Communication On Progress 2014 1 UNITED NATIONS GLOBAL COMPACT Communication On Progress 2014 HUMAN RIGHTS PRINCIPLE 1: Businesses should support and respect the protection of P1 internationally proclaimed human rights; and PRINCIPLE 2: P2 Make sure that they are not complicit in human rights abuses. LABOUR PRINCIPLE 3: Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining; P3 PRINCIPLE 4: the elimination of all forms of forced and compulsory labour; P4 PRINCIPLE 5: the effective abolition of child labour; and P5 PRINCIPLE 6: the elimination of discrimination in respect of THE UNGC PRINCIPLES employment and occupation. P6 The UN Global Compact asks companies to embrace, support and enact, ENVIRONMENT within their sphere of influence, a set of core values in the areas of human Businesses should support a precautionary approach rights, labour standards, the environment and anti-corruption. PRINCIPLE 7: to environmental challenges; P7 PRINCIPLE 8: undertake initiatives to promote greater environmental responsibility; and P8 PRINCIPLE 9: encourage the development and diffusion of environmentally friendly technologies. P9 ANTI-CORRUPTION PRINCIPLE 10: Businesses should work against corruption in all its forms, P10 including extortion and bribery. The above icons appear in the document to indicate that the relevant principle is addressed by an activity mentioned in the page. As shown above, the colour of the icons indicate the broad area being addressed. OTHER UN InitiatiVES MESSAGE OF CONTINUED SUPPORT CARING FOR CLIMATE Having taken part in the Caring for Climate initiative from With a 27 year tradition of building teams and supporting livelihoods; August 2008, MAS is one of 400 companies from over 65 and nurturing communities in which we operate, MAS Holdings countries to be a part of this movement. The world’s largest is happy to present our 11th Communication on Progress to the global coalition, Caring for Climate is led by the UN Global United Nations Global Compact. Compact, the UNEP, and the UNFCCC. Based on the consensus that climate change will affect business and society in vital ways, consultants 2014 has been a hallmark year for us in the work we are doing from the UNGC, UNEP, and WBCSD prepared a statement titled “Caring for Climate, to standardise human capital management practices across all The Business Leadership Platform”, and it is this statement which offers participants countries in which we operate, maintaining the sanctity of the core an opportunity to demonstrate climate leadership. MAS chooses to endorse and values and culture of the company as we venture into new markets implement the Caring for Climate initiative through CEO support, tactical changes within and adjacencies in the fashion and lifestyle space. the organisation, and on-going public communication. This year our sustainability practices were recognisd by the Ceylon Chamber of WOMEN’S EMPOWERMENT PRINCIPLES Commerce, as MAS Intimates won the Best Corporate Citizen Sustainability Award The Women’s Empowerment Principles are the end result of 2014. The 11th Annual Best Corporate Citizen Sustainability Awards by the Ceylon a collaboration between the UNGC, the United Nations Entity Chamber of Commerce (CCC) recognises the efforts of Sri Lanka’s corporate entities for Gender Equality (UN Women). The principle offer guidance to adopt ‘Best Sustainability Practices’ in their business processes. In addition to to companies on how to empower women in the workplace, winning the overall best Corporate Citizen Sustainability MAS Intimates also won 6 other marketplace, and community. The seven principles are as follows: awards: the Category Winners for both Environmental Management and Community Relations, Sector winner for Manufacturing, and the Triple Bottom-line Awards for Social 1. Establish high-level corporate leadership for gender equality. Sustainability and Environmental Sustainability. 2. Treat all women and men fairly at work – respect and support human rights and non-discrimination. We have continued to work on our overall sustainability journey with the work on the 3. Ensure the health, safety, and well-being of all women and men workers. formulation of an Integrated Sustainability Strategy across the organisation. 4. Promote education, training, and professional development for women. 5. Implement enterprise development, supply chain, and marketing practices that We continue to support the cause of sustainability notably with the Global Compact empower women. where for the second consecutive year our Director of Women’s Empowerment served 6. Promote equality through community initiatives and advocacy. on the UN WEPS, Leadership group and was on the Awards Committee for the WEPs 7. Measure and publicly report on progress to achieve gender equality. CEO Leadership awards. We also continue to serve on the steering committee of the Global Compact Sri Lanka Network. MAS was involved in the consultation process when the seven principles were formulated. In November 2011, the Chairman of MAS signed the CEO Statement of Support for This report highlights our key policies, programmes and initiatives which promote the the Women’s Empowerment Principles. MAS Holdings (Sri Lanka) and Mr. Mahesh mandate of the 10 Principles of the Global Compact and reiterates our continued Amalean, Chairman of MAS Holdings, were awarded the Women’s Empowerment support of the same. Principles Leadership Award 2013 - Cultural Change for Empowerment Award 2013 for MAS Women Go Beyond, a distinctive programme established in 2003 that challenges Dian Gomes the accepted norms of garment industry employment for women in Sri Lanka and the Head, Group Branding and CSR South Asia region. MAS Holdings (Pvt) Ltd. BUSINESS FOR PEACE After a decade of researching the role of business and its contribution to peace, in September 2013 the UN Global Compact launched the Business for Peace initiative. The platform assists companies in implementing responsible business practices in conflict-affected and high-risk areas. MAS endorsed the initiative in September 2013, and is proud to be one of the founding participants of Business for Peace. MAS AT A GLANCE 08 OUR VALUES LIVING OUR VALUES 09 • The Way We Work • Living Green • Women Matter • Champions by Nature 10 STRENGTHNING COMMUNITIES • Education: Shaping the Future • Community Health: Building a Healthy and Safe Community • Building a Sustainable Future • Embedding a Sporting Culture 83 APPENDICES 104 Communication On Communication On Progress 2014 8 Progress 2014 9 OUR Values There were a strong set of beliefs which our Leaders shared in common that strengthened our culture, which we defined as the MAS Values. Our core beliefs and ideas became our greatest strength and has bought MAS from a single manufacturing facility to a global fashion and lifestyle brand. Following is a brief description of our values and is our duty to learn and un- derstand these practices and inculcate it in your daily work practices. MAS AT A GLANCE MAS is the region’s leading manufacturer of intimate apparel, performance wear and swimwear, with an annual turnover surpassing USD 1bn. Our world-class apparel facilities spread over ten countries provide employment to over 70,000 people. Our design, innovation and manufacturing excellence inspire the world’s leading fashion and retail brands. Our products and services are enhanced by a vertically integrated supply chain, and supported by a full scale lean enterprise platform. We have broadened our focus beyond apparel, to provide SAP-based IT solutions to the global apparel and footwear industry. MAS also owns Sri Lanka’s first international lingerie brand, amanté, and has diversified through design and manufacturing to encompass lifestyle and fashion solutions. Our people are our pride; a global team distinguished by our passion and drive for excellence. We nurture our people into world- class champions. We draw strength and support from our community as a responsible corporate, whilst investing in their wellbeing and that of future generations. At root, MAS is not just a business; it is truly a way of life. Communication On Communication On Progress 2014 10 Progress 2014 11 ATTRACTING AND RETAINING THE BEST P1 P1 A cloud-based Human Resource platform entitled ‘Talent2o’ is a group-wide talent recruitment strategy, designed to identify and reach qualified candidates with targeted LIVING OUR VALUES messages and custom recruitment campaigns through one seamless process. The P2 development of the strategy was preceded by analysis of the human capital shortage P2 At MAS, our values shape the culture and define the character across the business and will provide equal opportunity to skilled candidates. In addition of our company. They are at the heart of who we are and what to the core process, it also aims to build a talent pipeline by maintaining relationships we do. Together, we share a commitment to safeguard our with both local and international universities and grooming young talent to be employed P3 P3 company’s integrity. Our continued success depends on our at MAS. Subsequent to step-by-step training programmes on the usage of the platform, ability to make decisions that are consistent with our values. the strategy will be launched in 2015. P4 ‘Luminary’, the MAS Performance Management System which was standardised P4 regulations and avoid even the perception across the business, was launched in 2014 as the first module to be rolled out THE WAY WE WORK of impropriety or a conflict of interest under the Talent2o strategy. It was developed to create accountability at all levels, stipulated by the Code of Conduct. P5 linking individual performance to organisational performance, thereby linking pay and P5 With the objective of inducting our rewards to performance. The three stages of the system include goal setting, mid- people into the company culture, values In keeping with the principles of the year review and year-end review where an employee’s performance is assessed by the and enabling them to gain a cohesive Business for Peace initiative, most of our Senior Management.