Fairness in the workplace
Implement UN guiding principles on business and human rights
Our Code of Business Principles upholds the principle of equal human rights and sets the standards of inclusive behaviour at our workplaces. This is promoted in three ways:
- By upholding values and standards across operations.
- By supporting our relationships, while reinforcing the principles of Human Rights and Labour rights for all our suppliers.
- By working through external initiatives.
Aligned with the International Labour Organization’s (ILO) principles, all sites in Hindustan Unilever are under Collective Bargaining Agreements. We also implement the UN Guiding Principles on Business and Human Rights throughout our operations. Our suppliers have adopted practices that are consistent with the Understanding the Responsible Sourcing Audit Guide for Suppliers (USRA), which is also available on our website.
Our Code not only ensures that we conduct our operations with honesty, integrity and openness, but also supports our approach to governance and corporate responsibility.
Sourcing 100% of procurement spend in line with our RSP
Our suppliers are expected to uphold the standards set by our Responsible Sourcing Policy (RSP) on human and labour rights. We continually strive to find solutions and extend our support to suppliers that have identified issues which affect workers’ human and labour rights. On our part, we have set in place due diligence procedures to identify human rights and risks, not only in the supply chain, but also for third-party audits.
Our Responsible Sourcing Policy sets mandatory requirements on human and labour rights for suppliers in business relationships with HUL. Unilever remains committed to sourcing 100% of its procurement spend in line with the policy. We continue to engage with all our suppliers to progressively work towards achieving best-in-class practices.
Creating framework for fair compensation
Our framework for fair compensation, a core element of the Unilever Sustainable Living Plan (USLP), ensures that compensation is fair and all our HUL factories and offices are covered by Collective Bargaining Agreements (CBA). Our supply chain units have already been paying wages that are well above the statutory minimum wages, as prescribed by law.
At HUL, we believe that fair compensation also means taking into account the costs incurred by our employees, outside the workplace. The Variable Dearness Allowance (VDA) that is linked to the Cost Price Index (CPI), takes inflation into consideration and compensates for any increase in commodity prices and standard of living.
Additionally, we are committed to moving from ‘Fair Wage’ to ‘Fair Living Wage’, aiding employees for their higher education, children’s education, and housing facilities. Our framework ensures that compensation not only adheres to the CBAs, but by continually reviewing the average pay between genders, it is also at par with the external industry benchmarks.
Improve employee health, nutrition and well-being
Our core responsibility is not just to help enhance our employee’s physical and mental health, but also, to encourage people everywhere to look after their holistic health.
Lamplighter is a core part of our Well-being Framework. It includes guidance on managing long-term health conditions, such as diabetes, HIV or musculoskeletal concerns. As part of the programme, employees are assigned colour codes based on their health check-up where green signifies good health, amber denotes the need for the improvement and red alarms the need for tracking major health improvement. In 2019, we have significantly reduced the number of employees in the red zone (needing major health improvement) from 5.7% to 5.5%, with 84% participation.
To address physical well-being, we have been using latest technology to measure and track targeted individual health improvement plans, in addition to running several programs for habit change.
India was the first Unilever country to launch the Line Manager Mental Health (LMMH) ‘Survive to Thrive’ module. This tackles workplace stress by addressing the mental well-being of our employees and provides face-to-face as well as tele-counselling to employees and their families through the ‘ReachOut’ helpline.
With the aim of encouraging employees to ‘Make Time to Talk’ and embrace #Selfcare, our wellbeing initiatives have touched over 13,000 employees via engaging events and expert talks across all our factories and offices. To further support our employees’ physical and mental wellbeing, International Yoga Day 2019 was celebrated across locations.
Reduce workplace injuries and accidents
Building a safer business requires a substantial commitment to safety at work.
Our vision is to become an injury-free organisation i.e. zero: fatalities, injuries, motor vehicle incidents, process incidents and zero-tolerance for unsafe workplace behaviour and practices. As compared to the 2008 baseline for accidents, our Total Recordable Frequency Rate (TRFR) has reduced by 87% in 2019 across all factories and offices.