Ethical behavior

  • In 2008, Danfoss launched the Ethics Handbook, a set of guidelines for ethical behavior aimed at all Danfoss employees.

    The Ethics Handbook has been updated several times, most recently in 2013. The updates are based on the experience gained from the use of the ethical guidelines. The updated Ethics Handbook has been distributed to all employees in the Danfoss Group at the beginning of the 2013, and will be distributed to all Danfoss Power Solutions employees in 2014. The Ethics Handbook outlines Danfoss’ ethical guidelines; grouping them according to three main sections:

     

    • Danfoss and our employees
    • Danfoss and our external partners
    • Danfoss and society as a whole 

    The handbook applies to all employees and companies in the Danfoss Group, including subsidiaries and joint ventures where Danfoss has a controlling interest.
    All Group companies, business units, departments and employees within Danfoss must, as a minimum, comply with the local laws of the countries in which they are operating. Complying with the country’s legislation is regarded as a basic requirement. In addition, the ethical guidelines in the Ethics Handbook must be complied with at all times.

     

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    Ethics test
    To support the Ethics Handbook, an online test has been developed to increase our employees’ understanding of ethics.

    The ethics test is a multiple choice test available for all employees on the Danfoss intranet. The test has been translated into all corporate languages, making it possible for most of our employees to test their ethics knowledge in their own mother tongue.

    Ethics training
    In addition to the Ethics Handbook, all managers must complete an e-learning course and pass a test within a certain time frame. The e-learning course is based on the handbook and addresses a broad range of topics: e.g. the way we interact, employment conditions, conflicts of interest, confidential information and other issues.
    All people managers attended ethics training in 2012 and took a test via the Danfoss Learning e-learning platform. In 2013, Danfoss continued ethical conduct training for all people managers. All managers in Danfoss Power Solutions will be required to complete the ethics e-learning course in 2015.

    Ethics Hotline and AskUs query function
    Danfoss has a whistleblower function called the Ethics Hotline, to which employees can anonymously report suspected breaches of the law and internal guidelines without involving a manager. To ensure professional treatment of all such reports, Danfoss has entered into an agreement with the company EthicsPoint who receives the reports either via internet or by telephone and forwards them to the Danfoss Ethics Committee for decision.

    Danfoss also has a query function called AskUs, which the Group’s employees can contact for immediate advice or to find answers to any questions regarding ethics and compliance. The purpose of AskUs is to minimize uncertainty among the Group’s employees and to prevent unintended non-compliance.

    Focus on human rights abuses
    The UN has approved guiding principles for how businesses should ensure they are not complicit in human rights abuses. Among other measures, businesses must conduct a due diligence process in order to identify, remedy and prevent potential adverse impacts on human rights.

    In 2014, Danfoss carried out a due diligence process in all its companies in the Climate & Energy segment in order to identify any risks associated with the Company’s activities. The due diligence process was carried out in the form of an extensive questionnaire on human rights and labor rights, which was sent to all Group companies.
    According to the responses, Danfoss’ policies to counter any abuse of human rights and labor rights are generally complied with. Potential abuse was identified in a few areas, and remedial action has been taken.
    A process to identify any potential risks relating to human rights abuses at Danfoss Power Solutions will be carried out in 2014.

    Anti-corruption
    All employees who have contact with business partners, primarily in sales and procurement, must complete the anti-corruption program by completing an e-learning course and passing a test. The purpose of the program is to minimize the risk of corruption internally at Danfoss and to ensure that third parties doing business on behalf of Danfoss are not involved in corruption.
    More than a thousand managers and other key employees completed the Danfoss anti-corruption program during 2013.

    Competition law
    As Danfoss is a major player in many geographical and product markets, it is important that every employee within the Danfoss Group, who deals with business partners, is aware of the main rules relating to competition law.

    The program has been set up to ensure that Danfoss employees respect the free market and comply with competition law around the globe. Some four thousand employees, who are in contact with business partners or industry organizations, have completed the mandatory e-learning program on competition law

    Risk assessment in supply chain
    Danfoss works systematically with risk assessment and supplier management. Since 2004, Danfoss has had a Code of Conduct for Suppliers that defines the Group’s environmental and social requirements. All suppliers are required to sign the Code, and Danfoss performs regular supplier audits to verify compliance and to ensure that any non-compliance is addressed and remedied.
    To ensure that all Danfoss employees, who come into contact with suppliers, are familiar with Danfoss’ Code of Conduct and the division of responsibilities in this area, Danfoss’ Code of Conduct Competence Center conducts regular training for our employees in procurement. The training is divided into multiple modules, primarily in the form of e-learning.

    In 2013, 99 employees completed the training, and from the beginning of 2014, focus will be on training the procurement employees at Danfoss Power Solutions.

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