Governance, Integrity & Compliance

The area of ​​corporate governance represents a system to manage and supervise the company, while striving for management that is responsible, qualified, transparent and focused on the long-term success of the company and protection of the interests of relevant entities. Generally, it is a set of legal and executive methods and procedures that oblige a company to maintain a balanced relationship between itself and its employees. Corporate governance also defines the distribution of rights and responsibilities between relevant entities, such as shareholders, executive management, corporate bodies, employees and customers.

In the area of ​​ethical standards, Škoda Auto adheres, among other things, to the relevant recommendations and rules of the Corporate Governance Code, based on OECD principles (hereinafter the Code). The aim is to further promote transparency and adherence to ethical behavior in the business environment through the continuous improvement of internal processes and procedures in accordance with the Code.

Škoda Auto's own corporate culture and policy is based mainly on the principles defined in the Škoda Auto Group Code of Conduct. The adopted Code of Conduct is based on generally accepted social values.

At Škoda Auto, we believe that only honest and reliable conduct in accordance with the principles of integrity will enable us to gain and strengthen the trust of employees, customers, shareholders, business partners and the general public. Acting in accordance with the principles of integrity is therefore an integral part of the Next Level - Škoda Strategy 2030 and is as important to Škoda Auto as the quality of its products, financial goals and customer satisfaction.

One of the tools for raising awareness among Škoda Auto employees and management about the topic of integrity and its importance for business activities is also the Together4Integrity program. This includes, among other things, initiatives that contribute to making society an example in acting in accordance with the principles of integrity. That integrity is one of the main principles of our business is also proven by the fact that it is one of the criteria for decision-making by the company's board of directors. All proposals submitted to the company's Board of Directors must therefore contain the opinion of the relevant department of the company on how the decision contributes to the fulfillment of the principles of integrity and compliance principles or whether there are potential risks associated with them.

You can find more information on integrity at the Volkswagen Group on the following page: https://www.volkswagenag.com/en/sustainability/integrity.html.

If you have any questions regarding the integrity topic you can contact us via email: integrity@skoda-auto.cz

Škoda Auto is convinced that economic success is only sustainable if compliance with the rules is ensured, and therefore pays special attention to the obligation to comply with legal and internal regulations, ethical and other rules voluntarily adopted by the Volkswagen Group and Škoda Auto. The compliance policy is not limited to business relationships, but applies to all activities inside and outside the company. With this approach, Škoda Auto demonstrates that its conduct will comply with the requirements of legal and ethical rules applicable, inter alia, to competition, the financial and tax sectors, environmental protection and employment relations, including the provision of equal opportunities.

The Governance, Risk & Compliance department provides advice on all compliance issues and raises awareness of its importance among employees and third parties through appropriate measures. The following e-mail address serves for the needs of the mentioned consultancy: compliance@skoda-auto.cz. 

The Code of Conduct summarizes the basic principles of conduct of Škoda Auto employees and serves as an aid in managing legal and ethical challenges. Škoda Auto's reputation is a fundamental value that depends on the commitment of employees worldwide to act in accordance with the Code of Conduct and all applicable legal and internal regulations. The principles of conduct stated here have become an integral part of Škoda Auto's corporate culture.

At Škoda Auto a.s., 2 systems for reporting hints are available. Further information about them can be found under the links below:

Central whistleblowing system for companies and brands of the Volkswagen Group

Whistleblowing system of Škoda Auto a.s. according to Czech Act No. 171/2023 Coll., on the Protection of Whistleblowers

It is crucial for the long-term success of Škoda Auto that it is able to identify, anticipate and manage possible risks and opportunities arising from its activities in a timely manner. The risk management structure at Škoda Auto is based on the unified risk management principle in the Volkswagen Group, which follows the internationally recognized COSO Enterprise Risk Management Framework standard.

The aim of the risk management system is to identify potential risks at an early stage so that the company can take appropriate countermeasures in a timely manner, prevent potential damage and eliminate any risks that could jeopardize its existence. As the probability and impact of future events are subject to a degree of uncertainty, even the best risk management system cannot anticipate all possible risks, just as the best internal control system cannot fully prevent unforeseen events. On the other hand, changes in the economic and legal environment can lead to opportunities that the company seeks to use to strengthen and further improve its competitive position.