advocating human rights in supply chain
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ADVOCATING HUMAN RIGHTS IN SUPPLY CHAIN
Raja Tatina Raja Musa
Principal, Social Performance
PETRONAS
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Presentation Outline
❑Overview of Human Rights Implementation in Supply Chain
❑PETRONAS Contractors Code of Conduct on Human Rights (CoCHR)
❑Human Rights in PETRONAS Contractors HSE Management Process
❑Key Success Factors & Challenges
❑Conclusion
❑References
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Implementing Human Rights
Government
Duty to Protect
General state regulatory and policy functions
Supporting business respect for Human Rights in conflict-
affected areas
Ensuring policy coherence
Business
Duty to Respect
Policy/Commitment
Human Rights Due Diligence
Access to Remedy
A Company’s Role Differs from the Government’s inImplementing Human Rights
Reference: United Nations Guiding Principles on Business and Human Rights
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Human Rights Elements Applicable to PETRONAS
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Overview of Human Rights Implementation in Supply Chain
2015
• Launch of PETRONAS Human Rights Commitment
2016
• Engagement sessions conducted for Procurement fraternity
2017
• PETRONAS Contractors Code of Conduct on Human Rights (CoCHR)
• Human rights article incorporated in General Terms & Conditions
• Engagement with 1,400 contractors
2018
• Compliance assessment CoCHR on selected contractors
• Inclusion of human rights in contractors HSE management process
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PETRONAS Contractors Code of Conduct on Human Rights (CoCHR)
Human rights article on compliance to the PETRONAS CoCHR was included in contract General Terms and Condition (GTC). The article includes a clause for PETRONAS to terminate a contract in the event that a contractor fails to comply with CoCHR.
CoCHR requires the Contractors to:
❖ Respect internationally-recognised human rights, complying with PETRONAS’ Code of Conduct and
Business Ethics (CoBE) and all relevant legal requirements.
❖ Ensure policies and guidelines are in place to demonstrate its respect for human rights.
❖ Provide human rights awareness training to its employees and contract personnel.
❖ Establish a grievance mechanism for their employees, contract personnel and any party involved in
providing services to PETRONAS.
❖ Provide timely feedback to PETRONAS regarding the contractor’s human rights performance within
the duration of the contract.
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PETRONAS Contractors Code of Conduct on Human Rights (CoCHR)
Freedom of Labour
Prevention of Child Labour
Wages and Benefits
Working HoursEstablish Grievance Mechanism
Non-Discrimination
Freedom of Association
Humane Treatment
Foreign and Migrant Workers
The Nine (9) Principles in CoCHR
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Human Rights Requirements in PETRONAS Contractor HSE Management Process
▪ Contractor to provide evidence for meeting the requirements of CoCHR during pre-qualification
▪ Human rights article included in contract document and Invitation to Bid (ITB).
▪ Contract owner/user to confirm that contractor complies with the CoCHR during kick-off meeting
▪ Contractor to execute HSE plan which has incorporated human rights requirements:
• Inclusion of human rights in HSSE induction
• Establishment of grievance mechanism
• Monitoring of grievance
• Reporting on percentage of grievance cases closed to PETRONAS
• Conduct camp inspection where applicable
• CoCHR compliance assurance
▪ Contract owner/user to monitor and ensure effectiveness of contractor HSE plan.
▪ Contract owner/user to conduct performance evaluation on contractors. Inadequate hiring practices
will be highlighted as area of improvement for future attention of new contract owner/user.
▪ Contractor and contract owner/user to ensure closure of all outstanding matters pertaining CoCHR
Contractor Selection & Pre-Qualification
Tendering, Evaluation & Contract Award
Pre-Mobilisation
Execution
Demobilisation & Close-Out
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Key Success Factors
Leadership & Commitment
Embedding human rights in established
HSE-Management System
Effective planning and collaboration
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Conclusion
▪ Managing human rights is crucial to sustain the Company’s long term growth
▪ Collaboration between Company and Contractors is the key to success• Generate good practices• Meet growing stakeholder expectation
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References
United Nations. (2011). Guiding Principles on Business and Human Rights: Implementing the United Nations “Protect, Respect and Remedy” Framework. New York and Geneva: UN
PETRONAS Human Rights Commitment (2015). (https://www.petronas.com/sustainability/social-stewardship/human-rights-commitment).
PETRONAS Contractors Code of Conduct on Human Rights (2017). (https://www.petronas.com/sustainability/social-stewardship/petronas-contractors-code-of-conduct-on-human-rights).
PETRONAS Contractor HSE Management Standard (Revision: 2018)
PETRONAS (Petroliam Nasional Berhad). (2018). Sustainability Report 2017 – Moving Forward Together. Kuala Lumpur: PETRONAS
PETRONAS (Petroliam Nasional Berhad). (2017). Sustainability Report 2016 – Building Strength through Adversities. Kuala Lumpur: PETRONAS
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Thank you for your attention.
Questions & Answer
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