Governance

Business integrity

We adopt the policies implemented by our parent company, PMI, regarding business integrity practices, and this serves as a guide for the company in performing every business activity by complying with business integrity, anti-corruption, and anti-fraud provisions.

With increasing work intensity and the increasingly complex business activities in 2023, the company put more attention to issues related to corporate integrity. 

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

More information regarding Business Integrity can be found here: Sustainability Report 2023

Sustainable Supply Chain

Sampoerna is committed to implementing responsible business, innovation, and maintaining our supply chain sustainability which includes all our 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, in accordance with supply management, finances, as well as legal and corporate responsibilities.

Our Relationship with Farmer Partners

Sampoerna and its suppliers have close relationships with the farming community that provides our main raw materials. To date, at least 21,000 tobacco farmers are involved in our supply chain. They are spread across 12 districts on the islands of Java and Nusa Tenggara. On top of that, 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:

1. Implementation of Good Agricultural Practices (GAP) and the Agricultural Labor Practices (ALP)
2. Product integrity, which includes, among others; elimination of Non-Tobacco Related Materials (NTRM) and pesticide residues control
3. Improvement of the tobacco supply chain through the Integrated Production System
4. Sustainable tobacco production that meets domestic needs

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. 

More information regarding Our Relationship with Farmer Partners can be found here: Sustainability Report 2023

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”) that are spread across Java, that are owned and operated by cooperatives or regional entrepreneurs.

More information regarding Our Relationship with Third Party Operators (TPOs) can be found here: Sustainability Report 2023

Performance on Respect to Human Rights Efforts

As part of PMI, the company 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 thus, business partners and suppliers must comply.

PMI has established a Human Rights Commitment as the basis of the Company’s human rights practices and is committed to managing the business in accordance with the United Nations Guiding Principles on Business and Human Rights (UNGPs).

More information regarding Performance on Respect to Human Rights Efforts can be found here: Sustainability Report 2023

Speak Up

Sampoerna as an affiliate of Philip Morris International is committed to doing business ethically and with integrity, honesty, respect, and fairness. To fulfill this commitment, we rely on our employees and management, business partners, and stakeholders to speak up early to identify and address misconduct effectively.

Individuals may ask questions, raise concerns, or report actual or suspected non-compliance with Our Code of Conduct; PMI policies; or applicable laws and regulations by contacting any of the following:

• The PMI Ethics & Compliance confidential email address at
  PMI.EthicsandCompliance@pmi.com;
• The PMI Compliance Help Line, a third-party operated reporting channel available 24 hours a day, seven days a week, in all languages spoken at PMI.  Individuals may contact the Help Line online at www.compliance-speakup.pmi.com or by telephone at 0800 1503216. Reports to the PMI Compliance Help Line can be made anonymously, subject to local laws and regulations.

More information on Speak Up can be found on the PMI website: 
Speak Up