CSR Communication on Progress 2013/2014

Our main programmes and initiatives in the Economic dimension
Global programmes and initiatives

Adecco New Zealand’ s Country Manager (2nd left) with the Chairman of the BoD, the Global CEO, CFO and the Chief HR Officer.
Adecco Eastern Europe and MENA were awarded for their excellent results with regard to employee retention rates.

Excellence Awards In 2013, Adecco Group Excellence Awards were presented to nine winning teams recognised for the outstanding results they achieved living our five core values of team spirit, customer focus, passion, responsibility and entrepreneurship. The Lee Hecht Harrison team won the overall Excellence Award the second time in a row for their outstanding performance, while Adecco Eastern Europe and MENA were recognised for their retention rate – one of Adecco’s strategic priorities. The 2013 award for Service Excellence was this time presented to a colleague from Adecco Norway. Other winners included Groupe Adecco France, Adecco Germany, Accounting Principles US, Adecco Netherlands, Adecco Italy and Adecco Mexico as the best Emerging Market.

Supplier Guidelines In July 2012, we published our Supplier Code of Conduct as well as a supplier questionnaire. They are distributed to our major suppliers in order to ensure they adhere to the highest standards. The Code of Conduct describes the expectations of the Adecco Group towards its suppliers, vendors, contractors or any other organisation with whom Adecco conducts business. The employees of the Adecco Group perform their business activities with the highest level of integrity and compliance within the laws and regulations of the markets where Adecco operates in, which reflects our expectations towards our suppliers. We recognise the variety of legal and cultural environments, in which our suppliers operate, therefore our Supplier Code of Conduct provides a framework of minimum requirements, which are applicable in the vast majority of situations. In 2013, we also increased our focus on Bribery & Corruption prevention. Our employees are expected to perform a high-level check on the supplier’s reputation with regards to Anti-Bribery & Corruption.

Enterprise Risk Management The enterprise risk management process which is led by the Global Risk Steering Committee with Risk responsibles in all our regions and major business lines, has strategic and operational dimensions. Whilst the focus is on analysing, managing and mitigating risks, we also aim to identify opportunities for business development. The process is overseen and approved by the Board of Directors.

Adecco’s Risk Management Steering Committee supports the countries when identifying risks and has defined 15 overarching risk categories, which can have a significant impact on Adecco’s results and reputation. The defined risk categories are divided into externally and internally driven risks. Our risk management activities consist of risk identification, risk assessment, risk response, and risk monitoring. All segments perform regular risk assessments on the risk categories that can have a significant impact on their operations, quantifying both Gross Risk and Net Risk. Gross Risk is an estimate of the likelihood of risk occurrence and the potential impact on the financial results in the worst-case scenario. Net Risk is an estimate of the likelihood of risk occurrence and the potential impact on the financial results taking into account the risk mitigation effect of Management Controls.

ACE training & reporting The Adecco Compliance & Ethics (ACE) training is our eight-module online training programme for employees on the following topics: Code of Conduct; Business Ethics; Bribery & Corruption prevention; Global Health & Safety; Resolving Conflicts of Interest; Global Competition; IT security and e-mail. It prepares our employees to handle ethical and legal challenges which they may encounter in their day-to-day work. All employees are required to complete six of the mentioned training modules. The module on Global Competition is specifically targeted to Sales professionals and the Health & Safety module to branch managers. In March 2014, we launched a ninth-module on Insider Trading, taking into account the revised Swiss rules in line with new EU standards. The Adecco Compliance & Ethics (ACE) Reporting Tools are designed to assist employees, associates and other stakeholders in reporting actual or potential violations of the law or Adecco Group policies, procedures or of the Code of Conduct. Any stakeholder may report to the Board of Directors allegations of fraud and violations of the law, the Group policies, the procedures or ethical standards of conduct by the Adecco Group or any of its employees or agents.

GTCI – Talent reshapes the world economy The first edition of the Global Talent Competitiveness Index (GTCI) was launched in November 2013 by INSEAD, based on research in partnership with the Human Capital Leadership Institute of Singapore (HCLI) and Adecco. The Index measures a nation’s competitiveness based on the quality of talent it can produce, attract and retain. The purpose of the GTCI is to provide a neutral, global and respected index that would enable private and public players to assess the effectiveness of talent-related policies and practices, identify priorities for action in relevant areas and inform international and local debates in the talent arena. The GTCI model covers 103 countries, representing 86.3% of the world’s population and 96.7% of the world’s GDP. The 2013 index placed Switzerland at the top of the ranking, followed by Singapore and Denmark in second and third place respectively.
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Corporate Governance – Remuneration In accordance with the new Swiss Ordinance Against Excessive Compensation in Public Corporations (the “Ordinance”) which came into force on 1 January 2014, Adecco has introduced the election by the shareholders of the Chairman, the members of the Compensation Committee and the Independent Proxy Representative as of the AGM 2014. Adecco has already conducted the newly required yearly individual elections of its Board of Directors for the last ten years. Adecco has been committed to following best practices in Corporate Governance for many years.

Accordingly, the Remuneration Report has also been subject to an advisory vote annually. As of the AGM 2015, in line with the requirements of the “Ordinance”, Adecco will submit to its shareholders for approval: the maximum remuneration of the Board of Directors for the upcoming office period (AGM to AGM) and the maximum total remuneration of the Executive Management for the next fiscal year. In continuation of its existing practice, Adecco undertakes in its ‘Articles of Incorporation’ to submit the annual Remuneration Report to an advisory vote of its shareholders also in the future. As a result, the shareholders will keep the possibility to examine the remuneration actually paid against the maximum total amount that was approved by the General Meeting and to voice their opinion. We are convinced that the new provisions of the ʻArticles of Incorporationʼ as adopted by the AGM 2014, adequately meet the requirements of Adecco as the world’s leading company in its industry with an international executive management team.

Bribery & Corruption prevention Companies like Adecco doing business globally are under increased pressure to improve their anti-corruption and bribery compliance programmes in order to prevent and detect potentially improper payments that put the company at risk. Adecco’s Bribery & Corruption prevention programme has been developed to ensure the Group’s compliance with applicable legislation while remaining flexible to business needs and cultural differences. Fundamental to the programme is the ‘tone from the top’ by which business leaders are expected to provide visible and explicit support and commitment to the programme. Employees and any third party acting on Adecco’s behalf may not provide anything of value to either government officials or private parties to obtain or retain business or a business advantage. Similarly, employees may not request or accept bribes or other improper financial advantages. The Group Policy on Bribery & Corruption prevention has been approved by the Adecco Board of Directors. The Bribery & Corruption prevention programme includes a policy, risk-assessment, education and training, due diligence procedures and audit-testing processes. Adecco’s attitude towards Bribery & Corruption in all its forms is simple: it is one of zero tolerance.
In order to further show our CEO-level commitment, we have signed the World Economic Forum ‘Partnering Against Corruption Initiative’ (PACI), a global platform centred on the PACI Principles for Countering Corruption. The initiative aims to increase the impact companies have in the fight against corruption through its cross-industry, multi-stakeholder approach.

Customer Satisfaction The Global Satisfaction Survey (GSS) was introduced across the Adecco Group in July 2008 as a mandatory tool to measure client, associate and candidate satisfaction as a way to anticipate potential business risks. It aims to provide the Adecco Group leadership team with strategic insights on customer needs and wants and our competitive positioning in the market to capitalise on our strengths, address our shortfalls and shape our service delivery. To date, approximately 100,000 answers have been collected. The goal was to implement an effective measurement system that en- ables systematic, fast measurements of client, associate and candidate satisfaction through web-surveys at country level. Countries are encouraged to add their country-specific questions to the survey. The GSS is also a major source of information for the preparation and roll-out of global strategic initiatives (e.g. Global Market Segmentation Programme; Global Branding Project). After the implementation of strategic initiatives, the GSS methodology is a key element to measure the success and impact of global actions from an external perspective as well as to derive concrete actions ensuring a continuous improvement cycle across the globe. In 2013, GSS fielded in total more than 150 surveys across 24 countries and 21 of our major brands, covering 88% of the Adecco Group in terms of revenues.

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Adecco Group’s Think Tank As the innovation lab of the Adecco Group, the Ignite team of innovators inspire and empower enterprise-level organisations to embrace, generate and promote change. Ignite, based in the US, uses a human-centred, digital, lean and data-driven approach to create products and services that solve problems around work. WickedSmart as an example matches high-potential students with meaningful and paid internships. For young people, this means getting experience in areas such as business, finance, accounting and technology, among other areas. Students double their chances of getting a job offer after graduation with a relevant experience in their CV. Ignite works in three phases: ‘Seed’ – the discovery phase to explore the business, people and problems. ‘Project’ – the experiment phase to recognise issues and identify and test potential solutions. ‘Product’ – the implementation phase where designs and concepts are tested. Ignite’s ideas are specifically around work, staffing and the workforce culture and support Adecco in improving the world of work.

Visa center – a new service by FESCO Adecco As the first visa application center for the Netherlands in Shanghai, FESCO Adecco will offer postal applications and other services for accredited companies and travel agencies. The launch of the visa center for the Netherlands was in July 2013 and is expected to handle around 20,000 applications annually. Applicants can use the services for joint Schengen visas and do not need to come in person to the center. In addition, a postal application service is offered as well as the option to send a representative. The time to get an appointment is shorter – usually within five working days. Applicants receive an SMS informing them that their passport is ready for pick up. FESCO Adecco received its visa agent qualification from China’s Ministry of Public Security in 2011 and launched a Franco-German visa application center with a partner already in November 2012.

Groupe Adecco France a Best-in-Class supplier At the request of its clients, in 2009 Groupe Adecco France began working with EcoVadis, a French company offering its services to procurement teams, in order to implement sustainable supply chain management practices. Since then, EcoVadis has carried out its annual external evaluation of Groupe Adecco France’s CSR performance. The evaluation looks at the following areas: environment, human resources, business ethics and ethical procurement.

For the third consecutive year, the assessment of 2012/2013 shows the commitment Groupe Adecco France has made to stay a top company and supplier for its clients, ranking best-in-class in its industry sector and receiving Gold Class distinction from EcoVadis.

Our Regional Head for Middle East and the UAE participated in the World Economic Forum on Middle East and North Africa, tackling the current state of employment for Arab youth and how to prepare the workforce for the future.

Adecco at the World Economic Forum Regional Meeting in Jordan The Adecco Group is a Strategic Partner of the World Economic Forum and will participate in the 5 Regional Meetings in 2014, in Latin America, East Asia, Europe, China (Annual Meeting of New Champions and India (Economic Summit), which are all committed to improving the state of the world by engaging leaders in partnerships to shape global, regional and industry agendas.

Adecco’s Regional Head for Middle East and the UAE was invited to speak at the Regional Meeting in Jordan to discuss the current state of employment for Arab youth and preparing them for the workforce of the future. The proper training and induction of students to the world of work and entrepreneurship is a major concern and priority and needs to be further encouraged.