Corporate Governance
Our Impact by the Numbers
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GRI and SASB Index Report 2021
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Code of Conduct
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Conflicts of Interest Policy and Guidelines
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Anti-Bribery and Anti-Corruption Policy and Guidelines
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Gifts and Benefits Policy and Guidelines
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Anti-Money Laundering Policy and Guidelines
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Whistleblowing Policy and Guidelines
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Personal Data Protection Policy and Guidelines
2030 Goals and Performance
of businesses implement a corporate governance impact scoring assessment
Governance Management Approach
Charoen Pokphand Group upholds the principles of corporate governance in conducting our business. We also treat all stakeholders equally. Throughout the past century, the Group has operated with transparency through the corporate governance principles which have been seamlessly merged into our business operations.
The Board of Directors governs the Group in accordance with the principles of corporate governance to ensure respect of stakeholder rights as well as control and manage risks to achieve maximum business efficiency. These endeavors contribute to adding value and creating sustainable growth for the country, the society and Charoen Pokphand Group.
Charoen Pokphand Group has defined a work process to tangibly drive corporate governance operations, such as collaborating with representatives from affiliated companies to ensure a common operational approach and compliance with Group policies and guidelines. The Group’s corporate governance mechanisms consist ofcorporate governance structure development,work process creation, communication and engagement, monitoring and reporting, and disclosure.
Risk Management Approach
Charoen Pokphand Group commits to enhancing risk management efficiency by adopting the Integrated Governance, Risk Management and Compliance (Integrated GRC) approach. Furthermore, the Group has also developed a corporate risk management system based on the international standards of the Committee of Sponsoring Organizations of the Treadway Commission (COSO) to ensure the Group’s improvement and resilience in managing risks in response to the needs of the changing business environment.
Establishing a Risk Management Culture
To enable Charoen Pokphand Group’s stable and sustainable growth amidst business uncertainties, the Group places importance in reinforcing a risk management culture across the organization by establishing and implementing risk management policies and guidelines throughout the Group, reviewing risk management structure to define roles and responsibilities more clearly, communicating and offering trainings related to risks, and sharing knowledge in risk management.
Related Activities and Trainings
Ethical and Compliance Risk Management
The risk of violating ethical and legal requirements is one of the most common risks which may produce significant impact on corporate image. Therefore, Charoen Pokphand Group has arranged training courses on ethical and compliance risk management, covering the topics of risk types, impacts and appropriate management measures.
Analysis of Emerging Risks
Charoen Pokphand Group has appointed the Corporate Governance, Risk and Audit Steering Committee to supervise overall risk management, analyze internal and external business environment as well as global economic, social, environmental, political and technological trends in order to assess key risk factors/trends and consider the formulation of appropriate mitigation measures for such key risks. In 2021, the analysis of emerging risk factors that may cause widespread impact on the Group and relevant industries within the next 3-5 years include, failure in climate management and Supply Chain Security.
Risk Type: Economic
Description:
Value chain security is important to business operations in all industries. Today’s geopolitical tensions have increased uncertainty around oil prices, logistic disruption, and supply of raw materials. This is the disruption to our supply chain. Infectious disease pandemics may exacerbate established pathways leading to labor exploitation. This may pose a reputation risk to the company. Moreover, the effect of labor shortage and great resignation trend may cause the delay in production or lower productivity. For downstream, impact of economic regression and rising of inflation rate may cause the unpredictable customer or end-customer demand.
Business Impact:
- Scarcity in specific products because of material insufficiency
- Reduced capacity to manufacture adequate products to meet consumer demands.
Response Action:
- Set the climate goals to become carbon neutral by 2030 and achieve net zero emissions by 2050 to reduce potential impacts on the society.
- Develop near-term, mid-term, and long-term disaster and risk management plans.
- Explore new sources of renewable energy and sustainable raw materials.
- Invest in technology and innovation to cope with raw material productivity and availability issues
Risk Type: Environment
Description:
At present, the impact of climate change is evident around the world in the forms of unprecedented temperature increase or decrease, droughts, forest fires, floods, natural resource shortage and loss of biodiversity due to severe weather. These are the consequences of failures to manage climate change in accordance with the Paris Agreement by governments, the private sector and the population. Furthermore, the results of the COP26 in 2021 concluded that climate change remains a top global threat and is highly likely to intensify and become more widespread in the medium to long run.
Business Impact:
- Financial impact caused by transition risks e.g. carbon tax, electricity costs etc. and physical risks for instance severity and frequency of extreme weather events that increase the raw material costs.
- Impact to revenue due to change in customers preferences for low carbon products and services.
- Impact to value chain due to the reduced yield of agriculture products as a result of biodiversity collapsed e.g. changes in the availability pollinator foods, water stress, soil erosion etc.
Response Actions:
- Set the climate goals to become carbon neutral by 2030 and achieve net zero emissions by 2050 to reduce potential impacts on the society.
- Develop near-term, mid-term, and long-term disaster and risk management plans.
- Explore new sources of renewable energy and sustainable raw materials.
- Invest in technology and innovation to cope with raw material productivity and availability issues
Compliance
Charoen Pokphand Group has defined operational and behavioral guidelines in the Charoen Pokphand Group Code of Conduct which has been submitted to directors, executives and employees at all levels for their acknowledgement, understanding and adherence as guidelines in performing their duties.
Code of Conduct
Related Activities and Trainings
Joining the Thailand’s Private Sector Collective Action Coalition Against Corruption (CAC)
Charoen Pokphand Group commits to preserving our intent to operate with transparency and accountability in line with international principles. The Group has defined policies and guidelines to support and encourage anti-corruption awareness in executives and personnel at all levels, such as avoiding conflicts of interest, handling gifts, or any other benefits. These policies and guidelines are disclosed to the public on the Group’s website. Furthermore, in 2021, the Group has declared our intent to become a member of the Thailand’s Private Sector Collective Action Coalition Against Corruption (CAC). Currently, the Group is in the preparation process to acquire certification in 2022.
Complaints and Whistleblowing
Charoen Pokphand Group has established the Whistleblowing Policy and Guidelines to accept opinions, recommendations and complaints from both internal and external parties who have been affected or are likely to be affected by the Group’s business operations. Furthermore, in order to demonstrate clear, honest and transparent practices, the Group has determined guidelines that are consistent with international standards regarding roles and responsibilities of concerned parties, whistleblower/complainant protection measures, investigation process and penalties.
Number of Complaints relating to Employee Misconduct and Management Measures in 2021
| 2021 | Management Measure | |||||||
|---|---|---|---|---|---|---|---|---|
| No. of Cases | Under Investigation | Substantiated Case | Non-substantiated Case | Verbal Warning | Written Warning | Suspension | Dismissal | |
| Complaints Related to Ethics and Morality (case) | ||||||||
| Fraud | 2 | - | - | 2 | - | - | - | - |
| Conflict of interest | 5 | - | 3 | 2 | - | 2 | - | 1 |
| Non-compliance | 7 | - | 4 | 3 | 3 | 1 | - | - |
| Discrimination | 8 | - | 2 | 6 | 1 | 1 | - | - |
| Harassment | 9 | - | 3 | 6 | 3 | - | - | - |
| Corruption | 3 | - | 1 | 2 | - | - | - | 1 |
| Complaints Related to Anti-Competitive Behaviors (case) | ||||||||
| Anti-competitive Behavior | - | - | - | - | - | - | - | - |
| Total (case) | 34 | 0 | 13 | 21 | 7 | 4 | 0 | 2 |
Note * Violations of environmental regulations or laws with fines not exceeding USD 10,000
Details on violation of the Code of Conduct and ethics
