CODE OF CONDUCT
PT Sekar Bumi Tbk has set Code Of Conduct. This code is an elaboration of the vision, mission, values, and practices as well as the culture of the company which applies to all organs of the company. The code of conduct has been approved by the Board of Directors to serve as a reference in the liaising, acting, and dealing with all stakeholders. Socialization and notifications are made and every organ of the company has signed a statement of compliance.
The main points are arranged in such behavior guidelines are:
- General Description
- Profile of Employees
- Application of corporate culture
- Loyalty to the company
- Conflict of interest
- Gratuities, bribery, and corporate entertainment
- Company environmental management
- Respect for Personal Diversity
- Asset Protection and Information
- Internal Monitoring
- Reporting Integrity
- Cost Awareness
- Political Activities
- Company Reputation
- Implementation of Good Corporate Governance
- Relations with Employees
- Relations with Shareholders
- Relations with Customers
- Relations with Suppliers
- Relations with Business Partners / Investors
- Relations with Creditors
- Relations with Government Officials
- Relations with the Community
- Relations with Mass Media
IMPLEMENTATION AND ENFORCEMENT
- Reporting on Violations
- Handling Violations
- Sanctions on Violations
EFFECTIVENESS ON RISK MANAGEMENT AND INTERNAL CONTROL OVER FINANCIAL REPORTING
Various business activities are performed making the company and its subsidiaries face a variety of risks such as financial risks, business risks include the impact of changes in commodity prices and foreign currency exchange rates and environmental risks. Risk management program of the Company intended to deal with unpredictability of financial markets and to minimize the undesirable effects on the Company’s overall financial performance.
Here are the risks that have been listed by the Company and the risk weight starts from the main risk of the Company:
Risk of Raw Materials Supply
In meeting the raw material needs and supply risk, in addition to the routine delivery from farmers/suppliers, the Company also conducts relatively more profitable trading system for the Company and farmers/suppliers through having contract in advance that is tailored with customers’ order, including providing input regarding market development.
Risk of Marketing Aspect and Market Share
In the marketing of food products, the market demand is never decreasing, instead it has been increasing; however, the company is facing market risk in relation to customer’s preference development and product quality. In addition to maintaining Japan and the US market, the Company also expands its market towards Europe and Asia. The company also targets retail consumer market. Approach towards buyer is done through international exhibitions, visits to strengthen relationship, adjusting to needs and country-specific requirements as well as obtaining international certifications.
Risk of Foreign Exchange
The Company purchased raw materials denominated in Rupiah and sell through exports in USD and therefore in managing the risk of exchange rate, the Management implement strict monitoring towards goods movement and export sales receipt, as to keep it in control between 7 – 10 days from goods ready for sale.
Management is aware that the effectiveness of the risk management system is absolutely necessary so that the impact of the risk does not significantly affect the performance of the company.
Effectiveness of internal control is an important element in corporate governance because it can help the management to improve company’s compliance over applicable rules and regulations; to guarantee the availability of the financial statements and management report that is true, complete, and timely; and to achieve the efficiency and effectiveness in the making of the company financial statements.
The internal control system include:
- Environment Control
- Risk Assessment
- Control Activities Information and
- Communication Monitoring