Philips 2014 Annual Report Download - page 196

Sustainability statements 14.2.5
196 Annual Report 2014
Philips Group
Classication of the concerns investigated in number of reports
2012 - 2014
2012 2013 2014
substantiated unsubstantiated substantiated unsubstantiated substantiated unsubstantiated
Health & Safety 2 7 – 2 1 7
Treatment of employees 22 150 33 136 32 112
Legal 5 8 2 2 4 9
Business Integrity 37 51 32 32 25 45
Supply Management 1 – – 3 1 –
IT – – 3 1 2 –
Other 11 4 – – 4 18
Total 78 220 70 176 69 191
14.2.6 The Philips Foundation
In 2014, Philips established the Philips Foundation, a
new initiative dedicated to helping enable lasting social
change in disadvantaged communities through the
provision and application of innovation, talent and
resources provided by Philips. Together with key non-
prot partners, the Philips Foundation seeks to identify
challenges where a combination of Philips expertise
and partner experience can be used to create
meaningful solutions that improve people’s lives. The
Philips Foundation will provide the vehicle for the
Corporate Social Responsibility and social investment
program of Philips going forward.
During 2014, the Foundation developed its strategy,
governance and operational structure. It established its
rst strategic partnerships with the International Red
Cross and UNICEF with the aim of co-creating
innovative solutions for disaster relief and community
development and supporting social entrepreneurship.
In addition to programs with these global partners, the
Foundation will fund local projects run by the Philips
markets that are in line with the Foundation strategy.
The Foundation also stepped up to coordinate Philips’
contribution to the international ght against Ebola. It
provided the opportunity for employees to make a
donation to support the work of the Red Cross in West
Africa and doubled the amount raised to almost EUR
60,000. Furthermore, several products were donated
in response to requests from the Red Cross and other
NGOs.
More information about the Philips Foundation and its
purpose and scope can be found
at www.philips-foundation.com.
14.2.7 Stakeholder Engagement
Working in partnerships is crucial in delivering on our
vision to make the world healthier and more sustainable
through innovation. A number of our partnerships are
described below.
Strategic Partner of the World Economic Forum
The World Economic Forum engages business,
political, academic and other leaders of society to
shape global, regional and industry agendas in an
informal, action focused way. Philips is now entering its
third year as Strategic Partner.
2014 was the year Philips substantially strengthened its
position in Digital Innovation, Internet of Things and
Emerging Technologies. Moreover, health care gained
a more prominent place on the global economic
agenda at WEF creating many opportunities for Philips
in building new relationships and strengthening our
business in a transformational industry. The
Sustainable Development Agenda was discussed at
WEF as well, Philips welcomes the opportunity to
contribute to these discussions and shape the global
agenda.
Despite the impact of geo-politics on the global
economic agenda, our engagements contributed
substantially to our objectives of positioning Philips as
technology leader in Health & Sustainability, gaining
new insights that are relevant for future business, and
creating new business opportunities.
Cross-sector collaboration to drive the Circular
Economy transformation
For a sustainable world, Philips sees the transition from
a linear to a circular economy (CE) as a necessary
boundary condition. A circular economy aims to
decouple economic growth from the use of natural
resources and ecosystems by using those resources
more eectively. To promote cross-industry and cross-
sector collaboration, Philips joins forces with thought
leaders and conveners. One such initiative is Project
Mainstream, driven by the Ellen MacArthur Foundation,
the WEF and McKinsey. Frans van Houten is in the
Steering Board and leads the work stream Asset-
tracking. This project addresses the outer circle of the
circular economy concept, the material streams where
signicantly more traction is needed to scale up to
mainstream business and improve material quality. A
Research team has developed a white paper to
describe innovation opportunities to address CE