Pdf version (3.2 MB) - Kesko
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ECONOMIC REsPONsIBILITy<br />
The purchases of goods by the <strong>Kesko</strong> Group’s Finnish companies<br />
totalled €6,737 million. Of these purchases, 80.2% were from suppliers<br />
operating in Finland and 19.8% from other countries. It should<br />
be noted that because some of the suppliers operating in Finland<br />
are import companies, reliable statistics cannot be compiled on the<br />
origin of goods supplied by them.<br />
<strong>Kesko</strong> actively increases the amount of local purchases and encourages<br />
K-retailers to include locally produced products in their selections.<br />
In 2011, K-retailers’ direct purchases from Finnish regions<br />
totalled €563 million (see table on page 69).<br />
CApitAl expenditURe<br />
In 2011, <strong>Kesko</strong>'s capital expenditure totalled €425 million (€325<br />
million), or 4.5% of net sales (3.7% in 2010). Capital expenditure<br />
on store sites was €361.8 (€209.2 million). Capital expenditure in<br />
foreign operations accounted for 31.7% (13.1%) of the total capital<br />
expenditure.<br />
In addition to <strong>Kesko</strong>, K-retailers annually make capital expenditures<br />
on the building or reconstruction of stores used by the<br />
K-Group. These included, the total capital expenditure in Finland<br />
was around €434 million (€351 million) in 2011.<br />
<strong>Kesko</strong>’s capital expenditure has a positive financial impact on the<br />
operations of building firms, building sector service companies,<br />
and suppliers of fixtures, equipment and information systems, for<br />
example.<br />
PROCEDURES FOR LOCAL HIRING, EC7<br />
<strong>Kesko</strong> recruits local expertise and aims to cover a wide diversity of<br />
candidates for job openings, including management and middle<br />
management positions. <strong>Kesko</strong> compiles statistics on recruitment by<br />
country. In 2011, all of <strong>Kesko</strong>’s top and middle management positions<br />
in Finland were held by Finnish citizens.<br />
70<br />
<strong>Kesko</strong> Corporate Responsibility Report 2011<br />
In the other operating countries, over 99% of the top and middle<br />
management positions were held by local people.<br />
INFRASTRUCTURE INvESTMENTS AND SERvICES<br />
PROvIDED FOR PUBLIC BENEFIT, EC8<br />
During the reporting period, <strong>Kesko</strong> itself did not make any infrastructure<br />
investments for public benefit referred to in the GRI.<br />
Instead, <strong>Kesko</strong> made contributions to the public good in donations<br />
and through its business partners. At the national level in all of<br />
its operating countries, <strong>Kesko</strong> supports initiatives promoting, for<br />
example, science, research and education, youth work, sports, as<br />
well as the operations of non-governmental and environmental<br />
organisations. <strong>Kesko</strong> especially supports projects for the wellbeing<br />
of families with children.<br />
The reduction in the support in 2011 is due to the donations to a<br />
number of universities granted by the Board in spring 2010. Read<br />
more about donations on pages 13, 15 and 37.<br />
<strong>Kesko</strong>'s support for the public good<br />
2011 2010 2009<br />
€1,000 1,072 2,253 1,508<br />
SIGNIFICANT INDIRECT ECONOMIC IMPACTS,<br />
INCLUDING THE ExTENT OF IMPACTS, EC9<br />
<strong>Kesko</strong>’s measurable indirect impact on society, such as employment<br />
impact, increased municipal tax income, or income in the producer<br />
and supplier chain, must be evaluated case by case, in connection<br />
with the establishment of a new store, for example. See, for example,<br />
the table for the economic benefit generated by <strong>Kesko</strong> and K-retailers<br />
to Finnish provinces in 2011.<br />
Read more about impacts on society on pages 12–17.