Managing the Impact on Stakeholders in the Business Value Chain
Business Value Chain
The Company realizes the importance of conducting business with responsibility in accordance with good governance principles, taking into account social and environmental impacts in order to drive the organization towards sustainable development. Including taking into account the impact on key stakeholders in activities related to upstream to downstream business operations. This reflects that the Company is committed to creating value for its products and services to meet the expectations of all key stakeholders.
Business Value Chain Analysis
Effective business management is not just for the organization itself but related to the value chain which consists of various stakeholder groups. The Company group’s business value chain consists of 2 types of value chain activities:
1. Primary Activities consists of 5 activities which are continuously linked in accordance with the business context.
Activity in Value Chain | Relevant Activities | Stakeholders |
1. Management of production factors (Inbound Logistics) and support of production factors. Including the relationship between trade partners or suppliers of raw materials or inputs used in the production of goods and services. |
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2. Operations are activities related to the transformation of raw materials or factors that lead to development of ready-to-sell products and services. |
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3. Distribution of goods and services (Outbound Logistics) is an activity and movement channel or delivery of goods and services. It enables customers to access products and services. |
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4. Marketing and Sales is an activity about persuasion customer to make purchasing decisions of goods and services. |
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5. After-sales service is an activity about providing services to customers with a readiness to provide maximum satisfaction. |
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2. Support Activities are activities that support to drive the main activities to achieve goals, and can be carried out continuously and efficiently.
- Firm Infrastructure is an activity about general administration in the organization, organizational structure, planning and organization of work systems such as quality control, accounting and financial systems, etc. In this regard, the Company has applied the risk management framework in the organization. By using the international standard, COSO to define risk management guidelines to prevent and reduce the impact of various risks that may cause the organization fail to achieve the objectives, and to lead to improvements in operations to achieve objectives efficiently and effectively. Including to build confidence among stakeholders.
- Human Resources Management is the key in driving business. Therefore, the Company focuses on the hiring of knowledgeable, competent and skilled employees, competitive and motivating compensation management, encouraging employees to receive regular development training as well as providing opportunities for career advancement, caring and morale building, and equal and fair treatment of employees. To make employees feel love and connected to the Company, dedicate to creativity, work development, and efficient service to respond appropriately to the needs of customers.
- Technology Development for products and services is an improvement of providing services processes by adopting new technologies to meet the needs and changing business world.
- Procurement is a procurement of quality and effective equipment and tools with transparency, and fairness to business partners.