Ethics and Corporate Citizenship

Present in over 100 countries through our products

Hager Group is committed to behaving responsibly in relation to all its stakeholders. A thoughtful approach to business ethics is central to how Hager Group operates.

We recognise that our actions have a direct impact on the communities and environments in which we operate, and we are dedicated to ensuring that these impacts are positive and well managed. Our approach to ethical business conduct is rooted in transparency, accountability and respect for all stakeholders. The main objectives of the Ethics Group Team lead by Denis Munch, our Group Ethics Officer and CSR Director, are to raise awareness and instil an ethics culture.

Our group policies are important in fighting corruption; they provide a framework for ethical behaviour & decision-making, set clear expectations & consequences for violating these expectations and promote a culture of transparency and accountability. By establishing these policies and enforcing them consistently, we deter corrupt practices and create a working environment where employees are less likely to engage in corrupt behaviour.

The ethics pillar of E3, has four components: our Hager Group Ethics Charter as a reference document, ethics training, and an Integrity Alert System “Let’s talk”, and an Ethics Ambassadors Network.

05.1

Ethical Risk Assessment

Fostering a culture of ethical behaviour and improving our stakeholder relationship can only be achieved by minimising the likelihood of ethical breaches. Ethical risk assessment is essential for our group because it has a significant impact on society, the environment and the economy. By conducting an ethical risk assessment, we identify potential ethical risks and can therefore manage them effectively.

As shown below, our ethical risk assessment method comprises several steps:

Benchmark ethical risks: this is the process of comparing our group’s ethical risk management practices with those of other companies or industry standards. The goal of benchmarking ethical risks is to identify best practices and areas for improvement in our ethical risk management approach.

Interviews: holding interviews after selecting relevant stakeholders representing sensitive functions is essential to providing information about a particular area of risk that may not be readily available through other sources. Interviews contribute to identifying potential ethical risks, assessing the effectiveness of existing controls and developing strategies to mitigate risks.

Identify potential ethical risks: identify potential ethical risks associated with actions, decisions or situations. This could include risks related to conflicts of interest, breaches of privacy, discrimination, environmental impact and others.

Prioritisation: we evaluate the potential ethical risks to assess the severity and likelihood of each potential ethical risk. This involves the potential harm to stakeholders, the extent of the risk and the probability of it occurring.

Ethical Risks Assessment Results for 2021

05.2

Ethics Charter

At Hager Group, we put a strong emphasis on a responsible approach towards business. As a family-owned and run company, our values and ethical stance are an integral part of our business. Ethical business is not a vague concept at Hager Group. Our Ethics Charter is a foundational component of our business. The charter contains a set of rules that apply to everyone within the company as well as external parties we work with. It guides us through complex situations, ensuring we make the right decisions when tough choices are faced.

This approach considers our own employees as well as everyone involved in our value chain: from our suppliers to partners and customers. We believe that sustainable business requires trust between all stakeholders. For us, the best way to achieve this is by staying true to our values and putting them into action.

The Ethics Charter was developed in 2012 and updated in 2018. It is displayed in all Hager Group sites and departments and explained to all employees when they join the company. The Ethics Charter is supported by Business Ethics training and awareness. Ethics training has evolved and been adapted over the years. Its goal is to strengthen our ethical mindset through a combination of e-learning modules and interactive tools, including game-based awareness sessions to learn how to deal with complicated ethical situations without any negative impact on the business or any of our stakeholders.

05.3

Reporting integrity and ethical alerts

Our Integrity Alert System called “Let’s talk” allows employees and other stakeholders to report suspected unethical practices confidentially and without fear of retaliation. The system is available 365 days a year in the native languages of all employees at Hager Group. The service is assured through a third-party independent agency guaranteeing data protection. Misconduct can be reported anonymously or not. In 2021, 13 cases of ethical misconduct were reported in the categories detailed below:

When an alert is received, an investigation is conducted by the Group Ethics Officer with the assistance of local Ethics Ambassadors and relevant functions. To address the reported case, an Ethics Committee composed of the relevant Hager SE Executive Board members, the Works Council President and the head of the department concerned by the alert is responsible for developing an action(s) to address and correct the issue(s). This process is detailed below:

05.4

Ethics Training Programme

This Hager Group tailor-made e-learning programme covers the basics of business ethics for our group: our ethical culture, our Ethics Charter, our Integrity Alert System and our Ethics Ambassadors are also trained internally.

The objective of the training module “Business Integrity @ Hager Group” is to gain a basic understanding of what business ethics is and why it is important for any company. A second objective is to present the main elements of Hager Group’s ethical culture.

The training programme currently has three different modules:

“Let’s Practice!” is a tailor-made serious game developed for Hager Group on business ethics. It is mandatory training for those chosen by HR.

The objective of “Let’s Practice!” is to give participants a chance to:

• Discuss and learn how to analyse and interpret difficult ethical situations,
• Determine what actions to take, or where to look for help,
• Be able to defend their choices.

The content is developed based on, but not exclusively, real-life situations experienced by Hager Group colleagues.

Currently under development is a tailor-made workshop called “Ethics @ Hager Group”. It is based on the general concepts of and the importance of ethics at Hager Group as well as the serious game “Let’s Practice!”. This workshop is specifically aimed at and adapted to colleagues in production.

The objectives of “Ethics @ Hager Group” are:

• Individual questioning on the notion of ethics and the impact in a professional context.
• Defining what ethics is.
• Being able to apply this in a professional context.

To be rolled out in 2024, the workshop targets 4.800 blue collar employees, it is on a voluntary basis. Training will be available in French, German, Italian, Spanish, Chinese and Polish.

In addition to the programmes detailed above, “off the shelf” training modules are provided in three different fields of interest:

• Anti-bribery and corruption
  February 2023
• Conflict of interest and fraud
  June 2023
• Discrimination and harassment
  October 2023

05.5

Ethics Ambassadors

Ethics Ambassadors are Hager Group employees from different functions and countries to promote ethical behaviour and values within the organisation. They act as advocates for ethical conduct and serve as a resource for employees who have questions or concerns about ethical issues.

Our Ethics Ambassadors are selected based on their knowledge and understanding of the organisation’s ethical policies, their ability to communicate effectively and their commitment to promoting ethical behaviour. They receive special training to help them fulfil their role effectively.

The responsibilities of Ethics Ambassadors may include:

• Promoting the group’s Ethics Charter and values to all employees
• Providing guidance and advice to employees on ethical issues and dilemmas
• Identifying potential ethical issues and bringing them to the attention of management
• Contributing to Let’s talk investigations
• Implementing training programmes, in particular the serious game “Let’s Practice!”
• Encouraging open communication and transparency within the organisation
• Serving as a liaison between employees and management on ethical matters
• Participating in the development and implementation of ethical policies and procedures.

05.6

Corporate Citizenship

Peter und Luise Hager Foundation

The Peter und Luise Hager Foundation was established to serve as an umbrella organisation for our charitable activities and reflect the corporate citizenship of the company. It focuses on the development, support and implementation of its own projects. The Foundation’s desire is to promote skills and education in all areas forms the overarching framework for all projects.

Professionalism and responsible handling of the Foundation’s funds guarantee that the help arrives exactly where needed. Accordingly, the Foundation focuses on the following, which also reflect the philosophy of the group:

Education and learning (EL)
Science and research (SR)
Art and culture (AC)
Environmental protection (EP)
Social activities (S)

In 2021, more than 420.000 € in funds were allocated by the Peter und Luise Hager Foundation:

EL – Education and learning
SR – Science and research
AC – Art and culture
EP – Environmental protection
S – Social activities