Assessment of GCG
TOTAL has implemented the method of a GCG assessment practiced by the GCG Consultant Team to assess the Company’s incorporation of GCG principles. This assessment is made by referring an appraisal of the Company’s Annual Report 2011, information gathered by a consultant team, ranging from Indonesia Stock Exchange, Bapepam, to printing and online media.
Pursuant to the standards of KNKG (Komite Nasional Kebijakan Governance), TOTAL is marked 4.02 out of 5.00, signifying GOOD, the Company is considered competent to meet the minimum requirements of the KNKG Guidelines.
According to OECD Principles, TOTAL’s score is 65.48 out of 100.00, signifiying FAIR, reflecting the Company has met the minimum requirements of OECD Principles in terms of GCG practices.
Assessment Indicators of TOTAL’s GCG
Assesment Indicators of TOTAL’s GCG are aligned with exposure to GCG’s enforcement, such as:
- Good Corporate Governance (GCG) Principles
GCG principles are carried through all business aspects, to the entire level of the Company. The principles are accountability, responsibility, independence, fairness, and equality. The practice of these principles will drive the Company to sustainability by upholding stakeholders’ interests.
- Business Ethics and Code of Conduct
In order to achieve long-term success, commitment to integrity is essential for implementation of GCG. Code of Conduct is and essential guideline for the Company’s instruments to practice applicable values and business ethics. Later, such conduct is expected to embody the Company’s culture.
- Annual General Meeting, Board of Commissioners, and Board of Directors
Annual General Meeting is a platform for all Shareholders to make significant decisions regarding the Company’s investments in accordance with the provisions in the Articles of Association and prevailing regulations. As the Company’s instrument the Board of Commissioners is responsible for collectively monitoring input for the Board of Directors to ensure Company’s compliance to the GCG. The Board of Commissioners has no authority to make decisions with operational matters. Board of Directors, is collectively responsible for governing the Company. Each member of Board of Directors is entitled to make decisions based on his/her own duties and authorities. However, the Board of Directors is held accountable for the carrying on of duties of each member.
- Shareholders’ Rights and Responsibilities
The Shareholders have rights and responsibilities to the Company, stated in the Company’s Articles of Association and regulations.
The Company continually establishes relationships with stakeholders by complying with fairness and equality, principles in accordance with prevailing regulations by each party.
- Statement of The Compliance to GCG Guidelines
The Company provides statements for Company’s compliance to GCG Guidelines in its annual report. The statement has to be completed with a report on the structures and work mechanisms of the Company, as well as any other information related to TOTAL’s GCG.
- Guidelines of The Implementation of Corporate Governance
TOTAL’s GCG custom is managed systematically and sustainably so can be practically applied to the Company’s guidelines for implementing TOTAL’s GCG.