SCG has committed to Integrity, ethical business conduct and social responsibility as well as corporate governance to ensure responsibility, transparency, and accountability, with SCG Code of Conduct and SCG’s 4 Core Values. In addition, SCG has put in place a whistleblowing process in accordance with international practices and introduced corporate governance tools and best practices that meet international standards to create value for stakeholders sustainably.

SCG’s Governance and Nomination Committee and Audit Committee are responsible for formulating policy and reviewing corporate governance processes, while compliance working units have been put in place to ensure rigorous auditing and assessment at all levels. At the same time, SCG has fostered an organizational culture guided by transparency and commitment to compliance for all kinds of operations. The Company also keeps abreast of changes in governmental policies, laws, and regulations in countries where SCG conducts business to improve its operations and ensure their compliance in order to reduce risks of violation of and non-compliance with laws and regulations, which may affect stakeholders and SCG’s business. 

Target 

• The coverage of the Ethics e-Testing passed by employees 100 %
• Becoming an internationally-recognized model for corporate governance.
• Achieving full compliance in all operations.
• Achieving zero corruption.
• Promoting trade competition.

Strategy

1. Regularly foster knowledge and competency on corporate governance among the Board of Directors and top executives to enable them to serve as role models for SCG employees. 

2. Formulate policies, code of conduct, and guidelines for executives, employees, and suppliers, revise SCG’s corporate governance principles and SCG Code of Conduct to align with current regulations, international standards, and stakeholder expectations. 

3. Assess and audit SCG’s Anti-corruption efforts, using a preventive system consisting of ethics tests, risk management and internal control (operational units, support and compliance units, and auditing units) in accordance with the Three Lines Model, corruption case studies and a whistleblowing system that is accessible to stakeholders. 

4. Communicate and organize the Code of Conduct training for corporate governance divisions, employees, contractors, and suppliers on a regular basis to foster a culture of transparency. 

Key Highlights 

Promoting Good Governance with Integrated GRC 

Segregation of management is one of the causes of inefficient corporate governance and operational redundancy. As such, SCG has applied Integrated GRC (Governance, Risk, and Compliance) to management in order to enhance the efficiency and effectiveness of its governance, risk management, compliance, and internal control. To this end, SCG fosters an understanding of Integrated GRC among its employees and their ability to follow the practice correctly through various tools, such as: 

• The Managing Director GRC Guidebook provides guidance for both local and international managerial personnel regarding laws and regulations, internal control, accounting, financial management, and continuity management 
• The SCG GRC e-Rulebook gives advice on key basic concepts, processes, and decision making related to the GRC principle for employees at all levels. The content is regularly communicated via internal e-mail in the forms of e-Books, videos, and infographics. 
• GRC Helpline is a consultation system where users can consult SCG Code of Conduct experts on correct conduct. A video explaining how to use GRC Helpline has been created to help employees understand the service, which is readily accessible from everywhere. 

Revising and Expanding Guidelines to Cover a Broader Range of Risks and Stakeholders 

SCG has conducted risk assessment on a yearly basis at minimum to ensure the consistency of business activities with the good corporate governance principles at both national and international levels. Additionally, the revised guideline has been also delivered covering a varied group of stakeholders and being clearer in the practice.  

Key improvements made in 2021, which were communicated to SCG employees, are as follows: 

• SCG Code of Conduct was revised to be in line with governance practices and standards, so that subsidiaries and joint ventures could readily and appropriately apply it. 
• SCG Anti-corruption Policy was reviewed following the current risks and situation. 
• The Whistleblowing System was communicated to employees and external parties. It has also been improved its functionality to provide 24/7 support both Thai and English languages apart from the traditional complaint form such as verbal, email, or letter 

Business Ethics Training and Evaluation through Ethics e-Testing 

In 2021, SCG administered the training and Ethics e-Testing for the seventh consecutive year. The test comprised questions on ethics, SCG’s 4 Core Values, SCG Code of Conduct that covers discrimination and harassment in the workplace, and SCG Anti-corruption Policy. Employees at all levels would be assessed to ensure that they understood how to implement the policy. And then, in the same year, the questions on SCG Anti-corruption Policy were revised to be consistent with the notifications of the National Anti-Corruption Commission (NACC). 

Additionally, all employees completed the Ethics e-Testing, with a 100% pass rate. The answers were analyzed, and the key issues were identified and communicated to employees to foster a correct understanding. 

….  

Practices on SCG’s Corporate Governance

The Board of Directors compiled knowledge and practices in management passed down from generation to generation and proven to be in alignment with the corporate governance principles. They were codified into SCG’s corporate governance handbook, firstly published in 2003. Last updated in 2020, the booklet is now also published as an e-Book on the Company’s website.

SCG Compliance Policy 

On November 20, 2017, President & CEO of SCG, announced SCG Compliance Policy in writing in Message from the CEO, which was communicated to all employees across the organization, in order to elevate the Company’ s compliance. The policy requires SCG’s directors, executives, and employees to respect and comply with the law and affirms the Company’s intolerance of all illegal transactions. To lay a foundation, the First Line is tasked with establishing foolproof procedures for managing compliance risks, with the Second Line serving as support in putting this system into practice by promoting knowledge, understanding, and awareness among personnel, providing advice and establishing control measures consistently. In addition, the policy also sets out to foster compliance consciousness as part of SCG’ s organizational culture to prevent risks that may occur to SCG, its directors, executives, and employees, which will lead SCG towards stable, balanced, and sustainable growth.  

Policies in All Countries Where SCG Operates 

Since 2017, SCG formulated three major policies and guidelines related to legal compliance to raise awareness and establish guidelines for legal compliance in every country with SCG’s business in order to elevate the level and efficiency of compliance. 

1. Anti-trust policy 

2. Insider trading policy 

3. Disclosure policy 

Anti-trust 

Applying SCG Compliance Management System (CMS) to compliance with trade competition laws in order to ensure that the executives and employees understand and are capable of fully complying with them as well as to put in place an efficient monitoring system. 

SCG and its employees have never been involved in a lawsuit or accused of violating trade competition laws and have never been penalized or fined for non-compliance with trade competition laws. Furthermore, no internal complaints regarding violation of trade competition policies or guidelines have been filed.  

Accentuation of the Executive’s Roles 

Encouraging all directors to serve as role models for the executives and employees regarding corporate governance compliance and adherence to SCG Code of Conduct. Activities were organized to allow the Company’s directors and high-ranking executives to perform their roles to the fullest.  

The Ethics e-Testing and e-Policy e-Testing 

SCG utilizes an Ethics e-Testing and e-Policy e-Testing as part of a preventive measure to assess, examine, and create an understanding of ethics in employees. The training and testing on Ethics e-Testing and e-Policy e-Testing are conducted annually to instill knowledge and awareness in employees at all levels and ensure that they are able appropriately apply and put into practice SCG’s 4 Core Values, Code of Conduct, Bribery & Corruption, Anti-Corruption Policy, effective use of technology to protect business from cybersecurity threats, and the Personal Data Protection Act (PDPA).

The e-Policy training and testing focusing on key cybersecurity issues related to prevent IT system failures and major information security and cybersecurity incident. 

The year 2021 marked the seventh consecutive year of SCG Ethics e-Testing and the fifth for e-Policy e-Testing, both of which all SCG personnel are required take, followed by an analysis of responses and clarification for thorough and accurate understanding among employees at all levels. The tests are reviewed every year to ensure they are up to date with potential risks. This year’s test included the addition of data privacy management including an evaluation on the Personal Data Protection Act (PDPA) and SCG’s Integrated Governance, Risk Management, and Compliance (Integrated GRC). 

All employees are mandatory required to acknowledge SCG code of conduct and take an Ethics e-Testing which consists of training module and test module on a yearly basis to ensure their acknowledgment, awareness, understanding, and proper application of the Company’s policies. For the test module, employees should pass all criteria of all chapters, it is mandatory to get score 100% for all employees. Ethics & SCG e Policy e-Testing, which is part of the employee performance evaluation linking with Learning Management System (LMS) of Human Resource Management.  

All employees in relevant positions must pass the SCG e-Policy e-Testing (20 questions) and Ethics e-Testing as;  

• Operator, and Supervisor 1 & 2 for Basic level (20 questions) 
• Supervisor 3 & 4 for Apply level (10 questions) 
• All Management level up for Advance level (10 questions) 

Anti-Corruption Practices 

SCG attaches great importance to corporate governance, including anti-corruption. The Board of Directors has devised an anti-corruption policy which is reviewed as appropriate. The anti-corruption practice is part of the SCG Code of Conduct, which is a fundamental basis for SCG employees’ conduct and has become a corporate culture through communication and training to employees, including those in subsidiaries, to promote compliance. SCG regularly conducts risk indicators analysis and assessments of corruption risks and establishes a preventive system, risk mitigation and control as an anti-corruption guideline for SCG employees. Internal Audit Office acts to evaluate the policy compliance and report to the SCG top executives, the Audit Committee, and the Board of Directors. The evaluation reviewed to identify improvements and SCG provided the SCG Supplier Code of Conduct, which is used to communicate the compliance of SCG’s corporate governance practices and mutual standard business practices.

In addition, SCG has rendered a dedicated channel for whistleblowing of offense and established a policy on protection and fairness for whistleblowers, which will provide opportunities for employees and stakeholders to report or inform any violations or irregularities related to SCG’s business operations as well as established a guideline for compliant investigation and disclose to the public through the annual report (Form 56-1 One Report).  

With the implementation of the foregoing practices, SCG has been named a certified company by Thailand’s Private Sector Collective Action Coalition Against Corruption (CAC) in 2010. Such certification has been continuously renewed. In 2021, the CAC certification criteria integrated the framework of the United Kingdom’s Bribery Act which is consistent with the principles of ISO 37001 Anti-bribery Management Systems. 

Certified Companies of Thailand’s Private Sector Collective Action Coalition Against Corruption

Complaint Investigation 

In 2021, a total of 30 cases (total number of investigated cases 28 cases (including 8 pending cases from 2020) involving non-compliance with laws, the Company’s regulations, the Anti-corruption Policy, Corporate Governance Policies, SCG 4 Core Values, Employee Code of Conduct, were filed through SCG Whistleblowing System for external parties and employees, no case of corruption and human rights violations has been identified and non-cost of the damage as summarized below. 

Contributions to Organizations 

SCG has been working closely with both international and national trade associations or tax-exempt groups, and others to increase awareness on the trends and needs, and to participate in sharing its views and advice. SCG provides supports in term of monetary value and qualified personal from SCG. 

SCG remains politically neutral, and set policy which does not support or make contributions, financial or otherwise, to any political party, political group, or political candidate on a local, regional or national level or person with political influence or lobbying or interest representation or similar and other categories, either directly or indirectly. (such e.g. election campaign, spending related to ballot measures, voting activities, or referendums).

In addition, SCG establishes definition and prohibition of facilitation payments in Anti-corruption policy which means any action that may influence or motivate an unfair decision making and treatment.

Largest Contributions & Expenditures

In 2021, SCG still continuously driving sustainable business growth in accordance with ESG and principles of circular economy while maximizing resource efficiency, enhancing plastic waste management and seeking to accelerate a transition to a low-carbon society and foster climate resilience. Detail of our contributions can be found in the table below:

SCG has continued to be members in the associations and organizations which may propose recommendations on country development and industries in various aspects to the government for consideration. However, in practice; they do not have influence on political campaigns. The first fifth organizations contributed by SCG are Alliance to End Plastic Waste (AEPW), World Business Council for Sustainable Development (WBCSD), The Federation of Thai Industries, UN Global Compact (UNGC) / Global Compact Network Association of Thailand (GCNT), and The Thai Chamber of Commerce and Board of Trade of Thailand.

The objective is to support sustainable development work. In particular, issues that need to be accelerated in building a network of cooperation, such as climate change, circular economy, and health & safety in order to achieve tangible results. SCG does not provide support to influence any organization or represent a stakeholder in that organization’s operations.

Total Amount Paid (THB)

DOCUMENT DOWNLOAD

SCG Code of Conduct
Supplier code of conduct
SCG Anti-corruption Policy
SCG Anti-trust Policy
Whistleblowing Policy
SCG Whistleblower System
Disclosure Policy
SCG Guidelines on Appropriate Internal Control
SCG Contributions to Organization
Tax Reporting and Effective Tax Rate