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Investor Presentaiton

26 GOVERNANCE ETHICS AND TRANSPARENCY (G4-56, G4-LA9 and G4-S03) ELDORADO BRASIL 2016 SUSTAINABILITY REPORT 27 The Eldorado Code of Conduct sets forth the ethical guidelines that all employees must follow in internal and external relationships, includ- ing interactions with customers, suppliers, service providers, share- holders, government and commu- nities. After being presented and trained under the Code of Conduct all new employees must formally commit to comply with the rules outlined in the document. Eldorado's Code of Conduct en- compasses the applicable laws in all the countries in which the company operates. It addresses different topics such as equality of opportunity and treatment for all employees, harassment and abuse of power, child and slave labor, conflicts of interest, political par- ticipation, gifts and relations with public entities, underscoring the prohibition of the offer of any kind of advantage or privilege for public authorities. The Ethics Committee, compris- ing representatives of the Human Resources, Legal, Finance and Supplies departments, must ensure the code is being strictly followed. The committee meets every two months or whenever necessary to analyze reports received via the Ombudsman channel and to decide on courses of action (further infor- Código de Conduta Widely disseminated, the Code of Conduct may be accessed via the website: www.eldoradobrasil.com.br mation on the Ombudsman ahead). The Ethics Committee activities are reported to the People and Devel- opment Committee, which provides support for the Board of Directors, on a quarterly basis. In 2016, a workshop was orga- nized for company leaders on Code of Conduct and compliance to em- phasize their role in disseminating best practices within the company. The company also carries out peri- odic audits to ensure the accuracy of its accounting practices. In July and September, two search and sei- zure warrants were issued against the Eldorado head office as part of cautionary measures taken by the federal public prosecution service to investigate alleged irregulari- ties in FI-FGTS fund management and in investments made by four supplementary pension plans (Petros, Funcef, Previ and Postalis). The warrants were aimed at col- lecting evidence of supposed illicit practices that might have been documented by the company. The company contracted the services of the legal practice Veirano Advo- gados Associados and an audit by Ernst&Young to conduct an inde- pendent investigation, which found no indications that the Public Pros- ecution service allegations were grounded. Eldorado reaffirms its willingness to collaborate with the competent authorities in fully clarifying the facts. Committed to transparency and continuous improvement, the company is now analyzing the establishment of a Compliance de- partment to strengthen its internal controls. Eldorado Ombudsman E-mail: [email protected] Telephone: 0800 5275 280 Consolidation of the Ombudsman (G4-58, G4-S03) One of Eldorado's main commu- nication channels with its stake- holders, the Ombudsman receives reports, complaints, praise and suggestions from employees, ex- employees, suppliers and business partners, members of neighboring communities, customers and the press. In 2016, management of the Ombudsman service was taken over by a specialized external company, reinforcing the channel's credibility. Contacts may be made in Portuguese and English, with full confidentiality guaranteed. Other company communication channels include the Sustainability area email address, face to face meetings with community mem- bers and neighbors, the Contact Us channel on the institutional web- site and the company's pages on Facebook and LinkedIn. In November 2016 and February 2017, measures to disseminate contact information for the Om- budsman and the Sustainability area in 16 communities with which Eldorado maintains relations were taken.
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