h.sheikh noor ud din & sons (pvt.) ltd. 4 km ......h. sheikh noor-ud-din & sons (hsnds) is...

Half Yearly Social Performance Report-2017

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H.SHEIKH NOOR UD DIN & SONS (PVT.) LTD.

4 KM, Kahna Kacha Road, Lahore

HALF YEARLY REPORT SOCIAL PERFORMANCE

REPORT ACCORDING TO SA8000:2014

REQUIREMENTS

JUNE 2017-DECEMBER 2017


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TABLE OF CONTENTS

1.0 Introduction

1.1 Targets

2.0 CORPORATE PROFILE

3.0 CORPORATE REPORTING SYSTEM

3.1- Identification of Stakeholders

3.2- Corporate performance

3.1.1 Child labor

3.1.2 Forced labor

3.1.3 Health & Safety

3.1.4 Freedom of association and the right of collective bargaining

3.1.5 Discrimination

3.1.6 Disciplinary Practices

3.1.7 Working hours

3.1.8 Remuneration

3.1.9 Management system

3.1.10 Communication

3.1.11Periodic programs of education, training of workers


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1.0 Introduction

In undertaking a strategy and a process based on principles of Social Accountability, HSNDS has

identified in the SA8000 standard, the most appropriate tool to certify the compliance of all activities

conducted in full respect of human rights. HSNDS has voluntarily adopted the requirements of the

SA8000 standard with the goal of integrating social issues within its policy, its operations and

relationship with stakeholders.

This "Half Yearly Report" is the voluntary instrument through which HSNDS intends to public (internal

and external) its Social Accountability Policy, Management System, achievements and future goals for

improvement to all stakeholders, in order to establish complete transparency with employees and other

interested parties on every six month basis.

The SA8000 Annual Report provides qualitative and quantitative information that show respect for the

individual requirements of the standard, covering different areas of employment, namely:

• Child labour

• Forced labour

• Freedom of association

• Health and Safety

• Discrimination

• Disciplinary practices

• Working hours

• Salary

• Management system.

For the purpose of its continuous improvement, HSNDS is committed to:

• comply with all requirements of the SA8000 standard;

• comply with national laws, other laws in force and principles of the ILO conventions (International

Labour Organization), the Universal Declaration of Human Rights, the UN Convention on the Rights of

the Child, the UN Convention to Eliminate All Forms of Discrimination against Women;

• Continuously improve in the adoption of social accountability behaviors

• document, implement, maintain active, communicate and make accessible the social

accountability policy to all internal stakeholders (staff, directors, officers and management, operating

staff) and external stakeholders (community, interest groups, institutions).


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1.1 Targets

The SA 8000 management system is aimed at:

1. adopting business practices that share and respect the cultural, ethical and social values of

all stakeholders;

2. Continuously improving its organization and working conditions, without the possibility of child

labour, combating all types of discrimination (sex, race, age, religion, etc.);

3. contributing to overall improvements in the standard of quality and Social Accountability through

professional development and respect for the rights of its staff;

4. Spreading the culture of Social Accountability also to its suppliers/sub-contractors and sub-suppliers;

5. Ensuring the protection of confidential information and intellectual property rights of customers;

6. Ensuring the impartiality and skills of its operators;

7. stimulating constructive criticism of own training and its improvement at all levels;

8. Respecting the environment, health, safety in the workplace and Social Accountability principles

applied within the company.

2.0 CORPORATE PROFILE

H. Sheikh Noor-ud-Din & Sons (HSNDS) is NRS International’s family-run manufacturing facility which

operates in Lahore, Pakistan. The state-of-the-art factory employs a total of 7,400 skilled workers

including women, who support a community of 25,000 people and their extended families.

As one of the world’s leading manufacturers of core relief items and long-lasting insecticidal nets for

humanitarian aid and public health sectors, our innovative products are 100% compliant with the

highest standards of international organizations and NGOs that provide humanitarian aid across the

globe.

HSNDS manufactures the full innovative range of NRS Relief’s family tents and all core relief items such

as tarpaulins, blankets, sleeping mats, winterization kits, water containers and kitchen sets for the

humanitarian sector. The factory also produces multi-purpose tents for medical, educational, logistic

and management support use, as well as mobile storage units.

3.0 CORPORATE REPORTING SYSTEM

3.1- Identification of Stakeholders

An accurate mapping of the categories of stakeholders shall be made. It is the identification of strategic

partners in respect of which the company has interest to report its legitimacy and its actions. The

recipients of the Annual Report which is published on the website of HSNDS are as follows:


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3.2 Corporate performance

The commitments arising from the SA8000 certification are to comply with the principles and

requirements of the standard and indicate precisely the most common standard for global social

accountability of a company, with particular reference to the human and social rights.

Below are reported the main contents and displayed the data of quality and/or quantity in HSNDS.

3.2.1 Child labour

With reference to SA8000, HSNDS does not allow the use of child labour and recognizes education as

one of the main factors of the mental and physical development of adolescents: accordingly, HSNDS

undertakes to use only staff older than 18 years.

Below is a breakdown, by age, of the workforce in the second half of year 2017.

AGE RANGE <18 18-30 31-40 41-50 51-60 >60 TOTAL

MEN 0 414 172 133 102 0 821

WOMEN 0 5 1 5 0 0 11

TOTAL 0 419 173 138 102 0 832

% 0% 50% 21% 17% 12% 0% 100%


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Age range and sex of Employees in 2017 (no.)

Targets for the future

Objective 2018 Action Person in charge Deadlines

Keep the current

situation stable.

Continuing the policy of

employment according to

age principles.

Manager Compliance June 2018

Do not facilitate

employment of minors

within the supply chain.

Provision of a

questionnaire and/or

audits to suppliers.

Team Lead Compliance June 2018

3.2.2 Forced labour

HSNDS doesn’t support any form of forced labor and human trafficking. The business strategy is based

on the constant work and the sharing of the responsibilities which requires the involvement of all the

people, just as in a real family. Therefore, one of the company's objectives is to foster a more peaceful

work environment, stimulating from a professional point of view, rejecting the recourse to any form of

coercion of its staff.

HSNDS has conducted an analysis of the working environment through the distribution of a satisfaction

questionnaire to employees in order to verify the status of internal perception of employees with

respect to certain specific issues: safety, interpersonal relations, hygiene and work schedules.

Employees have also been invited to send any complaints, suggestions and comments to the

Department for monitoring of the principles established by SA8000 policy and improvement of business

performance.

The employees' satisfaction survey, conducted in December 2017, has found a positive situation and has

not detected any significant issues, as highlighted in the chart below.

0

50

100

150

200

250

300

350

400

450

<18 18-30 31-40 41-50 51-60 >60

0

414

172

133102

00 5 1 5 0 00

419

173138

102

0

MEN

WOMEN

TOTAL


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From the responses observed, in particular, arises a fair degree of satisfaction on the part of all staff, in

particular the company's strengths appear to be the serene working environment and attention of

HSNDS to health and safety at workplaces.

EMPLOYEES SATISFACTION SURVEY



Keep the current

situation stable.

Monitoring through the specific

questionnaire and check of

suggestions left in the suggestion box.

Manager

Compliance

December 2018

Stimulate the

employees' involvement and

continuous dialogue with

them

Organization of

training/information meeting every

year on the issues requested by WCC

or directly by workers.

Team Lead

Compliance

December 2018

Do not facilitate

forced labour within the

supply chain.

Provision of a

questionnaire and/or audits at the

new suppliers'.

Team Lead

Compliance

June 2018


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3.2.3 Health and Safety

HSNDS has always paid attention to the safety and health of its employees:

- HSNDS constantly invests in training and information for employees;

- provides safe workspaces, through risk assessment.

The Company is committed to protecting the health and safety of its employees and contractors, taking

the appropriate measures to correct any condition possibly dangerous to health or safety. Everyone has

his/her own share of responsibility in achieving this goal, in strict accordance with established

procedures to ensure his/her own safety and safety of colleagues.

From June 2017 to December 2017 total 75 minor injuries were reported from different departments.

There have been no major accidents.



Continuous

monitoring of

accident level and

causes.

Monitoring of all

operations in order to

ensure a suitable, safe

and healthy working

environment.

Manager Compliance

December 2018

"Ensure" an

accident-free

working

environment

Organization of training/information meeting on prevention of the most-likely accidents in the working environment

Manager Health & Safety

December 2018

0

5

10

15

20

Jul Aug Sep Oct Nov Dec

1012

1416

1310

Miner Injuries


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3.2.4 Freedom of association and the right of collective bargaining

Although currently in HSNDS there is no register labor union. However as an alternative to register labor

union there is worker’s welfare committee (WCC) that is chosen by the workers of HSNDS at the end of

through election. Workers are free to choose the representative of their own choice. The WWC is

chosen for one year and their meetings are regularly conducted.

In addition, to facilitate meetings and raise awareness among employees, space for meetings have been

defined and made available by the company.



Keep the current

situation stable.

Keep the current

information level on the

opportunity to be a

member of WWC and be

represented by WWC.

Manager Compliance

December 2018

3.2.5 Discrimination

Depending on the position within the company, everyone must ensure a work environment free of

prejudice and discrimination, in accordance with the personality of professional resources; in this sense,

everyone must work actively to maintain a working environment that guarantees respect for the dignity

of each. HSNDS does not take or support any form of discrimination in hiring, remuneration, access to

training, promotion, termination or retirement based on gender, race, social class or national origin,

religion, disability, sexual orientation, family responsibilities, marital status , union membership, political

opinion, age or any other condition that could give rise to discrimination.


Objective 2018 Action Person in

charge

Deadlines

Keep the current

situation stable.

Monitoring through internal

audits.

Manager

Compliance

December 2018


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3.2.6 Disciplinary practices

No situations of abuse or misuse of disciplinary procedures exists. Employees have never filed any

complaints. The company does not use nor support corporal or mental punishment or physical coercion

or verbal abuse.

No cases of use of disciplinary measures against employees have occurred during last six months.



Keep the current

situation stable.

Monitoring through

internal audit

Manager Compliance December 2018

3.2.7 Working hours

HSNDS respects the provisions of working time, holidays and vacations. The working time is detected by

means of a computer based attendance system containing details of the number of daily hours of staff

attendance.

The company applies the 8 hours schedule, defined and agreed between the parties. However there

arises situation where overtime may be required to cover:

• Peaks of work related to specific orders

• Activities related to particularly specialized professionals

Overtime is, however, always voluntary and agreed with the employee. Remuneration for overtime is

given at double rate. The company also takes care to ensure that all staff benefit from holidays and

leave accrued, as planned and as required by labor laws.

Hours Worked 2017 (July-December)

Duty Hours, 1020000

Over Time Hours, 89250


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charge

Deadlines

Reduction of no. of hours of

holidays and permits not

used in the year

Monitoring of

holidays/permits used by

staff every four months.

Manager Compliance

December,

2018

3.2.8 Remuneration

Salaries are compliant with the provisions of the wages as defined by the labor department in its official

gazette. The salary is paid by the 10th of each month and the salary is given either in the form of cash or

deposited in workers bank account. HSNDS has conducted a survey to calculate the Basic need Wage for

the workers which is more than the minimum wage announce by the Punjab Government.

Average Salary paid



charge

Deadlines

Keep the current

situation stable.

Monitoring through internal

audits.

Manager

Compliance

December 2018

3.2.9 Management systems

HSNDS has formed a social performance team comprising on senior management staff and WCC

members which is responsible to check the compliance of the requirements of this standard and its

effectiveness. The SP regularly conducts its meetings at defined interval of after every 3 months. SPT is

fully authorized by the TOP management to take or recommend any necessary action for the

implementation of the requirement of SA8000. In addition to this after every six-month scheduled

internal audit is conducted and the identified nonconformances are discussed in management review

meeting that are held after every internal audit. Last internal audit was conducted in the month of July

10000

15000

20000

25000

Jul Aug Sep Oct Nov Dec

Management

Non-Management


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2017 and 6 Nonconformances are raised by the auditors. The NCs were closed as per agreed time by the

responsible department.

HSNDS, has proceeded to launch a system of verification and awareness on the work of suppliers asking

them, as a condition for inclusion in the suppliers' list, compliance with the rules and principles

contained in SA8000.

The priority criteria to identify the suppliers is summarized as follows:

• Type of supply

• Company structure and size.

• Purchase turnover with the company

In addition to written compliance with the principles of SA8000 and filling-in of questionnaire, suppliers

were audited by HSNDS to reduce/remove the anomalies that may arise.



Improvement of the

supply chain

investigation

At least two audits of new

suppliers

Team Lead

Compliance

June 2018

3.2.10 Communication

Manager Compliance has assumed responsibility for the communication, to internal and external

stakeholders, of the social commitment of HSNDS.The half yearly report is for the first time is

communicated to the employees, customers, suppliers, Bilqees Server Foundation (NGO), Labor

Department, SGS (Certification Body) that have been identified as stakeholders through its website

www.HSNDS.com.

Management is proactive in responding to the claims received from both internal and external parties.



charge

Deadlines

Improved

involvement of

stakeholders in

sharing the

commitment to

compliance with

SA8000 requirements.

- Continuous updating

of the web site

- Setting-up a customer

satisfaction questionnaire

Manager Compliance

December 2018


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3.2.11 Periodic programs of education, training workers

The Management involves its employees in the whole process to maintain SA8000 certification through

training sessions/information. The main topics covered by the training sessions are:

• Principles of social responsibility, Requirements of social responsibility: SA 8000 Policy

• Code of Conduct

• Procedure for complaints and reports

• Fulfilments and obligations for occupational safety.

However, on each occasion of the meeting, it was reiterated that management is available to workers

personally or through use of suggestion boxes in order to improve internal communications and in

particular allow employees to express their.

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