The principles and guidelines of good state enterprise governance and international corporate governance  standards stand as a pillar of SMC operation and management.  The Board of Directors recognizes the importance of good corporate governance with the use of the Compliance unit to ensure the overall operation in accordance with regulations, procedures and laws including internal control, internal audit and risk management for the advantage of transparency, creditability and efficiency.

In order to achieve the good corporate governance (CG) principles, the following 7 policies on corporate governance are stipulated:
1. conflict of interest
2. Stakeholders
3. information disclosure, transparency, financial report and performance report
4. risk management
5. internal control and internal audit
6. operation monitoring and evaluation
7. Ethics

SMC has developed and reviewed the executive and employee ethics to ensure the compliance with good governance principles. The Recruitment, Compensation and Corporate Governance Committee, authorized by the Board of Directors, develops the Corporate Governance plan and handbook covering principles, policies and ethics.  The CG handbook approved by the Board is published as a guideline for the Board of Directors, the Management and staff members to effectively and constructively reinforce good corporate governance in the entire organization.

      The policy towards the stakeholders has been significantly exercised.  The Board encourages the connection among SMC and all stakeholders - government, business alliances, customers, creditors, and employees.  The code of conduct guidelines are deployed and delivered to the stakeholders on the fairness and equilibrium basis. The Board ensures the report declaring the status and performance of SMC in the annual report and SMC website for the access of the stakeholders and related parties. The Management and staff are as well monitored not to exploit their duties for their personal interest but encourage them to play their professionalism in the logical, fair and equitable practice including information disclosure, business integrity, client service, effective client-complaint solving in order to reflect the social responsibility.

Meanwhile, an information disclosure report against conflict of interest is provided and regularly reviewed up-to-date. SMC staff are keen to compile and be cautious to confidentiality dissemination to the third party, pertain environment and security of the stakeholders as well as do social activity campaigns to conserve the environment and improve the quality of community life.  It is SMC intention to ensure the concerned parties and the public with the operation adhered to the good governance to make it effective and efficient to all sectors.

SMC Corporate Governance Activities in 2012

1. Procurement information disclosure to the public clarified on SMC website to be in line with the Official Information Act, B.E. 2540.
 2. Information disclosure report towards conflict of interest has been complied to all transactions: new director, new employment, job rotation/ job transfer; and yearly reviewed.
3. The principles of SMC good governance handbook is appropriately reviewed and approved by the Board as a guideline of practice for the directors, the Management and staff.
4. In-house/external training/seminars have been schemed for the directors, the Management and staff to make the good governance practical.  Meditation project in honor of HM the King’s 84th anniversary at Mahachulalongkornrajavittyalai university during Apr 4-6, 2012 with a knowledge sharing session consecutively. Orientation program is provided for new directors to understand the nature of SMC business.  All directors are equipped with the specialized programs for directors by IOD; i.e., Director Accreditation Program (DAP), Audit Committee Program (ACP) and  Audit Committee Program by Federation of Accounting Professions. Mr. Kayasit Pissawongprakan, SMC director speaks at a staff workshop on “Criminal liabilities and violation liabilities”. Executive Vice President speaks at a staff training on “Strategic Management” and Assistant Vice President of legal department lectures on “Conflict of Interest”.  A workshop on “Service mind for daily work” is providedfor staff to bear in mind giving excellent service to the stakeholders. A merit-making for SMC 15th anniversary together with a Buddhist sermon on “Happy workplace” to review working morally and ethically and an activity to express staff’s determination to grow together with SMC. CG articles are selected and published in intranet for SMC staff and SMC internet for public access to learn more good governance.

5. There are many activities for CG promotion.  SMC delivers donated educational aid and books to a school suffered from flood disaster in Ang Thong province. SMC President (Mrs. Pornnipa Hachaiyaphum) gives a lecture on SMC business to the graduate students in property business department of Thammasat university. Executive Vice President) gives a lecture on risk management and land economics to Architecture teachers and students of Thammasat university. HR Vice President joins a panel discussion on public administration in the reign of King Dhonburi at Dhonburi Rajabhat Institute. 2012 outstanding employees on CG are voted and recognized.  Selective articles related CG promotion are disseminated via internet and intranet.  The communication, public relations, knowledge transfer, transparent information disclosure to the entire corporate via formal-informal meetings, announcement, poster, information board, email, intranet, annual report, etc

6. The integration of Corporate Governance - Risk  management – Compliance (GRC) is set as a plan to ensure the efficient overall risk management.  Selective articles on GRC are disseminated to staff via intranet and email. The risk management department arranges a workshop to identify SMC risk factors as part of 2013 risk management plan and GRC, as well as provides risk management training course for all staff.