ANTI-HARASSMENT AN VIOLENCE

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1 Capital C Power CAPITAL POWER CORPORATION CAPITAL POWER L.P. RESPECTFUL WORKPLACE ANTI-HARASSMENT AN VIOLENCE Certified to be a true copy of the Respectful Workplace Policy: Workplace Discrimination, Anti- Harassment and Workplace Violence approved by the Board of Directors on October 29, 2010 (Revised December 20, 2011) B. Kathryn Chisholm Senior Vice President, General Counsel and Corporate Secretary Page 1 of 5

2 CAPITAL POWER CORPORATION ("CPC") CAPITAL POWER L.P. ("CPLP") RESPECTFUL WORKPLACE POLICY: WORKPLACE DISCRIMINATION, ANTI-HARASSMENT AND WORKPLACE VIOLENCE I. POLICY STATEMENT Capital Power's Employees and Agents (as defined below) participate in a high performance, dynamic work environment where people are respected and accountable. Employees and Agents must therefore treat each other with dignity, and foster an atmosphere of open communication, trust and mutual respect, in keeping with the following guidelines: a) Promoting and maintaining a common understanding of the expectations and behaviours considered appropriate in Capital Power's workplaces, and; b) Taking action to prevent and/or address incidents of inappropriate behaviour, harassment and workplace violence wherever Capital Power business is being conducted. Every Employee and Agent must work in compliance with this policy and the supporting program that implements this policy. n. SCOPE This Respectful Workplace Policy: Workplace Discrimination, Anti-Harassment and Workplace Violence (the "Policy") describes general respectful workplace responsibilities including those related to providing a workplace free of discrimination, harassment and violence. These responsibilities are applicable to all employees ("Employees") of CPC and its subsidiaries (collectively "Capital Power"), including its management and Board of Directors ("Senior Management")^ when performing work for Capital Power. The Policy is also applicable to Capital Power's consultants, independent contractors, and agents ("Agents"). Compliance with this Policy is a material condition of every Employee's ongoing employment. Page 2 of 5

3 III. POLICY ELEMENTS Discrimination Discrimination is defined as treating an individual or group differently than others on the basis of one or more grounds listed below, and in such a way as to have a negative impact on that individual or group. Capital Power will not tolerate any discrimination of any Employee or Agent on the basis of: Race Colour Ancestry Citizenship status Gender Sexual orientation National Origin Age Religion Disability Veteran status Marital status Source of income or any other "protected status" based on applicable federal, state, provincial, and local laws and regulations. Capital Power is committed to treating everyone fairly and equitably. Capital Power will assess all applicants and Employees by their qualifications, demonstrated skills and achievements without regard to any of the prohibited grounds or protected status as outlined above. Racial, ethnic, or religious slurs, or other slurs, verbal or physical conduct relating to an individual's protected status (as outlined above) constitutes prohibited discriminatory behaviour when: submission to the conduct is an explicit or implicit term or condition of employment, submission to or rejection of the conduct is used as the basis for any employment decision (including, without limitation, decisions pertaining to compensation, promotion, performance ratings, work assignments, discipline, training or termination); or the conduct has the purpose or effect of unreasonably interfering with an individual's work performance or creating an intimidating, hostile, or offensive working environment. Workplace Harassment Workplace Harassment is defined as engaging in a course of vexatious comment or conduct against an employee in a workplace that is known or ought reasonably to be known to be unwelcome. Capital Power will not tolerate, and strictly prohibits, these types of behaviours in any form. Page 3 of 5

4 Workplace Harassment that violates this Policy may include but is not limited to written or verbal comments, conduct, actions, or gestures or other behaviours or jokes' which are humiliating, offensive, hurtful or disparaging. This Policy is not intended to limit or constrain the reasonable exercise of management functions in the workplace. The legitimate exercise of workplace supervisory/managerial authority is not workplace harassment. Sexual Harassment Capital Power will not tolerate, and strictly prohibits, sexual harassment in any form. Sexual harassment that violates this Policy may include, but is not limited to; explicit sexual propositions, sexual innuendo, suggestive comments, sexually oriented "kidding" or "teasing"; practical jokes, jokes about gender-specific traits; o foul or obscene language or gestures, displays of foul, obscene or sexist printed or visual material; and, physical contact such as deliberately patting, pinching, or brushing against another person's body. Unwelcome sexual advances, requests for sexual, and other verbal or physical conduct of a sexual nature, constitute prohibited sexual harassment when: Workplace Violence submission to the conduct is an explicit or implicit term or condition of employment, submission to or rejection of the conduct is used as the basis for any employment decision (including, without limitation, decisions pertaining to compensation, promotion, performance ratings, work assignments, discipline, training or termination); or the conduct has the purpose or effect of unreasonably interfering with an individual's work performance or creating an intimidating, hostile, or offensive working environment. Capital Power will not tolerate, and strictly prohibits, violence at the workplace, in any form. Workplace Violence that violates this Policy may include, but is not limited to; o the exercise of physical force by a person against an employee, in a workplace, that causes or could cause physical injury to the worker, an attempt to exercise physical force against an employee, in a workplace, that could cause physical injury to the employee, or Page 4 of 5

5 o a statement or behaviour that it is reasonable for an employee to interpret as a threat to exercise physical force against the employee, in a workplace, that could cause physical injury to the employee. IV. ACCOUNTABILITIES Employees and Agents All Capital Power Employees and Agents are responsible for creating a respectful workplace environment and must work in compliance with this Policy and it's supporting program. Every Employee and Agent has the right to report, in good faith, concerns or incidents under this Policy without fear of retaliation. Retaliation by any person against anyone involved in reporting concerns of incidents will not be tolerated and will be subject to appropriate disciplinary action, up to and including termination of employment other relationship with Capital Power. CPC Management Capital Power's management will adhere to this Policy and it's supporting program. Capital Power management is accountable to ensure the measures and procedures in the supporting program are followed. Capital Power's management pledges to investigate and address all incidents and complaints under this Policy in a timely and fair manner, respecting the privacy of all concerned to the extent possible. V. VIOLATIONS Any Employee or Agent, who violates this Policy, may be subject to disciplinary action, up to and including termination of employment or other relationship with Capital Power, and/or referral to appropriate law enforcement authorities. Page 5 of 5