Progress Report 2012 - Lego

chance to invest in children’s opportunities and
future. In addition, corruption obstructs children’s
right to have access to social services such as
schooling and health care.
In 2012 100% of all employees at Director level
and above completed our biennial e-learning
training programme in business integrity. Additional
employees working directly with customers and
suppliers have completed the training programme.
The training programme explains the LEGO Group’s
position on several business conduct areas, e.g.
bribery, antitrust and facilitation payments.
Competition compliance
It is imperative for the LEGO Group that its business
operations reflect real and full compliance with
relevant competition laws. Violation of competition
laws would let children, their parents and our
customers down, and could also severely
compromise the public reputation of the LEGO
Group and expose it to costly and time-consuming
investigations and litigation. Further, significant fines
could result from violations of competition rules, and
the company could even face additional claims for
damages from customers and competitors.
Share operational knowledge
– partners in production
With some strategic partners within our operation,
we maintain an open book principle to enable
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The LEGO Group Progress Report 2012 Outside the LEGO Group
benchmarking of the financial costs related to
production. Through this we are able to compare
our internal production cost globally and share
key insights with partners on optimisation of the
manufacture expenditure. The openness allows us
to better understand the supplier’s pricing model
and work with them on the fixed, semi fixed and fully
variable costs thereby giving both partners a more
focused way of reviewing the overall costs.
Tax and other economic impacts
Tax is a major aspect of business in the community.
On the wider agenda, the economic impact of our
business on society is based on the direct and
indirect employment and associated money flows,
including tax paid. In 2012 the corporate tax bill for
the LEGO Group was DKK 1,909 million, which implies
an effective tax rate of 25.4%.
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