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10 November 2006

Grasim is a member of the Global Compact, an international forum that operates under the aegis of the United Nations. The forum's vision is to usher in a "more sustainable and global economy." There are ten basic principles outlined in its charter and the following pages highlight the thinking and initiatives of the company in those areas.

Human Rights
1. Businesses should support and respect the protection of internationally proclaimed human rights

Grasim ascribes to the human rights policy of the United Nations and Global Compact. It has a comprehensive policy and a code of conduct which is binding on all employees who must sign it on their induction in to the company. It protects the interests of the employee and other stakeholders. "Integrity, trust, fairness and honesty are the basics that guide our strategies, our behaviour and the relationships we build with people, both internally and externally. Each of us will exercise the highest level of ethical and professional behaviour," states the policy.


2. Businesses should make sure that they are not complicit in human right abuses

Grasim endeavours to uphold the human rights outlined in the Global Compact. Not only in terms of its employees, as detailed above, but also for others such as customers and business associates. Here is what the policy states: "We are committed to our customers, to fulfilling their present needs and anticipating their unmet needs. We are dedicated to continually improving quality, usefulness and value of our products and services that help our customers enhance their performance. We provide value for customers through creativity, innovation, productive relationships, quick response and simplicity in all that we engage in."

Going beyond business, the company is engaged in community work, concentrating largely in the rural areas close to its manufacturing plants. Grasim, has been involved in various meaningful, welfare-driven initiatives that distinctly impact the quality of the weaker sections of society.

Implemented under the aegis of the Aditya Birla Center of Community Initiatives, Grasim's community development programme reached out to nearly six lakh people in 2005-06. The major programmes include watershed management including drinking water provision in villages and townships, and running schools for ensuring quality education to children. It is in tandem with the Group's social vision which is "to make a qualitative difference to the lives of the weaker sections of the society in proximity to our plants and in doing so improve the Human Development Index of our nation."

In recognition of the outstanding community work, Grasim's Staple Fibre Division (SFD) at Nagda received the prestigious Asian CSR Award 2005, naming it among the three best Asian Corporates working to elevate education standards among the rural poor. The Indian Chemical manufacturers Association conferred the Corporate Social Responsibility Award on the SFD plant.

A summary of our involvement is enumerated below:

  • Grasim conducted 630 medical camps at which over 87,200 villagers were medically examined and those who were afflicted were treated for their ailment
  • 5,675 villagers were checked for their eyesight of which 2,303 senior citizens were provided with intra ocular lens and 768 were given spectacles for better sigh
  • Immunised 49,000 children against polio and 1,699 children for Hepatitis B
  • Over 1150 children between the ages of three to six have been enlisted in Balwadis run by Grasim
  • Over 5,300 farmers benefited through farm-based programmes, farmer training, seed multiplication and compost units
  • Water harvesting structures, such as hand pumps installation, erecting check-dams, ponds, roof-water harvesting and digging wells support thousands of families

Labour Standards
3. Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining
Our manufacturing locations have workers in the unionised cadre. Long term settlements are signed with the workers at regular frequency wherein the management and union leaders sit across the table and negotiate the terms of the settlement. The process is peaceful and productive across all locations.

Being essentially a meritocracy and a peoples' organisation, our attention in the people area remains unwavering. We are enhancing the quality and the pace of the institutionalisation of our systems and processes. These now embrace the entire life cycle of the employee's engagement with the organisation. Several new initiatives have been taken towards the well being of our employees, particularly in the area of healthcare, education of their children and other critical aspects. We have cordial relations with our shopfloor colleagues, creating a work place environment that nurtures innovation and encourages people to constantly learn and grow.

4. The elimination of all forms of forced and compulsory labour
People are keen to associate with Grasim out of their own volition. The terms and conditions are explained in detail openly before the appointment is formalised.


5. The effective abolition of child labour

Grasim does not employ child labourers.


6. Eliminate discrimination in respect of employment and occupation
Grasim is an equal opportunities employer. Our policy states: "We respect the individual rights and dignity of all people. We believe in the inherent potential of employees and are fully committed to people development processes in our company in a fair, equitable and transparent manner. We encourage employees to grow professionally and personally to their highest capabilities regardless of nationality, caste, religion, colour or sex."

Environment
7. Businesses should support a precautionary approach to environmental challenges
Our environment policy clearly states: "We are committed to sustainable development and to the health and safety of our employees and the environment surrounding our plants; to building eco-efficiency in all of our operations and to guarding natural resources. We are committed to going beyond stipulated requirements and ensure energy conservation and productive recycling of waste."

Grasim's Viscose Stable Fibre's OEKO-TEX 100 certification which endorses that the fibre produced by us is next to nature, has been renewed by the British Textile Techno Group, Manchester, U.K. This is significant as it also indicates that our Viscose Staple Fibre does not contain any harmful substance.

8. Undertake initiatives to promote greater environmental responsibility
We relentlessly pursue the development of cleaner production processes that inherently reduce pollution levels and require fewer resources. All of the company's plants adopt clean technologies and processes that combine both economic progress and sustainable development. Professional environmental Auditors such as KPMG Peat Marvick, Det, Norske Veritas, the State Pollution Control Board's certified auditors and Environmental Auditors conduct an in-depth environmental audit at our plants. Their Audit reports validate our commitment to environmental conservation.

State-of-the-art automated industrial Effluent Treatment Plants (ETP) operate across all of Grasim's manufacturing units. The treated effluent is recycled and is used for horticulture. On the energy conservation front, recycling digester pre-steam condensate boiler feed water in the D.M. water plant, has resulted in significant energy savings. To prevent air borne effluents escaping into the atmosphere, advanced equipments are in place to meet the stringent air-pollution norms.

9. Encourage the development and diffusion of environmentally friendly technologies
Grasim is increasingly resorting to alternate fuels, such as pet coke which is a by-product of oil refineries and low grade lime stones, to save on natural resources.

The installation of In-line Optical Brighteners and Analysers for controlled chlorination and improving the process efficiency has considerably reduced chorine generation. Among the new ways of waste disposal devised at the VSF and pulp plants, include using ETP sludge dryers to facilitate burning in the existing coal fired boilers. This results in lower coal requirement thereby minimising coal-related environmental impact.

10. Businesses should work against all forms of corruption, including extortion and bribery
The company policy clearly states: "I will not seek or encourage bribes or kickbacks in any form. I will not deal with a supplier who offers me a bribe to get a contract awarded." Adherence to the policy is total and no leniency is shown to a defaulter.

The Aditya Birla Group has re-articulated the values that spawn across its diverse businesses and locations and act as an organisational glue to bind people together. These values are: Integrity, Commitment, Passion, Speed and Seamlessness. The values drive the organisational thinking and processes-whether related to people, manufacturing, environment or community responsibility, the bedrock of the principles outlined by the UN Global Compact.

Here is what our Chairman Mr. Kumar Mangalam Birla has to say: "Great businesses are never built on the quick sands of opportunism. If living by our values means, perhaps growing at a pace slower than we would otherwise liked, so be it. For us, leadership lies at the heart of knowing what we stand for."


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