Introduction of Certification Process of Thailand’s Private Sector Collective Action Coalition Against Corruption

Enterprise with Integrity Role of CAC in Anti- Corruption Collective Action is the cooperation of people of good will who agree to push for change for public good, which no one could achieve alone This is ideal for anti-corruption as no one can solve the problem without cross-sector help Thailand’s private sector Collective Action Coalition aims to work towards key goals: 1) A change in attitude leading to a refusal by companies of corrupt practices; 2) Changes in the way the public sector works through policy advocacy 3) Promote a corruption free business environment through enlarging CAC network

Enterprise with Integrity Key points for Certification  Promote the integrity of doing business in Thailand  Corporate culture of integrity & performance  Strengthen corporate brand & reputation  Create a level playing field for the industry  Attract and retain high-quality staffs  Attract and retain long-term investors

2. Certification Process 1.1 Submit a signed Declaration 1.2 Self-declare no corruption 2.1 Fill Self Evaluation Tool 2.2 Verified by Audit Committee or External Auditor 2.3 Submit to CAC Council for approval 2.4 CAC council will consider quarterly 1. Joining Pass Not Pass Certified Member Improvement suggestion Review every 3 years Review every 3 years Improvement within 3 Months Improvement Improvement not success not success DeclarationMemberDeclarationMember Certification Process

Enterprise with Integrity About Self Evaluation Tool o The Self Evaluation Tool has been adapted by The IOD and Price Waterhouse Coopers (PwC) with the development and translation to be suitable for the stage of development in Thailand and for all sizes of companies. o Developed along the line of the Self Evaluation Tool used by Transparency International as the framework of the “Business Principles for Countering Bribery”

Enterprise with Integrity o o In addition, it is toned down to provide Yes and No answers with no judgments needed. o o The questionnaire comprises of 71 sections in total, 58 of which are mandatory for the companies to comply with. About Self Evaluation Tool

Enterprise with Integrity Before Submit to IOD; A. A. Company fill Self Evaluation Tool with “Yes” and provide clearly Evidence reference in all 58 mandatory questionnaires.. B. B. Chairman of the “Audit Committee” (SEC Criteria for Audit Committee) or “External Auditor” verifies that a system has been put in place in accordance with the Self Evaluation Tool. The verification report is made to the BoD and the IOD. Certification Process

Enterprise with Integrity C. C.Where companies choose to engage external auditors, they must be those already engaged by the company to audit its accounts or other auditors in the list maintained by the Securities Exchange Commission (SEC). Certification Process

Enterprise with Integrity D. Work of the auditor is based upon “agreed upon procedure” with scope of work/standard wording drafted by the IOD Submission to IOD; E. Company submit Self Evaluation Tool, endorsed by the board of directors and signed by Chairman of BoD and Chairman of Audit Committee along with a separate auditor report to IOD. Certification Process

Enterprise with Integrity F.IOD makes a submission to the CAC council for certification approval on a quarterly basis. G.CAC council will consider the request within a month after the end of quarter. H.Next Verification by the Audit Committee or external auditor will take place every three years. Certification Process

Enterprise with Integrity Noted: In case of incidents such as corruption-related news, legal cases, or investigations involving companies applying to join the CAC or certified members, they are obliged to disclose relevant information to the CAC Council immediately and they are to comply with practices indicated in “Screening process for companies joining the CAC in case they indicate that they are involving in any legal case and/or investigation by any state agency or regulator and/or news related to corruption”. Certification Process