Good Practice Note | January 2006 | Number 5 Good Practice Note Non-Discrimination and Equal Opportunity T Environment and Social Development Department he concepts of non-discrimination and equal distinction, exclusion or preference which has the opportunity have for decades been part of effect of nullifying or impairing equality of the international community's key principles. opportunity or treatment in employment or Enshrined in numerous international instruments, occupation, and is made on the basis of personal including conventions of the United Nations and the characteristics, including race, color, gender, religion, International Labor Organization, these concepts political opinion, national extraction or social origin, are rooted in universal principles of human rights, disability, age, sexual orientation, and/or HIV status. fundamental freedoms, and equality. In today's What’s Inside? emerging markets, companies that seek to be Discrimination can take many forms and can affect 2 The Business Case for Diversity leaders and set examples of corporate social both access to employment and the treatment of 4 Where Discrimination Can Occur responsibility while building a productive and employees once they are employed. It may be 6 Standards on Non-Discrimination diverse workforce must address issues of direct or indirect, and arise in a range of industry 7 International Instruments 10 Types of Discrimination discrimination in the workplace. Businesses that sectors and cultural settings. Given the complexity of 12 Maternity and Other Family Rights succeed in doing so act decisively to eliminate the challenge, the Good Practice Note seeks to help 14 Harassment discriminatory practices and create the conditions IFC clients and the wider private sector increase 16 Migrant Workers for diversity and equality of opportunity and their understanding of the issue in a number of key 18 HIV/AIDS treatment in employment, often going beyond what areas, including: recognition of the various types of 20 How Companies Can Make a Difference is required of them by national law. Employers who discrimination; how and where it can occur in the 24 Acknowledgments and Useful References adopt such approaches may derive a number of workplace; obligations under national law and other business advantages, including penetration of new international provisions; practical approaches and markets, improved employee morale, a wider pool options for addressing workplace discrimination; and of talent from which to recruit, reduced exposure the benefits derived from diversifying the workforce. to legal challenges, and reputational benefits. (For more on The Business Case for Diversity, see p. 2.) While tackling these issues can be sometimes controversial and difficult, particularly in an emerging Both non-discrimination and equal opportunity are market context, there are a growing number of rooted in the principle that all employment companies engaged in good practice efforts that may decisions are based on the ability of the individual to go beyond their legal obligations with respect to do the job in question without regard to personal non-discrimination. These businesses are actively characteristics that are unrelated to the inherent reaching out among the communities in which they requirements of the work. Conversely, operate to create opportunities for previously discrimination in employment can be defined as any alienated groups to participate in the labor market. Page One Non-Discrimination and Equal Opportunity This Good Practice Note draws on many of these addition, emerging market companies which examples and case studies to illustrate how today's produce for a global export market are increasingly companies are taking positive action in the equal finding that such issues are raised by their opportunity arena. customers, who require commitments as to the elimination of discrimination as a standard condition of business. There is a growing The Business Case consensus that for Diversity There are often clear business benefits for a company in recruiting employees from as wide a promoting a diverse There is a growing consensus that promoting a pool as possible. Businesses that are serving workforce is good for diverse workforce is good for business. particular markets will frequently find that having a business. Employment practices and decisions based on an diverse workforce increases their penetration in individual's gender, race, religion or other personal those markets, based on the image which their characteristics irrelevant to their performance at workforce gives to potential and actual customers. work restrict the available pool of workers and Such companies also tend to benefit as a result of skills. Discrimination also can isolate a company having a wide range of experiences, perspectives, from the community in which it operates and and cultural understandings within the organization. damage its reputation, potentially affecting profits. In Business Case for Diversity in Brazil The German chemical company BASF seeks to The Committee's first actions were to review and uphold equal opportunities for all, irrespective of sex modify recruitment selection procedures. In addition, or color, in all its operations. This principle is of communications measures have been taken to particular importance within its operations in Brazil, encourage awareness of the issue and events a country forged out of diverse cultures, where black including workshops for management staff and people and women, in particular, are sometimes community initiatives have been planned. The idea constrained in their educational and employment is to integrate the diversity principle firmly in the opportunities. minds of decision makers and employees. This is reflected in the composition of BASF's BASF recognizes that an ethnically mixed workforce workforce. The company currently employs around brings its cultural knowledge on board and helps 3,500 people in Brazil, yet fewer than one in four the company to develop new markets and service are women and only around 6% are black. Thirty- existing ones in a customer-focused manner. five women and nine black employees currently hold Diversity is thus a sound business principle, simply senior management positions. because BASF wants the best employees on the market. In order to reverse the overall underrepresentation of women and black employees within the company, This program places BASF among the very few and above all in management positions, BASF S.A. multinational companies operating in Brazil that established a Diversity Committee in 2003. The pro-actively tackle the problem of discrimination Committee is made up of members representing against women, black workers and other minorities, Brazil's diversity, particularly women and black both in employment and in occupation. workers. Source: BASF, Global Compact 'Learning Forum' paper Page Two Good Practice Note | January 2006 | Number 5 Non-Discrimination Roadmap Identify need for » Link non-discrimination with business priorities non-discrimination » Get top management support for initiatives strategy » Identify business benefits from non-discrimination Prepare baseline » Analyze the composition of workforce information » Analyze the composition of local labor market » Get information on legislative requirements Review and change » Move to competence-based systems recruitment » Ensure recruitment is not based on personal specifications policies » Train managers in non-discriminatory recruitment Assess payment » Identify potentially discriminatory practices practices » Audit payment disparities for women and minority groups Implement an » Define an anti-harassment policy anti-harassment » Communicate the policy to the workforce policy » Train managers on the policy » Support workers who are harassed Develop family-friendly » Institute maternity leave policies policies » Encourage flexible working where appropriate » Consider the possibility of providing crèches » Consider ways to accommodate breastfeeding mothers Understand cultural » Know the cultural boundaries in the society in which you operate and religious » Train and develop managers to understand cultural differences diversity » Adjust workplace practices to facilitate religious cultural practices where possible Involve » Check your recruitment requirements: are they absolutely necessary? underrepresented » Consider ways of providing training to potential employees to improve their groups in your chances of employment workforce » Consider whether you can work with government, trade unions and other stakeholders to develop the potential of underrepresented groups Devise a strategy to » Examine ways in which jobs can be readjusted to accommodate persons with deal with disability disabilities and health issues » Have a health management system which seeks to rehabilitate or reintegrate employees who have long-term health problems » Develop a policy on HIV/AIDS Communicate » Ensure your managers and workforce know the standards of behavior expected of them and are aware of company policies » Let marginalized communities know about your programs » Accentuate the positive advantages of non-discrimination with all stakeholders Page Three Managing Retrenchment Non-Discrimination and Equal Opportunity Other business advantages derived from an Grounds upon Which approach based on non-discrimination and equality Discrimination May Be of opportunity may include: Inappropriate or Unlawful » being the employer of choice - promoting their » Gender » Sexual orientation values and commitment to diversity is one tool » Race » Disability or health In most » Nationality » HIV status companies use in attracting the best talent » Ethnic origin » Union membership circumstances » improved productivity through increased » Caste » Political affiliation employee morale, job satisfaction and reduced » Religion or belief » Marital status discrimination will turnover not tend to be overt, » a better market focus with an understanding of not tend to be overt, but rather the result of but rather the result changing customer base and awareness of prevailing cultural, social or economic norms. It customer needs may also arise from the application of particular of prevailing cultural, » enhanced reputation policies which on the face of things appear neutral social or economic » increased competitiveness, creativity and in their effect, but in reality are detrimental to one norms. productivity group as compared to another. For example, if an » reduced vulnerability to legal challenges employer advertises only in a particular language, or claims a job needs particularly stringent qualifications, the effect may be that members of Where Discrimination one group are less able to apply for the job. In such Can Occur circumstances an employer should be able to justify the application of the requirement imposed. Discrimination can arise in a variety of work-related situations. These include access to employment Some of the areas where discrimination is most and to particular occupations, and access to training likely to occur, and where companies should and vocational guidance and support. Further, it can exercise care in their policies and actions, include occur with respect to the terms and conditions of the following: the employment, such as remuneration, hours of work and rest, paid holidays, maternity leave, » Recruitment of new workers. Problems can security of tenure, advancement, social security, occur as a result of basic prejudice or and occupational health and safety. It can also arise misunderstanding on the part of those making through harassment and victimization. the hiring decisions. They can also arise from the Discrimination at work may occur in a range of application of particular criteria or requirements settings; it can exist in a rural agricultural business or that are not necessary for the job but negatively in an urban high technology environment. impact a particular group. Examples include: unnecessary qualifications, language skills that are There are some circumstances where employers not required by the job, or a requirement that deliberately discriminate on inappropriate grounds. recruits must live in a particular area, unless this However, in most circumstances discrimination will is necessary for the job. Page Four Good Practice Note | January 2006 | Number 5 » Retrenchment and restructuring. These ensure that policies and procedures are in place processes often involve the dismissal of workers, to ensure that such terminations are not a mask which can give rise to discrimination against one for discrimination practices. group, depending on the procedure and criteria » Training and development. Just as preferences used. For example, dismissing those with the can be made during hiring and promotion, the least amount of service may disproportionately same can be said for training and development. It Decisions on how affect women and minorities, who are often the is important to bear this in mind, because an most recent entrants in many longer established employee may later be denied promotion on the much individuals are organizations. apparently non-discriminatory ground that he or paid and who should » Payment and promotion. Decisions on how she had less training and qualifications. much individuals are paid and who should be » Harassment at work. Where there are gender, be promoted can promoted can often be subjective and open to ethnic or other tensions at work, harassment may often be subjective influence by discriminatory criteria. Assessment take place. Women in particular are subjected to and open to influence by managers may be subjective, or the widespread harassment. rewarding of some characteristics such as » Maternity protection. In order to effectively by discriminatory strength more than others such as dexterity, for participate in the workforce and not suffer criteria. example, can disadvantage women. discrimination, it is essential for women to receive » Dismissal for cause. While there is nothing particular protections in relation to maternity, inherently discriminatory about dismissing an childbirth, and breastfeeding. employee for good reason, employers should Anti-Discriminatory Measures in Venezuela Norwegian energy group Statoil has taken a broad befall the Warao people of the Orinoco delta, where view of its responsibilities with regard to much oil is produced. discrimination in employment. The company runs an established training program on human rights for Statoil supports the UNDP and BanMujer, a employees and contractors in Venezuela, and governmental institution, with a training program to prevention of discrimination against women and promote the incorporation of women into the indigenous peoples is one of the main elements productive chain in Valdez Municipality, Sucre State. included in this program. As far as training programs and work placement for vulnerable or excluded groups are concerned, Statoil To gain knowledge about national requirements and Venezuela sponsored the publication of the First challenges, Statoil cooperates closely with the Multicultural Bilingual Educational Guide for the government and NGOs in Venezuela. The group has Warao People. This project was carried out in signed an agreement with the United Nations partnership with the Ministry of Education, the oil Development Program (UNDP), which has among company Perenco Venezuela and the NGO SOCSAL. others an education program for children to Statoil is also currently supporting an Amnesty promote non-discrimination and tolerance. This last International training program for people with component has a specific project on human rights disabilities to become economically active. for indigenous communities in order to combat the discrimination and intolerance which commonly Source: Statoil, Business Leaders Initiative on Human Rights Report 2: “Work in Progress” Page Five Managing Retrenchment Non-Discrimination and Equal Opportunity Standards on IFC Standards Non-Discrimination IFC requires specific performance standards in relation to projects that it finances. These Most countries have some form of non- performance standards are driven by principles of discrimination legislation. This can range from social and environmental sustainability, are In some countries, simple one-sentence constitutional provisions outcome-focused, and contain concise objectives non-discrimination prohibiting discrimination at large, to detailed and requirements. laws may be weak or labor-specific legislation on various discriminatory practices. Where rules against discrimination exist Performance Standard 2 on Labor and Working may only cover a as part of national law, businesses are obliged to Conditions states that IFC clients shall not make limited range of comply. employment decisions on the basis of personal characteristics unrelated to inherent job categories. In some countries, however, non-discrimination requirements. It goes on to state that the client will laws may be weak or may only cover a limited base the employment relationship on the principle range of categories. In such circumstances of equal opportunity and fair treatment, and will not businesses that take principles of non-discrimination discriminate with respect to aspects of the seriously often look to broader standards agreed to employment relationship, including recruitment and by the international community and industry best hiring, compensation (including wages and benefits), practice to help determine their own standards of working conditions and terms of employment, behavior. Social and cultural expectations are often access to training, promotion, termination of slow to develop around issues of discrimination, employment or retirement, and discipline. In and it may often be the case that national legislation countries where national law provides for non- or even international standards may lag behind discrimination in employment, the standard current best practice approaches to non- requires the client to comply with national law. discrimination. When national laws are silent on non-discrimination in employment, the client is still expected to meet However, there are some common themes in the principles of non-discrimination set out in the both international conventions and law, as well as performance standard. The standard also specifies private and public sector best practice. In this that special measures of protection or assistance to section we set out the principles that guide IFC remedy past discrimination or selection for a clients in this area as well as international and other particular job based on the inherent requirements standards which apply in relation to non- of the job will not be deemed to be discriminatory. discrimination. IFC's Performance Standard on Labor and Working Conditions is also accompanied by a Guidance Note that provides further details on the issues of non-discrimination and equal opportunity. More information can be found at: www.ifc.org/enviro Page Six Good Practice Note | January 2006 | Number 5 International The Complexity of Employment Equity in South Africa Instruments As a major employer in South Africa, mining for the rigorous testing is that potential company BHP Billiton is committed to employees need to operate heavy There are a number of well-established achieving employment equity in its South machinery in the plant. On average, in an international instruments related to discrimination in African operations. The company has intake of 70 candidates, only three introduced an Employment Equity Policy, in candidates qualify for employment. Most the workplace. Some have been in existence for consultation with trade unions and in line with candidates fail the medical testing due to over fifty years, while others have evolved more the spirit of the South African Government's poor health and living standards. The net recently in response to new and emerging issues. Employment Equity Act, which is aimed at result, by default, is that the uptake of improving labor market access and mobility candidates is skewed in favor of people Among the most important international for people in designated groups: black from the Indian and white communities. conventions are those which come from the people, women, and people with disabilities. International Labor Organization (ILO) and the The ultimate aim for the company is to Some positive results are already apparent, achieve representation at all levels of the however. At the company's Hillside United Nations. The ILO places obligations on business consistent with the demographic operation, initiatives include an countries to take measures to eliminate profile of South Africa. Accelerated Development Program to facilitate the development and promotion discrimination in employment and occupation and Recognizing the country's history, in which the of employees with potential; scholarships to to promote equality of opportunity and treatment. majority of South Africans were excluded from help female employees achieve millwright Discrimination is defined in ILO Convention 111 as participating in the mainstream economy, BHP status; practical vocational work for Billiton has adopted a strategy of change students; and on-site training for graduates any distinction, exclusion or preference based on a through empowerment. to allow their skills to be identified and number of specified grounds which has the effect of developed. It is through initiatives such as The Employment Equity Forum addresses the these that Hillside has attained a 60% nullifying or impairing equality of opportunity or issue of legislative requirements for the success rate in filling promotions and treatment in employment or occupation. company, maternity benefit policy, pension appointments from the targeted designated provision and recruitment. It also covers groups since the plan was put in place. transformation at the levels of ownership, The scope of the Convention covers access to management, sustainable socio-economic To promote equitable access to vocational training, access to employment and to development, and procurement. The employment, BHP Billiton is involved in a particular occupations, and terms and conditions of company's Employment Equity Policy, a key number of community projects. For plank of the strategy, is aimed at redressing example, in partnership with other major employment. Some 162 States have ratified this previous imbalances through accelerated industries in the region, through Zululand Convention and, as a consequence, are obliged to development, training and education Chamber of Business Forum, the company programs, and numerical goals and participates in a number of school undertake to repeal any statutory provisions and timetables. initiatives aimed at providing support modify any administrative instructions or practices structures to schools in the region, with which are inconsistent with non-discrimination, and Achieving this goal is far from straightforward, particular emphasis on the fields of however. BHP Billiton's recruitment policy mathematics, physical science and biology, to enact legislation and promote educational provides an illustration. All candidates must as well as physical school improvements. In programs which favor its acceptance and have specific school qualifications (Grade 12) addition, BHP Billiton is involved with a implementation in cooperation with employers' and plus mathematics and science as subjects number of skills training projects in the passed. All candidates for any position in the Empangeni region. workers' organizations. company must pass a medical examination. Candidates applying for positions at the plant must undergo a number of tests, which The ILO Equal Remuneration Convention, 1951 include psychological assessment, medical, (No. 100) provides that ratifying states should—by stamina, hearing, eyesight and lung function. Source: BLIHR, BHP Billiton 2004 Health Safety According to the company, the reasons given Environment and Community Report means appropriate to the methods in operation for Page Seven Non-Discrimination and Equal Opportunity determining rates of remuneration—promote and, discrimination and, to the extent possible, without insofar as is consistent with such methods, ensure conflict between their work and family the application to all workers of the principle of responsibilities. equal remuneration for men and women for work of equal value. This implies that rates of The United Nations International Convention on remuneration must be determined without the Elimination of All Forms of Racial Rates of reference to gender. Discrimination (1965) defines racial discrimination remuneration must as “any distinction, exclusion, restriction or be determined Regardless of whether a State has ratified the core preference based on race, color, descent, or ILO Conventions on non-discrimination, the national or ethnic origin which has the effect of without countries in which IFC operates have committed to nullifying or impairing the recognition, enjoyment or discrimination their implementation. This is because the principles exercise, on an equal footing, of human rights and are one of the four “core” labor standards fundamental freedoms in the political, economic, based on gender. contained in the ILO's Declaration on Fundamental social, cultural or any other field of public life.” Rights and Principles at Work, which all members of the ILO have agreed to promote. The United Nations Convention on the Elimination of Discrimination Against Women The ILO Maternity Protection Convention, 2000 (1979), in addition to enumerating the equal rights (No. 183) requires ratifying member States to that women should enjoy in the workplace, adopt measures to protect the health of pregnant emphasizes the steps that government should take and breastfeeding women at work. It includes to “prevent discrimination against women on the provisions concerning their entitlement to grounds of marriage or maternity and to ensure maternity leave (not less than 14 weeks) and their effective right to work.” These measures benefits. Member States are also explicitly required include: protection from dismissal on the grounds to ensure that maternity does not become a source of pregnancy, maternity leave, or marital status, as of discrimination in employment, including access well as special protections for women during to employment and protection against dismissal. pregnancy in types of work proved to be harmful to them; maternity leave with pay or with comparable The Workers with Family Responsibility social benefits without loss of former employment, Convention, 1981 (No. 156) aims to promote seniority or social allowances; and provision of the equality of opportunity and treatment between necessary supporting social services, in particular men and women workers with family through promoting the establishment and responsibilities and between workers with family development of a network of child care facilities. responsibilities and other workers who do not have such responsibilities. With a view to creating The Universal Declaration of Human Rights and effective equality, member States shall make it an the International Covenant on Economic, Social aim of national policy to enable workers with family and Cultural Rights also provide general protection responsibilities to engage in employment without against discrimination. Page Eight Good Practice Note | January 2006 | Number 5 Provision of Crèche Facilities in Kenya The Alltex garment factory in Kenya provides an example of good practice in the provision of child care facilities. The factory is a joint venture between Industrial Promotion Services (Kenya) Limited (IPS) and Global Readymade Garments Industry LLC of Qatar. IFC is a 15% shareholder in IPS, the majority shareholder being the Aga Khan Fund for Economic Development. The state-of-the-art factory, which opened at the end of 2003, employs about 2,000 people, the majority of them women. Seeing the challenge facing working mothers, Alltex decided to establish and run a crèche for children of its staff. Employers in Kenya are not Regardless of compelled by law to run a crèche, but the management of this factory believes that the crèche has been responsible for making employees happier and more comfortable at work because they know that their whether a State has children are safe and happy. According to the management, this, in turn, leads to greater productivity, which equals increased profits. The crèche has a kitchen, sleeping area, sick bay, ablution block, washing and drying ratified the core ILO area and indoor play area. The crèche, which can accommodate up to 80 children, caters meals and snacks. The staff also wash and iron any clothes that the children may soil during the day. Conventions on non- Source: Aga Khan Foundation, www.akdn.org discrimination, the countries in which IFC operates have The United Nations General Recommendation Protection of the Rights of All Migrant Workers committed to their 19 to The Convention on the Elimination of All and Their Families was adopted by the UN in 1990 implementation. Forms of Discrimination Against Women and came into effect in 2003. The Convention (CEDAW) defines sexual harassment as including: makes it clear that many of the traditional civil and political rights found in the more general human “such unwelcome sexually determined behavior as rights instruments apply to all persons, including physical contact and advances, sexually colored migrant workers and their families. The Convention remarks, showing pornography, and sexual demands, also clarifies that basic economic, social, and cultural whether by words or actions. Such conduct can be rights apply to both regular and irregular migrant humiliating and may constitute a health and safety workers. However, there are some instances in problem; it is discriminatory when the woman has which the Convention permits States to limit the reasonable ground to believe that her objection would rights of certain specific categories of temporary disadvantage her in connection with her employment, migrants, such as seasonal workers, project-tied including recruitment or promotion, or when it creates workers, or specified-employment workers. The a hostile working environment.” ILO has Conventions relating to migrant workers: Convention No. 97 on Migration for Employment The International Labor Organization has addressed and Convention No.143 concerning Migrations in sexual harassment as a prohibited form of sex Abusive Conditions and the Promotion of Equality discrimination under Convention No.111. of Opportunity and Treatment of Migrant Workers. Convention 97 says that migrant workers There are a number of international instruments should be entitled to equal treatment with national that are aimed at protecting the rights of migrant workers regarding working conditions, trade union workers. The International Convention on the membership and enjoyment of the benefits of Page Nine Non-Discrimination and Equal Opportunity collective bargaining, accommodation, social are highlighted briefly below, followed by a more security, employment taxes and enforcement of detailed discussion of thematic areas where, in employment rights. practice, businesses may be less aware of the discriminatory impact of certain policies and Emerging Private Sector Good Practice procedures. Some employers There are a number of examples of voluntary Religion choose to allow initiatives on labor standards which also cover employees of a discrimination. For example, the tripartite Ethical It is important for employers to ensure that no Trading Initiative's base code provides that ETI work practices discriminate directly against particular religion members should ensure, in respect of the suppliers individuals on the basis of their religion. There may time off on to which the code applies, that there should be “no also be indirect discrimination arising from particular discrimination in hiring, compensation, access to requirements placed on workers which have a important religious training, promotion, termination or retirement disproportionate effect on account of their religion. holidays, while based on race, caste, national origin, religion, age, So, for example, if a company has a policy that others provide for disability, gender, marital status, sexual orientation, employees cannot wear a beard or headdress, this union membership or political affiliation.” may affect certain religious groups. Or if an prayer facilities employer requires employees to remain at their within the Similarly, the Electronic Industry’s Supply Chain workstation throughout the day with no choice Code of Conduct (EICC) provides that over the timing of their breaks, this might affect workplace. participants should be committed to a workforce those who wish to pray. Both rules could be free of harassment and unlawful discrimination. justified, but the company should be able to show Companies shall not engage in discrimination based sound business reasons for sticking to an absolute on race, color, age, gender, sexual orientation, rule. Some employers choose to allow employees ethnicity, disability, pregnancy, religion, political of a particular religion time off on important affiliation, union membership or marital status in religious holidays, while others provide for prayer hiring and employment practices such as facilities within the workplace. promotions, rewards, and access to training. In addition, workers or potential workers should not Disability be subjected to medical tests that could be used in a discriminatory way. (See also, www.eicc.info) While certain jobs will have requirements which would make it difficult or impossible for an individual with a particular disability or defined Types of Discrimination health problem to do them, there may often be ways in which the job can be adjusted to facilitate There are, as previously mentioned, a number of that individual. An employer may find that forms of discrimination that are considered to be preconceptions about particular illnesses or internationally unacceptable. Some of the key areas disabilities overstate the effect on an individual's Page Ten Good Practice Note | January 2006 | Number 5 ability to work. Employers should look carefully at Sexual Orientation any such preconceptions and seek to make accommodations where appropriate. Increasingly, good practice employers acknowledge that distinctions made upon the basis of an Gender individual's sexual orientation are both inappropriate and irrelevant to running an efficient and merit-based In many countries As discussed in various parts of this Note, there are business. Often such employers will also adopt many ways in which discrimination on the grounds measures to prevent workplace harassment on the age still remains a of gender may occur. Good practice employers will basis of sexual orientation. difficult question in always look to eliminate both direct and indirect discrimination on the grounds of gender, whether Age terms of non- this is in the form of recruitment decisions or discrimination payment and promotion systems which unduly While in many countries age still remains a difficult practice and favor men. Good practice calls for a regular review question in terms of non-discrimination practice and of all forms of employment policy and practice to legislation, emerging good practice seeks to legislation. determine how they affect women and also how eliminate it as a criterion for making decisions which they may be moderated in order to remove gender have an adverse impact on employees. This is not to bias and discrimination. Issues to consider include say that certain benefits such as retirement pensions equal remuneration for men and women workers and the like should be removed, but rather that for work of equal value. (See also Maternity and individuals who are otherwise obviously suited for a Other Family Rights, p. 12.) job should not be discounted merely because of either their age or unfounded perceptions related to their age. Religious Sensitivity in Malaysia Mattel's Global Manufacturing Principles enforce determine policies that would best accommodate non-discrimination practices and promote religious practices. These included two prayer rooms understanding of religious freedoms. The company or mushollas (one for men and one for women), respects not only the cultural, ethical, and flexible schedules to accommodate Friday prayer, and philosophical differences of the many countries in Muslim-sensitive menus in company cafeterias. which it operates, but also the needs of distinct During the fasting month, employees who fast during employee groups within its manufacturing facilities. their shift are entitled to make other arrangements for For example, at its die-cast plant in Penang, their meals. In addition to recognizing all state Malaysia, a country recognized as one of the most holidays, Mattel gives its workers paid leave for ethnically diverse in the world, Mattel has provided a religious activities and state obligations, with written Hindu shrine, a Buddhist shrine and an Islamic proof from appropriate institutions. In addition, musholla to address varying prayer needs. Mattel Muslim employees who have three years of service at also operates two plants in Indonesia that combined Mattel are permitted to make a pilgrimage to Mecca, employ roughly 10,000 people, about 90% of whom entitling them to 45 days leave of absence with full are Muslims. When developing a collective labor pay. agreement on behalf of its employees, Mattel established an employee-elected committee to Source: www.bsr.org Page Eleven Non-Discrimination and Equal Opportunity Race, Nationality, Ethnic Origin is pregnant, forced testing involves a gross invasion of privacy and therefore constitutes an Employers should seek not to discriminate on the inappropriate business practice. Similarly, basis of race or ethnicity. This is of particular requirements upon women to take contraceptive importance where either there is a mixture of pills as a condition of their employment is also different races within a country's national population unacceptable, as are intrusive questions about an Wherever possible, or there are defined groups of migrants or individual's intentions with regard to having provision should be immigrants. It is important that an employer children. Dismissal of workers because they are made to enable considers the potential for both direct and indirect pregnant is, likewise, internationally recognized to discrimination in this regard and, in line with some be an inappropriate course of action. women who work of the examples given in this Good Practice Note, to continue seeks to implement policies and procedures to Maternity leave reduce the possibility of discrimination. breastfeeding their The amount of maternity leave and payments children. during leave varies according to the relevant Maternity and Other national law and/ or collective agreements. Family Rights Employers should inform employees of their rights with regard to maternity and other parental leave An area which can often give rise to controversial when an employee informs them of her pregnancy. and difficult issues relates to the rights of women to Further, the employer should be sure to comply both reproductive health services and continued with all relevant payments and leave entitlements. work before, during and after pregnancy. Breastfeeding Pregnancy Testing Wherever possible, provisions should be made to Throughout the world there are employers who enable women who work to continue submit their female employees to pregnancy tests breastfeeding their children, either by way of areas before and during employment. This is a where children may be brought during breaks or discriminatory procedure and questionable from a through breaks to allow women to express milk legal standpoint. Many large-scale multinational and keep it refrigerated. Some companies provide organizations that have discovered that their child care facilities and lactation rooms for their suppliers have been applying such procedures have employees. asked them to stop doing so under the terms either of corporate codes of conduct or national Other Family Rights legislation. Women normally, though not always, constitute the While some employers believe they have a right to main caregivers, and, as such, it is important for know for business purposes whether an employee employers to understand that they may sometimes Page Twelve Good Practice Note | January 2006 | Number 5 Pregnancy Testing and Outsourced Work in a Free Trade Zone Novartis is a major pharmaceutical and consumer the woman herself should decide whether to reveal healthcare company with 360 independent affiliates her pregnancy and determine what would be best for in 140 countries. The company signed the UN herself and her child. Pregnancy testing can be Global Compact in 2000. viewed as both a form of sex discrimination and a violation of a woman's right to privacy. While sex Dismissal of workers A survey to determine particular areas of concern for discrimination is prohibited by relevant ILO the company suggested that third-party activities Conventions, these do not explicitly address because they are were potentially problematic. One clear example pregnancy testing. was the existence of pregnancy testing at a sub- pregnant is contracting production facility in a developing Denying employment on the basis of pregnancy can, country free trade zone. in many countries, pit local practice against global internationally norms. Is this an area where global society should, The management of the plant was pregnancy-testing and has, the right to overrule local practice? recognized to be an job applicants during a pre-employment physical without the applicants’ knowledge, and denying Local Novartis management argued that pregnancy inappropriate course employment to pregnant women. Before the testing was an accepted practice in the country, as company started emphasizing human and labor shown by the government-owned facility’s insisting of action. rights, pregnancy testing had never surfaced as a that a change would jeopardize the relationship with part of Novartis' anti-discrimination policy. the plant, which had demonstrated acceptable overall standards for labor practices over an extended period As with many labor rights issues, there were a of time and was a model plant for its environment (as number of complicating factors. The production confirmed by an on-site monitoring visit). Beyond the facility was owned and managed by the local pregnancy testing issue, insisting on a change of government, as was the whole free trade zone; policy could have a negative effect across a broad undisclosed pregnancy testing was not against the range of other interactions between Novartis and the national law; moreover, it was policy across the free government. trade zone that a condition of employment should be that the worker be unmarried and not pregnant. This issue found its way to the Novartis Executive Committee, consisting of the top eight executives in The senior plant management believed they were the company. The Committee, with CEO Daniel making an important contribution to the applicant by Vasella as chairman, judged that the practice was providing a physical examination, perhaps for the indeed discriminatory and would be immediately first time in her life. It was argued, since most of stopped. The current policy is that pregnancy testing these applicants were migrant workers from remote is offered cost-free as part of the application physical, villages, they should know about their pregnancy in but is not a condition of employment. time to return home for the birth and for the nurturing environment of the extended family, an environment that could not be replicated at the plant Source: Novartis, UN Global Compact, BLIHR site. The management of the plant and that of the free trade zone were convinced their policy was the best for the applicants, for the free trade zone, and for their society. The counterargument, based on the dignity of the applicant, was that since pregnancy is such a central and unique component of a woman's identity, even though others may treat the issue with great respect, Page Page Thirteen Twelve Non-Discrimination and Equal Opportunity need time off to deal with emergency issues related healthy environment in which people can work. to children or elderly relatives. While there are Changing behavior and attitudes is one of the most obvious limitations on the amount of time workers effective ways of ensuring a harassment-free can have off for this purpose, it is generally good workplace. This includes having a clear anti- practice to allow sufficient time for employees to harassment policy coupled with anti-harassment make alternative arrangements for care. training for all staff. If harassment is alleged, the Employees subjected people involved should know their rights and to harassment responsibilities. Employees who commit acts of should have Harassment bullying or harassment should be dealt with appropriately, while employees subjected to confidential means Sometimes there may be workplace conflicts harassment should have confidential means of of placing a where an employee or group of employees seek placing a grievance or seeking support. With such sexual favors or uses sexual language, imagery or policies in place, harassment can be dealt with grievance or seeking behavior in such a way as to distress and disturb promptly, efficiently, and with the least disruption support. another employee. While women are most and cost possible. commonly subjected to sexual harassment, men may experience it as well. Employees are also often If unchecked or badly handled, bullying and harassed on the basis of their sexual orientation, harassment can create serious problems for an ethnicity, or union membership. organization, including: Even if senior management is not directly involved » poor morale and poor employee relations in this kind of behavior, an employer has » loss of respect for managers and supervisors responsibility for what goes on in the workplace. It » absenteeism and resignations is in every employer's interests to promote a safe, » damage to company reputation » court cases and awards of damages Dealing with Harassment in the Supply Chain During an internal audit of suppliers conducted by the criminal nature of sexual harassment, the Chiquita in 2002, cases of sexual harassment were action to be taken in the event of detection, and discovered in one location in Latin America. the penalties applicable. Information was received from union representatives » Training of all employees worldwide on respect in at a farm level and also from workers. Action taken the workplace and sexual harassment. by the company following the audit report included: » During the following internal audit in 2003, no cases of sexual harassment were found in this (or » Dismissal of involved supervisors after any other) location, despite careful inquiries. investigation. » Training of all women workers at the location concerning sexual harassment, their rights, and Source: Chiquita Annual Report to the Ethical Trading the duties of supervisors and management. Initiative 2003 (Feb. 2004 - http://www.chiquita.com/ » Training of all management, administrative and chiquita/corpres/ETI2003.pdf) supervisory personnel at the location concerning Page Fourteen Good Practice Note | January 2006 | Number 5 BTC - Building Local Capacity and Creating Employment Opportunities The BTC Pipeline has been built along a » Priority for unskilled job opportunities was community relations orientation. The 1,768 km corridor through Azerbaijan, given to project-affected communities. objective of this orientation was to increase Georgia and Turkey and represents one of » To maximize the spread of benefits, the awareness about the local area, cultural the world's largest construction projects. unskilled workforce would change as the sensibilities and the Code of Conduct, as At its peak, in 2004, the construction of contractor moved construction camps. well as awareness raising on health issues the pipeline involved over 20,000 workers. such as communicable diseases. The project team was made up of skilled Objective 2: Provide a fair and staff, semi-skilled workers and laborers. transparent recruitment process. Results Total IFC investment in the BTC project is The employment strategy with regard to around $250 million. In order to achieve this objective, an distribution of the workforce has generally employment strategy was developed in all worked well. In Azerbaijan the establishment BTC corporate policy states that the three countries, including protocols on: of recruitment centers in each district crossed company will generate “economic benefits by the pipeline ensured a regional spread in and opportunities for an enhanced quality » recruitment principles, explaining how they hiring. In Georgia, random selection helped of life for those whom our business contribute to the BTC Project Objectives of prevent instances of preferred individuals impacts.” Local employment was identified maximizing local employment being hired and provided an air of as one of the main benefits that the project » mechanisms by which all directly affected transparency, resulting in the recruitment of could directly bring to people living in the settlements would be able to access the unskilled workers being spread along the settlements affected by the construction of recruitment process pipeline right-of-way. In Turkey, the strategy the pipeline and associated facilities. » mechanisms to ensure that the recruitment to promote local employment worked across Commitments were subsequently made to procedure is transparent and that there is the project, with all contractors achieving optimize local employment and to ensure no discrimination compliance with overall employment targets, direct benefits to those living in settlements » procedures to monitor the compliance of although in some cases local employment in the immediate vicinity of pipeline the construction contractor with targets were difficult to achieve owing to the construction. In addition, it was hoped employment principles timing of recruitment coinciding with the control of the employment process by » mechanisms for preferential recruitment of peak agricultural period, resulting in a lower prioritizing local employment and local workers demand for jobs. discouraging informal immigration would » internal and external monitoring of the help minimize socio-cultural tensions and process to seek to ensure that the targets The levels of local employment have to date improve the relationship between the set out above were met. consistently exceeded the targets, most project and pipeline-affected communities. notably at Ceyhan Marine Terminal in Turkey. Three major objectives were identified. Objective 3: Enhance the local skills In Azerbaijan, the target for local base through training provided on the employment has been comfortably met, with Objective 1: Maximize local project. the percentage of local employees exceeding employment in skilled, semi-skilled 70% for the pipeline and 90% at the and unskilled categories during Commitments were also made to enhance facilities. In Georgia the percentage of local construction. the skills of national employees through the employees was above 70% for the pipeline Project Employee Training Plan (developed and always in excess of 60% at the facilities. In order to achieve this objective the by the contractors and approved by BTC). following approaches were taken: Training was also provided to all staff on » Targets for the percentage of national camp management rules and overall workers employed were specified in the discipline and cultural awareness. This contracts between BTC and the included a briefing on camp rules and a Source: BTC Environmental and Social Team. Contractors. For more information, go to www.caspiandevelopmentandexport.com Page Fifteen Non-Discrimination and Equal Opportunity Migrant Workers however, good practice urges treating migrant workers equally and fairly and without creating a situation of dependency. One particular area where discrimination is likely to occur is in relation to migrant workers. Migrants are Export Processing Zones (EPZ) are another area often stigmatized as being different and “foreign” where migrant workers are often at risk of ill Migrants are often and treated differently than national workers. It is treatment. The growing importance of such zones stigmatized as being not unusual to see labor legislation and workplace in global trade can further compound discriminatory different and rules which provide for preferential treatment and conditions that migrant workers face because in higher payment for workers of the national country many countries, EPZs are exempt from national “foreign” and then for migrant workers. Migrant workers often labor laws altogether or the enforcement of labor treated differently will not be given proper contracts, will have to live laws inside the zones is weak. in substandard accommodations, and will have than national inferior social security and other benefit In the case of higher-paid expatriate workers workers. entitlements. The same may apply to internal coming into a country, it may often be that their migrants, who have come from another region higher pay is justified by a combination of skill, within the same country. responsibility and ability. However, it may not always be prudent for a company to rely too Efforts to treat migrant workers on the same heavily on expensive expatriate workers, not just footing as other workers may be difficult and because it will give rise to feelings of discrimination, controversial. Although there may be practical but also because it may not be, in the long term, difficulties in affording migrant workers exactly the sustainable and cost-effective compared to training same terms and conditions as other workers, due local workers and developing national capacity. to relevant national legislation, collective bargaining Good practice companies operating in emerging agreements or other rules, it is good practice for markets often set specific targets for creating local employers to try to ensure that two workers doing employment opportunities, building local capacity the same job are not treated or paid differently through training, and advancing country nationals to merely because of arbitrary or discriminatory replace expatriates in management positions. (See criteria. This principle also applies to other benefits also Box on p. 15 on BTC Pipeline Building Local provided during the course of the contract by the Capacity and Creating Employment Opportunities.) employer such as housing, medical care and other support—which is often the case, for example, during the construction phase of infrastructure projects. Where there are sound, non- discriminatory business criteria for treating them differently, this is acceptable; as a general principle, Page Sixteen Good Practice Note | January 2006 | Number 5 Ethiopia: A Private Employment Agency’s Efforts to Protect Women Migrant Workers Under Ethiopian legislation on migrant labor passed Meskerem provides its staff with an ID card written in in 1998, private employment agencies and brokers Amharic (the Ethiopian official language) before they must register with the Government before sending leave for their destination. The card contains the Ethiopian agency staff to work abroad. Only those name of the employee, her file number with the The agency contacts workers able to produce a letter stating that they agency, the address and phone number of the have gone through the agency are issued exit visas agency in Ethiopia as well as the contact details for all its employees by the authorities. the agency's representative in Lebanon. It also contains information on Meskerem's 24-hour twice a month to The Meskerem Employment Agency is one such assistance service for Ethiopian staff in Lebanon: registered agency and is the only one licensed to whenever a migrant worker is in trouble, she needs check on their well- recruit Ethiopians for employment in Lebanon. The only to call and mention her file name and the Ethiopian workers employed by the agency work in people at the agency will identify her address and go being. domestic roles, and all are women. Above and to her. The agency has a van with a driver that is beyond its obligations under the law, Meskerem has available 24 hours a day. taken several proactive measures to better protect migrant women workers. Meskerem also keeps records of employees, and any concerned citizen can go to the agency's offices and Firstly, it has implemented a policy to recruit only look at the records to find out the whereabouts of the high school graduates, since it believes that its migrant workers sent through the agency. The record agency staff require a certain level of education to contains information on the file number of the assert their rights and to be able to write home to migrants, their full name and telephone number, their their families. (It should be noted, though, that passport number, their employer's full name and returnees in a focus group interview questioned the telephone number, their date of departure from their desirability of this measure, as they did not feel that country and their date of return to the country. women needed high school qualifications to work as domestic staff, and it was felt that this policy could, The agency contacts all its employees twice a month in fact, leave those without such qualifications at the to check on their well-being as well as to find out mercy of traffickers.) whether the employer is satisfied with their work. Where there are complaints or misgivings on either The agency also assists all migrant workers sent to side, the agency attempts to reconcile the differences. Lebanon in obtaining exit visas and checking the If reconciliation is not possible, the agency reliability of their prospective employers through its undertakes to return the migrant worker to Ethiopia. representative in Lebanon, irrespective of whether Where this means that the employee returns before they have themselves been recruited by the agency. her contract of employment has come to term, the Once the conditions of employment have been agency pays the migrant compensation of US confirmed, the agency provides non-Meskerem $1,500. If a migrant has been abused in her employees with the same training as it provides to its employment, the agency immediately takes her out of own staff. the abusive situation, pays her salary if the employer refuses to do so, and repatriates her. Meskerem then takes legal action against the employer. Source: E. Kebede, Ethiopia: An Assessment of the International Labour Migration Situation The Case of Female Labour Migrants (Geneva, ILO GENPROM Series on Women and Migration, 2002), pp. 22-36. Page Seventeen Non-Discrimination and Equal Opportunity HIV/AIDS become, infected with HIV or AIDS or are otherwise affected by the pandemic. A crucial issue for employers seeking to promote In order to address this issue, an official company equality of opportunity in emerging markets is the policy or policy statement is a useful tool that can question of how employees who are affected by serve a number of purposes, including: educating Companies have HIV and AIDS are treated. Given the stigma employees about HIV/AIDS including transmission often found that fear associated with the disease in many societies, and prevention; informing workers of their rights of discrimination or employees may be actively discriminated against as and responsibilities; making clear the commitment a result of their perceived HIV status. As a of management; setting forth the principles of zero harassment is the consequence, it is essential that both employees tolerance for discrimination and respect for the primary factor and managers understand how an organization confidentiality of HIV status; and, in certain cases, intends to deal with employees who either are, or protecting a company from liability. As well as being preventing employees from Heineken NV: Company Policy on HIV/AIDS Discrimination learning their HIV Companies have often found that fear of Basic principles of Heineken's HIV/AIDS non- discrimination or harassment is the primary factor discrimination policy: status. preventing employees from learning their HIV status and taking proactive steps to improve their health. » Heineken is firmly opposed to discrimination in general, including discrimination of employees with Companies which are active in regions with a high HIV, and will make every effort to ensure that incidence of infected employees—such as Heineken employees are not stigmatized. Their HIV status will NV, the Dutch brewer with operations in 160 not affect job security, terms of employment or any countries worldwide—have attempted to address the other elements of HR policy. They will be treated in fear of discrimination through policies that prohibit the same way as employees suffering from any discrimination against potential employment other chronic disease with regard to absenteeism, candidates based on HIV status and also assessment, transfer to a less demanding position discrimination against HIV-positive employees. or working environment. HIV status will not be a criterion in redundancy selection. These policies are often the result of broad » Given the nature and development of the disease consultation within the company and with external and its effect on business, Heineken focuses parties (such as unions, NGOs and international primarily on prevention and on health support for agencies), and as a means of successfully HIV and AIDS patients. implementing them, companies have made senior » Heineken will not oblige anyone to undergo an HIV managers, including Board members, responsible test or treatment, whether employees, potential for them. employees, their families, or third parties. » Personal medical information including a request Below is a summary of a company policy, for and the result of voluntary HIV tests, will be implemented by Heineken NV. Heineken is a treated in the strictest confidence. member of the Global Business Coalition on » Heineken will co-operate where possible with HIV/AIDS, and has had an HIV prevention program relevant organizations and institutions. Heineken in operation for over ten years in central Africa, with will do its utmost to allow local communities to regular reviews and updates by the General benefit from the spin-off of preventive activities Manager Group for the region. which Heineken organizes for its employees. Source: Global Business Coalition on HIV/AIDS, F&C Asset Management and UBS HIV/AIDS Beyond Africa: Managing the Financial Impacts Page Eighteen Good Practice Note | January 2006 | Number 5 readily accessible and visible in many locations, the One of the most controversial issues in this area is company HIV and AIDS policy should be whether an employer should screen potential or communicated to employees in a manner that explains existing employees for HIV. From a non- the significance of the policy's terms. Staff should feel discrimination standpoint, HIV status should not be confident that the company is dedicated to maintaining used as a basis for employment decisions. The ILO employee privacy and to taking reasonable steps to Code of Practice states that “HIV/AIDS screening From a non- safeguard the health of the workforce. Many should not be required of job applicants or persons employers also seek to develop programs that assist in employment.” Forced testing risks ethical, legal discrimination families and communities in coming to terms with the and reputational liabilities for the employer. From a standpoint, HIV devastating impacts that can be wrought by the business perspective, there are also a number of disease. (See also IFC’s Good Practice Note on practical reasons why such a measure is status should not be Addressing HIV/AIDS in the Workplace, December 2002, inappropriate and ineffective. First, the fluidity of the used as a basis for available at www.ifc.org/enviropublications) situation and the spread of the virus mean that an employment ILO Checklist for Planning and Implementing a Workplace Policy decisions. on HIV/AIDS Employers, workers and their organizations should » Committee assesses the impact of the HIV cooperate in a positive, caring manner to develop a epidemic on the workplace and the needs of policy on HIV/AIDS that responds to, and balances workers infected and affected by HIV/AIDS by the needs of, employers and workers. Backed by carrying out a confidential baseline study. commitment at the highest level, the policy should » Committee establishes what health and offer an example to the community in general of information services are already available both at how to manage HIV/AIDS. The core elements of this the workplace and in the local community. policy include information about HIV/AIDS and how » Committee formulates a draft policy; draft is it is transmitted; educational measures to enhance circulated for comment, then revised and adopted. understanding of personal risk and promote » Committee draws up a budget, seeking funds from enabling strategies; practical prevention measures outside the enterprise if necessary, and identifies which encourage and support behavioral change; existing resources in the local community. measures for the care and support of affected » Committee establishes a plan of action, with workers, whether it is they or a family member who timetable and lines of responsibility, to implement is living with HIV/AIDS; and the principle of zero policy. tolerance for any form of stigmatization or » Policy and plan of action are widely disseminated discrimination in the workplace. through, for example, notice boards, mailings, pay slip inserts, special meetings, induction courses, The following steps may be used as a checklist for training sessions. developing a policy and program: » Committee monitors the impact of the policy. » Committee regularly reviews the policy in the light » HIV/AIDS committee is set up with representatives of internal monitoring and external information of top management, supervisors, workers, trade about the virus and its workplace implications. unions, human resources department, training department, industrial relations unit, occupational Every step described above should be integrated into health unit, health and safety committee, and a comprehensive enterprise policy that is planned, persons living with AIDS, if they agree. implemented and monitored in a sustained and » Committee decides its terms of reference and ongoing manner. decision-making powers and responsibilities. » National laws and their implications for the Source: ILO Code of Practice on HIV/AIDS and the World enterprise are reviewed. of Work Page Nineteen Non-Discrimination and Equal Opportunity individual who is HIV negative on the day of the employment practices to identify where the biggest test, may not be so the day after the test. Second, risk of discrimination as well as the biggest an HIV-positive status does not necessarily have a opportunity to make a real difference exist. bearing on the employee's ability to continue in his Employers who are serious about promoting or her job. Furthermore, where the level of equality examine the effect of their existing practices infection has reached pandemic proportions, testing and develop revised policies and procedures to Some companies and rejecting HIV-positive applicants who are address gaps and shortcomings. They also actively seek to give otherwise qualified for the job may leave the recognize the need to raise awareness and to train marginalized groups employer with a very small potential labor pool. their managers and employees. In addition, some companies actively seek to give marginalized groups opportunities to A widespread AIDS pandemic also opens up a host opportunities to work in jobs in which they have work in jobs in which of issues around the ability of caregivers to support been underrepresented. their families and also earn a living, which they have been companies must consider if they are to be Eliminating Discrimination underrepresented. supportive and effective employers. The IFC Against AIDS program is aimed at improving Any company wanting to create a workplace understanding and developing tools to tackle issues environment in which discriminatory practices or concerning HIV/AIDS in both the workplace and behavior are not tolerated can take a number of the community. The program works with client good practice steps towards the achievement of companies to develop specifically tailored tools and this objective. For example: advice to address workforce and community- related concerns stemming from the disease. For » Institute company policies which make more information go to qualifications, skill and experience the basis http://www.ifc.org/ifcagainstaids for the recruitment, training, and advancement of staff at all levels. Clear and well-explained procedures have the effect of How Companies Can both minimizing the occurrence of discrimination Make a Difference and providing the employer with protections against any legal actions that could arise. As a general rule, addressing discrimination and » Assign responsibility for equal employment increasing diversity do not mean a company needs issues at a high level. to overhaul its workforce to employ certain groups » Raise awareness and train staff within the in certain numbers to reflect the overall gender or company. All staff, but managers and supervisory ethnic makeup of society. At a minimum, staff in particular, should have an understanding companies need to be aware of and respect all of the different types of discrimination and how it relevant local and national laws pertaining to non- can affect the workforce. discrimination in the country of operation. Next, a » Promote transparency and consistency. There company should review its policies and are many situations when an employer will Page Twenty Good Practice Note | January 2006 | Number 5 differentiate between employees on perfectly » Provide access to skills development training to acceptable grounds such as performance, ability, all employees where relevant. or market requirements. However, managers » Avoid systematic applications of job must be able to explain the reasons why one requirements that would disadvantage certain member of staff was treated a certain way, not groups. Work on a case-by-case basis to evaluate only to protect against discrimination but also to whether certain requirements are necessary for It is important that a make sure they are making the right decisions and the job. preserving good employee relations. » Keep up-to-date records on recruitment, diversity strategy be » Link advancement of supervisory staff to training and promotion. To be useful, such a part of the overall performance in this area. Managers should be records should provide a way to track able to demonstrate adherence to company opportunities available to employees and their corporate vision and policies and procedures on non-discrimination progression within the organization. not an optional extra. and equal employment in their area of operation. Establishing a Diversity Strategy: Key Components Ensure diversity as part of the overall core important to remember that inclusion is better than strategy for the organization. It is important that a exclusion. Find a way for willing individuals to diversity strategy be a part of the overall corporate participate. Encourage a broad base of participation. vision and not an optional extra. Communication. Information regarding the Top management commitment. Support for progress and purpose of a diversity strategy should diversity initiatives at all levels of the organization is be spread throughout the organization. Further, important, but senior-level support is critical. seeking feedback from employees is an important way of developing the strategy and heading off any Auditing and assessment of needs. Determine the discontent. Diversity training and education are needs of your organization in the area of diversity. critical for the success of initiatives. Merely taking an “off the shelf” program will only lead to the development of a plan and targets that Individual understanding. While it is important to are inappropriate to the business and as a result are create plans for the overall organization, individuals less likely to be achieved. need to understand their specific role in the success of the strategy. As part of this process, try to set Clarity of objectives. A strategy to promote appropriate goals for managers. diversity should be based on clear, quantifiable objectives within defined time scales. Look to Diversity champions. One measure of success is develop indicators for the various aspects of the plan the number of individuals who have seamlessly and regularly check progress. integrated the goals of the diversity strategy into the work plan for their own departments/divisions. As Promotion of accountability. Transparent and fully these “champions” emerge, the success of the understood processes on diversity will lead to a more diversity strategy stabilizes and grows. successful outcome, and will also help to avoid any misunderstandings or feeling that there is more Evaluation. Any workplace change initiative should favorable treatment of one group. be evaluated with reference to the vision, objectives and indicators established at the start of the process. Establishment of a diversity team. There should The same goes for a diversity strategy. be more than one or two staff members, but too many members can be counterproductive. It is Page Twenty-one Non-Discrimination and Equal Opportunity » Develop grievance procedures to address Promoting Equal Opportunity complaints, handle appeals, and provide recourse for employees. Be aware of formal As a matter of good practice, companies should structures and informal cultural issues that can develop and promote an equal opportunity policy, prevent employees from raising concerns and both in terms of hiring and on the job. This means grievances. that once hired, individuals are accorded equal Any company » Accommodate disability. Provide staff training opportunities to develop the knowledge, skills and introducing on disability awareness and reasonably adjust the competence that are relevant to their job. Any measures to physical environment to ensure health and safety company introducing measures to promote for employees, customers and other visitors equality needs to be aware of the diversities of promote equality with disabilities. language, culture, and family circumstance that may needs to be aware of » Work with trade unions. Reach agreements to exist in the workforce. promote equality and non-discrimination. the diversities of Some socially responsible companies seek to go a language, culture, Monitoring Diversity in the Workforce step further, sponsoring outreach programs with and family those members of the community who have been In order to determine whether discrimination exists historically discriminated against in order to circumstance that or whether any remedial measures that have been enhance their ability to take up meaningful may exist in the adopted are having any effect, businesses should employment. While positive discrimination or consider monitoring the composition of the affirmative action programs can be controversial workforce. workforce and how this changes over time. So, for (and in some countries unlawful) the kinds of example, an employer who wants to improve the capacity building and other helpful actions representation of minorities within its workforce undertaken by companies featured in this Note can may consider monitoring the ethnic origin not only lead to real results and have genuine benefits for of those individuals who are actually appointed, but the businesses concerned. also those who applied for work with the employer. Similarly, a company that has Outside the workplace, companies can also play a implemented a management training program for role in promoting opportunity. They may support women should monitor whether the proportion of community efforts to foster a climate of tolerance women within management grades increases over and equal access to occupational development time. opportunities. This could take the form of sponsorship of awareness campaigns, adult Monitoring of this nature should be carried out on education programs, or child care services, for the basis of anonymity, and the data arising from it example. Companies may need to accommodate should be kept separate from personnel records. cultural traditions and engage worker representatives and government authorities to improve equal access to employment by women and minorities. Page Twenty-two Good Practice Note | January 2006 | Number 5 Promoting Women's Employment in Mining Programa Mujer is an innovative example of the concept of hiring women with no experience. the women's determination meant that they how to break with tradition that excludes women The recruitment ads generated a flood of gained acceptance among their workmates from mining operations. The program was an responses. The company received 936 by demonstrating that their technical initiative of IFC client Minera Escondida, the applications from women with no prior work was safe, of a high quality and world's largest copper-producing mining experience, of whom 238 were invited to productivity. The workforce of Minera Escondida company, located in the Atacama Desert in the participate in the recruitment process. The became more inclusive, and the women's north of Chile. It was supported by Chile's applicants came from a variety of backgrounds; presence generated a positive impact on Ministry for Women's Affairs. teachers, secretaries, train operators, security workplace attitudes and behaviors. Early results guards and fork-lift truck operators. indicated that high productivity rates and In light of the high unemployment rate for attention to maintenance detail made this a women in Chile and the company's role in the The applicants underwent a series of evaluations sound business decision as well as the right local economy and as a job creation source, it and a rigorous 3-month-long selection process. thing to do. was important for Minera Escondida to take The final group of applicants attended a 3- special steps to include women in its labor force. month training period that included technical, The project generated excellent PR for the mechanical and practical matters as well as a company, challenging the notion of workplace Programa Mujer marked the company's first focus on safety and corporate values. The next stereotypes. The women were able to gain the attempt to integrate women into the operation of step was a training and evaluation period during respect and recognition of their co-workers, heavy mining equipment since production which the women operated equipment at the challenging the belief that only men can started in 1990. The name and image of Minera Escondida Norte Mine. The women who were perform heavy equipment operations. Escondida were used country-wide to promote hired on a permanent basis are today part of the and disseminate the emerging role that women mine operations team, operating 360-ton haul Source: “Promoting Gender Equality in the Private are playing in the Chilean mining industry. After trucks, graders, and 90-ton water trucks. While it Sector - Hiring Women in Mining Production Jobs.” recruiting a small number of women with existing was not easy to integrate women into shifts IFC (2005). www.ifc.org/ifcext/enviro.nsf/content/GEM experience, Escondida management approved where only men had worked previously, “Going Beyond”: Women’s Empowerment Program in Sri Lanka and India MAS Holdings launched a women's Recognizing the importance of English language As a result, 14 inspiring women have been empowerment program in November 2003 skills, MAS subsidiary MAS Intimate Fashions, identified and rewarded as “Empowered entitled Go Beyond, focusing on women both at located in Chennai, India, has introduced Women” who have battled and overcome MAS' apparel manufacturing units and within the English-language instruction to its employees, many challenges, both personal and rural communities in which they operate. regardless of whether English was directly professional. These women serve as applicable to their present positions. spokespersons for empowered women within Over 90% of the employees at MAS' apparel their respective work units. Many of them manufacturing plants are women. A large In 2004 an MAS Go Beyond “Empowered began within the apparel industry at the majority of these women are from predominantly Woman of the Year” competition was launched bottom-most rung as Helpers or Machine rural backgrounds, and while some may have group-wide. The only requirements for applying Operators, and have over a period of years high levels of literacy, many would have had were that the lady be an MAS employee for at risen into responsible posts such as Assistant limited access to enhance their education and least one year and that she be nominated by a Production Managers and Quality Executives. skillbase. peer/supervisor. Their stories also have the power to inspire The program has four main areas of A panel of six judges comprising four members women at a macro level. As such, these concentration: Training for Career Development; of the MAS Corporate Social Responsibility winners' life stories are being published in a Rewarding Excellence; Initiatives on Work-Life Advisory Committee, the National Coordinator monthly national newsletter (entitled “Women Balance; and Rewarding Excellence of Women in of the ILO-International Program to Eliminate @ Work”). the Communities. Child Labor (ILO-IPEC) and the Strategic Director of a Local Advertising Company did the final Source: MAS Holdings, UN Global Compact round of judging. Fourteen winners representing 14 business units were chosen. Page Twenty-three Non-Discrimination and Equal Opportunity Acknowledgments “Non-Discrimination and Equal Good Practice Publications available at Useful References Opportunity” marks the fifth in a series of Good Practice Notes prepared by the www.ifc.org/enviropublications International Labor Organization www.ilo.org Environment and Social Development UN Global Compact Department of the International Finance GOOD PRACTICE NOTE: Managing www.unglobalcompact.org Corporation. The work was carried out Retrenchment (August 2005) under the direction of Rachel Kyte Provides guidance to IFC clients and the Business for Social Responsibility (Director) and managed and edited by wider private sector operating in emerging www.bsr.org Debra Sequeira (Senior Social markets on how to plan and manage the Development Specialist). Steve Gibbons process of retrenchment where (Director, Labor Rights) and Alastair Usher significant job losses are anticipated. Ethical Trading Initiative This Good Practice Note helps http://www.ethicaltrade.org/Z/resrcs/subj/ (Research Director) of Ergon Associates companies think through the 7-discr/index.shtml#more were the Note's principal authors. Design key issues, avoid common and layout were done by Vanessa Manuel. pitfalls and learn from the ILO - Business and Decent Work: experiences of other companies Non-discrimination Facts & Figures The team would like to thank the following to design a comprehensive people who provided valuable comments http://www.ilo.org/public/english/comp/ Retrenchment Plan. on earlier drafts: Rachel Kyte, Bruce Moats, business/info/discrim.htm 28 pages | ©2005 IFC | Richard Caines, Motoko Aizawa, Free to download Margaret Wachenfeld, Sandra Polaski ILO Global Report: Time for Equality at (Carnegie Endowment), Amanda Ellis, GOOD PRACTICE NOTE: Work Sabine Durier, Armand Pereira (ILO) Addressing the Social http://www.ilo.org/dyn/declaris/ and the ILO Headquarters (Geneva). Dimensions of Private Sector DECLARATIONWEB.GLOBALREPORT Projects (December 2003) DETAILS?var_language=EN&var_Publications We are grateful to those who participated A practicioner's guide to undertaking ID=116&var_ReportType=Report# in the peer review and public comment social impact assessment at the process including: Louise Gardiner, William project level for IFC-financed Good Practices in the Workplace - The Bulmer, Patricia Miller, Josefina Cutura, projects. This Good Practice Note has Business Case for Diversity been written by IFC social http://www.conference-board.org/ Ted Pollett, Larissa Luy, Josefina Doumbia, development specialists based on years pdf_free/goodPracticeWorkplaceDiversity.pdf Christopher Frankel, Ajay Narayan, and of private sector experience across Martin Lednor (BTC). Thanks are also due industry sectors and regions. It covers issues from scoping and baseline data collection to Business & Diversity - Helping Business to Barbara Zhang, Rashanikka Hayley and impact analysis, mitigation and monitoring of social impacts. Social assessment is presented Giulio Quaggioto for their help in Score Higher in Managing Diversity as both an integral part of IFC's environmental assessment process and as a tool for promotion and dissemination. http://www.csreurope.org/uploadstore/cms/ identifying value-adding opportunities that go beyond traditional mitigation measures to promote sustainable development on a broader scale. docs/CSRE_pub_diversityDec2002.pdf 28 pages | ©2003 IFC | Free to download IFC Gender Entrepreneurship Markets - GOOD PRACTICE NOTE: HIV/AIDS in the Workplace (December 2002) QuickNotes An introduction to the issue of HIV/AIDS in a business context. This Good Practice Note http://www.ifc.org/ifcext/enviro.nsf/Content/ looks at the impact of the epidemic on the private sector, assesses the costs to companies, GEM-QuickNotes and provides a menu of program options from awareness raising and policy development to prevention, care and treatment programs for businesses interested in implementing IFC Against AIDS HIV/AIDS initiatives to support their employees and the communities in which they work www.ifc.org/ifcagainstaids and live. 24 pages | ©2002 IFC | Free to download UNAIDS www.unaids.org/en/in+focus/hiv_aids_human_ For more information, please contact: GOOD PRACTICE NOTE: Addressing Child Labor in the Workplace and rights/unaids+activities+hr.asp International Finance Corporation Supply Chain (June 2002) Environment and Social Development This Good Practice Note offers a unique private sector perspective on the topic of harmful ILO Code of Practice on HIV/AIDS and the Department child labor. It seeks to share corporate learning and experiences by providing companies World of Work with a range of basic, good practice approaches that other businesses have successfully 2121 Pennsylvania Avenue, NW http://www.ilocarib.org.tt/infsources/general_ applied in managing risks associated with child labor in their own workplaces and those of Washington, D.C. 20433 reports/aids/cop_aids.pdf their vendors and suppliers. USA 20 pages | ©2002 IFC | Free to download Disclaimer The purpose of the Good Practice Note series is to share information about private sector approaches for addressing a range of environmental and social issues. This Good Practice Note provides guidance and examples of basic good practice approaches that businesses have successfully applied in their operations. IFC has not financed all the projects or companies mentioned in the Good Practice Note. Some of the information in the Note comes from publicly available sources such as company websites. IFC has not verified the accuracy of such information nor the companies' practices. This Good Practice Note does not represent a commitment by IFC to require projects it finances to take certain or all of the actions specified in the Good Practice Note. Instead, any issues arising in an IFC-financed project will be evaluated and addressed in the context of the particular circumstances of the project. Page Twenty-four