Governance, Integrity & Compliance

The area of corporate governance represents a system to steer and supervise the company, while striving for management that is responsible, qualified, transparent and focused on the long-term success of the company and protection of the interests of relevant stakeholders. Generally, it is a set of legal and executive methods and procedures that oblige the company to maintain a balanced relationship between itself and its employees. Corporate governance also defines the distribution of rights and responsibilities between relevant stakeholders, such as shareholders, executive management, corporate bodies, employees and customers.

In the area of ethical standards, Škoda Auto adheres, among other things, to the relevant recommendations and rules of the Corporate Governance Code, based on the OECD principles. The aim is to further promote transparency and ethical behavior in the business environment through a continuous improvement of internal processes and procedures in accordance with this code.

At Škoda Auto, we believe that only honest and reliable conduct in accordance with the integrity and compliance principles is enabling us to strengthen the trust of employees, customers, shareholders, business partners and the general public as well as to secure company’s sustainable economic success. Therefore, these principles are an integral part of the Next Level - Škoda Strategy 2030 next to the quality of the company’s products, its financial goals and customer satisfaction. They are also taken into account in all our decisions and in all our actions.

However, integrity and compliance principles are not limited to business relationships, they apply to all activities inside and outside the company. With this approach, Škoda Auto demonstrates that its conduct will comply with legal and internal regulations, ethical and other rules voluntarily adopted by the Volkswagen Group and Škoda Auto – applying to areas such as, among others, fair competition, finances and tax, prevention of corruption, environmental protection, and relations with employees including the support of equal opportunities, prohibition of discrimination and obliging with human rights.

The Governance, Risk & Compliance department provides advice on all integrity and compliance issues and raises awareness of its importance among employees as well as third parties through appropriate measures. The following e-mail addresses serve for the needs of the mentioned consultancy: compliance@skoda-auto.cz and integrity@skoda-auto.cz.

Our code is based on generally accepted social values and summarizes the basic principles of conduct of Škoda Auto employees. It serves as an aid in managing legal and ethical challenges. Škoda Auto's reputation is a fundamental value that depends on the commitment of employees worldwide to act in accordance with Our code and all applicable legal and internal regulations. The principles of conduct stated here have become an integral part of Škoda Auto's policy and corporate culture.

At Škoda Auto, 2 systems for submitting reports are available. Further information about them can be found under the links below:

Whistleblowing system of Škoda Auto a.s. according to Czech Act No. 171/2023 Coll., on the Protection of Whistleblowers

Central whistleblowing system of the Volkswagen Group

It is crucial for the long-term success of Škoda Auto that it is able to identify, anticipate and manage possible risks and opportunities arising from its activities in a timely manner. The risk management structure at Škoda Auto is based on the unified risk management principle in the Volkswagen Group, which follows the internationally recognized COSO Enterprise Risk Management Framework standard.

The aim of the risk management system is to identify potential risks at an early stage so that the company can take appropriate countermeasures in a timely manner, prevent potential damage and eliminate any risks that could jeopardize its existence. As the probability and impact of future events are subject to a degree of uncertainty, even the best risk management system cannot anticipate all possible risks, just as the best internal control system cannot fully prevent unforeseen events. On the other hand, changes in the economic and legal environment can lead to opportunities that the company seeks to use to strengthen and further improve its competitive position.