Framework for Sustainable Excellence

Sustainable Excellence is the evolution of our TQM approach. It is our culture for achieving excellence across the board. By responding to our stakeholders’ needs in the short and long term, we will make our company ‘sustainable’ - successful now and in the future - enabling us to contribute to sustainable development at a global level.

Essentially, ST’s governance and management systems are designed to help the company create value for all its stakeholders. Our culture of Sustainable Excellence (SE)– the evolution of our Total Quality Management (TQM) approach – takes into account the need for robust, formal governance mechanisms and management systems, as well as more subtle, cultural aspects, to ensure cohesion and innovation, based on a shared vision and common objectives.

ST’s various boards, councils and committees form the backbone of the company’s overall governance framework. This structure, reinforced by internal control mechanisms, including policies, procedures and processes, supports responsible business practice.

Bodies such as the Corporate Responsibility Advisory Council, the corporate Sustainable Excellence Steering Committee, and the corporate Environment Health & Safety and Quality Steering Committees, provide additional focus on performance and programs relating to specific aspects of Corporate Responsibility.

The Corporate Responsibility Advisory Council is composed of senior managers representing key corporate functions and regional and local organizations. Its role is to contribute to the evolution of ST’s strategy for CR, and to oversee and support our key CR programs and initiatives.

The corporate level Sustainable Excellence Steering Committee is made up of operational managers representing all major organizations and regions. They are nominated by their respective Corporate Vice Presidents and have a formal responsibility for deploying objectives and programs relating to CR. The corporate SE Steering Committee is complemented at the local level by site SE steering committees. These are designed to have an overview of some domains already managed by existing structures, processes and committees (for example Environment, Health & Safety and Quality – which are managed operationally by specific steering committees), and of some new or previously informal domains, such as human rights, business ethics, stakeholder engagement, management of CR in the supply chain, and company culture.

In response to the widening scope of stakeholder expectations, the local Sustainable Excellence committees play a key role in supporting the integration of the newer domains into more formal management systems. Given the complexity of today’s business environment, these committees provide a common strategic direction in line with ST’s culture, and help to integrate key stakeholder perspectives and expectations. Our new code of conduct, the Principles for Sustainable Excellence, serves as the reference framework for this common approach.

Vision
Sustainable Excellence in ST is about creating financial and non-financial value for all our stakeholders.

Mission
To support ST’s vision by understanding and responding to the expectations of all local stakeholders, from customers and employees, to suppliers and local communities, and securing their engagement and commitment.

Responsibilities

• Ensure local alignment to the Principles for Sustainable Excellence, including effective risk management and communication
• Integrate stakeholder perspectives and expectations into local site strategy for SE
• Promote Sustainable Excellence culture through deployment of corporate and local SE programs and initiatives
• Set objectives for continuous improvement and breakthroughs
• Report on progress to regional and/or worldwide SE Steering Committee

Sustainable Excellence Committees and Risk Management
A risk management approach to business is an integral part of the governance structure for Sustainable Excellence. The committees themselves identify and manage risks and opportunities, using a variety of management tools, including risk workshops, internal and external audit results, an internal self assessment questionnaire, the Employee Opinion Survey, quarterly reporting of key performance indicators, and quarterly management review of performance versus objectives. The committees form a key link between the corporate and local levels of the company and are, in essence, a strategic two-way communication channel that enables ST to recognize and respond to our evolving social and business environment.