Operating with Transparency - good for businesses of any size

Saudi Arabia, propelled by its economic transformation plan, Vision 2030, is moving towards a bright future – growing, changing and preparing for more local entrepreneurship, more foreign investment and more investment in human capital to make this all happen. At the core of Vision 2030 is the desire to create an environment that unlocks business opportunities at home and abroad, strengthens the economy and creates jobs. Critical to the Kingdom’s transformation is a healthy business environment, which is why Saudi Arabia’s business community needs to fully integrate the Vision’s themes of transparency and integrity into its own corporate governance.

At SABIC, we not only view it as an imperative to conduct our business with integrity and transparency, but to also help build this same capacity up and down the Saudi supply chain. We understand that operating with integrity is vital, as stakeholder expectations are higher than ever with respect to corporate culture and commitment to operating ethically. Institutional and retail investors – and consumers and suppliers worldwide - want to know how companies are protecting the environment, their employees, business partners and the communities in which they operate

Today, these stakeholders, which include investment funds and ratings agencies, connect corporate integrity to larger societal goals. By spreading good compliance practices and a culture of integrity, we are helping Saudi Arabia achieve its objectives for 2030 and attract greater foreign investment. We take pride in the supply chains we have built, which mitigate against corruption and other risks and which our business partners are proud to be a part of.

Setting Standards at the Top: SABIC’s World Class Compliance Program

Our ranking as a global leader in the chemical industry reflects that good corporate governance and operating with integrity support long-term value creation and stakeholder trust. Our approach starts at the top, with senior executives and governing bodies setting the tone for compliance and ethical conduct. This is reinforced by robust governance structures, policies, and processes that embed transparency and accountability across the business.

Our integrity standards are defined through our Code of Ethics, which is our framework for ensuring compliance with applicable laws and regulations around the world, as well as through our Supplier Code of Conduct, which reflect the principles that all SABIC suppliers must agree to. Our Code of Ethics emphasizes the role that each of our employees play in building our integrity culture, and the approach they should take in making decisions. It also reflects our commitments to various multi-stakeholder initiatives, including our obligations under Responsible Care, the United Nations Global Compact, and the World Business Council for Sustainable Development.

Sharing best practices

At SABIC, we are using our experience as a beacon of best practice for others in the Kingdom. We share the lessons learned from our leading compliance program to help our suppliers build compliance capacity throughout our Saudi supply chain. For example, following the opening of the Saudi Stock Exchange (Tadawul) to foreign investment, SABIC organized public sessions for our suppliers on “Attracting International Customers and Investment through Supply Chain Compliance.” Our speakers shared their perspectives on the imperative for ethical business and why stakeholders – both global and regional – are increasingly requesting evidence of effective compliance practices in the Saudi supply chain. To help our suppliers develop their own compliance programs, all in attendance were given a takeaway assignment and an online anti-bribery training course offered by SABIC in conjunction with international anti-bribery organization TRACE International. SABIC has held a membership with TRACE for several years.

In 2019, SABIC’s headquarters in Riyadh hosted a major conference under the theme “Promoting Integrity and Transparency for Growth.” The event highlighted how a culture of integrity is a foundation of sustainable growth and can help to attract investment. Companies and societies that really embrace a culture of integrity are the ones that will succeed in the long-term. They are generating more investor confidence and ultimately, greater long-term value.

As well as establishing strong ethics and compliance measures for our employees and direct stakeholders, SABIC is committed to raising the bar across Saudi Arabia and the Gulf by sharing our compliance best practices to create a more level, ethical playing field and to foster investor confidence. We actively communicate our knowledge in the area with organizations such as the Pearl Initiative, an organization that fosters a strong compliance and ethics programs amongst companies in the Gulf Region, and Nazaha, the Control and Anti-Corruption Authority in Saudi Arabia.

We also play our role in cross-industry collaboration, often facilitated through non-governmental bodies. To ensure that we have a seat at the table as public policy decisions are being made, we participate in several global, multi-lateral anti-corruption programs. They include the annual G20/B20 business dialog, and the Partnering Against Corruption Initiative at the World Economic Forum.

Wherever we operate, we help develop ecosystems where doing business with integrity is the norm; and where companies and investors can feel confident they are in an environment that will allow them to grow in the right way –through ethical business.