Compliance at SWM companies

We take decisions with the requisite diligence.

Decisions in the company are taken with the necessary requisite diligence. This means that decisions shall be prepared properly, taking account of all relevant decisionmaking options and their implications. Decisions shall be geared to the benefit of the SWM companies and shall not be determined by inappropriate influences and special interests.

In the preparation of decisions, all requisite information on the relevant aspects shall be obtained, suitable involvement of all relevant internal functions or contacts shall be ensured, and their professional opinions shall be taken into account.

We act in the interest and for the benefit of the SWM companies.

All employees gear their actions to the interests and benefit of the SWM companies. The interests of the SWM companies take precedence over the interests of individual companies, business or organisational units. Favouring individual units at the expense of others is permissible only if this is beneficial for the SWM companies as a whole. Decisions regarding the economic efficiency of measures that affect other organisational units must also take the relevant follow-up costs for the other organisational units into account. In addition, we are duty bound to our owner, the state capital of Munich. We honour and respect democratic and municipal decisions and decision-making processes. We consider the interests of the state capital of Munich.

We avoid conflicts of interest.

Employees’ private interests shall be separated from the company’s interests in order to avoid potential conflicts of interest. Such conflicts arise when employees pursue their own activities or personal interests to the detriment of the interests of the SWM companies. Employees shall disclose all personal interests that might relate to the performance of their professional tasks to their line manager in writing. Conflicts of interest can arise not only when personal interests are affected. The interests of relatives or other affiliated persons shall also be taken into account.

Work/private life balance and the assertion of employee rights arising from the law, collective-bargaining agreements, works agreements or employment contracts remain unaffected by this. In particular, the following regulations shall be observed.

We adhere to the duty of confidentiality.

Employees are obliged to maintain secrecy regarding all SWM companies’ matters of a confidential nature and regarding all confidential information from or relating to our business partners and customers. Information is confidential if it is marked as such or if it may be assumed to be outside the public domain and not intended to be made public, e.g. because it might be of use to competitors or potential suppliers or harm the SWM companies if it were published. Only explicitly authorised individuals are allowed to communicate information relating to the SWM companies or their business partners to the public or third parties. In case of doubt, internal information shall always be treated confidentially in dealings with third parties. The details are laid down in the DR01 implementation guideline of the Data Protection and Information Security Manual.

We pursue a transparent and verifiable approach to donations and sponsorship.

The SWM companies also show their commitment through sponsorship activities and donations on a limited scale. The following principles shall be observed in this context.

The awarding of a donation shall be transparent and documented. Donations shall be made only on a voluntary basis and without expectation of a service in return. They may be made only to institutions for the promotion of education and science, art and culture and to social causes and other recognised charities. Donations to political parties are not permitted.

Sponsorship is based on the principle of performance and consideration and presupposes actions characterised by responsibility, appropriateness and transparency. Sponsorship activities may be pursued only for bona fide business purposes, shall be in reasonable proportion to the counter-performance granted by the recipient and laid down in a written agreement. Sponsorship shall not create the impression that undue influence is being exerted on the recipient with respect to negotiations or decisions.

We collect, process and use personal data only if permitted.

Employees shall be obliged to comply with the applicable data protection regulations. Personal data may be collected, processed and used only insofar as this is necessary for clearly defined and legitimate purposes. In addition, personal data shall be stored securely and be passed on only if the necessary precautionary measures are taken. The use of data shall be transparent to the persons affected. Their rights shall be safeguarded.

We do not tolerate corruption or other unfair business practices.

The SWM companies do not tolerate corruption or other unfair business practices. Both giving and accepting benefits with a view to influencing decisions is prohibited and subject to penalties. In dealing with business partners 6 and competitors 7 as well as public authorities, employees may accept or grant benefits only if it can be ruled out that such action may create the impression that decisions have been influenced as a result. Details are regulated in the guideline governing the handling of benefits.

We compete fairly and comply with the applicable legislation.

The SWM companies compete fairly and comply with the applicable legislation. Violations may lead to severe penalties for the SWM companies and the individuals involved. Heavy fines can be imposed on companies. In addition, high compensation payments may be stipulated in the context of civil action.

All business transactions are conducted in compliance with the applicable anti-trust legislation. In particular, unacceptable behaviour includes express or tacit formal or informal collusion, agreements, coordination or exchange of information with competitors about aspects relevant to competition such as prices, pricing, price components and other terms and conditions, market, customer or territory allocation, orders and order intake, capacities, output volumes and production quotas and future market behaviour.

Anti-trust regulations dealing with further anti-competitive actions and conduct, such as vertical restrictions of competition or abuse of a dominant position, are very complex. For this reason, the Legal Department shall be consulted in advance if an agreement might entail any form of restriction of competition.

We use the assets and property of the SWM companies for business purposes only.

The business assets and property of the SWM companies such as vehicles, tools, spare parts, office supplies, documents, computers, printers, copiers and data storage devices may be used for business purposes only and shall not be removed from the company‘s premises unless otherwise laid down in internal SWM policies. Employees are obliged to protect the property of the SWM companies against loss, theft and misuse.

We assume responsibility for compliance with laws and regulations.

All employees are personally responsible for compliance with rules and regulations in their areas of responsibility. Expert advice shall be obtained if doubts arise with respect to their own or another individual‘s behaviour.

All managers are role models and shall align their actions particularly to the principles laid down in this Code of Conduct. They promote compliance with rules and regulations on the part of their employees by providing regular information and training with respect to the duties and powers relevant to their line of work. Within the framework of their leadership tasks, managers take precautions to prevent unacceptable behaviour. In their respective sphere of responsibility, managers are responsible for preventing violations of rules that might have been averted or impeded through proper organisation or supervision. In the event of violations, they implement the measures required in the case in question.

We respect the law.

Laws, regulations and comparable instruments as well as internal regulations apply to the SWM companies and their employees in all areas of their business activities. The SWM companies are committed to unqualified compliance with legal requirements. Employees are obliged to observe all laws applicable to their areas of responsibility as well as external and internal guidelines.