Strong Governance & Ethics
Our Board, High Standards & Responsible Supply Chains
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.
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 7, 2024, immediately following the Company’s annual shareholder meeting:
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Since 2019, the Board has undergone continuous refreshment, adding six new members as part of its succession planning process. The majority of directors appointed during this time demonstrates the Board’s commitment to increasing diversity. 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.
The Board has an active role in overseeing the Company’s strategy and processes for managing risk. The Board’s committees oversee and monitor specific risks and management’s efforts to mitigate such risks, further promoting accountability at the highest level of our organization.
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. View the Board’s NESG Charter.
Audit Committee
The Board’s Audit Committee maintains oversight of Fortune Brands’ financial and operational risks, as well as our enterprise risk management program, which includes monitoring cybersecurity and climate-related risks. View the Board’s Audit Charter.
Conducting business ethically, responsibly and sustainably is one way that we generate economic value. We hold our contractors and our suppliers to the same high standards.
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 Corporate Compliance Committee, which includes Fortune Brands’ Chief Financial Officer, Chief Legal Counsel and other senior members of management, oversees compliance with our compliance program. The Corporate Compliance Committee reports to the Board of Directors annually.
Compliance Program
We have a comprehensive compliance program that educates associates on the importance of understanding Company policies, applicable laws affecting our businesses, and how to comply with these policies and laws. Elements of our program include:
- Online and in-person trainings in the U.S. and our international locations, with certain trainings conducted in the local language to help increase understanding. In 2023, our associates completed training sessions on a variety of topics covered by our corporate compliance program, including:
- Anti-Discrimination
- Anti-Trust
- Code of Conduct
- Confidentiality
- Conflicts of Interest
- Cybersecurity
- Dignity and Respect in the Global Workplace
- FCPA (anti-bribery)
- HIPAA Privacy and Security
- Reporting Fraud
- Safety Compliance
- Sexual Harassment
- Workplace Violence
- A Compliance Helpline for anonymous reports of fraudulent activity, which is well-publicized across the Company and results are reviewed with the Audit Committee.
- Third-party audits of many of our vendors. Learn more below in the Supply Chain section.
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.
Our supply chain is a critical element in meeting our commitment to responsible business. Fortune Brands Innovations qualifies potential suppliers on the basis of several factors, including quality, reliability, labor standards, health and safety, environment, and business ethics.
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 Human Rights Policy and our Supplier Code of Conduct.
Our internal management system processes are intended to support the International Standards Organization (ISO) and the Occupational Health and Safety Assessment Series (OHSAS) standards. Fortune Brands is also an Supplier Ethical Data Exchange (SEDEX) member and user of SEDEX Members Ethical Trade Audit (SMETA), and in 2023, we launched a pilot program to conduct audits through SEDEX.