Strong stance on anti-corruption

Strong stance on anti-corruption

Scania has zero tolerance for corruption and bribery, and the first priority is to ensure the company is in compliance with all relevant laws and regulations wherever Scania does business. As a signatory to the UN Global Compact, Scania adheres to its ten principles, including anti-corruption.

Scania’s manuals on Corporate Governance and How Scania is Managed provide clear guidance on topics such as gifts, entertainment, contracts and working with agents. To engage employees around potential ethical dilemmas and give further guidance, Scania provides e-learning around a range of business scenarios, described in the employee guide, ‘Doing things right’. The e-learning is since 2017 compulsory for all Scania employees. The Executive Board carries ultimate responsibility for anti-corruption at Scania.

Assessing risk

Scania assesses bribery and corruption risk carefully using assessments from Transparency International among others.

Group Internal Audit follows the risk assessment approach outlined by the Committee of Sponsoring Organizations of the Treadway Commission. This is a joint initiative of five private-sector organisations dedicated to providing thought leadership and guidance on enterprise risk management.

In at-risk countries, Scania ensures that either the chief financial officer or the managing director of the local business unit is a carrier of Scania values, typically due to having years of experience working with Scania in Sweden. The company avoid “tandem relocations” of a managing director and chief financial officer partnership to avert the possibility of complicity.

Local responsibility

Local management is responsible for ensuring employees’ understanding of ethical business practices. The local board checks that all contracts with agents are formal. The company’s controllers are aware of all big contracts such as significant bus sales to a municipality. Payments to agents must be accurately documented, with a written contract specifying services carried out and the corresponding compensation.

The standard audit process starts with assessing, planning, scoping and fieldwork and continues with reporting and follow-up. In at-risk countries, auditors interview local management about how they approach and address business ethics issues. Based on the auditor’s report, local business units develop action plans to correct any deviations identified.

Scania carries out corruption awareness audits within Global Purchasing. Following a risk assessment, these will become standard for at-risk countries. Audits in at-risk countries will include a strong anti-corruption focus.

Whistle blowing

Everyone at Scania has access to the Volkswagen Group’s whistle-blowing procedures. In addition, Scania has its own established channels for reporting on suspicions of non- compliances. These channels are available to the entire organisation through the global intranet.