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Note 3: Stakeholder engagement

Our approach The aim of our ongoing stakeholder engagement is to learn from key financial, social and environmental stakeholder groups and, in collaboration, to develop innovative and sustainable solutions to address some of the world’s most pressing challenges. Our Planet Possible agenda is not only designed to help drive innovation and enable us to become radically resource efficient, it’s also intended to inspire employees, customers, suppliers and other key stakeholders to work together with us in achieving this. Reaching out to all our stakeholders in ongoing conversation and dialog is vital to achieving our goals and to further developing our long-term [...]

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Note 6: Capable engaged people

[...] on our engagement with suppliers and the management processes is included in Note 7. Capable engaged employees Employees are routinely involved in delivering many aspects of our sustainability agenda, such as improving energy or resource efficiency at our sites, developing and selling eco-premium solutions to customers, managing all areas of safety and assessing the sustainability aspects of investments. We want to build on all these activities to accelerate performance against our objectives. Awareness training to help everybody understand their contribution is available for current and new employees through a company level e-learning program, with follow-up [...]

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Processes and capabilities

[...] awareness of behaviors that put us at risk, by establishing a culture of taking care and involving all employees in safety improvement Process safety is focused on identifying and controlling hazards in our operations by avoiding unwanted events resulting in injuries, waste or harm at manufacturing sites. Process safety is also fundamental to ensuring consistent reliability and productivity of assets at optimal cost and maintaining our license to operate Product safety incorporates the traditional approach of reactive regulatory compliance, but also goes beyond this, enabling us to take a lead in sustainable product stewardship In all three cases, our process steps [...]

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Strategic focus areas

[...] level Customer loyalty levels Every day, our front line sales, customer service and supply chain employees contribute to our success in the market, however, this is often difficult to measure in a meaningful way. To address this, we have decided to use customer retention as a proxy measurement for customer loyalty. We believe that this is an appropriate choice because customers do have alternative sources of supply in almost all of our businesses Further development and implementation of our commercial excellence programs will continue to be a major priority for AkzoNobel in 2015 and will be a fundamental factor in achieving higher organic growth levels in the [...]

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2014 overview

Training Our training program and curriculum is a cornerstone of our Compliance framework. A wide range of compliance training modules on various topics is available to every new employee. In 2014, we rolled out updated competition law training for designated employees. More than 10,000 employees have completed the course. The Executive Committee received tailored competition law and export control training. In addition, top management also participated in live competition law and fraud training. Sensitive Country Program Our Sensitive Country Program was continued in 2014. Under this program, a small team – consisting of the General Counsel, another member of [...]

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Note 1: Managing our sustainability agenda

[...] our own success, putting sustainability at the heart of everything we do means that our customers and employees – not to mention the planet – will also benefit. For more details, see the Strategic performance section of this Report 2014. Our strategy has three sustainability focus areas designed to deliver more value from fewer resources, with targets for 2020. Our progress in terms of creating more value from fewer resources is measured by a special Resource Efficiency Index (REI), which monitors the gross margin generated over the resource/energy use across the value chain (measured as cradle-to-grave carbon footprint). We focus on three aspects: Sustainable [...]

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Note 13: Restructuring

In 2014, we continued to restructure our business to execute our company strategy so we can continue to meet the needs of our customers in years to come. We are aware of the impact this has on the employees involved and, as a responsible employer, we are committed to supporting our employees during such reorganizations. We do this in compliance with legal requirements and, where applicable, in consultation with employee representative bodies. We strive to ensure clear and ongoing communications, transparent selection processes and, in many cases, support in the transition from work-to-work, which can include training and outplacement. During 2014, our workforce [...]

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Regional statistics

[...] 1,390 1,384 1,326 1,175 1,631 2,518 2,641 2,127 1,406 1,117 862 1,089 1,295 1,330 1,380 Number of employees 2 5,000 5,200 5,200 5,300 5,000 9,100 8,900 8,500 8,000 7,700 6,700 7,400 7,700 7,400 7,400 Germany US and Canada 1 India Revenue by destination 1,160 1,284 1,258 1,176 986 2,954 2,092 2,294 2,155 2,193 332 359 371 353 354 Revenue by origin 1,096 1,228 1,219 1,143 920 3,074 2,222 2,413 2,287 2,306 251 283 288 270 279 Capital expenditures 22 31 69 87 106 63 67 70 62 68 17 18 16 17 7 Average invested capital 949 945 861 736 764 2,131 1,722 1,742 1,739 1,778 140 130 122 119 127 Number of employees 2 3,500 3,800 3,600 3,100 2,300 10,300 5,100 5,100 5,000 4,800 [...]

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Compliance

[...] risks, improves and monitors compliance and its effectiveness and ensures training of the relevant employees. The compliance officers also ensure that alleged breaches of the Code of Conduct are investigated and findings and lessons learned are reported to the relevant business or function management team, who then take appropriate action. Compliance and integrity reporting and monitoring AkzoNobel has developed a set of corporate reporting tools to manage compliance and integrity at the company. The compliance department manages these tools/reports and reports on outcome and effectiveness to the Compliance Committee. Competition law compliance declaration [...]

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Note 1: Summary of significant accounting policies

[...] foundation. In certain countries we also provide post-retirement benefits other than pensions to our employees and these plans are generally not funded. Valuations of both funded and unfunded plans are carried out by independent actuaries based on the projected unit credit method. Post-retirement costs primarily represent the increase in the actuarial present value of the obligation for projected benefits based on employee service during the year and the interest on this obligation with respect to employee service in previous years, net of the expected return on plan assets, if any. When the calculation results in a benefit to AkzoNobel, the recognized asset is [...]

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