Overview
During 2005, ABB deepened the implementation of its social policy and for the third successive year continued to focus strongly on health and safety performance.

An ABB Executive Committee member chairs a steering group responsible for supervising the group-wide implementation of ABB’s social policy, which includes the health and safety policy. During the year, health and safety was also monitored by a sub-committee of ABB’s Executive Committee.

Implementation of the 13 principles of the ABB social policy are covered by group function heads according to their areas of expertise. For example, health and safety is covered by the group function for Sustainability Affairs, business ethics by Legal and Compliance, ABB in society by Corporate Communications, suppliers by Supply Management, and labor principles by Human Resources.

ABB continued to implement the internationally recognized OHSAS 18001 management standard in all business units, including manufacturing, office work, construction projects and service. Progress on introducing the standard determines part of senior managers’ remuneration via a scorecard performance assessment system. By the end of 2005, 96 percent of all business units achieved at least 75 percent implementation of occupational health and safety management systems.

ABB continued its efforts to encourage its main suppliers to follow the principles laid out in the group’s environmental, social, and health and safety policies. For example, ABB and its international freight-forwarders for sea and air are jointly implementing effective and practicable guidelines covering environmental and social performance objectives and requirements, to be contractually binding on all parties.

Business ethics compliance programs continued throughout the year, targeting all employees involved in business transactions.

The group’s corporate social responsibility policies and activities are strongly influenced by stakeholder dialogues conducted at corporate and country level. In 2005, stakeholder dialogue was conducted at corporate level and in 15 countries.

An ABB working team has been addressing the broader issues of equal opportunity, and how to encourage the promotion of women and people from minority groups to positions of greater responsibility. ABB in Switzerland now has a woman as its country manager.

During 2005, ABB deepened its engagement on the responsibilities of business for human rights. ABB remains a member of the Amnesty International’s Business Group. It participated in its work and took advice from Amnesty on human rights issues.

ABB also continued as an active member of Business Leaders’ Initiative on Human Rights (BLIHR). During the year, ABB contributed to the development of “A Guide for Integrating Human Rights into Business Management,” which is a joint publication of BLIHR, the Global Compact, and the High Commissioner for Human Rights.

This report on our social performance has been expanded each year and is in line with the GRI Guidelines relevant to ABB’s activities. The GRI reference numbers are shown against each indicator.