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|li-'lUES'I'Itilllli 3 Top Berkah Bhd is a listed company in the main market of Bursa Malaysia. The company is a rubber glove manufacturer that produces
|li-'lUES'I'Itilllli 3 Top Berkah Bhd is a listed company in the main market of Bursa Malaysia. The company is a rubber glove manufacturer that produces face masks. dental dams. gloves. and other related products. The demand for these products increases drastically due to (SQUID-19 outbreak. As a result. the ccrnpany forced labour practices. which includes excessive overtime. abusive working and living conditions and low wages. Furthermore. to cut the operating cost. the company released waste substances to the air above the permitted standard by the Department of Environment {DOE}. The social responsibility issues were reported by the employees. lahour activists and the local community. The board of directors of Top Berkah Ehd is aware about the importance of addressing the Corporate Social Responsibility {GER} issues. The board composition of the company consists of ve male directors who have various qualications and experience. Currently. the company appointed Datin Johanna and Dato' Onn as the new independent directors. However. both of them are also active politicians in the country. The new board composition after the appointment of the two new directors are six males and one female. Aligned with the revised Malaysian |li.':cde of Corporate Governance [M006 2021}. the company had established a remuneration committee that consists of two executive directors. The company had also disclosed details about the directors' remuneration in its annual report. Required: a. Discuss three {3] impacts of neglecting CSR to Top Berkah Bhd. {6 marks] b. The M006 2021 Principle A Section |{55.5 discourages the appointment of an active politician as a director. Discuss three {3} reasons behind the recommendation. {5 marks]
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