Global Compact

United Nations Global Compact

During the year 1999, UN Secretary-General launched the ‘Global Compact’ calling upon

corporate leaders to align their business practices according to the principles of the Compact.

The Global Compact has 10 principles, which encompass the areas of Human Rights, Labour,

Environment and Anti-corruption. These 10 principles have been derived from various UN

Declarations and conventions, viz. the Universal Declaration of Human Rights, the International

Labour Organisation’s Declaration on Fundamental Principles and Rights at Work, the Rio

Declaration on Environment and Development and the United Nations Convention Against

Corruption.

CPCL's approach to United Nations Global Compact

   Communication on Progress for 2007-08:

     The 10 principles of Global Compact are mentioned below:

1. Business should support and respect the protection of internationally proclaimed human

rights.

2. Make sure that businesses are not complicit in human rights abuses.

3. Business should uphold the freedom of association and the effective recognition of the

right to collective bargaining.

4. Elimination of all forms of forced and compulsory labour.

5. Effective abolition of child labour.

6. Elimination of discrimination in respect of employment and occupation.

7. Business should support a precautionary approach to environmental challenges.

8. Undertake initiatives to promote greater environmental responsibility.

9. Encourage the development and diffusion of environmentally friendly technologies.

10. Businesses should work against all forms of corruption, including extortion and bribery.

CPCL stands committed to the principles enshrined in the Global Compact and has been a fore

runner in the effective implementation of each and every principle, for many years. This is being

achieved through appropriate policies and programmes adopted meticulously by CPCL, besides

total compliance of the relevant statutes all these years.

Principle One - Business should Support and Respect the Protection of Internationally

Proclaimed Human Rights

CPCL ensures that the business operations are carried out within the applicable legal

framework. Employees’ working conditions, health and safety are taken care as per the

Factories Act and the Rules made there under. Apart from the above, periodic discussions are

being held with the employees’ representatives to improve the working conditions. In the

workplace, CPCL provides due recognition to employees and guarantees freedom of association

and thereby protects the human rights in the industry.

Significant New Initiatives:

i) Business Improvement Strategies

With Globalization of manufacturing activities across the world and to improve the productivity

of the Company, we have conducted a study with the assistance of M/s. Shell Global. We have

also introduced other initiatives like TPM for utilizing the creativity of the human resources to

bring in improvements in the business operations.

ii) Competency Mapping for Middle and Senior Level Executives

In order to improve the skill levels and also to attain the objectives of the Company’s Vision and

Mission through the improved skills, Competency Mapping was conducted for the Middle and

Senior Level Executives.

iii) Electronic – Performance Management System for Supervisory employees

Electronic Performance Management System for Supervisory employees is being introduced

from the financial year 2008-09 to encourage the following:

Stronger alignment of individual performance with organizational goals

Higher degree of transparency, uniformity and process efficiency

Performance ownership at the employee level

iv) Employee Communication System

All Employees can address their grievances through Intranet. The grievances are addressed

immediately.

Other Activities Carried Out:

1.1 Observance of Anti-Terrorism day:

Anti - Terrorism Day (Pledge)

“Anti-Terrorism Day” is being observed on 21 st May every year with the objective of weaning

away people, particularly the youth, from terrorism and cult of violence by highlighting the

suffering of the common people and to show how it is prejudicial to the national interest. The

employees working in different locations within the Refinery premises had administered the

Anti-Terrorism Pledge on 21.05.08 for the year 2008.

Anti - Terrorism Day (Pledge)

1.2 Observance of Goodwill Day (Sadbhavana Diwas)

Goodwill Day (Sadbhavana Diwas) is being observed on 20 th August every year. The theme of

the Goodwill Day is to promote integration and harmony among people of all religions,

languages and regions. The employees working in different locations within the Refinery

premises had administered the Goodwill Day Pledge on 20.08.07 for the year 2007.

Principle Two - Make sure that Businesses are not complicit in Human Right Abuses

CPCL gives utmost importance in maintaining the Communal Harmony. The Quami Ekta Week is

also being observed to mark the above and various activities are carried out for creating a

harmonious atmosphere in the Company. The various activities carried out during the Quami

Ekta Week are given below:

Observance of National Integration Week (Quami Ekta Week):

Quami Exta Week (National Integration Week)

(i). The “National Integration Week” is being observed from 19 th to 25 th November every year

with a view

to reaffirm our age old traditions and faith in the values of tolerance, co-existence and

brotherhood in a multi-cultural and multi religious society; and

to highlight the inherent strength and resilience of our nation to withstand actual and

potential, threats to a secular country with diverse views and nurture a spirit of

communal harmony in its widest sense.

(ii). Theme: The theme of the Quami Ekta Week is to foster the spirit of patriotism and national

integration among people of all religions, languages and regions.

(iii) The National Integration Pledge was administered on 19.11.07 at various locations within

the Refinery premises.

Quami Exta Week (National Integration Week)

Activities Carried out during the Quami Ekta Week

As part of the Week, a medical camp was organized on 22.11.2007 for the women contract

labourers. A training programme was organized on 23-11-2007 for all the women employees of

CPCL on “Re-Engineering Life for Happiness” at CPCL Training Centre taking faculty assistance

from Brahma Kumaris, Anna Nagar, Chennai.

Essay contest in Tamil, English and Hindi for the employees and Oratorical contest for ITI &

Polytechnic Students were conducted.

Principle Three – Business should uphold the Freedom of Association and the effective

recognition of the Right of Collective Bargaining

The following two Unions are functioning in CPCL;

Chennai Petroleum Employees Union (CPEU)

Madras Refineries Ambedkar Employees Union (MRAEU).

The above Unions have majority of employee memberships and therefore, negotiations are

carried out with them. During the year 2007-08, Policies like Medical Policy and Promotion

Policy were signed with them.

Principle Four – Organisation supports the elimination of all forms of Forced and

Compulsory Labour

The terms and conditions of employment are enumerated in the appointment orders issued to

employees. The Standing Orders applicable for workmen and the Conduct, Discipline and Appeal

Rules applicable for Officers are also provide the service conditions of employees. As per the

conditions of employment, employees are allowed to work freely.

Principle Five – The effective abolition of Child Labour

Persons who are 18 years and above age are only engaged in CPCL. It has also been mentioned

in our General Conditions of Contract that the Contractors should not employ minors (persons

below the age of 18 years).

Besides, our Company has been propagating Compulsory Education Scheme of Government of

India by displaying the slogan that is “Sarva Shiksha Abhiyan“ along with the logo in the

Company letterheads for providing elementary education to children till the age of 14 years.

Principle Six - Elimination of Discrimination in respect of employment and occupation

No discrimination is shown in paying remuneration, hours of work, holidays, maternity leave,

advancement, social security, occupational safety and health to the employees based on the

community, caste, religion or race.

CPCL has put in place Policies for

Recruitment, training and advancement of employees at all levels;

Promotion of employees which is linked into desired performance in the area of

employment;

Recruitment and Promotion of employees are carried out as per the principles stipulated

under the Presidential Directives;

Pay and Allowances for workmen are settled through Long Term Settlements;

Records on training and seniority list are displayed in the Company Intranet in order to provide

a transparent mechanism within the organization.

Principle Seven – Businesses should support a precautionary approach to Environmental

challenges.

Principle Eight – Undertake initiatives to promote greater environmental responsibility.

Principle Nine – Encourage the development and diffusion of environmentally friendly

technologies.

CPCL recognizes the impact of industrial operations on environment. Therefore, we continuously

work towards minimizing the impact of our operations on the Safety, Health and Environment.

CPCL has also become a signatory since to the “Charter on Corporate Responsibility for

Environment Protection in Refineries” developed by Ministry of Environment and Forest (MoEF),

Central Pollution Control Board (CPCB) and other Refineries, so as to maintain the

environmental standards. With the above approach, CPCL is able to meet the prescribed

environmental standards and has also complied with all the statutory requirements and

renewed the requisite consents from the regulatory body in time

Given below are the initiatives and achievements during 2007-08 on encouragement,

development and diffusion of environment friendly technologies:

Sea water Desalination plant to produce 5.88 MGD of product water at a cost of Rs.231

crore is in progress.

Wind mill project for producing 17.6 MW of power for use through wheeling in the Sea

Water desalination plant has been commissioned

Additional Sewage reclamation plant of 475 KL/hr has been commissioned

Hazardous waste treatment covering mechanical treatment and bio-remediation of 5864

M3 of oily sludge is completed. Bio-remediation of 1500 m3 mechanically treated sludge

completed

Sea water desalination plant:

Sea Water desalination Plant

Work on the seawater desalination project is in an advanced stage to produce 5.88 MGD (1100

KL/Hr) of product water for use in refinery at a cost of Rs.230 crores. 20 MGD of seawater is

taken as feed to this plant to produce 5.88 MGD of product water using the process of Reverse

Osmosis. Product of this plant can be used as process for the new projects proposed in Manali

and usage of raw water for industrial use is avoided by this plant. This will ensure self-

sufficiency of water for Manali refinery. It is scheduled to be ready by July’08.

Sea Water desalination Plant

Sea Water desalination Plant

Windmills:

Windmill

22 Nos. of windmills of 800 KW capacity each have been installed and commissioned. The power

from this wind farm will be wheeled and consumed at Desalination plant coming up at Ennore

near Chennai.

Oily sludge treatment:

Mechanical treatment of about 6000 M3 of oily sludge in sludge pits / sludge lagoons in the

refinery was completed as part of liquidation of oily sludge. Bio-remediation of 1500 M3 of oily

sludge was completed.

Principle Ten – Businesses should work against corruption in all forms, including extortion and

bribery.

1. Details of Tenders for the contracts /works exceeding Rs.5.00 lacs and Purchase Orders

exceeding Rs.50.00 lacs are hosted in CPCL web-site.

2. Application for registration of Vendors / Contractors has been hosted on CPCL Website.

3. Sustained efforts are made for payment of bills to Contractors/Suppliers/Service

providers through Electronic Clearing Service / Electronic Fund Transfer. Currently 65%

of bill payments were effected through ECS mode.

4. Vigilance Awareness Week was observed in November 2007 in CPCL to raise awareness

on Vigilance matters among employees and CPCL stake-holders.

5. To sensitize the CPCL Officers on Corporate Governance issues, a Guest lecture was

organized on the Topic “Corporate Governance” in November, 2007 by Shri

G.Anantharaman, IRS., (Retd), Whole Time Member, SEBI, Mumbai

6. Customer and Vendor/Contractors interaction meet were organized at Manali Refinery

and Cauvery Basin Refinery, Nagapattinam to emphasize efficiency and transparency in

business transactions.

7. A Leaflet on “Code of Conduct” and Vigilance poster with the theme “March towards

Excellence in Business and Ethical Values” were released and distributed to CPCL

employees.

8. Introduction of Integrity Pact for major procurements/purchases/contract has been

approved by CPCL Board .

9. Sensitisation lectures were delivered on the Topics “Right to Information Act 2005” and

“Preventive Vigilance”.