ABCR2103

BACHELOR OF MANAGEMENT WITH HONOURS

MAY 2019

ABCR2103

PRINCIPLES OF CORPORATE COMMUNICATION

MATRICULATION NO: xxxxxxxxxxxxxxx

IDENTITY CARD NO: xxxxxxxxxxxx

TELEPHONE NO: x

EMAIL: x

LEARNING CENTRE: GREENHILL LEARNING CENTRE

1
 ABCR2103
Table of Contents
1.0 Introduction on government relations. 3
1.1 What is government relations? 3
1.1.1 Defining Government Relations 3
2.0 Analyse the government relations practices in the organisations. 4
2.1 Corporate and government relations. 4
2.1.1 Government Relation Practice in Bank Simpanan Nasional (BSN). 4-5
2.1.2 Government Relation Practice in Axiata Group Berhad. 6-7
3.0 Lobbying 7
3.1 What is Lobbying and Who is a Lobbyist? 7-8
3.2 Lobbying Programme Conducted by Bank Simpanan Nasional 8
3.3 Lobbying Programme Conducted by Axiata Group Berhad. 9
4.0 Which organization practiced good government relation? 9
5.0 Benefits of the lobbying program conducted by Axiata Group Berhad 10
6.0 Conclusion 10
REFERENCES 10

2
 ABCR2103
1.0 Introduction on government relations.

For any organizations, government relations are crucial because the work of government
relation is considered as one of the most crucial functions of corporate communication for
any established organization. It involves the process of getting together with different
government bodies to build strong relationships to manage laws, rules and regulation matters
in well organised and consistent way.

1.1 What is government relations?

Stakeholders plays a very important role in an organisation. Government is one of the most
important stakeholders or bodies that have influence on the success of the organisation.
Undeniably, government is a crucial part of the external environment for any organisation.
Therefore, it is vital for the organisation to form a special task to manage this relationship.
Government relation agents or also known as public affairs (Van Riel and Fombrun, 2007) or
corporate affairs (Dolphin, 1999) executives have a special task to improve the organization’s
relationship with government representatives.

1.1.1 Defining Government Relations

Government relations can be defined as “the application of one or more communications
techniques by individuals or institutions to affect the decision of government, at the local,
state, national or international levels or some combinations of them” (Mack, 1997, p. 4).
According to Dominguez (1982), It is also “A function through which the company can
actively participate in all phases of government with optimum resource utilisation and
maximum effectiveness” (p. 48).

Apart from that, in a broader viewpoint, Grunig and Hunt (1984, p. 284) defined public
affairs (broad component of government relations) as “activities of an organisation to manage
its response to political issues and its relationships with governments”. Therefore,
government relations are by and large a process of managing organisation – government
bodies in the context of corporate communications where public affairs have a designated
function in public relations. This simply means that a government relation is a subset of
public affairs (Cutlip et al., 2000).

3
 ABCR2103
2.0 Analyse the government relations practices in the organisations.

Each organisation has its own vision and mission. The goals and objectives of the company
can be specified by their mission. The mission also sets out the rules and the business
principles of the organization, whereby it assists in the organization’s strategic planning.

Organisational mission is a vital tool to lead the organisation in multiple things like methods
of conducting the business, decision-making processes, as well as methods of dealing with
employees. An organisation’s mission is usually made public to everyone. Generally, the
mission of the organisation proclaims its functions, its benefits, its main products and
services and its main role to the public. Therefore, it is important for the organization to
verify that its mission is in order with government rules and regulation so that public interest
can be preserved. A good organization integrates a high degree of relationship with
government to show its support. To maintain a magnificent relationship, the organisation also
exhibits its agreement with the government in its mission and vision statement.

2.1 Corporate and government relations.

Here we are about to analyse the government relation practices being practiced by two
organizations namely Bank Simpanan Nasional (BSN) and Axiata Group Berhad.

2.1.1 Government Relation Practice in Bank Simpanan Nasional (BSN).

Bank Simpanan Nasional is a bank prescribed under Development Financial Institutions
(DFI)Act 2002. The DFIs in Malaysia are specialised financial institutions entrenched by the
Government with distinct mandate to expand and promote key sectors that are considered of
strategic importance to the overall socio-economic development objectives of the country.
These strategic sectors include agriculture, small and medium enterprises (SMEs),
infrastructure, maritime, export-oriented sector as well as capital-intensive and high-
technology industries.

Bank Simpanan Malaysia (BSN) is was incorporated on 1st December 1974 under the
Tengku Razaleigh Hamzah the Minister of Finance at that time. BSN has taken over all the
duties and responsibilities of the Post Office Savings Berhad with its corporation. BSN’s
Mission Vision are as follows: -

4
 ABCR2103

BSN’s Code of Ethics clearly shows that it has always and will support Malaysian Anti-
Corruption Commission (MACC) in the action of against bribery.

BSN never failed to continuously enhance its services as well as developing its range of
products to benefit its customers. Their products stand from Mortgage loans, Personal
Financing, Premium Saving Certificates (SSP), Giro Savings Account, Islamic Banking
Scheme, BSN Matrix and Matri-I Debits Cards as well as Credit Card, Master Card and
VISA.

BSN offers a complete range of Islamic Banking solutions to serve Malaysians from all walks
of life. The bank also has subsidiaries and associates which are involved in takaful, insurance
and asset management as follows: -

 Permodalan BSN Berhad (unit trust fund management)

5
 ABCR2103
 Prudential BSN Takaful Berhad (takaful)

 Gibraltar BSN Life Berhad (life insurance)

Since BSN is practicing Islamic Banking Scheme and Takaful, they obeyed the Central Bank
of Malaysia Act 1958 which was amended by Bank Negara Malaysia by having a Shariah
Committee. The committee has 6 members which is chaired by Dr. Ahmad Zaki Salleh who
is currently working as a lecturer at Islamic Science University Malaysia (USIM).

2.1.2 Government Relation Practice in Axiata Group Berhad.

Axiata Group Berhad is a Malaysian telecommunications conglomerate with boundless
operations in Asia. It is known as one of the largest wireless carriers in the Malaysia. Axiata’s
main business is in investment holding and the provision of telecommunication and
consultancy services on an international scale. Their primary focus being emerging markets
in ASEAN and South Asia.

Axiata Group Berhad (formerly known as TM International Bhd (TMI), was incorporated on
12 June 1992, and was the mobile and international operations arm of Telekom Malaysia
Berhad (TM). Following the de-merger of TMI from TM, the company was listed on the
Main Board of Bursa Malaysia Securities Berhad in 2008. On 2 April 2009, TMI underwent a
rebranding exercise, launching its new name, Axiata, and a new logo together with their new
tagline, Advancing Asia, was also instigated, reflecting the direction of the company in
focusing their expansion within Asia. Axiata has controlling interests in mobile operators in
Malaysia, Nepal, Indonesia, Sri Lanka, Bangladesh and Cambodia. with significant strategic
stakes in India and Singapore. The Group also has stakes in non-mobile telecommunication
operations in Thailand and Pakistan. Axiata Group Berhad’s subsidiaries stands from Celcom,
Ncell, XL Axiata, Dialog Axiata, Robi and Vodafone Idea Limited.

Similar to BSN, Axiata is also against bribery to support Malaysian Anti-corruption

Commission as they also clearly stated in their code of conduct about Transparency of gifts.
They have updated its guidance on the gifts and entertainment policy and guidelines for
corporate centre employees in 2008. The guidance provided with further clarity on how to
handle matters related to receiving and offering of gifts and entertainment as stated in the
Axiata Code of Conduct.

Axiata highly support the Ministry of Human Resources whereby it obeys the labour law
strictly by not tolerate child and forced labour employment or in their supply chain. They do

6
 ABCR2103
respect the labour laws whereby they have recognized unions in three of their digital telcos in
2018. The unions represent 4.5% of digital telco employees. Axiata engage proactively with
their union representatives to maintain and enhance their labour management relationship. On
“MDEC, Axiata ink MOU to boost cybersecurity industry” (2018), 18th July 2018, Axiata
signed a Memorandum of Understanding (MoU) with Malaysia Digital Economy Corporation
to boost the nation’s cyber security industry, by strengthening critical skillsets and innovation.
Malaysia Digital Economy Corporation is an agency under the ministry of communication
and multimedia.

3.0 Lobbying

Above phrase means that lobbying is a pursuit of public affairs with a special design strategy
in response to a specific political issue.

3.1 What is Lobbying and Who is a Lobbyist?

According to Dolphin, (1999, p.p. 18), Lobbying or usually referred to as a “lobby” is the
process of trying to influence legislators on behalf of special interest groups or the intention
of influencing decisions made by legislators and officials in the government by individuals,
other legislators, constituents, or advocacy groups. Lobbying is a form of activity of
corporate public affairs and is often structured in the government relations unit of a public
affairs department (Johnson, 1992).

Lobbying involves two major groups where it involves the process of influencing:
(a) The Public; and
(b) Governmental Policy. (Mack, 1997)

Therefore, the concept of lobbying is related with government. Mack (1997) claimed that
traditional lobbying remains the core activity of the government. It is a practice concerned

7
 ABCR2103
with solving conflict between two parties. Lobbying has a role in serving as the check and
balance in the protection of the legislative process. Lobbying involves advocacy either by
individuals or groups, of a point of view – the expression of an interest that is affected,
actually or potentially, by the affairs of government Mack (1997) (p. 2).

Lobbying refers to the practice of different types of government relations such as:
(a) Campaign to mobilise constituents at the grassroots;
(b) Political fund-raising and contributions programme;
(c) A variety of communications technologies and techniques; and
(d) Alliances with trade associations, and with other groups with their own agenda.
(Mack, 1997, p. 4.)

3.2 Lobbying Programme Conducted by Bank Simpanan Nasional

On 28th of January 2019 Bank Simpanan Nasional (BSN) handed over RM650 thousand
contribution to the PPUMCare Fund, a patient benefit fund established by the University of
Medical Center (PPUM) to assist disabled patients. Mr. Mujibburrahman Abd Rashid, BSN
Business Chief of Officer was present to represent BSN handing over the contribution to YM
Prof. Dr. Tunku Kamarul Zaman bin Tunku Zainol Abidin, Director of the University Malaya
Medical Center. Also present at the event were Mr. Jay Khairil Jeremy Abdullah, BSN Chief
Financial Officer, management of the House of Commons and BSN. Speaking at the handing
over ceremony, Mr. Mujibburrahman Abd Rashid, BSN's Chief Business Officer said, "BSN
always supports programs that contribute to community social development and contribution
to the PPUMCare Fund is a corporate social responsibility undertaken through the provision
of zakat from the operations of the 'Islamic Banking Scheme' (SPI) BSN. "

The PPUMCare Fund is a fund formerly known as the Patient Welfare Fund. The fund was
established at the University Hospital with the approval of the Board of Directors on 20 June
1978. It is now known as PPUMCare and has helped many patients in the University Malaya
Medical Center especially those who are less fortunate. The PPUMCare Fund was established
using donations from public, donations from government agencies, corporate bodies and
individuals. By contributing to PPUMCare, BSN supports government indirectly to lessen the
poverty and lead a healthy nation.

8
 ABCR2103
3.3 Lobbying Programme Conducted by Axiata Group Berhad.
The sustainability program conducted by Celcom Axiata Berhad in Lake Chini has been
recognized by the 'Asia Responsible Enterprise Award', in the 'Green Leadership' category for
the company's efforts to empower rural communities and to ensure the preservation of nature.
The Asia Responsible Enterprise Awards (AREA) fully recognizes and supports organizations
across Asia, based on four basic pillars, Environment, Fair Practice, Community and Citizens,
which are critical aspects of its goal of supporting the Responsible Company. AREA 2019
winner has been announced in the 'International CSR Summit' held in Taipei, Taiwan, on May
24, 2019.

In October 2018, Celcom established a joint venture with Universiti Kebangsaan Malaysia
(UKM) in developing and implementing a sustainable framework for the environment of
Lake Chini and its communities, particularly in digital inclusiveness, data collection, and e-
entrepreneurship. Through the internet center developed by Celcom, the 'Sri Gumum Cyber
Cube', locals and indigenous communities have access to training and knowledge-sharing
sessions as well as platforms to participate in e-commerce, which is to market local products
produced through PribumiMall @ DesaMall, an online platform provided by Celcom and its
business partners, 11street. In meeting the need to address forest dumping issues affecting the
area, 1000 new trees were planted and labeled with QR codes, to enable digital information
recordings. It is part of Celcom's efforts to help Lake Chini maintain its status as the
UNESCO's Biosphere Reserve provided in 2009.

Local communities, researchers and visitors to the area now benefit from the widespread 4G
coverage provided by Celcom, which also helps enable UKM's Eco Hydrology and
Climatology Laboratory to conduct real-time data collection for water quality monitoring at
the Lake Monitoring Center Chini. By doing so, Axiata Group Berhad has proven that it
always supports government not only by contributing to the people, but also to our world.

4.0 Which organization practiced good government relation?

In to my opinion, Axiata Group Berhad practiced a good government relation. They are not
only contributing to the people but, they take into account about the environment and our
planet too. The organization also follows the rules and regulations set by the government.

9
 ABCR2103
5.0 Benefits of the lobbying program conducted by Axiata Group Berhad

Axiata Group Berhad was indirectly benefited from the lobbying program conducted by them
in sense of marketing their product to the rural area. The 'PribumiMall' portal developed by
Celcom Axiata in collaboration with 11Street will benefit them too. By doing so, they tend to
gain economic advantage and generate new revenue sources.

On the other side, government also benefited by this program as Axiata Group Berhad
indirectly helped the government in reaching their goals as according to Deputy
Communications and Multimedia Minister Eddie Syazlee Shith , Axiata Group Berhad’s act
was in line with the government's target to ensure more than 95 percent of the country's
population was receiving broadband services including inland. "The Internet Center is
important and signifies the current needs and the government wants the Orang Asli
community to stay together to enjoy the convenience besides competing in the digital
economy to market their products. "Through this technology exposure, they will be able to do
so (market the product) more efficiently and easily including abroad which can generate local
economy," he said (“Kerajaan Sedia Bangunlebih banyak pusat internet di kawasan orang
asli”,(2018).

At the same time, the orang asli also will be benefited by this program as they can enjoy the
internet and can market their product online and gain some income for themselves and
indirectly contribute to the nation as well. The planting program of 1,000 forest and fruit trees
at the research center and the Orang Asli Lake of Chini also can replicate the core zone of the
Lake Chini Biosphere Reserve.

6.0 Conclusion

To conclude, government relations are vital for any organizations because the work of
government relation is considered as one of the most important functions of corporate
communication for any established organization. To maintain the good relations with
government, the organization has to support the government’s decision, take part in their
campaigns and obey their rules and regulations. To do so, the organization can opt for
lobbying as a tool. Because, lobbying is not only supporting the government, but also
benefiting the organization and indirectly benefit the nation and the planet as well.

10
 ABCR2103
(2708 Words)

REFERENCES

Wikipedia contributors. (2019, July 18). Bank Simpanan Nasional. In Wikipedia, The Free
Encyclopedia. Retrieved 14:42, July 20, 2019, from https://en.wikipedia.org/w/index.php?
title=Bank_Simpanan_Nasional&oldid=906851918

Wikipedia contributors. (2019, May 31). Axiata Group. In Wikipedia, The Free Encyclopedia.
Retrieved 14:42, July 20, 2019, from https://en.wikipedia.org/w/index.php?
title=Axiata_Group&oldid=899600560

MDEC, Axiata ink MOU to boost cybersecurity industry (2018, July 19), The Star Online.
Retrieved 14:03, July 20, 2019, from https://www.thestar.com.my/business/business-
news/2018/07/19/mdec-axiata-ink-mou-to-boost-cybersecurity-industry/

Kerajaan sedia bangun lebih banyak pusat internet di Kawasan orang asli (2018, October
20), Bernama.com. Retrieved 15:03, July 20, 2019, from
http://www.bernama.com/bm/news.php?id=1656080

11