Corporate Governance practices applied in addition to statutory requirements
Code of Conduct and Volkswagen Group Essentials
The Code of Conduct lays out the shared underlying values for integrity and compliance in the Volkswagen Group for all brands and companies. It serves as the main tool for reinforcing awareness of responsible conduct and decision-making and can be used as an aid and as a way of finding the right contact persons. As part of the Code of Conduct, the Volkswagen Group Essentials define the shared underlying values across all of the Group’s brands and companies. They form the basis of the corporate culture and describe what the Volkswagen Group stands for around the world in all its brands and companies: We take on responsibility for the environment and society; we are honest and speak up when something is wrong; we break new ground; we live diversity; we are proud of the work we do; we not me; we keep our word.
Ethics, compliance and risk management
To foster trust in our Company as well as our products, services and innovations, it is essential that we act honestly and with integrity at all times. In all lines of work and all functions we therefore invariably make decisions that are in line with our corporate values, applicable national and international legislation, regulations and in-house voluntary commitments. This includes the following areas:
- Integrity and compliance
Adherence to statutory provisions, internal company policies, ethical principles and our own values in order to protect the Company and its brands. - Anti-corruption
The Volkswagen Group has a zero-tolerance policy on active and passive corruption. This is anchored in both the Group’s internal Code of Conduct and its Code of Conduct for Business Partners. - Risk management and internal control system
A comprehensive risk management and internal control system (RMS/ICS) helps the Volkswagen Group deal with risks in a responsible manner. The organizational design of the Volkswagen Group’s RMS/ICS is based on the internationally recognized COSO framework for enterprise risk management (COSO: Committee of Sponsoring Organizations of the Treadway Commission) and can be accessed on the COSO website. Uniform Group principles are used as the basis for managing risks in a transparent and appropriate manner. - Whistleblower system
The whistleblower system is the central point of contact for reporting cases of rule-breaking by employees of the Volkswagen Group or by suppliers. Employees, business partners and other third parties can report misconduct at any time and in many languages. A wide range of channels is available for this purpose, and the information can be lodged completely anonymously, if preferred. An investigation is only initiated after a thorough review and in the event of concrete indications of rule-breaking. Appropriate sanctions are applied where misconduct is proven. The overarching aim is to use binding principles and a clearly governed process to avert damage to the Company and its employees. - Human rights
Volkswagen fully recognizes key international conventions and declarations, particularly the International Bill of Human Rights and the Fundamental Conventions of the International Labour Organization (ILO). We align our business activities with the United Nations Guiding Principles on Business and Human Rights (UN Global Compact), which represent crucial pillars for our actions. - Diversity and inclusion
The commitment to diversity and inclusion is one of the essential foundations of the Company’s economic success. We are convinced of the innovative power of diverse mindsets and backgrounds. This is the reason why we consistently promote diversity and are committed to ensuring an inclusive culture at all levels, in all areas and in all processes.
Voluntary commitments and principles
The Volkswagen Group has committed itself to sustainable, transparent and responsible corporate governance.
We align our activities with the principles, recommendations and suggestions of the German Corporate Governance Code. We coordinate our sustainability activities across the entire Group and have put in place a forward-looking system of risk management and a clear framework for dealing with environmental issues in a future-oriented manner, for employee responsibility and for social commitment across our brands and in the regions in which we operate.
Voluntary commitments and principles that apply across the Group are the basis and backbone of our sustainability management. These documents are publicly accessible on the Volkswagen Group’s website in the section entitled “Sustainability.”
You can also find a description of the Company’s business model and strategy in the “Goals and Strategies”, “Structure and Business Activities” chapters of the Group management report and in the Sustainability Report. In the Sustainability Report, we describe in particular the role of the management and supervisory bodies with regard to sustainability matters, and of their knowledge, skills, and professional experience in relation to fulfilling that role or their access to such expertise.