Performance review: Ethical business and safe workplaces

Dialog with Board on sustainability strategies.

• More fully integrate sustainability into business strategy.

• Board informed on strategy, priorities and approach.

• Ongoing.

Include stakeholder input in identifying sustainability priorities.

• Understand expectations and respond to different stakeholder and market concerns.
• Integrate into company decision- making processes.
• Leverage strategic partnerships with NGOs, universities, customers and suppliers to reach sustainability objectives.

• Structured dialogue with investors, employees and interested stakeholders on materiality.
• Issue-specific discussions with industry partners, organizations, unions and policy-makers.
• Participation in the development of ISO 26000, guidelines for managing social responsibility.
• Signed International Framework agreement with IF Metall, based on the Electrolux Code of Conduct.
• Partnered with US environmental organizations Algalita and 5Gyres in Vac from the Sea, an awareness-raising campaign to highlight the problem of plastic waste in the oceans
• Completed a trend report on future sustainability drivers and how they will impact business conditions.

• Develop a process for stakeholder dialog that is integrated into business strategies.
• Further develop strategic partnerships.

Our Electrolux –
Embedding a common set of values

• Integrate a common values system among all employees in a company that traditionally has been entrepreneurial and decentralized.
• Integrate Our Electrolux into the Talent Management processes including appraisal talks.
• All white collar workers complete appraisal talks.

• Launched the Employee Engagement survey to collect feedback on how the corporate culture reflects the Group’s vision and values, with a global response rate of 74%.
• 880 employees participated in 636 Executive Essentials, leadership training sessions.
• 8,000 participants in over 700 Our Electrolux workshops in 2009 and 2010. 
• The year-end objective of 12,000 employees undergoing appraisals talks was achieved.

• Employee Engagement Survey to be conducted again in 2012.
• Global Induction program will include Our Electrolux elements.
• Ongoing work with Our Electrolux and increase the number of appraisal talks based on Our Electrolux program.
• Further improve corporate culture by focusing on improving office and factory working environments.
• Further improve the quality of competence development.

Ethics and integrity –
Communicating an ethics program that includes the Code of Ethics and related policies

• Develop a program to inform all employees about policies for business ethics.
• Inform employees of policies as well as practices that help develop sound judgment on the acceptance and offering of gifts and events.

• Developed an Ethics program comprising of an internal portal, training material and an ethics helpline, operated by a third party.
• Workshops regarding guidelines on gifts and events were held for selected functions.
• Content integrated into a Group US e-learning program.

• Roll-out of the Ethics program in 12 languages and across all markets.

Ethics and integrity, safety and sustainability – Improving Code of Conduct understanding, including environmental requirements through Workplace Standard training.

• Integrate customers’ environ- mental and social requirements into Group standards.

• 9 training sessions on the Workplace Standard held in Hungary (3), Poland (3), Brazil, Mexico and Romania.

• Implement and monitor compliance according to the standard and improve performance.

Ethics and integrity – Monitoring Code of Conduct performance compliance.

• Uphold principles of the Code of Conduct, especially in regions with higher risks from human and labor rights perspectives.

• 11 (10) of 20 (21) plants in risk-defined regions were either internally, or third-party audited for Code of Conduct and environmental compliance.

• Ongoing.

Safety – Global approach to health and safety (H&S) management and behavioral change.

• Operate 25% of Group facil-ities at manufacturing industry best practice levels by 2016, with the end-goal of zero accidents company-wide.
• Be the leader in the white goods sector for safety performance.

• The global incident rate decreased by 21% while the number of workdays lost due to injuries decreased by 9%.
• Set up a global organization for OHS .
• Completed a cultural survey of 7,000 employees to gauge knowledge and engagement in safety .
• Seven external audits of facilities across markets to evaluate legal compliance to H&S.

• 2011 targets: Sites with TCIR greater than 1.0: 10% reduction. Sites with TCIR less than 1.0: 5% reduction.
• Conduct employee safety perception survey of 35,000 employees worldwide.
• A blood-borne disease program is scheduled to be launched globally in 2012.

Respect and diversity – Development of an innovative culture with diverse employees in terms of cultural backgrounds and gender.

• Create teams that better reflect consumers in the Group’s markets. Focus more on gender equality, especially among senior management teams.

• Currently 14% (15) of senior management are female.
• Supported local joint business diversity initiatives in key Group markets such as initiatives through engagement in AIESIC.

•  Ongoing.