assisting communities in need, Honda seeks to
be a responsible company and community partner. As part of our North American effort to
embody this ideal, we have developed an approach to conducting business that seeks to uphold
the following principles and responsibilities of good corporate citizenship.

1. Respect for the Individual

Hondas relationships with its associates (employees), customers, dealers and business partners
are guided by the companys philosophy of Respect for the Individual. As envisioned by our
companys founders, this philosophy leads us to value and respect the unique contributions of
each individual. Accordingly, we are committed to ensuring that each person involved in the
development, production, distribution, sale and service of our products is treated with dignity and
respect, and has a meaningful opportunity to contribute to the companys success.

2. Human Rights
The respect for human rights is an extension of Honda philosophy of Respect for the
Individual. As part of Honda effort to conduct business in an ethical manner, Honda will not
engage in business practices or activities that compromise fundamental human rights.

3. Working Conditions

Honda is committed to ensuring that the individuals building our products and components and
providing services to our company are afforded responsible working conditions, and are treated
with dignity and respect.
1. ChildLabour
We shall not hire children who do not reach the legal age for work in each country and
region.
2. ForcedLabor
No form of human trafficking, forced, bonded or compulsory labor shall be used.
3. Compensation and Working Hours
Wages, including overtime and benefits, shall comply with local law, including those relating to
minimum wages, overtime hours and legally mandated benefits. Working hours shall comply
with applicable local laws.

4. Harassment and Discrimination

Harassment or discrimination in any form is not acceptable.
5. Freedom of Association
We encourage open communication with management regarding working conditions
without fear of reprisal, intimidation or harassment. We believe that maintaining an
environment for dialogue between associates and management will deepen free, openminded and two-way communication, making it possible to build a stronger relationship
of mutual trust. In addition, associates shall, in accordance with local laws, have the right
to associate freely, and joinor choose not to joinlabor unions or workers councils.
6. Health
&
Safety
Associates shall have a safe and healthy working environment that meets or exceeds
applicable standards for occupational safety and health.

4. Business Ethics and Compliance

Trust is a critical foundation of a successful and sustainable business. We have worked diligently
throughout the history of our company to foster trusting relationships among Honda and its

customers, suppliers, business partners and dealers. To maintain a high degree of trust with all
stakeholders, it is therefore a core responsibility of all Honda associates to conduct business in an
open, honest and ethical manner, and to follow the companys code of ethics in all their business
practices. This includes upholding all laws in the places where we do business.
PREVENTION

OF

CORRUPTION

We shall establish transparent and fair relationships with government entities and public officials.
All political contributions and donations shall comply with each countrys and regions laws.

5. Environmental Stewardship
Our companys approach to the environment is reflected in the Honda Environmental Statement:
As a responsible member of society whose task lies in the preservation of the global
environment, the company will make every effort to contribute to human health and the
preservation of the global environment in each phase of its corporate activity. Only in this way
will we be able to count on a successful future not only for our company, but also for the entire
world.
ENVIRONMENTAL MANAGEMENT
Based on the Honda Environmental Statement, we shall pursue our daily business interest under
the following principles:
We will make efforts to recycle materials and conserve resources and energy at every stage of
our products life cyclefrom research, design, production and sales to services and disposal.

We will make every effort to minimize and find appropriate methods to dispose of waste and
contaminants that are produced through the use of our products, and in every stage of the life
cycle of these products.
As both a member of the company and of society, each associate will focus on the importance of
making efforts to preserve human health and the global environment, and will do their part to
ensure that the company as a whole acts responsibly.
We will consider the influence that our corporate activities have on the local environment and
society, and endeavor to improve the social standing of the company.
Honda shall comply with all applicable environmental laws and regulations in all jurisdictions in
which we operate.

6. Diversity & Inclusion

Our company philosophy concerning diversity in the workplace states: Equality among
colleagues is expressed in recognizing, respecting and valuing individual differences in each
other, treating each other fairly and creating equal opportunity for everyone.
Honda recognizes that diversity and inclusion are critical to our business operations. Diversity in
our workforce and supply base helps foster the kind of innovation, sensitivity and vitality that
enables us to dream big dreams and create products and technologies that make peoples lives
better. We embrace diversity across all levels of our business, and among our associates,
suppliers, dealers and communities in which we do business.

7. Community Involvement
Beyond creating jobs at the facilities we establish in communities throughout North America, we
recognize the responsibility to act responsibly and constructively as a member of these
communities. Through a broad range of community initiatives, charitable giving, foundation

grants, and volunteerism, Honda seeks to create value for society and bring joy to peoples lives.
We are proud of the many partnerships we have established with non-profit organizations that
share our value of community involvement.

8. Commitment to Principles
In adhering to the above principles, Honda seeks to communicate its commitment to its
customers, associates, suppliers, dealers and other business partners, and to the communities in
which we live and work. Further, we expect that any party conducting business with Honda will
embrace and uphold these principles to the best of their ability.

Caring For The Future Of Our Children

This year, Honda gave back to the community by taking school aged children and
underprivileged children out for a fun and educational day out.

As part of continuous efforts to spark interest, create awareness and educate the young the team
at Honda hosted children at the recent KL International Motor Show event to teach them about
the benefits of innovation and the technology behind hybrid vehicles.
To brighten up the lives of underprivileged children, Honda created an opportunity for them to
visit KidZania, a place where they could play in a fun environment and inspire them to believe in
the power of their own dreams.
Honda Dreams Fund Announcement
When Honda Dreams Fund (HDF) was introduced in January 2007, Honda Malaysia made a
five-year commitment to this unique scholarship. December 2011 marked the end of its five-year
commitment and Honda Dreams Fund will be making way for Honda Malaysia's new, more
holistic Corporate Social Responsibility direction.
Although Honda Dreams Fund has ended its run, Honda Malaysia will continue to support the
scholars under this bursary until the full completion of their studies, some of whom are expected
to graduate only in 2016.
Honda Dreams Fund was conceived with the aim of providing full and non-binding scholarships
for underprivileged but determined youths who have a dream but not the financial means to
achieve it. These youths were dared to dream and challenged to hold on to their dream regardless
of their situation. Honda Malaysia, in partnership with United Nations Development Programme
(UNDP) awarded the HDF scholarship to 100 scholars between year 2007 to 2011. These HDF
scholars were selected from amongst the truly deserving youths identified via road tours to
villages, rural areas and schools throughout Malaysia.
Honda Malaysia and UNDP works with an independent advisory panel comprising members
from various organisations, which are the All Women's Action Society (AWAM) and Malaysian
Youth Council (MYC) in the evaluation and selection process. UNDP manages the process of
selection to ensure unbiased award of the scholarship. During the 5-year commitment, HDF has
inspired and impacted Malaysian society as a whole by changing the lives of these scholars and
those of their families through education.

A total of 22 scholars have graduated and gone on to forge a new dream in life. Honda Malaysia
is glad to have been able to provide a platform for these special 100 scholars to achieve their
dreams. Their life has been transformed through this scholarship opportunity. We are proud to
have journeyed with the 100 scholars in pursuing their dreams through education.
Honda Malaysia is committed with our philanthropic efforts to contribute to the Malaysian
society in various ways. Going forward, Honda will continue to be true to the power of dreams
and the new Corporate Social Responsibility will be more encompassing in realizing a better life
and supporting the weak in society as Honda continues to seek to be a company that society
wants it to exist. We will be announcing the future CSR direction soon.

HONDA'S GREEN FACTORY, AN ECO REVOLUTION

Honda Malaysia fulfils a social responsibility to build a company that society wants to exist.
When Hondas Suzuka Factory was built in 1960 in Japan, Soichiro Honda had been resolute
about building a plant that is harmoniously integrated into the local community. Despite
changing times, his vision continues to be brought to fruition by Honda associates around the
world, particularly more so in an age of climate change.
Since the introduction of Hondas Environmental Management Program (EMP) in 2006, Honda
Malaysia has taken significant steps to improve their environmental performance in production
operations by reducing carbon footprints and producing cleaner air in the community that they
live and work in.
At Honda Malaysias 80-acre manufacturing plant in HICOM Pegoh Industrial Park of Alor
Gajah, Malacca, innovative ideas have been implemented to address pressing environmental
issues facing society today. The state-of-the-art plant may house automobile assembly activities,
but upon entering its compound, you are greeted by workers in spotless white uniforms, which is
the first trace of the plants indisputable cleanliness
Beneath the plants ordinary steely exterior, the green effects are subliminal. An intricate
ventilation system is fitted to ensure a constant flow of fresh air to displace body heat and natural

sunlight leaks into the factory from a solar-smart roof. The glow is undoubtedly cosy during nonproduction hours when an automatic timer turns off the high bay lights to conserve energy.
The EMS committee explains that much of the environmental-friendly systems in place now are
voluntary initiatives by local associates to strive towards a greener plant. Syahril M. Azmi, the
appointed Environmental Management Representative, says, The EMP goal is to reduce CO2
emissions by 10 per cent from the previous year. Given the increasing scale of our production,
minimising the greenhouse effects becomes an uphill challenge, although it presents us with an
opportunity to lead a lot of breakthroughs on energy and waste management.

Laying the green foundation

"Honda associates are given the freedom to find ways to achieve the goal while maintaining
Honda's philosophy of respecting an individual through initiatives, equality and trust. A true
testament to the capabilities of our people is when we obtained the ISO 14001 certification of our
Environmental Management System (EMS) in May 2007 without employing a third party
consultant," says Syahril.
When the ISO 14001 requirements were fulfilled in 2007, the environmental program
concentrated on smaller projects to improve on energy consumption and minimise wastage.
"The ISO 14001 has its own standard which we had to comply. Our aspect-impact study helped
us to establish our own index and action plan. The Constant Velocity Joint (CVJ) and Paint
departments had the highest carbon emissions and wastage. Hence, our objective was to regulate
those areas first" he adds.
An Inverter System was introduced in the Paint Department to restrict the amount of electricity
used by machines during start-up and at the same time, a precision-engineered bell spray gun
helped to improve overall paint efficiency and reduce wastage. The new spray gun also
successfully lowered damaging Volatile Organic Compound (VOC) emissions by 46 per cent.

The paint that goes to waste automatically flows into the Waste Water Treatment Centre located
within the plant and is transformed into harmless dry sludge before it is sent to the landfill. The
extracted water is then distilled and re-used within the plant.
By 2008, the Inverter System had reduced CO2 by 35 per cent and its energy saving
achievements was a key motivator to expand the use of the Inverter System in 60 per cent of the
plant in 2009.
A coordinating EMP committee member, Mohd Firdauzaman, explains that the effective results
from the initial groundwork spurred the rapid transition towards a plant that produces at a more
sustainable capacity.
"In March 2009, we decided to replace all 400w Mercury Vapor high bay bulbs with Metal
Halide ones which consumes power at a lower 250w capacity.
These lights will go off during non production hours, and solar light from the roof aided by
newly installed energy saving corridor light is used on the walkway.
Energy is further conserved by replacing all petrol-fuelled forklifts to battery-operated ones. The
combination of all these implementation effectively reduces more than 50,000kg CO2 in a year,"
says Mohd Firdauzaman.

Reducing and recycling waste

The incremental steps in balancing energy needs also motivated the committee to build fully
functional and sustainable recycling centres to reduce waste to the environment, particularly
hazardous ones.
"Many people will think of it as bad smelling garbage and send it to the landfill," says Mohd
Firdauzaman referring to the food waste collected at the canteen. "We have more than 1,500
associates and contractors dining in this factory, which means there is a huge volume of food
scrap collected daily. Since our food waste recycling program was set up in March this year, we
are able to compost up to 200kg of food waste per day."

"The bacteria that speeds up the decomposition also removes bad odour in the process. This
results in a clean, high quality alternative fertilizer that is used for gardening around the factory.
We see this as an effective cure to the excess odour and waste, and phases out using chemical
fertilizers," he adds.
After many years of segregating recyclable by-products in an open space within the plant, a
recycling centre complete with a rain harvesting system was also set up in 2009 to properly
manage the huge load of manufacturing by-products like metal cases, metal chips, paper, plastic,
polyfoam and wooden pellets discarded daily.
Firdauzaman says, "It is really a great opportunity for us to strive towards a zero-waste-tolandfill target. Up to 10 tonnes of this waste is collected per day in our Recycle Centre. This
includes metal chips laced with oil discarded from the CVJ department. We try to release nothing
harmful to the environment so we have created oil trenches around the recycling centre that will
filter and prevent the toxic grease from leaking to the drain."
"The recycling centre's roof also captures rainwater which is then used to clean the building
daily. This is an expansion of the same philosophy that guides the newly established Waste Water
Treatment Centre," he continues.
To optimise domestic water usage, an irrigation system is built around the plant to divert all
water wastage to be distilled at the water treatment centre. The treated water is sampled and
approved by the DOE, and its quality is reflected by the health of Koi fishes breeding in the
holding tank.
The treated water is then rerouted to various areas in the plant to be used for flushing toilets and
watering the green landscape in more than half the plant.
Right beside it is the Thinner Recycling Centre, set up to minimise wastage from the Paint
Department and optimise manufacturing efficiency. Unused thinner is filtered and distilled,
making it good to be re-used again for cleaning the equipments within the department.

Seeking a cleaner air

Underlining the waste and carbon reduction is a permanent mission to clean up the air by
monitoring all harmful gases that could be released from the assembly line. No longer will the
stereotypical image of industrial pollution be conjured up when you think of car manufacturing.
From the Assembly Frame department, carbon monoxide from testing engine exhausts is filtered
during the exhaust ducting and firing exhaust process before it is expelled as harmless gas into
the air. Emissions from the CVJ department will also contribute to greenhouse effects if not
responsibly managed.
"Just a year ago, the indoor air in the department is congested and the filthy mist blurs our vision.
Installing an Oil and Mist Collector became a crucial step as we not only want a clean factory but
we need cleaner air. We are glad that our associates are now breathing in cleaner air," Syahril
explains.
"To comply with the standards of Malaysia's Department of Environment (DOE), all the
unfriendly toxic is collected from the CVJ department into the new machine, which will filter
and expel the processed oil and mist as clean air.
Air sampling data is monitored and this is reported back to the DOE every six months. At Honda,
we value living in harmony with our surroundings and we hope to fully realise our dream of
being a company that society wants to exist by 2010," he adds.
There is no question that the energy conserving activities, waste management and carbon
reduction plans would have been further expanded when we meet with him again by then. With a
common mission embraced by Honda associates around the world, Honda Malaysia is guided by
the environmental compass in the right direction.

SIGNIFICANT FACTORY IMPROVEMENTS TO BE LEAN AND GREEN

Since 2007, Honda Malaysia has undertaken several green projects to reduce emissions, improve
energy efficiency and recycling manufacturing by-products. By 2009, the Melaka plant was
operating with virtually zero waste to landfills most waste from food to manufacturing byproducts are recycled. Even oil wastes are filtered through oil trenches to prevent it from leaking
into the environment.
Each year, incremental steps are taken to improve air ventilation and energy management. This
year, the plant effectively reduced energy consumption to 234kg/u from 261kg/u last year. Aside
from more LED, T5 and induction lighting installed, there are nine new solar LED street lights
and nine solar LED garden lights that were recently installed in March. These overall
improvements not only dramatically keep operational costs low but in a resource-intensive
industry, the commitment to protect the environment is increasingly crucial for our communitys
well-being. This, we know, is a promise that Honda can keep.

KEEPING YOU SAFE IN YOUR HONDA

A total of 307 Honda customers got the opportunity to learn safety driving techniques, in both
theory and practical lessons, which equipped them with skills on driving positions, vehicle
control and reaction to traffic hazards.
Honda's commitment to road safety does not stop at enhancing car safety technologies and
advocating proper maintenance. As part of the companys continuous efforts to make driving safe
for customers, a recent Customers Safety Driving Course was held in five sessions in October
and November 2011. Honda Malaysia has been organising safety driving courses for customers
since 2003 and at dealerships, qualified and trained staff members have been promoting safe and
eco driving tips to customer during car delivery.

FOR A SAFER AND BETTER TOMORROW

Honda helps improve vehicle safety testing for the Malaysian Institute of Road Safety Research
(MIROS).
Road safety has always been at the heart of Hondas vision of a safer world, with zero road
collision. Hence why Honda is dedicated in identifying and implementing safety improvements
for everyone on the road.
This is now exhibited through the introduction and sponsorship of the MIROS PC3 Drive Track
Roof Cover and the Soaking Room two areas of improvements in making vehicle safety testing
better. With these improvements in place, MIROS PC3 will be able to operate effectively without
the hindrance of weather-related issues. Making vehicle safety testing more accurate and thus
improving road safety for everyone.

DONATION COLLECTION FOR THE POOR & SINGLE MOTHERS

A donation drive organized by PKNM (Perbadanan Kemajuan Negeri Melaka) had seen Honda
Malaysia and other companies such as CTRM, PETRONAS, Dominant, and Panasonic, etc come
together to raise funds for the poor and single mothers in Melaka. The joint affair was carried out

at different locations around Melaka such as Durian Tunggal, Melaka Tengah, Masjid Tanah,
Alor Gajah and Merlimau.
Over a span of one week, a donation box was set up at Honda Melaka canteen and at the exit
gates to encourage employees to join this worthy cause. During that period, we had managed to
raise around RM710 and after combining it with other companies, a whopping total of RM10,
000. Representatives from Honda and other companies also had the opportunity to visit these
homes during the visitation period and help out the during donation drive.
We would like to take this opportunity to thank all associates at Honda Melaka for donating
generously to this cause. We hope to raise more money for the community and people of Melaka
in the coming events. Below are some pictures from the drive.

Honda Dreams Fund Announcement

When Honda Dreams Fund (HDF) was introduced in January 2007, Honda Malaysia made a
five-year commitment to this unique scholarship. December 2011 marked the end of its five-year
commitment and Honda Dreams Fund will be making way for Honda Malaysia's new, more
holistic Corporate Social Responsibility direction.
Although Honda Dreams Fund has ended its run, Honda Malaysia will continue to support the
scholars under this bursary until the full completion of their studies, some of whom are expected
to graduate only in 2016.
Honda Dreams Fund was conceived with the aim of providing full and non-binding scholarships
for underprivileged but determined youths who have a dream but not the financial means to
achieve it. These youths were dared to dream and challenged to hold on to their dream regardless
of their situation. Honda Malaysia, in partnership with United Nations Development Programme
(UNDP) awarded the HDF scholarship to 100 scholars between year 2007 to 2011. These HDF
scholars were selected from amongst the truly deserving youths identified via road tours to
villages, rural areas and schools throughout Malaysia.
Honda Malaysia and UNDP works with an independent advisory panel comprising members
from various organisations, which are the All Women's Action Society (AWAM) and Malaysian
Youth Council (MYC) in the evaluation and selection process. UNDP manages the process of
selection to ensure unbiased award of the scholarship. During the 5-year commitment, HDF has
inspired and impacted Malaysian society as a whole by changing the lives of these scholars and
those of their families through education.
A total of 22 scholars have graduated and gone on to forge a new dream in life. Honda Malaysia
is glad to have been able to provide a platform for these special 100 scholars to achieve their
dreams. Their life has been transformed through this scholarship opportunity. We are proud to
have journeyed with the 100 scholars in pursuing their dreams through education.
Honda Malaysia is committed with our philanthropic efforts to contribute to the Malaysian
society in various ways. Going forward, Honda will continue to be true to the power of dreams
and the new Corporate Social Responsibility will be more encompassing in realizing a better life

and supporting the weak in society as Honda continues to seek to be a company that society
wants it to exist. We will be announcing the future CSR direction soon

Achievement
Honda's Awards
2015

ASEAN Car of the Year 2015 (Malaysia) - Executive Car of the Year - Honda Accord

ASEAN Car of the Year 2015 (Malaysia) - Premium MPV of the Year - Honda Odyssey

ASEAN Car of the Year 2015 (Malaysia) - Crossover of the Year - Honda HR-V

New Straits Times / Maybank Car of the Year 2015 Awards Peoples Choice Award Honda HRV

New Straits Times / Maybank Car of the Year 2015 Awards Compact SUV of the Year Honda
HR-V

Putra Brand Awards 2015 - Automotive Category Silver

2015 Frost & Sullivan Malaysia Excellence Awards - Debut Car of the Year - City

Autoworld Car of the Year Awards 2014 - Best Sub-Compact Passenger Car (Hatch) - Jazz

Autoworld Car of the Year Awards 2014 - Best Sub-Compact Passenger Car (Sedan) - City