Disclosure 103-1: Explanation of the material topic and its Boundary

Sika’s approach to anti-competitive behavior is based on the Code of Conduct, which requires the company and all employees to act fairly in the market both vis-à-vis customers and suppliers, and in accordance with applicable cartel and antitrust laws.

The Code of Conduct - Fair Competition – clearly states the following:

  • Act performance oriented and fair in the market both vis-à-vis customers and suppliers.
  • Do not discuss, agree or cooperate in any form with competitors on strategies, prices, markets, customers, products, production, or other market-sensitive aspects.
  • Do not agree with Sika’s customers on their resale prices.
  • Pre-check any sensitive obligation (e.g. exclusivity, non-compete, joint ventures) with Corporate Legal or a local legal adviser.
  • Do not abuse a market-dominant position.

We expect full compliance with applicable cartel and antitrust laws. This especially regards any kind of discussion or agreement with competitors on price- or other market sensitive aspects. Special attention must be given to informal gatherings, conferences, trade shows, and meetings of trade associations or in discussions involving possible acquisition opportunities. To the extent contacts with competitors are permitted, they must as a principle be managed by a member of Sika’s Senior Management.

Disclosure 103-2: The management approach and its components

In order to support General Managers to fulfil their compliance duties, a "Compliance Checklist 2017" has been developed and distributed. The checklist contains minimum requirements and best practices to minimize compliance risks. It is a tool for General Managers to measure compliance of their companies with Sika’s Code of Conduct, monitor identified risks, prevent and detect misconduct, and plan corrective actions. The checklist will be regularly reviewed and improved to make it as effective as possible.

Disclosure 103-3: Evaluation of the management approach

Sika evaluates its management approach through:

  • Monitoring: Sika investigates reported cases of anti-competitive behavior and any corrective action to be taken according to a defined incident response process (see below). Confirmed cases and actions taken are followed up by the Compliance function and reported annually to the Audit Committee of the Board of Directors. Management approaches are adapted accordingly.-    
  • Evaluation of results from audits: Group Audit results are implemented in the management system and regular follow-up reports are presented to monitor improvements.-    
  • Investigations: Internal Audit conducts audits on a regular basis and in case of suspected anti-competitive behavior. All reports of potential anti-competitive behavior within Sika are investigated and properly followed up according to applicable laws. A standard incident reporting and response process has been developed to provide guidance to Sika’s management on the procedures to be followed in case a criminal act or a material misconduct is suspected or detected. Highly sensitive incidents and criminal acts, such as anti-competitive behavior cases, must be reported and escalated to the Group Compliance Officer irrespective of the source. Corruption reports generated via the Sika TrustLine are automatically forwarded to the Group Compliance Officer who shall conduct and/or supervise the investigation process.
  • Overview of compliance cases: Sika’s Group Compliance Officer regularly reports to the Audit Committee of the Board of the Board of Directors about known compliance cases and corrective action taken.
  • General Managers’ briefings: General Managers are regularly instructed and briefed about anti-competitive behavior requirements in the companies. The latest briefing took place at the Area Meeting Africa in October 2016 attended by 18 General Managers responsible for national subsidiaries operating on the African continent.

 

Sika monitors and evaluates the effectiveness of its management approach according to target achievement. The management approach has been reviewed and adapted accordingly.