An ethical approach is vital to the success of Electrolux and to ensure its societal “license to operate” as responsible corporate citizens. As a sustainable brand, Electrolux is accountable to many stakeholders—customers, employees, shareholders and others affected by the Group’s conduct.
Goals and performance
For 2010 achievements and future objectives in regards to areas of anti-corruption, see the performance overview for Ethical Business and Safe Workplaces. The performance review on restructuring provides 2010 performance on engaging with local governments and unions in regards to restructuring decisions.
For more information on engaging with stakeholders on climate change, the Group’s most relevant environmental impact, see the performance overview for Climate Challenge.
Community
At Electrolux, community initiatives and financial support for not-for-profit organizations are primarily coordinated on the local level in order to respond to, and deliver on, local needs.
Electrolux aims to demonstrate its commitment to local communities by contributing Electrolux products to worthy causes, supplying appliances to emergency relief efforts, or by supporting financial contributions initiated by employees in times of humanitarian disaster. Joy of life, an initiative that Electrolux in Sweden co-founded in 1994, provides housing and vocational training for disadvantaged young people in Latvia. Electrolux provides appliances for its residential facilities and economic support. The Electrolux personnel foundation, Electrolux Friends of Livslust (Joy of life), contributes in-kind donations of time and expertise, as well as monthly economic support. Every year Electrolux doubles the contribution generated by our staff.
Electrolux also supports causes that consumers care about – such as donating proceeds from sales of Electrolux products to cancer research in the United States and South America, and awareness raising on the increasing volume of plastic in the world's oceans (see case study, From trash to treasure).
Anti-Corruption
Electrolux does not tolerate bribery and corruption in any form, whether direct or indirect. This extends to all business dealings and transactions in all countries where Electrolux operates. The Group’s Policy on Countering Corruption and Bribery prohibits the offering and accepting of bribes, kickbacks or any other improper benefits. Training is also ongoing regarding guidelines for gifts and events worldwide in order to support the policy.
An ethics program was developed to enhance employee understanding of Group expectations for personal and corporate ethical accountability. The program includes an ethics hotline operated by a third party where employ-ees can anonymously and confidentially register incidents of non-compliance to codes and policies. Roll-out of the program is scheduled to begin in 2011 and is organized through Human Resources in each business sector. The Ethics Helpline will be monitored by a steering committee comprising the CEO and the respective heads of Group level including Corporate Communications, Group Legal Department, Group Management Assurance and Special Assignments (internal auditing) as well as Human Resources and Organizational Development.
Employees can also report anonymously to the Electrolux audit committee. Violations of the policy may be reported to the policy holder, Group Management or the Board of Directors either directly or via a manager or an internal auditor.
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.
Public policy
Electrolux Corporate Communications has responsibility for the Group’s public policy agenda. Initiatives are primarily coordinated with industry organizations such as the European Appliance Industry Association (CECED) and the American Home Appliance Manufacturers Association (AHAM). Public policy issues relevant to Electrolux include climate change, energy efficiency, producer responsibility for recycling, product responsibility, labeling, harmonization of legislation such as chemicals use. Since performance standards and legislation vary between countries Electrolux supports their global harmonization.
A public policy outcome currently supported by Electrolux is the creation of market frameworks that promote purchases of energy-efficient appliances.
Electrolux observes neutrality with regard to political parties and candidates. Neither the Electrolux name, nor any resources controlled by Group companies may be used to promote the interests of political parties or candidates.
Anti-competitive behaviour
Electrolux has a specific policy on insider trading. A small group of directors, officers and other employees have, because of their positions within the company, regular access to sensitive information concerning Electrolux. These qualified insiders must by law be listed in a public register and their activities are governed by a strict internal policy. This is intended to prevent insider trading.
At Electrolux, no director, officer, or employee may directly or indirectly buy or sell securities in any publicly traded company, including Electrolux, when in possession of insider information regarding such a company. Nor may they disclose such information to anyone within or outside the company.
The Head of Legal Affairs is the policy holder. Training and awareness-raising of the policy is included in the Ethics at Electrolux program, to be rolled out in 2011.