Clear consequences and unequivocal responses play an important role in preventing violations from happening in the first place. On this action level, we react to specific compliance violations and apply the lessons from past cases to continuously improve our compliance system.
We employ all sanctions allowed under labor laws to punish compliance violations internally; the sanctions imposed in any given case depend on the severity of the violation. The Corporate Disciplinary Committee, which is composed of high-ranking members of the Corporate Human Resources and Legal Departments, is responsible for punishing compliance violations committed by members of senior management and by employees above a certain position level anywhere in the world.
Depending on the severity of the violation and the position of the person involved, the proceedings are handled either by the Corporate Disciplinary Committee or locally. The areas of responsibility, procedures and regulations to be observed, including the safeguarding of statutory worker participation rights, are clearly defined.
Our corporate reports contain additional information on cases and consequences.
Completed investigations are reviewed in order to determine whether the identified deficiencies were corrected and whether any structural failures impeded the implementation of the compliance system (remediation).
The remediation process supports the Business Units in eliminating any deficiencies that have been identified. A group of specialists from the compliance organization tracks the implementation of the recommendations to ensure that deficiencies that have been identified are eliminated. Any structural failures in implementing the compliance system are identified and reported to internal auditors and to those responsible for the company’s compliance strategy so that important lessons from past cases can flow into the development of the compliance system.
Reports of possible compliance violations from anywhere in the company are registered by means of a case tracking tool. They are handled either centrally by the Compliance Legal department or by the respective local Compliance Officer, depending on the subject matter and severity of the accusation. Official investigations by government authorities, reports of violations of anti-trust laws, competition laws or issues possibly involving significant financial consequences or damage to the company’s reputation must be reported centrally. All cases entered into the system are examined by the Financial and Tax Department and by the company’s independent auditor to identify any consequences for the company’s financial statements. They are also included in the reports of the Chief Compliance Officer and Chief Counsel Compliance to the Managing Board and to the Compliance Committee of the Supervisory Board.
2011-Feb-24 | Author