Pdf version (3.2 MB) - Kesko

REspONsIbIlITy IN day-TO-day aCTIVITIEs
stakeholders ranging from non-governmental
organisations to suppliers of goods. A
total of about 60 people participated in the
discussions, bringing up suggestions of
issues to be included in the future responsibility
programme: customer inclusion,
carbon footprint labels on products, training
of sales assistants and increasing the
responsibility information made available
to customers in stores.
In late 2011, Kesko's Legal Affairs, Risk
Management and Internal Audit organised
a series of value discussions on Kesko's
responsible working principles for the divisions'
managements and other key people in
Finland. The special theme was combating
bribery. In the previous year, value discussions
were arranged in Sweden, Norway,
Estonia, Latvia, Lithuania, Russia and Belarus.
Read more on page 14.
Kesko is active in many national and
international organisations and seeks to
impact the developments in its business
sector. The most significant channels of
influence can be read at www.kesko.fi/
responsibility.
Kesko has prepared a process description
of stakeholder cooperation (see page 53) to
facilitate the analysis and planning of the
cooperation. Stakeholders’ expectations of
Kesko, Kesko’s actions to meet these expectations,
and indicators measuring the performance
are described in the stakeholder
group analysis of the Group’s responsibility
work available at www.kesko.fi/
responsibility. The divisions also use their
specific stakeholder analyses.
GENERAL OPERATING PRINCIPLES
GUIDING RESPONSIBILITy
Kesko’s Corporate Management Board has
approved the Group’s general corporate
responsibility principles. These principles
define the basic economic, social and environmental
responsibility promises, and
related communication principles. Kesko’s
commitments to international declarations
and conventions are also included
in the principles. The most important of
them are the UN Universal Declaration of
Human Rights and the UN Convention of
the Rights of the Child, the ILO convention
on the Fundamental Rights and Principles
at Work, the OECD Guidelines for Multinational
Corporations, the ICC Business
Charter for Sustainable Development and
principles against corruption and bribery,
the UN Global Compact initiative, and the
purchasing principles of the Business Social
Compliance Initiative (BSCI). Kesko has used
the ISO 26000 standard as a source document
that offers orientation to corporate
responsibility. The Board of the K-Retailers’
Association has recommended that Kesko’s
principles be also followed by K-stores.
54
Kesko Corporate Responsibility Report 2011
Kesko’s corporate responsibility principles
can be read at www.kesko.fi/responsibility.
Kesko’s general corporate responsibility
principles are complemented by
more detailed policies, principles, stands
and statements. They are listed in the guide
'Our Responsible Working Principles' and at
www.kesko.fi/responsibility.
Kesko reports on economic, environmental
and social responsibility in compliance
with the GRI guidelines version 3.0.
RESPONSIBILITy STEERING
Economic responsibility
At Kesko, economic responsibility refers
to the good management of finances, the
efficient use of resources, as well as generating
stable, long-term economic benefits
to different stakeholders. Financial results
must be achieved in responsible ways – supported
by good corporate governance, open
communications and effective stakeholder
interaction, while taking environmental and
social responsibility into account.
General management of economic
responsibility is complemented by corporate
governance principles, risk management
and internal audit principles, Kesko’s
ethical purchasing principles, as well as
other practices and guidelines for product
and service purchases.
Environmental responsibility
Environmental management is part of
the K-Group’s management system. The
K-Group’s environmental management is
based on the ICC Business Charter for Sustainable
Development, environmental management
standards, as well as requirements
set by legislation and the authorities. Kesko
is also committed to observe the UN Global
Compact principles.
The Kesko Group’s Corporate Responsibility
Advisory Board defines the main policies
for environmental work and the target levels
for the Group companies, taking account
of the environmental impacts of operations
and their significance throughout the
whole life cycle and chain of functions. The
division parent companies and subsidiaries
specify the main policies of their environmental
work into environmental action
programmes which support their business
operations. The action programmes are
monitored and updated annually as part of
strategy work.
Mitigating climate change resulting from
energy consumption is one of the key principles
in Kesko’s environmental work. Preventing
the generation of waste, increasing
the recovery rate and recycling of materials
are the means by which Kesko reduces the
amount of waste at landfills. According to
Kesko's business system, retailer entrepre-
neurs are responsible for wastage management
in K-stores.
The K-Group’s environmental policy,
updated in 2011, covers the operations of the
Kesko Group and the K-Group stores both in
Finland and the other operating countries.
The K-Group’s key business partners are also
expected to observe corresponding environmental
management principles.
Social responsibility
Kesko’s HR management is based on Kesko's
values and responsible operating practices.
The guide ‘Our Responsible Working Principles’
can be read at www.kesko.fi.
The HR policy defines the permanent
operating principles to be followed in dealing
with personnel issues. These principles
are guided by Kesko's values and the principles
defined in the guide ‘Our Responsible
Working Principles’. The HR policy is
complemented by the guidelines for the
HR operations.
The HR strategy defines HR management
objectives and key development initiatives.
The Corporate HR Unit is responsible
for defining the HR strategy as part of the
annual Kesko Group strategy process. The
HR Steering Group monitors and promotes
the implementation of the HR principles
and HR strategy. Division parent companies
and subsidiaries can also establish complementary
guidelines to support the achievement
of their business objectives.
Occupational safety management has
been defined in Kesko Corporation’s labour
protection programme. Labour protection is
part of the line organisation’s normal management
and leadership work, and each
superior is responsible for labour protection
in his/her area.
Kesko’s occupational health care action
plan defines the overall contents and objectives
of occupational health care. The Chief
Physician is in charge of the occupational
health services.
Communities
In Kesko's operations, impacts on communities
are assessed as part of the development
of the store network. Establishing a new
store, or expanding or changing an existing
one involves various statutory reports and
hearings of local inhabitants and operators
both at the town plan and construction permit
phases, depending on the extent of the
project. Reports take a stand on the project's
impacts on the community structure, traffic
and employment.
Public policy
Kesko plays an active role in trade and
industry organisations in Finland and in
the European Union, contributing its expertise
to social development and legislative