GOVERNANCE FRAMEWORK

Biji-biji Initiative Published on: August 2015

Content No. Title Page

1. Why do we have a Governance Framework? 4

2. What do we want to do? 5

3. Our Sustainability Indicators 6

4. How do we measure our economic impacts? 7

5. How do we measure our social impacts? 8

6. How do we measure our environmental impacts? 9

7. What is our governance structure? 10

8. Our transparency commitments to clients 11

Content

No. Title Page

9. Our transparency commitments to our team members 12

10. Our financial distribution model 13

11. How we use our funds for salaries and materials? 14

12. How we use our funds for re-investment and overheads? 15

13. How we encourage internal in-traprenuership? 16

14. How we ensure inclusiveness and equitability? 17

15. How we ensure collaboration? 18

16. Our Open Source Principles 19

17. Our Open Workshop 20

Why do we have a Governance Framework? • It sets out the key principles and models that govern our operations.

• A formal documentation of our day-to-day practices.

• These principles and models may change over time, to suit the size

and complexity of the organisation.

• All changes and amendments will be documented and

communicated to all members and partners.

What do we want to do?

• To provide a holistic approach in all engagements through utilizing

Biji-biji Initiative’s Sustainability Indicators;

• To design sustainable solutions aiming to create or enhance

positive economic, social and environmental impacts;

• To capture value of discarded waste materials through

incorporating them in products and services offered;

• To help raise awareness amongst the general public and to inspire

a society that is accountable for their waste.

Our Sustainability Indicators

Economic Social Environment

Local Procurement Raise Awareness Waste Upcycled

Fair wages Community Engagement Waste Reduced

Social Inclusion

Gender Equality Sustainable Procurement

Transparency Open Source

Development

Green Technology

How do we measure our economic impacts?

Economic

Local Procurement Percentage of materials sourced from local and international suppliers

Fair wages How many times more is the

wage earned by permanent staff compared to minimum wage

Social Inclusion Total amount of money

channeled to community-in-needs through employment

Transparency Adherence to the Biji-biji Initiative Financial Model

How do we measure our social impacts?

Social

Community Engagement How many individuals or

communities were engaged

Raise awareness How many new people were reached (no. of participants)

Gender Equality Ratio of male and female

members engaged by job scope and in decision making roles

Open Source Development How many new open source instructables were made and

shared

How do we measure our environmental impacts?

Environment

Waste upcycled Amount of waste, renewables, recyclables and second-hand

materials incorporated

Waste reduced New methods and technologies

explored to eliminate waste creation

Sustainable Procurement How was 1% sustainable

procurement budget used

Green Technology Aspects of green technology

incorporated (energy efficiency, etc.)

Our governance structure

Exco

Sales & Marketing Department

Creative Department

Production Department

Admin, Finance & HR Department

Education & Workshops Department

Communications & Branding

Department

CEO

Internal Audit Department

What are our transparency commitments to our clients?

Waste Materials

Our clients and customers will be informed of the total amount of waste materials used or incorporated in the product or service they have

engaged us for.

Supply Chain Our clients will be informed on the percentage of local versus

international procurements made. In delivering they product or service they have engaged us for.

What are our transparency commitments to our team?

To address the ever-growing income inequality, we have salary cap of 5 times between the highest and lowest earners.

This ratio may have to be reviewed in the future to reflect the need for

different skill levels and competencies as the organization grows.

Reviewed ratios will be made known to all Biji-biji Initiative members and the public. Salary information is based on the salary band in the

Salary Scale.

What does our financial distribution model looks like?

Breakdown Percentages

Salaries 30%

Materials 30-40%

Overheads 10%

Reinvestment 20-30%

Total 100%

All team members have access to information on project value, total budget and breakdown of each project as per our Open Book Finance policies and procedures.

How do we use our funds for salaries and materials?

Salaries

30% of project budget is for salaries, which will be added to the total salary &

allowances pool. Salaries and allowances are paid out to team members as per their

hiring contracts.

Every 6 months (in June and in December), any balance remaining in the salaries and allowances pool will be paid-

out to all permanent team members as bonus.

This is to increase the sense of ownership and accomplishment of everyone in the team. Permanent members of team are

those on EPF and SOCSO.

Materials

30-40% of a project budget is for material procurement.

1% of the materials procurement pool is for

purchasing new sustainable materials (other than waste materials and existing

green purchases) that are socially, environmentally and economically

responsible.

This is to encourage continuous improvement in our procurement

practices.

Any balance remaining in the materials procurement pool will be added to the

In-trepreneurship pool.

Overheads

10% of a project budget is set apart for overheads and added to

the larger overheads pool to cover expenses that cannot be

directly attributed to specific projects (electricity, water,

internet, etc.)

Reinvestment

20-30% of a project budget is set apart for investing into the Biji-biji

Initiative through new tools acquirement, property rental,

proposal development, bonuses, remunerations and to encourage

entrepreneurship initiatives.

How do we use our funds for overheads and reinvestment?

We promote entrepreneurship and encourage our team members to develop their ideas internally, within the Biji-biji Initiative. All members of team have access to the funding available through the In-trepreneurship pool for Research and Development. To increase ownership and sales, all team members are encouraged to bring in projects and will be rewarded with 10% commission. This includes contacting relevant parties, proposing a type of engagement and setting up a meeting. This only applies to new client engagement .

How do we encourage internal In-traprenuership?

We work in an inclusive and equitable manner.

We make conscious efforts to engage members of different groups

in different facets of our operations whenever feasible.

Biji-biji Initiative works in a non-discriminatory manner where conscious efforts are made to create, maintain and ensure a fair and

equitable environment within the Biji-biji Initiative.

How do we ensure inclusivity and equitability?

We believe collaboration is superior to competition. The best way to innovate is to collaborate. We seek out collaboration opportunities to

increase efficiency and effectiveness in reaching our shared goals.

At our Open Workshop, we welcome groups and individuals to participate in our projects and to design and

prototype new ideas.

When someone shares a great idea with us, We make sure they are included fairly in

the entire process.

How we ensure collaboration takes place?

We are a strong advocate of Open Source principles.

Our designs are shared online for non-

commercial use, which means the rights to study, change and distribute our designs are

open to anyone for non-commercial purpose.

This allows the designs to be constantly improved upon, and for us to further develop

our building techniques by making new prototypes.

By trying to spread good ideas instead of

protecting them, we can innovate efficiently and effectively.

Our Open Source Principles

Biji-biji Initiative Open Workshop

Our Open Workshop is based in a 9,000 sq. ft. space in Jalan Ipoh, Kuala Lumpur.

This workshop is equipped with tools and machinery, and serves as our prototype

development centre, production and storage facility.

Here, members of the public and clients alike are encouraged to take part in the design process, learn and develop the

solutions.

Our Open Workshop