The demands of business dynamics and an increasingly competitive climate require that all companies continually improve their performance. On the other hand, the demands of shareholders. investors. community and other stakeholders on good corporate governance become unavoidable prerequisites by the Directors in managing the company. Therefore, the management of the Company based on the principles of Good Corporate Govermance (GCG) is a must for business people in order to maintain its existence.
The principles of Good Corporate Govermance are the norms. or guidelines of the corporation that are required in a healthy Company management system. The principles of Good Corporate Govermance include :
Openness in carrying out the process of decision making and openness in expressing material and relevant information about the company.
Clarity in function. implementation and organizational accountability to enable an effective company management implementation. In the implementation. this accountability principle has been re ected in various Company’s performance basis and references.
Compliance within the company’s management of applicable laws and regulations and sound corporate principles.
The company shall be managed professionally without any con ict of interest and in uence/pressure from any other parties that are not in accordance with regulations of laws and healthy corporate principles.
Same treatment in ful lling stakeholders’ rights based on applicable requirements and regulations of laws.
Company implement Good Corporate Governance practices through comply or explain approach which means disclosed information regarding the implementation of the recommendations contained in the guidelines by the Company or give an explanation if the Company has not. or do not implement the recommendations.