60 ANNUAL REPORT 2015 MANAGEMENT REVIEW/OUR CORPORATE GOVERNANCE Our moral compass With a global strategy and a company in growth, a strong and uniform approach to compliance and governance is important. Knowing right from wrong goes beyond laws, regulations and a strict set of rules. For us, responsible business conduct comes from living our company values, through our culture of openness and transparency starting at the top of the organisation and spanning all our business groups. Strong values are the foundation of our company. Arla’s corporate directives and polices establish a clear link between our values, incorporated in our responsibility, and the way we conduct our business and engage with our stakeholders, internally and externally. They are global principles that provide guidance to every colleague to align behaviour and actions across countries and functions and put our corporate values into practice. Adherence to our corporate directives and policies is monitored closely across the organisation and immediate action is taken to remedy non-compliance. Our compliance activities are structured in accordance to the internal control framework, COSO. The activities are dedicated to developing and sustaining efficient systems and internal controls that support business objectives. Good practice Put simply, Arla is people. We are a large cooperative and we rely on one another to act responsibly in accordance to our shared goals and values. We are dedicated to managing our resources in the best possible way. We achieve this through a combination of policies and culture which frame our behaviour. An example of this is within CAPEX, where a budget of two per cent of revenue sets the framework, supported by several policies and guidelines regarding leasing and investment to ensure compliance. Behaviour is monitored actively and corrective actions taken if needed. This also applies to our cost behaviour, as prudence is an integral part of our everyday operations. OUR GOVERNANCE FRAMEWORK Code of Conduct Directives Policies Procedures/guidelines
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