Risk management and compliance
We have robust structures and processes in place to ensure the effective management of risks to our business, and are committed to the highest ethical standards in the conduct of our business.
The pace of new legislation in our industry has increased markedly in recent years, and so it is critical that our efforts in risk management and compliance keep up with and even anticipate these changes. However, efficiency and effectiveness in these areas also allows us to identify business opportunities to the benefit of all stakeholders.
Enterprise risk management
Managing risk is an integral part of Givaudan’s business. The Company operates a structured system of identifying, assessing and deciding on responses to mitigate key risks at all levels. The reporting of the opportunities and threats that these risks create and how they might hinder the business in achieving its objectives is also part of the risk management process.
Risk management is one of the responsibilities of the Board of Directors, which mandates the Executive Committee to manage the overall Company risk management process. The Company promotes the continuous monitoring and management of risks at an operational level.
Please read pages 51-53 of the 2016 Annual Report for more information.
Givaudan’s good name and reputation has been built with our partners over a long and rich history. To preserve it, we are committed to adhere to the highest ethical standards in the way we interact with all our stakeholders – customers, suppliers, shareholders, employees, competitors, government agencies and the communities in which we operate. Being open, transparent and honest in our dealings with these stakeholders allows us to grow responsibly and share our success.
Givaudan recognises different aspects of risk-based compliance management, from general compliance management to compliance management regarding specific areas of risk such as product safety/regulatory, trade affairs, environment, and occupational health and safety (EHS). For these specific areas, compliance is ensured by dedicated corporate functions, including the regulatory product safety team, the trade affairs team or the EHS team.
One of the main developments in 2016 was the adoption of a new Group Principles of Conduct by the Board of Directors. These principles replace our previous Principles of Business Conduct of 2009. The Principles of Conduct have been communicated to all employees by the Chief Executive Officer and are available in 14 major Company languages. The new document updates our Principles taking into account the Company’s stated values and DNA. In addition, the Group has issued its Responsible Sourcing Policy, a code of conduct for its suppliers, to ensure that the partners we are dealing with abide by the same high standards we do.
Please read pages 54-55 of the 2016 Annual Report for more information.