Evaluation prior to new investments
Prior to any acquisition, an evaluation is always performed to determine if the company complies with local laws and regulations. Kinnevik also assesses the situation in the country with respect to human rights and corruption and determines whether the company in question respects human rights and avoids corruption in accordance with the UN Global Compact guidelines. Environmental aspects are also identified and evaluated prior to new investments.
When potential investments do not adhere to Kinnevik’s guidelines and it is not deemed possible to influence and improve the company’s operations, the consequence is that Kinnevik refrains from the investment.
Development of CR in existing new investments
Because new investments are in smaller, newly started companies, work to develop a CR policy is part of developing the company. Although companies may comply with Kinnevik’s requirements for responsibility at the investment occasion, CR work is long-term and represents an improvement process that is constantly in progress.
Over a longer perspective, portfolio companies must develop a Code of Conduct that contains clear guidelines for how employees should act to ensure respect for human rights and legal compliance and that business operations are conducted in a responsible and correct manner in terms of business ethics, whereby bribery and corruption are avoided.
The Code of Conduct should also include a whistleblower policy and, over time, also include a Supplier Code of Conduct and an environment policy.