|Topics||Key performance indicator||Target||Outcome 2019||Outcome 2018||Outcome 2017||Outcome 2016||Status1|
|Business ethics||Number of legal proceedings (human rights, corruption, environment)||0 legal proceedings||0||0||0||0|
|Share of employees getting Code of Conduct training2,3||100%||74%||33%||77%||73%|
|Share of employees that have confirmed in writing that they have read and understood the Code of Conduct2,4||100%||74%||n/a||n/a||n/a|
1 On-going – excellent progress or target achieved On-going – on track On-going – not on track
2 The Code of Conduct covers environmental, health and safety, human rights and anti-corruption and bribery matters
3 Employees that have received Code of Conduct training during the last two years are included
4 New KPI since 2019
Highest ethical standards
It is vital that our customers, investors, employees, suppliers and other stakeholders trust that we conduct business in an ethical, transparent and lawful manner. Everything we do has an impact. This is why we make sure that day-to-day decisions are based on doing business properly and with integrity. This supports us in maintaining long-term relationships with our stakeholders.
Our Code of Conduct, with its focus on helping our employees make the right decisions, guides us in our daily work. The Code covers areas such as compliance with laws and policies, creation of safe, healthy workplaces, and our conduct as a responsible corporate citizen.
Cramo has also established a specific Code of Conduct for suppliers, since we encourage our business partners to adhere to similar high ethical standards. Cramo prioritises long-term collaboration with suppliers. Most of our machinery and equipment is purchased from suppliers in Europe, the US and Japan.
Transparent communication and anchoring
Our ethical guidelines are systematically communicated and anchored throughout the organisation. We train our employees in our values and strengthen our corporate culture with the objective of excelling in customer satisfaction. The Code of Conduct is translated into local languages and communicated to all our employees. It is also part of the onboarding process.
In 2019, a mandatory e-learning unit to support the implementation of our Code of Conduct was introduced to all Cramo employees. By the end of 2019, 74% of the employees had completed the e-learning and confirmed that they had read and understood the Code.
In 2019, we also launched Shape and Share – The Game. This entertaining game not only engages employees and management, it also facilitates discussions about ethical dilemmas and how to deal with them. During the year it had been played by the Group Management Team as well as local management teams and employees within administrative functions and in our operational organisation.
Following up on our Code of Conduct
Internal audits are conducted on a regular basis within Cramo and are an important tool for assessing the implementation of our Code of Conduct. The audits help us accomplish our objectives by bringing a systematic, disciplined approach to evaluating and improving the effectiveness of the risk management, control and governance processes. Internal auditing is an independent assurance and consulting activity, designed to add value and improve our operations. It protects and enhances our values by providing risk-based and objective assurance, advice and insight.
Our whistleblowing mechanism provides a way for all our employees to report suspicions of misconduct, that is, actions that do not align with our company values and that may harm individuals, the company or the environment. The system is provided by an external party, ensuring full anonymity for the whistleblower.
Any concern or issue reported by a whistleblower is treated seriously, fairly and promptly. Possible investigations are carried out in a discreet, confidential manner by the Vice President of Sustainability and the Director of Internal Audits. Possible investigations do not affect a whistleblower’s employment status.
The number of cases reported through our whistleblowing system increased in 2019, from five cases in 2018 to eight cases. All cases were investigated, and the appropriate actions were taken. No case resulted in legal action.
The increase in whistleblowing cases indicates greater awareness among our employees regarding the importance of reporting suspicions of misconduct. Our whistleblowing channel is an early warning system to reduce risks, and it’s an important tool for safeguarding high corporate governance standards and maintaining a high level of confidence in our operations. It is important that our employees know about its existence and how and when to use it.
Except for the cases reported through the whistleblowing system, there was one case of fraud reported in Cramo’s operations in 2019. The case was investigated by the company, which took actions, and was also reported to the legal authorities.
Cramo as a taxpayer
Cramo is committed to compliance with all applicable tax laws, rules and regulations in every jurisdiction it conducts business activities in. By creating jobs and paying taxes, we contribute to a functioning society in all countries we operate in.
Our operations create added value through taxes to society in 11 countries: Finland, Sweden, Norway, Estonia, Lithuania, Poland, Germany, Austria, Hungary, Czech Republic and Slovakia.
In 2019, Cramo paid EUR 72.1 (106.1; 2018) million in taxes to governments in countries that the Group has operations in. Our main tax payments are corporate income tax and value-added tax (VAT). A total of EUR 11.2 (20.0; 2018) million was paid in corporate income tax and EUR 61.0 (86.1 in 2018) million was paid in VAT (net).
Cramo follows international transfer pricing guidelines and local laws. Business-driven decisions are made taking relevant tax considerations into account. VAT is reported on a net basis, which is VAT on sales, less VAT on purchases and investments.
Cramo contributes to social sustainability
Being a responsible corporate citizen is a long-term commitment for us. At the Group level, we have been a main sponsor of SOS Children’s Villages since 2008. Over the years, we have contributed some 760,000 euros to their work in Ukraine, Russia, Latvia and Estonia. Our commitment involves providing financial support, marketing and sales expertise, and access to Cramo’s business network, with the intention of facilitating the long-term operations of SOS Children’s Villages and further collaboration with the Baltic business community.
Running high-quality social care operations in the Children’s Villages is resource-intensive. Over the past decade, support from Cramo has helped to ensure that over 200 children and adults have had access to everything from family-strengthening programmes to a loving home in a children's village. The family-strengthening programmes are tailored to each family’s specific situation and needs, which may involve, for instance, psychological support, microloans or aid in the form of treatment, medicine and education.
Cramo’s support in 2019 has helped to ensure for example that:
- Lunch and dinner have been provided to 15 children in one Children’s Village
- 26 children and adults have received support through the family-strengthening programmes for one year
With this support long-term sustainable societies are created that are based on children and adults receiving loving care, education and support, completely in line with our Cramo Care sustainability strategy.
In addition to our support for SOS Children’s Villages, Cramo also supports several local community involvement initiatives in the different markets where we operate.
In 2020, we will continue to have a strong focus on business ethics. We will further improve our business ethics compliance procedures, and we will also further develop our approach to community involvement.