Annual Report 2005/06 THE WORLD OF SOUND - Sonova

SUSTAINABILITYPhonak’s management strongly believes that striving fortrue economic success ultimately requires taking intoaccount the needs and expectations of all relevant stakeholders.The Board of Directors is totally independent and consistsof well respected, very senior executives. Their professionalism,integrity, and reputation guarantee that the tasksand responsibilities of the Board of Directors are executedin the interest of the shareholders.Phonak’s unique corporate culture makes it an exceptionallyattractive employer.Knowledge management is a core element of Phonak’smanagement philosophy: there are no barriers, no closeddoors; employees can contact anybody at any time.Over 750 employees already own shares in Phonak throughvarious employee share option programs.Our customers buy a better quality of life. We constantlystrive for technological innovations, which can solve everydayproblems of people suffering from hearing impairment.Over several decades, Phonak has built up an excellent reputationfor its high-quality and high-performance hearinginstruments.The quantity of raw materials going into Phonak’s annualhearing instruments output equals approximately threepassenger cars. The energy consumption of the productionprocesses is also very modest.The Phonak Group specializes in the development, manufacture,and worldwide distribution of technologically advancedhearing systems for adults and children with hearing impairment.Inherent in the Group’s business activities is a fundamentalcommitment to improve individual hearing ability and speechunderstanding, thus contributing significantly to the quality oflife of countless people worldwide.Phonak’s management strongly believes that striving fortrue economic success ultimately requires taking into accountthe needs and expectations of all relevant stakeholders.Phonak’s enduring success story is based on particular respectfor employees, a close relationship with customers, and a veryconstructive partnership with suppliers. Phonak’s unique, innovativeand powerful hearing instruments are the result of thisteamwork. Finally, being economically successful allows Phonakto pass on attractive returns to its owners, i.e. the shareholdersand to help those who are less fortunate.This well-balanced approach, which considers all stakeholders,is observable throughout the company and is reflectedin Phonak’s core values. Working at Phonak is best characterizedby flat hierarchical structures, equal treatment of employees,responsibility for one’s own actions, transparent CorporateGovernance, and open communication with all stakeholders. Tosustain and further develop this strong corporate culture isone of management’s top priorities and a driver for sustainableeconomic success.Phonak’s rapid growth and business expansion have madeit important to set down in writing the core values we upholdand the ethical principles of our corporate culture, so that theyare more readily accessible to our employees. The result is agroupwide Code of Conduct, which came into force on April 1,2006. The purpose of the Code of Conduct is to encourageemployees to act in an ethically correct way in their dealingswith colleagues, business partners, and shareholders, as wellas to help them live out our unique corporate culture in ourworldwide operations. As a globally active company, the PhonakGroup is fully aware of its responsibility for every individualmember of staff. Not only does ethical conduct benefit all stakeholders– it also assures and strengthens our reputation andthereby contributes to our long-term commercial success.Employees – our principal assetThe hearing instrument industry is not a capital-intensivebusiness, but driven by constant product and service innovation.Thus, motivated, dedicated, and creative employees makea big difference and we must support them as best we can.To safeguard our long-term success, we consistently investin the professional training and development of our staff. In2005/06, a total of 881 employees took part in training andprofessional development courses. This is roughly equivalent to36Sustainability