DNFP 2019

2019 DECLARATION OF NON-FINANCIAL PERFORMANCE OF THE DESCOURS & CABAUD GROUP 25 Non-observance of regulations Companies are in essence focused on performance and commercial productivity; however, they cannot neglect compliance with laws and regulations. An efficient company is one that is in compliance with the law. This is always an advantage, and not only in terms of competition. The rapid pace of change in the different laws and regulations means that the company is required to swiftly apply them. Ensuring a company's compliance in all respects entails significant resources and energy, due to the various areas in which compliance applies (business, social, environmental law, etc.) as well as the different geographical scopes (national, European, international). If regulations are breached, the risks are many and various. As the regulations governing our Group are both the most recent ones and those having the greatest impact, we will concentrate on the risk of bribery, due diligence and the European data protection regulation. THE RISK OF BRIBERY: The Sapin II law came into force on 1 September, 2017. It includes an ambitious anti-bribery system liable to reinforce confidence among France's trading partners. This law imposes new risk prevention obligations on companies concerning bribery or the illegal taking of interest. It naturally applies to all our French subsidiaries and also to our foreign subsidiaries. > Risk factors and their consequences: The content of these obligations is set out in a programme of several measures, which must be implemented. Inspection of this system is entrusted to the Agence Française Anticorruption (French anti-bribery agency), which is responsible for verifying integrity and maintaining high ideals in economic life. Given the scale of its measures, potential financial penalties (fines of up to €200,000on individuals and one million euros on legal entities), the geographical scope of DESCOURS & CABAUD and the employees concerned, this risk remains, despite the numerous actions undertaken, a constant focus of attention included in the Group’s DPEF. In addition, the company is potentially exposed to the risk of harm to its image, the impacts of which can be measured in the short or medium term.