CSR in practice

2010 was, for me, a year when we took many good steps forward. After our activity level was sharply reduced as a result of the financial crisis, we chose to seize the opportunity to implement one of the most comprehensive strategic processes we have ever done. Corporate social responsibility and profitability go hand in hand. Businesses with a built-in socially responsible attitude are more profitable over time, so it therefore comes as no surprise that the key areas in our strategy revolve around social responsibility.

Next generation HSE

One of our primary strategic goals concerns health and safety. The main goal, an injury-free workplace and more good working years for everyone, is absolutely fixed, but we see that it is also crucial to more clearly establish partial goals along the way. Therefore, we stipulate clearly that by 2015 we will have fewer than 100 injuries. This corresponds to a Secondary injury rate at level 4 (the Secondary rate indicates the number of injuries without lost time, but with medical treatment). To achieve this, among other things, we need to involve our subcontractors in our HSE work as if they were employees of Veidekke. We will make great effort to ensure we have the necessary training, knowledge and control. To ensure effective implementation, concrete measures will be established in all units. We will establish competency requirements so that everyone has the necessary knowledge of safety appropriate to their function. In addition, we are introducing security certification for all workplaces, and we are working to improve our systems for learning after serious incidents. All units must set their own safety goals and targets for improvement, and measure them as part of the follow up. Methods developed through participative planning – in which everyone actively participates in planning their own work day - are measures that also have positive effects on job satisfaction, absenteeism, quality and HSE.

For me this has always been crucial for our success as a company. An injury-free workplace and more good years of work for all who work for us and with us, is an absolute goal.

Ethics

There has been a considerable boost in Veidekke to improve knowledge, sharpen routines and especially ensure that all employees understand and comply with Veidekke’s ethical guidelines. Despite this, in January 2010 we received claims that there had been collusion with two competitors in our asphalt operations in. We immediately notified the Competition Authority, which launched a full investigation of the case. The result of this investigation we will first receive during 2011. We also conducted a full review of all our asphalt operations and a self-investigation of the Trøndelag region. It is difficult, if not almost impossible, to create procedures and ethics programs that can not be bypassed if someone deliberately sets out to break the law. This case shows again that we must review our procedures to ensure that no individuals have so much power and freedom of action that they can carry out systematic crimes over long periods. Veidekke has done all that we can to ensure the Competition Authority has access to all relevant information. So far we have not obtained any information indicating that there has been illegal activity beyond that which has already been uncovered. However, there is no doubt that the case involves a great reputation burden for a company that has always had as its motto to do what is right in all respects.

Best at environment in practice

As in 2009, Veidekke again set a new record in building energy-friendly buildings in 2010. Bellona House in Oslo, opened in autumn 2010, and is so far the most energy efficient non-residential building we have built in Norway. Throughout all of Veidekke, we see that our way of handling environmental challenges through the exploitation of known construction methods and existing technology results in very good solutions. But perhaps the most exciting result we see from this is that we are winning more contracts because we have the right competence and deliver the most energy-friendly buildings, and not necessarily because we have the lowest in price. This shows that it is possible to good business through our corporate social responsibility focus. It is also gratifying to be able to say that we have now opened our first TellHus project in Sweden and can also boast that we have Sweden's first eco-labelled (Swan branded) house!

Always working ahead

In all areas of Veidekke we see that social responsibility needs clearer focus, and we also see that the possibilities it can open up for us are endless. Through 2010, we established a more specific and systematic way of working with social responsibility and, not to mention, a new website to communication our commitments, our work and our results more accessibly to the outside world. Veidekke will be characterised by openness. I strongly believe that through sharing our experiences and our knowledge with the world will we also be better ourselves. I am also pleased that we are being recognised by the outside world. In 2010, we were both re-certified by Kempen Capital Management as a socially responsible company, and we were voted the best company in the Nordic region at using social media in corporate communications. This inspires us to further our commitment to social responsibility.

President and CEO Terje R. Venold