Philips 2014 Annual Report Download - page 36

Group performance 5.2.8
36 Annual Report 2014
5.2.8 Working with stakeholders
In organizing ourselves around customers and markets,
we create dialogues with our stakeholders in order to
explore common ground for addressing societal
challenges, building partnerships and jointly
developing supporting ecosystems for our innovations.
Working with partners is crucial in delivering on our
vision to make the world healthier and more sustainable
through innovation. An overview of stakeholders and
topics discussed is provided in chapter 14,
Sustainability statements, of this Annual Report.
For more information on our stakeholder engagement
activities, please refer to sub-section 14.2.7,
Stakeholder Engagement, of this Annual Report.
5.2.9 Social Investment Programs
2014 was a transition year for Philips’ social investment
program. With the creation of the Philips Foundation, a
new global strategy was rolled out, focusing on disaster
relief, local community investment and social
entrepreneurship. The Philips Foundation is
responsible for the overall strategy and global non-
prot partnerships. Philips’ country organizations, while
aligning with the global strategy, have the ability to
drive regional programs that t the specic needs of
local communities.
For example, in 2014, Philips Brazil rolled out the
program “Light Up Your Game” across 10 countries in
Latin America. Working together with non-prot
organizations such as the KNVB and IDEAAS, they were
able to install over 27 solar and semi-solar Community
Light Centers, which provide safe and functional space
for sports and other community activities after dark.
In North America, the Philips Cares program provides
ways for employees to work together to improve
people’s lives by creating healthy, sustainable
communities that contribute to the success and well-
being of future generations. This can take many forms:
from helping a child to excel in math, or providing safety
and energy-ecient home improvements for the
disadvantaged, to raising awareness about the
importance of cardiac health. In 2014 alone, more than
5,000 employee volunteers participated in community
outreach projects that suited their needs, schedules,
and passions through partnerships with organizations
such as the American Heart Association, Rebuilding
Together, and the National 4-H Council.
In 2015 and beyond, all programs run by Philips country
organizations on social investments will come under
the umbrella of the Philips Foundation.
More information about the Philips Foundation and its
purpose and scope can be found at sub-section 14.2.6,
The Philips Foundation, of this Annual Report.
5.2.10 Supplier sustainability
Many of our products are being created and
manufactured in close cooperation with a wide range
of business partners, both in the electronics industry
and other industries. Philips needs suppliers to share
our commitment to sustainability, and not just in the
development and manufacturing of products but also
in the way they conduct their business. We require
suppliers to provide a safe working environment for
their workers, to treat workers with respect, and to work
in an environmentally sound way. Our programs are
designed to engage and support our suppliers on a
shared journey towards continuous improvement in
supply chain sustainability.
As a leading company in sustainability, Philips acts as a
catalyst and supports our suppliers in their pursuit of
continuous improvement in social and environmental
performance. We recognize that this is a huge challenge
requiring an industry-wide eort in collaboration with
other societal stakeholders. Therefore, we take a
leading role, together with peers in the industry, in the
Electronic Industry Citizenship Coalition (EICC) and
encourage our strategic suppliers to join the EICC too.
In 2014, Philips initiated a new EICC taskforce on
process chemicals in the supply chain. We will also
continue to seek active cooperation and dialogue with
other societal stakeholders including governments and
civil society organizations, either directly or through
institutions like the EICC, the multi-stakeholder
programs of the Sustainable Trade Initiative IDH, and
the OECD.
Supplier Sustainability Involvement Program
The Philips Supplier Sustainability Involvement
Program is our overarching program to help improve
the sustainability performance of our suppliers. We
create commitment from our suppliers by requiring
them to comply with our Regulated Substances List and
the Philips Supplier Sustainability Declaration, which
we include in all purchasing contracts. The Declaration
is based on the EICC code of conduct and we have
added requirements on Freedom of Association and
Collective Bargaining. The topics covered in the
Declaration are listed below. We monitor supplier
compliance with the Declaration through a system of
regular audits.