PT HM Sampoerna

Sampoerna’s Commitment to Anti-Corruption

INTRODUCTION

The Company has a strong commitment to operate with integrity and focus on responsibly delivering long-term and sustainable growth. Additionally, the Company uphold ethics, business integrity, a culture of respect, honesty and fairness through governance structures, and policies and practices that encourage transparency and prevent unethical behavior across its operations and value chain. Bribery is against Sampoerna’s standards of conducting business, especially to maintain its ability to interact with others, including Government Officials, within the boundaries of the law and to avoid interactions that might be perceived as having an improper or corrupt intent. The Company does not bribe anyone, it does not accept anything of value that might affect their objectivity in doing the job, and exercise good judgment to ensure that its interactions with others.

FRAMEWORK AND STRATEGY

The commitment against corruption is implemented through communication and training for employees and relevant third parties, in the form of classroom and online training, town halls, and team discussions, and the promotion of a working environment where employees and relevant third parties feel comfortable and safe, when things don’t seem right or can be improved which is known as a whistleblowing system. The Company has an independent Ethics & Compliance Department and Law Department who governs the implementation of this commitment. It holds quarterly meetings with compliance coordinators from various departments and a whistleblowing system is in place to report any misconduct on the business. Complying with good corporate governance related topic, the Company reminds vendor with a vendor statement letter. To maintain the transparency of the Company, it also have a system which inform the position shift of the corporate structure.

ACHIEVEMENT AND IMPACT

The Company’s Guidebook of Success (Code of Conduct) and several Principles & Practices set out detailed standards for engaging with governments and public organisations or third parties generally, doing external communications or public statements, making contributions or providing financial support to certain projects, giving gifts or providing entertainment to third parties, and recording and reporting such expenses. The commitment provides a clear roadmap to employees and relevant third parties on how Sampoerna will function as a company against corruption. Since 2017, Law Department in collaboration with Ethics & Compliance and Procurement Department have delivered live training about Anti-Corruption to 523 suppliers. The Company also created video campaigns about Anti-Corruption for employees in 2019 and started to receive feedback, concerns and reports from employees and suppliers which indicate that they are comfortable raising a concern to the Company. Sampoerna wanted to maintain this collaborative spirit within its employees and suppliers as business partners, for Sampoerna to uphold their integrity.

FUTURE DIRECTION

The commitment is honored irrespective of the challenges and pressures that Sampoerna faces in the business as anticorruption is viewed as the only way to secure sustainable growth. The Company believes that acting with integrity and preventing unlawful and unethical behavior is essential for their long-term success. Sampoerna strives to go beyond mere compliance in its operations and across its value chain. This commitment is also in line with the United Nations’ Sustainable Development Goals (SGDs).

PT Hanjaya Mandala Sampoerna Tbk. (“Sampoerna”) has been an important part of the Indonesian tobacco industry for more than one hundred years since its establishment in 1913. The Company’s main product, Sampoerna A, is the leading brand in the Indonesian cigarette market.