Securitas Argentina Corporate Social Responsibility Report · Securitas Argentina 3 2014 CSR Report...

88
Securitas Argentina Corporate Social Responsibility Report 2014

Transcript of Securitas Argentina Corporate Social Responsibility Report · Securitas Argentina 3 2014 CSR Report...

Page 1: Securitas Argentina Corporate Social Responsibility Report · Securitas Argentina 3 2014 CSR Report For Securitas Argentina, 2014 has been the ... Private Security sector 36 ... the

Securitas Argentina

Corporate Social Responsibility Report

2014

Page 2: Securitas Argentina Corporate Social Responsibility Report · Securitas Argentina 3 2014 CSR Report For Securitas Argentina, 2014 has been the ... Private Security sector 36 ... the

2 Securitas Argentina

2014 CSR Report

Page 3: Securitas Argentina Corporate Social Responsibility Report · Securitas Argentina 3 2014 CSR Report For Securitas Argentina, 2014 has been the ... Private Security sector 36 ... the

Securitas Argentina 3

2014 CSR Report

For Securitas Argentina, 2014 has been the year in which we were able to strengthen and consolidate our management model, creating new leadership for the future. We defined an Organization model that allowed us complying with our Strategy reflected in “The road to follow” [Camino a Seguir]: Committed Employees, Loyal Customers and Sustainable Profits.

As regards our people, we were focused on the generation of different scenarios in order for them to propose ideas to improve the labor environment and the way we render our services. To such effect we conducted the Labor Environment survey and performed the Innovative Ideas Contest and the Customer Case Contest.

We continued offering security solutions to our customers through the integration of a technological component which is becoming more and more important and is supported by our employees’ capacity.

The Solution Management Centers (CeGes) are already operating in the four Regions. All security processes carried out remotely, from the Information and Control Centers to the recently incorporated Remote Video, including Alarm management and Trailback®

(georeferenced information) are concentrated in each of them.

We continue moving forward as regards transparence when it comes to accountability to our Stakeholders through our Sustainability Report, in agreement with GRI 4 Guidelines and training our 14,000 countrywide employees in our Values and Ethics Code, available through e-learning. Our channel to solve queries and complains “Ombudsman” [Defensor del Empleado], aligned to SIL (SecuritasIntegrity Line), allows our employees revealing labor and ethics situations that were not solved with their line of command ensuring confidentiality and effective response.

We also continue moving forward in our commitment with Stakeholders and, in addition to classic yearly conversations, we also included the challenge of our Materiality Analysis in order to meet the objective to set forth issues that are relevant for the business, enhancing our management approach and obtaining core information to structure the contents of this Report.

I invite you to read this new Report in order to obtain more information on those issues that help our Industry to grow.

Christian FaríaGeneral ManagerSecuritas Argentina

Letter from the General Manager

Page 4: Securitas Argentina Corporate Social Responsibility Report · Securitas Argentina 3 2014 CSR Report For Securitas Argentina, 2014 has been the ... Private Security sector 36 ... the

4 Securitas Argentina

2014 CSR Report

2014 Report “Securitas Argentina S.A. has prepared this Corporate Social Responsibility Report pursuant to the Global Reporting Initiative (GRI). For the first time with G4 guidelines, choosing the modality Essential. The information included herein corresponds to calendar year 2014 and refers to activities of the Company within the territory of the Argentine Republic. Securitas Argentina prepares its Sustainability Report every year; the last edition corresponds to year 2013. The 2014 CSR Report has not been audited by external auditors.

CSR StrategySecuritas commitment with social responsibility is a manner to conduct business so as to add economic, social and environmental value to our Stakeholders and, in turn, create reputation value for Securitas’ brand.

Securitas Argentina offers services with a positive impact in the community. Its customers comprise a wide range of sectors and segments of the industry, some of them are particularly important for society as a whole. When high quality solutions are offered and operated in a responsible manner, customers can concentrate in their strategic objectives and development.

The approach “security solutions” that exceeds surveillance hours allowed Securitas to go beyond the mere

competition for price and to build value ahead the value chain, which, in turn, permits Securitas to offer an integrated security solution portfolio and to exercise human resources management policies and practices that ensure work quality and employability conditions that overcome standards of the sector in the local market.

Securitas undertakes its role as a leader and since it is one of the biggest employers in the Argentine market, it defines its responsible management strategy aimed at sustainability and focused on the demands from main Stakeholders.

Securitas’ stakeholders main demand is to carry out their businesses so as to contribute to employability and quality of work as well as to the transparence of their obligations.

In such sense, the efforts are directed towards constant improvement of CSR management and conversations with main Stakeholders. The publishing of the 2014 CSR Report pursuant to GRI4 guidelines is another step towards such goal.

Contact: [email protected]

Introduction

Page 5: Securitas Argentina Corporate Social Responsibility Report · Securitas Argentina 3 2014 CSR Report For Securitas Argentina, 2014 has been the ... Private Security sector 36 ... the

Table of Contents1. General Information- Sustainability Data 6

2. Organization’s profile 102.1 Securitas’ Group 102.2 Securitas in Argentina 10

3. 2014 CSR Report 133.1 2014 CSR Report Team 153.2 Securitas and its Stakeholders 163.3 Criticality Analysis 163.4 Analysis of material aspects and coverage 183.5 Sustainability advances 20

4. Corporate Governance 214.1 Ethics and Integrity 234.2 Proactive Risk Management and Internal Control 264.3 Entrepreneurial Risk Management in four stages 294.4 Declaration of Human Rights 304.5 Responsible Management aimed at Sustainability 31

5. A company built by persons 345.1 We Foster personal and professional development of the

Private Security sector36

5.2 Prevention of Labor Risks - Health and Safety at Work 385.3 Education and Employability fostering - Training

and Education40

5.4 Diversity management 455.5 Inclusive Security 46

6. Responsible Business Model 486.1 Strategic Business Management: The Diamond Box model 506.2 Security Solutions at the Customer’s services 516.3 Securitas 360 - Specific solutions 536.4 Securitas’ responsibility as market leader 546.5 Chain of Value 566.6 Contest Customers’ Cases 586.7 Contest Securitas Innova 596.8 Inclusion of technology to the Security Guard’s activity 606.9 Solution Management Center (CEGES) 616.10 Securitas Connect 626.11 Customers’ satisfaction 63

7. Annex Community 65

8. Annex Environment 68

9. Annex Dialogue with Stakeholders 70

10. GRI Indicators Table 82

11. Readers’ Opinion 86

Page 6: Securitas Argentina Corporate Social Responsibility Report · Securitas Argentina 3 2014 CSR Report For Securitas Argentina, 2014 has been the ... Private Security sector 36 ... the

6 Securitas Argentina

2014 CSR Report

Securitas Argentina in numbers

Certain key indicators:

(*) Active personnel as of December 31, 2014, considered pursuant to the number of pension contributions made at the closing of the fiscal year.

Securitas Argentina’s employees (*)

Number of employees per region

Number of employees per labor category and per gender

20110

2.000

4.0006.0008.000

10.00012.00014.00016.000

2012 2013 2014

City of Buenos Aires and Suburbs

South

Central

Littoral

2013 2014City of Buenos Aires and Suburbs 9,717 9,216

South 1,942 2,075

Central 1,974 1,549

Littoral 1,372 1,339

Total 15,005 14,179

Number of employees per labor category

0

Management Level

Middle Management

Operating Level

5.000

Men Women

10.000 15.0000

2011

2012

2013

2014

5.000 10.000 15.000 20.000

Management LevelOperating Level

Middle Management

General Information Sustainability Data

1

Page 7: Securitas Argentina Corporate Social Responsibility Report · Securitas Argentina 3 2014 CSR Report For Securitas Argentina, 2014 has been the ... Private Security sector 36 ... the

Securitas Argentina 7

2014 CSR Report

Employees’ age range per gender

Employees included in the labor bargaining agreement

Turnover Rate

Employees with physical disability

2014

New hiring rate 15.94%

Men 15.72%

Women 19.41%

2012

2012

2013

2013

2014

2014

Employees included in labor bargaining agreement

% of operating employees included in the collective bargaining agreement considering all operating personnel 100%% of staff employees included in the collective bargaining agreement considering all staff personnel 0%

Employees not included in labor bargaining agreement

Operating personnel

40%35%30%25%20%15%10%

5%0%

25

20

15

10

5

0

21.76%

100%94%

Number of employees per gender

0

Less than 30 years old

Between 30 and 50 years old

Over 50 years old

500

Men Women

1,000

0

2012

2013

2014

5,000

WomenMen

10,000 15,000 20,000

Securitas Argentina 7

Page 8: Securitas Argentina Corporate Social Responsibility Report · Securitas Argentina 3 2014 CSR Report For Securitas Argentina, 2014 has been the ... Private Security sector 36 ... the

8 Securitas Argentina

2014 CSR Report

Training hours per employee

Education level of Securitas’ employees

Number of Health and Security CommitteesSecuritas takes part from time to time in occupational Security and Health committees organized by its customers.

Training hours per labor category

Training hours per gender

3%

90%

7%

Low (school education or lower education)

High (university education or higher)Security Guards

Employees taking part in Committees

Security Guards

WomenMedium (tertiary education or post-secondary education)

Staff

Staff

Men

2013

Men

20130

0 0

0

100,000

5 20

100,000

200,000

1040

200,000

300,000

1560

300,000

400,000

2080

400,000

500,000

25

100

500,000503,700 503,700

381,056 381,056

600,000

30

12035

1404045

600,000

2014

Women

2014

Training hours per employee represent an average corresponding to the number of training hours over Securitas Argentina’s total employees.

Training hours only include hours from Instittuo Securitas without considering external training.

020

406080

100120140160180200

2012 2013 2014

Page 9: Securitas Argentina Corporate Social Responsibility Report · Securitas Argentina 3 2014 CSR Report For Securitas Argentina, 2014 has been the ... Private Security sector 36 ... the

Securitas Argentina 9

2014 CSR Report

Retained Economic Value (VER)Reserves, amortization and depreciation, etc.

AR$0

AR$20,000,000

AR$40,000,000

AR$60,000,000

AR$80,000,000

AR$100,000,000

AR$120,000,000

AR$140,000,000

AR$160,000,000

AR$180,000,000

AR$200,000,000

2013 2014

Direct Economic Value Created (VEC)Income: net sales plus income from financial investments and asset sales.

AR$0

AR$500,000,000

AR$1,000,000,000

AR$1,500,000,000

AR$2,000,000,000

AR$2,500,000,000

AR$3,000,000,000

2012 2013 2014

Distributed Economic Value (VED)Operating costs: payments to suppliers, royalties and facilitation payments or monetary giftsSalaries and social benefits for employees: total payments made to employees and social contributions. It does not include commitments to make future payments.Payments to government: duties and gross income taxes.

Operating costs Payments to government

Payments to suppliersSalaries and social benefits for employees

AR$0

AR$500,000,000

AR$1,000,000,000

AR$1,500,000,000

AR$2,000,000,000

AR$2,500,000,000

AR$3,000,000,000

20122011 2013 2014

Page 10: Securitas Argentina Corporate Social Responsibility Report · Securitas Argentina 3 2014 CSR Report For Securitas Argentina, 2014 has been the ... Private Security sector 36 ... the

10 Securitas Argentina

2014 CSR Report

2.1 Securitas GroupSecuritas AB is a Swede global company that offers security solutions in 53 countries and operates in 54 markets (China has two markets). The activities are carried out in four regions: Europe, United Sates, Ibero-America y New Markets (Africa, Asia and Southeastern area of Asia). It has approximately 320,000 employees. Each branch develops the relationships with their customers creating a proximity that is essential to develop the business. This combination of global company and strong local presence creates an important added value to our customers.

Securitas, which main office is in Sweden, organizes its operations in a flat and decentralized structure divided into three business segments: Security Services North America, Security Services in Europe and Security Services in Ibero-America. Furthermore, it also renders security services in a market that is relatively new for the group composed of its operations in Africa, Middle East and Asia (AMEA).

Security Services in Ibero-America:• 7 Latin America countries, Spain and Portugal.• 15% of joint business.• 57,000 employees.

2.2 Securitas in ArgentinaSecuritas is the leading security solutions company rendering services to a wide variety of industries and customer segments.

Currently, Securitas is the sector market leader in Argentina: it has the greatest number of employees, the greatest market share and the greatest billing and has an active role in the improvement and professionalization of private security.

Organization’s profile

Organization’s profile

2

Page 11: Securitas Argentina Corporate Social Responsibility Report · Securitas Argentina 3 2014 CSR Report For Securitas Argentina, 2014 has been the ... Private Security sector 36 ... the

Securitas Argentina 11

2014 CSR Report

Buenos AiresCentralLittoralSouth

Buenos Aires

Region

South Region

Central Region

Littoral Region

15% joint business

57,000 employees

53 countries

320,000 employees

Latin American countries, Spain and Portugal7 4 Regions:

Argentina Ibero-America

Securitas Group

Page 12: Securitas Argentina Corporate Social Responsibility Report · Securitas Argentina 3 2014 CSR Report For Securitas Argentina, 2014 has been the ... Private Security sector 36 ... the

12 Securitas Argentina

2014 CSR Report

In order to have a more effective communication with customers and collaborators, and to offer security solutions countrywide, Securitas Argentina is strategically divided into four regions. Such design ensures presence in the whole country in order to offer the best security solutions to all customers through a decentralized and flexible model:

• Buenos Aires (Offices in the city of Buenos Aires and in Buenos Aires suburbs).

• Littoral (Main office in Paraná).• Central (Main office in Córdoba).• South (Main office in Bahía Blanca).

100% of Securitas’ Senior Management comes from local community. It means that they are from the jurisdiction where the Company and/or services are locally based, which corresponds to the branches of the four regional offices.

Likewise, the criterion of local hiring preference is applicable to Securitas’ security personnel, which consists of hiring persons residing within a radius not exceeding 30km of the working place. This condition evidences not only commitment of the Company towards generating employment within cities it operates but also improves the life level of employees respecting the Collective Bargaining Agreement applicable to the activity.

Having four regions allows us to be closer to our customers

At main offices, teams of Argentine Staff define the business strategies to be implemented countrywide and coordinate and watch compliance thereof in all the territory. At Instituto Securitas all training programs for employees are defined and from the Ability Center [Centro de Competencias] knowledge is developed and information relevant to the industry is gathered to continue obtaining knowledge for the sector.

Securitas’ capital structure is composed as follows: 80% is owned by Securitas SeguridadHolding SL, a Spanish limited company, 19,9% is owned by Securitas AB and 1 share is owned by the President of Securitas Argentina.

The outstanding characteristic of Securitas’ acquisition model at global level is “continuity”, both of all working teams as well as employees of every acquired company. Such model ensures minimization of impacts in connection with relationship with customers, keeping the level of excellence as regards management and expertise existing before acquisition, and also keeping, in turn, the source of employment for all members.

During 2014 all brand transitions from the company Fuego Red and Trailback® ended. Such companies had been acquired in 2012 and Federal Resguard in 2013. Their management teams, employees, client’s portfolios are already part of Securitas and render services through Segments Fuego, Trailback® and the team from Federal Resguard works with is main office in the Province of Mendoza.

Page 13: Securitas Argentina Corporate Social Responsibility Report · Securitas Argentina 3 2014 CSR Report For Securitas Argentina, 2014 has been the ... Private Security sector 36 ... the

Securitas Argentina 13

2014 CSR Report

32014 CSR Report

Page 14: Securitas Argentina Corporate Social Responsibility Report · Securitas Argentina 3 2014 CSR Report For Securitas Argentina, 2014 has been the ... Private Security sector 36 ... the

14 Securitas Argentina

2014 CSR Report

This is the sixth edition of Securitas Argentina CSR Report and the first using guidelines G4 from the Global Reporting Initiative (GRI).

With this edition Securitas renews its commitments to Stakeholders and transparence informing on economic, social and environmental performance of its operations in Argentina.

Bearing in mind the particularities of each region, the CSR strategy has domestic level and it is implemented in the whole territory. Its course of action follows strategic guidelines set forth by Securitas Group with global application, inspired in the main international standards.

The process to prepare Securitas 2014 Report required the participation of Senior Management. Area Directors were in charge of the review, validation and approval of the final wording of this Report. In this way,

2014 CSR Report

Close to our people

Close to our

customers

Closeto our

shareholders

transparence and transversality are fostered in the reporting process and also all material aspects of the application area are reflected in relevant issues to be included in the next report.

Page 15: Securitas Argentina Corporate Social Responsibility Report · Securitas Argentina 3 2014 CSR Report For Securitas Argentina, 2014 has been the ... Private Security sector 36 ... the

Securitas Argentina 15

2014 CSR Report

3.1 2014 CSR Report Team

Management and Finance Department:Alberto Alesci - Director Gastón Corrado - Tax Responsible PersonYanina Marquevich - Internal Control and Processes ImprovementBrenda Ratto - Purchase ChiefLeila Rivas - TaxesFernando Russo - Reporting and Management Control Responsible PersonVerónica Solorzano - Accounting ChiefSebastián Vega - Payroll Chief

Commercial Department:Natalia Pereyra - Coordinator

Communication, PA and CSR Department:Vanesa Colaneri - CSR Analyst and Report CoordinatorJimena Ezcurra - Communication and Brand AnalystCarolina Hansen - Image and Brand AnalystPatricia Sclocco - Director

Innovation and Technology Department:Bibiana Ferreira - Controller and Management

Buenos Aires Region Department:Ruth Tosi - Chief Regional Quality

Risk and Legal Department:Maximiliano García - Security, Health and Environment Responsible PersonVerónica Loizaga - Risks and LegalAngela Pace - Quality Responsible PersonJuan Ratto - Director

Human Resources Department:Agustín Baeck - School, Personal and Business Development CoordinatorLuis Lagos - National CoordinatorPatricia Lindblom - DirectorGladys Rodriguez - Psycho-social Medical Team Coordinator

General Management:María Laura Paladini - Management Support

PresidentLuis Vecchi - President

RR.II Department:Néstor Cruzado - Director

Page 16: Securitas Argentina Corporate Social Responsibility Report · Securitas Argentina 3 2014 CSR Report For Securitas Argentina, 2014 has been the ... Private Security sector 36 ... the

16 Securitas Argentina

2014 CSR Report

3.2 Securitas and its StakeholdersDeepening the analysis commenced in 2013 at regional* level, Securitas first defined the contents of the Report, performed a criticality analysis that involved its main Stakeholders and the Report preparation team in order to set forth relevant material issues for Securitas’ business, strengthening its focus on CSR management.

The process to determine criticality and materiality involved Internal Stakeholders (Report Team, representatives from Senior Management, Staff Employees and Security Guards) and External Stakeholders (Suppliers, Clients and Civil Society Organizations).

* See 2013 CSR Report pages 10 to 12 at http://www.securitas.com/PageFiles/91462/Securitas_Reporte%20RSC%202013%20Vers%20Resumida.pdf

The methodology used was a dialogue session together with an online survey. Both tools helped to evaluate Securitas responsible performance and to gather information as regards expectations on the relevant issues to be included in the next Report.

3.3 Criticality AnalysisThe criticality analysis shows a notable coincidence between Internal Stakeholders and External Stakeholders as regards focus on Securitas sustainable strategy. Criticality, as shown in the graph below, evidences relevance of aspects related to Labor Practices and Customers’ Practices as essential aspects both for the Company and its Stakeholders.

Internal Stakeholders External Stakeholders

Employees Employees

CommunityShareholders

Industry Industry

ShareholdersEnvironment

Environment

Suppliers Suppliers

Clients ClientsCommunity

Page 17: Securitas Argentina Corporate Social Responsibility Report · Securitas Argentina 3 2014 CSR Report For Securitas Argentina, 2014 has been the ... Private Security sector 36 ... the

Securitas Argentina 17

2014 CSR Report

Dialogue Channels with Stakeholders

* Four communication channels from September to December 2014, for 50 employees irrespective of their hierarchy level.

In addition to dialogue instances carried out annually, once the Report is published, Securitas has created different communication channels so as to keep a close relationship identifying risks and opportunities as regards management of impacts and expectations.

Group of Interest Communication Channel Frequency

Shareholders

Web Page, Social Networks (Facebook, Twitter) Blog Info Zona Segura Permanent

Results Report Monthly

CSR Report Annual

Securitas Integrity Line (SIL) Permanent

Employees

Web Page Permanent

SECAR by email Permanent, as needed

Securitas in two lines by email Every two weeks

Ombudsman and SIL Permanent

Magazine Info Securitas Every two months

Virtual Platform Security Guard’s Portal Permanent

Breakfasts with CEO* Monthly

Customers

Web Page, Social Networks (Facebook, Twitter) Blog Info Zona Segura Permanent

Security Guard’s Logs in services Permanent

Magazine Info Securitas Every two months

CSR Report Yearly

SIL Permanent

Industry

Web Page Permanent

Chambers of the sector: CAESI, CAESBA, CASEL, CASEMARA Permanent

CSR Report Annual

SIL Permanent

Community

Web Page, Social Networks (Facebook, Twitter) Blog Info Zona Segura Permanent

SIL Permanent

CSR Report Annual

Suppliers

Web Page Permanent

Letters and mail Permanent, as needed

SIL Permanent

Page 18: Securitas Argentina Corporate Social Responsibility Report · Securitas Argentina 3 2014 CSR Report For Securitas Argentina, 2014 has been the ... Private Security sector 36 ... the

18 Securitas Argentina

2014 CSR Report

3.4 Analysis of material aspects and coverageThe information published was selected based on a Materiality Analysis that follows the guidelines to prepare GRI G4 sustainability reports both as regards “Principles to prepare reports and basic contents” as well as “Application Manual”. The Materiality Analysis carried out is essential since only those affairs that may be reasonably important because they express economic, environmental and social effects of Securitas or because they significantly impact the decisions of Stakeholders are relevant. The “materiality” of an issue determines if it has to be included in the Report.

As it occurred in 2012 and 2013 editions, a dialogue session was held so that Stakeholders could take part. As a result of such session, the Materiality Analysis for the 2014 edition of the Report sought to identify relevant aspects for the Company.

For the purposes of transversally representing the whole Organization, a

Materiality workshop was carried with the participation of the Report Team and representatives of all areas of Securitas that are involved in the management of relevant aspects for Stakeholders that are a priority for Securitas. This process offers to the Company the possibility to know the assessment and perception of the Stakeholders on the CSR management expressed in the Report and at the same time, verifies expectations, interest and opportunities to improve the next report.

These sessions and the online survey sent to Employees (Staff and Security Guards), Customers and Suppliers allowed us to jointly define the Materiality of Securitas Argentina. These results were then assessed by the Report Team and representatives of Senior Management of Securitas to determine the materiality matrix.

In order to perform this task, Securitas obtained advice from external advisors that led participants through different stages of the process.

Materiality Analysis Stages

Report preparation

cycle

Prepara-tion of the

Annual CSR Report

Report publication

Definition of Material

Aspects

Results analysis

Online survey Internal and

External Stakeholders

Dialogue session -

External GI

Page 19: Securitas Argentina Corporate Social Responsibility Report · Securitas Argentina 3 2014 CSR Report For Securitas Argentina, 2014 has been the ... Private Security sector 36 ... the

Securitas Argentina 19

2014 CSR Report

Economic performance

Human Rights Work Environment Product Responsibility

Society0

100

200

300

400

500

600

Ranking of Material Issues for Stakeholders

Pursuant to the materiality matrix, the aspects that are relevant to all Stakeholders are related to the social development of the Company in connection with responsible management of human resources and customers.

The results and main findings of the surveys conducted to our Stakeholders are included in an Annex at the end of this document. Furthermore, at the end of the document there are also included aspects related to environmental performance, that although are not essential to CSR management in Securitas Argentina, are included in the Environment Annex.

Page 20: Securitas Argentina Corporate Social Responsibility Report · Securitas Argentina 3 2014 CSR Report For Securitas Argentina, 2014 has been the ... Private Security sector 36 ... the

20 Securitas Argentina

2014 CSR Report

3.5 Sustainability advances

Values and Ethics Code

• Preparation of a compliance policy in connection with competition and anti-bribery issues.

• Development of an Antitrust Policy related to Corporate Risk adapted to local laws.

• To advance in the internal training on the Anti-bribery Policy of Securitas Group.

• E-learning course on Anti-bribery Policy for employees.• To develop a Proactive Risk Management system and internal

control based on the Proactive Risk Management.

Human Rights

• Advances were made as regards identification of risks related to Human Resources issues.

• Advances were made in training as regards adoption of a matrix to identify risks related to Human Resources.

• To develop a training workshop for Security Guards on aspects related to human rights that are relevant for transactions.

• To go forward as regards identification and management of risks related to human rights.

• Training workshop on Human Rights and identification of risks conducted by the local network of the Global Compact for representatives of Legal Department of Human Rights, Risks and Legal and CSR.

Business Practice

• Advances were made as regards Policies and Procedures at national level, cooperating with Directors from National Support Areas as regards the preparation of national documents to facilitate and support compliance with strategic objectives of the Company’s Business Plan.

• To carry out risks and opportunity analysis that may be identified in aspects related to suppliers’ and customers’ management.

• To align Securitas Argentina’s practices with the ones of the Group in order to assess suppliers’ risks, including audit processes.

• To comply with the policy of agreements of the Group, especially the customers’ business risk analysis.

• To reformulate the supplier assessment policy throughout the whole value chain, including:

• Responsible purchases criteria• Approval of suppliers, including their social and

environmental performance.• Transmssion of good practices of responsibility and respect

with Securitas’ values.

Relationship with employees

• Through the contest “Clients Cases” [Casos de Clientes] we favored the dialogue between regions in connection to good practices and transversally addressed security solutions.

• Advances were made in connection with the project to digitalize Security Guards authorizations.

• Advances were made in the preparation of a Human Resources policy that coordinates current initiatives through a strategic review of programs, focusing efforts on those initiatives that better understand personnel expectations and needs.

• To prepare an e-learning module on “Security and Hygiene at work” for technical and work personnel.

• Through the program “Familia Securitas” to contribute to the improvement of Security Guards employability improving in turn the traceability measurement of employment quality.

Information • Advances were made as regards Securitas Argentina’s dialogue with Stakeholders through consultation.

To continue and improve dialogue with Stakeholders. To work in order to continuously improve quality of data of the GRI G4 Report.

2015 Priorities2014 Priorities and Results

Page 21: Securitas Argentina Corporate Social Responsibility Report · Securitas Argentina 3 2014 CSR Report For Securitas Argentina, 2014 has been the ... Private Security sector 36 ... the

Securitas Argentina 21

2014 CSR Report

4Corporate Governance

Page 22: Securitas Argentina Corporate Social Responsibility Report · Securitas Argentina 3 2014 CSR Report For Securitas Argentina, 2014 has been the ... Private Security sector 36 ... the

22 Securitas Argentina

2014 CSR Report

The Round Table cooperates with the CEO as regards definition and follow-up of the Business Strategy.

CEO/ Christian Faría

Administration and Finance Director / Alberto Alesci

Buenos Aires Region Director / Gabriel Di Cesare

Buenos Aires Region Director / Alejandro Castex

South Region Director / Fernando Azpiroz

Littoral Region Director / Marcelo Tortul

Central Region Director / Luis Magistrali

The Directors Committee carries out the follow up and control of Staff’s action plans aimed at complying with objectives and their alignment with the Business Strategy.

CEO/ Christian Faría

Administration and Finance Director / Alberto Alesci

Buenos Aires Region Director / Gabriel Di Cesare

Buenos Aires Region Director / Alejandro Castex

South Region Director / Fernando Azpiroz

Littoral Region Director / Marcelo Tortul

Risk and Legal Director / Juan Ratto

Commercial Director / Julio Terrado

IT Manager / Lucas Rinaudo

Innovation and Technology Director / Marcos Gómez

Human Resources Director / Patricia Lindblom

Communications, Public Affairs and CSR Director / Patricia Sclocco

The Board of Directors is the governing body of Securitas Argentina.

President / Luis Vecchi

Vice-president / Carlos Rinaudo

CEO / Christian Faría

Directors and managers head of each of the regions contribute to be closer to customers and this allows us offering better security solutions in each case and managing employment quality and employability conditions in each area.

Corporate Governance

Page 23: Securitas Argentina Corporate Social Responsibility Report · Securitas Argentina 3 2014 CSR Report For Securitas Argentina, 2014 has been the ... Private Security sector 36 ... the

Securitas Argentina 23

2014 CSR Report

4.1 Ethics and Integrity

Mission: to protect homes, workplaces and society.

Vision: to turn Private Security into a model of mutual benefits for workers, customers and shareholders.

Values:a. Integrity: It means to work with honesty, complying with all laws, respecting all obligations undertaken with customers, with security organizations, with tax entities and with the community in general. Securitas always complies with its integrity requirements, which include to openly expressing its own opinions, to inform irregularities and not to withhold information.

b. Vigilance: being professional implies seeing, hearing and evaluating. Securitas’ employees are always attentive and alert so as to notice things others do not. Thanks to their vigilance they are informed of potential risks and incidents that may take place in our customers’ premises.

c. Helpfulness: Securitas employees will lend assistance when needed even if it is not specifically related to their job.

For Securitas, corporate social responsibility is an integral part of the way daily operations

are carried out and its commitment with sustainability is the basis for the long term growth. Its operations must be sustainable, reaching not only economic performance but also social and environmental results.

The foundations of the business are the values that always inspired the work of Securitas as a Group. During the past year, the Company has deepened its responsible management aimed at social responsibility using several management and communication tools, so that this commitment becomes more transversal and is expressed through all its policies and processes.

At Securitas, we conduct our business in agreement with laws and regulations in force, keeping high standards of transparence and ethics in our businesses, inspired in our shared values.

Page 24: Securitas Argentina Corporate Social Responsibility Report · Securitas Argentina 3 2014 CSR Report For Securitas Argentina, 2014 has been the ... Private Security sector 36 ... the

24 Securitas Argentina

2014 CSR Report

One of our main corporate policies is the Values and Ethics Code. This Code includes the main principles and guidelines pursuant to which the Company conducts its businesses and includes a statement of support regarding respect for Human Rights, business ethics, environment and participation in the community. The Code sets forth principles for fair competition, antitrust policies, anti-bribery policies and anti-corruption policies (including principles regarding training and acceptable gifts), money laundering and conflicts of interest.

All Securitas’ employees at global level are bound to sign the Value and Ethics Code (available in 20 languages) and comply with the pertinent e-learning course. In 2014, the training on the new Code was completed for all employees of Securitas Argentina, in order to ensure that everybody understand and comply with the provisions thereof.

2014 2013

Number and % of members of Governing Bodies that have taken the Course on Values and Ethics (policies and procedures to fight corruption).

100%19 members of governance bodies

100%19 members of governance bodies

Number and % of staff employees that have taken the Course on Values and Ethics (policies and procedures to fight corruption).

56.94%8,073 employees

29.65%3,618 employees

% security personnel employees that have taken the Course on Values and Ethics (policies and procedures to fight corruption).

54%7,412 security guards

24%3,023 security guards

Securitas encourages all its employees to inform any non-compliance with the Code through several channels the Organization places at disposal to such effect. In Argentina, all employees at country level have access to Securitas Integrity Line and to Ombudsman.

• The 14,179 employees of the Company must take the course on Values and Ethics Code, which is mandatory at global level for the 320,000 employees of the Group.

• The Values and Ethics Code is mandatory for all employees of the Company. The signature of the Anti-Corruption Policy shall be mandatory for all Staff employee.

• The Ethics Committee is responsible for the follow-up and compliance with such policies. The Committee is composed of the CEO, the President, Human Resources, Risks and Legal and Communication, Public Affairs and CSR Directors who work in coordination with the rest of the Organization and are responsible for the compliance with the Ethics Code of the Company.

Page 25: Securitas Argentina Corporate Social Responsibility Report · Securitas Argentina 3 2014 CSR Report For Securitas Argentina, 2014 has been the ... Private Security sector 36 ... the

Securitas Argentina 25

2014 CSR Report

Securitas Integrity Line, a system to report incidents of non-compliance with the Values and Ethics Code. It concentrates Securitas’ efforts at global level to set forth a channel supplementing communication between employees and administrative areas as regards issues directly related to the Values and Ethics Code. In Argentina, the channel is used since 2013 and offers collaborators the possibility to file denounces and hold consultations through a toll free number (0-800-555-0906) or a Webpage www.securitasintegrity.com

Ombudsman, local tool implemented since the year 2012 countrywide. It allows cooperators to direct in a confidential manner, consultations and denounces related to incidents or situations in connection with values and principles applied by the Company that were not solved through regular channels. The Ombudsman is a director member of the Directors’ Committee and may be accessed to through the toll free line 0800-122-1333 during business hours or through email at: [email protected]

75%

Consultations/denounces unsolved*

Consultations/denounces solved

25%

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec0

10

20304050607080

Consultations / denounces solved Consultations / denounces unsolved*

* Consultations / denounces unsolved refer to those consultations/denounces dismissed due to lack of legal grounding.

Page 26: Securitas Argentina Corporate Social Responsibility Report · Securitas Argentina 3 2014 CSR Report For Securitas Argentina, 2014 has been the ... Private Security sector 36 ... the

26 Securitas Argentina

2014 CSR Report

Securitas has a zero tolerance policy in connection with bribery, incentives or any other undue benefit that imply acts against the Code, the Anti-corruption policy, national laws o standards of the industry.

The Group’s Values and Ethics Code and Anti-Corruption policy set forth the minimum requirements that must be complied with by all subsidiaries in order to ensure compliance with law irrespective of the territory where operations are carried out and therefore, they must be applied also by business partners throughout all their value chain. That is the reason why Anti-Corruption Policy principles are included in agreements with any type of associations and any other business relationships.

4.2 Proactive Risk Management and Internal ControlSecuritas’ Enterprise Risk Management (ERM) aims at identifying, fixing priorities and managing key risks for its business at all levels and sections of the Company. Securitas’ internal control system has been designed to manage before eliminating the risk to fail at the time of reaching business objectives. The system contributes a reasonable assurance but not absolute assurance of the fact that there will not be material mistakes or losses and that the main guidelines shall be complied with.

Securitas’ general internal control, including internal control of financial statements, is a core element of corporate governance of the Group with a wider perspective on organization of internal control of Securitas’ Group.

The Enterprise Risk Management process of the Company sets forth the

general process regarding proactive and continuous work of Securitas in connection with risk internal management and control. Securitas’ insurance and claims strategy is to “act as if no insurance were hired".

Environment of ControlThe main characteristics of an environment of control include: clear orders for the Committee and its members, a clear organizational structure with documented delegation of authority from the Committee to the President and CEO and also to the General Directors, the ability of employees and the number of policies, procedures and guidelines of the Group. All policies are reviewed and updated from time to time by General Directors of the Group and are approved by the Management Committee. The delegation of authority is documented in an approval matrix that sets forth the clear guidelines for all directors at all levels. Ability and skills of Group’s employees are highlighted through continuous training and development, actively fostering them through a number of plans and programs. The Group has three core values (Integrity, Vigilance and Helpfulness) to help its employees to act correctly and take decisions duly grounded.

Risk AssessmentAt the highest level, the Committee considers strategic risks and opportunities and helps to shape the corporate strategy. Balanced and centralized risk management is necessary to comply with all Securitas’ strategy and to achieve its corporate objectives.

The ERM is an element that is part of Securitas’ activity and risk awareness is part of the business culture. Risk assessment is carried out within the

Page 27: Securitas Argentina Corporate Social Responsibility Report · Securitas Argentina 3 2014 CSR Report For Securitas Argentina, 2014 has been the ... Private Security sector 36 ... the

Securitas Argentina 27

2014 CSR Report

framework of Securitas ERM process, irrespective of the fact that assessments may make reference to operating risks or to risks in connection with the preparation of financial reports. Securitas does not classify risks as a separate category; it includes them in the operating category. The risk assessment is a dynamic process which purpose is to identify and analyze risks in connection with Securitas’ objectives and is the basis to introduce mitigation measures after considering the controls applied (to reduce, transfer / share or accept the relevant risk).

Activities of Control at Group level Internal control comprises all divisions and branches of the Group. The activities of internal control are set forth by the policies and processes that help to ensure compliance with instructions from Directors as regards risk management. Controls are carried out at several levels of the Organization and are set forth considering the relevant process.

The graph below summarizes main activities of control at Group level.

Group-wideControl

Activities

Diagnostics of audits, risks

and control

Statement Letter

Basic controls

ERM Self-assessment

Business control

Instructions and information

framework at Group level

Continuous development and implementation

of policies

Annual validation in agreement with policies

Development of new policies to support Directors’ decision

Preparation of Quality Reports

Comptroller

Delegation of Authority

Monthly and Bi-monthly analysis, control of performance key indicators (six fingers), cash flow risks, price/salary risks, etc.

Internal and External• Specific audits based on risk assessment

• Audits on Policies and ConformityAssignment of responsibility to carry out controls

Adoption of measures necessary to introduce new policies

Defined list of basic controls on risk assessment

Follow-upValidation/Audit

Exception reports must be regularly obtained and shall be analyzed by local directors as regards identified entrepreneurial risks.

Main instructions and report preparation framework:• Business planning and provision• ERM business plan• Information Technology Business Plan• Accounting principles and preparation of reports (Securitas Report Preparation Manual)

Reference control considering the “six finger” financial model as the basis. Please see page 49 to obtain more information on the model.

Procedures set forth to redistribute responsibility in absence of key personnel from the Company.

Group approval matrix

Structure of Control

of Financial Reports

Some of the activities of control are deeply described below.

Page 28: Securitas Argentina Corporate Social Responsibility Report · Securitas Argentina 3 2014 CSR Report For Securitas Argentina, 2014 has been the ... Private Security sector 36 ... the

28 Securitas Argentina

2014 CSR Report

Risk and Legal Management of Securitas Argentina is responsible for implementing different activities of control as well as global policies. Monitoring and follow up of compliance with this policies is carried out as part of Securitas’ Entrepreneurial Risk Management, which includes self-assessment, internal and external audits and routine follow up of all informed matters.

Yearly, it answers the self-assessment of ERM Values & Ethics Risk, which is reported to the Ibero-America Division of Securitas. In 2014, the global score of the Argentine subsidiary was 94.1/100. The index is composed of a logarithmic calculation that values performance as regards compliance with business ethical standards and values of the Company, risk identification and management and transmission and education in anti-corruption values and policies and ethics in business with employees and suppliers.

ERM Self-assessmentAll main operating units of the Group shall carry out an annual self-assessment that is part of the risk management process of the Company. It comprises main risks, including the preparation of financial reports, measures adopted and conformity with Policies and Guidelines of the Group and the Securitas Report Preparation Manual.

The self-assessment fosters awareness on control and responsibility. The results of sections related to the preparation of financial reports are verified by the

president or comptroller of each entity. In other areas, the verification is carried out by the responsible person. As part of this process, the external auditor or other internal or external resource validates answers to questionnaire considered as risky environment for the unit selected that must prepare the reports. The answers are gathered at division or Group level to have references inside divisions and between divisions. All units that must prepare reports are responsible to act before any deviation, including the preparation of action plans in writing to solve deviations and a deadline to apply the measures. Business plans also analyze priority improvement environments. Therefore, all reports are available to teams of division directors, General Management and Audit Committee.

Information and communicationSecuritas’ information and communication channels are developed constantly so as to ensure that all personnel receives clear objectives and is informed on the parameters that constitute an acceptable entrepreneurial practice as well as the expectations of the Committee on the risk management in order to meet concrete goals. In this way, objectives, responsibilities and scope of the activities permitted to employees of the Group are clearly informed. The Policies and Guidelines of the Group are available in an on scale data base of the Group.

Page 29: Securitas Argentina Corporate Social Responsibility Report · Securitas Argentina 3 2014 CSR Report For Securitas Argentina, 2014 has been the ... Private Security sector 36 ... the

Securitas Argentina 29

2014 CSR Report

ControlA control is carried out at different levels and by different persons within the organization considering if such control is related to operating or financial issues. The most important competent functions are the Management Committee, the Audit Committee, the General Management of the Group, operation committees, management control and legal department of the Group, the organization in charge of Group’s risks and local and division direction.

4.3 Entrepreneurial Risk Management in four stagesEntrepreneurial risk management of Securitas is rooted in the company and deepens its foundations in close cooperation between operating management and all departments that work with different parts of the risk management process. The process commences with the identification of risks and the determination of their priority during the planning stage of entrepreneurial risk management.

In addition to local processes, rules and procedures, Group’s rules and guidelines constitute the framework that is the base for daily management of risks. Risks identified and policies adopted also configure the compliance supervisory structure of the Group. And although the Management Committee is ultimately

Page 30: Securitas Argentina Corporate Social Responsibility Report · Securitas Argentina 3 2014 CSR Report For Securitas Argentina, 2014 has been the ... Private Security sector 36 ... the

30 Securitas Argentina

2014 CSR Report

accountable for the administration of risk management, the activity to minimize risks is materialized through an organized responsibility assignment procedure that is applicable to all business hierarchy.

Securitas faces different kind of risks in its daily activities since as security services provider, Securitas must manage not only its own risks but also risks from its customers. One of the main objectives is to minimize the risk of loss protecting its Stakeholders. Securitas’ risks are classified into three categories: risks related to contracts and acquisitions, operating risks and financial risks. These categories are based on the natural business flow: execution of contract, performance of the activity requested and financial result. In the case of acquisitions, there are

other similar risk categories applicable, but in this case they are classified as acquisition risks, operations integration risks and financial integration risks. All risks included in these categories may affect the results and financial situation of the Group if not managed in a structured way. That is why Securitas has developed a process focused on four stages to manage entrepreneurial risks. The detailed description of the four stages is available at http://www.securitas.com/Global/Spain/MEMORIAS/Memoria%20Anual%20Securitas%202014.pdf, pages 35 to 40.

4.4 Declaration of Human RightsSecuritas supports and respects fundamental Human Rights set forth in the Universal Declaration of Human Rights from the United Nations and acknowledges its responsibility of fostering and complying with such rights when performing its global activities. Its commitment is documented in the Values and Ethics Code and its membership to the United Nations Global Compact.

In connection with the commitment to uphold the elimination of all forms of forced and compulsory labor (Principle 4 of the Global Compact), the risk existing in the sector is related to shift extension due to lack of personnel replacement. In this regards, there is a directive which sets forth that a security guard can work up to two eight-hour shift and must enjoy the pertinent day off once his/her shift ends. This is regulated in the Collective Bargaining Agreement 507/07 which sets forth that overtime is contemplated as from 48 hours per week.

Operating risks

Information technology

risks

Processes' risks

Risk analysis

and identifi cation

activities

Risk management

Risk

supe

rvis

ion

Preparation of r ules

Page 31: Securitas Argentina Corporate Social Responsibility Report · Securitas Argentina 3 2014 CSR Report For Securitas Argentina, 2014 has been the ... Private Security sector 36 ... the

Securitas Argentina 31

2014 CSR Report

Unfair competition practicesBased on ethic values that characterized Securitas daily performance: integrity, efficiency, helpfulness, honesty and justice, and considering the idea that Securitas believes in fair trade and honest competition and based on laws and provisions in force, the fair competition policy has the purpose to determine courses of action necessary to guide all members of the Company to fully comply with anti-trust laws.

In Argentina, the applicable law is Law No.25.156 on Fair Competition. Section 1 of the mentioned law sets forth as follows: “This law prohibits and imposes fines on any acts or behavior irrespective of the way expressed, related to the production or exchange of goods and services which purpose is to limit, restrict,

falsify or distort competition or access to the market or that constitute an abuse of dominant position in a market such that it may result a detriment to the general economic interest”.

Law prohibits price agreements, abuse of dominant position and imposes control over economic concentrations.

The National Risk and Legal Department is responsible for issuing, implementing and updating, when required, the Fair Competition Policy. Such policy is in agreement with policies of Ibero-America Division and Securitas’ Group.

The above mentioned law sets froth that any natural or artificial person that fails to comply with the laws in force shall be fined.

2014 2013

Monetary value of significant fines 0.38%of total sales of the 2014 period

0.06%of total invoicing to pay monetary fines and penalties, which is equivalent to 67 incidents.

Non-monetary fines 9 88

Procedures submitted before arbitration institutions

0 0

4.5 Responsible Management aimed at SustainabilitySecuritas acknowledges the liability resulting from its leading Private Security market position and undertakes it as a continuous commitment to improve its internal management so as to continue creating economic and social value in the community it operates.

Page 32: Securitas Argentina Corporate Social Responsibility Report · Securitas Argentina 3 2014 CSR Report For Securitas Argentina, 2014 has been the ... Private Security sector 36 ... the

32 Securitas Argentina

2014 CSR Report

Employment quality

Sustainable growth

Business transparence

and ethics

Operations excellence in security solutions

Sustainable Growth Pyramid Sustainable growth of Securitas’ operations has three cornerstones:• Creation of quality work and fostering

employability.• Respect for the law and acceptance of high

transparence and ethics standards and servicing our customers.

• Operating excellence in the development of Security solutions and service to customers.

In the section related to Corporate Governance and Ethics and Integrity, values and policies that set forth the regulatory framework in which Securitas carries out its operations are fully described. (See page 22 onwards.)

Management FocusTogether with the Quality Management Area, the Communications, Public Affairs and CSR Department assessed the CSR management status in Securitas Argentina through a contrast test based on the methodology offered by Rule SGE 21.

This diagnosis from the Quality area allowed performing a 360 analysis of the Organization, verifying the pertinent documents with the persons involved in the areas required by the Rule.

Page 33: Securitas Argentina Corporate Social Responsibility Report · Securitas Argentina 3 2014 CSR Report For Securitas Argentina, 2014 has been the ... Private Security sector 36 ... the

Securitas Argentina 33

2014 CSR Report

Conclusions of the 2014 CSR Diagnosis

Green: aspects that are correctly addressed by the Organization. The Company has the documentation requested in the requirement and its practices evidence adequate management conducted.

Yellow: intermediate aspects that must be reviewed, formalized or followed-up because the Company only has documentation but such aspects are not systematized or included in the activities of the area.

Red: aspects that do not result as expected, therefore,there are opportunities to improve. Such aspects had not been addressed by the Organization and there is no document or practice supporting them.

As from the diagnosis and involvement of Senior Management, we prepare a short, medium and long term work plan that will allow us fostering the responsible management model aimed at sustainability and, at the same time, improving Securitas’ performance as regards material aspects.

During the materiality determination process, one of the demands from both the Internal and External Stakeholders referred to information on performance as a whole of the CSR management in Securitas. The results of the contrast test pursuant to Rule SGE21 are included so as to deepen communication transparence in connection with management results.

6.1 SENIOR MANAGEMENT6.1.1. Compliance with laws and legislation6.1.2. Ethic Management and Social Responsibility Policy6.1.3. Code of Conduct6.1.4. Ethic Management and Social Responsibility Committee6.1.5. Ethic Management / Social Responsibility Responsible Person6.1.6. Objectives and Indicators6.1.7. Dialogue with Stakeholders6.1.8. Information safety6.1.9. Anti-corruption policy6.1.10. Follow-up and test6.1.11. Review by Directors and continuous improvement6.1.12. Social Responsibility Report and communication

6.2. CUSTOMERS6.2.1. Investigation, development and responsible innovation6.2.2. Quality principles6.2.3. Good practices in commercial relationships6.2.4. Product or service safety6.2.5. Accessibility6.2.6. Responsible advertising

6.3. SUPPLIERS6.3.1. Responsible purchases6.3.2. Diagnosis and evaluation system6.3.3. Fostering of good practices, support and improvement measures

6.4. PERSONS WHO ARE PART OF THE ORGANIZATION6.4.1. Human Rights6.4.2. Diversity Management

6.4.3. Equal opportunities and non-discrimination6.4.4. Conciliation of personal, family and labor lives6.4.5. Labor safety and health6.4.6. Description of job position6.4.7. Training and fostering of employability6.4.8. Follow up of labor environment6.4.9. Responsible restructuring6.4.10. Conflict solution channel

6.5. SOCIAL ENVIRONMENT6.5.1. Impact assessment and follow up6.5.2. Transparence with the environment6.5.3. Social action

6.6. ENVIRONMENT6.6.1. Pollution prevention and strategy as regards climate changes6.6.2. Identification of activities and impacts6.6.3. Environmental management program6.6.4. Risk plan6.6.5. Environmental communication

6.7. INVESTORS6.7.1. Good governance6.7.2. Information transparence

6.8. COMPETITION6.8.1. Fair competition6.8.2. Cooperation and alliances

6.9. PUBLIC ADMINISTRATIONS6.9.1 Cooperation with Administrations

Requirements RequirementsImplementation Status

Implementation Status

Page 34: Securitas Argentina Corporate Social Responsibility Report · Securitas Argentina 3 2014 CSR Report For Securitas Argentina, 2014 has been the ... Private Security sector 36 ... the

34 Securitas Argentina

2014 CSR Report

5A company built by persons

Page 35: Securitas Argentina Corporate Social Responsibility Report · Securitas Argentina 3 2014 CSR Report For Securitas Argentina, 2014 has been the ... Private Security sector 36 ... the

Securitas Argentina 35

2014 CSR Report

A company built by persons

Services/Customers

Security Guards / Technicians / Monitoring Officers / Mobile / Escort

Managers Managers Managers Managers Managers Managers Managers Managers

Supervisors/Service Chiefs

2014 Organizational Chart

General Manager / C. Faria

National Support Sectors

Comp. Centers / A. Nieto

Innovation and Technology / M. Gomez

Advisors

Buenos Aires G. Di Cesare /

A. Castex

Central / L Magistrali

Littoral / M. Tortul

South / F. Azpiroz

Trailback® / F. González

IT / M. Gomez

Managers

Aviation / V. Sosa

Page 36: Securitas Argentina Corporate Social Responsibility Report · Securitas Argentina 3 2014 CSR Report For Securitas Argentina, 2014 has been the ... Private Security sector 36 ... the

36 Securitas Argentina

2014 CSR Report

Main ideas of Human Resources’ sustainable management

Security sector challenges as regards Human Resources• High turnover.• Majority of male profiles.• Low rating level.• Employment informality.

EmploymentThe quality of service is based on the professional quality of Securitas’ cooperators. Human Resources policies are aimed at continuous and innovative education and training, focusing on technical issues that are essential for performance in the job position and offering the possibility to receive training in different areas of the Company.

Employability

Employment quality Inclusion

Security Guards are ambassadors of Securitas’ culture and show joint efforts to be ahead in their sector. This implies trying to make persons feel that they are not alone either in their labor as well as personal aspects, it being understood that the latter directly influence their jobs. Employees that become part of Securitas reflect the efforts of the Organization to impose inclusive hiring practices based on age and sex, positively transforming the Company through the optimum use of talent and different capacities. Furthermore, it allows Identifying different identity profiles present at Securitas in order to set priorities in connection with their expectations and needs and setting forth action plans that ensure responsible management of such diversity.

5.1 We Foster personal and professional development of the Private Security sectorSecuritas is a company built by persons for persons. The Human Resources strategy is aimed at developing each employee

fostering his/her commitment to the work, to himself/herself and to the Company and improving their quality of life, both at labor and personal levels.

Page 37: Securitas Argentina Corporate Social Responsibility Report · Securitas Argentina 3 2014 CSR Report For Securitas Argentina, 2014 has been the ... Private Security sector 36 ... the

Securitas Argentina 37

2014 CSR Report

Places with significant operations

Social Benefits City of Buenos Aires and suburbs Central Littoral South

Life Insurance X X X X

Medical Insurance X X X X

Maternity/Paternity time off X X X X

Women Men Total 2014

Number of employees with right to maternity/paternity time off 64 261 325

Number of employees that requested maternity/paternity time off 64 261 325

Number of employees reincorporated after time off 64 261 325

Number of employees that upon reincorporation continued working after 12 months

64 261 325

Benefits offered to all Securitas’ employees

Securitas’ employees have the right to maternity or paternity leave and can return to work in the same or similar position after termination of such leave. During 2014 the reincorporation rate of persons requesting maternity/paternity leaves amounted to 100%, and, they remained in their positions 12 months after reincorporation, this results in a 100% retention rate.

As regards Turnover, the Collective Bargaining Agreement, Section 7 Subsection C sets forth the following: “Personnel turnover that security and surveillance companies place at their customers’ disposal is related to the effectiveness of the security systems

adopted. In this way, the turnover of security personnel rendering services at a certain facility is not an unfavorable condition unlike it happens in the case of other activities not included in this Collective Bargaining Agreement; such turnover is the essence of the system.”

Page 38: Securitas Argentina Corporate Social Responsibility Report · Securitas Argentina 3 2014 CSR Report For Securitas Argentina, 2014 has been the ... Private Security sector 36 ... the

38 Securitas Argentina

2014 CSR Report

Management tools:

• On line training through more than 20 courses on Occupational Safety and Health.

• Increase awareness through introduction to the 27 rules on Hygiene and Safety.

• Pocket training manual.

• Risk survey through the booklet prepared by Securitas’ experts.

• Evidence of visits to customers by Safety, Health and Environment personnel.

• Manual of 5-minute talks on Safety and Hygiene, together with “5-minute awareness talks”.

• Video “Precautions of a Security Guard”.

• Participation in design minutes prior to acceptance of certain services to foresee needs related to Safety and Hygiene and e-learning training modules.

Safety and Health management in labor environment is a key element in connection with Securitas’ commitment to prevent labor accidents. Securitas develops Safety and Hygiene practices that are translated into a lower number of labor incidents, ensuring compliance with the provisions

related to labor risk prevention. During 2014, a total of 696 visits were performed to places where services were rendered and a total of 212 on service site trainings were given which content included“5-minute talks from the ILO” and specific training on particularities of each service.

5.2 Prevention of Labor Risks - Health and Safety at WorkSecuritas Argentina offers security solutions that exceed physical security. That is why the protection of health and security of its personnel and third parties involved in its operations is essential for the development of the Company, and in

turn, it is a social and moral obligation that cannot be disregarded.

Securitas developed its own policies and rules regarding Safety and Hygiene, offering a wide training program aimed at turning employees experts in Security.

Page 39: Securitas Argentina Corporate Social Responsibility Report · Securitas Argentina 3 2014 CSR Report For Securitas Argentina, 2014 has been the ... Private Security sector 36 ... the

Securitas Argentina 39

2014 CSR Report

The relevant collective bargaining agreement (Collective Bargaining Agreement No. 507 /07) covers issues related to the handing of adequate uniforms that security guards are bound to wear while performing their prevention tasks. The following clothes must be worn:

• Two shirts per year.• Two pair of trousers per year.• A winter coat, duration three years.• Two ties per year.• A waterproof cape per post, duration

three years.• Rubber boots for rain in good conditions.

The collective bargaining agreement contemplates the delivery of personal protective equipment in addition to first aid kit duly equipped. Furthermore, in the case of services offered that imply outdoor positions, gatehouses are installed at

open spaces which must have adequate light, protection, chemical toilet and the identification of the company rendering the services.

Also, specific training is contemplated to dignify the job. Securitas’ fully acknowledges the fact that security and surveillance activities require high and increasing training demand, not only at the beginning but also permanently to adapt and offer tools that allow improving security and surveillance methods, especially considering the complex criminal behavior.

Furthermore, those Security Guards that render services in less favorable areas (cold areas) receive an additional amount equivalent to 20% of the monthly salary.

Fatalities 0

Number of work related injuries 598

Injuries rate 42.714% 1

Number of occupational illnesses 0

Number of days lost 148,599 2

Rate of days lost 3.792%

Number of absences 265,277

Absenteeism rate 6.770%

Total hours worked by all employees 31,346,589

1 It is the Incidence Rate = (informed cases /covered workers). 1,000 = (598/14,000). 1,000 = 42.714. It states the number of cases informed in connection with labor for a period of 1 year per every 1,000 covered workers.

2 The number of days lost is calculated based on all absenteeism related to injuries at work plus general absences.

Page 40: Securitas Argentina Corporate Social Responsibility Report · Securitas Argentina 3 2014 CSR Report For Securitas Argentina, 2014 has been the ... Private Security sector 36 ... the

40 Securitas Argentina

2014 CSR Report

Securitas works together with the Labor Union in connection with different issues such as service inspections to continuously improve labor conditions.

Considering the main education level of employees of the Company, one of the main purposes consists of granting opportunities to have access to education. In order to achieve this, Securitas developed programs aimed at improving education and employability of its employees.

5.3 Education and Employability fostering - Training and EducationSecuritas deems it essential to keep and improve the human capital, especially through education aimed at enlarge employees’ knowledge. Securitas develops a variety of programs aimed at improving employability that ensures access to education opportunities. In this way, progress is made in other areas of social performance such as equal opportunities and motivation related to personal and Organization progress.

As sector leader, Securitas tries to improve employability conditions of Private Security Guards. In this sense, employability conditions refer not only to generate a training program so that Securitas’ Security Guards obtain basic and key knowledge that will allow them to comply with their labor directives and with customer’s service expectations and to offer the possibility of additional training which includes programs that permit Security Guards to complete their formal education and reach, if they wish, specialized post-secondary education that grants them opportunity to develop a career in Securitas or in any other organization they may wish to work in the future.

Securitas is the security knowledge leading company. In such sense, its training and education programs are focused on favoring perfection of knowledge of the Company’s personnel as regards tools and technologies used.

The Training area is in charge of designing and preparing the contents of general training activities that through feedback of the performance management tool results arise as a need to obtain deeper knowledge in order for personnel to be more skillful in such positions. Likewise, operating sectors will propose specific or technical training.

All Securitas’ employees have the possibility to have access to training programs irrespective of their geographical location. The Middle Management program for Buenos Aires region and for National Support Areas is taken at Instituto Securitas. The remaining regions have the following alternatives:

a) To take the training course in its own region with local trainers pursuant to the Education and Training Management.

b) To take note of the training plan and take the e-learning course.

Pyramid of KnowledgeIt is the training proposal from Instituto Securitas that has three schools:Personal Development School, Security Solutions School and Business School. Each of them has specific subjects; however, they all have the same purpose: professional growth of its people.

Page 41: Securitas Argentina Corporate Social Responsibility Report · Securitas Argentina 3 2014 CSR Report For Securitas Argentina, 2014 has been the ... Private Security sector 36 ... the

Securitas Argentina 41

2014 CSR Report

Pyramid of Knowledge

Post Graduate Courses

UniversityEducation

Post SecondaryEducation

High SchoolEducation

General purpose conference Securitas Model Course

Development Course - Level 1Planner Course - 01

Team Leader Course - 01Branch Manager Course - 01

Tech Studies in SecurityTech Studies in Health

and Hygiene

SMIT (INTL)

SMIT (ARG) II

SMIT (ARG)

Diamond BoxEnglish

SpecificActivities

International Courses

Degree Courses

Seminars and Conferences

Security Services Chief Course

Update and Speciality Course

Securitas Security Guard Course

Scholar

ship

Pro

gram

Super Studies Department

• Personal Development School: it offers activities for personal and professional growth through different options that allow finishing primary education, high school education, post-high school education or university education or post graduate education related to the activities carried out by our Company. Furthermore, there are courses to study English language and conferences on security issues.

• Security Solutions School: it offers courses related to the growth of our employees with different alternatives granted by security solutions.This school comprises the Advance Studies Department in charge of giving courses related to our business such as basic courses to obtain certification as Security Guard, refreshment courses and specialization courses as well as international courses on private security.

• Business School: it manages all courses related to our Company’s business and offers students of each course different tools to be able to develop better at workplace (management, leadership, negotiation, time management, etc.).

» Development Level 1, for Security Guards with growth potential.

» Team Leader, to create leaders. » SMIT I and II (Securitas Management Innovation Training), for operating or branch managers that want to improve their management through the acquisition of knowledge on business management as well as possible courses of action that contribute to solve the security needs of our customers.

Page 42: Securitas Argentina Corporate Social Responsibility Report · Securitas Argentina 3 2014 CSR Report For Securitas Argentina, 2014 has been the ... Private Security sector 36 ... the

42 Securitas Argentina

2014 CSR Report

SecuritasArgentina’ Education Proposal

• Instituto Securitas: its mission is to educate Security Guards and develop knowledge so that our employees and the industry become more professional. Its aim is to develop better skills of our personnel in order to render excellent security services. To achieve this, training and education are offered to Security Guards so that they develop their skills and abilities and improve their employability and possibilities to grow in the Company.

• E-learning platform: it allows equal access by all Security Guards to training offers because it minimizes the geographical dispersion resulting from a wide payroll countrywide. Among the e-learning courses offered we can mention the following: Civil Aviation, Port Facilities, Private Urbanizations, Banks and Financial Institutions, Industries.

• Program Héroes: it acknowledges and rewards those Security Guards whose performance was outstanding through classroom or e-learning education, compliance with service directives, perfect attendance and performance causing distinctive impact on the services, showing commitment and/or highlighted acts.

• Scholarship Program Estímulo: it offers financial support to employees that wish to receive higher education in connection with Securitas’ business, contributing to a financing that ranges from 50% to 100% of the total value of all post-secondary education, university education and master courses. In order to receive this benefit, both employee and academic performance are taken into account.

• Scholarship Melker Schörling: this scholarship offers Securitas’ employees the opportunity to develop their knowledge and professional experience within an international environment. Four employees are selected to receive this scholarship among positions and areas related to operation manager, supervisors and planners who make a difference with customers acting as daily heroes in their work.

• Finish High School: it is an initiative which purpose is to offer Security Guards the possibility to finish high school and obtain a degree with national level from any place of the country. This initiative is a joint initiative with the Government of the City of Buenos Aires and it is implemented through the e-learning platform for distance education courses “Adultos 2000” from the Ministry of Education.

Page 43: Securitas Argentina Corporate Social Responsibility Report · Securitas Argentina 3 2014 CSR Report For Securitas Argentina, 2014 has been the ... Private Security sector 36 ... the

Securitas Argentina 43

2014 CSR Report

Thanks to the scholarship I could have all stationary for school. I enjoyed more the English language course because I bought certain collections in that language. I am really grateful with Securitas for this opportunity. I wish some other persons can enjoy it".

Paula Ayala, 13 years old, student at Escuela Media Nº 31, Quilmes -

Daughter of Juan de los Santos Ayala.

The offer of education aimed at fostering employability conditions of our employees allows them maximizing their potentialities towards both professional and personal progress. Likewise, the skills developed turn Securitas into a company with an added value in connection with the security services it renders.

The scholarship was a strong and positive impact for my family. In addition to the financial aid, my daughter accepted another responsibility that prepares her for the future. It also helped me to distribute better my income. I was able to help my other son with his studies. Now he is at university. In my case, it reduced my worries about the future and makes me feel proud of accompanying them during this stage of their lives”.Juan de los Santos Ayala -Chief Surveillance Officer.

Education

15 year Scholarship: aimed at helping and financially support sons/daughters of Securitas’ employees so that they can finish primary and high school education. They receive monetary contribution as well as personalized tutorial. In this way a social worker carries out the follow up of the school performance of each person with a scholarship through contact with the education institution.

Page 44: Securitas Argentina Corporate Social Responsibility Report · Securitas Argentina 3 2014 CSR Report For Securitas Argentina, 2014 has been the ... Private Security sector 36 ... the

44 Securitas Argentina

2014 CSR Report

2014 External Training

Training hours 229.5 hs

Training hours per employee 0.22 hs*

Trained employees 50

Training courses and programs offered • Human Rights and Enterprise Workshop.• Awareness course Aeropuertos Argentina 2000.• SGE 21 Auditors Course - Forética.• Materiality course - Forética.• Media training.

*Calculated as total attendants / total duration hours of programs.

Human Rights and Enterprise Workshop In order to create installed capacity as regards identification and management of risks related to Human Rights, collaborators in areas of Human Resources, CSR and Risks and Legal took part in a number of workshops conducted by the Global Compact in Argentina on Human Rights and enterprises which purpose was to deepen the level of knowledge on aspects that are more sensitive for Companies within the framework of current vision of Human Rights.

SGE 21 Auditors CourseThe course consisted of the training of persons responsible of Areas (quality, Safety and Hygiene, Purchases and Human Rights) that are members of the Securitas’ Report Team in order to deepen knowledge on Rule SGE21 developed by Forética and the responsible management of each of its areas.

Materiality WorkshopWorkshop conducted by Forética and its purpose was to create a Sustainability Report that reflects the participation of areas involved in social responsible management of Securitas Argentina. The specific purpose of the Workshop was to consider materiality and to identify significant issues to be included in Securitas’ 2014 Report.

Media trainingDuring 2014, the media training was conducted by professional journalists. The purpose was to train Securitas’ directors in habitual formats and habits in different communication media so as to be able to communicate properly reducing risks of wrong interpretation or of communicating messages other than those that want to be communicated.

Page 45: Securitas Argentina Corporate Social Responsibility Report · Securitas Argentina 3 2014 CSR Report For Securitas Argentina, 2014 has been the ... Private Security sector 36 ... the

Securitas Argentina 45

2014 CSR Report

Labor categories

Number of members pursuant to Diversity categories

Sex Age

Inclusive Security

F M Less than 30 years old

Between 30 and 50 years

oldMore than 50

years old

Management Level 10 90 0 52 48 0

Middle management 47 548 11 227 357 1

Operating Level (Security Guards

& Staff)793 12,691 2,876 7,072 3,536 21

Total Securitas Group 850 13,329 2,887 7,351 3,941 22

5.4 Diversity managementMain ideas related to Diversity• Equal salary for men and women.• Reincorporation to work for all employees that enjoyed during the year paternity and

maternity leaves, offering also agreement with reduced working hours.• Inclusive security.

Data related to Diversity Management

Governance bodies

Number of members pursuant to Diversity categories

Sex Age

F M Less than 30 years old

Between 30 and 50 years old

More than 50 years old

Round Table 0 7 0 3 4

Directors’ Committee 2 10 0 3 9

Board of Directors 0 3 0 1 2

Page 46: Securitas Argentina Corporate Social Responsibility Report · Securitas Argentina 3 2014 CSR Report For Securitas Argentina, 2014 has been the ... Private Security sector 36 ... the

46 Securitas Argentina

2014 CSR Report

5.5 Inclusive SecuritySecuritas ensures respect for equal opportunities as regards access to job position, education, professional development and payment. To this purpose, an Inclusive Security program was developed within the framework of the Values and Ethics Code, generating work posts for persons with physical disability and making it easier for them to access the labor world.

Securitas Inclusive intends to add to Securitas’ service offer the value of inclusion by broadening labor opportunities to persons with physical disability.

Such program is being implemented since the year 2011 and, in 2014, 22 persons are included in such program. The program is developed together with the cooperation of customers with a specific hiring and follow-up methodology. Furthermore, it is organized together with the public administration through the pertinent authorizations and agreements.

Year 2014 2013 2012

Persons included 22 15 10

Customers 4 2 1

Page 47: Securitas Argentina Corporate Social Responsibility Report · Securitas Argentina 3 2014 CSR Report For Securitas Argentina, 2014 has been the ... Private Security sector 36 ... the

Securitas Argentina 47

2014 CSR Report

In my spare time, I practice high performance fencing and participated with the National team in Brazil; it is a regional competition. Practicing sports is good for me and clears my head. Today I can say that sports made me get out of the cave and changed my life. I always worked as administrative employee but a friend told me about the Program and since they were looking for people from the area I live, I applied for the post and started working. Sometimes people see me and think that I cannot help them, but it is all the way around. Furthermore, I met new people and became part of a group that had no idea about disability. What is good about this kind of job is that makes me feel useful”.

Romina Clemente, 42 year old. She is part of the program Inclusive Security at Ezeiza’s Airport. She has to use wheelchair due to a spine fracture after a car accident. She has a 22-years old daughter and is living with Enzo who is also part of the Securitas Program Inclusive Security.

Awareness Workshop - Inclusive security at Aeropuertos Argentina 2000To implement an Inclusive Security program is a challenge to work in effective labor inclusion of those persons with motor disability. To such effect, Securitas resorted to the civil society organization “La Usina”, specialized in these issues, to conduct an awareness workshop so as to give managers, chief supervisors, supervisors, Inclusive Security Security Guards and airport authorities the needed tools.

Bearing in mind that inclusive Security Guards have the same obligations and responsibilities that the remaining Security Guards and must ensure the same service and performance quality, works were carried out with the persons involved regarding

understanding of key issues such as diversity, disability, the right of persons with disability to work, labor integration, characteristics and tools to treat persons in wheelchair.

66.67% of persons surveyed considered fully useful the contents of the awareness workshop, in turn, 22.22% considered the content useful and 11.11% considered the contents useful in part.

88.88% of the persons surveyed stated that information supplied was excellent and very good and only 11.11% considered it good.

Page 48: Securitas Argentina Corporate Social Responsibility Report · Securitas Argentina 3 2014 CSR Report For Securitas Argentina, 2014 has been the ... Private Security sector 36 ... the

48 Securitas Argentina

2014 CSR Report

6Responsible Business Model

Page 49: Securitas Argentina Corporate Social Responsibility Report · Securitas Argentina 3 2014 CSR Report For Securitas Argentina, 2014 has been the ... Private Security sector 36 ... the

Securitas Argentina 49

2014 CSR Report

Security Solutions Leaders Being the leading Company in security solutions implies to deeply understand customers’ needs and specific requirements of each industry segment. Both allow offering in each case an optimum and cost-effective security solution and at the same time satisfying sustainability demands of customers and suppliers. Securitas’ employees, irrespective of their level, keep frequent meetings with customers and in many cases daily contact with such customers’ customers.

Responsible Business ModelIn such sense, the Solution Management Center (CEGES) and the ISO 9001:2008 Certification had contributed to assess and identify the quality solutions we offer to customers and to generate opportunities of continuous improvement.

ToolboxIt is a management model globally used by Securitas. It communicates values and priorities of the Company with simple tools that generate a shared language. Each Company’s area is represented with an essential tool for the business.

1) Values. Our values - integrity, efficiency and helpfulness, are Securitas' cornerstones. 2) Market Matrix. This tool

helps us to remember that all customers are different. There is no general solution applicable to all customers alike.

3) Chain of Value. The chain of value helps us to ensure that we render the correct service to the correct customer and in the correct manner.

4) Flat organization. The knowledge of the market allows us building an agile and horizontal organization. Decision making processes are simpler. To be close to the customer and the Security Guard is an essential premise for Securitas.

5) Six fingers. The focus on control and follow up of Securitas’ financial development may become simpler through the “six fingers” planning. These elements are the basis of profitability.

6) Risk Management. In order to prevent possible risks and protect customers and employees, Securitas uses this tool that is focused on certain dimensions of the operating activities.

7) Industry. The security sector is composed of the companies of the segment, the customers, the public administration, the labor unions, the communication media and the professional associations. Securitas thinks that dialogue among all of them is essential to create abetter market and to contribute to its development.

8) Step by Step. In order to improve our operations and attain a sustainable growth we must do things in the right order.

9) Persons. Models and structures are mere tools. Persons are the ones who make the difference. Commitment and dedication are key words for us. Our method to train personnel and transmit values is to do all that we teach.

1

2

3

4

56

7

8

9

Page 50: Securitas Argentina Corporate Social Responsibility Report · Securitas Argentina 3 2014 CSR Report For Securitas Argentina, 2014 has been the ... Private Security sector 36 ... the

50 Securitas Argentina

2014 CSR Report

6.1 Strategic Business Management: The Diamond Box modelThe Diamond Box is the strategic business management tool that allows Securitas improving and focusing on the security business to create value for its customers and develop its potential in daily activities.

SECURITY: you must be a security professional.CUSTOMER: you must understand the needs of the customer.SERVICE: you must render optimum services.BUSINESS: you must build long term relationships.The diamond box permits us to know better the market and also to know where we are placed during the customers’ life cycle. To be close, to be part of their processes and to help them in their management makes the difference so as to offer a security solution appropriate to the level of their expectations as regards our Company.

The Diamond Box 2.0It was created in 2013, the Diamond Box 2.0 is a Securitas’ strategic business management tool. It allows helping to understand and implement, through the development of their tools, business strategies. Likewise, it permits to homogenize the operating management of services at national level.

The development of the Diamond Box 2.0 contributes to increase and manage the business under the same operating guidelines.

In addition, through the Diamond Box e have records of all actions taken with customers.

Aviation Littoral0

200

400600800

1,0001,2001,4001,600

Central South BuenosAires

Number of Services Services with full Diamond Box

Page 51: Securitas Argentina Corporate Social Responsibility Report · Securitas Argentina 3 2014 CSR Report For Securitas Argentina, 2014 has been the ... Private Security sector 36 ... the

Securitas Argentina 51

2014 CSR Report

An analysis of services as regards the sector, such as shown in the previous chart, evidences that in the Aviation sector, the preparation of the Diamond Box 2.0 was 100% complied with. Furthermore, in the Central Region advances made places such preparation in 87% and in the Buenos Aires region places it in 75%. As regards South and Littoral regions, their advancement towards preparation is 21% and 5%, respectively.

6.2 Security Solutions at the Customer’s serviceThrough the offer of security solutions, Securitas protects homes, workplaces and persons.

Integrity, Vigilance and Helpfulness are its core values and can be seen in the three circles of its logo and are the cornerstones of operation performance and commitment with sustainability.

Different segments of customers have highly specialized needs according to specific

The effective combination of the best technology with the experience of its people generates full and integrated solutions that protect businesses, homes and goods. Securitas understands that the market demands full package solutions, fully integrated.

characteristics of their industry. Together with them we develop security solutions tailored to their needs. These solutions combine specialized traditional vigilance (Security Guards) with intelligent technology, creating a flexible and profitable service offer.

The foundations of Securitas services are the quality of its people: Security Guards and middle management are the cornerstones of operations. The specialization and professionalization of its people is essential for the business. Its employees receive constant training in order to strengthen leadership and strongly fix Securitas’ culture and business.

In this way, different security models ensure that customers receive the best solutions that the market may offer at worldwide level. All of them are focused on reducing costs and managing risk through implementation of more intelligent solutions.

Model of Solutions

On site protection

Video Remote Services

Solution management

Call/Response

Physical surveillance

Physical Tools

Intelligent cameras

Remote protection

Monitoring

Page 52: Securitas Argentina Corporate Social Responsibility Report · Securitas Argentina 3 2014 CSR Report For Securitas Argentina, 2014 has been the ... Private Security sector 36 ... the

52 Securitas Argentina

2014 CSR Report

Specialized Surveillance: Security Guard specialized per segment.

Mobile: the same Security Guard makes control visits to different facilities of several customers within the same geographical area.

Video Remote Services: it allows Security Guards to act on real time in case of incidents and avoid problems before they happen.

Trailback®: security system based on GPS technology. It has “Trailsoft” software that informs in real time and in an agile, intuitive and simple manner everything in a historical manner.

Securitas Connect: a security management tool that informs all incidents on real time as well as routine controls performed by Security Guards.

Monitored Alarms: monitoring turns alarm systems into a security system.

Fire Detection and Report: security systems for early detection and report of fires. Loss reduction.

Security Consulting: it permits you to know the real security status of your Company and makes it easier to give advice on concrete solutions. It helps to identify and analyze causes duly grounded of incidents that took place.

Escort Services: escort services for goods in transit and VIP protection.

Security Solutions

Page 53: Securitas Argentina Corporate Social Responsibility Report · Securitas Argentina 3 2014 CSR Report For Securitas Argentina, 2014 has been the ... Private Security sector 36 ... the

Securitas Argentina 53

2014 CSR Report

6.3 Securitas 360 - Specific solutionsSecuritas 360 is a security solution specifically adapted to the needs of small businesses, small and medium size companies and homes. It integrates different protection means and response 24/365. It is an integrated solution that comprises technology, permanent maintenance, surveillance rounds and response services in case of emergency managed through the CEGES.

Securitas 360 permits to have access to a quality security system at an accessible

cost adapted to the reality of each business. Securitas offers combined solutions (patrol security guards, video camera visualization on real time, alarm, etc.) tailored to the needs of the customer.

In order to obtain more information on the services offered per segment, please visit http://www.securitas.com/ar/es-AR/soluciones-de-seguridad/

Page 54: Securitas Argentina Corporate Social Responsibility Report · Securitas Argentina 3 2014 CSR Report For Securitas Argentina, 2014 has been the ... Private Security sector 36 ... the

54 Securitas Argentina

2014 CSR Report

Statements, standards Voluntary inclusion

Mandatory inclusion

United Nations Global Compact X

United Nations Universal Declaration ofHuman Rights (UN)

X

Organization for the Economic Cooperation and Development (OECD).

X

Labor International Organization (ILO). X

United Nations Development Program(UNPD).

X

ISO 9001:2008 X

6.4 Securitas’ responsibility as market leaderAcceptance of international standards and principles

Securitas uses its leading position to foster adoption of better management standards in the sector it operates.

It structures its relationship with the market in a strategical manner through business associations with whom it works together with public authorities and labor

unions so as to improve the employment quality of security guards and the adoption of minimum training standards taking into account industry demands and salary policies in agreement to and/or exceeding minimum legal requirements. To be member of different associations and organizations either domestic and/

Page 55: Securitas Argentina Corporate Social Responsibility Report · Securitas Argentina 3 2014 CSR Report For Securitas Argentina, 2014 has been the ... Private Security sector 36 ... the

Securitas Argentina 55

2014 CSR Report

or international, is a strategic decision of Securitas in order to better relationships with market companies and generate shared value among different business sectors of the Argentine Republic.

In this way, it takes part in projects and/or holds positions in committees of different organizations such as CAESI (Argentine Chamber of Security and Investigation Companies) and CAESBA (Buenos Aires Chamber of Security Companies) - see chart-, in turn, it is an

active member of ASIS International, Argentine Chamber of Electronic Security (CASEL), Industrial Chamber of Parque Industrial Pilar, Swedish-Argentinean Chamber of Commerce, American Chamber of Commerce in Argentina (AmCham), Spanish Chamber of Commerce in Argentina, Industry and Commerce Chamber of La Matanza (CICM), Argentine Business Committee for Sustainable Development (CEADS), Latin American Security Forum, Institute for Business Development in Argentina (IDEA).

Organization Position Participation in Committees

CAESI [Cámara Argentina de Empresas de Seguridad e Investigación]

Deputy Treasurer Regular Member of the Directors’ CommitteeRegular Member of the Directors’ Committee

Presidency of the Academic Affairs Committee and member of the executive boardPresidency of Economic Affair Committee and of the Labor Affairs Committee

CAESBA (Cámara de Empresas de Seguridad de Buenos Aires) Vice-president

CASEL (Cámara Argentina de Seguridad Electrónica) Assistant Secretary

Cámara de Comercio Sueco Argentina Treasurer

AMCHAM (Cámara de Comercio de los Estado Unidos en la Argentina) Member Human Resources,

Security, Sustainability

CEADS MemberSustainability, Environment, Human Resources

Global Compact Signatory party Human Rights

IDEA (Instituto para el Desarrollo Empresarial de la Argentina) Member

Sustainability, Institutional Affairs, Human Resources

Foretica Argentina Asociación Civil President Member of the Directors’ Committee

Page 56: Securitas Argentina Corporate Social Responsibility Report · Securitas Argentina 3 2014 CSR Report For Securitas Argentina, 2014 has been the ... Private Security sector 36 ... the

56 Securitas Argentina

2014 CSR Report

The Institutional Relations Department keeps permanent liaison with the Private Security Department of the Government of the City of Buenos Aires and of the Province of Buenos Aires, also with RENAR (Registro Nacional de Armas - National Weapons Registry) and REPAR (Registro Provincial de Armas - Provincial Weapons Registry), and with the Backgrounds Department of the Province of Buenos Aires as well as with the Buenos Aires Province Ministry of Labor and the National Ministry of Labor.

In 2014, we obtained approval to work together with the Buenos Aires Province Security Department in the e-learning program aimed at training personnel in mandatory courses for all companies of the activity. We ended its development and commissioning. Currently, it is submitted to the approval of the enforcement authority.

6.5 Chain of ValueGood practices in connection with the supply chainSecuritas follows the global policy of local supplier development to create its supply

value. Securitas Argentina’s value of chain is composed 99% of domestic suppliers, representing a total of AR$581,143,770 as payment to local suppliers.

Securitas Argentina is a highlighted responsible purchaser defining a purchase process for goods and services rendered by its suppliers. Such process consists of a number of processes determined from the moment the purchase is effected until the pertinent payment is made. This policy is intended to ensure good practices and sustainability in the supply chain.

The main challenges of suppliers’ management for companies of the Private Security sector are: lack of formality of the textile industry that supplies uniforms to Security Guards; technology suppliers and automobile industry affected by the closure of imports and essential regulations of foreign trade. In order to minimize risks that may be related to this situation, the Purchase Department carries out a control on compliance with legal and tax requirements and, eventually, in-situ audits are performed.

Page 57: Securitas Argentina Corporate Social Responsibility Report · Securitas Argentina 3 2014 CSR Report For Securitas Argentina, 2014 has been the ... Private Security sector 36 ... the

Securitas Argentina 57

2014 CSR Report

The Request Order is the document pursuant to which the user states the need to purchase certain good or service. The party requesting the good is the only party responsible for the follow up of the purchase order.

The Corporate Treasury Department is in charge of making payments through a banking platform. In this way transactions are more efficient. Every week the payment proposal is informed and all invoices due in the selected time interval are considered.

The purchase area is responsible for supplying to the Company the resources necessary to develop different activities based on the purchase request generated. First, the budget is requested and then the purchase request is generated and subsequently delivered to supplier.

The party responsible for the Warehouse is the person in charge of validating goods and services received at the facilities. Its reception ensures user that the supplier complied with the request, as evidenced in the purchase order. Goods are received at the warehouse with the delivery note. In the case of services, they are received by the requesting party and such party must express his/her conformity.

The accounts payable department is responsible for controlling processes developed from issuance of request until invoicing by the supplier. Its principal purpose is to verify data of the invoices to make the correct accounting entry and payment in due manner and time.

Purchase circuit

Request Order

(requesting area)

Request Order

(requesting area)

Purchase Request

(Purchase)

Purchase Request

(Purchase)

Reception of products and

services (warehouse)

Reception of products and

services (warehouse)

Reception of the invoice

(accounts payable)

Reception of the invoice

(accounts payable)

Payment to suppliers

(treasury)

Payment to suppliers

(treasury)

Page 58: Securitas Argentina Corporate Social Responsibility Report · Securitas Argentina 3 2014 CSR Report For Securitas Argentina, 2014 has been the ... Private Security sector 36 ... the

58 Securitas Argentina

2014 CSR Report

99%

Securitas’ suppliers: 4,193

Kind of Suppliers

Domestic

Purchase of assets

Works (electronics)

Foreign

Suppliers

Third party services68%

6.6 Contest Customers’ CasesEvery year the Contest Customers Cases is held. The cases submitted show the way Securitas’ operations framework may be improved through knowledge and offer of security solutions obtaining new and loyal customers thanks to its application. The focus is on activities performed and the way security solutions must be implemented. Considering customers’ expectations, Securitas works continuously to achieve operating excellence fostering the fact that their management teams are focused on the development of security solutions that comprise all services of the Company offering better services to its customers.

Quality of employment

Sustainable growth

Business transparence

and ethics

Operating experience in

security solutions

Sustainable Growth Pyramid

8%8%

16%

Page 59: Securitas Argentina Corporate Social Responsibility Report · Securitas Argentina 3 2014 CSR Report For Securitas Argentina, 2014 has been the ... Private Security sector 36 ... the

Securitas Argentina 59

2014 CSR Report

Planner 1

Monitoring Operator 1

Supervisor 5

Administrative Personnel 6

Participation per Category

Security Guard 31

Coordinator/Sector Responsible party 4

Trainee TBK 1

Operating Manager 1

6.7 Contest Securitas InnovaSecuritas Innova is a contest implemented with all employees of the Company since 2012. It fosters generation of innovative ideas in order to achieve benefits for customers, employees and shareholders of Securitas. It is a good innovative practice applied year after year. Projects are classified into four categories: employees, technology, productivity/processes and specialization. All participants receive training in Project Management, have a tutor helping them to develop ideas and also to defend them before a group of persons composed of the General Manager and 16 Directors who assess the degree of innovation, feasibility and value added to the business.

During 2014, a total of 50 innovation projects were submitted. The idea that won the contest was a mobile phone application to control objects submitted by Benjamín

1º PRIZE

Full name: Benjamín Yapper

Category: General Security Guard

Region: South (Mar del Plata)

Idea: object control mobile application

Yapper. It resulted from Benjamin’s daily activities in Private Urbanizations in the South Region.

There was a wide participation in the Securitas Innova 2014 Edition of Security Guards (62%), then administrative personnel (12%) and supervisors (10%). Likewise, National Support Sectors and Central Region were the areas with more participation in the contest. Then the Littoral Region and the South Region.

2%

2%2% 62%10%

12%

8%

Page 60: Securitas Argentina Corporate Social Responsibility Report · Securitas Argentina 3 2014 CSR Report For Securitas Argentina, 2014 has been the ... Private Security sector 36 ... the

60 Securitas Argentina

2014 CSR Report

6.8 Inclusion of technology to the Security Guard’s activitySecuritas has transformed inclusion of technology into an ally to improve Security Guards’ labor conditions.

Through the inclusion of technology in daily activities it is possible to give information on real time to the customer contributing to more transparence and generating a better perception of service performance for the customer.

Likewise, the registry of evidence, traceability and mobility are reinforced, generating a process of continuous improvement that impact directly into the quality of service and the employability conditions of Security Guards.

In addition, technology allows Securitas to prepare its differentiation strategy in the

private security market; it positions Securitas as an attractive employer: its training platform together with technology permitted the development of different profiles more specialized and better paid for the Security Guard.

Technology allows traceability and mobility of our employees within a model of employment quality. That is why the development of training and career plans related to the private security business for all Security Guards is a cornerstone for Securitas.

Traditional approach Securitas’ approach

Physical surveillance + technology = Security Guards more specialized

Technical Security GuardConnect Security Guard

Monitoring Security Guard (on site)Monitoring Security Guard (off site) -

CEGES

Innovation for customer

Technology inclusion

Security career plans

The inclusion of technology contributes added value - Securitas develops investments in security solutions based on technology.

Page 61: Securitas Argentina Corporate Social Responsibility Report · Securitas Argentina 3 2014 CSR Report For Securitas Argentina, 2014 has been the ... Private Security sector 36 ... the

Securitas Argentina 61

2014 CSR Report

Restructuring that facilitates investments in

technology

Technology investment costs

at customers’ working centers

Agreements that create more value

with customers through the

increase in the use of technology

Agreements for longer periods that improve

customers’ loyalty

Higher market shares due to the initiative of offering

competitive security solutions with cutting edge

technology

Market price pressure

I became part of Securitas Argentina in July 2003 rendering services in front of San Martín Square (City of Buenos Aires), since 2014 I work in CEGES (Solution Management Center),which supports the operations of all combined services of Securitas.

I feel honored for being part of this group. As years go by and before new challenges, we continue training and refreshing using to such effect new tools granting hierarchy to the Center. I feel proud to contribute with that just as I feel for the remaining persons who work with me every day to make Securitas even bigger.”

Salvador Di Costanzo, Shift Chief - CEGES.

6.9 Solution Management Center (CEGES)The Solution Management Center (CEGES) is the center of Securitas business where remote protection is granted to customers, the main objective is real time intervention.

Technology at the service of SecurityEquipped with cutting edge technology, CEGES manages in real time the Alarm, Video Alarm and Video Verification accounts of all customers that have monitoring services.

The three more important software that CEGES uses are the following: Mastermind,Securitas Pro and Securitas

Supervisor. Through these innovative tools, operators carefully monitor all services. Based on the fact that each customer is unique, Securitas develops specific parameters tailored to their needs.

The CEGES is alert 24/365. Taking into account the services hired, several actions may be taken upon detecting an event.

MonitoringMonitoring transforms installation of alarms and/or videos into a security system. Once the alert status is issued, CEGES’ operators activate procedures agreed upon with the customer as required by the incident.

Page 62: Securitas Argentina Corporate Social Responsibility Report · Securitas Argentina 3 2014 CSR Report For Securitas Argentina, 2014 has been the ... Private Security sector 36 ... the

62 Securitas Argentina

2014 CSR Report

innovative and useful security solutions. All this can become effective if personnel are trained, motivated and live daily Securitas’ values and quality policy where these aspects are included.

6.10 Securitas ConnectSecuritas Connect is a Security management tool which purpose is to keep the customer informed on all incidents generated in its business on real time and routines of control performed by security.

With Securitas Connect transparence of all operations and tasks performed by the security are ensured and the customer is given space to participate in the control and management of incidents in its business. In turn, incident management, monitoring and communication on real time are easier and this contributes to minimize the risk related to the security decision making process.

Innovation & Technology Security Consulting

Specialized Security• Security Guards.• Security Patrols.• Mobile: Controlled

rounds.

AlarmIn order to avoid false alarms or unnecessary management, procedures are designed and sensors are adjusted tailored to the needs of each customer. In case of any intrusion, while Security Guards go to the place, CEGES operators may remotely intervene through a loudspeaker system.

Alarm Video VerificationIn case of an event certain, through a button, Security Guards in service may request an Alarm Video Verification.

Video PatrolA Video Patrol allows knowing what is happening at service through cameras, in real time and without physical presence of Security Guards.

The close relationship with customers is a key element to understand their needs, become more specialized and offer

Solutions tailored to the needs of each

customer

Page 63: Securitas Argentina Corporate Social Responsibility Report · Securitas Argentina 3 2014 CSR Report For Securitas Argentina, 2014 has been the ... Private Security sector 36 ... the

Securitas Argentina 63

2014 CSR Report

6.11 Customers’ satisfactionQuality policyIt states Securitas commitment towards quality. It describes Vision, Mission, Values and Commitments of Securitas regarding customer satisfaction and continuous improvement of processes, personnel training and compliance with legal and internal requirements of the customer.

• To comply commitments with its customers, employees and all persons taking part in the processes.

• To comply with legal and ruling requirements.

• To be close to customers to cooperate in the solution of their needs, offering useful and innovative solutions.

• To consider men and women rendering services at the facilities of customers as the foundations of the activity.

• To verify permanently the satisfaction of customers to improve efficiency of processes related to rendering the services.

• To improve continuously the activities of Securitas Argentina.

• To consolidate the commitment with the society and the environment.

Page 64: Securitas Argentina Corporate Social Responsibility Report · Securitas Argentina 3 2014 CSR Report For Securitas Argentina, 2014 has been the ... Private Security sector 36 ... the

64 Securitas Argentina

2014 CSR Report

How are new services generated?

New customers: they are generated through invitations to public and/or private bids, price contests, etc., as well as through commercial management carried out by the National and Regional Directors’ team

How are communications with customers maintained

and how are services offered?

Communication with the customer is constant. We keep direct contact, and such contact may be generated through regular meetings, phone calls, emails, etc. Taking into account the service requested, we may offer an example or sample through visits to our main office or to some customers with the service requested or offered.

How are directed customers’ doubts or claims?

Through the Security Guard Logs, Diamond Box management system, Buenos Aires Region box model (for more information, please see page 50).

Through meetings between service Operating Managers or Supervisor and the customer or commercial advisors that record in the Management/Claim Center such claim or query. The agreement reached with the customer to solve the problem exposed is also registered as well as the responsible person and an approximate date to fix such problem and then the issue is closed. Prior to the execution of the services agreement, Safety Studies and Risk Analysis are performed.

How is the feedback from the customers’ satisfaction

survey incorporated to Securitas’ commercial

management and services?

With the information gathered from surveys and claims/suggestions from customers, we prepare an analysis and consider such analysis at Directors Review Meetings. Such analysis is then informed to the responsible person of the area in order for such person to take the necessary steps to increase customers’ satisfaction and avoid new claims.

In alignment with the Quality Management System of the Company, the constant communication with customers is one of the main premises. To know their satisfaction degree as regards services received from Securitas is one fact that allows constant improvement.Furthermore, simultaneous survey methodologies were established so as to obtain data and assess customers’ satisfaction: Face to Face Survey, Email Survey, and Survey at Portal del Cliente.

The Satisfaction Survey implemented in 2014 included criteria aligned to the Security Solutions Service so that measurement would inform not only satisfaction as regards Security Guards but also Technicians that install technology, Monitoring Operators, Escorts, Supervisors and Managers, which is more strategic and allow reinforcing main aspects mentioned

in the 2013 survey: communication and response.

50% of Securitas’ customers from different business segments were asked to answer the survey. The survey is annual.

The main findings of the 2014 Customers’ Quality Survey are the following:• 82% customers’ satisfaction with the

services offered.• Very good response level in case

of incidents.• Personnel performance is rated as

“Very Good”.• With the survey we identified needs and

monitored quality of service and level of responsibility and communications with customers.

• Customers’ satisfaction surveys were conducted in all regions of Securitas Argentina.

Page 65: Securitas Argentina Corporate Social Responsibility Report · Securitas Argentina 3 2014 CSR Report For Securitas Argentina, 2014 has been the ... Private Security sector 36 ... the

Securitas Argentina 65

2014 CSR Report

7 Annex Community

Page 66: Securitas Argentina Corporate Social Responsibility Report · Securitas Argentina 3 2014 CSR Report For Securitas Argentina, 2014 has been the ... Private Security sector 36 ... the

66 Securitas Argentina

2014 CSR Report

Securitas Argentina has a strong commitment with community which is reflected in a wide range of social promotion actions and community investment projects. We develop different levels of interaction with the communities where we have presence through dialogue or projects focused on strategic aspects of Securitas. Results from the Give&Gain Day in

Argentina

• 20 companies• 26 charity organizations• + 587 corporate volunteers• 2,369 direct beneficiaries• 80,282 indirect beneficiaries• 15 employees from Securitas Argentina

prepared a training workshop and simulation of job interview together with Fundación Reciduca, and also took part in the improvement of the playground of School No. 3 “Rufino Sánchez” together with AsociaciónConciencia. In this way, Securitas’ employees invested 60 hours of their work in the community.

Voluntary Action Program: Give&Gain Day 2014In 2014, from May 9 through 16, Securitas took part for second consecutive year in the Give&Gain Day in Argentina, the International Week of Corporate Volunteer Work. This global movement fostered by Business in the Community intends to inspire corporate volunteer work as key tool to invest in the community, adding companies and businesses of the third sector that perform activities at worldwide level during the same week.

Main ideas of Securitas Argentinas’ social investment: inclusion, education and training

Annex Community

Page 67: Securitas Argentina Corporate Social Responsibility Report · Securitas Argentina 3 2014 CSR Report For Securitas Argentina, 2014 has been the ... Private Security sector 36 ... the

Securitas Argentina 67

2014 CSR Report

Results of the Program Convivir:Public-private alliance: Securitas - Asociación Conciencia - Undersecretariat of Education of the Municipality of Tigre.

ProgramConvivirIn 2010, Securitas commenced, together with Asociación Conciencia, the program Convivir for the purposes of creating at schools spaces to foster the culture of peace through the strengthening of social and emotional skills of students and aimed at improving coexistence at school and fostering values. The program is aimed at fostering coexistence so as to avoid violence at school. It is a process to accompany students until they finish Primary Education.

The Program Convivir was implemented at School 6 “Guillermo Correa” and at School

No. 3 “Rufino Sánchez”. Such schools were chosen due to their geographical proximity to Instituto Securitas. The program Convivir was developed until year 2013, when students finished primary education.

During 2014, workshops for teachers were conducted to coordinate the preparation of a virtual portfolio so as to repeat the initiative at different schools of the country. Through these projects, 20 samples of teaching practices were gathered and published in connection with the subject “learning to coexist” and developed at schools located in urban, semi-urban and rural areas of Argentina. Teacher training is effected through experience based workshops which consist of learning about a situation from games proposals that require participation.

2013 2012 2011 2010

Schools 4 4 2 2

Workshops 42 18 6 6

Students 441 141 46 59

Teachers 303 200 28 5

Gift ProgramSecuritas develops a gift policy to accompany its Social Network. Such cooperation is aimed only at organizations registered before the Superintendency

2014 2013

Investments in Community 395,706.95 413,345.00

of Corporations [Inspección General de Justicia] and Tax Authorities [Admnistración Federal de Ingresos Públicos]. Gifts are given within the framework of Securitas CSR global strategy.

Page 68: Securitas Argentina Corporate Social Responsibility Report · Securitas Argentina 3 2014 CSR Report For Securitas Argentina, 2014 has been the ... Private Security sector 36 ... the

68 Securitas Argentina

2014 CSR Report

8 Annex Environment

Page 69: Securitas Argentina Corporate Social Responsibility Report · Securitas Argentina 3 2014 CSR Report For Securitas Argentina, 2014 has been the ... Private Security sector 36 ... the

Securitas Argentina 69

2014 CSR Report

Precautionary PrincipleThe precautionary principle is applicable to environmental management practices of Securitas. Within the framework of this policy, all tonners used by the Company are taken by supplier Gigartek, who gives the Company a final disposal certificate.

Likewise, Securitas has suppliers in charge of final disposal of electronic equipment batteries and also of electronic equipment that are no longer used and receives the pertinent certificate.

As preventive measure, and in order to avoid obsolescence and to comply with global environmental policies on CO2, every year we renew between 100 and 120 vehicles from the Company’s fleet.

Furthermore, Securitas has the CAS (Securitas Vehicle Center), a preventive service shop where filters and oil of vehicles used by the Company are changed. The remaining elements are given to suppliers who are in charge of final disposition of such elements and give Securitas the pertinent certificate.

Managed Waste 2014 2013 2012

Tonners 1.854 Tn. 1.12 Tn. 0.92 Tn.

Paper 1,500 Kg. 2,127 Kg. 3,305 Kg.

Plastic caps1 78 Kg. 84 Kg. 89 Kg.

Oil2 2,970 Kg. 670 Kg. ---

Filters3 2,170 Kg. --- ---

1 No plastic caps were used during 2014 as consumables in the Company; recycled caps are contributed by employees.2 Oil used by security vehicles is taken from the CAS (Securitas Vehicle Center). In 2012, there was no CAS, therefore,

vehicles were taken to different service shops.3 There is no data available corresponding to the year 2013.

Materials per weight and volume

Percentage of materials used that are recycled materialSecuritas recycles materials used contributing to a reduction of the demand of virgin material and it is committed to protect natural resources.

•Totalweightorvolumeofmaterialsused:

• Tonners: 1,854 Tn.• Paper: 9,828 Kg.• Caps: no caps were used during 2014 as

consumables within the Company, recycled caps were contributed by employees.

• Oil: 16,053 L.- Filters: 2,170 Kg.

•Percentageofrecycledmaterialbasedonthe following calculation:

Total recycled material x 100= Total material used• Tonners: 100 %• Paper: 15.26 %• Oil: 18.5 %• Filters: 100 %

Annex Environment

Page 70: Securitas Argentina Corporate Social Responsibility Report · Securitas Argentina 3 2014 CSR Report For Securitas Argentina, 2014 has been the ... Private Security sector 36 ... the

70 Securitas Argentina

2014 CSR Report

9 Annex Dialogue with Stakeholders

Page 71: Securitas Argentina Corporate Social Responsibility Report · Securitas Argentina 3 2014 CSR Report For Securitas Argentina, 2014 has been the ... Private Security sector 36 ... the

Securitas Argentina 71

2014 CSR Report

Results and main findings of surveys to our Stakeholders. For the first time Securitas conducted a survey to define contents for the 2014 Corporate Social Responsibility Report.

The survey was voluntary for internal Stakeholders (Employees, Security Guards and Report Team) and external Stakeholders (Non-governmental organizations, customers and suppliers). 75 answers were obtained from Staff Employees, 85 from Security Guards, 73 from suppliers, customers and social society organizations and 7 from journalists.

Below there are the results of such surveys as regards information that must be included in the 2014 Report.

Security Guards represent 95% of Securitas’ employees.In Dialogue Sessions with Stakeholders of previous years different actors expressed their interest in obtaining deeper knowledge about the relationship between Security Guards and other areas of the Company as well as the recommendation that their expectations were taken into account at the time of informing the results of Securitas CSR management.

In order to answer to such expectations, the Materiality Analysis included, as specific audience, the Security Guards. Charts below show the assessment of Securitas’ CSR management by both external and internal Stakeholders. As regards internal Stakeholders, the answer from Security Guards and the answers from Staff Employees are expressed separately.

Which information do you consider that must be included in the next Securitas Argentina’s CSR Report?

Annex Dialogue with Stakeholders

The purpose was to generate among collaborators of Securitas a Report that reflects main aspects of Company’s management considering main issues of interest of such groups.

Economic Performance Market presence Indirect Economic Impact0

10

20

30

40

50

60

70

Security Guards

Does not know

Useful

Not useful

Essential

ASPECT: economic performance

Page 72: Securitas Argentina Corporate Social Responsibility Report · Securitas Argentina 3 2014 CSR Report For Securitas Argentina, 2014 has been the ... Private Security sector 36 ... the

72 Securitas Argentina

2014 CSR Report

Does not know

Useful

Not useful

Essential

Does not know

Useful

Not useful

Essential

Does not know

Useful

Not useful

EssentialEconomic Performance

Economic Performance

Market presence

Market presence

Indirect Economic Impact

Indirect Economic Impact

0

0

5

1

10

2

3

5

15

4

20

6

25

7

30

8

Staff

Journalists

Economic Performance Market presence Indirect Economic Impact0

5

10

15

20

25

30

35

40

Suppliers - Customers - OSC

• Information on economic performance (such as the value generated and distributed) was considered essential by Suppliers, Customers and OSC (50%) and by Journalists (66.67%). In turn, internal Stakeholders considered such aspect mainly useful but not essential.

Page 73: Securitas Argentina Corporate Social Responsibility Report · Securitas Argentina 3 2014 CSR Report For Securitas Argentina, 2014 has been the ... Private Security sector 36 ... the

Securitas Argentina 73

2014 CSR Report

Does not know

Useful

Not useful

Essential

Does not know

Useful

Not useful

Essential

Does not know

Useful

Not useful

Essential

ASPECT: human rights

Investment and Supply Practices

Non discrimination

Freedom of association

and Collective Bargaining

Agreements

Child exploitation

Forced and compulsory labor

prevention

Security practices

Rights of native persons

0

10

20

30

40

50

60

70

Security Guards

Investment and Supply Practices

Investment and Supply Practices

Non discrimination

Non discrimination

Freedom of association

and Collective Bargaining

Agreements

Freedom of association

and Collective Bargaining

Agreements

Child exploitation

Child exploitation

Forced and compulsory labor

prevention

Forced and compulsory labor

prevention

Security practices

Security practices

Rights of native persons

Rights of native persons

0

0

5

1

10

2

15

3

20

4

25

5

7

6

30

8

Staff

Journalists

Page 74: Securitas Argentina Corporate Social Responsibility Report · Securitas Argentina 3 2014 CSR Report For Securitas Argentina, 2014 has been the ... Private Security sector 36 ... the

74 Securitas Argentina

2014 CSR Report

Investment and Supply Practices

Employability

Non discrimination

Company/workers relationship

Freedom of association

and Collective Bargaining

Agreements

Safety and Health at

work

Child exploitation

Education and training

Forced and compulsory labor

prevention

Diversity and equal

opportunity

Security practices

Equal salary for men and women

Rights of native persons

0

0

5

10

10

20

15

30

20

40

25

50

35

70

30

60

40

Suppliers - Customers - OSC

Security Guards

• Issues related to Human Rights were identified as material issues for Securitas by Staff Employees, Security Guards, Journalists, Suppliers, Customers and OSC and, as such, it is necessary to include them in the Report.

• Specifically, management of issues related to non-discrimination were

highlighted as highly relevant by all Stakeholders, both internal and external (Security Guards 76.27%, Staff Employees 61.54%, Suppliers 57.14%, Customers, OSC and Journalists 83.33%).

ASPECT: workers

Does not know

Useful

Not useful

Essential

Does not know

Useful

Not useful

Essential

Page 75: Securitas Argentina Corporate Social Responsibility Report · Securitas Argentina 3 2014 CSR Report For Securitas Argentina, 2014 has been the ... Private Security sector 36 ... the

Securitas Argentina 75

2014 CSR Report

Employability

Employability

Employability

Company/workers relationship

Company/workers relationship

Company/workers relationship

Safety and Health at

work

Safety and Health at

work

Safety and Health at

work

Education and training

Education and training

Education and training

Diversity and equal

opportunity

Diversity and equal

opportunity

Diversity and equal

opportunity

Equal salary for men and women

Equal salary for men and women

Equal salary for men and women

0

0

0

5

1

5

10

2

10

15

3

15

20

4

20

25

6

30

7

35

5

25

30

8

40

Staff

Journalists

Suppliers - Customers - OSC

Does not know

Useful

Not useful

Essential

Does not know

Useful

Not useful

Essential

Does not know

Useful

Not useful

Essential

Page 76: Securitas Argentina Corporate Social Responsibility Report · Securitas Argentina 3 2014 CSR Report For Securitas Argentina, 2014 has been the ... Private Security sector 36 ... the

76 Securitas Argentina

2014 CSR Report

• All GI identify aspects related to work and labor practices relevant for Securitas’ CSR management.

• 68% of Staff Employees deem health and safety at work issues essential while in the case of Security Guards such importance reaches 82.46% of persons interviewed.

• 86.44% of the Security Guards and 80.77% of Staff Employees consider training and education as essential to be communicated. It must be pointed out the fact that all Securitas’ employees, irrespective of the area where they work, consider it essential and useful. They do not deem such aspect as “not useful”.

• Furthermore, 65.38% of Staff Employees and 64.41% of Security Guards deem diversity and equal opportunity important enough so as to include it in the Report.

• In turn, in the case of external Stakeholders, formation and training is considered by the 71.88% (Suppliers, customers and OSC) and 100% (Journalists). It is pointed out that all consider them within the scope of essential elements mainly as regards employability, training and education.

• All labor aspects are the most relevant aspects, both for Securitas and for the (internal and external) Stakeholders.

Supplies

Supplies

Power

Power

Water

Water

Products and Services

Products and Services

Compliance with rules

Compliance with rules

General

General

Transportation

Transportation

0

0

10

5

20

10

30

15

40

20

50

25

70

30

60

Security Guards

Staff

ASPECT: environment

Does not know

Useful

Not useful

Essential

Does not know

Useful

Not useful

Essential

Page 77: Securitas Argentina Corporate Social Responsibility Report · Securitas Argentina 3 2014 CSR Report For Securitas Argentina, 2014 has been the ... Private Security sector 36 ... the

Securitas Argentina 77

2014 CSR Report

• Even when aspects related to the environment have an important position as regards GR expectations, in the particular case of Securitas CSR management, the level of relevance granted to the inclusion of these issues in the Sustainability Report is low.

Supplies

Supplies

Customer’s Health and

Security

Power

Power

Product and service

labelling

Water

Water

Marketing communications

Products and Services

Products and Services

Customers’ privacy

Compliance with rules

Compliance with rules

Compliance with rules

General

General

Transportation

Transportation

0

0

0

1

5

10

2

10

20

3

15

30

5

25

50

7

35

70

6

30

60

4

20

40

8

40

Journalists

Suppliers - Customers - OSC

Security Guards

Product Responsibility

Does not know

Useful

Not useful

Essential

Does not know

Useful

Not useful

Essential

Does not know

Useful

Not useful

Essential

Page 78: Securitas Argentina Corporate Social Responsibility Report · Securitas Argentina 3 2014 CSR Report For Securitas Argentina, 2014 has been the ... Private Security sector 36 ... the

78 Securitas Argentina

2014 CSR Report

Customer’s Health and

Security

Product and service

labelling

Marketing communications

Customers’ privacy

Compliance with rules

0

5

10

15

25

30

20

Staff

Journalists

Suppliers - Customers - OSC

Does not know

Useful

Not useful

Essential

Customer’s Health and

Security

Customer’s Health and

Security

Product and service

labelling

Product and service

labelling

Marketing communications

Marketing communications

Customers’ privacy

Customers’ privacy

Compliance with rules

Compliance with rules

0

0

1

5

2

10

3

15

5

25

8

40

6

30

7

35

4

20

Does not know

Useful

Not useful

Essential

Does not know

Useful

Not useful

Essential

• Issues related to product responsibility are considered useful mainly by Staff Employees, Journalists, Suppliers, Customers and OSC. In turn, most Security Guards deem them essential.

• Customer’s health and safety issues are deemed essential by Security Guards (71.67%) and Staff Employees (50%),

also important are issues related to compliance with rules (63.16% and 53.85%, respectively) and customers’ privacy (58.33% and 48%, respectively). Customers, Suppliers and OSC deem essential issues related to health and security (54.05%). Privacy is deemed essential by this external group (60%) as well as by Journalists (71.43%).

Page 79: Securitas Argentina Corporate Social Responsibility Report · Securitas Argentina 3 2014 CSR Report For Securitas Argentina, 2014 has been the ... Private Security sector 36 ... the

Securitas Argentina 79

2014 CSR Report

Security Guards

Staff

Journalists

Local communities

Local communities

Local communities

Corruption

Corruption

Corruption

Public Policy incidence

Public Policy incidence

Public Policy incidence

Unfair competition

Unfair competition

Unfair competition

Compliance with rules

Compliance with rules

Compliance with rules

0

0

0

10

5

1

20

10

2

30

15

3

50

25

67

5

70

30

8

60

40

20

4

Does not know

Useful

Not useful

Essential

Does not know

Useful

Not useful

Essential

Does not know

Useful

Not useful

Essential

ASPECT: society

Page 80: Securitas Argentina Corporate Social Responsibility Report · Securitas Argentina 3 2014 CSR Report For Securitas Argentina, 2014 has been the ... Private Security sector 36 ... the

80 Securitas Argentina

2014 CSR Report

Suppliers - Customers - OSC

Local communities

Corruption Public Policy incidence Unfair competition

Compliance with rules

0

105

1520

303540

25 Does not know

Useful

Not useful

Essential

• As regards issues related to society, most surveyed persons deem them useful to be included in Securitas’ CSR Report, although they are less relevant.

• 34.78% of Staff Employees deem the report on local communities essential, while 50.82% of Security Guards deem it useful. Issues deemed essential are related to compliance with laws (37.5% and 45.76%, respectively). As regards

corruption, this issue is essential (36.84% by Security Guards and 33.33% by security employees).

• Suppliers, customers and OSC deem issues related to corruption (61.76%) and compliance with rules (51.43%) as essential issues while Journalists support their commitment towards local communities (60%) and mainly corruption (100%).

Page 81: Securitas Argentina Corporate Social Responsibility Report · Securitas Argentina 3 2014 CSR Report For Securitas Argentina, 2014 has been the ... Private Security sector 36 ... the

Securitas Argentina 81

2014 CSR Report

Staff Employees Security Guards

Suppliers - Customers - OSC

Journalists

Highlighted comments among surveyed persons that were taken into account to prepare the 2014 Report.

“To include achievable goals and challenges for next year. To make a comparison with the previous year, if necessary, in order to show the most relevant advancements and achievements in connection with items of the Report”.

“Obligations and rights of Security Guards when rendering services”.

“Comments from participants of the report. Opinion of qualified third parties. Clear chart on challenges and opportunities”. “To give more information on the

environment and the supply chain. I would point out more the leading position in the industry and the way the sector is levelled up”.

“Improvements as regards education in Instituto Securitas in connection with issues referred to Innovation and Technology”.

“I would like it contains more details on the training received at Instituto Securitas that helps us to improve our services every day”.

“Graphs with parameters evolution. Comments from Clients and Suppliers. Commitments and future challenges”.

“Since persons are quite sensitive these days and considering that pursuant to our activities we are in direct contact with people, it would be useful to receive advice on treatment in such circumstances”.

“Long term goals as regards economic-social-environmental trends. To integrate production and consumption problems, programs and strategies of sustainable development. Index related to Strengthening of the Technologic Innovation System”.

“Impact of the services rendered daily on life of persons and companies that hire Securitas”.

“To include future investment and development numbers as well as agreements with state owned bodies to support public policies. Brief information that can be published/noticed”.

“To include more direct participation of Stakeholders as interviews”.

Page 82: Securitas Argentina Corporate Social Responsibility Report · Securitas Argentina 3 2014 CSR Report For Securitas Argentina, 2014 has been the ... Private Security sector 36 ... the

82 Securitas Argentina

2014 CSR Report

Indicators highlighted in light blue correspond to Securitas Argentina’s compliance with the Principles of the United Nations Global Compact. In order to obtain more information on GRI visit www.pactoglobal.org.ar. Green indicators refer to requirements of the responsible management rule SGE21.

10. GRI Indicators Table - Essential Modality G4

GRI Reference and Description Page No. / Comment Global Compact Principle SGE21

Basic General Contents

Strategy and Analysis

G4-1 Statement of the most senior decision maker Page 3 Item 6.1.2

Organization Profile

G4-3 Name of the organization. Page 1-11 Item 6.1

G4-4 Primary brands, products and/or services. Pages 48 to 52 Item 6.2.3

G4-5 Location of the organization’s headquarters. Page 11 Item 6.1

G4-6 Number of countries where the organization operates and names of countries with major operations or that are specifically relevant to the sustainability topics covered in the report.

Page 11 Item 6.1

G4-7 Nature of the ownership and legal form. Pages 10-11-12 Item 6.7.1

G4-8 Markets served (including geographic breakdown, sectors served, and types of customers and beneficiaries).

Pages 11-12-51 Item 6.2

G4-9 Scale of the reporting organization. Page 6 Item 6.8.1

G4-10 Total number of employees per type, agreement and region divided by gender.

Pages 7-8. 100% of agreements are full time and permanent.

Principles 1, 5, 6 Item 6.4.2Item 6.4.3

G4-11 Percentage of employees included in collective bargaining agreements.

Pages 7-8. Data reported only includes security guards, the collective bargaining agreement does not include staff employees.

Principle 3 Item 6.4.1.

G4-12 Description of value chain. Page 56

G4-13 Significant changes in the reporting period on the Organization size, organization structure or value chain.

In 2014, there were no changes in operations location or the transactions themselves. Likewise there were no changes in the capital structure.

Item 6.1.4

G4-14 Precautionary approach. The precautionary approach is applicable to environmental management practices at Group level, for instance, in connection with the acquisition of more efficient and less contaminant vehicles.

Principle 7

G4-15 List externally developed initiatives to which the organization subscribes or which it endorses.

Page 54 Principles 1 to 10 Item 6.1.1Item 6.1.2Item 6.1.3Item 6.1.9Item 6.2.6Item 6.7.1

G4-16 List memberships of associations. Page 55 Principles 1 to 10 Item 6.1.7Item 6.5.3Item 6.8.2Item 6.9.1

Page 83: Securitas Argentina Corporate Social Responsibility Report · Securitas Argentina 3 2014 CSR Report For Securitas Argentina, 2014 has been the ... Private Security sector 36 ... the

Securitas Argentina 83

2014 CSR Report

Identified Material Aspects and Boundaries

G4-17 List all entities included in the organization’s consolidated financial statements.

Page 14 Item 6.7.2

G4-18 Process for defining the report content and preparation of the Report.

Pages 14-19 Item 6.1.12

G4-19 List all the material Aspects identified in the process for defining report content.

Pages 16-18-19-71 to 80 Item 6.1.12

G4-20 For each material Aspect, report the Aspect Boundary within the organization.

Pages 16-18-19-71 to 80 Item 6.1.12

G4-21 For each material Aspect, report the Aspect Boundary outside the organization.

Pages 16-18-19-71 to 80 Item 6.1.12

G4-22 Report the effect of any restatements of information provided in previous reports, and the reasons for such restatements.

Not applicable to reported period

G4-23 Report significant changes from previous reporting periods in the Scope and Aspect Boundaries.

There were no significant changes from previous reporting periods in the scope, aspect boundaries or valuation methods applied in the Report

Stakeholders Engagement

G4-24 Provide a list of stakeholder groups engaged by the organization.

Pages 16-17 Item 6.1.7

G4-25 Report the basis for identification and selection of stakeholders with whom to engage.

Pages 16-17 Item 6.1.7

G4-26 Report the organization’s approach to stakeholder engagement.

Page 17 Item 6.1.7

G4-27 Report key topics and concerns that have been raised through stakeholder engagement, and how the organization has responded to those key topics and concerns, including through its reporting. Report the stakeholder groups that raised each of the key topics and concerns.

Pages 18-19-20-81 Item 6.1.7

Report Profile

G4-28 Reporting period. Page 4 Item 6.1.12

G4-29 Date of most recent previous report (if any). Page 4 Item 6.1.12

G4-30 Reporting cycle (such as annual, biennial). Page 4 Item 6.1.12

G4-31 Contact point. [email protected] 17

G4-32 Report the ‘in accordance’ option the organization has chosen.

Page 82

G4-33 External assurance for the report. This report is not subject to external assurance by independent third party

Governance

G4-34 Governance structure. Pages 22-31 Item 6.1.1Item 6.1.4

Ethics and Integrity

G4-56 Codes of conduct. Pages 23-24 Item 6.1.2Item 6.1.3Item 6.1.9Item 6.2.6Item 6.7.1

Page 84: Securitas Argentina Corporate Social Responsibility Report · Securitas Argentina 3 2014 CSR Report For Securitas Argentina, 2014 has been the ... Private Security sector 36 ... the

84 Securitas Argentina

2014 CSR Report

Specific Basic Contents

G4-DM-a Report why the Aspect is material. Pages 31-32

G4-DM-b Report how the organization manages the material Aspect or its impacts.

Pages 36 to 46-50 to 64

G4-DM-c Report the evaluation of the management approach. Pages 20-33

Material Aspects

Economic

Aspect: Economic performance

G4-EC1 Report the direct economic value generated and distributed (EVG&D).

Page 9

Social: labor practices and decent work

Aspect: Employment

G4-LA1 Report the total number and rate of new employee hires during the reporting period, by age group, gender and region.

Page 7 Principle 6

Aspect: Prevention of labor risks (Health and Security)

G4-LA5 Percentage of total workforce represented in formal joint management - worker health and safety committees that help monitor and advise on occupational health and safety programs.

Pages 8-38 Principle 1 Item 6.4.5

G4-LA6 Type of injury and rates of injury, occupational diseases, lost days, and absenteeism, and total number of work-related fatalities, by region and by gender.

Pages 39 Principle 1 Item 6.4.5

G4-LA8 Health and safety topics covered in formal agreements with trade unions.

Pages 39 Principle 1

Aspect: Training and Education

G4-LA9 Average hours of training per year per employee by gender, and by employee category.

Pages 8-44 Item 6.4.3Item 6.4.7

Aspect: Diversity and equal opportunity

G4-LA12 Composition of governance bodies and breakdown of employees per employee category according to gender, age group, minority group membership, and other indicators of diversity.

Pages 45-46-57 Principles 1 to 6 Item 6.4.2Item 6.4.3

Aspect: Equal remuneration for women and men

G4-LA13 Ratio of basic salary and remuneration of women to men by employee category, by significant locations of operation.

Page 45 Principles 1 to 6 Item 6.4.3

Social: Human Rights

Aspect: non discrimination

G4-HR3 Total number of incidents of discrimination and corrective actions taken.

Page 24. During 2014 no claims for discriminations incidents were received, either through Securitas Integrity Line or “Defensor del Empleado

Principles 1, 2 and 6 Item 6.4.2Item 6.4.3

Social: Society

Aspect: anti-corruption

G4-SO4 Communication and training on anti-corruption policies and procedures.

Page 24 Principle 10 Item 6.1.9

Page 85: Securitas Argentina Corporate Social Responsibility Report · Securitas Argentina 3 2014 CSR Report For Securitas Argentina, 2014 has been the ... Private Security sector 36 ... the

Securitas Argentina 85

2014 CSR Report

G4-SO5 Confirmed incidents of corruption and actions taken.

Page 25. In 2014 no claims were filed in connection with corruption or dismissals or termination of commercial relationships for such reason.

Principle 10 Item 6.1.1Item 6.1.2Item 6.1.3Item 6.1.4

Item 6.1.10

Aspect: compliance

G4-SO8 Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with laws and regulations.

Page 31 Item 6.1.1

Social: Product responsibility

Aspect: product and service labeling

G4-PR5 Results of surveys measuring customer satisfaction.

Page 63 Item 6.2.2Item 6.2.4

Aspect: customer privacy

G4-PR8 Total number of substantiated complaints regarding breaches of customer privacy and losses of customer data.

During fiscal year 2014 no claims due to defaults related to privacy and personal data of clients.

Principle 1 Item 6.1.8

Page 86: Securitas Argentina Corporate Social Responsibility Report · Securitas Argentina 3 2014 CSR Report For Securitas Argentina, 2014 has been the ... Private Security sector 36 ... the

86 Securitas Argentina

2014 CSR Report

We have undertaken the commitment to improve year after year our Corporate Responsibility Report. And in order to advance in this process we place at your disposal this opinion survey. In the survey you may express your comments and suggestions for improvement.Please send the form by email to [email protected] or by mail to the Dirección de Comunicación, AP y RSC, Esteban Echeverría 4270, Munro, Pcia. de Buenos Aires.

Readers’ Opinion

General Information

Clarity of information

Quantity of information

Report structure

Information distribution

Information relevance

Report design

Organization’s profile

CSR Report

Corporate Governance

A company built by persons

Responsible Business Model

Annexes. Which one?

Stakeholder at which you belong:

Client Employee

Community Other (Specify)

Supplier

Please mark from 1 to 10 the following attributes of the Report:

Which section of the Report resulted more interesting for you?

Additional information that you would like to include in the Report

Full name:Telephone:E-mail:

Page 87: Securitas Argentina Corporate Social Responsibility Report · Securitas Argentina 3 2014 CSR Report For Securitas Argentina, 2014 has been the ... Private Security sector 36 ... the

Securitas Argentina 87

2014 CSR Report

“Being the leading Company in the private security market does not mean only to be the biggest company as regards size, billing or number of employees. It means also being the company leading the way to the future, planning the direction of the sector and being able to make those changes”.

Christian FaríaGeneral Manager of Securitas Argentina

Prepared by Securitas ArgentinaAdvice and Technical Assistance: ForéticaGraphic Design and Production: Eco Publicidad | www.eco-publicidad.com.ar

Page 88: Securitas Argentina Corporate Social Responsibility Report · Securitas Argentina 3 2014 CSR Report For Securitas Argentina, 2014 has been the ... Private Security sector 36 ... the

88 Securitas Argentina

2014 CSR Report

Written by Communication, Public Affairs and CSR Department, Securitas Argentina.

Regional Branches

Buenos Aires RegionEsteban Echeverría 4270(B1605DTT) MunroProvincia de Buenos AiresTelephone +54 11 4014-3200

Central RegionJosé Roque Funes 1642(X5009LFR) Cerro de las RosasProvincia de CórdobaTelephone +54 351 481-4741

Littoral Region Blas Parera 1280(E3106LZD) ParanáProvincia de Entre RíosTelephone +54 343 439-0000

South RegionSarmiento 751(B8000HQA) Bahía BlancaProvincia de Buenos AiresTelephone +54 291 455-4433

Securitas Argentina S.A.Esteban Echeverría 4270(B1605DTT) MunroProvincia de Buenos AiresArgentina

Telephone +54 11 [email protected]