Group @ Daimler Assistance Systems for Safe Business Daimler AG, Group
Daimler AG, Group 2
1. Integrity 2. Overview of @ Daimler 3. International 4. Execution in operational business 5. Takeaways Daimler AG, Group 3
Supporting and challenging a culture of integrity Daimler AG, Group 4
Why is integrity important for us? Would you like to work for a company that is solely after profit and where ethical values have no role? Would you like to buy a vehicle from a company that is involved in shady transactions? Would you invest in a company that could incur fines in the millions at any time? At Daimler, profitable growth goes hand in hand with social, ethical, and environmental responsibility. After all, this is the only way to remain competitive and achieve sustainable success. For this reason, integrity is one of our four corporate values at Daimler. Daimler AG, Group 5
Integrity and what is the difference? means "adhering to the rules." Integrity goes beyond this. Acting with integrity means following an "inner moral compass" and doing the right thing of our own free will because we know it is the right thing. The company's regulations must therefore be based on mutually agreed basic values. Acting with integrity requires both complying with rules and aligning one's actions with one's personal attitude. is part of integrity. Daimler AG, Group Working group's drawing on the question "What is the relationship between compliance and integrity?" 6
Our common values as the foundation for a high performance organization Passion Respect Integrity Discipline Only our people can make the difference Daimler AG, Group 7
1. Integrity 2. Overview of @ Daimler 3. International 4. Execution in operational business 5. Takeaways Daimler AG, Group 8
"" at Daimler and GC (Group ) Within the wide scope of various compliance topics, GC is the expert for topics related to corruption prevention. GC Expertise Tax Competition Law Corruption Prevention Sales Business Partner Integrity Due Diligence Whistleblowing System Consultation Risk Evaluation Integrity Employment law Environment Criminal Law Etc. Daimler AG, Group 9
Organizational Structure Group Group is set up along the divisional Daimler business model Chief Officer Divisional Office Trucks, Buses & Vans Divisional Office Financial Services Divisional Office MB Cars/Global Sales Group Program Regional Office Greater China Daimler AG, Group 10
CCO/P 05.07.2010 4 Fully embed into business by 2012 Investigation and Remediation Phase Program Build up Coverage and Scope Increase and Program Consolidation Embedding and Ethics fully in Business Ensure sustainable Daimler has moved from a reactive to a proactive mode to manage Anti-Corruption Topics Investigation activity Urgency measures Personel measures Remediation Who What When Focus on future Investigation Anti-Bribery TPA / FCPA Policy Review Review Initiatives Passende Folie Skadden WilmerHale Management / CA / PwC (US lawyer) (US lawyer) CCO / CA / PwC CCO aus 2007? Oil for Food Implementation of Investigation & SEC FCPA Investigation (Third Party Accounts) August 2004 - End of 2006 DAI anti-corruption policy review 2005 Identification of compliance gaps September 2005 December 2007 preventive measures December 2005 ongoing Sustainable Management / Implementation of sustainable compliance measures 2007 onwards Tone at the top Policies & Procedures Training & communication Internal Controls CCO establishment Massive external support Daimler Strategy agreed by BoM Coverage and scope increase initiated Efficiency measures initiated Phase out of external support completed Settlement achieved! Fully establish Business Ownership of Fully embed Business Ethics Daimler Leadership Culture Fulfill the settlement obligations CCO efficiently and effectively supports the above Keep on ensuring sustainable 2005 2007 2006 2008 2008 2010 2010 2012 2012 - Now Daimler AG, Group 11
1. Integrity 2. Overview of @ Daimler 3. International 4. Execution in operational business 5. Takeaways Daimler AG, Group 12
Daimler Financial Services Worldwide Network of Local Contacts CANADA USA SWITZERLAND UK AUSTRIA DENMARK SWEDEN BELGIUM NETHERLANDS ITALY SPAIN PORTUGAL FRANCE GERMANY LUXEMBOURG TURKEY RUSSIA ROMANIA SLOVENIA HUNGARY POLAND CZECH REPUBLIC SLOVAKIA CROATIA GREECE THAILAND TAIWAN SOUTH KOREA SINGAPORE MALAYSIA JAPAN INDIA HONG KONG CHINA Data and Facts: Countries: 40 Entities: 82 Local Contacts : 42 MEXICO BRAZIL ARGENTINA SOUTH AFRICA NEW ZEALAND AUSTRALIA Local Manager and Local Responsible serve as first points of contact for related issues Daimler AG, Group *as of Sept. 2013 13
Influence of external factors on Daimler Standards of Business Conduct Daimler s corporate policies and rules are created in response to the challenges which the company faces in the legal and social sphere. National Laws & Directives Daimler Corporate Culture Industry Practices/ competitors Company Values Integrity Code Expectations of Stakeholders Daimler Business Requirements Corporate Policies Corporate Guidelines Organizational Unit Guidelines Legal Entity Guidelines Location Guidelines International Standards such as OECD, Global Compact Daimler AG, Group 14
1. Integrity 2. Overview of @ Daimler 3. International 4. Execution in operational business 5. Takeaways Daimler AG, Group 15
Management System (CMS) VII. Monitoring & Improvement VI. Communication & Training V. Program I. Culture II. CMS Objectives III. Organization IV. Risks I. Awareness for the importance of rules and a culture of trust as the basis for the CMS as well as Tone at the Top II. III. IV. Definition of essential CMS-objectives based on the general corporate objectives (-Strategy) Determination of the processes and organizational structure, roles and responsibilities as well as the allocation of the required resources Identification of essential -Risks and implementation of a systematic approach for risk identification, reporting and risk-oriented mitigation V. Establishment of basic principles and measures for the mitigation of risks and prevention of misconduct VI. Information and Training of employees and, if applicable, third parties on the -Program VII. Monitoring and reporting of adequacy and effectiveness of the CMS and continuous improvement in case of weaknesses Objective of the implementation of a Management System is safeguarding the compliant behavior of legal representatives as well as employees of the company and, if applicable, third parties by establishing basic principles and measures within the company. Daimler AG, Group 16
Daimler Program Elements I. Culture VII. Monitoring & Improvement VI. Communication & Training II. CMS Objectives III. Organization V. Program IV. Risks Culture CMS Objectives* Organization Risks* Program Communication & Training Monitoring & Improvement* Tone at the Top HR Checks for Placement & Promotion Performance Validation Disciplinary Measures HR Welcome Package Daimler Strategy Group Mission Statement Independent global Organization incl.: Chief Group Officer Program department Divisional Officer Local Manager GC-internal Qualification as integral part of Daimler s business activities Risk Management Integrated Risk Assessment Risk-oriented Measure Set recommended by GC Business Practices Office Consultation Desk GC-Policies Integrity Management in Business Partner relations Sales Business Partner Due Diligence (DD) Supplier DD Contractual Safeguarding Mandatory Consultation Process Internal Controls Communication e.g. Intranet, Flyer (Business Partner brochure), Local communication, as appropriate Training Sensitization, Information and Empowerment Face to Face- Trainings and elearning Internal employees and business partners Monitoring Internal review of effectiveness of initiated measures based on e.g.: Performance Indicators State of Reports Employee Survey CA/CS- Reports Continuous improvement on the basis of lessons learnt Ethics & Integrity Including, e.g. Tone at the Top, Integrity Dialog, Integrity Code, fairplay campaign, fairplay for business partners * Activities with main focus on Group Level as well as the Integrated Risk Assessment are not part of the recommended Measure Set 2012 for entities. Daimler AG, Group 17
Challenges Along The Way 1 Homologation 3 Production Purchasing 5 Sales I 7 HR W555 Customer Government Suppliers Dealers Body Builders Local Authorities Government DAIMLER Mr. Approver General Distributors Work Permits Homologation Research & Development W555 Prototype Sales HR Start Finish 2 Accounting 4 Marketing 6 Sales II 8 Local 4a 4b W555 Product Launch Event W555 Golf Open Accounting W555 W555 Financial Services Dealers, customers, press, interested parties Meet & Greet Daimler AG, Group 18
: Assistance Systems for Safe Business Mandatory Consultation: The right distance to certain sales transactions Global LCM Network: Using the support available Due Diligence: Knowing who is on the street Business Practices Office: Blowing the whistle Training: Learning about risks ahead Internal Controls: Checking for road signs Daimler AG, Group 19
Do you really know your Business Partner? What should I know about my Business Partner? Daimler AG, Group 20
1. Integrity 2. Overview of @ Daimler 3. International 4. Execution in operational business 5. Takeaways Daimler AG, Group 21
Takeaways Tone of the Top Be Focused / Have a clear Compass of what means for the organization It s a Business Process more than a Staff Function Affected by the Environment / Be Flexible SMART rule: Specific, Measurable, Agreed upon, Realistic and Time based It s a long and not easy way... Daimler AG, Group 22
Daimler AG, Group Gracias por su atención!