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Balance 2015 ENG - Corporate governance and compliance

Corporate governance and compliance The German Stock Corporation Act (AktG) and the German Corporate Governance Code are key elements in this context. The Company’s declaration of compliance with the German Corporate Governance Code was updated in December 2014 and is published on the Internet at declaration-of-compliance. Compliance program Compliance describes all measures that ensure the lawful conduct of companies, their executive bodies and employees with regard to adhering to legislation. The Lufthansa Compliance Program, estab- lished in 2004, aims at helping its employ- ees adhere to legal norms and keeping them from breaking the law. As an aviation company with global activities, the Lufthansa Group advocates fair competition, integrity and responsible action. Group Compliance Office The Compliance Office, which was set up on October 1, 2007 within the central legal department, is responsible for the implemen- tation, development and communication of the Lufthansa Compliance Program. In addition, there is a network of Compliance Commissioners and Compliance Managers across the various Group companies. The Compliance Office coordinates the investigation of circumstances relevant to compliance and in this context serves as a contact point for cartel and investigative authorities. In such cases, Lufthansa cooperates fully with the authorities. The core components of the Lufthansa Compli- ance Program are its compliance guide- Corporate Governance at the Lufthansa Group is expressed as responsible corporate management and control which targets sustainable value creation in accordance with the highest international standards. Such corporate gover- nance is of central importance for the Company’s transparency vis-à-vis its shareholders and for continuously increasing trust in its management. Ombudsman system A further basic component of the Lufthansa Compliance Program is the globally implemented and proven ombudsman system. Introduced on December 1, 2007, it serves as an additional preventive measure against economic crimes. Relevant information can be given by employees or by third parties to an ombudsman outside the Company, by telephone, in writing or in person. The ombudsman function is fulfilled by Frankfurt- based lawyer Dr. Rainer Buchert, who is fully bound by the professional obligation of secrecy and also has the legal right to refuse to give evi- dence to public investigative authorities. The ombudsman communicates any information he receives to Lufthansa while respecting absolute con- fidentiality concerning the name and identity of the informant. In this way, the disclosure of an informant’s identity to Lufthansa or to third parties without his or her consent is ruled out. Furthermore, Lufthansa is listed in the joint transparency register of the European Commission and the European Parliament. The goal of this public register is to increase the transparency of decision-making processes within the EU on a voluntary basis and to ensure that the interactions between EU institutions and organizations, associations or companies are in conformity with current law and are carried out on the basis of ethical principles. 26 // Sustainable Business Practice