Electrolux 2003 Annual Report Download - page 80

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Distribution of value added in 2003
Salaries and employer
contributions 69%
Retained in the Group 19%
Dividend payment
to shareholders 6%
Taxes 6%
78 Electrolux Annual Report 2003
Governance for Corporate Sustainability
Electrolux strives to implement the highest standards and most
effective processes to ensure that its operations create long-term
value for shareholders and other stakeholders. This includes
maintaining an efficient organizational structure, operating sys-
tems for internal control and risk management, and transparency
in internal and external financial reporting.
The Group is committed to continuous improvements in energy
efficiency, factory emissions, waste generation and handling of
hazardous materials in manufacturing and other processes, as
well as designing products with a high level of environmental
performance.
The Group strives to be an attractive employer, respecting its
responsibility to provide safe and healthy workplaces while
guaranteeing fairness for all employees.
Distribution of Group’s value added by stakeholders
The table below shows the value added generated by the Group and its distribution by different stakeholders.
Understand retailer/customer needs,
build long-term partnerships for joint
value creation
Understand consumer needs,
build long-term consumer
satisfaction and trust
Be a good corporate citizen
Be the employer of
choice in all regions
Create sustainable long-term value for shareholders
Governments
and local
communities
Employees
Shareholders
and investors
Consumers
Suppliers
Retailers and
customers
Work closely with suppliers for joint value creation through
cost reductions and accelerated product innovations
Electrolux key stakeholders
SEKm 2003 2002 2001
Customers Revenues 124,077 133,150 135,803
Suppliers Cost of goods and services –90,790 –95,834 –98,432
Value added 33,287 37,316 37,371
Of which retained in the Group for capital
expenditure, product development, marketing, etc. –6,250 –7,468 –6,662
Distributed to stakeholders 27,037 29,848 30,709
Employees Salaries 17,154 19,408 20,330
Employer contributions 5,605 6,323 6,483
Public sector Taxes 2,215 2,448 1,465
Credit institutions Interest payments 169 186 1,066
Shareholders Dividend payments 1,894 1,483 1,365
Value added represents the contribution made by a company’s production, i.e., the increase in value arising from manufacture, handling, etc., within the company.
It is defined as sales revenues less the costs of purchased goods and services.
Electrolux included in Dow Jones Sustainability Indexes
Electrolux is included in the Dow Jones
Sustainability World Indexes (DJSI World) and
the pan-European sustainability benchmark
(DJSI STOXX) for the fourth consecutive year.
These indexes measure sustainability on a
global basis across all market sectors and
industry groups. Electrolux is rated as leader
in the Furnishing and Appliance sectors.
At least eight other leading Socially
Responsible Investment Funds and analysts have included the
Electrolux share in their indexes, such as FTSE4Good, Innovest,
Ecobalance, Portfolio 21 and the Sustainable Business Top 20.
In 2003, value added amounted to SEK 33,287m of which 19% remained within the
Group for capital expenditure, product development, marketing, etc.