HINOPAK MOTORS LIMITED Global Compact - Communication on Progress: June 2008~ June 2009
Principle 1 Business support and respect the protection of internationally proclaimed human rights.
Commitment Policies, Systems, Processes and Actions Performance Programs
Hinopak Motors Limited is Health and Safety Systems Leadership Guidance / Buy-in • Safety and Health Policy was adopted; affirmation by our Managing Director in July 2008. committed to respecting and protecting the dignity • Our Safety, Health & Environment (SHE) Committee remained steadfast in leading the overall upkeep of our SHE program; of people in all its areas of specific function teams/ERP (Emergency Response Plan) regularly met and given training. operations. All • Canteen Committee reorganized in May 2009 to improve quality and quantity of food, hygiene and service. Action/measures stakeholders are assured started based on employee dissatisfaction feedback. of sincere efforts to uplift conditions with regard to • Recreation Committee reorganized to improve employee wellness program. health and safety, provide sound labor-management Healthy and Safe Work • Personal Protective Equipment (PPEs) required of all persons entering the plants; counselling and warnings given for non-use. relations and participate in Environment human resource/ • Infrastructure required for maintaining safe working condition is ensured. Fire hydrant system upgraded and safety hoists community development. purchased.
• Our Body Operation Plant shop floor housing 800+ personnel at any given day was made bigger ensuring improved working conditions.
• Provision for fire/safety exits ensured in recent plant construction as well as other buildings where overlooked.
• Recreation facilities upgraded and added; Recreation Committee reorganized. Number of employees patronizing wellness facilities increased.
• Employees participated in inter-company sports competitions/matches in table tennis, cricket, etc.
• Daily morning exercise introduce in 2008 had reached company-wide level participation.
• The standard temperature (28C) is followed at Hinopak to mitigate negative health impact from fluctuating temperatures continued.
• Lighting in work offices improved by further tearing down of cubicles.
• At least 10 "no smoking" areas were isolated, all displaying posters indicating in the local language: "smoking kills."
• Health awareness activities were attended by estimated 460 employees from January~December 2008. Program included cholesterol, obesity/BMI, diabetes, and oral cancer training/camps, with follow-up check-ups wherever applicable.
• Consumption of drinking water is at safe level in Hinopak; regular checks are conducted to determine its fitness.
Monitoring and Awareness • Safety Patrol plan (management-led) is in place for 2009 implementation. About eight safety patrols conducted in 2008.
• Accident and incident monitoring system given emphasis towards a safer environment. "Near-miss" incidents tracked, reported and shared to avoid occurrences.
• Daily update, monitoring and maintenance of our Safety Calendar to highlight safety status continues.
• Mock drills given to employees and Emergency Response Program (ERP) Teams to check readiness in case of emergencies. ERP Teams include Rescue, Firefighting, Spill, etc.
• Safety Guidelines were published both English and Urdu languages; also visually illustrated for easy understanding of our workers.
• Periodic safety trainings given to employees; safety reminders/guidelines part of our employee orientation program.
• Daily morning safety meetings led by team leaders/executives are conducted at shop floor level, after morning exercises.
• Japanese 5-S concept highlighting organized, clean and safe work environment continuously reminded to employees through peer training and programs.
• Occurences of fatal/major accidents shared with parent companies; learnings and adoption of new measures from experiences shared by other Toyota/Hino affiliates observed. HINOPAK MOTORS LIMITED Global Compact - Communication on Progress: June 2008~ June 2009
Principle 1 Business support and respect the protection of internationally proclaimed human rights. Commitment Policies, Systems, Processes and Actions Performance Programs
System Maintenance, Citation • Hinopak' initiatives cited by the Employers' Federation of Pakistan through its "Best Practices Award on Occupational Health, Safety and Environment" organized in April 2009.
• Our certification in OHSAS 18001 received in July 2008 is the first in the industry in Pakistan.
Basic Employee Facilities • Ever compliant with Pakistan's Factory Act requirements, hygiene cards of our workers are maintained. Medical Coordinators staff our in-house clinics and ensure that all requirements are met.
• Emergency medical assistance was permitted over and above the medical insurance coverage and limit to medical reimbursements provided to our employees and their dependents was increased by 50% in 2008.
• 13 employees currently enjoying our subsidized MBA program currently in collaboration with two of Pakistan's premier business schools.
• Employee training/development given to 1,400 employees equivalent to approx. 25,000 training hours in 2008.
• Eight (8) employees are sponsored (USD 2,081 each) annually for religious pilgrimage (Hajj).
• Cash awards and other monetary benefits for 2008 employee performance provide despite the company's financial constraints.
• Permanent employees getting married are given token gift from the company.
• Monthly attendance bonus is given to permanent workers.
• Hinopak employees, permanent and contract (including contractor's) are insured.
Employee Quality of Life, • Recreation provided the much-needed respite and relaxation for our employees. Around 500 employees in 2008 enjoyed each Wellness others' company and came back recharged and more productive.
• 17 female employees who could not join company-sponsored out-of-town picnics were given separate opportunity for recreation.
• Additional gym/recreation room was opened in our Body Operation Plant, allowing more employees to enjoy this facility.
• Leave Fare Assistance is provided as benefit to our employees to allow them an amount for their annual leave.
Employee Satisfaction • Employee feedback sought through various surveys related to employees' decent work requirement, like "morning exercise survey", "stress level", and "company's climate." Action plans/implementation based on results gathered.
• We benchmarked our best practices against other companies'; participated in formal and informal executive compensation and benefits survey, initiated a workers's salary survey-- all in the name of looking for ways to improve our employees' employment terms and conditions. Internal Communication • New way of reaching out to employees devised; our HR personnel have started physical visits to personally meet colleagues and hear their problems. Actions include forwarding feedback to other functions if need be, for implementation.
• An exclusive information room ("Kokoroe Kumra") depicting function-wise initiatives was established for employee and public consumption.
• More walls were dismantled to improve the flow of communication within the office setting.
Total Quality Management Continuous Improvement • Monitoring and maintenance of our Quality Management Systems ensure better working systems and processes for employees. Our QMS certification is valid till 2010.
• Daily, half-hour training at shopfloor are conducted through our Quality Assurance Department to educate personnel on process improvements.
Industrial / Employee Relations Fair Investigation • Formal Grievance Handling System was drafted, where both workers' and management representatives are to be involved to exclude bias and/or ensure fairness.
• Complying with the Industrial and Commercial Employment (Standing Orders) Ordinance 1968, also ensures objectivity in following the procedures for disciplinary actions against misconduct. Hinopak employees are assured of their rights, fair treatment and the opportunity to be heard. HINOPAK MOTORS LIMITED Global Compact - Communication on Progress: June 2008~ June 2009
Principle 1 Business support and respect the protection of internationally proclaimed human rights. Commitment Policies, Systems, Processes and Actions Performance Programs
• Our Whistle Blowing Committee continued to receive, investigate, analyze and act upon if required, the 14 complaints/ suggestions received for the period beginning April 2008 and ending March 2009.
Employee Recognition • Monthly recognition of employees in punctuality and attendance since 2008. One year achievement award in June 2009 for 26 workers and executives.
• Retiring employees given farewell parties.
Security • Wide use and provision of security services to protect our people and properties has been one of our prime responsibilities. This service extends to the protection of our top management in their residences.
• Hinopak's foreign visitors are always given extra security advice/travel advisory and support.
• A Security and Communication Team and system are in place to handle emergency and risk situations.
• Security measures improved in offices and plants; installation of walk-through metal detectors, gate and road barriers, speed breakers, CCTVs, rerouting entry points for employees and public.
Employment Policy for • Hinopak compliant with the Workmen's Compensation Act relating to disability. Workers who could not continue certain job due to Disabled People disability met at work are transferred/given alternate job.
• We follow the government directive to meet minimum requirement of employment of disabled persons.
Forcible Displacement • Hinopak does not have a record of forcible displacement with reference to Standing Order (Ordinance) 1968 of the Labor Laws. Prevention
Customer and End-users' Rights / Product Quality & Availability • Our customers and end-users' right to safe, affordable, durable and environment-friendly products is upheld. We earned Helpline Protection Trust's award for consumer protection in their "2nd CSR Award" in 2008.
• Product Support network development continued by exploring new or upgrading dealerships to ensure customer support wherever and whenever required. One dealer upgraded this year.
• Recent opening of an "Express Maintenance Centre" in one of our dealer's premises made possible after extensive training given to their mechanics through our Product Support Training Centre.
• Breaking into the export market in 2009 would make our products within the reach of more customers and end-users and improve our employees' and other stakeholders' livelihood. Export bus had already been developed and being quality-checked in Japan before mass production.
Stakeholder Participation/Engagement Supplier/Contractor/Vendor • Specific "welfare/environment" clause in our Vendor Evaluation Form only qualifies those who meet requirements on their labour's Rights, Recognition of Human safety, working conditions and environment, respect for fundamental human rights and measures for improvements taken. Rights • While our suppliers/contractors are advised to follow our safety, health and environment requirements, their training is part of our overall safety program.
• Like employees, contractors' and suppliers' induction into Hinopak is based on transparency and merit.
• Approximately 1,000 vendors/vendors' employees were given free training by our internal resources in various areas like 5-S, Inspection Techniques, TQM, TPS, etc., with the objective of helping them achieve improved bottomlines through effective and efficient operations.
Education / Community • Adoption of SITE Model School that was inaugurated in August 2008 immediately bore fruit with an increase in student population Development and Welfare by 40%. Facilities provided/improved by Hinopak include library, auditorium, recreation room, toilets, etc. Students were given uniforms. • Preparations for SITE Model School Technical Wing is in progress. Through the tools/equipment and furniture that we will provide, Grade 9 students will be provided technical skills that they can capitalize on later in life.
• 5-S and Firefighting/Prevention trainings have been extended to the students and teachers of our adopted school to acclimatize them with safety factors.
• Hinopak's Apprenticeship Program is now on its second batch since holding it in-house. 22 boys are presently undergoing second year program under different technical trades. HINOPAK MOTORS LIMITED Global Compact - Communication on Progress: June 2008~ June 2009
Principle 1 Business support and respect the protection of internationally proclaimed human rights.
Commitment Policies, Systems, Processes and Actions Performance Programs
• More than 1,500 students and teachers have visited Hinopak since March 2008 when we formally opened our gates enabling them to learn our best practices and exposing them to our business operations.
• Hinopak Skill Promotion Scholarship was extended to 10 students of Pakistan's renowned engineering school, producing linkage and therefore, sustainability with regard to our business operations and human resource development commitment.
• Our 2008 internship program saw to about 95 students getting acclimatized with a professional environment. Project-based, this program allowed linkage between theory and practice, much appreciated by students and the educational institutions alike.
• Book donation made to PECHS Girls' School.
• Hinopak Community Health Centre was established for the community close to our premises. Proximity of the initiative allows us to regularly monitor its operations. We also provide medicines aside from providing the medical equipment and gadget required for its operation as a primary health care centre. • SITE Model School schoolchildren and teachers participated in our health awareness program. Danger of Eating Betel Nut (very common in Pakistan, chewed by adults and youngsters alike), i.e. oral cancer, Firefighting/Prevention, and 5-S were conducted for them this year. • Potable as well as gardening water was provided to SITE Model School.
• Trees were planted inside and outside our premises either as company activity or as part of our employees' PSR (Personal Social Responsibility) commitment. Surrounding areas were also cleaned in coordination with the local government.
• We continued in promoting a sporting spirit in the community and sponsored the "4th Golf Tournament" in May 2009 in addition to the cricket and hockey sponsorships in the past years. • Trainings provided to public: Drivers Safety Training, Technicians Training, Eco Driving, Fuel Saving Seminar with 771 participants in 2008. • 99 students were given professional, low-cost training through our Motor Vehicle Training, in 2008.
• We brought training at customers' doorsteps through our Mobile Training Unit that was inaugurated in 2008. 314 participants benefited by year-end.
• Hinopak donated to December 2008 Quetta earthquake victims equivalent to one-day's salary of employees.
• Company donated in cash/kind to 31 organizations in 2008.
Road Safety Campaigns • We share our parent company's slogan "concern beyond cars." Our stakeholders benefit from our Road Safety Campaign through Safe Driving and Econo-Drive programs conducted through our internal resources and Pakistan's Highway Patrol.
• About 75 Hinopak fleet and plant drivers participated in the Safe Driving conducted by the National Highway Authority in June 2009.
Personal Social Responsibility • Employees donated their one day salary to December 2008 Quetta earthquake victims.
• A group of employees with family members united to clean a Karachi beach.
• A group of employees pooled resources together for tree sapling purchase and plantation and cleaning of surrounding areas.
• Some employees donate their time and expertise in the providing technical training to indigent youth.
• Some employees head or are members of local/international clubs for the pursuit of community welfare and development. HINOPAK MOTORS LIMITED Global Compact - Communication on Progress: June 2008~ June 2009
Principle 2 Business should ensure that they are not complicit with human rights abuses.
Commitment Policies, Systems, Processes and Actions Performance Programs
Hinopak is committed to Code of Conduct Code of Conduct Adherence • Employee commitment to the was sought through handwritten signatures 2007 while in 2008, employees pledged by email avoiding complicity of confirmation. human rights abuses in all • its areas of operation. Complaints (contravention to the Code) were monitored/tracked by our Whistle Blowing Committee. Countermeasures/action accordingly given/done.
• Suggestion boxes available at conspicuous areas provided convenience in forwarding complaints/suggestions. Open working environment at Hinopak gives the spirit of freedom.
• We follow the requirements of Standing Orders (Ordinance) 1968.
Credo, Mission, Values, • We support Hino's Credo incorporating the Mission of "making this world a better place to live in" through social contribution and Practice concern for all stakeholders including compliance with all laws.
• We espouse the value of "integrity" as embedded in the Hino Spirit principles followed by all Hino affiliates worlwide. This principle tells all employees to practise principle-centered leadership, to respect all individuals and avoid any type of human rights abuse. Hino Spirit is integrated in our training, orientation and recognition initiatives.
Employees Equal Opportunity Provision • Female employees are given equal opportunity in all aspects of employment including training, promotion, and other benefits. Female engineers can be found in our plant, previously unheard of in this culture.
• We fully advocate gender equality; we signed and communicated the Gender Equality Policy and Process Guidelines (developed by the Employers' Federation of Pakistan in conjuction with ILO) in December 2008.
• Equitable career paths and growth opportunities are available for female employees.
• We practice the principle of "diversity" as one of the Hino Spirit values embed in areas like recruitment, vendor / supplier pre- qualification, promotion, etc.
External Public Consumer Protection • Our participation and citation/award from the Helpline Trust's "2nd CSR Awards" last year has proven our commitment to our consumers' rights in terms of product quality, service and authenticity. Helpline Trust is Pakistan's leading consumer protection agency. • We follow laws of the land, Pakistan's and others. We ensure that foreign laws and regulations are absolutely referred to in our local and export product development, ensuring public right to safety and health.
Vendor/Supplier Pre- • Our vendors' / suppliers' premises and operations are checked/inspected before they are inducted as business partners. Non- qualification and Human complicity to human rights abuses is incorporated in our Initial Vendor Evaluation Report where safety of workers, working Rights Observation conditions, labor-management relations, among others things, are included.
• Vendors/suppliers are encouraged to be certified in international management standards and likewise follow laws and conventions pertaining to human rights.
• Encouragement to vendors in observing rights of employees have resulted to improvements in working conditions (Welding areas) and safety (use of PPEs.) HINOPAK MOTORS LIMITED Global Compact - Communication on Progress: June 2008~ June 2009
Principle 3 Business should uphold the freedom of association and the effective recognition of the right to collective bargaining.
Commitment Policies, Systems, Processes and Actions Performance Programs
We uphold freedom of Industrial & Employee Relations Freedom of Association • Hinopak compliant with the latest Labor Laws- the Industrial Relations Act 2008, allowing employees to join any trade union of association and the right of their choice. workers to collective • bargaining. Hinopak workers represented by a registered Labor Union, Hinopak Motors Employees Union, existing since the company's pre- Japanese ownership from 1969. Current membership is about 150, represented by 1 Collective Bargaining Agent.
• Union members elect their officers/executive body every two years; officers given leave for participations in union activities, trainings or workshops.
Collective Bargaining as a Tool • Hinopak has five Worker-Management Participation Committees that include the Collective Bargaining Agent (CBA) to address for Addressing Working issues pertinent to workers' terms of employment, working conditions, etc. Conditions, Terms and • Employment and Relations 12th Union Agreement due this year; 11 agreements since 1986 were signed within 4~7 days and concluded within an average of 35 days since 1986.
Labor Laws as Point of • Hinopak ensures reference to labor laws relating to workers- IRA 2008 and Standing Ordinance 1968, such as freedom of Reference association, including issues including but not limited to disciplinary action and termination.
• Workers' and Union activities likewise reflect labor law requirements; mutual understanding and compliance resulting to a harmonious labor-management relationship.
Labor-Management Relations • Hinopak labor-management relations at Hinopak is exemplary; this harmonious relationship is based on mutual trust, respect and transparency.
• "2008 Excellence Award in Industrial Relations" award received by Hinopak from Employers' Federation of Pakistan in January 2009.
• No strike or cessation in work or loss of work hours due to strike or lockout in Hinopak history.
Engagement / Participation • Workers' active engagement in company affairs/operations has resulted to increased productivity and raised morale. Major thrusts of union participation include meeting production targets, productivity improvement, skill development, wastage control, education of workers, Kaizen, 5-S, health and safety.
• Recent workers' training coordinated with Union include Basic Urdu Literacy Program (2 batches in 2009) and MS Office (for Team Leaders.)
• Hinopak Union organizes and conducts trainings for workers from time to time.
External Relations Engagement • "World Decent Work Day" was participated by Hinopak workers/union members in October 2008.
• Hinopak / Hinopak Union Office visited by various International Trade Union Federation representatives in 2008.
• Various labor-related local and foreign seminars/trainings participated by Hinopak workers-Union members last year; countries visited-- China, India and Singapore.
• Union officers/members active in initiating/supporting Hinopak's donation campaigns for various causes like 2008 Quetta earthquake victims, displaced people due to war on terror, etc. HINOPAK MOTORS LIMITED Global Compact - Communication on Progress: June 2008~ June 2009
Principle 4 Business should suppport the elimination of all forms of forced and compulsory labor.
Commitment Policies, Systems, Processes and Actions Performance Programs
We are committed to the Employees Terms and Conditions of • Sufficient time is given to candidates before they accept our written job offer and employment contracts do not violate any human elimination of all forms of Service, Voluntary Nature of rights or labor law violations. forced or compulsory labor Employment, Freedom to • in all areas of our or Leave Notice period is allowed for termination of employment contract-- generally at 30 days; 90 days for General Manager position- business partners' above. operations. • Exit interviews are conducted to solicit feedback and make necessary improvements as possible.
Contractors/Business Partners Wage Regulations • Hinopak workers receive above minimum wage specified by law.
• Hinopak vendors/contractors advised to meet minimum wage requirement for their workers/employees.
Assessment & Contract • We take responsibility of encouraging and ensuring that all vendors and contractors comply with legal requirements relating to their employees' health and safety.
• Our Initial Vendor Evaluation Report includes the area of forced/compulsory labor.
• Contract with vendor/contractor ensues after confirmation that they do not employ forced/compulsory labor in there area of operations.
Principle 5 Business should support the effectivel abolition of child labor.
Commitment Policies, Systems, Processes and Actions Performance Programs
We prohibit engagement in Employees Prevention Process • We follow the under-age employment clause of the Factories Act 1934 for our workers and apprentices. any form of child labor in all areas of our or our • We acquire and routinely check NIC (National Identity Card) No. of incoming employees/workers/apprentices/interns. business partners' operations. • We have no record of underage employee/apprentice; youngest apprentice on board is 17 years old (minimum age is 14 years old according to Apprenticeship Rules 1966 (Sindh).
Business Partners / External Public Vendor / Contractor Evaluation • Non-employment of child labor is ensured/checked through our Internal Vendor Evaluation Report. and Engagement • Hinopak employees interacting with vendors/contractors and visiting their premises are to report any observation of engaging child labor.
• The Technical Training Program (Auto Mechanic) that is about to commence in partnership with City District Government Karachi and the scholarships we provide are intended to effectively keep the youth off the workforce. HINOPAK MOTORS LIMITED Global Compact - Communication on Progress: June 2008~ June 2009
Principle 6 Business should support the elimination of discrimination in respect of employment and occupation.
Commitment Policies, Systems, Processes and Actions Performance Programs
We advocate equal Employees Workforce Diversity • Our recruitment, selection and hiring processes is inclusive and vocal about giving equal employment opportunities. employment opportunities, diversity and inclusion in • Diversity as a principle espoused by the "Hino Spirit" we follow as Hino affiliate, is being brought to employees' attention through employment and orientation, trainings and other HR activities. occupation and prohibit • Permanent workforce profile (including workers) as of 10th June 2009: males 455, females 18, total 475 (manager/executives any form of discrimination 311, workers 186). Contract workers 1123, apprentices 22. in employment terms and conditions. • Low number of female employees is due to our nature of business operations, not systematic exclusion.
• Average workforce age (including non-permanent workers and apprentices) as of 10th June 2009 is 37 (highest 73, lowest 73.)
Equal Employment • We adopted and communicated the Gender Equality Policy in December 2008. All employees are asked to embed this principle in Opportunities to Women and areas of operation wherever possible. Minorities • Line managers' engagement in providing access to women and minorities while considering our merit-based policy is increasingly felt. More and more females and considered and inducted for assembly/manufacturing/floor jobs.
• No report of exclusion of minorities in our employment activities.
• Job requirements/specifications do not disadvantage certain groups.
Benefits • Minorities are given extra holidays for observance of their religious holidays/festivals.
• Minorities' food requirements are considered in our daily canteen services.
• Despite company's central location, we provide pick and drop facility to female employees in consideration of the local culture.
• Female employees are given separate opportunity and budget for recreation, difficult to do under normal circumstances (male employees' overnight outings) in the local culture.
• Non-permanent employees have access to foreign training even, if required. No bond is secured for such opportunity.
• No known grievance/complaint of discrimination with regard to compensation/benefit of females/minorities.
Career Opportunities • Hiring and promotion on merit, performance, qualification and potential.
• Minorities and female employees given the same training opportunities as the rest.
External Public Employment & Internship • Going the extra mile for female candidates and minorities (employment and internship) is one of Hinopak's 'employer of choice' Opportunities factors.
• Apprentices are absorbed in the workforce under merit.
Business Partners' • Non-discrimination of employees/workers is included in our Initial Vendor Evaluation Report. Engagement, Inclusion and Recognition • Vendors/Suppliers/Contractors belonging to minority groups are inducted as business partners and given equal rights.
• Hinopak's 2008 Vendor Recognition Award went to a minority.
• Contractor's employees (minority group) also extended benefits (gratuity) despite company's financial constraints. HINOPAK MOTORS LIMITED Global Compact - Communication on Progress: June 2008~ June 2009
Principle 7 Business should support a precautionary approach to environmental challenges.
Commitment Policies, Systems, Processes and Actions Performance Programs
We take precautionary Environment Management Systems Leadership Guidance • Environment and Quality Management Systems Steering Committee and Global Compact/CSR Committee composed of our top approach in meeting management and Union representative oversee our commitment to environment care and protection, providing leadership and environmental challenges guidance for all related activities. met in all areas of operations; we are • Safety, Health and Environment (SHE) Committee takes care of the implementation of planned environment-related activities. committed to avoiding and • mitigating negative impact Environmental Patrol System was established to identify areas for improvement. of all our activities on the Legal Compliance • We subject ourselves to NEQS (National EnvironmentQuality Standards) under SEPA (Sindh Environment Protection Agency.) environment. Reports on submitted biannually / quarterly basis.
• Monthly reporting is made to Hino Motors, Japan regarding our environmental measurements and actions.
• Compliance in all aspects have ensured a clean, green record (no warnings, no penalties) for Hinopak.
Maintenance and Monitoring • Environmental Impact Assessment program is in place, ensuring alignment with procedures for identifying, recording and mitigating the environmental impacts of Hinopak operations.
• Monitoring of gas emissions from our equipment and machinery as well as our vehicles - products and fleet vehicles.
Auditing, Certifications and • Two internal audits conducted in 2008; corrective action taken on 21 minor observations/con-compliances. No major non- Awards conformance raised.
• Last surveillance audit conducted in August and November 2008.
• Re-certification in ISO 14001:2004 received in December 2008, surveillance audit due September 2009 and recertification in December 2009.
• We received the ACCA-WWF Pakistan Environmental Reporting Award for Best Environmental & Social Report Award 2008 in Multinational Category, jointly organized by the Association of Chartered Certified Accountants and World Wildlife Fund.
Communication, Awareness, • Awareness on EMS is conducted periodically, especially for new employees; the first six-month period of 2009 saw to 71 Training employees getting briefed on the subject.
• Six internal auditors given refresher training in 2008, another one lined up this year.
• Hinopak participates in public environmental awareness programs, one of which was the Global Compact Pakistan Local Network's 6th Business Talk entitled "Building Business Advantage Based on UNGC Principle on Environment" last year.
• Hinopak Environmental and Social Report 2007~2008 published and shared with the public. HINOPAK MOTORS LIMITED Global Compact - Communication on Progress: June 2008~ June 2009
Principle 8 Business should undertake initiatives to promote greater environmental responsibility.
Commitment Policies, Systems, Processes and Actions Performance Programs
Guided by our mission and Environmental Responsibility Guidelines Hino Credo - Corporate • Hino Motors' mission statement explicitly indicates environmental responsibility: "To make the world a better place to live in by social responsibility Mission, CSR Chapter, Hino helping people and goolds get where they need to go- safely, economically and with environmental responsibility- while focusing principles, we are Spirit on sustainable development." commited to promoting environmentally • Hino's CSR Chapter reiterates this commitment… "we strive to provide products that are safe and environmentally-friendly, responsible thinking within pursuing a responsible balance with the environment in all of our corporate objectives." the Hinopak family, • Hino Spirit enjoins all employees to practice the "Spirit of Altruism" or "Contribution" - for employees to "work for the benefit of marked by sincere your customers and society as a whole, be consistently aware of your responsibility in the local and global community, protect the demonstration of better environment for future generations." environmental-friendly practices. We strive to Hinopak Mission • The mission of Hinopak Motors Limited is reflective of our mother company's mission, "to provide the society with safe, increase our sphere of economical, comfortable and environment-friendly means of transportation by manufacturing and supplying commercial vehicles influence beyond our and services." company by including all other stakeholders and Hinopak Code of Conduct • Principle 1 of our Code of Conduct calls for developing and providing outstanding products and services, with sufficient attention to ensure greater positive safety and environment, and Principle 4 that calls for environmental preservation activity as an integral part of our business, are impact. recognized and adopted by our employees.
Mottainai • This catchy Japanese word, our environmental motto, unites all Hino employees worldwide in the spirit of environmental preservation and cost reduction by simple measures.
Environmental Initiatives at Hinopak Stop Global Warming • Following our principal's (Toyota Motors) "Stop Global Warming" motto/directive, we remained active in our CO2 reduction initiatives. Against our target, we reduced our CO2 emissions by 8%.
• Airconditioners constantly maintained; office temperature standardized at 28C.
• Equipment and machineries constantly maintained to ensure efficiency.
• Employees advised to have their cars tuned every three months to increase fuel efficiency by 10% and reduce pollution.
Pollution Prevention • Anti-pollution drive means controlling our wastes. Solid wastes last year was reduced by 3.5%.
• Effluents from various operations like paint, chemicals, human wastes, etc. treated and disposed off properly.
• Segregation of solid wastes strictly followed; items reused/recycled wherever possible.
• About 550 and 200 trees in first half of 2009 and 2008, respectively, were planted by employees on behalf of Hinopak.
• Reducing pollution through greenery not only gave breathtaking view of our gardens but earned us 1st prize in Horticultural Society of Pakistan's 58th Flower Competition held in February 2009.
• Employees participate in our cleaning / garbage removal activities usually observed in the month of June.
• More than 1,500 eco-bags distributed to Hinopak employees; their usage whenever shopping is encouraged to avoid plastic bag use.
Energy/Water Conservation: • World Water Day was celebrated at Hinopak on March 22, 2008, with a special message about the importance of water to our Reduce, Reuse, Recycle everyday lives and therefore, its conservation continues to be a part of our "mottainai' activities.
• Lights are turned off during breaks/while leaving the room.
• Energy savers are used to reduce 75% of electric consumption.
• Appliances/equipment unplugged after use and not left on stand-by.
• Use of fresh air encouraged; whenever/wherever possible, electric fans/airconditioners turned off.
• Employees advised to turn off computer monitors when not in use.
• Plant effluents converted into gardening water through our Waste Water Treatment plants. Our water consumption level decreased by 6%. HINOPAK MOTORS LIMITED Global Compact - Communication on Progress: June 2008~ June 2009
Principle 8 Business should undertake initiatives to promote greater environmental responsibility. Commitment Policies, Systems, Processes and Actions Performance Programs
Employee Sensitization • Various environment care-related literatures distributed on Environment Day 2008 and 2009.
• Group of employees started personal social responsibility (PSR) activities linked with company's CSR activities; personal money used in their tree planting and environment-cleaning activities.
• Employees boosted schoolchildren's Environment Day participation by viewing and appreciating students' exhibits at Hinopak.
• More than a thousand employees viewed Al Gore's "An Inconvenient Truth" documentary, shown through a local NGO focusing on environment issues.
• Hino President addressed all Hino employees on June 5, 2009 worldwide on the current global issue of global warming and the need to participate in its
Environmental Initiatives with External Pollution Prevention, Energy • We partnered with the local government in cleaning surrounding areas (garbage removal and drainage cleaning.) Stakeholders Conservation • SITE Model school students joined Hinopak employees in clean-up activities in June 2008, another one planned this year.
• Employees advised to involve family members in simple energy conservation practices like switching off lights when not in use, turning off tap water while brushing teeth, reducing shower time, keeping the food at room temperature before heating, etc.
• Around 30 free tune-up camps/service camps were held in various parts of the country in 2008, resulting cleaner air from 695 more clean air-emitting, fuel-efficient vehicles. First six months of 2009 had already seen to the free servicing of 112 vehicles.
Sensitization / Awareness • Attention to environment highlighted in our promotion and advertisement drives for CNG bus and High-power Dutro to sensitize Campaign customers/end-users and public in general to the linkage between our products and environment responsibility.
• About 100 students and teachers from two schools joined in last year's Environment Day celebration through poster making competition and exhibition held in the company premises. This figure more than doubled this year, with a third school participating.
• Customers/end-users and general public (students of our Motor Vehicle Training Program) were given training/awareness program in the importance of vehicle maintenance and its positive impact to the environment.
Principle 9 Business should encourage the development and diffusion of enviromentally friendly technologies.
Commitment Policies, Systems, Processes and Actions Performance Programs
We are committed to the Environment-friendly Technology Manufacturing Vehicles that • Hinopak introduced the first locally-manufactured CNG bus in the country. adoption of environment- Burn Cleaner Fuels and Emit friendly technologies that Less Fuel • From being Euro-I compliant, Hinopak has moved its standards to Euro-II engine technology despite the absence of local reduce environment impact regulations on the same mainly because of absence of clean fuel. from our products and day- Testing and Development • We strictly follow Hino's green product development procedures. to-day operations. We ensure effective • All products undergo smoke belch tests to ensure quality of emission. environment risk management and Use of Environment-Friendly • Use of environment-friendly gas R-134a & R-404a for air conditioning of buses & refrigeration of trucks is ensured. compliance across all our Parts / Raw Material business activities, from • We monitored and reduced use of diesel in our generator sets and other machinery used for production processes. product design/development to • Quality of fuel, lubricants & other components are being checked by standard specification. product sale. Environmental-friendly • Production/Manufacturing processes reviewed regularly. Processes • For proper maintenance of vehicles, Hinopak is provides authorised service stations/workshops.
• Paint sludge, FRP & glass wool incineration are done by third party to reduce hazardous waste. HINOPAK MOTORS LIMITED Global Compact - Communication on Progress: June 2008~ June 2009
Principle 10 Business should work against corruption in all its forms, including extortion and bribery.
Commitment Policies, Systems, Processes and Actions Performance Programs
We support the anti- Ethical Guidelines UNGC Subscription • Hinopak is very vocal about its UNGC subsription and commitment to all 10 principles. This commitment is commmunicated corruption principle and through publications, press releases, presentations, displays, etc. are committed to continue our 'no-tolerance' policy to Hinopak Code of Conduct • Our Code of Conduct was revisited; Principles 2, 3, 8 and 11 explicit on our pledge to work against anti-corruption practices. any corruption practice. • Employees renewed their commitment through electronic acknowledgment of this pledge.
• Orientation of new hires included briefing on Code of Conduct.
Hinopak Whistle Blowing • The Whistle Blowing Committee, leading in the oversight of our anti-corruption commitment, met as scheduled. System • There were seven complaints received during the preceding 9-month period; they were reviewed, looked into and reported to principals in Japan. None of the complaints relate to corruption.
Hino Credo, Mission, CSR • "Trust" was invoked twice in the Hino Credo containing overall company mission, core principle and CSR charter, where complying Charter with laws and regulations and maintaining high ethical standards is a major thrust.
Hino Spirit • Hino Spirit principle on "Sincerity, the Value of Integrity" contains guidelines that employees follow in respect of anti-corruption.
• Five sessions to brief new employees on Hino Spirit principles have so far been conducted from December 2008~May 2009.
Risk Assessment System J-SOX • Internal Control Framework guides Hinopak in following the J-SOX (Japan's version of Sarbanes-Oxley Act). Eight internal audits were conducted within the preceding one year.
• Internal controls in inventory, financial reporting, and IT were improved.
• Hinopak's MD/CEO declared compliance with the J-SOX requirements in a report sent to our principal in Japan.
Corporate Governance • External auditors publicly attested Hinopak's financial reporting integrity as contained in our Annual Report.
• Hinopak's MD/CEO publicly affirmed compliance with corporate governance regulations.
HR & Other Processes Process Improvement • HR processess such as payroll, leave application, attendance management were automated to ensure data integrity and avoid manual errors/tamperings.
• Recruitment and hiring policy is very vocal on transparency and merit; muiltiple assessments ensured all hirings were done objectively.
• Personal contact/interaction with Sales Tax personnel eliminated by electronic payment/processing.
• Proposals/quotations from multiple vendors/suppliers sought, reviewed and seen by multiple Hinopak personnel before approval.
Stakeholder Engagement Vendor Pre-qualification • Our vendors are subjected to a pre-qualification assessment, the Initial Vendor Evaluation Report, before they inducted as business partners.
Public Sensitization, • Corporate Social Responsibility and UNGC principles made part of annual Hinopak-Vendors conventions, sensitizing them on good Partnerships and responsible corporate citizenship.
• Hinopak visitors were briefed about the company's Global Compact/CSR commitment and initiatives.
• Hinopak participated and received Helpline Trust's "2nd CSR Award" in 2008 for the company's efforts in protecting consumers' rights through product integrity and service.