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2014 Registration Document
Corporate governance
3
Risk management
The changing competitive environment is monitored and addressed at
country level, and handled at Group level by the general management,
in an effort to anticipate and identify growth opportunities or decisions
to be made.
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Natural disasters and climate change
In most countries where it operates, the Group may be exposed to natural
disasters, with direct or indirect impacts on its activities, its assets and
its employees, and consequences for its financial position. In a context
of climate change, changing meteorological conditions may also impact
its operations, especially with regard to customer behaviour.
Since 2008, the Group has undertaken extensive work to better improve
the management of natural risks in its operations, in order to develop
knowledge, improve assessment, adapt preventive measures and adjust
insurance coverage. This work was carried out in all countries where the
Group operates, either directly or through franchises, with a forward-
looking exercise related to climate change, specifically through a mapping
of natural risks, assessments by risk and by country to identify ‘sensitive’
sites, and prevention fact sheets.
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Terrorism and crime
Due to a multitude of counterparts, the vast number of sites and its activity
involving considerable human, product and financial flows, the mass retail
sector is exposed to risks of crime and terrorism, with significant direct
and indirect impacts, especially in stores.
Preventive and protection measures for each site are determined based
on risk exposure, with regular review of the systems and adjustments
made based on the development of threats.
3.5.1.2
Strategy and governance
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Strategy definition, adjustment
and implementation
As with project management or restructuring problems, in an uncertain
and complex political, economic, social and competitive environment,
the ineffective or unsuitable design, communication and execution of the
Group’s vision and strategy may damage its reputation and its financial
and operational performance.
Under the coordination of general management and as part of overseeing
activities and the principal action plans, extensive work is underway at the
country level to develop the strategy, with a regular review of objectives
and commitments enabling optimal allocation of resources.
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Compliance and fair practices
In an increasingly litigious world, with regulatory authorities having
broad power, the failure to comply with regulations and contractual
commitments, within the scope of the Group’s operational activities and
in its relations with its employees, can have a significant impact on its
financial performance and its reputation.
As part of its preventive approach at the Group and country level, the
Legal department has created and implemented information and training
programmes involving all employees concerned. The top fundamental
principle of the Group Code of Business Conduct, which applies to all
employees, emphasises strict compliance with regulations wherever the
Group operates and in all of its activities. The Company’s ethics system
is presented in Section 2.1.3 (page 22 and following pages).
◗
Corporate responsibility
Looking beyond regulatory compliance, given consumers’ growing
concerns about responsible and sustainable trade and the nature and
reality of commitments, sustainable development policies and actions
may impact the Group’s reputation and its financial performance.
For a number of years, the Group has maintained a proactive and
committed sustainable development policy, described in detail in the
section on Corporate Responsibility, with a wide range of concrete
actions taken in every country in which the Group operates.
◗
Environment
In the scope of its activities, the Group may be exposed to a wide range
of environmental risks (water, air and ground pollution, noise pollution or
visual pollution) mainly with respect to its large number of operated sites.
While environmental regulations have been developing in many countries,
along with increased consumer awareness of the stakes, certain activities
and processes are especially sensitive (waste treatment, recycling of
own-brand product packaging, consumption of refrigerants and energy,
explosive atmospheres, service stations, alternative transport, etc.) with
particular attention paid to natural resource management (water, fish
stocks, wood, etc.).
Environmental protection and preservation is naturally considered by the
Group along with industrial risks, with a focus on prevention through
study and analysis, but also through the operational implementation of
prevention or treatment systems, such as for risks related to service
stations. All actions intended to reduce the environmental footprint of our
business activities are presented in Section 2.2.2.7 of the Registration
Document (page 44 and following pages).
◗
Disputes/Litigation
In the scope of its normal activities, the Group is involved in various legal
and administrative proceedings and is subject to administrative audits,
whose outcomes are uncertain with potentially significant impacts on
our financial position or reputation.
The Legal department manages and oversees disputes at the country
level and at Group level.