Good corporate governance and finance

Responsible business and good corporate governance are crucial for achieving good and sustainable financial results.

Topic

Objective

Progress in 2019

Plan for 2020

Return on capital

Kesko's comparable return on capital employed of 11.0%. In spring 2019, Kesko‚Äôs Board of Directors approved new medium-term financial targets for the Group. The financial targets for profitability are a comparable operating margin of 5.0% and a comparable return on capital employed of 11.0%.  We are moving strongly towards our financial targets and a better return on capital through growth, increased profitability, synergies and better working capital efficiency. In addition to growth, we continue to focus on improving cost-efficiency in all our operations to ensure competitiveness.

K Code of Conduct

 
All of our personnel act in compliance with the K Code of Conduct.  The entire personnel is obligated to annually commit to compliance with the K Code of Conduct. In 2019, 82% of personnel signed the annual confirmation. We will continue to make the annual confirmation process more systematic and promote commitment to the K Code of Conduct through managerial work, training and continuous visibility. In Finland, we will pilot the annual confirmation process as part of K Success Factors personnel system.
We organise regular training on the K Code of Conduct. In October, we published a new refresher eLearning course on the K Code of Conduct in all operating countries. A total of 4,617 employees had completed the eLearning programme by the end of 2019. We arranged K Code of Conduct sessions for Kesko in Sweden and for key persons at Kespro, focusing especially on corruption and fraud-related issues. We will continue to systematically promote the awareness of the K Code of Conduct through various actions. In addition to the longer K Code of Conduct eLearning course, we aim to publish a shorter refresher course on selected themes every two years. Communications and roll-out are supported by our active group of K Code of Conduct ambassadors.
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