Pdf version (3.2 MB) - Kesko

the rating for gender equality is 4.11 (4.02) (on a scale of 1–5), age
equality 4.07 (4.00) and ethnic equality 4.19 (4.12).
At year-end, 60% (61%) of the Kesko Group employees in Finland
were female and 40% (39%) were male. In foreign companies, the
figures were 44% and 56% (46% and 54%) respectively. The figure
for 2011 does not include data for Konsoma Belarus.
In 2011, one of the seven members of the Kesko Board, and two
of the eight members of the Corporate Management Board were
women. Since 1 December 2011, the Corporate Management Board
has had four female members.
In the retail subsidiaries in Finland, a significant percentage of
supervisory positions are held by women. 81% (82%) of K-citymarket
home and speciality goods’ department managers and 69% (69%)
of Anttila department stores’ department managers are women.
RATIO OF BASIC SALARy OF MEN TO WOMEN, LA14
The average annual salary of Kesko employees was €34,534 in
Finland, €34,777 in the other Nordic countries, and €9,613 in the
Baltic countries, Russia and Belarus (OOO Johaston is included). As
the Kesko Group’ operates in many lines of business, average salary
is not a good indicator of salary level or structure.
The wage groups and tables specified in the collective trading
sector labour agreement are applied to jobs covered by the agreement,
such as sales assistants and warehouse workers. Salaries are
affected by job-based responsibility bonuses, work experience and
the cost-of-living category which depends on the locality. Besides
the role and job requirements, the salary of a senior white-collar
employee is determined by competence, work experience, performance
and results. Because of the diversity of job descriptions, it
is not possible to comprehensively compare the salaries between
genders at the Group level.
Equality in compensation is considered as part of annual company-specific
equality plans. Gender is not a factor in determining
pay levels, and no significant differences in comparable jobs have
been detected. Company-specific equality plans strive to promote
pay equality in jobs where comparisons can be made.
sOCIal REsPONsIBILITy
Human rights issues in Kesko's purchasing chain
In its operations, Kesko pays special attention to the human rights
issues and working conditions in its purchasing chain and focuses
its monitoring efforts primarily on suppliers operating in the highrisk
countries. Read about supply chain control on page 56.
High-risk countries typically produce clothing and home textiles,
shoes and other leather goods, furniture, carpets, interior decoration
products, sports equipment, toys, agricultural products (such
as coffee, tea, cocoa, fruit, vegetables, wines), and canned fish, fruit
and vegetables.
In 2011, direct purchases by Kesko’s Finnish companies from suppliers
in the high-risk regions totalled €143 million (€114 million in
2010), which is 1.8% (1.5%) of Kesko’s total purchases. Direct imports
from high-risk countries accounted for 25.6% (18.2%) of Kesko's total
imports to Finland. No statistics are available on direct imports from
the high-risk countries by Kesko's subsidiaries in other countries,
but Kesko's purchases in 2011 analysed by company's country of
domicile and by supplier's country of domicile also include purchases
from high-risk countries at a total value of €237 million (€203
million), or 2.9% (2.7%) of Kesko's total purchases. Approximately
72% (82%) of Kesko's imports to Finland (excluding imports by VV-
Auto) comes from other EU countries.
In addition to its own direct imports, Kesko also purchases goods
produced in high-risk countries from other importers operating in
Finland and through international purchasing groups. There are
no reliable statistics available on the countries of origin of these
imports, which mainly consist of international branded goods that
have been the subject of much attention in respect of assuring the
responsibility of their production in recent years. There may also
be social risks involved in the manufacture of products imported
to Finland through third countries or in the production of their
ingredients.
Ethical purchasing principles and the Steering Group for
Responsible Purchasing
Responsible purchasing is guided by Kesko's ethical purchasing
principles, which are available at www.kesko.fi/responsibility. The
principles are based on the national labour protection legislation
and corresponding conventions of the International Labour Organization
(ILO), applied when national legislation does not impose
equally hihg standards.
Kesko has a steering group for responsible purchasing, which
steers and coordinates social quality control of suppliers. The group
consists of representatives of Kesko's division parent companies
importing from high-risk countries. The steering group met three
times in 2011 and focused on purchasing policies, BSCI Committee
work, BSCI audits and related annual objectives.
Monitoring human rights and working conditions in the
purchasing chain
Kesko is a member in the European BSCI audit system, and uses
the BSCI audits and the SA8000 standard for assessing its suppliers
in high-risk countries. As a member of the BSCI, Kesko sets annual
targets for the number of audits to be conducted in suppliers' factories
in the high-risk countries. The objective is also to improve the
quality of audit results.
In cooperation with BSCI, Kesko follows other audit systems in
the market and accepts audits based on them, provided that the level
of requirements is the same as in the BSCI audit. Kesko accepts ETI,
WIETA and UTZ audits as compliant with its sourcing practices, and
other audits systems are assessed on a case-by-case basis. The table
on page 87 presents some certification and audit systems which are
applied to different product groups in Kesko.
Kesko Corporate Responsibility Report 2011 85