Group Policy. UPM Rules for Sponsorships, Donations and Employee volunteering

Transcription

1 Group Policy UPM Rules for Sponsorships, Donations and Employee volunteering

2 Contents Why co-operate? 3 Definitions 3 What do we sponsor? 4 How does it work? 5 The process 6 Donations 8 Employee volunteering 9 Fact sheet 11 2/11

3 Why co-operate? The Biofore Share and Care programme shows our dedication to a sustainable and innovationdriven future through sponsorships, donations and employee volunteering work. UPM s all societal activities are clearly connected to our Biofore strategy and responsibility targets. We support causes and community projects that respect sustainable development and the vitality of communities where we operate. Through the Biofore Share and Care programme, we build and maintain good relations with local communities close to our operations. Definitions Corporate or local sponsorship refers to long-term involvement in, and partnership with, community non-profit groups who generally would not be able to fund activities without outside financial assistance. The activities are aimed primarily for relevant stakeholder groups in the surrounding community. Donations refers to one-off or occasional non-profit support made for charitable purposes or other good causes. There is no compensation in return (see pages 8-9). Employee volunteering refers to employees volunteering work or fundraising during working hours. Costs of supporting and promoting formal employee volunteering programmes are always agreed separately. Commercial sponsorship has a clear alignment with business and/or sales promotion targets. The activities are primarily customer-related (advertising, events etc.). Commercial sponsorship is excluded from these Rules. 3/11

4 What do we sponsor? The Group, businesses and business units are to actively seek out sponsorship opportunities. UPM strives to maximise the positive impacts to the company with selected significant cooperation programmes. The aim is to engage in relevant societal activities that fit into UPM s objectives, enhance the corporate reputation and that do not conflict with the company s values. Benefits, targets and compensations of each project are always agreed separately. All initiatives must be related to UPM s four Biofore Share and Care focus areas: Initiatives sponsored must meet the following criteria: Objectives Initiatives must have clearly defined objectives and there must be a way to ensure these objectives are fulfilled. All initiatives must have measurable benefits (either business or corporate responsibility benefits), value and results for UPM. The focus of local sponsorship is to support the vitality of communities where UPM operates. Alignment All initiatives must be relevant to UPM s business and aligned with one or several of our responsibility focus areas and the Biofore strategy. All initiatives must be aligned with UPM s Code of Conduct. All initiatives must be related to UPM s four Biofore Share and Care focus areas. Measuring effectiveness and monitoring Initiatives must be effective in reaching the intended targets. Initiatives should be usable for internal and external communications activities. Concrete measures, actions and benefits should be agreed on all initiatives above 1,000 to monitor their effectiveness and impact. 4/11

5 Risk management The risks (reputational, financial and compliance risks, terminating agreement) associated with the initiative must be manageable and assessed prior to decision-making. How the risks are managed should be included in the sponsorship agreement. How does it work? Support can be in the form of: monetary contribution products or materials employee volunteering or fundraising WE DO NOT SUPPORT: projects that cause a conflict of interests to UPM or may impact UPM s business decisions or projects aimed at obtaining improper business advantage projects that may harm the reputational value of UPM s brand projects that may have adverse social or environmental impact parties that do not commit to UPM Supplier and Third Party Code private persons or political candidates, parties or groups telephone campaigns or other chain campaigns NOTE 1: All commercial initiatives are included in the marketing activities and excluded from these Rules. NOTE 2: Any support related to employee clubs, studies, thesis or diploma work is excluded from these Rules. 5/11

6 The process 1. Finding initiatives The programme is based on active involvement the Group, businesses and business units are to actively seek out sponsorship opportunities. In addition, they regularly and independently evaluate sponsorship applications. The application tool on UPM s website must be used for all sponsorships applications no applications should be accepted. The Group, businesses and business units evaluate sponsorship applications they receive at least three times a year. 2. Accounts and budgets All sponsorships must be included in the Group s, businesses and business unit s predetermined budget and reported using the account numbers below. All sponsorships to the same entity during the fiscal year must be included in one written agreement and paid in one invoice. It is not allowed to divide the sponsorship to the same entity to several portions to avoid approval limits : Local sponsorship : Product or material contribution NOTE 1: Any support related to studies, thesis or diploma work or membership fees are not to be allocated to the sponsorship accounts. NOTE 2: Sponsorship costs are reported externally and assured as part of financial accounts, thus care should be given to correct cost reporting. 3. Evaluation The Group, businesses, business units and functions evaluate initiatives and applications against the Biofore Share and Care focus areas and responsibility targets to decide whether to engage in sponsorship. UPM s self-assessment form for analysing the proposed initiatives and applicants is recommended for all initiatives but mandatory for all initiatives above 5,000. For initiatives below 5,000, the self-assessment form may be used or other reasonable documented background check on the applicant and initiative must always be made prior to any decision-making. Who decides? Initiative size maximum of 5,000 : approved locally within business units and functions. Initiative size 5,000 10,000 : approved by business area s Head of ; for functions and the Group approved by the Vice President, Brand & Communications. Initiative size above 10,000 : reviewed by the business area s Head of Stakeholder Relations and approved by business area s/sbu s Management Team/Head; for functions and the Group reviewed by the Head of Brand & Communications and approved by Executive Vice President,. 6/11

7 4. Benefit plan Concrete measures and benefits should be defined to all initiatives above 1,000 to monitor their effectiveness and impact. The written and documented benefit plan must specify: benefits for UPM and for the stakeholders agreed indicators for measuring the cooperation from a cost/benefit perspective (the indicators may be either quantitative or qualitative) the overall cost (including the basic contribution and UPM's own activities) forms of cooperation resource allocation: time, advertising, management costs agreed actions 5. Decisions After handling the sponsorship request, the Group, businesses and business units must notify all applicants on the decision. 6. Written agreement Every sponsorship requires a written agreement where benefits, targets and compensations are always agreed separately. For initiatives above 1,000, use of UPM s sponsorship agreement template is mandatory. Please find the agreement template on UPM intranet: Businesses & Functions > Global Functions > > Sponsorships, donations and employee volunteering. The agreement must specify: specifically defined objectives of sponsorship duration of the agreement monetary value involved agreed and measurable benefits and exposure other forms of cooperation how the effectiveness of the activities will be measured terms for terminating the agreement procedure to be adopted in the event of any violation of the agreement The agreement must always include UPM Supplier and Third Party Code as an attachment. It can be found on UPM web site: About us > For suppliers > Requirements > UPM Supplier and Third Party Code. 7/11

8 7. Monitor & report The Group, businesses and business units monitor the cooperation projects and report to about the results. Group s management team will evaluate the spenditure and its division between the four Biofore Share and Care focus areas once a year. The sponsorship decision, benefit plan and agreement must be documented and kept in the Group s, businesses or business unit s file. The decision-maker is responsible for filing the agreement including the filled self-assessment form (when applicable) in the centralised file on UPM Intranet: Businesses & Functions > Global Functions > > Sponsorships, donations and employee volunteering > Agreement archive. Employee volunteering is monitored separately in hours used for volunteering during worktime. ALWAYS REMEMBER UPM s societal engagement activities are clearly connected to our Biofore strategy, responsibility targets and/or Biofore Share and Care programme focus areas. The Group, businesses and business units are to actively seek out sponsorship opportunities that reflect our dedication to a sustainable and innovation-driven future. UPM representatives are to ensure the legal compliance and responsible and ethical practices all sponsorship activities must be carried out in accordance with the Code of Conduct. Independent decision-making must be guaranteed at all times. Situations where personal interests could conflict with UPM s interests must be avoided. Do not offer sponsorship for public partners without first consulting the Legal Function. Know with whom you trade also when sponsorship is concerned. No sponsorship payments with credit cards or cash are allowed. UPM has zero tolerance for corruption and bribery in any form. Donations All UPM donations to charitable causes are decided separately by the company CEO based on the authorisation by the Board of Directors. The sum is approved annually by the Annual General Meeting of Shareholders. All UPM donations are handled via this process: 1. Finding initiatives 8/11

9 Finding initiatives is based on active involvement. The management team members collect proposals from businesses and business units for evaluation. The evaluation takes place twice a year. Contributions will be primarily granted under the Company's Biofore Share and Care programme whose focus areas are Reading and learning, Engaging with communities, Responsible water use and Bioinnovations. 2. Evaluation The company CEO evaluates initiatives based on the focus areas listed above to decide whether to propose support for the initiative. As part of the evaluation, the background of the potential recipient and proposed activity is checked by using UPM s self-assessment form prior to any decision-making. Terms and conditions for the donations follow UPM s Code of Conduct. 3. Approval The Board has authorised the President and CEO to make charitable contributions and decide on the recipients, purposes and other terms and conditions of the contributions. Individual contributions may not exceed 100,000. The monetary thresholds are subject to annual review on the basis of the decisions by the Annual General Meeting of Shareholders and Board of Directors. 4. Written documentation Every donation requires a written documentation consisting of at least the deed of donation (including possible conditions for the donation) and properly completed self-assessment form. 5. Monitor & report Donations are reported to the Board quarterly. All donations are reported using the account number Significant charitable donations (reserved only for the use of the Board-approved contributions). Employee volunteering What is employee volunteering at UPM? Employee volunteering means that employees are allowed to use working time for voluntary work for a charitable cause. Any UPM employee can use up to 8 hours (one day s work) per year for volunteering activities. Hours can be used in one go or in parts (e.g. 2 hours during 4 days throughout the year). 9/11

10 WHAT IS NOT WORK AT UPM? Projects that promote UPM agenda, e.g. company presentations at schools or events Promoting personal interests How are employee volunteering causes selected? The emphasis for volunteering is on supporting local causes and ongoing sponsorships and donations Volunteer work can be channeled to those partners UPM already cooperates with or other credible partners agreed by local management. The cause has to be in line with Biofore Share & Care focus areas. How does it work? 1. Each site nominates a person to coordinate the activities. 2. Local management selects causes annually. After local decisions are made, a list of causes will be made available locally. 3. UPM employee proposes the time and cause where he/she wants to volunteer to his/her manager. 4. The manager confirms the proposed timing for volunteering work. 5. The time spent for volunteer work is recorded to an agreed system. Employee volunteering is always fully optional! For additional information, please contact: Group and business areas: Head of Compliance: UPM's Compliance Counsels Biofore Share and Care communications: Brand and Communications and businesses 10/11

11 Fact sheet GROUP POLICY NAME GROUP POLICY NUMBER AVAILABLE LANGUAGE VERSIONS OWNER CLASSIFICATION UPM Rules for Sponsorships, Donations and Employee volunteering Chinese; English; Finnish; German; Polish; Russian; Spanish APPROVAL DATE FOR GROUP POLICY VALID AS OF GROUP POLICY APPROVED BY PREVIOUS APPROVAL DATES LOCAL ADAPTIONS APPROVAL FOR LOCAL ADAPTIONS CODE OF CONDUCT SECTION RELATED GROUP POLICIES RELATED GUIDANCES / EVP December 2013 (UPM Guidelines for sponsorship cooperation and donations) N/A N/A 09. How we engage with our stakeholders and society UPM Anti-Bribery Rules, UPM APAC Gifts & Hospitality Rules 11/11