Governance
Responsible business
For a company to positively contribute to a better world, good governance is essential. Compliance with laws and regulations is a fundamental requirement for the company to operate legally and ethically. DAF’s corporate governance policies and practices ensure that the Company is governed in accordance with the highest standards of integrity and in the best interests of its stakeholders.
Build a resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation.
We are increasing resource-use efficiency and adopting clean and environmentally sound technologies in our production processes.
Good governance the foundation for sustainability
Governance Structure
DAF has a two-tier board structure with a Supervisory Board whose main role relates to oversight, strategy and planning, and a Board of Management that is responsible for operational leadership, strategy execution and financial management.
Representatives of the Board of Management, including the President, sit on the Environmental, Social and Governance (ESG) Steering Committee and hold responsibility for DAF’s ESG strategy. Reporting to the ESG Steering Committee is the ESG working group, comprising representatives of the various divisions and responsible for executing tasks including risk and opportunity assessments, scenario analysis and planning.
Code of Conduct
Employees and business partners including, suppliers and dealers, are expected to comply with the law and the highest standards of honest and ethical conduct. DAF expects its dealers to have there own compliance program, with audits in place.
Employees receive ongoing training on conducting business with integrity. This focuses on aspects like human rights, ethical business practice, financial integrity, global trade compliance, interaction with stakeholders, health and safety, and commitment to reduce our impact on the environment. The PACCAR Code of Conduct also details how employees can anonymously report code violations through a hotline and clarifies DAF’s non-retaliation policy.
Attention for and by our supply chain
Suppliers are selected based on many factors, including quality, innovation, cost, financial viability, and regulatory compliance. All suppliers must exhibit the highest ethical principles of the Code of Conduct, including those related to anti-bribery, antitrust and fair competition, trade compliance, and business ethics. DAF’s long term supply management vision is focused on value sourcing and the strategic management of five key areas:
- Quality: suppliers’ production processes must conform to PACCAR’s quality requirements, drawn up in accordance with ISO and IATF standards.
- Logistics: to deliver new trucks (and aftermarket parts) on time to our customers, reliable shipments from suppliers are essential.
- Know How: to stay up to date with developments, we expect suppliers to share their technology and know-how of new products and future systems.
- Competitive Position & Total Cost: our suppliers are expected to submit ideas to improve products & processes that help optimize costs, quality and functionality.
- Continuous Improvement & Sustainability: working with suppliers on continuous improvement helps us produce the best quality trucks in the most efficient, cost-effective way. This leads to optimal use of resources, contributing to sustainability.
In 2024, the Supplier Code of Conduct will be updated in alignment with the DAF framework.
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