Fairness in Financial Reporting
The Group needs sincere and reliable financial information in order to ensure the quality of its management and the confidence of its shareholders, partners and suppliers.
Values
“The Company is in favor of open, regular, accurate and honest communication with its shareholders and the representatives of the financial community... Respecting facts demands objectivity and intellectual honesty, above and beyond opinions and preconceived ideas. It means daring to recognize that a problem exists and admitting the reality of its impact, even when solutions seem hard to find."
Michelin Performance and Responsibility Charter (2002), Implementing our values, exercising our responsibilities
Guiding Principles
The operations and transactions carried out by the Group are recorded truthfully and faithfully in the accounts of each Entity in accordance with applicable regulations and internal procedures.
Respecting the facts means maintaining objectivity and intellectual honesty, beyond opinions and prejudices.
Any attempt to falsify financial reports is considered a violation and will be duly sanctioned.
Do: I must
- Report promptly, completely and honestly any information that may have an effect on financial information.
- Justify all entries with evidence. Ensure the reliability of financial and accounting information.
- Respect the internal control rules.
- Speak up if I observe a possible breach of the principle of fairness in financial reports.
Don't: I must not
- Sign or approve documents that are inaccurate or do not reflect reality.
- Neglect to correct the accounting or to make an alert if I am aware of assets or debts not recorded on the Group's balance sheet.
Practical case 1
You are responsible for the budget. You notice at the end of the year that you risk exceeding the budget to which you have committed. What do you do?
You don't try to agree with your suppliers on delaying invoicing into the next year in order to keep your commitment. Accounting records are linked to receipt of the good or service, rather than to receipt of the invoice.
Practical case 2
You check sales reports prepared by your manager and find errors. You hesitate to talk to your manager about it, is it the right attitude?
No. You don't have to be afraid to let them know. On the contrary, you serve the interests of the Group by preventing republication of inaccurate information.
