PT Kimia Farma Trading & Distribution (KFTD) as part of Kimia Farma Group strongly believes that poor corporate governance can lead to a lack of innovation, low employee morale, and acts of corruption. Therefore, KFTD adheres to good corporate governance (GCG).
Effective implementation of GCG can be realized through four key factors. To firmly prevent corruption in KFTD, here are the 4 factors that are applied.
Strong Ethical Leadership
Leaders with courage and integrity will positively impact their team and organization. Leaders who demonstrate integrity, accountability, and ethical behavior create a positive long chain, from employeesโ trust and loyalty to positive workplace culture and customer loyalty to attracting potential investment.
Strong Internal Controls and Policies
To increase KTFD integrity through robust internal controls and policies, a Code of Conduct, anti-corruption policies, and internal audits are needed. Policies to prevent corruption are anti-bribery and whistleblower protection policies. An internal auditing program is important since it evaluates any corruption risks and ensures legal compliance.
Transparency and Disclosure
In a business, transparency, and disclosure means disclosing company performance information and building accountability at all levels. Transparency and disclosure effectively reduce the chance of corruption. This factor includes financial transparency, decision-making transparency, and stakeholder engagement.
Effective Whistleblower Mechanisms
The Whistle-Blowing System (WBS) in KFTD uses effective mechanisms to encourage and protect employees or whistleblowers. The company is responsible for ensuring that whistleblowers remain anonymous. This system must also ensure that whistleblowers are protected from retaliation or discrimination.
Kimia Farma Trading & Distribution understands that these four factors create a business environment where ethical behavior is expected, and corruption is less likely to occur. With a strong GCG, the company fosters a business environment of transparency, accountability, and ethical behavior.