APC 2006 Annual Report Download - page 84

Business review
Employment opportunities
for disabled workers
In 2006, Schneider Electric pursued its policy to bring
disabled individuals into the workforce, with a focus on
direct employment. This ongoing commitment dates
back to 1985.
In France, disabled employees made up 5.38% of the
workforce in France in accordance with new legislation
(2.38% direct jobs and 3% via subcontractors), for a
total of 326 team members.
Diversity and temporary agencies
During the year, Schneider Electric reviewed the situa-
tion of temporary employees with Adecco. A survey on
preventing discrimination and promoting integration
and diversity was conducted in the Adecco agencies
that work with Schneider Electric’s major sites. The
results should help both partners identify areas for
improvement and devise action plans.
Relations with
sub-contractors and suppliers
Framework
Schneider Electric makes 92% of its purchases from
3,000 suppliers and sub-contractors.
Monitoring working conditions
among sub-contractors and suppliers
Schneider Electric uses a certification process called
Schneider Supplier Quality Management to select new
suppliers. The process is based on a questionnaire
comprising nine sections, one of which concerns the
environment and sustainable development. The Group
evaluates suppliers’ performance in the areas of labor
relations, social accountability (SA8000), environmen-
tal protection (ISO 14001), compliance with the
Restriction of Hazardous Substances (RoHS) directive
and support for the Global Compact. In 2006, the
questionnaire was used to evaluate 350 new suppliers,
primarily in emerging markets.
Improving working conditions
among sub-contractors and suppliers
Support for the Global Compact is a major criterion in
the selection of key suppliers. This approach helps
encourage suppliers to meet the Compact’s objectives.
Training for purchasing teams
As part of the program to internationalize the purchas-
ing function, the Group continued to recruit and devel-
op skills in emerging markets during the year, primari-
ly in Asia and Eastern Europe. Training new team
members in internal processes and methods is critical
to maintaining a uniform purchasing strategy world-
wide. In 2006, the training programs were adjusted to
meet the challenges of internationalization. They
include a section on the Group’s commitment within
the Global Compact.
These measures produced tangible results in 2006,
with the percentage of purchases from Global Com-
pact signatories rising to 16%from 12% in 2005.
Community outreach
Framework
Schneider Electric’s long-term commitment to helping
unskilled young people has expanded rapidly with sup-
port from the Schneider Electric Youth Opportunities
Foundation. The Foundation has backed real-world,
lasting projects that promote education, training and
mentoring since 1998 and encouraged Schneider
Electric employees to participate.
(See p. 84 "Impact on regional development and com-
munity relations".
Type of purchases
( € million) 2006
Raw materials 1,600
Electronic components 1,500
Manufactured components 1,800
MRO purchases 2,200
Breakdown by region
( € million) 2006
Europe 3,600
Americas 1,500
Asia-Pacific 1,500
Rest of the World 500
Improvement plans -
Planet & Society Barometer
Donate 1 million worth of Schneider Electric
equipment. 2005 2006
Rating 3/ 10 10/10
Ensure that 90% of our sites have a lasting
commitment with the Schneider Electric Foundations
in the area of youth opportunities.
2005 2006
Rating 7 / 10 7 / 10
82
Improvement plans –
Planet & Society Barometer
Make 60% of total purchases from suppliers
who support the Global Compact.
2005 2006
Rating 2 / 10 2.66 / 10
Performance 12% 16%