Compliance, Integrity & Risk Management

At Audi, compliance and integrity are an integral part of all business processes and decisions. The focus here is on anti-corruption, human rights and fair competition.

The Audi Group rejects any form of corruption, cartel formation, money laundering or other white-collar crime. The company views compliance and integrity as a basis for its business operation. Acting and operating with integrity are an integral part of corporate responsibility to employees, customers, business partners and other stakeholders.

Compliance in a legal sense means observance of legal provisions, requirements of regulatory authorities, internal company policies and voluntary commitments by the company, its bodies and employees. If no specific rules are in place, companies are often faced with a dilemma. To stand firm in these situations, regardless of economic or social pressure, requires integrity – in other words, responsible and entrepreneurial action geared toward values and principles that are recognized in society and agreed on within the company.

Material effects, risks and opportunities for Audi

Important effects, risks and opportunities were identified in the Audi materiality analysis. Compliance and integrity are an important foundation for the company – with direct impact on daily collaboration, the trust of customers and business partners, sustained business success and the reputation of the Four Rings. Compliance as well as behaving and acting with integrity shape interactions in the company, the decision-making processes along the value chain and the trust-based and reliable partnership in business relationships.

The risks that can potentially arise as a result of legal and regulatory violations are varied and can damage a company from an economic, ecological and social perspective.

Clear Code of Conduct as an underlying basis

Compliance and integrity are anchored in the Audi business processes and are revised continually. The company specifies binding compliance regulations and also places clear demands on its suppliers and business partners. Within the Audi Group, the “Integrity, Compliance, Risk Management” unit is responsible for the topic of compliance management.

The Audi Group commits its employees and business partners to comply with the binding Audi Code of Conduct (CoC) or the Volkswagen Code of Conduct for Business Partners (CoCBP).

The Audi CoC forms the ethical and value-based foundation for acting compliantly and with integrity. It summarizes the most important principles and expectations for lawful, integrity-based and sustainable behavior and action for all employees and managers of the Audi Group.

In addition, the due diligence obligations of the company and its business partners are set out in the CoC and CoCBP. They also include the commitment to equal opportunities and equality, to respecting human rights and to compliance with environmental protection and occupational health and safety.

The Audi Group expects not only its employees to comply with applicable laws and ethical basic values, but also its suppliers and business partners. Audi views shared values as a platform for trust-based cooperation. These values are translated into specific requirements in the CoCBP.

The Volkswagen Social Charter also applies in the Audi Group. This charter is a declaration on social rights, industrial relationships as well as economic and human rights.

Management systems and specific measures strengthen compliance and integrity

In accordance with legal provisions, the Board of Management of AUDI AG has set up specific management systems as part of corporate governance: a Risk Management System (RMS) including a risk early warning system, a Quality Management System (QMS) and a Compliance Management System (CMS). All of these systems ensure that the company is able to identify and assess risks, comply with quality requirements and adhere strictly to laws and regulations. They are operationalized through corporate and brand group policies, process and work instructions.

Regular, dialogue-oriented communication measures and comprehensive training and participation formats help instill value-focused ways of thinking and acting in employees and managers. Regular online training sessions on integrity issues, some of them mandatory, create a common understanding and the basis for ethically and legally sound behavior.

Analysis of compliance risks

Compliance risks are analyzed in Audi Group companies with the help of the Internal Compliance Risk Assessment (ICRA). This is a standard process of the Volkswagen Group for identifying, evaluating and documenting compliance risks in the categories of corruption, money laundering and terrorism financing, as well as fraud and embezzlement.

The Automated Compliance Risk Analysis (ACRA) serves to identify division-specific compliance risks at AUDI AG. This analysis addresses the Board of Management and top management and, in addition to traditional compliance topics such as anti-corruption, outsourcing, human rights and business partner due diligence, also covers topics such as working hours (HR compliance). The ACRA is carried out every one to three years, depending on the risk and hazard potential.

The compliance and integrity activities also include regular targeted communication. Regular and ad-hoc reporting by the Chief Compliance Officer to the Board of Management and Audit Committee of the Supervisory Board of AUDI AG, to the Group Chief Integrity & Compliance Officer of the Volkswagen Group and, where needed, other management positions at Audi and Volkswagen ensures a continual flow and exchange of information. This communication includes the Governance, Risk & Compliance annual report and reporting on the Whistleblower System.

Whistleblower System

The Whistleblower System is an independent and unbiased tool for reporting and receiving specific leads on potential misconduct by employees of the Audi Group. Based on binding principles and regulated procedures, the Whistleblower System aims to prevent damage to the company, the workforce as a whole and other stakeholders.

Find out more about this here.

Actively combating corruption

Internationally active companies like AUDI AG are continually exposed to corruption risks in their everyday business. Not only can the occurrence of such risks lead to significant financial losses, but also to reputation damage. Acting with integrity and engaging in fair competition are therefore a fundamental pillar of the long-term success of the Audi Group – beyond all country borders.

Find out more about the topic of anti-corruption here.

Antitrust law

Compliance with antitrust regulations is vital to the company’s success. The company therefore expressly requires its employees to observe antitrust law, as stated in the CoC and in internal company regulations. Training courses as well as specialized legal consultants of AUDI AG help employees to recognize situations relevant to antitrust law and to act in accordance with the rules.