In many cases, conflicts of interest in a company cannot be avoided—even though this could cause losses and other widespread negative impacts, such as the emergence of acts of corruption. This matter becomes inevitable when certain parties prioritize their interests above the company’s interests.
Kimia Farma Trading & Distribution understands this as a crucial problem because the company is more than willing to shut down any possibility that could lead to acts of corruption. Therefore, conflict of interest management is important to avoid practices detrimental to the company.
Preventing Conflict of Interest within KFTD
Corporate governance principles regulate conflict of interest management by prioritizing the company’s good. Here’s how KFTD prevents conflict of interest from forestalling the practice of corruption:
Personal Gain is Prohibited
In practice, when an employee experiences a conflict of interest involving themselves or people close to them, they are prohibited from taking personal advantage. This includes terminating all authority over the position he/she holds if necessary. The employee is also prohibited from using company facilities for personal interests.
The company’s Interest is Paramount
Putting the company’s interests first is vital to preventing conflicts of interest in KFTD. This includes making a decision that will benefit the company, even though it goes against personal preference. This is also used to prevent abuse of power that can lead to corruption or benefit oneself.
Communication is Principal
To prevent any conflict of interest, openness in communication is vital. All employees must be able to cooperate and coordinate to avoid any misunderstanding. In cases of personal interest or affiliation, it must be instantly declared to be contained effectively and immediately.
Preventing conflicts of interest also positively impacts KFTD integrity. This shows how the company prioritizes public interests above others to forestall further corruption or abuse of power.