Volvo 2014 Annual Report Download - page 63

The Volvo Way shows what we stand for and aspire to be in the future. It
lays the foundation for developing the Volvo Group into the world’s leading
provider of commercial transport solutions. It is a recipe for success in
which we strongly believe. It expresses the culture, behaviors and values
shared across the Volvo Group.
The Volvo Way is based on the conviction that every individual has the
capability and the determination to improve our business operations, and
the desire to develop professionally.
The Volvo Way is the lively dialogue between leaders, within teams,
and among colleagues around the world. This is the way we conduct busi-
ness and deliver results. This is how we partner with customers and sup-
pliers, how we work and change, and how we build the future together.
The Volvo Group’s position on human rights is refl ected in the Code of
Conduct. It includes:
• Non-discrimination
• Non-tolerance of forced labor
• Non-tolerance of compulsory or child labor
• Freedom of association
• The right to collective bargaining
• The right of all employees to a healthy and safe work environment
• Working hours and compensation.
HUMAN RIGHTS IN OPERATIONS
THE VOLVO WAY
Volvo Group University
The Volvo Group’s own university has been up and running in
Göteborg, Sweden since April 2014. The Volvo Group University
(VGU) is the center of education and competency activities for
the Group’s employees. In Greensboro, Lyon and Bangalore there
are also training facilities and VGU personnel.
Every year, half a million training days is allocated to the Volvo
Group’s employees and retail organization worldwide. With
employees in more than 190 markets working on everything from
product development and assembly to fi nances, marketing and
sales, the competency level and further education of all employ-
ees is a crucial success factor for the Group.
– It is important that the training courses we offer support our
strategy ahead, the transformation of the Volvo Group and enable
culture. With the Volvo Group University, we ensure that training
builds the expertise that will help us achieve our long-term targets,
says Kristina Rejare, Head of the Volvo Group University.
– We know that our employees value the opportunities for
further education during their professional lives. Having our own
university increases both the quality of the training courses
offered and secures synergies and effi ciency within the Volvo
Group, says Kristina Rejare.
VGAS 2014: Lower employee engagement
The major transformation work in the Volvo Group has affected
the engagement of the Group's employees, losing four percent-
age points, from 76% to 72%. The performance excellence index,
which captures if the Volvo Group has the right structures and
processes to support customers, declined one percentage point
compared to the 2013 result. This is also the case for the leader-
ship effectiveness index, which declined from 71% to 70%.
Although not entirely unexpected, these signs are taken very
seriously. By the end of 2014 managers at all levels of the organ-
ization were working actively to understand the results and build
action plans. Key areas to focus on include empowering the
employees, allowing them to take actions in support of the cus-
tomer and fi nding ways to create motivation for the future. In par-
ticular, all leaders need to take the time to lead, and to communi-
cate not only what the company decisions mean, and why we have
made them, but also where they will take us. Finally, speed and
decision-making as well as collaboration are improving but there
is still room for improvement.
Personnel reductions
In the autumn of 2013 a Group-wide effi ciency program was
announced. It is based on cost-saving activities related to the
implementation of the Group’s strategies. Approximately 4,400
white-collar employees and consultants are affected by person-
nel reductions. A majority of the personnel reductions were imple-
mented during 2014. During the year, a substantial number of
blue-collar employees were also affected by the Group’s restruc-
turing measures.
The Volvo Group strives to have a close and good cooperation
with unions. In conjunction with restructuring and reorganizations,
a close dialog with the unions, as well as contacts with local
authorities, of vital importance so that the changes can be carried
out as effi ciently and positive as possible for all parties involved.
Training in Code of Conduct
A Group-wide training program was launched in November 2012
to support the implementation of the updated Code of Conduct,
which was launched in September 2012. This training helps our
employees and managers to refl ect on their own attitudes and
behavior in different situations. Since the launch of the updated
Code of Conduct 23,115 white-collar employees (out of around
47,500) have participated in the web-based training.
All employees within the Volvo Group are expected and encour-
aged to report suspected violations of the Code of Conduct to their
direct superiors or managers of their superiors. To support this,
aWhistleblower procedure is available.
Read more in the Volvo Group's Sustainability Report 2014.
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A GLOBAL GROUP 2014 BUSINESS MODEL A HIGH-PERFORMING ORGANIZATION