Annual Report 2013


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.

Shifting expectations

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.”


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