Hakkapeliitta Way guides our operations
Sustainability is a natural part of our business: this means sustainable product development, safe and eco-friendly products, high standards of quality and taking into account various stakeholders. Sustainability is an important part of our management and action plans, and it is reflected in our everyday work.
Our values lead us to success
Our company culture, which we call the “Hakkapeliitta Spirit”, lays a solid foundation for building success and developing our company further. The basic elements of the Hakkapeliitta Spirit are our values, which guide and support the implementation of our strategy.
We have the skills needed to survive and excel, even in the most challenging circumstances. Our competence is based on creativity and inquisitiveness, and the nerve to question the status quo. We are driven by a will to learn, develop, and create something new.
We are quick and brave. We set ambitious objectives and perform our work with persistence and perseverance. We are dynamic and punctual, and we always make customer satisfaction our first priority.
We work in an atmosphere of genuine joy and action. We work as a team, relying on each other and supporting each other, offering constructive feedback when needed. We embrace differences, and we also encourage our team members to individually pursue winning performances.
Strategy of focus areas
Our company exists so that people would have the safest, highest-quality, and most eco-friendly tyres. We want to be the best in everything we do: a pioneer in making safe tyres for demanding conditions, a leader in key markets, the fastest-growing and most profitable tyre company in the world, and a work community with a unique company culture.
We revised our “strategy of focus areas” in 2015. The strategy directs the choices that we make. Our operations are guided by the group strategy, which acts as a basis for unit strategies, action plans, the measures that we implement and our management work. Based on our values and strategy, we have identified our Must Win Battles – the key development needs and targets that will keep us on the path to profitable growth. We build our success together through hard work and further improvement of our procedures and products. Our aim is to be the most ethical and profitable tyre manufacturer in the world.
1. Demanding conditions
As the northernmost tyre manufacturer in the world and an expert in challenging conditions, we promote and facilitate safe transport. In freezing blizzards or heavy summer rain, our tyres offer reliability, performance and peace of mind. We are the only tyre manufacturer that focuses on products and customer needs for demanding conditions.
2. Innovative core competence
We are focusing our core competence on a narrow product line, the replacement markets and three business areas: 1) passenger car, SUV and van tyres; 2) heavy special tyres and 3) tyre and car servicing. We develop and manufacture premium tyres whose unique innovations provide added value in different applications from forestry work to safe driving on highways.
3. The most satisfied customers
We want the users of our products and services, as well as our dealers, to be the most satisfied customers in the tyre industry. A committed and extensive distribution network and effective logistics help us ensure the good availability of our products throughout the peak season. The Vianor chain spearheads our distribution channels and its direct contact with consumers provides us with valuable information about the needs and wishes of the end customers.
4. Select markets
We are focusing on regions where the driving conditions are demanding due to the changing seasons. Our key markets are the Nordic countries and Russia, where we are the market leader in premium tyres. Central Europe and North America are other important markets for us in terms of profitable growth. We sell most of our tyres in the replacement markets.
Key strategic objectives
The focusing strategy establishes clear goals that we work towards with determination.
Market leadership and the best processes in the industry
- We are the market leader in premium tyres in the Nordic countries, Russia and other CIS countries.
- We have a strong market position in North America and Central Europe with our core products and with our special products internationally.
- We are the undisputed pioneer in winter tyre technology as well as the manufacturer of the best premium summer tyres and special tyres in the world.
- Our key processes and business networks are efficient and the best in the industry.
Profitable growth faster than the market
- Our annual growth exceeds that of the market.
- We continue to be the world’s most profitable tyre company. Our operating profit will remain the best in the industry, at 22% at a minimum.
- We have an efficient organisation with sales growing faster than our fixed costs.
- We offer the industry’s best products and services that help people drive more safely and comfortably.
- We know our customers and their wants and needs.
- For shareholders, we offer stable dividends and a consistent dividend policy.
- We are a valued and desired employer.
- Our personnel are skilled and highly motivated people who want to further improve their personal competence as well as our company as a whole.
Must-Win Battles in 2016–2018
The group-level Must-Win Battles that support our goals are the key challenges that we must overcome in order to advance on the path to profitable growth.
1. Be the first choice for consumers
Increasing consumer loyalty and satisfaction as well as our company and product awareness especially in growth areas.
2. Be preferred partner for customers
Investing in long-term partnerships with customers based on mutual benefit. Improving the quality of all services.
3. Manufacture world’s best tyres and services
Solid flow of innovations and world’s safest tyres. Growing portfolio of new services for sales support, distribution partners and consumers.
4. Reach strong growth in Central Europe and North America
Clear improvement in our brand recognition and market share. Gradual growth of our price position in Central Europe.
We have summarised our values, strategy, and goals in this one figure that depicts how we, together, build our success responsibly and further improve our operations every day.
Sustainability through value-based management
Sustainability is part of our company culture, strategy and goals. In order to ensure the continuous improvement of sustainability management and our operations, we have divided sustainability into five clear categories.
The principles that we implement throughout our business form the backbone of our corporate sustainability. They incorporate our voluntary sustainability commitments as well as our principles concerning ethical business operations.
In addition to sustainability management at the group level, our work on sustainability comprises four areas of operative management: World on Wheels, Economy, People and Planet.
Hakkapeliitta Way in corporate sustainability
The Hakkapeliitta Way category comprises five sustainability principles that are seen throughout our operations and connected to our company’s strategic goals and vision.
Transparent and comprehensive reporting
As a public company, we follow the statutory requirements and the rules of the stock exchange on the publicity of information that is relevant to our business. In order to meet our stakeholders’ expectations, we follow the principle of transparency in line with the Global Reporting Initiative guidelines and aim at meeting all of the reasonable requirements that our stakeholders have on corporate sustainability.
Business ethics and compliance with the laws and regulations
We follow the board-approved ethical guidelines in our operations throughout the group. The document has been published in several languages, and it specifies the ethical guidelines for our business, instructions for ethical issues and a procedure for the group personnel. While local and international documents provide additional instructions, the ethical guidelines establish a strong foundation and we expect all employees to follow them. This ensures ethical business practices at all of the levels of our operations.
We follow the law in letter and spirit in every country of operation. Wherever we conduct business, we follow the local laws and regulations as well as good Western business practices and the local customs. In addition to the law, our operation must follow the group’s internal rules and guidelines. We respect the privacy of our employees, and our employment is always based on clear and unambiguous employment contracts in accordance with the local legislation and any collective agreements.
Responsible purchasing of raw materials, goods and services
We follow the UN Global Compact principles as well as our own ethical guidelines, which also address the issues of responsibility in the purchasing chain. Furthermore, we require all of our raw material suppliers to adhere to our Supplier Code of Conduct and to have an ISO 9001 certified quality management system in place. We also prefer suppliers with valid ISO 14001 certification.
Good corporate citizenship
In global business and under constantly changing circumstances, identifying problems, obtaining the necessary information and making the right decisions may be challenging at times. However, we are committed to supporting good corporate citizenship, sustainable development and continuous improvement. We want to take care of our stakeholders, financial standing and environment as well as to produce premium products and offer first rate service.
Active stakeholder engagement in corporate sustainability
Active stakeholder engagement helps us to better understand our stakeholders’ expectations. Different stakeholders may have conflicting expectations towards sustainability in our operations. This poses a communication challenge in stakeholder engagement.
World on wheels
Product safety is essential for our business. Extreme weather phenomena that are caused by climate change increase the importance of tyre safety and especially contribute to the increased use of winter tyres. As a leading manufacturer of winter tyres, we have a special responsibility for making winter traffic better, safer and more eco-friendly. We are an expert organisation that influences both traffic safety and the rubber industry.
We aim to develop our business in order to ensure steady shareholder value and predictable future developments as well as to provide our employees with job security and personal development opportunities. The salaries and taxes that we pay support the structures of society and improve the quality of life for thousands of people. Furthermore, we focus our production on core products with a good margin and invest in the continuous development of quality, productivity and logistics. We must be able to produce high-quality products, provide excellent service and ensure timely deliveries.
Our company develops and maintains a company culture that promotes fair and equal treatment and respect. Everyone contributes to our profitable growth and success regardless of his or her position. As an internationally expanding company, our impact on our surroundings is increasing and we continue to be a significant job creator and developer of local infrastructure.
In line with the product life cycle approach, we pay attention to environmental aspects already when buying raw materials and designing our products. We work on ensuring the best possible safety, continuous improvement and sustainable development and aim for zero accidents in all areas of safety. We actively follow the development of environmental and safety regulations in Finland, the EU and Russia for anticipating the effects of pending legislation.
Learn more about the different areas of sustainability management and their materiality!