INTEGRATED ANNUAL REPORT 2011 GRI RESPONSES  

Management approach disclosures

Investment and procurement practices

The board views  the advancing and protecting of human rights as an imperative. The board has, therefore, created a social, ethics and transformation committee which is required by South African law to deal with and monitor, among others, issues of human rights. Regular reports on the company’s human rights performance will be tabled by management to this committee.

Barloworld respects human rights. These are central to the group’s legitimacy and covered in its code of ethics and worldwide code of conduct. The group is a signatory to the UN Global Compact, of which Principles 1 and 2 specifically address this issue. For details on the UN Global Compact, see: www.unglobalcompact.org.

The Barloworld’s  Ethics and Compliance programme sets the following standards:

3.1.8 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:
I. Businesses should support and respect the protection of internationally proclaimed human rights; and
II. 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.

Currently, no specific record is kept of investment agreements that include human rights clauses as all such agreements in Barloworld are required to comply with legislation and fulfil the standards of Barloworld’s ethics, codes and policies, including those to which it is a signatory. All agreements specifically include clauses covering employees. Full due-diligence processes are conducted for any significant investment and human rights issues are covered in this process.

A similar approach applies to suppliers and contractors. The contracts of those not complying would be reviewed and the relationship terminated if shortcomings cannot be addressed. The group sources the majority of its products from leading global OEMs with established and entrenched human rights policies and practices.

No specific screening processes are currently in place for suppliers. However suppliers are required to comply with legislation and meet the standards of Barloworld’s ethics, codes and policies, including those to which it is a signatory.

The Barloworld ethics and compliance programme addresses human rights in its supply chain and sets standards of compliance from third party service providers, business partners and key suppliers.

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. Where non-conforming suppliers are identified, appropriate action is taken.

Non-discrimination

No unfair discrimination is a fundamental value of the group and is entrenched in its code of ethics and worldwide code of conduct. The group processes ensure that any instances can be reported and addressed. 

Freedom of association and collective bargaining

Collective labour relations are constructively managed on the principle of freedom of association. Employees may associate or not with representative organisations and trade unions. Trade unions sufficiently representative of employees are recognised at appropriate operational levels, and operations covered by industry agreements participate in relevant industry forums.

There are no operations where the right to exercise freedom of association and collective bargaining is at significant risk.

As the group represents leading global principals and suppliers, it is not aware of any suppliers where freedom of association and collective bargaining are at risk. The group requires that its supply chain conform with its values. Evidence of non-compliance regard would result in appropriate action.

Child labour

Barloworld does not have child labour. It is contrary to the group’s code of ethics and values.

As the group represents leading global principals and suppliers, it is not aware of any use of child labour in its supply chain nor has it identified any suppliers at risk.

The group requires that its supply chain conform with its values. Evidence of non-compliance would result in appropriate action.

Prevention of forced and compulsory labour

Barloworld does not have forced and compulsory labour. It is contrary to the group’s code of ethics and values.

As the group represents leading global principals and suppliers it is not aware of any use of forced and compulsory labour in its supply chain nor has it identified any suppliers at risk.

The group requires that its supply chain conform with its values. Evidence to the contrary, would result in appropriate action being taken.

Security practices

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

Barloworld employees that are responsible for security are trained in relevant practices and procedures.

Indigenous rights

We respect the rights of indigenous people as considered in the GRI definition. As the group represents leading global principals and suppliers, it is not aware of any abuse of indigenous people’s rights in its supply chain.  The group requires that its supply chain conform with its values. Evidence to the contrary would result in appropriate action being taken.

Assessment

Although no specific record is currently kept of investment agreements that include human rights clauses, all such agreements are required to comply with legislation and fulfil the standards of our ethics, codes and policies, including those to which it is a signatory. All agreements specifically include clauses covering employees. Comprehensive due-diligence processes are conducted for any significant investment and human rights issues are covered in this process.

A similar approach applies to suppliers and contractors. The contracts of those that do not comply are reviewed and the relationship ultimately terminated if shortcomings cannot be addressed. The group sources the majority of its products from leading global OEMs with established human rights policies and practices.

The Barloworld Ethics and Compliance programme addresses the issue of human rights in its supply chain and sets the standard of compliance from third party service providers, business partners and key suppliers.

Remediation

The group has not needed to make reparations for any human rights violations. Should such case occur, we would comply with the law and acts in accordance with any directive issued.