WIKA keeps a strong commitment to implement Good Corporate Governance as a foundation to achieve the triple bottom line by creating strong and health financial performance, excellent human resource development and contributing to develop green and sustainable environment. Therefore, WIKA endorses and motivates its elements to work together in order to build a systemic, systematic, and sustainable governance.
WIKA’s commitment to build systemic, planned and sustainable Good Corporate Governance (GCG) has brought WIKA becoming open company that creates continues competition shown by the growth of business synergy, diversivied business unit, stock performance, excellent human capital, and ability to support external stakeholders. One of recognitions to WIKA’s success in building GCG is WIKA has successfully become one of 30 listing companies in ASEAN Corporate Governance Scorecard that has been released by IICD.
The ASEAN Corporate Governance Scorecard is a benchmark tool for the company’s success in GCG’s implementation which is already settled by the ASEAN Capital Market’s authority in order to prepare ASEAN free market in 2015. Therefore, this achievement is very honorable since it can motivate WIKA to grow further and to compete within ASEAN Economic Community that will occur in 2015. Predicate trusted company also shows that at the national level was WIKA successfully implement GCG and convince people that WIKA memimilki commitment in the implementation of corporate governance consistently and continuously. This success motivates WIKA to be able to compete in the later era of the ASEAN Economic Community.
BASIC PRINCIPLES OF GOVERNANCE
In GCG implementation, Company complies with the following five principles:
- Transparency – transparent in performing decision making process and in relevant material information related to the company.
- Accountability – clarity of organization functions, implementation, and responsibility so that the company management shall run effectively.
- Responsibility – suitability in company management toward laws and regulations.
- Independence – independence of company management to act without any interference from other parties which is incompliance with the applicable laws and regulations as well as healthy corporation principles.
- Fairness – justice and equalization in fulfilling stakeholders’ rights based on current agreement and regulations.
Implementation of GCG principles requires thorough approaches and phases based on analysis of company situation and condition as well as company readiness.
Implementation of GCG principles in WIKA comprises of 6 (six) phases, namely:
- GCG Identification Practice,
- GCG Objective and Commitment Building,
- GCG Structure Development,
- GCG Mechanism Development,
- Communication Phase, and
- Implementation Phase.
THE PURPOSE OF GOOD CORPORATE GOVERNANCE
WIKA as a public company which has professional management always attempts to implement its operational activities are in line with the regulations. The implementation of GCG is the reflection of compliance toward the regulation of Ministry of State Owned Enterprises No. Per-01/MBU/2011. WIKA’s perspective toward GCG is a basic foundation to create a good business ethics to be a Good Corporate Citizen and to create a company’s sustainability.
Thus, the objectives of GCG implementation are as follows:
- Optimizing the Company value, to create competitiveness, both nationally and internationally, so as to maintain its existence, and sustainability to achieve the corporate aims and objectives.
- Providing certainty and benefits to the stakeholders of WIKA Creating the balance of interests from all stakeholders which is based on the Company’s values.
- Building a positive corporate image. Reinforcing the limitations associated with ethical business.