In PT Kimia Farma Trading & Distribution (KFTD), every member of the organization bears the responsibility for anti-corruption efforts. The company’s corporate governance code, aimed at upper management, underscores the individual importance of preventing corruption and related conduct, such as bribery.
This article discusses what the company’s board of directors is expected to do to maintain KFTD’s good corporate governance, as part of Kimia Farma Group, which includes the absence of corruption inside the organizational structure.
Understanding Directors’ Role in Corporate Governance
A director is an individual who is responsible for overseeing the company based on their specific capacity, e.g., finance, marketing, et cetera. At the Kimia Farma Trading & Distribution, directors can be elected for up to two terms, each lasting five years.
The board of directors has the authority to implement policies that are crucial in achieving the company’s objectives. These policies have a significant impact on the company’s relations with the commissioners, employees, government, etc., and ultimately influence the company’s operations.
The board of directors is supported by the board secretary and head of the internal control committee to perform its job. Directors must conduct board meetings regularly (monthly for the internal board of directors and once every four months with the commissioners) to make decisions regarding corporate governance.
Preventing Corruption
The board of directors is important in the company’s anti-corruption efforts. One of its tasks is to write the company’s yearly report, which includes the organization’s finances. This financial report should adhere to accounting standards and be audited by a public accountant.
Compiling a yearly report is important in identifying corruption practices within the organization. Failure to submit an objective financial report can cost the trust of the company’s stakeholders.
Directors at Kimia Farma Trading & Distribution are also responsible for the accounting practices within the organization, not only during reporting. This includes designing a supervision system to prevent false reporting that may lead to corruption.