Strengthening public confidence towards private enterprise Göran Trogen Director General Almega IT-Employers´ Association Annual meeting 2004 Confederation of Icelandic Employers

Confidence commission A governmental commission Code of conduct corporate management Relation MD-board- AGM Information to shareholders Board procedures Remuneration for management

Almega´s annual meetings items 2002 ”Corporate ethics” in general 2003 ”Values as a management tool” 2004 ”Everyday ethics in service companies”

Ethics-trends and development Risk and damage control-”compliance” Supporting business – ”Ethics pays” Ethics as an end in itself – ”Attractive employer”

International guidelines OECD Guidelines for MNEs ILO Tripartite Declaration on MNEs UN Global Compact Initiative World Bank pronouncements EU activities on “social reports”

Enterprise and Society- FAQ Confederation of Swedish Enterprise How are we to define responsibility? What are the respective roles of companies and governments? What other interests groups are there? How can a company tackle these issues ?

The Confederation´s initiatives Active part in the debate Confidence Conference March 2004 Initiatives and information on int´l codes Seminars, nationally and regionally Sectoral activities – i. e. Responsible Care Research: Relation Market- Ethics Guidance for remuneration

Confederation initiatives cont´d Active part in the outcome of the Governmental Commission´s report/code Active part in national bodies: Stock Exchange Committee-Securities Council and the Swedish Institute to Combat Corrupt Practices.

Guidance for remuneration Main Principles 1. Transparency of information 2. Clarity of terms 3. Impartiality of decision Guidance for remuneration of company directors and senior management personnel

Guidance for remuneration – principles The board as a whole decides on remuneration Fixed salary and variable components related to long or short term goal achievement-predetermined ceilings Pensions are premium – determined not benefit related Severance pay is limited Detailed account in the annual report of remuneration paid Information in the AR and at the AGM on the remuneration policy for the coming year All share-related remuneration programmes are decided by the AGM

Guidance for remuneration – General Clause The board should make a separate assessment of how outsiders might perceive the reasonableness of the remuneration system