Better company
Act ethically, lead in diversity and respect human rights
We continue to build an ethical, diverse and trusted company, where everyone impacted by our operations can feel confident that their rights are respected.
2021 Highlights
- Aspirational Group objectives were established for diversity and inclusion.
- Achieved an injury rate (TCIR) of 0.43.
- 18,000 took part in Electrolux Food Foundation activities aimed at educating kids, consumers and professionals in sustainable cooking and eating.
Our Goal
Act ethically, lead in diversity and respect human rights
We will earn the trust of everyone impacted by our operations, demonstrating our commitment to ethics, diversity and human rights through our words and actions. This includes working to ensure the health and safety of our employees and promoting societal benefit through community investment activities.
Roadmap to 2030
- Continue to build a Group-wide approach to human rights and ensure the strong management of human rights issues.
- Drive a company culture based on ethics, integrity and respect by providing leadership that demonstrates and nurtures inclusion and accountability. This will foster an environment where people feel safe to speak up.
- Take proactive measures to ensure that various elements of the global anti-corruption compliance program are effective in practice.
- Ensure a pathway to industry leadership in diversity and inclusion by developing and implementing a global roadmap.
- Electrolux will be the leader on health and safety in the appliance industry, wherever we operate in the world.
- Continue to invest in the communities in which we operate in around the world.
The case for action
A strong culture of ethics is vital for stakeholder trust and long-term business success. Consumers are increasingly making purchasing choices based on whether a company is perceived as being trustworthy and how it contributes to society.
Additionally, employees prefer to work for a company with values that match their own. Corruption also increases the cost of doing business globally by up to 10% on average, according to the World Economic Forum.
The wellbeing and safety of our colleagues is extremely important. We have a duty of care toward every individual working for Electrolux, and we take this seriously. Our commitment applies wherever Electrolux operates in the world, and goes beyond local regulations.
It is well known that diversity and inclusion (D&I) can promote innovation and attract new talent and that more diverse companies outperform organizations that do not invest in this area.
Our approach
Our company is built on trust, which means everything we do and all decisions we make are governed by the principles of ethics, integrity, and respect for people and our planet – regardless of where in the world we operate. Our approach involves working within our company through health, safety and diversity, and promoting societal benefit through community investment.
Read more about our approach to human rights in the Understanding and managing our human rights risks section.
Our Code of Conduct
The Electrolux Code of Conduct forms the platform for our efforts to ensure high standards of ethics and human rights within the Group. The Code summarizes our key policies and is a guide for employees on how to conduct themselves in line with the principles of ethics, integrity and respect. It covers areas such as respect for people, anti-corruption, non-discrimination, conflicts of interest, fraud, privacy of information, health, safety and respect for the environment, and constitutes the basis of our Ethics program. It also helps define our expectations throughout the value chain.
Our policies
Our Group policies including the Workplace Policy, the People Policy and the Anti-Corruption Policy are the foundation for our work with ethics, anti-corruption, non-discrimination and human rights. Our Human Rights Policy Statement, which is an integrated part of the Code of Conduct, and our Human Rights Directive guide our efforts to assess, manage and mitigate risks in these areas.
Communication and educational efforts are used to ensure employees are aware of and understand what our Code and policies mean in practice. Breaches of our Code and Group policies can lead to disciplinary action that can include dismissal.
Governance for ethics and human rights
Accountability for the Ethics Program and oversight of human rights lies with the cross-functional Ethics & Human Rights Steering Group, which includes representatives from Group Management. Human rights procedures engage many functions throughout our organization, from Group Sustainability Affairs and Human Resources to Purchasing, Operations and Legal.
Each business area has established Compliance Committees that oversee overall performance, including employee training efforts and case handling. The business area senior Heads of Legal, HR, Finance and the CEO are part of the committees.
Workplace Policy audits
The implementation of our Workplace Policy and Directive is followed up by Workplace Policy audits of our manufacturing facilities. This procedure is central, not only for the follow up, but also for educating and reminding line managers of their responsibilities for making Workplace Policy alignment a part of their daily activities.
In 2021, we strengthened our approach by setting up a program to conduct annual audits of all of our factories from early 2022. The previous approach was to conduct bi-annual audits of facilities in high-risk countries, combined with a self-assessment for all factories.
Additionally, we updated the Workplace Policy and Directive to raise our requirements on our own operations as well as those of our suppliers. A new Workplace Policy Group was established with HR Directors from each of our four business areas. The Group has regular meetings to review results and develop the necessary procedures for Workplace Policy implementation.
Human rights assessments
We conduct local assessments of operations located in high-risk countries from a human rights and corruption perspective. The assessments focus on identifying the risk of harming people as a direct or indirect result of our operations. They include confidential interviews conducted by Electrolux internal specialists and third-party experts on human rights and corruption.
The interviews involve a broad range of workers, sales representatives and managers at Electrolux, as well as external stakeholders such as civil society and academia to understand the risks in the country. The assessment outcomes are agreed in interactive workshops with the local management.
Read more in Understanding and managing our human rights risks.
Anti-corruption
Electrolux has a zero-tolerance policy toward corruption, and we are committed to complying with all applicable anti-corruption laws. Improvements and enhancements to our compliance program are guided by recommendations issued by industry and regulatory bodies, such as the OECD. Executive and senior management throughout the company oversee the implementation and effectiveness of the program, and their efforts are coordinated at Group level.
The Group Anti-corruption Policy (in addition to the Code of Conduct) is key to the anti-corruption compliance program, which applies to all persons who work with or on behalf of Electrolux. The policy is supplemented by more in-depth guidance for employees in certain areas, such as gifts, hospitality and events. Our suppliers are subject to anti-corruption requirements as part of our Responsible Sourcing Program.
Whistleblowing system
Through our training and communication efforts, employees are encouraged to report incidents and suspected ethics breaches to their manager, HR department, and the Internal Audit department or another relevant person in the organization. They can use our whistleblowing system – the Ethics Helpline – where reports can be made confidentially and in local languages, either by phone or online.
In 2021, we updated the Ethics Helpline website to improve functionality for reporters. The Ethics Helpline is hosted on an external platform, and only a central ethics coordination team has access, which includes representatives from the Group Functions HR, Legal, Internal Audit and Sustainability Affairs. Cases are dispatched to trained investigators who have no conflict of interest in the particular case. The ethics coordination team provides support on the handling of investigations and follow up of cases. External investigators are engaged as appropriate. The Ethics & Human Rights Steering Group is responsible for the oversight of cases and the procedures.
Employee engagement survey
Electrolux evaluates the engagement of its employees through engagement surveys. The surveys include metrics on important aspects of the company's efforts to act ethically, lead in diversity and respect human rights, including the understanding of our Code of Conduct, trust in the Ethics Helpline and equal opportunities.
The global survey has been on hold since 2019, but will be conducted annually from 2022 in a new format called "Employee Voice". During 2020 and 2021, Group functions, business areas and local business units conducted multiple employee surveys for their respective parts of the organization, on topics such as wellbeing, diversity and inclusion, and general engagement.
Diversity and inclusion
We aim to be a leader in D&I as it makes us stronger, more innovative and a better employer. In 2021, we launched new D&I Objectives. The objectives aim to promote the mindset of recognizing the unique value that every individual brings to our company and is made up of three pillars:
- Diversity
- Inclusive culture
- Respect & equal treatment
Read more about how we work with D&I.
Health and safety
Health and safety have long been a fundamental part of our values and our sustainability agenda, with clear targets and processes in place to ensure real progress.
All employees and contractors in production are covered by a reporting system to track incidents and hours worked, and apply the same Occupational, Health and Safety (OHS) management system throughout the Group and among our contractors. All manufacturing sites have Safety Committees that include managers, workers and worker representatives. All employees receive safety training when they start at Electrolux and annual training tailored to their function.
Employee wellbeing
The Electrolux approach to wellbeing is founded on the commitment to employee wellbeing in the Group People Policy, and is based on four themes: Work environment, Culture, Body and Mind. Group level campaigns are organized on each of the themes, and initiatives are implemented regionally and locally.
Community investment
Our approach to community investment is designed to have a positive impact in our local communities, while creating opportunities for employee engagement. Ultimately, this strengthens our brand with consumers, customers and employees as a company that genuinely cares for people and the planet. We established the Electrolux Food Foundation in 2016, with the aim to address the challenge of feeding the growing global population sustainably. We believe this is an urgent cause with relevance both to the world and to our business, as supporting both our consumers and society in general to adopt sustainable lifestyles is part of our mission.
Through the programs of the foundation, we contribute with our skills and resources together with our Feed the Planet partners (Worldchefs and AIESEC) to train, engage and inspire people to cook and eat more healthily and sustainably. The foundation also aims to support people in need.
The foundation is a long-term investment with funding until 2030.
Read more about our approach to community investment.
Challenges
- Bridging different cultures and local practices in a global organization.
- Overcoming behavior and biases that are sometimes deeply engrained in society.
- Ensure that our approach to community investment leverages our global presence and our partnerships, while allowing local adaption and delivering tangible societal benefit.
- The most significant health and safety risks occur in our warehouses and technical departments, and when working with external contractors.
The progress on our Goal
How we measure progress
- Proportion of high-risk countries where local human rights impact assessments have been conducted and proportion of mitigating actions closed.
- Proportion of total workforce covered by collective agreements, and proportion of manufacturing sites with local employee-management committees.
- Proportion of female leaders, participation in diversity and inclusion training, gender pay gap, and internal survey results on equal opportunity and work/life balance.
- Level of understanding of the Code of Conduct by our employees.
- Participation in e-learnings on the code and Group policies (Workplace, Anti-corruption, Anti-trust).
- Level of trust in the Ethics Helpline according to our employees.
- Number of people educated on healthy and sustainable cooking/eating (formally trained and participants online or in workshops), viewership in social and traditional media campaigns, and meals donated through our community investment projects. Read more about our progress with community investment.
- Global injury rate per 100 employees per year (TCIR) and number of ISO 45001 certified production sites.
Human rights
Impact assessments
Our target is to have conducted local impact assessments in all high-risk countries where we have manufacturing operations by 2023, and by the end of 2021, four out of the eight assessments in scope had been conducted. We began the work to conduct a remote impact assessment in South Africa, but due to a national strike, the assessment was delayed to early 2022.
In recent years, we have conducted impact assessments in Egypt, Thailand, Ukraine and Romania. These assessments identified issues such as safety, working hours, wages, corruption training and supply chain risks. Mitigating action plans have been put in place, and actions include:
- Improved management-employee communication, including dialog with unions.
- Addressing benefits and rewards, including medical coverage.
- Improved health and safety, for example road safety for employees with driving as part of their job, and ergonomics in production.
- Additional anti-corruption training.
- Addressing working hours and overtime.
- Strengthened management of labor related risks at suppliers.
- Launch of community investment activities, supported by the Electrolux Food Foundation.
At the end of 2021, the actions from the assessments in Thailand and Ukraine were fully closed. In Egypt, 18 out of a total of 19 actions were closed, and in Romania 23 out of 26 actions were closed. Some actions are on hold due to the coronavirus pandemic and limited possibilities for face-to-face gatherings as well as travel.
Workplace Policy follow up
Our work to follow up the Electrolux Workplace Policy was limited due to the coronavirus in 2021.
We conducted Workplace Policy audits at 17 (6) of our 41 facilities.
Most findings related to safety, such as evacuation drills, lighting and electric safety. Non-compliance with working hours limitation was the second most common area. Local corrective action plans were developed to address the identified issues and ensure continuous improvement.
Freedom of association
Freedom of association is one of our salient human rights issues. Find out more in Understanding and managing our human rights risks. In line with international conventions, employees are free to join unions. At the end of 2021, 65% (63%) of our workforce were covered by collective agreements.
30 of our 41 manufacturing units are unionized, and an additional 9 units have employee-management committees in place, which deal with work-related issues. Electrolux also has an International Framework Agreement with the global unions. The agreement is revised annually with the Electrolux Board union representatives - KFD (Koncernförhandlingsdelegationen).
Diversity and Inclusion
At the end of 2021, 28.3% of all our leaders with direct reports were women. Our overall gender division is 39% women and 61% men. At the end of 2021, 8,000 colleagues, equivalent to 43% of the eligible global workforce had completed our global e-learning on diversity and inclusion, which was launched during the year.
In 2021, we became a signatory of the United Nations Women’s Empowerment Principles (WEPs) and joined Workplace Pride, which is dedicated to improving the lives of LGBT+ people in workplaces worldwide.
Read more about our progress on D&I in 2021.
Human rights in acquisitions
In 2021, sustainability, including human rights and ethics, was part of several due diligence projects of potential acquisitions. During the year, one acquisition was made.
Ethics
Our Code of Conduct and Group policies
An e-learning on anti-trust was rolled out during 2021, and by the end of the year, 77% of eligible employees had completed it. The completion rates for the Code of Conduct, Anti-corruption Policy, Workplace Policy (Line Managers) and Workplace Policy (Employees) were 84%, 68%, 63% and 60% respectively. A key part of the Workplace Policy and the Code of Conduct centers around human rights and thereby the e-learnings corresponded to approximately 600 hours of training in human rights during 2021.
The most recent employee survey in 2019 indicated a high level of Code of Conduct awareness among our employees. Responses show that 90% of employees understand what the Code of Conduct means for them. This will be followed up in the new annual employee survey planned from 2022.
| Percentage positive answers | 2019 | 2018 | 2016 |
|---|---|---|---|
| I understand how I am expected to act in order to follow the Code of Conduct. | 90% | 90% | 85% |
Anti-corruption
Since at least 2015, anti-corruption risks have been continually assessed through formal and informal channels – site/factory assessments, surveys, in-person interviews, etc. In early 2020, an external law firm assessed anti-corruption, anti-trust and trade sanctions risks, as well as the overall compliance program. Recommendations from this assessment are being implemented via a prioritized action plan to improve and enhance existing compliance activities.
Face-to-face training sessions are designed to reach those employees that are most likely to face corruption risks, such as in purchasing, sales and finance. Our executives and senior management engage in separate and structured discussions around anti-corruption compliance and challenges.
Besides bribery-related corruption risks, Electrolux also takes fraud seriously, and has a training in place for face-to-face anti-fraud training. During 2020 and 2021, these activities were put on hold due to the pandemic.
Anonymous reports via the Ethics Helpline, as well as non-anonymous reports, alleging non-compliance with our anti-corruption policy are promptly investigated and remediated.
Anti-trust
Electrolux trains its employees on anti-trust compliance via online training. All new white-collar employees are required to take the training as part of their onboarding process.
Countering discrimination and harassment
We provide anti-harassment and non-discrimination training. These topics are an integrated part of the Code of Conduct and Workplace Policy e-learnings for all employees and managers. During 2021, this corresponded to approximately 300 hours of training on anti-harassment and non-discrimination. Additionally, we provide guidance and training for HR professionals, who in turn are responsible for the education of line managers and employees. Training includes examples of unacceptable misconduct, key principles for dealing with reports of harassment and discrimination, and emphasizing the responsibility of HR and line managers to act promptly on any such reports.
The trainings for HR professionals on how to handle concerns reported by employees have continued during the year, including discrimination and harassment cases. The emphasis has been on how to handle reports in an independent, professional and confidential manner, and ensuring that there is no retaliation directed at the reporter. Non-discrimination and anti-harassment is an integrated part of several trainings such as the onboarding of new employees and Code of Conduct training for management, with specific initiatives during the year in countries such as Sweden, the US, Brazil, South Africa, and Indonesia.
Ethics Helpline reports
In 2021, 411 (258) cases were reported through the Ethics Helpline. The significant increase in the number of reported cases was driven by North America, where the Ethics Helpline was proactively promoted. By the end of 2021, 49 (54) cases had been found as either being outside the scope of the helpline or lacking sufficient detail to allow investigation. 362 (204) cases led to further investigation, out of which 273 had been closed by the end of the year.
The most common categories of reports in 2021 were related to workplace conduct, verbal abuse and other types of disrespectful behavior.
A proportion of the cases fell into the category 'other' including complaints related to not following guidelines or instructions. 11 (16) cases of breaches in business integrity were reported – including for example accounting, fraud, theft and corruption. 11 cases were related to coronavirus safety measures. Typically, case investigations that result in confirmations of wrongdoing, lead to warnings and retraining, but in some severe cases to dismissal.
During the year, 17 employees were dismissed from the company as a result of investigations into helpline cases (including one report filed in 2020).
During the year, 28 cases were related to discrimination. Only one of these was proven to be true and was followed up with a corrective action.
Helpline cases in 2021
In the last employee survey in 2019, the level of trust in the Ethics Helpline increased to 77% from 76% in 2018 and 67% in 2016. This will be followed up in the new annual employee survey planned from 2022.
The fact that the number of employees that use the Ethics Helpline has increased in recent years indicates that there is a high level of trust in the whistleblowing system and that our efforts with the Ethics program are having a positive impact.
| Percentage positive answers | 2019 | 2018 | 2016 |
|---|---|---|---|
| I trust that the concerns reported through the Ethics Helpline are handled confidentially and fairly. | 77% | 76% | 67% |
Privacy and integrity
During the year, there have been no investigations by authorities regarding personal data resulting in administrative fines or other corrective actions. Various privacy access requests have been submitted to the Electrolux Group Data Protection Officer function by for example consumers, which have been processed and responded to, in line with internal procedures, our Code of Conduct and applicable legislation.
Health and Safety
Our injury rate has declined by at least 6% every year throughout the Group since 2015. The Total Case Injury Rate (TCIR) at Group level is now at 0.43 per 100 employees per year. This means that if we had a factory of 100 people, we would have a single injury after a little over two years on average. Our target is a year-on-year improvement of 5%.
First-class health and safety practices are an essential step for building trust among employees, their families and local communities. Our work with OHS (Occupational Health & Safety) focuses primarily on the safety of workers in production areas and also raises awareness of the health and wellbeing of office workers.
During 2021, the safety systems and processes in the different regions continue to be aligned with the Group-wide approach – the Electrolux Safety Management System.
Coronavirus management
In 2021, we continued to manage the coronavirus pandemic to minimize the health risks and impact on our employees based on a detailed risk assessment. Many procedures and operative instructions were applied to safeguard the health of our employees.
During the year, we continued to encourage non-manufacturing employees to work remotely while compulsory face mask use and daily temperature checks remained in place for people working in factories. Safety entrance controls were applied at sites located in areas where incident rates indicated a high level of risk, and visits were discouraged.
In manufacturing, the measures implemented in 2020 remained, including re-arranged workplaces to ensure social distancing and plastic dividers where appropriate. This was also valid for measures to allow social distancing in company canteens and bus services. In offices, common areas are arranged to ensure social distancing. Sanitation materials remain available in multiple locations at all sites. Business travel was generally restricted during the year.
Employee wellbeing
During the year, the wellbeing theme was physical and mental health in light of many employees working from home. Examples of local initiatives on this theme are digital health challenges and mindfulness activities.
Based on learnings during the pandemic, a Group guideline for flexible working was launched, with the recommendation that employees can combine remote and in-office working. Remote working includes working from home or other locations within the emplyee's country of employment, and this is a way to visibly execute our commitments to sustainability and being a responsible employer, by improving the everyday life for our employees.
Additionally, a global minimum parental leave standard was approved by the end of the year that will be launched in 2022. We believe both these initiatives will help people to achieve a positive work/life balance.
Community investment
Electrolux invests in community programs both on a Group and local level. In 2021, in addition to the annual contribution to the Electrolux Food Foundation of SEK 10 million, approximately SEK 1.4 million was spent on managing community programs around the company, as well as SEK 4.8 million in in-kind donations and SEK 13.7 million in cash donations. Despite the pandemic reducing opportunities for volunteering, Electrolux employees volunteered a total of over 8,000 hours of their time to support local activities.
Next steps
| Roadmap to 2030 | Next steps | Status |
|---|---|---|
Continue to build a Group-wide approach to human rights and ensure the strong management of human rights issues. | Continue to conduct local assessments and follow up assessment action plans. | |
Drive a company culture based on ethics, integrity and respect by providing leadership that demonstrates and nurtures inclusion and accountability. This will foster an environment where people feel safe to speak up. | Engage leaders at all levels in activities to build an ethical culture. Ensure employees in all parts of the organization are educated on the Code of Conduct and relevant key policies. | |
Take proactive measures to ensure that various elements of the global anti-corruption compliance program are effective in practice. | Align and improve corruption prevention efforts throughout the company through various methods. This includes the implementation of relevant policies and instructions, trainings, audits, and internal inquiries. Emphasize the zero-tolerance message for bribery and corruption throughout the organization. | |
Ensure a pathway to industry leadership in diversity and inclusion by developing and implementing a global roadmap. | Drive progress through the three pillars of our D&I objectives - Diversity, Inclusion and Equal treatment. | |
Electrolux will be the leader on health and safety in the appliance industry, wherever we operate in the world. | Continue to reduce our accident frequency. Attain safety certifications for our manufacturing facilities. | |
Continue to invest in the communities in which we operate in around the world. | Continue to adapt, re-create and launch our community investment programs via the Electrolux Food Foundation and its partners. |
- On track
- Additional effort is required
- Off track
- Work has not yet begun