Philips 2009 Annual Report Download - page 222

ISO 14001 certification
as a % of all reporting organizations
2006 2007 2008 2009
Philips Group 92 90 95 92
Incidents
In 2009, nine incidents were reported by Healthcare, Consumer
Lifestyle and Lighting in the following five categories. They were related
to water (two), restricted substances (two), hazardous substances
(one), soil (one) and fire (three).
No fines were reported by our industrial sites in our EcoVision system.
13.4 Social indicators
Engagement
In September Philips employees took the Engagement Survey, giving
their answers to 43 questions on leadership, management capabilities,
alignment with the company’s vision, identification with the brand,
communication, reward and recognition, diversity and inclusion, and
sustainability. Given the difficult times we are pleased that the
participation rate increased to 91% compared to 90% in 2008.
Engagement Index
The Employee Engagement Index (EEI) is the single measure of the
overall level of employee engagement at Philips. It is a combination of
perceptions and attitudes related to employee satisfaction,
commitment and advocacy.
Employee Engagement Index
2006 2007 2008 2009
% favorable 61 64 69 68
% neutral 21 20 17 18
% unfavorable 18 16 14 14
The EEI fell one point to 68% in 2009 compared with 2008, two points
short of our target of 70% for 2009. While this slight reversal is
disappointing, we are encouraged that our engagement levels remain
high despite such difficult times, and have in fact improved in several of
our businesses. The target for 2010 is 70% favorable (High-Performance
norm).
According to our engagement survey partner Kenexa, “Organizations
that maintain Engagement levels in these economic times have leaders
who practice transparent communication and managers who create an
environment of trust and cooperation.”
In the coming years, we will continue to review and update our targets
by using the High-Performance norm – the score achieved by the top
20% of companies from Kenexa’s database.
People Leadership Index
Because managers contribute significantly to the engagement of their
employees, we have developed the People Leadership Index (PLI),
which focuses on overall people leadership effectiveness. Our PLI –
measuring 10 aspects relating to management capabilities – continued
to increase, rising four percentage points to 73% in 2009 up from 69% in
2008. This is encouraging, as it shows that our efforts to improve our
managers’ leadership skills are working.
A look at the results
Over the years we have created a solid platform for engagement by
improving our leaders’ people management capabilities. Analyzing a
number of high performing units, we learned that significant
improvements are possible and how this can be achieved. One of the
key drivers for improvement is direct managers taking ownership,
openly discussing issues and following up to resolve them. Successful
managers also know how to connect our people with the long-term
ambition of Philips.
Follow-up is key
There is still a way to go. Overall we will step up efforts to connect
employees with the Philips direction. In some identified units we will
further strengthen the engaging role of managers. As always we will
stimulate all managers to discuss the findings with their employees.
Additionally, we will integrate follow-up actions into the strategy
review sessions where required.
Diversity and inclusion
Knowing diversity enables us to better serve our customers we
continue to focus on increasing the opportunities for women and other
under-represented groups in key positions, and on developing a diverse
talent pipeline. In 2009, Philips employed 35% females, one point up
compared to last year.
Workforce diversity
in % ■-Female--■-Male
100
80
60
40
20
0
43
57
Staff
27
73
Professionals
16
84
Management
10
90
Executives
as a % of total executives
2006 2007 2008 2009
Female executives 6 8 10 10
Executives
While the percentage of female executives across Philips remained
unchanged in 2009 (at 10%), we aim to increase that number to 15% by
2012 and see a number of positive results in our diversity and inclusion
efforts. Of the 60 newly appointed executives, 17% were female, while
the percentage of executives with BRIC nationality stood at 5%. We are
committed to increasing the number of talented local people in key
positions in growth markets.
Overall, the 593 Philips executives at year-end represented more than
30 nationalities.
Talent pool
Illustrating our commitment to talent development, 73% of the
executives appointed in 2009 were promotions.
The percentage of women in the top potential pool remained stable,
with women representing 23% of the top potentials and 29% of the high
potentials.
The percentage of top potentials with BRIC nationality stood at 10%,
with high potentials at 17%.
A closer look
In terms of age, 71% of our female employees and 62% of our male
employees are under 45. The percentage of women who joined the
company in 2009 was slightly higher than that of women who left Philips.
13 Sustainability performance 13.3 - 13.4
222 Philips Annual Report 2009