Path to Sustainable Management: Corporate Governance is Engine That Drives SCGC’s Business

Given that a company has grown steadily over the past four decades, management effectiveness remains the most crucial component in building a strong business and coping with the unpredictability that always surfaces. In particular, business operations based on corporate governance principles are employed as guidelines to help establish a solid foundation for the company.

4 Decades of SCGC Sustainability

“Adherence to Fairness, Dedication to Excellence, Belief in the Value of the Individual, and Concern for Social Responsibility” are the four core business values of the SCG Group to which SCG Chemicals Public Company Limited, or SCGC, has adhered to while conducting business over the past four decades. SCGC has been committed to fostering sustainable growth in ASEAN and providing value to all stakeholders, including customers, partners, employees, and communities, through good governance practices and safety standards. In addition to putting environmental stewardship and resource efficiency into practice, it is prepared to provide high-quality products and services that improve the quality of life for people.

SCGC has established the operational strategy of the business with a focus on corporate governance and in line with the Sustainable Development Goals, which prioritize health, safety, circular economy, energy, climate change, and water conservation throughout the value chain. At the same time, good corporate governance is in place to propel the company’s growth and contribute to the country’s progress.

Establish Code of Conduct and Ingrain Employees Engagement

SCGC strongly emphasizes fostering values and corporate culture consistent with business ethics. We strictly comply with each country’s laws and regulations, and the “SCG Chemicals Code of Conduct” has been established in writing under the principles of good corporate governance for directors, management team members, and employees at all levels to use as a manual for performing duties in the best interest of all stakeholders. All SCGC employees are required to acquire and comprehend the guiding principles and practices and exercise discretion when carrying out their assigned duties in compliance with the established policies.

To achieve measurable compliance with the Code of Conduct, SCGC annually administers “Ethics e-Testing and e-Policy e-Testing” to assess employees’ ethical knowledge and comprehension at all levels. It is a requirement that all employees complete the test with 100 percent accuracy, and the results are analyzed and communicated to the staff for better understanding. GRC Helpline, a code of conduct counseling system for employees, is established, as well as the incorporation of the Code of Conduct into training courses for new employees and the creation of a “Supplier Code of Conduct” for business partners to use as a shared standard.

Anti-corruption efforts are a crucial part of putting good governance principles into practice. The SCGC Code of Conduct outlines corruption policy clearly and promotes it consistently to employees until it becomes ingrained in the corporate culture. A Control Self-Assessment program has been established to assess internal control systems and potential risks of corruption. This program is used to analyze the indications and assess the risk of corruption. If a risk emerges, risk mitigation and control procedures will be devised for employees to apply as anti-corruption practices. If an offense occurs, there are dedicated channels for receiving information for whistleblowers and a policy to safeguard and fairly treat whistleblowers. It allows stakeholders to report irregularities in their operations where procedures for transparent investigations of complaints is in place.

As a result of implementing the principles of business operations with stakeholders in accordance with good governance principles, SCGC is able to build trust with all stakeholders and increase its operating performance as a result of transparent business practices. This helps mitigate potential business risks, bolster the organization’s adaptability in the face of uncertainty, and enhance its market competitiveness.

Published on: Feb 10, 2023

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