Corporate Governance CG Voices : Issue 01: Apr - Jun 2020 CG Voices Executive’sExecutive’s InterviewInterview IntegrityIntegrity andand HonestyHonesty isis thethe foundationfoundation NetworkCG toto buildingbuilding corporatecorporate governancegovernance GRC Pilot Project Our collaboration to drive C.P. Corporate Governance Editor’sEditor’s CornerCorner Check out our new-look “CG Voices”, as we update Global real-life events exclusively for our employees NewsNewsGlobal Explore how others managed the COVID-19 Crisis COVID-19 testing the leadership of CEOs worldwide Editor’s Corner At the time of writing, we are still in the middle of the COVID-19 pandemic affecting Thailand and the rest of the world. While approaching our centennial anniversary, today’s issue is how can we pass this challenge together as we enter our next century. To celebrate this issue, we are honored to share the wisdom of our Chief Executive Officer, Mr. Suphachai Chearavanont, on what we can do to demonstrate ourselves as a “good corporate citizen” on our path to long-term sustainability. We always look to give back to our communities by conducting our business ethically, and engaging with our stakeholders, which we have compiled in this newsletter. We are happy to listen to your feedback, as well as hosting giveaways for you to participate from time to time. Hello, fellow C.P. employees, and welcome to Please don’t forget to our newly revamped “CG Voices” newsletter! wear your mask, While easier on the eyes, our newsletter always wash your hands, aims to be a friendly space for stakeholders to and maintain social distancing! voice their opinions about corporate governance, See you again in the next issue! including for our top executives to communicate with employees, and for C.P. Group employees to learn how to apply best practices based on Rongruja Saicheua real-life events from around the world. Editor All management and staff of C.P. Group must set a good example in order to establish a work standard in the workplace that is in line with our Group Code of Conduct. Everyone should act upon by putting it into practice, as part of our responsibility as a good corporate citizen. Mr. Suphachai Chearavanont Voice Suphachai Chearavanont, CEO upholds our core values of “Integrity and Honesty” as the foundation of corporate governance in leading our organization to sustainability. As the globally-accepted driving force for successful business is to be sustainable, Charoen Pokphand Group prioritizes the importance of sustainable business practices in line with the United Nations’ Sustainable Development Goals Framework, which is the Group’s Heart-Health-Home strategy and we place an emphasis on “Corporate Governance”, as the essential component in driving business groups to achieve sustainability in all economic, social and environmental dimensions. Mr. Suphachai Chearavanont With over 350,000 employees in 21 countries worldwide coming Chief Executive Officer from diverse cultural and language backgrounds, corporate governance is especially important to C.P. Group to include a corporate culture of accountability in our business conduct. This issue of “CG Voices” aims to help in communicating our Good corporate citizen with responsibility, ethics and responsibilities as a good corporate citizen, under our belief transparency that every single member within our organization has an important role in driving towards our sustainability goals. The Chief Executive Officer of C.P. Group says although running a successful business is a priority, we cannot neglect our responsibility as a good corporate citizen, by setting the Integrity and Honest; the Foundation in Building standard in good business practices while contributing to the Corporate Governance economy, society and the environment. We must only do business based on good ethics and in line with world-class Mr. Suphachai Chearavanont, the Chief Executive Officer of standards that is beyond the expectation of simply complying Charoen Pokphand Group Company Limited, revealed to with rules and regulation. CG Voices that the Group prioritizes driving business in accordance with corporate governance principles, as it is With regards to good corporate governance in C.P. Group, our crucial not only for the organization but for the nation as well. CEO highlighted that risks must be managed with accountability Our business code of conduct was established from the sixth and transparency in our operations in compliance with the corporate core value, “Integrity and Honesty,” which all executives Group Code of Conduct, to be applied and verified by all Group and employees have been following in a similar manner. companies in the same manner, as well as regularly communicated with stakeholders to establish their confidence and trust in us. “Executives and all employees must act as a good example, establishing a work standard according to our Group Business “Responsibility towards society and conducting business ethically Code of Conduct, and also to put this into practice. Being an should be the basis in all our present and future commitments, ethical company will result in having a successful business, starting from ourselves individually first before extending this which in time will contribute to promoting good business towards people around us.” practices that can benefit our nation and society,” said Mr. Chearavanont. “Responsibility towards our society must genuinely come from inside-out, starting by caring for our 350,000 employees in over 21 countries where we have presence as part of our family, as well as treating our over ten thousand business partners as our extended family.” Mr. Suphachai Chearavanont The Three-circle Principle The Three-circle Principle is our philosophical framework which consists of Social, Economic, and Environment circles that encompasses all our stakeholders. From this, we conduct business responsibly with “love & compassion”, “dream” and “security” as an inspiration to create value by achieving our goals within the three circles ethically on our mutual path to sustainability. Love alues V es / G The Social With “love and compassion” as the root in creating and e valu over tur nm sharing value with society, along with creating a culture in driving ul en C t ethical action in order to establish a sustainable business model. Social The Economic Involves around having a sense of security; businesses requires financial stability, which is equally important to supporting ethical business conduct. C.P. Group needs leaders to build sustainable L success in the long-run; therefore, these leaders must have a deep e a understanding of the value of security in daily life. d E n e t Economic Environment r r e S s p The Environment Elevating the quality of life for people, and h r e e n n i n io protecting the environment around us. The essence of this is c p eu at io u & rs ov t “dreaming” and having an innovative mindset to inspire success. r T hip Inn lu m it ale Evo ea y nts Dr The Three-circle Principle is our framework to honor our stakeholder responsibilities Leadership during Crisis During the current COVID-19 crisis, Charoen Pokphand Group has announced policies regularly to reassure all our 350,000 employees around the world that the Group will stand with them as we fight through this crisis together, by ensuring the safety and job security of all involved while also satisfying our obligations towards society and economy. Our CEO recognizes that business must be able to work through a crisis, and the most important resource in an organization is its “people”. We do this by keeping the morale of our employees up through a “zero layoff” policy, as job stability directly links to financial security. Furthermore, C.P. Group has made collaborations with society to help fight against the COVID-19 crisis, as we always believe that companies must help the nation during these critical times. As a result, we have carried out several initiatives, such as building a factory for surgical mask distribution free of charge to medical staff, hospitals and the general public; supplying quality food to people under COVID-19 quarantine; delivering medical supplies to 77 hospitals all over Thailand, and building True Virtual World platform to facilitate work and study from home at no expense during the COVID-19 crisis. “Today’s leaders must be agents of change with a sustainability mindset, as well as being outstanding role models and visionaries,” Mr. Chearavanont said. “Crises – The True Test of Leadership” One of the most defining qualities in a leader is integrity. Today’s leaders must also have accountability that serves the creation of shared value with all stakeholders that include employees, business partners, customers, societies, communities, and the environment as the basis of a company’s corporate governance and sustainable growth. Over the course of running a business, leaders are constantly encountering one crisis after another, and must be able to handle crises using their insights and vision, both short-term and long-term, thereby turning a crisis into an opportunity that benefits the company and society as a whole. Mary Barra, the CEO Leading General Motors Through Crisis General Motors or GM, the largest automobile producer in the United States, has halted their vehicle production as a result of the COVID-19 viral outbreak. Mary Barra, the CEO of GM has made the decision to convert factories from automobile production to produce 30,000 ventilators, which are in high demand in the U.S. as the country is entering its critical lockdown stage to control the pandemic, as well as surgical masks, face shields, and Personal Protection Equipment or PPE, prior to President Donald Trump enforcing the Defense Production Act to the rest of the industry. Mary demonstrated her leadership with accountability to the stakeholders and the society affected by a crisis with prompt decision-making to relieve the situation as quickly and effectively as possible.