Standards and Compliance

Sika is pursuing a holistic approach to compliance, and its compliance management system involves the whole organization throughout hierarchies, functions, and geographical areas. The Sika compliance management system aims to ensure that governance, risk management, and other structures and processes within the Group are not only compliant with regulatory requirements, but also as effective as possible within the organization to mitigate risks and prevent financial losses.

STRENGTHENING OF THE SIKA COMPLIANCE ORGANIZATION: In 2017, Sika continued to strengthen and train the Sika Compliance Organization. Sika held several Compliance Meetings, attended by the four Regional Compliance Officers.

GLOBAL AWARENESS-RAISING CAMPAIGN ON COMPLIANCE: In 2017, as part of the internal Global Awarenes Raising Campaign on Compliance, Sika continued in the joint roll-out of thenew digital e-learning module on the company’s Code of Conduct and the new internal web-based reporting system for serious misconducts (“Sika Trust Line”), covering an additional 25 countries and training more than 5,000 employees in the different regions. In 2017 two alleged cases for minor misconduct (1 HR and 1 conflict of interest) were submitted through the SikaTrust Line. There has been no case of abuse or misuse of the new reporting platform.

CODE OF CONDUCT: In 2017, Sika has increased the number of languages in which the Code of Conduct is available from 26 to 32. All 32 Code of Conduct official translations are available and accessible internally on the Corporate Policies and Manuals page on SikaConnect (internal collaboration platform) and SikaWorld (intranet).

COMPLIANCE CONFIRMATION, COMMITMENT AND CHECKLIST 2018 (COMPLIANCE AUDITS): General Managers of all Sika companies confirm for each fiscal year compliance of the corresponding Sika Company with the Code of Conduct principles, including information to and training of all staff. This annual confirmation allows Sika to receive assurance that the business had been conducted throughout the organization in compliance with the Code of Conduct principles, with particular focus on the following specific topics: Environment, Anti-corruption, Anti-trust and Human Rights Assessments. General Managers have also renewed in 2017 their commitment to lead with integrity by signing a “Compliance Commitment”. All Sika Senior Managers have signed the Compliance Commitment 2018-2019.

TRAININGS: More than 220 managers have been trained. With regard to compliance training, Sika continues to align the content of the Sika Business School to enhance ethical leadership. In 2017, trainings and presentations on regional and local levelinformed about the importance of the Code of Conduct, an introduction on the new compliance organization, and the maintools available to support management in mitigating risks.

Inspections and Audits

Inspections and audits are core elements of Sika’s comprehensive management system. They provide management at Group, regional, and local company level with a regular, independent assessment on whether activities in scope comply with official requirements, as well as with Sika’s own internal guidelines, principles, and risk management specifications. The inspections and audits there by ensure the effectiveness of the relevant processes and controls at Sika.

Audits are performed by various assurance functions across the group covering quality, environment, safety, health, risk, technology, application, legal and compliance, branding, IT security, suppliers, and products. The results and subsequent corrective actions of these audits are regularly presented to the Group Management. Besides those assurance functions, an independent Corporate Internal Audit function, reporting to the Audit Committee of the Board of Directors, validates the effectiveness of internal controls in both legal entity audits and reviews of group processes and functions. In total, Sika conducted 117 audits in 2017 and implemented associated improvements wherever necessary.To ensure that suppliers also meet the official requirements and labor standards, they are required to perform self-assessments.

Sika conducts supplier audits themselves. In 2017, all new suppliers were assessed according to the new vendor evaluation process.To improve supplier qualification, Sika trains sales teams in planning and performing supplier audits themselves. Most of these inspections are overseen by safety, quality, or technology experts. This makes it possible to work on improvements together with the suppliers, including improvements in sustainability. As a supplier to major customers – particularly from the automotive and industrial sectors – Sika is itself often subject to external audits. These audits are designed to ensure compliance with international labor standards and prescribed quality, environment, safety, and health criteria.