Governance, Ethics and Transparent Business

We at Prague Airport believe in a modern and responsible society with clearly defined values and a deeply rooted ethical culture. We believe that in such a society, all its levels cooperate on working towards common goals through efficient management, constant awareness and adequate monitoring of risks. Such a company is a model for others in its field and the public.

Our company is managed in line with this vision. It is led by a four-member Board of Directors, which is the statutory body of the company. As the collective body, the Board of Directors makes decisions on the issues of business leadership and strategic direction of the company in accordance with a long-term approach and strategy for the company development, approved by the Czech Republic, our shareholder, represented by the Ministry of Finance of the Czech Republic. Individual Board Members are further divided into four areas of expertise, combining all of the company’s activities. These areas are then managed through a subordinate organisational structure with a multi-level hierarchy of managers responsible for individual areas. The supervisory body of the company is the Supervisory Board. The company has also established an Audit Committee, which aims to contribute to minimising financial and operational risks by continuously monitoring the functioning of the internal management and control system within the framework of the governance system.

The company is governed and managed in line with all relevant laws and regulations, e.g. the Business Corporations Act, in accordance with due care and diligence, with the regulations on criminal liability of legal persons etc. To ensure efficient governance, the company has introduced a robust internal management and control system. 

In addition to the organisational structure and operational management, the functioning and correctness of processes and activities are ensured by clearly defined rules and procedures for individual activities. The policies, procedures and other management documents are systematically and repeatedly communicated to all employees concerned. These management documents define the roles, responsibilities and competencies of various departments and individual units. The internal control system introduces the Three Lines of Defence Model. The first line of defence (operational and managerial) is run by the responsible staff upon the performance of activities. Important processes are controlled by designated specialized units of the 2nd line as well. The efficiency of the management and controls of all processes is independently verified by an internal audit in the 3rd line of defence.

To ensure compliance with the expectations on criminal liability of legal persons, Prague Airport has implemented a comprehensive Compliance Management System run by a specialised Compliance Division (a part of the Audit, Risk Management and Compliance Division, the main body responsible for the functioning of the company’s internal and control system).

As part of precautionary measures, the company has introduced a risk management system at the company level. Potential risks are identified in all processes and the process owners take adequate measures to mitigate the significant risks. The Risk Management and Internal Audit follow the efficiency of risk management in individual areas, e.g. those impacting the environment, society and business economy. The results of the internal audit and results of the 2^nd line control are regularly introduced to the Board.

Prague Airport has implemented a uniform system of corrective measures that communicates the findings of the 3rd and 2nd line of defence units of the company’s internal management and control system and the resulting process adjustments to the responsible members of the Board of Directors, or the Board of Directors as a body, and to the Supervisory Board.

Forming ethical culture constitutes a long-term process and a goal for our company, as we consider the high standards of our conduct and approach to be a part of our daily work and a prerequisite to maintaining and further developing trust in the Prague Airport Group and its good reputation. By accepting the following corporate values: 

• safety 
• customer orientation  
• competitiveness  
• responsibility 
• and transparency, 

the companies of the Prague Airport Group pledged to unconditionally follow the legal system and to maintain high moral standards. Our “ethical code” – the Code of Conduct and Ethical Principles – has become an essential tool for strategic management and forming the company culture of the entire Group.

By acknowledging the code, we declare our commitments to customers, business partners, employees and the nearby community we operate in. We define clear standards of workplace conduct and conduct in areas we consider crucial for our business. We focus on enhancing the transparency of our company, for example by preventing conflicts of interest, corruption and other cases of wrongdoing, as well as on environmental protection, safety or building good relations at work and with our partners.

To achieve all of these goals, we ask every one of us to take personal responsibility for enforcing ethical and company culture, which constitutes a set of patterns of behaviour, standards, values, procedures and customs created by the company itself, its representatives, but primarily by its employees.

In accordance with the principles of good practice, the company has implemented a comprehensive Compliance Management System which co-creates the company’s ethical culture, but also strives to make an impact on the business culture of external relations. Our Code of Conduct and Ethical Principles are the foundation of this approach, but they are only the beginning. As a further precautionary measure, we define clear and binding rules on conflict of interest and competition. Similarly, we have clearly defined rules for the acceptance and provision of gifts and hospitality. Our company is aware of the risks of wrongdoings, including corruption, and therefore systematically maps these risks in order to detect them and actively prevent them using appropriate tools. For example, we assess the risk level of individual job positions, we are interested in the integrity of selected employees (Know Your Employee process), and in our business partners (Know Your Customer/Supplier process).

We are convinced that in the case of our company, it is not enough to enforce business ethics and transparency only inside the company itself, but through the relations with our business partners as well. We want to work with business partners and organisations which feel the need to follow ethical principles and binding rules like we do, and which take a responsible approach to their employees, the environment and society as a whole. We have defined a set of minimal requirements that are prerequisites to correct relations. We expect our business partners to respect them, just like we do. We take an active interest in who we work with, map and assess the risks of the business relations we enter into, and we try to use all appropriate and available tools to prevent risks and promote ethical principles, including a socially responsible, environmentally responsible and innovative approach.

We actively react to and check all suggestions regarding all above-mentioned preventive and detective processes, and where shortcomings are identified, we address the risks appropriately.

The companies of the Prague Airport Group (“Companies”) have made a voluntary commitment to implement the rules of social responsibility in terms of their activities and business. We openly declare the commitment to act in accordance with our values, ethical principles, laws and regulations and binding rules. Zero tolerance for corruption is one of our main commitments.

The Companies’ commitments to enforce ethical principles within and outside the Companies are formulated in our strategic documents:

• Code of Conduct and Ethical Principles

• Business Partner Code of Ethics

In both of these documents, the Companies’ Boards of Directors unconditionally declare zero tolerance for crimes, including fraud, corruption and terrorism, committed by employees, persons acting on behalf of the Companies or business partners. The Companies accept their responsibilities in terms of applicable laws and binding regulations, including international standards for combating corruption and other wrongdoings, and at the same time undertake to create and develop appropriate conditions in the form of sufficient human and financial resources, management structure and control mechanisms.

Zero Tolerance for Corruption

• We don’t tolerate criminal conduct, in particular corruption and fraud.
• We encourage the reporting of such actions and guarantee the confidentiality and protection of whistleblowers (Compliance Ethics Line).
• We investigate suspected wrongdoings thoroughly and respond appropriately to the results.

Preventing and Combating Corruption 

• We have implemented rules to prevent conflict of interest, including the duty to report potential conflicts of interest. We investigate conflicts of interest and other risks in terms of employee integrity thoroughly.
• To prevent wrongdoings, we organise targeted trainings for managers and employees in high-risk positions.
• We assess and address the risks in contractual relations with our business partners (Know Your Customer/Supplier process).
• We declare that we absolutely don’t require gifts from our business partners and we avoid accepting them.

The companies of the Prague Airport Group (“Companies”) explicitly define their commitment to act in accordance with corporate values, ethical principles and legal and binding regulations. They demand a similar commitment in relation to their business partners.

Human rights and freedoms constitute an integral part of the Constitutional Code of the Czech Republic and as such have the highest level of protection provided by state administrative bodies, including the independent judicial system. The principles of application and protection of fundamental human rights and freedoms are reflected by specific regulations in the areas of labour law, civil law, environmental law and others. The Czech Republic is a member of the European Union, which also protects human rights and freedoms through its institutions and regulatory system.

In addition to the general reference to compliance with legal and binding regulations, Companies also address specific areas related to human rights and freedoms in the Code of Conduct and Ethical Principles, such as:

• Whistleblower protection – Compliance Ethical Line / Internal Notification System
• Environmental protection (EMS, ISO 14001)
• Life and health protection (of employees, passengers and other persons) – Safety, Security and OSH
• Personal data and intellectual property protection
• Building correct workplace relations – no discrimination, humiliation, harassment and intimidation

Regarding the requirements towards our business partners, the area of human rights and freedoms is included in the Business Partner Code of Ethics, which fulfils the requirements of the ten principles of the UN Global Compact, including the promotion and protection of human rights, the elimination of forced labour, child labour, employment discrimination, environmental protection and the fight against corruption.

We understand and actively promote the protection of human and employee rights as a continuous, never-ending process.

As a public procurement authority, we push for more environmentally friendly solutions, social aspects and innovative solutions in tenders for suppliers of services, products and materials. We primarily emphasise the strategic areas of the ESG. Through responsible public procurement, we co-create the pressure on the suppliers and promote the supplies of more sustainable and innovative variants of products and services.