We aim to meet customers’ needs without compromising our relationships with suppliers. Additionally, to compete globally, we must also be aware of how laws are applied. This section of the COC addresses critical aspects of our business conduct, including handling customer and business partner transactions, and ensures compliance with complex laws to maintain fair competition.
4A. Business Partners Relationships
GS Group’s relationships with suppliers are based on lawful and fair practices. We expect our suppliers to meet high labor standards for their employees, treat them fairly, provide safe and healthy working conditions and uphold environmental standards. This is to ensure that our business partner relationships will not damage our reputation and its long-term business sustainability. We also require our business partners to sign an agreement/undertaking not to bribe our employees.
How to do it right
DO
- Comply with applicable laws and government regulations covering business partner relationships
- Ensure you are familiar with and follow government acquisition regulations when purchasing materials and services for fulfilling government contracts
- Choose business partners who comply with local requirements relating to labor standards, the environment, and health and safety through open and competitive bidding
- Safeguard “personal data” obtained from business partners
- Safeguard GS Group’s confidential and proprietary information with a confidentiality agreement; safeguard any business partner-provided information protected by a confidentiality agreement
DON’T
- Engage in direct business with a business partner owned or managed by a relative or close friend without disclosing it to management
- Place orders with a business partner if you believe they may need to breach existing laws or supply standards to complete it
- Enter into any supplier agreement or contract if there are potential conflicts in business partner selection
- Accept business with a business partner whose facility’s conditions are unsafe or those who ignore environmental standards
- Entrust “personal data” or confidential information to business partners without ensuring that they have appropriate technical, physical and organizational measures to prevent unauthorized access or use
Remember!! If there appears to be a conflict between laws, customs, or local practices, get help from the Legal Department.
4B. Working with Governments
GS Group frequently does business with national governments and government-owned companies. When working with government agencies, officials and international public agencies – whether as customers, regulators or partners – we must ensure that our activities and interactions demonstrate Gunung Sewu’s commitment to ethical conduct. Adherence to the law and compliance to specific regulations are expected.
How to do it right
DO
- Abide by applicable laws and regulations relating to working with governments, particularly special requirements associated with government contracts and transactions
- Be truthful and accurate when dealing with government officials and agencies
- Require anyone – including consultants, sales representatives, distributors or suppliers – providing goods or services for the Company on a government project or contract to agree to comply with the intent of the Company’s working with government policy
- Adopt processes that ensure reports, certifications, statements and proposals are current, accurate and complete and that contract requirements are identified to the responsible parties
DON’T
- Negotiate for employment with a government official or government official’s family members while the official has the ability to influence decision making about contracts
- Provide incorrect or unauthorized charges on a government contract
- Make any unauthorized substitutions for contracted goods and services or deviate from contractual requirements without the written approval of the authorized government official
- Deviate from contractual requirements or authorized contract substitutions to evade performing required tests and inspections
- Submit inaccurate or incomplete cost or pricing data when it is required by the government
- Violate government regulations that establish gratuity restrictions, recruiting and hiring restrictions, or certification procedures
- Accept information about a government’s competitive selection of a supplier or a competitor’s bid or proposal (unless the contracting officer or agency leader has lawfully authorized the information’s release)
4C. Anti-Bribery and Corruption
GS Group bases our business relationships on trust, transparency and accountability. All forms of corruption, bribery, kickbacks, or basically anything of value offered in exchange for a favorable business advantage or decision are not tolerated by Gunung Sewu Group. They harm not only our Company and its reputation, but also the communities where we do business.
How to do it right
DO
- Immediately report any attempts to offer you a bribe or to get you to act in a way that could be disadvantageous for GS Group to your direct manager, Compliance Department, local ombudsman or compliance helpline – Sahabat Anda
- Be aware of the possibility that bribery and corruption can occur. Regularly review our procedures and controls to ensure they are current
- Cooperate fully with law enforcement agencies and investigators and support prosecution or disciplinary action where sufficient evidence exists
- Check with the Compliance or Legal Department as to what is permitted and acceptable before taking any action
DON’T
- Accept kickback or bribes of any kind, and don’t allow anyone else to accept one for you
- Offer or promise to pay bribes or kickbacks to anyone, and don’t allow anyone else to offer one for you
4D. Competition laws
GS Group competes to best serve the customers’ needs and enhance shareholder value. In doing so, GS Group is subject to antitrust laws and regulations. In general, the laws and regulations prohibit agreements or actions that unreasonably restrain trade or reduce/hinder competition.
How to do it right
DO
- Comply with all applicable antitrust laws and regulations
- Review and understand GS Group and business-specific policies and procedures
- Consult with Legal and/or Compliance Department to help reduce the risks of non-compliance or the company raising competition law issues
DON’T
- Do Bid Rigging. Not only can it lead to potential legal consequences for the Company, but it also undermines fair competition and results in higher prices for goods and services
- Collude with competitors on prices, bids, territories, sales terms, production capacities, costs, profits, market share, products, customers, suppliers, or distribution methods on behalf of GS Group
- Propose or enter into agreements with anyone regarding a bid submission for no other purpose than to win the business
4E. International Trade Control Laws
International Trade Control (ITC) laws affect the transfer of goods, services and technology across national borders. These laws apply to GS Group’s operations beyond the shipping of products. Exchanges of information across national boundaries, including email and web access, are subject to trade controls.
How to do it right
DO
- Follow relevant ITC regulations in the area in which you operate, along with your business’s own ITC procedures, as they relate to the import and export of goods, technology, software, services and financial transactions
- Report all relevant information to your import manager to ensure accurate and complete import declarations
- Check the export classification of the product, software or technology prior to export to determine whether special authorization is required
- Screen your transactions against all applicable rules that restrict transactions with certain sanctioned countries, persons and prohibited end-users
- Screen all of your business partners, suppliers and parties involved in your international transactions against government provided watch lists
DON’T
- Cooperate with any restrictive trade practice or boycott that is prohibited or penalized under foreign or applicable local laws
- Ignore or take for granted any acts that suggest your customer may be attempting to evade ITC laws
- Accept evasive, reluctant or otherwise unsatisfactory answers from a customer to questions about end-use, end-user, delivery dates or delivery locations
- Get involved with parties or activities suspected of any connection with the development of biological, chemical or nuclear weapons, or ballistic missiles
- Conduct transactions involving an embargoed country, a citizen or representative of an embargoed country or an individual or entity subject to government sanction
- Accept an invoice on imported goods where the price shown does not reflect the full value, the description of the goods is not complete, or the country of origin is not correctly identified
- Accept or process any payment to the exporter or benefit the exporter in a way that is not stipulated in the invoice price or otherwise reported
- Take or accept transfer pricing between related parties that fail to cover appropriate costs and profits
- Use an import tariff classification that does not accurately describe the imported goods.
- Accept or allow the designation of GS Group as the importer of record (party responsible for an importation) without maintaining necessary processes to comply with import laws
- Allow the entry of goods under a preferential duty program (North American Free Trade Agreement [NAFTA], etc.) without supportive procedures ensuring compliance with the program’s requirements
4F. Privacy
A growing number of countries are regulating the collection and use of consumers’ “personal data” (names, home and office contact information, etc.). Additionally, many countries regulate the personal data of company representatives in business-to-business transactions. GS Group is committed to handling personal data responsibly and in compliance with applicable privacy laws.
How to do it right
DO
- Obtain/process and use personal data for legitimate business purposes only
- Limit access to personal data to individuals who need it for a legitimate business purpose
- Use “anonymous” data (names removed) or “aggregated” data (summarized so as not to be identifiable) instead of personal data where appropriate or required
- Use care to prevent unauthorized access in the processing of personal data or accidental loss or destruction of personal data
- Learn and comply with the applicable laws and regulations of jurisdictions from which the personal data is collected and in which it is processed or used
DON’T
- Store or keep personal data where there is inadequate access or security control
- Allow the sharing of personal data with unaffiliated third parties such as vendors or suppliers who lack appropriate security safeguards or restrictions
- Permit the transfer of personal data between countries without first considering applicable legal requirements
4G. Money Laundering Prevention
People involved in criminal activity – e.g., terrorism, narcotics, bribery and fraud – may attempt to “launder” the proceeds of their crimes to hide them or make them appear legitimate. GS Group is committed to complying with all anti-money laundering and counter-terrorism financing policies. We will conduct business only with reputable customers involved in legitimate business activities and with funds derived from legitimate sources.
How to do it right
DO
- Follow your business’ rules concerning acceptable forms of payment
- Comply with all applicable laws and regulations that prohibit money laundering, the support and financing of terrorism, and that require the reporting of cash or suspicious transactions
- Collect and understand documentation about prospective customers, agents and business partners to ensure that they are involved in legitimate business activities and that their funds come from legitimate sources
- Learn the types of payments that have become associated with money laundering (for example, multiple money orders or travelers checks, or checks on behalf of a customer from an unknown third party)
DON’T
- Deal with a customer, agent or proposed business partner who is reluctant to provide information, provides insufficient, false or suspicious information, or is anxious to avoid reporting on recordkeeping requirements
- Accept payments using monetary instruments that appear to have no identifiable link to the customer or have been identified as money laundering mechanisms
- Accept payments or early repayments of a loan in cash or cash equivalents by a customer or proposed business partner if there is suspicion that the fund is from money laundering-related activities
- Process orders, purchases or payments that are unusual or inconsistent with the customer’s trade or business
- Get involved in unusually complex deal structures, payment patterns that reflect no real business purpose, or unusually favorable payment terms
- Allow unusual fund transfers to or from countries unrelated to the transaction or those that are not logical for the customer
- Participate in transactions involving locations identified as secrecy havens or areas of known terrorist activity, narcotics trafficking or money laundering activity
- Get involved in transactions involving foreign shell or offshore banks, unlicensed money remitters or currency exchangers, or nonbank financial intermediaries
- Allow the structuring of transactions to evade recordkeeping or reporting requirements (for example, multiple transactions below the reportable threshold amounts)
- Grant requests to transfer money or return deposits to a third party or an unknown/unrecognized account