An ethical approach to conducting business is vital to the success of Electrolux and it ensures the company’s continued societal license to operate.
Electrolux is enhancing its positive contributions and minimizing its negative impact on communities it is entering, operating in and exiting in a number of ways, including:
- Compliance to the Workplace Code of Conduct
- Mandatory ISO14001 certification
- Code of Conduct Training
- Stakeholder dialog.
See also Management approach: Labor practices.
Achievements and objectives
For 2012 achievements and future objectives in regards to areas relating to this section, see the performance reviews for People and Operations (Ethical business) and Stakeholders and society (Dialog) as well as Community.
Codes and policies
Two elements of the corporate framework address how Electrolux is to build strong relationships with key stakeholders. The Electrolux Foundation, the company’s operational values, articulates the Group’s aim to be a trusted partner and employer. The Code of Ethics formalizes the principles by which the Group conducts its relations with employees, shareholders, business partners and communities.
Contributing to society
The Group’s most significant contributions to local society are twofold:
- Economic and social development related to operations and employees; and
- Awareness raising of environmental and human rights issues and promoting behavioral change among consumers, and other stakeholders along the value chain.
The opening of new plants in emerging economies creates opportunities for Electrolux to contribute to economic, social, and environmental development. Among the benefits are jobs, opportunities for local suppliers, technology transfer and improved social and environmental standards.
The Code of Conduct and Environmental Policy underscore the Group’s commitment to realizing these benefits and maintaining high standards wherever it is active, including among suppliers. New facilities are aligned with Group practices through Code of Conduct training and monitoring procedures together with requirements for certification of plants.
Responsibilities for upholding these policies and maintaining strong relationships with local communities lie primarily with each business area and local management.
Restructuring
Whether Electrolux is setting up new operations, leapfrogging to new technologies or managing organizational change, it aims to do so responsibly, by striving to be transparent and inclusive, in dialog with those affected.
Restructuring is managed locally within each business area and operational unit, supported by the Group Human Resource function.
A decision to close a plant or downsize production affects both individuals and communities. When a factory restructuring is under evaluation, the Group recommends that every business area follow a transparent procedure in order to establish the business case for production at that location. If a decision to close or downsize has been made, the restructuring process is to shift its focus to lessen the negative impacts of the decision and ensure that the interests of employees are met. Employees may be offered assistance such as alternative jobs, pre-retirement schemes, training programs and career coaching.
See more in the performance indicators Community.
A stronger voice
Raising awareness on the importance of sustainability issues such as climate-smart living and the importance of recycling is central to the business. In addition, Electrolux supports initiatives for societal benefit through communication. Examples include causes close to the hearts of consumers, such as supporting cancer research and school initiatives. These types of engagement are the responsibility of each business area.
Supporting not-for-profits
Importantly, community initiatives and financial support for not-for-profit organizations are primarily coordinated on the local level in order to respond to, and deliver on, local needs.
Community involvement projects are therefore managed through business areas, product lines and operational units. See Community for 2012 examples of local initiatives and their outcomes.
Electrolux also demonstrates its commitment to local communities by contributing its products to worthy causes, supplying appliances to emergency relief efforts, and by matching financial contributions made by employees in times of humanitarian need.
Anticorruption
Electrolux does not tolerate bribery and corruption in any form, whether direct or indirect. This extends to all business dealings and transactions in all countries where Electrolux operates. To counter corruption, the Group’s Policy on Corruption and Bribery prohibits the offering and accepting of bribes, kickbacks or any other improper benefits. The Group applies a risk-based approach to training relating to corruption and bribery. The Policy is written particularly for, but not limited to, Group employees responsible for sales, marketing and procurement. They are also trained in of the policy. In addition, the Ethics Program includes training and information relating to this area.
Ethics at Electrolux
Responsibility for the Ethics Program lie with a steering committee, comprising on group-level, the heads of Sustainability Affairs, Corporate Communications, Legal Department, Management Assurance and Special Assignments (internal auditing) as well as Human Resources and Organizational Development, complimented by an Ethics Coordination Group.
The program includes the Ethics Helpline operated by a third party and in local languages through which employees can confidentially register incidents of non-compliance to codes and policies.
Employees are encouraged to speak to their manager, HR Department, internal audit function or another appropriate person in the organization if they wish to report an incident of potential non-compliance or, if it feels more comfortable, to use the helpline. An additional route for reporting is to contact the Electrolux Audit Committee, which can also be submitted anonymously.
More information is provided at Anticorruption and public policy.
Public policy
Each region is responsible for establishing contacts with their respective policy-makers. This dialog is carried out by authorized Electrolux employees.
As outlined in the Code of Ethics, Electrolux observes neutrality with regard to political parties and candidates. Neither the Electrolux name, nor any resources controlled by Group companies may be used to promote the interests of political parties or candidates. Awareness-raising on the Electrolux position on political involvement is part of Ethics at Electrolux training.
Antitrust and anticompetitive behavior Every employee is expected to abide by the rules of fair competition. Both the Code of Ethics and Policy on Antitrust underline the Group’s commitment to counter anti-competitive behavior. Electrolux has developed internal guidelines on antitrust that are regularly reviewed and updated. Electrolux does not allow its employees to enter into unlawful agreements and understandings that are anti-competitive or to unlawfully exchange non-public or sensitive information with customers or other third parties.
The Group applies a risk-based approach to training relating to antitrust. The Antitrust Policy is written particularly for, but not limited to, employees responsible for sales, marketing and procurement. The policy and its supporting guidelines are implemented by way of special training for targeted employee groups. In addition, the Ethics Program, which is being rolled out among all employees, includes training and information relating to this area.