Business Integrity

Fortescue operates under a  Code of Conduct and Integrity Policy which reflects the values that underpin the behaviour of the entire Fortescue family and our relationship with stakeholders.

The Code defines our commitment to achieving and maintaining our reputation as an employer of choice, an ethical business partner and a good corporate citizen. It is the responsibility of all employees and contractors to ensure they are familiar with the Code, which is easily accessible both in printed and electronic formats.

• Code of Conduct and Integrity
• Corporate Governance

Bribery and corruption undermines legitimate business activities, distorts competition and exposes Fortescue and our people to significant risks. Our Anti-Bribery and Corruption Policy outlines our zero-tolerance approach to bribery and corruption, encompassing compliance with the laws of every country in which we operate.

As part of Fortescue’s ongoing commitment, our compliance program includes:

• participation in voluntary anti-corruption initiatives
• regular and specialist fraud and corruption risk assessments
• a commitment to sourcing through suppliers that adhere to our standards
• prohibition of the giving and receiving of gifts which go beyond common courtesies associated with general commercial practice
• rigorous policies around the provision of political donations
• a process for investigating allegations
• channels for employees and others to confidentially report suspected or actual misconduct or violations of company policy

In line with our Board-approved Global Taxation Policy, we work to achieve this by:

• Ensuring implementation of and adherence to our Global Tax Corporate Governance Framework.
• Complying with all applicable tax laws and regulations of each country in which we operate, including reporting and paying all necessary taxes in a timely manner.
• Managing tax risks through constructing appropriate mechanisms that assess both short and long-term tax impacts when making major commercial decisions.
• Developing mutually transparent, cooperative and respectful relationships with tax authorities in the countries in which we operate and communicating with those authorities on tax matters where appropriate.
• Ensuring public disclosures are transparent, timely, accurate and meet stakeholder expectations.
• Operating in good faith through appropriate transfer pricing and not undertaking ‘profit shifting’ activities.
• Entering into transactions on the basis of commercial merit, not for the purpose of avoiding tax.

Our Board is ultimately responsible for ensuring a robust system of internal controls is in place for tax governance purposes. Our Global Taxation Policy and comprehensive Global Tax Corporate Governance Framework are key to governing the management of tax-related risks in Australia and in all relevant overseas jurisdictions. The Board, through the ARMSC, receives regular updates from senior management on the operation and effectiveness of our Global Tax Corporate Governance Framework.

Fortescue accepts a low level of risk in relation to major transactions and tax compliance activities, undertaking to file only verified tax positions. Major transactions are determined based on the value of the transaction and associated tax risk, technical complexity of the transaction and interpretation of the prevailing tax legislation. Where the application of the tax legislation is unclear, we seek external tax advice and consult with the relevant taxation authorities to achieve an appropriate level of certainty. There are also a number of controls, systems and procedures in place to manage our exposure to tax risk.