Management Approach

Business Ethics and Code of Conduct

The Company has made the Business Ethics and Code of Conduct Handbook. for all levels of employees, from management to employees, as well as suppliers and contractors. They adhered as a guideline for honest work, including refutation against corruption and human rights violations. In 2O23, 1OO% of employees of CP ALL, Subsidiary, Store Business Partners and suppliers were communicated Anti-Corruption policy through the ethics handbook and code of conduct.

Management of complaints regarding business ethics violations and workplace code of conduct

Create a work culture in compliance with laws, rules, and regulations

The Company has established a law office for Marketing and Distribution Business, by having Legal and Compliance department as a part of the law office. The office is responsible for regularly studying and researching new legal announcements, as well as monitoring new laws passed weekly at ministerial meetings. This information is then communicated to relevant departments for consideration every month. Additionally, the law office creates mechanisms for legal compliance, regulations, and ordinances through legal consultation and opinions provided to various departments. It also assesses risk processes, conducts legal compliance checks, and provides regulations and ordinances to high-risk departments.

In 2O23, the Company developed policies for legal compliance and Charter of the Compliance Department, reviewing and updating the Company's important legal registry. Training sessions were conducted to provide knowledge on competition law and trade practices to procurement, marketing, product management, Office of Government Coordination, Law Office, Audit Bureau, and employees of the Company and its subsidiaries who are interested. A total of 618 employees attended these training sessions. Additionally, intellectual property law training was provided to employees of the Panyapiwat Institute of Management (PIM): 6O employees participated in the session. Furthermore, training on the standards of the Halal trademark was conducted for operational staff, with 8,4OO employees attending. These initiatives aimed to ensure that employees understand the Company's key legal aspects, and that they are aware of legal risks in the case of non-compliant, and thus can implement legal requirements accurately in their work.

Furthermore, to enhance the efficiency of legal screening and monitoring for implementation, the Company is currently developing the IT system (Compliance Universe System) and applications. These will serve as platforms for collecting and filtering relevant laws for each department in CP ALL and its subsidiaries. This also includes developing governance mechanisms and a system for inspecting and reporting to ensure compliance with the law for each department of the Company and its subsidiaries.

Communicate, Educate, Campaign, and Raise Awareness

The Company builds awareness of ethical conduct and sustainability practices through communication with employees at all levels, from management to employees in both office and operations lines, including companies within the CP Group. This ensures that the organization's business operations align with the corporate governance mantra of "integrity, transparency, fairness, and caring for community, society, and the environment." Additionally, the Company creates proactive media campaigns to educate target groups through various offline and online channels.

In 2O23, a DNA of Goodness 24 hours initiative was created, which acknowledges employees who perform commendable deeds such as helping to improve society, impressing customers, and assisting communities, such as providing basic medical care or firefighting support, as well as returning money or valuable goods to customers. Employees recognized for their good deeds shall receive ALL Member points. In 2O23, a total of 74 employees received awards, valued at 41,5OO Baht each.

In 2O23, training were organized for 94,569 employees across the country. Furthermore, the Company conducted an assessment to evaluate all levels of employees’ governance and Anti-Corruption understanding of CP ALL business group. 1OO% of employees have demonstrated comprehension and understanding.

Additionally, the Company received the ANTI-CORRUPTION AWARDS 2O23, which promotes anti-corruption and corporate governance for 2O23, organized by the Association of correspondents for Anti-Corruption (Thailand), to honor, commend, and encourage organizations, agencies, individuals, and the media who adhere to corporate governance principles and perform their duties with transparency,
honesty, and integrity.

Management of complaints and corruption cases

The Company has established a policy for whistle blowing and the protection of whistleblowers (Whistleblowing Policy), along with establishing channels for reporting information or complaints related to fraud or unethical behavior within the organization. The channels for receiving complaints are as follows:

Upon receiving reports of misconduct or allegations of wrongdoing through various channels, the Company’s Audit Office or Human Resources department shall conduct preliminary investigations transparently and fairly. Only individuals responsible for investigating the specific complaint will have access to the information. If the complaint is found to be valid, a committee will be appointed to further investigate. If wrongdoing is confirmed, the Company's prescribed disciplinary measures will be enforced, and the findings will be reported to the Company's Board of Directors. Furthermore, to prevent recurrence of an incident, the Company conducts reviews and implements additional measures to enhance regular work processes and communicates these to stakeholders for future compliance. In 2O23, all complaints were thoroughly investigated and resolved without any outstanding issues. Among these, there were cases where actual misconduct was found, totaling 87O cases, resulting in total damages of 35.79 million Baht to the Company.

Handling complaints of corruption cases in 2O23

Examples of Corrective Actions and Measures against Recurrence

Corruption, in the case of embezzlement at 7-Eleven stores’ operations