Management approach disclosures

The board views the upholding 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.

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 Human Rights . The group Chief Executive has expressed continuing support for the UNGC’s 10 Principles (see GRI 1.1 and Barloworld’s 2014 COP). For details on the UN Global Compact, see: www.unglobalcompact.org. Internal focus is on work place related human rights which include: health and safety, development, prohibiting unfair discrimination, collective bargaining arrangements and prohibiting child labour. These are addressed through human resources initiatives across the group. The group also recognises and respects personal privacy.

The Barloworld Worldwide Code of Conduct articulates our values and our commitment to uphold human rights, protect the health and safety of others and contribute toward a global environment in which all people can work safely and live healthy, productive lives, now and in the future.

Relevant aspects of the Barloworld Worldwide Code of Conduct include:

We provide employees with opportunities to develop
We treat people fairly and prohibit unfair discrimination
We protect the health and safety of others and ourselves
We recognise and respect personal privacy.

Applicable aspects from our Code of Ethics are:

Obey the law
Respect others
Be Fair.

More specifically within the supply chain, a Supplier Code of Conduct was approved in November 2013 for use throughout the group and includes, among other things, the following voluntary undertaking from suppliers:

“The supplier understands that it has responsibility for its own supply chain and for managing standards of conduct within its supply chain.  It therefore agrees to encourage and promote high ethical standards and adherence to international best practices in human rights, health, safety and environmental standards when undertaking its contractual obligations towards Barloworld.”

This statement now replaces the expected standard previously set out in the Ethics and Compliance programme by providing a more specific context and focus on human rights applied within the business operations. 

The Supplier Code of Conduct is already in use in some business units and its use will be further expanded going forward as an integral part of our ongoing focus on supplier due diligence initiatives.

Investment and procurement practices

Human rights considerations form part of the group’s screening process for all investment opportunities.

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. Workplace related human rights include health and safety, development, prohibiting unfair discrimination, collective bargaining arrangements and prohibiting child labour. These are covered in the human resources section of the due diligence process for all new investments opportunities. 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.

While we do not currently have a specific policy on human rights compliance in the supply chain, there are certain standards that are applied throughout the Barloworld group.

Suppliers, service providers and contractors are expected to comply with applicable legislation; they are also expected to comply with their contractual obligations which set certain standards of conduct. The contracts of those not complying would be reviewed and appropriate action taken according to the circumstances.

The group sources the majority of its products from leading global OEMs with established and entrenched human rights policies and practices. Further, by representing leading global Original Equipment Manufacturers (OEMs) and brands, Barloworld participates in supply chains that conform to norms and regulations and that aspire to the highest standards. Where non-conforming suppliers are identified, appropriate action is taken according to the circumstances.

We are also guided by the principles in the Barloworld Worldwide Code of Conduct, our values and ethics and we would apply these in order to take the appropriate action on human rights matters should the case arise, according to the circumstances.

Non-discrimination

A workplace free from unfair discrimination is a fundamental value of the group and is entrenched in its Code of Ethics and Worldwide Code of Conduct. Group processes ensure that any instances of unfair discrimination 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 chains conform to its values. Evidence of non-compliance would result in appropriate action being taken according to the circumstances.

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 procurement practices throughout the group are being developed to ensure that its supply chain operates lawfully and conforms to group values. Evidence of non-compliance would result in appropriate action being taken according to the circumstances.

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 chains nor has it identified any suppliers at risk.

The procurement practices throughout the group are being developed to ensure its supply chain operates lawfully and conforms to group values. Evidence to the contrary, would result in appropriate action being taken according to the circumstances.

Security practices

Most business units and operations outsource their security arrangements. As with all other suppliers, they are expected to comply with the law.

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

Indigenous rights

Barloworld respects 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 is developing processes to ensure that its supply chain operates lawfully and conform to its values. Evidence to the contrary would result in appropriate action being taken given the circumstances.

Assessment

Workplace related human rights include health and safety, development, prohibiting unfair discrimination, collective bargaining arrangements and prohibiting child labour.

These are covered in the human resources section of the due diligence process for all new investments opportunities. 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 assessed, including human resources matters and these include the above mentioned human rights issues. 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 expected to comply with legislation and their contractual obligations which set certain required standards of conduct. The contracts of those that do not comply will be reviewed and appropriate action taken according to the circumstances. The group sources most of its products from leading global OEMs with established human rights policies and practices.

Remediation

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

We would also be guided by the principles in the Barloworld Worldwide Code of Conduct, our values and ethics in order to take the appropriate action on human rights matters should the case arise, according to the circumstances.