Governance
& Economy

SCGC has implemented a long-established and practiced code of conduct known as the "SCGC Code of Conduct" in accordance with good corporate governance principles to ensure that employees at all levels perform in an appropriate, transparent, and accountable manner.

We utilize ethics tests as part of its proactive and preventive system to assess and develop an understanding of ethical practices among employees at all levels. Administered on a yearly basis, Ethics e-Testing and e-Policy e-Testing are aimed at enabling employees to correctly apply SCGC business philosophy, the code of conduct, and the anti-corruption policy and produce tangible outcomes. In 2020, the Ethics e-Testing and e-Policy e-Testing were conducted for the 7 and 5 consecutive year respectively. All SCGC employees must give correct responses to pass the tests. In addition, the responses are analyzed and then communicated to employees at all levels to foster correct understanding. GRC Helpline was developed as a communication channel to provide consultation to employees. SCGC Code of Conduct was included in employee induction training courses. The “SCGC Code of Conduct” was established for supplier to follow as a shared standard. Conducted a self-assessment annually on corruption risks for executives and operational level employees in the sales, procurement, coordination with government agencies, and community relations departments, as a tool for continual development and improvement.

SCGC has established corporate governance policy and practices to ensure that its business operations are fully compliant with relevant laws and regulations and that there are operational standards in place to help control and ensure sustainable compliance, focusing on areas relevant to the law as follows: A compliance management system (CMS) has been introduced to ensure that all business operations both in Thailand and overseas comply with relevant laws in that country. The Company has aimed to expand the system, currently utilized in local businesses, to businesses in Vietnam by 2022 and is now preparing to introduce the system to Long Son Petrochemicals (LSP).

The Company is also developing a CMS handbook to facilitate communication and serve as guidelines for compliance management in the future. The Company has taken initiatives to foster awareness and understanding among the units and assessed compliance with relevant existing and newly-introduced laws and/or amended laws. It has also set targets and performed assessment on compliance with key laws relevant to new projects and normal operations. Preparations have also been made to issue operational standards for relevant units based on these laws to achieve sustainable compliance with such laws.

We have developed a digital system solution for storing and updating a database of laws relevant to the Company, processing and reporting compliance performance, and managing all relevant permits to enhance the efficiency of compliance management. The program has been adopted by domestic businesses in 2021; the goal is to introduce it to businesses in Vietnam in 2023.

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).