The Stock Exchange of Thailand (SET) has put in place a “Corporate Governance Principles for Listed Companies, 2012”, which consists of principles and good guidelines for listed companies. This year, Bangchak maintained its compliance with corporate governance in five aspects.
The shareholders are entitled to Bangchak’s ownership by exercising their rights to appoint directors to perform on their behalf and the rights to make decisions on key changes. The Board recognizes and values such rights by promoting such exercise and refraining from violating or depriving their rights.
The Company recognizes that employees are the driving force, and encourages the training of employees to increase their competency. Moreover, the company ensured that employees were fairly treated and received suitable, fair compensation and welfare compatible with their performance assessment levels and the company’s own performance outcomes in comparison with market and industry peers. This included a provident fund, medical welfare, commuter buses, labor relations activities, and an employee’s association consisting of assorted clubs for their recreation after a day’s work.
Customers and Society
The Company is dedicated to improving the quality of products and services for maximum customers’ satisfaction. The policy aims to deliver quality goods which meets or exceeds the customer’s demands under fair conditions. Bangchak’s policy is also to deliver products of desired quality or of quality beyond customers’ expectations under fair, responsible treatment of customers, and aims to give adequate, accurate and timely information about the products and services. The Company does not exaggerate or mislead the customer about the quality, quantity or other terms and conditions of the products or services. Company employees protect the customer’s secrets and do not use them for personal gains.
Suppliers / Contractors
Bangchak’s code of conduct governs hiring and purchasing, its policy governs fair selection and treatment of business partners, and its regulations deal with the procurement and sales of petroleum and refined products—all these ensure that its business with partners may proceed properly and responsibly, as well as judicious coordination in both sides’ interests. In addition, Bangchak has issued a business contact manual and policy guidelines for its service station agents to ease business partners’ contact with Bangchak and enable its operators/agents to conduct business under good governance and a proper code of conduct, while strictly honoring various agreements or conditions. If it is impossible to observe any of these, one must notify business partners in advance to jointly deliberate solutions.
Bangchak treats lenders fairly, responsibly, and transparently and seeks to fulfill all its contractual and financial obligations especially guarantee condition, capital management and payment. It does not engage in dishonest practices and does not conceal information which may cause losses for the lender. If the Company cannot fulfill one or more of its obligations, it seeks to notify the lender so that a resolution can be agreed upon together.
The Company conducts business with ethics, transparency, and engages in fair competition with its competitors under the guidance of fair competition. It does not seek to find information about Competitors through dishonest or inappropriate means, for example, bribing a competitor’s employees. The Company does not engage in slander or discrediting its competitors.
The Company is determined to follow the principles of corporate governance and is focused on creating a business which has financial stability and sustainability to maximize the value of shares for the benefit of the shareholders.
The Community around the Refinery, Society, and the Environment
The Company considers health and safety and the environment an integral part of the business, and has a written guideline on health, safety and the environment for the Directors, Executives, and employees to uphold. This includes promotion of efficient resource consumption and employee training on occupational health, safety, environmental, and energy matters under the “Develop sustainable business, while safeguarding the environment and society” corporate culture. The Company produces “Krob Krua Bai Mai” (Leaf Family) newsletter and “Rob Rua Bangchak” (Bangchak Neighbors) magazine for distribution every other month to allow the community to know the goings-on of the Company as well as receiving interesting information, such as how to save energy, how to ensure safety in daily life, and health tips and how to protect the environment. This is another way for the Company to communicate with and take care of communities around its refinery.
Sanctity of intellectual properties
Bangchak declared its policy on intellectual property management to define clear guidelines for the prevention and sanctity of intellectual properties. Compliance with this policy is the direct responsibility of the executives, employees, affiliates, and contractors working on behalf of Bangchak.
Directors must perform with responsibility, care, integrity, and compliance with laws, objectives, regulations, and Board/shareholders’ resolutions. They must also contribute to corporate governance for Bangchak’s best interests, leading to long-term growth and supplementing long-term value for shareholders. Accountable to stakeholders, they are independent of the management.