The Company has realized the importance of social responsibility in the past many years. In addition to corporate governance, the Company also underlines social responsibility in consideration of internal and external stakeholders, including employees, shareholders, suppliers/ creditors, customers, competitors, society, community and environment. The social responsibility guideline as a part of normal business conduct (In-Process) and social responsibility beyond normal business conduct (AfterProcess) are taken into account in accordance with 8 social responsibility principles as follows:
The Company conducts business while giving importance to fair treatment to all stakeholders, including shareholders, employees, customers, suppliers, contract partners, community, society and environment. Fair treatment includes action defined by law and action that does not violate or deprive the rights of stakeholders. The Company’s Code of Conduct is defined to ensure the fair business conduct since the company’s reputation in honesty as well as the reputation and goodness of executives are the valuable keys to success of business and have an effect on business progress and profits.
Nok Airlines Public Company Limited is committed to conduct business by giving importance to anti-corruption, morality, ethics, transparent management and responsibility to all stakeholders. Thus, Nok Airlines Public Company Limited defined the practice guidelines of business code of conduct and employee ethics for directors, executives, and employees at all levels as part of the Company’s “Corporate Governance” and development of corporate sustainability. In the Board of Directors meeting no. 6/2019, the revision of Anti-Corruption Policy was approved by adding e-mail as the channel for complaints and whistleblowing. The Company’s Anti-Corruption Policy was as follows:
Corruption means “To perform or refrain from performing the duty or to use authority in the illegal way which violates the law, regulation, or policy of the Company, including unethical and immoral action that seek for improper benefits, such as to demand for, accept, offer, or give assets, things, political support and other benefits to governmental officers, private companies, any individuals, and persons doing business with the Company and its subsidiaries, etc. Political support includes giving assets, money, things, benefits, directly and indirectly to help, support or bring other benefits of any political party, politician, any person related to politics and political activities. Related persons include spouse, child, parent, sibling/closed relative of directors, executives, and employees at all levels of the Company and its subsidiaries.
The Company defined the Anti-Corruption Policy for practices as follows:
The Company defined the following practices:
When encountering any doubt or action that breaches the following practices:
The Board of Directors assigns the Audit Committee to receive clues or complaints related to an act doubtfully involved with fraud and corruption, directly and indirectly, against the Company through complaint reporting channel under this policy. The complainant shall provide true details of the issues or complaints, name, address and telephone number to the Company through the following channels:
The persons who can file complaints related to fraud or corruption are all stakeholder groups, including shareholders, customers, trade competitors, creditors, public sector, community, society, executives and employees of the Company and subsidiaries. Regardless of the channel where the complaints are made, the person who reports such clues will be protected according to the legal right protection or defined practice.
If an investigation shows that the received information or evidence provides sufficient reason to believe that the accused is involved in fraud or corruption, the Company will give the accused the right to have access to the allegation and the right to prove himself/ herself. The accused will be given the opportunity to present additional information and evidence showing that he/she is not involved with such fraud or corruption as accused.
If the accused is actually involved with the fraud or corruption, he/ she is considered breaching the Company’s anti-corruption policy and shall receive disciplinary penalty according to the Company’s regulations. In case that such fraud action or corruption is also illegal, the person will be subject to legal penalty. The Audit Committee’s decision on disciplinary penalty is considered final.
To ensure that all employees are aware of the Anti-Corruption Policy, the Company shall take the following actions:
Moreover, the Company joined the Collective Action Coalition Against Corruption or CAC and signed the declaration of intent in April 2019. In addition to the AntiCorruption Policy, the Company implemented the practice of giving-receiving of gift, entertainment, or other benefits to prevent any uncomfortable situation and any decision making that could lead to the risk of corruption and to set the good standard of transparent and efficient operations for sustainable growth as following details:
Nok Airlines Public Company Limited conducts business under the corporate governance code which requires transparency and fair treatment to all stakeholders in accordance with the Anti-Corruption Policy and business code of conduct by not accepting or agreeing to accept assets or other benefits from customers, traders, suppliers, competitors or any other individuals doing business with the Company. Thus, the Company implemented the policy of giving-receiving of gift, entertainment, or other benefits to prevent any uncomfortable situation and any decision making that could lead to the risk of corruption and to set the good standard of transparent and efficient operations for sustainable growth as follows:
The Company’s personnel must commit not to receive or to offer bribes or other benefits to any personnel of the Company or third parties, especially government officers. If anyone is proved to fall in such case, he/she is considered guilty by company regulations and by law.
The expenses for business entertainment in form of foods and drinks, sports activity, and other expenses related directly to business conduct or commercial customs including creating business understanding can be made but must be reasonable and do not affect any decision making on operation or create conflict of interest.
The support of travelling expense and other expenses for government officers can be done as deemed appropriate but has to be in accordance with the Company’s relevant rules.
Donation and support to any organization must comply with the following conditions:
The Company’s personnel must understand and comply with the policy of receiving-giving gift, entertainment or other benefits. If any doubt is found, it shall be informed to the corporate governance department and corporate risk management or department/individual in charge.
Training to educate employee on Anti-Corruption Policy In 2019, the Company provided training about the anticorruption policy and code of conduct to educate and promote to employees for acknowledgement and compliance as the following details:
The Company conducts business by realizing the importance and promotion of the human right protection, providing services to passengers without discrimination on nationality, skin colour, age, language, religion, etc. The Company provides equal treatment, in terms of dignity, freedom, independence with no violation on other people’s rights, both legal rights and the rights that do not depend on legal provisions but on standard-based rights, which aim to ensure righteousness, fairness and justice; for example, services for passengers who need special assistance, sales service of fair-price tickets, and services to provide compensation in the case of the Company’s failure to provide the services as required. However, all shall be in compliance with relevant laws, requirements, and regulations.
Considering that employees are the Company’s key component and the most valuable assets, Nok Air has a policy to offer fair remuneration in accordance with relevant laws and to give assure the safety in working environment for employees, which in the end has an impact on passenger safety. The Company provides employees, supervisors and executives with enhanced relevant knowledge through safety training courses. In addition, the Company prepares monthly Safety Bulletin to promote safety and thoroughly communicate to all employees. In 2019, the Company held 8 training courses about safety, occupational health and working environment, safety officer for supervisor level, and safety officer for executive level, as follows:
Nok Air developed the Safety at Work Manual for its employees to ensure compliance with ministerial regulations and defined the administration and management standards for safety, occupational health and working environment. All these aimed to raise their awareness of work hazards and practice guidelines to ensure safety at work because any types of jobs can involve risks of accidents due to negligence and ignorance. The main causes of accidents are related to individual actions, such as being careless, taking a shortcut in a work process, disobeying rules and regulations, and failing to wear personal safety protection equipment. Actually, these can be prevented by employees themselves, to ensure the better health and quality of life of every Nok Air employee. The Company realizes that safety will strengthen their spirit and morale, which will eventually lead to corporate success and efficiency. All conducted activities related to safety, occupational health and working environment to prevent accident resulted in the Company’s 2019 statistics of 7 accidents with small injured employees and no leave.
Regarding personnel recruitment and selection, the Company gives importance to the recruitment and selection process to ensure quality personnel well-suited to the nature of business and corporate culture. The Company also provides job opportunities for persons with disabilities under the intention of the Article 33 of the Person with Disabilities Empowerment Act, B.E. 2550 (2007) and the Amendment (No. 2), B.E. 2556 (2013). This aims to improve the quality of life of persons with disabilities in terms of guaranteed jobs and enable them to use their capabilities to generate income and live by themselves while reducing burden on their families and society. At the same time, this will empower them to strengthen the economy of family and country.
The Company implemented the remuneration management policy that adheres to fairness, appropriateness and consistency with staff’s knowledge, ability, and performance through performance evaluation. In addition, the Company surveyed remuneration rate of external labour markets and companies in the same business to ensure that the Company’s remuneration is appropriate, competitive in the same industry and attractive for new talents.
Furthermore, the Company underlines the importance of employee development by reviewing training courses to enhance skills and capabilities of employees at each level. This is based on the training plan which is annually planned and designed, especially all management training courses for supervisors, junior management, and senior management. In 2019, the Company provided internal and external training for 566 employees, accounted for the average number of training hours per employee of 5 days per year.
Corporate communication has been continually focused on and corporate activities have been organized all year to develop and enhance bonding among employees. The Company also had the “Nok Huang Yai” and “Nok Klai Chit” programs for employees to communicate, share ideas, and directly make inquiries with the Human Resource Department.
New employees are provided with orientation program and training program concerning Basic Airline Knowledge, which aim to equip them with knowledge and understanding about components of the aviation business as well as the relations between the aviation business and aviation industry. New employees are exposed to actual working systems and procedures of all functions, including Flight Operations. They also learn about the Company’s Anti-Corruption Policy to realize its significance.
Providing all the above fair treatment to labour, the Company realizes that, “Safety, development, bonding, and communication are the key responsibilities that the Company commits to and strongly intends to give to all employees of Nok Air.”
Always taking responsibility for consumer into consideration, the Company focused on providing quality, safety, and customer satisfaction services. Creating passenger’s confidence started with the new jet Boeing 737 - 800 aircraft and propeller Bombardier Q400 aircraft and the aircraft maintenance which hired the expert and world-class famous aircraft maintenance service provider. Consumers can be assured of the internationally-recognized safety standards for production and maintenance. This aims to comply with Nok Air’s safety policy which is the top priority of the corporate values and is the obligation and highest responsibility of Nok Air’s personnel to consumers.
Considering that aviation safety is its top priority, the Company has continually provided training for its pilots to ensure the highest standards. As a result, Nok Air pilots have been certified by the Federal Aviation Administration (FAA), the most recognized organization in aviation, and are equipped with extensive flying hours and experience in flying, routes, topography, and local weather. Consumers can have complete confidence and trust in its high-quality personnel whenever they travel by Nok Air flights. Being trained by international standards, Nok Air’s flight attendants are ready to ensure passenger’s safety, convenience, and smiling throughout the flight.
In addition to confidence on safety, the Company emphasizes on services that provide customers with utmost convenience and satisfaction, including the sales channels that provide convenient and quick ticket reservation and payment. In case of flight delay or cancellation, passengers will be informed with prior notification via email, SMS, or telephone. Passengers who cannot be reached via these channels will be informed at the check-in counter. The Company developed its service process to ensure travel flexibility and convenience, with the Web Check-in service via the website and the App Check-on via Smart Phone to check-in in advance before travelling. The Company added the payment channels for passenger’s convenience through WeChat Pay, Alipay, credit card machine and 0% instalment for 3 months through credit card. Moreover, the Fly’n’Ride service is also provided for passengers who want to travel to the destinations where the Company does not directly provide service and provided shuttle bus to the final destinations. The Baggage Delivery service provided more convenience to passengers, by delivering baggage from Don Meung Airport to passengers’ houses or places in Bangkok and from Chiangmai Airport to houses or places in Chiangmai. To respond to consumer’s feedback suggestion or complaints, “Nok Care” and “Nok Feedback” Programs were dedicated to receiving customer complaints on services, which will be analyzed to improve services to be more efficient and in line with consumer needs.
The Company was aware of its part of environmental protection and searched for ways of reducing natural resource usage in the production and service processes. Nok Air chose New Generation Boeing 737 - 800, which uses ‘Carbon Brake,’ an innovation that significantly reduces the aircraft weight, compared with its traditional brakes like ‘steel brakes.’ This new brake system helps save fuel and reduces carbon dioxide emissions. Using carbon materials, which are more durable and have a longer service life than steel materials, the carbon brake can significantly shorten maintenance periods.
In addition, Nok Air also used the NextGen Bombardier Q400 for short-haul routes. It is the only turboprop model that is accompanied with the Active Noise and Vibration Suppression (ANVS) system, which reduces vibration, noise inside cabin and noise pollution. It can decrease fuel consumption by 7% and reduce carbon emissions by 35%. Thus, Nok Air passengers can enjoy a convenient, quiet, fast, and environmental friendly short-haul flight experience, exclusively offered in Thailand by Nok Air.
In addition to using the aircraft with innovation that helps reduce natural resource usage, the Company introduced the “Mobile Boarding Pass.” With this system, passengers can do online check-in via its website and via mobile application on Smart Phone with iOS and Android operating system. This significantly reduces paper consumption in the production and service processes, regarded as another way to help reduce global warming.
With the good understanding of passenger’s expectation on services, the Company offered new innovation for Nok Air passenger’s comfort, convenience and confidence as follows:
Value Alliance is the alliance of leading low-cost airlines in Asia Pacific region, comprising Nok Air, Nok Scoot, Scoot, Cebu Pacific (including Cebgo), and JEJUair, to create flight route network among the alliance and increase travel options, which connect the routes in Southeast Asia region, North Asia and Australia continent to provide more convenience to passengers.
Passengers may select flights and reserve air tickets directly on the website of each airline. They can reserve a seat of one airline to fly to other destinations of Value Alliance’s members. The system will select the best flight from all airlines and connect all flights in one transaction with the advanced technology developed by Air Black Box (ABB), top ticket reservation service provider. This service will offer more choices of destinations and provides more convenience to passengers of each airline.
Nok Air introduced a new alternative to increase more convenience in ticket reservation and manage booking via mobile application on Smart Phone on both iOS and Android operating system. This paperless system contributes of the global warming reduction. The passengers can download Nok Air application on Smart Phone to enjoy the following services anytime anywhere:
Nok Air recognizes the importance of business conduct with social responsibility. It also has good intention to take part in community and social development, especially children development. That is because the Company is aware that they will become the quality citizen in the future. In 2019, the Company arranged activities for tangible community and social development in 3 topics: Sharing Nok, Learning Nok, and Delighted Nok.
In 2019, the Company had opportunity to conduct activities under such projects as follows:
Nok Sharing is a project that provides support and assistance to those who lack opportunities or have social disadvantages in accessing various development areas to create a better quality of life. This includes extending the life of the underprivileged. The project throughout the year 2019 consisted of:
The Company recognized the importance of activities of various organizations providing help to human beings. Thus, the Company gave support on travelling as follows:
Every passenger contributes to the implementation of these projects from the first day of the organs, tissues and blood transport project of the Thai Red Cross Society until the present day when the social contributions of Nok Air have grown into many more projects. These projects were accomplished well because of the co-operations from all sectors, including government agencies, private agencies, passengers, and Nok Air employees. Nok Air would like to express appreciation to everyone here.
|NOK Gives Life Project|
“Nok Gives Life: 400 Hearts can save One Life” project was initiated with an intention of Nok Air employees to thank Thai society for their support. Having continued for 10 consecutive years, the project is aimed at raising funds for the children with Heart Disease Foundation under the patronage of H.R.H. Princess Galyani Vadhana Krom Luang Naradhiwas Rajanagarindra. Interested person could buy the “Nok Gives Life” key chain at 70 baht a piece where all sales proceeds went to the Foundation with no expense deduction. In 2015, Nok Air presented 3,000,000 baht to the Foundation to support their operations.
|View VDO 1 View VDO 2 View VDO 3|
|Ride for Life Project|
In 2016, “Nok Air Ride For Life” enhances the “Nok Gives Life” Project. This activity adds into a lifestyle of healthy trends. This activity aims to raise money for charity to support The Cardiac Children Foundation of Thailand. Everyone can join the activity, not only a biker who can register to be a representative of this donation by cycling but also a pledger who can ‘pledge’ a biker to ride for them. Let’s share this to your friends and family to be part of helping the cardiac children to have a better life.
|Ride for Life|
|Nok Rien Roo (Learning)|
Nok Air understands that learning and education are very important to young people and initiated the “NOK Library” project to build earth library in community and schools in remote areas. The library serves as a center for young people to learn and embrace reading habit to their own while spending free time in a good way
The construction of the earth library is cooperation between volunteers from Nok Air and community, which created strong bonding and close relationship among participants. The volunteers have to work together in finding natural materials available in the local areas to build the library together. Throughout this process, participants learn new things together and work together. Although this process requires a lot of efforts, it saves a lot of time and expenses on raw materials. The earth library therefore has very high emotional value for young people and their community as well as volunteers from Nok Air.
|Nok Mong Klai (Vision)|
The main objective of Nok Mong Klai is to encourage young people in remote areas to be aware of the importance of the nature and take action to protect the nature. To begin with, young people are given opportunity to experience the nature out of their community, which opens up their perception about the nature.
|Nok Mong Klai Season 1/2014 Nok Mong Klai Season 2/2015|