Business integrity
We adopt the business integrity policies of our parent company, PMI, which guide us in complying with business integrity, anti-corruption and anti-fraud provisions.
With increasing work intensity and complex business activities in 2024, the Company focused more on corporate integrity issues.
In 2023, we adopted a new corporate Code of Conduct from our parent company, PMI, to replace the previous Guidebook for Success. This guideline applies to all employees and our supplier partners.
Sustainable Supply Chain
Sampoerna is committed to implementing responsible business, innovation, and maintaining our supply chain sustainability which includes all our partner farmers and employees.
Together with several suppliers, we are also fully committed to implementing high-standard principles as part of our operational responsibility to provide quality products for our adult nicotine consumers.
Performance in Managing Supply Chain
Sampoerna implements the Responsible Sourcing Principles (RSP) which apply to parties that are involved in the procurement of our goods and services.
In purchasing products and services, Sampoerna adheres to the Principles and Practices for Purchasing Goods and Services of our parent company, PMI, to ensure the best value, align with business needs, and comply with supply management, financial, legal, and corporate responsibilities.
Our Relationship with Farmer
Sampoerna and its suppliers have close relationships with the farming community that provides our main raw materials. The Company does not provide direct guidance and purchase directly from farmers, but through suppliers who have followed the Company's standards. To date, more than 18,500 tobacco farmers are involved in our supply chain, spreading across 11 districts on the islands of Java and Nusa Tenggara. In addition, our supply chain is also supported by 1,000 clove farmers.
Implementation of Integrated Production System (IPS)
Integrated Production System (IPS) is not something new for Sampoerna. Since 2009, this system has been implemented to tobacco farmers through farmer and supplier partnerships.
The IPS contains sustainable agricultural production approaches, such as:
- Implementation of Good Agricultural Practices (GAP) and the Agricultural Labor Practices (ALP).
- Product integrity, which includes elimination of NonTobacco Related Materials (NTRM) and pesticide residue control.
- Improvement of the tobacco supply chain through the Integrated Production System.
- Sustainable tobacco production that meets domestic needs.
Field Technicians, who provide support to farmers through agricultural technical advice, are the backbone of IPS activities. All farmers in our tobacco area were monitored directly by field technicians from our suppliers.
Through the IPS program, farmers can gain access to crop production infrastructure, technical assistance such as agricultural machinery, as well as guaranteed absorption of farmers' crops based on quality and quantity standards agreed upon.
Our Relationship with Third Party Operators (TPOs)
As part of our sustainable business practices, we applied the Responsible Sourcing Principles (RSP) to our 43 Third Party Operators (TPOs) which are owned and operated by local cooperatives and entrepreneurs spread across Java. TPOs employ more than 58,000 workers in producing our Hand-Rolled Cigarette (SKT) products, by 2024.
Sampoerna has routinely conducted outreach to TPOs to discuss the implementation of RSP and other issues. In 2024, various socialization activities have been carried out with TPOs. In addition, we always conduct performance evaluations with TPOs to ensure that all requirements are met.
Performance on Respect to Human Rights Efforts
As part of PMI, Sampoerna is committed to respecting human rights within the organization and across our value chain. With the Human Rights Commitment (HRC) set by PMI, we have the basis for an optimal human rights strategy, and business partners and suppliers must comply.
The steps we take to apply the HRC are based on the principle of control, which can be carried out as follows:
- For employees, human rights are an aspect of the Company’s Code of Conduct, Principles and Practices, and Workplace Integrity Policy.
- For the supply chain, human rights are included in the company’s Responsible Sourcing Principles (RSP) and Good Agricultural Practices (GAP).
- For our adult consumers, respect for human rights is reflected in our Marketing Codes, including preventing minors from accessing products.
PMI has established a Human Rights Commitment (HRC) as the basis of the Company’s human rights practices and is committed to managing the business in accordance with the UNGPs.
Speak Up
Sampoerna as an affiliate of Philip Morris International believes that doing business ethically is rooted in a harmonious and respectful work environment.
With Speak Up, employees and business partners can report any suspected violations which will be followed up swiftly by Sampoerna’s Ethics and Compliance Department.
Speak Up facilitates users in raising questions, concerns,or report instances of observed or suspected misconduct, including non-compliance with our Code of Conduct, by contacting any of the following:
- Supervisors, department heads, affiliate leaders, or function leaders
- Directly meeting the Ethics and Compliance key contacts directly via email
- Contacting the 24-hour Compliance Help Line www.compliance-speakup.pmi.com with the preferred languages, which can be used anonymously according to local laws and regulations.
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