General principles of Kesko's corporate responsibility

 

 

 

Corporate responsibility – and behaving responsibly towards all our stakeholders – forms an integral part of Kesko's values, operational strategies, management, and everyday operations. Our goal is to improve customer satisfaction, employee satisfaction, and our competitiveness and profitability, and promote common, responsible ways of working, manage reputation-related risks effectively, and ensure that Kesko is an attractive employer. Kesko's responsibility is direct in respect of its own operations, and indirect in respect of the operations of its partners in its procurement and sales chains. Kesko monitors the performance of its operations in these areas using internationally recommended indicators, and reports on its progress openly and comprehensively. Reporting is covered by assurance statements provided by impartial third parties. 

As Kesko operates in a number of countries and buys goods from suppliers worldwide, the Group is covered not only by national legislation and agreements, but also by numerous international agreements and recommendations. These include the UN's Universal Declaration of Human Rights and Convention on the Rights of the Child, the ILO's Declaration on Fundamental Principles and Rights at Work, the OECD's Guidelines for Multinational Enterprises, and the International Chamber of Commerce's Business Charter for Sustainable Development, and the ICC's guidelines on bribery and corruption. Kesko has also committed itself to the UN's Global Compact and the challenges it contains aimed at promoting human rights, people's rights at work, environmental protection, and eliminating corruption.

 

Kesko sees maintaining a high level of corporate responsibility as contributing to the Group's competitiveness, and its operating principles exceed legislative and statutory requirements in many areas as a result. 

Kesko's approach to corporate responsibility and the indicators it uses to measure its performance here are based on the concept of 'triple bottom line management', in which financial, social, and environmental responsibility are developed in harmony and in parallel. Financial responsibility and good operational performance are essential to the ongoing, long-term development of environmental and social responsibility, which in turn create new opportunities for increasing sales and enhancing profitability. 

Financial responsibility encompasses good financial management, an efficient use of resources, and delivering a consistent, long-term economic benefit to a broad range of stakeholders.

 

A good financial result should be achieved responsibly – through good corporate governance, open communications, and effective stakeholder dialogue, and with due attention given to the requirements of environmental and social responsibility.

 

Kesko reviews the economic benefits that it provides from the standpoint of its stakeholders, the markets in which it operates, and the communities that it serves. The wellbeing of the Group's stakeholders in its markets is of prime importance, but as the extent of Kesko's international business expands Kesko will also be more involved in promoting wellbeing and prosperity outside its own markets, particularly in developing countries.

 

The products sold by Kesko, regardless of their origin, should always comply with the appropriate standards set for physical, social, and environmental quality, and product safety. 

Kesko's most significant direct areas of environmental impact are related to the emissions associated with the generation of the electricity and thermal energy used at its premises, the emissions produced by deliveries, and the waste generated during the storage of the goods it sells.

 

Indirect impact is linked to the production and packaging of the goods sold in Kesko stores, the use of these goods, and their disposal. Kesko's aim is to reduce the level of its direct environmental impact in relation to the volume of its operations on a continuous basis. The Group monitors the impact of its environmental measures on its financial result through its environmental accounting.

 

As part of efforts to reduce its indirect environment impact, Kesko promotes the sale of environmentally benign products and participates in public and private-sector R&D projects aimed at encouraging sustainable production and consumption. 

Kesko has a direct social responsibility for the wellbeing of its personnel, and an indirect social responsibility for that of the people employed by companies in its procurement and sales chain.

 

In line with its corporate values, Kesko invests in developing the quality of the workplace at Group locations and its management, with the aim of ensuring that personnel value their work and appreciate their employer and are motivated to do their job well.

 

In respect of its procurement chain, Kesko aims to ensure that the working conditions of the employees of its suppliers comply with the relevant legislative requirements and the ethical principles observed by Kesko, which are based on numerous international charters in the field. Although this goal cannot be achieved overnight, every positive step forward is one towards a more socially responsible world for all of us.

 

Kesko reports on its performance in the area of corporate responsibility to its stakeholders openly and comprehensively, using a variety of internal and external communications tools. An annual Corporate Responsibility Report, covered by an assurance statement from an impartial assurance body, forms the foundation of this communications effort.

 

Kesko participates actively in the work of national and international trade and business organisations aimed at developing responsible business practices on a voluntary basis and promoting the widespread adoption of best practices in the field.

These general principles on Kesko's corporate responsibility cover all companies in the Kesko Group, regardless of where they operate. Companies that become part of the Group through acquisitions are expected to draw up a plan on how they will incorporate these principles into their operations within 12 months of their integration.

 

These principles were approved by Kesko's Corporate Management Board on 31.1.2007. Their implementation is monitored and coordinated by a Corporate Responsibility Advisory Board, which reports on progress and performance to the Corporate Management Board annually in connection with the production of the annual Corporate Responsibility Report.

 

Kesko's general principles on corporate responsibility are supplemented by more detailed policies, principles, and guidelines drawn up at Group and divisional level covering specific areas of operations. These are outlined in the guide 'Our responsible working principles' (Kesko's Code of Conduct), which covers Kesko's principles covering responsible operations in more detail.

 

The board of the K-retailers Federation has also reviewed these principles and recommends all independent K-retailers to observe them in their operations.