Non-discrimination
Internally, all unit heads have received human rights awareness-raising information, including issues such as non-discrimination as part of the ALFA Code of Conduct assessment.
The Ethics Program also underlines the Group’s non-tolerance position on discrimination. The second wave of the program delivery is complete in seven European countries and it will be extended to every employee across the company by 2014.
As the Ethics Program rolls out, all cases of discrimination declared via the Ethics Helpline are investigated. Corrective action on confirmed incidents of misconduct includes various ways of reinforcing greater awareness of the Group’s policy, such as retraining. For more information on types of reports of potential misconduct and remedial action, see Anticorruption and public policy.
Mapping risks
Annually, Electrolux tracks areas that pose challenges to upholding high standards in human rights such as protecting freedom of association, the abolition of child labor and forced and compulsory labor. Also in 2012, Electrolux conducted a Human Rights risk assessment (see below) to enable a better assessment of risk areas.
The Group maps its operations and those of its suppliers against geographical areas considered sensitive by external sources because of their weak legislation or poor enforcement of existing laws. Sources for these evaluations include Maplecroft.
Countries of operations are gauged against seven elements of human rights: Civil and political rights, child labor, forced labor, discrimination, freedom of association, working conditions and corruption.
High-risk regions with Electrolux manufacturing facilities are:
- Argentina
- Brazil
- China
- Egypt
- Mexico
- Romania
- Thailand
- Ukraine
See also the enclosed Map: Electrolux factories worldwide.
A facility’s risk classification is adjusted depending on its past performance, taking into account additional information such as number of employees, types of activities, ethics helpline records and customer requests.
The scope of the internal Code of Conduct audit (see graph) is defined according to the outcomes of this preliminary risk assessment. The audit identifies non-compliances and corrective actions are taken as a result.
Similarly, supplier audits focus on high- and medium-risk suppliers and address non-compliance through mandatory corrective actions as well as support activities such as training.
Internal Code of Conduct Audit findings
Electrolux conducted 18 (14) internal Code of Conduct audits by combined teams of Electrolux representatives and third party auditors in Mexico, Egypt, Chile, China, Romania, Poland, Ukraine, Argentina and Thailand. In 2013 audits will include Brazil and re-audits in Chile, Argentina and Egypt.
Audits in newly acquired operations are the key factor behind the higher-than-usual non-compliances in this year’s compilation of performance. Health and safety are among the most prevalent findings, due primarily to the high number of control points within this category. This was followed by non-compliances relating to environment and working hours. Work is ongoing to address all of these non-compliances. For more information on ALFA Code of Conduct assessments, see Management approach: Labor practices.
Freedom of association
In those regions where worker associations are not possible due to national praxis, each unit and its suppliers are expected to find appropriate and legal mechanisms through which workers can effectively express workplace concerns to management.
Records are to be kept from these formalized consultations and be made available upon request. See also Management approach: Labor practices.
Employee representatives of the Electrolux board visited Thailand during 2012 to better understand relevant labor issues, educate Thai union representatives and share best practice. These forms of exchange take place on a regular basis. This was prior to the illegal strike that occurred in Thailand in 2013. For more information on the Group’s response to the latter incident, see Regarding Electrolux labor relations in Thailand.
Under-aged workers in the supply chain
Electrolux uncovered five (8) cases of under-age workers (below 15 years) in its supply chain. The Group’s supplier audits reveal that issues relating to under-age labor are less prevalent than previous years. This is primarily a problem in Asia/Pacific. The majority of cases recorded relate to insufficient protection of authorized minors (16-18 years). In dealing with under-aged workers, Electrolux puts the welfare of the child first, as described in Management approach: Human rights.
Forced and compulsory labor
Electrolux complies fully with California’s Transparency in Supply Chains Act and ensures that it is non-complicit in infringements in forced and bonded labor within its sphere of influence. For more information on the Group’s approach to managing issues of forced labor in the supply chain, see Management approach: Human rights.
Security practices and indigenous rights
As stipulated in the Workplace Standard, the purpose of security guards is to ensure the safety of employees and protect the premises, not to stop employees from leaving the workplace.
Electrolux does not report on indigenous rights as these are not deemed to be among the most material issues to the company on the basis of the GRI Reporting Principles and according to Human Rights assessments conducted of its operations.
Assessment and remediation
During 2012, a corporate human rights risk assessment was conducted to identify key human rights risks and impacts. The assessment was conducted according to the UN Guiding Principles on Business and Human Rights.
This assessment is intended to be the basis for the Group’s policy process review, awareness and education, as well as local assessments of operations in high-risk countries. Continuous human rights management will build on practices already in place, such as ALFA, Code of Conduct audits and the sustainability reporting process.
Key findings of the 2012 corporate assessment included a need to strengthen policies and processes in labor areas such as compensation, security arrangements, conflict minerals and second tier suppliers. The report also emphasized the need for further assessments as well as internal awareness activities.