Human Rights - SCG Sustainability

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, the activities of suppliers/ contractors in the business value chain and Joint ventures.

With greater potential impact on business operations resulting from new investments or mergers and partnership abroad. SCG committed to elevate its practices to cover own operations, suppliers, contractors, joint ventures, and stakeholders across the value chain as well as to new investments in Thailand and abroad.

Moreover, we joined with The United Nations Global Compact (UNGC) since 2012 and continue to strengthen our implementation and report according to The United Nations Global Compact (UNGC) Communication on Progress – Advanced Level annually.

Read more detail on Human and Labor Rights in SCG Code of Conduct, P.17-19 and SCG Supplier Code of Conduct.

Target

Zero case of human rights violation.
Female employees in all management positions account for 27% by 2025.
100% of employees undergo human rights training and pass Ethics e-Testing.

Strategy

Integrating Human Rights, diversity and inclusion into business operations across the value chain both in Thailand and Abroad.
Foster value and initiate human rights programs for all stakeholders across the value chain and society.
- Employees: Respect rights as a fundamental principle 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: Elevate human rights risks management that may affect the value chain.
- Communities: Foster engagement based on respect for fundamental rights and enhance quality of life.
- Customers: Deliver products, services, and solutions that offer quality and safety, which are part of fundamental rights, and promote quality of life.
- Stakeholders: Continuously undertake human rights risk management to prevent adverse impacts that SCG has caused or contributed to or directly linked to its activities across the value chain.
Serve as a model and share human rights experience with other organizations.

Management

SCG has announced and reviewed SCG Human Rights Policy and SCG Diversity and Inclusion Policy in line with United Nations Global Compact (UNGC), Universal Declaration of Human Rights: UDHR, United Nations Guiding Principles on Business and Human Rights: UNGP, the International Labor Organization (ILO) Declaration on Fundamental Principles and Rights at Work, Organization for Economic Co-operation and Development (OECD), and other international standards, as well as driven implementation of such policies through SCG Sustainable Development Committee.
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

1 case of human rights violation
24.4% Female share of total workforce and 30.5% Female in all management positions
100% of employees who undergo human rights training and pass Ethics e-Testing

Diversity Indicators

Female share of total workforce 24.4%
Females in all management positions 30.5%
Females in junior management positions 32.6%
Females in top management positions 14.8%
Females in management positions in revenue-generating functions 23.3%
Female in Science, Technology, Engineering and Mathematics positions (STEM-related positions) 13.2%

Human Rights Management

SCG is committed to conducting business with respect for human rights in accordance with internationally accepted standards and United Nations Guiding Principles on Business and Human Rights: (UNGPs) by adhering to 3 principles as follows;

Protect

States must protect against human rights abuse within their territory and/or jurisdiction by third parties, including business enterprises to prevent, investigate, punish and redress such abuse through effective policies, legislation, regulations and adjudication.

Respect

SCG adheres to the Four Core Values and SCG Code of Conduct in its business operations and comply with the law as a basis and supervision through relevant policies to support concrete implementations/ initiatives. Human Rights Due Diligence Process are in place covering all group of stakeholders such as employee, contractors, suppliers, communities, customers especially vulnerable groups such as women, child, indigenous people, migrant workers, LGBTQI+, People with disability throughout the value chain to prevent human rights violation as follows.

Human Rights Policy

Approved by chairman of the board of directors to demonstrate our commitment to conducting business with respect for human rights in accordance with internationally accepted standards and committed to prohibiting harassment both

Sexual harassment
Non-sexual harassment

Including zero tolerance policy for discrimination and harassment by defining corporate human rights expectations on personnel, business partners and other business relationships directly linked to business activities, products and services both Thailand and abroad.

Diversity and Inclusion Policy

To elevate diversity and inclusion, treat everyone equitably without discrimination.

SCG Privacy Policy

To respects privacy rights of customers, shareholders, employees, and all related parties. To ensure that personal data of such persons is protected and processed in accordance with applicable personal data protection laws.

Stakeholder Engagement Policy

To honors the rights of stakeholders and treats them fairly, listens to their opinions and concerns, builds understanding with stakeholders, encourages co-operation constructively in matters that interest stakeholders.

Implementation according to related human rights policies driven by Sustainable Development Committee, SCG covering suppliers/ contractors in value chain and joint ventures supervision by SCG Supplier Code of Conduct and Expectation letter in driving and promoting suppliers/ contractors and joint ventures to conduct business with respect to human rights including using leverage with the company that may cause human rights negative impacts.

Remedy

SCG has also put in place effective and up-to-date grievance mechanism for employees and external parties via whistleblowing system. When there is a complaint, the complaint receiver or assigned person shall gather all facts or officially appoint Fact Finding Working Team and/ or officially appoint Investigation Committee to provide appropriate remediation needed through legitimate processes and punishment approval consideration. SCG regards relevant information as confidential and discloses it only as necessary to ensure the safety of, and prevent harm to, the complainant/ whistleblower/ informant, their sources, and other individuals involved and provide protection to those who lodges complaints/ reports according to Whistleblowing policy. In case of the complainant reveals his/ her name, he/ she shall be notified within 7 working days starting from the result conclusion day.

Escalation process and corrective or disciplinary action

SCG has zero tolerance for discrimination and harassments and shall protect its employees at all levels against discrimination and harassments. SCG discloses clear guidelines for escalation process for reporting incidents via whistleblowing system and carry out a fair investigation into any discrimination and harassment cases that occurred. In 2022, there is 1 human rights violation case related to non-sexual harassment that already engaged and provided appropriate remedies to the affected person. The type of remediation actions taken in this case is corrective or disciplinary action taken to the offender.

The type of corrective or disciplinary action taken in case of discriminatory behavior or harassment are as follows;

Investigation Committee will consider the disciplinary action case by case. However, SCG still committed to prevent violations including raising awareness of human rights until becoming an organizational culture.

In 2023, Human Rights and Stakeholders Engagement Committee has reviewed Human Rights Framework to use as a minimum requirement for human rights management in accordance with international standards including Human Rights Due Diligence Process Guideline.

Human Rights Framework

SCG has reviewed Human Rights Framework to ensure comprehensiveness, alignment with international standards by using as a guideline for human rights management in every business of SCG both Thailand and abroad which cover its contractors, suppliers, and joint ventures.

Human Rights Due Diligence Process

Human Rights Due Diligence Process Guideline has reviewed which cover all groups of stakeholders in value chain by focusing on proactive actions to prevent human rights violations and use as a guideline for concrete implementation which consist of 4 steps as follows;

Human Rights Due Diligence Process

In 2022, SCG provided training for all employees on human rights and forms of discrimination and harassment in the workplace and reviewed its human rights due diligence process through engagement with relevant stakeholders and there were 4 salient human rights issues as follows:

Employment conditions
Health and Safety
Forced labor
Protection of migrant workers

Human Rights Risks Assessment

Therefore, SCG has established mitigation actions and the monitoring of the effectiveness of such actions across all businesses both in Thailand and abroad (more information in SD report 2022, P. 128-129).

Diversity Equity and Inclusion

According to new investments or mergers and partnership abroad resulting in increasing the diversity of employees regardless of race, gender, or generation. In 2022, SCG appointing the Diversity Committee to drive diversity and inclusion management in the organization, non-discrimination against gender, generation, disability, nationality, religious, culture, and any other diversities by integrating the potential of diversity to bring about the sustainable development of the organization and continuously implemented until now. In addition, SCG also provides various inclusive facilities to support diverse employees such as ramps, prayer room for Muslim etc.

SCG Human resources management in hiring, placement and seeks to appoint personnel from diverse backgrounds as directors at all levels, 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).

Read more diversity indicator performance in SD Report 2022, Labor and Social development performance.

Human Rights Program/ initiatives in 2022

Employee

“Enhance employees engagement with empathy” by collaborated with external consultant to obtain insights into the needs and experience of vulnerable groups, such as women, people with disabilities, LGBTQI+, and people of different religion, and etc. In order to develop new initiatives/ programs and conduct effective communications.
Human Rights Risk Management:
- For migrant workers, there is an employee development that covers both operational skills and health and safety and provide welfare benefits that are beneficial to quality of life, such as medical welfare, etc. Moreover, communication is provided by providing an interpreter or prepare local languages for important communications such as announcements, news and information on health and safety and welfare including access to complaint channels under the same management system of SCG.
- For health and safety, read more detail on website: https://www.scgsustainability.com/en/health-and-safety-en/

Training and guidance regarding diversity:
- “ESG Leadership Program” a training for employees to raise awareness and understanding on ESG that cover Human Rights, Diversity, Equity and Inclusion for future leader of SCG and can be applied in business operations according to sustainable development guidelines.
- “Flagship programs” a training for employees at each level and development programs designed for each professional career path and on-site role as well as enhancing diversity, equity and inclusion awareness and understanding in order to work together happily.
- Organize “BE YOU Club” an employee affinity group to promote an inclusive organizational culture that embraced diversity where everyone can share identity-affirming stories and hold Live Talk on the topic of “You & Me & Me very happy together” are also hosted to inspire acceptance of diversity and support a work environment where everyone can work together happily. Moreover, we providing a channel for advice, consultation and mentoring on Diversity, Equity and inclusion by life coach and the SCG Diversity Committee.

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

Contractors/ Suppliers

SCG has collaborative plans with supplier to advance their potentials, through promotion and integrated practice of ethics, social and environmental responsibility, aimed at sustainability throughout the value chain. The highlight implementations as follows;

SCG Supplier Code of Conduct is hereby revised in 2022 to improve the clarity and alignment with the current situation as well as SCG’s ESG pathway and cover more related human rights issues such as freedom of association and right tocollective bargaining, prevention of human rights violations and communicate to contractors/ suppliers to understand the intentions and guidelines for doing business together. Therefore, the Supplier Day was held on December 15, 2022 in which human rights were raised as one of the important topics and we also support the integration of ESG into their business operations.

Human Rights Risk Assessment in Supply Chain: SCG applied enterprise risk management framework and embed risk assessment process in “SCG Sustainable Procurement Framework” which covers Human Rights and related issues. In 2022, 100% of contractors and suppliers with procurement spending of over 1 million baht passed ESG risk assessment.
Supplier Portal: Platform for assessment process covering human rights issues, monitor suppliers/ contractor’s performance and communicate information including access to grievance channels.
Capability building: Enhance suppliers/ contractors’ capability for business sustainability including human rights related issues i.e. Contractor Safety Management, Carrier development programs, and Safety Management for Service Solutions.
Monitoring and auditing programs:
- 94% of contractors and suppliers demonstrated intent to comply with SCG Supplier Code of Conduct.
- 100% of major carriers have assessed.

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;

Human Rights Risk Assessment: SCG applied human rights risk assessment by developing human rights questionnaire to monitor the status annually and jointly plan to support the implementations of Joint ventures from SCG.
Capability building: raise understanding and awareness by training and sharing from SCG and external consultant.
Monitoring and auditing programs: 100% of Joint Ventures* have been assessed for Human Rights risks.

Remark: * is ≥ 10% SCG share

Community

Creating Educational Opportunity, Improving Job Security, and Enhancing Well-being

The company aims to help 50,000 people by 2030 to reduce social inequalities in society. This goal will be met by providing career development for in-demand jobs in communities and SMEs. For example, a career training for a truck-driver job is provided by Skills Development School, and a home renovation training is provided by Q-Chang.

Career development for jobs, such as nursing assistants, dental assistants, and elderly caregivers, are offered through a scholarship from the Learn to Earn project and granted scholarships to underprivileged children and teenagers through Sharing the Dream project established by SCG Foundation. In addition, product procession training and online and offline product sale training are offered through the Power of Community projects.

Loan support is also offered to sub-dealers and major contractors through the Siam Saison platform, along with the NocNoc.com and Prompt Plus platforms provided during the COVID-19 crisis to help SMEs have channels to sell their products. (Read more detail in SD Report 2022, P. 60-63)

Human Rights Awards in 2022

SCG was given a Human Rights Award (Outstanding Achievement) for a third consecutive year from the Rights and Liberties Protection Department, 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), a global organization whose members are business organizations worldwide. It requires the members to comply with SEDEX standards in four areas: labor standards, health and safety, business ethics, and environment, which assure company operations and business partners are responsible for business practices and respect for human rights.

In 2022, companies in SCGP both Thailand and abroad have implemented SEDEX’s regulations, assessed by external auditors and become members of SEDEX for 13 companies.

DOCUMENT DOWNLOAD

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