General compliance, corporate governance and the fight against corruption and bribery play an important role in compliance. As measures to combat bribery and corruption form an integral part of the general compliance management system, these key issues are explained together.
General compliance and measures to combat bribery and corruption
The prime objective of the groupwide compliance management system is to prevent violations of applicable laws and internal policies. To this end, employees are given help in familiarising themselves with the relevant laws and policies as well as guidance on how to apply them correctly. The Board of Management strives to act in accordance with ethical principles. It is unreservedly committed to compliance and declines to be involved in any transactions that are inconsistent with these values. It is also fully committed to compliance with competition law and does not tolerate any form of corruption.
Compliance organisation in place
A Compliance Officer appointed by the Board of Management coordinates compliance activities within the Group. The individual business units and subsidiaries have their own compliance coordinators, who are responsible for compliance in their organisations and present structured written reports twice a year to the Compliance Officer. The Compliance Officer in turn reports to the Board of Management and Audit Committee. As well as information on compliance activities and changes to the legal situation or compliance organisation, the reports also detail possible future risks and countermeasures. The basic principles of the compliance organisation are described in rules of procedure. The duties of the relevant employees are set out in job descriptions.
Code of conduct forms the basis
Compliance with these principles is set out in the code of conduct, which provides a mandatory framework for ensuring that behaviour towards business partners and employees is fair and in compliance with the law. The code of conduct forms the basis of a structured system of policy management that is continually updated. Other policies, such as the zero tolerance policy, the gifts and entertainment policy, the policy on the engagement of external distributors, the anti-money laundering policy and the insider trading policy, provide employees with binding rules on specific issues relevant to their day-to-day work.
Training is intended to ensure that employees are aware of the relevant laws and corporate policies, and that they comply with them at all times in their day-to-day work. Salaried staff in the head office sales, procurement, research and development and administration units, as well as in the subsidiaries, generally receive annual training sessions that are specifically tailored to their areas of activity. In the production plants, compliance training takes place in conjunction with the regular safety training.
Whistleblowing system introduced
Employees can supply information or direct questions to line managers, compliance coordinators, the Compliance Officer or the managers responsible for the legal affairs or internal audit units. Furthermore, since the beginning of 2017, the DEUTZ AG website has featured a whistleblowing system that can also be accessed by non-employees. Any information supplied is rigorously followed up. Any necessary investigations are carried out by internal audit, with external support if required.
Regular meetings are held to develop, discuss and coordinate compliance initiatives. These activities focus on preventing corruption, tackling money laundering and complying with export regulations (including export controls). They also ensure safety in the workplace, IT & data security, corporate security and product safety. A further aim is to prevent breaches of environmental, antitrust and insider trading laws.
As and when needed, the Board of Management and the Compliance Officer take legal advice as part of their efforts to continuously improve the compliance management system. The internal audit department advises on all activities. The compliance management system is also reviewed by internal audit or by external consultants, and is monitored by the Audit Committee on behalf of the Supervisory Board.
Training stepped up
Compliance activities at DEUTZ AG during the year under review again centred on the continuation and intensification of regular staff training, including for staff at subsidiaries outside Germany. The primary focus was on the code of conduct, money laundering, gifts, commission, export checks, antitrust/competition law and contract law. In 2017, around 1,100 employees took part in the various classroom-based training courses. In the production plants, compliance training takes place in conjunction with the annual safety training measures. Around 1,800 employees worldwide successfully completed the e-learning programme.
At DEUTZ Corporation USA, additional classroom-based training was provided on compliance with the International Traffic in Arms Regulations (ITAR). An e-learning programme specifically for the US was launched in 2017. From 2018, this will be mandatory for all DEUTZ Corporation employees.