At H&M Group, we make it a rule to act with integrity at all times. Our business principles commit us to comply with all rules and regulations in each country where we operate and do not accept any form ofcorruption.
We implement this commitment through our Code of Ethics, which has been in place since 2003. The Code of Ethics states a zero tolerance policy on corruption and demands compliance with all relevant laws and our own business principles. It states, among other things, that business partners should not provide any kind of gifts or favours to H&M Group employees. In the same way, H&M Group employees must not ask for or accept any personal advantage from a business partner.
All our business units are regularly assessed as regards the risks of corruption. Based on this risk assessment, the Code applies to all business partners and all H&M Group employees who are in regular contact with these. All colleagues working in our offices around the world, as well as store management, and all our business partners must sign the Code of Ethics and commit to comply.
We make all our business partners and relevant employees aware of the Code and we provide the information and training necessary to understand and comply with it. All suppliers must sign the Code before they can be accepted by H&M Group. We inform all new employees of the Code during the recruitment process.
Corruption
Corruption is a challenge in many of the markets where we operate. We have a zero tolerance policy and take a proactive approach in preventing corruption. This is described in our Code of Ethics, which applies to all of our business partners, not only suppliers, and of course all our 179,000 colleagues around the world.
We conduct regular corruption risk assessments and, rather than aiming at zero cases on paper, our goal is to actually find the cases where our Code of Ethics has been violated. We see education and building awareness as crucial tools in preventing corruption, especially in high-risk countries. Our Code of Ethics – provides a clear backbone to our business, ranging from our clear commitment to legal compliance in the countries in which we operate to not accepting or facilitating any form of corruption with a clear no-gift policy.
Our tax policy always reflects our business and we are tax compliant at all times. All taxes and fees are paid at the appropriate time and according to local laws and regulations in the countries where we operate. The company’s tax rate depends on the results of our entities and the corporate tax rates in each country.
H&M Group provides a secure Speak-Up channel, to our employees, business partners and third parties to inform us of suspected of Code of Ethics violations. All reports will be investigated and appropriate actions taken.
As an expert in corporate sustainability and ethical business practices, I bring a wealth of knowledge and experience to the table. My expertise is grounded in a comprehensive understanding of global business standards, policies, and codes of ethics, particularly in the realm of sustainable practices within the fashion industry.
Now, let's delve into the key concepts mentioned in the provided article related to H&M Group's sustainability efforts, standards, and ethical guidelines:
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Home Sustainability: H&M Group emphasizes a commitment to sustainability within its operations. This commitment is not only a part of its business principles but is also embedded in its Code of Ethics. The company ensures that it operates responsibly and complies with all relevant rules and regulations in every country it engages with.
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Standards & Policies: The Code of Ethics at H&M Group, established since 2003, serves as a fundamental document outlining the company's standards and policies. It sets a zero-tolerance policy on corruption and demands compliance with all applicable laws and internal business principles. This code applies universally to all business partners, employees, and suppliers associated with H&M Group.
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Code of Ethics: The Code of Ethics is a cornerstone of H&M Group's commitment to integrity. It prohibits corruption and outlines clear guidelines, such as not accepting gifts or favors from business partners and not seeking personal advantages. The code extends to all business units, employees, and partners, with regular assessments of corruption risks and a commitment to education and awareness as key tools in preventing corruption.
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Sustainability: Sustainability is a pervasive theme in H&M Group's approach. From ensuring compliance with local laws and regulations to conducting regular corruption risk assessments, the company demonstrates a proactive stance in promoting sustainable business practices. This commitment extends to suppliers, with the requirement for them to sign the Code of Ethics before being accepted by H&M Group.
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Tax Compliance: H&M Group asserts a commitment to tax compliance in all the countries where it operates. The company pays all taxes and fees in accordance with local laws and regulations, reflecting a responsible approach to financial operations. The tax policy aligns with the business results of its entities and the corporate tax rates in each country.
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Speak-Up Channel: The establishment of a secure Speak-Up channel underscores H&M Group's dedication to ethical practices. This channel allows employees, business partners, and third parties to report suspected violations of the Code of Ethics. The company assures a thorough investigation of all reports and takes appropriate actions to address any breaches.
In conclusion, H&M Group's comprehensive approach to sustainability, ethical standards, and compliance is evident in its Code of Ethics, rigorous risk assessments, tax policies, and the establishment of mechanisms such as the Speak-Up channel to ensure accountability and transparency in its business operations.
