Patria’s corporate responsibility (CR) policy determines the framework, outlines and responsibilities of corporate responsibility within Patria. The policy is in line with the Patria Ethical Code of Conduct and it is complemented by Patria’s other policies and guidelines, such as its environmental and HR policies.
The CR policy applies to the whole of Patria Group, which includes Patria Oyj and all of its 100% owned subsidiaries, both in Finland and abroad. The guidance does not apply to affiliated companies, which Patria expects to have corresponding guidance and, at a minimum, to operate at the level of Patria. However, Patria's corporate responsibility reporting also covers its majority-owned companies.
Patria expects all the employees to comply with the ethical principles. Patria also expects its partners to comply with Patria's ethical guidelines, or to act according to their own, respective guidelines
Patria's social responsibility is highlighted by its position as a majority state-owned company and its role as a strategic partner of the Finnish Defence Forces. Safeguarding business continuity, which requires profitable and responsible operations, is of paramount importance to Patria. Patria's corporate responsibility is divided into three areas: financial, social and environmental responsibility.
Objectives
The aim is to maintain Patria's reputation as a good corporate citizen. In addition to its financial performance, Patria bears responsibility for the well-being of its employees, stakeholders and the environment.
Patria's activities affect society and the surrounding community. Patria emphasises open interaction with stakeholders and influences the development of the industry by actively working in a variety of communities in the sector.
Responsible activities are continuously developed and investments are made in the related training. The aim is to maintain the awareness of personnel and their ability to have an impact on responsible conduct within the work community.
Values, mission, vision, customer promise, employer promise
Patria's corporate responsibility is based on practices that are grounded in common values, and its mission, vision and promises to customers and staff. Corporate responsibility is the cornerstone of our business activities, and Patria’s operation is based on its values:
- We want to succeed
- Our operations are customer-oriented
- Together we create success
Patria’s mission and vision form a strong bond between the strategy and its implementation. The mission tells Patria’s employees and stakeholders what Patria does, for whom, and how: We give our customers confidence in all conditions.
Our vision communicates Patria’s ultimate goal that it hopes to achieve through its operation: The #1 partner for critical operations.
Patria is a guarantee of reliability, which is expressed in its customer promise: When if is not an option.
As an employer, Patria promises that everyone can be proud of and succeed in their work.
Corporate responsibility management
The Annual General Meeting is the highest organ of the company. It confirms Patria's corporate responsibility activities. In accordance with the Government’s decision-in-principle (13 May 2016), the Board of Directors is responsible for organising CR and integrating it with the company's strategy. The Board of Directors confirms the Group's ethical practices and monitors their implementation. The Audit Committee oversees compliance and issues related to corporate ethics.
Under the leadership of the President and CEO, the Board of Management prepares Patria’s strategy and the integration of corporate responsibility within the strategy. The Board of Management approves the themes and goals of corporate responsibility each year and monitors the achievement of the related objectives.
A member nominated by the Board of Management acts as the Head of Corporate Responsibility, who leads the CR team. The team consists of experts from Patria’s business units and corporate management. The team prepares and is responsible for operation in line with the CR objectives at Group level, and enables responsible operations in business activities.
In order to achieve these objectives and with the support of the CR team, the businesses must act in accordance with the corporate responsibility guidelines. The businesses assist in reporting corporate responsibility, by reporting their own results with respect to the relevant issues.
Issues involving CR are reported on a regular basis to the Board of Management, the Board of Directors and the Audit Committee of Patria, which, in turn, are in charge of managing and steering these areas. CR forms part of the work and duties of each Patria employee.
Patria’s areas of corporate responsibility
Patria's corporate responsibility focus areas are described in the Essentiality Chart, which takes account of the views of both staff and stakeholders. The Essentiality Chart is updated on a regular basis.
Responsibility is the foundation of all activities and is divided into three sub-areas: financial responsibility, social responsibility and environmental responsibility.
Financial responsibility
Patria grows and develops its business activities in a long-term and responsible manner. This requires investment in the development of customer relationships, services and expertise, in order to provide customers with reliable products and services. It is important to optimise the use of financial resources in order to ensure long-term, profitable growth.
Patria engages in a professional and long-term manner with its supplier and subcontractor network. Cost-effective operations are through cooperation.
Shareholders are paid dividends, determined by the Annual General Meeting, from profitable operations. Funds paid to charitable activities are directed at organisations selected on a centralised and transparent basis.
The tax strategy is transparent and based on taxation being paid where operations occur. Patria does not use tax havens to minimise its taxes. Patria's tax strategy is to support business solutions and to ensure their proper implementation, also from a taxation perspective. The starting point is compliance with local legislation and attending to reporting obligations. Patria does not accept money laundering in its operations.
Patria's financial reporting is reliable and up-to-date.
Social responsibility
Patria's social responsibility consists of its commitment to the personnel, customers and other stakeholders, as well as to society. Patria treats its employees fairly and with respect, and encourages and involves them and other important stakeholders in developing our practices. Harassment in any form is not allowed. Patria expects a similar approach from its partners.
Patria wants to provide a safe, productive and healthy work environment, where each individual and team can give an excellent performance in a well-managed organisation. Each manager is responsible for leading by example, i.e. behaving in accordance with Patria's values and management practices.
The purpose of occupational safety is the achievement of a company in which risks affecting personnel and tangible assets are effectively eliminated or minimised. Other measures of safety and quality also take centre stage in the defence equipment sector.
The goal is to contribute to the development of a more sustainable society. Responsible corporate citizenship means seeking new development targets together with other stakeholders in the value chain and members of society. Key issues for Patria include the development of defence material export practices and actions taken against corruption.
Environmental responsibility
Patria operates in accordance with environmental legislation and regulations. Environmental risks related to its operations are identified and activities are developed to minimise the burden on the environment; the same is expected from partners.
The effects of products and services on the environment are identified and managed, as far as possible, from the life-cycle perspective. Efforts are made to make energy and water consumption more efficient and to have a positive impact on the recycling and responsible disposal of waste.
Responsibility, control and changes
The policy is reviewed, as part of the strategy round, to ensure that it is up to date and is updated as necessary. The business units ensure that their operations are in compliance with these guidelines.
Patria Group Chief Communications Officer, also responsible for CR, is responsible for updating this policy in cooperation with the Chief Compliance Officer in charge of Patria’s Ethical Code of Conduct. Changes are accepted by Patria Group’s Board of Management.
If necessary, corporate communications supervises and assists with the interpretation of the guidelines and the preparation of materials.
Further details: Chief Communications Officer, Head of Corporate Responsibility