The Group is committed to doing business honestly and openly. We hold our leaders accountable for ensuring their businesses operate according to the strict ethical standards we expect.
Our Group-wide policies regarding Anti-bribery, Modern Slavery, Conflicts of Interest, Competition and Anti-trust highlight the fundamental importance to the Board of conducting all business activities to the highest standards of honesty and integrity.
Ethical, diverse and robust supply chains
Whilst the interactions with shareholders are wholly managed by AB Dynamics plc, our communications and relationships with customers, suppliers and advisers are managed within each subsidiary by senior management, and the Group expects a high standard of expertise and business principles to be maintained in such dealings.
The Group has invested into the ongoing implementation of a new ERP system, which is scheduled to go live during 2021. The system will incorporate a comprehensive approach to supplier due diligence, requiring suppliers to demonstrate financial, commercial, safety and governance capabilities as well as technical competence, health and safety proficiency and a level of security compliance. We believe this tool will significantly improve the transparency of the Group’s supply chains.
Currently throughout the course of the year certain suppliers are selected for audit based on supply chain risk assessments. These audits assess each supplier’s approach to human rights, data protection, modern slavery, health, safety and environmental issues. Before selection, checks are undertaken to make sure suppliers are ‘fit for purpose’ and able to meet our contractual requirements. If risks are identified, the Group works with suppliers to address them. AB Dynamics plc expects high standards of commercial confidentiality as the protection of information and the physical assets of our customers is an important part of what we do.
Each subsidiary is responsible for agreeing payment terms with its suppliers and contractors when it enters into binding contracts for the supply of goods and/or services. Group companies are encouraged to abide by these payment terms so long as they are satisfied that the supplier has provided the goods or services in accordance with the agreed terms and conditions.
We understand the importance of predictable payments when operating a business and encourage good practice across the Group. The Group’s average payments over the past year have been made within 34.5 days.
The Group is working closely with our supply chain to determine the impact of COVID-19 on their businesses and the deeper supply chain. At this time, we have not identified material supply chain risk; however, we maintain an open channel of communication with our suppliers.
AB Dynamics has reviewed its supplier base from the perspective of security and criticality. Second source suppliers have been identified and in specific instances validated. In areas where the individual component function or performance prevents an economic second source being identified, long-term supplier contracts are in place and inventory levels set to maintain supply continuity.
Commercial integrity/business ethics
The Group is committed to conducting business honestly, openly and with integrity as taking the correct approach supports our long-term success and sustainability. Our global reputation and brand are critical, and we are aware of the potential negative consequences due to actual or suspected unethical behaviour.
Over the course of the last year, we have developed or revised a series of Group policies to guide our actions and those of our employees, suppliers and partners to ensure good governance and ethical behaviour across our Group. These include policies covering: Anti-bribery, Competition Law and Anti-trust, and Conflicts of Interest. An outline of our controls can be found on page 53 of the Statement of Corporate Governance.
As an international business, we recognise our responsibility for upholding and protecting the
human rights of our employees and other individuals with whom we interact. The Group’s subsidiaries are based within the major advanced economies of the UK, USA, Germany and Japan, which have strong legislation governing human rights. The Group complies with applicable legislation in these areas, and the other countries in which it operates, to ensure the rights of every person (whether employees, suppliers or clients) are respected.
Our employment policies and practices both support and promote diversity and equal opportunities to ensure all employees are treated with dignity and respect, and all staff are provided with a safe, secure and healthy environment in which to work, regardless of where in the world they are located.
The Group is committed to acting ethically and with integrity in all our business dealings and relationships, and implementing and enforcing effective systems and controls to ensure modern slavery in all its forms (including human trafficking, forced labour and child labour) is not taking place anywhere in our Group businesses or in any of our supply chains.
Whilst we continue to believe that our exposure to the risks of human rights abuses and modern slavery is low within our business and supply chain, we know it is important to remain alert and vigilant to modern slavery. Therefore, we have secured modern slavery training as part of a series of e-learning modules for procurement and supply chain employees, management and other relevant personnel scheduled to be implemented in the new financial year.
The Group has a strict Share Dealing Policy which is circulated to all individuals who qualify for share options. The policy covers insider trading/inside information, the AIM Rules and the Market Abuse Regulation which apply to the Company and the individuals. Employees are asked to sign to demonstrate their acceptance of these terms. Furthermore, in accordance with the Market Abuse Regulation of the Financial Conduct Authority, employees are required to seek the approval of the Chief Executive Officer or Group Company Secretary before dealing in its shares.
The Group is committed to conducting business with honesty and integrity. The Group’s policy on anti-bribery and corruption fully addresses the Bribery Act 2010 and has been issued to all members of staff. E-learning has also been used to raise awareness of the required standards of behaviour.
In addition to its management of anti-bribery/ corruption, the Company also continues to monitor and review compliance across the Group’s businesses in connection with international sanctions.