Internal Control

Lafarge is one of the first European groups to comply with article 404 of the Sarbanes-Oxley Act pertaining to internal control. When it announced its voluntary withdrawal from the New York Stock Exchange in 2007, the Group made an undertaking to maintain the high quality of its internal control and financial information procedures.

 

The Group has implemented an efficient internal control system, based on : 

 

  • Cement - Brazil, Matozinhos plant
    Structuring rules and principles : all the Group's internal rules and policies (Principles of Action, organization principles, Code of business conduct, etc.) are applicable to all Group personnel.
  • Formally defined responsibilities : the Group's rules and policies define internal control as being 1 of the fundamental responsibilities of each legal and operational entity's general management.
  • An internal financial control benchmark : internal control standards have been defined. They list the mandatory key controls designed to cover the main risks pertaining to processes impacting financial information, protection of assets, detection and prevention of fraud.
  • Internal control management and facilitation at all Group levels :
    • the Board of Directors and its specialist committees, particularly the Audit Committee, ensure that the Group's internal control policy is implemented,
    • The Group's Executive Committee steers the system as a whole,
    • "Internal control coordinators" are responsible for facilitating internal control in each of the Group's main business units. Their main role is to ensure that the Group's internal control standards are implemented and to take part in the continuous improvement of our processes. Their actions are coordinated by a Group internal control Department.

 

Internal control is thus an integral part of Lafarge corporate governance. It provides a guarantee of transparency and quality in the Group's internal processes.

 

Controls and procedures (2014 annual report) (pdf, 77.85 KB)