Enhancing Organizational Integrity: A Blueprint for Success

Exploring the Integrity Agenda in the context of organizational governance, this content delves into the crucial role of integrity as a cornerstone for building public trust and achieving sustainable success. The discussed core elements highlight the importance of aligning actions with organizational objectives, maintaining ethical standards, and fostering transparency in business operations.

• Organizational Integrity
• Governance
• Ethics
• Trust
• Transparency

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1. Governance Discussion: Integrity Agenda Perhimpunan Auditor Internal Indonesia October 2023

2. Stevanus Alexander B. P. Sianturi +62 815 11 333 393 stevanus.a.sianturi@id.ey.com Brief Partner, EY Forensic and Integrity Services B20 Indonesia, Integrity & Compliance Task Force Knowledge Partner Board Member, ACFE Indonesia Chapter Educations Master s Degree in Forensic Accounting, University of Wollongong, Australia Bachelor s Degree in Accounting, University of Indonesia Certifications Certified Public Accountant Certified Fraud Examiner Chartered Accountant Certified Integrity Officer Certified Sustainability Reporting Specialist Certified ISO 37001 Senior Lead Implementer Certification in Audit Committee Practices Qualified Internal Auditor Experience Fraudinvestigations, forensic accounting Fraud, bribery,corruptionriskmanagement Compliance:regulatory,contracts, codeof ethics, policies Financial crime:AML,CTF ISO37001AntiBriberyManagement System FCPA/ABAC investigations, reviewsandassessments Forensicduediligence, integrity diligence Scan here to connect on Linkedin

3. EY Global Integrity Report 2022 Source: Global Integrity Report, EY, 2022 Page 3

4. Reducing the gap between intentions and organizational behavior From intentions ... to actual behavior Principles, behavioral standards and unwritten norms that guide employee and third-party actions Verifiable data about employee behavior and organizational culture Mission and values statement Code of conduct Standards, policies and practices Management communications Metrics Page 4

5. Integrity Agenda and core elements The Integrity Agenda has four foundational elementsthat align actions with organizational objectives. Integrity is a cornerstone of a better working world. A successful organization stays true to its mission, keeps its promises, respects laws and ethical norms, and fosters public trust in the free enterprise system. Business leaders understand this proposition to be true: standard frameworks place ethics at the core of corporate governance. Companies that view integrity as a competencecan more confidently operate in high-risk countries , navigate new markets and potential acquisitions, innovate new solutionsand processes, and make integrity and transparency part of their relationships with their business partners and other stakeholders. Page 5

6. The Integrity Agenda: A measurable improvement How can a business be improved if the leaders face problems with integrity and confidence? The Integrity Agenda has four elements that help to embed integrity in an organization. However, key stakeholders will want to know whether the Integrity Agenda has produced measurable improvement in behavior.Therefore, Organization need to focus on outcomes to guide future actions and investments of scarce resources. Integrity is a cornerstone of a better businessenvironment.A successful organization stays true to its mission, keeps its promises, respects laws and ethical norms, and fosters stakeholders trust in the market. 2 Culture 3 Controls 4 Insights 1 Governance Data-based insights about emerging risks and integrity performance, driving program effectiveness and enriching employee knowledge. The commitment to integrity that guides decisionsacross the extended enterprise. A culture of trust is vital for success. Proceduresthat embed integrity into day-to-day operations, preventing and detecting violations of laws and policies. The structure of integrity management, encompassing board, line management and corporate functions, and the policies that guide organizational behavior. Page 6

7. The Core elements of the Integrity Agenda 3 Controls 4 Insights 1 Governance 2 Culture Proceduresthat embed integrity into day-to-day operations, preventing and detecting violations of laws and policies: Data-based insights about emerging risks and integrity performance, driving program effectiveness and enriching employee knowledge: The commitment to integrity that guides decisionsacross the extended enterprise: The structure of integrity management, encompassing board, line management and corporate functions, and the policies that guide organizational behavior: Tone at the top and leadership commitment Code of conduct and organizational values Training and education Open and transparent communication and confidential reporting lines Employeeselection and separation Behavioral patterns, both positive and negative Technology-enhanced procedures, providing data about performance Assessments, includingcyber assessmentsandinvestigations Continuous improvement of controls Third-party due diligence and management Riskand controls monitoring Forensic data analytics Investigationsand root cause analytics Board and management reportsof system performance Sharinginsights with the organization speopleto enrich their knowledge, facilitate good decisions and strengthen culture Organizational vision, mission and ethical obligations Policies Integrity function design Integrity risk management,aligned to corporate risk management framework Competent teams Resourceallocation Page 7

8. 2023 COSO Fraud Risk Management Guide Second Edition Page 8

9. Convergence among Internal Control, ERM and FRM FRM Guide 2023 Page 9

10. If you have integrity, nothing else matters. If you don't have integrity, nothing else matters. Alan K. Simpson

11. Thank You.