Professional Documents
Culture Documents
Subtopic 2: Compliance
What makes Daimler AG so fascinating?
What is the basis of its 125 years of success?
Slide 2
In the mission statement we combine our traditional values with our ambitious
objectives
We invented the car – and are designing its future
with passion
As a pioneer of automotive engineering, Daimler feels obliged to fulfil its responsibilities towards society and the
environment by putting its designs for the future of mobility on a safe and sustainable basis – with groundbreaking
technologies and high-quality products.
We delight our customers with fascinating brands, first-rate premium cars that set new benchmarks, commercial vehicles
that are the best in their class, and outstanding service provision.
A company that aspires to top performance, Daimler is aiming for sustained growth and profitability at industry-leading
levels. We want to be our business partners’ first choice.
We live up to our responsibilities to society and the environment and maintain the highest ethical standards. Our company
values –‘passion, respect, integrity and discipline’ – are a source of strength for us and our guiding principles. We value
diversity as a means of bringing to bear our full potential as a global team.
Slide 3
Our corporate success is based on four basic values of human interaction
Slide 4
Integrity means:
Slide 5
Consequences of unethical behavior
Slide 6
Corruption = dirty hands?!
•Joint success can only be maintained in the long-term if it is achieved by proper and legal
means.
Slide 7
Definitions of corruption
… the offer, promise or provision of benefits (e.g. money, gifts, discounts, donations, credit,
payments or rewards) …
Slide 8
Bribery risks in relation to different types of business partners
Companies
Slide 9
Types
Active of corruption Passive
The focus is on the party that provides the benefit The focus is on the party that receives the benefit
Corruption
Active corruption Passive corruption in business
in business dealings dealings
In most jurisdictions, active corruption In most jurisdictions, passive
in business dealings is understood to corruption in business dealings is
mean the provision or promise of understood to mean the receipt or the
tangible or intangible benefits to an request for tangible or intangible
employee of a private-sector company. benefits by an employee of a private-
sector company.
Slide 10
Consequences of corruption
Slide 11
Corruption recognizes no borders and the battle against it is therefore fought
globally
Corruption ...
•… destroys trust
That is why all forms of corruption, bribery and embezzlement are prohibited
Daimler is committed to the worldwide fight against corruption, for example, as a member of
the anti-corruption organization Transparency International.
Slide 12
Various warning signals can arise within the course of a business process (After-
Sales)
The customer is an
employee of a public
authority
The customer asks for
gifts/additional benefits
Service provided
without a written
The customer want to request or order
involve a third party
(e.g. an intermediary or
Discrepancy
consultant) between service
provided and
amount invoiced.
Customer
contact Delivery
Ordering Order
-Vehicle repair - Repairs /handover Invoice
-Parts order process - Parts delivery - Vehicle
-Service and - Parts
maintenance contract
Slide 13
Look out for the warning signs!
• Especially strict rules apply to business dealings (whether directly or indirectly) with public officials
• The business partner has relationships with public officials
• The country or sector has a reputation of being corrupt
• Consultants are involved in the deal
• The deal includes complex sales or holding structures (tax havens, etc.)
• The business partner was recommended by a public official
• The business partner insists on anonymity
• The business partner does not possess the necessary resources to carry out the contracted activities
• Excessive payments to business partners or use of unusual methods of payment
• The business partner demands money in order to 'make the necessary arrangements'
• The business partner refuses to confirm compliance or behaves uncooperatively during an audit
• There are press reports about the bad reputation or criminal sentencing of the business partner
If you have questions about the legality of particular commercial activities, please contact your sales
manager or, if necessary, your company's legal counsel.
Slide 14
Case studies
Invitations to business meals Arranging an internship Invitation to an Inviting customers to celebratory
entertainment event events
Use of intermediaries
Slide 15
Case study 1: A risky invitation
Slide 16
Case study 2: The internship
Slide 17
Case study 3: The sports event
Slide 18
Case study 4: Handover of vehicles to a public-sector customer
The municipal transport authorities have ordered a large number
of vehicles. A celebratory handover of the vehicles is planned
with about 75 invited guests. The associated catering costs
amounting to €200 per person and will be borne by your
company.
Slide 19
Antitrust law
Antitrust law is an area of commercial law. It protects free competition from restriction and
distortion by companies.
Antitrust law lays down the rules for
• joint actions, i.e. agreements or coordinated actions by two or more companies;
• unilateral action by dominant companies or those with a strong market position.
In regard to joint action, antitrust law prohibits agreements and coordinated action that has the
aim or effect of restricting, distorting or preventing competition (this regulation is known as
the 'ban on cartels').
The ban on cartels applies both to horizontal relationships (e.g. agreements between partners)
and vertical relationships (e.g. agreements between Daimler AG and its partners).
Slide 20
Case study 5: Price erosion
Slide 21
Solution to case study 5
1. Why not ask the Daimler sales manager to introduce maximum price discounts, financial incentives for the dealer or
a suggested minimum price?
•For antitrust law reasons, Daimler AG and its partners (at least in the case of the authorized dealers) are not allowed
to agree the following:
• maximum price discounts
• minimum prices
2. Why not ask other Daimler dealers to re-establish a situation where there is 'fair competition'?
•For antitrust law reasons, competitors such as dealerships are not allowed to:
• coordinate competition between them by coordinating prices;
Slide 22
Daimler and its business partners – a joint approach to integrity and compliance
• Passion, respect, discipline and integrity • Integrity is not a process or a formality but
are our corporate values. an internal compass.
("We live our values.") ("We know right from wrong.")
Slide 23
Clear expectations and long-term consequences
In the event of failure to fulfill • file a criminal complaint and claim for damages
the compliance obligations • refuse further deliveries or services
Daimler can ... • immediately annul business contracts.
Slide 24
Daimler Business Practices Office (BPO)
• Daimler set up the Business Practices Office (BPO) for reporting cases of
possible misconduct.
• The BPO is the central reporting office for cases of suspected misconduct
• The BPO is open to employees and externals
• The BPO does not provide advice on legal and compliance issues
• The BPO treats all information with confidentiality
• The BPO also accepts reports from anonymous whistleblowers*
• The BPO ensures that cases of misconduct are followed up and put right
for the future
• Whistleblowers will be protected against discrimination
* depending on the national data protection obligations
•Daimler asks employees as well as third parties to address reports of suspected irregular
conduct to the Daimler Business Practices Office (BPO).
•The BPO will maintain strict confidentiality. Upon request, the BPO can also ensure
anonymous treatment of any information received.
•To file a report from Asia or Australia-Pacific (APAC region, except Japan*), please
proceed as follows:
Slide 26
Instructions for China, Malaysia and Australia:
Slide 27
Instructions for India, Indonesia, South Korea, Thailand and Vietnam
•*ForJapan:
•Email:mftbc_fuso_shainsoudan@daimler.com
•Phone: 044-330-7262 or 03-3517-6777, Fax: 03-3517-6776
•** Note: In some countries or with some phone systems, an AT&T operator may answer in Step 3. The operator should not request a calling card or credit card number.
Slide 28
Compliance is an integral part of the Daimler culture
• Integrity is one of our four corporate values. It forms the basis of all our actions and of
our success as a global corporation.
• Compliance is something that concerns everyone. Every employee and business partner is
responsible for his or her own ethically sound conduct.
Slide 29
Legal note:
Please note that the information provided as part of this training package does not constitute legally
binding advice or offer directives for action but is merely intended for clarification purposes. Please
also note that the course content can change at time due to new developments and documents in
different languages may differ from each other in some cases.
Slide 30