At the beginning of 2009 uncertainty reigns and it is hard to predict when we will see the upturn the world is waiting for. Nevertheless, we can maintain that the way out of the crisis will be found in interaction between politics, business and individuals. The mutual interdependence of business and society has been highlighted and provides a basis for new thinking and dialogue that can lead to progress in a long-term perspective.
The crisis has a great deal to do with confidence; confidence in banks and financial institutions, confidence in the financial resilience of companies, and confidence in stock exchanges and markets. Insight into companies' governing mechanisms and reliable reporting are essential to the recovery of such confidence.
Corporate responsibility is about behaving responsibly in all relationships. In times of crisis, this is more important than ever. Corporate responsibility is most effective when it is integrated into the way we run our business – into our monitoring of suppliers, our relations with employees, our attitudes to environmental issues and our corporate governance. We work systematically on improvements that will generate added value for Orkla shareholders, our employees and the society of which we are a part.
The crisis has necessitated dramatic restructuring in many places, including in our Group. But restructuring is not new to Orkla. Our story began in 1654, with mining at the Løkken Works in Sør-Trøndelag County, which provided the basis for the first three hundred years of the company's history. The way in which the company managed to readjust when the mine was no longer viable deserves respect. This is a good starting point for reflecting on Orkla and the issue of corporate responsibility.
In 1987, after 333 years, the mine was closed down. Although the Group had acquired more strings to its bow in the meantime, Orkla continued to invest in the local Løkken community, in the seed corn business and local business development. The company helped to look after the buildings and the inhabitants. Today this has become a highly viable business that provides both jobs and profit, to the benefit of the local community and the Orkla Group.
Today, companies are expected to operate responsibly. Profitable business development is not sustainable in the long term without good corporate governance systems, environmental control, respect for workers' rights and a conscious attitude to corruption.
I hope this report will provide greater insight into our companies and help to inspire confidence in Orkla's businesses. Sustainable development means that we must operate in a way that is viable in the long term – in relation to the environment, natural resources and, of course, our own employees.
On the basis of Orkla's Goals and Values, active dialogue with employees and the community, and the recommendations laid down in the UN Global Compact, Orkla feels responsible for managing its development in a way that balances economic, environmental and social considerations as well as possible.
We must ensure this while at the same time running a profitable company. Only then will we be able to deliver long-term value creation – in the widest sense.
Dag J. Opedal
President and CEO
Orkla ASA