Corporate governance

    Palsgaard is driven by the objectives of its owner, the Schou Foundation, and the needs and preferences of our customers. We promote transparency and accountability in all aspects of our operations, never losing sight of our responsibility as a global business working in an international community.

    Structure and responsibilities

    Palsgaard A/S is ultimately owned by the Schou Foundation. Being foundation-owned protects Palsgaard from takeover and provides us with the freedom to consider our business in a more visionary way, focusing on long-term, responsible goals rather than short-term financial returns. Palsgaard's CSR strategy and action plans are entrenched to 2020. Our CSR Steering Committee – supported in practice by our CSR Working Committee, our Carbon-Neutrality Workgroup and our RSPO Workgroup – is responsible for carrying out our strategy. 

    The UN Global Compact

    Palsgaard aligns itself with the 10 principles set out by the UN Global Compact, addressing human rights, employee welfare, environment and anti-corruption. Our mission, vision, values and policies support these principles, and our 2017 CSR report also functions as our annual Communication on Progress (COP). 

    We aim to exclusively work with ethical and responsible suppliers that recognise and support the UN Global Compact's principles. Our Responsible Sourcing Programme is used to assess key suppliers based on these principles along with a number of our internal policies. 

    CSR policies

    Palsgaard has formalised seven policies that guide our activities and help us achieve our objectives. These policies closely reflect our commitment to the UN Global Compact principles, and to comply with EU and local regulations in the countries which we operate in.

    Responsible sourcing

    Management of our supply chain is integral to our quality assurance system. We need to ensure that our raw materials meet quality and reliability standards. We also work with our suppliers to implement improvements in their work practices.

    Our raw materials are grown, and therefore sourced from countries all over the world. This naturally comes with a diverse mix of local rules and regulations, which can be challenging when it comes to prioritising sustainability and fair labour conditions. This is, of course, in contrast with Palsgaard's own ambitions and principles. The Responsible Sourcing Programme helps us to address some of these issues.

    In particular, influencing suppliers one or more links away is a challenge. However, our Corporate Code of Conduct and Supplier Code of Conduct establish requirements for suppliers and partners in business ethics, human rights and employee welfare. We ensure that our stance in this area is clear to all suppliers and we aim to maximise opportunities to influence them.

    Palsgaard has supported Sedex (the Supplier Ethical Data Exchange) since 2008. As a member, we answer in-depth questionnaires about all our production sites, the results of which can be made available to customers that are also members of Sedex. We have also conducted the four-pillar SMETA Sedex audit at our facilities based in Denmark, The Netherlands and Malaysia. 

    Corruption and cartels

    Our zero-tolerance towards corruption and cartels is outlined in the Code of Conduct and we have also published an anti-corruption booklet. We communicate our principles on corruption to relevant employees, interest groups, agents and distributors. Our sales and procurement employees are identified as being the most likely to be confronted with corruption and cartel activities and therefore, receive additional guidance in anti-corruption behaviour. 

    Palsgaard has selected a suitable bribery and corruption e-learning programme, facilitated by UNGC. It will be introduced for the first time in 2018 to employees with a procurement or sales role. The programme will be implemented at our headquarters in Denmark and all subsidiaries. 

    The 2017 CSR report further details our commitments.

    “We put considerable effort into risk analysis and the Responsible Sourcing Programme to ensure that our suppliers act responsibly. And when it’s possible to source raw materials from a sustainably certified supply chain, audited by a third party, it gives even more confidence in producing a truly sustainable product.”

    Lisa Mortensen, Senior CSR specialist, Palsgaard A/S

    Palsgaard and CSR

    Check out our video explaining how we work with CSR around the world

    Please contact us for more info

    LDM-May -2014LDM-May -2014  

    Lisa Drejer Mortensen

    Senior CSR Specialist

    Tel: +45 7682 7530
    Mail: ldm@palsgaard.dk

    Get more info in our 2017 CSR report

    Find out more in our policies