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66 About Strategy and Governance Our People Our Business Our Outcome AppendixResponsible Marketing PracticesCommitted to Responsible Advertising Our main business involves marketing and distributing products sourced from manufacturers. Many of these products are imported and require local customization before they are fit for sale. We also engage in significant marketing, advertising, and sizable relabeling activities under our brand. As public awareness grows and new policy initiatives addressing transparency increase the demand for accurate and complete product information, this topic is highly relevant to DKSH%u2019s business model and brand reputation.The marketing of our products can pose inherent risks without proper management or relevant and necessary product information. There is always a risk that marketing promises, incomplete product information, and labeling may prevent consumers from making informed decisions. At DKSH, we want to avoid this potential negative impact on consumers, so we have made responsible marketing a key practice. Adapting and customizing products to meet regulatory requirements, including product labeling, is an important DKSH service offering. Our regulatory affairs teams in the various Business Units are responsible for establishing standard operating procedures and for monitoring compliance with assistance from our quality assurance teams. Our Business Unit Healthcare, which faces especially stringent regulations, performs customization work in accordance with Good Manufacturing Practice (GMP). Our Business Unit Performance Materials implements and audits against the strict requirements for classification, labeling, and packaging of the Globally Harmonized System (GHS). When marketing our Own Brand products, our Regulatory Affairs teams ensure we adhere to applicable laws. We observe guidelines on responsible marketing published by the relevant industry bodies for all products distributed by our Business Units Consumer Goods and Healthcare. Policies, procedures, and controls are in place and are supported by training activities to ensure that the marketing of our products meets our standards and expectations. All our regulatory affairs specialists have the professional training and qualifications needed to perform their work in accordance with applicable regulations and internal standards. DKSH carefully monitors and validates relevant product data from clients on an ongoing basis and takes corrective actions where appropriate. The relevant Business Unit addresses any complaints about marketing and labeling.In 2023, DKSH recorded two incidents of non-compliance with regulations on product and service information and labeling. One incident resulted in a warning, the other in a penalty. DKSH recorded no incidents of non-compliance with regulations concerning marketing communications. %u2023 GRI 417-2, GRI 417-3Industry-Specific Marketing in the Healthcare Business In many jurisdictions, advertising and promoting healthcare products are highly regulated, often limited, or even prohibited. Many products are prescribed or dispensed by healthcare professionals or require professional expertise for their application. Various segments within the healthcare industry (specifically for prescription drugs and medical devices) and in the food sector (e.g. infant nutrition) have adopted codes of ethics advocating responsible marketing of their products. DKSH adheres to these standards through membership of the respective industry associations (e.g. local associations of the International Federation of Pharmaceutical Manufacturers and Associations [IEPMA], or the Asia Pacific Medical Technology Association [APACMed]) and by operating management programs to ensure compliance by employees and service providers. Preventing Anti-Competitive BehaviorOur Code of Conduct stipulates that DKSH does business using fair market practices and in full compliance with applicable competition/antitrust laws. All DKSH employees have to attend annual training on the Code of Conduct.In addition to the Code of Conduct, we have a Policy on Fair Competition whose guidelines are based on European Competition law and explain the basic provisions of antitrust and competition laws. This Policy must be strictly complied with whenever we interact with competitors. It is designed to improve managers%u2019 and employees%u2019 awareness of the basic rules of competition law and their implications for business decisions. Moreover, DKSH%u2019s Contract Manual sets out guidelines that need to be followed to avoid anti-competitive risks. For instance, the Contract Manual states that if a contract with suppliers and manufacturers where DKSH is purchasing and reselling the suppliers%u2019 or manufacturers%u2019 products is exclusive, it must be ensured that either party does not have an actual market share of more than 30 % in the relevant market to avoid a breach of applicable competition laws. The Contract Manual also strictly prohibits resale price maintenance and contains directions to avoid non-compete clauses.