Internal Control System: 4-line model Compliance with legal requirements and respectful partnerships with all stakeholders are key components of the Blum value system. Our integrity and serious approach to business are what makes us a trusted business partner and enables us to build lasting business relationships. Likewise, stability and reliability are central to our everyday business operations, as are legislative compliance, fair competition and the complete rejection of all forms of corruption. Due to the large, international nature of our business, we have expanded our Internal Control System and compliance structures going forwards. ➔ GRI 2-24, GRI 2-27 – Whistleblower system expanded – Mandatory e-learning course and in-person training introduced for the Blum Code of Conduct – International compliance network established Governance Business processes and compliance Compliance The purpose of compliance at Blum is to verify that both the company as a whole and each individual employee is adhering to any relevant legislation and regulations. Our compliance processes are designed to ensure that compliance is not just a top-level concern for the Management Board, but rather something every employee must keep front of mind. They enable us to monitor and manage the warning signs and early detection flags for cases of law infringement, corruption, improper business conduct and financial crime. Moreover, they play a key role in our efforts to actively identify and manage the risks facing our company, which is why it is so important that all the different areas of our business are involved. To that end, we develop our compliance processes in consultation with all the different teams and networks across our national and international sites. ➔ GRI 3-3 Supervisory Board Management Board and Corporate Management Group Integrated management systems platform 1st line 2nd line 3rd line 4th line Operations Day-to-day tasks completed as part of well organised functional processes Management systems Systematic groupings of tasks, instruments and procedures to ensure the smooth running of the business and mitigation of potential risks Internal audits Assessments and advisory support provided by internal company auditors to help specialist departments (1st and 2nd lines) achieve their targets External audits Assessments conducted by external auditors in line with legislative requirements, official regulations or standards Key points The Blum Code of Conduct... ...defines our ethical business practices. Process-specific integrated control mechanisms Independent monitoring 83
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