Compliance with statutory provisions as well as the company's internal rules and regulations (Corporate Compliance) constitute a cast-iron framework within which our entrepreneurial activities develop. Supported by our risk management system, which is flanked by our internal control system, it is our aim to avoid contraventions of the law and so to safeguard the company against financial loss and against risks to its reputation.
In issuing a groupwide Code of Conduct, the Executive Board has given the employees a clear set of principles regulating conduct that they are to follow in carrying out their activities. This Code of Conduct includes in particular compliance with legislation and the law, commitment to fair competition and the rejection of corruption of any kind.
Corporate Compliance at Salzgitter AG is a task and an obligation incumbent on each individual employee of the Group in their own area of responsibility across all hierarchical levels. Our corporate guideline provides our employees with guidance for law-abiding conduct and for fulfilling their compliance duties. This guideline is supplemented by more detailed explanations and information applicable to particularly sensitive areas of the law, such as the guiding principles for the avoidance of corruption, conduct in respect of competitors, and on insider trading law. Confidential information on potential breaches of compliance can be reported to a central desk within the Group that our employees can also contact if they have specific questions and require further information.
Salzgitter AG's Executive Board meets its obligation to monitor compliance with statutory provisions and internal rules and regulations, especially the guidelines on corporate compliance, through regular control checks, supported by Internal Audit. Irrespective of these processes, the executive bodies of the subsidiaries and affiliated companies of the Salzgitter Group are required as part of their corporate responsibility to ensure that compliance duties are fulfilled and to take suitable measures to avoid any contravention of the law. Against this background, some Group companies, especially those with international operations, such as KHS GmbH and jointly held EUROPIPE GmbH, have defined codes of conduct and appointed compliance officers. Compliance training is carried out to raise the awareness of managers and employees regarding observance of statutory provisions, standards and internal rules and regulations, identifying potential hazards and recommending suitable courses of action. Examples of training in 2010 and 2011 include seminars dealing with the main issues concerning criminal law on corruption and antitrust law in the Trading Division, in the KHS Group and in the EUROPIPE Group.
We report once a year on compliance within the company in our Corporate Governance Report.