Internal controls
Our commitment to integrity and compliance is set out in The way we work, our global code of business conduct. This, along with our Compliance standard, provides the basis for our Group internal controls.
Our internal control programme systematically reviews our financial, operational and compliance controls and also reviews our risk management procedures to provide assurance over their design, implementation and effectiveness. The programme is managed and implemented by our Corporate Assurance function, which reports the results of internal control testing independently to the respective committees of our board. Through this process we are able to provide assurance over the reliability of our reporting.
Improving performance
The way we work outlines the Group's core values: Accountability, Respect, Teamwork and Integrity. These values are expressed through the principles and standards of conduct set out in The way we work.
All Group employees are required to complete either online or classroom training on the application of The way we work every two years. Additional training is undertaken on key controls and requirements that relate to specific roles. The training provides practical advice on our principles and policies and helps us to achieve the high standards we set for ourselves. The online training is available in 17 languages.
We prepare reports, financial statements and non financial records that give a true and fair view of our affairs using appropriate accounting and reporting practices, which are applied and supported by reasonable and prudent judgments.
Each year, the leaders of Group businesses complete a detailed questionnaire to confirm that our internal controls are operating effectively throughout Rio Tinto and that our businesses are compliant with our financial and non financial policies, standards and mandated practices.
Our management designs, implements and monitors systems, policies, procedures and guidance to improve and sustain all aspects of our performance. These control processes are subject to internal and external audits managed by our Corporate Assurance group. The role of our Corporate Assurance group is to provide confidence to our management, directors and board committees that the systems for risk management, internal control and governance are operating satisfactorily or that actions have been agreed to address known deficiencies in these systems.
In addition, anyone who becomes aware of or suspects any violations of our obligations is encouraged to report the facts or their suspicions directly to senior management or through the Rio Tinto confidential whistleblowing system, Speak-OUT.
Results
In early 2009, we began a major review of our compliance programme to ensure that our systems remain in line with leading practice.
This review has led to the release of a revised version of The way we work, introduction of new or revised standards for anti-bribery due diligence, antitrust, data privacy, fraud and compliance as well as release of a new standard for conducting investigations into allegations of serious wrongdoing. We have also refined our guidelines for information gathering in China and relaunched Speak-OUT, our independently administered confidential whistleblowing programme. Internal communication and training campaigns have accompanied each of these changes. See our library of policies, standards and guidance notes for details.
Rio Tinto maintains an open door approach to employee concerns. Our Speak-OUT system is available to supplement other avenues of issue identification and resolution, such as speaking to a manager, or contacting a human resources representative, or a member of the legal, security, assurance or compliance teams.
Speak-OUT generally operates as a mechanism for employees to report any type of concern or suggestion; however in some regions (such as in the EU) it is limited to reporting serious breaches of law, such as financial irregularities, insider trading, competition law allegations, or bribery or fraud issues.
Approximately two thirds of our Speak-OUT callers choose to remain anonymous. The types of issues raised have been fairly consistent, year on year, over the period that the Speak-OUT programme has been operating.
434 calls were made to Speak-OUT in 2010, of the new issues raised 47 per cent resulted in action being taken in relation to the reported issue.
