Philips 2015 Annual Report Download - page 38

Group performance 5.2.7
38 Annual Report 2015
5.2.7 General Business Principles
The Philips General Business Principles (GBP)
incorporate the fundamental principles for all Philips
business. They set the standard for business conduct
for both individual employees and for the company
itself. They also provide a reference for the business
conduct we expect from our business partners and
suppliers. Translations are available in 32 languages,
allowing almost every employee to read the GBP in
their native language. The GBP form an integral part of
labor contracts in virtually every country in which
Philips operates. In addition, there are separate Codes
of Ethics that apply to employees working in specic
areas of our business, i.e. the Procurement Code of
Ethics and the Financial Code of Ethics. Details can be
found at www.philips.com/gbp.
Employees are actively encouraged to engage in
dialogue with their colleagues about what constitutes
‘acting with integrity’ in a given business situation and
to speak up if they have any concerns. They can turn to
either their manager or a GBP Compliance Ocer for
advice and support.
The Philips Ethics Line operates globally, allowing
employees to dial a toll-free hotline number to report
a concern in their local language or to raise a concern
online via a web intake form. Since May 2015, third
parties have access to the Philips Ethics Line so they
can raise any concerns they might have in relation to
Philips business. In 2015, 39 parties, among which
former employees and contractors, used this option.
The types of concerns led by external parties follow
the overall trends, with most concerns relating to
‘Treatment of employees’ followed by ‘Business
integrity’. A standard for investigation is in place to
promote consistency and due care in the way concerns
are investigated.
For a description of GBP processes and policies, please
refer to section 7.1, Our approach to risk management
and business control, of this Annual Report.
Business Integrity Survey
In 2013 the rst survey was held among our employees
to measure the eectiveness of GBP deployment. In
June 2015 a follow-up survey was rolled out to all
employees in the ten most relevant languages to check
status. The overall conclusion that could be drawn from
the survey is that the Philips culture continues to
provide a sound basis for any GBP- or compliance-
related program.
Role of management
The Philips Executive Committee constantly reinforces
the message that acting in line with the GBP is not
something that is optional, but something that is vital to
our business success. Managers at all levels are
specically given the responsibility to engage in
dialogue with their teams on what responsible business
conduct means for their daily practice. Management is
supported in this by a network of GBP Compliance
Ocers who operate on dierent levels in the
organization.
Training and awareness
In October of this year all employees with an email
account were invited to take the updated GBP e-
learning. This training course will be made available in
the 22 most relevant languages. At the end of the course
employees are asked to conrm that they are
committed to acting in line with the GBP. The series of
face-to-face training courses for GBP Compliance
Ocers that was started in 2014 was continued.
More information on the Philips GBP can be found in
chapter 7, Risk management, of this Annual Report. The
results of the monitoring measures in place are given in
sub-section 14.2.5, General Business Principles, of this
Annual Report.
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
around the world. 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 in 2015, please refer to sub-section 14.2.7,
Stakeholder Engagement, of this Annual Report.
5.2.9 Supplier sustainability
Philips has a direct business relationship with
approximately 10,000 product and component
suppliers and 30,000 service providers. In many cases
the sustainability issues deeper in our supply chain
require us to intervene beyond tier 1 of the chain.
Supplier sustainability programs
We have developed a number of strategic programs to
help our suppliers improve their sustainability
performance. These programs cover the assessment of
supplier sustainability performance (audits),
management of regulated substances, conict minerals
and other responsible sourcing initiatives. More
detailed information about our programs is available
www.philips.com/suppliers.
Supplier sustainability policies
The Philips Supplier Sustainability policy consists of
two core documents: Supplier Sustainability
Declaration (SSD) and Regulated Substances List (RSL).
Both these documents are an integral part of our
supplier contracts.