Electrolux 2005 Annual Report Download - page 106
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Please find page 106 of the 2005 Electrolux annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.102 Electrolux Annual Report 2005
Sustainability
Sustainability is a central element of the Group’s overall business
strategy. It is integrated in all phases of Group operations, from
product development and manufacturing to marketing and consumer
communication.
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, risk management and transparency in
both internal and external reporting.
Electrolux has decided to operate its business in an environmen-
tally, socially and ethically responsible way. A proactive strategy in
this context reduces risk, enhances positive brand awareness,
strengthens employee satisfaction and ensures good relations with
local communities in which the Group operates. The below diagram
illustrates the Group’s key stakeholders.
Electrolux
Create sustainable long-term value for shareholders
Shareholders
and investors
Suppliers
Be the employer of
choice in all regions
Be a good corporate citizen
Understand consumer needs,
build long-term consumer
satisfaction and trust
Employees Consumers
Retailers and
customers
Governments
and local
communities Understand retailer/customer needs,
build long-term partnerships for joint
value creation
Work closely with suppliers for joint value creation through
cost reductions and accelerated product innovations
Key stakeholders
Distribution of Group revenue
In 2005, value added amounted to SEK 26,636 m.
Cost of goods and services 76.7%
Capital expenditures, R&D, marketing 2.7%
Salaries 13.2%
Employee contribution 4.2%
Taxes 1.1%
Interest payments 0.6%
Dividend payments 1.6%
Distribution of value added, by stakeholder
The Electrolux Group contributes to the social and economic devel-
opment of the societies in which it operates throughout the world.
The table below shows the value added that is generated by the
Group and its distribution among stakeholders.
Stakeholder 2005 2004 2003
Customers Revenues 129,469 120,651 124,077
Suppliers Cost of goods
and services –99,333 –89,896 –90,790
Value added 30,136 30,755 33,287
Capital expenditure,
R&D, marketing, etc. –3,500 –4,546 –6,250
Distributed to stakeholders: 26,636 26,209 27,037
Employees Salaries 17,033 17,014 17,154
Employer contributions 5,388 5,642 5,605
Public sector Taxes 1,450 1,205 2,215
Credit institutions Interest payments 727 355 169
Shareholders Dividend payments 2,038 1,993 1,894
Value added (in SEKm) represents the contribution made by a company’s operations,
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.
Policies and organization
The Electrolux Environmental Policy and Workplace Code of Conduct
are among Group policies that support the objectives outlined in the
Group’s Code of Ethics. They are based on international instruments
such as fundamental conventions of the International Labor Organi-
zation and the OECD Guidelines for Multinational Enterprises. The
Environmental Policy and Workplace Code of Conduct have both
been adopted by Electrolux Group Management.
The complete formulations of Electrolux codes and policies,
including the Electrolux Code of Ethics, Workplace Code of
Conduct and Environmmental Policy, can be downloaded at
www.electrolux.com/codes_and_policies