ETHICAL STANDARDS
ETHICAL STANDARDS & COMPLIANCE We expect our team members and the third parties with whom we do business to conduct themselves with high ethical standards and in compliance with applicable laws wherever we do business in the world. We continually strive to build and enhance a culture of responsible and ethical behavior and our corporate ethics and compliance program helps to advance that business environment. PROGRAM DESIGN AND OVERSIGHT We design our risk-based Ethics and Compliance (E&C) program in alignment with the U.S. Department of Justice’s Evaluation of Corporate Compliance Programs framework. Our EVP, general counsel and corporate secretary has ultimate ownership of the E&C program, which is led by our SVP, Deputy General Counsel and Chief Compliance Officer (CCO). Our CCO regularly reports to executive leadership and to the Audit Committee of the company’s Board of Directors on E&C program design and implementation, compliance risk areas and other compliance matters. POLICIES AND PROCEDURES In 2022, we established a Policy Governance Council comprising certain executive leaders that is charged by the CEO with overseeing and approving corporate policies that apply to team members globally across the enterprise. We released several new or updated standards last year and we continue to work with subject matter experts across the organization to identify opportunities to update or create additional standards.
In 2022, we released or refreshed several keystone E&C-focused corporate standards. First, we revamped our Code of Ethics and Business Conduct . We used simple language, automotive references and relevant examples to help empower our team members with a framework for ethical decision making on topics such as how we conduct business fairly and with integrity, how we demonstrate care for others and our community and how we protect our assets. We also released an updated and enhanced Supplier Code of Conduct that sets out the company’s expectations of our suppliers in areas such as human rights, bribery and corruption, conflicts of interest, information security, trade compliance and reporting concerns. Finally, we refreshed our Code of Ethics and Business Conduct for Finance Professionals , which sets out our commitment to and expectations for honest and ethical conduct by Advance’s finance professionals, as well as for full, fair and accurate financial management and reporting.
TRAINING AND TEAM MEMBER COMMUNICATIONS
To help drive ethical decision making across the enterprise, we require annual training on topics such as our Code of Ethics and Business Conduct, fair and respectful workplace requirements and other selected compliance topics. In 2022, all of our team members were required to complete a customized Code course written and developed in-house with relevant, targeted content for our team members. To help empower our team members to make the right decisions and to embed E&C in the fabric of our organization, we have a comprehensive communications plan that includes events such as our 2022 in-person and virtual “Ethics & Compliance Culture Connect” that featured our CEO and certain members of his executive committee discussing our refreshed Code and certain ethical issues, as well as other periodic targeted communications from our leaders to their teams help to underscore our company’s focus on building and sustaining an ethical culture. We also use tools such as ”Do It the Right Way” guides that use simple and clear language to share our expectations on selected topics with team members in the field.
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2022 ADVANCE AUTO PARTS CORPORATE SUSTAINABILITY AND SOCIAL REPORT | 58
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