The concept of good corporate governance (GCG) imposes a system that emphasizes accountability, transparency, responsiveness, effectiveness, efficiency, equity, and inclusiveness and that is always in compliance with the law to fight against corruption. Kimia Farma Trading and Distribution (KFTD) understands this importance and employs GCG principles to improve checks and balances, minimizing the opportunities for corrupt behavior.
The 5 Good Corporate Governance Principles Implemented to Combat KFTD Corruption
KFTD prevents corruption or any abuse of public office for private gain by implementing the principles of good corporate governance.ย
Affirming Transparency
The first step is applying transparency. KFTD employs transparency in every aspect while still protecting the companyโs confidentiality. Transparency is essential when making a decision or presenting information that is accessible and intelligible for the stakeholders.
The information included includes the company’s financial situation, share ownership, strategy, vision, mission, and important events affecting its condition.
Encourage Accountability
Accountability plays an important role in good governance, as it organizes every individualโs function, structure, and system within the company. The realization of accountability is reflected on employeeโs duties and responsibilities, ensuring all are within their competency and applying internal control. This is where the company sets a benchmark for its employees, so no one gets to digress from their tasks.
Emphasizing Responsibility
The good governance in KFTD emphasizes the vital function of responsibility. That is to ensure everyone performs their duties in compliance with legislation, fulfilling their responsibility to the company, public, and environment for sustainable business.
Underlining Independence
KFTD ensures all employees have the right to make decisions that favor the company’s good professionally and objectively. It is essential to make such a decision without any pressure or intimidation from another party as long as it conforms to the applicable rules and laws.ย ย
Promoting Equality and Fairness
KFTD establishes good governance to avoid corruption and promote equality and fairness. This principle considers the interests of shareholders and stakeholders based on the laws in a fair, reasonable, and equitable manner. No special treatment has been given to its stakeholders.ย
KFTD integrity is shown through the implementation of good corporate governance and has set a firm set of rules to protect its employees and promote clean governance to combat corruption within the company.