Compliance and Business Ethics
Chairman Li Shufu places great emphasis on corporate compliance. He has conducted comprehensive and systematic thinking on Geely’s compliance efforts, delivered a series of important speeches, and proposed many strategic, directional, and principled viewpoints. The following are relevant discussions from the past five years.
Our compliance management mission is for top leaders to model compliance, mid-level key personnel to practice self-discipline in compliance, and all employees to learn compliance. Through legal and compliant management, we continuously create value for users, improve employee qualities, and enhance the company’s operational efficiency and sustainable development capabilities.
Compliance carries the dreams of the enterprise. Building compliance is akin to constructing the company’s infrastructure, like building a highway for the company’s development or a runway for its growth. Without it, the car cannot run fast, and the plane cannot fly far.
The current global automotive industry competition has shifted from traditional R&D and production models to ecosystem competition. We must proactively adapt to the global industrial transformation trend and participate in globalization as much as possible under the premise of global compliance. This involves engaging in various levels and forms of collaboration and sharing with global partners, continuously strengthening and enhancing our core competitiveness.
Building global compliance in corporate governance is an effective strategy for facing future challenges.
Compliance refers to establishing an effective framework to ensure transparency and legality throughout the entire process of business activities. This framework can be metaphorically described as having a legal high-voltage line above and a moral baseline below. All business activities must operate within these two lines and must not breach this effective framework under any circumstances.
Governing the company in accordance with the law and compliance is a powerful guarantee for Geely’s steady and long-term development.
Geely's Compliance Management
Framework for compliance management
The Group has established the position of Chief Compliance Officer, who is fully responsible for the compliance management of the Group and our subsidiary groups and businesses, and reports directly to CEO and the Board.
Compliance Risk Management
Compliance Construction in Multiple Fields
Anti-corruption and anti-bribery
Geely Holding Group maintains a zero-tolerance attitude towards corruption and bribery, strictly prohibiting any form of bribery. In 2023, the company continued to intensify its efforts to investigate and address illegal and unethical behavior among employees and partners. To help identify and control conflicts of interest risks, the Group conducted a conflict of interest declaration across all employees and developed online management tools to enhance the efficiency and transparency of managing specific information. By the end of 2023, over 80% of employees had signed the Conflict of Interest Declaration. Based on the updated management system, we developed compliance courses on themes such as anti-corruption and conflicts of interest. Additionally, compliance management personnel received “learning from cases” compliance warning education to draw lessons from real cases, raising awareness of respecting rules and strictly adhering to ethical boundaries.
Anti-monopoly and fair competition
We are committed to fair competition and strictly adhere to the Anti-Monopoly Law of the People’s Republic of China, the Anti-Unfair Competition Law of the People’s Republic of China, and other relevant laws and regulations. This commitment is aimed at safeguarding fair and open competition from any inappropriate constraints, collusive restraints, or anti-competitive limitations.
In 2023, we focused on key projects to conduct research, prevention, and response to antitrust risks. We provided necessary specialized compliance advice based on specific circumstances, ensuring that our business activities met all legal and regulatory reporting obligations.
Cultivating compliance culture
We consistently foster a compliance culture. Through various forms such as cultural activities, online courses, and video clips, we have continuously strengthened the awareness of compliance and business ethics. Under the subtle influence, our staff members consciously comply with legal and industry regulations in various business processes, embrace the ethical concept of integrity and implement the requirements of the Group’s code of conduct. Compliance training is included as a compulsory part of the onboarding training for new hires.
In 2023, continuing our corporate tradition, we launched the seventh “Compliance Culture Month” campaign, which covered the entire group. A total of more than 60,000 participants involved in activities such as compliance training, online open courses, and booth consultation days.
Export control compliance
Geely Holding is committed to adhering to the international trade laws and regulations of the countries and regions where it operates, including tax administration policies, restrictions and conditions on the types of import and export goods, and on trade partners.
In 2023, we issued the Trade Compliance Review Guidelines for Trading Parties , completed compliance guidelines for key business processes such as procurement and sales, and strengthened our policy system for export and trade compliance controls. Based on a digital platform, we identified and addressed key trade compliance risks, enhancing the efficiency and accuracy of risk assessments.
At the same time, we offered export control compliance training to ensure our employees are up to date with the latest policies and are equipped to meet compliance requirements. Four training sessions for over 300 suppliers were held, fostering a better understanding and proficiency in export compliance management among our partners.
Information Security and IPR
Upholding Information Security
The Group adheres to the principle of “equally emphasizing management and technology” in information security initiative. We have established an information security organizational structure with clear-cut power and responsibility to keep improving unified management policies, and promote an information security system on all fronts. Additionally, we conduct training to enhance the execution capabilities of information security operations and risk management, ensuring the proper protection of information assets throughout the entire lifecycle of the vehicle and strengthening the ability to resist catastrophic events. Moreover, as a Vice President Unit of the Cyber Security Association of China, Geely Holding is committed to collaborating with stakeholders to foster a peaceful, secure, open, cooperative, and orderly cyberspace order.
Respecting Intellectual Property Rights
Geely Holding adheres to the belief that innovation is the primary driving force for development. While establishing a global R&D and innovation system, we strive to deeply integrate innovation with IPRs, protect our own intellectual property, and highly respect the intellectual property of others.Based on the characteristics of technological innovation, we conduct patent layout and innovation protection. In addition, we perform patent searches and analyzes for emerging technologies, providing a solid information foundation for our R&D activities, and ensuring comprehensive protection for our key projects and technological breakthroughs.
we have put in place a durable and effective risk management framework. This framework integrates intellectual property risk management throughout our entire business chain of R&D, procurement, manufacturing, sales, and after-sales services. Besides regular identification, assessment, response to potential intellectual property infringement risks, we entrust third parties to assess risks in key projects, thus safeguarding our products as they are developed and brought to market. At the same time, we work in concert with our subsidiary groups and businesses to impose intellectual property compliance requirements on our suppliers, with an aim to prevent intellectual property risks within our supply chain.