Focus on: Business ethics

Application of sound business ethics

In accordance with the principles of Nolato’s Code of Conduct and the tenth principle of the Global Compact, our business principles should be characterised by integrity and responsibility.

Our Code of Conduct states that:

  • Nolato does not offer gifts, benefits or payments that could influence, or be regarded as influencing, the objectivity of the recipients’ decisions or that breach legislation and/or local practice.
  • Nolato avoids situations in which company loyalty could come into conflict with personal interests.
  • Nolato complies with competition law and promotes fair competition.
  • Nolato ensures that all staff can raise concerns about irregularities within the company without the risk of personal consequences for whistleblowers.
For a global company, these matters are complex and the perception of normal business principles varies between countries and cultures. The Group uses the following methods for governance and monitoring of the application of sound business ethics:
  • Nolato’s Code of Conduct applies to all employees and Group company management teams are responsible for conveying the values in their organisation.
  • We monitor costs, expenditure and revenues on an ongoing basis.
  • We pay particular attention to ethical issues in our relationships with our partners. Standard business practice must be observed in each individual country, but if business principles do not comply with Nolato’s Code of Conduct, we must refrain from doing business or take alternative relevant actions.
  • Using the Global Compact checklists, we conduct annual evaluations of what measures companies take to counteract bribery.
  • They have established detailed policies and guidelines covering gifts, entertainment and expenses. Several companies report that they expanded their activities in relation to suppliers during the year.
  • A whistleblowing system is activated in the Group, giving employees the opportunity to confidentially report serious irregularities.

 

Interaction with customers and suppliers

Nolato’s customers operate in industries in which issues regarding the environment, health and safety and ethics have a high priority. This applies to sectors such as automotive, the food industry, telecom and pharmaceuticals and we note that requirements on suppliers are increasing and monitoring is becoming increasingly effective. We monitor developments and customer requirements are making a constructive contribution to the development of Nolato’s sustainability work.

In addition to review systems, some customers have established systems under which suppliers qualify for sustainable development certification. One example is Sony Green Partner, for which Nolato in China and Malaysia have qualified.

As part of these requirements from customers, Nolato is expected to pass corresponding requirements along its supply chain. This is done by informing suppliers about Nolato’s Code of Conduct and specification requirements, as well as different types of monitoring.

Assessments of suppliers’ sustainability measures are extensive and time-consuming. We therefore apply a risk-based model for selecting suppliers for review. The detailed criteria for which suppliers are selected varies among the Group’s companies, but it is usually new suppliers, key suppliers, or suppliers with particular risks that are selected for follow-up. A substantial proportion of Nolato’s suppliers consist of global groups in the polymer and chemical industry. These types of companies often conduct transparent sustainability activities and the risks are consequently considered to be low. We therefore do not carry out detailed assessments of such companies.

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