Case study: How Lonza combats corruption
Lonza is one of the world’s leading and most-trusted suppliers to the pharmaceutical, biotech and specialty ingredients markets, with approximately 15,500 full-time employees worldwide. As a global integrated solutions provider, it is Lonza’s policy to conduct all its business in an honest, fair and ethical manner.
This case study is based on the 2018 Sustainability Report by Lonza published on the Global Reporting Initiative Sustainability Disclosure Database that can be found at this link. Through all case studies we aim to demonstrate what CSR/ ESG/ sustainability reporting done responsibly means. Essentially, it means: a) identifying a company’s most important impacts on the environment, economy and society, and b) measuring, managing and changing.
Abstract
Lonza takes a zero-tolerance approach to bribery and corruption Tweet This! and is committed to acting professionally, fairly and with integrity at all times, implementing and enforcing effective systems to help prevent bribery and corruption. In order to combat corruption Lonza took action to:
- monitor and promote compliance
- implement an Ethics Hotline
- provide communication and training on anti-corruption policies and procedures
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With this case study you will see:
- Which are the most important impacts (material issues) Lonza has identified;
- How Lonza proceeded with stakeholder engagement, and
- What actions were taken by Lonza to combat corruption
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What are the material issues the company has identified?
In its 2018 Sustainability Report Lonza identified a range of material issues, such as economic performance, product quality and reliability, environmental compliance, customer satisfaction, occupational health and safety, socioeconomic compliance. Among these, combatting corruption stands out as a key material issue for Lonza.
Stakeholder engagement in accordance with the GRI Standards
The Global Reporting Initiative (GRI) defines the Principle of Stakeholder Inclusiveness when identifying material issues (or a company’s most important impacts) as follows:
Stakeholders must be consulted in the process of identifying a company’s most important impacts and their reasonable expectations and interests must be taken into account. This is an important cornerstone for CSR / sustainability reporting done responsibly.
Key stakeholder groups Lonza engages with:
| Stakeholder Group |
| Suppliers |
| Customers |
| Group Management and Board of Directors |
| Employee Associations |
| Employees |
| Associations and Competitors |
| Consumers and Patients |
| Lenders |
| Shareholders and Investors |
| Rating agencies and Analysts |
| Proxy Advisors |
| Regulators |
| Government / Authorities |
| Future Talent |
| Local Communities |
| Scientific Community |
| NGOs |
| Media / General Public |
How stakeholder engagement was made to identify material issues
To identify and prioritise material topics Lonza engaged with its stakeholders – including employees, customers, academia, financial analysts, future talent, media and Lonza management and Board – through a materiality survey, to capture their input on topics to be made transparent and reported upon, actively managed or simply monitored.
What actions were taken by Lonza to combat corruption?
In its 2018 Sustainability Report Lonza reports that it took the following actions for combatting corruption:
- Monitoring and promoting compliance
- Lonza has a dedicated Ethics and Compliance team that is charged with monitoring and promoting compliance with anti-bribery and anti-corruption laws. In addition, Lonza is considering engaging in periodic global trend analyses, to identify areas of anti-corruption risk and implement mitigation steps as necessary, as well as implementing a new electronic interface, for third-party due diligence. Accordingly, a survey of Lonza’s sites regarding anti-corruption precautions was initiated in 2018, with results being communicated after analysis.
- Implementing an Ethics Hotline
- Lonza’s Ethics Hotline provides a mechanism for employees and others to report potential violations of the Code of Conduct, any Lonza policies or procedures (including those related to anti-corruption), or applicable laws or regulations. Such reports may be made anonymously where allowable by law. Those found responsible for any violations may face disciplinary action, which includes termination of employment.
- Providing communication and training on anti-corruption policies and procedures
- All Lonza employees have access via the company’s intranet site to Lonza’s Anti-Corruption and Anti-Bribery Policy. New hires are trained via an online training module on anti-corruption and anti-bribery, while anti-corruption and anti-bribery is also covered in Lonza’s Code of Conduct, and in the annual Code of Conduct training required of all employees. Suppliers that enter into Lonza’s standard supply agreement agree to adhere to Lonza’s Supplier Code of Conduct, which sets forth commitments to working against corruption and bribery. Lonza’s Supplier Code of Conduct applies to both its suppliers and to any subcontractors or other third parties that a supplier may engage in the performance of their contractual obligations. Currently, suppliers are instructed to implement internal measuring procedures, tools, and indicators required to guarantee adherence to the Lonza Supplier Code of Conduct principles. Suppliers are also encouraged to report any violations by e-mail, or by using Lonza’s Ethics Hotline.
Which GRI Standards and corresponding Sustainable Development Goals (SDGs) have been addressed?
The GRI Standards addressed in this case are:
1) Disclosure 205-1 Operations assessed for risks related to corruption
2) Disclosure 205-2 Communication and training about anti-corruption policies and procedures
Disclosure 205-1 Operations assessed for risks related to corruption corresponds to:
- Sustainable Development Goal (SDG) 16: Promote peaceful and inclusive societies for sustainable development, provide access to justice for all and build effective, accountable and inclusive institutions at all levels
- Business theme: Anti-corruption
Disclosure 205-2 Communication and training about anti-corruption policies and procedures corresponds to:
- Sustainable Development Goal (SDG) 16: Promote peaceful and inclusive societies for sustainable development, provide access to justice for all and build effective, accountable and inclusive institutions at all levels
- Business theme: Anti-corruption
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References:
1) This case study is based on published information by Lonza, located at the link below. For the sake of readability, we did not use brackets or ellipses. However, we made sure that the extra or missing words did not change the report’s meaning. If you would like to quote these written sources from the original, please revert to the original on the Global Reporting Initiative’s Sustainability Disclosure Database at the link:
http://database.globalreporting.org/
2) https://www.globalreporting.org/standards/gri-standards-download-center/
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