Responsabilitatea sociala - Raport 2010 LAPPSET
Limba: Engleza
Produse încluse în această documentație: NEW FINNO, FINNO ABC, CLOXX, CLOVER, ANGRY BIRDS, FLORA, HALO
2010
annual and corporate
social responsibility report
Editors
Editor-in-chief
Editor
Layout
CAD visualisations
Photographs
Printed by
Orders and further information
Lappset marketing
Irma Kuukasjärvi
Risto-Matti Lausto
TYÖMAA
LAPPSET GROUP LTD
Antti Kurola, Jouni Porsanger and Lappset archives
ESA PRINT
lappset@lappset.com
Printed on environmentally-friendly paper in an environmentally-friendly printing process.
Copyrights and patents Lappset Group Oy Ltd
All rights reserved © Lappset Group Oy Ltd
Index
Review by the Chairperson of the Board:
From the North to the world - with a sense of responsibility
4
Managing Director's report: Active sustainable development
6
Lappset Group as a company
9
Strategy 2015 - We invite mankind outdoors!
17
Scope of reporting
20
Complying with good administrative practices
20
Lappset and its stakeholders
22
Social responsibility: Promoting wellbeing
25
Environmental responsibility: Working and caring for a more attractive environ
ment
31
Long-term financial responsibility: Financial review 2010
39
List of abbreviations
58
Comparison with the global reporting initiative (GRI) guideline
59
Certificates held by Lappset Group Ltd
62
From the North to the world with a sense of responsibility
The year 2010 was an important milestone for Lappset Group
unique environment, with its distinct seasons, provides a
Ltd as it marked the company's 40th anniversary. In August
great experience for our visiting international customers and
2010, we celebrated our anniversary in spectacular Rollywood
partners. The raw material we need for our products comes from
style.
nearby forests managed in accordance with the principles of
sustainability.
Our special year was crowned by the largest single deal in
the history of our company. The customers in question were
Our international operations have continued to expand and at the
the Catalonian provinces of Girona and Lleida in Spain, who
end of last year we started
preparations for the establishment
ordered more than 200 outdoor fitness areas for the elderly.
of a subsidiary in France. We are developing our network of
An exhibition all about Lappset, which was organised by the
subsidiaries to further improve our local customer and market
Design Museum in Helsinki in order to commemorate 40 years of
contacts. Our objective is long-term growth based on our
Lappset, was another highlight of the year.
strengths—a willingness to keep doing and creating new things
and view change positively, such as through international clusters
After the end of the first decade of the new millennium, we can
of excellence.
proudly say that Lappset invites people of all ages outdoors
to play, exercise and be together. We have taken a huge leap
We invest in lasting stakeholder relationships
from being a producer of playground equipment for children to
Thanks to our long-term relationships with our stakeholders,
now offering innovative solutions that pro
mote the wellbeing
we can exert our influence at the local, national and international
of teenagers, adults and senior citizens: parkour grounds for
level.
teenagers, outdoor exercise equipment in the elegant Nordic
style for adults and Senior Sport solutions designed especially
Our customer-base is broad, diverse and multinational. We aim to
for the maintenance of daily health among the elderly. Our
be close to our customers in all the countries where we operate.
Digiplay product range includes the interactive SmartUs learning
environment and many new products that inspire play and invite
The Investors in People (IIP) project to develop our personnel and
users to engage in physical activity. The goal of our business is to
leadership began in 2010. Its aim is to improve leadership and
increase the wellbeing of society, i.e. to do good.
promote occupational wellbeing so that Lappset's employees
continue to work happily long into the future.
Benefiting from our northern ori
gins
International contacts have always been natural for Lappset
Interaction with our various stakeholders provides us with
and Lapland. International business creates a new dynamism
valuable information and feedback that we use for the positive
in its environment. The importance of the natural environment
development of our business. As we plan for the future, we wish
and forests is also apparent for people in Lapland. Lapland's
to strengthen these relations for the benefit of all parties.
4
From the North to the world - with a sense of responsibility
Many ways of contributing to society
Collaboration with the local university, universities of applied
sciences and other educational institutions is important
for the future. We value local expertise and consider it
extremely important that there are institutes of higher
education in Rovaniemi. They increase the attractiveness of
the area for all, including people who will, one day, be skilled
Lappset employees. By carrying ou
t diploma work and work
placements at Lappset, students learn to combine both
theory and practice.
Supporting the activities of associations working for the
public good has always played an important role in our
activities, which is why we have, for decades, donated
a considerable part of our annual profit to causes that
advance the public good. In 2010, for example, we were
involved in fund-raising for the University of Lapland, we
promoted the wellbeing of the world's children as the main
sponsor of the Unicef Year in Rovaniemi and by donating a
significant sum to the organisation. We have also supported
the activities of the Young Finland Association that
promotes physical activity and sports among children and
young people. Support for local organisations that promote
cultural and physical activities as well as sport for children
and young people is a key part of our socially responsible
agenda. We also offer summer jobs to students every year.
Johanna Ikäheimo
Chairman of the Boa
rd of Directors
From the North to the world - with a sense of responsibility
5
Active sustainable development
Taken as a whole, the year 2010 was a challenging one for
considerations in the making of procurement decisions is
Lappset as the effects of the global recession could still be
increasing, especially in the public sector, which creates potential
felt in public sector procurements. Although we did not quite
for future growth and boosts Lappset's position on the market.
reach our target of increasing net sales, positive developments
were evident in many areas. We managed to reduce quality and
Environmental issues have always been important to Lappset.
wastage costs and maintain the reliability of our deliveries and
We buy our raw material only from PEFC (Programme for
our customer satisfaction at a high level. In the current economic
Endorsement of Forest Certification Schemes) certified forests.
environment, the achievement of our targets with respect to our
The
use of a renewable natural material is in harmony with
equity ratio and profitability indicate clearly our commitment to
Lappset's philosophy of commitment to environmentally-
responsibility and sustainable business development.
responsible business. We also pay attention to environmental
"For a more attractive environment" was
Lappset's slogan already in the 1970s.
considerations in our selection of suppliers.
In its home area, Lappset is a well-known and major employer.
Lappset's operations have been environmentally aware since
Our commitment to operating in our northern home also
the company was first established. The focus points of our
guarantees the continuity of the business in the future. Our
new strategy, i.e. Best Partner, Quality, Leadership, Services
company is a responsible employer.
and All Age Concepts, are also based on the same premise.
Lappset fosters an atmosphere of continuous improvement. We
Urbanisation challenges park planning
enhance our operatio
ns and the competence of our personnel
As urbanisation advances at a growing pace, the demand
constantly through a wide variety of projects. The challenges
for parks and recreational areas in cities grows, as does their
of the immediate future include the implementation of our new
importance. Physical activity creates wellbeing throughout a
strategy at all levels, the achievement of profitable growth, the
person's life. Ageing, mental health problems, increasing obesity
expansion of our organisation's skills and competencies and the
and the digital lifestyle pose a challenge to us all, while giving
improvement of our subsidiaries' profitability.
us a purpose for producing interesting equipment for play and
exercise. By foreseeing these challenges, society may be able
For Lappset, economic responsibility means a focus on profitable
to make considerable savings in social expenditure in the future.
long-term growth. We wish to create added value for our
We wish to improve t
he wellbeing of people of all ages and to
stakeholders, which is best achieved by investing in continuous
offer the users of our products a fun and safe experience when
sustainable development. The importance of environmental
playing and exercising.
6
ACTIVE SUSTAINABLE DEVELOPMENT
During 2010 our vision was realised in a number of ways: the
Finno ABC equipment for small children, the Parkour range for
young people and the Senior Sport range that was received
particularly well in Spain. Important cooperation took place with
professionals from many fields in the design of our product
concepts. We also received valuable feedback from testers
who are members of our target groups and who also play an
important role in product development.
Building on interaction
The initial survey carried out at the start of the IIP project in
the summer verified that Lappset's strengths include a strong
corporate culture, strategic planning, open and effective
dialogue, a good spirit within the or
ganisation and a committed
personnel. A motivated personnel and an encouraging company
spirit are a successful combination.
Despite the current market situation, we believe strongly in the
development of our operations; after all, growth is our passion.
Our strategy points and development projects as well as the
results achieved give us confidence in the future success of
our operations. Environmentally-friendly, long-lasting and
high-quality products, wonderful personnel and investment in
our customer-oriented strategy all create a solid foundation for
sustainable growth and development.
Juha Laakkonen
Managing Director
ACTIVE SUSTAINABLE DEVELOPMENT
7
People of all ages play and
exercise in their own way —
the smallest children play in the sand
pit, bigger children swing on climbing
frames, while older people stretch
their muscles less vigorously. They all
share the joy of exercise and feel good
afterwards. Success is our pleasure.
8
Lappset Group as a company
Lappset Group
as a company
Lappset Group Ltd is one of the largest producers of playground
In the service business, we offer installation, maintenance
equipment in Europe. Its large product selection also includes
and service under the PlayCare concept. In addition to our
outdoor exercise equipment and outdoor furniture for parks and
own products, we supply other companies' products, including
streets. Our most important product concepts in playground
Norwell outdoor fitness equipment, Euroform furniture and
equipment are the wooden Finno playground equipment and
Freenotes outdoor musical instruments.
the metallic CLOXX and Axiom ranges. In addition to these
products, Lappset is known as a pioneer in playing and learning
Lappset was founded in 1970, and the company has for more
environments that combine digital technology and good old-
than 40 years brought people of different ages out to play.
fashioned play. The SmartUs play and learning environment,
Lappset aims to offer durable a
nd innovative solutions for
which has received numerous innovation awards, was launched
different types of outdoor spaces and common recreational
in 2006. The Lappset Mobile Playground is a game application
areas, enticing people out to play and exercise together. Lappset
for mobile phones that can be used with Finno playground
products increase physical and mental fitness and improve
equipment. It allows children to play many free games
learning. Lappset aims to be the best partner to its customers in
downloadable on their mobile phones and move around the
its sector by delivering durable high-quality solutions that serve
playground as they complete the tasks in the game. Our Digiplay
the needs of customers and end-users. We want to provide
product selection also includes the Sona arch for dance and play,
people with an opportunity for safe and educational play and
and the interactive ball game wall Sutu. Sonic floors integrated
exercise. We invite mankind outdoors!
i
nto playground equipment add sensory experiences to play.
Lappset Group as a company
9
In 2010, the net sales of Lappset Group Ltd amounted to
Lappset offers solutions ranging from individual products to the
€ 45.4 million. On average, the group had 281 employees.
planning of entire recreational areas. Lappset solutions are ideal
Due to the seasonal nature of the business, Lappset uses
for housing complexes, parks, recreational areas, daycare centres,
temporary workers during the busiest production period.
schools, assisted housing for the elderly, sports and exercise
Lappset Group Ltd is a limited liability company owned by the
areas, and they can even be placed along jogging paths.
Ikäheimo family. Some of the company's employees are minority
shareholders.
Children
0-10 years
Teenagers
10-18 years
Adults
18-65 years
Senior
citizens
+65 years
estate and housing companies and construction firms. Important
Finno
Cloxx
Sport
SeniorSport
stakeholders also includ
e architectural agencies, landscape
Axiom
Parkour
Norwell
Cloxx
Finno
SmartUs
Parkour
Joli
Arena
Sona
Sutu
Lappset's most important customers are local councils, real
architects and designers of recreational areas, with whom
we cooperate. The quality of the cooperation and service is
measured by an annual customer satisfaction survey.
Lappset products cater for end-users of all ages. When it comes
to product design, we apply 0–100 thinking: we offer solutions
for people of all ages, from babies to grandparents; including
children, teenagers, adults and the elderly. We encourage and
entice people of all ages to move, play and spend time together.
10
Lappset Group as a company
Park, street and garden furniture
PlayCare services
Lappset Group as a company
11
PlayCare - a service package for playgrounds
In Finland, the MyDesign! service is available in Rovaniemi and
The Lappset PlayCare service includes installation, maintenance
Helsinki. Internationally, the serv
ice is available to customers in
repairs and condition assessments. Once a customer chooses
countries such as Sweden, the UK and Spain. At the Group level,
the PlayCare service, these playground installations come
the MyDesign! service is managed in Rovaniemi.
with a two-year guarantee from the time they are installed.
This also ensures that the playground equipment is installed
The range of services available is extensive and includes product
in accordance with all relevant safety standards. A playground
modifications, themed products, image inlays, the production
that is installed correctly and serviced regularly lasts a long
of marketing materials, 2D image placing, 3D visualisation,
time and is safe for users. Should a customer decide to install
animations as well as expert services for playground design.
their playground themselves, they can order an initial inspection
The demand for bespoke products and even entire playgrounds
that ensures the installation work com
plies with the relevant
is strong.
standard.
PlayCare services will take care of a customer's playground
throughout its life time. The provision of regular inspections,
servicing and the replacement of old equipment ensure that
playgrounds remain safe and fun. Whenever products come to
the end of their service life, PlayCare takes down the playground
equipment in question and removes it to the appropriate
recycling facility.
The PlayCare team is experienced and possesses the most
up-to-date information and expertise on playground products,
product safety and EN
standards.
In addition to Finland, we also
offer PlayCare services in other
market areas. Our service
business also includes various
instruction services; for example,
for senior citizens and also
parkour participants in many countries.
MyDesign! – playgrounds made to order
With the MyDesign! service customers can create products and
even whole playgrounds according to their individual needs.
The products may be modification
s to existing products or
completely new product designs. In addition, MyDesign! also
offers play area design services for equipment and safety areas.
When it comes to the design and implementation of
playgrounds, imagination is the only real limitation. Of course,
the designs must ensure that the products meet safety
requirements and that it is actually possible to assemble them.
Moreover, designers must be familiar with the entire life cycle of
the products as they have to work closely with sales, marketing,
product development and production.
12
Lappset Group as a company
We achieve miracles in a moment;
the impossible may take a bit longer.
From Lapland to the international market
Park and street furniture is manufactured in Enköping at the
Lappset has sales offices in 46 countries in Europe and around
factory of our Swedish subsidiary. In fact, one of the core values
the world, including countries as far afield as Australia and
of Lappset is its commitment to operating
in the North. In 2010,
South Korea. The Group's head office is located in Rovaniemi,
Lappset had subsidiaries in Sweden (Lappset Sweden AB),
Finland. The production sites for playground equipment are
Germany (Lappset GmbH), Spain (Lappset España) and, the most
also located in Finland, in Rovaniemi and Pello. The Finnish sales
recent addition, in France (Lappset Citec SA), and a partnership in
office is located in Helsinki. Business in the domestic market
the United Kingdom with Playworld Systems (Lappset Playworld
also includes the installation and maintenance service PlayCare.
UK Ltd).
Pello
Head office of the Lappset
Group Ltd, Rovaniemi
Helsinki
Lappset Sweden, Enköping
Lappset Playworld
UK Ltd, Kettering
Lappset GmbH,
Viersen
Lappset España,
Barcelona
Lappset Citec,
Nanterre
Lappset Group as a company
13
14
Lappset Group as a company
PARKOUR GETS YOUNG PEOPLE MOVING
The most recent addition to our growing product
family is the Parkour Solutions. Designed i
n
cooperation with the Parkour Academy of Finland, this
range is intended especially with teenagers in mind.
The need for this range of products became
increasingly evident as 10–12-year-olds, for reasons
such as peer pressure, no longer use ordinary
playground equipment traditionally targeted at
younger children. However, this age group should
certainly get more exercise. The design process began
by focusing on user-orientation and the ease of use.
Our goal was to achieve the highest possible level of
customisation and meet customer needs as well as
the easy creation of new solutions. Lappset's Parkour
range is the first series of parkour equipment for
outdoor use that meets the safety requirements for
play areas.
This popular product range was chosen as the Sports
Product of the Year 2010 in Finland by an expert jury
that included Olympic gold medalist Tapio Korjus and
Minister of Health and Social Services Paula Risikko.
According to the chairman of the jury, Paula Risikko,
the ju
ry paid particular attention to the usability,
quality, ease of use and export potential of the sport
products they assessed. The jury also noted that the
Parkour range encourages spontaneous activity, and
activates and invites its users to make it their own.
Recognition of this kind creates good publicity to
Lappset and the sport itself. Lappset also received
particular praise for the wider offering that includes
not only the playground products but also professional
instruction, training videos and safe floor surfaces.
Marko Alamartimo, Concept Manager.
Lappset Group as a company
15
16
STRATEGY 2015 - we invite mankind outdoors
Strategy 2015 We invite mankind outdoors!
Lappset creates the perfect setting for happy outdoor experiences for people of all ages. We encourage
people to play and take exercise today so that they feel better tomorrow. Customer intimacy is the key
word in our strategy. We aim to be close to our customers in our various market areas and the ideal
partner
for them. To achieve this goal, we actively listen to what our customers have to say as well as
predict their future needs. Our aim is a co-operative relationship that serves both us and our customers.
Vision
We invite mankind outdoors!
Mission
Lappset brings people of all ages together by creating joyful outdoor experiences.
We encourage people to play, learn and exercise today to feel better tomorrow.
Strategy
choice
Customer Intimacy
We are dedicated to achieve customer satisfaction and enhancing long lasting relationships.
We listen our customers and foresee their needs.
Focus
points
of the
strategy
Values
Best Partner
We are reliable and
willing to serve our
customers.
By operating with us
our partner will gain
win-win situation.
All Age Concepts
Our inspiring products
and services are linked
together to fulfill the
specific needs of people
at different age groups
in different kinds of
surroundings.
Growth is our passion.
Services
With services we
build long lasting
p
artnership with our
customers by creating
new kind of life cycle
services.
Quality
Our products are safe
and long lasting. The
quality of customer
services and
deliveries surprise our
customers positively.
Responsibility and flexibility
are in our DNA.
Leadership
By developing leadership
throughout the company
we motivate and grow
our people to perform on
optimal level to ensure
customer satisfaction and
sustainable growth.
Success is our pleasure.
STRATEGY 2015 - we invite mankind outdoors
17
Creative and playful learning
environments serve many learning
purposes: in addition to the acquisition of
knowledge, they support the development of
thinking, physical and media skills as well as
meeting the much-discussed needs of learning
to share in activities and create new knowledge
together with others.
- Marjaana Kangas, researcher, Doctor of Philosophy (Education),
University of Helsinki
The Lappset strategy for 2015 has five focus areas: Best
Importantly, when places for exerc
ise are built near people's
Partner, Quality, Leadership, Services and All Age Concepts.
homes, it is easier for them to live a physically active lifestyle.
At Lappset we carry out projects by focusing on these areas
in order to develop our organisation and be able to implement
User-oriented design in cooperation with professionals
our strategy, turning our vision into reality. For these reasons
Cooperation with professionals from a variety of sectors, such as
we invest heavily in communicating our strategy and creating a
physiotherapists, plays a key role in product development.
shared understanding throughout our organisation. Our strategy
The most recent example of such cooperation is the Senior
aims to create sustainable growth and operating conditions that
Sport product range which has been designed in cooperation
last for the long term.
with physiotherapists to ease the day-to-day lives of the elderly
and to increase their wellbeing. The views and experiences of
At
Lappset we take play and exercise very seriously. Today,
test users from the target group were also put to good use
the importance of exercise at all stages of life is increasingly
during the development period. It is also worth remembering
emphasised. The world is changing and we aim to offer
that play has also been found to increase learning. In order
interesting new alternatives for people of all ages who wish to
to take advantage of this finding, Lappset offers its SmartUs
engage in physical activity. An excellent example is parkour: it
learning environment solution to schools. SmartUs enables
gives teenagers a non-competitive sport based on challenging
learning through action, bringing together subjects, play and
yourself, but it also has a strong community element.
physical exercise.
18
STRATEGY 2015 - we invite mankind outdoors
STRATEGY 2015 - we invite mankind outdoors
19
Scope of reporting
We follow the GRI (Global Reporting Initiative) guidelines in our
for each sector of activity. The report covers the company's
reporting to allow comparison with other companies and to
financial period, i.e. 1 Jan - 31 Dec 2010. A list of the primary and
give as comprehensive reporting as possible. This is the first
additional indicators used in this report can be found at the end
corporate social responsibility report for Lappset Group Ltd,
of the report. The number of indicators will increase in future
and we have limited its scope to our Finnish operations. We do
reports as the monitoring systems are developed.
present some key figures and information for the entire group
so that the report gives a fair view of the company's financial
Financial data have been collected from Lappset's Enterprise
position. In the future, we will expand the scope of the report to
Resource Planning system and the financial administration
include the whole group of companies.
system. All figures are based on audited financial statements
from the financial
period under review and from previous
The report covers all three aspects of social responsibility: social,
years. Data about personnel have been collected by our human
environmental and economic responsibility. In our reporting,
resources department and covers the whole Lappset Group. The
we use a set of GRI G3 indicators that is as comprehensive as
environmental data have been retrieved from Lappset's own
possible. Our choices were based on how essential the indicators
environmental management system and the monitoring systems
are to Lappset's operations. How essential these indicators are
of our partners.
has been determined in cooperation with persons responsible
Complying with good
administrative practices
Lappset's highest governing bodies are the Board of Directors
system, but all Lappset employees share the same bonus
and the Management Team. The Board members are specified
system, which prevents conflicts of interest. The management
in the financial review. As
is the general Finnish way, the
team comprises people from the company's management,
company's Managing Director is also the Chairman of the
chosen with an eye to key strategy points.
management team. All members of the management team are
Lappset employees. They are Managing Director Juha Laakkonen,
The management team uses certified quality and environmental
Vice President Tero Ylinenpää, Director of HR Satu Jokinen,
system, management reviews and both external and
Director of Sales and Marketing Johan Granholm and Director of
internal audits to manage the company's economic, social
Quality and Development Aarno Martin.
and environmental activities. In accordance with the profit
distribution policy laid down in the shareholders' agreement, the
The owners are in regular contact with the company's
company aims to annually donate 1–2 percent of its profits for
management and some of them also work in the company,
the public good.
making interaction a daily occurrenc
e. In addition to statutory
general meetings, the owners also get together at the meetings
In addition to sound management, Lappset's operations are
of the family council whose business-related recommendations
characterised by moderation. Our choice of actions is guided by
are communicated to the company's management.
the precautionary principle, especially when compliance with
environmental and chemical regulations is concerned. Read more
The management team plans the strategy that all members
about the precautionary principle:
commit themselves to. It does not have a specific remuneration
http://en.wikipedia.org/wiki/Precautionary_principle
20
Scope of reporting / Complying with good administrative practices
Scope of reporting / Complying with good administrative practices
21
Lappset and its stakeholders
Lappset has a wide and international network of stakeholders.
Owners and financiers
Active interaction with our partners helps us build a better
Lappset Group Ltd
is a family enterprise. Its owners are closely
future and benefits all parties affected by our business.
involved in the running of the business and are the face of the
company.
Lappset has earned a reputation for being of reliable partner.
Responsibility is one of our company's key values. One of the
Good cooperation with the financing sector enables the flexible
focuses of the 2015 strategy is Best Partnership, which means
use of financial instruments. Together with the company's
the generation of added value for all parties. Through this
high equity ratio, this guarantees the availability of capital for
report, we aim to communicate to our stakeholders that we are
investments that growth requires.
economically, socially and environmentally responsible in all of
our operations.
Subsidiaries and resellers
Subsidiaries and our network of resellers play a central role
Personnel
in creating local market contacts. In addition to the parent
Our personnel are our most importa
nt stakeholders. We invest in
company, Lappset Group consists of subsidiaries in Sweden
our personnel and in their opportunities for improvement. During
(Lappset Sweden), Germany (Lappset GmbH), Spain (Lappset
this year, we launched the Investors in People (IPP) project
España) and France (Lappset Citec) and the partnership
for personnel development. The aim of IPP is to improve the
company Lappset Playworld UK Ltd in Great Britain. A subsidiary
wellbeing and expertise of our personnel as well as leadership
was officially established in France at the start of 2011. In
skills within our work community. Within our organisation we
addition to its subsidiaries, the Group includes an international
value highly a good spirit and open dialogue.
network of resellers that extends to 46 countries in Europe, Asia
and Australia. Good cooperation and open interaction with this
Customers
international distribution network keeps us in close contact with
Lappset's most important clien
ts are local councils, real estate
the markets and close to our customers, making it easier for us
companies and construction firms. Architectural agencies,
to develop our operations.
landscape architects and designers of recreational areas are
important opinion leaders who play a crucial role in procurement
Suppliers
processes, which is why we cooperate very closely with them.
Successful cooperation with our suppliers is based on mutual
benefit for all parties. As in all our relationships, we aim for
We have chosen customer-orientation as our main strategic
long-term cooperation with our suppliers to ensure the high
focus up to 2015. Long-term cooperative customer relationships
quality of products and reliable deliveries. We are committed
based on interaction are extremely important to us. We engage
to long-term partnerships with our suppliers through mutually
in active dialogue with our customers and collect regular
beneficial agreements. We have adopted this approach
as we
feedback from them. We also actively monitor the status of our
believe it assists continuous development for both parties.
customer relationships through an annual customer satisfaction
Through our choice of suppliers we aim to create wellbeing in
survey. The results of this survey help us positively develop our
the areas in which we operate, which is why we also use many
activities further. The survey for 2010 revealed that the general
local subcontractors.
level of satisfaction among Lappset's customers is high.
22
Lappset and its stakeholders
End-users:
children, teenagers, adults and
senior citizens.
Suppliers
LAPPSET
Personnel
Owners and financiers
Media
Customers
Subsidiaries and resellers
Research and educational institutions
International organisations
The public sector and authorities
The public sector and authorities
is extremely important. We support various educational
For many reasons, the public sector is important for Lappset's
institutions
and cooperate with local, regional and national post-
operations. A large number of our customers are public sector
secondary institutions, such as the University of Lapland and the
operators. For the continued development of the business,
Rovaniemi University of Applied Sciences, in many research and
open dialogue between decision-makers and the company is
product development projects. Such projects provide students
crucial. We meet our social responsibilities in accordance with
with a great opportunity to demonstrate their skills as do more
laws, decrees and regulations by, for example, meeting our tax
conventional forms of cooperation, such as work placements.
obligations and acting as a good employer. Cooperation and
interaction with various authorities, such as the local Centre for
InnoSchool is a multidisciplinary research and development
Economic Development, Transport and the Environment, is an
project that we are involved in. The project's main aim is to
essent
ial part of Lappset's operations.
develop a new kind of concept for schools. Other partners
cooperating in the project include the the universities of Lapland
Media
and Helsinki, Aalto University, Stanford University, the University
Journalists working for various branches of the media are an
of California, the Finnish National Board of Education, Elisa and
important group of stakeholders and Lappset ensures that it
Microsoft Finland. More information on the InnoSchool project is
maintains very good relations with representatives of the media.
available at http://innoschool.tkk.fi.
Lappset maintains its media contacts through regular meetings
with journalists, by serving them as well as possible and through
International organisations
proactive communications about its activities.
Lappset contributes to the development of operating conditions
Cooperation with research and educational institutions
(Federation of European Play Industry). We are actively involved
As educat
ional institutions produce the experts of the future
in the development of the EN-1176 safety standard for
as well as new research data, good cooperation with them
playground equipment.
for the entire sector through the umbrella organisation FEPI
Lappset and its stakeholders
23
24
Social responsibility: Promoting wellbeing
Social responsibility:
Promoting wellbeing
Our first experiences of Lappset's playground equipment
out to play. As we age, we can exercise and work on the skills
usually take place early in life when as children we are at
we need in our day-to-day life—balance, precision, muscle
play in the sandpit or swinging in a safety seat under the
strength, flexibility, coordination and mobility in our arms—using
supervision of a parent, grandparent or childminder. It is here
SeniorSport equipment, possibly in the company of our peers
that the relationship with Lappset begins. At school age
and often with instructions from a qualified physiotherapist or
Lappset playground equipment is found in the school yard and
physical fitness instructor. The relationship with Lappset and
forms an essential element of lesson breaks and after school
our products lasts from one exciting stage of life to the next,
activities. As teenagers, parkour provides encouragement for
from generation to generation. Studies clearly show that play,
us to exercise with our friends. As we grow up, we come across
learning through play, exercise and interaction with others
Lappset products along running paths and in sports facilities. We
powerfully increase the wellbeing of people—of all ages.
come full circle when we take our own children or grandchildren
Social responsibility: Promoting wellbeing
25
Long-term cooperation
as well as laws, regulations and decrees as they apply to our
Lappset sees social responsibility not only as the long-term
employees are never questioned in our operations and are a
relationships with our partners and product en
d users but also
natural manifestation of our responsibility. Moreover, we expect
as respect for people and the environment, as well as laws
our partners' to meet the requirements we set for ethical
and regulations. We have an in-built sense of responsibility
principles. When we prepare cooperation agreements, we make
and flexibility and, following a discussion on values with our
it explicitly clear that the operating conditions need to be
personnel and the entire organisation, these have been recorded
beneficial for both parties.
as our company's shared values. Annually we support a wide
variety of charities and projects that are dedicated to improving
With regard to social responsibility, our activities have been
the wellbeing of children and young people. Lappset believes it
adjusted so as to comply with the guidelines set out in the new
is important that its business honours the company's declared
ISO 26000 standard.
values. Illegal business practices such as briber
y have never been
a part of our way of operating, nor has there ever been any claim
Focus on employee competence and wellbeing
of Lappset being involved in corruption in any way, let alone
With more than 300 employees Lappset Group is one of the
being sanctioned for it. We strongly condemn the practices of
largest enterprises in its home town of Rovaniemi. It is our
child or forced labour in any form. Respect for human rights,
goal to provide our employees with an open and safe work
compliance with the principle of fair play with respect to our
community and to promote their wellbeing.
competitors, and compliance with collective labour agreements
26
Social responsibility: Promoting wellbeing
The future development and growth of the company means we
continue to need skilled and motivated personnel. Learning by
doing and comprehensive introduction into work play an important
role in the expansion of skills and knowledge. The rotation of
tasks in production also increases in
dividual competence, for
which our remuneration system also provides an incentive. The
Personnel by function in 2010, %
system operates on the principle that experience points gained
from different areas of production increase pay. Additionally, we
2%
offer our personnel opportunities to develop their competence
5%
6%
through training, organised both within the company and through
external providers. An assessment and monitoring system for
learning is currently being developed. All of our office employees
undergo an annual performance evaluation. Some of our
production personnel also have performance evaluations, and we
intend to expand this procedure to eventually include all Lappset
49 %
personnel. We understand that our personnel have an important
role in building the company's future success.
In 2010, we launched the Investors in People (IIP) project in
38 %
cooperation with Excellence Finland with the purpose of involving
our personnel in the development of our activities
. The initial
survey carried out during the project showed that Lappset's
greatest strengths are the good company spirit, committed
White-collar workers
Sales
personnel and open and effective dialogue. The survey also
Production
Administration
highlighted some important areas that needed development,
Service / maintenance
including strategy execution in all sectors of operation, the
consistency of management principles and ensuring shared
procedures and principles. The purpose of the IIP project is to
Average length of service 2010
(entire personnel, Group)
develop management within the entire organisation so as to
reach the level required by the IIP standards.
Lappset United strengthens community spirit
Country
The IIP project had the working title of Lappset United. For many
Germany
5.85
Spain
7.29
Sweden
6.09
Finland
11.39
years, the Lappset strategy focused on management, with special
emphasis on the management of sales and leadership skills.
Strategic manageme
nt planning has for long been our forte, but
some shortcomings have been found in the execution of plans.
As a result, Lappset United aims to improve management at all
Average length (years)
organisational levels and promote the execution of our strategy in
practice.
The areas of development that the project focused on were
Duration of service with the company 2010
(percentage of personnel, Group)
defined as improvement of communications, the definition and
improvement of leadership skills, development of the processing
of proposals for improvements, monitoring investments in human
resources, recording principles for human resources management,
Country
0-5 years
Germany
6-10 years
11-15 years
15+ years
5.85
36.36
0.00
1.00
and the execution of the strategy. The focus points were
Spain
41.18
29.41
29.41
0.00
determined during the initial survey that was carried out during
Sweden
50.00
20.83
29.17
0.00
Finland
37.25
20.59
16.18
16.18
the summer and involve
d representatives from all personnel
groups.
Social responsibility: Promoting wellbeing
27
Coaching for change
enneagram personality test. The purpose of this test was to help
The need for a more effective model for putting commercial
team members better understand themselves and their
concepts into practice became evident in the autumn 2009. It
co-workers as well as their thought and behavioural patterns.
was also our aim to develop cooperation and interaction between
We also offered an opportunity for personal coaching.
sales and marketing. Therefore, we focused on modelling the
marketing process and on adopting a new way of thinking and
We received thanks for our openness to the new approach to
acting, both within our company and in our external relations.
work, which explains why the project is continuing into 2011
with a stage known as Integration, the purpose of which is to
Through this process the WOW project came into existence. The
integrate product developmen
t and the MyDesign! service with
project has its roots in Lappset's determination to do things in
the Gate process.
a new way and create new solutions that can be turned into
commercial concepts. The project's name expresses the ambition
Lappset Academy supports learning
that new concepts would create a 'Wow!' experience for both
Within our company Lappset Academy is the name we have
customers and developers.
for continuous learning. It means learning by doing on a daily
basis and its focus is on strategy. Through Lappset Academy
In 2010, our organisation underwent structural changes and
we organise various training events for our personnel, including
changes to job descriptions so as to increase Lappset's expertise
leadership coaching for superiors, quality assurance training and
in commercial concepts and extend the skills of our personnel.
training that improves interaction skills and customer service.
Participants who contributed to the change process through
worksho
ps created the models that are currently being used,
Committed human resources
rather than adopting any previously existing models. This is
In a seasonal business sector such as ours, it is something of a
how we came up with the practical Gate Process model that all
challenge to ensure the continued commitment of personnel.
participants contributed to and that was adopted in practice
When production is at its busiest, Lappset engages the help of
during the first half-year. By working together we all become
many temporary employees. However, we believe that committed
owners of the process and our commitment to it occurs naturally.
personnel and, through them, retained know-how ensure that
As part of the WOW project, participants completed an
business targets can always be met.
PREVENTIVE OCCUPATIONAL HEALTH
All of our personnel are within the scope of the collective
infringements of rules or cases of discrimination have
labour agreements of the Association of Finnish Fur
niture
taken place.
and Joinery Industries, industrial safety committees and
occupational health care. The minimum notice period
During the orientation period all employees are given the
for the termination of employment is 14 days, which is
opportunity to familiarise themselves with our equality
in complete compliance with the collective agreement.
plan. The plan seeks to promote an equal and constantly
Regular meetings between employee organisations and
improving working community that is efficient and
the management are an integral part of Lappset's way of
productive as well as inspiring. The promotion of equality
operating. Our employees, regardless of which function
at Lappset is not limited to gender equality alone, but also
they work for, have the right to organise.
extends to equality in relation to age, disability, sexual
orientation, ethnic origin, nationality, language and religion.
We believe that early intervention is the correct model
to support the workin
g ability of our personnel. Further,
ASLAK work-related rehabilitation in order to maintain
with early intervention has ensured that at Lappset no
28
Our employees are encouraged to participate in TYKY and
strict compliance with the law and regulations coupled
their ability to work.
Social responsibility: Promoting wellbeing
Responsibility and flexibility are in our DNA
satisfaction survey in order to stay in touch with the situation in
During the busiest production period in the summer months,
the work place and to be in a position to react to any observed
the importance of flexibility is clearly in evidence. A shared
changes. For Lappset, a positive company culture is important
understanding of the nature of the operations as well as flexible
and natural to us.
permanent employees and temporary workers make it possible,
for example, to rotate vacations evenly over the summer period.
The comprehensive job satisfaction survey consists of 59
Our committed personnel ar
e one of our greatest assets and we
questions that allow our personnel to evaluate six crucial areas
will continue to invest in maintaining that commitment in the
of work satisfaction: the general setting, the unit as a work
future.
community, leadership, Lappset Group as an employer, trust and
other questions relating, for example, to individual development
Occupational safety is a part of our high quality
and opportunities to influence one's work, as well as questions
At Lappset, we aim for an accident-free working environment.
relating to health and occupational safety. In the 2000s,
Lappset has an active occupational health committee with
employee job satisfaction at Lappset has increased in all areas.
representatives from both office and production workers.
The committee meets on a monthly basis to discuss any
Remuneration policies strengthen the sense of success
accidents that may have occurred, and other relevant matters.
At Lappset we understand that we succeed t
ogether and learn
The committee promotes safety and investments to improve
from our mistakes. To this end, we offer our personnel various
workplace ergonomics and actively monitors the performance of
benefits and reward good performance. Our largest single regular
all work stages. As a result of this safety commitment, machinery
reward is the annual bonus. Everyone at Lappset is on the same
used in production has been modernised to make the various
line as far as the bonus is concerned because it is based on the
stages of work easier—and safer.
same principles for all employees. We distribute about 15 percent
of the annual result in bonuses every year.
A number of statutory inspections are carried out at our premises
annually so that we and our employees can be confident that our
We also reward employees who have achieved particularly good
work environment is safe.
results or have worked at Lappset for a long time by granting
them extra holiday days each year. In 2010,
we rewarded 21
A fire inspection is carried out on an annual basis, and our rescue
employees on the basis of their years of service: 11 employees
plan, signal and safety lights, person lifters and vehicles are
for 10 years of service, three for 20 years, one for 25 years,
regularly updated. Periodic inspections are also carried out for
five for 30 and one for 35 years of service. In addition to these,
our fire detectors, the operation and maintenance of electrical
we also rewarded 10 employees for exceptional performance
devices, electronic equipment in buildings, lever gear doors, goods
during the past year. In connection with our 40th anniversary
lifters and the gas container as required by law, and the air ducts
celebrations, five people received the Antero Award for excellent
and related equipment in the production facilities are inspected
work performance.
and cleaned.
We are also committed to promoting the wellbeing of our
Open dialogue
employees during their leis
ure time. To this end, we offer to all
We are proud to say that the atmosphere at Lappset is good
of our employees gym memberships, sports vouchers, tickets to
and open. One of the key factors that makes this possible is the
indoor swimming pools and culture vouchers. We also encourage
good communication that promotes occupational wellbeing and
the choice of low-emission company cars by offering a discount
increases employee job satisfaction. We carry out an annual job
on the user charge within the emission limits we have set.
Industrial injury frequency rate: IIFR (industrial incidents per million hours worked)
Year
Injuries
Hours worked (million)
IIFR
2007
2008
2009
2010
19
9
7
15
0.2219
0.206
0.18212
0.18139
85.62
43.69
38.44
82.7
The IIFR seems large because the hours worked are a fraction of the IIFR reference value, i.e. million hours of work.
Social responsibility: Promoting wellbeing
29
30
Environmental responsibility: Working and caring for a mor
e attractive environment
Environmental responsibility:
Working and caring for a more
attractive environment
Environmental responsibility
constant improvement to develop our activities in a way that
Lappset is working to make the living environment both
integrates the environmental perspective as a natural element
attractive and playful—a place where it is good to live, play,
of the various subsectors of our operations. By remaining
exercise, learn and spend time together. The built environment
true to our principles, Lappset has never been in breach of
must be safe and designed so that it places the minimum burden
environmental legislation or sanctioned for environmental
on the environment.
violations. The impacts of the annually audited ISO 14001
environmental system are evident in this report; for example, in
Lappset is proud to say that it is an environmental pioneer in its
the figures for consumption. Our products and their components
sector. Consideration for the
environment has been a natural
are recyclable. The long life cycle of our products promotes
part of Lappset's operations since the company was established
sustainable development and the use of wood as a raw material
at a time when environmental concerns were not widely held
for playground equipment is ecologically sound as wood itself is
to be of particular importance to business. This basic principal
a carbon dioxide-neutral material.
of ours has not changed. We have applied the principle of
Environmental responsibility: Working and caring for a more attractive environment
31
The impacts of the environmental
management system are evident
in the statistics on consumption.
For example, the amount of mixed
waste was reduced by 67 percent and
of hazardous waste 37 percent, as
compared with the figures from 2007.
On a responsible journey into the future
components that our subcontractors used to manufacture as
In its operations, Lappset complies with the requirements of
w
e have been able to produce these components with existing
the ISO 9001 quality system and the ISO 14001 environmental
equipment more efficiently and ecologically.
system. We have had a quality certificate since 1994 and
an environmental certificate since 1998. All of our activities
To achieve our environmental objectives, we monitor their
are guided by the philosophy of continuous improvement.
fulfillment in many ways. In addition to the external auditing of
We participate in training and development programmes that
our certified systems, we perform an internal audit biannually.
promote environmental protection run by various authorities and
We also organise training for our personnel on the matters
research institutes. We actively seek out information in order to
related to the audits. We monitor, for example, the consumption
ensure that our environmental measures are based on relevant
of energy and water as well as waste recycling.
and up-to-date research data.
Enviro
nmentally-friendly chemicals
We continuously increase our environmental expertise in order
The safety of our employees and product-users is absolutely
to develop our operations and meet the requirements of society.
crucial to us. To meet this responsibility, we ensure that our
Development work is based on the principle of preserving natural
activities and products comply with the EN 1176 standard for
resources. The manufacturing process for playground equipment
the safety of playgrounds. All chemicals used comply with both
is ecological to start with but we still seek new ways of
EU and national regulations (REACH, VOC, PAH and ROHS).
minimising the environmental load resulting from our production
Wood is preserved by using the EU-approved Tanalith E.
process. We use state-of-the-art technology and comply
The surface treatment of wooden products is done with water
with environmental legislation in order to achieve the targets
soluble paints only, and metal components are
powder-painted
we have set. We have also begun to manufacture ourselves
to guarantee their environmental friendliness.
32
Environmental responsibility: Working and caring for a more attractive environment
AMOUNT OF WASTE WATER (m3)
3,000
2,500
2,000
1,500
1,000
500
2007
2008
2009
2010
Efficient waste management and recycling
reduce the burden on the environment
amount of hazardous waste we produce by 40 percent by 2013.
Lappset recycles all production waste. Waste is sorted into
we achieved a reduction of over 37 percent. Hazardous waste
paper, cardboard, metal, plastic and mixed waste. In 2008, we
is treated and stored in accordance with legal provisions and
set a target for ourselves to reduce the amount of mixed waste
delivered to a hazardous waste treatment plant for disposal.
With the year 2007 used for comparison for this target, by 2010
by 45 percent from the level of 2007 within the following
five years. By 2010 we exceeded that target by reducing the
En
ergy efficiency
amount of mixed waste by 67 percent.
Lappset's environmental policy is based on sustainable
development. We aim for the sustainable use of renewable
Mixed waste and clean wood as well as saw dust is taken to the
natural resources and the efficient use of energy, water and
nearby district heating plant for fuel. Old products collected from
raw materials. Production accounts for most of our energy
clients and components replaced during maintenance are also
consumption. We are constantly looking for saving opportunities
recycled. Impregnated wood is collected and transported to an
and cooperate actively with pioneers in the environmental
approved incinerator to be used for energy production.
sector, such as the VTT Technical Research Centre of Finland.
The materials used in production may contain recycled materials
Wood is an ecological and energy-efficient raw material for
as long as these meet the quality requirements. Suppliers decide
production, making
it environmentally-friendlier than metal. We
on the share of recycled materials. For example, the safety tiles
monitor the use of wood carefully and select our suppliers with
we use are made of recycled rubber. Our packaging materials are
care. Already during the procurement process we order wood
also recyclable and we are involved in organising the utilisation
materials in sizes that minimise waste and use adhesive joints
of packaging materials delivered to the market (PYR). All Lappset
to reduce waste even further. Now that heat production plants
products and their components are 100% recyclable.
are allowed to use clean wood as fuel, the opportunities to use
the raw material as efficiently as possible have improved even
In proportion to the total amount of waste, the amount of
further. These developments have allowed us to reduce waste
hazardous waste is small. We have been able to substantially
wood to 5 percent from the earlier level of 15 percent. Our
reduce such w
aste by cleaning and recycling process water.
product designs use wooden components wherever possible,
After the pre-cleaning process we have developed, 60
and these account for the majority of Lappset's products.
percent of the hazardous waste produced can now be cleaned
However, the use of metal components is increasing as a result
biologically in a hazardous waste treatment plant instead of
of customer wishes. In 2010, we used a total of 5,695 m³ of
heavier treatments. In 2008, we set the target of reducing the
wood in our production process.
Environmental responsibility: Working and caring for a more attractive environment
33
CONSUMPTION OF DISTRICT HEATING (MWh)
ELECTRICITY CONSUMPTION (million kWh)
3,500
3.00
3,000
2.50
2,500
2.00
2,000
1.50
1,500
1.00
1,000
0.50
500
2007
2008
2009
2010
2007
2008
2009
2010
Weather-adjusted consumption figures.
The use of electricity has been reduced, for example, due to
measures carried out at the factory.
We optimise our off-season capacity through production
Suppliers
planning, producing goods to store, which improves our
Today, Lappset has about 130 active suppliers, forty of which
efficiency and the reliability of deliveries. All of our production
are strategically important. It is our aim that all of our key
facilities are modern, less than 10 years old, and equipped
suppliers have an environmental programme and that they
with heat recovery equipment. Our energy consumption is
comply with environmental legislation. We do not contemplate
also reduced by machinery that only runs when necessary.
any level of cooperation before these conditions are satisfied.
We have also separated the suction device for removing saw
We also monitor and supervise our suppliers through surveys
dust and introduced a machine-specific electricity supply to
and annual audits.
replace a centralised system, which has reduced our electricity
consumption. Our internal monitoring compares the ener
gy
Equipment
consumed in production to the amount of wood processed, and
Environmental awareness also affects Lappset's equipment
our aim is to keep our energy consumption at the level of 2007
purchases. We prefer low-emission models in our company
at the same time as the degree of processing increases.
cars and vehicles. We encourage the choice of low-emission
company cars by offering a discount on the user charge in
34
Environmental responsibility: Working and caring for a more attractive environment
GAS CONSUMPTION (L)
FUEL OIL CONSUMPTION (L)
30,000
60,000
25,000
50,000
20,000
40,000
15,000
30,000
10,000
20,000
5,000
10,000
2007
2008
2009
2010
2007
2008
2009
2010
Attention to the environmental perspective in gas use has reduced
consumption. Material from 2007 is not available for comparison.
A more fuel-efficient driving style has contributed to trucks using
less fuel. Material from 2007 is not available for comparison.
accordance with the cat
egories we have set. The categories are
heavy metals and an agreement was concluded in spring 2010
130, 150 and 170 CO² g/km.
in connection with the sale of the land area that Lappset would
restore the area. Savaterra Ltd was responsible for the cleaning
Good results in the reduction of energy consumption have
of the soil.
been achieved through developing our production processes
and updating machinery. By using machinery that consumes
The ground survey results showed that the hazardous materials
electricity only when used we have managed to generate great
originated from the post-processing of treated wood carried
savings in terms of electricity consumption.
out in the area between 1973 and 1998. The ground survey
ordered by Lappset was conducted by WSP Environmental,
Land restoration in Pello
an Oulu-based company specialising in environmental issues.
In 2010 we restored a land area in Pello. The area comprises 0.2
The same company also supervised the restoration work
as an
hectares of old industrial real estate. The land area was restored
external supervisor. Lappset has not had activities in the area
because a ground survey carried out in 2008 in parts of the real
of this industrial real estate since 1998 when the Pello factory
estate—in an area of 2,000 square metres—found residues of
moved to new premises.
Environmental responsibility: Working and caring for a more attractive environment
35
PRODUCT
LIFE CYCLE
Wood is an ecological raw material
preservative which does not release toxic substances. The
The main material used in Lappset's products is Finnish pine. As
treatment lengthens the product's service life from five to 15
a material, wood is environmentally-friendly, computationally
years. The total energy consumption of preserved wood during
CO² neutral and its production is energy-efficient. We set strict
its service life is only one third of that of unpreserved wood. We
requirements for our suppliers when the acqu
isition of wood is
are constantly seeking new alternatives to preserve wood and
concerned. We only accept wood from PEFC certified forests. All
our aim is to start using a metal-free preservative as soon as
our suppliers deliver to us certificates of authenticity as required
that becomes possible.
by PEFC. To ensure the origin of the wood we use, we obtained
in 2006 a certificate in accordance with the PEFC COC:2006
Our gluing and surface treatment processes are also closed
standard for the origin of wood. Our operations comply with the
industrial processes. Because they are not connected to the
requirements of these standards and the certificates are audited
public sewer system, we are able to stop hazardous substances
by independent external auditors. The validity of our certificates
entering into the environment. We are happy to say that no
can be freely reviewed at www.inspecta.fi.
small spills, let alone major ones, have occurred during any of
our production stages.
isition of wood is
are constantly seeking new alternatives to preserve wood and
concerned. We only accept wood from PEFC certified forests. All
our aim is to start using a metal-free preservative as soon as
our suppliers deliver to us certificates of authenticity as required
that becomes possible.
by PEFC. To ensure the origin of the wood we use, we obtained
in 2006 a certificate in accordance with the PEFC COC:2006
Our gluing and surface treatment processes are also closed
standard for the origin of wood. Our operations comply with the
industrial processes. Because they are not connected to the
requirements of these standards and the certificates are audited
public sewer system, we are able to stop hazardous substances
by independent external auditors. The validity of our certificates
entering into the environment. We are happy to say that no
can be freely reviewed at www.inspecta.fi.
small spills, let alone major ones, have occurred during any of
our production stages.
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