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Henkel is strongly committed to corporate governance and corporate compliance on both a local and global level. Responsible management processes as well as to comply with many different legal requirements and cultural conventions are a cornerstone to be successful in our international markets.
As a company that strives to operate ethically in all our activities, our image and reputation is inseparable from the appropriate conduct of each of its employees. Henkel employees are expected to respect laws and standards, avoid conflicts of interest, and show consideration and appreciation for local customs, traditions, and social behaviors of the various countries and cultures in which Henkel conducts business. Henkel does not take ethical shortcuts. Improper conduct is never in Henkel’s interest and violations are not tolerated. Compliance is an integral component of Henkel’s business processes.
The Management Board bears the overall responsibility for the compliance organization. Henkel’s compliance organization ensures global compliance with laws and internal standards. Under the direction of the globally responsible General Counsel & Chief Compliance Officer (CCO), Henkel has established a group-wide Compliance organization with a central Corporate Compliance Office as well as local and regional Compliance Officers. The CCO is supported by an interdisciplinary Compliance & Risk Committee (CRC) and by various members of Henkel’s functions and businesses. Different tasks and responsibilities are clearly defined.
The compliance organization acts at the three levels: “Prevention,” “Detection” and “Reaction.” It manages group-wide compliance activities, coordinates training courses, oversees fulfillment of both internal and external regulations, and supports the development and implementation of globally binding internal standards.
Compliance topics are regularly reported, discussed, and aligned with the Management Board, the Audit Committee of the Supervisory Board, the Shareholders’ Committee, and multiple other bodies on corporate and local levels.
Corporate Audit’s purpose is to independently & objectively evaluate and improve Henkel’s governance, processes and controls.
Regular audits at our production and administration sites and, increasingly, at our subcontractors and logistics centers to verify compliance with our codes and standards are carried out. The audits are our key instrument for identifying risks and potential improvements. Worldwide audits in the areas of purchasing, sales, marketing, finance, IT, human resources, supply chain, operations as well as in safety, health and environment (SHE) are conducted.