Governance

Our lasting commitment to the highest standards of ethics and governance is the first step in living up to a greater purpose.

For more than a century Parker has maintained a culture where every team member is responsible and accountable for upholding our values and for conducting business with honesty, integrity and respect. We build strong, trusted partnerships with its stakeholders around the world and within the communities the company calls home.

Parker's Global Code of Business
Policy on Contracting with U.S. Government
Distributor Code of Conduct
Distributor Code of Conduct FAQ

Parker’s Board is composed of 13 Directors and works under a highly effective dual leadership structure with a Chairman and Lead Independent Director. All Board committee members and 11 of the 13 Directors are “independent” based on the New York Stock Exchange listing standards and Parker’s internal independence standards. Board members are required to stand for election annually by a majority vote standard, subject to annual performance reviews and restricted from serving on an excessive number of boards.

The Board is guided by Parker’s Global Code of Business Conduct, Corporate Governance Guidelines, Independence Standards for Directors and Charters for each Board committee, which are available on our Investors site.

We are committed to Board inclusion and diversity, ensuring the skills and experiences of Directors align with our culture and values, support our long-term strategy and drive shareholder value creation. The Corporate Governance and Nominating Committee of the Board has a robust process for Board recruitment, succession and refreshment, which is focused on culture and values, diversity, and skills and qualifications.

Our Corporate Governance Guidelines require each director search to include individuals of diverse backgrounds, including diversity of gender, ethnicity and race. Three new Directors were elected in fiscal year 2021, increasing both the racial and gender diversity on our Board. Today, women make up 31% of the Board and 46% of Directors are diverse based on gender (4) or race (2). The mandatory retirement age for Directors is 72 years and the average tenure of our directors is currently 7.7 years.

Our Global Code of Business Conduct defines how integrity, ethics, respect and fairness are practiced throughout our business. The Code is designed to ensure that our team members, consultants, independent contractors, suppliers, agents, representatives and our Board of Directors are held to a standard that exceeds legal and regulatory requirements. It is translated into 23 languages and made available to team members worldwide, covering a broad range of topics including discrimination, harassment, conflicts of interest, insider trading, corruption, confidentiality and fair competition. It incorporates many Parker policies, including, among others, our anti-bribery, antitrust and human rights policies. Parker conducts annual training on our Global Code of Business Conduct for all team members and the Board of Directors, requiring certification that each has read and will abide by the principles of the Code.

Additional training on compliance matters is provided to leaders at the corporate, regional and local levels. Our global network of Compliance Officers helps reinforce ethical conduct and compliance with applicable laws and regulations, including environmental matters. Throughout the year, compliance is also kept at the forefront with quarterly messages, printed brochures, newsletters and videos to create a culture of ethics and integrity.

Our “Speak Up” program urges any team member who observes conduct that is not aligned with Parker’s policies, applicable laws or regulations to raise their concern with local leadership, the Corporate Compliance Office or through Parker’s secure, 24-hour Integrity Line, which is staffed by representatives fluent in multiple languages. Team members have the option of remaining anonymous where permitted by law, and Parker has strict policies against retaliation. All potential violations of our Global Code of Business Conduct or other company policies are investigated, and appropriate action is taken on the findings. The Audit Committee of our Board of Directors receives quarterly updates on compliance training, Integrity Line calls and investigation statistics.

Parker’s commitment to integrity, ethics and compliance extends externally to our business partners, who are expected to collaborate with our team members in a way that upholds Parker’s Values. Our Distributor Code of Conduct sets expectations and minimum requirements for compliance systems. Suppliers, who play an important role in our ability to meet customer needs, are required to meet all applicable specifications, environmental regulations and quality management requirements according to our Supplier Code of Conduct.