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In 1989 our investor relations activities continued to expand, through better communi
cations with large and small shareholders. Last year Ahold held presentations for invest
ment professionals in The Netherlands, the United States, the United Kingdom, France
and - for the first time - in Japan. This has contributed to the growing interest in Ahold
shares on the part of investors.
We consider it important to further calibrate our future activities in this field to best
serve each of the various types of shareholders. We also feel that it is desirable to
increase the international element of our shareholder group.
In 1989 a sponsored American Depositary Receipt (ADR) program was established
for US investors, making it easier to invest in Ahold shares. Ultimately we intend to seek
a listing for the Ahold share in the US.
Environmental Affairs
In 1989, concern about the environment assumed a prominent place in Dutch society.
These concerns are so urgent and universal that they cannot be ignored, and Ahold has
accepted its social responsibility in this field. Thanks to the efforts of the corporate Envi
ronmental Affairs department established in 1988, all operating companies have made
at least a modest start in grappling with environmental issues. Their activities have
ranged from separating waste materials to facilitate recycling to selling ecologically
sounder products. As of July the Albert Heijn stores stopped selling packaging
containing harmful CFCs (chlorofluorohydrocarbons). In addition, efforts have begun
to curtail the use of coloring agents and PVC packaging. The Albert Heijn chain aims to
have replaced all PVC packaging by June 1, 1990. At 1989 year end, the Albert Heijn
chain introduced a 'Green' label on its shelves, as a signpost to the consumer; it appears
on private label products formulated with particular sensitivity to the environment. This
approach addresses social concerns while preserving the important principle of letting
the consumer make his or her own choice.
In the years ahead, concern for the environment will continue to receive attention
throughout the Ahold organization.
Personnel
In 1989, the average number of employees rose from 78,854 to 83,140. Expressed in full-
time equivalents, this amounts to a 5.4% increase to 52,188.
In The Netherlands, Ahold employed on average 44,761 people, a 3.6% rise as compared
to 1988. On the basis of full-time equivalents, this was a 5.3% increase to 25,162. The
employment growth was caused chiefly by the rise in the sales volume.
About 56.2% of Ahold employees work part-time, including 58.4% of female employ
ees. In 1989 full-time jobs increased at a proportionately faster rate than part-time
employment; relatively more women have filled full-time positions.
In recent years, autonomous growth at Ahold has created over 1,500 new employee
positions annually. In effect each year we add the equivalent of a medium-size company
to our payroll, thus making an important contribution towards the growth of job oppor
tunities in The Netherlands. Unfortunately, the ensuing rise in personnel expense does
not automatically translate into increased productivity. This forces us to constantly look
for ways to improve efficiency.
Ahold subscribes to an employment policy that aims at helping less qualified job
applicants find productive work. However, we do not believe that their position will be
improved through government-mandated quota systems, sanctions or penalties. Indeed,
such measures have a paralyzing and stigmatizing effect and are therefore counter-
productive. Only through programs emphasizing careful education, training and super
vision will it be possible to bring these people into productive positions.
In 1989 - following the example set by Albert Heijn in 1988 - Ahold increased its
emphasis on women, within its total human resources policy.
Absenteeism at Ahold, like the national average, has slightly increased. It varies
widely among the operating companies. The highest rate of absenteeism is found
among distribution, meat processing and production personnel. By taking preventive
steps, Ahold hopes to reduce absenteeism in these sectors, too.
15
In 1989 Ahold made a
modest start in various
initiatives to enhance
the environment. Arie
de Lint, Vice President
Environmental Affairs,
does not hesitate to des
ignate i 989 as year of
the environment for
Ahold: 'Our involve
ment is not limited to
selling ecologically
sounder products; it
also extends to the way
the business is run.
Among the operating
companies, environ
mental awareness has
grown fast. The wait-
and-see attitude has
been replaced by an
active involvement.
It is important to keep
abreast of develop
ments. The environment
needs to become an
integral part of corpo
rate policy.
Gregor Witteveen (I)
and Frans Hent
