According to Transparency International, corruption is very widespread in the countries marked in red and orange on the map. Kiilto Family Group's eight subsidiaries are located in these countries. How do we control corruption in our operations?
Responsibility is part of everyday activity and management at Kiilto, and is embedded in its operating culture. We insist that every Kiilto employee acts responsibly in their work and promotes the wellbeing of both the internal and external environment. We do not tolerate corruption in any form.
Our corruption control is based on the above-mentioned, publicly declared values. In addition to being a matter of values and attitude, responsibility is about experience. Employees who feel that their company acts responsibly towards them and their stakeholders will internalise responsibility in their own actions.
Anti-corruption activities begin with the induction of new employees. We make it clear that we do not accept corruption in any form and that, if we note that an employee is using or accepting bribes, we will terminate their employment. For example, in Russia ethical principles form part of the company's official rules, which every employee signs up to. In addition, we take suspected cases of bribery seriously and investigate them thoroughly. An investigation alone sends a clear message through the organisation, even if no evidence is uncovered of abuse.
We apply the so-called White Book guidelines in Russia, Belarus and Ukraine. The White Book includes a description of internal control methods and governance for dividing work and powers between the AGM, Board of Directors, CEO and management group. It also presents tangible reporting guidelines, inspection and approval processes for invoices and contracts, and the ethical principles to which the company and its employees are committed.
The parent company monitors the purchasing function of the three factories in Russia, ensuring that corrupt practices do not take hold and harnessing purchasing synergies at the lower levels of the group.
The International Chamber of Commerce's Anti-Corruption Clause was added to general terms of sale or contract models in Kiilto and its subsidiaries in 2015. Ethical guidelines were introduced in Finland's purchasing function in 2017. The guidelines make it clear that a competitive price alone is not sufficient – operations must be responsible.
In countries where corruption is an everyday phenomenon, expediting or simplifying dealings with officials is bound to seem tempting. However, this is not an option at Kiilto. Our almost century-old family firm has a long perspective: success is not primarily measured through current activities, but by the extent to which we can build sustainable success. Our vision looks ahead to 2080. We aim to be corporate citizens who handle our affairs as they should be handled. We believe that society will develop and function if everyone does their share.