G4-14, G4-34, SO4, LA16
AMAGGI governance model implemented in 2011 is constantly improving, through the training of board members by the Corporate Governance Institute (IBGC) and the work of their respective committees. It has a Matrix of Responsibilities that clearly defines the role, financial and non-financial allocations of the Board of Directors and their respective counselors, as well as the Executive Directory.
This structure has an opportunity to align expectations and agreements on the management model necessary for AMAGGI present and future, with a simpler decision-making process and the convergence of interests between the Administrative Council, president and directors, as transparency and strict accountability are cultural values and cultural attributes of the company, within the organization and for the market.
3. The performance and potential matrix, commonly referred to as "Nine Box", is a simple and effective tool used to assess talent in organizations. Its function is to evaluate people in two dimensions: their past performance and their competencies.
AMAGGI risk management is based on the Corporate Risk Management Policy, launched in 2015, and acts to mitigate financial, strategic, operational and regulatory risks. In addition to presenting the company's risk management guidelines, the document also defines the tools allowed to carry out mitigation of commercial and financial exposure risks.
AMAGGI organizes its risk management based on some principles, and the first one is that this management is a process, not an isolated event, so it must involve all areas of the company. The others are that its implementation should be led by the Council, the president and the Director of each business area, as well as requiring the dissemination of knowledge culture and risk mitigation, with the routine participation of all employees.
The risk management process goes through some stages, such as risk factors assessment and measurement; preliminary analysis of risk factors and assessment of mitigation alternatives; implementation of mitigation alternatives; communication of strategies implemented; and, finally, control and monitoring of actions. This process is conducted by the Risk Management Committee, which assesses the full compliance with the Corporate Risk Management Policy and proposes applicable alternatives. The committee also has the power to veto proposals for operations that, under its view, are not appropriate to the company.
AMAGGI also has other corporate committees in charge of preventive management: Central Committee for Occupational Health and Safety; Ethics and Conduct Committee; Financial Risks Committee; Tax Committee; Tax Governance Committee and Fiscal Tax Committee; Internal Audit Committee; and People Committee. The Sustainability Committee was reformulated in 2016 and will begin to operate in a new format in 2017. One of the attributions of these committees is to identify and regularly measure the main financial, environmental and social risks to which the company is exposed, besides defining prevention and mitigation measures and procedures.
In 2016 AMAGGI performed a diagnosis with the support of a specialized external consultancy, to implement a Compliance and Anti-Corruption Program. The diagnosis included the analysis of documentation and systems, interviews with directors and managers, and a mapping of interactions with governmental entities. The process resulted in a report indicating points of improvement and attention, which is under internal review of the areas and boards involved with the topic.
The contracted consultant's support also includes backing in the creation of an Integrity Policy, which will include procedures related to the Compliance and Anti-Corruption Program, in an integrated manner with the standards, communication channels and Code of Ethics and Conduct, already implemented by AMAGGI.
Following the approval of the Integrity Policy, a plan of action will be drawn up, as well as a schedule of future communications and training in anti-corruption policies and procedures.
AMAGGI offers a Reporting Channel, with the option of anonymity, available by email, website and telephone 0800 647 0004. It is available to all own and outsourced employees, suppliers and the community in general. All complaints received are investigated and analyzed; if something is proven irregular, the case is referred to the Board and Presidency.
In 2016 the company approached 108 cases; of this total, 86 were resolved in the same year, 12 of which were registered before the reporting period.