Sustainability plays an important role throughout the LEDVANCE value chain. Together with our suppliers, we maintain a common value base and comply with statutory regulations. With our "Quality First" approach, we offer our customers outstanding products whose entire life cycle is based on sustainable processes.
Sustainability plays an important role in the supply chain as part of a global economy. We expect our suppliers to adhere to basic values in human rights, labor standards, environmental protection and the fight against corruption, among others. In order to ensure this we hold intensive discussions with our suppliers to create a common understanding of basic values. In addition, we use tools and processes to support our suppliers as implementation partners and to verify compliance.
Revised code of conduct for suppliers
LEDVANCE has a concise Code of Conduct for Suppliers which, similar to our own LEDVANCE Code of Conduct, takes as its basis the most important international standards and conventions and also provides a clear summary of our fundamental values. It has been signed by our suppliers throughout the world.
Regular audits are necessary to verify compliance with the Code of Conduct. That is why we extended our regular supplier audits with aspects of corporate responsibility, taking place on several levels.
Corporate responsibility is an obligatory element for suppliers, and implementing these measures is part of the “balanced scorecard” of our purchasers.
Part of the supplier qualification process is to obtain supplier self-disclosures in which relevant data on corporate responsibility criteria is queried.
On the basis of self-disclosure and other risk-based criteria we have Corporate Responsibility Supplier Audits conducted by objective external auditors.
Integration of these tools in our central purchasing system ensures seamless incorporation in the entire procurement process. If discrepancies are found in the course of supplier auditing we discuss these with the supplier and together produce proposals for improvement. The relevant supplier will then be reaudited. No violations of our Code of Conduct have yet been discovered that would necessitate terminating a business relationship, and the general feedback from our suppliers has been positive.
Policy on Conflict Minerals
One of the aspects of a sustainable supply chain that has gained special relevance is the issue of “conflict minerals”. For that reason, LEDVANCE has a policy to supplement our Code of Conduct for Suppliers.
The conflict minerals of concern are those used to produce tantalum, tin, tungsten, and gold which originate from mines in areas under control of armed groups in the Democratic Republic of Congo (“DRC”) and certain adjoining countries. These mines may finance armed groups and fuel human rights atrocities committed by such armed groups in the eastern region of the DRC.
Code of Conduct for Suppliers
Our “Code of Conduct for Suppliers” requires our suppliers to respect the basic human rights of employees and others, and prohibited our suppliers and their respective suppliers from being complicit in illegal and unethical conduct. However the issue of conflict minerals requires a more stringent approach covering the entire supply chain down to the very origin of these materials. For that reason, we have this policy to supplement our Code of Conduct for Suppliers.
Conflict-free supply chain
With its strong commitment to corporate responsibility as a global citizen, LEDVANCE intends to specifically address the risk that tantalum, tin, tungsten, and gold used in our products are potentially derived from conflict minerals. Thus, we are committed to ensuring that our supply chain will be “conflict-free”. We work with our suppliers towards this end. The issue of conflict minerals used in the supply chain of the lighting and other industries is extremely complex and resolution will require the cooperation of enterprises, non-governmental organizations and governments. We are evaluating different approaches and multi-stakeholder initiatives in this regard, such as the “OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas” and the EICC - GeSI “Conflict Free Smelter Program”. We will continue to comply with applicable laws and adopt industry best practices to ensure that all materials in our products come from socially and environmentally responsible sources.
LEDVANCE has systems and processes in place to ensure accountability in our supply chain and we will improve these systems as necessary to meet new requirements. We recognize that many of our business partners and customers face uncertainty with respect to compliance with the rules by the U.S. Securities and Exchange Commission and other regulations regarding conflict minerals. We will work with our business partners with the goal of providing them with the necessary assurances that our supply chain is “conflict-free.”
This policy will be reviewed regularly and updated as needed. We will disclose the progress of the implementation of this policy as well as any other updates and developments.
Compliance – Key Factor for Success
The LEDVANCE Compliance System is designed to prevent possible violations of applicable anticorruption and antitrust rules through internal guidelines and training, uncover existing violations, and take any necessary measures to invoke disciplinary action and prevent future violations (Prevent-Detect-Respond).
The LEDVANCE Business Conduct Guidelines set out codes of conduct for the entire company, particularly for combating corruption and dealing with competition. In addition, LEDVANCE provides its employees with various regulations, guidelines and IT tools for dealing with risks relevant to compliance. For example, we classify our business partners on the basis of various criteria such as the prevalence of corruption in the country in which the partner is active. Employees also have access to country-specific aids, for example to help them deal with contributions without consideration (gifts, invitations and other considerations). To ensure that our Compliance System is correctly implemented we conduct a series of in-person training sessions and web-based training sessions. All the compliance regulations are constantly reviewed for their practical application, compared with other compliance systems on the market and adapted or further developed as required.
Detect & Respond
To enable violations of the current compliance regulations to be identified and appropriate measures to be taken we perform regular internal audits as part of our Compliance System. In addition, employees and externals can make use of our LEDVANCE Integrity Line "LILi" whistleblower system. All employees also have the option of reporting violations to the Compliance department. We follow up all reports and launch an internal compliance investigation if justified by concrete evidence. If appropriate, we also involve state authorities and cooperate with them to establish the facts. Once an investigation has been completed we recommend disciplinary measures to punish malpractice on the part of our employees and further measures to eliminate the identified deficiencies and then monitor the implementation of those measures.
LEDVANCE Integrity Line "LILi"
We offer a protected channel (anonymous if desired) known as LEDVANCE Integrity Line "LILi" which is available to all employees and externals for reporting compliance violations.
LEDVANCE is synonymous with innovative, tailor-made products and solutions that are extremely high quality and reliable. To continue meeting these requirements while product complexity is increasing and product development cycles are shrinking, we rely on our “Quality First” culture.
By offering reliable products, prompt delivery, and dependable support we aim to satisfy our customers’ high expectations. To do this, we are focusing on comprehensively enhancing preventive quality management throughout the LEDVANCE GmbH. This can only be effective if quality management and consistent attention to quality permeate all processes throughout a product’s life cycle, from the original idea until it is phased out.
All our main sites are certificated
LEDVANCE meets the highest quality standards which are certified according to ISO 9001 and ISO TS 16949 by external agencies each year. LEDVANCE was completely successful in all certified areas. Focusing on the technological change to innovative LED-based products with short development cycles, LEDVANCE has once again developed and strengthened quality management in the last fiscal year in the areas of development quality and supplier quality.
We regularly check whether our management guidelines are put into practice so that sustainability is ensured. We discuss our results and quality management performance with top management both on a local and company level, and continue to develop our systems continually and sustainably.
The quality of our products is ensured and constantly improved by our high quality management standards, which results in a sustainable reduction in the complaints rate of our products while increasing customer benefits at the same time.
Sales and customer relations
The Sales department is LEDVANCE's face for customers. Global management of Sales is centralized, whereas implementation is local. LEDVANCE is currently selling products in more than 120 countries. A common presence in the countries ensures sales-related synergies between the Segments. To support local customers the seven territory organizations can make use of the powerful global LEDVANCE sales organization. This setup enables us to meet the many and varied customer requirements, fully exploit the potential of our OSRAM and SYLVANIA product brands and react to market developments with a high degree of flexibility. As of July 1, 2016 there are around 1,200 employees worldwide active in the Corporate Sales and Marketing Organization (CSMO) at LEDVANCE.
Customer satisfaction an important factor for sustainable business success
The success of LEDVANCE depends to a large extent on the satisfaction of our customers. We constantly measures this using the Net Promoter Score (NPS). The customer satisfaction survey not only provides one of our most important indices, it is also the starting point for making sustainable improvements to our products to further increase customer satisfaction. The positive development of the NPS over the last few years confirms that we should continue with this strategy.
We have also established a global key account management team for our customer relations. The Corporate Sales and Marketing Organization is directly represented in the extended management structure by the Chief Sales & Marketing Officer.
Introduction of a CRM-system to optimize the customer service
LEDVANCE has implemented a large number of measures for improving efficiency in Sales. For example, a digital CRM system (Customer Relationship Management) has been introduced for customer support. Leaner organizational structures have been introduced in Sales against the background of increasing competition. We are also organizing a large number of training courses for our employees and customers to inform them about the changes on the lighting market, make them more familiar with our products and in this way increase their long-term loyalty to LEDVANCE and the OSRAM and SYLVANIA products.