BMW 2010 Annual Report Download - page 167

165 STATEMENT ON CORPORATE GOVERNANCE
tions, in autumn 2010 the Board of Management decided
to expand the existing range of compliance measures.
This included additional measures aimed at avoiding cor-
ruption, strengthening controls and introducing region-
ally structured compliance management.
It is essential that employees are aware of and comply
with applicable regulations. The BMW Group does not
tolerate violations of law by its employees. Culpable
violations of law result in employment-contract sanc-
tions and may involve personal liability consequences
for the employee involved.
In order to avoid this, the BMW Group’s employees are
kept fully informed of the tools and measures used by
the Compliance Organisation via various internal chan-
nels. The central means of communication is the Com-
pliance website within the BMW Group’s intranet where
employees can find compliance-related information and
also have access to training materials in both German
and English. Employees can use the website to access
frequently asked questions (and answers) on compli-
ance-related issues. The website contains a special service
area where various practical tools and aids are made
available to employees, which help them deal with typi-
cal compliance-related matters. With effect from the
beginning of 2010, employees also have access on the
website to an electronically supported authorisation
process for invitations in connection with business
partners.
Compliance is also an important factor in terms of
safe-
guarding the future of the BMW Group’s workforce.
Withthis in mind, in 2009 the Board of Management and
the national and international employee representative
bodies of the BMW Group signed a set of Joint Principles
for Lawful Conduct. In doing so, all parties involved gave
a commitment to the principles contained in the BMW
Group Legal Compliance Code and to trustful cooperation
in all matters relating to compliance.
In the interest of investor protection and in order to en-
sure
that the BMW Group complies with regulations
relating to potential insider information, as early as 1994
the Board of Management appointed an Ad-hoc Com-
mittee consisting of representatives of various specialist
departments and whose members examine the relevance
of issues for ad-hoc disclosure purposes. All persons
working on behalf of the enterprise who have access to
insider information in accordance with existing rules
have been, and continue to be, included in a correspond-
ing, regularly updated list and informed of the duties
arising from insider rules.
pliance issues. In 2010, for example, a European Union-
related training programme was prepared (“Compliance
Advanced – Competition and Antitrust Law”) aimed at
employees who come into contact with antitrust- related
issues as a result of their functions within sales or pur-
chasing.
In order to avoid legal risks, all members of staff are ex-
pected to discuss matters with their managers and with
the relevant departments within the BMW Group, in par-
ticular the Legal Department, the Group Internal Audit
Department and the Group Security Department. As a
further point of contact (telephone or e-mail), the BMW
Group Compliance Contact has also been set up for both
employees and non-employees to answer any questions
that may arise regarding compliance. This also applies if
weaknesses or circumstances have been identified which
could result in non-compliance with the law. Information
can also be provided anonymously if so desired.
Compliance-related queries and all matters to which at-
tention has been drawn are documented and followed
up by the BMW Group Compliance Committee Office
using an electronic case management system. If neces-
sary, the Group Internal Audit Department, the Group
Security Department and legal departments may be
called upon to assist in the investigation process.
A reporting system has been established for the Com-
pliance
Organisation which enables compliance-relevant
issues to be reported to the Compliance Committee on
aregular basis, and, if necessary, on an ad hoc basis. To
this end, a current total of 132 Compliance Managers
(at31December 2010) report on compliance matters
covering all areas of the BMW Group. The first full set of
compliance reporting was completed in 2010. This in-
cluded reporting on the compliance status of the relevant
entities, identified legal risks and incidences of non-
compliance as well as the corrective and preventative
measures implemented.
Both the compliance with and the implementation of the
Legal Compliance Code are reviewed regularly by Group
Internal Audit and Group Security. For this purpose,
theGroup Internal Audit Department performs on-site
audits and interviews employees.
The Board of Management keeps track of and analyses
compliance-related developments and trends on the
basis of the Group’s compliance reporting and input from
the BMW Group Compliance Committee. Against the
background of rising expectations placed on the system-
atic approach and effectiveness of compliance organisa-