Philips 2010 Annual Report Download - page 216

15 Sustainability statements 15.5 - 15.5
216 Annual Report 2010
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Staff Management ExecutivesProfessionals
New hire diversity
in %
Male 2010Female 2009 Male 2009 Female 2010
Developing our people
Employees across the world can access detailed information about our
Global Learning Curricula and register for courses online via our Global
Learning Portal, Learning @ Philips. In 2010 we extended the range of
programs and provided free and unlimited access to our employees. As
a result, we have recorded a significant increase in course participation.
number of employees participating
2007 2008 2009 2010
Core Curriculum programs 12,000 10,000 5,500 20,000
Our Core Curriculum offers learning opportunities in the areas of
personal effectiveness, people management and business acumen. With
over 20,000 employees participating in programs in the Core
Curriculum during 2010, enrollment increased compared with 5,500
the previous year.
Our Functional Core Curriculum includes courses in Marketing, Sales,
Customer Services, IT, HRM, Supply Management and Finance.
Enrollment in the Functional Core Curriculum was over 15,500 in 2010,
compared with around 11,000 in 2009. Many Functional Curricula are
tied to mandatory learning plans designed to increase our
organizational capability.
Approximately 35,000 executives and sales and marketing employees
completed the anti-corruption training program in 2010.
Talent pipeline curriculum
The Talent Pipeline Curriculum consists of specially designed learning
interventions across the talent pool. These programs are created and
deployed in collaboration with the top global universities. They provide
accelerated learning opportunities to our talent and offer action
learning projects to apply learnings to a business opportunity that in
turn creates value for Philips.
Octagon is a development program for top potentials and Inspire is for
high potentials. We continued our investment and focus on talent
development by facilitating the completion of 20 Inspire project
assignments. Top potentials in the Octagon program completed five
business projects. These business projects are sponsored by senior
business leaders and enable the realization of Philips strategic goals.
Executive education
To help our executives to continue to develop their careers and
strengthen their leadership skills, we have been offering a curriculum of
internal and external programs. These offerings continue to be relevant
to our executives. Participation in these programs was comparable to
2009.
Training spend
In 2010, our training spend amounted to about EUR 64 million,
comparable to 2009.
General Business Principles
In 2010, there were 338 reports submitted relating to alleged violations
of the General Business Principles (GBP), compared with 318 reports in
2009, 360 in 2008 and 389 in 2007. There was hardly a change in
regional distribution, with North America accounting for 36% of the
reports (same as in 2009). Latin America showed a small increase from
32% in 2009 to 36% in 2010. The total number of reported complaints in
Europe and the Middle East region remained at 17% whereas the Asia
Pacific region recorded a decrease from 15% in 2009 to 11% in 2010.
We noted a continuation of the trend that became apparent in 2009
towards an increasing number of alleged violations in the Business
Integrity category and a decrease in the number of allegations in the
category Other.
The table provides a breakdown of the newly filed alleged violations of
the GBP per year. We are reporting alleged complaints according to
our internal registration, escalation and investigation procedures and
systems – rather than by respective GBP principle, which always
involved an element of subjectivity. More information on these
categories can be found in the GBP Directives on www.philips.com/gbp.
Breakdown of alleged violations GBP
2007 2008 2009 2010
Health & Safety 10 10 6 3
Treatment of employees 236 197 162 184
- Collective bargaining 1 1 − 1
- Discrimination 75 76 63 64
- Employee development 4 8 3 1
- Employee privacy 9 2 2 2
- Employee relations 3 14 15 4
- Respectful treatment 115 81 53 96
- Remuneration 11 7 22 12
- Right to organize 5 − − −
- Working hours 13 8 4 4
Legal 14 8 4 13
Business Integrity 83 62 88 112
Supply management 10 5 4 4
Other 36 78 54 22
Total 389 360 318 338
Treatment of employees
The most common alleged violations related to Treatment of
employees, which represented 54% of all violations, compared with
51% in 2009. As in 2009, the vast majority of these complaints (over
80%) related to two issues – Discrimination and Respectful treatment.
Complaints regarding Discrimination mainly relate to sexual
discrimination and favoritism, and principally originated in the US. Of
the complaints reported in the US 33% related to discrimination,
whereas that figure was less than 19% for Philips as a whole.
Most complaints regarding lack of Respectful treatment – primarily
verbal abuse and (sexual) harassment – come from Brazil. Of the
complaints reported in Brazil, 46% related to respectful treatment,
compared with 29% for Philips as a whole. To better align the local
management culture and style with Philips’ principles regarding
Respectful treatment of employees we are conducting management
training and enhancing internal communication.
Business Integrity
In second place, with 33% of the total number of complaints are
allegations in the Business Integrity category, compared to 28% in 2009.
The new GBP Directives were rolled-out worldwide at the beginning of
April 2010, accompanied by an internal communication program
underlining the crucial importance of business integrity and the need to
report allegations. We believe this could explain the increase in the
number of complaints relating to business integrity issues in 2010.
Supply management
All employees who are performing (certain) purchasing functions
should adhere to and fully comply with the Philips Supply Management
Code of Ethics. As in the previous two years, we witnessed a high level
of compliance in this regard in 2010, with only four complaints