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.
By means of audits and inspections, Sika ensures the protection of human and labor rights among its Group companies. On an annual basis, Corporate Compliance, Corporate Legal and Internal Audit are expected to run a total of roughly 50 assessments to monitor the implementation of Sika’s human and labor rights standards and to implement improvement measures if necessary. In addition, on-site EHS risk and quality audits are partially focused on protecting human rights and labor standards by ensuring the implementation of minimum health and safety requirements. Sika conducts about 15 such risk and quality audits each year.
Child Labor and Forced Labor
Sika categorically prohibits child labor. To date, no child labor has ever been reported internally, whether via the Sika Trust Line or other speak-up channels. To ensure that no child labor exists in its supply chain, Sika requires all of Sika’s tier 1 suppliers to sign its Supplier Code of Conduct (SCoC), which also contains a categorical child labor prohibition. Suppliers are expected to have systems in place that ensure the proper implementation, training and monitoring of the no child labor principle and all other fundamental human and labor rights among their own personnel as well as the employees of their subcontractors and suppliers. Sika regularly performs supplier audits and assessments to monitor compliance with its SCoC.
Sika strictly follows 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. | ||
In 2022, Sika assessed the geographical network of its own operations and of its tier 1 suppliers and the prevalence of child labor violations within those countries. This evaluation is based on the UNICEF Index of Children’s Rights in the Workplace*. The analysis conducted shows that at operational level, Sika does not operate in countries with a high risk of child labor.
* The methodology of the Atlas is guided by the United Nations Guiding Principles for Business and Human Rights (UNGPs) and Children’s Rights and Business Principles (CRBPs), which set out the expectations of companies in respect for human and children’s rights. Many of the more than 150 indicators are child-specific and some are human rights indicators that affect children directly and indirectly in the contexts in which they and their families work and live. The Workplace Index measures the extent to which countries eliminate child labor and provide decent work for young workers, parents, and caregivers. It evaluates five issues categories such as minimum age of employment, categorical worst forms of child labor, hazardous work, decent work conditions and maternity protection. The focus of Sika is on countries considered at “enhanced” (medium risk) and “heightened” (high risk) risk of child labor.
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."). Moreover, 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.
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 labor 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 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.
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 corruption index, combined with internal reports it has received about incidents of bribery.
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 “Sika Trust Line”, which also allows for anonymous reporting.