Social Report Pe, BP wearer since 2004 BP SOCIAL REPORT

Transcription

1 Social Report 2011

2 Pe, BP wearer since 2004 Social Report 2011 PREFACE... 5 BP BIERBAUM-PROENEN... 7 OUR IDENTITY... 9 THE BP PRODUCTS COOPERATION ELEMENTS OF FWF S CODE OF LABOUR PRACTISES...14 SYSTEM BP ORGANISATION AUDIT RESULTS AUDIT RESULTS 2011 SUMMARY THE BP COMPLAINT SYSTEM BP TARGETS FOR BP SOCIAL REPORT

3 Preface Patrick, BP wearer since 2011 For more than 220 years, BP has been an owner-managed family business that has always been committed to sustainable action. For us, sustainability means combining the three dimensions ecology, business and society in the best possible way. We believe that contradictions are of a short-term nature and we must continue to balance them carefully because, in the long term, all three dimensions are interdependent. This is why we have made sustainability an important basic principle of our corporate identity: WE CREATE SUSTAINABLE VALUES FOR THE PEOPLE WHO WORK WITH US. ECONOMIC SUCCESS EQUIPS US FOR THE FUTURE. WE STAND FOR FAIR WORKING CONDITIONS AND MAKE RESPONSIBLE USE OF ENVIRONMENTAL RESOURCES. Basic principle 5 of the BP identity Observing this basic principle gives meaning to our actions and is essential for long-term success. On 1 July 2010, we became the fi rst supplier of workwear in Germany to join the Fair Wear Foundation (FWF) multi-stakeholder initiative. This group of stakeholders business associations, trade unions and non-governmental organisations, such as the Clean Clothes Initiative guarantees independence and reliability. We are convinced that our membership of the Fair Wear Foundation will provide us with the best means possible for monitoring and improving fair working conditions at our international production sites and, at the same time, enable us to offer maximum transparency. Within the framework of our Fair Wear Foundation membership, audits have been performed at fi ve of our sewing factories. At the instigation of other FWF members, audits have already been carried out at two other factories. This means that, by the end of 2011, more than 80% or our workwear was manufactured in factories monitored by the Fair Wear Foundation. There were no complaints with respect to child and forced labour. Areas for improvement were identifi ed with regard to safe and healthy working conditions; these were eliminated as part of the corrective action plans. Apart from a few isolated cases, all employees working for us receive the statutory minimum wage of the respective country. However, by joining the Fair Wear Foundation, we and our production companies have committed to pay living wages. Under the terms of the Fair Wear Foundation, a living wage is the minimum income necessary for a worker to meet the basic needs of a family of four. In many countries, the clothing industry has pioneered the introduction of industrial workplaces. Wages are comparatively low, as demonstrated when, during the course of the further economic development in the respective country, other branches of industry are established, for example, the electronics industry. Living wages are not always paid. This is a challenge that will have to be solved in the long-term by taking a number of small steps. Creating transparency during the course of the audit is a fi rst and crucial step. We believe that fair working conditions will ultimately be of benefi t to all. In the long-term, they will enable us to ensure that highly-qualifi ed employees are working in stable and secure employment relationships and are producing clothing in excellent BP quality. M. Goost H.Goost Managing Directors BP SOCIAL REPORT

4 BP Bierbaum-Proenen WE OFFER OUR WEARERS AND CUSTOMERS WORKWEAR SOLUTIONS THAT MEET THE BP FEEL THE DIFFERENCE CLAIM. QUALITY, DESIGN AND UTILITY ARE AT THE CENTRE OF OUR CUSTOMER PROMISE. Basic principle 1 of the BP identity Benedikt, BP wearer since 2012 FOUNDED 1788 PRODUCTS Workwear and protective clothing (PPE) CUSTOMERS Textile service and trade in Europe EMPLOYEES WAREHOUSE Approx. 360 employees, 110 of which are in Cologne and 250 at our factory in Tunisia We have a very broad and extensive NOS (never out of stock) range. PRODUCTION SITES We dispatch more than 95% of all orders to our customers within 48 hours. A total of 18 factories. In addition to the sample sewing factory in Cologne and our own factory in Tunisia, we have 16 partner companies in Bulgaria, Macedonia, Albania, Tunisia, Turkey, Pakistan, India, China and Vietnam. BP SOCIAL REPORT

5 Our identity Linus, BP wearer since 2002 THE BP IDENTITY INCORPORATES THE PRINCIPLES THAT FORM THE BASIS FOR OUR ACTIONS. WE ARE MEASURED AND EVALUATED BY OUR ADHERENCE TO THESE. 1. CUSTOMER ORIENTATION We offer our wearers and customers workwear solutions that meet the BP feel the difference claim. Quality, design and utility are at the centre of our customer promise. 2. INNOVATION We develop our products and our company through innovation and ongoing improvement in the service of our wearers and customers. 3. EXCELLENCE With our independent initiative, readiness to accept responsibility, mutual support and constant learning from one another, we deliver an excellent company performance. 4. TRANSPARENCY AND TRUST We cultivate a relationship of trust with wearers, customers, suppliers, capital providers and also amongst ourselves; this is based on transparency and honesty. 5. SUSTAINABILITY We create sustainable values for the people who work with us. Economic success equips us for the future. We stand for fair working conditions and make responsible use of environmental resources. 6. DIVERSITY AND PERSONAL DEVELOPMENT We respect and affi rm diversity and create the space for personal development. BP SOCIAL REPORT

6 The BP products: quality, utility and design in five catalogue worlds BP OFFERS A VERY BROAD AND EXTENSIVE NOS RANGE IN FIVE CATALOGUE WORLDS. BProtected Certifi ed protective clothing (PPE) that combines safety, wear comfort, washability, utility and design in a completely new way. BP Gourmet Comprehensive, colourful solutions for the kitchen and service areas. BP Workwear This collection is aimed at industry and trade. It offers numerous solutions, ranging from the complex multifunctional concept to a price-conscious clothing solution. It comes in a large range of different CI solutions. BP Industrial Food In the food industry, HACCP concepts provide the best possible protection for processed foods. Certifi ed BP food clothing is a solution that inspires confi dence and that implements HACCP guidelines to optimum effect. BP Med & Care Solutions for medical practices, hospitals and care facilities. BP creates solutions that make the tough working day easier for people working in these areas by means of top quality and attractive clothing offering high wear comfort. BP SOCIAL REPORT

7 Cooperation Dariusz, BP wearer since 1999 To be able to continue to keep the exacting BP quality promise and provide the high BP delivery performance, BP enjoys long-term collaborations with suppliers in Europe, Africa and Asia and has been working with some of them for decades. We have been working with more than 60% of our suppliers for longer than fi ve years, and with more than 30% for longer than 10 years. Like us, many of our production partners are small and mediumsized family-run businesses. We know that a profi table collaboration is based upon a clear understanding of our interaction and relations. We have formulated this as follows in our basic principles: WE CULTIVATE A RELATIONSHIP OF TRUST WITH WEARERS, CUSTOMERS, SUPPLIERS, CAPITAL PROVIDERS AND ALSO AMONGST OURSELVES; THIS IS BASED ON TRANSPARENCY AND HONESTY. Basic principle 4 of the BP identity In more specifi c terms, this means explaining the full extent of our business model and our expectations to our partners. We listen carefully to our suppliers and build on their strengths. We stick to what we have agreed upon and also expect this commitment in return. A continuous improvement process requires that we challenge one another but also provide mutual support. Mutual trust is also an important element of a good collaboration: to enable the supplier to continue to meet BP s quality requirements, a development process lasting many years is often necessary. Our fi eld technicians provide on-site training in the processing methods used and monitor production. BP SOCIAL REPORT

8 Elements of FWF s Code of Labour Practices Management system SYSTEM TO GUARANTEE SOCIAL WORKING CONDITIONS Employment is freely chosen. No exploitation of child labour. Freedom of association and the right to collective bargaining. Payment of a living wage. There is no discrimination in employment. No excessive working hours. BP takes the following measures to ensure that our production partners offer social working conditions: At the end of the year, BP draws up a work plan describing the targets, procurement strategy, monitoring and complaint system and other social aspects of the collaboration with the BP production partners. BP submits the supplier register together with all relevant information, such as contact data, quantities, turnover, etc. to the Fair Wear Foundation. The production partners must acknowledge in writing the principles of the Fair Wear Foundation and commit to the continuous improvement of the working conditions. This commitment, which lists and explains the principles of the Fair Wear Foundation in detail, is displayed onsite at the company in the local language. It also names a local contact person, including telephone number and address, that employees can notify in the event of an infringement of these principles in order to discuss their complaint. BP commissions an independent Fair Wear Foundation audit team to check all social aspects of the production partners. The audit teams are fl uent in the respective local language. Based on the audit report, the Fair Wear Foundation compiles a plan of corrective measures, which includes all non-conformances that have been established. BP and the production partner work together to develop solutions and to ensure that the recommended measures are implemented promptly. BP documents the results and reports these to the Fair Wear Foundation. The Fair Wear Foundation regularly commissions a control audit of the production partners to ensure that the shortcomings established are eliminated and the working conditions improved. The production partners are audited at least once every three years. Safe and healthy working conditions. Legally binding employment relationship. BP SOCIAL REPORT

9 BP organisation THE DEPARTMENT FOR QUALITY /SUSTAINABILITY IS RESPONSIBLE FOR SUSTAINABILITY AT BP. The head of this department reports directly to the management. The departments of materials management and quality management/sustainability are together responsible for creating fair working conditions and this responsibility is documented in writing in the function descriptions of the respective task areas. PRODUCTION PLANNING BP has a very broad and extensive NOS (never out of stock) range. It is important for our customers to know that there is a ready supply of replacement clothes for employees kitted out with BP workwear. This is why our products have a service life of up to ten years and more. The buffer effect of our large stock and the durability of our products enable us to balance capacity utilisation of our production plants with regard to quantity and model variance. This, in turn, enables us to realise rationalisation potentials, which are essential for the manufacture of competitively priced products. Involving the production partner in the planning process is not only advantageous in terms of economic effi ciency but it is also the best way of preventing unpleasant surprises due to short deadlines or the absence of orders that could have a negative impact on working conditions. However, outdoor products are a special case as demand for them fl uctuates greatly during the course of the year and, as a result, they cannot be manufactured continuously throughout the year. It is particularly important to discuss production volumes and dates with the production partners in good time. Before the start of each calendar year, we and our production partners agree a framework plan that allocates a certain amount of defi ned articles to each factory per month. This plan forms the basis for the actual production orders for the individual models and the production partner is advised of the orders in good time so as to ensure that the delivery dates can be met whilst taking into account the agreed throughput times. SALES MARKETING PRODUCT MATERIALS HUMAN RESOURCES TUNISIA FACTORY, LOGISTICS, TECHNOLOGY FINANCE/IT QUALITY / SUSTAINABILITY SELECTING NEW PRODUCTION PARTNERS PRICING When selecting new production partners, we start by evaluating the location. Political stability, delivery times, the general cost level and both medium and long-term future prospects are important decision-making criteria. The willingness to enter into a long-term relationship and the determination to continue to improve are important prerequisites for a production partnership. The ability to meet our quality requirements, competitive prices and open and smooth communication play a central role. Of course, acknowledgement of the Fair Wear Foundation Code of Labour Practices is also essential, as is the willingness to continue to improve social working conditions and to meet all other requirements arising from our membership of the Fair Wear Foundation. As a rule, BP determines the processing steps necessary to manufacture each product and the resulting standard minute requirement. This forms the basis for the price talks with the clothing manufacturer. Before mass producing a model, the clothing manufacturer creates an initial sample in order to guarantee that s/he is able to manufacture the model in the required quality. S/he can also determine any uncertainties with regard to processing or deviations from the calculated standard minute requirement and discuss these with BP. If necessary, BP provides the required processing expertise in order to achieve the calculated standard minutes. BP SOCIAL REPORT

10 Audit results Tunisia Audit results Tunisia AUDIT OF OUR VETRA PLANT IN TUNISIA Audit 10/2010 Status 12/2011 FORCED LABOUR CHILD LABOUR REMUNERATION SAFE/HEALTHY WORKING CONDITIONS FREEDOM OF ASSOCIATION WORKING HOURS DISCRIMINATION Vetra S.a.r.l., our own company in Tunisia, was founded in Our most complex products are manufactured here. Vetra delivers a particularly high performance in terms of fl exibility, quality and effi ciency. With its committed, well-trained employees, most of whom have been working for the company for a long time, Vetra has become an important leading expert for our company. Our employees working in development and fi eld technology at Vetra are trained in the fundamentals of industrial manufacture. We should like to congratulate our Tunisian employees and the entire Tunisian people on their courage to embrace the Jasmine Revolution in January 2011 and to enable the transition to freedom and democracy. We wish them all the best in realising their hopes for the future. We thank our Tunisian colleagues for largely continuing to work during the revolution. Overall, the factory was assessed as having very good working conditions and a very good working atmosphere. Areas for improvement were mainly identifi ed in the category Safe and Healthy Working Conditions. All non-conformances identifi ed in the audit have since been eliminated. AUDIT OF OUR TUNISIAN PRODUCTION PARTNER Audit 10/2011 Status 12/2011 FORCED LABOUR CHILD LABOUR REMUNERATION SAFE/HEALTHY WORKING CONDITIONS FREEDOM OF ASSOCIATION WORKING HOURS DISCRIMINATION BP has been working with this production partner since Thanks to regular visits by German employees and additional support from our Tunisian company, Vetra, it has been possible to establish a close working relationship. The audit established large scope for improvement. Nonconformances were established in the categories Safe and Healthy Working Conditions, Working Hours, Discrimination and Management. Amongst other things, there were no evacuation plans or fl oor markings to indicate escape routes and there was no remuneration for overtime. During the recruitment process, female applicants were asked if they were pregnant and, if they replied in the affi rmative, were not appointed. This was regarded as discrimination. In the Management category, it was established, for example, that contracts of employment were not issued within the prescribed period and employees were not suffi ciently informed about the principles of the Fair Wear Foundation. The audit report and corrective action plan only became available at the beginning of December For this reason, it was only possible to make slight improvements during the reporting period. At present, work is continuing on carrying out the required improvements. This is supported and monitored by regular on-site visits by our employees. BP SOCIAL REPORT

11 Audit results Macedonia Audit results Turkey AUDIT OF OUR MACEDONIAN PRODUCTION PARTNER Audit 3/2011 Status 12/2011 FORCED LABOUR CHILD LABOUR REMUNERATION SAFE/HEALTHY WORKING CONDITIONS FREEDOM OF ASSOCIATION WORKING HOURS DISCRIMINATION We have been working with our Macedonian partner since 2002 and, over the years, have developed a strong and trusting relationship. We appreciate that the exacting BP qualitiy promise is being met there. Our partner already meets requirements in many areas. Non-conformances were established predominantly in the Safe and Healthy Working Conditions category, for example, the building s electricity supply did not meet the safety requirements. Open lines posed a considerable danger to both employees and the company. On the basis of the audit fi ndings, an electrician was appointed who gradually checked and repaired all lines. Remuneration was also addressed. Although the company pays the minimum wage, this is not suffi cient to guarantee a satisfactory level of subsistence for all employees.. AUDIT OF OUR TURKISH PRODUCTION PARTNER Audit 9/2011 Status 12/2011 FORCED LABOUR CHILD LABOUR REMUNERATION SAFE/HEALTHY WORKING CONDITIONS FREEDOM OF ASSOCIATION WORKING HOURS DISCRIMINATION We have been working with our Turkish supplier since Thanks to many visits by both parties and one of our trainees spending several weeks in Turkey during the course of project work, we have developed a close, partnership-based working relationship. The Fair Wear Foundation audit team found nonconformances mainly in the categories working hours and management. For example, pregnant employees had exceeded the maximum permissible working hours because they had to use the shuttle bus at the end of their working day and did not want to wait idly until the departure time. This nonconformance was eliminated immediately by extending the duration of her work breaks. In the Management category, the deadline for registering new employees was exceeded, for example. Employees have to be registered immediately; otherwise they are not covered by the insurance. The company is now looking for a way of enabling employees with insurance protection to work for a limited probationary period of a few days before drawing up the fi nal contract. This non-conformance is more complex and will thus take longer to resolve. BP SOCIAL REPORT

12 Audit results Pakistan Audit results Summary AUDIT OF OUR PAKISTANI PRODUCTION PARTNER We have been working with our Pakistani partner, also a family-run company, for almost 20 years and have established a successful and trusting working relationship. In 2009 and 2010, when it proved diffi cult to supply clothing worldwide, this company was able to offset supply shortfalls and played a considerable role in ensuring the high BP supply capability. Pakistan is regarded as a high-risk country and the Fair Wear Foundation is not active there. Our partner thus obtained certifi cation to SA SA 8000 is a certifi cation recognised by the Fair Wear Foundation. MEMBERSHIP OF THE FAIR WEAR FOUNDATION HAS ENABLED BP TO DEVELOP AND ESTABLISH A SYSTEM FOR SOCIAL SUSTAINABILITY We have talked to all suppliers in person about our membership of the Fair Wear Foundation. We informed them of the Fair Wear Foundation requirements and explained in detail the associated measures for our production partners. One supplier was so impressed with what we had to say about the sustainability of the Fair Wear Foundation that it has now also become a member. In the fi rst one and a half years, we carried out audits at our main suppliers. The results of the audits and the non-conformances established are essential for improving working conditions. Our production partners were very positive about the audits and found the advice and recommendations useful in many different ways. 0 Audit 7/2011 Status 12/2011 FORCED LABOUR CHILD LABOUR REMUNERATION SAFE/HEALTHY WORKING CONDITIONS FREEDOM OF ASSOCIATION WORKING HOURS DISCRIMINATION The fi rst inspections established serious non-conformances in the categories Safe and Healthy Working Conditions, Management and Working Hours. Excessive overtime was a particular cause for concern and was due to the remuneration system: until this point, employees were being paid by the hour and were using this as an opportunity to work a lot of overtime in order to improve their wage; however, productivity was very low. The system has now been replaced by a piecework rate, with the result that wages are almost the same as before but productivity is much higher without overtime. Both sides benefi t from this. In addition, comprehensive measures have been introduced, such as the construction of a canteen, the installation of emergency chutes for evacuation in the event of a fi re, as well as extensive safety drills and safety training courses. Pakistan is one of the countries in which social working conditions often deviate from international standards. Against this background, we consider the fact that our production partner has obtained SA 8000 certifi cation a particular achievement. 1 0 After Audit Status 12/2011 FORCED LABOUR CHILD LABOUR REMUNERATION SAFE/HEALTHY WORKING CONDITIONS FREEDOM OF ASSOCIATION WORKING HOURS DISCRIMINATION By personally taking part in the audits, BP learned a lot about evaluating working conditions at the production partners. This enables us to optimise working conditions at suppliers who have not yet been audited. In its system audit report, the Fair Wear Foundation confi rmed that, thanks to the many years of collaboration, BP enjoys partnership-based business relationships with its producers. According to Fair Wear Foundation guidelines, in the fi rst year of membership, BP must prove that 40% of its purchasing volume is derived from controlled producers. BP has far exceeded this target: as a result of audits and one of our production partners joining the Fair Wear Foundation, more than 80% of the purchasing volume is sourced from audited production partners. The non-conformances established have largely been eliminated. The payment of living wages proved challenging. According to the defi nition of the Fair Wear Foundation, a living wage is the amount required to meet the basic needs of a family of four. This has to take into account expenditure for accommodation and food, as well as the costs of health, education and participation in social events. BP SOCIAL REPORT

13 The BP complaint system Goran, BP wearer since 2000 BP HAS INTRODUCED AN ON-SITE COMPLAINT SYSTEM FOR EMPLOYEES AT ALL OF ITS PRODUCTION PARTNERS. A notice in the local language detailing the eight Fair Wear Foundation principles is displayed in a public place for all employees to read. The notice explains what the employee can do if the company infringes these principles. It gives the telephone number and address of a local contact person who can be notifi ed in the event of a complaint. This contact person then forwards the complaint, informs both the Fair Wear Foundation and BP and, in cooperation with the production partner, a solution is found that is acceptable for everyone involved. BP has not yet received any complaints. Creating fair working conditions starts with a clear and open information policy, as well as intensive training and support. We have informed the BP workforce about Fair Wear Foundation membership and the associated measures. Employees who are directly involved in procurement have received the necessary training and qualifi cations. We have informed our customers about our collaboration and the progress we have made with the Fair Wear Foundation via talks, workshops, podium discussions, trade fairs and all BP promotional material. During visits, we continue to inform our production partners about the framework conditions associated with BP s membership of the Fair Wear Foundation. BP has developed a checklist for an initial assessment of existing working conditions. Companies are advised on how to eliminate any non-conformances. In September 2011, the employees of our Turkish supplier took part in a workshop. The purpose of the workshop was to share experiences with other clothing manufacturers and to discuss how requirements with regard to working conditions can be met successfully. In December 2011, employees of our Vietnamese supplier took part in a training course in Ho Chi Minh City. The training course informed and advised companies about Corporate Social Responsibility (CSR). This included information about the existing laws and work standards, preventive action with regard to accident and illness, and practical examples of companies that have already implemented projects to improve working conditions. BP SOCIAL REPORT

14 BP targets for 2012 Anna, BP wearer since 2001 Increase the purchasing volume sourced from audited/controlled production partners from 80% to 90%. We will achieve this by carrying out four audits at our production partners in China, Vietnam and India. All improvement measures derived from the corrective action plans will be implemented continuously in collaboration with our production partners. Support our Turkish partner with the Fair Wear Foundation project Training programme for communication, conflict resolution and improving working conditions. Continue internal and external communication and training with regard to social working conditions. BP SOCIAL REPORT

15 Bierbaum-Proenen GmbH & Co. KG Domstraße 55-73, Köln, Germany