The Sandvik way
Sandvik’s corporate governance framework, The Sandvik Way, implements these external rules and also sets out the internal rules and principles for governance that apply specifically within Sandvik. It is based on four levels, as set forth in the model below, and describes how common ways of working have been implemented throughout the entire organization.
Oversight and Direction
This level outlines how the Group is led and governed from the top. The Board of Directors, elected by the Shareholders’ Meeting, sets the strategic direction for the Group. The President carries this out through the Group Executive Management whose members manage and oversee the operations of the Group. The main operational responsibility in the Group lies with the business areas and divisions, with Group functions responsible for functional policies and processes supporting the business. This level is the main focus of this Corporate Governance Report.
Culture and Enabling Structure
This level sets out the requirements and ambitions underpinning our operations. Our business philosophy is shaped by our Vision to excel, guided by our Core Values (Customer Focus, Innovation, Fair Play and Passion to Win), translated into the behaviors we outline in our Code of Conduct and motivated through the qualities outlined in Sandvik’s Leadership Model.
The operational system in The Sandvik Way is at the core of how we work on a day-to-day basis in the Sandvik Group. It contains information and ways of working for the whole Sandvik Group related to strategic planning, risk management, internal controls and compliance, as well as Sandvik’s monitoring activities, including performance tracking and compliance self-assessment for the organization. This is also where our group-wide policies and procedures are collected.
Business Area Governance
Whereas the three top levels of The Sandvik Way set the group-wide way of working that applies across all of the business areas, divisions and Group functions, the business areas and divisions have their own tailored governance systems based on The Sandvik Way.