Strategy and objectives – integral to the business model? Fibria 2009 Sustainability Report Basic Materials Brazil Sustainability Report 2009 Below the Executive Board, the levels involved include the Risk Management Board, which among other attributions defines the guidelines, resources and targets that guarantee the good functioning of risk management and promotes integration of risk management with Fibria’s management and planning cycles; the Risk Management Department that, among other attributions, prepares the plans and ensures implementation of risk management, taking into account all of the dimensions of the defined structure, which encompasses strategic, tactical and operating activities, evaluates the Company’s risks per business unit and portfolio, recommends the limits for each one of the risks to the Audit Committee in a manner that is consistent with the strategic objectives and tolerance to the defined risks, ensures maintenance of the risk management policy and checks up on compliance with the established limits; the business and functional area managers, who identify and manage the risks in their respective areas according to the mitigation strategies and implement the plans, following up with corrective and/ or preventive actions; and the corresponding business and functional areas that interface with the Risk Management Department. Anonymous communication – Fibria operates communication channels that are accessible to both internal and external public. The issues referring to the Code of Conduct, sent through these channels, are dealt with impartially and transparently, with a guarantee of confidentiality of information and preservation of the identity of the persons involved, seeking to foster a better business environment for everyone. Fibria established the figure of the Ombudsman, who is nominated by the Board of Directors and confirmed by the Executive Board of Officers, who regularly submits reports to the Audit Committee, to the outside auditors and to management itself. Through the Office of the Ombudsman it is possible to clarify doubts of interpretation and to submit denunciations regarding failure of compliance with the Code of Conduct, such as corruption, bribery, fraud, environmental aggressions, false information, inadequate accounting practices, inappropriate use of the Company’s assets, racial, color, religious, gender, physical or social discrimination and anti-ethical behavior and procedures. Fibria’s Code of Conduct was published in 2010. In 2009, VCP’s and Aracruz’s Communication and Ombudsman channels prevailed, linked to their respective Codes of Conduct. During 2009, 52 cases were dealt with by the Ombudsman channels, distributed by type: management attitudes, behavior and moral harassment (44%), suppliers (13%), Company property (11%), the environment (10%), conflicts of interest (8%), workplace health and safety (6%), customers (4%), communities (2%) and the use of electronic information systems (2%). Sustainable Value To ensure the growth and development of the businesses To be accepted by our stakeholders through constructive and long-lasting relationships To maximize the returns of the organization’s assets Mission/Vision Management Systems DIMENSION STRATEGIC OBJECTIVES Develop the renewable forest business as a sustainable source of life To consolidate planted forests as producers of economic value and to generate admired profit, coupled with environmental conservation, social inclusion, and improvement in the quality of life MANAGEMENT AND STRATEGIES Market To guarantee a better level of service according to each market segment To offer socially and environmentally responsible products and services To offer new, competitive applications for the forestry base Internal Processes To guarantee continuous investment in innovation, as a way of maintaining the competitiveness of the businesses To develop alliances that lead to implementation of the Company’s strategy To attract and retain qualified and committed human resources To develop an effective business intelligence in order to anticipate opportunities and minimize business risks To ensure operational excellence of processes People To develop leaders capable of meeting the needs of the organization’s level of complexity Fibria’s management indicators derive from the objectives presented in the Company’s strategic map, which was prepared using the Balanced Scorecard methodology. The management of Fibria’s indicators is based on the concept of management by goals (MBG). Using this management system, the long-term strategic plan is translated into targets and shortterm measures for the economic, social and environmental dimensions. TARGET STRATEGY GUIDELINE Objetcive + Value + Deadline + MEASURES Fibria I Sustainability Report I 2009 26 27 pp 26-27 All of the group strategy elements are clearly illustrated diagrammatically with the overall sustainability goals outlined in conjunction with the financial objectives of the business. The Group’s management structure for delivering on the strategy is also explained including how the different internal stakeholders report to each other. 32 Integrated thinking in reporting
