Strengthening the chain in Egypt
Throughout the wave of political instability that swept Egypt in 2013, business had an important role to play in providing stable working environments and jobs. As part of the Group’s commitment to operations in Egypt, Electrolux is raising awareness upstream of the value of high environmental, labor and human rights standards.
Forty representatives from 26 suppliers attended Code of Conduct (CoC) supplier training in Cairo during the year, showcasing the Group’s sustainability strategy and the trends affecting the industry. It was an opportunity to build supplier understanding of the importance of maintaining high standards in environment and human rights and outlining alignment of each chapter of the CoC with Egyptian labor law.
Electrolux in Egypt is an important customer for over fifty major suppliers, and willingness to meet expectations is high. Particular areas of attention for audits are the degree to which suppliers are meeting Group expectations regarding environmental standards and working hours, where Electrolux requirements exceed local minimum legal standards. The existence of migrant workers also requires particular attention be paid to work permits, contract issues and language barriers. The current political situation poses challenges for obtaining needed permits and licenses.
Greater emphasis on human rights is demonstrated by fewer findings relating to harassment and discrimination. Improvements in safety standards are also visible. At the same time, findings underlined the importance of training and continual follow-ups to ensure that audits result in lasting change.
Clear rules, close relationships
As well as raising standards, our approach is building stronger relationships with suppliers. Abd Elhamid, which supplies wire shelves for refrigerators for the Middle East and European markets, has had a business relationship with Olympic for over 20 years. As Omar H Elbanna, General Manager in charge of maintenance and quality for Abd Elhamid, sums up: “The Electrolux approach is a new one for us, but meeting these expectations was a positive experience. It enhanced working conditions, and raised the level of quality of our operations. It provided clarity on rules of Conduct. They helped us have a conversation about the issues with our workers: they now have greater clarity on what they can do and what is required.”StopSearchHere
In 2013 we continued to deliver above our growth target and delivered 4.5% in organic sales growth.
I'm convinced that raising product efficiency for the growing middle class is where long-term shareholder value creation lies.
Electrolux is the only appliance manufacturer in the industry to offer complete solutions for both consumers and professionals. The focus is on innovative and energy-efficient products in the premium segments.
Achieving the Group's vision of sustainability leadership is crucial to realizing the business strategy. The objective is to develop smarter, more accessible, resource-efficient solutions that meet people's needs and improve their lives. Read the comprehensive sustainability performance review.
Awards & recognition
Net sales for the Electrolux Group in 2013 amounted to SEK 109,151m, as against SEK 109,994m in the previous year. The organic sales growth was 4.5%, while currencies had an impact of -5.3%.