Investment and procurement practices: HR1 - HR3
-
HR1 Percentage and total number of significant investment agreements and contracts that include human rights clauses or that have undergone human rights screening.
The board strongly believes in upholding 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 other things, human rights issues. Regular reports on human rights performance will be tabled by management to this committee.
Workplace related human rights include health and safety, development, prohibiting unfair discrimination, collective bargain arrangements and prohibiting child labour. These are covered in the human resources section of due diligence process for all new 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. During the due diligence process, the targeted entity is assessed, including human resources matters and these include the abovementioned human rights issues. If the transaction proceeds, any gaps identified are then addressed in terms of the group’s values, code of conduct and 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.
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 their contractual obligations and the law.
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 acclaimed human rights and
- Should make sure that they are not complicit in human rights abuses
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 and freedom".
The Barloworld Worldwide Code of Conduct includes our commitment to make responsible ownership and investment decisions, 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 Barloworld Worldwide Code of Conduct, we envision a world made better by our actions.
-
HR2 Percentage of significant suppliers and contractors and other business partners that have undergone screening on human rights and actions taken.
Integrated Report:Our approach to Human rights compliance in our supply-chain is reflected in our Worldwide Code of Conduct and set out in the Management disclosure for Human Rights. Our Worldwide Code of Conduct provides:
- Teamwork Value includes:
- We build outstanding long-term relationships with our principals, suppliers and customers: …‘We expect our suppliers to comply with the sound business practices we embrace, following the law and conduct activities in a manner that respects human rights’
- Commitment Value includes:
- We respect and contribute to the realisation of human rights:‘Barloworld has a long-standing commitment to human rights and the dignity of all people. We create a work environment that recognises the rights of employees so that we can all enjoy a workplace that is respectful, puts safety first and values fairness, responsibility, transparency and diversity. We work with principals and suppliers who also demonstrate strong values and ethical principles and avoid those who violate the law or fail to comply with the sound business practices we promote.’
Third party service providers and suppliers (TPSP&S) in all business divisions have been subjected to a risk assessment and due-diligence process in relation to bribery and corruption. This due diligence process involves the integration a more rigorous screening of TPSP&S into the existing procurement processes and setting clearly defined minimum requirements. This process is now applied to new TPSP&S and is ongoing for existing TPSP&S, in accordance with the Barloworld due diligence policy. To date some 16 500 suppliers are being covered by such assessment. As part of this process, some 3 330 suppliers have signed the Barloworld Supplier Code of Conduct which 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.”
The Supplier code of conduct also specifically prohibits the use of compulsory or child labour as well as unfair discrimination, and requires freedom of association and the right to collective bargaining.
An internal review has also been conducted on all our major principals and Original Equipment Manufacturers for risks relating to human rights or labour practices and there were no adverse findings and all have a low risk rating. These suppliers account for the majority (some 70%) of our procurement spend in the group.
In addition, 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.
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 acclaimed human rights and
- Should make sure that they are not complicit in human rights abuses
Other legitimate social and business enterprise development partners are expected to comply with the law and comply with their contractual obligations which set certain standards of conduct.
- Teamwork Value includes:
-
HR3 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.
Workplace-related human rights include health and safety, development, prohibition of unfair discrimination, collective bargaining and prohibiting child labour. These and other HR matters are addressed directly or indirectly through training programmes and initiatives conducted throughout the group including Induction and orientation programmes. Diversity workshops in South Africa also address issues which include non-discrimination, as do employment equity and work-skills planning processes.
A total of 5 738 employees attending training through programmes that included: Induction; Diversity workshops: Employment Equity and Skills Forum training and the Barloworld Worldwide Code of Conduct and Ethics, which covered a range of work-related Human Rights aspects during the reporting period. This amounted to 18 974 hours of training and 29% of the workforce. Over the three year period, a total of 12 736 employees have attended such training amounting to 67 013 hours.
All employees responsible for security are required to obey the law and behave in accordance with the group‘s ethics, codes, policies and procedures.