CORPORATE GOVERNANCE AT ŠKODA AUTO

The area of ​​corporate governance represents a system to manage and supervise the company, while striving for management that is responsible, qualified, transparent and focused on the long-term success of the company and protection of the interests of relevant entities. Generally, it is a set of legal and executive methods and procedures that oblige a company to maintain a balanced relationship between itself and its employees. Corporate governance also defines the distribution of rights and responsibilities between relevant entities, such as shareholders, executive management, corporate bodies, employees and customers.

In the area of ​​ethical standards, ŠKODA AUTO adheres, among other things, to the relevant recommendations and rules of the Corporate Governance Code, based on OECD principles (hereinafter the Code). The aim is to further promote transparency and adherence to ethical behavior in the business environment through the continuous improvement of internal processes and procedures in accordance with the Code.

ŠKODA AUTO's own corporate culture and policy is based mainly on the principles defined in the ŠKODA AUTO Group Code of Conduct. The adopted Code of Conduct is based on generally accepted social values.

INTEGRITY

At ŠKODA AUTO, we believe that only honest and reliable conduct in accordance with the principles of integrity will enable us to gain and strengthen the trust of employees, customers, shareholders, business partners and the general public. Acting in accordance with the principles of integrity is therefore an integral part of the NEXT LEVEL - ŠKODA STRATEGY 2030 and is as important to ŠKODA AUTO as the quality of its products, financial goals and customer satisfaction.

One of the tools for raising awareness among ŠKODA AUTO employees and management about the topic of integrity and its importance for business activities is also the Together4Integrity program. This includes, among other things, initiatives that contribute to making society an example in acting in accordance with the principles of integrity. That integrity is one of the main principles of our business is also proven by the fact that it is one of the criteria for decision-making by the company's board of directors. All proposals submitted to the company's Board of Directors must therefore contain the opinion of the relevant department of the company on how the decision contributes to the fulfillment of the principles of integrity and compliance principles or whether there are potential risks associated with them.

You can find more information on integrity at the Volkswagen Group on the following page: https://www.volkswagenag.com/en/sustainability/integrity.html.

If you have any questions regarding the integrity topic you can contact us via e-mail: integrity@skoda-auto.cz

COMPLIANCE

ŠKODA AUTO is convinced that economic success is only sustainable if compliance with the rules is ensured, and therefore pays special attention to the obligation to comply with legal and internal regulations, ethical and other rules voluntarily adopted by the Volkswagen Group and ŠKODA AUTO. The compliance policy is not limited to business relationships, but applies to all activities inside and outside the company. With this approach, ŠKODA AUTO demonstrates that its conduct will comply with the requirements of legal and ethical rules applicable, inter alia, to competition, the financial and tax sectors, environmental protection and employment relations, including the provision of equal opportunities.

The Governance, Risk & Compliance department provides advice on all compliance issues and raises awareness of its importance among employees and third parties through appropriate measures. The following e-mail address serves for the needs of the mentioned consultancy: compliance@skoda-auto.cz

CODE OF CONDUCT AT ŠKODA AUTO GROUP

The Code of Conduct summarizes the basic principles of conduct of ŠKODA AUTO employees and serves as an aid in managing legal and ethical challenges. ŠKODA AUTO's reputation is a fundamental value that depends on the commitment of employees worldwide to act in accordance with the Code of Conduct and all applicable legal and internal regulations. The principles of conduct stated here have become an integral part of ŠKODA AUTO's corporate culture.

CODE OF CONDUCT AT ŠKODA AUTO GROUP (EN)
CODE OF CONDUCT AT ŠKODA AUTO GROUP (EN)
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ETICKÝ KODEX SKUPINY ŠKODA AUTO (CS)
ETICKÝ KODEX SKUPINY ŠKODA AUTO (CS)
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VERHALTENSGRUNDSÄTZE DER ŠKODA AUTO GRUPPE (DE)
VERHALTENSGRUNDSÄTZE DER ŠKODA AUTO GRUPPE (DE)
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CODE OF CONDUCT FOR BUSINESS PARTNERS (EN, DE)
CODE OF CONDUCT FOR BUSINESS PARTNERS (EN, DE)
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OUR WHISTLEBLOWER SYSTEM

Complying with statutory regulations and internal rules, and the principles laid down in the Code of Conduct at ŠKODA AUTO Group and the Code of Conduct for Business Partners, has top priority at ŠKODA AUTO. The success of our company is based on Integrity and Compliance. To meet these standards, it is important to learn of potential employee or supplier misconduct and to put a stop to it. Therefore, we entrusted the Central Investigation Office of the Volkswagen Group to operate an independent, impartial and confidential Whistleblower System on our behalf.

A key pillar of our Whistleblower System is the principle of procedural fairness. It also guarantees the greatest possible protection for whistleblowers, persons implicated and employees contributing to the investigation of reported misconduct.

This also includes offering opportunities for anonymous reporting and communication. We assure not to perform any steps in order to identify anonymous whistleblowers, who do not misuse our Whistleblower System. Retaliation of whistleblowers and all persons who contribute to investigations at ŠKODA AUTO will not be tolerated. Persons implicated are presumed innocent until the violation of applicable laws and/or internal regulations is proven. Investigations will be conducted with the utmost confidentiality. The information will be processed in a fair, fast and protected process.

How do we process your report?

The qualified and experienced colleagues at the Central Investigation Office of the Volkswagen Group examine every report for potential misconduct by a Volkswagen Group employees thoroughly and follow it up systematically. If you report potential misconduct, you will get a confirmation of receipt first. The Central Investigation Office of the Volkswagen Group then assesses your report. This includes gathering facts particularly from the whistleblower. Only if this initial evaluation shows grounds for suspicion of a violation an investigation by a dedicated Investigating Unit will be started. Afterwards, the results of the investigation will be assessed by the Central Investigation Office of the Volkswagen Group and appropriate measures will be recommended. Information about the status* and the outcome of the procedure will be given to you without undue delay.

Potential violations of the Code of Conduct for Business Partners by suppliers, including serious risks and violations of human rights and environment by direct and indirect suppliers, can also be reported to the Central Investigation Office of the Volkswagen Group - as well as reports requiring otherwise immediate action. The Central Investigation Office of the Volkswagen Group will inform the responsible departments, who will process the issue accordingly. This particularly includes taking the necessary measures to minimize or end violations and/or risks.

* The processing time varies depending on the subject of the procedure

Do you have any concern or feedback regarding a ŠKODA AUTO product or service?

If you have any from the customer’s point of view any questions, inquiries, feedback or complaints about the products or services provided by ŠKODA AUTO or its business partners (e.g. dealers, service partners), please contact the standard ŠKODA AUTO customer line via telephone number 800 600 000 or e-mail address infoline@skoda-auto.cz. Thank you for your understanding that our Whistleblower System is not primarily meant for questions or complaints of the customers.

Making a report to our Whistleblower System

The Whistleblower System offers various channels to report potential employee misconduct that allow a swift review and reaction by our company if necessary.

However, this does not affect the statutory right to contact other designated authorities in the Czech Republic.

  • Nonstop Hotline (availability 24x7)
    You can make a report at 365 days, 24 hours, using the international toll-free number: +800 444 46300.
    If your local telephone provider does not support the toll-free service, you can call the following chargeable number: +49 5361 946300.

  • Online Reporting Channel
    You have also the option of using a web-based communication platform to contact the Central Investigation Office of the Volkswagen Group in many languages. This system is confidential and technically secured.

    Even if your preferred language is not offered in the reporting channel, you can use any language to submit your report. You can also contact the Central Investigation Office of Volkswagen Group in any language via e-mail or mail.

  • Ombudspersons
    The Volkswagen Group has appointed external lawyers to act as Ombudspersons. They advise on the Whistleblower System. Also, the Ombudspersons ensure that, if the whistleblower desires, the reports are forwarded anonymously to the Central Investigation Office of the Volkswagen Group. If you want to get in contact with the Ombudsperson, you can find their contact details here:
    http://www.ombudsmen-of-volkswagen.com/

  • E-mail
    You can get in contact with the Central Investigation Office of the Volkswagen Group via e-mail io@volkswagen.de.

  • Central Investigation Office of the Volkswagen Group

    Postal address:
    Central Investigation Office
    Box 1717
    38436 Wolfsburg, Germany
    (The report can be sent in any language.)

    In person:
    Central Investigation Office
    Porschestraße 1
    38440 Wolfsburg (downtown), Germany
    (In such case, please make an appointment in advance via io@volkswagen.de).

Do you have further questions or do you need a local contact?

Questions or suggestions for improvement concerning the Whistleblower System can also be addressed to the Central Investigation Office of the Volkswagen Group. Furthermore, our local Compliance Officer at ŠKODA AUTO can also be addressed in all matters of the Whistleblower System for instance via the e-mail address compliance@skoda-auto.cz.

External Reporting Channel of the Czech Republic

With regard to applicable legislation of the Czech Republic, the designated authorities for external reporting channel have not been defined yet.

WHISTLEBLOWER SYSTEM (EN)
WHISTLEBLOWER SYSTEM (EN)
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SYSTÉM PRO ZPRACOVÁNÍ PODNĚTŮ VE SPOLEČNOSTI (CS)
SYSTÉM PRO ZPRACOVÁNÍ PODNĚTŮ VE SPOLEČNOSTI (CS)
pdf (255.2 KB)

RISK MANAGEMENT

It is crucial for the long-term success of ŠKODA AUTO that it is able to identify, anticipate and manage possible risks and opportunities arising from its activities in a timely manner. The risk management structure at ŠKODA AUTO is based on the unified risk management principle in the Volkswagen Group, which follows the internationally recognized COSO Enterprise Risk Management Framework standard.

The aim of the risk management system is to identify potential risks at an early stage so that the company can take appropriate countermeasures in a timely manner, prevent potential damage and eliminate any risks that could jeopardize its existence. As the probability and impact of future events are subject to a degree of uncertainty, even the best risk management system cannot anticipate all possible risks, just as the best internal control system cannot fully prevent unforeseen events. On the other hand, changes in the economic and legal environment can lead to opportunities that the company seeks to use to strengthen and further improve its competitive position.