ethics and corporate culture part 1

7/27/2019 Ethics and Corporate Culture Part 1

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TELKOM INDONESIA

Corporate Culture And Business Ethics

Given that an organization is none other than the people within it our moralsand ethics are the foundation for the application of GCG in our Company.Learning from our previous management of governance, our application ofGCG is an integral part of our approach to excellence in our performance:being profitable, obeying the law, being ethical and instilling an awareness

among our employees of our social responsibility to the public as we strive tobe a good citizen to ensure that Telkom will continue to grow and be loved byour customers.

Code of Conduct: The Telkom Way

We have always aimed to build integrated corporate systems and cultures asa comprehensive approach to the management of our business that willenable us to achieve the objectives of being profitable, obeying the law, andbeing ethical, as well as fostering anawareness within the company and our employees of our corporateresponsibilities towards society as part of being a good citizen. Moreover, webuild these systems and cultures in order to realize our aspirations that

Telkom will continue to advance, be valued by our customers, be competitivein our industry and be a role model for other companies. Like the two sidesof a coin, our system and culture are inseparable: our corporate culturebecomes established because we have systems and operate themconsistently, and conversely, the systems we design are meaningless withoutthe moral values that underpin our employees’ behavior in their work.

The tradition of building systems and cultures is apparent in each era ofTelkom’s leadership. Our corporate culture has continued to evolve inresponse to the demands of a changing business environment. In 2009, webegan the transformation to a new corporate culture known as “The Telkom

Way”.

Corporate Values Our corporate culture, The Telkom Way, has five corporate values:Commitment to the Long Term, Customer First, Caring Meritocracy, Co-creation of Win-Win Partnerships and Collaborative Innovation. These arereferred to as 5C.



elkom At Glance

We are a state-owned enterprise that operates in the telecommunicationsand network services sector in Indonesia. We are subject to the prevailinglaws and regulations in this country. Given its status as a stateownedenterprise whose shares are traded on the stock market, the Government ofthe Republic of Indonesia is the Company’s majority shareholder, while theremainder of the Company’s common stock is owned by the public. TheCompany’s shares are traded on the Indonesia Stock Exchange (“IDX”), theNew York Stock Exchange (“NYSE”), the London Stock Exchange (“LSE”) andpublicly offered without listing in (“POWL”) in Japan.

Telkom offers a broad range of network and telecommunication services,including domestic and international basic telecommunication services, usingcable, fixed wireless (“CDMA”) and Global System for Mobile Communication

(“GSM”) as well as interconnection services used among other licenseoperators (“OLO”). Besides telecommunication services, Telkom alsooperates Multimedia businesses such as content and applications, completingour business portfolio called Telecommunication, Information, Media,Edutainment and Services (“TIMES”). As the telecommunication business isthe fundamental platform of the Company’s legacy-based business, the otherbusiness portfolios will be called as new wave businesses that lead theCompany to keep innovating digital creative-based products. This confirmsTelkom’s commitment to boost revenues amid more open competition in theindustry.

It is the Company’s obsession to continuously help to develop smallbusinesses, medium-sized companies and big corporations, to support theimprovement of people’s welfare. In addition, the Company continues todiversify the business through mergers and acquisitions. The Company iscurrently building a stronger platform for its broadband network in EastIndonesia under the Palapa Ring project so that our vision of a strongnational network, the Nusantara Super Highway, can be realized.

Our commitment to reliable, secure connectivity and data mobility hasenabled us to increase our broadband customer base to 10.5 millioncustomers as per December 31, 2011, a growth of 64.3 %. At the sametime, our cellular subscribers have increased by 13.8% or 13.0 million new

customers, bringing our total cellular subscriber base to 107.0 million.



C o n c l u s i o n

Within an organization, ethical culture building is a key component ofcompliance, risk

management, and overall business strategy. The attitudes, choices, andactions of business

leaders play a primary role in the creation of an organization’s ethical cultureand climate. A

leader’s ability to consistently promote ethical conduct in an organization iscritical to ensuring

that employees understand how to make “doing what is right” a priority.However, in a time of

corporate scandals and less hierarchical management, it has become evidentthat fostering an

ethical culture and an ethical climate within an organization is no simple task.But the challenge

should not deter us. It is a noble—and important—endeavor. Ethical culture

building is good for employees, for the health of a given

organization, and for each company’s bottom line. And, quite simply, it isthe right thing to do



G o o d E t h i c s , G o o d B u s i n e s s

• What is “ethical culture?”

• To what extent does ethical culture impact employee behavior and in what

ways?

• How are ethical cultures created?

• How can companies promote more ethical workplace cultures?

A substantial body of research explores these questions. This paper willhighlight key concepts and important findings from research. The firstsection presents two distinct but related concepts: ethical culture and ethicalclimate. Next, ways in which ethical climate and ethical culture impactorganizations and the behavior of employees are examined. In the thirdsection, the origins of ethical culture and climate are explored and a deeper

understanding of the role of leadership is gained. Finally, there is adiscussion of strategies for leaders to improve and manage ethical cultureand climate in their organizations.

ethics and corporate culture part 1

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