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Henkel KGaA

Headquarters Düsseldorf, Germany
CEO Prof.Dr.Ulrich Lehner
Total Revenue €11,794 billion (2005)
Net Income €1,162 billion (2005)
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Summary [login to edit summary]

Henkel focuses on home and hearth. The company makes branded laundry, home care, cosmetics, and toiletries products. Most of Henkel’s operations are centered in Europe, where the company is a leading maker of toiletries, cosmetics, detergents, and cleansers; its ownership of The Dial Corporation gives it access to the US market. Henkel also manufactures adhesives, sealants, and surface treatments. It serves customers in 125 countries from offices nearly everywhere except Greenland and Australia. Brands include Mir, Somat, Purex, Soft Scrub, Loctite, Schwarzkopf, Fa, and Sellotape. Relatives of the founding Henkel family control the company, which began in 1876.

Sector: Personal & Household Products

Reducing Product/Service Impacts Greenhouse Gases Air Pollution (other than GHG) Energy Use Biodiversity Material Use Waste Water Use Hazardous Spills Environmental Compliance Environmental Expenditures Community Impact Local Procurement Capacity Building Child Labour Indigenous Rights Cancer Research HIV/AIDS Research Human Rights Employee Wages Training and Benefits Employment Equity Collective Bargaining Occupational Health and Safety Military Involvement Customer Health and Safety Accessibility to Product Information Customer Satisfaction Marketing Ethics Customer Privacy Organics Fair Trade Animal Testing Government Assistance Direct Economic Impact Political Contributions Anti-Corruption Anti-Competitive Behaviour CEO Compensation Category Breakdown
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3.28/9 0.2%
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Rating_5
Environment [login to edit summary]

Indicators
  1. Reducing Product/Service Impacts (7)
  2. Greenhouse Gases (3)
  3. Air Pollution (other than GHG) (1)
  4. Energy Use (8)
  5. Biodiversity
  6. Material Use (5)
  7. Waste (6)
  8. Water Use (6)
  9. Hazardous Spills
  10. Environmental Compliance
  11. Environmental Expenditures

Henkel has addressed environmental issues by conducting a Life Cycle Analysis of their products, which looks at the cumulative environmental impacts from cradle to grave.

The company is committed to reducing the amount of waste generated by packaging and production. In 2007, the amount of waste diverted for recycling was more than twice the amount of waste for direct disposal, and the company is continuing to encourage waste diversion. In the last 5 years, the company has made significant reductions in energy and water use, and in the next 5 years are committed to reducing energy use by another 15%, and water and waste by another 10% each.

In 2007, Henkel took part in the fifth meeting of the Round Table (RT5) in Kuala Lumpur, Malaysia. The key theme of the RT5 was to approve a certification and marketing model for palm oil from sustainable plantations.

Rating_5
Society [login to edit summary]

Indicators
  1. Community Impact (1)
  2. Local Procurement
  3. Capacity Building
  4. Child Labour
  5. Indigenous Rights
  6. Cancer Research
  7. HIV/AIDS Research
  8. Human Rights
  9. Employee Wages Training and Benefits (2)
  10. Employment Equity (1)
  11. Collective Bargaining
  12. Occupational Health and Safety (1)
  13. Military Involvement

Henkel has a variety of services for their employees, such as medical, lifestyle, health and counseling services. Also, the company contributes a significant amount of resources to the community, including funds to the UN Millennium Development Goals. In 2003 Henkel joined the UN Global Compact which showed their commitment to human rights and environmental issues.

In March 2008, the company was added to the list of the World’s Most Ethical Companies.

Rating_4
Product Responsibility [login to edit summary]

Indicators
  1. Customer Health and Safety (1)
  2. Accessibility to Product Information
  3. Customer Satisfaction (1)
  4. Marketing Ethics
  5. Customer Privacy
  6. Organics
  7. Fair Trade
  8. Animal Testing (1)

Henkel is continually researching alternatives to animal testing. For example, the latest project involves possibly reducing animal testing by using test tubes with skin cells as part of the Full Thickness Skin Model. Henkel also participates with the European Partnership for Alternative Approaches to Animal Testing.

Henkel reports they are committed to health and safety and abide by international regulations and standards. Abundant information is available regarding occupational safety, while limited information is available regarding the health and safety of consumers in particular. Also, limited information is available regarding the labeling of Henkel products, but the company reports that regular audits are conducted to monitor such issues.

Rating_0
Corporate Citizen [login to edit summary]

Indicators
  1. Government Assistance
  2. Direct Economic Impact
  3. Political Contributions
  4. Anti-Corruption
  5. Anti-Competitive Behaviour
  6. CEO Compensation

Henkel is a member of the German Corporate Governance Code, and adhere to the suggestions that this organization offers in regards to corporate governance.

Henkel values accountability and transparency in their business practices, yet information regarding their corporate policies is not easily accessible. Also, Henkel is a GRI reporting company, yet fails to report on any of the GRI categories in this area.