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Key performance indicators – employees1 Target 2010 2011 2012 2013 2015 1 More details can be found on our website. People data Employee numbers (FTE) 55,600 57,240 55,272 49,561 – Employee engagement Employee engagement (ViewPoint score (1-5 scale)) 3.56 3.74 3.80 3.88 >4 Diversity and inclusion % of female executives 12 13 15 16 20 % of executives from high growth markets 12 13 13 14 20 % of female executive potentials 27 26 27 28 30 % of executive potentials from high growth markets 26 31 31 34 30 Talent management % of online P&D Dialog participation 76 78 84 85 95 % of cross-BU moves of leadership talents 5 6 5 7 10 % internal promotion into [...]

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Note 11: Our people

[...] We can only develop a high performance culture that focuses on operational excellence when all our employees are fully engaged to excel. In 2013, we made significant progress. We embraced new values and behaviors that address habits which have held us back in the past, and support us in driving a culture of excellence in business performance and integrity. See the Strategy section for a detailed description. In October, an awareness campaign was launched and we have taken initial steps to integrate our new values and behaviors into key HR processes – recruitment, assessment, performance management and talent development. The new values and behaviors, and new [...]

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Compliance and integrity management

[...] for doing business. The code applies equally to our corporate actions and the behavior of individual employees, regardless of the market segment, function or country in which we operate. The Code of Conduct, Business Principles, directives, rules, manuals and guidelines are part of the company’s directives framework, which set out internal rules for employees. Available in 27 languages, the code is regularly distributed in paper form and widely available online. AkzoNobel is subject to local, regional and international laws and regulations, regulatory controls and customs and practices in the countries in which we do business. Our legal and compliance experts are [...]

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Reporting and monitoring

AkzoNobel has developed a set of corporate reporting and monitoring tools to manage compliance and integrity at the company. The compliance department manages these tools and reports on outcome and effectiveness to the Compliance Committee. Complaints procedure (SpeakUp!) As mentioned earlier, this is the internal system, available 24 hours a day, which encourages employees to report alleged breaches of the Code of Conduct. The system is also available for temporary employees, third parties with whom AkzoNobel has a business relationship (such as customers, suppliers and agents) and members of the general public. Integrity management 2010 2011 2012 2013 * By [...]

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Note 15: Post-retirement benefit provisions

[...] plans in the UK. The benefits of these pension plans are based primarily on years of service and employees’ compensation. The funding policy for the plans is consistent with local requirements in the countries of establishment. We also provide certain healthcare and life insurance benefits to retired employees, mainly in the US and the Netherlands. Valuations of the obligations under the plans are carried out regularly by independent qualified actuaries. We accrue for the expected costs of providing such post-retirement benefits during the service years of the employees. Governance of the benefit plans is the responsibility of the Board Committee Pensions, a [...]

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Note 3: Stakeholder engagement

Our approach The aim of our stakeholder engagement is to learn from key financial, social and environmental stakeholder groups and in collaboration to develop leading sustainability solutions relevant to: Our stakeholder needs Implementation of strategic targets Management of risks and opportunities Our key stakeholders are employees, customers, suppliers, investors, communities, specific sustainability/research organizations and NGOs. This section includes some highlights. More details can be found on our website and in the Strategy section and other chapters of this Report 2013: Communities: Note 13 of this section Customers: Business performance section [...]

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Note 13: Community

[...] – run by our Decorative Paints business – also includes the participation of many of our employees. In fact, hands-on involvement in local initiatives is something we encourage, which is why we launched the AkzoNobel Community Program in 2005. The development of young people is another area we are passionate about. Since 1994, with the help of the Plan International organization, we have been supporting children around the world through our Education Fund. We also run a global sponsorship program, which focuses on two main areas – developing talent in communities through education initiatives, and supporting heritage, culture and the arts and sciences by [...]

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Note 7: People health and safety

[...] total reportable injury rate of independent contractors, reversing the recent increase. The TRR for employees and supervised contractors decreased to 2.3 (2012: 2.4) The breakdown per Business Area shows that the TRR for Decorative Paints decreased to 1.9 (2012: 2.7) which is below the TRR 2015 ambition and the TRR for Specialty Chemicals is at the 2013 ambition of 2.2 (2012: 1.8). The Performance Coatings TRR slightly increased to 2.8 (2012: 2.6) The overall downward trend in reportable injuries coincides with both the implementation of our Life-Saving Rules at all our facilities, and the global roll-out of the people, process and product safety programs that are [...]

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[...] complaints handled by the Compliance Committee number 19 23 24 24 9 – – Code of Conduct trained % employees 95 95 95 96 95 – – Health and Safety Fatalities employees number 0 1 2 2 0 0 0 Total reportable injury rate employees/ supervised contractors /million hours 3.7 3.6 3.1 2.4 2.3 <2.0 <1.0 Lost time injury rate employees/ supervised contractors /million hours 1.5 1.6 1.3 1.1 1.3 1.3 – Occupational illness rate employees /million hours 0.4 0.3 0.3 0.2 0.1 – – Total illness absence rate employees % of sites 2.0 1.9 2.0 2.0 2.1 1.9 – Fatalities contractors (supervised plus independent) number 3 0 1 0 0 0 0 Total reportable injury rate [...]

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Note 4: Employee benefits

Salaries, wages and other employee benefits in operating income In € millions 2012 2013 Salaries and wages (2,354) (2,268) Pension and other post-retirement cost (248) (268) Other social charges (416) (414) Total (3,018) (2,950) Average number of employees During the year 2012 2013 Decorative Paints 17,200 16,800 Performance Coatings 21,700 21,300 Specialty Chemicals 11,800 10,600 Corporate and other 1,500 1,500 Total 52,200 50,200 The average number of employees working outside the Netherlands was 45,000 (2012: 47,100). Number of employees At year-end 2012 2013 Decorative Paints 17,000 16,200 Performance Coatings 21,300 21,400 Specialty Chemicals 10,800 10,400 [...]

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