Annual Report 2024

Annual Report 2024

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Services

Corporate culture

GRI

Management approach

To be able to operate internationally as a multinational company, clear rules of conduct are required. As a result, compliance and the adherence to applicable laws and regulations in the relevant areas comprises several guidelines for social, economic and environmental responsibility.

Impacts, risks and opportunities

A lack of care when observing ethical and social standards can encourage violations within the company and when dealing with external stakeholders, which could then lead to damages on both an individual (discrimination, health issues, changing jobs) and business level (distorting fair competition). Unclear structures and poor business management also bring the risk of a loss of trust among consumers and investors, plus damage to the company’s reputation. Conversely, a good corporate culture can enhance the company’s reputation and lead to increased employee satisfaction and overall productivity.

Values and codes of conduct

The successful implementation of the corporate and sustainability strategy at Geberit is based on core values such as integrity, modesty, team spirit, enthusiasm and an ability to embrace change. These values are defined in the Geberit Compass and Geberit Code of Conduct, which have been defined and adopted by the Board of Directors and Group Executive Board. The Compass describes the cornerstones of the corporate culture, including the joint basis for action (“Our mission”), values, operational principles and success factors. It is reviewed annually as part of the strategy process and updated, when required. A comprehensively revised version of the Compass will be introduced in 2025.

Due to its market position and size, the Geberit Group is an important company in the Swiss industrial landscape and in its own sector. This is why the company feels compelled to play a pioneering role when it comes to ethical and social matters. The Geberit Code of Conduct for Employees is a useful tool here. The Code of Conduct for Employees defines the principles of the corporate culture. It describes basic principles such as the respect for human rights, and defines ethical and social standards and guidelines for day-to-day work in the company and on its behalf. It also forms the basis for reviewing compliance with laws and due diligence obligations. The Code of Conduct for Employees was introduced in 2007 and updated in 2015. The version revised in the reporting year will be introduced in 2025.

The principles defined in the Code of Conduct for Employees include the respect for human rights, plus diversity and equal opportunity. With a non-discrimination approach that extends beyond the prevention and sanctioning of discrimination, Geberit makes a contribution to the elimination of social and systemic inequalities.

The Code of Conduct forbids discrimination as defined in the International Labour Organization (ILO) core labour standards. Neither discrimination nor workplace bullying on the basis of skin colour, gender, religion, creed, nationality, age, sexual orientation, physical or mental handicap, marital status, political views or other characteristics protected by law are tolerated. The company aims to offer a safe working environment for its employees. All forms of workplace violence, including threats, threatening gestures, intimidation, attacks and similar forms of behaviour are forbidden. Compliance with the Code is verified annually as part of a Group-wide survey in order to minimise risks due to violations of the principles of non-discrimination.

Furthermore, Geberit is committed to ensuring social, economic and environmental responsibility and integrity in the supply chain. The Code of Conduct for Suppliers ensures adherence with high standards in the entire value chain.

Implementation of norms and standards

Geberit has established an effective, decentralised compliance system to ensure that its conduct is both ethical and legally compliant. The system comprises various elements such as guidelines, continuous training, job orientation for new employees, eLearning campaigns, compliance-related audits, annual reporting on the Code of Conduct and the Geberit Integrity Line – a whistleblower hotline for employees and suppliers.

Activities worthy of particular mention include the following:

  • Training courses: All new employees at Geberit are trained on the Code of Conduct as part of the Welcome events, particularly on the topics of corruption, IT misuse, workplace bullying and sexual harassment. Training sessions on data protection are also held in the European markets, while event- and topic-specific training in the area of antitrust legislation is additionally carried out at the relevant companies and business areas of the Group. Information and measures for raising awareness are regularly provided via the Geberit Intranet (GIN), which has also been available to all employees via mobile app since 2020.
  • Certification: The Geberit Group has a Group certificate in accordance with ISO 9001 (quality), ISO 14001 (environment) and ISO 45001 (occupational health and safety) that is valid until 2027. All production plants, the logistics centre in Pfullendorf (DE) and the management company incorporating all Group functions at headquarters in Rapperswil-Jona (CH) are certified in accordance with ISO 9001 (quality), ISO 14001 (environment) and ISO 45001 (occupational health and safety). In addition, five plants are certified in accordance with ISO 50001 (energy) and nine sales companies in accordance with ISO 9001 (quality).
  • Audit management: The audit tool developed in 2020 and implemented in 2021 was also further developed. This enables the digital management of internal and external audits and provides an overview of the measures and their implementation as part of the process improvement. Furthermore, the Group-wide availability of the tool makes it easier to share best practices.
  • Regular inspections: In the areas of employee protection and human rights, the company acts in line with the UN Guiding Principles and Art. 964a ff. of the Swiss Code of Obligations (CO). As the Group is active globally – including in at-risk regions – adherence to human rights (see Code of Conduct) is inspected annually in all companies. For further information with regard to the implementation of due diligence obligations and compliance in procurement, see Procurement.

Ethical advice and concerns

According to the Geberit Code of Conduct, employees who openly address irregularities which represent breaches of applicable law, ethical standards or the Code of Conduct are acting correctly. In doing so, Geberit employees are contributing to their own protection, that of their colleagues and the protection of the company’s rights and interests.

If issues should occur, employees should seek a personal meeting with their supervisor. The Geberit Integrity Line is available to all employees as a whistleblower hotline in the corresponding language. The service is intended to enable employees to anonymously report cases that represent breaches of applicable law, ethical standards or the Code of Conduct. The Integrity Line is operated by an external company with experience in this area, and is available seven days a week around the clock. It meets the requirements set by the EU Whistleblower Directive. In addition to the Group-wide reporting point, an additional national reporting channel has also been set up in Poland for completing the implementation of national laws adopted based on the EU Whistleblower Directive. Two minor cases were recorded by the Integrity Line for employees in the reporting year.

Geberit expects the business activity of its partners along the value chain to be correct in every respect. The mandatory central requirements for suppliers and business partners are defined in a Code of Conduct for Suppliers. Among other aspects, this document focuses on the areas of human rights (including child and forced labour), occupational health and safety, remuneration, environmental protection as well as integrity (including bribery and corruption). Since 2017, an Integrity Line has also been available to suppliers for anonymously reporting irregularities in the procurement process or non-compliance with the Code of Conduct for Suppliers. There were no reports from suppliers in the reporting year.

Compliance with laws and regulations

Compliance with the provisions of the Code of Conduct is ensured by an effective, decentralised compliance system. The following topics are the responsibility of the respective departments:

It is expected that all employees are familiar with and understand this Code of Conduct and act accordingly without exception.

A comprehensive review on compliance with the Code of Conduct takes place as part of the annual reporting. All companies receive over 60 questions on the listed key topics. In addition, the Internal Audit Department conducts on-site audits. These also comprise separate interviews with the managing directors of the individual companies on the topics mentioned in the Code of Conduct. The respective information is verified. The findings from the survey and audits form the basis for the annual Compliance Report submitted to the Board of Directors and Group Executive Board and are published in accordance with the GRI guidelines in this report. Non-compliance with the Code of Conduct will be systematically sanctioned.

The compliance organisation was last audited in 2021 by the auditing company KPMG. In addition, internal audits with compliance reviews took place at 19 companies of the Geberit Group in the reporting year.

In the reporting year, a fine of around 18,000 euros was imposed in line with national provisions in connection with an occupational accident in the previous year. Otherwise, there were no violations against occupational health and safety or environmental regulations.

For further information on the topic of compliance, see Business Report > Business and financial review > Financial Year 2024 > Compliance.

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