Welcome to the Watsons Indonesia Investor Relations Site

Corporate Social Responsibility

The Company takes pride in serving the communities of Indonesia through its business and other initiatives. Providing the local communities with products and services they trust and can rely on is fundamental to building a sustainable business. As such, the Company is committed to generating a positive impact in every aspect of its operations, which is manifested in the implementation of corporate social responsibilities (“CSR”) across the Company to ensure that the Company actively contributes to the community and environment in its operations.

The Company’s CSR policies are established under the following four main pillars:

Workplace

1. Diversity and Equal Opportunity
2. Learning and Development
3. Reward and Recognition
4. Employee Engagement
5. Health and Safety

Marketplace

1. Customer Engagement
2. Customer Data Privacy
3. Products and Services
4. Supply Chain Risk Management

Environment

1. Compliance
2. Staff Awarness
3. Office Utilities
4. Office Waste
5. Warehouse Utilities
6. Warehouse Waste
7. Energy - Efficient Transport
8. Manufacturing

Community

1. Donation and Manufacturing
2. Community Development and Volunteering

In carrying out its CSR activities, the Company refers to the prevailing laws and regulations, primarily the Company Law, Law No. 25 of 2007 regarding Capital Investment, and Government Regulation No. 47 of 2012 on Corporate Social and Environmental Responsibility of Limited Liability Companies.

In 2018, the Company disbursed more than Rp 200 million in connection with CSR activities.

Workplace

The Company upholds the principles of equality and diversity within the Company. This is manifested especially in the provision of career opportunities and competence development for the employees, which is carried out periodically. In addition, the Company emphasizes that it does not tolerate any form of discrimination to or among its employees.

Furthermore, recognizing that the success of its business relies heavily on its HR, the Company encourages its employees to participate in training and development programs that are organized internally or externally. The Company focuses its programs on the development of both hard and soft skills of its employees for enhancing their competencies.

In 2018, the Company organized 14 different development programs for its employees (including managers, supervisors and general staff). These programs, totaling more than 23,277 training hours, were actively attended by more than 2,770 participants.

As part of the Company’s appreciation and reward for the contribution and hard work of its employees, the Company provides competitive remuneration packages.

The Company has put in place an employee engagement program that serves to maintain and enhance harmony, togetherness and teamwork among the employees of every working unit.

In 2018, in addition to the annual employee appreciation event organized to give recognition to outstanding employees, the Company had also organized various social activities for employees in an effort to enhance their sense of engagement as well as mental and physical wellbeing.

In terms of employee health and safety, the Company continues to promote a healthy lifestyle among its employees. Apart from including all employees in the national health security program (BPJS Kesehatan), the Company has continued to provide occupational safety training to its employees and organize safety drills to prepare employees for emergencies. In 2018, no work accidents were recorded by the Company.

For employment related complaints, the Company has established a governance policy, whereby the HR Department manages the grievance mechanism. Manpower related issues will be escalated to the management of the Company as appropriate.

The continuous investment in employees and the Company’s commitment to building a strong corporate culture have been rewarded with a highly qualified, competent and motivated workforce. In 2018, employee turnover rate was maintained below 2%.

Marketplace

Through this pillar, the Company performs its responsibility and manifests its commitment to providing excellent services and products to its customers. In practice, the Company strives to maintain the availability of a wide variety of products, especially the best-selling items to cater for the customers’ growing needs. Meanwhile, the employees endeavour to optimize their assistance and service to the customers with their knowledge of the products.

The Company also has an email platform at customerservice@watsons.co.id to provide an access for the customers to send their suggestions, complaints or inquiries regarding the services or products of the Company. Any input will be handled in a swift and professional manner by the customer service team and/or relevant business units. The Company has implemented a call center during office hour to further enhance communication with its customers.

Environment

Grounded in the commitment to environmental sustainability, the Company consistently strives to mitigate its environmental impact through comprehensive preservation efforts in all business activities, both in its stores and the office.

In practice, the Company encourages employees’ environmental awareness through the emphasis of efficient use of resources. To minimize the waste that it generates in its operations, the Company reduces the use of plastic bags in the stores in accordance with the standards set by the Indonesian The Indonesian Retailers Association (APRINDO).

Another measure taken to minimize environmental impact is the implementation of waste management systems, especially for warehouse waste, to reduce the waste generated and to ensure the proper disposal of waste and garbage. To ensure the effectiveness of the system, the Company works with a vendor specializing in waste management which provides specific drums for waste disposal.

Community

In promoting the development of communities in Indonesia, as well as in minimizing the unemployment rate, the Company prioritizes the employment of Indonesians to support its operation. In addition, the Company also promotes a corruption-free Indonesia by requiring its vendors to contractually sign anti-bribery provisions to ensure healthy cooperation and business conduct. Internally, the Company holds periodic anti-bribery and anti-corruption trainings to improve its employees’ awareness and understanding of such acts.

The following activities were also organized by the Company in 2018 for the benefit of local communities:

- On 6 June 2018, a breakfasting event was organized for the children of Muslimin Jaya Tebet Orphanage to share warmth and happiness in the holy month of Ramadan. The event was attended by 180 employees and children.

- On 2 November 2018, a Dental and Oral Health Introduction was held for 200 elementary school students of SDN 01 Menteng Dalam to provide dental care knowledge and to increase their awareness of the importance in maintaining a healthy lifestyle.

- On 21 December 2018, volunteers of the Company celebrated Christmas with senior citizens of Panti Werdha (Senior Care) Wisma Mulia, where over 130 employees and elderly shared the joy and blessings of Christmas.