Alignment of Interests
At our founding in 1976, we created a new business model built around a core philosophy: people can accomplish great things when they work together and their interests are aligned. Our approach was to build, improve, and revive companies by aligning the interests of those who fund them, manage them, and work at them. This is the core of KKR and it remains our approach today.
While our firm has evolved over the past 33 years, we have grown by staying true to our core philosophy. We have a responsibility to ensure that our portfolio companies operate in a way that aligns the interests of stakeholders such as: employees, customers and investors. Our definition of stakeholders extends broadly and includes a commitment to the communities in which our businesses operate, and efforts to enhance environmental stewardship in the companies in which we invest. It also includes a responsibility for ensuring that those businesses operate according to the highest legal and ethical standards.
Responsible Investment Code
Working with the Private Equity Council, a trade group representing 13 of the largest private equity firms, we helped craft and, in 2009, adopted a series of guidelines that incorporate environmental, social, and governance issues into investment decision-making decisions and ownership activities. KKR is also a signatory of the United Nations Principles for Responsible Investment (UNPRI).
- Consider environmental, public health, safety, and social issues associated with target companies when evaluating whether to invest in a particular company or entity, as well as during the period of ownership.
- Seek to be accessible to, and engage with, relevant stakeholders either directly or through representatives of portfolio companies, as appropriate.
- Seek to grow and improve the companies in which they invest for long-term sustainability and to benefit multiple stakeholders, including on environmental, social and governance issues. To that end, Private Equity Council members will work through appropriate governance structures (e.g. board of directors) with portfolio companies with respect to environmental, public health, safety, and social issues, with the goal of improving performance and minimizing adverse impacts in these areas.
- Seek to use governance structures that provide appropriate levels of oversight in the areas of audit, risk management and potential conflicts of interest and to implement compensation and other policies that align the interests of owners and management.
- Remain committed to compliance with applicable national, state, and local labor laws in the countries in which they invest; support the payment of competitive wages and benefits to employees; provide a safe and healthy workplace in conformance with national and local law; and, consistent with applicable law, will respect the rights of employees to decide whether or not to join a union and engage in collective bargaining.
- Maintain strict policies that prohibit bribery and other improper payments to public officials consistent with the U.S. Foreign Corrupt Practices Act, similar laws in other countries, and the OECD Anti-Bribery Convention.
- Respect the human rights of those affected by their investment activities and seek to confirm that their investments do not flow to companies that utilize child or forced labor or maintain discriminatory policies.
- Provide timely information to their limited partners on the matters addressed herein, and work to foster transparency about their activities.
- Encourage their portfolio companies to advance these same principles in a way which is consistent with their fiduciary duties.
Learn more about our commitment to stakeholders.
Learn more about KKR and environmental responsibility.
“ Managing environmental, social and governance issues - including relationships with key stakeholders - is an increasingly important part of the value proposition of private equity. Signing the PRI and joining our network demonstrates KKR's leadership in this area, and is another sign that KKR recognizes the importance of responsible investing. We look forward to working with KKR on practical implementation and hope we can do so in a way that will encourage other firms to follow.”
James Gifford
PRI Executive Director, February 19, 2009



