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Dilemmas: You are a Hydro manager, going abroad to work at a recently acquired business unit. On arrival, you find that the employees work much longer hours than is allowed in the Hydro policy. You present the policy, and demand regular working hours. Many employees quit, because they are used to working long days in order to better support their families. They are not familiar with the concept of leisure time. What do you do? Hydro acquires a production plant that has traditionally employed several children between 12 and 16 years of age. Their main tasks are packing products and sweeping floors. The children’s income is important for their families, and in some families this is the only income as the parents are out of work and the other children are even younger. Even if these children were taken out of work, the possibility of them attending school is very limited, at least in the near future. When Hydro takes over the plant, Norwegian NGOs become interested and want information. How do you handle this situation? Local management at the same plant strongly advises against the employees joining a union. The reason they give is that the unions in this country are very militant and do not promote the real interests of the employees. Hydro consults the Norwegian Confederation of Trade Unions (LO), which says that they have a good impression of the central union in this country, and that they have been advising them for many years. 13 They ask Hydro to let the unions introduce themselves to the employees, so that they can evaluate their options freely. When this is brought up with the local management, it becomes clear that their real reason for discouraging union membership is the risk of higher costs through increased wages and benefits. They claim that this may turn the plant’s small profit into a loss, which could again lead to plant closure and job losses. Hydro’s accountant confirms that this could be the case. LO wants to know the outcome of the discussion. How do you deal with this?
14 Contribute to Sustainability Why? Sustainability comprises both the economic, environmental and societal dimension of business. In this document, we focus on the social dimension. Today companies find they are in a dilemma, caught between investor demands for short-term profits and society’s general expectations of a responsible and long-term approach. Foresight should be a virtue in all of Hydro’s business thinking, and the challenge is to be able to strike a mindful and constructive balance between short-term and long-term interests. Sustainability is needed for a favourable long-term business climate. Hydro has always been aware that constructive relations to local communities benefit both the local population and the company’s own operations. Social investment projects Hydro cooperates with local communities in various ways with a view to contributing to sustainability, and has a wide range of social investment projects. Hydro aims to make these projects independent in a way that secures their viability also without the company’s support. Social investments that add to Hydro’s competitive advantage are to be preferred, and they should be in line with our business strategy. There are many types of social investments: charitable donations, community projects, voluntary engagements, etc. Rather than giving random philanthropic contributions, the investments chosen should have the best possible effect, both for our business and for society. In some cases this means making charitable donations, in others it means running a long-term project. In most cases, the best choice is a mix of social investment types directed towards the same end. The amounts used on social projects should reflect the local business’s financial situation and its strategy. Contributions can take many forms, and do not necessarily have to involve huge investments.
Page 1 and 2: Designed and produced by: Hydro Med
Page 4 and 5: Dear Hydro Colleague Our Hydro cult
Page 6 and 7: Introduction Invitation to a Dialog
Page 8 and 9: "This publication is another step t
Page 10 and 11: This chapter gives an outline of th
Page 12 and 13: “Hydro supports the principles se
Page 16 and 17: “Through developing profitable bu
Page 18 and 19: Dilemmas: Hydro is about to establi
Page 20 and 21: “Hydro will not discriminate on t
Page 22 and 23: Dilemmas: In some Muslim countries,
Page 24 and 25: “We are prepared to enter into an
Page 26 and 27: “Hydro shall maintain high standa
Page 28 and 29: Dilemmas: Looking for business oppo
Page 30 and 31: Corporate social responsibility cal
Page 33 and 34: 32 CSR in the business planning pro
Page 35 and 36: 34 Development of social knowledge
Page 37: 36 The Hydro experience in Utkal, I
Page 40 and 41: It is important to obtain social kn
Page 42 and 43: Suggested approach 1. Make a strate
Page 44: CSR and Business Relations Companie
Page 47 and 48: 46 CSR in Strategy, Business Planni
Page 49 and 50: 48 Resources The Hydro Social Respo
Page 51 and 52: 50 Appendix 1 Hydro’s Social Resp
Page 53 and 54: 52 Appendix 2 Hydro's Code of Condu
Page 55 and 56: 54 Appendix 2 Hydro's Code of Condu

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