The general objective of the corporation’s internal anti-corruption programme (IAP) is to take continuous measures to introduce elements into the control and management system that prevent the occurrence of a potential corrupt environment as much as possible.
The main objective of the corporation’s IAP is to determine areas in the various corporation departments with possible corruption potential, to identify the key corruption risks within them, and, having evaluated the relevant control and management mechanisms in terms of the adequacy of their setup in internal documentation, by implementing corrective measures to strengthen these mechanisms.
The sub-objectives of the corporation’s IAP include:
- reducing employee motivation towards corruption and increasing the likelihood of detection
- discouraging corruption by increasing the likelihood of detection
- setting up effective control mechanisms and ensuring effective corruption detection
- minimising loss caused by corruption and preventing a repeat of a similar corruption scenario
- perfecting the corporation’s IAP and allowing coordination of anti-corruption activities
The IAP is not a one-time measure. It is anti-corruption material which must respond to the situation and findings as they arise and, on this basis, be updated operatively.
The term corruption comes from the Latin word corrumpere, which means to impair, break, weaken, deface or bribe. Corruption is generally understood to be the abuse of power by people in public functions which is aimed at obtaining undue benefits for the purpose of private enrichment. It most commonly manifests as bribery. In the broader sense of the word, corruption encompasses all conduct by officials and employees that deviates from formally established and codified obligations for the purpose of achieving private financial or status gains through the power entrusted to them.
Corruption is a dangerous social phenomenon that causes considerable economic and moral damage to society. The Preamble to the Criminal Law Convention on Corruption emphasises that corruption threatens the rule of law, democracy and human rights, undermines good governance, fairness and social justice, distorts competition, hinders economic development and endangers the stability of democratic institutions and the moral foundations of society. The Czech Republic has ratified this convention as a Member State of the Council of Europe.
Corruption within the corporation may occur particularly in departments with decision-making powers that can have a particular influence on the purchase of materials and services, the allocation of aid, the sale of assets or recruitment. There can be a risk of corruption occurring in people with access to important information, whose role within the corporation allows them to influence decision-making processes, whether in a direct line of seniority and subordination, or along a line of seniority within a hierarchy of roles and related contacts.
CREATING AND STRENGTHENING A CLIMATE OF ANTI-CORRUPTION
Creating and strengthening an anti-corruption environment in the corporation is one of the fundamental pillars of the IAP. The main tools for building this kind of environment are raising awareness, strengthening employees’ moral integrity, active promotion of ethical principles, checking compliance with them, and setting up a credible mechanism for reporting suspected corruption.
PROMOTION OF AN ANTI-CORRUPTION STANCE BY MANAGEMENT STAFF
An anti-corruption stance, alongside actual integrity, means complying with legal and internal regulations, emphasising the importance of protecting the corporation’s and State’s assets, emphasising the importance of the existence of and compliance with ethical principles in the course of work, promoting anti-corruption and emphasis on investigating suspected corruption, and taking adequate measures in the event of establishing the facts under investigation.
One of the main recommended forms of promoting anti-corruption is the active conduct of management staff at training events focused on the issue of anti-corruption. Employees can then become acquainted with management’s anti-corruption conduct, or become acquainted with specific cases from the organisation’s practice, including solutions and results.
- Actively promote an anti-corruption stance in the workplace.
- Responsibility: all management staff
- Dates: continuous, permanent
Assess the corruption situation in the workplace with subordinate staff at meetings at all levels of management. Acquaint subordinate staff with corruption cases recorded in the workplace in the previous period. Share the solutions and results.
- Responsibility: all management staff
- Dates: continuous, permanent
Place emphasis on investigating suspected corruption and take adequate measures in the event of establishing the investigated facts.
- Responsibility: all management staff
- Dates: continuous, permanent
ANTI-CORRUPTION CODE OF ETHICS
Effective as of 1 January 2019
Approved by: Mgr. Petr Dvořák, corporation director
The anti-corruption code of ethics (the Code) follows on from the employee standards for behaviour and conduct at Budějovický Budvar, národní podnik (the corporation) in relation to conflicts of interest, providing and accepting gifts, abuse of position or the fight against corruption and bribes, as set out in the Labour Code, other applicable legislation, internal regulations at the corporation and basic rules of decency.
The purpose of the Code is to promote the required standards of conduct by the corporation’s employees in relation to the corporation, customers and colleagues, and to create an environment which is resistant to corruption.
- Employees shall carry out their work in accordance with applicable legislation and internal regulations and follow instructions to carry out work. Employees shall respect the corporation’s objectives, concepts and priorities within the limits of legal regulations.
- Employees shall carry out work at a high professional level, which they are obliged to deepen, develop and supplement. Employees shall monitor developments in their field.
- Employees shall respect the knowledge and experience of other professionals and utilise this effectively for their professional growth. They shall create a cooperative and friendly environment, pay attention to the development of relationships and promote mutual openness and helpfulness.
- Employees shall deal with other employees, customers, corporation partners and private individuals fairly.
- In carrying out their work, employees shall act professionally and impartially, without pursuing personal gain in order to maintain the corporation’s good reputation and credibility.
- When acting on behalf of the corporation and representing it, employees shall always act in accordance with the law, requirements for civil decency, and in accordance with the rules of social etiquette.
Conflict of interest
- Employees shall prevent situations that could lead to a conflict between their personal interests and their role as employees. Personal interest means any potential benefit for employees, people close to them, and a natural person or legal entity with whom they have a personal, commercial, professional or political relationship.
- Employees shall not take part in any activity which is incompatible with or limits the proper performance of their duties. If they are unsure as to whether the activity is compatible with the performance of their work, they shall discuss it with their immediate superior.
Abuse of job role
- Employees shall not take advantage of the benefits arising from their role or information obtained in the performance of their work at the corporation for their own personal gain or that of others. They shall not try to influence any person or institution for private purposes by abusing their job role. They are obliged to avoid a conflict of interest and prevent situations that might give rise to a suspected conflict of interest.
- Employees shall not knowingly mislead anyone.
- Employees shall not offer or provide any preferential or other benefits related to their work.
Handling entrusted funds
- Employees shall handle resources entrusted to them efficiently and economically. They shall utilise the financial resources and equipment entrusted to them in the most economical possible way.
Confidentiality and informing the public
- Employees shall maintain the confidentiality of facts they have learnt in connection with the performance of their work and which could damage or jeopardise the corporation’s activities. The confidentiality obligation does not apply to facts relating to suspected corruption.
- Employees shall maintain the confidentiality of all data they have learnt in the performance of their work, in particular personal data or classified information, unless they are absolved from doing so.
- Information about the effectiveness of the corporation as well as other information intended for the public shall be given by a designated employee on the corporation’s behalf.
Gifts and other offers
- Employees shall not accept any presents, gifts, favours or any other benefits which may influence their decision-making, undermine the employees’ professional approach or which could be considered a reward for work which is part of their job description. Employees shall not engage directly or indirectly in any activities that could be construed as requiring or accepting benefits for their own enrichment or benefit.
- Employees shall be obliged to refuse gifts every time with the exception of gifts under point 3 of this article and all funds in any amount or currency.
- Gifts and other objects which are part social etiquette (e.g. small promotional items, flowers, books and other printed documents), proportionate to their purpose and value and provided as part of official business conduct are not considered a bribe. Should employees be in any doubt regarding the nature and value of a gift, they shall inform their immediate superior.
- If the value of a gift or other object pursuant to the previous paragraph of this article (including small repeated gifts or other objects from the same donor or for the same cause in a short time frame) exceeds the overall value of CZK 500, employees should make a record of acceptance of this gift or object (jointly referred to as the gift). The record shall contain the first name(s) and surname of the donor(s), a description of the gift, the reason for giving it and the date on which it was given. A sample of a record of acceptance for a gift is given in Annex 1. The signed record shall then be delivered by the employee to the corporation’s head office, where the records will be stored and managed.
- Any corrupt behaviour or suspicion of this about which employees have learnt in a credible fashion should be reported to the immediate superior or a law enforcement authority. Employees shall be obliged to notify their immediate superior immediately if they are offered or obtain an unauthorised benefit.
- If the employees anticipate behaviour with a risk of corruption or fraud, they shall hold meetings in the presence of at least one colleague. Employees shall take records of these meetings, giving the first names and surnames of people they have dealt with, the first names and surnames of others who were present at the meetings, and the description and reason why they anticipate the risk of corruption or fraud. They shall hand over this record to their immediate superior. The immediate superior shall review this record and if they find that the conduct could lead to committing an offence, they shall notify the law enforcement authorities.
- An Ethics Committee shall be set up as an advisory body to the corporation director.
- The Ethics Committee (the Committee) shall discuss the suspected improper conduct within the corporation, assess compliance with the Code by employees and propose further action if it is established that improper conduct has occurred, unless the procedure is regulated by other legislation or internal regulations.
- The Committee shall have three members (a chairperson and two other members) appointed by the corporation director from the corporation’s employees.
- The Committee shall always ask the affected employee for a statement during its investigation. If the affected employee is a member of the Committee, they shall not take part in discussions of their case except for the statement.
- Committee members shall be obliged to maintain confidentiality regarding all facts they have learnt in performing their role.
- The Committee chairperson shall secure the documentation for the Committee’s dealings and other information concerning the cases discussed by the Committee to prevent their misuse.
- The Ethics Committee shall continuously monitor the work of the investigator appointed to investigate suspected corruption.
- This Code shall be binding for all employees of the corporation who are employed by it and for members of staff performing work for the corporation based on a contract for work outside of employment.
- A breach of the individual provisions of this Code may be considered a breach of obligations arising from employment.
České Budějovice, 17 December 2018
Mgr. Petr Dvořák, corporation director
SYSTEM FOR REPORTING SUSPECTED CORRUPTION
System for reporting suspected corruption
A fixed lockable post box has been set up to submit a written report on suspected unlawful conduct, at building no. 2249, Kněžskodvorská, České Budějovice (by the entrance to the building where Dr Piskač has his surgery).
To submit a report electronically, the email address email@example.com has been set up.
To submit an oral report, the anti-corruption phone line with answer machine has been set up on: 387705158.
Submissions in the above ways can be made either anonymously or not. The whistleblower is entitled to have their identify kept confidential if they request this in the report. The investigator shall investigate the submission without disclosing the identity of the whistleblower.
The report should contain the following information:
- the identification of the people suspected of improper conduct and all the people participating or profiting from the improper conduct;
- a detailed and coherent description of the improper conduct including the timing;
- specific evidence of improper conduct or other specific findings supporting the suspected improper conduct.
Protection of whistleblowers
No report of suspected corruption made using the system described above will be penalised, even indirectly. The reporting is subject to the principle of protecting the whistleblower, which provides support and protection for those people who report possible corruption or other unlawful or unethical conduct in good faith. Protecting the whistleblower includes a system of impartial assessment of any conduct towards employees which can be considered a threat, discrimination or repression for submitting a report of suspected conduct mentioned above. Employees for whom misconduct is not established in the assessment shall also be protected.
CORPORATION ORGANISATIONAL CHART
LIST OF ADVISORS
List of advisors and legal representatives as of 1 January 2019
Čermák a spol., ID No. 27109500
JUDr. Jan Kubálek, ID No. 71345574
Dr. Trapl a Partner, ID No. 27418049
BDO Audit s.r.o., ID No. 45314381
Ing. Josef Tolar
Korn Ferry s.r.o., ID No. 03430839
Ernst & Young s.r.o., ID No. 26705338
JE GROUP s.r.o., ID No. 03063313
RENOMIA a.s. ID No. 48391301
MOORE STEPHENS s.r.o., ID No. 26402220