Pdf version (3.2 MB) - Kesko

ECONOMIC REsPONsIBILITy
The purchases of goods by the Kesko Group’s Finnish companies
totalled €6,737 million. Of these purchases, 80.2% were from suppliers
operating in Finland and 19.8% from other countries. It should
be noted that because some of the suppliers operating in Finland
are import companies, reliable statistics cannot be compiled on the
origin of goods supplied by them.
Kesko actively increases the amount of local purchases and encourages
K-retailers to include locally produced products in their selections.
In 2011, K-retailers’ direct purchases from Finnish regions
totalled €563 million (see table on page 69).
CApitAl expenditURe
In 2011, Kesko's capital expenditure totalled €425 million (€325
million), or 4.5% of net sales (3.7% in 2010). Capital expenditure
on store sites was €361.8 (€209.2 million). Capital expenditure in
foreign operations accounted for 31.7% (13.1%) of the total capital
expenditure.
In addition to Kesko, K-retailers annually make capital expenditures
on the building or reconstruction of stores used by the
K-Group. These included, the total capital expenditure in Finland
was around €434 million (€351 million) in 2011.
Kesko’s capital expenditure has a positive financial impact on the
operations of building firms, building sector service companies,
and suppliers of fixtures, equipment and information systems, for
example.
PROCEDURES FOR LOCAL HIRING, EC7
Kesko recruits local expertise and aims to cover a wide diversity of
candidates for job openings, including management and middle
management positions. Kesko compiles statistics on recruitment by
country. In 2011, all of Kesko’s top and middle management positions
in Finland were held by Finnish citizens.
70
Kesko Corporate Responsibility Report 2011
In the other operating countries, over 99% of the top and middle
management positions were held by local people.
INFRASTRUCTURE INvESTMENTS AND SERvICES
PROvIDED FOR PUBLIC BENEFIT, EC8
During the reporting period, Kesko itself did not make any infrastructure
investments for public benefit referred to in the GRI.
Instead, Kesko made contributions to the public good in donations
and through its business partners. At the national level in all of
its operating countries, Kesko supports initiatives promoting, for
example, science, research and education, youth work, sports, as
well as the operations of non-governmental and environmental
organisations. Kesko especially supports projects for the wellbeing
of families with children.
The reduction in the support in 2011 is due to the donations to a
number of universities granted by the Board in spring 2010. Read
more about donations on pages 13, 15 and 37.
Kesko's support for the public good
2011 2010 2009
€1,000 1,072 2,253 1,508
SIGNIFICANT INDIRECT ECONOMIC IMPACTS,
INCLUDING THE ExTENT OF IMPACTS, EC9
Kesko’s measurable indirect impact on society, such as employment
impact, increased municipal tax income, or income in the producer
and supplier chain, must be evaluated case by case, in connection
with the establishment of a new store, for example. See, for example,
the table for the economic benefit generated by Kesko and K-retailers
to Finnish provinces in 2011.
Read more about impacts on society on pages 12–17.