Ethics and transparency are essential to accomplish the Grupo Nutresa mission; therefore, they are key elements of its corporate philosophy and performance. This material issue is crucial in all actions undertaken by the Organization, through its relationship with the different stakeholders and it impacts the human, financial and social capital.
Among the most significant risks related to this topic are fraud, money laundering and the financing of terrorism, and corruption, which are managed through policies, codes, processes, manuals, technological controls and training programs. Noteworthy are:
These initiatives, policies and other strategies used allow managing the human, social and financial capital of the Organization and enable the development of relationships with employees, suppliers, consumers, investors and other stakeholders, through clearly established guidelines and action schemes to reduce the potential financial impacts on the development of operations.
Within the process to adopt new approaches to risk assessment, 22 risks that impact the Grupo Nutresa strategy were analyzed; of these 22 risks, the risk of ethical breaches or misconduct (fraud, corruption, MLFT) by employees and third parties was incorporated into the corporate matrix and visibility of the relevance of these aspects was given throughout the Organization.
The assessment of risks related to corruption is carried out in accordance with the steps contemplated in Standard ISO 31000, version 2009: the establishment of the context, identification, analysis, evaluation and treatment. To this end, matrices and risk maps were constructed where the probability and the impact are qualified. In 2014, this assessment was performed on 58% of the Grupo Nutresa Businesses.
The awareness and training process to manage the prevention of the MLFT risks encompassed virtual and physical–attendance trainings, and deployments to the headquarters of the companies in Colombia, reaching 9.301 employees. The process was also carried out with 3.869 third parties, including temporary workers and contractors.
Additionally, the scope of the Policy to prevent money laundering and the financing of terrorism was extended to Fundación Nutresa, and Corporación Vidarium, the Grupo Nutresa Nutrition, Health and Wellness Research Center.
In 2014, 25 reports received through the Ethics Hotline were attended. They were channeled to the areas responsible in each one of the Businesses; 52% of the reports involved employees and 48%, third parties.
There were 102 incidents that threatened the anti–fraud and anti–corruption policy against the Grupo Nutresa companies for an approximate value of COP 513 million.
Types of incidents
In these incidents, 150 persons, linked to the Grupo Nutresa companies through work contracts (56%) and contracts to provide services (44%), were involved. In all cases, the contractual relationship was ended and the relevant legal actions were filed. To address the impacts of such events, the Grupo Nutresa companies have insurance policies with adequate coverage.
Type of relationship of the persons involved in the incidents
The acts of corruption mentioned were reported to the Grupo Nutresa Finance, Audit and Risk Committee.
Grupo Nutresa has 12 business units, of which seven (7) were analyzed regarding the risks related to corruption. In the evaluation, priority was given to the units with the greatest exposure. The significant risks related to corruption that have been detected in the evaluations are: (1) Corruption; (2) Money laundering and financing of terrorism; (3) Fraud; and (4) Contagion.
We have reported the Organizations policies and procedures to combat money laundering, financing terrorism and corruption as a related crime for 100% of the members of the governing bodies: the CEO, Presidents, Vice Presidents and Managers of the Companies. We have trained 65 of these 70 members, equal to 82%.
As for TMLUC, there are two lawsuits. One of them was begun in 2006 by Nestlé Perú S. A. as the plaintiff, with Corpora Tresmontes Perú S. A. and Química Suiza S. A. as defendants for having committed acts that breached advertising regulations and the regulations of unfair competition regarding the use of the Monterrey brand. On December 19, 2014, TMLUC Perú was found guilty by the Court of Cassation that, for its part in the use of the Monterrey brand, there was an act of unfair competition. The amount of the sentence is COP 34 Million plus costs, and the definite and immediate cessation of the “Monterrey” product in the presentations denounced. It was decided not to challenge the decision, and accept and execute the original sentence. The other cause is from 2009. Multicorp sued Tresmontes S. A. in the Dominical Republic on the grounds of inadmissibility of the unilateral rupture of commercial relations, without having proven a failure in the obligations by the distributor. This, with the alleged breach of the provisions of Local Law Number 173. The ruling in the first instance ordered Tresmontes to pay COP 9.003 Billion; in the second instance, Tresmontes was ordered to pay the damages that the plaintiffs prove in a later trial. There is a writ of appeal against this ruling; however, an agreement was reached with the plaintiff to pay a certain sum and, thus, not continue with the litigation.
Value of political contributions, by country and recipiet
Economic aid awarded by Government entities
Figures in COP Million
The Governments do not form part of the shareholding structure of the Organization or any of its companies.
The constant evolution of Grupo Nutresa and its internationalization process represent a challenge to consolidate the Integral Risk–Management Maturity Model in all the businesses and levels of the Organization. This necessitates the combination of the Top–Down and Bottom–Up valuation approaches with the critical processes of its value chain, which will allow further strengthening of the integral risk–management model, comprising those associated with ethics and transparency.
In line with the above, among the short–, medium– and long–term plans is the gradual implementation of the Management System to Prevent and Control the Risk of MLFT and the disclosure of the Code of Good Governance in the Grupo Nutresa companies in the strategic region outside Colombia.
In addition to these actions, and in order to impact the MLFT risks in the supply chain, in the short term new virtual–training models will be enabled that will raise awareness about the management of preventing and controlling these risks in related third parties. This will provide them with tools to manage their own risks, strengthening their processes toward the continuity of their business.
The structuring and implementation of the action plan to close gaps identified in the diagnosis resulting from the evaluation of the Grupo Nutresa complaint mechanisms will be complemented.