Ethics Awareness Day 2023: Understanding Anti-Corruption in the Company

Aspects related to Ethics & Compliance are crucial factors in determining the success and sustainability of a company's business. The effective implementation of Ethics & Compliance Programs supports the company's risk management aspects, creating a safe, comfortable, and conducive work environment for all employees, ultimately positively impacting the company's performance and productivity.

Continuously, all factors within Ethics & Compliance contribute significantly to enhancing performance concerning the stability, credibility, and reputation of the company, attracting interest from investors and other business partners to invest and collaborate. On the other hand, a high level of compliance with laws and regulations will also reduce the potential litigation or legal claims faced by the company.

One crucial aspect of Ethics & Compliance that needs to be understood and upheld by all Human Resources and other stakeholders within the company is the anti-corruption stance within the company's environment. On Ethics Awareness Day 2023, the APP Group held a webinar themed "Understanding Anti-Corruption in Companies" on Thursday, November 23, 2023. This webinar was attended not only by APP employees but also by external stakeholders.

During this webinar, APP highlighted that the Business Code of Ethics is not just a guideline but a reflection of the company's values, principles, and commitment to conducting business with integrity. The importance of leadership in implementing the company's ethical values was emphasized. Leaders are expected to cascade the company's values throughout the organization, creating an environment where employees and other stakeholders feel comfortable expressing concerns. Management also reminded participants about the independent Reporting Channel of APP, known as the Whistleblower Channel, as an essential tool for employees and other stakeholders to report indications of ethical violations and applicable regulations.

What is the purpose of the event "Ethics Awareness Day 2023: Understanding Anti-Corruption in the Company"?

"Ethics Awareness Day: Understanding Anti-Corruption in Companies" is a webinar event organized to provide an understanding that a business should not only focus on the quality of goods but also be conducted sustainably, ethically, and with integrity. This webinar aims to open participants' minds to running a sustainable business that is free from bribery and corruption.

Every year, APP is audited internally and externally to ensure products are produced ethically and sustainably. Moreover, concerning the Environmental, Social, and Governance (ESG) Rating conducted by Sustain Analytics, the goal is to ensure how far APP has undertaken sustainable environmental, social, and governance aspects.

In this event, APP invited a Speaker, Giri Suprapdiono, a Policy Analyst Expert Staff of the Police Chief who has 16 years of experience in the Anti-Corruption Commission (KPK), nine of which were in various Director positions in the KPK from 2012 to 2021. As a Speaker, Mr. Giri Suprapdiono provided an understanding of the meaning of corruption and how corruption exists not only in the government sector but also in the private sector. Through his explanation, he emphasized the relationship between ESG Ratings and corruption within the Company, which negatively impacts the company itself.

What is the significance behind "Understanding Anti-Corruption in Companies"?

In line with APP's focus on sustainable values, ESG Rating becomes an essential aspect for the company. Through the speaker's explanation, Giri Suprapdiono stated that ESG becomes a crucial tool for businesses. He mentioned that 80% of global investors care deeply about companies that can manage ESG risks when making investments. Therefore, when companies face ESG issues, one of which is corruption, it will lead to the termination of cooperation between the company and investors. Hence, it is crucial for the company to uphold APP's culture of Honesty & Integrity.

The values of honesty and integrity are supported by a quote from Thomas J. Stanley conveyed by Mr. Giri Suprapdiono, "Being honest is number one."

How is the anti-bribery and corruption prevention system implemented by APP?

Through the Ethics Awareness Day webinar (EAD), three steps of the Anti-Bribery and Corruption Management applied by APP were explained:

A. Preventive:

1. Company Commitment (Policies and Procedures): APP establishes clear company commitments to prevent bribery and corruption, reflected in strictly applied policies and procedures, including:

• BCOC & SCOC: BCOC serves as the ethical code guideline for all employees, while SCOC is for business partners. Both BCOC and SCOC explicitly state that APP does not tolerate any form of bribery and corruption.
• Anti-Bribery & Corruption Policy: This policy establishes requirements and behavior standards related to bribery and corruption.
• Gift & Entertainment Policy: This policy guides employees on appropriate gift and entertainment exchanges and is the company's effort to manage bribery and corruption risks arising from these exchanges.

2. Training and Socialization: APP holds annual training and socialization programs to enhance employee understanding of anti-bribery and corruption practices.

3. Integrity Risk Assessment: APP conducts integrity risk assessments to identify and manage potential corruption risks in its operations.

B. Detection:

1. Gift & Entertainment Declaration System - eGift System: APP uses the eGift System (http://egift.app.co.id) as a means to declare gifts and entertainment electronically, ensuring transparency and accountability.

2. Whistleblower Channel (www.asiapulppaper.com/whistleblower): APP provides a reporting channel (Whistleblower Channel) accessible through www.asiapulppaper.com/whistleblower. This channel allows employees and other stakeholders to report potential violations anonymously, with confidentiality and non-retaliation guaranteed.

C. Remediation and Continuous Improvement:

1. APP has mechanisms for continuous remediation and improvement involving internal and external audits, ISO ABMS 37001:2016 certification, and internal investigations to handle reported bribery and corruption cases.

2. Open Feedback for All Stakeholders: APP is committed to providing open feedback to all stakeholders, ensuring involvement and transparency in anti-bribery and corruption efforts.

What are the expectations from holding Ethics Awareness Day this year?

The hope is that participants will gain a deep understanding of the importance of the Business Code of Ethics as a guide for the company's values, principles, and commitments. Through this webinar, it is expected that all employees will become more involved in applying ethical standards in their daily behavior and make integrity a compass in decision-making. By understanding the risks of non-compliance, it is hoped that every individual will actively contribute to preventing corruption, maintaining the company's reputation, and building sustainable relationships with all stakeholders.

Let's commit together to implementing this Ethics and Compliance program to build a sustainable business and provide added value to all stakeholders. Make a Change, Speak Up!