SCGC places great emphasis on compliance with the principle of good corporate governance as well as anti-corruption efforts. The Board of Directors has approved the Anti-corruption Policy, which has been reviewed for suitability and included as part of SCGC Code of Conduct, which forms the behavioral foundation of all employees and has been integrated into the corporate culture. The Company also communicates the policy to employees as well as provides training to foster an understanding of the policy and enable them to extend relevant practices to subsidiaries. The Company also analyzes risk indicators and assesses risks of corruptions. This year, the Company initiated a program in support of the Anti-corruption Policy, in which it issued a control self-assessment form for the assessment of the internal control system and risks of corruption that included operations where such risks were present, such as sales, procurement, coordination with government agencies, and community relations. Employees were also required to take part in self-learning, which was in line with the guidelines of the Anti-corruption Policy and integrated into the Ethics e-Testing.
Furthermore, as part of the proactive and preventive system, SCGC has established methods for risk mitigation and control that employees can use as guidelines to prevent corruption. The Internal Audit Office is responsible for assessing policy compliance and reporting to the Management Team of Chemicals Business, the Audit Committee, and the Board of Directors for improvement. In addition, SCGC Supplier Code of Conduct has also been developed to communicate and foster an understanding of the Company’s corporate governance practices as well as establish standards for conducting business together.
We have also provided whistleblowing channels and instituted a whistleblower protection policy to give its personnel and stakeholders opportunities to submit information or tips related to violations or irregularities in the business operations of Chemicals Business. Guidelines for complaint investigation have also been established and publicly disclosed in the Company’s annual report (Form 56-1 One Report).