|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.
1. Businesses should support and respect the
protection of internationally proclaimed human
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
2. Businesses should make sure that they
are not complicit in human right abuses
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.
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."
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
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
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
- Immunised 81,264 children against polio.
- Pre and post natal care given to 41,202
- Over 12000 children learn at our Balwadis,
while 6982 students were incentivised to continue
- Adult literacy programs reached out to over
- 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
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
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."
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
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
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
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,
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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