Social responsibility
Sustainable business that generates value for future generations lies at the heart of Marimekko’s business idea. The company must act responsibly and respect environmental values. The commitment to responsibility is supported by the company’s social responsibility training and development programme, internal guidelines and the obligations included in co-operation agreements.
Marimekko’s interest groups are increasingly looking at both financial and non-financial indicators to assess the company’s performance. In 2007, the company launched a project to develop a social responsibility management system for the entire Group. The objectives are to meet interest groups’ expectations even better and to improve the company’s responsible practices. An internal team was established for this purpose. The members include experts from all the areas of the company’s business operations. The team’s primary goal is to identify the essential aspects of social responsibility and the concrete targets of development that have or may have a significant effect on the company and are particularly important to Marimekko’s main interest groups. The team received social responsibility training in November 2007. The purpose of the training was to help the team members to understand the significance of responsibility as an element of everyday work and profi table business.
In 2008, the company will focus on specifying the general guidelines and goals for the next few years. These guidelines and goals will be applied and implemented in the business areas through activity-specific solutions. The objective is to make responsibility a natural part of business operations, based on shared values and goals. The implementation of social responsibility principles involves continual training and development. It is a long-term process that requires expert assistance. One of the company’s partners in this work is PricewaterhouseCoopers Ltd. Marimekko aims to have the social responsibility section in its Annual Report verified by a third party within the next few years.
Financial responsibility
Achieving a good financial result by responsible means is becoming increasingly important to all of the company’s stakeholders. Responsible performance helps to ensure the company’s competitiveness and long-term profitability. Marimekko seeks to grow and evolve in a controlled manner, thus securing the smooth continuity of its business. By keeping its finances on a solid foundation, the company can provide steady returns to its shareholders and fulfil its obligations as a responsible employer. Moreover, a good financial result enables projects that enhance the company’s environmental and social responsibility.
Marimekko has set clear financial objectives for its business operations. The financial responsibility indicators are associated with profitability and competitiveness and response to the owners’ profit expectations. The company aims to follow a stable and active dividend policy. Information on the company´s shares and shareholders.
Social responsibility
Social responsibility includes caring for the well-being of Marimekko’s personnel and requiring the company’s partners to be socially responsible. Information on Marimekko’s personnel is given on page 26. In manufacturing, the proportion of subcontractors has grown considerably in recent years. As a Finnish company, Marimekko always tries to find a competitive Finnish manufacturer for its products. The company’s foreign suppliers are mainly located in the EU area. Marimekko has few subcontractors in developing regions. However, the effect of globalisation on Marimekko’s business environment in international trade is becoming stronger, and this imposes new requirements on the company’s operations. Transparency of the entire supply chain is becoming an increasingly important factor in the selection of suppliers. Suppliers must be able to ensure that the operations of their respective subcontractors are responsible.
The responsibilities and principles applied in supplier relationships are laid down in Marimekko’s co-operation agreements. The parties commit themselves to adhering to internationally recognised social and ethical norms. All sourcing agreements require partners to follow the fundamental rules laid down by the ILO. They relate to forced labour, freedom of association, promotion of employment, social security, discrimination, minimum age and working conditions. Marimekko, or its authorised representative, has the right to check compliance with the agreed processes and the ILO’s fundamental rules. Furthermore, Marimekko has the right to require a partner to correct any detected shortcomings.
Whenever possible, Marimekko aims to use certified suppliers with valid standards or certificates that are internationally recognised or important in Marimekko’s branch of business. These include the ISO 9000 and ISO 14000 standards, the Social Accountability SA 8000 standard, the Öko-Tex Standard 100 certificate and the Business Social Compliance Initiative (BSCI) monitoring system. Of these, the ISO 9000 and ISO 14000 standards and the Öko-Tex Standard 100 are the most common in Marimekko’s supplier companies. Because of the complexity of supply chains, resulting from globalisation, Marimekko cannot guarantee that the operating models of all suppliers in its supply chain fully meet the company’s requirements. However, as Marimekko’s awareness of possible defects in the supply chains has significantly increased, the company is now focusing on improvement of transparency. In 2007, to enhance the monitoring of social and environmental quality, Marimekko requested its suppliers to provide additional reports on their existing standards and certificates, as well as the origins and production conditions of the raw materials they use. All Marimekko products carry a country of origin label to enhance transparency in the production processes.
Product safety and ecology
Marimekko products are characterised by durable design and quality. The carefully-designed products with their high-quality materials give long-lasting joy to their owners. Therefore, a Marimekko product is a sustainable choice. The company is engaged in continual product development to improve the environmental friendliness of its products. As the proportion of subcontracting increases, quality control is becoming more and more important.
Marimekko bed linen, as well as several clothing materials and knits, have been granted the Öko-Tex Standard 100 certificate, which guarantees that the products do not contain any substances that are hazardous to people or to the environment. In 2007, Marimekko’s terry cloth products received the Öko-Tex certificate. The Öko-Tex standard has four levels: I baby clothes, II clothes worn next to the skin, III other clothes and IV other textile products. Level I has the strictest requirements. Marimekko products comply with level I or II Öko-Tex standards.
In spring 2007, Marimekko launched organic cotton terry products. This spring the company introduces organic cotton bed linen. The cotton production chain is wide, complex and difficult to trace. Organic cotton is grown without using any environmentally harmful pesticides or fertilisers. Its production process is certified, and the origin of the cotton is traceable. The objective is to increase the proportion of organic cotton in Marimekko’s product range. So far, the low availability of organic cotton has limited its use.
The environment
Responsibility for the environment and nature is an integral aspect of Marimekko’s business. In environmental matters, the company’s business supervision is largely based on legislation and other regulations. Environmental legislation and environmental impacts are taken into consideration in the choice of raw materials, chemicals and working methods. The materials used in the products are tested regularly. The co-operation agreements require Marimekko’s subcontractors and other partners to commit themselves to shouldering their environmental responsibilities.
The REACH Regulation 1907/2006 (a regulation on the registration, evaluation, authorisation and restriction of chemical substances) entered into force in the European Community on 1 June 2007. The REACH provisions will be phased in over a period of eleven years. Companies must identify their roles in relation to the REACH Regulation. Marimekko is a downstream user that uses substances in its own industrial operations to print fabrics. The manufacturers and importers of chemicals have the obligation to register the substances. As a downstream user, Marimekko does not have the obligation to register, and the REACH Regulation is not expected to have any significant effect on the substances used at the Herttoniemi fabric printing factory. The REACH Regulation also applies to substances contained in articles imported from outside the EU, such as textile products. As an importer of articles, Marimekko is, under certain conditions, obliged to inform the Chemicals Agency and downstream users if a product imported by it contains a specified amount of a substance causing specific concern. The European Chemicals Agency (ECHA) will publish a list of the substances in 2009.
Energy and water consumption
The company seeks to save energy by developing its production methods, investing in energy-efficient machinery and equipment and monitoring energy consumption. Thanks to a waste heat recovery system at the Herttoniemi textile printing factory, most of the heat released during production can be used to heat the production premises. In manufacturing, the oil circulation system used in process heat production will be replaced with direct natural gas heating. It is a more efficient heating method and will generate savings of about 20% in energy consumption. Water consumption is minimised in the printing process by recycling water wherever possible.
Waste and sorting
Marimekko’s production processes do not generate any waste that is classified as hazardous or detrimental to health. The amount of mixed waste is minimised by recycling and by sorting any non-recyclable waste. The company monitors the generation, recycling and sorting of waste with reports and statistics on operations.
Packaging
The utilisation of packaging is arranged in accordance with the Government Decision 962/97 and the EU packaging directive. The ecological aspects of product packaging are becoming increasingly important at Marimekko. For example, the new clear polypropylene gift box is fully recyclable and can be disposed of by incineration.
Activities in the local community
As a design company, Marimekko feels a responsibility towards the preservation of creative culture. In its operations, it actively strives to support the development of Finnish design. Marimekko fosters its solid cultural heritage by engaging in close co-operation with the educational institutions and associations in its branch of business. Such co-operation includes training for students, projects related to the promotion of design, competitions and participation in exhibitions and other design events. Marimekko mainly sponsors activities that are non-profit making or closely related to Marimekko’s business operations.
In October 2007, Marimekko participated in the Finnish Cancer Foundation’s Pink Ribbon campaign with two products specifically designed for this purpose: the pink Unikko reflector and the Valo cosmetic bag. Marimekko donated part of the return from the sales of the products to the Cancer Foundation’s Pink Ribbon Fund. The campaign was launched simultaneously in more than forty countries. In addition, the money budgeted for Christmas greetings in 2007 was donated to the Save the Children organisation.