Electrolux 2004 Annual Report Download - page 89

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Electrolux Annual Report 2004 85
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 main-
taining an efficient and effective organizational structure, operating
systems for internal control and risk management, and transparency
in both internal and external financial reporting.
The Group is committed to continuous improvement of energy-
efficiency, factory emissions, waste generation and handling of
hazardous materials in manufacturing and other processes, and to
design of products with high levels of environmental performance.
The Group strives to be an attractive employer, fulfilling its
responsibility for providing safe and healthy workplaces, and guar-
anteeing fair treatment for all employees.
Distribution of Group’s value added, by stakeholder
The table below shows the value added generated by the Group and its distribution among stakeholders.
SEKm 2004 2003 2002
Customers Revenues 120,651 124,077 133,150
Suppliers Cost of goods and services –89,896 –90,790 –95,834
Value added 30,755 33,287 37,316
Of which retained in the Group for capital
expenditure, product development, marketing, etc. –4,546 –6,250 –7,468
Distributed to stakeholders 26,209 27,037 29,848
Employees Salaries 17,014 17,154 19,408
Employer contributions 5,642 5,605 6,323
Public sector Taxes 1,205 2,215 2,448
Credit institutions Interest payments 355 169 186
Shareholders Dividend payments 1,993 1,894 1,483
Value added represents the contribution made by a company’s production, i.e., the increase in value generated by manufacture, handling, etc., within the company.
It is defined as sales revenues less the cost of purchased goods and services.
Electrolux key 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
Distribution of value added in 2004 Electrolux listed in Dow Jones Sustainability Index
In 2004 Electrolux was listed in the pan-
European Dow Jones Sustainability Index
(DJSI STOXX). This index measures the
sustainability of European companies across
all market sectors and industry groups.
At least eight other major socially respon-
sible 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 2004, value added amounted to SEK 30,755 m, of which 15% was retained
within the Group for capital expenditure, product development, marketing, etc.
Salaries and employer
contributions 74%
Retained in the Group 15%
Dividend payments
to shareholders 6%
Taxes 4%
Interest payments 1%