Human rights

  • HR 1 Percentage and total number of significant investment agreements and contracts that include clauses incorporating human rights concerns, or that have undergone human rights screening

    The board places a premium on advancing and protecting human rights. The board has, therefore, reconstituted its committees to create a social, ethics and transformation committee, in line with the South African Companies Act, to manage and monitor, among others, human rights issues. Regular reports on human rights performance will be tabled by management to this committee.

    Human rights considerations form part of the group’s screening process for all investment agreements. The group’s modus operandi with regard to investments is one where it generally acquires a business in its entirety, or a controlling stake thereof. During the due diligence process, the targeted entity is thoroughly assessed, including from a human rights perspective. If the transaction proceeds, any gaps identified are then addressed in terms of the group’s values, code of conduct, compliance with applicable legislation, including those frameworks to which it is a signatory. All agreements specifically include clauses covering employees.

    Suppliers and contractors are required to comply with legislation and expected to meet the standards of Barloworld’s ethics, codes and policies, including those to which it is a signatory. The contracts of those that do not comply will be reviewed and the relationship ultimately terminated if shortcomings cannot be addressed. The group sources most of its products from leading global OEMs with established human rights policies and practices.

    Most business units and operations outsource their security arrangements to legitimate suppliers who belong to the relevant industry association. As with all other suppliers, they are expected to comply with the group’s ethics, values and the law.

    In 2011 Barloworld introduced an ethics and compliance programme, for application throughout the group by 2015, which sets the following standards (contained in section 3.1.6):

    3.1.6 Upholding human rights

    a) Barloworld is a signatory to the United Nations Global Compact which contains ten principles.  The first two principles deal with human rights and are:
    • Businesses should support and respect the protection of internationally proclaimed human rights; and
    • Should make sure that they are not complicit in human rights abuses.  
    b) Barloworld upholds the South African Bill of Rights as detailed in Chapter 2 of the Constitution of South Africa. The Bill of Rights “is a cornerstone of democracy in South Africa. It enshrines the rights of all people in our country and affirms the democratic values of human dignity, equality and freedom."
    c) The Barloworld Worldwide Code of Conduct includes our commitment to protect the health and safety of others and ourselves, to recognise and respect personal privacy and to be proactive members of our communities.  Through upholding the Code of Conduct, we envision a world made better by our actions.
    d) Significant suppliers, third party service providers and other business partners are screened for human rights by way of due diligence procedures conducted at the time of engagement and periodically thereafter, according to the assessed risk.
    e) Due diligence procedures incorporate an assessment of third party service providers, business partners and key suppliers. The scope of the assessment includes human rights issues.
    f) Training is provided to our employees, to selected third party service providers and other business partners on human rights as identified by a risk assessment process

    The programme also includes the following standard for suppliers and third parties to be applied throughout the group by 2015:
    Communication with suppliers and third parties:

    ‘Contracts with suppliers, third party service providers and other business partners should be amended to include a condition that human rights are applied and upheld in all business dealings’

  • HR 2 Percentage of significant suppliers, contractors and other business partners that have undergone human rights screening, and actions taken

    Although currently no specific human rights screening processes have taken place, all Barloworld suppliers are expected to comply with applicable legislation and fulfil the standards reflected in Barloworld’s ethics, codes and policies, including those to which it is a signatory.

    In 2011 Barloworld introduced an ethics and compliance programme, for application throughout the group by 2015, sets the following standard (contained in section 3.1.7):

    3.1.7 Upholding human rights

    a) Barloworld is a signatory to the United Nations Global Compact which contains ten principles.  The first two principles deal with human rights and are:
    • Businesses should support and respect the protection of internationally proclaimed human rights; and
    • Should make sure that they are not complicit in human rights abuses.  
    b) Barloworld upholds the South African Bill of Rights as detailed in Chapter 2 of the Constitution of South Africa.

    The Bill of Rights “is a cornerstone of democracy in South Africa. It enshrines the rights of all people in our country and affirms the democratic values of human dignity, equality and freedom."

    c) The Barloworld Worldwide Code of Conduct includes our commitment to protect the health and safety of others and ourselves, to recognise and respect personal privacy and to be proactive members of our communities.  Through upholding the Code of Conduct, we envision a world made better by our actions.
    d) Significant suppliers, third party service providers and other business partners are screened for human rights by way of due diligence procedures conducted at the time of engagement and periodically thereafter, according to the assessed risk.
    e) Due diligence procedures incorporate an assessment of third party service providers, business partners and key suppliers.  The scope of the assessment includes human rights issues.
    f) Training is provided to our employees, to selected third party service providers and other business partners on human rights as identified by a risk assessment proces

    By representing leading global OEMs and brands, Barloworld participates in supply chains that conform to norms and regulations and aspire to the highest standards. If non-conforming suppliers are identified, appropriate action is taken.

    The assessment of suppliers is being incorporated into a high level risk assessment and due-diligence process of third party service providers and suppliers (TPSP&S) that is currently being developed in a consultative process with the business divisions. This due diligence process is aimed at integrating a more rigorous screening of TPSP&S into the existing procurement processes and setting clearly defined minimum requirements.

    Most business units and operations outsource their security arrangements to legitimate suppliers that belong to relevant industry associations. As with all other suppliers, they are expected to comply with the group’s ethics, values and the law.

    Other partners, such as empowerment partners, are either incorporated into the operation of the company, in which case they comply with Barloworld standards, ethics and respect for human rights, or they are legitimate social partners who are also expected to comply with the group’s ethics, values and the law.


  • HR 3 Total hours of employee training on policies and procedures concerning aspects of human rights that are relevant to operations, including the percentage of employees trained

    Training in human rights aspects is covered in numerous training programmes throughout the group and are addressed directly or indirectly. Induction and orientation programmes address human rights as part of expected behaviour under the company’s ethics, codes, policies and procedures. All new employees participate in these programmes. Diversity workshops in South Africa address these issues, as do employment equity and work-skills planning processes.

    Training and awareness programmes are in place throughout the group to communicate the Barloworld Worldwide Code of Conduct to all employees.

    11 850 or 61.5% of total group employees were trained on work related Human Rights aspects during the reporting period.

    Total number of employees trained on work related Human Rights aspects
      2012  
    Within SA   1 075 867  
    Outside SA   215 552  
    Grand Total   7 556 528  

    This aspect is also addressed in the ethics and compliance programme (see response to HR 1 above).

    Employees responsible for security are all trained in relevant practices and procedures. They are also required to obey the law and behave in accordance with the group‘s ethics, codes, policies and procedures.


  • HR 4 Operations and significant suppliers identified in which the right to exercise freedom of association and collective bargaining may be violated or at significant risk, and actions taken to support these rights

    Incidents may be reported through anonymous ‘Ethics Line/Tip-offs line’ or through established problem resolution, grievance or disciplinary procedures.

    Two instances of alleged discrimination were reported in the South Africa automotive division, both of which were independently investigated and resolved.


  • HR 5 Minimum notice period(s) regarding significant operational changes, including whether it is specified in collective agreements

    The board regards labour relations issues as important in the context of advancing and protecting human rights. The board’s new social, ethics and transformation committee, is required by the South African Companies Act to deal with and monitor, among others, issues of human rights as they pertain to labour relations. Regular reports on the company’s human rights and labour relations performance are tabled by management to this committee.

    Collective labour relations are constructively managed based on the principle of freedom of association. Employees may associate or not with representative organisations and trade unions. There are no operations where the right to exercise freedom of association and collective bargaining is at significant risk. There were no violations of freedom of association and collective bargaining during the year.

    By representing leading global OEMs and brands, Barloworld participates in supply chains that conform to norms and regulations and aspire to the highest standards. The group has not identified any significant suppliers or service providers, as material risks of violating such rights. If a non-conforming supplier was identified, appropriate action would be taken.

    This aspect is being addressed by the ethics and compliance managers in each of the Barloworld divisions.


  • HR 6 Operations and significant suppliers identified as having significant risk for incidents of child labour, and measures taken to contribute to the effective abolition of child labour

    There is no child labour in any Barloworld operation. This would be contrary to the organisation’s values, policies, recruitment practices and illegal in the countries in which it operates. No Barloworld operations are identified as being at risk for any of these aspects. By representing leading global Original Equipment Manufacturers (OEMs) and brands Barloworld also participates in supply chains that conform to norms and regulations and aspire to the highest standards.

    The group has not identified any significant suppliers as being at risk of child labour. If a non-conforming supplier was identified, appropriate action would be taken.

    This aspect is being addressed by the ethics and compliance managers in each of the Barloworld divisions.


  • HR 7 Operations and significant suppliers identified as having significant risk for incidents of forced or compulsory labour, and measures to contribute to the elimination of all forms of forced or compulsory labour

    The board regards labour relations issues as important in the context of advancing and protecting human rights. The board has created a social, ethics and transformation committee which is required by law to deal with and monitor, among others, issues of human rights as they relate to labour relations. Regular reports on the company’s human rights and labour relations performance will be tabled by management to this committee.

    There is no forced or compulsory labour in any Barloworld operation. This would be contrary to our values, policies, recruitment practices and illegal in the countries in which we operate. No Barloworld operations are identified as being at risk for any of these aspects. By representing leading global Original Equipment Manufacturers (OEMs) and brands, Barloworld participates in supply chains that conform to norms and regulations and aspire to the highest standards.

    The group has not identified any significant suppliers or service provider as having significant risks of forced or compulsory labour. If a non-conforming supplier was identified, appropriate action would be taken.

    This aspect is being addressed by the ethics and compliance managers in each of the Barloworld divisions.


  • HR 8 Percentage of security personnel trained in the organization's policies or procedures concerning aspects of human rights that are relevant to operations

    All outsourced security is to reputable, certified service providers who are required to be members of relevant industry associations. In some instances these are ISO 9001/2000 certified. Suppliers are continually assessed to ensure that all aspects of their service conform to legislation and to Barloworld’s ethics and standards, including those covering human dignity and human rights.

    To the extent that security is provided by Barloworld employees, all are trained in the group’s codes, policies and procedures that address human rights. Functions of security personnel within the group essentially constitute access controls to company property within developed urban areas.

    This is addressed in each of the Barloworld divisions as part of the overall integration and ongoing support of the standards set in the Barloworld Ethics and Compliance programme.

    At Corporate office, in Sandton, Johannesburg, 100% of the security personnel, which is outsourced, have been trained in Human Rights.


  • HR 9 Total number of incidents of violations involving rights of indigenous people and actions taken

    The board regards the advancing and protecting of human rights as an imperative. The board’s new social, ethics and transformation committee is required by law to manage and monitor, among others, human rights issues. Regular reports on the company’s human rights performance will be tabled by management to this committee.

    Indigenous rights are respected in all Barloworld operations. No related cases were made against the group in this regard during the year.


  • HR 10 Percentage and total number of operations that have been subject to human rights reviews and/or impact assessments

    While no operations were subject to specific human rights reviews or impact assessments, all operations have implemented or are implementing a full review of their activities in the context of the group’s ethics and compliance programme. All divisions are required to implement the programme by 2015.


  • HR 11 Number of grievances related to human rights filed, addressed and resolved through formal grievance mechanisms

    There were no grievances reported during the year.

    All breaches of human rights are fully investigated and appropriate action taken in terms of the relevant policies and disciplinary procedures. Incidents are reported through appropriate management and executive structures, together with the action taken and outcome. Appropriate internal disciplinary action is taken against perpetrators which could include dismissal. Criminal behaviour is not tolerated and formal charges are laid.

 

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