Every company needs good corporate governance to keep them running well. The role of management in the company should not be underestimated. It is the same case with PT Kimia Farma Trading & Distribution (KFTD). Without vigilant management, it is much more challenging to handle issues, especially in terms of bribery and corruption.

How Important is the Role of Management in Preventing Bribery and Corruption?

Good corporate governance is the system of laws and rules by which any company or business operates. This includes a set of processes, customs, policies, regulations, and institutions that affect the direction and management of the company or business.

As part of Kimia Farma Group, KFTD also imposes good corporate governance in the company, which helps to prevent bribery and corruption. The role of management is very important in this. With good corporate governance, KFTD clearly outlines rules, creates vigilant oversight, and eliminates opportunities for abuse.

How KFTD Management Prevents Bribery and Corruption Through Good Corporate Governance

KFTD management’s role in preventing bribery and corruption is to promote transparency, accountability, and ethical behavior. These three things have to be implemented correctly and consistently. All staff—including the board of directors—must abide by this as part of implementing good corporate governance.

KFTD prevents bribery and corruption through a SMAP system (Sistem Manajemen Anti Penyuapan or Anti Bribery Management System). SMAP has these two (2) principles:

The Policy Adequacy.

KFTD has another system called “The Whistle Blower System”. Every staff is encouraged to report if they witness any attempts at gratification.

The Commitment of the Management.

Management is committed to effective leadership. This includes open and transparent communication with all parties involved in the business. There must also be a guarantee that risk analysis will always be conducted in every collaboration between KFTD and other companies.

This is why management’s role in improving KFTD’s Good Corporate Governance and preventing bribery and corruption is important.