Ethics and Integrity

Responsible, ethical business practices are important for reputation and competitiveness, and thus, a Code of Ethics is needed as a standard to direct the behavior of the Company’s personnel in order to be always in line with the Company’s values. The Company has a philosophy what-so-called as Catur Dharma Astra (Astra’s Four Duties) consisting of: The First Dharma: To be a beneficial asset to the nation and the country; the Second Dharma: To give best services to customers; the Third Dharma: To respect individuals and build teamwork; and the Fourth Dharma: To continually strive for excellence. The Company also has a code of Business Ethics as an ethical standard for the Company’s personnel in their interaction with business partners and a code of Work Ethics as an ethical standard for any individual working in the Company. The Codes of Ethics are written in Indonesian and understood by any employee. The Company regularly promotes to refresh about the awareness of these Codes. [G4-56]

The Company consistently communicates its corporate values to all employees. Codes of Business Ethics and Work Ethics have become codes of conduct which have been implemented properly by each employee of the Company and its subsidiaries. We recognize that leading by example is the best practice to turn the Company’s values into direct actions and, therefore, every leader in the Company and its subsidiaries should become role models for all of their subordinates. The Company’s values are reflected in the way of thinking, attitude, decisions, and actions of each leader that will undoubtedly influence and be followed by all employees. The Company’s values are also shown in cooperation among individuals and departments within the Company which are finally reflected in the Company’s productivity. The corporate culture with its egalitarian working atmosphere provides each employee the freedom to give any input regarding ethical conduct and compliance to the law, both formally and informally. [G4-57]

The Company pays attention to aspects of ethics and integrity. Any violation to ethical and integrity standards by any individual always receives attention and is processed following the hierarchy by using a standard procedure in order to upkeep a good value system implemented by the Company. Reporting of any violation may be formally, informally or anonymously to be then followed up as appropriate. Up to now, there is no complaint on the reporting mechanism related to problems of unethical and unlawful conduct. [G4-58]

During 2015, there was no allegations or legal actions against the Company with regard to unfair competition, anti-trust, and monopolistic practices. In the same period, there was no significant complaint from customers, market or authorities against the Company, neither was there fine or non-monetary sanction imposed on the Company. [G4-SO7,SO8]

The Company did not conduct any operational assessment to corruption-related risks and significant risks and did not communicate and conduct specific training on anti corruption policies and procedures, however, there was no corruption incidence during 2015. [G4-SO3,SO4,SO5]

The independence of the Republic of Indonesia is commemorated every year with the President Director as the commander of ceremony in order to uphold the patriotism values