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10
November 2006
Hindalco is a member of the Global Compact, an
international forum that operates under the aegis
of the United Nations. The forum's vision is to
usher in a "more sustainable and global economy."
There are ten basic principles outlined in its
charter and the following pages highlight the
thinking and initiatives of the company in those
areas.
Human
Rights
1.
Businesses should support and respect the protection
of internationally proclaimed human rights
Hindalco
ascribes to the human rights policy of the United
Nations and Global Compact. It has a comprehensive
policy and a code of conduct which is binding on
all employees who must sign it on their induction
in to the company. It protects the interests of
the employee and other stakeholders. "Integrity,
trust, fairness and honesty are the basics that
guide our strategies, our behaviour and the relationships
we build with people, both internally and externally.
Each of us will exercise the highest level of ethical
and professional behaviour," states the policy.
2. Businesses should make sure that they are not
complicit in human right abuses
The company endeavours to uphold the human rights
outlined in the Global Compact. Not only in terms
of its employees, as detailed above, but also for
others such as customers and business associates.
Here is what the policy states: "We are committed
to our customers, to fulfilling their present needs
and anticipating their unmet needs. We are dedicated
to continually improving quality, usefulness and
value of our products and services that help our
customers enhance their performance. We provide
value for customers through creativity, innovation,
productive relationships, quick response and simplicity
in all that we engage in."
Going
beyond business, the company is engaged in community
work, concentrating largely in the rural areas
close to its manufacturing plants. The areas of
foci are sustainable livelihood, watershed development,
health care, education and infrastructural facilities.
The company treats its social projects with the
same seriousness as its business projects. Corporate
Social Responsibility (CSR) is very much on the
radar of the top management.
Our
CSR strategies, in their own small way, build
a better, sustainable way of life for the weaker
sections of the society and endeavour to raise
our country's Human Development Index.
In
the year 2005-06 the company reached out to over
14 lakh people. In recognition of Hindalco's outstanding
contribution to the arts, education, environment
and community development, CNBC's "Asian
Business Leader Award for The Asia Corporate Citizen
of the Year" was conferred upon Hindalco.
Of
the 71 villages supported around our plant in
Renukoot, 49 have been transformed into model
villages. Recognising the work, The Asian Institute
of Management, Centre for Corporate Social Responsibility
conferred the prestigious Asian CSR award on Hindalco.
Eighty organisations from across 11 countries
had submitted 142 entries for the award.
A
summary of Hindalco's stellar community initiatives
(2005-06) is given below:
- Conducted
over 1200 medical camps across the units benefiting
2.42 lakh patients.
- At
the Company run hospital, over two lakh people
were given medical care at extremely subsidised
rates.
- Immunised
81,264 children against polio.
- Pre
and post natal care given to 41,202 mothers.
- Over
12000 children learn at our Balwadis, while
6982 students were incentivised to continue
education.
- Adult
literacy programs reached out to over 12000
persons.
- Camps
were organised for tuberculosis, malaria, dental
check ups and treatment and hepatitis. These
benefited over 5000 people. Of these, 2000 patients
diagnosed with tuberculosis were treated.
Labour
Standards
3.
Businesses should uphold the freedom of association
and the effective recognition of the right to
collective bargaining
Our manufacturing locations have workers in the
unionised cadre. Long term settlements are signed
with the workers at regular frequency wherein
the management and union leaders sit across the
table and negotiate the terms of the settlement.
The process is peaceful and productive across
all locations.
Being
essentially a meritocracy and a peoples' organisation,
our attention in the people area remains unwavering.
We are enhancing the quality and the pace of the
institutionalisation of our systems and processes.
These now embrace the entire life cycle of the
employee's engagement with the organisation. Several
new initiatives have been taken towards the well
being of our employees, particularly in the area
of healthcare, education of their children and
other critical aspects. We have cordial relations
with our shopfloor colleagues, creating a work
place environment that nurtures innovation and
encourages people to constantly learn and grow.
4.
The elimination of all forms of forced and compulsory
labour
People are keen to associate with Hindalco out of
their own volition. The terms and conditions are
explained in detail openly before the appointment
is formalised.
5. The effective abolition of child labour
Hindalco does not employ child labourers.
6. Eliminate discrimination in respect of employment
and occupation
We are an equal opportunities employer. Our policy
states: "We respect the individual rights and
dignity of all people. We believe in the inherent
potential of employees and are fully committed to
people development processes in our company in a
fair, equitable and transparent manner. We encourage
employees to grow professionally and personally
to their highest capabilities regardless of nationality,
caste, religion, colour or sex."
Environment
7. Businesses should support a precautionary
approach to environmental challenges
Our environment policy clearly states: "We
are committed to sustainable development and to
the health and safety our employees and the environment
surrounding our plants. To building eco-efficiency
in all of our operations and to guarding natural
resources. We are committed to going beyond stipulated
requirements and ensure energy conservation and
productive recycling of waste."
Hindalco's
brownfield expansion projects, at the Hirakud
Smelter-Power Complex, at Muri Alumina Plant and
the Dahej Copper Smelter, have all obtained environmental
clearance from the Ministry of Environment and
Forests and Pollution Control Boards. India being
a signatory to the Kyoto Protocol on greenhouse
gas (CHG) reduction, Hindalco has taken an initiative
towards reducing CHG at its expansion project
at the Hirakud Smelter. A CDM (Clean Development
Mechanism) has been registered with the United
Nations Framework Convention on Climate Change
(UNFCCC).
All
plants have renewed their environment management
system certifications to the revised ISO 14001:2004
standard. Going a step further, Hindalco's Renukoot
/ Renusagar Complex has successfully implemented
an Integrated Management System (MIS), combining
ISO 9001, ISO 14001 and OHSAS 18001 into one Business
Excellence Model.
8.
Undertake initiatives to promote greater environmental
responsibility
We
relentlessly pursue the development of cleaner production
processes that inherently reduce pollution levels
and require fewer resources. Professional Environmental
Auditors such as KPMG, Bureau Veritas Qulaity International,
Det Norske Veritas, the Central Salt and Marine
Chemicals Research Institute, Gujarat and the State
Pollution Control Board's certified auditors and
environmental systems. Their audit reports validate
our commitment to environmental conservation. Hindalco
has proactively complied with the "Corporate
Responsibility for Environment Protection"
requirements of the Ministry of Environment and
Forests.
9. Encourage the development and diffusion of environmentally
friendly technologies
Hindalco has installed state-of-the-art Effluent
Treatment Plants (ETP) at all of the company's aluminium
and copper manufacturing units. Innovative ways
of waste disposal include Renukoot's initiative
to re-use all ETP sludge as soil conditioner, while
Sewage Treatment Plant's sludge is used for horticulture
activities.
Many
accolades have been conferred on Hindalco for
its stellar contribution to environment conservation
and safety.
Some
of them include:
- Hindalco's
Renukoot plant was named the winner of the National
Safety Award 2005 for the second consecutive
year. The company was also awarded the Greentech
Safety Silver Award for its outstanding safety
performance during 2005-06.
- The
Kalwa foil plant was the recipient of the Dhanukar
Rotating Trophy 2005-06 presented by the Indian
Association of Occupational Health, Mumbai.
- The
Muri Alumina Plant won the Greentech Safety
Gold Award 2004-2005.
Educating
and sensitising all of our stakeholders on the
need to conserve natural resources is an ongoing
process at Hindalco.
10.
Businesses should work against all forms of corruption,
including extortion and bribery
The company policy clearly states: "I will
not seek or encourage bribes or kickbacks in any
form. I will not deal with a supplier who offers
me a bribe to get a contract awarded." Adherence
to the policy is total and no leniency is shown
to a defaulter.
The
Aditya Birla Group has re-articulated the
values that spawn across its diverse businesses
and locations and act as an organisational
glue to bind people together. These values
are: Integrity, Commitment, Passion, Speed
and Seamlessness. The values drive the organisational
thinking and processes-whether related to
people, manufacturing, environment or community
responsibility, the bedrock of the principles
outlined by the UN Global Compact.
Here is what our Chairman Mr. Kumar Mangalam
Birla has to say: "Great businesses are
never built on the quick sands of opportunism.
If living by our values means, perhaps growing
at a pace slower than we would otherwise liked,
so be it. For us, leadership lies at the heart
of knowing what we stand for." |
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