Aligning new acquisitions with Group standards and Codes helps enhance the positive impacts that Electrolux can bring to new communities.
Electrolux can support development in terms of promoting universal standards of doing business, jobs, knowledge transfer and economic opportunity. In return, communities provide the Group with its license to operate.
Electrolux acquired ten factories in Egypt and three factories in Chile and Argentina during 2011 and one facility in the Ukraine in 2010. Since then, impact assessments have been conducted regularly to gauge progress in aligning these operations to Group standards. No acquisitions were made in 2012. See more at the Snapshot: Olympic results.
In order to gain insight into Code of Conduct compliance and thereby identify operations with potential negative impacts on local communities, the Group also operates an internal Code of Conduct audit program. For more information on internal Code of Conduct findings, see Mapping and addressing human rights risks.
Restructuring
Since 2004, Electrolux has been relocating over half of production to low-cost areas to align its operations to its business strategy. The Group is mindful that these decisions affect both individuals and local communities.
In setting up new operations or managing organizational change, Electrolux aims to act transparently and responsibly, in dialog with those affected.
A restructuring program was initiated in 2012 that impacts European operations, including Major Appliances and Group staff functions. An important element of the program was to facilitate a smooth and cost-effective transition, especially in regard to moving the organization from Brussels, Belgium to Stockholm, Sweden. Since then, approximately 20% of employees affected by the program have found alternative employment within Electrolux.
In the Electrolux experience, where feasible, supporting the search for investors to take over plants and provide jobs for employees has the greatest long-term benefits for both local community and those directly affected by the decision to restructure. This approach was most recently applied in Motala, Sweden and Alcala, Spain.
Electrolux maintains dialog with local authorities, Workforce Development Agencies, and union representatives to develop a social plan for employees and mitigate potential negative impacts on communities. Social plans may include early retirement schemes, training, severance pay, as well as internal and external job search support.
In Schwanden, Switzerland and Mariestad, Sweden – where downsizing is scheduled – agreements for a social plan were signed to mitigate negative consequences for employees. In Revin, France, where washing machines are produced, Electrolux is in dialog with unions, local authorities and the French government to find solutions for affected employees.
The decision to discontinue production in L ́Assomption, Canada was made in the fourth quarter of 2010. Transfer of production from the factory to new facilities in Memphis, US began in mid-2012, and is scheduled to take place by year-end 2013, affecting 1,150 employees.
For more information on the Group’s approach to mitigating impacts during restructuring. See Management approach: Society.
Supporting initiatives
Recycled plastic is a limited resource and by helping to encourage proper collection and recycling, Electrolux can contribute to increasing the interest in recycled content in products as well. Vac from the Sea is an umbrella campaign designed to raise awareness among consumers on plastic pollution in the world’s oceans and seas and the importance of using recycled plastics. Engagement in the campaign continued in 2012 in Mongolia, New Zealand, South Africa, Poland, Finland, Brazil and Portugal. In 2013, it will continue in Japan.
The company is an ongoing partner of AIESEC, the world’s largest student-run organization. This win-win cooperation helps Electrolux acquire talent, contributes to Group diversity goals and offers students internships within the Group’s worldwide organization. In addition to a yearly remuneration, approximately 50 internship positions were filled this year.
Electrolux has had a long-standing co-operation with WWF in Italy since 1993. Together, the two organized the third conference "Seeds of Sustainability - Towards a sustainable prosperity," launching the Italian edition of State of the World, Worldwatch Institute. The project engaged schools, institutions, communication, businesses and local citizens and was held in Milan at Leonardo Da Vinci, the National Museum of Science and Technology.
Philippines
Working in partnership with local advocacy organization Sagip Kapamilya, Electrolux in 2011 created the Mobile Laundry, a six-wheeled lorry truck equipped with Electrolux washers and dryers. In 2012, after typhoons Pedring and Pablo, the Mobile Laundry upped its collections, and was able to redistribute 12,000 kilos of freshly-washed clothes. Read more at the Snapshot: A fresh start.
Thailand
In the wake of historic flooding in January 2012 Electrolux also donated 20 washing machines and dryers, valued at SEK 108,000 (USD 15,000), to help victims at an evacuation Centre. Electrolux matched all donations and SEK 96,000 (USD 15,000) was collected over a period of two months. Other flood relief activities include a visit by more than 40 staff members to the Flood Relief Operation Centre to distribute 500 survival bags and dried food packed by Electrolux staff.
United States
Electrolux brand Frigidaire was a corporate partner in Save the Children’s CHANGE program. The company thereby committed SEK 4.8m (USD 750,000) towards promoting healthier lifestyles for children living in poverty in the United States during 2011 and 2012.
With summer heat records across the U.S., Electrolux donated 940 air conditioning units to families in Charlotte, North Carolina, who could not otherwise have afforded them. Sixty-five Electrolux volunteers were engaged in the initiative. The units, valued at SEK 896,000 (USD 140,000), were donated to the Crisis Assistance, a non-profit agency that supports emergency needs of low-income families in Charlotte.
Poland
In cooperation with the Polish Humanitarian Action (PAH) since 2009, Electrolux in Poland has been engaged in founding water wells in Sudan, Africa, where people suffer from severe water shortages. Electrolux has contributed six wells to date, each supplying water to approximately 800-1000 people, thereby donating SEK 546,000 (EUR 66,000). Electrolux branded water-efficient washing machines and dishwashers were marked with information about the project.
Latin America
Electrolux in Latin America joined the Colombian Government to help integrate ex-combatants from the guerrilla army into society by giving them vocational training. See more in the Snapshot: Rubber boots redux.
Employee-led initiatives
Electrolux enhances its role by engaging in the priorities of the local community and encouraging its employees to do the same. Some examples include:
United States
Both customers and employees were affected by Hurricane Sandy in fall, 2012. As a company, Electrolux matched dollar-for-dollar the total employee contributions made to the American Red Cross, or SEK 236,000 (USD 37,000). In addition, the company made an outright contribution of SEK 640,000 (USD 100,000) to the organization.
Sweden
Livslust (Joy of life), an initiative Electrolux 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. Electrolux and its employees contributed a total of SEK 189,000 as well as two washing machines donated by Electrolux Professional.