Volvo 2006 Annual Report Download - page 37

Volvo Group supports UN’s
Global Compact
Since 2001, the Volvo Group has supported the
UN’s Global Compact and the Treaty’s ten prin-
ciples, which are based on the UN’s Universal
Declaration of Human Rights, the UN Convention
Against Corruption, the conventions of the
International Labor Organization (ILO) on basic
principles and rights in working life and the Rio
Declaration on the Environment and Develop-
ment.
The Global Compact was instituted to pro-
mote responsible business enterprise worldwide.
By supporting the Global Compact, the Volvo
Group commits itself to implementing and inte-
grating ten principles regarding human rights,
working conditions and the environment in its
operations. For more information, see
www.unglobalcompact.org.
Environmental care is one of Volvo’s corpor-
ate values, along with quality and safety. As
one of the world’s largest manufacturers of
heavy vehicles, the Volvo Group has a heavy
responsibility for reducing its products’ envir-
onmental impact. If the Group succeeds in
this, it helps strengthen both its own and its
customers’ competitiveness, while at the same
time contributing to positive social develop-
ment.
Well-established,
widespread organization
The Volvo Group applies an ISO 14001-certi-
fied environmental management system. As far
as possible, the same methods are used for
sustainability reporting as for financial reporting.
All the Group’s business areas and business
units have their own quality, safety and environ-
mental managers. These issues are integrated
into the daily routines and are a normal aspect
of operational responsibility. The Volvo Group
applies integrated routines for process
improvement and product development. These
routines include review meetings with clear
goals for quality, safety and environmental per-
formance, which must be achieved before
product development projects can continue to
the next stage.
At Group level, these efforts are coordinated
by a council for each of the corporate values:
Quality, Safety and Care for the Environment.
These councils are made up of the Quality,
Safety and Environmental managers from each
business area and business unit. They support
the executive management and Board of
Directors in quality, safety and environmental
matters and act as an advisory body in Group-
wide issues.
The Group Executive Committee has ultim-
ate responsibility for sustainability efforts.
Jan-Eric Sundgren is the Group Executive
Committee member responsible for these
issues.
Quality-driven organization
The Volvo Group is a customer- and quality-
driven organization. Its products are often cru-
cial to its customers’ success and must there-
fore meet the highest possible stan dards. The
goal is to be the leader in the industry and to
achie ve the highest customer satisfaction.
The conditions for reliability and customer
benefit are already established at the product
design and development stage. The Group’s
quality concept is
based on customer
needs. By measuring
customer satisfac-
tion, the company
ensures that it
focuses on the right
things, and the results
are taken into account
in the ongoing improvement efforts.
Everyone in the organization is responsible
for day-to-day quality work. All units within the
Group have action plans for continuous
improvements. Most of the Volvo Group’s
employees work in operations covered by ISO
9001:2000 certified quality management sys-
tems.
The Volvo Group also imposes rigorous
demands on its subcontractors, who are con-
tinuously evaluated. Among other elements,
for encouraging employees to report any behav-
ior that is non-compliant with its principles.
The Code of Conduct is based on the UN
Global Compact and it offers guidelines re-
garding legislation, business partner relations,
accounting and reporting, conflicts of interest,
political involvement and stakeholder commu-
nications.
The Volvo Group has a reporting system for
behavior that may be non-compliant with the
Code of Conduct. Employees who in good faith
report actual or suspected violations may not
be discriminated against or otherwise penal-
ized. All persons handling such reports are
sworn to confidentiality.
With regard to environmental management,
the Volvo Group aims to rationalize resources
and applies the cautionary principle. The Group
routinely checks that its environmental efforts
are aligned with environmental targets.
With regard to human rights and working con-
ditions, the Volvo Group supports and respects
the protection of internationally proclaimed
human rights and works to ensure that the
Group is not complicit in human rights abuses.
Corporate values applied from the start
Everything that the Volvo Group does is driven
by an uncompromising focus on quality. Product
and service offerings should be of the highest
quality in order to provide optimum customer
value. This quality commitment requires con-
sistent working methods to be adopted
throughout the organization.
“Cars are driven by people. This means that
safety is – and must always be – the basic prin-
ciple behind everything the Volvo Group does.”
This quote is by Gustaf Larson, one of Volvo’s
founders. Right from the start, Volvo has had a
solid reputation for safety. Over the years, the
Volvo safety concept has evolved to encom-
pass safety in an increasingly broad context.
High safety standards are the basis of efficient
transport.
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