Annual Report 2013


Performance review: People and operations (Ethical business)

As part of its sustainability approach, Electrolux communicates objectives, progress on priorities of each stated aspect of its strategic pillars, along with the next step for 2014 and onwards.

Aspect of the Foundation / area Objective / challenge 2013 performance Next step
Engage with Board and top management on sustainability strategies.
  • More fully integrate sustainability into business strategy.
  • Informed Board on strategy, priorities and approach.

  • Group management involved in 50% carbon reduction strategy.

  • Surveyed top management on priorities and sustainability integration.
  • Ongoing.
Purpose – An element of the corporate framework that describes the company’s aim beyond financial and market objectives.
  • Engage employees in sustainability objectives and build an understanding of the value Electrolux creates.
  • Continued roll-out of a voluntary workshops to make the Purpose relevant to local markets and each individual. Over 2400 employees took part by year-end 2013.
  • Evaluate the outcome of the workshop.

  • Further evolve the Purpose program.
Core values – Embedding a common set of values throughout Group processes and training.
  • Integrate a common values system among all employees.

  • Integrate core values into Talent Management processes, including performance appraisals.

  • Implement the Electrolux Leadership Model.
  • Conducted Employee Engagement Survey (EES) survey among production and non-production employees across Group operations.

  • Integrated recommended areas of improvement, based on findings from the 2012 Employee Engagement survey.

  • Global induction program included references to core values.
  • Conduct full EES again in 2014.

  • Expand the target group to the entire Group (40,000 production workers and 20,000 non-production workers).

  • Ongoing work with core values.

  • With a focus on office and factory working environments, further improve corporate culture.

  • Further improve the quality of competence development.

  • Further improve the implementation of the Electrolux Leadership Model in leadership programs.
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.

  • Develop a system where all employees can report potential issues.
  • Employees in 48 countries in Europe, North and Latin America and the Asia Pacific, or almost 90% of Group employees, had access to a whistle-blowing system. Roll out includes training in the organization's ethics policies and procedures, including anti-corruption.

  • Integrated the North American Alertline into the Helpline system.
  • Complete global roll-out of Ethics at Electrolux by 2014.

  • Conclude rollout in 10 remaining countries.

  • Roll-out ethics training in North America.
Ethics and integrity – Implementing Code of Conduct (CoC) and monitoring performance.
  • Uphold principles of the CoC, especially in regions with higher risks from human and labor rights perspectives.
  • Updated the CoC to reflect the UN Guiding Principles, customer expectations and findings of the human rights impact assessment.

  • Conducted live training on antitrust and anti-corruption in 2012-2013.

  • Audited 20 (18) of 26 (28) plants in risk-defined regions for CoC and environmental compliance by third-party auditors, six of which were supported by Electrolux auditors.
  • Launch and implement the revised CoC by internal awareness and education campaigns.

  • Monitor the implementation process through self-assessment and auditing.
Safety – Global approach to health and safety (H&S) management and behavioral change.
  • Operate 25% of Global operations facilities at manufacturing industry best practice levels by 2015, with the end-goal of zero accidents company-wide.

  • Be regarded as leader in the appliance industry sector for safety performance.
  • The total case incident rate (TCIR) is at 1.0 and decreased by a further 10% while workdays lost due to injuries increased by 48% (-36).

  • Total injuries recorded were 434 within the Group, 327 of these were within Global Operations.

  • Rolled-out the “Safety Management System” in all business areas, with the exception of Professional facilities.

  • Launched the ‘100 days without an accident’ program

  • Introduced a group-wide measure “First Aid Incident Rate” (FAIR).

  • Integrated Chilean and Egyptian factories in Group performance reporting.

  • Global provider for third party verification of OHSAS 18001 standards.
  • Minimum 2014 Global Operations targets:

  • Sites with TCIR greater than 1.0: 10% reduction.

  • Sites with TCIR less than 1.0: 5% reduction.

  • Fully adopt a safety management system in 2014.

  • Achieve global goal of 100 consecutive accident-free days by end-2014.

  • Achieve 2014 TCIR goal of 0.87 for facilities in Chile and Egypt.

  • Achieve TCIR of 0.7 by 2015.

  • Define a KPI for FAIR.
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 with the objective of raising the share of women in senior management teams.
  • A 1% increase in the share of women in Tier 2 positions (to 20%).

  • A 1% decrease in the share of women in Tier 3 positions (to 25%).

  • The workforce consists of 32% (32) female employees.

  • Of its ten members, three women comprise the Board of Directors.
  • Ongoing diversity objectives: By 2015, increase female representation:

  • Ongoing activities to achieve 2015 goal of share of females in:

  • In Tier 2 positions: 25%

  • In Tier 3 positions: 30%.

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