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Management Structures for Corporate Responsibility

In 2014 a CR management framework was defined which embeds the principles of corporate responsibility and defines the responsibilities for delivering on related goals at a Group and a Division level. It is intended to ensure support from top management, to assure a focus on areas of the highest risk, impact and relevance to stakeholders, and to empower local CR officers and local ambassadors to act. The framework is outlined in the so-called CR Charter, which was approved by the Board of Directors in May 2014 and sets out responsibilities for acting parties as defined in the below graphic.

Roles and responsibilities clearly defined

The Board of Directors is responsible for reviewing and approving the overall CR governance framework, providing a long-term view on sustainability risks and opportunities and ensuring that Kuoni meets its obligations to its stakeholders. The Group Executive Board (GEB) sets and approves the strategic objectives and defines an appropriate strategic thrust that incorporates the objectives of the organization, its operational structure and the business processes needed to meet Kuoni Group’s CR obligations.

The cross-functional and cross-divisional CR Steering Group receives its mandate from the GEB and consists of senior representatives from the Divisions and core Group functions (HR, Communications, Investor Relations, Risk Management, Legal). The CR Steering Group additionally benefits from insights provided by a group of external specialists in corporate responsibility and sustainability who guide and critique the development of Kuoni Group’s CR strategy and bring in a broader stakeholders’ perspective in their role as external advisors.

Kuoni Group Corporate Responsibility department develops, monitors and coordinates the implementation of the Group’s CR strategy and sets its policies and standards. The role of Group Corporate Responsibility is to report and make appropriate recommendations to the GEB with regard to the company’s management of its corporate responsibility and its conduct of business in accordance with the Kuoni Code of Conduct.

Responsibility for the implementation of Kuoni Group’s CR strategy and for ensuring that its business activities and processes are aligned with the Kuoni Code of Conduct rests with line management in the respective Divisions. The implementing bodies consist of the Divisional Leadership Teams, the Divisional CR Officers and the local CR Ambassadors. The Leadership Team commits to defining the CR action plan for the Division, ensuring an adequate allocation of resources to implement this action plan (i.e. a permanent position with at least 20% of working time dedicated to CR), setting clear targets for the Division’s CR Officer and any local CR Ambassadors (integrated into the Management by Objectives process) and ensuring proper training to achieve the said targets as well as identifying local risks and impacts, assessing materiality and developing mitigating actions, amongst other responsibilities.