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 compliance management system (CMS), these key topics are explained together.
General compliance and measures to combat bribery and corruption
DEUTZ considers it very important that all employees adhere to the rules imposed by the law, authorities or the Company at all times and without exception. Employees are also expected to demonstrate irreproachable ethical and moral conduct in their day-to-day work and when dealing with competitors. We will always refrain from engaging in any transaction that is inconsistent with these values. The Board of Management is also fully committed to compliance with competition law and has zero tolerance for any form of corruption. It strives to act in accordance with ethical principles at all times.
The prime objective of the groupwide CMS is to prevent violations of applicable laws, rules, regulations 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.
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 the focus of compliance activities and changes to the legal situation or compliance organisation, the reports also detail possible risks and the countermeasures in place to mitigate or eliminate these risks. The basic principles of the compliance organisation are set forth in a compliance policy.
Regular meetings are held to develop, discuss and coordinate the compliance activities that need to be initiated across the Group. The Compliance Officer invites the compliance coordinators to these meetings. The compliance activities focus on preventing corruption, tackling money laundering and complying with export regulations (including export controls). They also ensure safety in the workplace, IT and 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 CMS. The internal audit department advises on all activities. The CMS is also reviewed by internal audit or by external consultants, and is monitored by the Audit Committee on behalf of the Supervisory Board.
Code of conduct sets the tone
Compliance with the CMS principles is set out in the code of conduct, which provides the 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 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 applicable laws, rules, regulations and internal policies, and that they comply with them at all times in their day-to-day work.
Whistleblowing system also available to third parties
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. And since the beginning of 2017, DEUTZ AG’s website has featured a whistleblowing system that is also accessible to third parties (https://www.deutz.com/en/about-us/compliance/). Any information supplied is rigorously followed up, with external support called in where necessary.
More intensive training
When it comes to training its employees, DEUTZ uses not only classroom-based methods but also the established groupwide e-learning programme.
At the start of the year, all of DEUTZ’s administrative employees 1) (including employees of foreign affiliates, 2,136 employees, as at 31 December 2018) are assigned training modules that they are asked to complete before the end of the year. The assigned modules (fair competition, anti-corruption, information security) are based on their individual requirements. By the end of 2018, a total of 1,998 (93.5 per cent) of all administrative employees within the Group had completed the training.
Head-office employees in the sales, procurement, research and development and administration units, as well as in the subsidiaries, also generally receive annual classroom-based training that is specifically tailored to their areas of activity.
Classroom-based training on compliance issues is provided every year for non-administrative employees, most of whom work in the plants. These employees are also given regular safety training.
In 2019, a further e-learning module on health and safety at work is being added to the training catalogue. It is to be completed by all administrative employees.
1) Here, the term administrative employees includes all individuals employed by the DEUTZ Group as at 31 December of a particular year who are integrated into the Group’s IT infrastructure, have access to a PC and speak either German or English, as the e-learning modules are available only in these languages. It excludes employees who left the Company during the year, were on parental leave or were on long-term sick leave and therefore absent for more than 50 per cent of the year.