Business integrity
Sampoerna has adopted PMI’s policy on ethical business practices as a guide for conducting business activities that comply with the relevant business integrity, anti-corruption, and anti-fraud provisions within the Republic of Indonesia.
The standards and requirements for maintaining ethics and integrity are set forth in the Guidebook for Success (PMI code of ethics) as well as the Principles and Practices that apply to all individuals from the President Director to those working on the field. The Company’s code of ethics also applies to our suppliers.
Sustainable Supply Chain
Sampoerna is committed to conducting a responsible business, innovating, and maintaining the sustainability of our supply chain. The Company is also fully committed to implementing high standard principles as part of our operational responsibility to provide quality products and a thriving community.
Sustainable Supply Chain Management
Sampoerna applies the Responsible Sourcing Principles (RSP) which contain standards and requirements that apply to parties related to the procurement of goods and services, including compliance with laws and regulations, human rights principles, environmental management, business integrity, and anti-corruption in line with the UN Guiding Principles on Business and Human Rights (UNGPs), 10 Principles of the United Nations Global Compact and the conventions of the International Labor Organization.
Sampoerna aims to purchase goods and services at best value, commensurate with business needs, while appropriately managing supply, financial, legal, and corporate social responsibility risks under our parent company policy, PMI-29 Principles and Practices for Buying Goods and Services.
Responsible Tobacco Farming Communities
Our tobacco farming community includes more than 21,000 people spread across 12 districts on the island of Java and Nusa Tenggara. The Company’s relationship with farmers is managed through suppliers who provide tobacco and cloves for the Company’s production facilities. To ensure a responsible business conduct, RSP and Good Agricultural Practices (GAP) requirements are incorporated into our contractual agreements with suppliers. The Company monitors the activities of key suppliers in several ways, including third party assessments, on-site audits and site visits.
Integrated Production System
Since 2009, Sampoerna has implemented the Integrated Production System (IPS) for tobacco farmers through farmer-supplier partnerships. The IPS contains sustainable agricultural production approaches.
Among others through Implementation of Good Agricultural Practices (GAP) and Agricultural Labor Practices (ALP).
Good Agricultural Practices (GAP) consists of principles and standards covering three focus areas: crop, social, and environment that are mandatory for all stakeholders and suppliers as part of the contract agreement.
On the other hands, through the implementation of Agricultural Labor Practices (ALP), we ensure and protects farm workers, that comprises occupational health and safety, wellbeing, and protection from labor issues.
In addition, in accordance with IPS standards, we ensure farmers have access to Personal Protective Equipment (PPE) to protect farmer and worker safety and health.
Sampoerna is committed to preventing the involvement of underage workers, as one of the seven principles of the ALP code of ethics, which all suppliers must comply with. This commitment is implemented through intervention programs both on-farm and off-farm.
Women empowerment, in this case for the wives of farmers, is one of the subjects in ALP which aims to increase women’s rights and opportunities in the economy. In 2020 – 2021, the Company organized entrepreneurship development activities, especially for women in our farming areas. The activities include health training, micro-entrepreneurship, to basic financial literacy.
Respect for Human Rights
As part of PMI, the Company is committed to respecting human rights within the organization and throughout our value chain. The Company ensures that human rights are respected and upheld by business partners, including suppliers. PMI has established a Human Rights Commitment (HRC) as the cornerstone of the Company's human rights strategy and is committed to managing the business in accordance with the UNGPs.
Sampoerna strives to resolve negative impacts and increase opportunities to create positive changes for the parties involved in the Company's value chain.
