Sustainability A Framework for Creating Trust

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SustainabilityA Framework for Creating Trust

• Jeroen Terstegge
• Privacy Officer and Legal Counsel
• Royal Philips Electronics

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Disclaimer

• The contents ofthis presentation and my
  speechdo not necessarily reflectthe views or
  the position ofthe Board of Management
  ofKoninklijke Philips Electronics N.V.

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Topics

• Philips Sustainability Program
• The Philips Privacy Code of Conduct
• Privacy-friendly products (RFID)

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Basic Philips Info

• Dutch (est. 1891)
• 5 Product Divisions
• Consumer Electronics
• Domestic Appliances and Personal Care
• Lighting
• Semiconductors
• Medical Systems
• Presence in over 73 countries
• Sales EUR 31.8 Billion
• Employees 164.000

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Sustainability

• Meeting the needs of the present generation
  without compromising the ability to future
  generations to meet their own needs.

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Sustainable Development

• The simultaneous pursuit of economic prosperity,
  environmental and societal quality and social
  equity.

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Its in Our DNA

• True to our origins, today we strive to build a
  business of globally repeatable successes, always
  mindful of the social, environmental and economic
  impact of the choices we make.
• Gerard Kleisterlee, CEO and Chairman,Royal
  Philips Electronics

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Sustainable Entrepreneurship

• Achieve sustainable economic growth
• Be a leading eco-efficient company
• Create meaningful technology
• Improve the quality of life for everyone
• Outward-looking international perspective

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Philips Sustainability Policy
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Philips Sustainability Program

• Environment
• Product Safety
• Health Safety
• Equal Opportunity
• Diversity
• Child Labour
• Financial Ethics
• Health Care
• Education
• Privacy

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Deliver on Commitments

• Sustainability Framework
• General Business Principles
• Philips Values
• Sub-policies
• ILO conventions
• OECD guidelines
• Quarterly Monitoring
• Violations Reporting
• External Audit
• Public Accountability

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The Philips Privacy Code

• Safe Harbor for personal data
• Mandatory for all Philips businesses globally
• High minimum level of protection
• Specific Privacy Policies(sub-policies)
• Privacy Governance Structure
• Privacy Compliance Officers
• Privacy Impact Assessments
• Periodic performance monitoring
• Public reporting

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Why We Need a Code

• Transforming into One Philips (TOP)
• Globalization / Regionalization
• Shared Service Centers
• Global Transborder Data Networks
• Global Purchasing Agreements
• Centralization
• Customer and HR Information Systems
• Uniform Policies on Marketing and HR
• Outsourcing
• Customer Care
• IT

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Creating Stakeholder Trust

• Stakeholders
• Customers
• Employees
• Investors
• Contractors
• Governments
• Management
• Sustainability Report
• Openness and transparency
• Accountability

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Perfect or Good Enough?

• The new Golden Rule in Corporate Governance
• Comply or disclose why you dont comply
• Sarbanes Oxley Act (USA)
• Commission Tabaksblatt(The Netherlands)

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• RFID Radio Frequency Identification

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Radio Frequency Chips

• Philips is market leader in RF-technology
• RF Near Field wireless communication
• RF-ICs and -readers can be found in
• Smart Cards
• Smart Labels
• Security Systems
• Payment systems
• Ambient Intelligence

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What is a Smart Label ?
A paper labelwith RFID inside
an antenna, printed, etched or stamped ...
and a chip attached to it
on a substrate e.g. a plastic foil ...
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Use of RF Technology
Airline Baggage Tags
Parcel Services
Mobile Communications
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Use of RF Technology
Airline Baggage Tags
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Use of RF Technology
Airline Baggage Tags
Parcel Services
Mobile Communications
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Use of RF Technology
Airline Baggage Tags
Parcel Services
Mobile Communications
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Use of RF Technology
Airline Baggage Tags
Parcel Services
Supply Chain Management
Mobile Communications
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Use of RF Technology
Road Toll
Airline Baggage Tags
Parcel Services
Mobile Communications
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Use of RF Technology
Airline Baggage Tags
Parcel Services
Mobile Communications
Building Access
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Use of RF Technology
Airline Baggage Tags
Parcel Services
Mobile Communications
Ticketing
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Use of RF Technology
Airline Baggage Tags
Parcel Services
Mobile Communications
Rental Libraries
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Use of RF Technology
Airline Baggage Tags
Parcel Services
Mobile Communications
Vehicle Access Security
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Use of RF Technology
Airline Baggage Tags
Parcel Services
Mobile Communications
Animal Tracking
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Use of RF Technology
Airline Baggage Tags
Parcel Services
Mobile Communications
Secure Network Access For E-business Online
Services
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Use of RF Technology
Airline Baggage Tags
Parcel Services
Mobile Communications
Public Transport
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Use of RF Technology
Airline Baggage Tags
Parcel Services
Mobile Communications
Asset Tracking
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Use of RF Technology
Airline Baggage Tags
Parcel Services
Mobile Communications
Banking Payment
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Meaningful Products

• Range
• Long range UHF ICs(up to 25 feet)
• Short range ICs(approx. 4 feet or less)
• Privacy solutions
• StatusReady, Quiet, Killed
• Encryption
• Read / Write Protection
• Passwords

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Philips Position on RFID and Privacy

• Smart label technology offers companies the
  benefit to controltheir production to optimize
  their flow of goods or to securetheir stock.
  Smart labels should contain product information
  only.
• As a technology provider, Philips provides the
  option to either use or disable the functionality
  of the IC outside of the shop environment.
  Philips' ICs have a feature that enables the
  retailer to disable the IC once a product has
  been purchased.
• The retailer decides to what extend and how the
  IC's are part of his business and marketing
  strategy. If he chooses not to make use of the
  privacy and security features offered by Philips,
  it is his responsibility - which in many
  countries is a legal obligation - to provide the
  customer with clear information about the way he
  uses the IC's, the effects this has on the
  customer's interests and the possible choices to
  be made by the customer.

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Whats Next..?

• Adopt and approve the Philips Privacy Code
• Develop monitoring, compliance andreporting
  tools
• Raise awareness and provide training
• Find solutions to privacy risks

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What Do We Expect?

• Management / Staff
• Philips Values
• Data Subjects
• Preferences
• Contractors
• Cooperation
• Supervisory Authorities
• Open dialogue and support

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Dont Surprise the Customer?
Trust Us, We Will Surprise You