Creating and upholding values
As a family-owned company, Tchibo places a high priority on values-driven corporate governance, which forms the basis for sustainable growth. At our company, corporate governance is synonymous with conscientious, transparent management and supervision with a view to long-term value creation. This includes fair trade, uncompromising compliance with the law, monitoring and control of potential risks, and a conscientious handling of information entrusted to us by staff and customers.
Long-term value creation can only be achieved if we combine commercial and ethical skills and work to ensure that neither people nor the environment are harmed. Tchibo’s shareholders and management stand by this responsibility. The efficient structures and processes of our compliance, risk management, and data protection schemes ensure that employees, suppliers and other partners adhere to guidelines and that we can take countermeasures at an early stage if there are deviations.
Management in close collaboration: ongoing dialogue at management level
The Tchibo GmbH management, Supervisory Board and works council interact closely with one another and with the maxingvest ag Executive Board and Supervisory Board. The collaboration of these bodies and their constant, close dialogue are characterised by openness and transparency. Respect for stakeholder interests and a clear assignment of responsibilities play a big role here. The Tchibo GmbH Supervisory Board is appointed by the shareholders' meeting and nominates the [executive] management of Tchibo GmbH. The latter regularly and promptly informs the Supervisory Board of all matters relevant to the development of the company, its value, and its risk situation. A guideline specifies when which concerns are to be brought to the attention of the management or Supervisory Board. The company’s strategic direction is coordinated with the Supervisory Board, and major decisions require its consent. The maxingvest ag Supervisory Board has formed various specialist committees to address complex subjects and do its own work as efficiently as possible.
Tchibo Compliance Programme: observance of rules of conduct
The guiding principle of our business activity is the Tchibo Code of Conduct (CoC). It is binding for all Tchibo GmbH employees and its international business units and governs our dealings with business partners and customers. The CoC is based on the conventions of the International Labour Organisation (ILO) and among other things prohibits all forms of corruption, and granting or accepting of an undue advantage. If an employee violates any of the principles, they face sanctions under labour law. In addition to the Code of Conduct, the compliance programme is comprised of various policies that regulate cross-sector and cross-company processes via procedural and organisational instructions. They also list the responsibilities of Group companies, divisions, departments and employees.
We regularly train our managers in the application of our Code of Conduct. Once a year, the managers confirm, in writing, that they understand and have complied with the rules of the Code of Conduct, and have reported any violations that came to their attention. With their signature, they also assure that they have explained the Code of Conduct to their employees and that they monitor compliance with it. Each new employee receives a copy of the CoC. We inform our employees about new developments via the intranet as well as directly, through their supervisors.
Compliance with the requirements is verified in internal audits by the maxingvest ag Corporate Audit department. A whistleblowing hotline operated by an independent body also serves as an anonymous point of contact for employees, suppliers and customers to report possible cases of misconduct. If necessary, information is anonymously passed on to the ombudsman council for processing. The ombudsman council is our internal investigation committee consisting of various department heads from maxingvest ag, Tchibo GmbH and Chairman of the Works Council. There are other ways to report grievances via the works council, the Human Resources department, the Legal department, the Directorate of Corporate Responsibility, and the Group Audit department.
Beyond this, Tchibo has been a member of the UN Global Compact since 2009 and has among other things committed to actively fight corruption. We continuously conduct anti-corruption training for employees in relevant departments, such as Procurement and Sales, and report on anti-corruption measures in an annual progress report, which is integrated into this Sustainability Report (UN Global Compact).
Risk management: identifying and minimising risks
Our business is subject to various risks – e.g. from currency fluctuations or environmental incidents that can have an impact on commodity prices. As part of our integrated risk management system, we identify these risks and take preventive measures to limit their potential negative impact on our business objectives. We make a fundamental distinction here between company risks and supply chain risks.
|When drawing up risk inventories, we take stock of all significant risks and categorise them into three clusters: short-term operational risks, one-off risks and strategic risks. A further differentiation then takes place within these categories. Acute and serious risks are promptly reported to the management as soon as they arise so that we can quickly bring potential risks under control. The latest information about risk development is fed into Tchibo’s management and planning systems several times a year. The internal audit department regularly reviews the effectiveness of the risk management system, and informs the management and Supervisory Board about the risk situation in regular risk reports that determine the scope of the internal audit. Information about serious risks is immediately communicated to these bodies. For example, as a retailer Tchibo is subject to the risk that its core markets become saturated or shrink, leading to stagnating or declining sales. We guard against this danger with an innovative product policy and through international growth. Because the global retail landscape and customers’ buying behaviour are changing, we have further strengthened the e-commerce sector, and introduced cross-channel services and an attractive permanent product range.|
|Supply chain risks|
|Tchibo hedges against risks in the procurement of goods and services by integrating environmental and social requirements in its procurement and quality processes. We have codified these in our Social and Environmental Code of Conduct (SCoC), which all of Tchibo’s suppliers and business partners have to acknowledge and sign as part of the contract. Our Issues Management regularly analyses all relevant product groups for their social and environmental implications and prioritises them according to their social and environmental risks and opportunities. On this basis, we have developed measures to limit the risks and boost opportunities. For instance, we are gradually reducing the number of suppliers we use for our consumer goods and are developing the remaining suppliers into strategic partners, helping them implement the SCoC with the Worldwide Enhancement of Social Quality (WE) qualification programme. As part of our issues management, we also continuously analyse our the relevant concerns of our stakeholders. In this connection, in 2014 we decided to integrate Greenpeace’s DETOX standard into our purchasing and quality processes. Beyond this, we systematically monitor our suppliers as part of our risk management, using customised review processes (audits) for each of the three risk categories (Sustainable supply chains).|
Data protection: responsible handling of personal information
Many customers entrust their personal data to Tchibo every day as part of the ordering process. We see the protection of the information entrusted to us as an integral part of our corporate responsibility. That is why we give top priority to principles such as data minimisation, transparency and security.
Data minimisation and transparency: Our goal is to offer our customers the best possible product range and comprehensive service while using only a minimum of personal information. Therefore, we are very circumspect about processing our customers’ personal data, going beyond the legal requirements. We also explicitly do not sell address data. We only disclose personal data to other companies or entities if this is absolutely necessary to provide the services requested by the customer, or if the customer has consented to the disclosure.
Security: At Tchibo, we consider it our duty to give data entrusted to us the best possible protection against unauthorized access. Not least because of the rising diversity, quality and quantity of cyber attacks on corporate and government networks, it is important to invest in one’s own security infrastructure, check it regularly and optimise it. Our own requirements for safeguarding the data are also the benchmark for the security infrastructure at our service providers.