In this quarter’s issue of IR Newsletter, we are honored by Miss Pakawadee Junrayapes, Executive Vice President, Sustainability Development and Corporate Compliance of Bangchak Corporation Plc., here to discuss the Bangchak’s policy on good corporate governance, and how the company promote its business growth simultaneously with Environmental, Social and Governance development.
Q: As Bangchak is a listed company with excellent Corporate Governance score and has consistently and has been consistently ranked as a listed company with outstanding operations in regards to the Environment, Society and Governance. For this past year, how has the company developed in terms of good corporate governance?
A: Bangchak has consistently been reevaluating and developing good corporate governance, as well as extending this to stakeholders. Starting from us, we began revamping our corporate governance policy in accordance to international standards. Especially, in regards to Anti-Corruption from Bangchak’s declaration of its intentions and becoming an accredited member of the Thailand’s Private Sector Collective Action Coalition Against Corruption project (CAC) since 2013. Bangchak has gone a step further to supply the knowledge and give support to its subsidiaries and trade partners to ally themselves with the CAC project including filing for the Certification Process. As of 2019, 6 Bangchak trade partners out of the total of 10 certified SMEs, were certified as CAC-SMEs.
Furthermore, as to encourage more trade partners to join the CAC project, Bangchak grants privileges for trade partners that have CAC certifications as follows:
- Received an extra 1 - 2% for technical score.
- In a scenario with multiple trade partners having the same lowest price, the trade partner who is CAC certified will be selected.
As for the board of directors and executives, should they announce their intention to purchase company securities, they would also have to simultaneously notify the company’s internal audit department 1 day prior to the purchase. The purchases will be reported to the audit committee meeting every quarter.
Q: Due to the Bangchak refinery being located in the city and within proximity to the local community, what measures has the company made in preparation to manage waste, pollution, as well as policies to oversee and take responsibilities for any adverse effects detrimental to the environment and community?
A: First of all, we have to state that the production process at Bangchak employs the use of Clean Technology and also utilizes clean energy; leading to environmental conditions passing standards. As well as, environmental conditions are also inspected by third party sanctioned by the Department of Industrial Works. The company is certified by the ISO 14001 environmental management system, the ISO 45001 for occupational health and safety in the workplace, and the OHSAS 18001 that integrates Process Safety Management, leading to improved safety-related operations.
Other than safety measures, the company has assessed risks in order to review and further implement necessary measures, including report its progress to the Enterprise-wide Risk Management Committee on a monthly basis.
As for the quality of the company’s waste water, the company has complied to the standards mandated by the Ministry of Industry. Analysis of waste water that underwent treatment is carried out on a daily basis by a laboratory certified by the Department of Industrial Works. The results can be relayed continuously in real time to the Department of Industrial Works and communities situated around the refinery.
The company also follows the standards to waste disposal permitted by the Department of Industrial Works. As well as adhering to the 3Rs directive which consists of Reducing the volume of waste products, Reusing waste products, and Recycling; in order to mitigate environmental impact and consistently accomplish the goal for Zero Waste to Landfill.
Q: As Bangchak is a large organization, with more than 1,000 employees, how has the company promoted organizational ethics and transparency of employee operations?
A: The company has always emphasize Corporate Governance (CG), considered as the basis from the company’s establishment in 1984 with an objective to oversee national energy security and had a hand in the development of the livelihood of Thai society, this coincides with employee culture, “To be virtuous, knowledgeable, and contributive to others.”
As for the promotion of ethics within the organization and transparency of employee operations, during the initial orientation program, employees are instilled with employee culture and the 6 basics of corporate governance (ARTEVE) which consists of:
- Equitable Treatment
- Vision to Create Long Term Value
There are also communications to every employee for their response and evaluation on the company’s CG policy annually through the online network, yearly CG Day activities was hosted since 2005, the company’s No Gift Policy was emphasized. Moreover, disciplinary action was taken for instances of violation or acts of corruption.
Q: Aside from promoting ethics within the organization, what measures has Bangchak put in place to prevent and eradicate corruption, and furthermore, how are they being audited?
A: For corruption prevention, Bangchak employs a system of checks and balance that is transparent and can be scrutinized, determining a hierarchy of approval in accordance to company rule and the Table of Authority, an internal control system; spanning the internal audit carried out by the internal audit department, which is an independent department reporting directly to the audit committee, as well as providing channels to receive complaint filings from stakeholders to the company’s internal audit department.
As for corruption eradication, Bangchak enforces company regulation rigorously. Should any instances of violation or acts of corruption be discovered, a committee will be formed to investigate the facts and decide upon an adequate punishment in accordance to company regulation.
As for the internal investigation, the internal audit department has the duty to examine the operations of every department to ensure that proceedings are in accordance with protocol set forth. As well as, assessing the effectiveness and adequateness of the internal control process, also examining operations, specifically finance-related activities, and accepting complaints or leads both inside and outside the organization which will report the result directly to the audit committee every month to acknowledge and to decide on the most adequate way to act in accordance, and to consequently report to the board of directors.
Q: Finally, as for community engagement, what approach has the company taken to foster strength and reduce social inequality?
A: Bangchak has been reaching out to communities at local and national levels. As for the level in proximity to the refinery (within the radius of 1.5 kilometers) activities that are held covers 8 aspects which are safety, education, sports, quality of life, environment, relationship and preservation of cultural norms, economics, and public interest. Of which, there are programs that have been carried out consistently for example the scholarship for children in the Bangchak community program going on its 15th year, the Read and Write with Ease project going on its 5th year, to name a few. Also included is the promotion for the community to earn more through training in various vocations, these trainings are sponsored by the company.
On the national level the company had initiated the Green Impact project to promote students from primary level to university level around the country in terms of education, brainstorming ideas for the community, as well as supporting the production of goods or conducting businesses with innovation that will support the environment and society. Furthermore, Bangchak has opened opportunities to disabled individuals to take up suiting position in the company, also pertaining to the elderly group which has currently risen in numbers. The job creation for the disabled and the elderly gives these individual the opportunity to work in a manner coinciding with what they are capable with. This is one factor that allows the elderly and the disabled to live a fulfilling life. At the same time, this brings them income, lowers their dependency on others, leading to a better quality of life.
Miss Pakawadee Junrayapes
Executive Vice President, Sustainability Development and Corporate Compliance
Bangchak Corporation Plc.