sain t-gobain annu al report 2008 annual report

Self-assessment questionnaire
In 2005, a self-assessment questionnaire was developed
covering the following processes: Saint-Gobain Group
Principles of Behavior and Action, financial management,
treasury and financing, insurance, accounting, legal affairs,
tax, information systems, human resources, environment,
health and safety, industrial risks, sales, marketing, Research
and Development, procurement, supply chain management
and production.
The questionnaire was rolled out to the Group entities in
successive phases in 2006 and 2007 for the first exercise,
and 2008 for the second. The 2008 questionnaire comprised
300 questions and included the recommendations contained
in the accounting and financial internal control
implementation guidance issued with the internal control
framework published by the Autorité des Marchés Financiers
in January 2007.
Some 700 operating units were asked to assess their level
of internal control in each of the areas covered
by the questionnaire. They were then called upon to develop
and implement action plans to address the internal control
weaknesses identified during the self-assessment process.
A specific computer application was developed to allow
the Group to track execution of the self-assessments
and the resulting action plans.
Implementation of the procedure was overseen by the Sectors
and General Delegations, which presented regular progress
reports to the Group’s Executive Committee.
Internal control reference base
The internal control reference base describes the Group’s
internal control system and presents, in a manual,
all the mandatory controls to be implemented by all
subsidiaries. It was produced in 2008 and will be rolled
out to Group entities in 2009.
The internal control manual is organized around 17 areas
covering substantially all transactions carried out at all levels
of the Group.
The managers responsible for each area are tasked
with identifying the main risks associated with the area’s
processes and determining the main control procedures
required to avoid or limit these risks.
The controls described in the manual must be incorporated
in each entity’s internal procedures.
Group financial, administrative
and management procedures
The Doctrine Department is responsible for preparing
all financial, administrative and management procedures
applicable to Group companies. Together, they compose a
body of rules, methods and procedures enshrined in
some 200 documents accessible on the Group’s intranet,
that can be used by the individual entities as a basis
for developing their own internal procedures. The rules,
methods and procedures are organized in four chapters,
Group Organization & Procedures, Financial Reporting,
News & Meeting Reports, and Issues Specific to France.
Doctrine briefs are prepared by the corporate departments
concerned, and are then approved by the Doctrine Committee
made up of the Sector and General Delegation Finance
Directors and the Vice Presidents in charge of the corporate
departments.
In 2008, over 60 doctrine briefs were added, updated
or modified.
In addition to the production of doctrine briefs, in 2008
priority was given to:
• Communication (to push information to the units),
through:
- Information meetings
- Reviews of existing training courses and introduction
of new ones
- Creation of a quarterly doctrine newsletter, sent by e-mail
to some 800 finance staff throughout the Group
- Production of helpful materials, such as guides
and checklists, fold-out chart of accounts, etc.
• Leading the accounting function in France.
Lastly, work continued on the Doctrine intranet, to enhance
content and make it more user-friendly.
Environment, Health
and Safety (EHS) reference manual
The EHS reference manual describes the approach
to be followed by all units to meet the Group’s overall
objectives in terms of environmental protection
and the prevention of workplace accidents and occupational
diseases. The approach is organized around the core processes
of identifying risks, implementing preventive action
and assessing and monitoring the system’s effectiveness.
The EHS reference manual is accessible on the Group intranet
and is distributed to all sites. The Building Distribution Sector
has adapted the manual to reflect the specific characteristics
of this business.
The EHS Department and its network of correspondents
have also drawn up EHS standards describing the methods
to be applied to resolve specific environmental, health
and safety issues. Implementation guides, procedures,
training packs and computer applications have been developed
to support application of the standards. These tools help
to ensure that risks are measured and controlled according
to the same preventive base at all Group units, whatever
the country and the local laws and regulations.
NOS (NOise Standard) is a standard for identifying, assessing
and managing potential exposure to noise in the workplace.
Developed in 2004, it was rolled out to the entire Group
in 2005, including units outside Europe.
TAS (Toxic Agents Standard) serves to identify, assess and
manage potential exposure to toxic agents in the workplace.
A trial version of the standard was launched in 2005
in the form of a guide to using crystalline silica, which is now
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Saint-Gobain - 2008 Annual Report