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)
pdf (955.2 KB)
ETICKÝ KODEX SKUPINY ŠKODA AUTO (CS)
ETICKÝ KODEX SKUPINY ŠKODA AUTO (CS)
pdf (977.1 KB)
VERHALTENSGRUNDSÄTZE DER ŠKODA AUTO GRUPPE (DE)
VERHALTENSGRUNDSÄTZE DER ŠKODA AUTO GRUPPE (DE)
pdf (966.3 KB)
CODE OF CONDUCT FOR BUSINESS PARTNERS (EN, DE)
CODE OF CONDUCT FOR BUSINESS PARTNERS (EN, DE)
pdf (2.8 MB)

WHISTLEBLOWER SYSTEM

Complying with statutory regulations and internal rules has top priority at WV Group and its companies. The Whistleblower system offers a discreet and reliable opportunity to report the violation of applicable laws or internal regulations at the company especially to its employees, but also to the business partners and other persons who has a concrete suspicion of such behaviour. The Whistleblower System acts according to the principles of protection, fairness, trust. These principles apply equally to whistleblowers and those affected. The aim of the Whistleblower System is primarily to avoid possible damages that might affect our company, our employees and business partners in case of regulatory violations.

Handling of the reports at the company follows the below listed principles:

  • The whistleblower can submit the report at any time and in any language.
  • The whistleblower can choose from various options for submitting the report (see below).
  • The whistleblower can submit the report anonymously or give his/her name.
  • Strict confidentiality is maintained throughout the entire process of report handling („need to know“ principle).
  • An investigation will be initiated only after the facts stated in the hint are taken into account and the reasonable suspicion of a rule violation is carefully assessed.
  • Reports are investigated fairly, quickly, and in a sensitive manner.
  • The person, who submits the report, has the right of the protection of the whistleblower on the part of the company according to the relevant internal guideline.
  • Affected persons are treated fairly and presumed innocent as long as a rule violation is not confirmed.
  • A Serious Regulatory Violation is an action that significantly affects the interests of the Volkswagen Group or one of its companies, in particular interests of reputation or financial interests, or that significantly violate the ethical values of the Volkswagen Group.
  • Management employees are obliged to report any suspicion of a Serious Regulatory Violation immediately to the relevant offices.
  • The abuse of the Whistleblower System will not be tolerated and is considered as a Serious Regulatory Violation.

The following options are available to the whistleblowers for submitting their reports (at any time and in any language):

  • Personally - to Central Investigation Office Volkswagen* Central Investigation Office (K-ICW) Porschestraße 1, 384 40 Wolfsburg (centrum), Germany
  • By post - to Central Investigation Office Box 1717 38436 Wolfsburg (downtown), Germany
  • By telephone - toll-free number +800 444 46300 (availability 24x7 incl. the possibility to communicate in Czech)**
    If your local telephone provider does not support the toll-free service, you can call the following chargeable number +49 5361 946300 (not a toll-free number).
  • By e-mail address - io@volkswagen.de
  • By secure online reporting channel - https://www.bkms-system.com/bkwebanon/report/clientInfo?cin=22vwgroup16
  • By contacting the Ombudspersons (external lawyers)

    The Ombudspersons are external neutral lawyers appointed by the Volkswagen Group and are available to the whistleblowers for accepting the concerns.
    The services of Ombudspersons are available in different languages, incl. Czech.
    The Ombudsman as a lawyer is the subject to the duty of confidentiality and therefore hands over only the information, which the whistleblower wants to hand over to the Central Investigation Office.
    The identity of a whistleblower is handed over by the Ombudsman only if the reporter explicitly requests so. The Ombudsman never investigates the reports by himself, he only examines the reports with respect to their legitimacy and credibility.

    You will find the contact details of the Ombudspersons on the following websites:

    ENGLISH: https://www.ombudsmen-of-volkswagen.com/
    DEUTSCH: https://www.ombudsleute-der-volkswagen-ag.de/

You will find further information regarding the Central Whistleblower System at VW Group: https://www.volkswagenag.com/en/group/compliance-and-risk-management/whistleblowersystem.html


*) In such case please write to e-mail address io@volkswagen.de in advance in order to arrange a meeting.
**) If there occur technical problems with the availability of the hotline, please use the other listed reporting channels to report your concern to the Investigation Office.

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.