PTT Board of Directors gives value to trust, accountable fair operation and anti-corruption as the fundamentals for operating a business. Moreover, PTT is committed in driving the business according to good corporate governance, Ethical Standard and Code of Business Ethics, and PTT Group's Sustainability Management Framework. In order to continuously improve efficiency, grow as an organization and elevate the corporate governance system, hence directly creating confidence for stakeholders.
PTT has in place a grievance policy to receive, address and resolve grievances in a timely manner, ensuring fairness and transparency as well as confidentiality of the information provider' grievance provider. Employees who report a grievance can track its status visa the employee relations grievance system. The communication channels through which external parties can submit regarding violations of the Code of Business Ethics including the Customer Relations Center, PTT Call Center, Corporate Communications Function, the Office of the President and Corporate Secretary and the Investor Relations. Additionally, PTT has established "PTT Voice" as an extra channel for stakeholders to communicate in the event that stakeholders witness or encounter any corruption related events in the organization. Reported information are directed to the responsible unit for handling according to the established measures. PTT has such measures for listening to any issues of concerns and whistleblowing relating to corruption in order to formulate appropriate standards and practices. Nonetheless, PTT has implemented measures to protect any stakeholders who raise concerns or provides evidence relating to corruption.
Code of Conduct
The Corporate Governance, Ethical Standards and Code
of Business Ethics Handbook, or CG Handbook, is a set of guidelines defining the standards of good business ethics to which PTT's employees are required to adhere. The CG Handbook covers good corporate governance practices and provides clear explanations of shareholders' rights, responsibility to stakeholders, and transparent disclosure of information and responsibilities of the Board of Directors, including guidelines for the Business Code of Conduct and Ethics. It extends to cover legal compliance; international human rights principles; political contributions; interests and conflicts of interest; confidentiality and use of insider information; treatment of customers and consumers; treatment of creditors; procurement and treatment of suppliers; community, social and environmental responsibility; treatment of employees; treatment of creditors; internal controls and auditing; receiving and offering customary gifts, assets, or other benefits; safety, health and the environment; intellectual property and use of information technology; and grievances related to corporate governance. Currently, PTT revised the CG Handbook to include an additional requirement on insider trading, money-laundering, and gift giving in compliance with the No Gift Policy. All Board of Directors, executives and employees must sign an acknowledgment of the CG Handbook in order to demonstrate a commitment to embracing and applying best practices. In this way, the CG Handbook acts as a disciplinary guideline for all employees to strictly adhere to.
The Corporate Governance Committee assumes the responsibility
of promoting and screening business conduct related to corporate governance, in order for PTT to communicate the importance of operating according to good governance principles across the organization. The Committee established the Corporate Governance Working Group, headed by the executive vice president, to develop the annual action plan on governance and anti-corruption for approval by the Corporate Governance Committee and PTT Board of Directors, following which relevant functions will implement the action plans. They undertakes the responsibility of adhering to the policy considerations, and organizing different activities targeted at instilling a sense of responsibility on corporate governance to the Board of Directors, management, employees and other relevant individuals. Examples of activities include the CG E-Learning System, CG Camp, Thai Clean Hearts Club, CG Tips and CG Comics via E-mail, and CG Intranet within the PTT Intranet. These learning channels allow for greater reach in communication to employees in all operational areas, enabling them to learn about corporate governance principles and business ethics in a comprehensive manner through various scenarios. This not only builds greater awareness of business ethics in operations, but also provides employees with opportunities to apply the knowledge they learned in real-life, as appropriate to their work. Employees are assessed annually on their level of CG understanding, and the Code of Business Ethics is also included as a required employee competency for career advancement in annual performance assessments.
PTT and PTT Group has made implementation of the Anti-Corruption Policy clear. This also includes the No Gift Policy. System, operating mechanisms and measures to manage employees has been developed to create an environment that does not tolerate any form of corruption and operates ethically and fairly. PTT aims to fabricate awareness for all Board members, executives and employees continuously. Hence, PTT's Anti- Corruption Policy requires responsibility to be clearly designated in order to implement anti-corruption measures as follows:
- Audit Committee :
responsible for internal control, financial report preparation and other processes related to anti-corruption measures, as well as implementation of the anti-corruption measure, and internal control and audit, to ensure that the measures are adequate and effective. The Audit Committee reports results of audit reports on antic-corruption measures regularly to the PTT Board of Directors, and helps to advise the Board of Directors and management.
- Corporate Governance Committee :
responsible for establishing and reviewing anti-corruption policy, recommending guidelines for monitoring and evaluation performance on anti-corruption practices
- Enterprise Risk Management Committee :
is responsible for the governance and support of anti-corruption risk management by assessing corruption risks and reviewing anti-corruption measures as appropriate.
- Directors :
are responsible in assessing risks of corruption and bribery within operation; to deploy process that supports and facilitates Anti-Corruption Policy, and communicate to all employees and related individuals. They review the appropriateness of different measures to ensure that measures comply with changes within business, rules, and regulations. They will also monitor, report or file grievance when they chance upon acts that implies corruptions.
In addition, PTT is part of the Private Sector Collective Action Coalition against Corruption (CAC) for the second consecutive year. PTT became a member of CAC in 2014, signifying that PTT's transparent, accountable and commitment towards anti-corruption operations has been accepted by an external organization.
It is not PTT's policy to provide financial support to any political party. PTT is transparent in providing charitable donations and sponsorships, as stipulated in its anti-corruption measures covering the formulation and review of anti-corruption policies, internal audit reporting, relevant performance reviews, corruption risk assessments and appropriate reviews of anti-corruption measures. PTT actively communicates with stakeholder groups in order to prevent potential incidents of corruption in the organization and to build trust amongst external parties who can be confident in the organization's reputation for transparency.
PTT maintains transparency in every aspect of its operations. Regarding financial aspects, PTT reports its financial performance in the Annual Report and Annual Information Registration Statement (Form 56-1), which is required to be submitted to the Securities and Exchange Commission (SEC) on a yearly basis. In addition, to evaluate employee compensation, PTT defines the compensation criteria for employees, top management and the Board of Directors, which are published in the Annual Report. For internal control, PTT conducts Control Self-Assessment (CSA). In addition, performance is reported through the Sustainability Report and Annual Report, which are verified by an external organization. These practices reflect PTT's good corporate governance and transparency.
PTT requests that all employees disclose any conflict of interests through an annual conflict of interest report, and notify suspected cases to their supervisors and to the Corporate Governance Function according to principles of transparency and business ethics on conflicts of interest.
Nonetheless, PTT has incorporated technology to assist the assessment of transparency and conflict of interest. The developed system is known as the Continuous Control Monitoring and Auditing System (CCMS). This system will report supervisors in the event that a connection is identified between partners and employees according to the conditions inputted. Supervisors will then review, confirm and manage situations accordingly.
Progress Against Plan
|Plan||2018 Targets||2018 Operating Performance||2019 Targets|
|Development of the PTT and PTT Group Anti-Corruption Policy||PTT Group companies to publish a manual on good corporate governance and business ethics.||PTT Group companies published manual on good corporate governance and business ethics in alignment with PTT's standards.||
|Certification as a member of the Private Sector Collective Action Coalition Against Corruption (CAC)||Recertify as a member of the Private Sector Collective Action Coalition Against Corruption (CAC)||PTT recertified as a member of the Private Sector Collective Action Coalition Against Corruption for the second consecutive year||
Code of Conduct
Effective communication on good governance principles and business ethics results in increased employee understanding on CG and their ability to apply such principles into their work. Given this, PTT would be able to operate business ethically, under a strong governance structure, and reduce risks from violations of business ethics.
- Training about Business Code of Conduct and Ethic including "Good Governance Knowledge" Course for all employees during orientation, creating positive attitudes and educating about anti-corruption and ethical awareness course. CG E-learning system was developed as a database for employees in all regions to access and learn about good corporate governance and business ethics. The course uses stimulated scenarios to help employees learn while also assess their level of understanding.
- Integrity Forum provides opportunities for seniors from multiple functions to exchange perspectives and frameworks in contribution of noble force and transparency. Hence, creating awareness for PTT and PTT Group company's employees, translating into a strengthen organization that the public acknowledges.
- CG Camp grants the opportunity for representatives from different functions to learn about good corporate governance and anti-corruption in details. This enables them to apply these principles professionally, and to advocate them to colleagues. It is part of PTT's internal strengthening strategy, comprises Dhama talk on CG principles, workshops on the direction towards corporate honesty, plays by participants on corporate governance principles, and recreational activities embedded with knowledge in corporate governance.
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Employee CG Understanding
Employee Satisfaction on CG Communication
All PTT employees can assume the role of a whistleblower in reporting suspicious activities, in order to build transparency, good governance and sustainability of the company. In 2014, PTT announced the Anti-corruption Policy across PTT and PTT Group, requiring all employees and management to acknowledge and uphold as a foundation in their work, and which was also communicated to all stakeholder groups. The Policy underwent a certification process as part of PTT's membership application to the Private Sector Collective Action Coalition against Corruption (CAC), where the process included utilizing the Self-Evaluation Tool for Countering Bribery in order to assess the strength, completeness and effectiveness of the anti- corruption policy and measures. PTT was certified as a member of the CAC for the second time on 17 May 2018. Presently, PTT is committed to encouraging business partners to join and become certifies in order to eliminate corruption risks from the value chain.
In 2015, PTT was assessed on the Anti-corruption Progress Indicator by the Securities and Exchange Commission and Thaipat Institute, awarded Level 5: "Extended," which recognized PTT's commitment in adhering to the Anti-corruption Policy, deploying the Policy to PTT Group companies, and encouraging business partners, consultants, business representatives, and suppliers in the value chain to adhere to the policy and commit to not engaging in any forms of corruption.
In 2016, Transparency International has evaluated PTT's in regards to disclosure and transparency in comparison to other emerging market multinationals headquartered in 15 countries considering a range of information, such as anti-corruption projects, data disclosure. PTT was ranked 22 out of 100 most transparent multinationals in emerging market.
In 2017, PTT was awarded complimentary award of NACC Integrity Awards, which is the target award of PTT's 3-year Aspiration under the Pride & Treasure of Thailand vision. PTT was awarded 2 awards of "State Enterprise with development towards excellence in driving operation's integrity and transparency," at Excellence Level, for: Integrity Culture and Work Integrity.
In 2018, PTT was awarded an award for Outstanding Ethics from the Thai Chamber of Commerce Best Awards. This was the first year that PTT was awarded this honorable award. As a core, PTT operates transparently and honestly, positively resulting in an organization development that is accepted and trusted by stakeholders. Nevertheless, PTT maintains its position for the Integrity & Transparency Assessment (ITA) in operations by Office of the National Anti-Corruption Commission (NACC) at a very high level for the 5th consecutive year.
PTT requests all employees to disclose a conflict of interest report annually and notify suspected conflicts of interest to their supervisors. If a conflict is found, supervisors would develop corrective action plans, for example, by defining temporary measures or rotating employees in order to reduce potential risks.
- Human Rights Management
- Sustainable Human Resource Management
- Security, Safety and Occupational Health
- Corporate Citizenship