We have a number of follow-up mechanisms that allow us to monitor how our organization and our suppliers abide by our Code of Conduct. They are used differently depending on the level of risk.
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Purpose |
Criteria |
Findings 2017 |
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ALFA (Awareness-Learning- Feedback-Assessments)
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A self-assessment questionnaire filled out by line managers, to: Check the extent units comply with the Code of Conduct. Regularly remind line managers what is expected of them.
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Annually for manufacturing units, based on key elements of the Workplace Standard.
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Response rate: All manufacturing sites which were operational by end-2017 responded to ALFA. See the results here: ALFA assessments of the Code of Conduct
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Code of Conduct audits
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Identify improvement areas and ensure Code of Conduct compliance.
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Internal audits of selected manufacturing units, following risk assessments based on the Workplace Standard.
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Conducted 8 audits in China, Chile, Brazil and Mexico in 2017 – including 9 (9) of 23 (22) high-risk facilities. Identified health and safety, working hours, environment and compensation as having the greatest number of non-compliances. Local corrective action plans are addressing the issues found.
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The Ethics Helpline
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A whistle-blowing service that enables employee bottom-up monitoring. Allows employees to remain anonymous (to the extent permitted under local law), without fear of exposure or retaliation.
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Third-party operated. Covers breaches of ethics-related policies such as the Code of Conduct and Bribery policy. It covers 99% of our employees.
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The highest number of reports related to discrimination and harassment, such as the use of abusive language or disrespectful behavior. See graph: Helpline Cases
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Internal audits
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Provide independent assurance. Evaluate the effectiveness of risk management, control, and governance processes by conducting operational, financial, and compliance process audits and investigations of alleged employee fraud.
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Risk-based annual plan approved by the Audit Committee; ad hoc investigations of reported fraud allegations.
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Reported to Group Management and Audit Committee.
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Employee Engagement Survey (EES)
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Assesses engagement, leadership, organizational capabilities and commitment to our strategy and purpose. Enables comparison with other high-performing organizations.
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Annual and Group-wide, among employees in offices and manufacturing.
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The last survey was conducted in 2016, with a response rate of 93%. Electrolux achieved a record 67% participation (our engagement plus index). The results of the survey were used to improve our operations. The next survey is planned for March 2018.
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Global audits of ISO standards for environment and safety
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External audits. Every business area must have an environmental management system at all manufacturing sites. |
Annual audits of all manufacturing facilities, with recertification audits every third year. OHSAS health and safety also included for select sites. All manufacturing units with over 50 employees must be certified to ISO 14001, and newly acquired units must be certified within three years of joining the Group.
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ISO 14001 audits conducted by 91% of eligible manufacturing units. The majority of the findings relate to inadequate operational control, and on-site emergency preparedness.
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The sustainability KPI survey
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An annual assessment to track operational environmental management and compliance in the areas of materials, waste and chemicals, and employee turnover. Forms the basis of our reporting for GRI indicators.
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In 2017, 48 (49) manufacturing sites, 35 (34) warehouses and 27 (28) offices. |
N/A
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Green Spirit certification and reporting system
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Focuses on environmental performance improvement and employee engagement. The system monitors energy and water consumption among our facilities. Best practice is shared. Monitors performance against defined energy and water targets.
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All manufacturing sites are evaluated annually as part of the certification, and are awarded stars according to their energy management performance.
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Certification process completed during 2017.
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Safety Management System (SMS)
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Factory self-assessment protocol to assess how manufacturing units meet internal safety standards.
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Conducted annually among all Global Industrial Operations.
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In 2017, all manufacturing units within Global Industrial Operations underwent an SMS assessment by the OHS Global team in addition to self- assessments.
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Responsible sourcing audits
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Assessment of how suppliers meet Code of Conduct and Workplace Standard expectations.
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Auditing of medium to high-risk direct material (raw materials, parts and sub-assemblies) suppliers. Audited suppliers are categorized and ranked on performance. Categorization criteria include: disqualified (zero tolerance findings), conditional (more than two critical findings), active (only non-critical findings) and preferred suppliers (only minor findings).
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Carried out 387 (471) supplier audits, mainly in China, Mexico, Brazil and Thailand. Key non-compliance areas for suppliers include health and safety, environment and working hours. Code of Conduct non- compliance is addressed through mandatory corrective action as well as ‘beyond compliance’ support activities such as training and capacity building. See table for findings.
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External verification of sustainability reporting
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To enhance reporting credibility and reporting practices.
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The Sustainability Report (as referenced in the GRI index) is reviewed in accordance with ISAE3000. |
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GEARS |
Collect and compile health and safety data |
Monthly reporting for all factories and warehouses |
GEARS management tool for health and safety program extended to all Electrolux operations.
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