Business Responsibility Guidelines for Coke

based Cupola Foundries

for Ajmer Zila Laghu Udyog Sangh (AZLUS)

National Voluntary Guidelines- An Introduction

Developed under the guidance of

Ministry of Corporate Affairs. Process managed

IICA and GIZ

Drafting Committee

included experts and practitioners

from diverse stakeholder

groups

Adopted in 2011, after extensive consultations,

conducted across cities and regions

* Emphasis on BR

* Lays down basic requirements of businesses to function responsibly

* “Responsible Business” conduct refers to the commitment of businesses to operating in an economically, socially and environmentally sustainable manner

* A guidance document for businesses of all size, ownership, sector, and geography

* Take into account the realities of Indian business and society

Structure: 9 Principles, 48 core elements

• Governance structures, procedures and practices to ensure ethical conduct in transparent manner

Ethics, Transparency, and Accountability

• Optimal use of resources from design to disposal of the product

Product Life Cycle Sustainability

• Maintain equal opportunities, wellbeing and skills development within business and in value chain Employees’ Wellbeing

• Systematic and continuous stakeholder engagement in a just, fair and equitable manner

Stakeholder Engagement

• Respect and promote human rights for all concerned in business and across the value chain Human Rights

• Identify environmental risk and opportunity through progressive environment management system

Environment

• Represent business issue in collective and responsible mannerPolicy Advocacy

• Align policy and frameworks in line with Country’s Agenda and create value for SocietyInclusive Growth

• Product disclosure in a truthful and factual manner and create consumer awareness

Customer and Customer Value

Why we need guidelines for Foundry sector

India ranks third in the world based on number of foundries and 6th based on the output

The industry is characterised as a high risk business and owing to hazardous operations

Factors such as sub-optimal working conditions, lack of proper training and safety equipment, environmental pollution, ineffective measurement systems and limited us of technology are some concern areas

Businesses are increasingly beginning to realize the impact of their actions on society as well as the environment

Methodology for formulating the Guidelines

Literature

Review

Stakeholder

Interactions

Field Visits

• In-depth desk research to understand the key issues faced in this sector

• Analysis of reports* based on studies conducted by FMC were also analysed

• Preliminary report on ‘Environmental, Social and Governance Issues in the Foundry Industry’ was prepared

*Diagnostic Study of Cast Iron Foundry Cluster Jaipur and Ajmer Block Cutter Casting Cluster, Foundation for MSME Clusters, 2012; A Study on Indian Foundry Sector, MSME Foundation, 2009 etc

• CUTS team met with members of AZLUS in Ajmer to discuss the preliminary report

• The team also got an understanding about AZLUS and its member’s approach/perspective towards Business Responsibility (BR) issues

• CUTS team visited few foundries during the Ajmer visit to get an understanding of the ground realities

• These included a mix of large and small foundries

Principle 1: Businesses should conduct and govern themselves with Ethics, Transparency and

Accountability

Develop further improved governance structures

Promote standard practices to ensure responsible production at all levels. BMO can lead this process of standardization

BMO can guide members to easily adhere to all applicable compliances/rules/regulations by providing necessary knowledge/resource offering assistance/training as and when required

Core Elements

Principle 2: Businesses should provide goods and services that are safe and contribute to sustainability

throughout their life cycle

All the resources including fuel, water, coke, pig iron, sand, molasses, scrap etc. should be utilized more efficiently and with proper standard measurement systems. Greater monitoring should be undertaken by foundries to ensure minimum wastage

Adopt greater use of energy efficient and cleaner technology in production processes to ensure energy efficiency

Facilitate skill development and other relevant trainings to enhance their business

Adopt testing facilities for raw materials and finished products for improving quality and standardization. BMO can create such common facility

Core Elements

Principle 2: Businesses should provide goods and services that are safe and contribute to sustainability

throughout their life cycle (cont…)

Adopt practices for reusing materials like waste sand, rejections and working towards proper disposal of solid waste like slag and waste sand. BMO can promote such activities

Undertake regular monitoring and maintenance of equipment to ensure proper and efficient functioning for instance, developing periodic equipment maintenance plan

Prepare product manufacturing flow chart with the quantity of raw material required for daily use for easy understanding of workers

Core Elements

Principle 3: Businesses should promote the well-being of all employees

Respect the right to provide access to appropriate grievance redressal mechanisms for all employees

Ensure timely payment of minimum wages to employees  

Enroll employees in social security schemes such as health insurance etc.

Promote design and layout to have adequate light, ventilation, proper drinking and sanitary facilities as well as temperature and noise minimisation etc.

Provide training and support easy implementation of preventive measures for possible health hazards. BMO can provide such training and consultancy support

The use of personal protective equipments such as helmets, gloves, glasses, ear plugs, shoes, masks proper garments etc. should be further encouraged and their use monitored

Promote regular health check-ups are conducted for their employees, with BMO taking the lead

Core Elements

Principle 4: Businesses should respect the interests of, and be responsive towards all stakeholders, especially those who are

disadvantaged, vulnerable and marginalised

The BMO can conduct regular review meeting with members to discuss any concerns/ challenges as well as best practices which could be shared with respect to waste disposal, pollution minimization, etc.

In case of conflicting issues, businesses should work towards resolving differences with stakeholders in a just, fair and equitable manner

Core Elements

Principle 5: Businesses should respect and promote human rights

Promote and further integrate respect for human rights in management systems, in particular by assessing human rights impacts of their operations and ensuring all individuals that are impacted in any way by the business operations have access to grievance redressal mechanisms

Human rights of all relevant stakeholders and groups within and beyond the workplace, including that of communities, consumers, vulnerable and marginalized should be respected

Core Elements

Principle 6: Business should respect, protect, and make efforts to restore the environment

Core ElementsUtilize natural and manmade resources in an

optimal and responsible manner and adopt measures to improve efficiency and reduce wastage

Continuously seek to further increase energy efficiency by improving or upgrading systems, implementing innovative mechanisms and adopting better technology for reducing energy consumption

Seek to reduce dependence on conventional sources of energy and adopt cleaner methods of energy production such as solar energy etc.

Ensure the sustainability of resources by reducing, reusing, recycling and managing waste effectively

Continuously seek to improve environmental performance

Develop Environment Management Systems (EMS) and contingency plans and processes that help them in preventing, mitigating and controlling environmental damages and disasters, which may be caused during operations

Principle 7: Businesses, when engaged in influencing public and regulatory policy, should do so in a

responsible manner

While pursuing policy advocacy, ensure that the advocacy positions are consistent with the Principles and Core Elements contained in these Guidelines

To the extent possible, utilize the trade and industry chambers and associations and other such platforms to undertake such policy advocacy

Core Elements

Principle 8: Businesses should support inclusive growth and equitable development

Work to understand the impact of operations on social and economic development, and respond through appropriate action to minimize the negative impacts

Innovate and invest in products, technologies and processes that minimise the negative impacts and promote the wellbeing of society

Core Elements

Principle 9: Businesses should engage with and provide value to their customers and consumers in a

responsible manner

Always promote and advertise products by providing correct and complete information about the product and its usage to their clients

Always work towards exercising due care and caution while providing the end product to ensure its safety

Core Elements

Thank you!