Internal audit monitoring compliance

The mission of the Group's internal audit remained unchanged in 2009: providing consultative auditing on targets and issues separately identified by the Board Audit Committee and the Group Executive Committee. The focus is on distributing information and on identifying and controlling potential business risks. Internal audits are carried out in close cooperation with the Group's finance and risk management functions, with financial administration bodies and external auditors. Internal audit reports to the Audit Committee, which approves its operational plan.

In 2009, 27 individual units or functions were audited either independently or in cooperation with external service providers. Internal audit monitors compliance with Outokumpu's Ethical Principles, Corporate Responsibility policy and Code of Conduct, and the ways in which these principles and policies are incorporated into general operational procedures in Group companies and units. Although no major risks were identified, two cases of suspected infringement and embezzlement within the Group were investigated and the police were notified where this was necessary. The current understanding is that the scale of any possible wrongdoing was not significant.

A confidential Helpline has been set up on the company intranet and on the Internet, and this can be used anonymously to report to our internal audit any action that contravenes the Group's Corporate Responsibility principles. Three cases of discrimination reported during 2009 were handled at local level. Two cases of misconduct were reported through other channels. In one of these the police were involved and the employment of the person in question was terminated. The other case involved interpersonal relations and was handled at local level.