• In addition, PTT focused on corporate governance among PTT Group to align with PTT’s corporate governance management standards. To this end, they agreed to jointly study and develop corporate governance guidelines based on international best practices to establish a standard suitable for PTT Group as a step toward future ranking. Implementation plans and proactive promotional strategies for corporate governance were also established as follows:
R-E-A-C-T
R
= Responsibility
E
= Equitable Treatment
A
= Accountability
C
= Creation of Long Term Value
T = Transparency • Below are some activities in promotion of corporate governance for PTT Group: - Establishing a committee to oversee corporate governance policies for PTT Group. - Organizing seminars to foster awareness of corporate governance and social, community, and environment responsibilities, with experts as guest speakers, to encourage the sharing of experience. The target audience was the staff of PTT and PTT Group with corporate governance roles. - Organizing the “PTT CG Group Day” to disseminate PTT Group’s corporate governance activities. In 2010, the “PTT Group CG Day 2010” was held at Energy Complex, Vibhavadi Rangsit Road, Bangkok. Each company set up its own exhibition and presented its own principles of good corporate governance and business ethics under the theme “CG: The Code to Growth” and organized a seminar among the senior management of PTT Group. Outside honorary guests were also invited, including over 1,000 guests from SET, SEC, Thai Listed Companies Association, State Enterprise Policy Committee, PTT executives, employees, the mass media, and honorable guests. - PTT has instituted a clear and suitable organizational structure and lines of command. Delegation of authority and responsibilities is done in writing. Key Performance Indicators (KPIs) are set at the beginning
Annual Report 2010 PTT Public Company Limited
of the year as a working guideline for employees and assessed at the end of the year. Annual targets are also reviewed. All employees recognize their roles, authority, duties and responsibility. • PTT has defined the policy and procedures for human resource management in writing, including recruitment, training, promotion and compensation procedures. • PTT has put in place channels for filing complaints and assigned the Corporate Communication Department as the main responsible unit. The Department acts as a focal point to respond to complaints within a suitable. Issues are regularly compiled, managed, and presented to the management for organization improvement and development in all aspects. 5.19.2 Risk Management Corporate risk management is vital to business execution, which PTT recognizes all along by proceeding under the approach of The Committee of Sponsoring Organizations (COSO) and ISO 31000, an international standard recognized by organizations worldwide. Cultivating risk management as a corporate culture, PTT has instituted a corporate risk management policy, with a Risk Management Committee - consisting of executive vice presidents and vice presidents from all business units - overseeing and framing risk management and internal controls for the Company as a whole. It reports the outcomes to the PTT Management Committee and the Audit Committee every quarter of the year. A Corporate Risk Management Department was appointed specifically for this matter. The risk management process at PTT is linked to strategic planning processes. A Strategic Thinking Session (STS) gather ideas from top management to define the corporate direction, goals, and strategies. External and internal factors are assessed for potential impacts on the success of the Company’s aspiration. Also, risks of losing opportunities for creating value added are assessed. Corporate risks are ranked in a corporate risk profile for each year. Responsible risk managers are assigned under the risk management process, with the Committee monitoring resolution to applicable risk areas together with event risks for the year that affects PTT.
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