Krungthai Bank has continuously carried out the Sustainable Krungthai (Krungthai Kunnatham), an initiative that aims to create a zero tolerance organizational culture using the “explosion from within” method to create intrinsic motivation. Our employees and the management are encouraged to brainstorm ideas under the topic of “a problem to solve, a good deed to do'' in order to upgrade our organization’s moral and ethics standards as well as promoting good values and conscience that adhere to the good corporate governance policy, so that our employees work with integrity and comply with all rules and regulations. The initiative also promotes transparency and accountability in our business operations, as well driving our organization towards becoming a role model organization for moral practice that meets international standards and a financial institution that customers can trust, which would ultimately lead to better business profits. We focus on the implementation of the three lines of defense model. The first line of defense consists of all employees and supervisors who actively oversee the operation in their functions to ensure that they are operating with integrity and have good and value-adding processes, while strictly adhering to good moral and ethics. The second line of defense includes risk management and compliance units. The third line of defense consists of internal and external audit units. The Compliance Committee and the Audit Committee provide another layer of caution and assurance. The implementation of the Sustainable Krungthai Initiative is not a responsibility of certain committees or management, but everyone in the organization is responsible and must adhere to the principles, so that Krungthai Bank becomes a role model organization for moral practice and gains public trust. The bank has entered into a memorandum of understanding with the Moral Promotion Center (Public Organization), the Ministry of Culture, to drive the bank to become a model moral organization with the Moral Promotion Center as the supporter and advisor to the project to foster good organizational culture.

       The bank has set goals and 3 strategic principles - Foster, Prevent and Change -, as well as implementation guidelines and steps to creating moral organization. The details are as follows:

We foster the conscience of our employees so that our employees are virtuous and follow the rules and regulations set by the bank and regulators. We encourage all our employees to have a shared set of values which promote effectiveness and efficiency at work, as well as giving them the opportunity to develop the organization. The fostering of conscience starts with the promotion of the top management’s role in leading the organization with virtue and being a role model for the employees. Furthermore, we focus on developing the capacity of our employees and encouraging them to take part in the initiative via activities, as well as recognizing employees who abide by the rules. The ultimate goal is to create a network of cooperation that every employee joins in.

We ensure that there are measures in place to check, examine and prevent any wrongdoing that stem from operational risks, resulting in the development of corruption prevention guidelines and more effective active corruption prevention mechanisms. We also apply rules and measures to prevent wrongdoing and corruption through policies, systems and operation; and integrate forces from all units relating to compliance.

We have changed and upgraded our internal processes - taking prompt legal actions, both civil and criminal, and enforcing strong disciplinary procedures and actions as well as integrating auditing, disciplinary and legal processes to ensure better efficiency.

       Besides the aforementioned three strategic principles, we have integrated the principles of work of the late King Bhumibol Adulyadej which focuses primarily on people development. He used the phrase “explosion from within” which means you must first strengthen the capacity of the people in the community to ensure that they are ready for the development, then they will burst out with their inner readiness and could then be exposed to the outside world. Therefore, in order for all employees to be virtuous, they must first start with themselves and then expand to their work. The Human Resources and Corporate Governance Group has applied the principles and carried out the “One Unit, One Sustainability Plan” project, in which all employees can take part in creating virtue at work by analyzing their problems and developing action plans based on the belief that virtue makes successful and efficient work. The 6 steps of action plan development are shown below.