A sustainable approach starts at home, with safe workplaces, mutual respect and common values. Our Electrolux, the corporate-wide vision and values program, helps the Group realize this approach and is comprised of both principles of conduct and core values.
The principles of conduct (ethics, integrity, respect, diversity, safety and sustainability) affirm the Group’s corporate culture and commitment to sound and universal ethical business practices. They also support the core values: ‘drive for results’, ‘customer obsession’ and ‘passion for innovation’.
Electrolux aligns its management of labor and human rights with its principles of conduct through Group codes and policies, including the Electrolux Code of Ethics, the Workplace Code of Conduct and procedures such as the Workplace Standard, both internally and along the supply chain. ALFA (Awareness-Learning-Feedback-Assessment) is the Group's annual questionaire to assess internal compliance with the Workplace Code of Conduct.
All sustainability-related policies and procedures affirm the Group’s support of the UN Global Compact principles on human rights, labor, the environment and anti-corruption.
For 2010 achievements and future objectives, see the performance reviews of Ethical Business and Safe Workplaces for ongoing operations and “Restructuring” regarding how Electrolux is shifting production to low-cost countries.
Employment
Among the Group’s most relevant labor issues is building a strong people culture that reflects the Electrolux vision, values and strategy. This encompasses OHS, freedom of association and competence-related priorities. Group-wide systems are in place for talent management, leadership programs and health and safety in production. Electrolux has processes for aligned appraisal talks, as well as collecting group-wide and consistent measurements and monitoring performance for many key GRI indicators.
The Electrolux approach to managing its employees is organized through each business area, with group-wide sustainability-related codes, policies and tools available for guidance.
Some human resource-related policies include:
- The Grandparent Principle and the Recruitment Policy, designed to ensure fair and transparent hiring practices.
- The Compensation Policy, defining a consistent approach to remuneration.
- The Appointment of Senior Managers
In addition, the Group applies a number of tools to further develop an innovative culture. These include:
- Leadership development
- Talent Management and succession planning
- OLM, an internal database of available jobs
- EES, the Employee Engagement Survey, deployed in 2010 and to be conducted again in 2012.
Labor & management relations
For Electrolux, as regulated by Swedish law, labor relations start at the top. The Board of Directors comprises non-executive members, the President and three employee representatives together with their three deputies. Labor relations are primarily managed at the national and local-site levels in accordance with the Workplace Code of Conduct and Workplace Standard.
The Workplace Code of Conduct stipulates that all Electrolux employees are free to exercise their legal rights to form, join or refrain from joining organizations representing their interests as employees. In addition, Electrolux insists that all operations and those of its suppliers respect employees’ right toward collective bargaining.
In those regions where worker associations are not possible because of national praxis, each unit and supplier is expected to find appropriate and legal mechanisms through which workers can effectively express workplace concerns to management. Records are to be kept from these formalized consultations and made available upon request.
Through the recently-signed International Framework Agreement with the Swedish trade unions IF Metal, Unionen and IMF the Workplace Code of Conduct audit findings will be reported on and discussed annually with employee representatives. Audit findings will include both Group operations and those of suppliers.
Occupational health & safety
Electrolux has a long-term goal to operate 25% of its plants at best-practice levels for manufacturing industries by 2016 with a vision for accident-free facilities. The Group’s work with OHS primarily focuses on the safety of workers in production.
Since 2005, OHS performance has been monitored for facilities belonging to Major Appliances and Floor Care through the Electrolux Manufacturing System, the Group’s management system that standardizes production and improves production processes.
As of 2010, there is an organization in place to manage OHS. It defined a year-on-year 10% improvement rate for the total number of OHS incidents (TCIR) for operations with a TCIR greater than 1.0, and 5% for those with a TCIR rate of less than 1.0.
Each facility will also develop a three- to five-year safety action plan based on minimum global standards. Each month, the management team at each facility meets with employees to review safety and environmental incidents and develop prevention actions. They identify both risks on site and mitigation plans.
A global safety team is responsible for the development and implementation of the environmental, health and safety recording system which collects safety statistics and incident reporting for every manufacturing facility on a monthly basis. It identifies commonalities between production groups, regions and/or by product line.
Another focus is on setting minimum standards in high-risk areas across the business. This includes lock-out tag-out and working at high or in confined spaces. As a minimum requirement, facilities are required to produce an emergency response plan.
Designed to engage employees and demonstrate management commitment, a “Global Safety Day’, will be initiated as of 2011. At this event ‘best performing’ and ‘most improved’ regional facilities are to be acknowledged.
The business sector Professional, consisting of some 2,700 employees, as well as warehouses and offices, monitor OHS through other systems. Performance, however, is disclosed in Group-wide data collection.
Diversity and equal opportunity
A global company built on diversity, Electrolux aims to attract people that reflect the Group’s global market and consumer base. This will be an area that requires continued improvement, particularly in finding gender balance. Female representation among senior management teams is 14% (15).