Reebok 2014 Annual Report Download - page 162

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2014
Risk and Opportunity Report
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03.5
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adidas Group
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2014 Annual Report
Group Management Report – Financial Review
Compliance management system
(adidas Group Fair Play Compliance Framework)
At the adidas Group, we consider compliance with the law as well as external and internal
regulations to be imperative. Every employee is required to act ethically and in compliance with
the law as well as with external and internal regulations while executing the Group’s business.
Violations must be avoided under all circumstances. As a company with worldwide operations and
more than 50,000 employees, however, the Group accepts that it will never be possible to exclude
compliance violations with absolute certainty.
Both the adidas Group Fair Play Compliance Framework and our risk and opportunity management
system are closely aligned and both are overseen by the Group’s Chief Compliance Officer who reports
directly to the Group’s Chief Executive Officer. Together, these systems create the organisational
requirements for Group-wide awareness of the respective governing law and of our internal rules
and guidelines as well as for ensuring their observance. We see compliance as all-encompassing,
spanning all business functions throughout the entire value chain, from supply chain through to
the end consumer. As a result, the identification, analysis and evaluation of potential compliance
risks are essential for our risk and opportunity management process. The Group Risk Management
department works closely with the Risk Owners and responsible Compliance Officers to conduct a
systematic assessment of key compliance risks on a quarterly basis.
The Group’s compliance management system is based on the OECD Principles of Corporate
Governance. It refers to the OECD Guidelines for Multinational Enterprises and is designed to:
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Support the achievement of qualitative and sustainable growth through good corporate
governance practice.
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Reduce and mitigate the risk of financial losses or damage caused by non-compliant conduct.
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Protect and further enhance the value and reputation of the Group and its brands through
compliant conduct.
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Preserve diversity by fighting harassment and discrimination.
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Contribute to continuous improvement in all aspects of the Group’s business.
Our Fair Play Code of Conduct, which is applicable in all regions and business areas, stipulates
guidelines for behaviour in everyday work and is available both on our website and on our intranet.
The Code of Conduct is the cornerstone of our compliance management programme which is
founded on three pillars: prevention, detection and response.
see Legal & Compliance Risks, p. 170