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A G U I D E T O C O M P L I A N C E I N I N D O N E S I A
Ensuring Compliance
In order to ensure compliance with the respective laws
and regulations, it is important that the companies apply
certain measures. In general, a set of suitable measures
should be in place. Some of the possible measures are
described in the following sections.
A. INTERNAL CODE OF CONDUCTS
The internal code of conduct establishes the core values
of a company. By providing guidelines for behavior,
it serves as a basis for a legally compliant conduct of
the employees. The code of conduct usually includes
provisions on employee’s dealings with each other, as
well as with third parties, but may also contain rules
regarding ethics, environmental protection and/or
sustainability.
B. ADVISORY BOARD
The company may – in addition to the already
existing mandatory company organs like the Board
of Commissioners – implement an advisory board
for all compliance-related matters by the company’s
management. It can be in charge of the development,
implementation, evaluation of and compliance with
all internal and external policies, regulations and laws.
Appointed members of the board are often employed
as heads of the compliance-related departments, such
as legal, internal audit, finance, accounting, human
resources and risk management.
C. WHISTLEBLOWING SYSTEM
A whistleblowing system enables employees, or third
parties, to report shortcomings of or violations against
internal or external policies or laws and regulations.
Companies often set up a hotline which collects
anonymous comments regarding any infringements.
D. OMBUDSMAN SYSTEM
An ombudsman serves as an internal or external
contact person to uncover and resolve criminal
offences incompanies. Like thewhistleblowing system,
the ombudsman system ensures that all potential
violations of laws or regulations are reported. An
ombudsman functions as an intermediary between
the person who has provided the information and the
company.
E. EXTERNAL AUDITORS AND ADVISORS
External auditors and advisors carry out independent
and objective reviews of processes and operations in
the company to ensure compliance with internal and
external policies and regulations. Furthermore, they
also provide optimization proposals.
F. TONE FROM THE TOP
To create a true corporate culture, the managers
must serve as a role model and take responsibility
for compliance. The clear commitment of the
management enhances compliance throughout the
company.
G. TRAINING
Compliance Training is used to acquaint employees
or third parties (i.e. suppliers) with the compliance
measurements of the company. Training methods are
on-site training, which is often preferred for executive
employees, and e-Learning as a standardized training
to provide broad coverage.
H.COLLECTIVE ACTION
To combat corruption, collective action methods
combine different interest groups to work and
approach the problem together. By forming alliances
against corruption, fair competition and fair market
conditions shall be granted. Collective action can
mean measures between companies or between a
company and the public sector.
I. BUSINESS PARTNERS
With regard to its business partners, the company
could conduct a compliance due diligence and
ensure through binding agreements that the business
partners abide to the same compliance rules as the
company.
