Governance and organization
The Board of Management and the Executive Committee are responsible for an effective compliance management framework across all AkzoNobel group entities, and for maintaining a culture of integrity which supports long-term value creation. The Audit Committee supervises this responsibility on behalf of the Supervisory Board.
The Executive Committee has appointed a Corporate Compliance Committee (see Committees), Human Rights Committee, Privacy Committee and Life-Saving Rules Committee consisting of senior leaders from different disciplines, including business representatives that monitor and assess the frameworks for which they are responsible. Their composition and responsibilities are explained on our website. In 2018, the Sensitive Country Committee was integrated into the Corporate Compliance Committee.
Risk, Compliance and Control Committee
Introduced in 2018, every business unit and major function has a Risk, Compliance and Control Committee. This committee consists of the managing director, finance director, human resources director and representation from Compliance, Internal Control and Internal Audit. These committees meet four times per year and review the compliance and control risks, deficiencies and actions.
The introduction of this new process means that the Quarterly Attestation, Compliance Committee and Internal Audit meetings have been integrated. This enables business and functional leadership to get a better view of all compliance and control risks and actions, as well as enabling prioritization across Compliance, Internal Control and Audit findings and cross-fertilization between those functions.
The Compliance function:
- Hosts the Codes of Conduct and Directives Portal
- Develops and communicates rules and guidance
- Manages compliance training programs
- Facilitates risk assessments
- Performs compliance due diligence
- Manages investigations
- Facilitates compliance self-assessment
- Reports on compliance to senior leadership
Its legal experts in the field of competition law, export control, anti-bribery, privacy and human rights provide legal advice, training and support. Its Compliance Managers support the business and functional leaders in managing the day-to-day compliance operations.
In 2018, the compliance resources were streamlined to better suit our transformation into a more focused paints and coatings company.
The effectiveness of the compliance framework is audited by the Internal Audit function. Following investigations, Internal Audit may also be engaged to conduct additional reviews to establish root cause analysis.