September 15, 2009

CORPORATE SOCIAL RESPONSIBILITY & NATIONAL DEVELOPMENT

I refer to "Good life turns sour for apartment owners" in Malaysiakini.

I felt sad reading about the plight the people are in through no fault of their own.

Segi Objective (M) Sdn Bhd. and Vibrant Leisure Sdn Bhd. are both 100%-owned subsidiaries of MK Land Holdings Bhd.

Isn't it the responsibility of MK Land Holdings Bhd. to ensure that its subsidiaries fulfil all obligations to their customers?

In the event the subsidiaries cannot fulfil those obligations, doesn't the parent corporation, in this case MK Land Holdings Bhd., have to make full restitution to the customers, such as a full refund of all monies paid, with interest, so as to make it as though the customer never had any dealings with the subsidiaries?

Shouldn't the parent corporation also pay any legal fees involved and compensate the customers for the time they wasted?

My opinion is that a corporation cannot disclaim responsibility for the acts or promises or statements of its subsidiaries or employees.

I also think that MK Land Holdings Bhd. should sort out the mess caused by its subsidiaries if Mustapha Kamal (the MK behind MK Land) wishes to maintain his good name and the good reputation of MK Land for social responsibility.

My suggestions to avoid a repeat of problems with a developer:

The developer have to set up a Trust Fund to fulfil any future obligations OR require all developers pay into an insurance pool that will compensate buyers AND require that developers obtain funds from banks, not buyers, to build projects AND the banks carefully assess the developers before providing a loan. The insurance company will also have to be careful that only capable developers can be part of the pool.

Build quality should also be paramount. Contractors should employ specialists, a carpenter to to do carpentry, a roofer to do roofs, an electrician to do wiring, etc. rather than employing people who are a "jack of all trades" and do nothing well except mucking things up.

Government can help by licensing trained tradespeople, e.g. plumbers and electricians and ensuring they do only tasks they are licensed for. The handbills stuffed in letterboxes saying "We are specialized in" and then listing 10 or more things should become a thing of the past as Malaysia develops.

To provide trained tradespeople vocational colleges will be needed.

The Education Ministry can assist by ensuring there are sufficient places in the vocational colleges for the electricians, auto mechanics, etc.

See how the construction industry and Education Ministry are linked?

Everything is linked in modern societies.

To become a fully developed nation Malaysia has to develop all types of links within society, education, industry, government, social services, agriculture, to name a few.

written by Pakac Luteb

2 comments:

Uncle Lee said...

Hi, regret read of the untrained, 'specialists'....agree with you the authorities should trained and lisence these skills.
Here there are several colleges having trades skill course, you name it.
And everyone who touches a bulb or wire or pipe or whatever has to be a certified person.

Even car mechanics too....all their diplomas must be recognised by the authorities.

And there's a housing watchdog that checks and publishes regularly which developer not up to standards as well buyers report to....and God help them if their company's name published in the press, names mentioned.

Oh ya, if you don't keep your garden grass tidy, or clean up any mess, the authorities will do it, you get a hefty bill. Especially when after snowfall....
You are given 24 hours, failing which anyone slips outside your driveway, breaks a leg, you are looking at a lawsuit will make your mouth open like having a teeth out, or the authorities do it, you get a nice bill.

I guess the ministers involved should do more walk the talk than adding more hot air to global warming.
Best regards, Lee.

masterwordsmith said...

Hi Uncle Lee,

The system in Canada is more stringent than what we have here so there are less mishaps and cases of buildings collapsing!

Apart from that, most are aware of the concept of collective accountability and are more civic conscious and less likely to be self-centred.

The whole system needs to be revamped and mindsets have to be changed. Sad but true. At the same time, how many are willing to change and how many more actually care?

Thanks for stopping by. Take care and have a great week. Do keep in touch.

cheers,
mws