Ethics and Compliance

03 IMPROVE SELL

Exercise robust governance, risk management and compliance

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Our objectives

  • All employees, suppliers and contractors must comply with our Code of Ethics, conducting business with integrity and in a responsible, ethical and sustainable manner.
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UN SDG

SDG 08

Exercise robust governance, risk management, and compliance

Sound business ethics and integrity are core to the Group’s values and are fundamental for the success of our strategy. Melrose is a UK premium listed company with strong, established financial controls that are continually assessed, tested and reviewed.

This robust framework is supported by an independent internal audit function, regular public disclosure and financial reporting, external audits, public accountability and conformance with leading benchmarks set by the UK Corporate Governance Code. It is also supported by investor requests and direct engagement with them and corporate governance and proxy advisors, and extensive engagement with the Group’s wider stakeholder base to ensure best market practice is implemented.

The high standards of financial and non-financial controls, and strong governance backed by internal and external auditing of financial and non-financial compliance, are enforced throughout the Group. Directors, officers, employees, and contractors throughout the Group, whether permanent or temporary, and in respect of any entities over which Melrose has effective control, must comply with Melrose’s Code of Ethics, which was updated in 2020 to reflect current best practice and strong corporate citizenship. Each business is required to communicate and embed the Code of Ethics within their operations and activities to ensure that they conduct business with integrity and in a responsible, ethical and sustainable manner.

The Code of Ethics, has been approved by the Board and includes policies covering best practice with respect to anti-bribery and corruption, anti-money laundering, anti-facilitation of tax evasion, competition, conflict minerals, trade compliance, data privacy, whistleblowing, treasury and financial controls, anti-slavery and human trafficking, document retention, and joint ventures. Implementation is supported by risk assessments, audits and reviews and annual compliance certifications. Melrose strongly believes that policies and procedures are only as effective as the people who implement them. To that end, all of the above measures are backed by investment, resources and training. The Audit Committee reports directly to the Board. It oversees the Group’s internal control processes and, together with the Board, monitors breaches of the Melrose Code of Ethics. Please refer to our 2020 Annual Report for full details on the Group’s approach to risk management.

Anti-bribery and anti-corruption

We take a zero-tolerance approach to bribery, corruption and other unethical or illegal practices, and are committed to acting professionally, fairly and with integrity in all business dealings and relationships, within all jurisdictions in which we and our businesses operate. Melrose requires its businesses to adopt high governance standards, to ensure that the Group conducts business responsibly, sustainably, and in the pursuit of long-term success for the collective benefit of stakeholders. This is outlined in our anti-bribery and corruption policy, which is implemented and administered throughout the Group. Melrose prohibits lobbying involvement and political involvement of any kind across the Group.

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Whistleblowing

Melrose runs a Group-wide whistleblowing platform, which is overseen by the Audit committee reporting to the Board and supported by the Melrose senior management team. All employees have access to a multi-lingual online portal to raise concerns, confidentially and anonymously, about possible wrong-doing in any aspect of their business, including financial and non-financial matters. 

Whistleblowing Policy

Modern slavery, human trafficking and human rights

Modern slavery and human trafficking

As set out in the Melrose anti-slavery and human trafficking policy, the Group has a zero-tolerance approach to any form of modern slavery. In accordance with the Modern Slavery Act 2015, Melrose publishes its own Modern Slavery statement, which is approved by the Board annually. Under Melrose’s decentralised group structure, each business is responsible (where applicable) for publishing their own Modern Slavery statement in accordance with the requirements under the Modern Slavery Act 2015.

 

Human Rights

We are committed to acting in an ethical manner with integrity and transparency in all business dealings, and to create effective systems and controls across the Group to safeguard against adverse human rights impacts. The Group has a strong culture of ethics and integrity and works to ensure adherence to the Melrose Code of Ethics, which encompasses key human rights considerations. The Group supports the principles set out in the UN Declaration of Human Rights. There have been no violations reported on human rights by our Group businesses in 2020 and for the previous two years.