34•GOVERNANCEANDMANAGEMENT
PANDORAANNUAL REPORT2014
Taking action tomitigate risks
As a global companywith central crafting facilities, a
global distribution network and points of sale across the
world, PANDORA needs to be fully aware of future risks
andopportunities.The Board of Directorsmakes regular
assessments of the overall and specific risks associatedwith
theGroup’s business and operations to ensure all risk is
managed in a proactive and efficient manner.The Board
alsodevelops long-term and short-term strategies to take
advantage of opportunities as they arise.
The Board of Directors regularly reviews theGroup’s
established internal control systems – including a
whistleblowing function – to ensure that they remain
appropriate and sufficient. In the case of highly complex
transactions and contracts, weworkwith advisers to
mitigate risk.
The significant current risks are (no specific order):
RISKS
BRANDANDREPUTATION
Our sales are to a large extent dependent on the success of the PANDORA brand, and loss of brand value or damage to the
brand’s reputation could have an effect on theGroup’s earnings.
Description
Status
Our reputation and business could be affected by negative
events covered on social media, related to PANDORA’s
core business and values. PANDORAhas not experienced
negative coverage on social media on amajor scale.
In recent years, we have strengthenedour presence indigital
media channels throughour websites, eSTOREs, PANDORA
Club and social media.These channels enable us to engage
directlywith end customers and respondquickly and
transparently toquestions and comments.
Our reputation and business could be seriously affected
if theGroupdoes not complywith applicable laws and
regulations, or if it is perceived by the public as failing
tomeet certainCorporate Social Responsibility (CSR)
standards, including labour standards.
We have taken steps to align our CSR standards globally.
These steps include formally adhering to theUnited
Nations Global Compact, taking an active role in the
Responsible Jewellery Council, and integrating PANDORA
Ethics
, our CSR and compliance programme, into our
entire value chain.
