Good governance and business ethics

Valorem’s outstanding initiative

• The delisting process from the Colombian Stock Exchange was finished through a Public Offering of Acquisition (OPA).

Achievements

• In the OPA Invernac & Cía S.A.S. obtained 7,11 % of the available shares.
• Valorem became regulated by the Superintendency of Corporations and will maintain the highest standards of corporate governance.
• Valorem, through an asymmetric spin-off by creation, split part of its equity to the company Kartal S.A.
• The company turned into a Simplified Stock Company (S.A.S.)

Caracol Televisión’s outstanding initiative

• The Comprehensive Risk Management System for Caracol Televisión was consolidated, with the Risk Management Policy and the reinforcement of the components of the internal control system.

Achievements

• The Comprehensive Risk Matrix was developed including the identification of issues related to HHRR (Human Rights). All the vice presidencies of the core processes participated in this exercise to accomplish a first matrix with responsible managers. This process included:
  • Definition of core processes, management processes and support processes for the different vice presidencies of the company.
  • Identification of leading risk managers and / or risk managers.
  • Enumeration of risks, risk profile and treatment thereof.
  • Definition of controls for risks.
  • Risk monitoring (validate execution and effectiveness of controls).
  • Treatment of events (notification of the materialization of a risk).

El Espectador’s outstanding initiative

• To achieve that 100% of clients and suppliers are verified prior to their creation in the system.

Achievements

• An optimal supplier was hired for the provision of the required information for the ML/TF assessment (including OFAC, Office of Foreign Assets Control).
• The guidelines for risk evaluation and third parties’ verification for ML/TF Asset Laundering and Terrorism Financing (including OFAC) were implemented.
• Prior verification of ML/TF for the creation of clients and suppliers in the information system.

Cine Colombia’s outstanding initiative

• Cine Colombia has stood out for its rigor in the control and fulfillment of all its actions.

Achievements

• To consistently implement expense control processes in purchasing decisions, verifying against the budget and guaranteeing the quality of suppliers.
• To carry out weekly purchasing and allocation committees, complying with the supplier evaluation policies.

Tiendas D1’s outstanding initiative

To promote awareness of the ethics line to ensure that it is an effective communication channel both internally and externally.

Achievements

The internal anti-corruption and bribery policies were diffused to 100% of the employees, which regulate and promote ethics and commitment to the business.

• Diffusion of the availability of the channel dudas.etica@koba-group.com, in order to receive any doubt, suggestion or comment related to ethics, corruption or bribery issues. This channel is also available on the web page www.tiendasd1.com
• This process is managed by the internal compliance officer, who objectively analyzes the complaints received in order to guide and / or support the internal or external necessary inquiries with the other members of the Ethics Committee.

Refocosta’s outstanding initiative

• To continue complying with the standards established in terms of corporate governance and business ethics.

Achievements

• The first corporate governance report of the company was prepared and presented at the general shareholders’ assembly meeting in March 2018.

Ditransa’s outstanding initiative

• To promote good practices of ethics and transparency in a sector characterized for its informality and has a high level of unfair competition.

Achievements

• The transparency campaign was continued
• Within the framework of the campaign, t-shirts were given to employees with the message “I receive no commission”, to promote the non-reception of money for the trips they make with the company.

San Francisco Investment’s outstanding initiative

• To implement good corporate governance practices

Achievements

• SFI implemented an anti-corruption and anti-bribery policy within the organization, which guarantees greater transparency in the contracting processes.
• It implemented Valorem’s ethical line, which allows for reporting channels for officials and contractors.