Strengthening ESG Governance, Chandra Asri Conducts Business Ethics Self-Assessment

Chandra Asri conducted a company-wide Business Ethics Self-Assessment in 2024 as part of its commitment to strengthening the Governance pillar within the Environmental, Social, and Governance (ESG) framework. This initiative aims to evaluate employees’ understanding and application of business ethics, establishing a baseline for continuous improvement.

Business Ethics Becomes a Priority in Strengthening Sustainable Governance

Business ethics serve as the foundation of good governance, ensuring integrity, accountability, and fairness in all corporate interactions. Beyond regulatory compliance, ethical business practices reflect a company’s commitment to sustainability and social responsibility. A strong ethical foundation fosters trust among employees, partners, and society while enhancing business resilience against reputational risks, corruption, and conflicts of interest.

By conducting this self-assessment, Chandra Asri gains valuable insights into the level of awareness and implementation of ethical standards across the organization. These findings will guide policy enhancements and awareness initiatives, fostering a healthier and more responsible work environment. Ethical business practices also play a crucial role in ensuring sustainable operations by aligning decision-making processes with principles of fairness and long-term value creation.

Key Findings and Strategic Actions

The Self-Assessment, which was carried out over a period of one month, covered seven main areas that were aligned with important points in the Company's Code of Ethics, including:

• People & Safety – Prioritizing workplace safety and fair treatment.
• Fighting Bribery & Corruption – Upholding anti-bribery policies and avoiding conflicts of interest.
• Business Activities – Ensuring legal compliance and promoting fair competition.
• Political Activities – Maintaining ethical boundaries in political involvement.
• Safeguarding Assets – Protecting company data and resources.
• Communication – Managing internal and external information responsibly.
• Consultation and Reporting – Utilizing transparent reporting mechanisms.

The assessment highlighted key strengths, such as high compliance with workplace safety protocols and a strong understanding of anti-bribery policies. However, it also identified areas for improvement, including enhancing awareness of whistleblowing mechanisms and strengthening data protection practices.

What We’ve Done Right

• High compliance with occupational safety protocols.
• Good understanding of anti-bribery policies.
• Awareness not to act based on personal assumptions, understanding the importance of seeking guidance when faced with difficult decisions.

What Needs Improvements

• Understanding of whistleblowing mechanisms and protection of sensitive information.

Based on these findings, Chandra Asri has developed strategic initiatives to enhance employee awareness and competency in business ethics. Tailored training programs will ensure employees understand how ethical principles apply to their daily roles. Additionally, targeted communications will reinforce key messages related to whistleblowing, data security, and responsible communication.

To further institutionalize ethical governance, the company is continuously updating its policies to address emerging risks, particularly in data management and external partnerships. These policies are designed to be easily accessible and clearly understood by all employees, promoting consistent implementation across the organization. Regular monitoring and open dialogues with employees will ensure ongoing policy effectiveness, allowing for continuous improvements and innovation in ethical governance.

Embedding Ethical Governance into Corporate Culture

Through this Business Ethics Self-Assessment, Chandra Asri reaffirms its commitment to ethical governance as a fundamental pillar of its sustainability strategy. Moving forward, the company will conduct Business Ethics audits every three years, adjusting focus areas based on strategic priorities, risk assessments, and evolving regulatory standards.

By strengthening its ethical foundation, Chandra Asri upholds ESG standards and fulfills its responsibilities to stakeholders. Integrity remains the core value within the company’s iSTAR principles—Integrity, Safety, Teamwork, Accountability, and Respect—which define Chandra Asri’s corporate identity. In an increasingly complex business landscape, ethical governance not only serves as a guiding principle but also as a key competitive advantage, creating long-term value for all stakeholders.