Business Principles, your guide to acting with integrity

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Business Principles, your guide to acting with integrity

Transcript Of Business Principles, your guide to acting with integrity

General Business Principles
:-) Doing
the right thing Starts with reading the right thing
Philips General Business Principles, your guide to acting with integrity | June 2014

We’re on a mission to improve the lives of billions through meaningful innovation
The Philips Business System is how we work Philips Excellence shows us how we go from good to great!
Our culture is defined by doing the right thing
Our General Business Principles
guide us how to act with integrity
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We are on an exciting mission to improve people’s lives. Together, we will make the world healthier and more sustainable through meaningful innovation.
Our Philips Business System (PBS), which defines how we work as a company, will enable us to succeed in delivering superior results to our customers and shareholders.
Within the framework of the PBS, we practice Philips Excellence to become a truly great company. Philips Excellence consists of our five operating principles, which reinforce each other. The principle of People and Culture is underpinned by our behaviors: eager to win, team up to excel and take ownership, always acting with integrity. How do we define integrity? Through our General Business Principles.
Our standard of integrity
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.
Our shared responsibility
I expect everyone at Philips to act with integrity – at all times and in all situations. There is no opt-out. We not only need to know and understand our business principles, we need to live them every day – and speak up when we are in doubt. Daily pressures should never stop us from making the right decisions or holding each other accountable when we feel that we are not acting in line with the General Business Principles.
I am counting on you to put the General Business Principles at the heart of our business. Only then will we be able to create a healthier, more sustainable world and maintain the strong Philips brand for which we can all be proud to work.

Frans van Houten Chief Executive Officer

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Our commitment to always act with integrity
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.
To our employees
We value our employees and we encourage them to further their own personal development and make full use of their talents. We foster a healthy, safe and productive work environment and an open and inclusive atmosphere in which fair employment practices extend to every member of the diverse Philips community. We hold each other accountable to always act with integrity.
To our customers
We are committed to improving people’s lives through meaningful innovation. We seek to maintain an ongoing dialogue with our customers as partners. We are committed to listening to and learning from them, so that we can design and deliver the solutions they really want and need with speed, quality, fairness and integrity.
To our business partners
We pursue mutually beneficial long-term relationships with our business partners. We award business to partners who are committed to acting fairly and with integrity, observe applicable laws, and respect human rights.
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To our shareholders
We are committed to conducting our business in accordance with internationally accepted standards of good corporate governance and to providing timely, regular and reliable information on our activities, structure, financial position and performance. We aim to achieve a satisfactory return on equity, while at the same time retaining sufficient funds in the company to generate sustainable growth.
To the wider community in which we operate
We support and respect human rights and strive to ensure that our activities do not cause or contribute to the infringement of these rights. Consistent with our commitment to sustainable development, we do all that is reasonable and practicable to minimize any adverse effects of our activities on the environment. Each of us has a responsibility to comply with the laws of the countries in which we operate. Where there is a difference between a legal requirement and our Philips General Business Principles, we apply the stricter standard.
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Integrity at work
1.1 Fair employment practices
We believe a diverse workforce and an inclusive work environment are essential to a thriving innovative business. We strive to attract employees from a wide range of backgrounds. We do not discriminate on the basis of race, color, age, gender, gender identity or expression, sexual orientation, language, religion, political or other opinions, disability, national or social origin or birth. We promote a workplace that is free from physical and verbal harassment. We do not tolerate any conduct that creates, encourages or permits an offensive, humiliating or intimidating work environment. We do not make use of child labor or forced labor. We recognize and respect the freedom of our employees to associate with any employee organization of their own choosing under local law without fear of reprisal, intimidation or harassment. Where employees are represented by a legally recognized union, we establish a constructive dialogue and engage in negotiations or consultation as required with their freely chosen representatives. We aim to maintain a healthy, safe and productive work environment.
How do you spell integrity?
:-) Ahh!
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1.2 Protection of Philips’ assets and intellectual property
We protect Philips´ assets and resources, including trade secrets and prop­ rietary information, against illegal, unauthorized or irresponsible use. We treat third-party assets which are in our possession and confidential information disclosed to us by a third party with the same level of care. We safeguard our patents, trademarks, copyrights, trade secrets and other forms of intellectual property against unauthorized use or improper disclosure.
1.3 Privacy and data protection
We respect the privacy of our customers, employees, business partners and other relevant individuals, and we protect their personally identifiable information from abuse. We process the personal data of individuals only where there is a legitimate business purpose. Any processing of personal data shall be relevant to such business purpose and it shall be fair, accurate, transparent and in no way excessive.
1.4 Accurate business and financial records and reports
We record and report information accurately, completely and honestly. We do not make misrepresentations or false statements. We keep records of transactions in a transparent, accurate, complete and timely manner in accordance with Philips’ accounting principles. We record all payments properly and fairly in appropriate books of account. We have no unrecorded funds or assets, nor do we have ‘off the books’ or secret accounts.
1.5 Product safety
We attach prime importance to our customers’ safety. We design, produce and supply products and services in compliance with internal and external process, quality and safety regulations and standards.
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Integrity in the market
2.1 Fair and vigorous competition
We are committed to competing vigorously and fairly in a free market in order to give customers the widest possible choice of products and services at competitive prices. We avoid contact with competitors, unless there is a clear justification for such contact, and such contact is in compliance with antitrust law. We do not restrict our customers’ freedom to set their resale prices in cases where such a restriction would violate antitrust law.
How do you spell integrity?
:-) Ahh!
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2.2 Business intelligence
We obtain information about our competitors in a fair manner. We do not make use of confidential information disclosed to us by a third party if we suspect that in so doing the discloser is violating an obligation of antitrust law or confidentiality.
2.3 Conducting business with honesty and integrity
We are open, honest and ethical in all our dealings and operations, and do not employ corrupt practices or commit acts of bribery. We do not give or receive – either directly or indirectly – anything of value (including any payment, benefit, gift or hospitality) in order to obtain or retain business, influence business decisions, or secure an improper advantage in the conduct of our business. We do not offer or accept gifts or hospitality that may influence a business decision, lead to a relationship of dependency, or create the appearance of an impropriety. We may, however, offer and accept gifts and hospitality when reasonable, proportionate and intended to strengthen or build legitimate business relationships. We do not engage in the practice of facilitation payments to speed up or secure the performance of a routine government action.
2.4 Dealing fairly with business partners
We follow a thorough process to select and award business to business partners who are committed to, and demonstrate, responsible business conduct. Any commission payment to a business partner must be justified by clear and demonstrable services rendered by that business partner to Philips. We do not make cash payments.
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2.5 Dealing responsibly with government, political parties and politicians
We comply with public procurement rules that apply to government projects or contracts. We do not make any contribution, in money or in kind, to political parties or organizations, or to individuals engaged in politics.
2.6 Prevention of money laundering
We do not engage in money laundering – the process by which persons or groups try to conceal the proceeds of illegal activities, such as crime and terrorism, or try to make the sources of their illegal funds appear legitimate. We take appropriate measures to prevent money laundering by reporting suspicious transactions, such as payments between unknown entities through an excessive number of intermediaries, high-value cash transactions, or payments made or received by suspicious entities or involving high-risk countries.
2.7 Export controls and sanctions regulations
We transfer, sell and purchase goods, software, technologies and services in compliance with all applicable export controls and sanction laws and regulations. We adhere to these laws and regulations by implementing the restrictions applicable to countries, business partners and persons, and by classifying all goods, software, technologies and services in order to identify controlled status and possible restrictions on the export or transfer of these goods, software, technologies and services. Before entering into any business relationship or transaction, we review and assess the applicable export controls and sanctions and determine if the relationship/transaction is allowed, or if an export authorization or approval is required from the relevant government agencies.
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