The principle of corporate governance and KPC ethical guidelines define our commitment towards ethics and morale values in all our operational activities.
We adopt transparent and good corporate governance, with high regard to complying with the laws and regulations. We are sure that implementation of good corporate governance and obedience to the law is the basic foundation of KPC sustainability.
CODE OF CONDUCT
Realizing the importance of Code of Conduct, KPC has formed a Code of Conduct Committee that is responsible in monitoring and applying the Code of Conduct. The KPC Code of Conduct has been socialized thoroughly to all employees, partners, suppliers, and other parties. Every supplier and contractor working with KPC has to undergo a selection process and is to abide by the Code of Conduct.
KPC’s Code of Conduct consists of:
• Employee-related ethics,
• Relations between the environment and society, customers, suppliers and competitors, as well as
• Ethical conduct in interacting with shareholders, and
• Respect and protection of human rights.
GOOD CORPORATE GOVERNANCE STRUCTURE
Shareholders’ General Meeting
KPC holds the Shareholders’ General Meeting annually to report the company performance to all shareholders. The Shareholders’ General Meeting also decides on the amount of compensation payable to the Board of Commissioners, Board of Directors, and all employees.
Besides that, in Shareholders’ General Meeting, the shareholders are to discuss and decide on new business opportunities, risks they may be facing and new strategic plan in a forum.
Board of Commissioners and Board of Directors
Board of Commissioners and Board of Directors are decided in Shareholders’ General Meeting. It is decided based on agreed qualifications to account for different points of view and skills.
The presence of one female member on the board of commissioners and one female member on the board of directors reflects the gender diversity of the board of directors and commissioners. Commitment to gender diversity at this level shows that in the decision-making process considering various points of view can grow and increase employee trust, provide innovation and new perspectives, improve the company’s social performance to compete better in a diverse global market.
The Board of Commissioners and Board of Directors are accountable to the Shareholders General Meeting. There is no member of the Board of Commissioners and Board of Directors with double position. KPC does not have independent commissioner. To help out with the Board of Commissioners in monitoring of company performance, KPC has several committees, namely executive committee, audit committee, and internal control and monitoring.
SPEAK UP SYSTEM
As a reporting mechanism, KPC has developed a Speak Up System purposed to help implementation of Code of Conduct. This system is managed by independent party which aims to ease employees or external parties to report violations on Code of Conduct in a structured way and with guaranteed secrecy.
As a form of our commitment in applying effective GCG, KPC has developed a corporate risk management system in 2008. This system is purposed to identify and manage risks through a good development and risk management system.
CONFLICT OF INTEREST
To prevent conflict of interest, KPC always ensures that there is no employee, management, director or commissioner, or their family members, directly or indirectly, who use their authority over decision making or their position to receive personal benefit.
Our commitment towards business and operational integrity means we prevent corruption and gratification, and we uphold the anti-corruption law. The following efforts are carried out to ensure the culture of integrity and anti-corruption in KPC including whistleblowing and fraud risk assessment.
SUPPORTING SUSTAINABLE DEVELOPMENT
Some programs we implement to support Sustainable Development Goals (SDGs), for instance: Utilizing ex mine lands for PESAT (peternakan sapi terpadu/Integrated Cattle Farm) for beef self-sufficiency; Community Infrastructure Improvement; Capacity Improvement of the Village Government and the Community ; Pergizi; HIV/AIDS, TBC and Malaria cure.