Good governance

ESG | 2 min read
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Fagron considers good governance vital to conducting business. It helps ensuring a responsible way of doing business and carrying out activities.

The topics that we find important:

  • Compliance with laws and regulations
  • Corruption and bribery
  • Fair tax policy
  • Grievance mechanism
  • Product quality and safety

Our efforts on good governance contribute to SDG 8 (Decent work and economic growth) by our efforts to achieve annual turnover growth.

Compliance

Fagron operates in more than 20 jurisdictions worldwide. We aim to comply with legislation in all jurisdictions where we operate. The businesses are responsible for compliance with local legislation. At Group level, we pay specific attention to compliance by Fagron NV and our holding company Fagron BV (our global services center) as well as compliance in terms of product quality and safety (see Product Quality and Safety).

Our annual target:

  • 0 compliance issues at Fagron NV and Fagron BV.

Corruption and bribery

Corruption & bribery may lead to unfair pricing of pharmaceutical products vital to the operation of healthcare systems in the markets where we operate. Corruption & bribery can also expose Fagron to possible criminal prosecution, fines, reputational damage, and other serious consequences. A bribe or any other form of corruption is therefore never acceptable.

Our annual target:

  • 90% of employees have followed the annual Code of Conduct training.

Fair Tax policy

We recognize that our tax approach has a direct influence on the communities where we operate. We use internal and external tax experts to ensure that we follow the letter and spirit of tax law in the countries where we are active. Fagron pays taxes in the countries where we are present, and we do not use tax havens or non-cooperative jurisdictions for tax planning purposes.

Grievance mechanism

Fagron has a grievance mechanism where employees can express grievances concerning the way that Fagron conducts business on any of the topics described in Fagron’s Code of Business Conduct.

Our target for 2025:

  • All employees have access to a confidential counselor.

Product quality and safety Fagron uses an extensive supplier selection procedure to ensure 100% traceability of more than 2,500 pharmaceutical raw materials. All our suppliers are ISO 9001 or GMP-certified. We audit our suppliers every three years to ensure the quality of the supplied materials. On-site audits are conducted more frequently for suppliers of products with a higher risk profile.