Mercedes 2013 Annual Report Download - page 172

176
Compliance
Compliance is an essential element of integrity culture at
Daimler. For us, it is only natural that we adhere to all relevant
legislation, voluntary commitments and internal rules, and
that we act in accordance with ethical principles. We place the
utmost priority on complying with all applicable anti-corruption
regulations and on maintaining and promoting fair competition.
We have set this out in binding form in our Integrity Code, and
we intend to permanently establish integrity and compliance as
fixed components of our value chain.
Compliance management system (CMS) as a foundation.
Our CMS is based on national and international standards and
helps us to ensure that we conduct ourselves in conformance
with applicable laws and regulations in our day-to-day business.
We continually review the effectiveness of the system and
adjust it to worldwide developments, changed risks and new legal
requirements. In this way, we continuously improve our effi-
ciency and effectiveness. In 2013, we improved our processes,
such as the due diligences of our business partners, and
further developed the measures we take to prevent money
laundering in goods trading. Our CMS is subject to periodic
reviews by the Internal Auditing department and fulfills external
requirements.
Analysis of compliance risks. In a further improved systematic
risk analysis for the year 2013, as in previous years, we
assessed the compliance risks of all our business units. Both
qualitative and quantitative indicators were assessed, includ-
ing the respective business model, business environment and
type of contracting-party relationship. The results of this
analysis are the basis for risk management. Together with the
business units, we define measures to be taken to minimize
risks. One focus of our activities is on sales companies in high-risk
countries. Responsibility for implementing and monitoring
these measures lie within the management of each business
unit, which cooperates closely with the Group Compliance
department.
Strengthening our worldwide structures. In order to further
establish our Group-wide Compliance Organization as a partner
of the divisions and to even better counteract the risks specific
to our various divisions and markets, we have strengthened our
divisional structure. Each division is supported by a divisional
or regional compliance officer, who advises the business units
on matters of compliance. In addition, worldwide local com-
pliance managers make sure that our standards are observed.
In order to guarantee the independence of the divisions, the
divisional and regional compliance officers report to the Chief
Compliance Officer. He reports directly to the Member of the
Board of Management for Integrity and Legal Affairs and to the
Chairman of the Supervisory Board.
Whistleblower system. Our whistleblower system BPO
(Business Practices Office) serves as a valuable source of infor-
mation on possible risks and specific violations of rules. For us,
it is therefore an important instrument for good corporate
governance.
Our whistleblower system receives information on misconduct
from employees and from external parties worldwide, around
the clock, through various reporting channels and - if allowed by
local law - also anonymously. This allows us to react appro-
priately, if possible before any damage has been caused for our
employees and the Company. A prerequisite for the accep-
tance of a whistleblower system is that it is organized in a fair
manner, that it follows the principle of proportionality, and
that whistleblowers and other parties involved are equally pro-
tected. We laid down these criteria in a corporate policy with
worldwide validity in 2013. In addition, since February 1, 2012,
in Germany, we have commissioned an independent lawyer as
a neutral intermediary. He also accepts information on violations
of rules and due to his profession duty of discretion he is
obliged to maintain confidentiality.
Cooperation with our business partners. We regard our
business partners’ integrity and behavior in conformance with
regulations as a firm precondition for trusting cooperation.
In the selection of our direct business partners, we ensure that
they comply with the law and observe ethical principles.
Depending on the risk, we offer our business partners web-based
or classroom trainings. In addition, we have clearly formulated
the expectations we have of our business partners in the brochure
“Ethical Business. Our Shared Responsibility.”
Settlement with the US authorities: conclusion of moni-
torship. The three-year monitorship by Louis Freeh agreed upon
in the framework of the settlement reached with the US
Department of Justice ended as planned on March 31, 2013.
The monitor confirmed that with the end of the monitorship, we
had reached an exemplary standard of integrity and compliance.
We regard this as an motivation and obligation to maintain
the achieved standard, to develop it further, and to consistently
remain on the path we have taken.