Investor Relations

Business Principles

Acting with integrity is at the heart of our culture, and is part and parcel of our company’s mission and vision.

 

While pursuing our business objectives, we aim to be a responsible partner in society, acting with integrity towards our employees, customers, business partners and shareholders, as well as the wider community in which we operate. 

General Business Principles

 

The General Business Principles set the standard for acting with integrity at Philips. They govern all our decisions and actions throughout the world and apply equally to our group actions and to our conduct as individuals.

 

The General Business Principles are an integral part of Philips’ labor contracts and are available in 32 languages.

 

To drive the practical deployment of the General Business Principles, detailed underlying policies are in place that can be adapted as needed to reflect ongoing (regulatory) developments, both internal and external. Furthermore, separate Codes of Ethics apply to employees working in specific areas of our business, i.e. the Procurement Code of Ethics and the Financial Code of Ethics. The Financial Code of Ethics contains, among other things, standards to promote honest and ethical conduct, as well as procedures for full, accurate and timely disclosure in order to avoid conflicts of interest.

 

The following standards served, amongst others, as reference in the preparation of the Philips General Business Principles and may be a useful source of additional information: Universal Declaration of Human Rights, UN Guiding Principles on Business and Human Rights, The eight fundamental Conventions of the International Labour Organization, nos. 87, 98, 29, 105, 138, 182, 100 and 111, UN Global Compact, International Chamber of Commerce (ICC) Code of Advertising and Marketing Communication Practice, OECD Guidelines on the Protection of Privacy and Transborder Flows of Personal Data, OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions, OECD Guidelines for Multinational Enterprises, United Nations Council Resolutions on export controls.

Compliance and Reporting

 

Responsibility for compliance with the General Business Principles rests principally with the management of each business. Every market organization and each main production site has a GBP Compliance Officer. Confirmation of compliance with the General Business Principles is an integral part of the annual Statement on Business Controls. The management of each business unit is required to issue such a Statement as part of a cascading process leading to CEO/CFO certification of the company’s annual accounts.

 

Philips has a GBP Reporting Policy in place that encourages all employees to report any suspected violation of the General Business Principles that cannot be resolved together with the management concerned or that constitute an immediate threat to corporate integrity.

 

Philips Ethics Line

Philips cares about being a responsible partner in society, acting with integrity towards our employees, customers, business partners and shareholders, as well as the wider community. While pursuing our business objectives, we always strive to do this in a responsible manner to ensure we are doing the right thing.

If you know of any ethical breaches regarding Philips business, we invite you to report your concerns, confidentially, through the Philips Ethics Line, a reporting website and toll-free telephone service. Your support will help us to live up to our aspirations for being a responsible business partner.

 

In all countries where it is permitted by law, the Philips Ethics Line is available 24 hours a day, 7 days a week, 365 days a year and in your local language. In most instances, if not legally prohibited, you may opt to remain anonymous, and your report will only be shared with those responsible for handling your concern. All concerns will be treated in line with the GBP Reporting Policy, in which you will also find an escalation method if the Philips Ethics Line is not available in your country.

 

To ensure maximum confidentiality, the Philips Ethics Line is hosted by a third party outside the Philips organization. The call center does not utilize any recording devices, and cases are securely recorded on a database outside the Philips network to ensure anonymity.

Integrity awareness

 

In order to ensure constant awareness – throughout the company – of the need to act with integrity, a worldwide communication and training program, including mandatory sign-off on the General Business Principles, is in place.

 

On an annual basis, global internal communications programs are rolled out with the participation of the Executive Committee and the respective Sector, Area and Market management.

 

A web-based GBP training tool is available to all employees with online access in 23 different languages. This tool is regularly updated. Also, dedicated training courses – both web and classroom-based – are offered to specific audiences and functional areas.

 

GBP Compliance Officers are regularly enrolled in dedicated e-training programs that include complaint-handling procedures and dilemma training. Furthermore, a regular two-day train-the-trainer program for compliance awareness is mandatory for all Philips GBP Compliance Officers.

Quality policy

 

Our quality policy is captured in five principles. Everybody in the company has a responsibility in delivering quality through adopting these principles.

 

With our hearts and minds we:

  • delight our customers and deliver our brand promise
  • design and deliver safe, reliable, and effective products and services
  • drive a culture of continuous improvement
  • comply with applicable internal and external regulatory and compliance requirements
  • maintain an effective and efficient quality management system.

 

The Quality & Regulatory Committee assists the Supervisory Board in fulfilling its oversight responsibility with respect to the quality and assesses the culture of quality within the company.