8.2 Society

Anti-corruption (GRI 205)

Management approach anti-corruption

As a member of Transparency International Switzerland and the UN Global Compact, Geberit is committed to high standards in combating corruption. Corruption is categorically rejected. There are clear, internal guidelines on prevention which are communicated to all employees, and employees receive training in this area. Compliance with the guidelines is monitored as part of the Code of Conduct Reporting – an annual survey at all Geberit Group companies. The Internal Audit Department conducts additional on-site audits. In the case of misconduct, corrective measures are taken. For further information about the compliance system, see GRI 419.

Operations subjected to reviews on the risk of corruption (GRI 205-1)

The Code of Conduct Reporting contains a range of questions aiming to identify incidents of corruption. The topic of corruption is also a component of the audit programme for the periodic inspections of the production plants, sales, logistics and management companies by the Internal Audit Department. The annual audit planning of the Internal Audit Department is oriented to risks. Each company is audited at least every five years, or considerably more frequently if it has a high risk profile. In 2021, the Internal Audit Department audited a total of 20 companies.

Communication and training on anti-corruption (GRI 205-2)

All new employees at Geberit are trained on the Code of Conduct as part of the Welcome events, with specific training films on the topics of corruption, IT misuse, workplace bullying and sexual harassment deployed especially for this.

All employees are also provided with information via the intranet about what is permitted and what is not. The guidelines on the correct handling of donations (i.e. anti-corruption guidelines) are updated regularly and made accessible to the relevant employees in Purchasing and Sales via the various communication channels.

Incidents of corruption (GRI 205-3)

According to the annual survey carried out at all Geberit Group companies and the audits conducted by the Internal Audit Department, there were no cases of corruption in 2021.

Anti-competitive behaviour (GRI 206)

Management approach anti-competitive behaviour

The prevention of anti-competitive behaviour is a matter of top priority for Geberit. Cartels of any kind and other anti-competitive behaviour are categorically rejected. An internal antitrust audit was carried out at several sales companies in 2021 to ensure compliance in this area and also to improve it. There were also comprehensive training activities on antitrust legislation for all Managing Directors of the European sales companies, among others.

eLearning programmes represent an efficient way to train staff on and raise their awareness of antitrust legislation, an issue that is particularly sensitive for Geberit. Training campaigns are carried out on a regular basis. In 2021, the eLearning programme on antitrust legislation was completely revised for all sales companies outside Europe and will be rolled out in the first half of 2022.

As part of enquiries from various Geberit markets, the Group’s legal department dealt with the permissibility of bonus and discount systems, plus marketing and sales campaigns, under competition law. In this advisory role, the legal department is able to quickly eliminate any uncertainties and confusion. On the whole, the enquiries demonstrate a marked sensibility among the employees in the area of antitrust legislation.

The external audit of the Geberit compliance organisation by KPMG carried out in 2021 also covered the area of antitrust legislation and closed with good results.

Legal proceedings due to anti-competitive behaviour (GRI 206-1)

The suspected case from the previous year is still pending and there is no new information on it. There were no new cases in the reporting year.

Regional employer (GRI 202)

Management approach regional employer

Geberit has grown from a family-run firm into a listed global company that has proven its ability to adapt to a rapidly changing environment. Within its core strategy, Geberit’s aim is to ensure that sales companies, production plants, logistics and management companies function well as units which enjoy a high degree of autonomy. The high level of acceptance among the local workforce is a fundamental part of this, thanks in part to an attractive pay structure and the involvement of local know-how at management level.

Ratio of standard entry level wage compared to local minimum wage (GRI 202-1)

Geberit pays market-rate wages, taking into account local circumstances and laws. When hiring employees and determining their assignment in the company, Geberit attaches great importance to qualifications appropriate to the task description. In accordance with their qualifications, the majority of Geberit employees at the production sites and sales companies are paid well above the minimum wage range. Furthermore, stability and a high level of motivation among employees are important to Geberit.

Procedures for local hiring of management (GRI 202-2)

Geberit follows a personnel policy that does not provide for the preferential treatment of persons from the region in connection with the hiring of members of management boards for the respective country organisations. However, Geberit would like to establish organisations at its production and sales sites that function on a local basis, which is why it often integrates locally appointed managers.

Indirect economic impacts (GRI 203)

Management approach indirect economic impacts

Indirect economic impacts arise primarily as side effects from direct economic action. Geberit is aware of these effects and the associated responsibility.

With its innovative solutions for sanitary products, Geberit aims to achieve sustained improvement in people’s standard of living. The economy benefits from Geberit’s leading role in the change towards a more sustainable sanitary industry: through the contribution to better sanitary and hygiene standards, a durable, resource-efficient sanitary infrastructure, through know-how transfer in the sanitary industry, via impetus for the economy in regional economic areas, and through strong and long-term relationships with suppliers. There is no management approach to indirect economic impacts in the narrower sense. Instead, the company works with the stakeholders concerned to identify the best solutions in each case. This collaborative approach proved extremely successful in the challenging environment of the COVID‑19 pandemic. For further information, see also GRI 201.

Significant indirect economic impacts (GRI 203-2)

Geberit forms part of the value chain in the construction industry. It has significant indirect economic impacts for the employees, on the customer side at sanitary engineers, plumbers and end users, as well as at suppliers and transport companies. Continuous investment in the production plants in Europe, China, India and the USA, as well as the logistics centre in Germany, will strengthen these individual economic areas.

Geberit know-how and Geberit products and system solutions significantly reduce the burden on water and drainage systems, thus reducing the associated costs and consumption of resources. According to one model calculation, all dual-flush and flush-stop cisterns installed since 1998 have so far saved around 38,210 million m³ of water in comparison with traditional flushing systems. In 2021 alone, the water saved amounted to 3,590 million m³.

Geberit is committed to sustainable sanitary systems which, as elements in construction, help to shape the infrastructure as a whole. For example, Geberit actively worked on adapting the applicable standard for the dimensioning of waste water piping to smaller diameters. This is important so that the full functionality of the drainage system is ensured and fewer incidents with the corresponding costs occur, even with lower quantities of waste water. Similar to its work in the field of waste water hydraulics, Geberit also played a major part in ensuring that sound insulation and fire protection, as well as hygiene in drinking water and sanitary facilities, have been developed to the benefit of the end user and laid down in standards and recommendations.

Geberit lends impetus to the sanitary industry with innovation and new products that are sold and installed worldwide by wholesalers, plumbers and sanitary engineers. During the reporting year, around 36,000 professionals were provided with training on Geberit products, tools, software tools and installation skills at 30 Geberit Information Centres in Europe and overseas, see Business Report > Business and financial review > Financial Year 2021 > Customers. In this way, Geberit supports innovation, growth and value added in the sanitary industry.

Furthermore, Geberit is an important employer for the communities around its sites, with employees generating local value added. Added to this is Geberit’s contribution as a training company for apprentices. At the end of 2021, Geberit employed 278 apprentices, thus supporting training in different countries, see also GRI 404.

The indirect economic impact on suppliers and transport companies is also significant. In 2021, Geberit procured goods amounting to CHF 1,061 million (previous year CHF 798 million) and had business relations with a total of 1,783 direct suppliers. Geberit does not have its own transport fleet and therefore generates orders for external transport companies.

Child labour (GRI 408)

Management approach child labour

Geberit’s exposure with respect to child labour is considered low because of its industry, business model and the countries in which business activities are carried out, its high level of vertical integration as well as its high quality requirements in the supply chain. Geberit commits itself to the protection of human rights in its Code of Conduct. Child labour is categorically rejected. The basic principles set out in the Geberit Code of Conduct for Suppliers explicitly include compliance with the ILO core labour standards for the exclusion of child labour.

Cases of child labour (GRI 408-1)

According to the annual Group-wide survey there were no cases of child labour revealed in 2021. There were likewise no such cases uncovered during the audits carried out at suppliers.

Forced or compulsory labour (GRI 409)

Management approach forced or compulsory labour

Geberit’s exposure with respect to forced or compulsory labour is considered low because of its industry, business model and the countries in which business activities are carried out, its high level of vertical integration as well as its high quality requirements. Geberit commits itself to the protection of human rights in its Code of Conduct. Forced and compulsory labour are categorically rejected. The basic principles set out in the Code of Conduct for Suppliers explicitly include compliance with the ILO core labour standards for the exclusion of forced or compulsory labour.

Cases of forced or compulsory labour (GRI 409-1)

According to the annual Group-wide survey there were no cases of forced or compulsory labour revealed in 2021. There were likewise no such cases uncovered during the audits carried out at suppliers.

Human rights assessment (GRI 412)

Management approach human rights assessment

The UN Guiding Principles on Business and Human Rights apply to the business activities of Geberit. Geberit is active across the world, including in regions posing a certain degree of risk with regard to the upholding of fundamental employee and human rights. However, all Geberit Group companies throughout the world are integrated in the Geberit Compliance System, which includes the upholding of fundamental employee protection and human rights. In addition, internal audits with compliance reviews take place at all companies of the Geberit Group, with the supply chain also being carefully reviewed, see GRI 419 and Chapter 10.2 Operations > Procurement.

Assessment of operations regarding human rights risks (GRI 412-1)

The upholding of human rights at all Geberit Group companies is subject to a survey each year as part of the verification of the Code of Conduct. Human rights as part of compliance are also a component of the audit programme for the periodic inspections of the production, sales and management companies by the Internal Audit Department. In 2021, the Internal Audit Department audited a total of 20 companies. In the reporting year, no evidence of human rights violations was found during the various inspections.

Employee training on human rights (GRI 412-2)

The subject of compliance is uniformly positioned throughout the Geberit Group. The joint Geberit Intranet (GIN), which since 2020 has also been available to all employees via the mobile app, serves as an important basis for this. The compliance organisation and Code of Conduct are presented and explained here on a dedicated page.

Human rights criteria in investments and contract agreements (GRI 412-3)

In 2021, there was no investment agreement in countries or areas that pose a special risk in terms of human rights violations.

Suppliers are required by contractual agreement to comply with the Geberit Code of Conduct for Suppliers, which contains provisions for the protection of human rights.

Social responsibility is exercised both within the scope of long-term partnerships with social institutions and programmes with partners and in the annual social projects that Geberit has been carrying out for over ten years. These projects exhibit a relationship to the topic of water and sanitary facilities, as well as to Geberit’s core competencies and corporate culture. Equally important is the aspect of personal and professional education. By getting actively involved in the social projects in developing regions, apprentices become familiar with other cultures and also acquire new social, linguistic and professional competencies. Furthermore, these social projects make a tangible contribution to the Sustainable Development Goals (SDGs) of the United Nations, which include giving all humans access to clean drinking water and basic sanitation by 2030. A review of what has been achieved is carried out on a regular basis.

Infrastructure investments and promoted services (GRI 203-1)

Donations and financial contributions, including product donations, totalling CHF 4.2 million (previous year CHF 4.0 million) were made during the reporting year. Geberit employees also carried out charitable work totalling around 1,650 hours in the reporting year (previous year 450 hours). Geberit also supports social facilities for disabled persons and long-term unemployed, where simple assembly and packaging work totalling CHF 9.7 million was carried out in 2021 (previous year CHF 8.5 million). This gave around 550 people meaningful work.

The focus was on the following projects and partnerships in 2021:

After the project had to take place without apprentices in the previous year due to the pandemic, Geberit continued the tradition of its social projects in 2021. Eight apprentices from Germany, Austria and Switzerland travelled to Vinnytsia in Ukraine as part of the social project. In close collaboration with a local vocational school and accompanied by the local Geberit sales company, the apprentices helped renovate bathrooms and sanitary facilities in the vocational school involved as well as in a student hall of residence.
The company also continued its long-term partnership with the Swiss development organisation Helvetas. Part of this partnership focuses on infrastructure projects in developing countries where Geberit employees go on volunteering assignments. Due to the COVID‑19 pandemic, the planned volunteering project in Nepal unfortunately once again could not take place in 2021 and was postponed until the first quarter of 2022.
Geberit continued last year’s initiative during the reporting year, which involves donating ceramic sanitary appliances that have been discontinued following brand harmonisation, but are as good as new, to social institutions. Around 1,800 ceramic appliances were delivered on four trucks to Moldova, where they were installed in schools, childcare centres and a boarding school for deaf-mute children.
Participation in the charitable organisation Swiss Water Partnership to promote international dialogue on the topic of water.

As a basic principle, all social projects are regularly checked by Geberit employees in the respective country or in partnership with non-governmental organisations – including after completion of the projects in question. All donations are neutral from a party political point of view. No donations were made to parties or politicians. This is ensured globally as part of the annual audit of the Code of Conduct.