As a leading pharmaceutical and medical equipment trading and distribution company, PT Kimia Farma Trading & Distribution (KFTD) practices Good Corporate Governance (GCG) in its business operations. Implementing key GCG principles is critical to ensuring the company’s survival and integrity, especially when it comes to preventing corruption and bribery. In KFTD, GCG practices are reflected in the company’s Code of Corporate Governance (COCG).
KFTD Code of Corporate Governance
The COCG is a systematic guideline for shareholders, the Board of Commissioners, Directors, employees, and other stakeholders to conduct the company’s business affairs. Through these guidelines, KFTD ensures that the company is managed with the utmost integrity.
Moreover, COCG reflects the company’s will to uphold Good Corporate Governance (GCG) practices, including but not limited to the five key principles that became the basis of the code itself:
- Transparency
- Accountability
- Responsibility
- Independence
- Equality and Fairness
Along with the above principles, the COCG mentioned in great detail the corporate organs, their respective duties, responsibilities, rights, and authorities, and the qualifications needed to fill the positions within each corporate organ.
In terms of preventing suspicious activities that may lead to corruption or bribery, the COCG mentioned several measures, such as:
- Conflict of Interest: the code ruled that individuals with a high risk of conflict of interest—or may already be in one—must stop their activity in the company’s operations until appropriate action is taken according to the company’s code.
- Whistle-blowing system (WBS): This system, a key component of the COCG, allows KFTD to conduct a thorough investigation should suspicion of illegal activities arise following a report. It allows KFTD to detect and halt suspicious activities before they become disastrous to the company, thereby contributing significantly to our anti-corruption efforts.
The Code of Corporate Governance (COCG) in KFTD is a baseline for the company’s operation based on Good Corporate Governance practices. As a baseline, COCG helps create the KFTD corruption prevention effort framework.