Pdf version (3.2 MB) - Kesko
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President and CEO Matti Halmesmäki<br />
is a Board member of the Confederation of<br />
Finnish Industries EK and acted as the Board<br />
Deputy Chair in 2005–2011. At the beginning<br />
of 2012, he was elected the Board Chair of the<br />
Federation of Finnish Commerce.<br />
The list of <strong>Kesko</strong> employees' activities<br />
in major organisations is available at<br />
www.kesko.fi/responsibility.<br />
SPONSORSHIP FOR CHILDREN,<br />
THE yOUNG AND SUSTAINABLE<br />
DEvELOPMENT<br />
In 2011, <strong>Kesko</strong> and its subsidiaries gave<br />
financial support amounting to approximately<br />
€1.1 million to various organisations<br />
and institutions.<br />
<strong>Kesko</strong> was the main partner in Your Move,<br />
the Sports Event of 2011, organised by the<br />
Young Finland Association in Helsinki. The<br />
six-day event was targeted at young people<br />
aged 13–19 and attracted more than 42,000<br />
participants. The young participants made<br />
birdhouses in <strong>Kesko</strong>'s event tent, some of<br />
which were donated to parks in Helsinki.<br />
The theme of <strong>Kesko</strong>'s awards for sustainable<br />
development presented in 2011<br />
was materials efficiency. The prizes were<br />
directed at projects which promote sustainable<br />
production and consumption. Voluntary<br />
work and the work done with limited<br />
resources were also considered valuable.<br />
The prizes went to Dodo's urban growers,<br />
Netcycler Ltd swapping service, the<br />
'Yritetään yhdessä' (Let's make a joint effort)<br />
association, and the Small Green Workshop<br />
NY. The total amount awarded was €30,000.<br />
Rautakesko and Dodo's urban growers are<br />
cooperating in developing a 'Grow It Yourself'<br />
service. Read more on page 34.<br />
K-citymarket and Anttila donated reflectors<br />
to schoolchildren for use during the<br />
dark days of autumn, toys to the Children's<br />
KEsKO Is EXPaNdING<br />
VIGOROUsLy IN RUssIa<br />
<strong>Kesko</strong> has had building and home improvement<br />
operations in Russia since<br />
2005. At the end of 2011, there were 14<br />
K-rauta stores in Russia, and the plan is<br />
to open 11 new K-rauta stores in 2012–<br />
2015.<br />
In August 2011, <strong>Kesko</strong> acquired Intersport's<br />
Russian business operations and,<br />
at the end of the year, there were 36 Intersport<br />
stores in Russia. The aim is to double<br />
the Intersport store network by 2015.<br />
In 2012–2013, four big grocery stores<br />
will be opened in Russia: two in the<br />
St. Petersburg area and two in the Moscow<br />
area. The aim is to acquire sites for at<br />
Hospital, and women's clothing and toys<br />
for the mother and child home in Helsinki.<br />
MORE ONLINE SERvICES<br />
AND E-COMMERCE<br />
An increasingly high number of customers<br />
are searching for and comparing products<br />
and services and sharing information on the<br />
web. Customers can find detailed information<br />
about the products online, including,<br />
for example, a description of an individual<br />
product's path from a factory or farm to<br />
the store. The trading sector must be able<br />
to anticipate customers' future needs and<br />
provide the services they expect.<br />
Electronic shopping and online retailing<br />
have become key competitive factors and<br />
in all the business divisions the strategic<br />
emphasis is on their development. The<br />
objective is to be strongly present throughout<br />
customers' purchase transactions, so<br />
that customers will be able, if they wish, to<br />
use web services, from planning their purchases<br />
to using the products.<br />
<strong>Kesko</strong> has gained a strong position in<br />
online sales of home and speciality goods<br />
through the netanttila.com, kodin1.com,<br />
konebox.fi, cmstore.fi and budgetsport.fi<br />
online stores. Electronic services and e-commerce<br />
are also actively developed in the<br />
building and home improvement trade and<br />
the food trade.<br />
In December 2011, K-market Ruoholahti<br />
started to test online sales of food through<br />
k-ruokakauppa.fi. <strong>Kesko</strong> Food is also planning<br />
to establish a joint online store with<br />
the home and speciality goods trade.<br />
INTERACTION WITH CUSTOMERS<br />
IN SOCIAL MEDIA<br />
In 2011, <strong>Kesko</strong>, K-Group chains and stores<br />
became active in social media.<br />
least 10 large grocery stores in St. Petersburg<br />
and Moscow.<br />
During the planning stage of <strong>Kesko</strong><br />
Food's Russian operations, the emphasis<br />
is on the acquisition of store sites, staff<br />
recruitment and the preparation of business<br />
processes. The selection and training<br />
of the right staff is extremely important,<br />
as <strong>Kesko</strong> Food will employ thousands of<br />
Russians in the very first years. During<br />
the recruitment and induction process,<br />
it must be ensured that all new employees<br />
also commit themselves to working in<br />
line with <strong>Kesko</strong>'s values and responsibility<br />
guidelines.<br />
IMpaCT ON sOCIETy<br />
Among the building and home improvement<br />
trade's chains K-rauta, Rautia and<br />
Byggmakker maintain dialogue with customers<br />
about building and renovation as<br />
well as related products and selections.<br />
In the home and speciality goods trade,<br />
K-city market and Anttila chains' Facebook<br />
sites became some of the most visited sites<br />
in Finland in a short time.<br />
“The K-Group chains' sites and the approximately<br />
200 Facebook sites of K-stores are<br />
important channels for customer service<br />
and dialogue between store people and<br />
customers. Customers can, for example,<br />
give feedback to stores and present ideas on<br />
selections or easily get replies to their questions<br />
concerning, say, product manufacture,<br />
origins or use,” says <strong>Kesko</strong>'s Social Business<br />
Director Anne Laakso.<br />
<strong>Kesko</strong> also publishes news and has<br />
dialogue with its stakeholders via Twitter,<br />
LinkedIn and <strong>Kesko</strong>'s Facebook site.<br />
The social media channels have also been<br />
increasingly introduced for providing information<br />
on vacancies.<br />
“Our own employees should not be forgotten<br />
in social media,” Anne Laakso points<br />
out and continues: “In addition to <strong>Kesko</strong>'s<br />
intranet, the social media tool Yammer is<br />
provided for <strong>Kesko</strong> employees as an internal<br />
channel for exchanging news on current<br />
issues, finding the best information and<br />
receiving comments from fellow employees.<br />
While going social in business changes<br />
the way customers and companies communicate<br />
with each other, it also changes<br />
companies' internal operating models, job<br />
descriptions, interaction and the speed of<br />
information flow.”<br />
“<strong>Kesko</strong> Food's country director for Russia<br />
is a Finn who knows well <strong>Kesko</strong> and its<br />
operating principles, but nearly all other<br />
management board members are experienced<br />
Russian retailing professionals.<br />
General Director Oleg buyalski has<br />
long experience of management duties<br />
at Auchan and Lenta in Russia. By recruiting<br />
Russian employees, we want to ensure<br />
a good understanding of local customer<br />
needs, cooperation partners and the operating<br />
environment,” says <strong>Kesko</strong> Food's<br />
President Terho Kalliokoski.<br />
<strong>Kesko</strong> Corporate Responsibility Report 2011 15