EN
TH
Governance Policy Governance Policy

Governance Policy

Commitment, Challenge and Opportunity

In pursuit of long-term sustainable development CH. Karnchang emphasizes comprehensive social governance across all dimensions, ensuring alignment with ESG principles and SDG frameworks. The company is committed to generating shared value for both corporate growth and stakeholder well-being.

Its initiatives span corporate governance, regulatory compliance, human rights advocacy, human capital development, customer relationship management, community engagement, and occupational health and safety—integrating these factors to foster responsible and sustainable business practices. Ensuring compliance with corporate governance principles, transparency, and ethical standards enhances stakeholder confidence, including government agencies, shareholders, investors, and analysts. Effective governance reduces legal risks, optimizes business performance, and contributes to long-term sustainability and competitive advantage. However, failure to comply with regulatory requirements or governance missteps can lead to financial penalties, reputational damage, and operational setbacks. Furthermore, a diminished corporate reputation may negatively impact business continuity and long-term financial value creation, ultimately affecting the company's ability to sustain growth and attract investment.

Supporting the SDGs Goals

Goal 1:
No Poverty
Goal 3:
Good Health and Well-being
Goal 4:
Quality Education
Goal 5:
Gender Equality
Goal 8:
Decent Work and Economic Growth
Goal 10:
Reduced Inequalities
Goal 12:
Responsible Consumption and Production
Goal 16:
Peace, Justice and Strong Institutions

Stakeholders Directly Impacted

Shareholders, investors, and analysts
Robust corporate governance enhances corporate credibility and fosters investor confidence by ensuring transparency in business operations.
Business Partners and Contractors
Through the implementation of robust corporate governance practices, the company strengthens confidence among its business partners and contractors by guaranteeing fair treatment in accordance with established standards. Moreover, these governance principles ensure that the company’s business operations remain transparent, verifiable, and in compliance with regulatory and sustainability frameworks, thereby fostering long-term trust and accountability.
Government Agencies
Adherence to legal and regulatory frameworks by government agencies, ensuring effective governance and the preservation of ethical standards in business conduct.
Competitors
The company’s corporate governance framework significantly influences industry competitors, particularly in promoting fair competition standards within the market. By prioritizing transparency and ethical business practices, the company ensures that its operations do not create trade barriers or result in anti-competitive behavior. It upholds integrity by refraining from acquiring competitors’ confidential information through unethical means and avoids engaging in any form of reputational harm through false allegations. Compliance with these governance principles contributes to elevating industry standards for fair competition, fostering a more transparent and sustainable business environment, and reinforcing confidence among stakeholders, including investors and regulatory bodies.

Management and Operational Approach

The company upholds respect for human rights as a core principle of ethical business conduct. A strategic approach to human resource management—combined with comprehensive initiatives to support employees’ mental and physical well-being, workplace health, and safety—enhances operational efficiency and contributes to the company’s long-term sustainability. To achieve this, the company emphasizes effective governance in workforce management, fosters a culture of employee engagement, and cultivates a secure working environment by embedding stringent health and safety standards across all operations. Furthermore, the company enforces proactive risk mitigation measures to safeguard both employees and contractors, ensuring that all personnel can perform their duties in a safe and confident manner.

In addition, the company is committed to fostering trust and strategic partnerships with local communities in its operational areas to mitigate potential negative externalities, such as traffic congestion, road safety risks, and air pollution. Meaningful stakeholder engagement is essential for ensuring the seamless implementation of projects, ultimately contributing to improved customer satisfaction and reinforcing the company’s corporate reputation in alignment with sustainable development principles.

By integrating these principles across all operational processes, the company reaffirms its commitment to leadership in balancing long-term business sustainability with corporate social responsibility. It also seeks to proactively address the evolving expectations of stakeholders across various sectors. In 2024, the company undertook a comprehensive review of its human rights policy to ensure broader inclusivity and to further strengthen its implementation. This policy prioritizes the protection and respect of fundamental human rights for all stakeholders within the company and across its value chain, in strict adherence to the United Nations Guiding Principles on Business and Human Rights.