Hydro is a Fortune 500 energy and aluminium supplier operating in ...

More documents

Recommendations

Info

“We are prepared to enter into an open dialogue with relevant stakeholders to ensure that our activities are properly adapted to meet local conditions and generate positive benefits both for the company and the community. We shall give attention to initiatives and input which serve to improve our social responsibility standards and practices.” HYDRO’S SOCIAL RESPONSIBILITY DIRECTIVE Dialogue vital in restructuring processes Hydro is exposed to strong competition in global markets and has to continuously adapt to change. This can make it necessary to restructure operations, which can be a painful process involving plant closures and reduction of manpower. An open and constructive dialogue before and during such processes has always proved valuable. There may be different opinions about the need to downsize, but once the decision is taken, we have found that management and employee representatives have been able to work together to find the best solutions. The alternative is labour unrest and strikes, which both parties regard as less favourable. Dialogue has made it possible to find effective ways of providing new jobs and developing widely accepted social plans. It has also brought to light the importance of training and skills development, not only for the employees’ present jobs, but also for their general employability. In change processes, a good dialogue between the company and the local community is also important to promote understanding of the reasons 23 for the change and an open discussion on how to limit negative effects in the community. We have gained experience from several restructuring cases in recent years, such as the closures and manning reductions in connection with the downsizing of Hydro's former fertilizer operations in several European countries. The importance of a constructive dialogue was also demonstrated when the magnesium plant at Porsgrunn, Norway, was closed down. The closure proved to have a much more limited effect on the employees and the community than originally forecasted. A similar dialogue is currently being held in connection with the reduction of activities at some of Hydro's aluminium plants on the west coast of Norway, where old technology that is unable to meet the new, more stringent environmental requirements is being phased out. Positive social dialogue and responsible restructuring are key issues also for the European Commission in its ongoing development of the CSR approach in the European Union.
24 Integrity Why? Corruption leads to poor utilization of resources. It is a major barrier to economic and social development, and poses a serious risk to the sustainability of business, undermining both reputation and shareholder value. Corruption is costly; business opportunities can be lost due to contracts being awarded, not on the basis of price and quality, but to those who pay the highest bribes. Focus on integrity and transparency is expected to increase in the coming years, and Hydro wants to be at the forefront in relation to legislation as well as general developments. An important document in this connection is the OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions. It has been signed by 29 OECD countries, including Norway, and has been integrated in Norwegian legislation. As stringent domestic and international legal frameworks are drawn up, companies will increasingly be exposed to tough sanctions if they do not comply with the convention. Facilitation payments Facilitation or “grease” payments” are minor payments made to secure or expedite the performance of a routine or action to which the payer has legal or other entitlement. Examples are paying a few dollars to get goods through customs or to unload a shipment within reasonable time. In principle, facilitation payments are as bad as any other form of corruption, and they pose a serious threat both to the conduct of business, and the process of building sound structures in societies that are undermined by corruption. Hydro works to identify and eliminate facilitation payments, in accordance with the recommendations from Transparency International.
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 14 and 15: Dilemmas: You are a Hydro manager,
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 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

Hydro is a Fortune 500 energy and aluminium supplier operating in ...

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?