Social responsibility

Valio employs 4,600 people in Finland, and the know-how and well-being of our staff is a main focus for us. Social responsibility also entails a dialogue with the consumers, excellent delivery reliability, and sponsorship for partners.

Personnel principles

Personnel principles

Investing in personnel expertise

Personal responsibility means taking responsibility for one’s own work, working productively, and understanding how work is measured.

Openness means that information flows freely, employee differences are utilised, and that we learn from experts.

Fairness means the right to receive feedback on your work and the potential for self-development.

Equality at work means an unbiased approach and offers opportunities for success, so that everyone can succeed in their job.

The realisation of the principles is tracked in the personnel co-operation group comprising representatives of all the various professional groups at Valio, and in shop stewards’ meetings.

Personnel development

Personnel development

Valio provides training

The Valio Executive Program strengthens Valio leadership by developing business and interaction skills.

Training is provided by members of the Valio Executive Board, and participants are given exercises on challenges in business operations. The program has been created in co-operation with Aalto University.

In 2013, the program focused on business in Russia. The program will not be arranged in 2014.

The goal of Valio’s Business Program is to increase understanding of the financial steering of Valio’s business and strengthen the participants’ ability to understand and manage business entities.

In 2013, the target groups comprised personnel in the product development, sales and production of cheese, butter and spreads.

New, extensive coaching for investment project managers commenced in 2013, and will continue in 2014.

The training supports working in expert roles, personal development, and the use of project and interaction skills.

In Production, the focus lies on maintenance and the continuous development of professional expertise. In addition, the personnel is offered training based on apprenticeship leading to a degree.

Personnel well-being and reward

Personnel well-being and reward

Personnel well-being activities

Success in everyday work is reflected in an individual’s satisfaction with their own job, and promotes well-being and long term health within the work community.

The goal of personnel well-being activities is to strengthen the resources of the individuals, the work community and the organisation, thereby facilitating success in everyday work.

The key areas involved in personnel well-being activities are supervisor and work community skills, as well as the working capacity and well-being capacity of individuals.

Bonus system

Personnel bonuses

Valio has operated a directional reward system for the whole personnel since 2002. A bonus is paid on the basis of Valio’s financial performance and divisional goals.

Bonuses paid

2009 MEUR 3.5 2010 MEUR 4.5 2011 MEUR 6.1 2012 MEUR 6.2 2013 MEUR 6.6

Valio also supports personnel leisure clubs and rewards its staff for their length of service.

Occupational safety

Occupational safety

Safety principles

- We always comply with safety regulations and instructions. - Everyone shall notify risks they observe and respond to any unsafe work activities. - We continuously improve the working environment, and the safety of our working methods. - We identify hazards and evaluate the risks that may result from them. - All hazard situations, accidents and incidents shall be investigated. - We handle safety issues regularly at various management events. - We develop our operations in order to speed recovery from serious exceptional situations. - We improve employees’ safety awareness and know-how.

2013 produced a record low in the number of accidents. As in previous years, the most common type of accident was falling or tripping at work and on the way to or from work.

The number of accidents or instances of occupational disease at Valio totalled 254 in 2013. 12.7% of these occurred on the way to or from work, and 4% were instances of occupational disease.

The number of accidents decreased by 7% and resulting absenteeism by 18%. The number of accidents leading to an absence of more than 4 days fell by 31%.

Accident frequency stood at 34.9 per million working hours.

The highest number of absenteeisms resulted from falling and tripping (18% of all accidents and 38% of resulting absenteeism). The highest number of accidents resulted from being squeezed between two objects (22% of all accidents and 18% of resulting absenteeism), and the third biggest group was classified as burnout or exhaustion (17% of all accidents and 12% of resulting absenteeism).

Valio records as accidents all cases that result in absence from work or involve treatment costs.

A partner valued by the retail trade

A partner valued by the retail trade

Highest customer satisfaction in the food industry

Customers value Valio’s brand products, reliable operations, and professional co-operation.

Valio’s customers include e.g. FMCG chains, staff canteens, restaurants, wholesalers, petrol service stations, Food Service providers and bakeries all over Finland.

Supply performance was measured at 98.5% in 2013 (2012: 99.3%).

Valio Group net sales in Finland accounted for around 63% of Group net sales in 2013 (2012: 64%). Finnish net sales include domestic sales and sales of raw milk in Finland to other dairy companies.

Sales to the retail trade accounted for some 74% (2012: 76%) of Valio sales in Finland (1 275 million euros), sales to the Food Service sector (e.g. staff canteens, public sector purchases, wholesalers, restaurants, petrol service stations) around 13% (2012: 13.5%), and industrial sales around 11% (2012: around 13%).

Valio’s range includes around 1 000 items.

Valio delivers products to its customers in 85% recirculating and environmentally sound transport units that save customers work.

Should a product fault or error occur, Valio will communicate it openly and as swiftly as possible.

Valio interacts with consumers

Valio interacts with consumers

Valio interacts with consumers

Valio’s Finnish corporate pages (http://www.valio.fi/yritys/) were also updated. The revamped valio.com and corporate pages enable Valio to serve its stakeholders better and more effectively.

On average, 15 million unique users visited Valio websites in 2013, an increase of nearly 80% on the previous year.

Valio provides answers to questions related to its products and operations via the feedback form on www.valio.fi, by telephone, via Valio’s Facebook pages (http://www.facebook.com/valionsivu) and on Twitter (http://www.twitter.com/ValioFi).

Quality measurement yielded an excellent rating for Valio Consumer Services. Consumers especially valued service speed, friendliness and expertise.

Valio Consumer Services responded to some 38 000 queries in 2013 (2012: 28 000). The Internet was increasingly the most popular medium used to contact and message Valio.

Contacts divided almost evenly between product complaints, and a variety of questions, wishes and ideas.

Consumers were particularly interested in matters related to products, such as their ingredients or suitability for cooking. Consumers also provided Valio product development with lots of ideas and wishes.

Valio develops products in co-operation with consumers, using the latest research methods. The company has invested particularly in ethnographic research. In addition, Valio has set up an online virtual market research community to support product ideation, planning and testing.

Responsible marketing communication

Valio’s value “We make the best.” also guides marketing communication. This means that Valio complies with the international rules and guidelines published by the Association of Finnish Advertisers.

We have also set down four ethical guidelines to be applied in advertising in particular: 1) Principle of truth 2) Principle of equality 3) Principle of respect 4) Principle of safety We have further provided guidelines on how Valio and Valio employees should behave when acting in the name of the company in social media.

Stakeholders

Other important stakeholders are universities, the media, and organisations.

Contacts with stakeholders are regular and interactive. The stakeholders’ views are taken into account e.g. in product development and improving product quality, as well as in detecting product faults.

Issues related to products and responsibility relevant to stakeholders are studied through stakeholder surveys, and operations and products are developed using the survey results.

Valio sponsorship in 2013

In 2013, Valio’s sponsorship focused on supporting physical exercise and nutrition for young people through Valio Plus™ Akatemia scholarships.

The figurehead sponsors of the Valio Plus™ Akatemia are Teemu Selänne, Sami Hyypiä, Joel Pohjanpalo and Kiira Korpi. Our co-operation with Kiira Korpi was initiated in 2006.

In 2013, Valio also sponsored the Helsinki Cup football tournament, Aalto University, and the Art Centre Salmela in Mäntyharju.

In addition, Valio was involved in a number of regional events in the vicinity of its production plants (e.g. the Savo Games in Lapinlahti and Finnish baseball club Seinäjoen Peliveljet matches).

Experts from Valio Farm Services and nutrition develop know-how in society

Valio Farm Services experts promote e.g. the development of milk production, milk processing, milk research, the well-being and nutrition of cows in various contexts, and projects in Finland and abroad.

Valio’s nutrition experts arranged a seminar in 2013 on dental health, to which they invited nurses from child welfare clinics, and dental hygienists.

Health and nutrition professionals are also served by the Valion Hyvinvointi (Valio’s well-being) pages online.

MML handles Valio’s policy development

Valio’s policy development has been handled by the Finnish Milk Processors and Dairy Products Wholesalers Association (MML) since 31 December 2011.

MML deals with international and national policy development and the establishment of collective agreements within the dairy industry.

Riitta Brandt, Vice President, Agricultural and Food Policy at Valio acts as the Executive Director of MML.