Tokmanni Group Corporation: Tokmanni publishes its human rights assessment results

 TOKMANNI GROUP CORPORATION           Press release    3.1.2016

Tokmanni publishes its human rights assessment results  

Tokmanni carried out a human rights due diligence assessment during 2016 based on the UN Guiding Principles on Business and Human Rights. In the assessment potential salient human rights impacts were evaluated, related risks analyzed and follow-up as well as related KPI's agreed.  

- Companies are able to offer low prices while at the same time operating responsibly.   Direct purchases without middle men and large batches reduce costs and make it possible to sell products at a discount.  Direct sourcing from factories also enables a more careful selection and monitoring of suppliers. Tokmanni seeks to respect human rights throughout its operations and to work only with parties that share this respect. Our human rights assessment is a continuous process, and we will publish its results annually, says Tokmanni's CEO Heikki Väänänen.

Tokmanni's potential negative human rights impacts were assessed in 2016 by a core working group - with representatives from Tokmanni's purchasing, HR, security, marketing and sales departments. A questionnaire was sent to selected risk suppliers who also carried out a self-assessment related to human rights.

The salient potential human rights impact in Tokmanni's operations and value chain are: health and safety, safety of buildings, excessive overtime, lack of living wage, child labour and forced labour. The negative impacts identified can impact a range of human rights including the right to work; the right to health; the right to life and the right to a family life.

Mitigation of human right impacts

In 2016, the most significant development needs we have identified are related to further increasing the monitoring of the supply chain and training, as well as strengthening our approach to stakeholder engagement, particularly with non-governmental organisations and trade unions, and cooperation with other operators in the field of trade and government representatives.  The goal is to combine measures with existing tools as much as possible. Tokmanni has several principles and guidelines responding the challenges related to the salient issues. The most important measures are:

Our own operations

• Improving occupational health and safety 
• Improving the safety of business travel 
• Increasing flexibility of work 

Purchasing

• Developing the strategy and action plan for responsible sourcing
• Developing the supplier management system that enhances tracking and managing complex supply chains  
• Developing a complaint and remedy process to  meet the effectiveness principles for grievance mechanisms that are contained in the UN Guiding Principles
• Digging deeper in the supply chain 

A higher degree of freedom of association and collective bargaining would assist in preventing or minimizing a number of significant human rights impacts in risk countries. They are ways to ensure adequate wages and appropriate working hours, for example. 

Human rights assessment work continues in order to ensure corporate responsibility

Tokmanni will update its human rights assessment annually based primarily on the results of BSCI audits and its own audits, as well as complaints filed via various channels. The goal is to continuously reduce potential human rights impacts.

In 2017, Tokmanni will be seeking to test these findings with potentially impacted stakeholders. We are planning to set up a process to liaise with workers/ worker groups in our higher-risk countries as well as from organizations that have good insight from the ground and neighbouring communities.

More information: https://ir.tokmanni.fi/en/responsibility/human-rights-report-summary

Contact:

Outi Mikkonen, Head of Corporate Responsibility, +358 20 728 6529
outi.mikkonen@tokmanni.fi

Tokmanni and human rights

Tokmanni respects human rights, and requires its business partners to do the same. 

Tokmanni's operations are guided by the Code of Conduct and its supplementary principles, which also include human rights principles. Tokmanni's human rights principles were prepared as part of its Compliance programme in 2015 to support and deepen its Code of Conduct. 

Tokmanni requires its suppliers and other business partners to commit to its Code of Conduct as part of their contracts. Suppliers of goods must also commit to the Business Social Compliance Initiative (BSCI) Code of Conduct.   

Tokmanni in brief

Tokmanni is the largest general discount retailer in Finland measured by number of stores and revenue. In 2015, Tokmanni's revenue was EUR 755 million and on average it had approximately 3,200 employees. Tokmanni is the only nationwide general discount retailer in Finland, with 156 stores across Finland as at 31 December 2015. Tokmanni's shares are listed on the Nasdaq Helsinki main list.