Hinopak Motors Limited Human Rights Hinopak Motors Limited UNGC Communication on Progress 2014 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, 2014 = 310 (991 including contract and contractor’s employees) For following refer to Annual Report 2013-14 available at: http://www.hinopak.com/finance.htm Scale of the organization Net sales (2013-14)= Rs. 9.21 billion 2.8 Total capitalization = Rs. 0.72 billion (0% Debt, Surplus funds) Quantity of Products Produced (2013-14) - Hino Chassis (including exports): 1,452 - Bus and other specialized bodies (including export): 266 - Hilux Frame: 4,160 Significant changes during the reporting 2.9 None period regarding size, structure, or ownership. 1. “Hino Parts & Service Double Victory Award” for the year 2012. Awards / citations received during the 2.10 reporting period 2. EFP/ILO Occupational Health & Safety Best Practices Award 2013. 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 2014 - 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 2013 ~ 30 April 2014 1. UNGC Communication on Progress (COP): 21 June 2013 3.2 Date of most recent previous report/s 2. Hinopak Environmental & Social Report 2009-10 3. Annual Report 2013-14 3.3 Reporting cycle Annual Ahsan Waseem Akhtar Manager HR, Admin & HSE [email protected] Contact point for questions regarding the Nabila Mujahid Faisal 3.4 Health, Safety & Environment Manager report or its contents [email protected] Maria Azher Human Resource Development Executive [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 2014 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 9 members; where 6 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 Human Rights of internationally proclaimed human rights; and Commitment: Hinopak Motors Limited is committed to respecting and Principle 2: make sure that they protecting the dignity of people in all its areas of operations. All stakeholders are not complicit in human rights are assured of sincere efforts to uplift conditions with regard to health and abuses. 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 . Healthy & Safe Working Environment - 1,610 training man-hours achieved under staff training on Picture 1: Shop-floor Fire Prevention occupational HSE (ref picture 1). Training - Introduction of a new concept of Complete Check Complete Find- out Activity (CCCF-α) on company wide basis. - Promoting workers participation in developing safety culture in the company by introducing Safety Trophy Competition on the shop floor (ref picture 2). - Two in-house Health & Safety Conferences held during this reporting year (ref picture 3). - Workers were involved to highlight safety problems of their areas through ‘Safety Suggestion Card’. - HSE Training for employees and interested parties (Vendors/ Picture 2: Safety Trophy being Contractors/ Employees’ Children) were organized. presented to the winning shop workers - Medical tests were done for employees working in high risks areas like Chemical Handlers/Food Handlers etc. - Anti-dengue mosquito spray was done within and around the company premises. - Furthermore, in collaboration with neighboring companies, anti- dengue mosquito spray was also done outside the premises of neighboring companies during the monsoon season (ref picture 4). Monitoring & Awareness - Daily safety monitoring/patrolling around the assembly and manufacturing facilities being done through the Safety Picture3: 2nd Health & Safety Conference Administration Team (SAT). - Monthly HSE Meeting is held regularly to review progress so far done to enhance HSE system. 4 Hinopak Motors Limited Human Rights - 25% reduction in minor accident compared to last year, no major accident reported in Apr 2013 till Mar 2014 (ref. picture 5). - Comprehensive follow up was done of Workers Feedback Forms raised through Complete Check Complete Find-out Activity (CCCF- α). B. TOTAL QUALITY MANAGEMENT . Continuous Improvement Picture 4: Anti-dengue mosquito spray being done around the neighborhood - Kaizen initiatives, involving manufacturing and non-manufacturing functions, being implemented and monitored and are also participated by top management. - Kaizen meetings are held periodically. - Recertification of Quality Management System ISO 9001:2008 successfully completed in March 2014 (ref. picture 6). C. EMPLOYEES . Labour-Management Relations - 6 workmen were given laptop computers. A lucky draw was done to identify the workmen who received the computers (ref. picture 7). - Nine employees (7 workers and 2 officers) were sponsored Picture 5: Occupational Accident Trend ($2,870/- each; 90% of the total amount) for their religious pilgrimage (Hajj) in 2014. Identification of the recipient workmen and officers under this scheme was also through lucky draw. This year one more executive was added to the total number. - No strike or cessation