Corruption and bribery crimes often involve a conflict of interest. Since the detrimental impact strikes the reputation and public perception of the company, it is critical for companies that serve massive kinds of the public to take into account that matter seriously.ย
Aside from engaging in 6 principles of conflict of interest policy, PT Kimia Farma Trading & Distribution (KFTD) also manages the risk of corruption and bribery through a set of mitigation systems if Conflict of Interest (COI) happens.ย
Reporting the Situation of Conflict of Interest at KFTD
When COI happens and is identified, Insan of Kimia Farma Trading & Distribution should be willing to take certain mitigation approaches, as explained briefly below.ย
1. Direct supervisor
If any Insan KFTD were potentially involved in any conflict of interest, they should report it to their direct supervisor. The concerned Insan KFTD reports it in the form of a Written Statement of Potential Conflict of Interest.ย
2. Whistle Blowing System
A Whistle Blowing System of KFTD is another approach to reporting situations of conflict of interest. The reporters who may use this approach are any Insan of Kimia Farma Trading and Distribution, partners, customers, or the public who are uninvolved. Yet, they find a situation where Insan of KFTD violates the policy in the form of a conflict of interest.ย
3. Observation and Evaluation
This last step of navigating the conflict of interest that KFTD described in the guidelines refers to continuous observation and evaluation of the guidelines or policy itself. It aims to maintain the relevancy and effectiveness of the policy to the change. Hence, modification in the policy may take place when necessary.ย
The guidelines for conflict of interest of Kimia Farma Trading and Distribution also specify conditions that may lead to a conflict of interest, such as the following.ย
- Double role,
- gratification,
- insider information,ย
- activities after completion of a term of office,
- affiliate relationship,
- side job, and
- involved in goods and service procurement.
PT Kimia Farma Trading and Distribution (KFTD) realizes that policy and guidelines are not sufficient in preventing or mitigating the potential and risk of conflict of interest. In supporting the effective implementation of the regulation, it is pivotal that all of the Insan KFTD are aware of the consequences of conflict of interest.
The commitment of Insan KFTD and boards of management in effectively implementing the conflict of interest mitigation approach through reporting and other GCG efforts is a holistic approach to preventing further turmoil caused by COI, corruption, and bribery.