Hermès // 2022 UNIVERSAL REGISTRATION DOCUMENT

4

RISK FACTORS AND MANAGEMENT RISK FACTORS

RISKS RELATED TO STRATEGY AND OPERATIONS

4.1.1

IMAGE AND REPUTATION ӳ

4.1.1.1

DESCRIPTION OF THE RISK ◆

POTENTIAL IMPACTS ON THE GROUP ◆

An unfavourable media campaign could negatively affect the image of the Group.

The Hermès Group’s reputation is based on the quality of its products and services offered to customers, the savoir‑faire of its craftspeople and its unique communication. In a globalised world and surrounded by the growing influence of social networks, unfavourable media coverage or individual behaviour contrary to the House’s values of ethics and integrity could affect the Group’s image and reputation.

IMPACT PROBABILITÉ

RISK MANAGEMENT ◆

Maison Hermès, through its production and distribution entities, has built a robust internal control system for all key processes to protect its tangible and intangible assets, including its image and reputation. The Group has rolled out an ethics charter, a code of business conduct and an anti‑corruption code of conduct to all employees. These three documents are sent to all new employees as soon as they join the House and are also made available to them on the HermèSphère intranet in the “Our Ethics” section and on the external website https://finance.hermes.com/en/ethics‑human‑rights‑and‑diversities/. In addition, a continuous training module on anti‑corruption laws has been rolled out to operational staff. In order to act in accordance with the House’s ethics principles and values, the Group also ensures the proper conduct of the various third parties with which it has a business relationship (suppliers, partners). Systems have been set up for managing risks in ethics, CSR, etc. and are detailed in chapter 2 “Corporate social responsibility and non‑financial performance”. Through the structure of its family shareholding, the House remains independent in the way it implements its strategy and conducts its activities, which are carried out in line with its values. The Group has also put in place a permanent monitoring system on the web under the responsibility of the Group communication department. Hermès also has a crisis management manual which serves to manage and limit the impacts of undesirable events on the Company.

Note: Hermès’ actions and achievements in the fields of ethics and compliance are described in chapter 2.

● Strategy and operations ● Industry

● CSR

● Regulatory compliance

● Finance

2022 UNIVERSAL REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

368