SCG is committed to ethical business practice and adheres to the Four Core Values in its business operations. Since 1987, it has included human rights and labor rights in SCG Code of Conduct, which has been reviewed to ensure currency and consistency with international standards – a testament to SCG’s commitment to human rights and equitable treatment of all without discrimination in both its direct activities and the activities of suppliers/ contractors in the business value chain both in Thailand and abroad.

SCG 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.

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

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

• 0 case of human rights violation
• Female employees in all management positions account for 27% by 2025
• Percentage of employees who underwent human rights training and passed human rights tests on Ethics e-Testing at a score of 100%

Strategy

1. Integrating Human Rights, diversity and inclusion into business operations across the value chain both in Thailand and Abroad.
2. Foster value and initiate human rights programs for all stakeholders across the value chain and society.
   • Employees: Respecting rights is fundamental and enhance diversity and inclusion
   • Contractors: Risk minimization and enhance quality of life in work environment including labor, health and safety and well being
   • Suppliers: Human rights risk minimization which may affect value chain
   • Communities: Build engagement based on the principle of respecting fundamental rights and enhance quality of life
   • Customers: Deliver product, services and solutions with quality and safety for fundamental rights and better living

Management

1. SCG has announced and reviewed SCG Human Rights Policy and SCG Diversity and Inclusion Policy in line with United Nations Global Compact (UNGC), the International Labor Organization (ILO) Declaration on Fundamental Principles and Rights at Work, and other international standards, as well as driven implementation of such policies through SCG Sustainable Development Committee.
2. SCG has established a unified organization-wide risk management framework and carried out human rights due diligence process in all facets in a proactive manner to prevent human rights violation.

Key Performance

• 0 case of human rights violation
• 22.4% Female share of total workforce and 24.8% Female employees in all management positions
• 100% of employees who underwent human rights training and passed human rights tests on Ethics e-Testing
• Supported people with disabilities by hiring 31 as permanent employees and promoting self-employment.

Diversity Indicators

• Female share of total workforce 22.4%
• Females in all management positions 24.8%
• Females in junior management positions 26.6%
• Females in top management positions 12.9%
• Females in management positions in revenue-generating functions 18.3%
• Female in Science, Technology, Engineering and Mathematics positions (STEM-related positions) 26.3%

Human Rights Management

SCG implemented Human Rights in accordance with United Nations Framework and Guiding Principles on Business and Human Rights (UNGP) by adhering to 3 principles as follows;

• Protect: SCG has strictly complied with laws and is committed to human rights respect in accordance with internationally accepted standards especially giving support to and complying with Universal Declaration of Human Rights: UDHR, United Nations Global Compact: UNGC, United Nations Guiding Principles on Business and Human Rights: UNGP and the International Labor Organization Declaration on Fundamental Principles and Rights at Work: ILO. Moreover, SCG also commit to manage Human Rights according to Code of Conduct and other company-specific statement of commitment.
• Respect: SCG is committed to the ethical business practices and adheres to the Four Core Values in its business operations. Since 1987, it has included human rights and labor practices in SCG Code of Conduct and supervision through relevant policies to support concrete implementations/ initiatives and communicate to personnel throughout the organization including business of contractors, suppliers and joint ventures as follows.
  • Human Rights Policy that committed to implement cover related Country/ Industry specific issues.
  • Diversity and Inclusion Policy
  • Privacy Policy
  • Expectation letter in driving and promoting business operations to respect human rights from joint venture and business partner company.

Those related human rights policies expand to contractors and supplier through SCG Supplier Code of Conduct and all stakeholders through Stakeholder Engagement Policy for driving policies into action by Sustainable Development Committee, SCG. In 2021, Human Rights and Stakeholders Engagement Committee has established human rights framework and Human Rights Due Diligence Process Guideline that embedded in Enterprise Risk Management of SCG which cover actual and potential human rights impact identification and risk assessment of all groups of stakeholders in value chain by focusing on proactive actions to prevent human rights violations as a guideline for concrete implementation that covers all groups of stakeholders.

In 2021, there are 3 salient human rights issues with a high level of risks as follows

1. Workplace Safety and Transportation Safety
2. COVID-19 Pandemic
3. Compliance with stricter personal data protection laws and regulations

Therefore, SCG has established measures to reduce and control human rights risks and continuously monitoring the effectiveness of such measures as the detail on SCG’s Key Activities on Human Rights Risks in SD Report 2021 (P. 136-138).

• Remedy: Provide a channel to all group of stakeholders to provide information about fraud, non-compliance with laws, regulations, rules, the Code of Conduct, Human Rights Policy and other applicable policies by handling complaints effectively and determine mitigation actions to reduce impacts including remediation actions for those affected via whistleblower system (https://whistleblowing.scg.com). The complaints received through this channel, as well as other channels will be consider and investigate by the committee then conclude result and propose punishment as well as determine remediation actions for affected stakeholders.

Human Rights Awards in 2021

SCG was given an excellence award in the Corporation Category for a second consecutive year at the 2021 Human Rights Awards by the Rights and Liberties Protection Department under the Ministry of Justice.

Member of The Sedex Members Ethical Trade Audit (SEDEX)

Since 2019, SCGP 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.

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 and continuously implemented until now.

• 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 treats all employees equitably, respects and embraces the diversity of its personnel across the organization, undertakes management with transparency, and adheres to ethical business conduct. It also places emphasis on the diversity of its employees across all aspects. Relevant initiatives include increasing the proportion of female executives, taking care of mid-career employees, encouraging a new generation of employees to develop startups, and developing an LGBTQ+ inclusion policy.
• SCG respects to Diversity and inclusion, no discrimination against gender, age, physical condition, disability, nationality, religious, 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). Moreover, the Management Development Committee formed the Female Employee Development Working Group to support and oversee the achievement of the target of having 27% Female employees in all management positions by 2025.
• Hold Broadcast Live in Theme: Woman in leadership inspiration talk to raise awareness on non-discrimination and harassment (both sexual and non-sexual harassment) and create inspiration of all employees about value of diversity.

Read more diversity indicator performance in SD Report 2021, Labor and Social development performance.

Human Rights Program/ initiatives in 2021

Employee

Communicate basic knowledge to employees at all levels for better understanding and raise awareness of human rights through many channels such as E-Mail, One page, Signage, VDO etc.

Moreover, on March 8, 2022, SCG hold a broadcast live on the topic of SCG Women in Leadership Inspiration Talk to raise awareness on non-discrimination and harassment (both sexual and non-sexual harassment), create inspiration of talent female employees and motivate all employees on value of diversity.

And a private group has been set up on Facebook to serve as a safe space for SCG’s sisters and friends to come and sit in a comfortable talk, consult, encourage, deliver positive energy and move forward confidently together.

Contractors/ Suppliers

SCG procures with business ethical supplier with professionalism able to deliver quality products and services. We conduct supplier development plan taking into account and in alignment with the risks including environmental, social and governance (ESG) aspects. The highlight implementations as follows;

• Conduct risk assessment and certify all suppliers annually and continually, applying enterprise risk management framework and “SCG Sustainable Procurement Framework” which covers Environmental, Social and Governance (ESG) issues.

• 100% of contractors and suppliers with procurement spending of over 1 million baht passed ESG risk assessment
• 93% of contractors and suppliers demonstrated intent to comply with SCG Supplier Code of Conduct
• 100% of major carriers certified under Fleet Carrier Standards
• Formulate supplier development and capability enhancement plan for business sustainability including ESG aspects for consistency and efficiency like Contractor Safety Management.

Joint Ventures

SCG expects and encourage joint ventures, such as associate companies or other investments where SCG does not have overall control, as well as contractors, suppliers and others to emphasize the importance of a commitment to human rights. The highlight implementations as follows;

• Revised expectation letter and communicate to Joint ventures to promote and create mutual understanding of SCG’s human rights expectations.

• Establish human rights questionnaire which cover Policy/ Commitment, Human Rights Due Diligence Process and key performance and survey annually to know the current status and jointly plan to support the implementations of Joint ventures from SCG.
• 100% of Joint Ventures* have been assessed for Human Rights risks.

Remark: * = ≥ 10% SCG share

Community

SCG considers it the company’s responsibility to advance its business in conjunction with social and environmental development according to sustainable development guidelines. As such, it has sought to drive the business with ESG by developing the ESG 4 Plus Guidelines “Achieve Net Zero – Go Green – Reduce Inequality – Embrace Collaboration” plus fairness and transparency, placing emphasis on addressing problems that affect livelihoods and quality of life by helping to enhance occupational skills that can lead to income generation and, thus, sustainably alleviate the critical social problem of inequality.

Reduce Inequality by Power of Community

The problems of inequality and poverty in Thai society are intensifying as the COVID-19 epidemic continues to escalate, impacting the occupation and livelihood of many people.

SCG is working towards reducing inequality and strengthening communities through the Power of Community project, which provides training to enhance knowledge alongside virtue and inspire communities to rise up and develop themselves by maximizing the value of their products with unique local identities, learning the principles of marketing and branding, expanding sales channels through e-commerce, and creating a life plan for sustainability.

The Power of Community project has conducted training for over 400 members across 13 provinces nationwide, namely Lampang, Kanchanaburi, Saraburi, Nakhon Si Thammarat, Chiang Rai, Phrae, Ubon Ratchathani, Udon Thani, Buriram, Uttaradit, Phitsanulok, Lamphun, and Tak. The goal is to create stable communities with incomes of tens to hundreds of thousands per month, and as poverty and inequality still persist in many areas, SCG will continue to expand this initiative.

Read more detail in SD Report 2021, Reduce Inequality by Power of Community, P. 77

Building high-demand job opportunities

Upskilling, reskilling, and building high-demand job opportunities via a variety of projects appropriate for differing target groups to improve quality of life and build strong, sustainably self-reliant communities in Thailand and ASEAN. SCG developed the skills and in-demand jobs of 3,000 people for the communities surrounding the plant and SMEs in 2021 and plans to reach 20,000 by 2025. Among the in-demand jobs promoted are truck drivers, home renovation handymen, and sellers of local processed goods through online and offline channels. Moreover, the Learn to Earn project by the SCG Foundation also provides scholarships to those wanting to develop their careers as nurse assistants, dental assistants, and elderly caregivers. Added to this is providing knowledge about community water management to secure water for consumption and irrigation to increase crop yields and generate steady income.

DOCUMENT DOWNLOAD

SCG Human Rights Expectation Letter
Human Rights Policy
Diversity and Inclusion Policy
Privacy Policy
SCG Human Rights Due Diligence
SCG Human Rights Risk Assessment
Declaration on Gender Equality
Stakeholder Engagement Policy
SCG Supplier Code of Conduct
WBCSD CEO Guide to Human Rights 2020