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WE LISTEN TO OUR STAKEHOLDERS

The assessment of Kesko’s operations and corporate responsibility performance takes account of the key stakeholders:

  • Customers
  • Investors and Kesko’s owners
  • Kesko employees
  • Retailers and store staff
  • Suppliers and service providers
  • The media
  • Authorities
  • NGOs and other organisations
  • Trade unions

The materiality assessment of Kesko's responsibility guides Kesko's corporate responsibility and stakeholder work. Operations in all areas of responsibility are developed in accordance with the expectations of the key stakeholder groups.

The stakeholder assessment is included in Kesko’s management system and operating plans. Kesko's corporate responsibility vision is based on taking stakeholders’ views into account.

Kesko's stakeholder interaction

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Various surveys are regularly conducted to identify stakeholder expectations.

In the 2015 survey by TNS Gallup on companies' reputation and responsibility, 500 consumers assessed the K-Group. The strongest factors contributing to the K-Group’s reputation were considered to be customer orientation, competent personnel, and delivery and service reliability. Room for improvement was seen in terms of commitment to promoting environmental issues and the transparency of operations. 

As part of Kesko’s human rights assessment we engaged in dialogue with our stakeholders in autumn 2015 and early 2016:

  • TNS Gallup looked into human rights in the K-Group’s operations on the basis of small-group discussions and a web survey sent to 567 K-Group customers and 41 specialists
  • District coordinators of the Trade Union Solidarity Centre of Finland (SASK) interviewed employees of the factories manufacturing Kesko’s own-branded goods in three high-risk countries (India, Bangladesh and the Philippines). The interviews focused on human rights in the factory and the impact of Kesko’s operations.

The Senior Vice President, corporate responsibility, communications and stakeholder relations, brand and marketing steering and development, a member of Kesko’s Group Management Board, is the head of corporate responsibility. He reports to the Group Management Board about communication with stakeholders on economic, social and environmental responsibility.

Staying aware of stakeholder expectations requires regular dialogue. The following table describes interaction with the key stakeholder groups.

KEY STAKEHOLDERSSTAKEHOLDER INCLUSIVITY AND CHANNELS OF INTERACTIONRESPONSE TO STAKEHOLDER EXPECTATIONS
 CUSTOMERS
  • Daily customer encounters
  • Customer service channels
  • Customer satisfaction surveys
  • Post-shopping surveys
  • Interaction via social media channels (Facebook, Twitter, Google+, Pinterest, Instagram, blogs)
  • Inquiry and service functions on mobile and online services
Responsibility is strongly visible to customers in the K-Group’s consumer brands and stores. Customers have to be able to trust in the quality and safety of products and the fact that their responsible choices start when they enter a K-store.
INVESTORS, OWNERS AND ANALYSTS

Investors’ and shareholders’ questions concerning responsibility have increased in recent years. Kesko replies annually to the inquiries of several institutions making sustainability assessments.
Examples of the events:

  • Annual General Meeting
  • Investor meetings
  • Press conferences
  • Capital Markets Days
Kesko strives to continue and improve its ratings in significant sustainability indices and lists, as they are important neutral evidence of responsible operations. Transparency of reporting and corporate governance principles – as well as ensuring that legislation and responsible working principles are observed – create a solid basis for Kesko's business operations.
EMPLOYEES AND RETAILERS
  • Personnel survey
  • Performance and development reviews
  • National Works Council meetings
  • Kesko’s intranet: country-specific pages: Keskonet Finland, Sweden, Estonia, Latvia, Russia, and Keskonet Global that is common to all
  • Available on Keskonet: Direct Line, Mail to the President and CEO, internal audit feedback channels, a discussion column and several blogs
  • The annual K-Team event for K-retailers, K-store staff, Kesko employees and business partners
  • 'Our Responsible Working Principles' guide (in all languages of our operating countries)
  • Value discussions on responsible working principles
Kesko's working community is developing and global. Common working principles and practices provide the basis for our work everywhere. Responsibility is becoming ever more important in creating the employer image. Companies in which job satisfaction is high and that are able to offer versatile jobs and opportunities for career progress are most likely to succeed in attracting and retaining the best employees. K-retailers listen to the wishes of their customers and adapt their selections accordingly. Stores implement responsibility in all of their operations.
SUPPLIERS AND SERVICE PROVIDERS
  • More than 21,100 suppliers and service providers, see EC9
  • Cooperation according to good trading practices
  • 'Principles and Practice of Socially Responsible Trading' guide
  • Business partner meetings, such as Kesko grocery trade’s annual partner info event
  • Audits and training events in high-risk countries
Multi-form networking with suppliers and service providers requires that all parties to the supply chain accept the common values, objectives and working principles.
We are together responsible for ensuring that our customers can rely on our expertise, services and the quality and safety of our products.
SOCIETY (THE MEDIA, AUTHORITIES, NGOS AND OTHER ORGANISATIONS, AND TRADE UNIONS)
  • Meetings
  • Media events and inquiries
  • Activities in organisations
  • BSCI cooperation internationally and in the national BSCI group
  • Inquiries by NGOs
Kesko proactively follows all changes in society in close cooperation with its stakeholders. We cooperate and discuss openly with NGOs, authorities and other decision makers.