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2011 r e p o r t Corporate Responsibility “YOUR TASK IS NOT TO FORESEE THE FUTURE BUT TO ENABLE IT” A n t o i n e d e S a i n t -E x u p é r y The 2011 Corporate Responsibility report illustrates Thales’s commitments and actions in a number of areas of corporate responsibility, including but not limited to the measures in place to ensure compliance.
This document can be downloaded in accessible PDF format for visually impaired and disabled readers from: sustainability.thalesgroup.com
Additional information and the latest news and data about ethics and corporate responsibility can also be found at the same address. The Thales annual report (Registration Document) presenting the Group and its financial data can be downloaded from: www.thalesgroup.com/Group/Investors Questions to the Chairman & CEO 02
Foreword by the Chairman of the Ethics and Corporate Responsibility Committee 04
Principles of responsibility 05
A global leader in the quest for security 07
Ethics and corporate responsibility as a shared asset 15
Corporate responsibility in an ecosystem with customers and suppliers 25
Transparency and dialogue with investors 43
Commitments to social responsibility 49
Advanced technology for the environment 59
Engaging with the community 69 Questions to the Chairman & CEO
WHEN YOU’RE SERIOUS ABOUT Luc Vigneron Chairman & Chief Executive Officer INTE GRITY, GOOD INTENTIO NS ARE NO LONG ER ENOUGH.
In 2010, you said ethics and with national and international laws and efforts to ensure compliance by helping corporate responsibility were regulations against corruption can expose managers develop the right reflexes. It central to the strategy of change a company and its officers to criminal and involves providing the tools, civil sanctions as well as causing untold recommendations and best practice you were leading. Is that still the reputational damage. The slightest suspicion guidelines they need to make the right case? of corrupt practices can shatter the decisions in every case despite the complexity of the regulatory context and Luc Vigneron: Absolutely. In a complex and confidence of our investors, banking the different standards and practices that constantly changing global environment, I partners, customers, suppliers and exist in different parts of the world. So consider it top priority for Thales to act employees. It can damage the company’s compliance and integrity programmes are within a rigorous framework and to performance. So we need more than a two key instruments of our risk management demonstrate the strictest standards of compliance policy – we need a robust policy. They both have a focus on risk integrity. In the strategy of change that I am integrity programme and the means to prevention, and they both have a leading, ethical business conduct and enforce it. contribution to make to the long-term success corporate responsibility need to be and sustainability of the business. embedded in the company’s decision- What is the difference between making processes at every level, guiding integrity and compliance? not only our major policy decisions but the In today’s fiercely competitive choices made by individual employees on LV: It’s not so much about the difference global markets, how compatible an everyday basis as they manage the between the integrity and compliance but is an integrity programme with complexity of the regulatory context. how closely the two programmes a company’s business interests? complement each other. For Thales, You seem very determined... enforcing compliance has involved putting LV: It’s a little simplistic to suggest that the in place a dedicated organisation inside two are mutually exclusive, especially LV: Indeed I am. Preventing corruption is the Group to ensure that all the necessary when the world is going through a major just an example. But Thales has been regulations and procedures are applied economic crisis. As far as I am concerned, fighting for change in this area for more and to form the bedrock of an authentic our integrity policy is non-negotiable. than a decade, and we’re considered a policy of ethics and corporate responsibility. Integrity is not a choice. When your leader in the field. Today, non-compliance The integrity programme complements our customers are governments and major 1 3
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47 industries, integrity is an absolute necessity. But doesn’t this integrity policy taking concrete steps to develop a shared I have always considered that our future make Thales less competitive sense of ethics and responsibility among 49 success hinges on the performance of the than other major companies? all our employees. It’s one of the basic goals technologies we develop and the quality of Thales’s awareness and training policy 51 of the products and services we sell. The LV: Quite the contrary. When all the players in these areas. It’s not only about building ethical standards we work to, and the in a given sector work together to develop engagement but about creating collective 53 business practices we choose to adopt, a collective approach, I firmly believe they intelligence based on mutual respect and 55 are also a crucial success factor – and can establish global standards of ethical trust. When we all have the same vision of one that Thales intends to leverage as a conduct and corporate responsibility that the issues involved, and when we all share 57 long-term competitive advantage in the create a level playing field for all relevant information with others, we are in a better position to understand the risks and marketplace. competitors. This is why Thales is so 59 involved in the many committees, working find the innovative, proactive responses that our stakeholders expect. Is that why you were directly groups and task forces that are addressing 61 involved in the G20 Summit? these issues. The business ethics initiative taken by the aerospace and defence 63 LV: Yes it is. I was invited by the French industries on both sides of the Atlantic is a employers’ confederation (Medef) to be good illustration*. 65 the spokesperson for the Anti-Corruption prevention working group and to speak Do you think your personal 67 on behalf of entrepreneurs throughout the convictions and this sector-wide 69 world. I accepted because I believe the involvement are sufficient? G20 countries need to put pressure on the 71 other countries to speed up the process of LV: Agreements and organisations are just ratifying the OECD Convention, and also a means to an end. What really matters is because I believe responsible companies
the will to succeed, the ability to stay 2011 should get the recognition they deserve, focused on achieving the objective. And particularly through explicit provisions in that really hinges on the engagement of the report responsibility public procurement policies. people on the ground. This is why we are *See ASD and AIA initiatives, pages 29 and 31. corporate Foreword
Bernard Rétat Chairman of the Ethics & Corporate Responsibility Committee
The Ethics and Corporate Responsibility Committee therefore continues to communicate on a regular basis with numerous NGOs – particularly in In the face of increasingly stiff As well as the Thales Code of Ethics, a connection with the Arms Trade Treaty, international competition, Thales range of best practice guidelines and business ethics and human rights – to achieved a long list of contract wins in other tools are available to employees, stay in touch with the latest developments 2011 in all areas of our business. as well as training opportunities at in the area of ethics and corporate various points in their careers. responsibility. In 2011, we also This continued success testifies to Thales’s communicated more frequently with the technological excellence and the We have focused particular attention financial community, notably with expertise and experience of our teams on staff involved in marketing and sales, investors and analysts involved in around the world. project management and purchasing, socially responsible investment (SRI), and reaching members of these job organising around 20 one-on-one But all these new contract awards are families was the top priority for our meetings with first-tier investors during also an endorsement of Thales’s ethics ambitious Preventing Corruption training the year and also taking part in several and corporate responsibility policy, programme in 2011. This programme SRI conferences and roadshows. which has been completely reviewed is mandatory for all employees involved and implemented throughout the Group Our industry is continuing to mobilise in marketing and sales. since 2010. Thales’s stringent new around these crucial issues. In 2011, system has drastically reduced any risk An ethics alert system is now in place, the International Forum on Business of corruption and brought us a better providing employees with a means to Ethical Conduct (IFBEC), set up by the appreciation of the complexities involved report ethical concerns. Indeed, Thales AeroSpace and Defence Industries in areas such as export control. is one of the first companies in France Association of Europe (ASD) and the to gain authorisation from CNIL, the Aerospace Industries Association of To work more closely with our customers, French data protection authority, to America (AIA), became an institution in Thales has expanded its industrial implement this type of whistleblowing its own right. IFBEC brings together the operations in a number of countries and mechanism, subject to a number of major aerospace and defence established long-term partnerships with specific requirements. companies on both sides of the Atlantic local players selected for their technical and, thanks in part to Thales’s leadership capabilities and their record of integrity. The Thales Ethics and Corporate and involvement, is continuing to thrive. Responsibility Committee is proud of the These Key Industrial Partners (KIPs) IFBEC now has its own legal status and role it has played in developing and undergo a strict selection and governance system. Its latest international implementing these tools, and in helping qualification procedure to ensure that conference, held in Washington DC in to foster the culture of ethical business they share the same high standards of October 2011, attracted more than conduct that is so crucial to the ethical conduct and corporate 100 representatives of major aerospace company’s success. responsibility that we expect of ourselves. and defence companies, government Of course, business ethics cannot be bodies and NGOs, reflecting the Thales’s ethics and corporate reduced to a set of tools and checklists. importance of its role in sharing responsibility policy is only effective, There are no set formulas and the information and best practice and however, to the extent that it is clearly solutions in place today are not cast in developing global standards of business and unambiguously supported by stone. Maintaining the highest ethics. management and duly understood and standards of ethical conduct calls for applied by each and every employee. The ambitious ethics policy and a permanent quest for knowledge and organisation that Thales has developed We therefore attach particular betterment, an unwavering focus on our for more than 10 years achieved a importance to employee awareness and customers, suppliers, employees, number of further successes in 2011, training to maximise employee shareholders and regulators, and an helping to build the Thales brand around engagement with the Thales’s principles ability to listen to all of our stakeholders the world and supporting our reputation and standards of ethical business and understand what they expect as an ethical and socially responsible conduct. of us. company. 1
Principles of responsibility 3 5
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Launched in 2000, the United Nations Global Compact (UNGC) is both a policy platform and a practical framework 21 for companies that are committed to sustainable business practices. It seeks to align business operations and strategies everywhere with ten universally accepted principles. 23
About 9,000 organisations around the world, including 6,100 companies, have joined the Global Compact. 25 Thales signed up to the Global Compact in 2003 and has adopted its ten principles. In 2009, Thales renewed its commitment to the UNGC and its principles. 27
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31 Human Rights 33
Principle 1 Businesses should support and respect Pages 16, 19, 30, 34, 36, 39, 46, 35 the protection of internationally proclaimed 70, 71 human rights 37 Principle 2 and make sure that they are not complicit Pages 16, 19, 30, 34, 36, 39, 46 39 in human rights abuses. 41 Labour Standards 43
Principle 3 Businesses should uphold the freedom Pages 16, 18, 30, 38, 45, 47, 50, 45 of association and the effective recognition 51, 52, 53 of the right to collective bargaining 47 Principle 4 the elimination of all forms of forced Pages 16, 20, 30, 38, 47, 54 49 and compulsory labour 51 Principle 5 the effective abolition of child labour Pages 16, 20, 30, 38, 47, 54 53 Principle 6 and the elimination of discrimination Pages 16, 20, 30, 38, 47, 54, 55, in respect of employment and occupation. 56, 57 55
Environment 57
59 Principle 7 Businesses should support a precautionary Pages 16, 20, 38, 39, 47, 60, 65, approach to environmental challenges 66, 67 61
Principle 8 undertake initiatives to promote Pages 16, 38, 39, 47, 60, 61 63 greater environmental responsibility Principle 9 and encourage the development and diffusion Pages 16, 38, 39, 47, 60, 61, 62, 65 of environmentally friendly technologies. 63, 64 67
Anti-Corruption 69
Principle 10 Businesses should work against Pages 16, 17, 18, 19, 20, 22, 26, 71 corruption in all its forms, 27, 28, 29, 30, 31, 32, 33, 2011
including extortion and bribery. 38, 39, 46, 47 report responsibility
corporate ABOUT THALES A global leader in the quest for security
With operations in 56 countries and 67,000 employees, Thales is a world leader in critical information systems for the defence, security, aerospace and transportation markets. Building on its expertise in the most sophisticated technologies and large-scale software systems, Thales is stepping up to the security challenges of its customers in an increasingly complex world. With its global network of 22,500 high-level researchers and engineers, Thales has earned particular recognition for its ability to develop and deploy dual civil and military technologies. Leveraging its international operations and spanning the entire value chain from equipment to systems and services, Thales is playing a pivotal role in making the world a safer place. A global leader in the quest for security
Understanding our business
Our mission gather, process and distribute information, helping them to understand complex With greater mobility, growing complexity situations so they can decide and act in and new vulnerabilities, what does it take a timely fashion and obtain the best Thales assists its customers in making to make the right decisions at the right time outcomes. critical decisions by helping them to and act accordingly? understand complex situations so they This understanding of the critical decision can decide and act in a timely In a world that is increasingly mobile, chain underpins our innovation and fashion and obtain the best outcomes. interconnected and interdependent, the technological developments in areas such security of people and goods, infrastructure as large-scale software-driven systems, and nations depends on leaders and secure communications, sensors (radar, organisations and their ability to decide sonar, optical), supervision, onboard and act in a timely fashion. electronics, satellites and systems In the markets that Thales serves – defence, integration. These technologies and security, space, aerospace and ground capabilities, and the central role of human Across all our businesses, the company's transportation – these decisions are often factors in critical decision-making, are 67,000 employees are guided by a of critical importance. Navy, army and air common to all our activities. The Group's proactive policy of corporate responsibility force commanders, as well as air traffic employees need to constantly develop their that is key to managing risks and driving controllers, public policymakers and skills to stay ahead in these areas. performance. infrastructure operators, face these critical decisions and need full, relevant and A responsible local player reliable information to understand the situation and make the right choices. We have built up an in-depth knowledge of the markets we serve and, with operations The critical decision chain in 56 countries, we have developed close relationships with local customers to grasp Our role is to assist our customers in the intricacies of their operational decision- accomplishing their missions by providing making processes and propose the best the tools and technologies they need to solutions for every situation.
The critical decision chain
Security / Integrity
Secure Data Data data processing Decision Sensors gathering Support Action Assessment transmission >≤information 1
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Our businesses security and the protection of sensitive sites, 29 critical infrastructure, information systems 31 Defence and security and data assets. Governments need to respond to rapidly Thales helps national governments, local 33 changing defence challenges and plan for authorities and civil operators to protect large numbers of potential crisis situations their citizens, sensitive data and critical 35 of varying types and degrees of severity. infrastructure. The company provides 37 At the same time, with growing awareness resilient, integrated solutions as well as of challenges such as terrorism, cybercrime, interoperable equipment, systems and 39 rising mobility, environmental risks and services, all of which are embedded within disaster response, sovereignty requirements the critical decision chain and designed to 41 now extend beyond the traditional ambit evolve as needs change and as new of national defence to encompass citizen technologies become available. 43
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Defence Security 49
Ranking 51
#1 worldwide in sonar #1 worldwide in interbank transaction software security 53 #2 worldwide in military tactical radio #3 worldwide in hardware encryption systems 55 #3 worldwide in naval electronics 57 #3 worldwide in surface radar 59 #4 worldwide in C4I systems 61 #5 worldwide in optronics Strengths 63
Thales provides all branches of the armed forces with Time-honoured expertise in the defence sector underpins our ability 65 a complete range of equipment, systems and services to design, develop and deploy integrated, resilient solutions to meet fully integrated into land, air and naval platforms to meet national security and public safety requirements. State-of-the-art 67 new demand for interoperability and C4ISTAR capabilities solutions from Thales protect complex infrastructure (airports, harbours, (Command, Control, Communications, Computers, Intelligence, borders), sensitive data (encryption, network security management) 69 Surveillance, Target Acquisition, Reconnaissance). and information systems. By making it simpler to coordinate joint and coalition 71 operations and deliver the right effect at the right time, Thales systems and solutions help deployed forces maintain 2011 decision superiority under all circumstances. report responsibility
corporate A global leader in the quest for security
Satellites and space systems play a crucial role in modern societies, helping us to meet the major environmental and security challenges of our times, explore the universe and deploy new information and communication technologies.
Aerospace and transportation In a world that has become increasingly communications technologies that play such reliant on the free flow of goods, data and a crucial role in modern societies. individuals, the issue of mobility is of major Thales works with the major players in all economic and political importance. Aircraft of these markets to develop and deploy manufacturers, airlines and transport system new solutions that help them meet their operators need to move people and goods objectives cost-effectively. faster and further with higher levels of safety and security and better environmental performance. Satellite technologies can help to meet these major environmental and security challenges, and they offer better access to the information and
Space Aerospace Ground transportation
Ranking
#1 in Europe commercial/civil satellites #1 worldwide in air traffic control #2 worldwide in rail signalling systems
#1 worldwide in integrated communication #3 worldwide in commercial/civil satellites #2 worldwide in in-flight entertainment and supervision systems
#3 worldwide in avionics Strengths
Thales provides commercial, institutional Thales provides both onboard electronic Thales has developed a structured portfolio and military customers with end-to-end equipment and ground systems for air of solutions and services dedicated to systems, satellites, payloads and ground navigation and air traffic control. mainline and urban rail transport and urban segments for telecommunications, Earth The company is a first-tier supplier of toll road management. This positioning sets observation, navigation and scientific avionics to leading aircraft manufacturers. the company apart from more broad-based research. The Group is playing a leading In air traffic management, our solutions suppliers with offerings dominated by role on the largest civil and military space span the entire flight-plan surveillance and rolling stock, and from smaller specialised programmes, including the Iridium Next security chain. Thales is playing a central businesses, which tend to focus on a single constellation, the International Space role on major modernisation programmes area of expertise. In each of its market Station, Cosmo-SkyMed, Meteosat and in this sector, including Europe’s future air segments, Thales is a recognised specialist Helios, and is also involved in exploring traffic management infrastructure. and leader. The company's international the planet Mars – possibly the most footprint is also exceptional, with six exciting space adventure of our time. competence centres and fifteen integration centres on five continents. 1
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Order intake in 2011 Revenues in 2011 21
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By business sector (in millions of euros) Revenues by business sector (in millions of euros) 25
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29 Defence Aerospace and Defence Aerospace and and security transportation and security transportation 7,210 5,953 7,253 5,682 31 (55%) (45%) (56%) (44%) 33
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By geographic area of origin By geographic area of origin 39 (in millions of euros) (in millions of euros) 41
43 France Area A France Area A 7,16 3,694 6,163 4,230 45 (54%) (28%) (48%) (32%) 47 Area B Area B 2,353 2,633 49 (18%) (20%) 51
53 By destination (in millions of euros) By destination (in millions of euros) 55 UK Rest of Europe UK Rest of Europe 1,094 3,074 1,492 3,457 57 (9%) (23%) (11%) (27%) 59
North North 61 France America France America 3,470 1,204 3,407 1,269 63 (26%) (9%) (26%) (10%)
Asia Asia 65 Rest of the world Pacific Rest of the world Pacific 631 2,884 607 1,849 67 (5%) (22%) (5%) (14%) Middle East Middle East 69 857 (6%) 947 (7%) 71
Geographic areas of origin: • Area A: USA, Canada, UK, Netherlands, Norway, South Korea, Australia, Northern and Central Europe and Northern Asia. 2011
• Aera B: Germany, Austria, Switzerland, Italy, Spain, Singapore, Latin America, Rest of Europe, Middle East & Africa, Western Asia, Southern Asia. report responsibility
corporate A global leader in the quest for security
Our strategy
The three pillars of Thales's strategy are: Europe remains Thales's historical core software radio, radar, sonar, optronics, • Growth market. As a key player in the defence maritime surveillance, cybersecurity, air • Innovation community, with a significant industrial traffic control and rail signalling. • Performance presence in many European countries, we are playing a leading role on some of Europe's largest programmes, most of them Performance Growth conducted on a cooperative basis, in areas as varied as equipment and systems for Only high-tech businesses that continuously Most of today's growth markets are in Asia, land forces, aerospace, naval defence, improve their operational performance, Latin America and the Middle East. We satellites, missile systems and C4I*. This simplifying their processes and optimising intend to further expand our local industrial role strengthens our positions in domestic the way they manage projects and risks, operations to meet the demands of local markets and adds prominence to the part will have the enduring investment capacity customers – most of them national we may play in any further industry they need to develop state-of-the-art solutions governments – who want their countries to consolidation. for their customers over the long term. benefit directly from the skills and technologies Setting best-in-class standards, sharing that a company like Thales can provide. In civil aviation, space and ground transportation, Thales is a major player on best practices and learning how to work some of today's largest strategic projects. even more cohesively as a team – these With the expansion of air traffic, growing are the objectives of the Probasis Responsibility use of satellites and plans to upgrade performance plan for 2010-14 and our ground transportation infrastructure, this new business process baseline, the in action experience is an important asset for the Chorus 2.0 reference system. future. This comprehensive set of measures is Hervé Multon, steadily enhancing our ability to meet the SVP Strategy, commitments we make to our customers. Thales Innovation "With country To provide customers with high-tech solutions operations and services that meet their future assuming more requirements, Thales needs to innovate responsibilities, constantly. The purpose of all our innovations Thales has adopted a new is to create value for customers, sometimes by using technology but also by finding business model that structures new ways of doing business or organising the way we approach our ourselves, and better ways to manage our markets and has a direct impact processes and combine our talents. on product policy. Working with One of the priorities of Thales's R&D policy Key Industrial Partners makes us is to develop technological synergies take a long, hard look at where across the organisation, particularly by are core strengths lie, which leveraging our dual civil/military industrial capabilities we need capabilities, so that all our markets benefit to preserve and which activities from the full potential of our expertise and can reasonably be handled by experience. Key projects in areas including command and control, hypervisors, high- our partners as they pursue grade computer security and active-array their own economic priorities radar antennas are being conducted on and business objectives. a multi-divisional basis for this reason. Contributing to local economic Thales is stepping up its policy of open development – in our own innovation with the academic community, interests and in the interests research institutes and innovative SMEs. of our customers – is also part We are also speeding up our investments of Thales's mission." in the resources needed to create global product lines in areas including tactical
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To provide customers with high-tech solutions and services that meet their future 31 requirements, Thales needs to innovate constantly. 33
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Thales encompasses • Focus on customers, because customers are the constant priority of all 43 a rich variety Thales people. Each in our role, and collectively speaking with one voice, 45 of professional we strive to create sustainable satisfaction for them. By delivering backgrounds and top-quality service and innovative solutions, we work with our customers 47 as partners and earn their trust. national cultures. 49 Wherever we are and • Perform through teaming, because we recognise that a team is always 51 whatever our role, we are more effective than the sum of its parts. In all circumstances, solidarity bound together by our is what enables us to create the best possible solution. 53 values. They are part 55 of a set of demanding • Innovate, because innovation is the driving force behind everything we standards of ethical do. This is why we encourage the people of Thales to create competitive 57 conduct and corporate edge by remaining open-minded to new ideas. We dare to do things 59 responsibility that we differently, to find a better way. apply to every aspect 61 of our work on • Develop our people, because believing in their potential is a basic mark of respect. Our employees' expertise and knowledge represent our main 63 a daily basis. asset. It is our priority to invest in the continued development 65 of our people. 67 Building on the unique attributes of its employees and a set of shared values, Thales has developed a rigorous policy of corporate responsibility 69 with respect to its stakeholders: customers, suppliers, employees, 71 shareholders, the financial markets and civil society.
2011
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corporate ISSUE UMBER ONE Ethics and corporate responsibility as a shared asset
In 2000, Thales established a formal corporate responsibility policy with a strong focus on prevention of corruption. The policy enjoys the support of the Group’s most senior management and is continuously adjusted and updated to remain relevant in an evolving and increasingly complex environment.
Today, Thales maintains a dedicated ethics and responsibility organisation and a stringent system of internal controls, continuously improves its processes and training programmes, and has procedures in place to sanction employees who violate its ethics policy. Ethics and corporate responsibility as a shared asset
A robust organisation
Committee. The Senior Vice President, of Ethics and protect their confidentiality Audit and Internal Control, has overall when reporting possible infringements of responsibility for risk management, making the Code of Ethics that could engage the ethics and corporate responsibility an company’s liability. The Group-wide organisation in place to integral part of the Group’s overall risk develop, implement and enforce Thales management system. The Ethics and policy in these areas confirms the central Corporate Responsibility Department also role of ethics and corporate responsibility maintains the Code of Ethics, which lays in the company’s strategy. down the general practices and values The Thales underpinning the Group’s operations. This Ethics and Corporate Responsibility Code of Ethics Committee is one of the Group’s three An international network of 17 Ethics governance bodies, alongside the Officers ensure that employees in their Executive Committee and the Risk and respective units receive adequate training Internal Control Committee. The Committee and information. They answer questions To help foster a culture is responsible for staying abreast of about compliance with the Thales Code of accountability, developments in ethical standards and of Ethics, and, most importantly, they adapt Thales has established a practices and for defining the Group’s the ethics policy to local legislation and Code of Ethics, which is corporate responsibility policy. It met three practices, for example with respect to gifts, times in 2011. hospitality and whistleblowing procedures. regularly updated and It is also the role of the Ethics Officers to lays out the practices The role of the Ethics and Corporate respond to possible infringements of the and behaviours Responsibility Department is to implement Code of Ethics and report them to the that are expected the policy defined by the Committee. The Ethics and Corporate Responsibility Vice President in charge of the Department of Group employees Committee. reports directly to the Senior Vice President, in four key areas Audit and Internal Control (who reports to A Group-wide Ethics Alert system has been of responsibility: the Chairman & CEO), and is also a set up to enable every employee to obtain • responsibility towards, member of the Risk and Internal Control information and advice about the Code customers and suppliers, • responsibility towards the Group’s staff, Members of the Thales Group Ethics and Corporate • responsibility towards Responsibility Committee (at 31 December 2011) shareholders and financial markets, • responsibility towards the • Chairman: Bernard Rétat • General Secretary: Dominique Lamoureux environment, community • Stakeholder representatives: and company. Sandrine Bouttier-Stref Environment Published in seven languages Didier Brugère French institutions (English, Dutch, French, German, Michael Seabrook United Kingdom Italian, Portuguese and Spanish), Jean-Claude Climeau Financial markets the Code of Ethics can be Olivier Conrozier International customers accessed by all employees on the Marc Darmon Audit and internal control corporate intranet and each new Jérôme Dufour Media / Communities staff member receives a copy. Patrick Fournié Suppliers / Industry Ethics Officers are responsible for Sylvie Lucot International customers ensuring that copies of the Code Anne de Ravaran Human resources of Ethics are available in every Rodney Willis United States of America Group unit. 1
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Collective intelligence as a strategic asset 11
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15 of corporate governance, responsible companies simply do not apply the same ground rules as less 17 scrupulous competitors or companies with far fewer political constraints in terms of labour standards, 19 Dominique environmental performance or human rights. 21 Lamoureux, To remain competitive, responsible companies VP, Ethics therefore need do certain things better – not only 23 and Corporate to understand exactly what their customers expect 25 Responsibility and how their competitors are responding, but also to fully appreciate the overall business context 27 and increase their influence in the marketplace. Economic crisis, slower development, global 29 warming, migratory flows, white-collar And they need to develop this expertise, of course, 31 crime... For the last ten years or more, as without compromising their basic commitment to ethical business conduct. globalisation has advanced, all the major 33 economic players on the planet have been Creating collective intelligence 35 under pressure to work alongside governments The success of an economic intelligence policy of and international organisations to make this kind hinges on collective intelligence within 37 a real and tangible contribution to solving the company itself. Mutual trust among employees is 39 the world’s problems. Corporate responsibility the first prerequisite for building the kind of collective policies are a direct response to these intelligence needed to fully understand the risks, 41 new demands. to share the same vision of the opportunities and to stay motivated to pass on the relevant information 43 Beyond regulation to others. 45 A corporate responsibility policy is a basic necessity Enlightened management practices founded in for any company that has a commitment to mutual respect are the only way to build a collective 47 sustainable growth and recognises the true role of intelligence strategy that is both meaningful and 49 its stakeholders. The primary policy objectives are successful for a company. Even competing companies to ensure compliance not only with a vast array can work together to build this kind of collective 51 of legal and regulatory requirements, but also to intelligence, with established players in a given sector 53 meet a growing number of standards, best practice sharing strategic knowledge to give themselves a guidelines and recommendations issued by competitive edge over new entrants. This approach 55 international organisations and civil society, has been adopted successfully in the aerospace and and the demands of the public at large on defence sector, for example, to develop common 57 a range of environmental, social and societal issues. industry standards of ethical business conduct. 59 By embracing these new responsibilities, companies Even more importantly, there is an urgent need clearly improve their image and reputation. for governments and economic players to collectivise 61
By incorporating practical prevention policies their economic and strategic intelligence. 63 into their risk management processes, for example, No economic intelligence strategy will succeed they are less likely to engage in fraudulent practices without new models of public-private cooperation 65 and legal sanctions can be avoided. based on trust and authenticity. 67 Companies with strict corporate responsibility policies Innovative responses call for agile minds and therefore deliver better overall performance. Strictly purposeful acts, and this is the essence of Thales’s 69 in terms of global competitiveness, however, these vision of corporate responsibility. Or to quote companies – mostly from Western nations – are at a Saint-Exupéry, our task
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corporate Ethics and corporate responsibility as a shared asset
Employee awareness
As well as establishing behavioural E-learning Ethics workshops guidelines through the Code of Ethics, Thales organises ethics and corporate In addition to these face-to-face training In 2011, employees from a broad range responsibility awareness campaigns programmes, Thales offers its employees of Thales job families took part in ethics throughout the year (intranet, corporate a wide range of self-paced online courses. workshops in Germany, France, Italy, the website, employee publications and The course catalogue can be accessed Netherlands and the United Kingdom. The special events). The Group also offers via the e-learning portal on the intranet or workshops were organised with the specific e-learning modules and face-to- on the corporate website. To better match following goals: face training opportunities to provide the course offerings with the needs and • gauge the degree of understanding and employees with more in-depth knowledge professional development goals of each level of maturity of Group employees of Thales policy. employee, only the e-learning courses that with respect to ethics issues, are relevant to his or her function, job • identify areas of improvement as a basis family and level of responsibility are for tailored action plans designed to displayed on the web portal. Online increase the Group’s overall level of A training programme courses in areas such as management, maturity on ethics-related issues. marketing and sales, programme to encourage more The four-hour workshops, conducted in the management and business processes, official language of each country, were ethical practices software, systems and other technologies an opportunity for participants to express with company-wide relevance are The theme of ethics is also embedded in themselves freely and share their designed to supplement face-to-face an increasing number of other in-house experiences of the Thales Ethics and training programmes. training programmes. The subject was first Corporate Responsibility policy, particularly introduced in 2000 in training programmes with respect to their relationships with on export control and prevention of customers and suppliers, discrimination in corruption. Reflecting the determination to the workplace and environmental go beyond compliance and to establish considerations. ethics and responsibility as a shared corporate value, ethics training and The conclusions of the workshops suggest awareness has now been introduced as that employees have a positive overall a theme on a range of training programmes perception of the Group’s ethics policy on topics including purchasing and and share the same aspirations for more programme management, and in the ethical practices in the business world. Passport programmes on management and Participants also felt that Thales’s corporate marketing and sales. responsibility policy should be given more visibility, and that employees should be In 2011, an ethics component was More specifically, the company provides assessed more effectively on ethics-related included in the training programme on employees around the world with access factors and recognised for demonstrating customer support services. To deliver a to an e-learning programme designed to ethical conduct. consistent message, Thales has engaged raise their awareness of the underlying two multilingual trainers specialising in principles of ethics and corporate The workshop conclusions were submitted ethics to conduct the same face-to-face responsibility. Available in French and to the Ethics and Corporate Responsibility training sessions at Thales University English, the programme comprises three Committee and a two-year action plan has campuses around the world. Ethics Officers 30-minute modules and includes real-life been launched to meet employee also conduct occasional training sessions scenarios to help employees recognise demands. or make presentations for in-country staff and deal with the kinds of situations they or specific groups of entities. may encounter in their day-to-day work. To date, 26% of employees have taken part in the e-learning programme – the equivalent of 13,600 training hours. 1
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Thales maintains an ethics and corporate 29 responsibility website on the Group intranet, where employees can view the 31 latest news, learn more about Thales’s approach and policy and download 33 booklets, checklists and other tools and documents. The site also offers employees 35 a chance to learn more about the Ethics Alert system, and provides contact details 37 for obtaining information and advice or to report any illegal practices or violations 39 of the Code of Ethics. 41 All employees can readily download the following guides and booklets on the 43 intranet: • Thales Code of Ethics (seven languages 45 available), • business ethics conduct guides (e.g. 47 Gifts & Hospitality Guidelines, Best Practices Guide to Lobbying), 49 • reference Guide on Prevention of Corruption, 51 • policy highlights (e.g. Thales corruption 53 prevention policy), • selected conventions and legal texts on 55 combating bribery (e.g. OECD Convention), 57 • professional standards (e.g. ASD Common Industry Standards, ASD-AIA 59 Global Principles of Business Ethics), • e-learning modules on business ethics, 61 including case studies in serious game format. 63
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In addition to the Code of Ethics, Thales 71
provides employees with a collection of guidelines and standards as well as 2011 face-to-face training, e-learning programmes and a dedicated site on the corporate intranet. report responsibility
corporate Ethics and corporate responsibility as a shared asset
Processes and risk management
To enforce its corporate responsibility imperative. Any instance of malpractice or • A Risk & Internal Control Committee, policy and support the sustainable malfeasance could not only expose the reporting to the Group’s Executive development of its business activities while company to legal and financial risks but Committee (at least four members of improving the satisfaction of customers, also undermine its competitive performance. which sit on the risk committee at any employees and other stakeholders, Thales Thales has had a robust organisation in time), approves the principles of has put in place a global organisation place for many years to ensure that its governance (objectives, alert thresholds, based on the principles of transparency, business activities comply with all applicable etc.) for each of the 18 types of risks performance improvement and risk laws and regulations. identified and monitored at Group level. management. In 2010, Thales also incorporated • Senior managers of each subsidiary, operational risks into its risk management who have assumed responsibility, since system in order to improve business 2011, for the maturity of the system in A comprehensive risk performance and raise levels of customer place to manage corporate risk, and management system satisfaction. This highly original initiative formally express this responsibility by has expanded the Thales risk management issuing a yearly attestation letter. In Thales develops and delivers complex systems into a comprehensive and mature addition. 10 entities have created their systems, products and equipment for management tool that covers 18 major risks own risk committees to ensure the full governments and major companies and and was recognised in 2011 by the IFACI organisations around the world. Due to the and transparent application of the (Institut Français de l’Audit et du Contrôle system: Thales UK, Thales Deutschland nature of these solutions, which are often Interne). critical for state sovereignty and/or the and, in France, Thales Communications security of people, property and data, strict Managed by the Thales Audit and Internal & Security, Thales Services, Thales compliance with national and international Control Department, this system is based Avionique, Thales Systèmes Aéroportés laws and regulations is a strategic on a multidimensional organisation: and Thales Alenia Space.
18 major risks under strict control
Operational risks Legal risks Financial risks
- Major downtime of a site - Company law - Currency exchange rates and hedging - Major failure of a project - Delegation of responsibilities - Liquidity and debt - Break in supply chain - Bribery and corruption - Anomaly in financial reporting - Harm caused to people - Infringement of export control regulations - Taxation - Damage to the environment - Breach of confidentiality - Failure of a Thales solution - Misuse of intellectual property in operational service - Breach of competition law - Lack of key skills or resources
Note: An expert has been designated for each of these risks. Anyone involved in risk management can contact the relevant expert whenever necessary. 1
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49 An award-winning risk management system 51 In 2011, the French standards body IFACI (Institut 53 Français de l’Audit et du Contrôle Interne) selected Thales for two awards in recognition of 55 its work to identify and control risks: the Thales system was awarded first prize in the ‘best risk 57
mapping’ category and third prize in the ‘best 59 internal control’ category. 61 Thales’s risk mapping method is based on the recommendations of the Committee 63 of Sponsoring Organizations of the Treadway Commission (COSO) and the IFACI in France. 65
It makes the distinction between exogenous 67 risks arising from the business environment, and endogenous risks arising from the 69
Left to right: company’s internal processes. 71
Bruno Biguet (Risk & Internal Control Director), The Institute’s 2011 survey reviewed 100 major Marc Darmon (SVP, Audit & Internal Control)
companies and administrations in France. 2011 and Luc Vigneron (Chairman & CEO of Thales) report responsibility
corporate Ethics and corporate responsibility as a shared asset
• A global network of 160 compliance Compliance officers are typically officers, or risk managers, who: appointed from the legal, finance or Responsibility - ensure that a “risk owner” is designated operations departments. Profiles vary for each of the major risks identified according to the type of business activities in action at each entity (as reported in their involved and the process maturity of the yearly attestation letters), corresponding entity or entities. - monitor the actions undertaken to • 40 internal auditors, including managers manage risks, with significant operational experience, Fleur Rahou, - analyse reports on risks and any such as former business unit directors Internal Auditor, instances of non-compliance and programme directors, verify that the Compliance detected, system has been correctly implemented & - oversee action plans, and conduct around 150 audits each Finance - remind employees of the risks involved year. About 40 of these audits focus and the need to manage them specifically on major programmes with “An internal auditor must have systematically. unit values in the tens of millions of euros. a sharp and enquiring mind in order to pick up on the underlying issues, and they Internal audits: designed to add value, need to be completely objective not create obstacles. and impartial. Internal auditors have earned a very good image at Thales because, as Thales employees, we all share the same goals of innovating and controlling risks in order to win contracts and satisfy our customers while constantly building on our experience so we can do even better. That’s the purpose of each audit assignment we carry out. We’re committed to ensuring that our role is constructive and that our recommendations are relevant and useful. We’re here to add value, not to create obstacles.”
Internal audit in four phases
Phase 1: Preparation Phase 3: Report Definition of the workplan and preliminary documentation Audit report, with findings, recommendations and associated review with the entity concerned. action plan, finalised in conjunction with the organisation Phase 2: Field work concerned. Interviews and analysis of documents. Typically 20 to 50 Phase 4: Follow-up people are interviewed over a period of one to two weeks Follow-up provided for as long as necessary, with any delays by a team of two, three or four auditors. This is followed by on specific actions reported systematically to the Executive a presentation of preliminary findings and recommendations. Committee. 1
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13 Speaking the same models and incorporate Thales best processes are applied systematically and practices. rigorously. Chorus 2.0 will help the 15 language company to perform even better, to reduce Some 1,500 people have helped to non-quality costs, many of which are 17 develop the new reference system since generated by failure to apply processes, the project was launched in February and, more broadly, to implement the 19 2010. Organised into 26 operational Group-wide risk management system. processes, with clear and precise 21 The Chorus 2.0 reference system is the descriptions of key decision milestones, Chorus 2.0 will also provide greater Thales’s business process baseline. It is roles and rules to be applied, it structures transparency and traceability at all levels 23 designed to help Thales perform better as every aspect of the Thales’s activities. of the organisation. a company and brings together all the Available in French, English, Spanish and 25 processes and procedures that govern the Italian, the reference system has been way the Group operates. Chorus 2.0 is available to all 67,000 employees via a 27 a single repository of 160 Group dedicated intranet portal since mid-2011. procedures, 700 instructions and related 29 documents, 220 definitions of roles and In 2011, Chorus 2.0 was rolled out to all 7,000 local support documents (checklists, entities around the world. The priority for 31 templates, etc.), all of which are compliant 2012 is to implement measurable and with international standards and maturity verifiable methods of ensuring that all 33
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Chorus 2.0 incorporates the company’s key processes 37 39
The principal 41 processes described Process map in Chorus 2.0: 43 • Bid management 45 • Project management Define Manage Managing Continuous 47 • Solution the strategy and Control Competence Improvement development 49 • Supply chain Manage Bids & Projects 51 management • Purchasing 53 Design, Develop and Qualify the solution • Service provision 55 Customer Customer and end user Source and Make and end user 57 needs satisfaction 59 Prepare and Deliver Customer Service 61
Support operational processes 63
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report responsibility
corporate ISSUE UMBER TWO Corporate responsibility in an ecosystem with customers and suppliers
In today’s global marketplace, Thales’s growth is increasingly driven by emerging markets. And, according to Transparency International, the risk of corruption is greater in emerging markets than in mature ones. Successfully doing business in emerging markets thus requires a company to adapt its corruption prevention processes to new environments. To better meet the demands of customers based in these markets and to develop long-term relationships with them, and with its suppliers, Thales has adjusted its business model to strengthen its local commercial and industrial operations. Thales also adapted its risk management tools in 2011 to further consolidate its corruption prevention programme. Corporate responsibility in an ecosystem with customers and suppliers
Corruption, an unnecessary evil
Corruption is a major risk for multinational officer to a fine of up to €150,000 and has also earned the company a role in the companies, particularly those involved in a prison sentence of up to 10 years. Anti-Corruption Working Group, one of the public procurement contracts, and is still 12 themes of the B20 held at Cannes in Consequently, companies that export or endemic in many countries today. For a November 2011, which provides a forum have operations overseas must incorporate long time, an act of bribery or corruption for the world’s largest companies to discuss the risk of bribery and corruption into their committed in a foreign country was global issues within the framework of the management methods and development deemed to be subject to the law of that G20. Thales Chairman & CEO Luc strategies. country alone, and the lax legal systems Vigneron presented the Working Group’s of many emerging and developing Understanding, analysing and mitigating recommendations at the last G20 Summit, countries in particular meant that corrupt these risks is the responsibility of a company’s which has made the fight against corruption practices went completely unpunished. All chief executive. When Luc Vigneron was one of its major themes. this changed in 1997, however, with the appointed Chairman & CEO of Thales in The G20’s multi-year Anti-Corruption signing of the OECD Convention on May 2009, he reaffirmed the principle of Action Plan, launched in response to Combating Bribery of Foreign Public “zero tolerance” for all forms of bribery and international pressure at the Seoul Summit Officials in International Business corruption, in line with Group policy and the in 2010, has begun to deliver results: Transactions. various measures in place since 2000. recognising corruption as a major problem, Today, for example, under French law and This firm position on corruption prevention Brazil, China, India, Indonesia and Russia pursuant to the OECD Convention, has brought Thales international recognition adopted a range of measures in 2011 to organising a payment to a foreign as a responsible company with a step up the fight against corruption, “facilitator” could expose a corporate commitment to continuous improvement. It particularly involving foreign public officials.
Thales at the B20 Summit in Cannes
Now an integral part of the G20 • The fight against corruption is a critical issue that Summit, the B20 Summit provides needs to be addressed by the G20 beyond the Cannes a framework for the international Summit. business community to express its • Efforts should now focus on fighting “passive” views on major global issues. corruption (extortion, solicitation, etc.), and there is More specifically, its provides a need for all major exporting countries, but also an opportunity for business importing countries, to ratify the major international leaders and business organisations anti-bribery conventions including the OECD to make recommendations and Convention. commitments with respect to the • “Responsible” companies should be recognised as challenges of a globalised economy. such, encouraged and accorded special privileges in For the 2011 Summit, the presidents public procurement programmes; and sectoral of the business confederations of the G20 countries, projects like the initiative by the AeroSpace and as well as 120 leaders of global companies, worked Defence Industries Association of Europe (ASD), together for several months on 12 major topics. should be developed. Luc Vigneron, Chairman & CEO of Thales, was part • Companies need to support governments in of the working group on Anti-Corruption, which made establishing best practices. four main recommendations to the G20: 1
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Also in 2011, the Arab Spring movement 25 forced from power the leaders of various countries where bribery, corruption and the 27 misappropriation of public funds had become a major source of exasperation 29 for the populace. In 2012, bribery and corruption – long considered to be a 31 necessary evil – should continue to retreat Zero tolerance for all forms of bribery and corruption. as public indignation persists, as the public 33 and private sectors find more effective ways of working together, and as 35 companies continue to take a proactive stance on these issues. The next G20 Key Industrial Partners (KIPs): 37 summit, which will take place in Mexico, will measure progress in the fight against a rigorous qualification process 39 corruption and step up its pressure on those 41 countries that continue to operate outside this framework. Key Industrial Partners are qualified in a three-stage process managed 43 by the Group’s regional holding companies*: 1- Internal/external ethics evaluation 45 Winning markets Verification of the partner’s reputation, ethical history, credentials, 47 with integrity financial data, etc.) by an outside consultant (ADIT, France’s leading strategic analysis agency, set up by the French State in 1992), with 49 To contain risks of corruption and meet customers’ expectations more closely, additional input based on internal investigations. 51 Thales has strengthened its local 2- Operational assessment management teams in entities around the Questionnaire, followed by on-site visits to check the credibility of survey 53 world and introduced a dedicated responses. international organisation to assure the 55 integrity of the partners it chooses to work 3- Analysis with. The KIP Manager in each region consults legal, financial and operational 57 As part of a strategy of convergence with teams to produce a report that determines the outcomes of the qualification its customers at the industrial level, Thales process for each company based on input from all parties involved. 59 has forged strategic partnerships with local The KIP Manager then submits a recommendation to the director of the 61 Key Industrial industry players, known as corresponding regional holding company, highlighting any potential Partners . KIPs bring the Group a competitive 63 advantage, as well as reducing corruption risk factors (e.g. ownership structure, legal problems, conflicts of interest). Companies obtain qualification for three years provided risks, in most of the countries involved so 65 far. At the same time, the system enables that all these risk factors have been addressed effectively. Partners are customers – most of them national qualified by segment, according to the classification used by the Group’s 67 governments – to gain access to the talent purchasing organisation (e.g. installation services, logistics, civil works), and technologies that a company like 69 Thales can provide. and an ethics clause is included systematically in their contracts (Purchasing and Corporate Responsibility Charter). 71 Despite the benefits of establishing industrial partnerships, KIPs can also bring * Scope of Thales regional holding companies: Europe, Africa, Latin America,
reputational, legal, financial or industrial 2011 Central Asia and Middle East, risks to Thales if they are not carefully Asia. selected and managed. These risks are report responsibility especially significant in countries that have corporate Corporate responsibility in an ecosystem with customers and suppliers
not achieved an adequate level of maturity Under exceptional circumstances, Thales also regarding the prevention of corruption of employs the services of Business Advisers to Responsibility public officials or private parties. Thales round out the local marketing and sales in action has put in place a strict process to identify, support organisations. A Business Adviser can select and qualify these partners. An be any individual or legal entity acting as a instruction was published to this effect in consultant, expert, lobbyist, sponsor, Kumiko Wada, October 2010 and is now part of the representative, introducing broker or third Director, Defense Chorus 2.0 reference system. The party that provides in-depth knowledge of the and Aerospace document, entitled Instruction to Qualify, markets and thereby contributes to Thales’s Select and Manage Key Industrial Partners, business growth and development. Domain, outlines a strict and comprehensive Because Business Advisers operate in close Thales Japan qualification process that includes legal due proximity to existing or potential customers, “The Corporate Responsibility diligence, operational and technical conflicts of interest and perceptions of policy has brought us closer assessments, and recommended corruption are possible. To mitigate these management procedures. risks, Thales has established a dedicated to head office! We have seen procedure and published a new guideline a marked increase in internal Identifying potential KIPs calls for careful for employing Business Advisers. This controls over the last few years strategic planning. These partners need to document, entitled Instruction for Appointing offer real opportunities for market access, to check that we are compliant and Managing Business Advisers, describes but at the same time they need to provide with local and international how to identify, select, appoint and pay these the best possible assurances with respect regulations on export control advisers and expressly prohibits the payment to the selection criteria defined by Thales. and ethical business conduct, of “success fees”. and in particular to examine At the end of 2011, 190 KIPs had been As part of Thales’s risk-based approach, only identified in 75 countries, and 112 had our use of Business Advisers. duly designated, empowered and We are all very aware of been qualified for an initial period of three experienced entities have prerogatives over years. The qualification process is ongoing the selection and payment of Business the issues. for the others. Through this innovative Advisers. The stringent selection process We know which processes need partnership strategy, Thales now has a includes the submission of company to be applied, and we can worldwide base of key partners that has registrations and all other official documents, access them all through Chorus been developed systematically and in including annual reports, and all the 2.0 on the intranet. It really accordance with a strict and highly information submitted is systematically makes us feel part of the Thales structured qualification process. Further double-checked by a third party. Any risk competitiveness gains in the coming years factor identified is referred to top management strategy and creates value are partly contingent on the Group’s ability for further scrutiny and decision. As in the for our customers at the to transfer more local workshare to local KIP procedure described above, this same time.” industries while safeguarding its core instruction includes strict definitions of “show capabilities. stoppers” and other risk factors. 1
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Responsibility in action 15
17 Thomaz d’Agostini Aquino, Director, Transportation Systems / Key Account Manager, Thales International Brasil 19
“The function of Key Account Manager was created so that Thales can work 21 more closely with its customers in an ethical business perspective. Ethical conduct means more than just complying with rules – it includes applying 23
the principles of business integrity and irreproachable business practices, 25 and upholding the Thales values we all share. The framework that the Group has put in place allows us to adapt to local cultures, customers and contexts while still adhering to Thales policy 27 on ethical business conduct. This policy is being very well received by customers. In fact, more and more often, customers are requiring us to make assurances about ethical and corporate responsibility as soon as we respond 29
to a request for proposals. There is a real transformation taking place, not only here in Brazil, but in every other 31 part of the world I have worked in.” 33
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These two instructions are an integral part individually or collectively, to rejecting all Through these working groups and task 37 of the Chorus 2.0 Group-wide reference forms of bribery and corruption. forces, Thales has led or contributed to the 39 system, which is applicable throughout the development of common industry-wide By partnering with the United Nations, organisation, underscoring the material standards and guidelines such as the Transparency International, the AeroSpace 41 nature of the Group’s corruption prevention OECD’s Best Practices Guidance and the and Defence Industries Association of policy and helping to drive a process of Global Principles of Business Ethics signed Europe (ASD) and other organisations, 43 continuous improvement that has been in by the ASD and the Aerospace Industries Thales stays abreast of regulatory and place for more than 10 years. The Association of America (AIA). normative changes, shares best practices 45 instructions provide a clear definition of the with other industry players and anticipates roles and responsibilities of Thales entities future developments. 47 and managers to ensure the strict separation of powers. 49
Rounding out the organisation, a 51 worldwide network of some 250 Key Account Managers (KAMs) forge long-term 53 customer relationships and act as a single point of contact for customers from the bid 55 phase through to project completion. The Key Account Manager also serves as the 57 customer’s ambassador within Thales to ensure that individual customer requirements 59 are fully understood. 61
63 A proactive role in developing 65 standards, regulations 67 and best practices 69 The proliferation of international conventions since the late 1990s has gone hand in 71 hand with a series of initiatives originating within society, or launched by international 2011 organisations or business groups. More recently, industry associations have invited report responsibility companies to commit publicly, either A worldwide network of some 250 Key Account Managers forge long-term relationships with
customers. corporate Corporate responsibility in an ecosystem with customers and suppliers
Although not legally binding, this document can help companies establish effective internal controls and compliance programmes for preventing and detecting the bribery of foreign public officials, and thus support companies in their efforts to comply with existing legislation such as the UK Bribery Act, which came into force on 1 July 2011. The key new measure of the Bribery Act establishes the criminal liability of companies that fail to prevent bribery. The second important feature is its extraterritorial reach. For several years, Thales’s anti-Corruption procedures have been in compliance with the new provisions introduced by the Bribery Act. Thales has also been closely associated with the OECD’s work on facilitation payments, which are authorised in some Initiatives by civil society (against corruption), whose core objectives national legal systems but are controversial are to: Transparency International and should be eliminated from trade • develop guidelines to help companies practices. Founded in 1993, Transparency extend anti-Corruption measures to their International is the global civil society supply chains (auditing, selecting and Initiatives by business groups organisation leading the fight against training suppliers, encouraging them to and industry associations corruption through a powerful worldwide improve their anti-Corruption measures), International Chamber of Commerce coalition of experts. As well as providing • provide tools to help SMEs develop information and awareness tools such as robust anti-Corruption programmes. Thales is a long-time member of the the Corruption Perception Index and the In 2010, the Working Group officially International Chamber of Commerce’s Anti- Transparency International Annual Report, launched its Guide for Customers and Corruption Task Force. The Group actively the organisation makes practical Suppliers during the Leaders Summit held participated in the development of RESIST recommendations to prevent the risk of at the United Nations in New York. (Resisting Extortion and Solicitation in corruption. International Transactions), which is Thales was credited in the UN Global Thales works closely with Transparency designed to help employees of exporting Compact’s 2008 annual review and in the International and is a member of the companies to respond appropriately to a Global Compact for Development report Defence Against Corruption programme, variety of solicitations. Launched in 2009, in 2010 for its efforts to extend its corruption which is led by the organisation’s UK the RESIST initiative was spearheaded by prevention policy to its suppliers and chapter. the International Chamber of Commerce, subcontractors. Transparency International, the UN Global Initiatives by international Organisation for Economic Compact and the World Economic Forum. organisations Co-operation and Development The RESIST training toolkit complements United Nations Global Compact Thales collaborates with the OECD, companies’ existing compliance, anti- Thales has been a member and supporter particularly through the organisation’s bribery and corruption prevention of the United Nations Global Compact Business and Industry Advisory Committee programmes, and focuses on solicitations since 2003 and has adopted its 10 (BIAC), on issues relating to public from public officials and foreign customers. principles in the areas of human rights, procurement and the implementation of the RESIST provides 22 real-life scenarios from labour, the environment and anti-Corruption. OECD Anti-Bribery Convention. a range of business processes and proposes Each year, Thales voluntarily reports to the mechanisms for anticipating and coping Thales worked with the OECD to develop organisation on its progress (actions with solicitations from a business partner or the addendum to the convention, known as undertaken, performance indicators, etc.) public authority. Annex II (or Best Practices Guidance on and actively Internal Controls, Ethics and Compliance), The scenarios are based on the best promotes these aimed at helping companies, especially practices and experiences of multinational principles in its SMEs, establish measures for preventing companies, including Thales, and are sphere of influence. and detecting the bribery of foreign public divided into two categories: Thales is an active officials in their international business • solicitation in the context of the member of the UN transactions. It also includes guidelines for procurement process (7 scenarios), Global Compact international organisations and professional • solicitation in the context of the Working Group on associations that provide assistance to implementation process and daily the 10th Principle companies in these efforts. operations (15 scenarios). 1
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13 demonstrate the industry’s commitment to ethical business conduct and aim to help 15 companies to develop a competitive advantage over those that fail to apply the 17 same criteria of integrity to their business practices. 19
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25 Developed under Thales’s leadership , the 27 Global Principles currently address four issues: Members of the • zero tolerance for corruption, 29 • use of advisers, International • managing conflicts of interest, 31 • respecting proprietary information. Forum on Business International Forum on Business Ethical Ethical Conduct 33 Conduct (IFBEC) The AeroSpace and Defence Industries (IFBEC) Task Force 35 Association of Europe (ASD) and the Aerospace Industries Association of 37 America (AIA) • BAE Systems Plc. 39 Thales is committed to sharing its experience • BAE Systems, Inc. and best practices with industry partners to 41 develop sector-wide guidelines, To pursue the development of these • The Boeing Company recommendations and common standards principles and extend them to other • EADS 43 that help to establish a level playing field. countries, the ASD and AIA held the first • Finmeccanica International Forum on Business Ethical 45 Thales is a founding member of the ASD’s Conduct for the Aerospace and Defence • General Dynamics Business Ethics Task Force. In 2007, after Industry (IFBEC) in 2010 on order to • L-3 Communications 47 comparing the existing corporate encourage continuing dialogue between Corporation responsibility policies and procedures, the 49 industry players as well as with their • Lockheed Martin task force published a set of guidelines customers and civil society. Thales is a 51 known as the Common Industry Standards. founding member of the forum and co- Corporation These guidelines address broad matters chaired the first edition, which brought • Meggitt Plc. 53 of business integrity as well as issues together representatives of major global specific to the aerospace and defence • Northrop Grumman aerospace and defence companies and Corporation 55 sector. The document has been signed by national business associations as well as the ASD’s 30 member trade associations leaders of organisations including the • Raytheon Company 57 and by more than 400 companies in OECD, NATO, the US Air Force, the • Rolls-Royce Plc. Europe. In 2010, the task force was European Defence Agency and • Saab 59 upgraded to a permanent body called the Transparency International. Business Ethics Committee, which is • Safran 61 chaired by Thales and reports to the ASD At the initiative of 15 major European and • Thales Board. American aerospace and defence 63 companies, IFBEC created a formal All these companies are governance body and a permanent task members of the AeroSpace 65 force during its annual conference in and Defence Industries 67 Washington DC in October 2011. IFBEC Association of Europe (ASD) pursues two key objectives: to promote and foster the development of global, industry- and/or the Aerospace Industries 69 Following the establishment of the Common wide ethical standards for companies that Association of America (AIA). Industry Standards, the ASD and its US are active in the aerospace and defence 71
More information: counterpart, the AIA, teamed up to develop business sector, and to organise regular a set of worldwide standards. The two forums for industry and relevant stakeholders www.ifbec.info 2011 industry associations signed the Global to exchange information and best practices Principles of Business Ethics document in concerning ethical business challenges, report responsibility 2009. These non-binding principles practices and opportunities worldwide. corporate Corporate responsibility in an ecosystem with customers and suppliers
A comprehensive management processes, which are part A sub-module on ethical conduct has also of the Chorus 2.0 reference system and been incorporated into numerous other internal corruption are therefore accessible to all Group Thales University training programmes, prevention employees, now include specific corruption reflecting the Group’s determination to go risk qualification and reduction beyond compliance to make the principles programme mechanisms. of corporate responsibility an integral part of its core values. The new business model adopted by Ethical conduct is an important area of Thales in 2010 is designed to expand the focus in the Group’s employee awareness Through this comprehensive programme, Thales is continuing to establish its role as Group’s international footprint by and training programme. Regularly an ethical player and is making an active developing long-term partnerships in target updated “Behaviour Guides” are widely contribution to the virtuous circle of countries centred around Key Industrial available to employees and support the Partners (KIPs) and working together to sustainability as enshrined in the principles operational tools, policies and procedures of the UN Global Compact. strengthen the capabilities of local Thales applicable throughout the organisation. entities. Since 2000, Thales has organised a four- Thales is especially vigilant about hour live training programme on the corruption, which has been identified in prevention of corruption in international Thales’s global risk management system business. The programme is mainly as one of 18 major risks facing the designed for purchasers, marketing and company. sales professionals, bid managers and Particular attention is paid to operational project managers, and has been purchasing processes, which have been completed by 4,000 employees around revised to address supply chain risks the world since 2008. A total of 1,300 more effectively. Thales’s bid and project employees took part in 2011.
Active and passive corruption
The World Bank estimates that illegal funds derived means losing out on the business. In other cases, from corruption amount to between $1 trillion extortion schemes are so cleverly organised – kicking and $1.6 trillion a year, with bribery linked to public in after the contract is signed, for example, or buried procurement accounting for about $200 billion. within legitimate payments – that companies Despite the stringent enforcement mechanisms operating in places with weaker governance find imposed on companies in Western countries, and themselves forced to abandon a project halfway the strict sanctions applied by national authorities, through, or to waive payments owing to them with corruption remains endemic. There is a simple reason no recourse whatsoever. Rejecting solicitations for this: international conventions and regulations penalises companies twice over: not only do they lose out on a contract, they also lose their competitive cover
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Guidance for individual actions 15
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Thales’s ethical principles are based on individual responsibility: every employee must act fairly 19 and responsibly, and seek out advice from colleagues without hesitation when necessary. 21
Lobbying 23 Thales produced a Best practices guide to lobbying in May 2011, designed to provide employees in relevant job families – particularly marketing and sales, bid and project management, 25 services and support, purchasing, finance and communications – with information and 27 recommendations about lobbying activities. Thales defines lobbying as the provision of relevant information, in complete transparency, 29 to assist public officials in their decision-making processes. In practical terms, this means 31 making public officials aware of Thales’s technical expertise and credentials in ways that support the company’s growth and development. 33 This Best practices guide to lobbying is designed to enable employees to assess the risks associated with any lobbying activities that could involve side negotiations or closed-door 35 discussions, for example, and that could therefore be perceived as an attempt to exert 37 undue influence over decision-makers. The aim is to help employees to develop the right reflexes with respect to lobbying, make 39 them aware of the stakes involved, and help them to make the right choices in their day-to-day activities so that they can avoiding crossing the poorly defined line between legitimate promotion and influence 41 peddling or corruption. 43
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At the end of 2009, Thales published a Gifts and Hospitality Guidelines to provide 47 employees in all job families and countries with specific details about these questions. The guide is based on the same principles as the Code of Ethics and is intended as a practical 49 management tool that is applicable to all companies controlled by the Thales Group. The document includes decision support tools such as diagrams and checklists and 51 a description of the <4Rs rule> (Regulations, Reasonable, Responsible and Record) 53 that Thales applies to gifts and hospitality. Supplements to the guide cover national legislation, case law, tax requirements and 55 country-specific cultural considerations in various countries. Supplements were added 57 for the United Kingdom in 2009, Germany and France in 2010, and Spain, Hong Kong and Poland in 2011. 59
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Complying with export control regulations
A stringent These regulations take into account national range of severe sanctions such as sovereignty and security imperatives, as well prohibitively large fines, prison sentences framework as international arms control, disarmament for company directors, or even a temporary Thales manufactures systems and equipment and non-proliferation agreements. or permanent ban on imports or exports. for civil and military applications in In 2011, defence and security activities In addition, a significant proportion of democratic countries with strong governance accounted for more than half of Thales’s Thales’s products and solutions rely on and strict control of manufacturing processes revenues, and exports represented close items that are bought in from outside and technologies. to 40% of total sales. suppliers. The Group must therefore remain As signatories of international laws and constantly aware of the export constraints conventions regulating the production, sale, Many of the Group’s business activities on purchased items, particularly those from export, re-export and import of defence or are dependent on strict compliance with Japan, to ensure that the items are not “dual-use” components, equipment and export regulations in various countries. subject to the prohibition on use for military technologies, these countries impose strict Failure to comply could lead, at the very purposes, and the United States, where anti-Corruption and export control laws on least, to damaging delays in deliveries, the Group purchases well over €1 billion all companies, particularly those in the frequently accompanied by financial of goods that may be subject to extra- defence sector. penalties, and in the most serious cases a territorial export control regulations.
EU Common Position on arms exports
In late 2008, the members of the European Union • existence of a risk that the military technology adopted a common position on arms exports or equipment will be diverted within the buyer containing a set of criteria that member states agree country or re-exported under undesirable conditions, to apply when issuing export licences for military • compatibility of the exports of military technology or technology and equipment: equipment with the technical and economic capacity • respect for the international obligations of member of the recipient country. states, In France, the official list of defence and defence- • internal situation in the country of final destination, related equipment is set out in the Decree of 17 June • preservation of regional peace, security and stability, 2009. All EU member states have adopted equivalent • national security of member states, and of friendly legislation. and allied countries, • behaviour of the buyer country with regard to the international community, in particular its attitude to terrorism, 1
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For several decades, countries have passed export These ideas were partially incorporated into the 17 control legislation as a means to protect their national European Directive on intra-EU transfers of defence- security and help fight against the proliferation of related products, adopted in May 2009. The key 19
weapons of mass destruction. Many different control provisions of the Directive are as follows: 21 mechanisms co-exist, some of them multilateral, others • a general transfer licence authorising any company extra-territorial. With the globalisation of production resident in an EU member state to conduct transfers 23 and the emergence of new threats, there is a risk of specified defence-related products, 25 that such national laws will become less effective • a global transfer licence authorising an individual and less relevant. supplier to transfer defence-related products to 27 recipients in one or more other EU member states, There is thus a need to develop a new international • an individual transfer licence authorising a supplier 29 legal framework that takes into account the to conduct one transfer of specified products increasingly global dimension of companies’ 31 to one recipient in another EU member state, operations, while at the same time helping to combat • certification of recipients of transfers, issued 33 new threats such as asymmetric warfare – which for a limited period (three years), includes terrorism – and cybercrime. • a re-export control mechanism, 35 For a number of years, Thales has pressed the case for • a system of sanctions to ensure strict compliance 37 the modernisation of export control provisions, in with the new provisions. particular through the development of a “Certified 39 Enterprise” standard for companies that manufacture and sell sensitive goods, and the creation of a “general 41
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47 A rigorous internal 49 regime 51 Strict compliance with export control regimes is critical to Thales’s continued 53 success and the preservation of the Group’s corporate assets. In the light of its vital 55 importance for the Group, export control policy is defined at corporate level by the 57 Group’s Export Control Department, and deployed in all business units worldwide. 59
Alongside corruption, export control 61 violations have been identified in Thales’s comprehensive risk management system 63 as one of the major risks facing the company. 65 Thales has a Group-wide export control 67 compliance organisation that has been progressively developed over a number of 69 years. The corporate team coordinates a global network of 250 export control 71 officers, while entities in exporting countries maintain their own national export control 2011
organisations to provide expertise at local level. These local entities work closely with the corporate team to ensure consistent report responsibility implementation of Group policy and Guaranteed compliance with export control regulations. corporate Corporate responsibility in an ecosystem with customers and suppliers
Compliance is a key objective of all Thales business processes.
procedures. The Group has also appointed Thales compliance programme – enables A high level an in-house specialist in US export controls the Group to classify entities on the basis to provide Thales companies with practical of their level of risk (high, low or very low), of maturity and allocate resources accordingly. It also advice on interpreting the US regime. Thales advocates full transparency towards makes it possible to track compliance the regulatory authorities in the event of The Group’s Export Control Compliance measures and performance on a year-on- export controls being violated in spite of its Committee, made up of export control year basis. officers from major exporting entities, rigorous compliance programme. Although national representatives from thirteen Regular export control audits are carried this approach might be considered counter- countries, and key corporate stakeholders out by the Audit and Internal Control intuitive in view of the risk of fines and other from Purchasing, Internal Audit and Department to verify the existence and potential sanctions, it demonstrates a real Corporate Responsibility, meets every efficacy of appropriate control measures. determination on the part of Thales to quarter to review progress against the Where applicable, external audits are also improve its compliance performance and objectives of the Group’s compliance conducted to verify implementation of the learn from past experience. It is also an improvement programme, approve various internal procedures. approach that is strongly recommended by the US authorities, who have stated that proposals for further improvements, share Annual self-assessments, coupled with the voluntary self-disclosure, provided there are best practice and address any other issues results of internal audits, enhance the no aggravating circumstances, is likely to of common concern. visibility of the control measures deployed. mitigate any sanctions arising from Progress is tracked by export control officers Thales has developed an annual self- accidental export control breaches. None at both corporate and local level. assessment questionnaire to identify the of the 30 voluntary self-disclosures made to business units with the greatest potential the US authorities since January 2008 has exposure to the risk of breaching export so far resulted in a fine or other sanction controls. The questionnaire – part of the being imposed. 1
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13 Export compliance is now firmly embedded This detailed set of responses goes well e-learning module in Thales’s business processes, reflecting beyond export control in the strict sense 15 an increasing awareness of the benefits of the term, illustrating Thales’s commitment on US export controls of this integrated approach and a high to continuous process improvement. The 17 level of process maturity. Chorus 2.0 Group also submits an annual progress provides entities with regularly updated report to the UN Global Compact 19 information and documents, such as the describing the actions that have been An e-learning module on Standard of Export Compliance, which is implemented to improve compliance with compliance with US export 21 based on ten areas of best practice and the Global Compact’s principles in the controls – ITAR regulations sets out mandatory behaviours required of areas of human rights, labour, the 23 Thales employees worldwide. Guides to environment and the fight against for defence equipment, EAR the regulations applicable in key countries corruption. for dual-use goods, and 25 of operation are also available, while customs procedures – specific documents on 32 “sensitive” has been available to all 27 countries list all the constraints, embargoes employees worldwide since and export restrictions involved and 29 include a set of quality-of-life indicators 2009. Participants who achieve encompassing human rights, level of a pass score in the quiz at the 31 development, financial reliability, etc. end of the module can print 33 out a certificate as evidence that the training has been 35 successfully completed. 37
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45 Thales manufactures, purchases and sells civil, military Defence equipment exports are subject to a two-stage and “dual-use” components, systems and equipment. approval process: 47 Exports of goods in these categories are subject to • All negotiations, sales, orders and contract signings specific rules: civil goods are covered by customs require the prior approval of the Secretary General for 49 regulations, while defence equipment, sensitive National Defence acting on behalf of the Prime 51 technologies and dual-use goods have to comply Minister. with export controls. • Actual equipment exports are only authorised once 53 The legislative and regulatory framework in France a defence equipment export licence (AEMG) has 55 is based on the principle that all exports of defence been granted by the Director-General of Customs. equipment are prohibited without a special licence. As in other European Union member states, an EU 57 The Prime Minister, advised by the interministerial regulation provides the legal basis for exports of commission on defence exports (CIEEMG), is dual-use goods, which are not prohibited in principle 59
responsible for the approval of export licences. but are subject to controls and generally require a 61 CIEEMG is a joint commission of the ministries licence. of foreign affairs, defence and industry, The list of dual-use goods and technologies subject 63 and is chaired by the Secretary General to controls is regularly updated to take into account 65 for National Defence. evolving technologies and their availability on the The joint commission issues directives, which are international market. 67 approved by the political authorities and cover specific topics such as embargoes, conflict zones or human 69 rights violations as well as more general issues. 71
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Extending ethics to the supply chain
Thales develops and manufactures specifically to products, bids or projects, integrated solutions comprising Training and or to “purchasing families” such as IT and subassemblies, subsystems or complete telecoms, power generation and systems, many of which are purchased awareness conversion, etc. In the latter case, As a result, from external suppliers. identifying the most appropriate suppliers suppliers make an active contribution to and partners is a key task for purchasers. Thales’s added value and customer Product, bid and project purchasers are satisfaction. As part of its efforts to forge In 2011, Thales strengthened required to act as purchasing project equitable, long-term relationships with the ethical and environmental suppliers, the Group has put in place a components of the Passport managers, challenging requirements and series of measures aimed at promoting training programme in defining purchasing strategies with specifiers and purchasing family specialists. responsible practices and behaviours Purchasing delivered by Thales throughout the supply chain. University. Purchase Contract During the supplier assessment and Management training covers selection process – integrated into Chorus all aspects of corporate 2.0 – Thales not only takes into account Responsible the quality and “ownership cost” of responsibility, and a dedicated purchasing proposals, but also reviews each supplier’s Purchasing portal on the corporate responsibility policy. As a The Group spends the equivalent of around company intranet keeps signatory to the United Nations Global 50% of its revenues on purchasing and employees abreast of the latest Compact, the world’s largest corporate therefore needs to deploy rigorously issues, developments and responsibility initiative, the Group requires managed purchasing processes. procedures that concern its suppliers to adhere to the principles of In 2011, the Group restructured its the purchasing function. corporate citizenship in respect of the purchasing function in order to boost following areas: supply chain productivity and control • labour standards, purchasing costs in bids and projects, • corporate governance, reduce non-quality costs and make • the environment, purchasing generally more responsible, The Group’s 1,300 purchasing staff • business ethics, efficient and effective. around the world are now assigned • export controls.
Responsibility in action
Alain Monjaux, Almost 1,500 suppliers have charter. If they don’t, they won’t Director, Corporate already signed the Purchasing and be able to work with us. purchaining - Supplier Corporate Responsibility Charter, We believe that sharing relationship and the process will be taken our commitment managment a stage further in 2012 with to ethics and corporate the integration of the selection responsibility will have a “ Our suppliers are process for new suppliers beneficial effect on our suppliers’ increasingly engaged into our Chorus 2.0 global own supply chains, helping with the ethics and corporate reference system. to create a virtuous circle responsibility principles that are In order to qualify, new suppliers that boosts corporate social so central to Thales’s strategy. will be required to sign up to the responsibility across the board. ” 1
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All suppliers are required to sign Thales’s 25 Purchasing and Corporate Responsibility Charter and answer a detailed 27 questionnaire. The questionnaire is designed to assess suppliers’ commitment 29 and performance in key areas of corporate 31 responsibility, and helps identify related risks. It also aims to help suppliers align 33 their policies and internal processes with the set of principles that Thales has 35 adopted. 37 39
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Compact By the end of 2011, almost 1,500 Thales On this basis, Thales’s suppliers achieve 47 suppliers had signed up to the Charter and an overall score of 9.2 out of 10 for their completed the assessment questionnaire. environmental, social and governance 49 The United This figure represents 49% of the target. (ESG) performance. Nations Global 51 Compact has recognised 53 Suppliers’ ESG performance Thales’s 55 Purchasing and Corporate 9,7 57 10 9,4 Responsibility Charter for 8,7 59 suppliers and subcontractors 8,1 8 7,5 for its positive contribution 61 to the achievement of the 6 Millennium Development 63
Goals. 65 The Charter requires Thales’s 4 suppliers to subscribe to 67 the Group’s corporate 2 responsibility policy and 69 0 adhere to the principles 71 Labour Environment Corporate Business Export of its Code of Ethics and those of the Global Compact and standards Governance Ethics Control
1,476 suppliers have signed the Purchasing and Corporate Responsibility Charter 2011 the OECD. and completed the questionnaire. Average supplier performance is 9.2 out of 10. report responsibility
corporate Corporate responsibility in an ecosystem with customers and suppliers
A separate questionnaire relating to the SMEs: a vital link environment is now also part of the Supplier Online procurement process. The questionnaire is in the supply chain designed to measure the maturity of In France, some 3,000 small and medium- suppliers’ environmental management The Group selects its suppliers sized enterprises (SMEs) account for more practices, and encourage them to embark according to clear and than one-third of all Group purchasing. As on a continuous improvement process. transparent procedures. part of its efforts to forge equitable, lasting Purchasing managers take environmental All suppliers can access relationships with SMEs around the world, factors into account in supplier selection information – including the Group is developing a special policy processes. Completed self-assessments are for SMEs, designed to encourage checked during supplier audits, which may the Thales purchasing policy, innovation, foster growth and boost lead to mandatory improvement plans or supplier selection process, performance. even supplier disqualification in the event technical data and details of failure to comply with Thales criteria. of requests for proposals – In 2006, Thales was among the first companies in France to sign the Pacte PME Thales has set a target of assessing the on its Supplier Online web (SME Pact), which aims to promote maturity of the environmental management portal. synergies between innovative SMEs and systems of at least 500 of its main suppliers major customers. By signing the pact, major by the end of 2012. industrial firms undertake to direct a certain percentage of their purchasing spend to SMEs, thereby fostering innovation and helping today’s best SMEs to grow into the “mid-cap” companies they believe the French economy needs. In 2011, Thales also approved the Pacte Export, which it had previously helped to develop as part of Pacte PME International, an initiative set up to enable major groups to provide support for SMEs at international level. An initial support plan received the approval of the relevant departments of the French Ministry for the Economy, Finance and Industry in 2011. Thales is one of about twenty large companies that signed a charter in 2010 to define best practice in their relationships with SMEs, setting out ten key principles for responsible purchasing. The charter aims to help create balanced customer-supplier relationships based on mutual trust and recognition of respective rights and responsibilities. By signing up to the charter, Thales agrees to work towards the following goals: • create lasting relationships with SMEs, • facilitate cooperation with strategic suppliers, • consider the total cost of a purchase (including logistics costs, resupply risks, and image/quality issues), and not merely the apparent price, when selecting a supplier, • take environmental factors into account, • consider the company’s roles and responsibilities in the regional economy, • ensure that purchasers are fair, ethical, objective and professional.
Thales is taking steps to develop equitable, lasting relationships with SMEs around the world. 1
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13 In accordance with the charter, Thales has It is in Thales’s interest to ensure that SME appointed an SME liaison officer to act as partners remain financially healthy, retain 15 an internal mediator in the event of disputes their capacity for innovation and pursue referred by suppliers. their corporate development. In France, for 17 instance, Thales supports innovative The Group’s support for SMEs is also intended suppliers by providing them with information to drive innovation. Thales has long-standing 19 on government aid (such as financial relationships with a number of innovative support, tax credits, etc.) and helping them 21 SMEs, many of which are considered with the associated application procedures. strategic partners, with expertise that is Thales has also formed a partnership with 23 deemed critical to the firm’s value proposition. OSEO, a French government agency that The Group is also engaged in an ongoing provides assistance and financial support 25 effort to identify further SMEs with the potential to small businesses. Under this arrangement, to offer new products and services. France’s SMEs in the aerospace sector can receive 27 high-tech clusters, for example, offer excellent loans to fund R&D work, with OSEO opportunities for the Group to develop advancing 40% of the total and Thales 29 partnerships with innovative suppliers. Thales providing the remaining 60%. is actively involved in several of these 31 regional, national and international clusters, including: 33 • Aerospace Valley • ASTech Paris 35 • Cap Digital Paris • Mer PACA and Mer Bretagne 37 • Pegase • System@tic Paris 39 41
43 Positive feedback from national ombudsman 45 Jean-Claude Volot, France’s national mediator for inter-company relations 47 and subcontracting, visited Thales on 18 March 2011. At the end of his visit, he stressed that Thales was the only group so far to 49 have included a clause in its general purchasing terms and conditions specifying that disputes will be referred to mediation before legal 51 proceedings are initiated. 53 This positive feedback encourages Thales to continue to work even more closely with suppliers as part of a sustainable ecosystem. 55
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corporate ISSUE UMBER THREE Transparency and dialogue with investors
Thales is committed to providing all shareholders with full, clear information on a regular basis. The Group maintains constant contact with the financial community to provide a clearer understanding of the Thales corporate strategy, financial policy, and environmental, social and governance priorities. Transparency and dialogue with investors
Capital and corporate governance
Thales applies all the recommendations of Thales shareholders (at 31 December 2011) the AFEP-MEDEF code of corporate governance, with the exception of the following: • The proportion of independent directors Shareholder structure on the Board of Directors (at least one-third is recommended for companies with controlling shareholders) and on the Public sector Dassault Aviation 27.08% 25.96% various governance committees, because of the shareholders’ agreement between Treasury shares the public sector (TSA and Sofivision, 1.75% Individual which are wholly owned by the French and institutional State) and the industrial partner (Dassault shareholders Employees Aviation), and the strict criteria of 42.07% 3.14% independence that have been adopted by the company. The Thales Board of Directors currently includes three independent directors (19% of the Board). Voting rights • Directors’ terms of office (six years), which is longer than the maximum term Individual recommended by the AFEP-MEDEF code. and institutional shareholders Given the length of its business cycles, 33.23% Thales considers that the recommended Public sector term of four years is too short, and that the 41.73% existing arrangement, under which one- third of its directors are replaced every two years, is preferable to any reduction in the Employees Dassault Aviation 4.64% 20.4% statutory terms of office of Thales directors. As laid down in the Board’s internal rules, the statutory auditors receive the same Detailed information about the Thales’s ownership structure is published every year in the annual report (Registration Document), which can be downloaded from information as the directors and are invited www.thalesgroup.com/Group/Investors. to attend Board meetings. Five directors reach their term limits in 2012. Three of the directors appointed to replace them will be women, making a total of four women on the Board of Directors. With this Board of Directors major shareholders are committed to decision, the Group will be ahead of the appointing directors whose experience is timeline recommended by the AFEP-MEDEF The Thales Board of Directors is made up of both diverse and relevant to the Group’s code and French legislation with respect to 16 directors, of whom 14 are appointed business. gender balance on the boards of directors and supervisory committees of listed by the annual general meeting and two are The Board of Directors has set up three companies and public enterprises. elected by the employees of the Group’s committees that meet regularly to review French companies. Three of the four outside specific topics: an Audit & Accounts The Board of Directors met 10 times in directors have been declared independent Committee, an Appointments & 2011. The average director attendance directors as defined by the AFEP-MEDEF Remuneration Committee and a Strategy rate was higher than 90%. code of corporate governance. Thales’s Committee. 1
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Employee share 25 ownership: an A representative of employee shareholders 27 integral part of is a member of the Thales Board of Directors. corporate governance 29 Since privatisation in 1998, Thales has 31 proposed several share purchase offers (in 1998, 2000, 2002, 2004 and 2008) 33 to its employees. A further share purchase offer was organised in June 2011. 35
As of 31 December 2011, employees 37 owned 3.14% of the company’s share Long before it became a legal requirement, capital. Thales was one of the few major companies 39 in France to have a representative of Employee share ownership is primarily employee shareholders on its Board of 41 structured through company investment funds Directors. managed by a joint supervisory board. The 43 supervisory board includes members elected Several shareholder associations have by employees as well as representatives of been formed to help promote employee 45 Thales management. Employee shareholders share ownership in 17 Thales countries are represented on the Thales Board of throughout Europe, North America and 47 Directors by a director nominated by the joint Asia-Pacific. The employee shareholder supervisory board for election by the annual associations are members of FAST 49 general meeting of shareholders. This director (Federation of Associations of Staff is also a member of the Strategy Committee Shareholders of Thales). 51 of the Thales Board of Directors. 53
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Industrial Representative 61 Public sector Elected by partner External directors of employee (French State) employees 63 (Dassault Aviation) shareholders 65 Luc Vigneron, Chairman & Chief Charles Edelstenne Yannick d’Escatha Philippe Lépinay Dominique Floch 67 Executive Officer
Olivier Bourges Loïk Segalen Roger Freeman Martine Saunier 69
Didier Lombard Amaury de Sèze Stève Gentili 71
Bruno Parent Éric Trappier Pierre Mutz 2011 TSA, represented by
Bernard Rétat report responsibility
corporate Transparency and dialogue with investors
Regular exchanges with the financial and extra-financial communities
Investors and financial analysts are and institutional investors, particularly increasingly taking non-financial factors when it publishes its quarterly, half-yearly into account in the valuation of a company. and annual financial statements, or Ethical factors and environmental, social conducts major financial or strategic and governance (ESG) issues are now operations, to provide them with insight taken into consideration to identify and into Thales’s business activities and analyse risks that could potentially impact strategy. Additionally, comprehensive a company and its financial performance. financial information is published on the Thales corporate website at This also makes it possible for investors to www.thalesgroup.com. choose companies whose practices are compatible with their own values, and to avoid investing in sectors of activity or individual companies that are known to have violated international conventions on human rights, environmental protection, etc. Over the last ten years, it has become increasingly common in Northern Europe Responsibility in action and France for investors to take extra- financial factors into consideration in their investment decisions, and the trend is now more and more widespread, particularly Guillaume Simonnet, in English-speaking countries. Head of Treasury & Trade Finance, Thales regularly organises one-on-one Thales UK meetings with investors as well as Corporate Responsibility Investor Days, “The financial crisis has forced most banks and takes part in specialised conferences to drastically reduce their balance sheets. organised by brokers, to provide members of the socially responsible investor (SRI) In addition, as new European and international regulations have community with details about its corporate come into force – the best known being Basel III – banks’ capital responsibility policy, including requirements have increased substantially. environmental, social and governance As a result, banks have become much more conservative with issues, business ethics, corruption respect to underlying risks in trade finance operations. They have prevention and export control. also adopted much more realistic pricing, thereby pushing up These meetings complement the Group’s costs to customers. This means we need a broader base of financial programme of financial communication partners, particularly for major export contracts. To meet our and are designed to help investors and trade finance needs today, we have to call on new players, analysts better understand Thales’s ethics and corporate responsibility policy, how many of whom are very sensitive to the reputational risks it is implemented within the organisation underlying defence contracts. We can secure their support more and the impact it is having on Thales’s effectively if we can demonstrate rigorous business practices competitive performance and value and show them the proactive measures we are taking to promote creation potential. ethical conduct across our sector of industry.” More broadly, Thales is engaged in an ongoing dialogue with financial analysts 1
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The Thales internal control process is Strict compliance with all applicable laws, • remind staff of the broad range of legal 25 designed to provide reasonable assurances regulations or international treaties is risks and the need to manage them, that the Group’s objectives will be critical to Thales’s ability to conduct its • monitor compliance efforts and 27 achieved, by demonstrating: business today and in the future. consolidate reports on risks and any • the effectiveness and efficiency of the instances of non-compliance that may 29 internal processes in place, Compliance risk is covered by the overall be detected, • the ability of the internal accounting and Thales risk management system, as non- • oversee action plans. 31 financial controls in place to ensure the compliance with regulations could expose All Thales employee are required to act in reliability of information distributed and Thales and its officers to large fines, 33 strict accordance with applicable laws used internally for management and criminal or civil sanctions, sales and legal and are therefore individually responsible monitoring purposes, to the extent that this restrictions and reputational damage. 35 for ensuring compliance. An e-learning information contributes to accounting and The Chief Executives of Thales subsidiaries programme for non-legal experts is financial disclosures, 37 available throughout the Group, outlining • compliance with regulatory requirements are responsible for defining, implementing the main legal risks and how to avoid 39 (legal compliance). and maintaining a satisfactory risk management and internal control system them. While the internal control system contributes that encompasses the prevention of legal 41 to the achievement of the Group’s non-compliance. objectives, it does not provide an absolute 43 guarantee because of the limitations To help them cope with the complex and inherent in any internal control system, constantly evolving legal and regulatory 45 whereby a certain level of risk may be framework, Thales has appointed a accepted on the basis of a systematic Compliance Officer in each entity. The 47 cost/benefit analysis, and because of main roles of the Group’s 150 Compliance external uncertainties. Officers are as follows: 49
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Environmental Social Governance 57 Proactive policy Leadership in transnational Rigorous governance 59 HR policy and transparency standards 61 A comprehensive approach to Pioneering Europe-wide labour Government commissioner environmental risk management agreements to promote professional and external auditors attend 63 deployed at three levels: business line, development and more transparent Board meetings. process and product design. employee relations. 65
67 Participation in research and Constant dialogue and constructive Proactive risk assessment and development programmes to support relationships with employee deployment of an appropriate internal 69 environmental monitoring and representatives. control and compliance programme. management and clean technologies. 71
Thales is included in the ASPI Eurozone® (Advanced Sustainable Performance Indices) index. This index 2011 is composed of the 120 listed Eurozone companies that perform best in social and environmental terms. The stocks are selected on the basis of analyses by Vigeo, a French corporate responsibility rating agency. report responsibility
corporate ISSUE UMBER FOUR Commitments to social responsibility
The Group’s human resources and employee relations policy embodies a long-term commitment to social responsibility. With its recognised technological expertise, growing international footprint, rich array of skills and a track record of innovation and success, Thales is in a strong position to meet the challenges of a rapidly changing world. Recruiting and retaining the best talent is vital to sustaining this leadership, and constantly developing employees’ skills and capabilities is a core management commitment at every level of the organisation. Commitments to social responsibility
Responsible social policy
Thales’s commitment to the principles of measures and for European and country Towards recognition social responsibility underpins the Group’s reports on gender equality. approach to human resource management as a top employer These new resources, together with the and business conduct. stipulation that HR directors of each country The breakdown of our 66,979 employees The Group’s social policy complies with must validate all data submitted, have by geographic area and occupational the principles set forth in the Thales Code significantly improved the reliability of the category illustrates the fundamental of Ethics: information provided by local entities. premises that steer the Group’s human • Each employee is treated with fairness resources policy: The annual Social Report, which is and respect, and diversity is encouraged. • an expanding global footprint, with published on the corporate website • Gender equality is a priority and targeted 32,261 employees, or 48% of the total (www.thalesgroup.com/Group/Careerswww.thalesgroup.com/Group/Careers measures are in place to promote it. workforce, based outside France at end- or sustainability.thalesgroup.comsustainability.thalesgroup.com), is a • Thales is committed to providing and 2011, more comprehensive report than the maintaining a safe and healthy working • a highly skilled workforce, with 73% present document, providing detailed environment for all employees. employed either as engineers, experts descriptions of all the new measures • Open dialogue with employees and or managers, introduced by Thales in the area of their representatives is a critical • a significant proportion of women (22%) employee relations. Social reporting now component of the overall business in the global workforce, includes figures and gender breakdowns success of the Group. • a preponderance of full-time positions for all countries. For each indicator, the (94%) and permanent positions (98%). Thales joined the United Nations Global percentage of employees covered is also Compact in 2003 and adopted its ten provided. principles, in particular those related of human rights and labour practices which are based on the Universal Declaration of Human Rights and the International Labour Organization’s Declaration on Fundamental Principles and Rights at Work. These principles are implemented through a series of agreements and best practice guidelines to ensure that our business activities are conducted in a responsible way. Loïc Mahé, SVP Human Resources & Communication, with the HR Legal/Ethics team in charge of social reporting. Data on employment, working conditions, labour agreements, labour practices and human rights is provided by the human resources departments in each country. The Group introduced a new human resources reporting tool in 2011 called e-Social Responsibility Reporting, enabling HR directors in each country to provide data on the basis of a standard set of qualitative and quantitative indicators. These indicators are based largely on the recommendations of the Global Reporting Initiative (GRI) but also on indicators negotiated with management and employee representatives at national and European levels, which require highly specific data input. This modern reporting tool also makes it possible to gather information required as part of human resources risk prevention 1
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23 With its recognised technological 25 expertise, growing international footprint, rich array of skills and long track record 27 of innovation and success in all areas of business, Thales is in a strong position to 29 meet the challenges of a rapidly changing world. 31 Thales recognises that recruiting and 33 retaining the best talent is vital to sustaining its world leadership. By adjusting 35 employment policy to a changing labour market – and despite the slowdown in 37 certain segments – the Group hired 5,342 new employees in 2011. 39 The Key Skills Management system implemented worldwide for all fifteen job 41 families ensures that employee skills are 43 closely aligned with the needs of the business. This system enables Thales to 45 deliver a precise response to any technical issues arising on programmes or to deploy 47 new teams in order to secure bids and projects. By the same token, this approach 49 makes it possible to support employees in their day-to-day activities and in their long- 51 term career and skills development plans. A total of 20,000 employees have already 53 listed their skills in the Key Skills Management system. 55
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report responsibility
corporate Commitments to social responsibility
Constructive dialogue to achieve shared goals
Thales has always maintained constructive of all employees. Over 80% of Thales Sustained training for dialogue with employee representatives in employees around the world are currently a spirit of trust and openness. covered by a collective agreement, employee fulfilment including the Europe-wide agreements Three pioneering European agreements, Thales believes that professional fulfilment affecting around 54,000 employees in 11 detailed above. comes from constantly maintaining and European countries, are particularly improving the skills of each of its noteworthy: employees. • In 1993, a European Works Council Anticipating changes was established by an agreement. To ensure that all employees achieve their Representatives from Thales’s 11 main in job families full potential, in 1988 the Group founded Thales University, which has since become countries of operation in Europe sit on The IDEA agreement established an the cornerstone of company training the Council, whose responsibilities have annual forward-planning process to policy. been progressively extended by identify trends in employment and job additional clauses incorporated in requirements. Management and employee Today, Thales University operates in nine 2002 and 2007. representatives sit on national and countries: Australia, France, Germany, • IDEA: (Improving professional European Anticipation Committees to Italy, the Netherlands, Singapore, the Development through Effective review evolving needs and appropriate United Arab Emirates, the United Kingdom Anticipation), signed in 2009, is responses in each country. and the United States. Its principal role considered to be a particularly is to support the professional development innovative agreement. It was the first The IDEA agreement specifies the measures of Thales employees in each country, Europe-wide agreement based on to be taken at national level and is based while building a shared corporate culture sharing existing best practices, and on the following framework: to strengthen engagement with the encompasses all the Group’s countries • Each year, a presentation of overall Group’s core values. Each year, Thales of operation in Europe. In addition to trends in each job family, as well as University updates its core training establishing broad principles, IDEA sets the challenges facing the company as programmes in line with the Group’s out specific goals for improving a whole, is made to employee changing operational requirements and professional development and includes representative bodies in each country. a set of thirty corresponding measures. employees’expectations. • Prior to the annual Professional Development Discussions, employees The Europe-wide IDEA agreement includes and managers receive relevant a significant training component: information regarding changes in their • All countries are required to ensure that • TALK: (Transparent annual Activity job family. collective training plans take into discussion for mutual Listening and • Collective action plans are established account forward-looking analyses of developing professional Knowledge) is for each entity, taking into account the technological developments and a Europe-wide agreement that needs and specific features of the innovations, as well as employment establishes a clear framework and company, along with trends in each job trends and the needs of employees and practical guidelines to ensure that all family. the company. Annual Activity Discussions are • A network of training advisors has been To support implementation of these conducted according to the highest developed throughout Europe, with European agreements and promote social standards of openness, mutual respect each employee assigned a personal and understanding. dialogue through an effective Europe-wide advisor. network of employee representatives, • Each employee has access to a relevant Transparent annual Activity discussion for mutual Thales held a number of major transnational Listening and developing training programme at least once every professional Knowledge events in 2009, 2010 and 2011. These Entretien annuel d’activité transparent pour l’écoute mutuelle et le développement des savoir-faire professionnels three years. were attended by over 100 employee Constructive dialogue is an integral part of representatives, Thales managers and HR In 2011, 45,710 employees (74% of Thales’s social policy, which seeks above managers from all of the European women and 72% of men in the company) all to promote the professional development countries covered by the agreement. completed at least one training programme. 1
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become standard practice for all Thales Professional 51 employees in Europe thanks to the IDEA development agreement. In 2011, annual discussions 53 were conducted for more than 86% of all Developing our people is one of Thales’s staff in Europe and for 82% of employees 55 core values. The Group is committed to worldwide. maintaining employee motivation through 57 open and honest dialogue, and enabling Annual Professional Development Discussions are a key stage in the process each member of the workforce to build a 59 career path in line with their aspirations. of professional development. They give employees the opportunity to: 61 Thales believes that each of its employees, • review career progress in their current at every level of responsibility and in every job, 63 job family, is entitled to a fulfilling career. • evaluate career options, Professionals, experts and managers are • identify the skills that they have acquired 65 recognised equally by Thales, and or need to develop, employees can access the highest levels • clarify career aspirations, 67 of responsibility no matter which path they • consider the best ways to achieve them choose to take. (training, practical experience). 69
Thales’s global HR policy is based on the 71 principle that individual employees are responsible for driving their own 2011 professional development. As part of this policy, the Professional report responsibility Development Discussion (PDD) has now corporate Commitments to social responsibility
Promoting well-being, safety and quality of life for all Thales employees
One of Thales’s highest priorities is to risks, which involves defining H&S policy has been applied for all assignments in provide a safe and healthy workplace by in each country in line with local legislation Japan since the earthquake in March implementing statutory provisions, and regulations. The Operations and 2011. It ensures that employees are monitoring procedures, preventing health Environment department focuses more on aware of any health issues regarding their risks and occupational hazards and environmental health and safety issues with assigned location so that they can play a providing personnel training. A number of regard to specific installations and more active role in risk prevention. new measures were introduced in 2011 activities. The agreement on quality of life in the to support these efforts. Thales has also appointed a Risk Sponsor workplace signed on 2 July 2009 sets out The Group’s Human Resources and to oversee the prevention of human a general framework for Group-wide Operations and Environment Departments damages risks. This involves closely health and safety policy and establishes work together to address a broad spectrum monitoring and reporting on any risks a system for identifying and preventing of health and safety issues. Workplace risk liable to affect Thales employees around workplace hazards and risks. Workplace prevention policy has been revised and a the world, including discrimination, moral H&S experts play a central role in the new organisation has been put in place or sexual harassment, health hazards, system, which focuses on risk prevention. in all countries over the last two years. workplace risks and psychosocial risks. In particular, the agreement seeks to minimise psychosocial risks through Human Resources is now responsible for Formal procedures are in place for collective action and increased vigilance managing health and safety (H&S) related anticipating and managing major health with respect to the well-being of individual risks at the national and/or international employees. A central Quality of Life level. committee oversees and supports all of A Health Monitoring Unit was set up in these measures. 2011 to monitor health risks at national On 23 September 2011, a Quality of Life and international levels. On the basis of at Work Convention drew a large part of information provided by the Thales medical the occupational health stakeholders, advisor and medical coordination team, social partners and Group HR Manager. Human Resources liaises with the health and safety unit to determine whether a situation warrants the deployment of a crisis management unit or specific procedures for employees on assignment overseas. In addition, specific procedures are in place for managing missions in countries with major health risks. These include issuing a preliminary statement prior to travel, providing health and safety instructions and guidelines, and, in certain cases, cancelling assignments when risks are deemed to be too high. This procedure
Providing a safe and healthy workplace for employees is one of Thales’s top priorities. 1
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27 In a high-tech company with engineers In 2011, substantive efforts were made to making up the majority of the workforce, ensure gender-balanced recruitment, 29 gender diversity represents a significant especially in technical and scientific job challenge. Thales is rising to this challenge families. In France and the Netherlands, the 31 through constructive social dialogue and Group has organised schools outreach and a strong commitment to specific objectives communication programmes to encourage 33 aimed at promoting more active girls to study science and technology. involvement by women in the company’s Measures are also being taken to ensure 35 development. that the percentage of women hired by Thales companies matches the percentage 37 Figures from the end of 2011 show that of women graduating from target business 39 the Group is making headway in this and engineering schools. In Spain, a area. Women today account for 22% of business plan has been developed 41 the global workforce (22% in Europe and specifically to address equality issues in the 23% in France). Efforts to increase the workplace, with women now accounting for 43 number of women in the workforce led to 42% of new hires, compared with 36% in the recruitment of 1,367 women (26% of the United States, 35% in Singapore, 28% 45 new hires) worldwide in 2011 (26% in in Germany and 27% in France. Europe, up from 25% in 2010). Several country operations have taken 47 Most of the women who work at Thales concrete steps to ensure equal pay for 49 occupy qualified full-time jobs, with 97% men and women. In France, a specific on permanent contracts and 58% budget equivalent to 0.1% of total payroll A strong commitment to specific 51 employed as engineers, experts or has been set aside since 2006 to rectify equality objectives. managers. unwarranted discrepancies in remuneration 53 A company-wide agreement signed with between men and women. In 2011, all trade union organisations in 2004 set 1,221 women benefited from the policy French Parenthood Charter on 20 55 out the principles and methods for promoting and were awarded an average individual November 2008, alongside 37 other gender equality. Since then, individual legal pay increase of 2.33% to close the gap 57 companies and organisations, Thales entities in France have negotiated about in salaries with their male counterparts. reasserted its determination to help 20 three-year action plans. With regard to career development, 59 employees improve their work-life balance. annual People Reviews in France also pay The Europe-wide IDEA agreement Further reflecting this commitment, Thales 61 particular attention to equal opportunities (Improving professional Development signed an agreement with Crèche Attitude for women. In France, innovative coaching through Effective Anticipation), signed by in 2006 enabling French companies to 63 and co-development initiatives have been Thales with the European Metalworkers reserve places for their employees at inter- launched with Thales University to Federation (EMF) in 2009, includes a raft 65 encourage the promotion of women within company childcare facilities. The of measures for promoting gender equality the company. In a further effort to improve agreement was renewed in 2010. Over in the workplace. These include a 67 the gender balance, several Thales 120 children of employees at about a commitment from each country that signed companies in France have signed up to dozen Group companies in France the agreement to produce an annual report 69 the Women’s Initiative Network (WIN), currently attend one of the ten or so assessing gender equality against a which provides a dedicated forum for nurseries involved, which are all located 71 number of key indicators and to initiate close to their parents’ places of work.
female employees to share their improvement actions if necessary. The experiences and voice their opinions. Additional childcare places are expected IDEA agreement includes a number of 2011
to become available in 2012. commitments on equal opportunities in Helping employees to achieve a healthy areas including recruitment, career work-life balance is another key objective In Germany, the Baby 1st and Homecare report responsibility development and work-life balance. for the Group in Europe. By signing the programmes help employees strike a better corporate Commitments to social responsibility
work-life balance, while in France and Thales takes the challenge of gender Spain some Group companies contribute equality very seriously and is committed to childcare costs incurred when employees for the long term. Concrete measures are required to stay away from home to stemming from the European IDEA attend training courses. The aim is to agreement (outlined above) are being encourage more women to take part in actively pursued. In France, the Group has training programmes. initiated fresh negotiations with employee representatives to improve on current Training courses for managers, especially initiatives and develop new measures to in Europe, encourage participants to help support recruitment and career prospects their teams achieve an optimum balance for women. between work and their personal lives.
Diversity and non-discrimination
As an international group, Thales remains have taken the principle of non- Thales is involved at every stage of the committed to its multicultural workforce discrimination one step further and made education process to help students with because it considers that cultural diversity provisions for mandatory employment disabilities overcome learning hurdles is a source of creativity, strength and quotas for people with disabilities. and achieve their career goals. The innovation and a critical factor in its long- Employers who fail to comply with quotas company has established partnerships term success. face financial penalties. Other countries, with primary and secondary schools to such as Portugal, take a different approach coordinate career guidance initiatives, and offer financial incentives for hiring organises company visits, mentoring Promoting the people with disabilities. programmes and conferences, and employment of Several Thales companies go beyond the provides technical support. Thales has legal requirements of their respective also partnered with vocational training people with countries and actively promote employment schools, universities, business and opportunities for disabled people. engineering schools to help disabled disabilities students succeed in their studies. In France, Thales has long championed In all countries of operation, Thales the cause of disabled people in the In 2009, under the impetus of Thales, the companies are required to comply with workplace, signing a company-wide AFNOR standards committee drew up a local legislation, regulations and guidelines agreement in 1992 to increase job draft standard (published in August 2010) on equal employment opportunities for opportunities and support their career aimed at raising the profile of initiatives people with disabilities. development. This policy has been taken by companies committed to Some countries (United States, United consistently maintained and led to the encouraging the employment of disabled Kingdom, Netherlands) explicitly prohibit signing of a Group-wide agreement on people and providing guidance to all forms of discrimination, while others 13 November 2004, which was renewed organisations that wish to adopt such (China, Germany, Austria, Spain, Italy) for the period 2008-11. measures. 1
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13 on anticipating employment requirements, the European IDEA agreement and the 15 agreement on quality of life in the workplace) include numerous provisions 17 to support the employment of the over-50s. Thales took these efforts one step further 19 through a Group-wide agreement, signed 21 on 18 December 2009 for the 2010- 2012 period, covering the employment 23 of the over-50s in Thales companies. Cultural diversity is a source of creativity In addition to prohibiting discrimination 25 and innovation. based on age, the agreement provides guidelines for anticipating career changes, 27 developing the skills of older employees, improving working conditions and taking 29 individual situations into account with 31 The number of people with disabilities • Guideo is an audio guidance system respect to employees in physically demanding jobs and those who may be employed by Thales has risen steadily enabling the visually impaired to use a 33 since the first agreement was signed. smartphone to find their way around unable to adapt to new practices. Under Between December 2010 and December buildings without assistance. The solution the agreement, Thales provides support 35 2011, the proportion of employees with will be available at Thales’s new facilities for end-of-career planning and the disabilities rose from 4.86% to 5.1%. The in Gennevilliers in 2012 as well as the transition from employment to retirement. 37 goal is to achieve 6%. ESSEC business school in Cergy. Under the terms of the agreement, the • A smart wheelchair guidance system 39 Also in 2011, partnerships were sealed Group undertook to raise the number of using artificial intelligence technologies employees over the age of 55 by 5% from with Université Pierre et Marie Curie 41 has been developed with the Garches 31 December 2009 levels and to increase (UPMC Paris), the Universities of Bordeaux Foundation under a three-year the percentage of new employees aged and Toulouse and Université Paris 43 partnership agreement with the ISEN 50 to 4.5% of all new hires. Descartes to develop learning and career engineering school. opportunities for young people with Two years after the agreement on the 45 disabilities. In late 2006, Thales formed a working employment of the over-50s came into group with the French standards committee effect, the indicators specified in the 47 Leveraging its technological know-how, AFNOR to define a standard for disability- agreement show that it is having a Thales has developed a number of 49 friendly employers. In 2011, Thales also beneficial effect on the employment of proprietary products to help students and worked with AFNOR to develop OK Pilot, older staff members within Thales. workers with disabilities. One of its 51 a self-assessment tool for companies to flagship products in this respect is the measure compliance with the standard Portanum software co-developed with the 53 and define any necessary improvements. Montclair Institute and the CRDV rehabilitation centre for the visually 55 impaired, which enables people with sight loss to read a presentation or view an Combating age 57 image on a laptop computer. discrimination 59 Thales also developed the technology that The signatories to the IDEA agreement 61 enables people with motor disabilities to have formally rejected all forms of age- obtain a pilot’s license to fly small aircraft. based discrimination. In line with this 63 Through the Handi Aero Surveillance agreement, the HR e-self-service tool does programme, pilots with motor disabilities not include references to individual 65 can now fly small planes as part of forest employees’ age or date of birth. In fire prevention efforts. addition, the Group organises specific 67 Several other innovative projects based career review sessions for all employees on Group technologies have resulted in in Europe with more than 25 years’ 69 practical solutions for people with experience to help them map out the last disabilities: part of their career. 71
• The Eyeschool learning aid provides Supporting employment
visually impaired students with audio 2011
of the over-50s in France read-outs of course materials and interactive animations of notes written The various agreements signed by Thales report responsibility on the board by teachers. since 2001 (the Group-wide agreement corporate ISSUE UMBER FIVE Advanced technology for the environment
Enabling the future means stepping up to the major environmental challenges of our times and promoting access to the knowledge people need to become the responsible citizens of tomorrow. With its global strategy and operations in over 50 countries, Thales is very much a part of the local economic, social and environmental ecosystem of each country, and therefore strives to be a responsible neighbour and community member. The Group is progressively embedding an environmental dimension into every level of its business and organisation, helping to build a shared culture of authentic environmental responsibility. Thales and its employees are also engaged with local communities around the world, in particular by helping to provide learning opportunities for young people. Advanced technology for the environment
Further action in 2011
Responsibility towards the environment is Significant reduction in CO2 emissions: and the rules applicable at all levels of the one of Thales’s core values. To engage all • leveraging the Group’s expertise, organisation. the players involved, Thales implements an • reducing business travel and increasing The new process has already been environmental policy at all Group sites the use of greener modes of transport. incorporated into purchasing, quality, real around the world. Fostering a spirit of innovation: estate and legal functions, and is being • sharing expertise, As well as ensuring compliance with deployed across every function and • communicating transparently, applicable regulations and anticipating business line in the Group, helping to future regulatory changes, the policy has five • involving employees, suppliers and other embed environmental considerations into key areas of focus: stakeholders. the design and development of all Thales’s Prevention of impacts on people and the In 2011, to stress the importance of products and services. environment arising from the Group’s managing environmental impacts and risks, activities: a specific process was incorporated into • reducing and managing environment Chorus 2.0, the Group-wide reference health impacts, system, and is now accessible to all • respecting biodiversity and cultural employees.The process has two key areas heritage. of focus: Incorporation of environmental factors • operational sites and activities (buildings, into the design of products and services: industrial facilities, equipment, work • limiting their environmental footprint sites), whenever possible, • products and services (design, bids, • using the environment as a driver of projects, etc.). innovation. Consumption of fewer natural resources: Recommended practices for managing • limiting dependence on fossil fuels, environmental impacts and risks have been • saving water. issued, along with methodological guides
Environmental timeline
2011 2009 2003 Network of Product HSE* managers Environment Department reporting United Nations Global Compact established, with renewed to Operations management. signed, first annual environment commitment to environmentally 2008 report published. sensitive product design. Simultaneous ISO 14001 and OHSAS 2001 2010 18001 certification for the entire Thales Code of Ethics issued, with Group-wide deployment of an HSE Avionics Division. environmental responsibility as a process through the Thales 2007 key principle. reference system, and inclusion Group-wide environment policy 2000 of HSE factors in other baseline established. First Thales site certified ISO 14001 processes (purchasing, design, (Hengelo, Netherlands). bids and projects, etc.) 2005 First environmental objectives set in 1997 several countries of operation. First master plan. *Health, Safety, Environment. 1
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Thales strives to embed an authentic culture The Environment Report is available 51 of environmental responsibility within its on the Thales website at organisation worldwide, and organises sustainability.thalesgroup.com 53 employee information and awareness campaigns to support this goal. 55
Thales provides its employees with a range 57 of training, awareness, communication and discussion tools to encourage them to take 59 a fresh look at the environment and incorporate environmental stewardship into 61 their work at a day-to-day level. Newsweek Green Rankings 2011 63 An online collaborative platform provides a forum for hundreds of members from th 65 around the world – working in areas such Thales was ranked the 79 greenest company in the world, and as design and communications as well as sixth greenest in France, in the American magazine Newsweek’s 67 environmental management – to exchange 2011 Green Rankings. news and information about the Group. The Green Rankings assess the 500 largest publicly held companies based 69 A series of online e-learning modules on three separate metrics: 71 provides employees with an introduction to • an environmental impact score (based on greenhouse gas emissions,
basic concepts of environmental risk water use, waste, etc.),
management. The Thales training catalogue 2011 also includes modules specially designed • a “green policies” score, for the different job families (purchasing, • a “reputation survey” score. report responsibility design, sales, etc.). corporate Advanced technology for the environment
That Eureka moment
The Group-wide suggestion box system, Eureka, ran a special environmental challenge during European waste reduction week in 2011. Employees had the opportunity to submit their ideas for helping the Group to meet its target for the reduction of non-hazardous waste. All the ideas were analysed and appropriate action is being taken.
Supporting eco-design
The Group’s environment policy now The Group’s reference system supports this A range of training and communications includes a stronger focus on eco-design, policy by incorporating an environmental tools has been developed to support the confirming Thales’s commitment, renewed focus into all other processes relevant to network, including seminars, e-learning in 2011, to design, produce and supply the business cycle, from bid and project modules, and a brand new training products and services that incorporate management, design, development and programme dedicated to eco-design that health, safety and environmental through-life support to disposal or recycling is delivered by Thales University and is requirements, contribute to the development of products decades later. of environmentally friendly technologies, available to all Group employees. A and participate in national and international A network of Product HSE (Health, Safety, module aimed at enhancing awareness of programmes to improve understanding and Environment) managers has been set up to eco-design issues is also incorporated into protection of the environment. ensure implementation of the environmental training programmes for product designers management baseline. and developers.
Responsibility in action
Michel Hinfray, a collaborative approach, analysing customer Public Contracts Manager, requirements for each contract on an individual basis in Avionics and Defence Mission accordance with Group environmental policy. Customers’ Systems Divisions requirements are sometimes even stricter than the regulations, particularly in terms of determining exactly “Since the discovery of huge quantities of asbestos on where a given substance is located, and in which piece board the aircraft carrier Clémenceau in 2005, the French of equipment. End-of-life dismantling of equipment government, defence procurement agency (DGA) and waste recycling are also a growing area of concern. and armed services support departments have focused In the light of these new issues, the contractual provisions extremely closely on issues of environmental protection, in place since 2006, and the evolving regulatory context, which are now included in all new contracts, irrespective we now systematically perform an environmental of their scope (design, development, manufacturing analysis of every contract to ensure that our products or support). Thales has addressed this issue through can be used in complete safety.” 1
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13 Thales is developing a further series of tools and methods to support the eco-design Engaging suppliers 15 initiative, including a global database listing the environmental characteristics of 17 over 300,000 components and around 3,000 chemical compounds. The database As part of its commitment to extending its environmental responsibility policy 19 contains compliance data for regulations to the supply chain, Thales requires suppliers to sign the Group’sPurchasing such as REACH (Registration, Evaluation, and Corporate Responsibility Charter. This is a binding document designed 21 Authorisation and Restriction of Chemicals), to help suppliers align their policies and internal processes with the set of and is periodically updated to include the 23 latest changes. Like all industry players, principles that Thales has adopted. By the end of 2011, a total of 1,476 suppliers Thales is required to identify any hazardous around the world had signed up (compared with 918 at the end of 2010). 25 substances in the components it uses, and To help drive this initiative forward, the Group Purchasing Department has to disclose this information to customers, set a target for 2011-2012 of evaluating the environmental maturity 27 regulatory bodies and other stakeholders. of 50% of the Group’s top 1,000 suppliers. 29
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All Thales’s customers around the world in all determine patterns of ocean circulation, As part of the European GMES (Global 49 sectors face the same environmental improving our understanding of this Monitoring for Environment and Security) challenges: reducing the environmental important component of the planet’s climate programme, the European Space Agency 51 impact of their activities, preserving system. The MERIS camera, meanwhile, has selected Thales Alenia Space as prime biodiversity, and contributing to the fight provides high-quality images of the planet contractor for the design, development and 53 against climate change. Thanks to its technical and its oceans on a daily basis, showing integration of the Sentinel-3 satellite, which expertise and potential for innovation, and the continually changing face of the will provide data on sea surface topography, 55 its participation in an array of national and biosphere by recording phenomena such as well as carrying out ice, land and international programmes, Thales can help as plankton efflorescence and changes in vegetation monitoring. 57 its customers meet these challenges. vegetation cover. 59
Thales is mobilising its technical expertise to understand climate change 61 Monitoring the climate and address the environmental crisis. As the global climatological and 63 environmental crisis continues to unfold, with inevitable effects on the planet and on 65 human life, the industrial and scientific 67 community is mobilising to provide solutions. Thales is a key player in space-based Earth 69 observation programmes, providing high- resolution optical and radar imaging 71 systems that promote a better understanding of climate change and more effective
environmental monitoring. 2011
The Poseidon altimeter, for example, uses report mapping of ocean surface topography to responsibility
corporate Advanced technology for the environment
Transport and foreign heavy goods vehicles using roads Innovating for in mainland France. Similar systems are the environment already in operation in Germany, the development of Road and rail transport Switzerland and Austria. green technologies In today’s increasingly urbanised world, Thales is also a recognised expert in creating sustainable conditions for urban highway supervision and information mobility and inter-city travel is an important systems designed to improve the driving way of reducing CO2 emissions. experience. Recent contract awards in this Thales plays an important role by supplying segment include the NTIS project for the transport operators with the systems they UK Highways Agency in 2011. need to operate their infrastructures more Global navigation satellite systems (GNSS) efficiently while improving the service they based on Thales technologies also help to provide to travellers. optimise road traffic flows. For example, Thales deploys interconnected Air transport public transport fare collection systems that With air traffic volumes set to expand allow passengers to use different modes significantly in the coming years, there is of transport at regional or national level an urgent need for the air transport sector with a single ticket. For several years, Thales has to reduce its environmental footprint. been conducting research and Thales was the first supplier in the world to Thales is part of the Clean Sky European development work on gallium deploy technology aligned with the new research programme, a public-private European Train Control System (ETCS) rail partnership aimed at reducing the CO , nitride (GaN), a new material 2 signalling standard, and is currently the nitric oxide and noise emissions of aircraft whose unique properties can global leader in the field. The new standard by 40%, 60% and 50% respectively help reduce the environmental will eventually form the basis of an between now and 2020. impact of electrical and interconnected Europe-wide rail network. As a founding member of the programme, Thales is coordinating one of the six main electronic equipment. In the urban transport sector, Thales leads research topics, Systems for Green A real technological the field in automated train control systems Operations, which aims to reduce aircraft breakthrough, gallium based on CBTC (Communications-Based energy consumption through trajectory Train Control) technology, which nitride offers exceptional management, notably significantly increases the number of trains potential for reducing energy during take-off and that can operate on a given line, and thus consumption thanks to its approaches, as well as helps make urban rail systems more Clean Sky’s Technology thermal performance, efficient. Evaluator, a simulation and fewer components Thales’s solutions also allow rail operators tool that will be used to are required to deliver to cut their energy consumption, thereby assess the environmental contributing to a further reduction in the the same level of power. impact of the programme. The Group is carbon footprint of rail transport. This latest promising also taking part in the SESAR programme, technology is the subject Toll systems for trucks help regulate road whose objectives for 2020 are to enhance of a new R&D programme traffic flows and provide revenues for vital air traffic management, improve safety, being conducted by Thales infrastructure upgrades. From mid-2013, and achieve a 10% reduction in related the French government’s Ecotaxe toll consumption and emissions by optimising Research & Technology on collection scheme will apply to French and vertical and horizontal trajectories. eco-friendly power supplies. 1
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A tree for every takeoff… 15
17 Air crews require the equivalent of an entire tree in paper documentation every time an aircraft takes off. Thales’s teams in Toulouse have developed TopWings, the digital alternative to paper documentation in the cockpit. This 19 innovative solution comprises a single system composed of hardware and software subsystems that incorporate global data such as aerial maps, allowing aircraft to exchange information with airline operations teams on the ground in real 21
time. The solution increases operational efficiency while reducing pilot workload, cutting the amount of paper 23 documentation required and optimising airline costs. 25
Smarter cities parameters. Operators are able to optimise 27 flows and configurations, manage 29 Thales provides interoperable supervision equipment status and allocate resources to and hypervision solutions which provide enhance security, boost operational 31 operators of transport systems, energy efficiency, save energy and speed decision- networks and major urban infrastructure with making processes, thereby improving the 33 a real-time overview of key events and quality of life of local residents. 35
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53 The Group is committed to reducing its processes, optimisation of water use, and environmental footprint by analysing the best practice information campaigns for 55 impact of its activities and the associated employees. risks for people and the environment. Thales has exceeded its previous target for 57 Alongside technical and organisational cutting energy consumption (an 11% 59 measures, Thales believes the most effective reduction between 2008 and 2010, ways of delivering performance measured in tonnes of oil equivalent). 61 improvements are to share best practices The Group is continuing to focus effort on this and support behavioural changes. vitally important area, targeting a further 5% 63 reduction by the end of 2012. A 3% cut had already been achieved by the end of 2011. 65 Reducing Limitations on the use of fossil fuels, combined 67 consumption of with a raft of energy saving measures and initiatives, are key factors in the Group’s 69 natural resources success in reducing its energy footprint. Thales has been developing a natural 71 Water is a fundamental resource that needs More efficient industrial processes. resources strategy for several years, and to be preserved. The programme to reduce has introduced various programmes aimed water consumption launched in 2000 2011 at controlling and reducing consumption. continues to deliver results, with a 26% These programmes focus on areas such as reduction achieved at worldwide level, and report responsibility energy efficiency of buildings and industrial 48% in France, between 2007 and 2011. corporate Advanced technology for the environment
Reducing waste Limiting discharges activities such as pyrotechnics need special locations and large buffer zones need to To meet its waste targets, Thales is reducing In general, Thales’s activities do not be set aside because of the risks involved. the quantity of waste it produces, as well generate atmospheric discharges, with the These buffer zones account for almost 78% as the amount sent to landfill. exception of those linked to site operation of the total area of the Group’s sites. (in particular heating). Industrial discharges In 2010, the Group exceeded its previous However, steps are taken to enhance their to the atmosphere are collected and treated target for reducing per capita non- value by promoting biodiversity, for example where necessary by means of air filters, hazardous waste production (-20% by converting them into pasture or even gas scrubbers, etc., and regularly checked. between 2008 and 2010). Thales is arable land. Although the most frequent discharges continuing to focus effort on this area, involve solvents, 90% of solvent purchases targeting a further 10% reduction by the Particular attention is paid to protecting end of 2012. An 8% cut had already been concern just five sites, and 80% are plant and animal species at a number of achieved by the end of 2011. purchased for the Mulwala (Australia) sites. Inventories of species are carried out, facility alone. Discharges from this site either on a volunteer basis or in partnership Volumes of waste paper and packaging comply with official licenses, and the with the authorities or local biodiversity continued to fall in 2011 (by 10% and authorities do not consider that they present protection organisations. Specific features 9% respectively compared with 2010), a hazard for the environment. However, have also been introduced at some sites to while recycling of non-hazardous waste the site has implemented a programme preserve traditional habitats. has risen from 31% in 2007 to 55% in aimed at reducing solvent emissions, with 2011. rollout of the associated process scheduled Particular attention is also devoted to for completion in 2012. Importantly, several Promoting hazardous waste, with volumes falling sites have replaced solvents with detergents, significantly as cleaner industrial processes or have eliminated solvent use altogether. engagement with are introduced. Thales’s activities generate little in the way climate change of industrial wastewater discharges. Ninety In addition to reducing greenhouse gas per cent of such discharges originate from emissions from its own activities, Thales just five sites. Changes in industrial processes encourages its partners to take a responsible and wastewater treatment methods have attitude to the issue. brought considerable reductions. Key Agricleaning: measures include a policy of “zero industrial For example, since 2009 the Group has using bioproducts discharges”, whereby 100% of industrial co-chaired the Carbon working group of wastewater is treated and recycled. Some the French aerospace industries association to clean circuit sites that are not connected to public (GIFAS), which provides methodological boards networks discharge their industrial guides and organises briefing sessions to wastewater into surface water, after articulate the industry position, disseminate treatment, in accordance with regulations, Agricleaning is an and with the approval of local authorities. experimental project to develop a new process for precision cleaning of printed Protecting natural circuit boards and assemblies sites and preserving using environmentally friendly plant-based biodiversity products (bio-solvents Staff from Thales sites which include habitat and bio-surfactants) that for protected species or are located close generate zero discharges. to protected areas are provided with The aim is to achieve special training and information to ensure that they are aware of the issues involved. cleaning performance equivalent to petrochemical When choosing locations for its sites, Thales solvents such as takes into account environmental criteria including climate-related and geological hydrofluorocarbons (HFCs) risks, the impact of its activities on local or glycol ethers, while communities and the environment, and land delivering a four-fold use factors. The objective is to optimise reduction in greenhouse compatibility between the Group’s activities gas emissions (in terms and the environment. of CO2 equivalent). Although the majority of the Group’s sites (56%) are located in industrial areas, 1
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13 best practice, and foster a better Measuring emissions understanding of key challenges and 15 obligations. Since Thales introduced indicators of CO2 emissions and set emission- Case studies by the companies involved, 17 reduction targets several years ago, awareness of the impact of Thales’s including Thales, have helped illustrate the 19 activities on climate change has grown and a number of new approach. Thales is also engaged in partnerships with other industry players as opportunities have been identified. 21 well as research laboratories and government agencies. A new university 23 To measure its greenhouse gas emissions, Thales has developed chair in greenhouse gas emissions a methodology that is consistent with its activities and is based on monitoring, inaugurated in 2011, provides 25 the Greenhouse Gas Protocol created in 1998 by the World Resources a perfect example. Scientific partners Institute and the World Business Council for Sustainable Development. supporting the professorship include the 27 Laboratoire des Sciences du Climat et l’Environnement (LSCE), the French atomic 29 For a number of years, Thales has been taking steps to reduce its energy commission (CEA), the University of carbon footprint by cutting CO2 emissions caused by its activities Versailles Saint-Quentin-en-Yvelines and the 31 (energy consumption and the use of substances that contribute French scientific research agency (CNRS), to the greenhouse effect) and by business travel. CO2 emissions have while industrial partners include Veolia Eau 33 been significantly reduced thanks to local improvement initiatives and Thales Alenia Space. 35 undertaken in partnership with suppliers and the “travel less, travel better” policy. Special events and communications campaigns 37 are regularly organised to help change employee behaviours by highlighting the benefits of using alternative modes of transport. 39
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report responsibility
corporate ISSUE UMBER SIX Engaging with the community
In many of the Group’s countries of operation, Thales companies have a prominent role in the community and are major players in the local economy and employment market. Thales staff throughout the world support their local communities in a variety of ways, particularly through youth promotion projects and educational programmes. Engaging with the community
Acting local
Thales companies are major players in is also committed to the development of example, has been donated to Marie local economies and labour markets innovative technologies that bring practical Curie Cancer Care over a five-year period around the world, and the Group’s policy benefits to disabled employees. through sports events and other fund- in France and other countries is to develop raising projects. authentic ties with local institutions and Thales strives to be a responsible member provide long-term support to local of society, despite far-reaching and ever- Through its Charitable Trust, Thales UK supports communities. Local subcontractors and increasing demands. The Group continued to support Youthnet, an suppliers are used wherever possible to a number of community and charity organisation dedicated to providing young support economic activity in the area. A initiatives around the world, most of them people aged 16 to 24 with the information Thales entity specialising in regeneration involving locally based child health and they need to make informed career programmes (GERIS) has been in operation education programmes. choices. The company has a partnership with The Railway Children, a charity that in France for some 20 years, supporting In 2009, the Group signed a three-year provides shelter, clothes and meals to new employment opportunities in areas partnership with La Chaîne de l’Espoir, a homeless children. Thales also participated affected by industrial job losses, and non-profit organisation that provides health in the development of the Talk, Don’t Walk making its expertise available to other services to disadvantaged children in website, a service dedicated to dissuading companies, as well as SMEs/SMIs and developing countries. Through this children from running away from home local authorities, with the following aims: partnership, Thales is helping to finance and providing services to help families • support plans to create sustainable jobs healthcare for sick children in Afghanistan. within local SMEs/SMIs, overcome relationship problems. In 2010, six members of the French • help to create an equivalent number of In the Netherlands, Thales sponsors a aerospace industries association GIFAS, new jobs to replace jobs lost due to number of local charities. The company including Thales, established HANVOL, restructuring measures, helps finance museums such as the local an association to promote training and • provide advice, loans and grants to Museum of Technology and the Nautical integration of young people with disabilities companies, Museum. Thales also supports the Opkikker in the aerospace industry. • help to stimulate the local economy. Foundation, which organises activities for Thales is investing in education. The Also in France, the Group is a member of children suffering from life-threatening Group has established numerous Fondation Villette-Entreprises, which diseases. In 2011, Thales Nederland also partnerships with educational supports corporate partnership projects sponsored the Veterans Day (Veterandag) establishments to promote its disciplines with museums such as the Cité des event organised by the Dutch Ministry of and areas of specialisation, encourage Sciences et de l’Industrie as a way to raise Defence to honour the country’s armed young people to make appropriate training interest in science and technology among services veterans, in particular those who choices, and stay in touch with students the general public, and particularly among have been involved in the recent operations to share knowledge and experience. young people. in Iraq and Afghanistan. Thales has an active policy of supporting Employees in the United Kingdom, have Thales has a multi-year partnership with disabled individuals. A number of been active in supporting charities for Legacy, one of Australia’s oldest charitable initiatives are aimed in particular at young several years, promoting causes in various institutions. The charity currently looks after disabled people, such as internships and ways and providing significant financial 115,000 widows, as well as 1,900 access to educational partnerships. Thales support. A total of £500,000, for children and disabled dependents across
Support for disaster relief in Japan
Following the earthquake and The fund is targeted at three key (elderly and isolated people, tsunami that struck Japan in areas: provision of direct support the disabled, children and March 2011, Thales made a for Japanese charities to improve the unemployed); and post- donation of €100,000 to the communications with relief emergency operations, for which Fondation de France, which operations on the ground; the Japanese government has set up a special fund to help meeting the urgent needs of received aid from 28 countries victims of the disaster. the most at-risk populations and international organisations. 1
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43 the country. Thales Australia also supports volunteering programme was set up, and 45 the Young Endeavour Youth Scheme, a obsolete computer equipment was donated not-for-profit organisation which provides to a number of organisations. Thales 47 young Australians aged 16 to 23 with an España also encourages work-life balance opportunity to take part in voyages at sea initiatives, notably by supporting employee 49 aboard the training ship Young Endeavour. participation in a range of sporting events. 51 This unique experience helps increase self- Finally, the company has set up the Aula awareness, develop teamwork and Thales programme, aimed at familiarising 53 leadership skills, and create a strong sense pupils at schools in Madrid with Thales of community responsibility amongst technologies and their impact on society. 55 members of the youth crew. Thales Canada supports United Way Thales USA supports a number of Centraide, the country’s largest provider 57 community organisations through monetary of funds for charitable organisations. Each donations and volunteer projects. Through year, United Way Centraide raises 59 the Charitable Contribution Committee, upwards of $480 million, the majority of 61 Thales and its employees support several which is reinvested in programmes and organisations such as the American services dedicated to improving the lives 63 Cancer Society and the American Heart of individuals in local communities. The Association. True Patriot Love charity, which helps 65 wounded soldiers and their families, was Under the Thales Commitment programme, also given financial support. Thales España continued to support 67 community organisations and charities, 69 especially those in which its employees have a direct involvement, through monetary and material donations. 71 Organisations supported include Theodora
Foundation, Médicos sin Fronteras, Niños 2011 con cancer, África Directo, Asociación Crezer, and Solidaridad/Educación/ report responsibility Desarrollo (SED). In 2011, an employee corporate More information
http://sustainability.thalesgroup.com or Contact the Ethics and Corporate Responsibility Department:
email: [email protected] telephone: +33 (0)1 57 77 86 49
Dominique Lamoureux Vice President, Ethics and Corporate Responsibility [email protected] Cathy Floret +33 (0)1 57 77 82 07 Coordination / Administration / Communication support [email protected] Sylvain Masiéro +33 (0)1 57 77 86 49 Director, Corporate Responsibility Development [email protected] +33 (0)1 57 77 85 88 Régine Poidevin Document management / Copy desk / Back office Stéphane d’Aura [email protected] Ethics and Corporate Responsibility Standards Manager +33 (0)1 57 77 86 61 [email protected] +33 (0)1 57 77 83 74
Cover page and page 17 quotation: The Wisdom of the Sands, Antoine de Saint-Exupéry, translated from Citadelle by Stuart Gilbert (1950). Photo credits: C. Audebert/Abaca Press (p. 43 r.), G. Bassignac/Abaca Press (p. 7 r., 57), S. de Bourgies/Abaca Press (p. 2), K. Brustad (p. 9 r.), J. Byron (p.13 r.), P. Calinescu/Abaca Press (p. 55), R. Carter/Abaca Press (p. 71), C. Doutre/ Abaca Press (p. 4, 43 l.), I. Galli (p. 9 l.), N. Gouhier/Abaca Press (p. 15 r., 17, 36, 46, 63, 72), M. Guerra (p. 7 l., 35, 65), T. Hierl (p. 53), Maritime Coastguard (p. 12), Master Image Programmes (p. 13 l.), Photopointcom (p. 27, 54, 61, 69 r.), Quadrimage (p. 40), E. Raz (p. 25 r.), Q. Reytinas/Quadrimage (p. 49 l., 50), D. Rory/Abaca Press (p. 15 l., 19, 28, 29, 49, 51, 69 l.), B. Rousseau (p. 8, 25 l., 30, 59), Saragoussi (p. 21), P. Stumpf/Abaca Press (p.21), TAS/Master Image Programmes (p.10), Thales, Thales Alenia Space (p. 22), E. Vandeville/Abaca Press (p. 39).
Thales thanks the employees who took part in the interviews and photo features. Design and production: - Publication date: May 2012.
Printed on recycled paper.
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