SKF defines key stakeholder groups as customers, investors, suppliers, employee representatives and representatives from society in general. The Group works in different ways to interact with these and other stakeholders as part of the materiality assessment along with input from academic research and industry collaboration. This allows SKF to better understand various perspectives and concerns, and address them quickly.
Customer input is sought and received via the sales and marketing operations and activities carried out by the Group – from global discussions with key account managers to daily conversations between customer representatives and SKF’s local account managers plus extensive customer perception surveys carried out on a regular basis by SKF’s business areas. The input received helps the company to continually improve customer value.
Investors and analysts
SKF takes an active approach in communicating the Group’s strategy and performance to existing and potential investors, analysts and media. Information is provided through various channels such as the quarterly reports, meetings with investors, telephone conferences, the company’s website and press releases. An annual capital markets day is held to present the strategy, targets and the different businesses in more detail. SKF receives feedback from investors via its own questionnaires, feedback collected after investor meetings and continual feedback in discussions.
Employees and union organizations
SKF holds an annual World Works Council meeting during which employee representatives meet with Group Management. The agreements and conclusions from these meetings are acted upon and followed up. Employee representatives are also members of SKF’s Board – see SKF’s Corporate Governance Report. In addition, SKF carries out an employee feedback survey in the SKF Working Climate Process (WCP), around every 18–24 months. The findings from the WCP are used to implement improvements in the working climate and performance at all levels within the company – from local teams to Group Management.
The communities in which SKF operates are important stakeholders for the company. Local SKF organizations interact with their surrounding communities through various activities and initiatives ranging from business related matters to volunteer work, other charity work and sponsoring and local network collaboration.
SKF is actively involved in various business organizations. SKF utilizes these networks to share experiences and ideas with other companies and develop the company’s thinking and approach on many issues. SKF has established working relationships with certain nongovernmental organizations (NGOs) such as the World Wide Fund for Nature (WWF). SKF invites feedback and input from these NGOs about issues such as climate change and other environmental, social and economic concerns.
The cost of goods and services purchased by SKF amounts to about half of the Group’s revenues. Close collaboration and dialogue with suppliers is crucial for assuring the Group’s continued success. Local sourcing offices enable close communication on daily operations. On site audits provide feedback to SKF on suppliers’ adherence to the Code of Conduct and on their performance, it also supports competence development of both suppliers and SKF.