Compliance management

Strategy and concepts

Value-based compliance management

Value-based compliance is an indispensable part of the Mercedes-Benz Group’s daily business activities and is firmly embedded in our corporate culture. We are strongly committed to responsible conduct. We expect our employees to comply with laws, regulations and voluntary self-commitments. We have defined these expectations in a binding form in our Integrity Code.

Through our Compliance Management System (CMS) we aim to promote compliance with laws and policies at our company and to prevent misconduct. The measures needed for this are defined by our compliance and legal organisations in a process that also takes the company’s business requirements into account in an appropriate manner.

Main objectives for compliance management

Below we explain how we are pursuing our main objectives, what laws and policies provide us with orientation in this regard, and what measures we are specifically implementing.

Combating corruption

We have committed ourselves to fighting corruption — because corruption is harmful to fair competition, to society and to our Group. Our corruption prevention measures extend beyond compliance with national laws. We also adhere to the rules of the OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions (1997) and the United Nations Convention against Corruption (2003).

As a founding member of the UN Global Compact, and in accordance with one of its ten principles, the Mercedes-Benz Group takes steps to actively combat corruption around the world.

Our Corruption Prevention Compliance Programme is based on our Group-wide CMS. An important element of this programme is the integrated risk assessment. When we assess possible risks, we take into account internal information (e.g. a unit’s business model) as well as external information such as the Corruption Perception Index of Transparency International. We see increased corruption risks in the area of sales activities in high-risk countries as well as in our business relations with authorised dealers and general agents worldwide, where we employ targeted measures to reduce risks in such areas.

The results of the risk assessment serve as our basis for implementing targeted corruption prevention measures that are oriented toward the risk faced by the unit in question. These measures aim to prevent corruption in all of our business activities. For example, we take a critical look at our business partners and transactions and are especially careful in our interactions with government authorities and officials. In this way, we want to avoid any appearance of corruption or bribery from the very start.

The management of each Group company is responsible for implementing and supervising the measures. In this task, the management cooperates closely with the specialist units within the Integrity and Legal Affairs division. Mercedes-Benz Group AG monitors the management activities of each respective Group company. Companies exposed to an increased corruption risk are supported by an independent Local Compliance Officer, who assists the respective management with the implementation of our Corruption Prevention Compliance Programme.

Mercedes-Benz Group AG regularly assesses the effectiveness of its measures and continuously enhances its methods and processes. Moreover, we offer a variety of communication and training measures to make our employees worldwide aware of the importance of corruption prevention.

In order to ensure an independent external assessment of our Corruption Prevention Compliance Programme, KPMG AG Wirtschaftsprüfungsgesellschaft audited the Compliance Management System for corruption prevention in accordance with the 980 Standard of the Institute of Public Auditors in Germany. This audit, which was based on the principles of appropriateness, implementation and effectiveness, was successfully completed at the end of 2019.

Promoting fair competition

The Group-wide Antitrust Compliance Programme is oriented to national and international standards for ensuring fair competition. The programme establishes a binding, globally valid Group standard that defines how matters of antitrust law are to be assessed. This standard is based on the criteria of the underlying European regulations and takes into account established legal practice at European antitrust authorities, as well as the rulings of European courts. Our objective here is to ensure a uniform level of compliance and advice in all countries.

By means of an advisory hotline, guidelines and practical support, we help our employees around the world to recognise situations that might be critical from an antitrust perspective and also to act in compliance with all regulations. This is particularly important when employees deal with competitors, cooperate with dealers and general distributors and participate in trade association work. In addition to Mercedes-Benz Group AG’s central Legal department and its specialist counsels, the Group’s global divisions can turn to local legal advisers, who also ensure that our standards are consistently upheld.

The results of our annual compliance risk analysis serve as the basis for the formulation of appropriate measures — during the reporting year, assessments of new divisions and transformation activities were also among the factors incorporated into the analysis. The responsibility for designing and implementing measures for addressing possible antitrust risks lies primarily with the respective Group company’s management, which is also responsible for monitoring the effectiveness of the measures employed. As a result, managers at Group companies cooperate closely with the Integrity and Legal Affairs division, which also provides information on how to implement compliance measures effectively. Within the framework of its Group management, the company monitors the management activities of the respective Group company. Units that face a higher potential risk in particular must also systematically assess the adequacy and effectiveness of locally implemented antitrust compliance measures at regular intervals. To supplement this, our Compliance, Legal Product & Technology and Corporate Audit departments conduct monitoring activities at our divisions, as well as random audits, in order to determine whether antitrust laws and internal standards are complied with. This helps us continuously improve the effectiveness of our Antitrust Compliance Programme and adapt it to global developments and new legal requirements. The associated methods and processes are being constantly refined and improved.

We utilise a variety of communication and training measures to make our employees aware of the importance of competition-related and antitrust laws and issues. Corresponding digital training courses were held during the reporting year. “Contact with competitors” was one of the key topics addressed in particular in the course of the Group’s split.

Managers, as well as employees who are involved in trade association work, are also required to take additional courses.

The local legal departments of foreign Group companies independently organised and conducted additional specific training courses.

In order to ensure an independent external assessment of our Antitrust Compliance Programme, KPMG AG Wirtschaftsprüfungsgesellschaft audited the Compliance Management System Antitrust in accordance with the 980 standard of the Institute of Public Auditors in Germany. This audit, which was based on the principles of appropriateness, implementation and effectiveness, was successfully completed for the second time at the end of 2021, after having been conducted in 2016 as well.

Compliance with technical and regulatory requirements

For Mercedes-Benz Cars & Vans, technical Compliance means adhering to technical and regulatory requirements, standards, and laws. In doing so, we take into account the fundamental spirit of these laws and regulations as well as internal development requirements and processes. Our objective is to identify risks within the product creation process (product development and certification) at an early stage and to implement preventive measures. For this purpose we have established a technical Compliance Management System (tCMS) in our automotive divisions. Its objective is to safeguard compliance with all legal and regulatory requirements throughout the entire product development and certification process. The tCMS defines specific values, principles, structures, and processes in order to provide our employees with guidance and orientation, especially with regard to challenging questions on how to interpret technical regulations.

Mercedes-Benz Cars & Vans has also created dedicated expert units for technical Compliance in the development departments of vehicle-related divisions. Among other things, these expert units manage a network of technical Compliance contact persons within development and certification departments. This network serves as a link between operating units and the compliance organisation. It supports the development departments in matters of technical Compliance. Complex questions regarding technical Compliance are evaluated and then decided in an interdisciplinary process that takes into account technical, legal, and certification-relevant criteria (tCMS committees).

Mercedes-Benz Cars & Vans has expanded the tCMS organisation in the Integrity and Legal Affairs division in order to take into account transformation processes and the particular risks in software development and digitalisation. Here, a new unit was established that adjusts tCMS processes and structures — and supplements them if necessary — in line with specific software development requirements. In doing so, we have also begun to further expand the global tCMS network.

The tCMS is managed Group-wide by an independent governance function whose director reports directly to the Board of Management member for Integrity and Legal Affairs. This governance function consists of employees with expertise in various fields, such as development, legal affairs, integrity and compliance. The governance function is organised by division. It develops the tCMS and provides the divisions with legal advice.

Since 2019, the tCMS policy has been applicable for Mercedes-Benz Cars & Vans, and this policy has since then also applied to all Group companies that conduct relevant development and certification activities. The policy summarises the key elements of the tCMS and defines the roles and responsibilities of all relevant functions. Process descriptions have been developed for key elements of the tCMS; the rights and obligations of the tCMS committees are defined in rules of procedure.

Our BPO whistleblower system is also available as a contact partner for reporting technical compliance violations, such as violations of engineering specifications and/or technical safety, or environmental protection regulations.

We regularly use various training and communication measures in order to sensitise Mercedes-Benz Cars & Vans employees at the development and certification units of all divisions to issues relating to integrity, compliance and legal regulations in the product creation process.

To also ensure technical Compliance within the Mercedes-Benz Cars & Vans supply chain, we raise the awareness of our business partners, and in particular of our suppliers, regarding the importance of technical Compliance, and we communicate our specific requirements in the form of information guidelines, for example. We also engage in dialogue with selected business partners whose scopes of delivery are especially relevant for technical Compliance. In these discussions we communicate how we ensure technical Compliance and clearly state what we expect of our business partners.

One element of the tCMS is the Technical Integrity initiative, which helps us to further develop the culture of integrity at the product development units and anchor this culture for the long term.

To complement the Integrity Code, the Technical Integrity Management team has worked together with the relevant development units to formulate the “Speak Up” and “Judgement Calls” commitment statement. These principles provide employees in the development and certification units with a basis for a shared understanding of responsible behaviour in the product creation process, especially in case of unclear legal framework conditions. Moreover, they provide guidance for the employees’ daily work. In 2021, these commitment statements were further anchored by target group-specific communication measures.

On a regular basis, the executives in the development and certification units have cross-unit exchanges on integrity with employees. These discussions focus on current integrity issues in the technical area.

Mercedes-Benz Cars & Vans evaluates the effectiveness of the tCMS with an annual monitoring process. The improvement measures identified here are considered and addressed.

In order to ensure an independent external assessment of our tCMS, KPMG AG Wirtschaftsprüfungsgesellschaft audited the tCMS with focus on emissions in accordance with the 980 standard of the Institute of Public Auditors in Germany. This audit with focus on emissions was based on the principles of appropriateness, implementation and effectiveness, and was successfully completed at the end of 2020.

Responsible handling of data

Connectivity and digitalisation will have a major impact on mobility in the future. The responsible handling and protection of data is a high priority at the Mercedes-Benz Group.

The regulatory requirements relating to data protection have become significantly more stringent in recent years. The strict requirements of the General Data Protection Regulation (GDPR) are valid not only in the European Union but also beyond it. Meanwhile, many countries all over the world that are relevant to the Group’s business operations have tightened up their local data protection laws. We are addressing the increased regulatory requirements by means of our Group-wide Data Compliance Management System (Data CMS), which along with our data vision and our data culture is a fundamental component of our overarching Data Governance System.

The Data CMS, which combines all Group-wide measures, processes and systems for ensuring data protection compliance, is based on the existing CMS. The Data CMS supports the systematic planning, implementation and monitoring of compliance with data protection requirements.

You can find detailed information about data compliance in the chapter on data responsibility.

Sanctions compliance, export controls and money laundering prevention

Money laundering and the financing of terrorism cause tremendous damage — to the economy and society in equal measure. Even an accusation of money laundering can compromise the company’s reputation and have financial consequences for ourselves and our shareholders and stakeholders. For this reason, the prevention of money laundering and the implementation of anti-money laundering measures have been defined as central compliance goals in our Integrity Code.

We produce and sell motor vehicles worldwide and offer our customers appropriate services as well as suitable financing and mobility solutions. As a result, Mercedes-Benz Group AG and its Group companies conduct their operations in accordance with the provisions of the German Money Laundering Act (GwG) which apply to “distributors of goods” as well as to financing and leasing companies. For example, we have taken measures throughout the Group to prevent and combat money laundering and the financing of terrorism.

To this end, Mercedes-Benz Group AG has developed a two-pillar model that takes into account the different requirements that distributors of goods and financing and leasing companies have to meet. The first pillar for preventing money laundering encompasses the companies in the Mercedes-Benz Group as distributors of goods; the second pillar pertains to the financing companies that are part of the Mercedes-Benz Mobility Group. In this process, the Group Anti-Money Laundering Officer for the distribution of goods reports to the Board of Management member for Integrity and Legal Affairs, whereas the Group Anti-Money Laundering Officer for Mercedes-Benz Mobility reports to the Board of Management member for Finance & Controlling. The strategic interaction between the two pillars is ensured by the Anti Financial Crime Committee. This committee brings together the Group Anti-Money Laundering Officers and their deputies from both pillars as well as key stakeholders for compliance and criminal law issues in order to share information.

Mercedes-Benz Group AG has appointed the Chief Compliance Officer to officially serve as the Group Anti-Money Laundering Officer for the first pillar of the company’s core business of vehicle sales and services related to the distribution of goods. The company has also appointed a deputy to the Group Anti-Money Laundering Officer and notified the authorities of this appointment. The Chief Compliance Officer reports directly to the Board of Management member responsible for money laundering prevention and is also responsible for anti-money laundering measures at all Group companies involved in the distribution of goods. Moreover, he serves as the point of contact for regulatory authorities, law enforcement agencies, authorities responsible for the prevention, investigation and elimination of potential threats, and Germany’s Financial Intelligence Unit.

In order to combat and prevent money laundering while at the same time complying with different regulatory requirements, the Mercedes-Benz Group has established a two-pillar model (distribution of goods and Mobility Services). We use an integrated compliance approach to check applicable sanction lists and take measures for the prevention of money laundering and the financing of terrorism. On the one hand, these measures aim to prevent supranational and national sanctions and embargoes from being evaded; on the other hand, money laundering, the financing of terrorism, organised crime and other types of corporate crime are to be combated.

The AFC & ECL specialist unit helps the Group Anti-Money Laundering Officer perform all of his tasks. For example, it ensures compliance across divisions for Mercedes-Benz Group AG and all of its companies involved in the distribution of goods and is responsible for Group-wide standards and processes pursuant to the German Money Laundering Act. In addition, it is responsible for the Group-wide Sanctions Compliance Programme and export controls. As a central Group organisation, the specialist unit therefore also brings together under one roof our two Centres of Competence for Preventing and Combating Money Laundering and the Financing of Terrorism and the Centre of Competence for Sanctions Compliance and Export Control. These are managed by a locally responsible employee at the respective Group companies.

The Sanctions Compliance Programme, including export controls, is valid for all Group companies. Among other things, it involves the systematic checking of applicable sanctions lists. Business with people, companies and organisations on these lists is potentially illegal and a punishable offence. As stipulated by law, we compare these sanctions lists with the data from customers, employees, strategic cooperation partners and business partners from areas such as procurement and sales. In doing so, we check applicable supranational sanctions lists and embargoes such as those published by the United Nations and the European Union as well as national sanctions lists from various countries, in particular the United States, while taking data protection aspects into account.

The second pillar for preventing money laundering at the Mercedes-Benz Group is located at the Mercedes-Benz Mobility Group, which combines the Group companies that are part of the Mobility division. It implements the standards of the German Money Laundering Act, in particular those that apply to banks, financial companies and financial service providers of the Mercedes-Benz Mobility Group. To this end, Mercedes-Benz Group AG has, under the direction of the Mercedes-Benz Mobility AG Board of Management member for Finance, officially appointed a Group Anti-Money Laundering Officer and a deputy and notified the supervisory authority of their appointment. Both of these individuals function as contact persons for the corresponding authorities and for local units involved in preventing money laundering and the financing of terrorism.

Prevention of money laundering at the Mercedes-Benz Mobility Group is managed by the Anti-Money Laundering@MBM Group Office. On the basis of the Mercedes-Benz Mobility Group policy for preventing money laundering and the financing of terrorism, this office implements the regulations of the German Money Laundering Act at the Group companies, develops uniform measures for the prevention of money laundering and conducts corresponding checks. These activities are performed in close coordination with the compliance organisation of the Mercedes-Benz Group and the AFC specialist unit for the distribution of goods.

Open source software and licensing agreements

In 2020, the European Commission adopted its new Open Source Software Strategy for the period 2020–2023. The strategy, which was presented under the motto “Think Open”, describes a vision for promoting the opportunities open source software offers for innovation and cooperation. The goal here is to support the joint use and reutilisation of software solutions, knowledge and expertise.

Vehicle software is becoming increasingly important for Mercedes-Benz Group AG and its products — especially with regard to comfort, safety, infotainment or automated driving. Along with electrification, digitalisation is a key pillar of the Mercedes-Benz Group’s sustainable corporate strategy. Free and open source software (FOSS) is already an established element of vehicle development operations and the digitalisation of the business model, and its use is increasing. Ensuring compliance with licensing agreements is a high priority for us here. This was also reflected in the development of the FOSS ECO SYSTEM in 2019. This system is designed to promote the use and availability of FOSS, while at the same time bringing together all Group-wide measures, processes and systems for ensuring that all licensing provisions are adhered to. The FOSS ECO SYSTEM is based on elements from the existing CMS at Mercedes-Benz Group AG. Employees of all divisions who are involved in software development are trained in the applicable legal and regulatory provisions and also participate in various training courses focussing on FOSS.

In 2021, the Mercedes-Benz Group AG Board of Management adopted a Free and Open Source Policy, which now applies at all Group companies that conduct relevant software development activities. The policy describes the elements of the FOSS ECO SYSTEM and defines the roles and responsibilities of the participating functions.

Compliance organisation

The Group’s compliance organisation is structured divisionally, regionally and along the value chain. As a result, it can provide effective support — for example, by means of guidelines and advice. Contact persons are available to each function, division and region. In addition, a global network of local contact persons makes sure that our compliance standards are met. The contact persons also help the management at the Group companies implement our compliance programme at the local level.

Moreover, the Compliance Board provides guidance regarding overarching compliance topics and monitors activities to see whether our compliance measures are effective. The Board’s mission is to react promptly to changes in business models and the business environment, deal with regulatory developments and continuously enhance the CMS. The Compliance Board consists of representatives of the compliance and legal affairs departments, meets at regular intervals and as needed and is headed by the Chief Compliance Officer and Vice President Legal Product & Technology.

The Chief Compliance Officer and Vice President Legal Product & Technology and the Vice President & Group General Counsel report directly to the Member of the Board of Management for Integrity and Legal Affairs and to the Audit Committee of the Supervisory Board. They also report at regular intervals and as needed to the Board of Management on matters such as the status of the CMS and its further development, as well as the BPO whistleblower system.

In addition, the Vice President & Group General Counsel reports at regular intervals and as needed to the Antitrust Steering Committee and the Group Risk Management Committee. The Chief Compliance Officer and Vice President Legal Product & Technology also reports to the Group Risk Management Committee. The structure of the reporting lines safeguards the compliance officers’ independence from the divisions.

Compliance risks

The company examines and evaluates its Group companies and corporate departments systematically each year in order to reduce compliance risks. In this process we use, for example, centrally available information about the Group companies, such as revenue, business models and relations with business partners. If necessary, other locally sourced information is supplemented. The results of these analyses are the foundation of our compliance risk control.

How we handle legal proceedings

We assess legal proceedings against companies of the Mercedes-Benz Group as being significant if they represent a particular financial and/or reputational risk. Information about significant legal proceedings against companies of the Mercedes-Benz Group is provided in the Annual Report 2021 as well as in the relevant quarterly reports. These reports also contain information on governmental information requests, inquiries, investigations, administrative orders and proceedings as well as litigation relating to environmental, capital market, criminal, antitrust and other laws and regulations.

Measures

Compliance programme

The compliance programme comprises principles and measures that are designed to reduce compliance risks and prevent violations of laws and regulations. The individual measures, which are based on the knowledge gained through our systematic compliance risk analyses, focus among other things on continuously raising awareness of compliance, the systematic tracking of information received regarding misconduct, and the formulation of clear standards for the behaviour of our business partners. We address these points in greater detail in a later section.

The BPO whistleblower system

The Business Practices Office (BPO) whistleblower system enables all Group employees, as well as business partners and third parties, to report misconduct anywhere in the world. The BPO is available around the clock to receive information, which can be sent by e-mail or normal mail or by filling out a special form. External toll-free hotlines are also available in Brazil, Japan, South Africa and the United States. Reports can also be submitted anonymously if local laws permit this. In Germany, whistleblower reports can also be submitted to a neutral external intermediary in addition to the BPO whistleblower system.

The information provided to the BPO whistleblower system enables us to learn about potential risks to the company and its employees and thus to prevent damage to the company and its reputation. A globally valid corporate policy defines BPO procedures and the corresponding responsibilities. This policy aims to ensure a fair and transparent process that takes into account the principle of proportionality for the affected parties, while also giving protection to whistleblowers. It also defines a standard for evaluating incidents of misconduct and making decisions about their consequences.

If the initial risk-based assessment of an incident categorises it as a rule violation with a low risk for the company, the BPO hands the case over to the responsible unit — for example, the HR department, Corporate Security or Corporate Data Protection. The respective unit investigates the incident and deals with the case on its own authority. Examples of rule violations with a low risk for the company include theft, breach of trust and undue enrichment valued at less than €100,000 — if the violation does not fall into the category of corruption.

If the BPO’s risk-based initial assessment categorises an incident as a high-risk rule violation, the BPO hands the case over to an investigation unit. The BPO provides support for the subsequent investigation until the case is closed. Examples of high-risk rule violations include offences related to corruption, breaches of antitrust law and violations of anti-money laundering regulations, as well as violations of engineering specifications and/or technical safety, or environmental protection regulations. Personal matters, such as incidents of sexual harassment or human rights violations, can also be considered high-risk rule violations.

In an effort to constantly increase trust in our BPO whistleblower system and make it even better known to our employees, we use a variety of communication measures. For example, we provide informational materials such as country-specific information cards, pocket guides and an instructional video that is available in ten different languages. We also hold dialogue events in which we provide our employees with information about the BPO. In addition, we regularly inform employees about the type and number of reported violations and make case studies available on a quarterly basis.

Sales partners and suppliers

We expect not only our employees to comply with laws and regulations. We also require our sales partners and suppliers to adhere to clear compliance requirements, because we regard integrity and conformity with regulations as a precondition for cooperation based on trust. Our Business Partner Standards, which were revised in the reporting year, describe in detail exactly what we expect of our business partners.

In the selection of our direct sales partners and in our existing sales partnerships, we ensure that our partners comply with the law and observe ethical principles. In order to monitor this, we use a globally uniform, risk-based Sales Business Partner Due Diligence Process. During the reporting year, we subjected all of the new sales partners to a due diligence audit. In addition, we audit the existing sales partners as part of the monitoring process. Our monitoring in this area is designed to ensure that we can identify possible integrity violations by our sales partners. We also reserve the right to terminate cooperation with, or terminate the selection process for, any partner who fails to comply with our standards. In addition, we work with our procurement units to continuously enhance our processes for selecting and cooperating with suppliers.

The Supplier Sustainability Standards also apply to our suppliers. On the basis of these standards and our Integrity Code, we provide both our suppliers and our sales business partners with Compliance Awareness Modules. These modules are intended to sensitise them to current integrity and compliance requirements such as those related to corruption prevention and technical Compliance. Through these measures we also offer our suppliers and sales partners assistance for dealing with possible compliance risks.

Communication and training

Mercedes-Benz Group AG offers an extensive range of compliance training courses that are based on its Integrity Code — for example, courses for employees in administrative areas and in the compliance and legal affairs departments as well as for members of the Supervisory Board and the executive management.

The content and topics of the training courses are tailored to the roles and functions of the respective target group. We regularly analyse the need for our range of training programme, expand or adapt it and conduct evaluations. A web-based and target group-oriented training programme consisting of various mandatory modules is available to all employees in administrative areas. The training programme encompasses a basic module as well as a module specifically for managers and expert modules on various compliance-related subjects.

These modules are automatically assigned when an employee is hired, promoted or transferred to a function that involves an increased risk. Employees must generally complete the training programme every three years. The training is voluntary for industrial employees. The web-based training programme is supplemented by face-to-face training courses, some of which we conducted in digital form in 2021.

We also offer information and qualification measures to individuals who perform supervisory and management functions, including new members of the Supervisory Board of Mercedes-Benz Group AG. Among other things, the onboarding programme for new Supervisory Board members provides information about the Antitrust Compliance Programme and the technical Compliance Management System. In 2021, new members of the supervisory boards of Group companies were also provided with information on various topics relating to compliance, data protection and integrity. As part of the onboarding programme, these new supervisory board members were also provided with “Know Your Responsibilities” courses addressing compliance-related topics — for example, corruption prevention and aspects of integrity at the Group companies.

New members of the executive management of Group companies are given a compact overview of key aspects of corporate governance via the Corporate Governance Navigator. This module provides information about their tasks and responsibilities, contact partners and points of contact that deal with central topics addressed by the Integrity and Legal Affairs division and adjacent units. The module thus supports such executives in their new role.

Effectiveness and results

The effectiveness of our management approach

The company monitors the processes and measures of the CMS annually and conducts analyses to find out whether these measures are appropriate and effective. For these activities, we rely on information about the Group companies as well as additional locally gathered information. We also monitor our processes regularly on the basis of key performance indicators such as the duration and quality of individual processes. To determine these indicators, we check, among other things, whether formal requirements are met and the content is complete. We also take into account the knowledge gained through both internal and independent external assessments.

If changed risks or new legal requirements call for adjustments, we adapt our CMS accordingly. The Group companies implement the respective improvement measures. They also regularly monitor these measures to determine their effectiveness and continually inform the responsible management committees about the results of their monitoring process.

Results

Independent audits

In order to ensure an independent external assessment of our compliance programme, KPMG AG Wirtschaftsprüfungsgesellschaft audited the Compliance Management Systems (CMS) for corruption prevention, antitrust and technical Compliance in accordance with the 980 standard of the Institute of Public Auditors in Germany. These audits, which were based on the principles of appropriateness, implementation and effectiveness, were successfully completed for our CMS Corruption Prevention at the end of 2019, for our tCMS (with focus on emissions) at the end of 2020 and for our CMS Antitrust at the end of 2021. The latter was the second such audit, the first having been conducted in 2016.

Reported violations

The BPO (Business Practices Office) whistleblower system enables all Group employees, as well as business partners and third parties, to report misconduct anywhere in the world. A total of 33 new cases were opened during the reporting year (2020: 53 cases). Overall, 20 cases, in which 24 individuals were involved, were closed “with merit” (2020: 42 cases involving 66 participants). In these cases, the initial suspicion was confirmed. Of these cases, two were in the category “Corruption”, two were in the category “Technical Compliance” and four were in the category “Reputational Damage”. In three cases, accusations of inappropriate behaviour of employees toward third parties — racism or sexual harassment, for example — were confirmed. Four cases were categorised as “Damage over €100,000”. The remaining cases fell into other categories. With regard to those cases that are closed “with merit”, the company decides on appropriate response measures in line with the principles of proportionality and fairness. The personnel measures taken in the reporting year 2021 included (written) warnings, separation agreements and dismissals (for exceptional reasons).