Potential impact on people
|Right to privacy||Privacy and integrity||
Personal information mismanaged (e.g. employee data, consumer data, market research data).
Privacy underpins human dignity and other key values.
The right to be let alone, or freedom from interference or intrusion.
The issue is increasing in importance as a result of digitalization, the Internet of Things, increased sophistication in collecting employee and consumer data. Processes to safeguard privacy must match the increased risk.
data, data gathered in products.
The risk is very high in Mexico, Egypt, Thailand, China, Colombia, Singapore, Ukraine, Malaysia, Russia, and high in USA, UK, Indonesia, Peru and Ecuador.
Right to life
|Purchase of sexual
Exploitation of people as a result of employees’ actions during business travel and representation
Causes severe harm to the victim. The damages also include the individual being mistreated or rejected due to stigmas.
Contributes to a system that perpetuates harm to the victims.
Estimates indicate that around one third of all purchases of sexual services take place during business travel. Electrolux need a clear zero-tolerance policy, actively communicated to employees.
Equal rights and non-discrimination
Right to adequate standards of living
|Corruption or bribery||
Corruption fuels inequality, diverts expenditure away from health, education, holds back economic development, and hurts the most vulnerable in society.
Bribery undermines the rule of law and the principle of fair competition.
Corruption distorts the division of economic resources and hinders social and economic development.
We operate in high-risk markets such as South East Asia, Latin America, Middle East, Egypt and Russia, and need to constantly educate our employees and monitor risks. Risk areas include obtaining licenses/certificates, sales, purchasing, gifts and events.
The corporate human rights assessments conducted in 2012/13 and 2016 drew upon results from existing assessment processes and audit programs, including for example Code of Conduct audits of operations in high-risk countries, and supplier audits.
We map our operations using tools such as Verisk Maplecroft, Freedom House for civil and political rights, Human Development Index, Transparency International’s Corruption Perception Index and the WWF Water Risk Assessment for water risks.
Our risk classification is subject to annual review, and includes the facility’s location and past performance, number of employees, types of activities, Ethics Helpline records and customer requests. This classification also helps to guide our auditing.
In 2016, of all the countries where Electrolux has manufacturing operations, Argentina, Brazil, Chile, China, Egypt, Mexico, Thailand and Ukraine were deemed as high-risk countries. Our facilities in China, Egypt, Mexico and Thailand were the focus for audits. The plan for 2017 is to apply the human rights impact assessment methodology at the local level in two of these high-risk locations. The local assessments will encompass both human rights and corruption risks.
Additionally, we have suppliers in a wider range of risk countries.
To mitigate human rights risks, Electrolux updated the Code of Conduct in 2014, and established the Industrial Relations Strategy. We launched a company-wide training initiative to emphasize the line manager contribution to respecting labor and human rights. We also aligned the initiative with the Group's industrial relations principles within the line manager areas of responsibility. In addition to the internal program, an e-learning targeting select suppliers was launched in 2016.
Human rights was part of the screening in connection with the acquisition of a new Professional manufacturing site in China in 2015. During 2016, one deal was closed, but the human rights risks were deemed to be low. However, relevant topics such as labor standards and EHS was part of ongoing due diligence efforts of potential acquisitions during the year. With the ambition to further strengthen the procedures for the integration of human rights in due diligence, 'acquisitions' has been listed as one of the salient human rights issues.
During 2016, we established a governance structure for human rights. The ultimate responsibility for adherence with Group policies on human rights, including the Code of Conduct, always resides with line managers, from Group Management and down. To support efficient management, we established the Ethics & Human Rights Steering Group, by extending the remit of the existing Ethics Steering Group.
The Steering Group is responsible for evaluating the effectiveness of our human rights approach and our ethics program, including approving priorities and plans for human rights. The Ethics and Human Rights Steering Group consists of the General Counsel SVP, the SVP Human Resources & Organizational Development, the SVP Management Assurance & Special Assignments (MA & SA), the SVP Corporate Communications, and the VP Sustainability Affairs.
A Human Rights Coordination Group is responsible for identifying and assessing risks, and for developing human rights action plans. The process of developing action plans was initiated in 2016. The CEO and the Heads of the Business Areas reviewed and approved the outcomes of the pilot human rights assessment process throughout December and January 2017. The Coordination Group’s work have developed a plan for local assessment pilots in select high-risk locations, and will continue to develop actions for mitigating the risks identified in the corporate level assessment.
We currently monitor our performance in response to salient human rights issues through audits conducted by both our own and supplier units, our Ethics Helpline, management-labor dialogue, health and safety committees, local grievance mechanisms and the Code of Conduct mailbox for suppliers.
The local human rights impact assessments, will provide further details about the risks of negative impacts on people. We will continuously plan local and Group level assessments to ensure that salient human rights issues are reviewed to reflect the main risks for harm to people within our sphere of influence.
1A company’s salient human rights issues are those human rights that are at risk of the most severe negative impact through its activities or business relationships.