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23 May 2021

Human Rights

SCG respects and protects the human rights of all vulnerable groups such as employees, children, women, people with disabilities, indigenous people, local community, contractors, migrant workers, whom might be impacted from SCG’s activities.

While business operations drive economic and social growth and create employment, they can have direct and indirect impacts on humans. SCG, therefore, has attached great attention to human rights practices across the supply chain to ensure that all stakeholders are treated equitably, fairly, and with dignity and respect in accordance with the Universal Declaration of Human Rights (UDHR), the United Nations Global Compact (UNGC), the United Nations Guiding Principles on Business and Human Rights (UNGP), the International Labor Organization (ILO) Declaration on Fundamental Principles and Rights at Work, and SCG Human Rights Policy. The aforementioned stakeholders encompass all potentially affected groups of people, including employees, children, women, people with disabilities, ethnic minorities, local communities, labor of suppliers, foreign labor involved in SCG’s direct business activities, in the business value chain, and in joint ventures not managed by SCG.

Target

Being a role model in human rights, both directly and indirectly through business activities, by providing support and encouraging suppliers in the value chain and joint ventures to recognize, protect, and respect human rights in their business operation

  • 100% of identified risks are well managed through mitigation and preventive plans as well as remediation actions
  • 0 case of human rights violation
  • 27% female in all management positions by 2025

Strategy

  1. Comply with SCG Human Rights Policy as well as the law of each country and the treaty each country has commitment to.
  2. Consistently carry out human rights due diligence processes.

Management

  • SCG has announced the human rights policy, based on the United Nations Global Compact (UNGC), the International Labor Organization (ILO) Declaration on Fundamental Principles and Rights at Work, and other international standards.
  • SCG has continuously implemented its human rights due diligence process, consisting of four steps:
    • 1. Identifying human rights risk issues,
    • 2. Identifying vulnerable groups,
    • 3. Formulating preventive and mitigation plans and remediation actions.
    • 4. Monitoring results

Key Performance

  • 0 case of human rights violation
  • Diversity Indicator

Diversity Indicator

  • Supported people with disabilities by hiring 35 as permanent employees and promoting 254 people to pursue self-employment in their local communities

Human Rights Governance

The human rights governance of SCG starting from one of SCG Business Philosophy, SCG Code of Conduct as a principles for supervision on Human and Labor Rights which define guidelines of respecting human rights of every individual as well as treat everyone fairly in every stage of recruitment starting from selection, remuneration payment, working hours and job holidays, assignment, performance appraisal, learning and development, career path planning and others without discrimination. And applied SCG Supplier Code of Conduct to supplier and contractors since 2013.

Even though there’s no human rights violation case or the latest laws and regulations, all SCG employees, contractors and suppliers are obliged to study the guidelines to their understanding and at all time have full discretion in how to conduct work activities in compliance with the principles of SCG Code of Conduct including human and labor rights.

In 2020, SCG announced policies according to international standards to support human rights implementation as follows;

  1. SCG Diversity and Inclusion Policy
  2. SCG Data Privacy Policy

Read more detail on Human and Labor Rights in SCG Code of Conduct, P. 13 and SCG Supplier Code of Conduct.

SCG continuously conducts a Due Diligence Process to identify human rights risks and impacts and potentially affected stakeholders in our own operations and along the value chain, plan for corrective and preventive actions on addressing, preventing, and managing human rights violations, and to track and monitor the situation. Also, appropriate mitigation plan shall be set for human rights violation case.

SCG encourage all employee to provide information about fraud, non-compliance with laws, regulations, rules, the Code of Conduct, Human Rights Policy and other applicable policies via whistleblower system. Moreover, The whistleblower system are publicly available on website: https://whistleblowing.scg.com for external stakeholders.

** Information received through this channel, as well as other channels will be investigated and provide remedy to prevent all impacts.
** Information will be treated as confidential, and in alignment with guidelines of confidentiality of information as disclosed in SCG Code of Conduct and SCG Data privacy policy.

SCG has always paid attention to engage with stakeholders by responding to expectation of all stakeholders. For human right, SCG identify key activities according to expectations and define mitigation plans and remediation actions to cope with those expectation and monitor regularly.

Moreover in 2020, SCG’s CEO confirmed the company’s commitment by signing the “CEO Guide to Human Rights” of the WBCSD (World Business Council for Sustainable Development), which include a statement on the importance of the respect for human rights and improving human rights standards.

Diversity Program

Diversity and Inclusion management is considered as SCG management commitment and is embedded in our corporate culture throughout the organization and appropriately integrate into business strategy. In 2020, SCG announced its Diversity and Inclusion Policy to ensure that diversity is embraced in its business practices in accordance with the principles of Business philosophy and relevant policies.

  • SCG manages the equality and fairness of its workforce diversity everywhere where it operates business activities including the extent to its suppliers and joint venture businesses by following its principle of human rights.
  • SCG respects to Diversity and inclusion, no discrimination against gender, age, physical condition, disability, nationality, religious, working hours, freedom of association, culture, and any other workforce diversities that go beyond legal compliance.
  • SCG Human resources management in hiring and placement, compensation, development, promotion, rotation and hiring of mid-career employees, training and guidance etc., has adhered to the principle of fairness and equality such as hiring people with disabilities and support activity to promote their quality of life, promoting women are equal in their pursuit of career growth as well as in welfare and compensation
  • SCG has implemented initiative support to a diverse workforce such as expand capability building program for overseas employees by given opportunity to learn and attend Flagship Program such as Business Concept Development (BCD), Management Development Program (MDP) and the proportion of local management overseas is increase for more than 2 times from 2016. SCG also report the percentage of female in all management position are gradually increase to 23.0% of all employees and 25.0% of all managerial level.
  • SCG joined with The Sedex Members Ethical Trade Audit (SEDEX)is an organization whose members consist of business organizations around the world. It requires the members to comply with SEDEX standards in four areas: labor standards, health and safety, business ethics, and environment, which assure companies, suppliers, customers, and employees of the organization’s responsible business practice and respect for human rights.

Read more diversity indicator performance in SD Report 2020, Labor and Social development performance