social responsibility health and safety have top...

34 KORSNÄS SUSTAINABILITY REPORT

Korsnäs works systematically with issues

regarding workplace health and safety.

The work is based on the belief that

health and safety go hand in hand with

effi ciency and profi tability.

Preventive measures

The aim is to create safe workplaces, with

a focus on preventive measures to reduce

the number of work-related accidents,

maintain a low absenteeism rate and re-

duce the number of people with long-term

illnesses. Overarching work environment

issues are handled within cooperation

committees consisting of both employer

and employee representatives, see page 35.

Locally, work environment groups within

each operation are in charge of safety

matters. Health matters are handled in

close collaboration with the local occupa-

tional health service.

Part of the change process

To illustrate the importance of safety and

to develop a safety culture within the

company, these issues are also included in

Korsnäs’ long-term change process within

the framework of the KOM programme,

see pages 36-37. For example, in 2011 a

project was conducted to improve traffi c

safety at Korsnäs Rockhammar. Improve-

ment teams, consisting of mill employees,

identifi ed locations at high risk for acci-

dents, which lead to practical measures

being taken. Korsnäs Gävle carried out an

improvement project to eliminate lifting in-

juries within part of the production chain,

resulting in new working methods, instruc-

tions and training for those involved.

Results 2011

The statistics for 2011 indicate that the work

on health and the working environment

Social responsibility

Overall, the results of the work on health and the working environment were positive in 2011. Absence due to illness was low and the number of work-related injuries resulting in sick leave declined.

Goal for employee dialogues 2011: Employee dialogues will be carried out with at least 98 percent of the company’s employees.

Outcome 2011: 92 percent.

Goal for leadership training 2011: At least 98 percent of Korsnäs’ depart-ment heads will have begun leadership training.

Outcome 2011: 99 percent.

HEALTH AND SAFETY HAVE TOP PRIORITY

A DRUG-FREE WORKPLACE

Company policy insists that Korsnäs be an alcohol and drug-free workplace. This policy helps create a good, safe working environment The focus is on preventive work, with information cam-paigns aimed at all employees. Alcohol and drug testing is carried out on new staff, on suspicion of infl uence and as part of rehabilitation after repeated short-term sick leave. Random alcohol and drug testing is performed in all areas of operations, among employees, contractors and consultants. Guidelines for measures to be undertaken in con-nection with abuse problems are set out in Korsnäs’ Action Plan for Alcohol and Drug Abuse.

Korsnäs dedicates substantial resources to exercise and other wellness programmes. The aim is to improve employee health at the same time that activities create employee satisfaction and a sense of community in the workplaces.

35KORSNÄS SUSTAINABILITY REPORT

yields good results. Absence due to illness

is low at all three mills and the trend has

been downward for a long time. The num-

ber of rehabilitation initiatives is also low.

The number of work-related injuries with

sick leave in 2011 was lower than in 2010,

while the number of work-related injuries

not resulting in absence due to illness in-

creased. Employee reporting of incidents

remains high. The company believes this

is positive because more active reporting

makes it easier to prevent accidents.


0

2

4

6

8

2006 2007 2008 2009 2010 2011

Total Men Women

%Absence due to illness

0

100

200

300

400

500

600

700

2006 2007 2008 2009 2010 2011

Reporting of incidents Work-related injuries resulting in absence due to illness

Work-related injuries not resulting in absence due to illness

Work-related injuries and incidents

0

5

10

15

20

0

500

1000

1500

2000

2006 2007 2008 2009 2010 2011

Average of whom, women %

Number %Number of employees

REHABILITATION POLICY

In coordination with the trade unions, Korsnäs has adopted a policy and plan of action for rehabilitation. The point of departure for this is the view that work and social interaction in the workplace represent a signifi cant part of life. The objective is to bring employees whose work capacity has been impaired back to normal work.

Cooperation committee

General health and safety issues are ad-dressed by cooperation committees that act as safety committees. At the level beneath the cooperation committee, lo-cal committees or working committees deal with issues involving the working environment. Matters of policy regarding the working environment and safety are decided on by the Group-wide council. The coordination bodies within Korsnäs consist of representatives from both the employer’s and the employees’ sides. The council model is not currently applied in safety work in Korsnäs’ Latvian subsidiary. There,

management represents the employees at meetings addressing safety issues.

Cooperation agreements

The industry has an overall, central coop-eration agreement describing matters such as work with workplace health and safety and occupational health services. Korsnäs has an overall cooperation agreement for the Korsnäs Group describing the levels of the cooperation structure. Policies regard-ing the working environment, rehabilitation and alcohol and drug issues have also been developed through joint action. Work environment issues are of key signifi -

cance, where each manager is responsible for ensuring workplace safety. The trade unions appoint safety offi cers and a chief safety offi cer. Each new manager and safety offi cer takes part in basic working environment training, which is arranged regularly based on the requirements imposed by operations. In Korsnäs’ Latvian subsidiary, working environment and safety issues are also included in the central agreements with the trade unions, although these are worded differently than the corresponding agreements in the Swedish operations.

At Korsnäs Rockhammar, a KOM project has led to a new pedestrian path, as well as speed and warning signs set up to improve road safety, concludes automation electrician Magnus Blomberg, a member of the improve-ment team.



The purpose of KOM is to ensure

continued competitiveness in a future in

which the market is changing at an

ever-increasing pace. By using the KOM

method, the company and employees are

better equipped to deal with problem-

solving and manage the operation in

relation to established objectives. The

method will lead to a common platform

for the change process and strengthen the

corporate culture by always working with

continuous improvements.

New approaches

KOM is a long term programme that is still

in the introductory phase. The aim is for the

company to improve at working with

management by objectives and quickly

address deviations. To date, 12 KOM

projects have been started, carried out by

improvement teams with four to seven

participants. The KOM teams are selected

to reduce or eliminate identifi ed losses, such

as handling damage with forklifts, and to

reduce machinery-related time losses. Some

of the teams have worked on improving

workplace health and safety and increased

personal safety. The various losses are

identifi ed through analyses. These cross-

functional teams are the key to safeguard-

ing employee expertise, resulting in new

solutions to the projects.

The reports from the fi rst projects have

now been submitted, describing concrete

measures, improved procedures and a

strong commitment to development. They

have also created conditions for immedi-

ate or future savings.

Several new change projects are

planned for 2012 and the next few years,

which will affect even more aspects of the

operation.

Leadership for change

Skills and commitment from all employees

are essential for the KOM programme to

have an impact. Consequently initiatives

to improve leadership and employee

commitment are an important part of the

process. In 2011, a new leadership

programme was started for all leaders

within the company, from the corporate

management team to the fi rst line

managers at all departments and through-

out the operation. The focus of this

initiative is change leadership. All

managers will complete the training

programme.

Improved dialogue

Improving the dialogue between leaders and

other employees, as well as between

different parts of the operation, is a

fundamental component of the new

leadership policy that Korsnäs introduced.

The aim is to create good everyday

communication, including feedback that

will lead to improvement. Special efforts are

also needed to develop forums and new

tools for employee development, which

previous employee surveys showed were in

demand. As an example, Korsnäs has

worked with the trade unions to design an

improved model for the employee dialogue.

The goal is to conduct employee

dialogues twice a year for all employees,

with a basic dialogue to discuss objectives

and a follow-up dialogue.

Improvement Projects in the KOM programme place great emphasis on root cause analysis; in this case exploring the root cause of valve problems.

RENEWAL, LEADERSHIP AND EMPLOYEE COMMITMENT

Korsnäs’ change management program, KOM, Korsnäs Operational Management – is gradually being introduced throughout the company. Development of employee commitment and leadership is an important element in this long-term change process and is a requirement for creating lasting change.


Cooperation with trade unions

Korsnäs’ ambition is to maintain close rela-tions with the trade unions and the com-pany considers union work to be important and valuable. Cooperation with the unions is a prerequisite for the process of change in progress throughout the company. The company’s employees are repre-sented on the Board of Korsnäs by ordinary members or their deputies. The company and the unions cooperate both centrally and locally on efforts with major invest-ments and other important projects. There is a cooperation council at each of the mills

and these hold regular meetings with mill management.

Human rights – diversity and equality

From Korsnäs’ CR Policy: “Korsnäs works to promote diversity and equality among its workforce and in its recruitment processes. The company employs, trains, promotes and remunerates all employees in accordance with job-related factors, such as individual skill, quality of work, attitude, competence and potential, as well as the company’s needs. Korsnäs’ stance is to promote a sound and collegiate working environment

for all employees. This disregards ethnic or national origin, skin colour, religion, gender, sexual orientation, citizenship, age, marital status, functional disability or any other cat-egorisation protected by current legislation.” In 2011, Korsnäs received one notice of discrimination in connection with recruit-ment. The case was resolved in arbitration. Child labour does not occur in Korsnäs’ operations, where the minimum employment age is 18. Korsnäs also assesses its larger suppliers regarding a number of factors, in-cluding aspects of the working environment.

EMPLOYEE SURVEY

Korsnäs has been conducting regular employee surveys for about ten years. The purpose is to gain a view of employees’ work situation while developing measures of the company’s capacity to generate added value for its customers. The surveys are conducted by the opinion research company TNS-Sifo, which uses the survey responses to derive a Value-Creation Capital (VCC) index. Korsnäs’ 2010 sustainability report included com-ments about the outcome of the most recent survey. The next employee survey will be carried out 2013.

KOM FOR INCREASED COMPETITIVENESS

KOM (Korsnäs Operational Manage-ment) is a long-term programme of change to enhance effi ciency and competitiveness by avoiding losses in the company’s overall processes. In this context, “losses” refers to losses in terms of both materials and time and that do not contribute to the value generated for customers. A central component of the KOM programme involves developing the company’s approach to problem solving and continuous improvement. The KOM programme builds on World Class Manufacturing (WCM), which is well-established in many industries.

The employee profi le affi rms that, as Korsnäs employees, we shall: • work for the best of the company • help generate value for customers • work in a goal-oriented manner and

focus on improvement • have respect for other employees, e.g.

in promoting a safe working environ-ment, being open to dialogue and seeing diversity as a strength.

The four criteria of the management pro-fi le state that a good leader should: • provide a good role model • lead towards clear objectives • develop operations, him/herself,

employees and the team • take decisions

EMPLOYEE AND MANAGEMENT PROFILES

Korsnäs’ employee and management profi les are of great importance in the change process that has been initiated through the KOM programme.

Improving the dialogue between employees and managers at all levels of the company is one component of the improvement process at Korsnäs.




CONTACTS WITH SCHOOLS AND UNIVERSITIES

In a world with intensifying competition,

new working methods and faster technol-

ogy development, employee skills are

becoming a crucial competitive factor.

Like many other industries, Korsnäs faces

a generational shift, with many people

retiring over the next 15 years. In this

situation, the company’s long-term talent

strategy – which encompasses recruit-

ment, skills development and skills

transfer – will be particularly important.

Attraction

To meet these challenges, the strategy

includes efforts to attract and recruit

young, well-educated employees. The

starting position is relatively favourable

because Korsnäs has been building close

contacts with schools and colleges over a

long period of time. For example, each

year the different operations offer primary

school students a large number of

internships. Korsnäs also arranges an

extensive study visit programme for

upper-secondary school students, teachers

and career counsellors. The mills and

forestry operations also host workplace

interns from upper-secondary school

vocational programmes.

Contacts with colleges and universities

are important and take place through

efforts such as job fairs, study visits and

degree projects. Korsnäs has representa-

tives on various education councils and

committees at all levels of education.

Professional trainees

Professional trainee is a new form of

employment, in which adolescents are

given a six-month introduction to the

company’s operations and processes. They

are then hired as operators or maintenance

technicians. The improved comprehensive

approach creates conditions for closer

cooperation between operations and

maintenance. The initiative is also part of

the practical knowledge transfer necessary

for the impending generational shift. The

professional trainee programme is a

complement to Korsnäs’ trainee pro-

gramme for older students.

To ensure the company’s competitiveness, Korsnäs works with a long-term talent strategy. This strategy includes close contacts with schools, colleges and universities.

The summer camp held in Örebro aims to awaken an interest in science and engineering among girls. The camp is a joint venture by the Tullängsskolan School, Komtec, Risbergska School and Örebro University. Korsnäs sponsors the event.

The company’s professional trainee initiative has been quite successful. The new employees receive a broad introduction before proceeding to employment as operators or maintenance technicians.

INDUSTRY-WIDE PROGRAMMES

Korsnäs is involved in industry-wide programmes to inform about forest management. The Forest at School programme is a national joint action project involving schools and Sweden’s forestry stake-holders. The aim is to teach students and teachers about forests and forestry. Through outdoor education, the Forest at School programme seeks to unite theory and practice. Journey into the Future is an upper secondary school initiative that the Forest Industries Federation carries out in tour format to disseminate information and stimulate interest in young people to work in the forestry industry. Since its inception in 1999, Journey into the Future has met more than 120,000 students at almost 300 schools.

PRAO = internships for younger students. APPU = workplace internships for older students.



COMMUNITY INVOLVEMENT — LOCALLY AND GLOBALLY

Korsnäs’ operations in Gävle, Frövi and

Rockhammar provide support in various

ways to local clubs and associations,

primarily within sports and culture.

There is a strong commitment to educa-

tion, especially in activities that stimulate

an interest in technology among young

people.

Korsnäs is also involved in other

relevant social activities at both a central

and local level. For example, the company

supports a science and engineering camp

for girls in Örebro. In Gävle, Korsnäs is

one of the principal sponsors of Rapa-

tac, an initiative to help children accept

greater responsibility for their schooling.

Playing for Change is a locally sup-

ported programme with a global perspec-

tive. The Playing for Change Foundation,

which was founded by Kinnevik, supports

social entrepreneurs with sustainable

ideas for how to improve life for children

and young people. The basic idea is that

play prepares children for life and that

children all over the world have the right

to free play. Among many other things,

in 2011, Playing for Change supported

the “Healing Game” initiative, which has

developed play pedagogy to help trauma-

tised refugee children.

Korsnäs is one of the main partners of

Playing for Change and has, during the

year, facilitated facilitated support for

social entrepreneurs in Sweden, Ghana

and Russia. Korsnäs employees have also

served as advisers to the social entrepre-

neurs in Sweden and participated on the

jury that selects the entrepreneurs who

will receive support.

Korsnäs’ ambition is to act both locally and globally as a good corporate citizen. This community involvement includes support for positive initiatives and activities.

The Rapatac project offers children and young people leisure activities and helps them to accept greater responsibility for their schooling and future. As one of Rapatac’s main partners, Korsnäs supports the establishment of the activities at the Rapatac Nordost activity centre in Gävle.

The Maths Centre association offers assistance in mathematics to secondary and upper-secondary school students in the form of open maths workshops. About 200 volunteers run 33 maths workshops per week. The founder of the Maths Centre is one of the social entrepre-neurs who receive support from Playing for Change.

“A RICHER LIFE”

Korsnäs contributes to foundations and funds to promote stimulating leisure time for the company’s employ-ees. For example, Korsnäs employees and pensioners have access to about one hundred holiday homes in Sweden and abroad. Trips to sports events, trade fairs, theatre shows and other cultural events are arranged for em-ployees and their families.

Playing for Change gives enthusiasts who work in areas with vulnerable individuals the chance to develop their ideas and create meaningful and sustainable companies.

CHRISTER SIMRÉN, CEO KORSNÄS AB

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