Sustainability Management at Philips

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Case Details:

Case Code : BECG051
Case Length : 25 Pages
Period : 1995-2005
Pub. Date : 2005
Teaching Note :Not Available
Organization : Philips
Industry : Consumer Electronics
Countries : Netherlands

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Excerpts Contd...

Measuring Sustainability

In order to monitor the progress of its sustainability efforts, Philips used Global Reporting Initiative (GRI) guidelines.

These guidelines laid down indicators pertaining to economic, environmental, and social performance. In 2005, Philips decided to enhance its reporting standards by setting new key performance indicators (KPIs).

The company aimed at measuring its performance on these indicators. The KPIs covered three broad areas namely, social, business, and communication.

On the social front, the KPIs measured health and safety by reporting on 'Number of Lost Workday Injury Cases per Year.' Social indicators also measured 'Diversity and Inclusion' in the company. The KPIs under the business category covered the number of new business initiatives taken.

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Under this category, the company also reported the number of products designed that consumed less energy. Indicators relating to the suppliers were covered as well.

Communication indicators dealt with the extent to which Philips interfaced with its stakeholders. (See Exhibit X for Key Performance Indicators for 2005).

Apart from these KPIs, the company also kept track of various HR performance indicators such as working hours, HIV/AIDS, remuneration, non-discrimination, child and forced labor, training and education, and attraction & retention.

The company also worked on its next environmental action program EcoVision 2006-2009. Philips planned to release a Product Safety Policy by the end of 2005...


Exhibit I: Philips - Sustainability Governance Structure
Exhibit II: Philips' Sustainabilty Policy
Exhibit III: Societal Trends & Philips' Responses
Exhibit IV: Philips - Occupational Health and Safety Policy
Exhibit V: Global Community Projects of Philips
Exhibit VI: Supplier Declaration on Sustainability
Exhibit VII: Governance Structure for Environmental Management
Exhibit VIII: Philips - Ecodesign Maturity Grid
Exhibit IX: Philips - Ecovision Program (2002-2005)
Exhibit X: Key Performance Indicators for the Year 2005


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