The Responsible Business Conduct pillar focuses on business conduct and integrity, accountability and transparency including shared norms and universal ethical values and behaviours and risk management approach. Material themes for the Responsible Business Conduct pillar include:
- General business principles
- Anti-bribery and anti-corruption
- Supply chain management
- Compliance and governance
General business principles
Kendrion believes it is important that all activities at the company are conducted with integrity and in a transparent manner. To this end, Kendrion aims to foster a culture where shared norms and universal ethical values and behaviours are the minimum standard. Shared norms, ethical values and expected behaviours are recorded in a set of internal policies and procedures that form part of the Global Legal Compliance and Governance Framework. In addition to setting norms, values and expected behaviours, the Global Legal Compliance and Governance Framework is aimed at ensuring compliance with applicable laws and regulations.
The Global Legal Compliance and Governance Framework includes the following key policies and procedures: Code of Conduct, Anti-Bribery and Anti-Corruption Policy, Speak-up Procedure, Competition Compliance Manual, Insider Trading Code, Supplier Code of Conduct and related internal policies and procedures. Kendrion considers it essential that every employee understands, complies with and conveys the shared norms and universal ethical values and behaviours as laid down in the policies and procedures of the Global Legal Compliance and Governance Framework. The policies and procedures of the Global Legal Compliance and Governance Framework are fundamental to secure responsible business conduct.
Anti-Bribery and Anti-Corruption policy
Kendrion does not tolerate bribery or any form of corruption. Bribery can include the offering, promising or giving of payments or other advantages to any person (including government officials or public officials) to influence a business outcome improperly, but it also covers accepting payment or advantages given to influence a business outcome improperly. Integrity of financial reporting is also a key principle. The Kendrion Anti-Bribery and Anti-Corruption Policy specifically addresses these matters.
Supply chain management
Kendrion operates as part of a supply chain with a central focus on manufacturing and production processes and customers. Kendrion and other parties forming part of the supply chain are collectively responsible for maintaining the quality and sustainability of the products in the supply chain. All parties forming part of the supply chain play a role in addressing major issues that affect the supply chain as a whole. The supply chains in which Kendrion is active have an impact on people, the environment and society that cannot be specified in unequivocal terms. Kendrion’s manufacturing and production processes are not polluting, in the sense that they do not result in large quantities of residual products that have a major impact on the environment and that cannot be recycled. Nor do they result in substantial emissions of substances with an environmental impact. Many of Kendrion’s products enable the company’s customers to reduce the environmental impact of their products, for example in terms of emissions and energy consumption. Kendrion intends to play a meaningful role in the chain in which the company is active. In many instances, Kendrion is a relatively minor link in the supply chain. As a result, Kendrion’s sphere of influence is limited. In order to achieve realistic results, it is of great importance that Kendrion continues the dialogue with its suppliers and, in the selection and assessment of suppliers, continues to consider their performance as regards sustainability.
Supplier Code of Conduct
The Kendrion Supplier Code of Conduct requires suppliers to assume their responsibility for matters concerning the environment, human rights, working conditions and fair trade. The suppliers are also requested to introduce similar rules themselves. Kendrion has set a target stipulating that the Kendrion Supplier Code of Conduct must be accepted by all its main suppliers in all business units. Kendrion obtained increased commitment from its suppliers in 2017, with twice as many suppliers having signed the Supplier Code of Conduct as in 2014. This includes 100% of the top 30 suppliers. If you like to read the Supplier Code of Conduct please click here. (link maken)
Supplier selection and audits
The extent to which a potential supplier addresses environmental and social issues and business ethics is important to supplier selection, in addition to standard criteria such as product quality, in the selection of suppliers. Kendrion conducts CSR supplier audits to review whether suppliers continue to comply with the required standards. Audits that result in unsatisfactory assessments and that reveal that the relevant supplier does not meet the requirements for compliance with the Supplier Code of Conduct are followed by a meeting to prepare a remediation plan and review means of achieving improvements. Failure to adequately follow up the remediation plan may result in the termination of the relationship with the relevant supplier.
Within Kendrion, the quality, environmental and safety systems are usually combined in a single system that forms the basis for the implementation of many projects. Virtually all of Kendrion’s operating companies comply with the most stringent quality and safety requirements. ISO 9001 lays down general requirements for the company’s quality management system, while ISO/TS 16949 has been developed specifically for the automotive industry and imposes stringent requirements. ISO 14001 is an environmental management system certification. As from 2016 all Kendrion manufacturing sites are ISO 14001 certified except for Mishawaka, USA and Toluca, Mexico (will be closed in 2018). The ISO 50001 standard is focused on the reduction of organisations’ energy consumption on the basis of detailed insight into their energy consumption and use of energy. In 2016, five European manufacturing sites gained ISO 50001 certification and in 2017 two European manufacturing sites gained ISO 50001 certification.
Compliance and governance
Kendrion operates in various jurisdictions and is committed to complying with all applicable laws and regulations in these jurisdictions. The responsibility for compliance rests with local management. To ensure that the company’s conduct is in compliance with the applicable laws and regulations in the various jurisdictions and in line with stakeholders’ expectations, Kendrion has adopted a Global Legal Compliance and Governance Framework. The Global Legal Compliance and Governance Framework is supported by a range of global procedures and policies that need to be applied at all times in the course of conducting business. The Global Legal Compliance and Governance Framework includes the performance of regular internal legal audits at the operating companies. The global policies can be found on Kendrion’s website (www.kendrion.com).
To manage and mitigate the risk of non-compliance, Kendrion also uses external specialists for designated compliance areas and obtain advice from external specialists to acquire timely information about the latest developments in laws and regulations.