MANAGEMENT APPROACH
Through a corporate human rights impact assessment and other measures to better understand its role in society, Electrolux has procedures in place that help ensure that the Group enhances its contributions and minimizes its negative impacts when entering, operating in and exiting communities.
With a growing presence throughout the world, it is important to have a rigorous way of understanding and addressing the company’s role in society and its impacts on the local community. For Electrolux, stakeholder dialog, the Ethics Program, Global ISO audits and Code of Conduct all contribute to building trust in Electrolux as a responsible member of the local community and broader society. These actions are detailed further in Management approach: Labor practices.
For 2014 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.
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 and reinforces the company’s expectations on employees to do the same. The Code of Ethics formalizes the principles by which the Group conducts its relations with employees, shareholders, business partners and communities.
The Group’s two most significant contributions to society are:
Growth in emerging economies creates opportunities for Electrolux to contribute to economic, social, and environmental development. Among the benefits are jobs, opportunities for local suppliers and technology transfer as well as high social and environmental standards.
The Code of Conduct (CoC) 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 CoC 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 sector and local management.
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.
Under the guidelines of the global industrial relations strategy, restructuring is managed locally within each business area and operational unit, supported by the Group Human Resource function. A network of human resource managers representing Operations for the four Major Appliance sectors meet bi-weekly to exchange ideas. The balance between the global and local is important, as decisions made on the local level have the potential to influence perception of the company on the global level. At the same time, Electrolux is a multi-cultural company, and Electrolux prioritizes systems to capture local priorities.
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 by developing a social plan. Employees may be offered assistance such as alternative jobs, pre-retirement schemes, training programs and career coaching.
Raising awareness on sustainability issues such as climate-smart living and recycling is an integral part of sustainability leadership, demonstrated through our Green Range marketing, and the Next Black documentary.
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 and sector priorities.
Community involvement projects are therefore managed through business sectors, product lines and operational units. See Supporting initiatives /Social investment (link) for examples of community investment and their outcomes.
Electrolux also demonstrates its commitment to local communities by donating products to selected causes, supplying appliances to emergency relief efforts and by matching financial contributions made by employees in times of humanitarian need.
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. Additionally, expectations around anti-bribery and corruption have been included in the updated Electrolux Conduct of Conduct to be rolled out in 2015.
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 the policy. In addition, the Ethics Program includes training and information relating to this area for all employees.
Accountability for the Ethics Program lies with the Ethics Steering Group, comprising on Group level, the heads of Sustainability Affairs, Corporate Communications, Legal Department, the internal audit function Management Assurance and Special Assignments (MASA) as well as Human Resources and Organizational Development, and complemented by the Ethics Coordination Group.
It is important to create a company culture that encourages its employees to discuss and report on ethics issues. The program therefore includes Ethics training and the Ethics operated by a third party. Through the Helpline, which is confidential and operated in local languages, employees can report suspected incidents of non-compliance to codes and policies.
Employees are encouraged to speak to their manager, HR Department, the Management Assurance and Special Assignments (MASA) team 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. Anti-corruption and public policy outlines 2014 outcomes of the Helpline.
Each region is responsible for establishing contacts with their respective policy-makers. This dialog is carried out by authorized Electrolux employees. In 2014 Electrolux started to put in place a Global policy group to foster greater coordination of public policy issues.
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 political parties or candidates. Awareness-raising on the Electrolux position on political involvement is part of Ethics at Electrolux training.
Employees of the European Affairs department are members of the Society of European Affairs Practioners (SEAP). They have signed its Code of Conduct and taken part in its training program.
Every employee is expected to abide by the Policy regarding 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 anti-trust 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 anti-trust. 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 has been rolled out among all employees, includes training and information relating to this area.