Annual Report 2010 - Outokumpu

153
Internal audit monitors compliance
The mission of the Group's internal audit remained unchanged in 2010: providing consultative auditing on both targets
and individual issues identified by either the Board Audit Committee or the Group Executive Committee. The focus is
twofold: on the distribution of information and on the identification and control of potential business risks. Internal audits
are carried out in close cooperation with the Group's finance and risk management functions, with financial
administration bodies and with external auditors. The Internal audit function reports to the Board Audit Committee, which
approves its operational plan.
In 2010, 27 individual units, functions or IT systems were audited either independently or in cooperation with external
service providers. Internal audit monitors compliance with Outokumpu's Ethical Principles, the Group's Corporate
Responsibility Policy and the Group's Code of Conduct, and the ways in which these principles and policies are
incorporated into general operational procedures in Group companies and units. While no major risks were identified,
one case of suspected malpractice within the Group was investigated and the police were notified. Current
understanding of this case indicates that the scale of any possible wrongdoing was not significant.
A confidential Helpline has been set up on the company intranet and also on the Internet. This can be used anonymously
to report to internal audit any action that contravenes the Group's Corporate Responsibility principles. Four cases of
possible wrongdoing were reported during 2010. In one of these cases, the employment of an employee who was found
to have misused private personal data was terminated. Charges in the other three cases were found to be groundless.
Four cases of possible misconduct were reported through other channels and were handled at local level. One of these
cases involved the breaking of Outokumpu's Leadership Principles and led to disciplinary procedures.
Outokumpu Annual Report 2010 – Corporate Governance – Internal audit