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Corporate Social Responsibility – Jotun August 2012

Corporate Social Responsibility – Jotun August 2012. Corporate Social Responsibility. Jotun CSR in Jotun Anti coruption Suppliers Jotun Green Step. Jotun today. Jotun – a global company…. …..with regional strongholds – Middle East, Asia and Scandinavia. Total sales NOK 14,7 bill

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Corporate Social Responsibility – Jotun August 2012

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  1. CorporateSocialResponsibility – Jotun August 2012

  2. CorporateSocialResponsibility • Jotun • CSR in Jotun • Anti coruption • Suppliers • Jotun Green Step

  3. Jotun today Jotun – a global company….…..with regional strongholds – Middle East, Asia and Scandinavia • Total sales NOK 14,7 bill • Consolidated NOK 10,7 bill • EBIT margin 9,0 % • 9 largest paint company in the world • 40 factories located on all continents • 70 companies in 40 countries • 8.600 employees • Head office in Sandefjord, Norway • 2 divisions managed from Dubai

  4. Jotun today The global Paints and Coatings market

  5. Jotun today Strong in selected segments and markets Market size : 80 bill USD Jotun sales : 2,4 bill USD Powder Protective Marine Decorative

  6. 46 % of sales in Europe / ROW 24 % of manufacturing 76 % of manufacturing in Asia /ME 54 % of sales Jotun today Jotun structure External sales distribution Manufacturing distribution

  7. Jotun strategy TODAY Strategy • 4 Segments • Organic growth • Differentiated approach Jotun Protects Property

  8. Sales and EBIT development EBIT Sales 100 % of JVs and associated companies

  9. The importance of company culture The Penguin Spirit Results Strategy People and leadership Corporate culture / Values

  10. The Penguin Spirit Jotun Protects Property Loyalty Care Respect Boldness

  11. Responsible business Jotun has always been a responsible company Shaped by long-term experience working with different cultures Step by step approach – proven to be trustworthy and successful ("the Jotun way") Corporate Responsibility

  12. Corporate Responsibility Jotun Protects Property and all its stakeholders

  13. Corporate Responsibility Corporate governance - Corporate Responsibility • Values • Business principles • Jotun “off limits” • Jotundecision making model • Dilemma training • Audit of suppliers • Project standards

  14. Anti-corruption Anti-corruption

  15. Corporate Responsibility CR in Jotun • Long international experience • Cultural differences • Individuals – role models • Local employment • Working in different culture

  16. Anti-corruption

  17. How to handle corporate responsibility ? • Preparing people • Multi-local business model – local empowerment • Local organizations and management handle CR every day • A set of rules and regulations is not enough……. • ……but you need that also. • This is about giving a framework for people to take the right decision

  18. Realistic Motivating statements rather than sanction based rules Readable and understandable Easy to communicate Short Simple language Management responsibility Business principles

  19. Business Principles

  20. UN Declaration of Human rights ILO Convention Child labour Working hours Tax auditors Price cooperation/cartels Receiving payments from suppliers personally Paying to get contracts Paying salaries without reporting tax Paying rents "off the records" Breaking laws and regulations Jotun “off limits”

  21. Jotun decision making model

  22. Dilemma training example

  23. Challenges in our markets • Facilitation • Third party – ”representatives” • Role of authorities • Getting approvals • Local expectations • Local partners • History…..

  24. Corporate Responsibility

  25. Anti-corruption Anti-Corruption training material

  26. Supplier audits SupplierAudits Supplier audits in Jotun • Background • Initial work • Audits • Result • Plans ahead

  27. Care Respect Boldness Supplier audits Areas that are audited Audit Elements • 1 Capacity & Contingency • 2 Lead Time • 3 Procurement • 4 Accreditation • 5 Technical Support (QC and R&D) • 6 Supply Chain (Logistics) • 7HSE • 8 Bribery/Fraud • 9 Child Labor/Forced Labor • 10 Working Hours • 11 Wages and Compensation • 12 Discrimination • 13 Understanding of laws and Regulations - Licenses • 14 Environment • 15 Green steps Loyalty

  28. Jotun GreenSteps Introducing: • Part of Jotun Corporate Responsibility programme • The journey to a greener and colorful world begins with a step • Jotun contributes to the environment by offering coatings that protect property from wear and tear • Jotun takes steps to protect property and the world around it

  29. Jotun GreenSteps GreenSteps • Part of Jotun Corporate Responsibility programme • Jotun contributes to the environment by offering coatings that protect property from wear and tear • Jotun takes steps to protect property and the world around it

  30. Jotun GreenSteps Hull Performance Solution

  31. Thank You !

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