For more information about SA8000:2014 contact Senior Manager of Research and Stakeholder Engagement - AKatz@sa-intl.org

Understanding CSR

Sanjiv: Businesses now realize that audit results are diagnostic tools that may highlight major underlying concerns that need to be addressed. Audit findings play an important part in identifying where a company does not meet the requirement of a standard, a code of conduct or local law and establishing a baseline to measure progress. To make true changes that are sustainable, companies often delve deep into their organization structures to identify weaknesses in resources. Often these resources are related to training, appointing personnel that understand the relationship between business and human rights, and developing a self regulating system that check and balance periodically. Companies that have shown significant changes are those that have top management commitment - this is really the key.

Sustainable CSR through Management Systems

During your presentation, you emphasized how having an effective management system is key in ensuring a sustainable social compliance program. What types of management systems are companies developing to integrate CSR into their operations and what do you suggest is best practice?

Sanjiv: In the ISO system there are several management systems that require companies to adhere to a set of internationally acclaimed standards. Quality management systems (ISO 9001) and environmental management systems (ISO 14001) are two examples. With SA8000, companies have the opportunity to adopt a social accountability management system that deals with labor standards and human rights. Many businesses have adopted the SA8000 standard, which goes beyond the 8 Core Conventions of the ILO or the particular conventions that any one country has ratified and converted to legislation in the form of local labor law.  The SA8000 standard also addresses key UN Declarations and Covenants such as those involving:

• economic, social and cultural rights;
• civil and political rights;
• the rights of the child;
• elimination of all forms of discrimination against women;
• and elimination of all forms of racial discrimination. 

A CEO was once asked what business he was in and he said he was in the business of making money. While this is true, companies now realize they need to conduct business in an environment that respects workers and their rights.
 

SAI Lead Trainer Sanjiv Singh Second from Left

 Benefits of CSR

Implementing CSR used to be thought of as costly and time-consuming but this stigma is quickly changing due to its proven benefits, such as increased profits in the long run. What are some of the other advantages of implementing CSR in a business?

Sanjiv: There's a saying by Warren Buffet that somewhat applies here. He states, "price is what you pay, value is what you get".

The advantages of adopting and implementing CSR in a business can be several. Good labor standards improve employee engagement, they reduce employee turnover which thereby reduces cost of recruitment that can be significant. Reduced employee turnover also reduces training cost. Having sustainable CSR attracts the best talent, and there is a direct correlation between good labor practices and productivity. I am aware of factories in Bangladesh that pay a living wage, train not just employees but also supervisors in better methods of managing production workers, provide a free meal during working hours, free uniforms, and give employees the option of contributing to a saving fund into which the business also contributes. This sort of scenario go beyond the demands of local labour laws. And in return for going further in protecting workers,  these factories are almost never affected by strikes or lockouts commonplace in Bangladesh. Employee turnover in these types of factories that I have seen is below 2 percent, as employees stay when they are happy. This is an example of deriving real benefit from sustainable labor practices. Good companies do things differently.

Implementing CSR

What advice do you have for companies in the preliminary stages of adopting good labor practices?

Sanjiv: Companies should seek an international benchmark that they wish to be measured against. One way of doing this is by getting certified to SA8000, which involves a cost that can sometimes be a deterrent. SAI's Social Fingerprint system is a less expensive way for companies that might want to measure and improve labor practices before taking the leap toward certification, to get started.  The system generates a score when companies undertake an online self-assessment. The self-assessment is followed up by a physical visit by an assessor to the workplace or a remote interview and document check to understand the internal policies and procedures within a company. Although the Social Fingerprint system provides suggestions to the company in ways to develop policies, procedures and work rules, the company can develop its own alternate means for demonstrating compliance based on local practices and culture.

Antea Cement, a subsidiary of Titan Cement of Greece, took a leadership step as the first company in Albania to pursue SA8000 certification in 2014. The certification of the company's newest plant in Albania is a reflection of their commitment to be a role model in demonstrating the best practice in environmental protection, health and safety, and sustainable development. Over the past decade, we have seen how acting as a socially responsible company has led to many benefits, including increased efficiency and worker satisfaction. Antea Cement has set the standard not only for companies in Albania but also for cement manufacturing companies globally in the realm of labor rights. SAI interviewed Saka Teuta, CSR Administration Officer, to learn more about Antea Cement and the company's experience with getting SA8000 certified.

Q: Tell us a little about the background of Antea Cement.

A: Headquartered in Greece and with 110 years of industry experience, TITAN Group owns cement plants in nine countries and aims to grow combining an entrepreneurial spirit and operational excellence with respect for people, society, and the environment. In 2010, TITAN Group, along with the International Finance Corporation (IFC), member of the World Bank Group, and the European Bank for Reconstruction and Development (EBRD) collaborated in the biggest Greenfield investment in Albania with a total value exceeding € 200 Million ($250 Million) to create Antea Cement SH.A.

The project had been praised throughout its construction and operation by international institutions, such as the World Business Council for Sustainable Development, as setting the highest standards in the heavy industry, especially in the sectors of the protection of the environment and of the advancement of the basic human rights for workers, thus paving the way for Albania to attract quality investments.

The company is highly recognized for its performance and genuine commitment to Corporate Social Responsibility. It has adopted the principles of sustainability in its daily operations, through Integrated Management Systems (BS OHSAS 18001, ISO 9000 & ISO 14001), through joining as a founding member of the national CSR Network and a key driving force in disseminating similar practices on a national level, and being the first, and only, business in Albania certified for its work standards by the SA8000.

Q: What were your main motivations in deciding to pursue SA8000 certification?

A: ANTEA Cement, as part of TITAN Group, has the same principles and guiding values with its mother company. The Group is voluntarily committed to Corporate Social Responsibility and Sustainability principles and has embedded them into its operations. We firmly believe as a company that this kind of operations is not only an ethical issue but also a good way for doing business.

ANTEA Cement has been an example of best practice since its construction during which all the employees working conditions and human rights were fully respected, and there was no accident during the whole process. ANTEA Cement was praised by IFC as best practice for working and labor conditions according to Performance Standard 2 of IFC (The Performance Standards are the requirements of IFC's on Environmental and Social Sustainability for new investments).

Compared with other companies in Albania, ANTEA Cement is among the few which has had in place an Integrated Management System comprising Health& Safety Management System (OHSAS 18001), Environment Management System (ISO 14001) and Quality Management System (ISO 9001). The inclusion of SA8000 in the Integrated Management System of ANTEA Cement was seen as a prerequisite by our shareholders for a multinational company respecting in practice its employees' human and working rights in a country where many companies have issues in complying to internationally set human rights regulations and standards. Therefore, ANTEA Cement accepted willingly the responsibility of raising the standards in the area of human rights in Albania by means of the certification.

Q: What are some of the positive changes you have seen since in the facility becoming a SA8000 certified?

A: ANTEA has tried to make the right steps in every field from the beginning, but of course improvement is a continuous effort of all in the company. So by achieving the SA8000 certification, we saw positive changes in the perception of employees towards topics related to H&S and Environment, as well as increased awareness of our employees, contractors and also local communities accomplished through continuous training.

Our absenteeism rate is low only due to the fact that Antea offers to people the safe, healthy and stable working environment they are looking for.

Another positive change we have noticed is the involvement of our employees in suggesting ideas and making their comments for any issue, and this because they have their own representative who is present in every management meeting of the system and member of the Social Accountability Board that is conducted by the company's managers.

Q: What were some of the difficulties your company faced when trying to achieve compliance and how did you resolve them?

A: Our biggest difficulty was to achieve compliance with SA8000 by our contractors.

ANTEA Cement's personnel is generally new and absorbs and works with every new procedure set by the company. But, trying to introduce something new to personnel with more experience, like our contractors, was and still is the difficult part of the standard. In some of the cases, new requirements are translated to additional cost. So we are in continuous and close cooperation with our contractors by consulting, training, and monitoring to ensure their compliance with the standard because ANTEA Cement cares not only for providing a good working environment for its own employees, but for anyone that works with us.

ANTEA aims to set the standards of being the best employer in heavy industry.

Q: What are some of the biggest challenges of social compliance in the cement manufacturing industry?

A: The challenges that a cement plant faces are both social and environmental. Nevertheless the country's legislation needs to take a bigger role in order to safeguard these challenges in all industries and companies in Albania.

In general, the biggest challenges of social compliance in industries include:  failure of declaration of employees for the social and health contributions, excessive overtime, payment of overtime not at a premium rate, low standard of local suppliers and contractors, and no clear procedures during termination of employment. The Albanian government is taking the measures to assure that all the industrial companies are more sensitive toward respecting employees' human and working rights.  Also, ANTEA Cement has put an effort in order to change the most common perception in Albania that only men can be employed in a cement industry, by giving equal opportunities to female engineers to become a part of our team.

Q: Where does most of your workforce come from?

A: At this moment, ANTEA Cement has 200 direct employees. 43% of them come from the communities around our plant and the rest from other areas of the country. A very small percentage of our employees are expatriates, which are highly specialized professionals in positions our local personnel were not ready to fill at the time we constructed the plant.

ANTEA Cement has opened a Technical School where youngsters from local community can be trained for technical skills in order for them to allow more potential for employment. Regarding direct employees, a training procedure is in place which gives our employees opportunities for professional development on respective areas of expertise.

Q: What was the general feedback from workers after the facility was SA8000 certified? Did you see an improvement in general worker satisfaction?

A: Our main employees' feedback was that they feel very proud working for a company which sets as one of its main priorities the advancement of the human rights at work, and the protection of the basic human rights of workers through following the highest international standards.

Their enthusiasm was also evident through the increase of their active participation to many voluntary company's social responsibility initiatives and activities, like for example those addressed to the local community (eg. cleaning of some areas, blood donation, etc.)

We focus on enhancing the health and safety culture, as well as the culture of operating with respect to the people, society and environment within our company and advance our employees' knowledge in ways that it will help them transfer these values to their families and surroundings.

That's what SA8000 standards scope is, to create quality employment and help people develop.

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