1 Corporate Social Responsibility Report 2011 High Performance Responsibly Delivered. B S H I K I A K E S S Y S K E V E S A. B. E.
2 The brands managed in Greece by BSH Ikiakes Syskeves A.B.E.
3 Contents C O N T E N T S Contents Page 3 On the Report Page 4 Message from the Management Page 6 1: COMPANY PROFILE Page History of BSH Ikiakes Syskeves A.B.E. Page Membership in Organizations and Associations Page Awards / Distinctions Page Economic Growth & Business Strategy Page Corporate Governance Page Management Structure Page Avoidance of Conflict of Interest & Internal Audit Page Risk Management Page Sustainable Development Risks and Opportunities Page 17 2: CORPORATE SOCIAL RESPONSIBILITY Page Our Corporate Principles Page Organisational structure relating to CSR issues Page The BSH Code of Conduct Page Τhe Global Comactp Page Company Stakeholders Page Dialogue with Stakeholders Page Action in the Community Page Corporate Responsibility Objectives Page 27 3: THE MARKET Page Products and Services Page Product quality and safety Page Product information Page Environmental characteristics of products Page Management of customer relations Page Responsible procurement Page 36 4: HUMAN RESOURCES Page Human resources in numbers Page Staff evaluation Page Equal opportunities and respect for human rights Page Training and development Page Additional benefits for employees Page Voluntary action by employees Page Internal communication Page Collective contracts Page Health and safety in the workplace Page 44 5: FOR THE ENVIRONMENT Page Environmental Management System Page BSH Environmental issues Page Climate change Page Environmental education and awareness-raising Page Products with limited environmental footprint Page 54 TABLES Page 56 Table of Key Performance Indicators Page 56 GRI Tables Page 57 Performance Indicators Page 58 Performance Indicators Page 63 REPORT EVALUATION FORM Page 67 3
4 4 O N T H E R E P O R T On the Report This Corporate Social Responsibility Report 2011 (covering the period 1/1/ /12/2011) is the second to be published by BSH Ikiakes Syskeves A.B.E., following last year s Report for Our Company has decided to issue a Corporate Social Responsibility Report each year. Through the medium of the Corporate Social Responsibility Report BSH Ikiakes Syskeves A.B.E. seeks, inter alia, to present its overall performance in relation to Sustainable Development and Corporate Responsibility, and to improve its dialogue with the various groups of stakeholders with which it is involved, such as employees, shareholders (parent company of BSH Group), customers, consumers, other stakeholders and all those interested in the Company or in Corporate Responsibility issues. The Report reflects the Company s commitment to operating in the Market as a socially responsible organisation. By offering clear and comprehensive information on its social and environmental responsibility activities, publicising the corporate values which contribute to its economic, environmental and social success, continually emphasizing its respect for human rights and using the Report as an integrated tool for corporate communication, the Company seeks to promote fuller involvement on the part of all its stakeholders. Scope and Boundary The Report covers the full range of issues pertaining to the Company s Economic, Environmental and Social impact, with no specific limit being placed on its scope or boundaries. It covers all activities by BSH Ikiakes Syskeves A.B.E. in Greece (production plants, administrative services, etc.), but does not include details of activities by subsidiary companies, or by any partners in joint ventures, suppliers or third parties. As the Report contains no details relating to subsidiaries of BSH Ikiakes Syskeves A.B.E., possible takeovers, sales, joint ventures with third parties and other activities of this kind, it is anticipated that it will be possible to compare data from different years. There have been no significant changes in the scope, boundaries or methods of evaluation used in this Report. Any revision of information supplied is noted and accompanied by clarification of the reasons for the change in data. There have been no significant changes in size, structure or ownership which might affect the contents of the Report. Where other cases of differentiation exist, they are referred to in the individual sections. Procedure used in determining contents The issues to be covered by the Report were determined on the basis of global research conducted by our parent company (BSH) among various stakeholders, intended to evaluate and prioritise the main issues to be included. The results of the research were combined with internal research in each area of activity of the Company leading to an inventory of the main issues.
5 O N T H E R E P O R T 5 In determining the contents of the Report account was also taken of the principles of the Global Reporting Initiative: Principle of "Stakeholder Inclusiveness" Principle of "Materiality" Principle of "Sustainability Context" Principle of "Completeness". Methodology The BSH Ikiakes Syskeves A.B.E. Corporate Social Responsibility Report 2011 has been drawn up in line with the most recent guidelines on CSR/ Sustainability Reports issued by the international Global Reporting Initiative organization (GRI G3.1 Guidelines). The Report has been compiled by a special team of officers from all involved Divisions and Departments. The main task of this team was to gather the necessary information relating to aspects of our Corporate Responsibility. The data and information presented were gathered using recording procedures followed by the Company, and from databases kept as part of the application of a range of systems. At various points where processed, non-primary data are presented, frequent reference is made to the method of calculation used, while at the same time we follow the GRI (G3.1) Guidelines. External verification For BSH Ikiakes Syskeves A.B.E., external verification is a practice which endows the Report with increased added value, and which improves its accountability to stakeholders. The Company has proceeded to commission external verification for 2 chapters of the Report (Human Resources and Environment), and intends in future to extend the practice to the other chapters. We intend to make use of the comments arising from the external verification process in order to improve the quality of future Reports. The declaration by the independent Verification Agency can be found on pages The Corporate Social Responsibility Report 2011 was produced with the support and expert guidance of the company Sustainable Development. Contact For more information, please feel free to contact: Thomas Modestou, Quality Manager and CSR Coordinator Τel: , fax: or Ζoi Zahari, Corporate Communications BSH Ikiakes Syskeves A.B.E Τel: , fax:
6 6 M e s s a g e f r o m t h e M a n a g e m e n t From the left: Mr. Manfred Normann, Mr. Byron Vargas and Mr. Eleftherios Eleftherakis Dear reader, Looking back over the past year, we can be satisfied because in 2011 we confirmed our position in the Greek household appliance market, where we are ranked first with a market share of more than 42%, and because at a time when all businesses are experiencing difficulties we achieved remarkable results in all areas of company activity. This success is due, among other things, to our full range of highly energy-efficient, environmentally friendly appliances a significant number of which are made in Greece. At a time of prolonged economic crisis, like the present, the challenge for BSH is to continue responding responsibly to the needs of its stakeholders. Fully aware of global concerns relating to environmental issues, the difficulties and business risks associated with the economic crisis, and its dramatic social consequences in Greece, in 2011 the company incorporated in the most unambiguous manner the principles of sustainable growth into its entire range of business operations and activities. We established all the necessary organisational infrastructure to make further improvements in the efficacy of our dialogue with stakeholders, and, especially, with the community at large.
7 M e s s a g e f r o m t h e M a n a g e m e n t 7 Our ambition is to manage our results in such a way as to underpin our success in the long term, without ever compromising our social license to operate. In 2011 our ongoing efforts to do business with a full sense of our responsibilities to the social and natural environment, in pursuit of sustainable growth, were recognized in a series of awards and honours, such as the gold prize of the European Business Ethics Network, the silver prize of the CR Index, the Environmental Organization and Management Award of the Greek Association of Environmental Protection Companies (PASEPPE), and many others. Our strategic priority remains the production and sale of highly energy-efficient household appliances. Studies have shown that such appliances can make a substantial contribution (up to 25%) to reducing energy consumption of buildings in Greece accounting for 40% of all energy consumption. It is unfortunate that current debate turns exclusively or almost exclusively on the meeting of energy targets from renewable sources, and much less on the possibility of reducing consumption. We need to remember that it costs three times as much to generate and distribute 1 KWh as it does to make the proportionate reduction in consumption. This is why we launched our campaign for the efficient use of natural resources in our plants and administrative departments, seeking a reduction of 25% in consumption of energy, water and other natural resources by We have the same targets for all the raw materials we use, and for their recycling and disposal, given that some of these materials are already becoming rare in the natural world and their cost has increased. As the subsidiary of a global group, BSH Ikiakes Syskeves A.B.E. is building its future on the basis of ongoing endeavours to remain a leader in recruiting, developing and retaining the best-qualified personnel. Our long-term personnel development policy and the measures we take to ensure ongoing improvement in skills and abilities allow our employees to make the most of their potential. This makes us one of the most attractive employers in the market, and we are determined to devote even more attention to managing the talents available to us and to differentiation. Both these aspirations form part of our overall strategy for sustainability. This Sustainability Report the second to be published presents and explains our objectives, our achievements and the areas in which we continue to work. It follows the guidelines of the Global Reporting Initiative (GRI) and represents our progress report as defined by the UN Global Compact. Our parent company (BSH Βosch & Siemens Hausgeräte GmbH) has signed up to the Global Compact, committing us to the promotion of responsible sustainability practices in all our areas of activity. Before the end of 2012 we too will have become members of the Greek section of the UN Global Compact. We hope you will find this Report a rich source of interesting information. We would be grateful to receive any comments or observations you may have, and for your convenience we have attached a questionnaire for you to complete and return to us. Manfred Normann Managing Director, Administration Byron Vargas Managing Director and Deputy Chairman of the Board Eleftherios Eleftherakis Managing Director Commercial
8 8 C O M P A N Y P R O F I L E 1 Corporate Social Responsibility Report 2011 COMPANY PROFILE BSH Ikiakes Syskeves A.B.E. is a member of the BSH Bosch und Siemens Hausger te GmbH Group, the largest manufacturer of household appliances in Europe. The Group stemmed from a joint venture set up in 1967 between Robert Bosch GmbH (Stuttgart) and Siemens AG (Munich), and posted annual sales of 9.7 billion Euro in The BSH Group sells large household appliances, consumer products and home technology. In the last ten years the Group has enjoyed rapid growth. It currently operates 42 plants in 13 countries in Europe, the USA, Latin America and Asia. Together with a global sales and customer service network, the BSH family is today made up of about 70 companies in 49 countries, with a total workforce of almost 45,000 people. The BSH Group is based in Munich. BSH Ikiakes Syskeves A.B.E. is headquartered in Kifissia (Athens), where its Commercial, Marketing and Central Technical Support & Customer Service departments are hosted. It operates sales branches in Thessaloniki, Crete and Cyprus, two household appliance production plants in Agios Ioannis Rentis (making refrigerators and cookers), warehouses in Aspropyrgos (Attica) and a Technical Support & Customer Service department in Cyprus. The Company also offers an extensive household appliance service network throughout Greece, with central units in Athens, Thessaloniki, Patras and Irakleio (Crete), and with authorised dealers all across the country.
9 C O M P A N Y P R O F I L E 9 The BSH Group in 2011 Toronto Irvine La Follette Mexiko City New Bern Casablanca Tel Aviv Dubai Jeddah Mumbai Chuzhou Seoul Nanjing Wuxi Hong Kong Kabinburi Bangkok Kuala Lumpur Singapore Lima São Paulo Buenos Aires Montevideo Johannesburg Melbourne Auckland 13 brands, 42 factories, ~ 45,000 employees ~ 9.7 billion Εuro in sales in 2011 ~ 70 companies in 49 countries Global sales and customer service network A leading position in Europe Oslo Stockholm Helsinki St. Petersburg Note Head Offices Subsidiaries Factories Cookers Refrigerators Dishwashers Washing machines / Dryers Small appliances Motors / Pumps Group Headquarters Subsidiaries Santander Vitoria Estella Huarte Esquiroz Zaragoza LaCartuja Montañana Lisbon Factories: Cooking Refrigeration/Freezing Dishwashing Washing/Drying Milan Ballerup Consumer Products Nauen Berlin Warsaw Milton Keynes Motors/Pumps Amsterdam Lodz Brussels Bad Neustadt Prague Luxembourg Bretten Giengen Regensburg Michalovce Paris Lipsheim Dillingen Munich Traunreut Vienna Geroldswil Budapest Nazarje Çerkezköy Bucharest Athens Kiev Istanbul Moscow
10 10 C O M P A N Y P R O F I L E Factory, Agios Ioannis Rentis Distribution Centre / Warehouses (Aspropyrgos) The Bosch and Siemens brands play a vital role in our success in the market. With its three special brands (Gaggenau, Neff, Constructa) BSH Ikiakes Syskeves A.B.E. is confident of meeting the special requirements of each customer. At the same time, the well-established Greek brand PITSOS, the top-ranking brand in the Greek market, makes up our portfolio of brand names. Our product portfolio includes both large and smaller household appliances. BSH Ikiakes Syskeves A.B.E. has a leading position in the Greek market, with a market share of over 42% in the white appliances market segment in Export activities are expanding steadily - with goods exported to European countries and Cyprus. The Company s turnover amounted to 205.9m, of which 63.8m were exports revenues. BSH Ikiakes Syskeves A.B.E. has the largest privatelyowned Consumer Service organization of all manufacturers and retailers of household appliances in Greece. Nea Kifisia: Sales, Customer Service Agios Ioannis Rentis: Factory Aspropyrgos: Distribution Centre / Warehouses Thessaloniki: Sales, Customer Service Patras: Customer Service Irakleio: Customer Service Nicosia: Sales, Customer Service
11 C O M P A N Y P R O F I L E 11 Sales, Customer Service (Kifisia) 1.1 History of BSH Ikiakes Syskeves A.B.E. The table below lists the key milestones in the history of BSH Ikiakes Syskeves A.B.E. 1865: PITSOS S.A. is founded by the Pitsos family to manufacture small home appliances and heaters 1959: The Company s new plant is built in Rentis, where it begins to produce refrigerators and oil heaters 1968: Production of black-and-white TV sets. 1974:PITSOS enters into collaboration with Siemens Hellas S.Α. 1977: Bosch und Siemens Hausgeräte GmbH and Siemens Hellas S.A. take a 60% stake in PITSOS S.A. 1986: Conclusion of agreement with Robert Bosch on distribution of home appliances in Greece. 1989: Athens plant commences production of Νο-Frost refrigerators. 1990: Athens plant commences production of cookers with Pop-up controls. 1996: Bosch, Siemens and Pitsos commence joint activities under the name BSP S.Α. 1996: Athens plant commences production of pyrolytic ovens. 1998: BSP acquires Gaggenau brand 1998: BSH Ikiakes Syskeves A.B.E. Quality Management System receives ISO9001 certification. 1998: Athens plant commences production of new Competence International Cooker range. 2000: Athens plant commences production of Inox cookers and refrigerators. 2001: BSH Ikiakes Syskeves A.B.E. Environmental Management System receives ISO14001 certification. 2002: Neff brand acquired by BSP 2002: Company name changed to BSH Ikiakes Syskeves A.B.E. 2003: Merger of Euroservice S.A. with BSH Ikiakes Syskeves A.B.E. 2003: BSH Ikiakes Syskeves A.B.E. "Recognized for Excel lence" by the EFQM. 2004: Production commences of fridgefreezers using technology with internet connection. 2005: 140th anniversary of founding of Pitsos. 2007: 40th anniversary of founding of BSH Group 2007: Athens plant commences production of new platform of free-standing InterCooker 2 ovens. 2009: Athens plant commences production of new platform of built-in InterCooker 5 ovens. 2010:Publication of first CSR Report, in accordance with Global Reporting Initiative (G3) Guidelines. 2010: Athens plant commences production of new platform of free-standing InterCooker 2.5 ovens. 2011: Launch of the first carbon neutral appliances in terms of usage at European level. 2011: External verification of compliance of BSH Ikiakes Syskeves A.B.E. Occupational Health and Safety System (OHSAS 18001:2007).
12 12 C O M P A N Y P R O F I L E 1.2 Membership in Organizations and Associations BSH Ikiakes Syskeves A.B.E. is an active member of various national and European organizations and associations: Organization Description and purpose of organization Membership Logo Hellenic Federation of Enterprises (SEV) Association of Electrical Appliance Manufacturers & Businesses (SVEIS) Hellenic-German Industrial and Commercial Chamber The Federation collectively represents its member businesses in their dealings with the other social partners and the state, promoting dialogue and the implementation of effective and mutually acceptable solutions. It makes public interventions, responsibly and supporting its positions with full documentation, in processes and developments shaping the business and economic environment, as well as social dialogue in Greece and the European Union. The Association defends and represents the interests of its sector. It carries out statistical monitoring of the Greek market, with continuing reference to business activity in respect of the volume of sales, as well as general activity in the market in question. It also seeks to harmonize statistical systems to allow the exchange of data among members. The Hellenic-German Industrial and Commercial Chamber offers its services to Greek and German businesses wishing to engage in activities or expand abroad. Member since 1977 Member since 2000 Member since 1992 APPLIANCES RECYCLING S.A. UN Global Compact The company APPLIANCES RECYCLING S.A. is the agency responsible for organizing and running the Collective System for the Alternative Management of the Waste of Electrical and Electronic Equipment in Greece. BSH (parent company) is a member of the UN Global Compact. It has signed up to the Compact and its ten governing Principles. Founding member (i.e. member since foundation of company in 2004) Member since 2004 CECED - European Committee of Domestic Equipment Manufacturers Hellenic Institute for Customer Service (ΕΙΕP) Hellenic CSR Network European Business Ethics Network (EBEN) As a member of CECED, BSH adheres to the Committee s Code of Conduct. It is a voluntary Code that responds to the desire of CECED members to make an impact and promote fair and sustainable standards for working conditions, social compliance and environmental performance. The Hellenic Institute for Customer Service (ΕΙΕP) is a not-forprofit organization, founded in The founding members of the Institute all recognized the need to upgrade and support the role of all those coming into contact directly or indirectly with the customer. The "Hellenic Network for Corporate Social Responsibility" is a network of businesses coming together to promote the meaning of Corporate Social Responsibility to both the business community and the social environment, with the overall objective being a balance between profitability and sustainable development. The mission of the Network is to promote the principles of business ethics, corporate social responsibility and corporate governance, in the private and public sectors, in the academic community and among voluntary organizations. Member since 1977 Member since 2010 Member since 2011 Member since 2011 EFQM The European Foundation for Quality Management (E.F.Q.M.) is a not-for-profit organization and the main agency in Europe providing tools and methods for the achievement of excellence in organizations of all kinds wishing to improve the results of their work. Member since 1999
13 C O M P A N Y P R O F I L E Awards /Distinctions During 2011 BSH Ikiakes Syskeves A.B.E. received the following awards and distinctions: Organization Description Logo European Business Ethics Network (EBEN), Greek Section Gold prize for excellence in business ethics for its exceptional performance in the areas Internal Auditing and Business Analysis. Hellenic Corporate Responsibility Institute (CRI) Silver prize of the Corporate Responsibility Index for exceptional performance in the area of CSR. The same organization also conferred an award on the Company in the category Working Environment. GREEN LEADER award to PITSOS for its environmental initiative relating to the first carbon neutral appliances in terms of usage at European level. Superbrand Gold Prize for brand name and awareness. Boussias Communications & E- Business Center (ΑSSΟΕ) Award to PITSOS for innovative and cutting-edge practices in the category of social networks and interactive marketing. Panhellenic Association of Environmental Protection Companies (PASEPPE)) Award for organization and administration of environmental issues, in accordance with international standards and specifications. 1.4 Economic Growth and Business Strategy In 2011 the turnover of BSH Ikiakes Syskeves A.B.E. amounted to 205.9m, 15.17% down on the previous year. Gross profits of 49.2m were recorded, compared with 63.9m in 2010, while profits before interest, taxes, depreciation and amortization (EBITDA) were up by 289%, amounting to 6.3m compared to 2.2m in Net profits after tax amounted to 3.6m, an increase of 106.1% over The Company paid employer s contributions to the Greek state in the order of 9.7m in Our Business Strategy BSH indisputably one of the world s leading companies in the production of home appliances has managed to associate its name with the concepts of innovation, quality and reliability. Moreover, it occupies a leading place in the Greek market, while its exports of high-quality products made in Greece are now expanding to more European and Asian countries. The Company s strategy is based on the principles of sustainability and corporate responsibility, pursuing added value for shareholders, workforce and the community at large. Sustainability is an integral element of corporate strategy, structure and organization, and of our corporate principles. Two of the key pillars underpinning the above are the confidence and trust which characterize our relations with customers and stakeholders. We are continually seeking to improve our strengths, and to minimize the risks to which we are exposed. The long-term sustainable development of the Company is closely linked to the meeting of environmental and social requirements. Our strategic objectives for the next three years, , are as follows: Retention of our leading position in the market for large home appliances. Further penetration and improvement of our share in the market for smaller appliances. Maintaining healthy profits.
14 14 C O M P A N Y P R O F I L E Increasing exports and reducing production dependence on the Greek market. Minimizing business and financial risks. Improving communication with stakeholders in corporate responsibility issues. Product innovation - through development of environmentally friendly products. 1.5 Corporate Governance BSH Ikiakes Syskeves A.B.E. has adopted practices of responsible internal operation and corporate governance based on the requirements in force at the international level. The Company s system of corporate governance is designed to ensure transparent, sound and effective administration of the Company, leading in the long term to business and financial success. Moreover, the corporate governance practices adopted by BSH Ikiakes Syskeves A.B.E. in its administrative and operational methods are in full compliance with the current statutory framework, and all relevant specifications laid down have been taken into account. The Board of Directors The senior governing body of BSH Ikiakes Syskeves A.B.E. is the Board of Directors, which consists of nine members in all, of whom six are non-executive members. There are no independent members on the Board. In general terms the Board is responsible for the administration and representation of the business. The Board of the Company keeps open ongoing channels of communication as a body and as individuals with the Company workforce and the parent company. Moreover, there is structured and direct communication with the shareholders at the General Meeting, while in respect of communication with the workforce there is an employees union which communicates with the executive members of the Board. At BSH Ikiakes Syskeves A.B.E. the roles of the Board Chairman and Managing Director are kept separate, while the Chairman is not an executive member of the Board, so that administrative duties are properly separated and the transparency of the business is preserved and strengthened. The main duty of the Chairman of the Board is to convene and chair the Board meetings. Members of the Board are elected by the General Meeting of Shareholders, which chooses those candidates it regards as most suitable for the responsible exercise of administrative duties. The executive members of the Board Name Office Executive Member Non-Executive Member Winfried Seitz Chairman of the Board Byron Vargas Deputy Chairman and Managing Director Eleftherios Eleftherakis Managing Director Manfred Normann Managing Director Konstantinos Bobis Board Member Panos Xynis Board Member Thomas Baader Board Member Christian Prenzel Board Member Charalambos Pergantis Board Member Note: Five members of the Board are German nationals; the other members are Greek. Age and gender distribution of Board members Gender Board Members < >50 Female Male Total
15 C O M P A N Y P R O F I L E 15 are evaluated by the General Meeting on the basis of the relevant targets that have been set. Moreover, the evaluation criteria include criteria from all the various pillars of corporate responsibility (Administration, Market, Environment, Society). The senior governing body is kept briefed on corporate responsibility issues; specifically, the coordinator of corporate responsibility issues reports to the Deputy Chairman of the Board, Mr. Byron Vargas. Legal Form and Share Ownership The Company is registered in the Register of Sociétés Anonymes under the name «BSH Οικιακές Συσκευές Ανώνυμη Βιομηχανική Εταιρεία» [BSH Ikiakes Syskeves A.B.E.], trading as «BSH ΕΛΛΑΣ Α.Β.Ε.» [BSH HELLAS A.B.E.], under no. 916/01 ΑΤ/Β/86/405(2002). The following companies hold shares in BSH Ikiakes Syskeves A.B.E..: BSH HOME APPLIANCES HOLDING GmbH: 18,166,638 shares (total holding 99.99%). BSH VERMOEGENSVERWALTUNGS GmbH: 62 shares (total holding 0.01%). 1.6 Management Structure Distribution of administrative duties among the three executive members of the Board of ΒSH Ikiakes Syskeves A.B.E. is as follows: Byron Vargas Herzberg Deputy Chairman and Managing Director Technical area (Production, Development, Technical Services, Industrial Design, Quality, Projects, Corporate Responsibility, Environment, Health and Safety) Eleftherios Eleftherakis Managing Director Sales, Marketing, Advertisement Manfred Normann Managing Director Business administration (Human Resources, Finance, Customer Accounting, Creditor Accounting, Purchases, Logistics, IT, Service). BSH Ikiakes Syskeves A.B.E. Organizational Chart Board of Directors Sales, Marketing Eleftherios Eleftherakis Business administration and customer service Manfred Normann Technology Byron Vargas Herzberg White goods sales Chains White goods sales Cooperatives & independent dealers Business administration Sales Logistics Project management Product development and manufacture Sales of small appliances Procurement Industrial design Sales Cyprus Financial Division and Accounting Office Quality Environment & Safety CSR Marketing Human resources Technical Services IT Customer service
16 16 C O M P A N Y P R O F I L E 1.7 Avoidance of Conflict of Interest & Internal Audit Avoidance of Conflict of Interest A range of procedures is in place to ensure conflicts of interest are avoided, ensuring there can be no such conflicts between the interests of the Board, the executives and other employees, and the Company. Specifically, the Business Conduct Guidelines include conditions and commitments which must be followed and implemented in order to avoid conflicts of interest, and in the general objective of safeguarding transparency. For details visit: (file: Business Conduct Guidelines ) Internal Audit BSH Ikiakes Syskeves A.B.E. has adopted a comprehensive system of independent and objective inspections, including inspections by the Group s head offices, external inspections and internal inspections of management systems, processes, departments and suppliers. The independence of the inspectors is guaranteed by internal guidelines and the results of the inspections are forwarded directly to the administration. The performance of the management systems is regularly reviewed by the Company administration. Every manager is expected to make sure his staff understand that infringements of legislation or other regulations and directives are unacceptable and will entail disciplinary sanctions as defined in employment contracts and regulations and in labour law. It should be noted that any employee suspecting illegal activities can file an official or anonymous report with either the Company s Compliance Officer or the Ombudsman appointed by the Group s Global Compliance Office. The internal auditors are inspected and checked by the Group s head offices, and by accredited external organizations (Deloitte, VDE, DQS etc.) 1.8 Risk Management Our ambition in Risk Management is to preserve an acceptable balance between risks and opportunities, always acting in a socially and environmentally responsible way. Our objective is to prevent or even eliminate risks, and to design and implement a range of measures which will ensure timely and reliable warning of potential risks. To this end the Company has issued a series of internal directives relating to: Assessment of possible errors and their impact. Forms for reporting and/or assessing possible risks. Business continuity plans. Crisis management plans Special forecasts for briefing and notification in case of crises. These forecasts, and the corresponding preventive measures, are adopted whenever a process, facility or significant parameter is introduced or changed, and when such introduction or change might affect the safety of our operations. The main risks identified and the possible impacts which the company seeks to minimize are as follows: Natural disasters (e.g. earthquake) Fire Occupational risks Environmental risks Risks from unique suppliers Credit risks Tax/customs risks.
17 C O M P A N Y P R O F I L E Sustainable Development Risks and Opportunities Compliance with the law is a cornerstone of the corporate principles of BSH Ikiakes Syskeves A.B.E.: Wherever we operate, our actions are in accordance with the law and with the principles set out in the United Nations Global Compact in relation to human rights, labour relations environmental protection (see the chapter in the report on corporate responsibility our corporate principles The BSH Code of Conduct on Corporate Responsibility). As part of our programme of corporate responsibility we have identified and assessed the possible risks associated with proper adoption of the principles of sustainable development. In order to ensure effective response to these risks, but mainly to ensure the effective exploitation of the opportunities associated with incorporation of CSR into all our activities, we have adopted the following principles: We fully comply with the relevant national legislation and regulations, and with our own internal directives and policies. We treat our customers and partners with respect and trust. We always act in accordance with the rules of EU Competition Law. In the electrical appliance market where we do business, our competitive advantage is the quality of our products and services. We preserve and protect the confidentiality of business and personal data. We accept our responsibility for protection of the environment and implement practices designed to ensure ongoing reduction in our environmental footprint. We do our best to provide a healthy and safe working environment for our personnel, our customers, suppliers and partners. We keep open channels of communication under a system of transparency with all Company stakeholders. We speak openly of possible risks and any infringements of the rules of compliance. Combating corruption Competition and monopoly law Product responsibility Labour legislation Security of information Special issues Our objectives for 2012 For the Company to participate in the EFQM R4E assessment/ awards procedure.
18 18 C O R P O R A T E S O C I A L R E S P O N S I B I L I T Y 2 Corporate Social Responsibility Report 2011 CORPORATE SOCIAL RESPONSIBILITY The concept of corporate responsibility permeates every aspect of the philosophy, strategy and corporate principles of BSH Ikiakes Syskeves A.B.E. The Company has incorporated the principles of Corporate Social Responsibility into its business strategy and takes great pains to operate in a responsible manner. The Company s sense of responsibility can be seen at work in various areas, including finance, concern for the protection of the natural environment, employee welfare and support for the community. At a time of prolonged economic crisis, like the present, the challenge for BSH is to continue responding responsibly to the needs of its stakeholders. Fully aware of global concerns relating to environmental issues, the difficulties and business risks associated with the economic crisis, and its dramatic social consequences in Greece, in 2011 the company incorporated - in an even more unambiguous manner - the principles of sustainable growth into its strategy and corporate principles. Incorporating sustainability into corporate strategy Creation and preservation of values for Acceptable business model & social license to operate Approach along three axes Company Stakeholders Reputation Economy Environmental Protection Society Innovation Risk Management Society
19 C O R P O R A T E S O C I A L R E S P O N S I B I L I T Y 19 Our Social Product The Company makes a substantial contribution to the economic and social development of the country, generating value through its activities for all its stakeholders (through payment of direct and indirect taxes, suppliers, wages and salaries, insurance contributions, etc.). Distribution of Social Product (in m) 2011 Employee salaries/wages and benefits 23,61 Insurance contributions 9,73 Taxes paid 23,78 Payments to providers of capital 0 Total investments 4,71 Payments to suppliers 215,92 Total ( m) 277, Our Corporate Principles Our customers can trust us Every one of our brands stands for the highest quality, outstanding design and excellent service. We make every endeavor to ensure that customers (commercial dealers) and consumers around the world see our Company as a responsible, fair and trustworthy partner. We are pioneering innovators in our industry We have traditionally put quality and innovation high on the agenda, and they are the factors behind our success on the international competitive stage. We create products which make life easier and more pleasant for people all around the world, thanks to their smart technology, higher performance, greater convenience and user-friendliness. The design of our appliances sets international standards for others to follow. Employee salaries/wages and benefits 8.5% Payments to suppliers 78% Insurance contributions 3.5% Taxes paid 8.5% Total investments 1.5% Payments to providers of capital 0% Our people are the foundation of our success We regard our Company as a global network supported by open dialogue among different people from different cultures. Mutual respect, fairness in dealings with others, and partnership-based leadership which encourages achievement are all of crucial importance to us. Our long-term personnel development policy and the measures we take to ensure ongoing improvement in skills and abilities enable our employees to make the most of their potential. This makes us one of the most attractive employers in the market.
20 20 C O R P O R A T E S O C I A L R E S P O N S I B I L I T Y Donation of 25,000 worth appliances to SOS Children s Villages. We enhance the value of our Company Our business activities are directed towards profitable growth, sustainable increases in value and the long-term safeguarding of the Company as a business. We regard the nurturing and development of our parent companies brands as our mission and obligation. Through ongoing, consistent comparative evaluation, we are continually improving our position in the competitive field and providing ourselves with the freedom of action to shape our future. We bear responsibility for the environment and the society We acknowledge our social responsibility. Wherever we operate, our actions are in accordance with the law and with the principles set out in the United Nations Global Compact in relation to human rights, labour relations and environmental protection. We operate responsibly, always mindful of the need for proper management of natural resources, always following models of sustainable development. Our dealings with employees, business partners and shareholders are guided by honesty and integrity. Incorporating sustainability into our corporate principles Customers Products People Company Society Environment Our customers can trust us We are pioneering innovators in our industry Our people are the foundation of our success We enhance the value of our Company We bear responsibility for the environment and the society