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LEGRAND GROUP – THE JOURNEY TO SUSTAINABILITY
Rodica BURLACU, SUSTAINABLE DEVELOPMENT Term Paper, 2013
The main purpose of this paper is to present the close relationship between Legrand
Group’s business strategy and the way sustainability policies comply with it. In this respect,
I will present firstly the business environment with its components: market, competition,
products and key figures. Secondly, I will focus on the principles that form the basis of
sustainable development commitment, seen through the lens of the main areas where
sustainability matters. In the end, I will analyze two projects developed by the company
that concentrate their CSR strategy and, ultimately, a short summary according to the three
pillars.
Keywords: sustainability, strategy, CSR, information
Every evening I come back home from school, the lights at the entrance in the main
hall of the building turn on, and after I enter my flat, they turn off. It is not only the perfect
way to save energy by relying on movement detection sensors’ perception, but also a
solution to make people’s life easier. Taking into account the human factor, a major
problem is thus solved: the light turns on automatically so you don’t need to press any
button, which is useful when your hands are full of bags, and turns off after a few minutes,
thus ensuring that you don’t forget to do it.
Some years ago, lights turning on and off without any manual switching were hard
to imagine; but today both innovation and practical side go hand in hand to make people’s
life easier and, in the same time, working towards overall efficiency. I would assume that
this is the common perception of usual consumers, the ones whose life is constantly
improved by these new devices. However, such devices are the outcomes of an entire
process included in one company’s embedded culture: LEGRAND—THE GLOBAL
SPECIALIST IN ELECTRICAL AND DIGITAL BUILDING INFRASTRUCTURES.
I. LEGRAND GROUP BUSINESS OVERVIEW
1. General description
The French company Legrand Group is the world leader specialized in the production of
electrical and digital business infrastructure and it is reputedly known as a worldwide
standard setter in the field. The company develops its activities close to its markets, in
more than 70 countries around the world, where there is commercial and industrial
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activity, but its more than 200,000 catalogue products can be found in nearly 180 countries
worldwide. These figures prove the global presence and involvement of the company, as
well as its successful business story and part of its strategy. With a total workforce of more
than 35,000 employees, Legrand generated in 2012 sales of 4.5 billion euros, of which 79%
outside France.
Looking back at the very beginnings of the company, we can see that its original
activity was the production and decoration of china (in 1926). A turn point was its
acquisition by Verspieren and Decoster families in 1946, followed by the major change of
the production activity towards wiring devices manufacturing, starting with 1949. Other
important points in the history of the company are : 1966, the first production operations
outside France, by opening new subsidiaries in Belgium and Italy; 1970, the company is
listed at the Paris Stock Exchange and 1977, the first operations in an emerging economy –
Brazil, via the acquisition of Pial, the leading Brazilian wiring device manufacturer. Along
its history, Legrand acquired and integrated over 135 companies from different countries
worldwide, thus consolidating its development model: new economies and new business
segments.
2. Products
The offer of the Group is large, counting around 200,000 catalogue products. These
numbers covers the four main product and system categories: control and command of
electric power, cable management, energy distribution and Voice-Data-Image (VDI). This is
only a very general nomination of the main categories, since each product’s technical
feature depends on the type of building they are designed for: commercial, residential or
industrial.
It has been proved that end-users prefer Legrand products despite their higher
prices, because of some unique features. Electricians recommend and prefer products that
are more efficient in terms of installation procedures: easy, safe, reliable, good quality and
speed of installation. To end-users, quality, design and functionality prevail over the price.
This low price sensitivity of end-users can be explained by two facts: on the one
hand, the importance of the electrical installation in the building infrastructure in terms of
safety and reliability is not to be neglected; on the other hand, the costs dedicated to the
electrical infrastructure of a building count only for a small percent in the total building
cost so under certain limits there is no too big cost for these devices.
Going a bit further into details regarding the products, each system category
provides a number of well-determined products, as follows:
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- Control and command of electric power, including comfort, security and
communication systems (lightning control, fire alarms, digital infrastructure
systems)
- Cable management (systems that enable the secure distribution of electricity and
data in buildings, aiming at preventing any accidental contact between electrical
wires and cables and other electrical or mechanical equipment, or any exposure of
these wires and cables that could be hazardous for end-users)
- Energy distribution (breakers and other specific devices that enable the installation
and connection of components)
- VDI (pre-wired systems for IT, telephone, and video networks
3. Business and market. Competition
Unlike its competitors, Legrand built its position as a world leader due to the
specialization in one business area, a fact which consequently contributed to the
acquisition of a large technical and commercial expertise.
a) Specialization
Despite of focusing on a single business area, the Group develops a complex range of
products and systems for electrical and digital building infrastructure, integrating the
development, the manufacturing and the marketing processes. Moreover, this position is
consolidated by a strong local presence that allows the company to establish durable
relations with key local distributors and electrical installers, thus becoming more thorough
in maintaining communication with their markets.
b) Brands
Legrand markets its products under internationally recognized brands, covering a
portfolio of more than 40 such specialist names, like Ortronics , Cablofil or Zucchini. These
brands and trademarks are protected in most of the markets based on their registration or
use.
c) Market positioning
The sector of the market where Legrand operates is very diverse and this is an
important advantage during waves of economic crisis. Since diversity provided by a big
range of products and systems with characteristics easily adaptable to different situations
and spaces is a defining feature of the business, market fluctuations do not make the
company necessary vulnerable. In addition, we can say that the market it operates in is
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more fragmented and not that dependent on private projects or large public. And an
example to support this, is the renovation market that brought a large piece of profit in
2012.
According to the customers it addresses, the company can divide its market into
three main paths (categories of buildings and end-users): the commercial, residential and
industrial sectors.
The Group’s vulnerability minimization can be traced also due to the geographical
diversity that limits the dependence on the performance of only a few countries from one
region. This is explained by the presence of huge number of operating sites (70 countries
with industrial operations) and markets (products commercialized in nearly 180 countries
worldwide).
d) Competition
Due to its firmly established market position globally, Legrand has no competitors
for the whole range of products or that could threaten its world leader position. However,
the Group makes a difference between the competitors at international level and at
local/national level. International competitors refer to comparable size companies which
compete only on some products (eg: Schneider Electric, Siemens, Panasonic) and other
more specialized companies that offer only one or two categories that make the object of
competition. On the other hand, there are the companies that can be regarded as
competitors only at the level of certain national markets (eg: Hager in Germany and
France)
e) Development strategy
Legrand Group is constantly aiming at developing its market share and revenue on a
profitability basis, following two growth paths, boosted by self-financed strategies and
means; on the one hand, the company relies on innovation and the development of new
products on a regular basis, and on the other hand, it directs resources towards the
acquisition of companies that have a leader position on their national or niche market.
Whenever we talk about innovation and new products at Legrand, we actually
describe the main trigger of their activity: a proactive and targeted research that would add
high value to its products on a regular basis. This is why Legrand products can be described
as safe and reliable, simple and easy to install, but in the same time, meeting the complex
demands of end-users. The use of new technologies and new designs closely follow the
development of new solutions for an improved life style; such an example can be the
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universal media socket or the home automation range, which manages in the same time,
the lighting, security, heating and video-audio broadcast systems in residential buildings.
The second growth engine at Legrand is the orientation towards the acquisition of
new companies, in order to enlarge its span of market opportunities all over the world.
Having access to a very big market (Legrand evaluates its market at about 80 billion euros)
is not necessary an advantage if you want to sell a non-customized product. Legrand,
however, understood that its market deals with real fragmentation and an attempt to
harmonize it becomes an impossible mission. Local producers are more familiar to the
requirements of that certain market and gaining access to it can be done only through
them, This is why the Group focuses on identifying the leaders in their target markets and
then proceeds to their acquisition of these small and medium enterprises. Legrand brings
that know-how, but products are still designed according to the specificities of that market.
This is a win-win situation, since Legrand expanded its market and the acquired company
remains on the market under its own brand. Following this approach, Legrand acquired
around 135 companies.
II. LEGRAND GROUP – SUSTAINABLE DEVELOPMENT
Sustainability is not a final point during a journey, but the journey itself. At every
point you come, you realize that many others open in front of you and there is always room
for more and for better.
In my opinion, Legrand Group has an enormous advantage compared to other
companies worldwide. By its object of business itself – the production of electrical devices
– the company has more means to prove its sustainability approach equally based on the
three pillars: people, profit and planet. The strategy followed in this respect is actually a
natural step in order to really be a sustainable company.
If I were to answer a question about how sustainability policies of this company are
perceived by the unauthorized public, unaware of any theoretical knowledge of the issue, I
would say that anyone could realize at a glance the important role of sustainability for
Legrand. How is that? The company’s website has a dedicated section named Sustainable
Development, providing the public with a diverse range of information on the topic. Could
this be a form of greenwashing? It may be, but the content transmitted to the public is
detailed, transparent and connected to other company’s sections, so there is a clear
message about the importance of sustainability policies.
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Sustainability does count for the Group. There is a clear description of the message
in this respect, a message that is integrated in the four values included in the Group’s
Charter of Fundamental Principles: ethical behavior, customer focus, optimization of
resources and innovation. These values find their reflection in three main areas of the
business, covering eight principles, as follows:
1. Corporate Governance:
- Applying ethical commitments on a day-to-day basis
- Integrating suppliers in the sustainable development process
2. Environment:
- Developing products with High Environmental Performance
- Limiting the environmental impact of the Group’s business
- Promoting energy efficiency
3. Workplace and community:
- Investing in Group’s employees
- Increasing access to electricity
- Promoting assisted living
Understanding and defining the sustainability policy is not possible without a close
follow-up of the Corporate Social Responsibility strategy, meaning that all functions in a
company are touched, from top vision to the strategic implementation, from product design
to financial data.
The 2011 – 2013 Roadmap
As I said before, sustainability is a journey, not a destination. According to the
Chairman’s speech, the company wished to continue the implementation of sustainability
policy following the 2007 – 2010 objectives, by launching new challenges in this respect:
the Group continues its journey with new objectives, described in the 2011 – 2013
Roadmap, and periodical progress is expected to be reported.
The objectives are clear and in accordance with the three pillars; the involvement of
stakeholders is a key feature and an equal importance is given to each sector. There are a
number of commitments described under each stake, and a brief description of every
proceeding, perceived as a “next step”.
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What is CSR?
“Deliberately including public interest into the decision-making progress by honoring
the triple bottom line” could be the official definition. However, further details should be
added. It brings value to the company by impacting the quality of its relationships with
both internal and external stakeholders. A good ability to involve key stakeholders in the
whole process through effective communication can be the way to achieve viable and
successful on long term, growth. Throughout the analysis of the areas where sustainability
is important, together with the values and principles, a thorough understanding of the CSR
impact should be provided later on.
Stakeholders prioritization matrix
This tool is useful in assisting the sustainability report. Companies realized that there is
a difference between aiming at short-term reputation and value enhancement, through
providing genuine value to key stakeholders.
Legrand drew up a map of its stakeholders in 2012. The mapping process clarified
existing relations in the areas of corporate social and environmental responsibility and
identified improvement priorities for the Group.
Key players: they focus efforts on the Group, are involved in decision-making
bodies and are consulted regularly. For Legrand, they include customers and
employees, as well as the Board and local managers.
Meet their needs/Keep satisfied: engage and consult on interest area and try to
increase the level of interest. Eg. Governments in the countries Legrand
operates, distributors, electricians, suppliers, NGOs (Electriciens sans frontieres)
Low power, interested people/Show consideration: interest through
involvement in low-risk areas, keep informed, potential goodwill promoters;
Legrand is present on social networks (Facebook, Twitter, Pinterest) and on
YouTube, trying to inform constantly their customers and potential customers
on their progress and products.
Low power, less interested/Least important: the purpose is to move them into
the next box, of interested people.
In the next pages, I will analyze how Legrand complies with the areas where
sustainability matters and how these areas go along their values, commitments and real
actions.
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1. Entrepreneurship
Identifying and exploring new business solutions both inside and outside the
organization.
In the case of Legrand, the organizational structure and the business development
model give to some extent the idea of entrepreneurship. The organizational structures –
Front and Back Office go hand in hand with the Group’s presence in markets with different
characteristics, so a decentralized structure is preferred in order to gain efficiency.
In terms of entrepreneurship, we can consider the local managers as real
entrepreneurs. Each local manager leads a Front Office by country, which means he is in
charge of dealing with specific issues related to the local market: distributors, product
specifiers and end-users. Since they are the interface between the local community and the
central decision-makers, they need to be creative in order to adapt the company’s offer to
the real needs and demands of the market. This is why I consider this approach a means of
profitable and viable growth. It is part of the strategy that each subsidiary is given a certain
amount of liberty in decision making in order to fit in the company’s value and the local
market’s actual needs.
This is mainly the question addressed when the markets under which a company
operates are very different. For Legrand, the challenge is notably found in the New
Economies. India and Brazil are two very big markets but they are in the same time two
different countries, with different attitudes towards risk, different values, different
cultures, different needs and customer behavior, which have to be managed in a different
manner. Trying to understand the other part by exchanging information is a step towards
sustainable growth with benefits for both sides.
2. Strategy
Ensures the right approach is taken and that it is implemented as a real organized effort
that mobilizes the whole company.
The objective of the company’s strategy is to ensure that the core values are
strengthened and that opportunities prevail over risks. What is Legrand doing in this
respect?
Firstly, for a strategy to be considered good, it should mobilize to the whole company.
At Legrand, from the Chairman’s speech to the Charter of Fundamental Principles, the same
values prevail. The Code of Conduct applies not only to usual employees, but also to the
Board.
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Then, in terms of risk approach. Risk assessment is conducted on many directions,
given the complexity of the business system and the numerous relationships established
between the business and the economic context, environment, geopolitical context, social
factors or technical issues. Risk is continuously changing and strategy should be conceived
in order to diminish these risks. Legrand is acting in this direction, as well. There are clear
categories of risk identified and for each one, risk assessment is conducted regularly. The
main purpose is related to economic shortages that may occur due to compensation that
should be paid in case of damage. One example is referring to industry and the
environment. Legrand has designed and developed an environmental risk prevention and
measurement policy and it deploys its environmental risk identification policy to back its
ISO 14001 site certification process.
Savings and cost reduction are part of the strategy, too. As part of the business
development model, the identification and ultimately the acquisition of local companies in
order to penetrate a market is a cost friendly strategy part. The investment is only related
to the acquisition itself and the necessary changes to align the production to Legrand’s
standards. But on the long term, profitability is ensured as the staff is local and the
reputation of the firm is confirmed.
In relation to the acquisition-driven growth strategy, another opportunity identified by
Legrand in order to ensure sustainable profitability, is the access to new economies. They
form both the demand for electrical equipment, since the constructions sector blossoms,
and the capital means to provide value.
The other growth engine, innovation and the launch of new products on a regular basis,
provide the strategical opportunity of enhancing reputation. This is also a step in front of
the competition, who may have an advantage on certain markets, but not globally.
To make sure that the company delivers innovation constantly, relations with the
educational system were established. Legrand is an active partner in many projects or
competitiveness clusters and gives support for innovative ideas on a constant basis.
This is why it supported the project Smart Lyon, which aimed at replacing the
incandescent bulb with LEDs.
Legrand stays connected with the academic world as well, having concluded important
partnerships with Engineering Schools in France. It also promotes the development of
skills for an increase accessibility to employment and encourages initiatives and excellence
(sponsor for skills contests such as Worldskills Competition).
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An improved dialogue with stakeholders is also part of the strategy. Structuring
dialogue is part of the objectives set for 2013 and so far an 85% progress was registered.
As part of its strategy, Legrand tries to understand the business ecosystem, focusing not
only on the core business, but also on the suppliers and the other interested parts (buyers,
subcontractors, employees).
3. Operations
Taking responsibility for all the impacts, both social and environmental, across the life-
cycle of a product or service.
Legrand declared its commitment to improve its operations based on the environment
stake, which comprises two main objectives: developing HEP products, on the one hand,
and limiting the environmental impact, on the other hand.
At a glance, we discover the involvement of staff in the implementation of
environmental policies. We can deduct that there is in place a “green team” , comprising
more than 130 people, who work with the three environmental managers in the Industrial
Division and the Group Environment Team. Human resources dedication towards
achieving results is thus a reality.
Employees’ awareness in terms of environmental concern is raised on a regular basis.
More than 17,000 hours of training dedicated to the environment were held for employees,
11% more than in 2011. This increase shows the ascending importance of the issue in the
Group’s strategy. In addition, some events were organized: Sustainable Development Week
or the Sustainable Development Forum, held at the company’s headquarters in Limoges.
For Legrand, developing HEP products means taking care of different elements, from
the substance used in manufacturing, to the final shape of the product, from the whole life-
cycle of the product, to the end-user information and description availability.
One element is “green chemistry”, meaning that non harmful substances should be used
in the production process. The Group aims at complying with standards and regulations in
the chemicals use: RoHS and REACh. Progress was registered in 82 sites where the most
important logistic and administrative activities take place.
At the end of 2012, 72% of the sites were in compliance with the RoHS directive, with a
general localization in Europe. Since 2004, the Group made its goal to eliminate hazardous
substances from their production starting with sites from Europe. The Group wants to
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enlarge the area were hazardous substances are not used any more to the sites outside
Europe (although now this directive applies only to a limited number of products).
One year after the entering into force of REACh in 2007, Legrand made its objective the
compliance with this regulation in the chemicals use. It aims at eliminating the REACh
candidate substances from the future products, whenever an alternative is possible, with
the specification that the elimination is taken into account if a viable technically and
economically solution exists. Communication along the supply chain was improved due to
the access to Material Safety Data Sheets, so that products go into the market safer for the
public.
Legrand is doing well in eco – design, too, which means that the Group designs the
product smartly upfront, and which has, based on numerous indicators, a reduced
environmental impact on the entire life-cycle. Legrand classifies its products into three
categories, by their energy consuming capacity. According to this classification, the
materials allocation is made. For instance, there are products that do not consume energy
during their use (cables) so importance is given to those materials which can improve their
performance in some other way (lowering their volume).
Packaging is also included in the eco – design policy. It is of paramount importance for
the company to reduce the volume of packaging materials by using eco – friendly materials:
recycled cardboard or water based ink for printing, for example.
Office greening brings its impact to the energy saving policy. The company’s sites are
their own property, they are not rented. Also they are located in industrial locations where
certain regulations apply. The Group’s activities do not harm any way the soil or the
biodiversity in the region. As to 2012 numbers, there was a 87% increase in the sites that
have ISO 14001 certificates.
In addition to the attempts of limiting the water consumption and of finding a more
efficient way of calculating the carbon footprint, what I found very interesting was the level
to which environmental policies apply for employees. The company included in its office
car fleet a number of electrical cars to be used by employees while commuting to the office.
Charging devices were placed in the parking at the headquarters of the company.
Related to the responsible use of paper during its operations, Legrand was ranked by
WWF France and Riposte Verte in the PAP50 Enterprises Survey. Legrand came 6th from 50
French companies, meaning that it gives strong importance to paper consumption, the
share of sustainable paper used and that it moves towards maximizing recycling.
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Speaking about operations in the case of Legrand is really a challenge, since
improvements were put into practice in a large number of fields. Sustainable logistics is
another aspect. Improving transportation between production and storage sites and the
choice of the transportation means are of crucial importance. In this way, the following
proceedings were approached: the optimization of truck load to reduce the number of
trucks used, the use of rail transportation in France, or the reduced use of air freight.
Energy efficiency and an improved energy quality help also to achieving environmental
sustainability. Measures of two types were taken: on the one hand, providing solutions for
energy efficiency (improving the quality of energy systems for diminishing losses or the
use of photovoltaic panels) and on the other hand, emphasizing the customer involvement
in the promotion of the rational use of electricity (information centers, eco labels,
conferences to raise awareness).
4. Organizational behavior
Translating sustainability policies into action and creating a workplace where
sustainability is embedded in the culture of the company.
The organizational behavior is reflected in one of the stakes on which sustainable
development counts: workplace and community.
To begin with, the Chairman speech defines Sustainable Development as the heart of
the Legrand’s business. His speech is a source of inspiration for the staff, stating that the
business is performant : ” Legrand’s strong performance confirms the relevance of our
business development strategy”. In my opinion, this is a motivation for the staff, ensuring
them that they are part of a strategy that enables prosperity.
Part of this behavior is the organizational structure as well. The company established
two main core structures: the Front Office, operating locally, and the Back Office, taking the
decision that affect the company in its entirety. I think that this is an inspired approach
towards creating trust and motivation among employees. Giving some decision power in
hands of the local manager and local team not only contributes to efficiency in terms of
costs, but also acts as a boost for making people believe their work counts and it is
appreciated.
One of the objectives described in the Roadmap for 2011 – 2013 is the risk prevention
and ensuring the health and safety of employees. Numerous measures are under
development, but they all aim at compliance with national regulations and legislations,
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incorporation of safety in the industrial process and the harmonization of prevention
strategies.
Besides this, the company wants to develop skills management and to encourage
mobility. This is mainly a problem of ensuring that employees from different working
environments (developed versus developing countries) benefit from the same conditions at
workplace.
A very important point of view regarding the human resources inside this company is
the talent development strategy as part of the Group’s relationship with employees. The
Group has conducted many initiatives over a number of years to involve employees in its
CSR strategy: actions to rais awareness of Sustainable Development at sites, voluntary
participation in meetings such as the Sustainable Development Forum. Legrand’s
employees are also very involved in the new product innovation and development
processes. A Users’ Club was formed in 2012 in France for Group employees as a forum for
dialogue, sharing new ideas, testing products and concepts (electric car recharger, lighting
path for independent living, etc.), and to contribute to surveys and discussions.
Another point to be taken into account is how the employee engagement strategy
touches the employers. Social dialogue between stakeholders is important in a global
company as Legrand. Part of social dialogue is the communication between the manager
and the employees, but also it occurs at national level or regional level. Trainings and
conferences are organized regularly to improve this communication. Also, more than 85%
of the employees are part of employees’ unions with representatives in each subsidiary.
Adapting to markets is part of the social dialogue. What I found interesting about
Legrand is that whenever a decision is made by the top management, communication is
ensured in order to facilitate the putting into practice of the changes. One such example is
related to a relocation decision in Brazil concerning an industrial site. Employees that did
not wish to leave their places and move along with the site were given assistance in order
to find more easily another job (contact with companies in the region, CV circulation or
trainings in order to prepare the change).
A collective retirement savings plan is also put into practice. This is how the company
participates on a voluntary basis to the building of a long-term retirement savings plan,
under favorable financial conditions.
Promoting diversity at workplace goes hand in hand with the compliance with ethical
practices. One of the commitments made by the company was related to the promotion of
gender equality and a growth in the number of female managers. Here Legrand is not doing
very well, even if a campaign was launched “Elles by Legrand”, to raise awareness. The
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Group was unable to achieve the 30% recruitment target for female managers, mainly due
to the reduced number of applications for the jobs.
Organizational behavior also means rewards for employees. Legrand considers that
transparency is important and objectivity is obtained only by skills assessment. Salary
increases must be given according to objective criteria based on skills and compliance with
the values of the Group and not by means of the years you used to work for the company.
So it does not matter if you have been working here for 10 years if you did nothing
consistently, but it does matter if you worked 2 years and with responsibility.
In recognition of the Group’s Human resources policy that is driven with enthusiasm,
the company was awarded in 2012 the Best Positive Tandem Award in the 9th CEO/HR
Tandem awards.
5. Marketing
Marketing is the responsibility of the Front Office and helds an important part of the
business. Marketing at Legrand is aimed at providing information at all stages of the
distribution chan. Trainings, information and other services needed for the good
understanding of each product is provided along with sales.
Legrand follows a push-and-pull strategy.
The push approach refers to the new products and the optimization of the supply chain
with just in time approach. This means that the level of inventory is held at minimum and
the communication with customers becomes important. An high-value service was also
undertaken; an intelligent presorting system that allows the company to pre-sort its
products thus reducing errors at delivery and handling costs.
The pull approach refers to the increased communication between distributors and
end-users. The end-users ask for products, thus creating a demand. Distributors must be
trained in order to expand electric contractors’ expertise and to make them familiar to the
new products developed.
6. Ethics and governance
The CSR strategy involves also the adherence of the company to law, ethical standards
and international norms.
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Ethics compliance creates value for the company in numerous ways; ethics means trust
and confidence, means a workplace where transparency and balanced practices are valued,
means reduction of costs related to corruption issues and means also risk minimization.
"Ethical behaviour, Customer Awareness, Resource Enhancement and Innovation are
the core values underlying the Legrand Group's management philosophy. These values
have been built over time within the company, and are the essence of our corporate
culture. We pass them on internally through our management principles and externally via
our relationships with our partners." The ethics compliance is assessed through the
knowledge of these three documents:
- Charter of Fundamental Principles
- Fair Competition Charter
- Guide to Good Business Practices
The Group focuses on preventing corruption, combating fraud and ensuring compliance
with competition rules; in addition it also covers conflicts of interest, compliance with
embargoes, as well as measures against money laundering and the financing of terrorism
The Group ensures that all of its stakeholders are informed and comply with its policy
of business ethics. It’s each employee’s responsibility to be aware of all of the rules
applicable within the scope of their job responsibilities, especially the laws and regulations
applicable to their own activity. Employees can consult their immediate supervisor, or the
Group’s Legal Department or Human Resources Department, with a generic email address
([email protected] ) on any issue concerning ethical or legal
requirements.
After having had a careful look at the company’s report, I could say that it has an
effective ethics program, taking action on each of the seven steps (eg. Anonymous e-mail
address to report abuses, see above)
The Group complies with regulations in force in the countries in which it operates. It
endorses the values of the UN International Charter of Human Rights, comprising the
Universal Declaration of Human Rights (1948), and the International Labor Organization
(ILO) Declaration. The adherence to the UN Global Compact also provides a basis for
principles to conduct an ethical behavior. There is a strong connection between the Group
Charter of Fundamental Principles and the ten principles of Global Compact.
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In line with the Group's values and the Charter of Fundamental Principles, Legrand's
endorsement of the Global Compact is a major part of the Group's social responsibility
policy.
The Global Compact is a United Nations initiative which aims to endow world markets
with responsible values and practices, to enable all people to benefit from the advantages
of globalisation.
For Legrand, applying ethical practices on a day-to-day basis means structuring
dialogue with stakeholders, listening to customers, through responsible communication,
customer relations and exchange platforms.
A way that kept my attention in terms of communication is collaborative innovation.
The Group’s relationships with its distributors, electricians, specifiers and users are central
to its strategy. Legrand has over 70 showrooms and 15 training centers, including Innoval
in Pantin, Bagnolet and Limoges. These structures have welcomed more than 100,000
people since 1999 (opening date of Innoval Limoges), including more than 4,000 visiting
customers and over 5,200 trainees in 2012. Assessments of service quality are conducted
with key customers. Meetings are held every two years with distributors to develop,
monitor and discuss business relationships.
Part of ethics is the relationship with suppliers, meaning that the Group is very careful
with its reputation and with the real value added to its products. This is why in its new
purchasing policy, another evaluation indicator was included and it refers to how
sustainable the suppliers are. Besides their know-how, competitiveness and compliance
with the Group’s principles, the alignment to the sustainable development vision is now an
assessment factor.
The Group recognizes losses and accrues liabilities relating to environmental and
product liability matters. A loss is recognized if available information indicates that it is
probable and reasonably estimable. Losses arising from environmental liabilities are
measured on a best-estimate basis, case by case, based on available information.
Losses arising from product liability issues are estimated on the basis of current facts
and circumstances, past experience, the number of claims and the expected cost of
administering, defending and, in some cases, settling such cases.
Legrand releases quarterly financial information, with a complex analysis of their
performance, available on the company’s website. The last report was publish in November
2013.
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Transparency and information
Following annual assessment in September 2013, Legrand was recently confirmed as
part of the Dow Jones Sustainability Index Europe. This stock market indexes comprises
companies which are leaders in the field of Sustainability. Legrand's inclusion in the DJSI
Stoxx illustrates the Group's high level of performance in social, societal, environmental
and governance terms. Besides the DJSI Stoxx, Legrand is also part of 5 other Sustainability
indexes.
III. PROJECTS AND INITIATIVES FOR THE COMMUNITY
1. LEGRAND ELECTRICITY FOR ALL
As I said in the beginning, Legrand has a unique advantage for putting into practice a
sustainable development strategy, given its object of business: the electrical infrastructure.
Although the market is characterized by high-value products sold at higher prices
due to their added value, Legrand also produces highly accessible goods for low income
markets.
In Legrand’s vision, electricity is one of the features that contributes to
development. Electricity is a necessity and the Group works towards reducing the number
of people without access to electricity and improving thus the quality of life.
The program Legrand Electricity for All is impulsed by the General Management and
steered by the Sustainable Development Department. It is part of the business strategy and
it is implemented worldwide. The program focuses on four areas: aid partnerships,
exploratory research, frugal innovation, energy efficiency. It involves both internal and
external stakeholders. Among them, a partnership with an NGO – Electriciens sans
frontieres- was established.
The initiatives of this program cover both financial and assistance aid, through
financing of different electrification processes, development of products responding to
essential needs or the design of solutions for lower electricity consumption.
The Group proves that it can direct resources towards different aspects of life, from
very sophisticated products to frugal innovation, in order to cover the needs of every
consumer, regardless of their incomes and access to market.
The project is conducted to respond both to long-term plans (electrification of
schools and hospitals in a certain area) and to emergency situations.
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Since 2007, Legrand has taken part in more than 70 projects with Electriciens sans
frontières, targeting access to electricity or emergency aid in Africa, Asia and Latin
America. To date, the initiatives of the Group with Electriciens sans frontières have enabled
780,000 people to gain access to electricity in more than 20 countries.
2. ASISSTED LIVING PROMOTION
As far as I’m concerned, Legrand likes having a look not only in the present, as is the
case above, but also in the future, to identify trends and needs. This demonstrates a high
concern for improving the quality of life.
Since in Europe aging population is growing, a bigger and bigger number of old
people would need special facilities to continue their lives at home, and in full safety.
What Legrand proposes are user-friendly products, that can be accessed by a larger
number of people. Together with this, it develops solutions for facilitating orientation into
space in case of power shortages or fall prevention systems. Legrand is fully concerned also
about safety and this is why it promotes technical sensors against smoke or carbon
monoxide detection.
Home automation products are designed for people with diminishing capacities for
independent living. These products refer to door-entry systems that make possible to
program home environment using only one control point.
However, providing only prevention systems is not enough; Legrand went deeper
into the problem and thought that without communication with the outside world, the
systems are more inefficient. This is why these products come together with an automatic
transmission system that would ensure appropriate action in the right time.
Communication and collaboration with integrated parts is essential for the design of
such products. It requires multidisciplinary expertise from health care units, families,
research organizations or welfare professionals.
IV. CONCLUSION
To sum up, I think Legrand has already taken action on numerous stakes of
sustainability, making this strategy its core. Everything that happens in the company has to
be in harmony with sustainability.
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Having a short look at the triple bottom line, I think Legrand has a big advantage in
terms of environment. It is not only eco – friendly but it also helps others become
environment – aware by providing access to a huge market of eco – products. It is not
enough to want to become sustainable, if you don’t have the means; and Legrand helps you
do this.
People are part of the business and their behavior has to be in accordance with the
strategy. People are the most difficult to change, but raising awareness towards why
change is good, they become part of the change.
Profit is a consequence of a proficient business model, oriented towards sustainable
growth. The understanding of the motivation behind the two growth engines is the key to
make good profit on a regular basis with sustainable means.
To me, Legrand is the prove that change is possible and that good working practices
(ethics), economic context and human resources dedication, linked by an inspired strategy
can provide value and respect.
If asked wheatear I would like to work for a company like Legrand, my answer
would be Yes, because I consider that Legrand is consumer oriented and fits into the
European tradition of quality.
REFERENCES:
1. Legrand’s Global Compact Report for 2012
2. KPMG Sustainability Reporting – a Guide
3. Legrand’s website: www.legrand.com
4. Legrand’s Facebook page and YouTube channel
5. Press releases
6. Legrand 2011 – 2013 Roadmap