Transparency and integrity

Why is this important to us?

Our corporate culture is built upon a clear mission statement—"The shortest route from consumer to cow"—and is guided by four core values: Entrepreneurial, Reliable, Committed and Respectful. These core values define who we are, what we consider important, and how we strive to achieve our goals. Our behaviour, collaboration, and mindset shape the identity of our company and influence the way we engage with customers, dairy farmers, and all other stakeholders.

By consistently embodying our core values, we strengthen our organisational identity and enhance our ability to achieve sustainable results.

What are the risks and opportunities? 

Opportunities

• Transparency and an attitude of integrity contribute to long-term partnerships.

• Complaint mechanisms, whether internal, external or a whistle-blower scheme, ensure that any wrongdoing is flagged and followed up in a timely manner.

• In a culture where integrity is maintained and deviations are reported, corruption and bribery are less likely to occur.

Risks

• A lack of transparency and integrity can lead to deteriorated relationships, breach of trust, damage to reputation, with both internal and external stakeholders.

• Not being compliant (on time) with changing legislation has legal and financial consequences for the organisation.

Approach and policy

Our behaviour, collaboration, and attitude collectively shape the identity of our company. We strive to ensure that customers, dairy farmers, and all other stakeholders experience the same sense of commitment and shared values when engaging with our business. The more effectively we demonstrate our core values, the greater our ability to achieve sustainable success and deliver meaningful results.

Core values

• Entrepreneurial: Our employees show initiative, improve themselves and take appropriate decisions with guts. Customers perceive us as entrepreneurial thanks to our flexibility, quick action and expert staff.

• Reliable: We honour our commitments, are open and honest. Clients experience us as transparent and focused on long-term relationships. As a family-run business, we are accessible and approachable.

• Involved: We show openness and vulnerability, create job satisfaction and show interest in colleagues and business developments. Clients experience our commitment through our proactive thinking, unburdening and personalised approach.

• Respectful: We value everyone, listen, give feedback and talk with people, not about them. We treat others as we want to be treated ourselves. Clients perceive us as respectful because we listen, adhere to values and offer personal attention.

Code of Conduct for Employees

Our dairy and transport operations each have their own Code of Conduct for Employees. Own workforce is defined as: salaried employees, volunteers, interns, temporary workers, secondees, charters, self-employed persons working within Royal A-ware, or within one of our affiliated companies. The Code of Conduct for Employees is a document signed by all employees, to which they agree upon joining the company. It is also available on the intranet.

The Code of Conduct describes in detail our values and what we expect from our employees. Business integrity is an important part of this. As a prevention tool, the Code of Conduct describes in detail what we mean by a good business relationship. Examples show which practices we consider undesirable. These guidelines help employees understand when their actions put the company at risk.

The Code of Conduct for Employees of A-ware Dairy has been adopted by the Management Board of Royal A-ware. The Code of Conduct for Employees of AB Texel is established by the Management Board of AB Texel after discussion with and consent from the Works Council.

Corruption and bribery

Royal A-ware has a policy aimed at preventing bribery and corruption. This stipulates that the Code of Conduct for Employees and Whistleblowing Policy are important tools to prevent, detect and act on allegations or incidents of corruption or bribery. 

Our corporate culture of go-getters is inseparable from the culture of being able to say anything: if someone sees something, they will say it. This is supported by the reporting requirement, as part of the Code of Conduct for Employees. This states that it is mandatory to report any wrongdoing. A reporting requirement is also included in AB Texel's Code of Conduct for Employees.  

Where investigators or commissions of enquiry are investigating cases of corruption or bribery, these investigators are separate from the hierarchy involved in the corruption or bribery. The process for reporting outcomes of investigations is detailed in the whistleblowing policy. Which includes procedures to investigate cases of corruption and bribery.

Our Code of Conduct for Suppliers sets out how we deal with corruption and bribery among suppliers. See due diligence.

Corruption and bribery risk assessment

As part of our policy on preventing corruption and bribery, we conducted a risk assessment of the functions most exposed to these risks. 'The risk five-tier classification system' was used for this purpose. For us, these are functions with risk ratings 1 and 2.

• Extremely high risk (1): This role could potentially lead to large-scale fraud or cause long-term damage to the company. Individuals in these roles wield considerable power, making it difficult to detect fraud or abuse of power. They are also in a position where they can suppress any negative consequences for themselves.

• High risk (2): Similar to extremely high risk, but individuals in this role do not have the ability to suppress negative outcomes for themselves, despite the potential to commit large-scale fraud or cause long-term damage.

At Royal A-ware, the following functions are involved:

• Royal A-ware: CEO, CFO, COO

• A-ware Dairy: Finance and Accounting Director, Directors

• AB Texel: CEO, CFO, Directors

Obviously, the necessary internal control measures have been implemented to mitigate these risks. We are also exploring how to add anti-corruption or anti-bribery training to our training offer. 

No convictions for violations of laws against corruption and bribery by 2024. So the amount of fines is zero. There is no reason to take additional measures following breaches of procedures and standards for combating corruption and bribery.

Lobbying activities

Lobbying activities are mainly through the sector and industry organisations we are affiliated with (See stakeholders section). Through these organisations, we address challenges in the dairy and transport sector. With our expertise and experience, we provide valuable input for a better understanding of these sectors.

In line with our policy, we never offer or give contributions to political parties. The focus of lobbying activities is related to our dairy activities in the Netherlands and Belgium. Royal A- ware is not registered in the EU Transparency Register or in Equivalent transparency register.

None of the members of the Management Board, executive and supervisory bodies have held similar positions within government departments in the two years prior to their appointment.

The Director Public affairs coordinates Royal A-ware's lobbying activities.

Measures and actions 

General measures

Corporate culture

The corporate culture is set out in the mission statement, core values and Code of Conduct for Employees. Building and promoting corporate culture is done in several ways.

• On joining the company, all A-ware Dairy employees are asked to read and sign the Code of Conduct for Employees. The Code of Conduct is also available on the intranet.

• New employees of A-ware Dairy are invited to an introduction day. Based on an inspiring presentation by the Management Board, new employees are introduced to A-ware Dairy and its corporate culture.

• Employees of AB Texel are made aware via the employment contract of the platform AB Connect on which, among other things, the Code of Conduct can be consulted.

• We pay attention to corporate culture through internal communication tools, such as staff magazines (i-Ware and AB Drive) and apps (Speakap and AB Connect).

• CEO Jan Anker regularly updates A-ware Dairy employees on company developments in a video message. In his update, the CEO also reflected on the company's culture.

Our actions in 2024

• The whistleblowing procedure has been published within A-ware Dairy, a form is available on the website.

• We set up the external complaints procedure in 2024 within Royal A-ware. It will be introduced in 2025. A notification form is online.

• We raised awareness of the presence of confidants, for example by putting up posters.

• Although we do not offer specific training courses to boost our corporate culture, elements of this are woven into more general training courses (e.g. the trainees' training course), but also into the various activities mentioned above.

How do we engage our stakeholders?

The various schemes mentioned in this chapter involve the Management Board, executives and employees alike. Employees are involved at the individual level, but also at the Central Works Council (CWC) level. Involved in promoting corporate culture are: The Management Board, executives, the HR department, Corporate Communications and many others. This is an effort by everyone involved in our organisation. When it comes to training or other activities aimed at employees, the HR department takes the lead and involves various stakeholders. The risk assessment of functions is vested in the Risk Management department, which involves both HR and other relevant departments in this process.

Other information

• Due diligence of sourcing raw materials in relation to human rights and the environment is material and in line with the material topic 'transparency and integrity' and the related target: 'Royal A-ware has a due diligence policy that fulfils the agreements as laid down in IMVO and OECD guidelines'. We therefore do not describe a policy to combat late payments.

• Policies are in place regarding protection from retaliation for individuals using channels to express concerns or needs.

• A statement in case the company has not established a channel for reporting concerns is not applicable. Royal A-ware has a due diligence policy of which an internal complaints procedure forms part.

• The role of governance, management and supervisory bodies is elaborated in the Good governance chapter.