Social
TERIBEAR moves Mladá Boleslav
For the ninth time now, the Company has provided its support to TERIBEAR, a charity that aims to collect money through healthy exercise in order to help disadvantaged children from children’s homes with their education and with contact with their biological families. All those interested took to the track together in Štěpánka Park in Mladá Boleslav. The Company supported the get-together with a sum of CZK 400,000 and by having more than 300 employees and their nearest and dearest at the starting line, and with others helping with the organisational side of things.
In 2023, Škoda Auto launched the Health Matters campaign.
Maintaining the strategic course
The main topic in 2023 was the gradual implementation of the Company’s strategy of diversity: Next Level Škoda Diversity Strategy 2030, introduced in 2022. The Company took steps aimed at achieving the set targets and commitments, particularly in the area of equal opportunities and gender balance, and raising general awareness of Škoda Auto as a responsible employer and partner, both internally and among the public.
Active all year round
Support of diversity, equal opportunities, and inclusion is the foundation on which the Škoda Auto strategy is built. Škoda Auto’s approach to equal opportunities is defined in its Code of Conduct. Back in 2019, the Company signed the European Diversity Charter, actively supporting acceptance, equal opportunities, and cultural diversity, and it has also signed up for the Pride Business Forum. Then, in September, it joined almost 70 companies in sending the Prime Minister of the Czech Republic, Petr Fiala, an open letter calling for support for the adoption of a law on marriage equality.
Škoda Auto also focused its attention on other diversity issues, such as the equal representation of women and men, a family-friendly policy, cross-generational cooperation, alternative forms of work, and employee engagement. With the support of its social partner the KOVO Unions, Škoda Auto aims to make sure that the percentage of the lesser-represented gender in management is at least 25% by the year 2030. To support the goal the Company introduced several tools and measures. In addition to recruitment campaigns, setting and managing targets in all areas, and optimising talent for management, the Company also runs the oman to Woman mentoring programme, in which, for example, experienced female managers mentor younger female talents, and it also runs several programmes at individual areas of the Company in support of and motivating women on their career paths.
Škoda Auto achieved the planned values of 24.6 in terms of the main target of the “Diversity Index”, internationalisation in management at the end of 2023 stood at 31% and the percentage of women in management reached 18.3%.
| Women in Management - Goals | 2024 | 2025 | 2030 |
| Share of women in management in the total number of managers | 18.2% | 20% | 25% |
As part of its family-friendly Policy, the Company provides active support to parents before going on maternity or parental leave, and when returning from it, and it keeps in touch with them throughout. For example, it organises events for parents and makes it possible for them to attend training sessions or pick up fresh information from a special section on the employee intranet, the idea being to make their return to work as smooth as possible.
Celebrating that all of us are unique: the Škoda Enyaq Coupé Respectline
In 2023, Škoda Auto introduced the Škoda Enyaq Coupé Respectline, the collective work of employees from different departments at Škoda Auto. The car is characterised by its unique exterior and interior design elements, a reference to the importance of protecting human rights and of promoting respect for all people and for the environment. The base is an all-electric production Škoda Enyaq Coupé, which has been enhanced with a striking colour scheme and distinctive interior design details. The original white colour, symbolising the unity of all life on earth, has been overlaid with coloured elements to create a colour transition in countless shades – just as colourful and boundless as life itself. The idea of the car is to express support for an equal and fair approach to all, irrespective of origin, nationality, age, sex, belief, sexual orientation, gender identity, or any other difference.
“The topics of equity, diversity and inclusion are increasingly in the spotlight, which is important news for individuals and society as a whole. Having respect for one another and for each person’s uniqueness is the prerequisite for mutual understanding. And this leads to many other positive values, be they in interpersonal relationships, corporate culture, or even in improving the performance of individual teams or entire companies. It’s great that we have managed to incorporate these values into the Škoda Enyaq Coupé Respectline in collaboration with colleagues from other departments, and I hope that its message will reach as many people as possible.”
Martina Zimmermann Expert Diversity Coordinator at Škoda Auto
Policy and ambitions to concern the Company’s own workforce are aligned with the social sustainability strategy. For more details see Social Sustainability Strategy.
Promoting employee flexibility
Promoting flexibility within its own workforce was again one of the main priorities at the Company in 2023. Promoting modern forms of work is an inherent part of the Company’s Next Level Škoda Strategy 2030, which emphasises increasing the number of shared positions and increasing the number of part-time positions. Part-time positions mainly support parents and employees who are carers and need a better work-life balance. Škoda Auto listened to more than 200 employees in 2023 and satisfied their requests to work part-time. At the same time, it identified around 30 positions which were shared by two employees working part-time.
In 2023, around 9,500 employees whose work allowed it took advantage of mobile work – another important way of supporting flexibility.
Activities linked to occupational safety and health play an important role in efforts to improve the general quality of life among Škoda Auto employees. What is more, employee initiatives are designed to enhance the positive social impact of Škoda Auto and foster a sense of solidarity among employees.
The ZEBRA initiative specifically strives to engage employees in activities aimed at innovation and improvement, which, for example, help continually improve their working environment, safety, and ergonomics, see ZEBRA.
Healthy employees in a safe working environment.
Employee-related topics were assessed as important to the Company in the dialogue with stakeholders. The Company’s relationship with its employees and care for their health were among the specific significant issues considered. See Sustainability Strategy.
At the same time, employees are an integral part of the Risk Management System, coming as they do under the category of HR risks (e.g., health and care for employees); see Risk Management System.
Regular communication with employees is the key way of helping the Company prevent risks and mitigate impacts in relation to its own workforce. The main issues covered in ongoing communication are employee relations, working conditions, remuneration and collective pay agreements, vocational and professional training, personal development and social engagement, diversity, health, and ergonomics.
The Stimmungsbarometer – an employee satisfaction survey
The Group-wide employee satisfaction survey – the “Stimmungsbarometer” – makes it possible to collect feedback from all employees at the more than 150 companies in the Volkswagen Group in a way that is fully digital and entirely anonymous. Škoda Auto joined the survey for the fifteenth time in 2023.
The questionnaire consists of 24 questions, thematically divided into five blocks, which are rated on a scale with options ranging from “strongly agree” to “strongly disagree”. Given the one-year interval of the survey, a positive trend of increasing employee satisfaction can be observed over the years. This is largely helped by active ongoing work with results by managers and employees alike. This helps improve the mood and the environment in teams and thus positively influences the results of subsequent years of the questionnaire.
The principal aim of collecting feedback from employees is to assess satisfaction and identify risks or negative impacts on employees. Employees get to know the results of their feedback from their superiors, with whom they also jointly identify topics for improvement. Furthermore, the communication is run via employee intranet, employee newsletters, and other internal communication channels.
Issues requiring attention are identified mostly in teams from team results and from discussion of those results. Teams take measures to improve situations together, and monitor their implementation and benefits during the follow-up process.
Structure of employees by citizenship in 2023 (%)
| Production employees | Technical - administrative employees | Management* | Senior management** | |||||
| Czech | 18,950 | 74.55% | 11,020 | 94.58% | 684 | 87.36% | 255 | 81.99% |
| Polish | 3,084 | 12.13% | 12 | 0.10% | 0.00% | 0.00% | ||
| Slovak | 1,544 | 6.07% | 308 | 2.64% | 25 | 3.19% | 10 | 3.22% |
| Ukrainian | 1,146 | 4.51% | 39 | 0.33% | 1 | 0.13% | 1 | 0.32% |
| German | 0.00% | 114 | 0.98% | 59 | 7.54% | 39 | 12.54% | |
| Other | 694 | 2.73% | 159 | 1.36% | 14 | 1.79% | 6 | 1.93% |
| Total | 25,418 | 100% | 11,652 | 100% | 783 | 100% | 311 | 100% |
* Management is a subgroup of Technical - administrative employees
** Top management is a subgroup of Management
Structure of employees by citizenship in 2022 (%)
| Production employees | Technical - administrative employees | Management* | Senior management** | |||||
| Czech | 19,599 | 76.67% | 10,841 | 94.64% | 652 | 86.02% | 251 | 80.45% |
| Polish | 2,925 | 11.44% | 14 | 0.12% | 2 | 0.26% | 1 | 0.32% |
| Slovak | 1,541 | 6.03% | 290 | 2.53% | 26 | 3.43% | 12 | 3.85% |
| Ukrainian | 897 | 3.51% | 40 | 0.35% | 2 | 0.26% | 0.00% | |
| German | 2 | 0.01% | 114 | 1.00% | 60 | 7.92% | 40 | 12.82% |
| Other | 598 | 2.34% | 156 | 1.36% | 16 | 2.11% | 8 | 2.56% |
| Total | 25,562 | 100% | 11,455 | 100% | 758 | 100% | 312 | 100% |
* Management is a subgroup of Technical - administrative employees
** Top management is a subgroup of Management
Structure of employees by citizenship in 2021 (%)
| Production employees | Technical - administrative employees | Management* | Senior management** | |||||
| Czech | 20,007 | 77.46% | 10,825 | 94.59% | 659 | 85.92% | 257 | 79.81% |
| Polish | 2,902 | 11.24% | 21 | 0.18% | 2 | 0.26% | 1 | 0.31% |
| Slovak | 1,693 | 6.55% | 286 | 2.50% | 22 | 2.87% | 8 | 2.48% |
| Ukrainian | 598 | 2.32% | 32 | 0.28% | 2 | 0.26% | 0 | 0.00% |
| German | 2 | 0.01% | 120 | 1.05% | 63 | 8.21% | 47 | 14.60% |
| Other | 627 | 2.43% | 160 | 1.40% | 19 | 2.48% | 9 | 2.80% |
| Total | 25,829 | 100% | 11,444 | 100% | 767 | 100% | 311 | 100% |
* Management is a subgroup of Technical - administrative employees
** Top management is a subgroup of Management
Remuneration and Employee Benefits
Škoda Auto has in place an equal pay system, which ensures that female and male employees in the same or similar positions are paid the same. This principle is applied globally throughout the Group. A Collective Agreement, valid for all core staff at Škoda Auto in the Czech Republic, sets out employees’ wages. The pay system is made up of fixed basic wage and variable wage components. The Company also provides additional payments, for example, for overtime work, being on-call, or working on public holidays. The wages paid for a standard workweek will not drop below the relevant national or trade-union minimum wage in the relevant country. The remuneration policy draws on the Labour Code and other regulations in accordance with Czech legislation.
The Collective Agreement applies to all employees at Škoda Auto who have a valid employment contract with Škoda Auto, and to Agreement on Work Activity (dohody o pracovní činnosti) and Agreement on Work Performance (dohody o provedení práce). However, employees with agreements to work outside of an employment relationship are not covered by the Collective Agreement when it comes to rights relating to termination of employment and remuneration. The Agency Employment Charter applies to all agency staff – that is, employees who have signed an employment contract with an employment agency that temporarily assigns those employees to work for a contractually set amount of time under the supervision and guidance of the user, Škoda Auto, as part of a “Master Vendor” system. This is valid for an indefinite term.
Employee benefits
Škoda Auto provides a wide range of benefits to all core staff, irrespective of whether they work full-time or part-time. The benefit system has been modernised to emphasise digitalisation, flexibility, and accessibility, targeting the individual needs of each and every employee.
The most commonly used employee benefits are:
— Škoda Cafeteria Benefits
— Contribution to the Contributory pension scheme
— Contribution toward meals at restaurants on the grounds of the plant
— Working anniversary reward
— Contributions toward recreation or recondition stays in a spa
— Interest-free loan for housing or for buying a Škoda car
— Operating lease for Škoda vehicles
— Support for sporting activities
— Preventive health programme
In 2023, the social fund budget for benefits exceeded CZK 450.7 million. In accordance with the Agency Employment Charter, the Company also provides a variety of attractive benefits to agency staff, such as discounted prices on cars and accessories or participation in selected training sessions.
Social fund budget for benefits 2023
| Purpose of drawing | in thousands of CZK |
| Recreation and recondition stay in spa | 164,280 |
| Working anniversary | 114,195 |
| Contribution when a child is born | 16,000 |
| Social assistance | 47,300 |
| Catering | 108,090 |
| Nursery allowance | 800 |
In terms of ensuring the protection of workers across its value chain, Škoda Auto is fully committed to its corporate human rights responsibility, see Human Rights. The Company’s approach complies with general UN principles in relation to business and human rights, which refer to the Universal Declaration of Human Rights, the ILO Declaration on Fundamental Principles and Rights at Work, and the OECD Guidelines for Multinational Enterprises.
Due diligence on human rights
When managing its suppliers, Škoda Auto follows a sustainable approach and puts particular emphasis on protecting those groups of people at high risk of violating human rights. To this end, it employs the due diligence processes set out in its guidelines. In this context, due diligence concentrates on continually identifying risks and on setting preventive and alleviating measures. The implementation of the Human Rights Focus system means that the Company is able to effectively respond to serious threats to human rights and the environment throughout its supply chain. This system draws on internal analyses and enables the Company to target those parts of the supply chain where the risk of a negative impact on human rights is particularly high.
Raw-material supply chains
The Company shows extreme caution when managing raw-material supply chains, in particular those that might come from an area affected by conflict and/or from high-risk areas. It bases its approach on OECD instruction for due diligence in this respect. Among the key aspects of this approach are the management, identification, and prevention of risks, a system of checking organisations involved in extraction and refining, and tools for conveying information and communication. In this way, the Company makes sure that its raw-material supply chains are based on ethical and responsible principles and that it does not support conflict or unethical practices when sourcing raw materials. These efforts comply with international instructions and standards and contribute toward a more sustainable approach to extracting raw materials.
Risks and impacts assessment
Some of the most pressing risks in relation to human rights were identified in deeper supply chain linkages. Škoda Auto systematically minimises such risks by sticking to an approach of responsible sourcing and implementing detailed processes of in-depth checks of maintaining human rights. The Company also actively engages with its suppliers beyond first-tier suppliers to ensure social sustainability throughout its value chain. The Company’s suppliers are assessed for sustainability using the S-rating see Business Conduct.
Consumer protection is an integral part of Škoda Auto’s business activities. The Company is committed to complying with all legal and internal regulations relating to consumer protection.
All input and complaints received from customers through various communication channels (e.g., email, post, Infoline, car dealers, importers, and other Company units) are processed in the Customer Relationship Management (CRM) system. The Company has specific units responsible for addressing such input. Each case is handled on an individual basis. Škoda Auto always takes specific circumstances into consideration. The special needs of customers who might be particularly vulnerable and/or marginalised are dealt with individually (for instance, a car with automatic transmission or with some
other adjustment is offered to a disabled consumer).
Škoda Auto stresses the quality and availability of services for customers and works continually on improving them. For example, the CAI (Conversation Artificial Intelligence) Solution for CIC (Customer Interaction Center) project was launched in 2023 to apply conversational artificial intelligence
to customer processes, such as support for the international call centre for digital services.
Škoda Auto also collaborates with customers by regularly monitoring customer satisfaction with the help of various studies and Company applications. Customer experience and satisfaction are monitored in an international study carried out throughout the Group. This study aims to learn about customer satisfaction with a product, the after-sales service, and the dealership. As such, Škoda Auto has recently significantly improved its rating through projects such as Škoda Customer Xperience.
Special attention is paid to the quality of after-sales services. Satisfaction with the services of the servicing network is regularly monitored. Within one to three days of taking their car back from the repair shop, customers are contacted by email or SMS and asked to fill in a basic satisfaction questionnaire. The results of the questionnaire are immediately written into satisfaction reports, making it possible for the Company to monitor the evolution of the customer experience in real time. Most attention is paid to those customers who were not entirely satisfied with their most recent visit. These customers are contacted by phone within a maximum of 24 hours and are provided with sufficient explanation and support in resolving the issue.
The Customer CentriCITY project was launched in 2021 with a view to putting the customer at the heart of the Company’s thinking and decision-making. Customer insight and feedback are important to Škoda Auto not only in the final product phase, but also during the development phase.
Škoda Auto utilises all available means in justified cases to mitigate and remedy significant impacts on its customers and end-users, and their goodwill.
As part of its work, the Customer Care Department assesses the risks arising from individual customers cooperating with business partners and addresses any complaints made by importers. It assigns the appropriate priority to each case in the CRM tool and resolves them on an individual basis. If
necessary, information is passed on to other specific organisational units for processing.
Customer inputs and complaints are monitored and evaluated. In relevant cases, an in-depth analysis of the car is undertaken, or the process of eliminating defects is initiated. All cases with material damage or with the occurrence of negative repercussions are resolved on an individual basis. The Company has created a special budget for such cases and associated compensation.
In 2023, a decision was taken on four recall campaigns.
Social Sustainability Strategy
Social sustainability is one of the cornerstones of Škoda Auto’s sustainability strategy. The guiding principle of the strategy is respect for human rights and freedoms, see Human Rights. The Company regularly evaluates its activities in relation to the strategy and discusses them with its social partner, the KOVO Unions. Specific steps designed to achieve the set objectives are derived from the principle of Creating Shared Values – CSV. This principle enables the Company to create added value for its own benefit and for the benefit of its employees and all other stakeholders.
The “Best in Class in ESG” strategy, which pertains to social issues, emphasizes two main categories – people and communities and diversity. Within these, Škoda Auto focuses on the following strategic areas in which the Company can best help its own employees and people around it:
Each strategic area comes with an internal and external dimension, and together these determine the actual steps the Company takes to achieve the set objectives. The established dimensions complement each other and overlap. The internal dimension concentrates primarily on Company employees, and the external dimension focuses on sharing the know-how of the Company and its employees with external partners.
All five areas are concentrated mainly in the regions in which Škoda Auto has its production plants – the Mladá Boleslav, Rychnov, and Vrchlabí areas. They are not, however, restricted solely to these areas. Škoda Auto carries out a range of activities throughout the Czech Republic, and some at the international level. For example, providing aid in humanitarian crises, together with a whole range of other programmes.
As far as the individual regions around its plants are concerned, Škoda Auto places considerable emphasis on increasing the attractiveness of those areas and on their sustainable development. For this reason, the Company established the Škoda Auto Endowment Fund in 2018, contributing the initial capital. This is an auxiliary tool of regional development, one which constantly focuses on the systematic development of the regions in areas not connected to Company know-how, but instead reflecting challenges in sustainable development, see Community Engagement and Development of Škoda Auto Regions.
To independently monitor its activities in the field of social sustainability, the Company takes part in the regular IPSOS CSR and Reputation Research study and evaluates different scorecards of satisfaction and quality of life (Cities in Data, where appropriate Behavio – a survey of satisfaction). In 2023, the Company broadened the areas it checks to include what is known as an Activity Success Index, which reflects how the Czech population sees projects from the perspective of credibility, value, uniqueness, whether they “fit the brand”, and further potential they have, see Sustainability Strategy.
Public Sector Partnerships
In 2023, Škoda Auto continued to expand partnerships, that give it the opportunity to express its views on key issues in the public sector. One such partnership is the support of Aspen Institute Central Europe. As part of this partnership, Company representatives actively attended key conferences and important networking events in 2023. Such an example is the Young Leader programme, which offers young leader the opportunity to broaden their personal and professional skills and reflect on fundamental values in the course of their careers. Škoda Auto is also a general partner to the Arnošt Lustig Award, which is presented each year to people who have helped maintain and develop societal values in line with the motto “courage and bravery, humanity and justice”. The award was established in 2011 by the Czech–Israeli Joint Chamber of Commerce.
Škoda Auto is a member of several platforms and associations that focus on sustainability values, within which it is able to share its expertise and knowledge with other partners and at the same time gain valuable input for its work on sustainability issues in the future. In 2023, for example, the Company became a partner to and became actively involved in the Broumov Debates, which are strongly intergenerational in nature and which provide space for in-depth debate in which the emphasis is on principles of democratic discussion. It also continued its active engagement in and development of sustainability issues within the Association of Corporate Responsibility (A-CSR) and the Business Leaders Forum. Company representatives discuss each of the main pillars of social sustainability with expert partners in their particular field:
As far as education is concerned, organisations that bring innovation to formal and informal education, develop pedagogical leadership or provide unique data about key problems in the Czech Republic, and cooperate on systemic reforms in education and social policy. Such partners include Aisis, the Duke of Edinburgh International Award Czech Republic Foundation, Society for All, and PAQ Research.
In terms of mobility there are namely the Czech Association of Driving Schools, whose aim is to raise the standard of instruction in Czechia together, and the Czech Paraplegic
Association – CZEPA.
Well-being: important partners include organisations that deal with prevention in mental care and that bring practical and verified information with a view to engaging in quality discussions of mental health. Amongst those partners belong for example Nevypusť duši (Don‘t Let Go of Your Soul).
In the area of volunteering, the Company collaborates with Nadace Partnerství (Partnership Environmental Foundation), which supports communities in environmental activities throughout the Czech Republic; Nadace Terezy Maxové (Tereza Maxová Foundation), which helps abandoned and disadvantaged children; Czech unions for nature conservation; and Správa Krkonošského národního parku (Krkonoše
Mountains National Park Administration).
The issue of diversity is addressed, amongst others, in cooperation with a platform for responsible business in the Czech Republic – Byznys pro společnost (Business for Society) – as part of which the Company signed a “Diversity Charter” back in 2019.