Philips 2009 Annual Report Download - page 78

completed with a roll-out to approximately 30,000
employees in the US, the Netherlands and India. The
other regions and countries are scheduled for 2010.
Seven training courses were conducted in 2009 (one each
in Latin America, US/Canada and APAC, and four in
EMEA). The courses provided detailed insight into
conducting investigations.
The Compliance Officer network
We developed a new, more dedicated business ethics risk
analysis and assessment tool in 2009. The tool includes a
number of control parameters as well as internal and
external risk parameters, including a number of more
subjective parameters per country, for which the
respective GBP Country Compliance Officers were asked
to provide input.
We implemented Rules of Conduct for GBP investigations
with mandatory procedures to be adhered to in all GBP
investigations around the world. This includes a clear
distinction between local responsibility and matters
where the responsibility for investigation has to be
delegated to the respective functional owners at
corporate level.
Health and safety
In 2009 we recorded 427 Lost Workday Injuries cases,
occupational injury cases where the injured person is
unable to work the day after the injury. This is a 34%
decrease compared with 2008. The rate of Lost Workday
Injuries also decreased substantially to 0.44 per 100 FTEs,
compared with 0.68 in 2008.
Reductions were particularly realized in the Lighting
sector, which continued to make progress with a
dedicated action program started three years ago to drive
down injury levels.
Lost Workday Injuries
per 100 FTEs
1.00
0.75
0.50
0.25
0
0.78
2005
0.78
2006
0.81
2007
0.68
2008
0.44
2009
4.3.9 Supplier performance
The trend in outsourcing manufacturing activities
continued in 2009. Philips remains focused on improving
working conditions and environmental performance in its
supply chain.
Recognizing that this is a huge challenge requiring
industry-wide effort, we continue to be active in the
Electronic Industry Citizenship Coalition (EICC), whose
members share the goal to improve conditions in the
electronics supply chain. Philips also believes that
cooperation with other stakeholders, such as
governments and NGOs, is essential. Accordingly we
continue to work with our stakeholders.
Updated Supplier Sustainability Declaration
In 2009 we updated the Philips Supplier Sustainability
Declaration in accordance with the updated EICC Code
of Conduct, while maintaining the Philips appendix with
stricter requirements on freedom of association/
collective bargaining. This is in keeping with our General
Business Principles and is expected by our stakeholders.
Where freedom of association/collective bargaining is
restricted by law, we look to see if there are other means
of open communication between the supplier’s
management and workers. Our Supplier Sustainability
Declaration is an integral part of our contractual
agreement with suppliers.
2009 supplier audits
Philips conducted a record total of 858 supplier
sustainability audits to identify and solve issues in 2009.
While we have made significant improvements among our
first tier suppliers, there are still challenges to encourage
our suppliers to pass on sustainability standards to their
suppliers.
The average number of non-compliances per audit in the
risk countries (selection based on the Maplecroft Human
Rights Risk Indexes) varies between 22 in India down to 3
in Thailand and Indonesia.
Distribution of supplier audits by country
as a % of Bill of Material-related audits in risk countries
Brazil
7
China
72
Indonesia
3
India
7
Mexico
5
Thailand
3
Others
3
4 Our group performance 4.3.8 - 4.3.9
78 Philips Annual Report 2009