Carrefour - 2017 Registration Document

4 MANAGEMENT’S DISCUSSION AND ANALYSIS AS OF DECEMBER 31, 2017 Internal control system CARREFOUR | 2017 REGISTRATION DOCUMENT 207 it regularly reviews the map of the Group’s main risks that may ● be reflected in the financial statements or which have been identified by Group Executive Management and may have an impact on the financial statements. It takes note of the main characteristics of the risk management systems and the results of their operations, drawing in particular on the work of the internal audit and risk control managers and the Statutory Auditors. The role of the CSR Committee set up by the Board of Directors is to: review the Group’s CSR strategy and the rollout of the related ● CSR initiatives; verify that the Group’s CSR commitments are integrated in light ● of the challenges specific to the Group’s business and objectives; assess risks, identify new opportunities and take account of the ● impact of the CSR policy in terms of business performance; review the annual report on non-financial performance; ● review the summary of ratings awarded to the Group by ratings ● agencies and in non-financial analysis. B. At country level The Country Executive Director is responsible for setting up, running and supervising the internal control system at country level. The country internal controllers support the Country Executive Director by: helping to define the country internal control system, particularly ● by ensuring that the Group internal control framework is properly rolled out; ensuring that procedures defined by the country and the Group ● are properly applied. Internal control environment 4.8.2.3 Internal control procedures and measures 4.8.2.3.1 The Group has set up a formal control environment using various procedures and control measures, with for example a Group regulatory framework, Ethics Principles and a definition of the powers, responsibilities and objectives assigned at each level of the organisation, according to the principle of the separation of duties: at country level, the Group regulatory framework is reflected in ● precise operating procedures. It is the tool with which each country conducts its internal controls, which are, in turn, audited by the Group; the Ethics Principles have been distributed to all Group ● employees since October 2016. Their purpose is to establish the ethical framework within which all employees must conduct their work on a day-to-day basis. An ethics whistleblowing system can be used by Group employees to report any situations or behaviour that do not comply with the Ethics Principles; the policies reflecting the Group’s values through principles for ● professional conduct that guarantee excellence and the sustainability of the Group’s performance. Every employee participates in their implementation; the Group’s Executive Management has established rules of ● governance limiting the powers of the Company officers of each Group company. Prior approval by the Board of Directors or the equivalent body of the company concerned is required for some transactions. Delegations of powers and responsibilities are established at country and Group level in accordance with hierarchical and functional organisational charts. This structure complies with the principle of the separation of duties; lastly, this structure is conveyed by a management framework ● that is underpinned by medium-term objectives organised according to country and by the steering of activities in line with annual budget targets and corresponding to individual plans. The Group ensures that relevant and reliable information is disseminated and conveyed to the parties concerned so that they can perform their duties in accordance with Group standards and procedures: the GroupOnline intranet system provides employees with a ● number of practical tools, including information on the primary standards and procedures with which they must comply; the Group regulatory framework has been communicated to all ● Country Executive Directors responsible for disseminating it; procedures setting out best practices and the information ● reporting process are also communicated to the various countries by the Group’s main departments; the Group’s accounting policies are sent to every Finance ● Director at the end of each quarter; the Group Investment Committee’s governance rules are sent to ● all Finance Directors. Similarly, the countries make sure to relay relevant, reliable information to the parties concerned so that they can perform their duties in accordance with Group standards and procedures.