LEGRAND_REGISTRATION_DOCUMENT_2017

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CORPORATE SOCIAL RESPONSIBILITY (CSR)

Offering users sustainable solutions

carried out by independent service providers. The Strategy and Development Division analyzes these results and shares them with all countries. Meetings are held every two years with distributors to develop, monitor and discuss business relationships. Regular meetings are also held with product specifiers to discuss their expectations. Collaborative innovation The value and functional properties of the Group’s products are essential for customer satisfaction. They are involved in the Group’s innovation processes through shared creativity workshops, for example through the UCD (User Centered Design) project, which includes the end user in the product development process. Based on ISO 13407, the project offers a design approach centered on the user and how the product is used. Legrand has also introduced a “Future Home” program in which users participated in identifying major trends impacting on housing and its use, as well as emerging expectations around electrical products. The program has resulted in concrete innovative concepts which are now being analyzed by the Group’s SBUs (strategic business units). Responsible communication The Group undertakes to comply with responsible communication principles and codes for all information communicated (advertising, direct marketing, public relations, promotional campaigns) and all its tools (digital, booklets, brochures, etc.). The Director of Group External Communications, reporting to the Executive Vice-President Strategy and Development, is responsible for ensuring the implementation of these principles throughout the Group’s subsidiaries, with a dedicated team of more than 190 people. Local teams manage their own communications, in accordance with the regulations and, where there is no self-regulation body locally, communications are systematically checked for compliance with Group values and the specific cultural requirements of some countries and validated by the Group. For each international product launch, and for all Corporate Communication activities, traditional and digital communication is handled by Group External Communications, in accordance with Group rules. All communication must be approved by the Director of Group External Communications and his team. Communication tools – particularly the source files – are held in a database accessible only to the department’s communications officers and the communications officers of the Group’s subsidiaries. Compliance with Group rules is verified before these are distributed to subsidiaries, which may not adapt the creative concepts to the local context. The directors of subsidiaries are also briefed so that they can apply these principles to their own media relations. The Group has been found to be compliant with these principles and ethics since their introduction, with no occurrences of non-compliance.

surveys are also encouraged (74% of the Group’s sales covered, as against 65% in 2014).

2014 2015 2016

2017

2018

Target achievement rate*

109% 112% 104% 104%

* Calculated in relation to the average of the two highest achievement rates of the above four indicators, i.e. SOLUTIO and the service rate in 2014, the CRM and SOLUTIO in 2015, and the service rate, CRM and SOLUTIO in 2016 and 2017, compared with annual targets.

Customer satisfaction The availability of Group products for its customers is key to customer satisfaction. As a result, Legrand monitors the service rate for its different subsidiaries to measure the Group’s ability to fill orders from its customers in the desired quantities and time frame. This service rate is consolidated by the Group Supply Chain Department. The Group has introduced a standard system for enhanced customer relationship management . This has boosted customer satisfaction and loyalty by continually exceeding customer expectations. For example, 92% of Group sales are covered by a CRM (Customer Relationship Management) tool such as Salesforce. This incorporates a corporate social network, Chatter, which allows projects and information to be shared more widely. From a marketing perspective, it facilitates the reporting of market data. Subsidiaries’ Customer Service Departments have local responsibility for ensuring the satisfaction of their customers. These send comments or requests for product improvements to SBUs to inform the debate on product developments. The dissatisfaction monitoring software SOLUTIO provides a direct connection between the after-sales departments of each subsidiary, the quality departments of the SBUs and the central product risk management department. Information is shared in real time, and technical issues or customer dissatisfaction is registered immediately for optimized processing. At the end of 2017, 95% of Group sales due to have the SOLUTIO tool were already included within the reporting scope of the tool. In addition, satisfaction surveys are carried out at different levels: W multi-criteria surveys are carried out regularly by the Group’s subsidiaries to measure the brand perception, quality, price, service, etc. with customer panels or focus groups. Subsidiaries are encouraged to carry out these surveys annually, which is the case for the majority of subsidiaries having implemented them; W every year, the Group’s key distributors evaluate its performance and services (marketing, technical support, supply chain, distribution policy, cooperation). These assessments are

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REGISTRATION DOCUMENT 2017 - LEGRAND