TELKOM INDONESIA Corporate Culture And Business Ethics Given that an organization is none other than the people

within it our morals and ethics are the foundation for the application of GCG in our Company. Learning from our previous management of governance, our application of GCG is an integral part of our approach to excellence in our performance: being profitable, obeying the law, being ethical and instilling an awareness among our employees of our social responsibility to the public as we strive to be a good citizen to ensure that Telkom will continue to grow and be loved by our customers. Code of Conduct: The Telkom Way We have always aimed to build integrated corporate systems and cultures as a comprehensive approach to the management of our business that will enable us to achieve the objectives of being profitable, obeying the law, and being ethical, as well as fostering an awareness within the company and our employees of our corporate responsibilities towards society as part of being a good citizen. Moreover, we build these systems and cultures in order to realize our aspirations that Telkom will continue to advance, be valued by our customers, be competitive in our industry and be a role model for other companies. Like the two sides of a coin, our system and culture are inseparable: our corporate culture becomes established because we have systems and operate them consistently, and conversely, the systems we design are meaningless without the moral values that underpin our employees behavior in their work. The tradition of building systems and cultures is apparent in each era of Telkoms leadership. Our corporate culture has continued to evolve in response to the demands of a changing business environment. In 2009, we began the transformation to a new corporate culture known as The Telkom Way. Corporate Values Our corporate culture, The Telkom Way, has five corporate values: Commitment to the Long Term, Customer First, Caring Meritocracy, Cocreation of Win-Win Partnerships and Collaborative Innovation. These are referred to as 5C.

elkom At Glance We are a state-owned enterprise that operates in the telecommunications and network services sector in Indonesia. We are subject to the prevailing laws and regulations in this country. Given its status as a stateowned enterprise whose shares are traded on the stock market, the Government of the Republic of Indonesia is the Companys majority shareholder, while the remainder of the Companys common stock is owned by the public. The Companys shares are traded on the Indonesia Stock Exchange (IDX), the New York Stock Exchange (NYSE), the London Stock Exchange (LSE) and publicly offered without listing in (POWL) in Japan. Telkom offers a broad range of network and telecommunication services, including domestic and international basic telecommunication services, using cable, fixed wireless (CDMA) and Global System for Mobile Communication (GSM) as well as interconnection services used among other license operators (OLO). Besides telecommunication services, Telkom also operates Multimedia businesses such as content and applications, completing our business portfolio called Telecommunication, Information, Media, Edutainment and Services (TIMES). As the telecommunication business is the fundamental platform of the Companys legacy-based business, the other business portfolios will be called as new wave businesses that lead the Company to keep innovating digital creative-based products. This confirms Telkoms commitment to boost revenues amid more open competition in the industry. It is the Companys obsession to continuously help to develop small businesses, medium-sized companies and big corporations, to support the improvement of peoples welfare. In addition, the Company continues to diversify the business through mergers and acquisitions. The Company is currently building a stronger platform for its broadband network in East Indonesia under the Palapa Ring project so that our vision of a strong national network, the Nusantara Super Highway, can be realized. Our commitment to reliable, secure connectivity and data mobility has enabled us to increase our broadband customer base to 10.5 million customers as per December 31, 2011, a growth of 64.3 %. At the same time, our cellular subscribers have increased by 13.8% or 13.0 million new customers, bringing our total cellular subscriber base to 107.0 million.

Conclusion Within an organization, ethical culture building is a key component of compliance, risk management, and overall business strategy. The attitudes, choices, and actions of business leaders play a primary role in the creation of an organizations ethical culture and climate. A leaders ability to consistently promote ethical conduct in an organization is critical to ensuring that employees understand how to make doing what is right a priority. However, in a time of corporate scandals and less hierarchical management, it has become evident that fostering an ethical culture and an ethical climate within an organization is no simple task. But the challenge should not deter us. It is a nobleand importantendeavor. Ethical culture building is good for employees, for the health of a given organization, and for each companys bottom line. And, quite simply, it is the right thing to do

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What is ethical culture? To what extent does ethical culture impact employee behavior and in what ways? How are ethical cultures created? How can companies promote more ethical workplace cultures? A substantial body of research explores these questions. This paper will highlight key concepts and important ndings from research. The first section presents two distinct but related concepts: ethical culture and ethical climate. Next, ways in which ethical climate and ethical culture impact organizations and the behavior of employees are examined. In the third section, the origins of ethical culture and climate are explored and a deeper understanding of the role of leadership is gained. Finally, there is a discussion of strategies for leaders to improve and manage ethical culture and climate in their organizations.