Anti-Corruption
Total Page：16
File Type：pdf, Size：1020Kb
Communication on Progress 2017 Report STATEMENT OF CONTINUED SUPPORT From the time Hinopak became signatory to the United Nations Global Compact in 2006, it gives me immense pleasure to submit Hinopak’s tenth comprehensive communication on progress report for the year 2016-17. Hinopak reaffirms its commitment through actions and implementation on the UNGC’s principles on Human Rights, Labour, Environment and Anti-Corruption. This ten year journey of living the UN Global Compact principles have brought remarkable improvements in our business processes which are evident from various initiatives quoted in the report. I would like to thank our employees and other stakeholders for their contribution towards the company’s sustainable development and encourage them to continue practicing global compact principles in our corporate culture. ________________________________ TATSUHEI MUTO Managing Director & CEO June 16, 2017 Hinopak Motors Limited Human Rights Hinopak Motors Limited UNGC Communication on Progress 2017 Organizational Profile GRI Ref. No. 2.1 Name of the Organization Hinopak Motors Limited Assembly, manufacturing and sales of Hino Trucks and 2.2 Primary brands, products, and/or services. Buses and Sales of Hino Genuine Parts. Operational structure of the organization, Hinopak is a subsidiary concern of Hino Motors Limited 2.3 including main divisions, operating Japan and Toyota Tsusho Corporation. companies, subsidiaries, and joint ventures. 2.4 Location of organization’s headquarters. Karachi, Pakistan Number of countries where the organization operates, and names of countries with either 2.5 major operations or that are specifically One (Pakistan) relevant to the sustainability issues covered in the report. 2.6 Nature of ownership and legal form. Public Limited Company The company serves markets of Pakistan and some of the Middle East & African countries. Markets served (including geographic 2.7 breakdown, sectors served, and types of Types of customers include: customers/beneficiaries). 1. Institutional customers 2. Commercial customers Number of Employees as on March 31, 2017 = 341 (989 including contract and contractor’s employees) For following refer to Annual Report 2016-17 available at: http://www.hinopak.com/finance.htm Scale of the organization 2.8 Net sales (2016-17)= Rs. 22 billion Total capitalization = Rs. 4.7 billion (0% Debt, Surplus funds) Quantity of Products Produced (2016-17) - Hino Chassis: 3,817 - Bus and other specialized bodies: 501 - Hilux Frame: 6,451 Significant changes during the reporting 2.9 None period regarding size, structure, or ownership. 1. EFP/GCNP Living the Global Compact Best Practices Award 2015-16 Awards / citations received during the 2.10 reporting period 2. EFP/ILO OHS&E Award in Overall category 3. EFP/ILO Best Practices in Industrial Relations (IR) ISO 14001:2004 Certified Management Systems ISO 9001:2008 Certified OHSAS 18001:2007 Certified 1 Hinopak Motors Limited Human Rights Hinopak Motors Limited UNGC Communication on Progress 2017 - Employers’ Federation of Pakistan (EFP) - Overseas Investors Chamber of Commerce & Industry (OICCI) - Federation of Pakistan Chamber of Commerce and Industry (FPCCI) Affiliations / Memberships - Management Association of Pakistan (MAP) - Pakistan Automotive Manufacturers Association (PAMA) - S.I.T.E. Association - Pakistan Japan Business Forum (PJBF) - Pakistan Society for Training & Development (PSTD) - Marketing Association of Pakistan Report Parameters 3.1 Reporting period for information provided 1 June 2016 ~ 31 May 2017 1. UNGC Communication on Progress (COP): 17 June 2016 3.2 Date of most recent previous report/s 2. Annual Report 2016-17 3.3 Reporting cycle Annual Ahsan Waseem Akhtar Deputy Divisional Head HR, Admin & HSE [email protected] Contact point for questions regarding the Nabila Mujahid Faisal 3.4 Manager Health, Safety & Environment report or its contents [email protected] Sabira Agha Executive HRD & OD [email protected] Governance, Commitments and Engagement Board of Directors (Highest Governance Body) Board Committees: The Audit Committee is responsible for: a. Determination of appropriate measures to safeguard company’s assets; Governance structure of the organization, including committees under the highest b. Review of quarterly, half-yearly and annual financial statements of the Company, prior to the 4.1 governance body responsible for specific approval of the Board of Directors; tasks, such as setting strategy or organizational oversight. c. Review of management letter issued by external auditors and management’s response thereto and monitor the action plan to improve the control environment; d. Review of the scope and extent of internal audit and ensuring that the internal audit function has adequate resources and is appropriately placed within the Company; 2 Hinopak Motors Limited Human Rights Hinopak Motors Limited UNGC Communication on Progress 2017 e. Ascertaining that the internal control system including financial and operational controls, accounting system and reporting structure are adequate and effective; f. Instituting special projects, other investigations on any matter specified by the Board of Directors, and to refer any matter to the external auditors or to any other external body; g. Monitoring compliance with relevant statutes and best practices of corporate governance. The Human Resource & Remuneration Committee is responsible for: a. Recommending human resource management policies to the board; b. Recommending to the board the selection, evaluation, compensation (including retirement benefits) and succession planning of the CEO; c. Recommending to the board the selection, evaluation, compensation (including retirement benefits) of CFO, Company Secretary and Head of Internal Audit; and d. Considering and approving on recommendations of CEO on such matters for key management positions who report directly to CEO. Refer to performance indicator ref. no. LA13 for details on the BOD and the Audit Committee. 4.2 Chair of the highest governance body Chairman (Non-Executive Director) For organizations that have a unitary board Refer to performance indicator ref. no. LA13 structure, state the number and gender of 4.3 members of the highest governance body that The Board of Directors has 7 members; where 5 are non- are independent and/or non-executive executive directors. members. Shareholders: Mechanisms for shareholders and employees - Annual General Meeting (AGM) 4.4 to provide recommendations or direction to the highest governance body. Employees: - Suggestion Boxes (located at conspicuous places around the company premises) 3 Hinopak Motors Limited Human Rights Principle 1: Businesses should support and respect the protection of internationally Human Rights proclaimed human rights; and Commitment: Hinopak Motors Limited is committed to Principle 2: make sure that they are not complicit in human rights abuses. respecting and protecting the dignity of people in all its areas of operations. All stakeholders are assured of sincere efforts to uplift conditions with regard to health and safety, provide sound labour-management relations and participate in human resource/community development. Furthermore, Hinopak is committed to avoiding complicity of human rights abuses in all its areas of operation. Policies, Systems, Processes and Programs Besides the policies and processes detailed in previous COP documents (published since 2006) the following actions were initiated/emphasized on during the reporting year under each process/system with respect to the Human Rights principles: A. HEALTH & SAFETY SYSTEMS . Picture 1: Awareness Session on Eye injury causes & Healthy & Safe Working Environment control. - 2,422 training man-hours achieved under staff training on occupational HSE. - Hinopak in collaboration with Hashmani Eye Hospital organized awareness session for employees on ‘Eye injury causes and control’. Total 300 employees participated in this awareness session. (ref picture 1) - Hinopak arranged free eye camp for Plant drivers, to provide general eye check up and refer those who required treatment. Total 63 persons eyes were checked. - Health awareness session on “Diabetes, its cause, prevention & control” was conducted in which 250 Picture 2: Group Photo on 7th Health & Safety employees participated. Conference - Health awareness session on “How to deal with work stress & heart diseases” was organized in which 90 employees participated. - Audiometric testing and consultation was arranged for employees working in high noise areas. Total 74 employees were tested. - Health screening of food handlers was conducted to help improve quality of life. Total 20 food handlers underwent this screening. - 7th Safety Conference was held in May 2016 in order to enhance safety culture in the company. (ref picture Picture 3: Picture taken during mock drill activity 2) - Announced mock drills held for both manufacturing 4 Hinopak Motors Limited Human Rights facilities and the head office staff to assess organizational readiness to cope with emergencies. ERP teams include rescue, firefighting, spill etc (ref picture 3) . Monitoring & Awareness - Monthly Safety Patrolling by Top Management, in order to visually check safety issues of both the plants and to show their seriousness towards implementation of safety policies. - Daily safety monitoring/patrolling around the assembly and manufacturing facilities being done through the Safety Administration Team (SAT). - From FY2012 till March 2016,