General
Information
Last Update:
March 1, 2012
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Responsibility for employees – global standards

  • National law and International Labor Organization’s core labor standards as minimum standard
  • Evaluation of adherence to voluntary commitments through a global monitoring system
  • We strive to ensure that our working conditions comply with ILO standards, OECD Guidelines for Multinational Enterprises and local requirements such as industry standards

Compliance with national law and the core labor standards of the International Labor Organization (ILO) is the foundation of our social responsibility. Moreover, we aim to harmonize our working conditions worldwide with our voluntary commitments and the relevant ILO conventions and OECD Guidelines for Multinational Enterprises, as well as with local requirements such as industry standards. We evaluate our adherence to our voluntary commitments using a monitoring system implemented Group-wide. It contains three central instruments:

  • external compliance hotlines,
  • the annual survey in our Group companies to inspect the prevailing working conditions, and
  • close dialog with our stakeholders, such as employee representatives and international organizations.

In 2011, our external compliance hotlines received 53 calls (five inquiries and 48 complaints) relating to labor and social standards, of which 13 related to verifiable grievances. The results of the annual survey covered 100% of our employees in 2011. If the survey evaluation indicates that our voluntary commitments are being insufficiently implemented, we investigate this information and introduce remedial measures. A complaint filed with the OECD in Brazil in 2010 was withdrawn in 2011. Following internal investigations, no infringement of the right to freedom of assembly and collective bargaining could be identified. In order to improve our worldwide adherence to international labor and social standards, we carried out a regional risk analysis for our businesses in 2011.

The compensation of our employees worldwide is based on objective criteria. An analysis of all management-represented employees at our site in Ludwigshafen has shown that there is no systematic difference in compensation of women and men with comparable jobs and qualifications. The difference in income was found to be less than 1%. We have a “virtual sustainability team” in South America in order to raise awareness of sustainability issues among young managers at an early stage. In 2011, the 34 members of this team invested 10% of their working time in the implementation of our sustainability strategy.

In 2011, we again met with our German employee representatives in the “Wittenberg Dialogs” to discuss the Code of Responsible Conduct for Business, which focuses on strengthening the social market economy and encouraging responsible action. We are committed to both success-oriented and value-oriented leadership in accordance with the social market economy.

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Survey of ILO core labor standards / human rights 2011

 

1

Fewer than 1% of our employees are working in countries that have national legal restrictions with respect to freedom of association and collective bargaining.

 

Process implemented

Effectiveness of the process

Prevention of child labor

100%

Verification of age of employee when hired

100%

Employees are over 15 years of age when hired

Prevention of forced labor

100%

Employment contract based on employee’s voluntary agreement

100%

Employees have a right to unilateral termination of the employment contract

Prevention of discrimination

100%

Personnel policies based on objective criteria

 

In 2011, we received 40 calls. Misconduct was identified in 10 cases and countermeasures were taken

Employees’ right to freedom of association

100%1

No company measures to fundamentally restrict freedom of association

92%

Employees are working at a company in which employee representation exists

Employees’ right to collective bargaining

100%1

No company measures to fundamentally restrict freedom of collective bargaining

88%

Employees are working at a company in which working conditions are based on a collective contract and employee representation exists

Human rights

100%

Reports investigated

 

In 2011, we received 48 calls (40 of which related to discrimination). Misconduct was identified in 13 cases and countermeasures were taken

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