While Conflict of Interest (CoI) does not always cause corruption, it is commonly acknowledged that corruption is inherent in conflict of interest. In pharmaceutical industries, some processes and loops possibly draw risks or corruption through conflict of interest. To avert corruption risk that potentially occurs in KFTD, as part of the biggest pharmaceutical company in Indonesia, KFTD defined thorough COI principles along with the GCG implementation.
The Core Principles in Guidelines Conflict of Interest of KFTD
Insan of Kimia Farma (board of commissioners, directors, and all employees who work for and on behalf of Kimia Farma Group and their families) should abide by the ruling explained in the conflict of interest policy. By carrying out the following principles, KFTD hopes that all employees will follow his conscience to prevent corruption and bribery from happening when facing conflict of interest.
1. Clash of Personal, Family, or Group Interests
Each Insan Kimia Farma Trading and Distribution that encounters a possibility of conflict of interest due to their position in Kimia Farma and their immediate family is strictly prohibited from continuing their duties.
2. Prioritize the Public Interest
This clause says that each Insan of KFTD should adhere to the Good Corporate Governance and Code of Conduct. They also should obey the statutory regulation without personal, family, or group gain and not exploit confidential information from insiders that opens up loopholes of personal interest and gain.
3. Openness in Handling and Supervising Conflict of Interest
This principle explains the importance of unveiling and declaring conflicts of interest for an effective solution. Accordingly, Insan KFTD also has to ensure the handling process concerning public complaints about the matter while maintaining consistency and openness regarding the process and their daily duties.
4. Encourage Responsibility and Exemplary Attitude
The exemplary attitude encompasses integrity and ethics when dissociating personal interests and company affairs. Likewise, Insan KFTD should professionally commit to the implementation of resolution for COI.
5. Nurturing Intolerance Against COI
The fifth principle suggests effective communication, assertive disclosure, and discussion of conflicts of interest. Moreover, a continuous comprehension of the regulation and code of conduct is also important.
6. Company’s Conflict of Interest
The last one explains situations considered to be in conflict of interest for the company. It includes gratification and moonlighting.
All of the aforementioned principles of conflict of interest highlight the importance of putting the company’s good corporate governance, including transparency and responsibility toward the public interest in the first place.
Meaning, that one should not compromise the company mission for any personal, group, or family interest when carrying out their duties as the Insan of KFTD. It also emphasizes what kind of act that is perceived as a conflict of interest and how to handle this kind of situation. Thus, they can avoid being involved or immediately take action to prevent it from taking place.