Spotlight on suppliers: A sense of shared purpose
Acting sustainably is a responsibility we share and work on continually together with our suppliers globally. In 2019, we held Sustainability Days in Thailand, Ukraine and South Africa, where we helped suppliers understand what we require of them, drive improvements and recognize good work.
Electrolux suppliers are required to meet the Group's high expectations on sustainability. We ensure that prospective and current suppliers meet these standards by evaluating, auditing and training existing suppliers and prospective suppliers in all regions.
Bangkok, February 2019
There are specific challenges related to migrant labor in South East Asia. According to the International Organization for Migration (IOM), the number of non-Thai residents within the country has increased from an estimated 3.7 million in 2014 to 4.9 million in 2018. At that point, migrants constituted over 10 percent of the country’s labor force (Thailand Migration Report, UN in Thailand, 2019).
While recently passed legislation has reduced the risk of exploitation, migrant workers remain vulnerable to risks related to excessive recruitment costs and fees, or unfair or unhealthy employment situations.
Electrolux is working with suppliers in Thailand to increase their sense of responsibility for migrant workers, and to make sure our standards are applied by them in their recruitment processes of migrant workers.
Electrolux gathered 115 supplier representatives from 59 suppliers in Thailand for a deeper understanding of our sustainability principles and standards as well as Thai legislation, international standards and best practices on the management of migrant labor.
A team from the Thailand IOM participated in the workshop, providing many examples of practical steps that companies can take to avoid such problems and proactively work to eradicate improper labor management in Thailand and the region.
QuizRR - our digital tool for training
Suppliers in Thailand also had the chance to try QuizRR, the interactive tablet-based online training that educates factory managers, staff and workers about workplace policies, health and safety, and more.
Education is the most effective tool to encourage and share best practice in responsible supply chain management and ensure people understand their rights to be able to make informed decisions. Reaching individual workers is, however, always difficult.
One way to bridge that problem is QuizRR. Important principles are illustrated and explained through modern, playful sketch-like scenes, while understanding is measured through quiz questions.
QuizRR has been a successful part of our supplier training toolkit in China with over 8,100 people trained in the last two years. In 2019, a version was developed with the specific labor challenges in South East Asia in mind and is being piloted by Thai suppliers.
Ivano-Frankivsk, March 2019
Electrolux Supplier Sustainability Days take place on a regular basis and are an important way to connect with suppliers, especially those working in challenging environments.
At the Electrolux factory in Ivano-Frankivsk, Ukraine, around 20 suppliers participated and learned more about the crucial part they play in the Group's sustainable supply chain.
Johannesburg, October 2019
Electrolux introduced its Responsible Sourcing Program and the Electrolux sustainability framework to representatives from 30 suppliers to our newly acquired company in South Africa.
Three workshops were conducted on the following topics:
- The Electrolux Purpose - Shape living for the better
- Improving Health and Safety, and Human Rights conditions
- Encouraging and enabling employee engagement and transparency
Senior managers from Group Sustainability and Electrolux South Africa participated to enhance engagement, awareness and signal that the requirements that apply to our suppliers also apply to Electrolux.
Celebrating achievements together – Supplier Awards 2019
The seventh Electrolux Supplier Awards ceremony, held on October 15, 2019, once again recognized our top suppliers as well as committing to the 2030 sustainability targets.
”Giving recognition to outstanding suppliers is of course what the Supplier Awards are all about,” says Peter Truyens, SVP Group Purchasing. ”But it is equally important to build a genuine sense of shared purpose.”
”Consumers are increasingly looking beyond a brand to its entire value chain and, since a large part of the value of an appliance is passed on through procurement, it is essential that suppliers are aligned with our sustainability targets.”
This case study relates to our Promise Improve sustainability in the supply chain.
Electrolux is a leading global appliance company that has shaped living for the better for more than 100 years. We reinvent taste, care and wellbeing experiences for millions of people around the world, always striving to be at the forefront of sustainability in society through our solutions and operations. Under our brands, including Electrolux, AEG and Frigidaire, we sell approximately 60 million household products in approximately 120 markets every year. In 2019 Electrolux had sales of SEK 119 billion and employed 49,000 people around the world.
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