Management approach: Human rights

Work with human rights is designed to protect the inherent dignity of every individual, regardless of his or her culture or background. These rights are by their nature universal, as set out in the United Nations Declaration of Human Rights (UNDHR). As members of society, Electrolux also recognizes its responsibility to contribute to the promotion and protection of human rights along its value chain.

Human rights encompass areas such as eliminating under-age labor, non-discrimination, non-tolerance of harassment and freedom of association. It is integrated into business practices through the Workplace Code of Conduct and upholding human rights is deemed the responsibility of every employee.

The Electrolux Workplace Standard specifies how suppliers and Group operations are to maintain high standards as described in the Workplace Code of Conduct. It includes required practices to ensure compliance and human rights-related training is incorporated into its training curriculum.

Compliance to the Code is monitored on a yearly basis through ALFA and Electrolux-own and third party audits at selected locations, primarily chosen through a risk-based analysis. The Code is implemented in the supply chain through the Responsible Sourcing Program.

The Ethics Helpline, to be rolled out Group-wide in 2011 as part of the Ethics at Electrolux program, will enable reports of non-compliances regarding human rights that are both confidential and anonymous. According to the Group’s policy statement, employees who violate a Group policy may be subject to disciplinary action, up to and including dismissal, depending on the facts and circumstances.

For 2010 achievements and future objectives, see the performance overviews for Ethical Business and Safe Workplaces for Group operations and Responsible Sourcing for work with suppliers.

Investment and procurement practices

Instilling high standards among suppliers is the joint responsibility of Group Purchasing and Sustainability Affairs through the Responsible Sourcing Program, an independent audit function. The objective of the Responsible Sourcing Program is four-fold; create long-term, sustainable improvement among suppliers; assure compliance to customers’ standards; reduce risks to the Electrolux brand and reputation; and reduce the risk of serious non-compliances that could lead to disruption in product deliveries. Electrolux Sustainability auditors are in place in Asia/Pacific, Eastern Europe and Latin America.

Electrolux places sharp focus on monitoring performance and compliance for suppliers classified as high- or medium-risk through risk mapping, and on particular commodities, like battery manufacturers, with high-risk operations.

Ultimate responsibility for compliance with the Workplace Code of Conduct along the supply chain lies with Group Purchasing. This management approach ensures that quality and cost are achieved, but not at the expense of high labor and environmental standards.

Non-discrimination

As in accordance with the Code of Ethics and Workplace Code of Conduct, Electrolux does not discriminate based on personal characteristics or beliefs such as, for example, age, race, ethnic group, religion, gender, political opinion, marital status, maternal/ paternal status or national or social origin. All Group and supplier employees are to be treated strictly according to his or her abilities and qualifications in any employment decision.

Moreover, Electrolux does not tolerate harassment in any form, including physical, sexual, psychological or verbal harassment or abuse. This can take the form of written and verbal remarks, gossip, jokes and banter, defamatory or offensive language and comments or bullying in which people in authority abuse their position through insulting, intimidating or malicious behavior.

Abolition of child labor

Child labor is still common in some parts of the world, particularly in developing countries with high rates of family poverty and low law-enforcement levels. Electrolux strictly prohibits the use of child labor and forced labor. The company adheres to accepted international laws and practices as set out by the UNDHR, and the United Nations Global Compact. The company also expects suppliers to commit to these same high standards.

As in accordance with the ILO Minimum Age Convention, suppliers and local management are responsible for providing working conditions, working hours and wages that are appropriate for the authorized minors’ age. They must also be in compliance with applicable local law as a minimum.

If a case of child labor is discovered in Group operations or those of suppliers, the focus is on the welfare of the child, which may include providing the child with access to schooling and job training and paying an ongoing wage.

Prevention of forced and compulsory labor

As in accordance with the ILO Convention on the abolition of forced labor, forced or involuntary labor is not tolerated in any form. During Code of Conduct audits, Electrolux makes sure that all employees are covered by an employment contract, and workers are interviewed regarding their working conditions. The audits also check that overtime hours have been done voluntarily. In the case of apprentice programs, students are also audited to ensure that they are there voluntarily and provided proper comepensation.

Security practices

Stipulated in the Workplace Standard, the purpose of security guards is to ensure the safety of employees and protect the premises; not to stop employees from leaving the workplace.

Indigenous Rights

Electrolux does not report on indigenous rights as it is deemed not to be among the most material issues to the company on the basis of the GRI Reporting Principles and according to Human Rights assessments conducted of its operations.