Strong Governance & Ethics
Our Board, High Standards & Responsible Supply Chains
Maintaining high standards by which we conduct our business is vital to our success. Our values – aligned, agile, accountable, and action – are essential to our culture and contribute to the ways that we responsibly conduct our business.
Our Board of Directors is committed to maintaining a strong corporate governance program designed to promote the long-term interests of our stockholders, strengthen Board and management accountability and drive long-term success of Fortune Brands Innovations. All members of the Board, other than CEO Nicholas Fink, are independent under the New York Stock Exchange rules.
Board Composition
As of May 16, 2023, immediately following the Company’s annual shareholder meeting:
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The Board has undergone continuous refreshment over the last several years, adding five new, diverse members since 2019 as part of its succession planning process and to broaden its perspectives and skills to enhance its performance. Our Board’s succession planning process has helped expand the expertise and experience of our Board, enhanced diversity and demonstrated our commitment to Board refreshment while maintaining the continuity brought by members with longer tenure.
Learn more about our Board members, and Governance Principles and Oversight.
Nominating, Environmental, Social and Governance (NESG) Committee
Our commitment to sustainability, social responsibility and inclusion efforts reaches the highest levels of our organization. The Board’s Nominating, Environmental, Social and Governance (NESG) Committee maintains oversight of Fortune Brands’ ESG programs and related risks. We believe that Board oversight provides appropriate emphasis on reviewing ESG in a strategic, holistic manner, and underscores the Company’s commitment to meaningful ESG activities and disclosures.
We hold ourselves, our contractors and our suppliers to high standards. Conducting business ethically, responsibly and sustainably is how we generate economic value.
Ethical Conduct for Associates
The Board has adopted a common set of standards to ensure that the way we conduct our business is aligned with our values across our organization.
The Code of Business Conduct and Ethics applies to every Fortune Brands associate, at every level and in every location, as well as the members of our Board of Directors.
The Board has also adopted a Code of Ethics for Senior Financial Officers, a set of standards applicable to the Board, the CEO, CFO and principal accounting officer to ensure accuracy of our financial reporting.
Our Compliance Committee, which includes Fortune Brands’ Chief Financial Officer, Chief Legal Counsel and other senior members of management, oversees compliance with our Code of Business Conduct and Ethics, which includes our anti-corruption and U.S. Foreign Corrupt Practices Act policies. This Compliance Committee reports to the Board of Directors annually regarding these programs, compliance and associate training.
Compliance Training
Our compliance training program includes online and in-person trainings, new hire onboarding, and special events to educate associates on the importance of understanding company policies, all applicable laws affecting our business, and how to comply with these policies and laws. The following topics are included in our compliance program:
- Harassment-free workplaces
- Handling material information appropriately to avoid insider trading
- Avoiding conflicts of interest
- Appropriate use of technology
- Transparent and accurate financial reporting
- Antitrust considerations
- Anti-bribery, and how to work responsibly with third parties
- Safety and environmental trainings
Compliance Helpline
Our associates are trained to seek out guidance if they become involved in or aware of a situation that involves possible wrong-doing or ethical misconduct. They are trained to understand the importance of bringing those concerns to their manager, a human resources representative, or the Fortune Brands legal department or Compliance Committee.
Associates can also relate concerns through the company’s confidential Compliance Helpline, operated by a third party.
Information on how to access the helpline is available on our website and www.FBINcompliance.com, as well as internal communications channels, such as our intranet site and associate app.
Fortune Brands investigates any reports of ethical violation and follows a strict “no retaliation” policy for reports made in good faith. Concerns brought forward through the Compliance Helpline, and when needed, the steps taken to address concerns, are reported to the Audit Committee on a quarterly basis.
Suppliers who feel that the Supplier Code of Conduct is not being supported may also report concerns through the Compliance Helpline or website.
Policy Against Political Contributions
Fortune Brands has never used corporate funds or assets to participate or intervene in any campaign of a candidate for public office, or to influence any political election or referendum. We continue to follow our policy against political contributions.
Human Rights Policy
We’ve always held high human rights standards for our associates and our suppliers. View our Human Rights Policy.
Fortune Brands Innovations qualifies potential suppliers on the basis of several factors, including quality, reliability and global citizenship. Our risk-ranking methods and complementary audit process allow us to focus our time and resources on supplier partnerships that adhere to the same strict standards we set for ourselves. Across our organization, our internal management system processes support the International Standards Organization (ISO) and the Occupational Health and Safety Assessment Series (OHSAS) certifications. For supply chain partnerships in developing countries, Fortune Brands provides support to help our business units evaluate a new opportunity or existing partnership.
Our supply chain is a critical element in meeting our commitment to responsible business. We expect all suppliers and contractors to comply with our strict standards for the respect of human rights, workplace safety and protection of the environment in the work they perform and the services they provide, in accordance with our Supplier Code of Conduct.