Anti-corruption

Policy

Royal Unibrew works against all forms of corruption, including extortion and bribery. Our activities must always be in compliance with existing anti-corruption legislation, irrespective of geographical area.

Activities

According to Royal Unibrew’s Code of Ethics, our employees are not allowed to offer or accept bribes or any improper payments for personal or corporate gain.

Disciplinary actions will be taken if an employee is involved in bribery. The staff in all sales areas are trained annually in this aspect.

Royal Unibrew has incorporated into its contractual basis for trading with key suppliers and partners a requirement for compliance with anti-corruption legislation.

Risk

Royal Unibrew is exposed to non-compliance with anti-corruption legislation through employees’, suppliers’ and partners’ violations, and is also exposed to potential legal and financial implications of such non-compliance.

Kpi

The Company’s stand on anti-corruption is communicated in all contexts, both in the internal supply chain and in our external cooperation with customers and suppliers.

All employees receive Royal Unibrew’s Code of Ethics when employed, and sales staff and other employees are trained in anti-corruption.

Compliance with the anti-corruption rules is addressed at annual status meetings with key suppliers.

Performance

Royal Unibrew did not note any violations of Royal Unibrew’s anti-corruption rules in 2016.

Competition

Policy

Royal Unibrew’s business must always be conducted in full compliance with existing local and international competition legislation; irrespective of the place of operation.

Activities

Royal Unibrew has a competition law compliance programme comprising a manual and guidelines. The programme includes regular training and follow-up towards relevant employees, eg through regular internal controls.

Risk

Royal Unibrew is exposed to non-compliance with competition legislation through employees’ violations of competition rules in the countries in which Royal Unibrew sells and distributes its products.

Kpi

Royal Unibrew continuously monitors developments in competition legislation and updates its compliance programme.

Royal Unibrew continuously trains managers and employees within sales and procurement in applicable rules.

Continuous follow-up is effected by implementing internal controls and controls in connection with signing of contracts.

Performance

Royal Unibrew did not note any violations of competition legislation in 2016.

Tax policy and tax payment

Policy and Activities

Royal Unibrew operates in a number of countries and is therefore subject to both national and international tax rules. At the same time, the nature of Royal Unibrew’s business implies that both direct and excise duties are paid in the individual markets. Through its tax payments, Royal Unibrew contributes positively to society in the respective countries – as it does by creating jobs and using sub-suppliers.

The following general principles apply to Royal Unibrew’s management of tax issues:

  • Royal Unibrew pays taxes on its activities in the countries in which the activities are carried out, and no special tax structures for the purpose of tax optimisation are applied.
  • Royal Unibrew endeavours to live up to national and international tax legislation at all times and sets out to enter into an open and constructive dialogue with the tax authorities.
  • Royal Unibrew has developed an internal organisation and has laid down well-defined control procedures designed to ensure compliance with tax legislation.
  • Royal Unibrew wants to communicate openly and fairly about its tax policy and tax payments.

Risk

Mismanagement of tax issues may lead to a negative image with investors and business partners in general, and may lead to higher tax costs.

Kpi

Royal Unibrew continuously updates its processes and documentation of tax legislation compliance in all the countries in which the Company operates.

Performance

Royal Unibrew was not involved in any cases of non-compliance with tax legislation in 2016.

In 2016, the effective tax rate was 21% of profit for the year (2015: 21%). Royal Unibrew paid corporation tax of DKK 211 million on its operating activities (2015: DKK 197 million). In addition to that, Royal Unibrew’s activities generate other considerable tax payments, including excise duties on beer, mineral water and other items, VAT, personal taxes and social security contributions. The total contribution through taxes in 2016 amounted to DKK 5.0 billion (2015: 4.6 billion). Moreover, tax contributions from the Group’s suppliers and customers are indirectly generated.