Labor and Social Standards
As a signatory of the UN Global Compact, Sika promotes the protection of universally acknowledged human and labor rights. In its Code of Conduct, Supplier Code of Conduct and the annual Compliance Confirmation, Sika has defined minimum human and labor rights standards to be implemented globally, including the prohibition of forced, slave, compulsory or child labor, the freedom of association, the prohibition of any form of discrimination, and the guarantee of fair compensation and equal opportunities for all employees.
With operations that expand worldwide, Sika is active in many regions ranking high on human rights risk indices. Sika takes seriously its responsibility to assess its own operations in relation to potential human rights violations, and to implement adequate measures to prevent any violation.
Human Rights
Sika strictly follows all laws and regulations which are applicable to its business. The company, all its employees, and suppliers strictly follow the Sika Code of Conduct and the Sika Supplier Code of Conduct, no matter where they work and what their function is even if it is stricter than applicable local laws.
Roughly 30 audits (including internal and legal audits) are performed annually, covering about 20% of Sika’s subsidiaries each year. These audits aim at reviewing the implementation of the following human and labor rights principles: non-discrimination (including the prohibition of harassment and sexual harassment); fair compensation; prohibition of forced, slave, compulsory, or child labor; freedom of association (without need of prior approval) – unless prohibited by local laws.
Child Labour and Forced Labour
The Sika Code of Conduct requires all employees to comply with applicable laws and regulations. At all locations where Sika operates, forced, slave, compulsory or child labor are prohibited. In 2021, Sika has received no indication nor any report of human rights violations concerning its own entities. The Sika Supplier Code of Conduct promotes the respect of human and labor rights, together with supplier audits and reviews. It appears in fact that Sika has a broad supplier base in many countries with high human rights violation risks and the sourcing from industries where labor rights potentially are at risk. By signing Sika’s Supplier Code of Conduct, suppliers undertake to respect the provisions of the UN’s Universal Declaration of Human Rights (UDHR) and the core Conventions of the International Labor Organization (ILO).
Sika strictly follow the 10 UN Global Compact Principles and does not accept “child labor” (see Global Compact Principle Five; “Business should uphold the effective abolition of child labor”).
UN Global Compact
Minimum Age for Admission to Employment or Work
| Developed Countries | Developing Countries |
|
|---|---|---|
| Light Work | 13 Years | 12 Years |
| Regular Work | 15 Years | 14 Years |
| Hazardous Work | 18 Years | 18 Years |
ILO Convention No. 182 requires governments to give priority to eliminating the worst forms of child labour undertaken by all children under the age of 18 years.
Freedom of Associations, Collective Bargaining, and Trade Unions
Sika strictly follows the 10 UN Global Compact Principles and acknowledges the freedom of association and the effective recognition of the right to collective bargaining (see Global Compact Principle Three: "Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining."). Morevoer, by signing Sika’s Supplier Code of Conduct, suppliers undertake to respect the provisions of the UN’s Universal Declaration of Human Rights (UDHR) and the core Conventions of the International Labor Organization (ILO) regarding:
- Prohibition and elimination of child labor and forced labor
- Freedom of association and collective bargaining
- Promotion of equal opportunity and fair treatment in employment and occupation
- Safe and healthy working conditions
- Payment of living wages and regular employment entitlements
- Non-excessive working hours
Sika is present in 101 countries with both small and large subsidiaries. In many of the smaller companies, the number of employees is low and no collective bargaining agreements exist. However, in many big countries, e.g., USA, Germany, France etc., collective bargaining agreements for workers are the rule, and most workers at these locations are covered. In 2021, almost 47% of the total workforce is covered either by trade unions or work councils, while roughly 30% of the total workforce is bound by collective bargaining agreements.
Non-Discrimination
As stated in its HR policies and employment contracts, Sika is an equal opportunities employer. It thus is committed to treating all staff equally, refraining from any discrimination based on race, color, gender, age, national origin, religion, sexual orientation, gender identity or expression, marital status, citizenship, disability, or any other legally protected factor.
Compensation & Benefits
Sika companies and their employees comply with global and local labour and social standards. This means that staff is remunerated according to prevailing international and national regulations and laws. Regulations on minimum wages are binding. Besides international and national standards, company, team and individual performance determines compensation level. Compensation is reviewed yearly and is determined based on the scope and responsibility of the role, the external market value of the role and the skills, experience and
performance of the individual in the role. Progress and performance of employees are continuously monitored and are reflected by the market compensation practice in each country.
The remuneration strategy is developed and determined on corporate level by Corporate HR and on country level by the regional and local HR in close collaboration with the Group and local management. The best practice Compensation and Benefits strategies are implemented in order to ensure efficient and effective management of rewards and to attract, motivate and retain highly qualified and engaged employees.
There are no intended differences between benefits provided to full-time employees and to temporary or part-time employees, although differences in individual cases cannot be excluded.
The Compensation Report describes the compensation principles and programs, as well as the governance framework related to the compensation of the Board of Directors and the members of Sika’s Group Management. The report also provides details regarding the compensation programs and the payments made to members of the Board of Directors and of Group Management in the 2021 business year.
Anti Corruption
Corruption is a phenomenon with a worldwide presence, causing economic damage and contributing to an unfavorable business environment by distorting market mechanisms and increasing the cost of doing business. Corporate Compliance on an annual basis assesses all operations regarding potential and actual corruption risks. It does so based on "Transparency International’s" corruption index, combined with internal reports it has received about incidents of bribery.
As in previous years, in 2021 the General Managers (GMs) of all Sika entities in the context of Sika’s annual “Compliance Confirmation” questionnaire confirmed that no corruption investigations were launched against Sika in their respective countries. GMs are required to immediately escalate suspicion or allegations of bribery to Corporate Compliance.
Monitoring and Steering
At Sika, a matrix organization is administering Sika’s Compliance Management System.
Sika’s Code of Conduct encourages every employee to speak up and report observed misconduct, including any act potentially representing bribery or unfair competition. The same reporting requirement is anchored in Sika’s contracts with third parties and its Supplier Code of Conduct. Employees and third parties may report potential violations of Sika’s anti-corruption and fair competition guidelines either via line management or via Global Compliance Organization. Employees have at their disposal an online whistleblowing channel called “SikaTrust Line”, which also allows for anonymous reporting.
