Vision of Corporate Responsibility

 
3/31/2010

Corporate responsibility at Kesko is uncompelled, measurable work, based on the corporate values, policies, objectives and strategy.  Performance in the areas of economic, social and environmental responsibility is enhanced in accordance with the expectations of key  stakeholder groups.

Kesko's vision outlined below has been drawn up by key stakeholder groups. Kesko's Corporate Management assesses Kesko's vision approximately every other year.

 



Our thinking behind the concept of responsibility

 

A responsible approach to operations is important to Kesko for many reasons:

  • Responsibility is part of a company's competitiveness, and is a factor in competing for investors, employees, and customers
  • Stakeholders evaluate a company's performance using other indicators than purely economic ones
  • Responsible management is better management, and aims at a good working environment in which environmental efficiency means cost efficiency
  • Good performance in terms of environmental and social responsibility can improve economic performance
  • Good economic performance creates opportunities for improving environmental and social responsibility
  • Responsibility improves corporate image if a company is seen as a pioneer
  • Responsibility involves reputation risk management, which secures the stable development of sales, profitability and share value


Shareholders/investors

Kesko's general principles for corporate responsibility state that good fi nancial performance must be achieved in a responsible way.

Kesko wants to be listed in the major sustainability indexes that are recognised as impartial indicators of responsible performance. Inclusion in such  indexes helps reinforce Kesko's standing with existing shareholders and attracts the attention of investors who value responsible corporate  behaviour. High scoring also gives us confi dence that our responsibility approach is correctly focused and our performance is world-class within the retail sector.

Personnel

Companies that offer good job satisfaction and varied responsibilities and opportunities for career progress are the most likely to succeed in attracting and maintaining the best people. Kesko's reputation as a responsible company benefits the company in its recruitment both in Finland and the neighbouring areas. This will be further highlighted in the coming years when the baby-boomers' generation will retire.


Product and service suppliers 

Comprehensive networking with suppliers of goods and services and K-retailers means that all the parties involved accept common values,  objectives and working principles. Kesko's aim is that its approach to responsibility is strongly refl ected in the K-Group's consumer brands and is also visible to consumers at store level.


Consumers

Consumer interest in corporate responsibility is continuing to increase, despite the fact that purchasing decisions are strongly based on price. Responsibility is seen as embracing high-quality products, the maintenance of services, good human resources policies and wellbeing at work, high standards of environmental protection, a proactive approach to equality, and improving the working conditions of employees in  manufacturing operations.

Kesko has a major role in shaping families' healthy way of living and overall quality of life. Offering alternatives for sustainable consumption and  balanced diet together with educating consumers on these issues is an opportunity for Kesko. We believe product safety, reliability, and ethics will gradually rival price in communications and marketing. Researchers, nongovernmental organisations, and the media can be expected to pay increasing attention to investigating any shortcomings in the supply chain helping consumers to distinguish between responsible and  irresponsible trade.


Co-operation with the authorities and other organizations

Kesko is actively monitoring and forecasting changes in society in close cooperation with its stakeholders. This is essential for preparing ourselves in emerging issues and maintaining a forerunner position. We are committed to maintaining continuous contacts and open dialogue with non-governmental organisations, the authorities, and other decision-makers. Our experts participate in a wide range of national and  international organisations in their own sector and in business in general.