Volvo 2015 Annual Report Download - page 73

A GLOBAL GROUP BUSINESS MODEL RESPONSIBLE BUSINESS BEHAVIOR
Compliance with anti-trust and anti-corruption
As set out in our Code of Conduct, the Volvo Group is committed
to complying with the anti-trust (competition) and anti-corruption
laws in all jurisdictions where we conduct business. It says further
that we promise to compete in a fair manner and with integrity and
not to participate in or endorse any corrupt practices. These prin-
ciples of compliance are implemented through the Volvo Group
Compliance Policy and dedicated compliance programs.
Updated due diligence process for business partners
Our programs consist of a number of elements, including policies
and guidelines, a comprehensive range of e-learning and tailored
face-to-face training, counseling and support, as well as auditing
and review. The Volvo Group whistleblower procedures also apply
to our compliance programs.
In 2015, the Volvo Group updated the process for anti-corrup-
tion due diligence assessments of business partners. The aim is
to enhance the existing processes designed to prevent bribery by
third parties carrying out business on behalf of the Volvo Group.
The system includes the use of external tools, and applies to
existing and new business partners.
LEGAL COMPLIANCE
Training in compliance
Training is a central compo-
nent of the Group’s compli-
ance programs. In 2015,
more than 10,200 employees
received face-to-face train-
ing. E-learning on legal com-
pliance topics is required on
a rolling basis and in 2015,
our competition law e-learn-
ing was completed by more
than 42,800 employees. This represents more than 90% of all
white-collar employees.
In addition, the Volvo Group implemented its “embedding”
project. The purpose of the project is to integrate compliance and
awareness into all business activities and decisions, so that
compliance becomes an even stronger part of the Volvo Group
culture. The project involves focused training of management
groups at all levels, support to managers in integrating compli-
ance into the activities of their teams and follow-up to ensure full
engagement.
gives employees access to the Head of Corporate Audit and the
opportunity to remain anonymous. The Volvo Group does not tol-
erate retaliation against a person for making complaints of sus-
pected improper behavior in good faith.
In total, 55 reports were logged in 2015 including 22 incident
reports sent by management. All cases were addressed, investi-
gated and reported to the Audit Committee of the AB Volvo Board
of Directors. In total two whistleblower cases and 8 management
reports were substantiated as of February 3rd, 2016.
The most common report categories were personnel manage-
ment and conflict of interest. The Volvo Group is planning to
enhance the whistleblower procedure in 2016 by offering reporters
a secure web-based reporting mechanism.
The Volvo Group’s policy is to comply with the tax laws
and regulations of each country in which it operates.
Where tax laws do not give clear guidance, prudence
and transparency are our guiding principles. Given the
role of taxes as a way to fund public welfare we regard corporate
tax compliance not purely as a question of legal compliance, but
also a matter of responsible business behavior. A fundamental
objective of our tax policy is to ensure compliance with these prin-
ciples throughout the Group, and at the same time ensure tax
efficiency through tax-conscious management of the operations.
Tax reporting in accordance with new regulations
The Volvo Group reports taxes in accordance with the laws and reg-
ulations in each country where we operate. As part of the OECD
project on Base Erosion and Profit Shifting (BEPS), new international
standards for reporting corporate income tax on a Country-by-
TAXES
Country basis (CBCR) have
been developed. The Volvo
Group will report in full compli-
ance with these new stand-
ards and is well advanced in
developing reporting tools to
accommodate these new
requirements as they are cur-
rently being implemented into
local legislation.
The average corporate tax
rate of the Volvo Group for
the last five years is approximately 28%, whereof SEK 11 billion or
58% of current taxes relates to emerging markets as defined by the
IMF. The Volvo Group is not engaged in any aggressive tax plan-
ning activities and does not operate through structures in tax havens.
Quality, safety and environmental care
Our core values, as defined on page 21, are key to support the
development of sustainable transport solutions. Our policies state
that the Volvo brand shall be a leader in the areas of quality, safety
and environmental care.
Volvo Group culture values
During 2015, extensive work has been carried out relating to the
Volvo Group culture. Interviews and analysis have been conducted
as a strong basis for our new CEO to focus the culture around
some selected values that support the long-term direction and
vision for the Volvo Group. Implementation of this work will start
during 2016.
90%
COMPLETED
E-LEARNING
28%
AVERAGE
TAX RATE
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