Securitas Argentina Corporate Social Responsibility Report

Transcription

1 Securitas Argentina 2011 Corporate Social Responsibility Report

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3 Securitas Argentina 2011 Corporate Social Responsibility Report

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5 Index 3 1. Introduction Security Solutions 1.1. Words from Christian Faría, General Manager p Words from Patricia Sclocco, Communication and Public Affairs Director p Words from María Laura Paladini, CSR Coordinator p A look /into Securitas s world p Securitas Argentina p Our Organization Model p A guide for business growth: the road to go p Corporate Governance p Services and Business Areas p Main economic and business perspectives p Corporate Social Responsibility in Securitas Argentina p Our priorities p Our management approach p CSR Report Preparation Process p Stakeholders and material issues p Actions to foster dialog with our stakeholders p Our commitments with CSR p Employees p Clients p Responsible Management of Resources p Relations with the Community p Business Chambers and Public Sector p GRI Indicators p. 64

6 4 Introduction 1. Introduction Security Solutions 1.1. Words from Christian Faría, General Manager

7 Introduction 5 To be the private security company leading the market means much more than to be the largest company or the company with more billing or with more employees. It also implies being the one that determines the course of the future, projects the road to go and is able to attain such changes. During 2011 we continued working with devotion and commitment in order to improve the private security sector, to turn our people into true security professionals and to offer our clients a differentiated service with high added value. All this forced us to focus on our strategy and on simplifying its contents so as to be able to communicate better both internally and externally. Within the framework of our business plan we defined our Road to go based on three main foundations: loyal clients, committed employees y sustainable profits. The challenge for the year was to concentrate on the four defined foundations: Focus on the client, Operating leadership, Innovation culture and Training. Our security solutions include specialized physical guarding, innovation and technology and consulting and investigation. We understand that the essence of Focus on the client is based on offering Specialized Security Solutions, segmented services tailored to the needs of each client. In 2011, Consultora Videco S.A. became part of Securitas Argentina s Group. This allowed us to specialize in the segment gated communities, home owners associations and commercial offices. Also the Port area was created as the result of Securitas becoming part of main terminals of Buenos Aires Port. As regard operations, we created a new Area Management and formalized the figure of National Coordinators per region. The Innovation culture road inspires us to continue creating value through our business. We intend to foster Innovation and technology through our products (access control, video solutions, fire detection, interior intrusion detection, perimeter intrusion detection) and services (consulting and design, installation and commissioning, remote management and system servicing). In 2011, the acquisition of the company Fuego Red allowed us to improve our portfolio of innovative products. Within this framework, as from 2011 we started to develop of the business Consulting and investigation in order to give advice in connection with concrete solutions for our clients. At last, as regards Training, we continue working on the specialization of our guards and the sector. During 2011 more than 3000 employees received training at Securitas Institute. This makes us proud and is the basis of our business success. We hope that you consider this Report interesting. It represents a new opportunity to share with you our successes and challenges and our commitments with transparence and responsible business practices.

8 6 Introduction 1.2. Words from Patricia Sclocco, Communication and Public Affairs Director Our CSR strategy is focused on our people. We are a company with more than 14,000 employees countrywide that is aware that the leadership gained due to our market position must be one of the most powerful engines to continue working on the professionalization of the sector. Securitas Institute is our main foundation to make our commitment with professionalization and training of our guards come true in order to offer every day better services to our clients, based on specialization and segmentation of the services offered. This year we launched the program Héroes en Servicio [Heroes at Service]. This is an online training program through our e-learning platform, which can be easily accessed and that allows us to minimize geographical dispersion and to have access countrywide at any moment. We reward our guards that comply with the three level education proposals as well as with the services, either through commitment or highlighted acts. We are also a step forward as regards employment generation with the inclusion of Disabled Persons. In order to continue with our strategy at Regional level, we implemented our Program Seguridad Inclusiva [Inclusive Security] hiring persons with physical disability as security guards in Jumbo Supermarkets. Cencosud was the first of our clients that decided to be part of this project. In order for the Project to be effective it was essential to obtain the approval of the Ministry of Justice and Security of the Province of Buenos Aires and of the City of Buenos Aires that made an exception in connection with the level of 100% physical capacity set forth in Private Security Law applicable in our country. Another essential factor was the relation with Social Sector Organizations specialized in dealing with these issues. We were also accompanied by La Usina that supported us in connection with inclusion issues in our team and also Fundación Par and Cedima were essential for people inclusion. At worldwide level, Securitas has a clear CSR strategy aligned with initiatives of OCDE, of ILO from UNDP. This year we adhered to the 10 principles of the Global Compact, therefore, we are one of the first Security companies in Argentina that became part of the local initiative. We also became part of the following working teams: RSE from CEADS, AmCham and IDEA and we also cooperate with working groups of the Ministry of Labor and Social Security. We are convinced that sustainability is one way road and we will continue working step by step to attain the goal of being the Security company No. 1 in our country as regards responsible business management. It is a long way but we already gave the first step.

9 Introduction Words from María Laura Paladini, CSR Coordinator The preparation of this report implied the integration with representatives of different areas of the company. From the creation of a multifunctional working team, we sought to strengthen the transversal vision of the CSR fostered by Securitas Argentina. The objective for 2011 was to include the CRS strategy in the whole company. Pursuant to our commitments, our actions were focused on our guards. In general terms, during 2011 we implemented the foundations for a number of initiatives that will contribute to strengthen a responsible management for the next year. The launching of the Program Héroes [Heroes] and the local implementation of the Program Seguridad Inclusiva [Inclusive Security] were two actions towards such goal. Conciencia. The purpose of the program is to foster the peaceful solution of conflicts by giving the necessary tools to create spaces to have conversations within elementary school students. Furthermore, it was strengthen the role of Securitas team members taking part in this program. At last, through Business Chambers, we fostered spaces to maintain conversations and relationships with different parties of the private and public sector. It is our commitment to contribute to improve competitiveness conditions of the security services industry, working with dedication to professionalize our security guards in particular and of the sector in general. The Program Héroes [Heroes] was a great challenge for our organization based on our commitment to contribute with the development and professionalization of one of our main groups of interest: the Guards. With the approval of the Program Seguridad Inclusiva [Inclusive Security] at regional level we also worked with its implementation at local level. The first step consisted in searching and selecting a local partner to launch the program. This was a great experience that allowed us generating agreements with organizations from civil society engaged in disabled persons labor inclusion. This is the third consecutive year that we are working with the Program Convivir [Coexistence] together with Asociación

10 2. A look into Securitas s world Securitas has experienced a notably development from its creation in In 1985, after the change of owners and directors, it begins with its international expansion. As from such date and gradually it gained presence in several countries until it became, in 1999, the worldwide leader in Private Security. In 2000 with the incorporation of first level companies Securitas Group became also the leader of the North American Market. After its arrival to our country in 2001, with the purchase of Organización Fiel, Securitas has been offering solutions to our local market and became the reference of the industry. Its strategic distribution into 4 regional offices -Bahía Blanca, Buenos Aires, Córdoba and Paraná- allows us to have an effective communication and offer solutions within the whole country. Our history 1934: Erik Philip-Sörensen founds Hälsingborgs Nattvakt in Helsingborg, Sweden. 1949: Securitas Alarm is founded in Sweden to meet the demand for alarm technology as complement to the guarding services. 1972: All companies owned by Erik Philip-Sörensen are gathered together under the collective name: Securitas. The logotype of three red dots Integrity, Vigilance and Helpfulness quickly becomes a well-known symbol. 1985: AB Latour, an investment company, becomes Securitas new owner. It focuses on security a new strategy is outlined and the concept of multi-service is left behind : Securitas initiates its international expansion and is listed in the Stockholm Stock Exchange. 1997: Securitas Direct is established as an international division. The cash handling services operations are established as a separate unit within Securitas : Securitas is established in the United States in 1999 with the acquisition of Pinkerton, the number one security company in that country. In 2000, the second largest security company in the United States, Burns, is acquired. 2001: The international Group arrived in Argentina with the acquisition of the well-known local company Organización Fiel, today Securitas Argentina S.A. Organización Fiel operated mainly in Buenos Aires and the North West area of the country. The similarities as regards philosophy, mission, values and working methods plus intensive local searches, reports and audits carried out resulted in Securitas acquisition of such

11 A look into Securitas s world 9 company s shareholding, turning it into the first company of the Group in Latin America. At international level, Securitas is organized in five specialized divisions for greater business focus. 2004: Security Systems division acquires two important companies in France and United Kingdom, turning it into a market leader in connection with banks. 2005: Securitas continues with its expansion in Argentina through the acquisition of AIPAA S.A.; which operated since At worldwide level, Securitas has a stronger organization and Security Services in the United States report a positive organic growth and a stable margin development. 2007: Two important local companies become part of Securitas Argentina: Seguridad Argentina S.A. and Seguridad Cono Sur S.A. area of the province of Buenos Aires and Argentina. Its main branch is located in the city of Bahía Blanca. 2010: During 2010 we completed 15 big acquisitions with total annual sales of approximately million of Swedish Krona and 19,500 employees. The result was the expansion of our global presence to five new countries. 2011: The last company that became part of Securitas Argentina s Group is the Consulting Firm Consultora Videco S.A. Following the strategic plan to create added value for clients through segmentation and specialization, we also render services in an important area of the Port of Buenos Aires, becoming leaders in security knowledge in this segment. We also expanded our technology services with the acquisition of the company Fuego Red, specialized in fire prevention and detection. At international level, Securitas is organized as follows: Security Services North America (USA, Canada, Mexico and Pinkerton Consulting & Investigations), Security Services Europe, Mobile and Alert Services. Plans are set for our cash handling servicer company, Loomis, to go public by the end of : In order to continue with its expansion in Argentina and have presence countrywide, the Group acquires the following companies Vigilancia y Seguridad S.A., El Guardián S.A. and Vigilan S.A. With the acquisition of El Guardián, Securitas gains presence in the Littoral Region and part of the North and North West area of the country. Its regional branch is located in the city of Paraná. With the acquisition of Vigilan we start our operations mainly in the southern

12 10 A look into Securitas s world Security Solutions Securitas is leader in security with operations worldwide. We protect homes, workplaces and society as a whole. Our main activities are the security services grouped in specialized guarding, mobile, monitoring, and consulting and investigation. With more than 300,000 employees around the world, we offer a wide range of security solutions tailored to the needs of different industries and segments of our clients. Our security services include mobile patrol, access control, fire prevention and detection and patrol, among other services. The incorporation of technology places Securitas in a privileged position as compared to other companies, being Securitas the only company that can offer all security solutions to its clients. Specialization makes the difference Our clients have different industries and segments public entities, manufacturing companies, Banks, clinics and health centers and museums. Risk situations they face are different depending on the characteristics of each particular industry, and consequently, their security needs are also different. Years of experience rendering services to clients in different segments and industries at national level allow us to offer efficient security solutions tailored to such needs. The advantages of specialization are an essential added value both for the client and for us resulting in the generation of long term relationships and sustainable competitive advantages. Sales per Business Segment - Securitas global (2010) USA Security Services 35% Europe Security Services 41% Mobile and Monitoring 10% Ibero-American Security Services 14%

13 A look into Securitas s world 11 Security Solutions Through specialization, segmentation and professionalism of the sector and employees. We offer solutions tailored to the needs of our clients Technological Solutions Installation, monitoring and servicing. Consulting and investigation Solutions, Risk Management.

14 12 Securitas Argentina 3. Securitas Argentina Worldwide security leader, Securitas is consolidated as the most important private security company in Argentina too. It is present in the country since 2001 after the acquisition of the company Organización Fiel. Securitas Argentina has 14,000 employees coming from acquired companies that belong to the group in our country. Thanks to the knowledge and efficiency of local administration, the international experience in 53 countries and a simple but effective business model, Securitas has become the leading security solutions supplier in Argentina. The success of Securitas is based on the efficient performance of an organized working team specialized in a wide range of segments and areas. Our Mission We protect homes, workplaces and community. Our Vision Turn Private Security into a model that offers benefits to workers, clients and shareholders. Our Values Integrity. It means to work with honesty, complying with all laws, respecting all obligations undertaken with our clients, with security organizations, with tax entities and community in general. Securitas never compromises in its demand for integrity. Integrity also includes openly expressing one s opinion, report irregularities and not withholding information. Vigilance. Being professional implies seeing, hearing and evaluating. Securitas employees are always attentive and alert and notice things other do not. Thanks to their vigilance we are aware of potential risks and incidents that may take place in our clients premises. Helpfulness. Securitas employees will lend assistance when needed even if it is not specifically related to their job.

15 Securitas Management Model El Grupo Securitas Argentina 9 1) Values. Our values Integrity, Vigilance and Helpfulness are the foundations on which Securitas is based Our Organization Model Securitas has a strong corporate culture. It is based on managers with supervisors under their charge bearing in mind different specialization and geographical area. This allows us to be close to the client, this being one key factor in our model. This model gives us a wide and strong basis. Our people are in the street close to the client and trained to take decisions. The growth results from developing and refining our products, with strong presence in all areas where we render services. In this way we foster a management based on local responsibility and proximity to clients and employees. Our organization model is determined by the Tool box and the Diamond Box. These give us a strict working method, a clear management focus and vision on the future we want for the security services company and industry as a whole. The Diamond Box The Diamond Box is a business model used by Securitas worldwide. This working system has demonstrated its efficiency in all businesses and places where we are present. 2) Market. This tool helps us to remember that all clients are different. There is no general solution that suits everybody. 3) Value chain. The Value Chain helps us to ensure that we render the correct services to the correct client in the correct manner. 4) Organization. To have knowledge on the market allows us to build an agile and flat organization. Decision making processes are simpler. Being close to the client and the security guard is a basic premise for Securitas. 5) Financial Control. The focus on control and follow up of Securitas financial development can be made simpler with the Six fingers planning. These elements are the basis for profitability. 6) Risk Management. In order to prevent possible risks and protect clients and employees Securitas uses this tool that is focused on certain dimensions of operating activities. 7) Industry. The security sector is composed of companies from the segment, clients, public administration, trade unions, the media and professional associations. Securitas thinks that negotiation with all parties is essential to create a better market. 8) Step by step. In order to improve our operations and reach a sustainable growth, things must be done step by step in the correct order. 9) Persons. Models and structures are mere tools. Persons are those who make the difference. Commitment and dedication are essential words for us. Our method to train personnel and transmit them values is to transmit them all we teach. The model communicates values and priorities with the help of simple tools that generate a shared language. Each area of the company is represented by a tool and each tool is essential for our business. We focus on security. Integrity, Vigilance and Helpfulness are the core values on which Securitas is based, the key on which our clients loyalty is based

16 14 Securitas Argentina The Diamond Box The Diamond box is a strategic commercial management tool. Its main purpose is to help employees to develop their potential and create more value for clients. It represents the four core business concepts that will provide guidance when taking decisions: security, client, service and business. In this way, the first box corresponds to the core of the business, security; the second to the client, the third to the service and the fourth to the business. In turn, each diamond has subcomponents known as tools that help us to perform the job more efficiently. The interrelation among concepts is the basis for the model. In order to implement it successfully all boxes must be used.

17 Securitas Argentina A guide for business growth: the road to go During 2011 we defined the Road to Go for our 2012 Business Plan. In order to continue building a successful business model, three management foundations were established: loyal clients, employees committed to their tasks and sustainable profits. The ultimate goal is to give our clients innovative, excellent quality, and efficient solutions. We believe that with a clear destination, the road will lead the actions of those who are part of the company. The Road to Go offers us new goals: Focus on the client: offering specialized solutions and segmented services. This implies also professionalization and specialization of the sector and employees. Operating leadership: turning our employees into real leaders to strengthen the essence of our business: daily operations. Culture and innovation: inspiring and fostering a culture of innovation and creation of value for clients. Training: developing security knowledge and sharing best practices with all team so that security guards become more specialized and professional. Loyal Clients Committed Employees Sustainable Profits Focused on the client to provide specialized 1 solutions Leadership to strengthen our business essence: 2 operations 3 our Inspire a culture of innovation and value for clients 4 better Develop knowledge on security and share practices Offer our Clients excellent quality, efficient and innovative solutions

18 16 Securitas Argentina 3.3. Corporate Governance Risk Management is a central tool in Securitas Argentina business model to comply with defined strategies. Within the business there are several risks from an operating, economic financial and legal point of view as well as from the point of view of activities inherent to security undertaken by our clients. That is why Securitas manages not only its own risks but also the risks of its clients. The most important purpose is to minimize them in order to protect our employees, clients and shareholders. This requires a solid corporate Schedule and an integral management system that ensures the success of operations. In order to comply with high Corporate Governance standards, Securitas has created a clear and effective structure aimed at protecting interests of its stakeholders and ensuring the creation of value. Corporate Governance Policy At global level Securitas has adopted a communication policy approved by the Administrative Committee, pursuant to stock market requirements. The policy comprises both written and verbal information and is applicable to all levels within the company. Furthermore, Securitas Board of Directors has adopted a privileged information policy to supplement the laws in force. Each person subject to this policy is individually notified. Values and Ethics Code As regards all actions carried out by Securitas, it is essential the compliance with laws, the maintenance of high ethics standards and the protection of our shared values because they constitute the foundation of the trust of clients, employees, shareholders and stakeholders of Securitas. These principles are also essential to keep the strength and reputation of Securitas brand, to foster sustainability and growth of our global commercial activities. Securitas Values and Ethics Code is one of the corporate keys of the company. It establishes the main principles that must be complied with by all employees and partners (suppliers) of Securitas. The Code is closely related to the values of Integrity, Vigilance and Helpfulness and supports the principles set out in the United Nations Universal Declaration of Human Rights, the International Labor Organization s Declaration on Fundamental Principles and Rights at Work and the OECD s Guidelines for Multinational Enterprises. For more detailed information on the Values and Ethics Code, visit:

19 Securitas Argentina 17 Corporate Governance Organization Securitas Argentina s businesses are conducted through an Executive Board of Directors that is in charge of defining the company s general strategy, the administration of resources, and the approval of policies applicable to all the organization and the assignment of resources. The Executive Board of Directors is composed of 12 Directors and meets regularly to evaluate the company s profits and losses. implementing the general strategy and directly report to the General Management. Securitas Argentina SA s shareholders are Securitas AB and Securitas Seguridad Holding. The remuneration of the Directors of Securitas Argentina has a fixed basic component and a variable component. The variable portion depends on the achievement of business goals, the level of performance and the responsibilities undertaken. The agenda of this Board of Directors includes issues related to strategy, CSR, regulatory frameworks as well as labor issues and other strategic goals related to the business management and stakeholders. Operating managements are in charge of Securitas Argentina Executive Board of Directors President Vice-president CEO Administrative Director and Controller Communication and Public Affairs Director Financial Director Innovation and Technology Director Human Resources Director South Regional Director Institutional Relation Director Security Services Director 1 Security Services Director 2 Luis Vecchi Carlos Rinaudo Christian Faría Alberto Alesci Patricia Sclocco Omar Martín Marcos Gómez Patricia Lindblom Fernando Azpiroz Néstor Cruzado Juan Ratto Miguel Feroglio

20 18 Securitas Argentina Commercial companies that are part of Securitas Argentina s Group Securitas Argentina S.A. A.I.P.A.A. S.A. Seguridad Argentina S.A. Seguridad Cono Sur S.A. Vigilancias y Seguridad S.A. Securitas Servicios S.A. El Guardián S.A. Vigilan S.A. Videco S.A. Fuego Red S.A. Services/Clients Guards Supervisors / Service Chiefs Branch Managements Branch Managements Branch Managements Branch Managements Branch Managements Branch Managements Branch Managements Branch Managements CMT Bs.As. 1 A. Nieto Bs.As. 2 P. De Bueno Bs.As. 3 J. Cimmarusti Gated Comm. J. C. Cabrera Aviation V. Sosa Interior 1 Center L. Magistrali Interior 2 Littoral M. Tortul Interior 3 South F. Azpiroz Mobile S. Cruzado I. Technology M. Gómez D.S.S. 2-1 Miguel - Juan Feroglio Ratto Support Areas (including CSR) D.S.S. 1 - Juan Ratto General Manager Christian Faría

21 Securitas Argentina Services and Business Areas Current security requirements are complex and specialized and this is reflected in our wide range of solutions and in our organization. Securitas Argentina offers security solutions that meet the demands of multiple market segments. In order to satisfy different needs of our clients first we must understand their industry, business and security requirements. Once we prepare a complete risk analysis regarding our client and its needs, we identify and develop the correct and appropriate solution tailored to such needs. Finally, we offer a tailored service through our decentralized organization. We are proud to adapt our organization to the requirements of our client. Specialized guarding: a trained and specialized guard offering unique solutions. Through this service we offer security solutions for segments such as aviation, construction, gated communities and health, among others. Escort Services: modern vehicle fleets escort goods and persons from the point of departure to destination. Combined Services: through the combination of physical presence and electronic system we achieve high efficiency standards and economic costs. All under a sole agreement and a sole reference. Consulting and Investigations: security consulting and investigation permits to know the current status of security in the Organization and makes it easier to give advice on concrete solutions for each particular problem. It also helps to identify and analyze causes based on incidents that took place inside the Organization. This generates anticipation to unwanted events. As regards consulting services, we specialize in two fields: Seguridad Patrimonial [Property Security] and Security, Health and Environment. For more detailed information on our services visit: Mobile or controlled security patrols: it is a surveillance service in person that combines prevention and intervention. An itinerant guard performs control visits to facilities of several clients located in the same geographical area; Innovation and Technology: electronic security services satisfy the needs of those who seek to prevent risks in their businesses and their homes. As worldwide leader, Securitas places at the disposal of its clients its Innovation and Technology department, recognized in all countries where the group operates. It includes Project and Installation Services, Technical and Maintenance Services, Monitoring and Track & Trace.

22 20 Securitas Argentina 3.5. Main economic and business perspectives Main Perspectives Securitas Argentina 2011 Provinces where it operates Offices Employees 1 Market share Net Sales Salaries and social benefits Operating Costs Dividends and Interest from Loans Payment to tax authorities Reserves, amortizations and depreciation Local suppliers Payment to suppliers % Purchase budget through local suppliers Investment in efficient vehicles to reduce CO2 emissions ,1% AR$ AR$ AR$ AR$ AR$ AR$ AR$ % AR$ (1) Information related to employee data does not include information on the companies acquired during 2011 (Videco and Fuego Red) because management systems are not consolidated. They will be included in the next edition of the CSR Report.. Distribution of sales per region Province of Bs. As. 52% City of Bs. As. 29% Rest of the country 19%

23 Securitas Argentina 21 Operating costs per region Central 3% Littoral 3% South 12% City of Bs. As. - Bs. As. suburbs 82% Salaries and social benefits per region Province of Bs. As. 52% City of Bs. As. 29% Rest of the country 19% Payment to tax authorities Taxes 3% Minimum presumed income tax 1% Income tax 36% Gross income 60%

24 4. Corporate Social Responsibility in Securitas Argentina In Securitas Argentina we understand that Corporate Social Responsibility (RSC) is part of our business management, which is based on trust relationships. That is why we undertook the commitment to conduct businesses considering social, economic and environmental aspects. Our responsibility starts with those persons and teams that work with us. Our employees are our ambassadors and their actions, skills and character are essential to generate trust. In order to explain our CSR approach, we must look into the main foundations of security services: they give us tangible social and economic benefits not only for our clients but also for a wider group of people and communities. We offer security services that allow companies and communities to operate and grow. We offer security to persons that work, purchase and interact with our clients. Furthermore, we develop specialized services that permit our clients to be more efficient and minimize their environmental impacts. Improving our services by turning them more accessible and achievable is one of our main responsibilities. Our services help to generate a positive contribution to society and to offer more benefits to our stakeholders. To sum up, to carry out our business in a responsible way has a series of positive effects. We believe that responsible businesses are good businesses.

25 CSR in Securitas Argentina Our priorities We have defined some basic premises that help us to establish our priorities to create a responsible company. Our tasks within CSR must be efficient, realistic and profitable. In order to be efficient we must allocate resources into activities that may be successful and/or may make a significant difference. and responsibility is essential in Securitas Management Model. Our objective is to keep our efforts simple and local. At last, all that we do must be profitable. All efforts related to the CSR must contribute to our business profitability. We give priority to our activities taking into consideration their tangibility and visibility. We must be realistic as regards our capacity to manage the activities and initiatives proposed. The decentralization of decisions 4.2. Our management approach Our CSR is transversal to the whole organization and is focused on our people. We have values and documents that guide our daily decision making process, such as the Values and Ethics Code that allows us decentralizing responsibility. We believe that certain local initiatives are the most adequate way to undertake our corporate responsibility. The Board of Directors is responsible for fostering Securitas Argentina s good corporate citizenship. This management approach is based on the strong conviction that responsible businesses are good businesses. We believe that our responsible management model gives us tangible benefits: risks decrease, strengthening of social license to operate and become the company chosen by our clients. Another evidence of our commitment During the year 2011 we undertook the commitment to sign the Global Compact. We are one of the first Security companies in Argentina undertaking this commitment. The 10 principles of the Global Compact were for us an excellent first step to start analyzing and evaluating our Corporate Responsibility strategy. As a company, it is essential to interact with all our stakeholders. The initiative of the Global Compact Argentine Network in Argentina is an example of the articulation among different groups with an excellent result and for us it is a model to follow.

26 24 CSR in Securitas Argentina 4.3. CSR Report Preparation Process This is the third consecutive year that we prepare our CSR Report under the guidelines of the Global Reporting Initiative (GRI). This new edition of the Report was prepared pursuant to the guidelines set forth in the Guide s General Instructions G3.1. The report level corresponds to Application C Level. Through this Report we want to share with all stakeholders, in an orderly and systematic manner, the actions and initiatives implemented by the company. The Report, pursuant to the guidelines set forth by Securitas at global level, represents for us a management tool that allows us to improve year after year our commitment with responsible businesses. The process to prepare the Report received the support of different management areas that were in charge of obtaining and submitting information. The process commenced with the meeting to launch the project where the scope and implication of the Report were explained. Then, individual meetings were held in order to study the information to verify the level of compliance with 2011 objectives and collect information on new possible initiatives developed outside the scope of such objectives. 11 interviews were carried out. The information was supplemented with work forms prepared from indicators defined under the GRI methodology. The information included in this Report corresponds to initiatives implemented by Securitas Argentina during the fiscal year It comprises all operations of the company in Argentina (City of Buenos Aires, Province of Buenos Aires and other provinces). Securitas Argentina Reporte de Responsabilidad Social Empresaria 2010 Securitas Argentina Reporte de Responsabilidad Social Corporativa 2011 Securitas Argentina Memoria de Responsabilidad Social Empresaria Business Social Responsibility Report 2010 Business Social Responsibility Report 2011 Corporate Social Responsibility Report

27 CSR in Securitas Argentina Stakeholders and material issues In order to select the contents of the 2011 CSR Report the criteria set forth in the GRI methodology was taken into consideration. Both the selection of indicators and the initiatives reported are central issues for Securitas Argentina s management and its stakeholders. In order to decide such issues the following was considered: Particular characteristics of the business of Securitas en Argentina (size, extension, sensitive issues, among other issues). Particularities of stakeholders involved in the operations as regards composition and expectations. General challenges of the sector composed of companies that render security services. Values and Ethics Code of Securitas Global. Internal Policies of the company. The chart below shows the main stakeholders, expectations and formal dialog channels in the company: Stakeholders Expectations Dialog Channels Shareholders and Directors Clients Employees Regulatory Authorities Respect for values of the Company Compliance with legal framework Ethical and transparent management Compliance with legal responsibilities Specialization in different services Quality services Labor conditions Training and development Safety and health at work Compliance with legal framework Cooperation with authorities and government Coordination with other institutions Annual report / quarter video conferences / my Securitas / Executive Board of Directors meetings Regular visits by Operating Managers / Satisfaction survey Web Securitas InfoSecuritas / Intranet / My Securitas / Web Securitas / Performance survey Conferences for public-private relationship Participation in chambers of the sector Community Cooperation with the community Support to social organizations Assistance to employees families Programs with the community Web Securitas Annual Report Environment Management of environmental impacts Awareness on environmental care Annual Report Other companies of the sector Respect for all other companies of the sector Dialog to achieve understanding Participation in chambers of the sector Suppliers Purchase processes clear and transparent Compliance with payment terms Long term relationships allowing planning of commercial operations Audits Web Securitas Annual Report

28 26 CSR in Securitas Argentina 4.5. Actions to foster dialog with our stakeholders Securitas Argentina s commitment with sustainable management was reinforced during 2011 when a dialog meeting with stakeholders was held. This activity shows a significant advancement as regards the way the company intends to include into its policies this dialog tool. The main stakeholders were invited to take part in a dialog meeting to evaluate the 2010 BSR Report and build as from the feedback of such meetings its agenda and issues of interest for the following year. The facilitator of the activity was Forética Argentina and 20 participants, representatives of stakeholders identified in 2010 Report were present. Also entities from civil society and that foster BSR, local allies for specific programs and cooperators from different areas were present as well. The participants are mentioned below. Back, from left to right, Dolly Moruja, Bea Pellizari, Natalia Pereyra, José María Soneira, Gabriel Fusco, Patricia Sclocco, Cristian Pérez, Leonardo Hernández, Maricel Lonati and Ricardo Ábalos. Front, Stephanie Simonetta, Esther Parietti, María Laura Tortorella, Valeria Garrone, María Laura Paladini, Cecilia Fernández and Gabriela Leighton.

29 CSR in Securitas Argentina 27 5 The presentation was divided into five parts that made it easier to Exchange ideas and obtain feedback regarding the 2010 Report: Opening, Background of 2010 Report, Structure and contents of 2010 Report, Evaluation of 2010 Report as regards: extension, language, contents, credibility, design and support and distribution and Expectations for the 2011 Report. In general terms, all participants greeted the good balance and treatment of contents and design, pointing out its clarity and easiness to read. However, it was really significant the global evaluation of the meeting highlighting transparence, participation and opening to dialog expressed by the company in this first dialog meeting urging its continuity in the future. These comments encourage the company to continue and deepen its CSR program and sustainability, fostering values such as transparence, dialog, opening to diversity and communication. As regards this last issue, participants agreed on the need to give value to actions that Securitas Argentina carries out as committed actor in connection with public and private sector relationship, so as to give transparence, improve its image and build reputation. The dialog meeting with stakeholders was an excellent opportunity to receive feedback and be updated on demands and groups. Furthermore, it was an important tool to evaluate and communicate the progress attained directly with different sectors. For the company, these actions represent a challenge that Securitas is proud to undertake because we are aware that knowing the stakeholders and having permanent dialog with them ensures the sustainability of our actions. Surveyed suggestions and feedback Taking into consideration future reports, participants of the meeting agreed as follows: to dig into tools, manner of treatment and programs that favor integration and internal communication among all cooperators, to include other stakeholders not reported during 2010, such as suppliers, chambers of the sector and public entities.

30 5. Our commitments with CSR Responsible businesses are good businesses

31 Our commitments Employees Objectives 2011 Results 2011 Implementation of E-Learning platform Level 1 of training for security guards was implemented through the E-Learning Platform. Strengthening of career plans for security guards with potential within Securitas Argentina structure. 26 out of 64 participants of the Middle Management program between 2010 and 2011 were promoted among supervisors and service chiefs. Improvement of communication channels with our security guards in order to raise the level of participation in different programs and initiatives. InfoSecuritas was consolidated as the internal communication tool. In July 2011 we published its 100 edition. Opening of new branches of the Securitas Institute in the interior of the country. Securitas Institute in Bahía Blanca was inaugurated. Implementation of the program Seguridad Inclusiva [Inclusive Security]. The program was implemented in several services rendered by Securitas Argentina in Jumbo. Local implementation of the Program Héroes [Heroes]. The Program was effectively implemented. A total of 1997 security guards were rewarded. Expansion of the number of careers for the Scholarship Estímulo [Encouragement]. Careers related to Business Administration, Human Resources and Economic Sciences were included. 30 employees received the scholarship. Consolidation of the program to develop Middle Management. The participation in the Program was defined as a requirement to access to promotions within the structure and the career plan in Securitas Argentina. Implementation of the Program Becas 10 años [10 year scholarship]. 20 scholarships were granted, 10 of which were for elementary school students and 10 of which for high school students. Commencement of the Program Seguridad Inclusiva [Inclusive Security]. The program was implemented in the services rendered by Securitas Argentina in Jumbo. Incorporation of new tools to Securitas Induction Course The contents of the induction course were adapted to the Pocket format so that security Guards have the tools at any moment while at work. Scoring system to prevent risks from car accidents. Rewards and incentives for security Guards with low number of accidents and traffic fines (Mobile). The Scoring System was implemented. 3 security Guards with the best performance are chosen per month and receive the reward.

32 30 Our commitments Objectives 2012 To implement Level II and III at E-Learning Platform. To re-launch Securitas Code of Conduct. To increase the number of security guards that take part in Level I at E-Learning Platform. To open branches of Securitas Institute in Córdoba and Littoral. To launch Module II of Program Héroes [Heroes]. To implement a health life program for employees. To launch a specialization course for monitoring security guards. To implement the Defensor del Empleado [Ombudsman] and the Integrity Line. To implement the innovative ideas contest. To launch the Portal del Guardia Securitas [ Guards Portal]. Our employees are the most important resource. Securitas aims at being a solid, reliable and stable employer. That is why it fosters relationships based on mutual respect and dignity. We are convinced of the connection between the capacity of our employees and the result we obtain. To attract skilled persons, Securitas makes efforts to be an attractive employer offering good working conditions, fair salaries and opportunity for personal development. Due to the characteristics of our services, our business success is based on the quality of our employees. Their professional development is our main priority. Total employees per company Securitas + A.I.P.A.A Securitas Servicios S.A Seguridad Argentina S.A Seguridad Cono Sur S.A Vigilancias y Seguridad S.A El Guardián S.A Vigilan S.A Total Securitas Group Law 12297, regulating Private Security in the Province of Buenos Aries sets forth a maximum of 1000 guards per company as regards operating services in this province. 2. The information related to employees data does not include information on the companies acquired during 2011 (Videco and Fuego Red) because management systems are not consolidated. This information will be included in the next edition of the CSR Report. All employees are full time employees.

33 Our commitments 31 Employees distribution per category Management level Middle Management Operating Level Total Grupo Securitas Total distribution of employees per company Securitas + A.I.P.A.A % Securitas Servicios S.A. 0.33% Seguridad Argentina S.A % Seguridad Cono Sur S.A. 9.39% Vigilancias y Seguridad S.A. 3.69% El Guardián S.A. 7.00% Vigilan S.A % Employees geographical distribution City of Bs. As. and Suburbs of the City of Bs. As Rest of the country Total Securitas Group Employees average turnover (per month) City of Bs. As. and Suburbs of the City of Bs. As. 2,50% 4,62% 2,37% Rest of the country 2,58% 3,27% 2,92% Percentage of executive directors from local community 90%

34 32 Our commitments Compensations and Benefits Pursuant to the compensation and benefits policy, Securitas Argentina works actively to generate clear and open procedures for payments and rewards. Securitas Argentina offers to its employees a series of benefits that exceed regular remuneration: Staff OSDE Health Insurance Psychologist consulting room Scholarship Program Plant cafeteria Birthday present Special financial assistance Guards Program Héroes en Servicio [Heroes at Service] Psychologist consulting room Scholarship Program Scholarship Program for Guards kids Special financial assistance Assistance consulting room Securitas Argentina has a psycho-social consulting room for its employees which is composed of a team of psychologists and social workers. Through this team it gives support to its employees in case of crisis situations. They give advice, counseling, offer stability and support to all workers of the company rendering services in the City of Buenos Aires and in the Suburbs of the City of Buenos Aires. Employees under Collective Bargaining Agreements Collective Bargaining Agreement [CCT] No. 507/07 + SUVICO 95% 95% 95% Administrative Personnel Performance Evaluation (PE) % of employees that receive PE 5.00% 2.70% 5.00% Securitas respects the rights every employee has to choose if he/she wants to be represented by the labor union in case of collective bargaining negotiations and become part of labor unions always pursuant to local laws and rules. At the closing of this report, Securitas has signed collective bargaining agreements with Unión del Personal de Seguridad de la República Argentina - UPSRA (at national level) and Sindicato Único de Vigilancia y Seguridad Comercial, Industrial e Investigaciones Privadas of Córdoba - SUVICO (in the Province of Córdoba). There is no retaliation on employees in case they want to exercise these rights.

35 Our commitments 33 Labor Inclusion Programs Program Jóvenes con Futuro [Young with future] Securitas Argentina continued with its participation in the Program Jóvenes con Futuro [Young with future], fostered by the Ministry of Labor, Employment and Social Security (MTEySS), within the frameworks of its actions towards employment generation and labor inclusion and in 2011 eight participants of this Program became employees of Securitas Argentina. Program Seguridad Inclusiva [Inclusive Security] (Administrative staff + Inclusive Vigilance) One out of five homes in Argentina includes one person with some kind of disability. Unemployment rates regarding these persons exceed 75% and those who are employed have informal employments or are underemployed. There are negative opinions regarding such persons productivity. However, experience shows that whenever they find a job matching his/her skills and interests they can make huge contributions to the workplace. Within the framework of its commitment with inclusion, Securitas Argentina launched in 2011 the Program Vigilancia Inclusiva [Inclusive Vigilance]. This program with regional scope has the following goals: To develop a network with entities from civil society and the Government to foster at regional level the inclusion of disabled persons. To generate impact on the quality of life of the population. To identify and develop strategies of labor inclusion in Private Security services. Generar valor en la compañía Working wit disabled Competitive Human Inclusive labor Positioning of the persons makes Capital enviroment Company contributions to the company They contribute professional commitment, They contribute to create a labor enviroment that Positioning and acknowledgement of persistence and self- fosters diversity and Securitas as an innovative improvement capacity equal opportunities company with socially responsible projects This Program is subject to principles of public-private alliances and relationship. From its creation, we worked together with entities from the Public Sector and the Government in order to generate a dialog platform among different actors related to disabilities. In such sense, the public sector cooperates by giving advice in the recruiting process of the program and grants the necessary authorizations to include persons with motor disability whenever they are not contemplated within the scope of Law on Private Security No The Social Sector has a prominent role since it offers the possibility to share knowledge on the problem, disclose labor opportunities