What makes good governance? Two important elements are accountability and transparency. These two elements are also two principles that KFTD takes very seriously to prevent corruption.
The Elements of a Good Corporate Governance
Why are these two elements of good corporate governance?
- Accountability
Accountability is accepting one’s responsibility for honest and ethical conduct towards others. In this case, each party must be fully responsible for their roles and honest and ethical to others.
- Transparency
Transparency is the quality of allowing the truth to be seen or easily visible among all matter participants. In this case, all business parties must share the same knowledge regarding what is relevant to their roles.
When consistently applied, transparency becomes a powerful force that can help fight corruption, improve governance, and promote accountability. This explains why these two elements cannot be separated to make good governance.
How KFTD Applies the Elements of Good Corporate Governance
How does KFTD apply the elements of good governance in their company? Without further ado, here are the details:
- Accountability
Through the implementation of its anti-bribery and corruption policy, KFTD urges the full participation of all staff—including its employees—to accept their responsibilities in their roles and be honest and ethical in their business conduct towards others.
- Transparency
Through the socialization of LHKPN to prevent corruption and bribery in the company, KFTD urges all staff – including employees – to support the creation of a clean corporation. A clean corporation must be free from corruption, collusion, and nepotism.
With LHKPN, all staff must be transparent in reporting their personal wealth annually within the Kimia Farma Group. After all, KFTD is part of the state-owned enterprises (BUMN). Showing goodwill as a law-abiding company is critical to gaining public trust.
