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BRITISH AMERICAN <strong>TO</strong>BACCO OPERATIONS IN ZIMBABWE<br />
<strong>REPORT</strong> <strong>TO</strong> <strong>SOCIETY</strong> 2002 – 200<br />
3
OUR VALUES<br />
Values describe what we believe as a company – they describe our personality and<br />
culture. They define how we will win competitive advantage through how we do things.<br />
They describe how our company will be stronger than the sum of its parts.<br />
ACHIEVEMENTS<br />
• Vision: “We understand what each of us has to do to help achieve our vision”<br />
• Map: “We believe in our plans”<br />
• Consumer Focus: “We live for our consumer”<br />
COMMITMENT<br />
• Confidence: “We expect to win”<br />
• Standards: “We keep raising our standards”<br />
• Drive: “We take responsibility. We ‘dare to try’ and we prize innovation and initiative”<br />
TRUST<br />
• Teamwork: “We have trust in each other and we are in this together”<br />
• Support: “We learn from each other and we share ideas, information and experience”<br />
• Belonging: “We are proud of what we do”<br />
www.bat.com<br />
Contact Details<br />
<strong>British</strong> <strong>American</strong> Tobacco Zimbabwe<br />
1 Manchester Road<br />
P O Box ST 98, Southerton, Harare, Zimbabwe<br />
Telephone: 263 (4) 621170-84<br />
Fax: 263 (4) 661934<br />
Export Leaf Tobacco Zimbabwe<br />
4-12 Paisley Road, Southerton<br />
P O Box 3192, Harare, Zimbabwe<br />
Telephone: 263 (4) 754730-9<br />
Fax: 263 (4) 757117<br />
Tobacco Processors Zimbabwe<br />
Corner Simon Mazorodze and Auckland Roads<br />
P O Box 661290, Kopje, Harare, Zimbabwe<br />
Telephone: 263 (4) 754355/6/9<br />
Fax: 263 (4) 754747<br />
Cover design:<br />
Fontline Electronic Publishing, Harare, Zimbabwe<br />
Layout:<br />
Fontline Electronic Publishing, Harare, Zimbabwe
SECTION A. INTRODUCTION<br />
FOREWORD<br />
2<br />
Chairman, <strong>British</strong> <strong>American</strong> Tobacco Zimbabwe<br />
Managing Director, <strong>British</strong> <strong>American</strong> Tobacco Zimbabwe and<br />
2<br />
Chief Executive Officer, Leaf Operations<br />
PROFILE<br />
4<br />
<strong>British</strong> <strong>American</strong> Tobacco Operations in Zimbabwe 7<br />
SECTION B. CSR GOVERNANCE 8<br />
SECTION C. THE HIS<strong>TO</strong>RY OF SOCIAL <strong>REPORT</strong>ING IN ZIMBABWE 12<br />
Recap of the Social Reporting Process 12<br />
SECTION D. CYCLE ONE HIGHLIGHTS 14<br />
D1 Celebrations so far 14<br />
D2 Shortfalls 19<br />
SECTION E. CYCLE TWO SUMMARY 20<br />
SECTION F. CYCLE TWO – IN DETAIL 22<br />
F1 Dialogue One 22<br />
F2 Dialogue Two 23<br />
SECTION G. THE OUTCOME OF THE AA1000 DIALOGUE-BASED PROCESS<br />
Expectation summary, Our View, Issues, What we are able to deliver and<br />
Performance Indicators, What we are not able to deliver for now.<br />
24<br />
G1 EXTERNAL STAKEHOLDERS 24<br />
A. Youth Smoking Prevention 24<br />
B. Grower and Agrarian Support 29<br />
C. National Policy Reforms 29<br />
D. Corporate Conduct and Accountability 30<br />
E. Partnerships and Alliances 35<br />
F. The Environment 36<br />
G. Internal Policy Reform 36<br />
G2 INTERNAL STAKEHOLDERS 38<br />
A. Workplace : (i) Employee Welfare, (ii) Total Quality Management,<br />
(iii) Internal Communication and Empowerment 38<br />
B. Business Continuity 44<br />
C. External Stakeholder Communication 44<br />
D. Community Service 45<br />
SECTION H. THE WAY FORWARD 46<br />
SECTION I. ASSURANCE STATEMENT: BUREAU VERITAS 48<br />
SECTION J. APPENDICES<br />
List of external stakeholder organisations who participated in Cycle Two Dialogue<br />
sessions<br />
GRIs<br />
52<br />
SECTION K. GLOSSARY 64<br />
WE WELCOME YOUR FEEDBACK<br />
CONTENTS
A. INTRODUCTION<br />
FOREWORD: CHAIRMAN, BRITISH AMERICAN <strong>TO</strong>BACCO ZIMBABWE<br />
Samuel Rushwaya,<br />
Chairman, <strong>British</strong><br />
<strong>American</strong> Tobacco<br />
Zimbabwe<br />
2<br />
It is our belief that in order to achieve<br />
recognition as a responsible company in<br />
an industry seen as controversial our<br />
operations in Zimbabwe need to listen,<br />
understand and respond to reasonable<br />
stakeholder expectations. Constructive<br />
engagement with all our stakeholders is<br />
key to our understanding of what is<br />
expected of us along with a<br />
commitment to respond to those<br />
expectations in an open-minded and<br />
transparent manner. Accordingly, two<br />
years ago we were among the first<br />
operating companies to be chosen to<br />
spearhead the social reporting process<br />
in the global <strong>British</strong> <strong>American</strong> Tobacco<br />
(BAT) group.<br />
Social reporting is gaining ground in<br />
many companies of all sizes to the<br />
extent that it has begun to be an<br />
integral part of the fabric that makes up<br />
the corporate environment.<br />
Stakeholders have become more aware<br />
of social issues and therefore demand<br />
that large corporations such as ours<br />
"walk the talk". In Cycle Two, both our<br />
internal and external stakeholders<br />
realised that as part of their day-to-day<br />
operations, organisations need to<br />
demonstrate transparency,<br />
accountability, good governance,<br />
business ethics and sustainability whilst<br />
conducting their business profitably and<br />
responsibly. In the dialogue sessions<br />
stakeholders challenged us to "shout<br />
about the good work we are doing<br />
through social reporting". We recognise<br />
that society's expectations of our<br />
company are constantly increasing since<br />
we are in an industry with products<br />
associated with health risks. To meet<br />
these expectations we need to continue<br />
to engage in open and transparent<br />
dialogues with our stakeholders in order<br />
to take into account their views, which<br />
occasionally conflict with ours.<br />
Social reporting is not a public relations<br />
exercise, it is a serious commitment and<br />
we take the dialogue sessions seriously.<br />
All the sessions we carried out had<br />
representatives from the highest level<br />
within our three operating companies.<br />
The managing director for BAT<br />
Zimbabwe, the chief executive officer of<br />
ELT and TPZ (Leaf Operations) and the<br />
general manager of TPZ attended the
12 dialogue sessions of Cycle Two. The<br />
views expressed by our stakeholders<br />
during Cycle One have resulted in<br />
major changes in the way we operate.<br />
One such positive outcome of the<br />
process has been the appointment of<br />
two additional non-executive directors<br />
to the board of BAT Zimbabwe. As one<br />
stakeholder commented, "I would like<br />
to congratulate <strong>British</strong> <strong>American</strong><br />
Tobacco Zimbabwe on the recent<br />
appointment of two non-executive<br />
directors which was one of our<br />
expectations from Cycle One." Indeed,<br />
it was the aspiration of our dialogue<br />
sessions to address issues of concern to<br />
our stakeholders and those issues that<br />
impact on our business.<br />
If the unfolding of the dialogue process<br />
in the past two cycles is anything to go<br />
by, it is our sincere hope that even if<br />
some stakeholders might not trust BAT<br />
Operations they will at least be able to<br />
trust the process to which we have<br />
committed ourselves, which involves<br />
the highest standards for reporting to<br />
society that our external advisors could<br />
identify. Lastly, I would like to thank our<br />
stakeholders who spared their valuable<br />
time to take part in the dialogue<br />
sessions which were characterised by<br />
open and frank discussions. We will<br />
continue to work together and will soon<br />
be getting in touch with you with<br />
regard to the way forward.<br />
.......................................................<br />
Samuel Rushwaya<br />
Chairman<br />
<strong>British</strong> <strong>American</strong> Tobacco Zimbabwe<br />
go to<br />
www.bat.com<br />
A<br />
Introduction<br />
3
INTRODUCTION<br />
FOREWORD: MANAGING DIREC<strong>TO</strong>R, BRITISH AMERICAN<br />
<strong>TO</strong>BACCO ZIMBABWE AND CHIEF EXECUTIVE OFFICER, LEAF<br />
OPERATIONS<br />
Kennedy Mandevhani,<br />
Managing Director, <strong>British</strong><br />
<strong>American</strong> Tobacco<br />
Zimbabwe (left) and Leon<br />
Reed, Chief Executive<br />
Officer, Leaf Operations<br />
(right)<br />
4<br />
Our second Report to Society is part of our<br />
continued effort and commitment to<br />
embedding the principles of CSR and we<br />
are pleased to announce that in Cycle Two<br />
we were joined by ten other BAT operating<br />
companies in the social reporting process.<br />
This brings the number of participating<br />
countries to a total of 24 within the global<br />
group. Through stakeholder dialogue, we<br />
hope to get a better understanding of what<br />
our stakeholders expect of us in our efforts<br />
to be acknowledged as a responsible<br />
company.<br />
Social reporting also enables us to<br />
demonstrate to society how we are striving<br />
to play our role as a good corporate citizen<br />
in addressing and managing key issues<br />
impacting on our industry. We are<br />
committed to contributing to the economy<br />
and the community in which we operate<br />
by being responsive to shareholder and<br />
societal concerns. Needless to say, social<br />
reporting has ushered in a process that<br />
helps us to have a deeper understanding of<br />
our stakeholders, their issues of concern<br />
and how an environmental performance<br />
can be measured against the AA1000 and<br />
Global Reporting Initiatives (GRIs)<br />
standards. It is our belief that social<br />
reporting will bring our operations in<br />
Zimbabwe closer to their stakeholders, thus<br />
helping us to appreciate each other's<br />
opinions and positions.<br />
In this second report we outline the<br />
achievements of Cycle One and our<br />
commitment to Cycle Two expectations. As<br />
an organisation we would like to assure our<br />
stakeholders that the group in Zimbabwe is<br />
fully committed to delivering the<br />
reasonable expectations that came out of<br />
the 12 dialogue sessions.<br />
We would like to thank our moderator,<br />
facilitator, our stakeholders and all the other<br />
people who contributed towards making<br />
Cycle Two the success it was. It is our<br />
fervent hope that more stakeholders will<br />
join us in future dialogues. Finally, we<br />
would like to thank the external auditor,<br />
Jack Simms from Bureau Veritas.<br />
................................................ ................................................<br />
Kennedy Mandevhani Leon Reed<br />
Managing Director Chief Executive Officer<br />
<strong>British</strong> <strong>American</strong> Tobacco Zimbabwe BAT Leaf Operations
FIVE MINUTES WITH THE CSR COMMITTEE CHAIRMAN – GROUP FINANCE<br />
DIREC<strong>TO</strong>R, GORDON MARTIN, BAT OPERATIONS<br />
Gordon Martin<br />
presenting at a<br />
dialogue session<br />
Recently, Gordon Martin (GM), the<br />
chairman of CSR Committee and group<br />
finance director for BAT Operations,<br />
responded to the following questions<br />
raised by an internal stakeholder at one of<br />
the tea breaks during Cycle Two.<br />
Internal stakeholder: What is your view<br />
on CSR?<br />
GM: Evidence is accumulating that CSR is<br />
good for business in the medium to long<br />
term. CSR, put simply, is about treating your stakeholders in an<br />
ethically responsible manner. It takes time to put into practice and<br />
is not without cost, but there are commercial benefits which<br />
justify the time and effort.<br />
Internal stakeholder: What are the key advantages of being socially<br />
responsible?<br />
GM: Social reporting will help ensure that we keep our "licence"<br />
to operate in the long term by engaging constructively with our<br />
stakeholders, gaining their trust, listening to them and responding<br />
to their reasonable expectations of us. The other advantages are:<br />
• An improved reputation among stakeholders<br />
• An increased share value, as social investment funds target the<br />
company<br />
• Improved productivity, through increased motivation and<br />
efficiency<br />
• Enhanced partnerships are created between the company and<br />
its external stakeholders<br />
Internal stakeholder: What challenges do you foresee for CSR?<br />
GM: The challenge is not only about our values, beliefs and<br />
morals. The challenge is also about understanding and addressing<br />
perceptions – accurate or not. No company operates in isolation,<br />
every decision that we make for reasons of social responsibility,<br />
environmental or commercial impact will have a knock-on effect<br />
elsewhere. In order to manage that impact effectively, we have to<br />
take a measurable approach.<br />
A<br />
Introduction<br />
5
INTRODUCTION<br />
6<br />
PROFILES<br />
Retired Justice<br />
K.R.A. Korsah<br />
makes reference<br />
to the first social<br />
report during<br />
dialogue<br />
Rob Ward<br />
outlines the rules<br />
of the game at a<br />
dialogue session<br />
MODERA<strong>TO</strong>R<br />
RETIRED JUSTICE K.R.A. KORSAH<br />
Retired Justice K.R.A. Korsah, affectionately known as<br />
Roger, was born in Cape Coast, Ghana and educated<br />
at Achimota School in Accra.<br />
In November 1961, he was called to the English Bar<br />
where he served as a junior practitioner between<br />
1962 and 1996 before becoming the Master of<br />
Chambers in Korah Chambers. He was appointed<br />
judge of the High Court of Ghana in 1976.<br />
On coming to Zimbabwe in 1983 he was made a<br />
judge in the High Court of Zimbabwe. He was<br />
subsequently elevated to the Supreme Court in 1987<br />
where he served for ten years before retiring.<br />
In 1998 he was appointed Judge of the COMESA<br />
Court of Justice and in the same year he became Justice of Appeal<br />
in the Appeal Court of Botswana, both positions he currently<br />
holds.<br />
FACILITA<strong>TO</strong>R<br />
ROB WARD<br />
Rob holds a Bachelor of Agricultural Management<br />
Degree from the University of Natal RSA and a<br />
Masters in Business Administration from the<br />
University of Hull UK. He is an expert in Strategic<br />
Planning and Organisational Development, with<br />
experience in change management programmes in<br />
large private sector companies, NGOs and state<br />
departments. Whilst his consulting activities have<br />
mainly been in Southern African countries, some of<br />
his interventions have been in the US, the UK and<br />
Sweden. His change interventions involve the<br />
development of strategic plans, the restructuring of<br />
organisations, the designing of change maps and<br />
the evaluation of projects and investments.
PROFILE OF BRITISH AMERICAN <strong>TO</strong>BACCO OPERATIONS IN<br />
ZIMBABWE<br />
In our last report we gave the profile of<br />
our three operating companies, covering<br />
such information as the activities carried<br />
out at various sites and the nature of our<br />
business comprising leaf purchasing,<br />
processing and cigarette manufacturing.<br />
Since then we have reviewed the way the<br />
local group operates and have put in<br />
place an optimum management<br />
structure that will help align their<br />
businesses going into the future. BAT<br />
Operations believe that the integration<br />
will not only put the operations in better<br />
stead to meet future challenges in<br />
Zimbabwe but also ensure synergy<br />
benefits.<br />
The first phase of the integration process<br />
was to extract synergies in those areas<br />
where duplication existed. Group services<br />
were integrated to deal with common<br />
issues and provide strategic guidance for<br />
the three operating companies in the<br />
most effective manner. This has resulted<br />
in the appointment of group heads in the<br />
following departments: HR, IT, Finance<br />
and CORA, Legal and Security. Whilst the<br />
above management structure and the<br />
attendant adjustments have taken place –<br />
the legal structures of BAT Operations<br />
remain unchanged. The organisation will<br />
continue to find ways to improve its<br />
business operations by identifying areas<br />
where it can reduce costs and improve its<br />
operations through such synergies.<br />
BAT Zimbabwe administration block<br />
ELT administration block<br />
Alphonce Dzoraimombe, Receptionist<br />
at the TPZ front office<br />
A<br />
Introduction<br />
7
B. CSR GOVERNANCE<br />
8<br />
The CSR Committee is responsible for<br />
the integration of corporate social<br />
responsibility principles (Statements of<br />
Business Principles) into our business<br />
activities and ensures that our public<br />
reporting reflects the principles of<br />
AA1000 and GRI standards.<br />
The CSR Committee has continued with<br />
its role, the only significant change from<br />
last year being the appointment of<br />
Gordon Martin, of BAT Operations, as<br />
the new CSR Committee chairman.<br />
As chairman, Gordon has the added<br />
advantage of his position as the group<br />
finance director which has enabled him<br />
to guide the CSR Committee in its<br />
deliberations and commitments on the<br />
social reporting process. Together with<br />
his team, he has looked at all the<br />
expectations that were raised during the<br />
Dialogue One sessions and has come up<br />
with a comprehensive list of reasonable<br />
deliverables that were presented to the<br />
stakeholders in Dialogue Two. The CSR<br />
Committee meetings were crucial to<br />
ensuring that all the expectations<br />
committed to, would not only be<br />
delivered but help the organisation in its<br />
efforts to regain recognition as a<br />
socially, ethically and environmentally<br />
responsible company.<br />
Members of the CSR Committee were<br />
drawn from various functions within<br />
BAT Operations:<br />
1. Managing Director, BAT Zimbabwe<br />
2. Chief Executive Officer, Leaf<br />
Operations<br />
3. General Manager, TPZ<br />
4. CORA Manager, Southern Africa<br />
Area<br />
5. Leaf Director, ELT<br />
6. Finance Director, BAT Operations<br />
(CSR Chairman)<br />
7. Marketing Director, BAT Zimbabwe<br />
8. Trade Marketing & Distribution<br />
Director, BAT Zimbabwe<br />
9. Head of IT, BAT Operations<br />
10. Head of CORA, Legal and Security,<br />
BAT Operations<br />
11. CORA Manager, BAT Operations<br />
12. Human Resources Director, BAT<br />
Operations<br />
13. Internal Audit Manager, ELT<br />
14. Social Reporting Manager, BAT<br />
Operations<br />
15. CORA Management Trainee, BAT<br />
Operations
OUR CSR COMMITTEE<br />
Gordon Martin<br />
CSR Committee Chairman,<br />
Finance Director,<br />
BAT Operations<br />
Dave Ferguson<br />
Leaf Director,<br />
ELT<br />
Lovemore Manatsa<br />
Trade Marketing &<br />
Distribution Director,<br />
BAT Zimbabwe<br />
Graves Sekenhamo<br />
Internal Audit Manager,<br />
ELT<br />
Kennedy Mandevhani<br />
Managing Director,<br />
BAT Zimbabwe<br />
Richard Linnett<br />
General Manager,<br />
TPZ<br />
Bernard Gona<br />
Human Resources Director,<br />
BAT Operations<br />
Innocent Mtize<br />
Social Reporting<br />
Manager,<br />
BAT Operations<br />
Leon Reed<br />
Chief Executive Officer,<br />
Leaf Operations<br />
Simukai Munjanganja<br />
Head of CORA,<br />
Legal and Security,<br />
BAT Operations<br />
Rudolph De Wet<br />
Head of IT ,<br />
BAT Operations<br />
Lorraine Mandikutse<br />
CORA Management<br />
Trainee,<br />
BAT Operations<br />
Manoj Ujoodha<br />
CORA Manager,<br />
Southern Africa Area<br />
Joe Muganda<br />
Marketing Director,<br />
BAT Zimbabwe<br />
Peter Parirewa<br />
CORA Manager,<br />
BAT Operations<br />
go to<br />
www.bat.com<br />
B<br />
CSR<br />
Governance<br />
9
C. THE HIS<strong>TO</strong>RY OF<br />
SOCIAL <strong>REPORT</strong>ING IN<br />
ZIMBABWE<br />
Jack Simms, Auditor,<br />
Bureau Veritas<br />
(right) and Graves<br />
Sekenhamo, Internal<br />
Audit Manager, ELT,<br />
discussing a point of<br />
clarification during<br />
dialogue<br />
10<br />
In June 2001, Zimbabwe joined 13 other<br />
countries in embarking on the process<br />
of social reporting which sought to<br />
assist BAT to listen and respond to<br />
reasonable stakeholder expectations.<br />
The local social reporting team worked<br />
to opening dialogue with key<br />
stakeholders ranging from the private<br />
sector through to Government<br />
Ministries. By June 2002, the first Report<br />
to Society had been published.<br />
Cycle One of the process culminated in<br />
the nomination of the report (BAT<br />
Operations Report to Society for 2001-<br />
2002) in the global BAT Golden Leaf<br />
Awards, a new BAT initiative introduced<br />
to recognise outstanding achievements<br />
of end markets. This was a landmark in<br />
the history of our operating companies<br />
in that they were amongst the pioneers<br />
of the process of social reporting in BAT.<br />
It marked the beginning of a process<br />
that is now assisting our business in<br />
taking into account the needs of<br />
stakeholders.<br />
For Cycle One, our moderator was the<br />
Chief Justice of Zimbabwe, Godfrey<br />
Chidyausiku. With a facilitating team, he<br />
ensured that all stakeholders had an<br />
opportunity to air their views without<br />
prejudice.<br />
We have embarked on an exciting<br />
"journey" and will continue to follow<br />
rigorous international standards, GRI<br />
standards, Social and Ethical<br />
Accountability process.
OUR STRATEGIC IMPERATIVES<br />
To deliver our Vision, we must achieve:<br />
How to win<br />
1. Focused brand portfolios, communicated through state-of-the-art adult<br />
smoker engagement programmes<br />
2. Industry leading product portfolio, designed to address consumer needs<br />
and societal expectations<br />
3. Optimum product availability through world class customer service<br />
4. Leading products in priority markets<br />
5. Recognition as a responsible company in an industry seen as controversial<br />
6. Wired for # 1<br />
OUR VISION<br />
To become the world's leading international<br />
tobacco group<br />
7. A winning environment inspiring passion for the business, talented people<br />
and personal fulfilment<br />
go to<br />
www.bat.com<br />
C<br />
The history<br />
of social<br />
reporting<br />
11
THE HIS<strong>TO</strong>RY OF<br />
SOCIAL <strong>REPORT</strong>ING IN<br />
ZIMBABWE<br />
RECAP OF THE SOCIAL <strong>REPORT</strong>ING PROCESS<br />
12<br />
Social reporting – put simply – is the<br />
process of listening, understanding and<br />
responding to stakeholders reasonable<br />
expectations. It is not merely a report that<br />
is produced annually, but is a process to<br />
ensure that the BAT Group is performing<br />
in line with societal expectations. As<br />
demands for transparency and<br />
accountability increase, multinationals<br />
such as ourselves have come to realise<br />
that we do not operate in isolation. We<br />
are the world's first tobacco company to<br />
produce a social report; for us this has<br />
been a significant achievement. Social<br />
reporting touches on everybody, as it is a<br />
new way of doing business and it means<br />
not just thinking about financial matters<br />
when making decisions, but the social<br />
consequences of those decisions as well.<br />
The social reporting process has proven<br />
to be an effective mechanism to<br />
objectively and robustly address society's<br />
needs while embedding the idea of<br />
engagement into all areas of business.<br />
The process provides a structured<br />
approach for BAT Operations to:<br />
• Understand more about the<br />
expectations of our stakeholders<br />
Charlene Hewitt, Executive<br />
Director, Environment Africa,<br />
(second from left) outlines the<br />
groups expectations<br />
• Ensure that these expectations are<br />
given due consideration in the<br />
company's decision-making<br />
• Demonstrate with actions that we<br />
are responsive to reasonable<br />
stakeholder expectations and<br />
concerns<br />
WHAT ARE THE MAIN STAGES?<br />
Entry Plan – The starting point is an<br />
internal scoping study that looks at<br />
clarifying what type of stakeholder<br />
relationship is currently prevailing and<br />
how social reporting can add value.<br />
Thereafter, Stakeholder Mapping and<br />
Classification (SMC) is undertaken that<br />
is, research that assists in classifying<br />
stakeholders into the following<br />
categories: decision-makers, influencers<br />
and non-influencers, who are prioritised<br />
according to their impact on the<br />
organisations’ business.<br />
Listening – Having identified its key<br />
stakeholders the organisation uses a<br />
structured approach to enter into<br />
dialogue with these groups or<br />
individuals.
Decide – The output from<br />
this stage is a set of clear<br />
commitments that have<br />
been approved by BAT<br />
Operations after<br />
discussions with relevant<br />
stakeholders. Where<br />
applicable, this will include<br />
some way of measuring<br />
success and determining<br />
whether targets have been<br />
met.<br />
Deliver – The organisation<br />
fulfils its commitments<br />
within the agreed time frames. A report<br />
is published and distributed among the<br />
various stakeholders. One of the key<br />
points is that BAT Operations continue<br />
to be accountable to their stakeholders<br />
for delivering commitments.<br />
Cycle Two has seen the continued use<br />
of rigorous international standard,<br />
AA1000 and the GRI standards. In order<br />
to ensure full compliance with AA1000<br />
set by the Institute of Social and Ethical<br />
Accountability and verify the entire<br />
process we have retained Bureau Veritas<br />
Assurance Symbols<br />
Process: information has been checked for accuracy and is<br />
derived using a verified AA1000 process e.g. stakeholder<br />
outputs<br />
Base Data: the facts stated or claims made have been<br />
confirmed by enquiry or other audit technique<br />
Numerical: numerical data has been checked for accuracy<br />
and/or source<br />
Dave Ferguson, Leaf Director ELT (left) Leon<br />
Reed, CEO Leaf Operations (centre) and<br />
Richard Linnett, General Manager, TPZ<br />
(right) listening attentively to stakeholder<br />
expectations during the Leaf Dialogue Two<br />
session<br />
as our independent social and ethical<br />
auditor. Throughout the report, Bureau<br />
Veritas indicates where it has verified the<br />
content using the assurance symbols<br />
indicated below:<br />
For the full description of AA1000 and GRI standards please refer to the Social<br />
Reporting Manager.* The full text is available on the website of the Institute of Social<br />
and Ethical Accountability www.accountability.org. uk<br />
* <strong>British</strong> <strong>American</strong> Tobacco Zimbabwe, 1 Manchester Road, P O Box ST 98, Southerton, HARARE.<br />
Telephone: +263 (4) 621170-84, +263-11-206342, Fax: +263 (4) 661934 E-mail: Innocent_Mtize@bat.com<br />
C<br />
The history<br />
of social<br />
reporting<br />
13
D. CYCLE ONE HIGHLIGHTS<br />
14<br />
We would like to share with you some of our achievements from Cycle One. As it<br />
was our first attempt at social reporting, we had a lot to learn and we take this<br />
opportunity to go through some of the highlights.<br />
D1. CELEBRATIONS SO FAR<br />
CLEANING UP THE ENVIRONMENT<br />
BAT Operations believe that with<br />
combined efforts from stakeholders<br />
such as Harare City Council and<br />
Environment Africa we can keep our city<br />
clean and help it regain the once used<br />
favourite term "Sunshine City".<br />
Clean Up Zimbabwe is a project of<br />
Environment Africa that is linked to<br />
Clean Up the World. This is an event<br />
designed to focus international and<br />
local attention on the problems of litter<br />
and waste affecting the environment.<br />
The objective of Clean Up Zimbabwe is to<br />
bring together the community in a simple<br />
activity which will assist local<br />
governments in their clean-up initiatives. It<br />
also creates media focus on the problem<br />
of litter thereby raising appreciation<br />
among local governments, industries and<br />
individuals about environmental issues,<br />
particularly waste minimisation, recycling<br />
and waste management.<br />
In October 2002 over 100 volunteers<br />
from BAT Operations participated in the<br />
event that took place at the Beatrice<br />
Infectious Diseases Hospital in Harare.<br />
Addressing the participants, the General<br />
Manager of Environment Africa,<br />
Innocent Hodzonge said, "As the years<br />
have gone by, our objective at<br />
Environment Africa has been to<br />
transform the campaign from three days<br />
of activity into a way of life." Besides the<br />
employees of BAT Operations, the<br />
Deputy Mayor of Harare, Her Honour<br />
Sekesai Makwavavara and the Acting<br />
Director of Health Services, Dr Stanley<br />
Mungofa, also took part in the cleaning<br />
of the hospital grounds.<br />
Accordingly, as a socially responsible<br />
group, BAT Operations will continue to<br />
find ways of expanding such initiatives<br />
and seek partnerships with the relevant<br />
organisations.<br />
Her Honour, Sekesai<br />
Makwavarara, Deputy<br />
Mayor of Harare (3rd<br />
from left) and Innocent<br />
Hodzonge, General<br />
Manager, Environment<br />
Africa (with hat)<br />
together with Internal<br />
stakeholders sweeping<br />
Beatrice Infectious<br />
Diseases Hospital<br />
grounds
YOUTH SMOKING PREVENTION<br />
CAMPAIGN - THE RETAIL ACCESS<br />
PROGRAMME.<br />
In the last report we gave you the<br />
background information on the Youth<br />
Smoking Prevention (YSP) programme<br />
and how it relates to the relevant statute<br />
on child protection. We welcomed the<br />
opportunity for further dialogue with<br />
stakeholders of all shades of opinion to<br />
help us clarify how best to address YSP.<br />
We are willing to share our experiences<br />
with interested parties, in order to show<br />
why we believe such campaigns are<br />
appropriate. In 2002, one of the<br />
expectations from stakeholders was for<br />
the company to extend its "Under 18, No<br />
Cigarettes" retail access programme to<br />
5000 retail outlets. Having covered 1500<br />
retail outlets by the end of Cycle One,<br />
stakeholder expectation was for the<br />
number of outlets to be increased. We<br />
are pleased to have achieved this<br />
performance indicator and the target set<br />
was exceeded by 400 retails outlets. The<br />
The new YSP campaign material in vernacular<br />
retail access programme goes beyond<br />
placing stickers and posters, it involves<br />
the briefing of each outlet owner, on<br />
the purpose and objectives of the<br />
campaign before being given leaflets<br />
that will help them explain and answer<br />
any questions from their customers. The<br />
process takes time as the outlet owners<br />
have to be educated on the law on<br />
tobacco products and its impact on<br />
minors. While the retail access<br />
programme focuses on retailing, it also<br />
aims at preventing minors from buying<br />
tobacco products at the point of sale.<br />
This year the campaign materials have<br />
been developed to include vernacular<br />
languages. The materials are now<br />
assisting retailers in compling with<br />
Statutory Instrument 264 of 2002,<br />
Public Health (Tobacco Control<br />
Regulation) which requires outlet<br />
owners to display signs that discourage<br />
minors from the use of tobacco<br />
products.<br />
go to<br />
www.bat.com<br />
D<br />
Cycle One<br />
Highlights<br />
15
CYCLE ONE HIGHLIGHTS<br />
D1. CELEBRATIONS SO FAR CONTINUED<br />
16<br />
THE FIGHT AGAINST HIV/AIDS<br />
In Cycle One, we committed ourselves<br />
to continuing our ill-health<br />
management programme, specifically in<br />
relation to the fight against HIV/AIDS<br />
and to find a platform to share<br />
experiences. We are delighted that this<br />
initiative has grown from strength to<br />
strength. Peer educators have increased<br />
in numbers from 20 to 28 and have<br />
been remarkably successful in<br />
promoting informed and responsible<br />
sexual attitudes and behaviour.<br />
The HIV/AIDS awareness programme,<br />
received a major boost in 2002 when<br />
the company spent six million dollars in<br />
building a new staff clinic at BAT<br />
Zimbabwe. Officially opening the<br />
facility Hon. Minister of Health and<br />
Dr David Parirenyatwa ,<br />
the Hon. Minister of Health and Child<br />
Welfare, examining Samuel Rushwaya,<br />
the BAT Zimbabwe chairman in the<br />
new staff clinic<br />
Dr David Parirenyatwa, the Hon. Minister<br />
of Health and Child Welfare, unveils a<br />
plaque to mark the official opening of<br />
the new BAT ZImbabwe staff clinic<br />
Child Welfare, Dr David<br />
Parirenyatwa, said, "Zimbabwe is<br />
facing a large number of<br />
concerns. Among the most<br />
serious is malaria and of course<br />
HIV/AIDS. It is in view of this fact that<br />
BAT Zimbabwe should be commended<br />
for focussing on the health and well<br />
being of its employees."<br />
The clinic offers free medical services for<br />
the company's 400 workers, ranging<br />
from counselling to stress management.<br />
It also offers regular testing of eye-sight<br />
and hearing. The company continues to<br />
make a 100% contribution to its<br />
permanent employees’ medical aid.<br />
More information on our HIV/AIDS<br />
Awareness programme is given as a case<br />
study on page 33.
EFFORTS <strong>TO</strong>WARDS STATU<strong>TO</strong>RY<br />
INSTRUMENT REVIEW<br />
After two years of discussions, the<br />
Government of Zimbabwe published<br />
Statutory Instrument 264 of 2002, Public<br />
Health (Control of Tobacco) Regulations.<br />
We are proud to have contributed to the<br />
new regulations that impact not only on<br />
the marketing activities of tobacco<br />
manufacturers, but also the way other<br />
stakeholders such as the trade, retailers,<br />
and the hospitality industry conduct<br />
their business. The statute demonstrates<br />
partnerships that can exist between<br />
tobacco companies and governments in<br />
constructive engagement that leads to<br />
the promulgation of reasonable<br />
legislation. This topic is covered on page<br />
27 as a case study under the section<br />
AA1000 outcomes.<br />
THE GOLDEN LEAF<br />
AWARDS<br />
As already mentioned, a<br />
highlight for the year 2002 was<br />
the nomination of BAT<br />
Operations together with 13<br />
other end markets for the<br />
Golden Leaf Awards. This<br />
award was introduced in order<br />
to recognise the outstanding<br />
achievements of end markets, share best<br />
practice and celebrate success.<br />
It also seeks to reinforce BAT's guiding<br />
principles in the workplace while<br />
demonstrating the business impact of<br />
these achievements and behaviours<br />
across the Group.<br />
In celebrating this accomplishment, a<br />
dinner was held at a local hotel. Allen<br />
Hodgkinson, Southern Africa Area<br />
Director, presented the trophy to the<br />
chief executive officer of Leaf<br />
Operations, Leon Reed and BAT<br />
Zimbabwe managing director, Kennedy<br />
Mandevhani.<br />
In a congratulatory letter, to the social<br />
reporting team in Zimbabwe, BAT<br />
chairman Martin Broughton, said, "Your<br />
The CORA Team proudly<br />
displays the Golden Leaf Award<br />
during the Golden Leaf Award<br />
celebration dinner<br />
Kennedy Mandevhani, Managing Director,<br />
BAT Zimbabwe (left), and Leon Reed,<br />
Chief Executive Officer, ELT (centre),<br />
accept the Golden Leaf Award from Allen<br />
Hodgkinson, Southern Africa Area Director<br />
D<br />
Cycle One<br />
Highlights<br />
17
CYCLE ONE HIGHLIGHTS<br />
D1. CELEBRATIONS SO FAR CONTINUED<br />
18<br />
achievements demonstrate the<br />
incredible power of team work. They<br />
demonstrate what can be achieved by<br />
approaching opportunities with true<br />
enterprising spirit, by leveraging the<br />
diversity we have within the company,<br />
MEDIA ENGAGEMENT<br />
Head of CORA, Legal and<br />
Security (2nd from right)<br />
presenting at the<br />
briefing with the media<br />
by being open to new ideas and<br />
perspectives and by challenging the<br />
conventional." He went on to say, "You<br />
all deserve to feel proud of what you<br />
have achieved – your success is being<br />
shared across <strong>British</strong> <strong>American</strong> Tobacco."<br />
In our first report we promised to<br />
report on progress made with<br />
regards to media briefs as part of our<br />
efforts to communicate smoking and<br />
health issues. We have since<br />
published and distributed the Real<br />
Progress for the Real World (RPRW)<br />
booklets primarily to employees but<br />
also availed to external stakeholders<br />
who have requested them.<br />
Media briefs have resumed this year<br />
with the CSR Committee electing to breakdown the media<br />
briefs, from a general media brief to media briefs done on a<br />
media house by media house basis. The new format of<br />
media briefing facilitates focussed discussions on tobaccorelated<br />
issues, giving the journalists a wider opportunity for<br />
better interaction with various media organisations.<br />
Some journalists that attended<br />
the media briefing at The Daily
D2. SHORTFALLS<br />
Whilst we are proud of our wide ranging<br />
list of achievements in Cycle One, the YSP<br />
workshop and the expansion of the BAT<br />
Agronomy Best Practice, deliverables had to<br />
be carried forward to allow for further<br />
inclusivity in the range of participating<br />
stakeholders.<br />
YSP WORKSHOP<br />
Our CSR Committee felt that there was a<br />
need to bring on board other stakeholders<br />
already engaged in other adolescent<br />
lifestyle initiatives. In 2002, the MHCW<br />
initiated discussions with their<br />
stakeholders on a workshop. Proposed<br />
participants would include UNICEF,<br />
Ministry of Education, Sport and Culture<br />
and the Zimbabwe Republic Police. In the<br />
circumstances it was felt prudent to be<br />
involved in the MHCW organised<br />
workshop and avoid inviting resembling<br />
stakeholders to its own YSP workshop.<br />
OUR GUIDING PRINCIPLES<br />
Currently discussions with the MHCW are<br />
underway with the view to setting up a date<br />
when the YSP workshop could be held<br />
sometime this year (2003.) For us, this forum<br />
is important as it will enable us to share<br />
experiences on our YSP retail access<br />
programme and find out how best it could<br />
be developed into an educational campaign.<br />
BAT AGRONOMY BEST PRACTICE<br />
Another expectation was the expansion of<br />
adoption of BAT Agronomy Best Practice or<br />
the Social Responsibility on Tobacco<br />
Growing by representative grower bodies.<br />
Whilst we endeavoured to meet this<br />
expectation it is appreciated that the<br />
representative grower bodies were not<br />
able to participate and meet this<br />
deliverable. Nonetheless, we hope to<br />
pursue and expand the YSP and BAT<br />
Agronomy Best Practice initiatives in the<br />
near future.<br />
The Way to Win<br />
Our Guiding Principles define who we are and how we work together to achieve<br />
our visions<br />
1. Strength from Diversity<br />
This means more than just understanding and respecting our employees' individual<br />
differences. It means we value those differences as a catalyst for new ideas.<br />
2. Open minded<br />
We are committed to listening and to constructive dialogue, to deepening our<br />
understanding of what is expected of us and to defining as well as<br />
demonstrating responsible behaviour.<br />
3. Freedom through responsibility<br />
We believe decisions should be pushed down the organisation to the<br />
appropriate level, as close to the consumer as possible and decision-takers<br />
should accept responsibility for the way that they affect our stakeholders.<br />
4. Enterprising spirit<br />
We want to use our skills to seek out new opportunities for success and strive<br />
for innovation.<br />
D<br />
Cycle One<br />
Highlights<br />
19
E. CYCLE TWO SUMMARY<br />
BAT Operations<br />
representatives share<br />
a lighter moment in<br />
Dialogue<br />
20<br />
A total of 61 external stakeholders and<br />
46 internal stakeholders attended our<br />
Cycle Two Dialogue One sessions. The<br />
six sessions which commenced in<br />
September 2002 focussed on CCA,YSP<br />
and tobacco leaf growing, processing<br />
and marketing issues whilst two were<br />
specifically for BAT Operations'<br />
employees.<br />
Unlike Cycle One where dialogue<br />
sessions focussed on individual views,<br />
Cycle Two had a group approach. The<br />
expectations were generally consistent<br />
with those expressed in Cycle One with<br />
the viability of the tobacco industry and<br />
support for "new farmers" being more<br />
pronounced. Once again there was a<br />
strong expectation for BAT operations to<br />
lobby for a change to Zimbabwe's<br />
tobacco marketing system, among other<br />
things.<br />
There has been continued positive<br />
response to the whole social reporting<br />
process, namely, stakeholder dialogue<br />
process and the commitment to<br />
achieving recognition as a socially<br />
responsible company. In keeping with<br />
the format of Dialogue Two, the group<br />
in Zimbabwe responded to issues raised<br />
by the stakeholders in Dialogue One.<br />
BAT senior managers explained to each<br />
of the dialogue groups what the<br />
organisation's view was on a particular<br />
category, what the company was able<br />
to deliver, suggested performance<br />
indicators and what the company could<br />
not deliver. On each suggested<br />
performance indicator the company<br />
asked stakeholders two questions which<br />
sought to prompt stakeholder to tighten<br />
the deliverables and suggest how they<br />
could assist in their accomplishment<br />
through partnerships. The questions<br />
were:<br />
• How can <strong>British</strong> <strong>American</strong> Tobacco<br />
Operations sharpen performance<br />
indicators to help ensure desired<br />
measurable outcomes?<br />
• How can you or any other partner<br />
assist <strong>British</strong> <strong>American</strong> Tobacco<br />
Operations in successfully<br />
implementing these commitments?"
CYCLE TWO SUMMARY<br />
In view of BAT 's limited<br />
resources and spheres of<br />
influence stakeholders<br />
appreciated that certain<br />
expectations are<br />
insurmountable for a single<br />
organisation and thus<br />
encouraged the expansion<br />
or creation of new<br />
partnerships.<br />
Cycle Two saw the<br />
company embark on new<br />
commitments and in line<br />
with stakeholder concerns.<br />
We have tried to make our<br />
report simpler and we will endeavour to<br />
distribute it to a wider audience than in<br />
Cycle One. Our operations are<br />
committed to encouraging informal<br />
meetings amongst employees and<br />
involving them in company<br />
celebrations.<br />
Efforts to reduce product out flows and<br />
the need to support students in<br />
agricultural institutions in order to<br />
ensure sustainable viability in tobacco<br />
Rob Ward, facilitator, explaining the<br />
Dialogue Two format<br />
industry were some of the challenges<br />
that faced BAT Operations during the<br />
year 2002.<br />
Stakeholders encouraged the<br />
organisation to continue with its illhealth<br />
management programmes<br />
especially the fight against HIV/AIDS.<br />
go to<br />
www.bat.com<br />
E<br />
Cycle Two<br />
Summary<br />
21
F. CYCLE TWO – IN DETAIL<br />
Jerry Tsodzai (2nd<br />
from left), Nonexecutive<br />
Director,<br />
BAT Zimbabwe<br />
and Kennedy<br />
Mandevhani (3rd<br />
from left),<br />
Managing Director,<br />
BAT Zimbabwe, in<br />
a conversation with<br />
External<br />
Stakeholders<br />
22<br />
F1 DIALOGUE ONE<br />
The approach to Cycle Two dialogue<br />
was modified to accommodate larger<br />
number of stakeholders. Cycle One<br />
stakeholders not only recommended<br />
this, but also offered names of<br />
additional organisations and individuals<br />
who could be invited to sessions. To this<br />
end, the meta- plan process was<br />
structured around small groups of<br />
stakeholders, who spent time agreeing<br />
on the views of the sub-group before<br />
submitting their views to the plenary.<br />
The sessions still involved the clustering<br />
of issues, labelling and ranking the<br />
clusters to identify priorities.<br />
Expectations that were raised during<br />
this cycle were in the following broad<br />
areas:<br />
• The viability of the tobacco industry<br />
and the proposed support for the<br />
"new farmers"<br />
• Lobbying for national policy reforms,<br />
including a change in tobacco<br />
marketing system<br />
• Ensure Corporate Conduct and<br />
Accountability include such issues as<br />
responsible marketing, product<br />
availability, community involvement<br />
and protecting the environment<br />
• Creating partnership and alliances<br />
• Research on smoking and health<br />
issues and environmental tobacco<br />
smoke (ETS)<br />
• BAT Zimbabwe's internal policy<br />
review<br />
• Employee welfare in such areas as<br />
empowerment, health and safety,<br />
improved funeral policy, team<br />
building, revised benefits and<br />
incentives<br />
• Business continuity<br />
• Gender, issues among internal<br />
stakeholders<br />
• Internal and external communication<br />
Internal stakeholders also brought in the<br />
issue TQM, which covered a wide range<br />
of issues from continuous improvement<br />
to controlling theft and fraud control.<br />
With regard to YSP, stakeholders wanted<br />
our organisation to continue with the<br />
retail access programme by not only<br />
increasing the number of participating<br />
retail outlets, but also developing an<br />
educational campaign.
The stakeholders<br />
also expressed their<br />
views on how the<br />
social reporting<br />
process could be<br />
improved. The<br />
sessions were<br />
characterised by<br />
continued open and<br />
frank discussions.<br />
F2 DIALOGUE<br />
TWO<br />
The purpose of the<br />
Dialogue Two<br />
session was to respond to the 208<br />
expectations raised in Dialogue One.<br />
Following a series of detailed<br />
presentations by company<br />
representatives the facilitator focussed<br />
the groups on sharpening performance<br />
indicators and identifying possible<br />
partnership areas with various<br />
stakeholders. BAT Operations defined<br />
performance indicators as measures that<br />
would assist the organisation in<br />
determining the impact and completion<br />
of commitments, while partnerships<br />
were defined as co-operations between<br />
Angela Mashanyare, Non-executive Director<br />
(purple slacks), BAT Zimbabwe being<br />
introduced at the Dialogue Two cocktail party<br />
BAT Operations and other appropriate<br />
stakeholders who could assist in<br />
achieving the desired outcomes.<br />
Stakeholders appeared satisfied with the<br />
responses to their expectations as they<br />
realised that social reporting is an ongoing<br />
process.<br />
go to<br />
www.bat.com<br />
F<br />
Cycle Two<br />
in detail<br />
23
G. THE OUTCOME OF THE<br />
AA1000 DIALOGUE-<br />
BASED PROCESS<br />
Stakeholder expectations raised during dialogue were grouped into eleven broad categories. In this<br />
section we give an account of the outcomes for each category under internal and external stakeholders:<br />
1. EXTERNAL STAKEHOLDERS<br />
A. Youth smoking prevention<br />
B. Grower and agrarian support<br />
C. National policy reforms<br />
D. Corporate conduct and accountability<br />
E. Partnerships and alliances<br />
F. The environment<br />
G. Internal policies reform<br />
2. INTERNAL STAKEHOLDERS<br />
A. Workplace: (i) Employee welfare, (ii) Total quality management, (iii) Internal communication and<br />
empowerment<br />
B. Business continuity<br />
C. External communication<br />
D. Community service<br />
FOR EACH CATEGORY WE SUMMARISE THE FOLLOWING<br />
• Stakeholder expectation summary<br />
• Our view<br />
• What we are able to deliver now<br />
• Performance Indicators<br />
• What we are not able to deliver now<br />
Our CSR committee made a concerted effort to meet all stakeholders' reasonable expectations, but<br />
there remained areas they felt expectations were, for one reason or another, undeliverable. In such<br />
cases they explained the rationale for not committing to them.<br />
For more information on specific "non-deliverables" please contact the Social Reporting Manager.*<br />
G1. EXTERNAL STAKEHOLDERS<br />
24<br />
A. YOUTH SMOKING PREVENTION<br />
Stakeholder expectation summary<br />
Stakeholders wanted BAT Operations to<br />
continue with the expansion of our YSP<br />
campaign using clearer communication<br />
on the dangers of smoking, parental<br />
involvement and ensuring greater<br />
societal awareness.<br />
Our view:<br />
Our position is absolutely clear:<br />
• Smoking is risky and it should only<br />
be an informed adult choice<br />
• We do not want children to smoke.<br />
Underage smoking is a real concern,<br />
that needs to be tackled by society as<br />
a whole, not just by the tobacco a a<br />
* <strong>British</strong> <strong>American</strong> Tobacco Zimbabwe, 1 Manchester Road, P O Box ST 98, Southerton, HARARE.<br />
Telephone: +263 (4) 621170-84, +263-11-206342, Fax: +263 (4) 661934 E-mail: Innocent_Mtize@bat.com
a whole, not just by the tabacco<br />
industry<br />
• However, we are determined to play<br />
our part and are willing to work with<br />
other interested parties and the<br />
Government in efforts to further<br />
develop and expand the YSP<br />
campaign.<br />
• We will consider supporting<br />
programmes that help educators and<br />
parents to teach children to exercise<br />
responsibility and independence and<br />
to resist peer pressure<br />
What we are able to deliver now<br />
• Expand the sponsorship of the<br />
"Under 18, No Cigarettes" campaign<br />
• Assist the Government to<br />
communicate the Zimbabwean law<br />
on underage smoking among<br />
retailers<br />
• Expand the Retail Access Programme<br />
to include rural retail outlets. The<br />
campaign materials will be<br />
supported by the use of two<br />
vernacular languages<br />
• As part of our efforts to increase the<br />
impact of the YSP campaign together<br />
with the MHCW, we will seek<br />
partnerships with other interested<br />
parties such as Zimbabwe Republic<br />
Police, Ministry of Education, Sport<br />
and Culture and United Nations<br />
Children's Fund (UNICEF)<br />
Performance Indicators<br />
• Expand YSP retail access campaign<br />
to a total of 8000 outlets<br />
• Campaign materials to include<br />
vernacular languages (Shona and<br />
Ndebele)<br />
• Provide evidence of efforts to seek<br />
partnerships in YSP education<br />
campaigns<br />
• Record number of media briefs with<br />
local organisations<br />
• Comply with the S.I. 264 of 2002<br />
Public Health (Control of Tobacco)<br />
Regulations<br />
What we are not able to deliver<br />
now<br />
• Reduce our investments in marketing<br />
activities to adult smokers<br />
• Comprehensive media campaign<br />
through a musical album<br />
• Sponsor activities through schools<br />
and sports personalities<br />
• Integrate HIV/AIDS into existing YSP<br />
programmes<br />
• Invest more in under-18 sports<br />
go to<br />
www.bat.com<br />
G<br />
The<br />
outcome of<br />
the AA1000<br />
Dialogue-<br />
Based<br />
Process<br />
25
THE OUTCOME OF THE<br />
AA1000 DIALOGUE-<br />
BASED PROCESS<br />
G1. EXTERNAL STAKEHOLDERS CONTINUED<br />
26<br />
THE COURTESY OF CHOICE CAMPAIGN<br />
Christopher Mushowe, the Hon.<br />
Deputy Minister of Transport and<br />
Communication, cuts the ribbon to<br />
mark the official opening of the<br />
smoking lounge at the Harare<br />
International Airport<br />
Meikles Hotel, one of<br />
the hospitality outlets<br />
participating in the<br />
Courtesy of Choice<br />
campaign<br />
The continuation of the Courtesy of Choice campaign was<br />
put on hold at the end of 2002 following the passing of<br />
the new tobacco control regulations. Among other<br />
things, the legislation now regulates smoking in public<br />
places; therefore it was felt prudent to defer the roll-out<br />
of the campaign. We look forward to the resumption of<br />
the campaign in the third quarter of 2003.
STATU<strong>TO</strong>RY INSTRUMENT 264 OF 2002<br />
Peter Parirewa, CORA<br />
Manager, BAT<br />
Operations<br />
explaining health<br />
warning clauses to<br />
external stakeholders<br />
during a Dialogue<br />
Two session<br />
Following two years of negotiations<br />
between the MHCW and the tobacco<br />
industry, the Government of Zimbabwe<br />
finally gazetted S.I. 264 of 2002 Public<br />
Health (Control of Tobacco) Regulations<br />
which is aimed at controlling smoking in<br />
public places, on public transport and<br />
prohibiting trading of tobacco to or by<br />
children. The S.I. also brought in a new<br />
health warning clause – "Danger:<br />
Smoking is harmful to health." In<br />
addition the regulations prescribe the size<br />
of health warnings on tobacco packaging and promotional<br />
materials.<br />
We welcomed the ministry's recognition of the tobacco<br />
industry as an important stakeholder in any regulatory process<br />
that affects the industry. As a tobacco company we support<br />
sensible regulation and will continue to encourage the<br />
government "to raise the bar", thereby creating a level playing<br />
field that ensures responsible and acceptable marketing of<br />
tobacco products. Our recommendations for inclusion in the<br />
proposed S.I. were based on the global IMS endorsed by the<br />
world's three largest international tobacco manufacturing<br />
companies, namely Philip Morris, BAT and Japan Tobacco in<br />
September 2001 to ensure the responsible promotion and<br />
distribution of tobacco products.<br />
We believe fair and workable regulations are those that can<br />
help reduce the impact of smoking on public health whilst<br />
ensuring that adult smokers can continue to make informed<br />
choices about a legal product. Accordingly, our brand<br />
marketing activities to adult smokers only encourage brand<br />
loyalty. On the problem of underage smoking, a significant<br />
volume of evidence suggests that the key initiating influences<br />
are not about brand advertising, but peer pressure and family<br />
attitudes. However, we do accept that there are concerns<br />
about a potential spill-over effect.<br />
If you would like a copy of the S.I. 264 of 2002 Public Health<br />
(Control of Tobacco) Regulations please contact the Social<br />
Reporting Manager.*<br />
* <strong>British</strong> <strong>American</strong> Tobacco Zimbabwe, 1 Manchester Road, P O Box ST 98, Southerton, HARARE.<br />
Telephone: +263 (4) 621170-84, +263-11-206342, Fax: +263 (4) 661934 E-mail: Innocent_Mtize@bat.com<br />
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SOCIAL RESPONSIBILITY IN <strong>TO</strong>BACCO GROWING<br />
Over the years BAT Operations has taken the lead in encouraging social<br />
responsibility in tobacco growing promoting sustainable development in the<br />
industry. In 2001, a situational analysis revealed that whilst the ZTA had scored<br />
highly in terms of the adoption of the Integrated Crop Management guidelines<br />
and road maps, there were areas such as reduction / elimination of child labour<br />
and disposal of empty containers that required attention. Other grower bodies<br />
will be encouraged to adopt the guidelines.<br />
Integrated Crop Management and roadmaps encompass the Agronomy Best<br />
Practice guidelines which include the following:<br />
• Soil conservation / improvement and fertilisation<br />
• Protection of water resources<br />
• Integrated pest management<br />
• Farmer training<br />
• Occupational environment & safety: protect farmers' health and reduce level<br />
of hard (manual) labour<br />
• Seed quality assurance<br />
The agronomy guidelines coupled with roadmaps are designed to help tobacco<br />
farmers to continuously assess their programmes.<br />
Although the issue of eliminating child labour in tobacco growing areas falls<br />
under the International labour Organisation (ILO) Codes of Practice efforts are<br />
being made by our Leaf Operations to support the implementation of social<br />
responsibility programmes that relate to tobacco production. We support the<br />
Zimbabwe's education policy, which seeks to ensure that every child has a right<br />
to go to school once they reach school going age and also supports labour<br />
relations regulations that do not permit the employment of children.<br />
If you would like a copy of the Agronomy Best Practice Guidelines and Integrated<br />
Crop Management roadmaps please contact our Social Reporting Manager.*<br />
* <strong>British</strong> <strong>American</strong> Tobacco Zimbabwe, 1 Manchester Road, P O Box ST 98, Southerton, HARARE.<br />
Telephone: +263 (4) 621170-84, +263-11-206342, Fax: +263 (4) 661934 E-mail: Innocent_Mtize@bat.com
B. GROWER AND AGRARIAN<br />
SUPPORT<br />
Stakeholder expectation summary<br />
The issue of the viability of the tobacco<br />
industry and the need to support<br />
farmers by improving road networks<br />
inputs supply and the need for an<br />
acceptable marketing system in a<br />
proactive but apolitical way, was<br />
topical.<br />
Our View<br />
There are a number of tobacco growing<br />
issues that require policy reforms to<br />
ensure industry viability. As one of the<br />
key players in the industry we will<br />
continue to play our part in assisting the<br />
industry and other stakeholders to come<br />
to an agreement on the way forward for<br />
tobacco growing in Zimbabwe.<br />
Investment of all key stakeholders will<br />
be paramount in addressing the issues<br />
at hand.<br />
What we are able to deliver now<br />
• Continue with the social<br />
responsibility in tobacco growing<br />
policies that have been adopted as<br />
best practice by the ZTA<br />
• Support small-scale tobacco growers<br />
through the farmers Development<br />
Trust (FDT)<br />
• Report on activities of the recently<br />
instituted Child Labour Task Force.<br />
Performance Indicators<br />
• Expansion of BAT Agronomy Best<br />
Practice Guidelines and road maps to<br />
other grower bodies<br />
• Continue with the annual Small-<br />
Scale Tobacco Grower of the Year<br />
Award competition in partnership<br />
with FDT<br />
• Canvass the Media and grower<br />
bodies to increase awareness of the<br />
problem of child labour<br />
What we are not able to deliver<br />
now<br />
• Support the grower base through<br />
the establishment of a revolving fund<br />
• Improve road networks in the newly<br />
resettled areas<br />
C. NATIONAL POLICY REFORMS<br />
Stakeholder expectation summary<br />
There was a strong recommendation for<br />
BAT Operations to lobby for a change in<br />
Zimbabwe's tobacco marketing system.<br />
Stakeholders recommended a partial<br />
deregulation of the system that is to do<br />
away with the current auction system<br />
and move more towards a contract<br />
growing/direct marketing system. There<br />
was also a call to align positions with<br />
other tobacco industry stakeholders<br />
with regard to the implications of the<br />
Framework Convention on Tobacco<br />
Control (FCTC).<br />
Our view<br />
We cannot commit to changing the<br />
regulatory structure governing tobacco<br />
marketing, but we will continue to play<br />
our part in an effort to promote sensible<br />
regulation and to safeguard the future<br />
of tobacco growing in Zimbabwe.<br />
What we are able to deliver now<br />
• Explore the contract growing/direct<br />
marketing system production models<br />
• Continue making our views of the<br />
FCTC known<br />
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Performance Indicators<br />
• Report back to stakeholders on<br />
findings of the model exploration.<br />
While we can come up with a model<br />
implementation it is dependent on<br />
policy reform<br />
• Appointment of a consultant to<br />
represent the industry in Geneva at<br />
the FCTC negotiation conference<br />
What we are not able to deliver<br />
now<br />
• Support for growers nationally and<br />
regionally<br />
• Regulate and legitimise cross-border<br />
exports of local cigarettes to<br />
neighbouring countries by smaller<br />
players<br />
Journalists from The Herald<br />
during the 2003 media brief<br />
Stakeholders deliberating at the<br />
Cycle Two Dialogue One session<br />
• Revamp the institutional<br />
arrangement policy and the legal<br />
framework such as the auction floor<br />
system<br />
D. CORPORATE CONDUCT AND<br />
ACCOUNTABILITY<br />
Stakeholder expectation summary<br />
Stakeholders listed a number of<br />
expectations, which included a host of<br />
issues from responsible marketing,<br />
product availability, continuation of the<br />
social reporting process and to raising<br />
public awareness on the dangers of<br />
smoking.
TPZ Staff listen attentively during the rollout<br />
of RPRW by Innocent Mtize, Social<br />
Reporting Manager, BAT Operations<br />
Our view<br />
• Smoking is an adult choice and<br />
those under the age of 18<br />
should not smoke<br />
• We believe that that the product we<br />
manufacture is a risk to health, which<br />
makes it important that we market it<br />
responsibly<br />
• Our product is legal, no government<br />
or credible campaigners seek its<br />
prohibition<br />
• We acknowledge that our business<br />
entails significant responsibilities and<br />
we are working hard to demonstrate<br />
that we are carrying them out<br />
• In embarking on a social reporting<br />
process, BAT Operations have not<br />
only committed to Social, Ethical &<br />
Environmental Auditing &<br />
Accounting (VeriSeaar), but by<br />
adopting the AA1000 standard have<br />
committed to continued stakeholder<br />
engagement with respect to its social<br />
and ethical performance<br />
What we are able to deliver now<br />
• Continue with public education on<br />
the dangers of smoking<br />
• Publicise the social reporting process<br />
as stakeholders felt that we should<br />
be proud of it and encourage other<br />
companies to emulate<br />
• Promote BAT Operations’<br />
accountability and transparency<br />
• Enhance company reputation<br />
• Address smokers' issues by<br />
continuing to raise awareness on the<br />
dangers of smoking<br />
• Extend efforts to ensure product<br />
availability<br />
• Highlight BAT Operations'<br />
involvement in Zimbabwe's HIV/AIDS<br />
awareness programme<br />
Performance Indicators<br />
Smoking & Health<br />
• Engage journalists in media briefs as<br />
part of efforts to raise awareness on<br />
the risks of smoking. We will keep a<br />
record of the number of media<br />
contact sessions<br />
• The RPRW booklet on smoking and<br />
health issues will continue to be<br />
distributed to all internal and<br />
selected external stakeholders.<br />
Records of copies distributed will be<br />
kept<br />
RPRW booklet<br />
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32<br />
• Continue to promote use of the BAT<br />
website (www.bat.com) as a source<br />
of information. The website address<br />
is highlighted on company<br />
publications such as financial<br />
reports, invitation cards, internal<br />
magazines and business cards<br />
Social Reporting<br />
• Increase the distribution of Report to<br />
Society to include Members of<br />
Parliament, councils and other<br />
companies. A distribution list of<br />
number of reports distributed and<br />
any responses received will be kept<br />
• Continuation of media briefs with<br />
media organisations to help raise<br />
awareness on smoking and health<br />
issues<br />
• Publish a summarised report in the<br />
media as part of efforts to raise<br />
awareness of the continued social<br />
reporting process as part of efforts<br />
towards ensuring accountability and<br />
transparency<br />
Product Availability<br />
• As part of efforts to improve<br />
availability of local cigarettes, we will<br />
continue to distribute directly to<br />
retailers<br />
• Constantly engage the relevant<br />
authorities such as the Ministry of<br />
Industry and International Trade and<br />
the Zimbabwe Revenue Authority to<br />
find ways of reducing or eliminating<br />
illicit trade of cigarettes<br />
Ill-health Management Programmes<br />
• Promote the BAT Operations<br />
HIV/AIDS programme to stakeholders<br />
New health<br />
warning clause<br />
on cigarette<br />
pack<br />
• Focus on<br />
behavioural<br />
change<br />
among<br />
employees<br />
and<br />
continue to offer access to free<br />
medical treatment at the two clinics<br />
situated at our premises<br />
• Continue to be an active member of<br />
ZBCA and share our experiences and<br />
learnings in the fight against the<br />
scurge<br />
• As part of ensuring compliance with<br />
the GRIs, the EH&S department<br />
monitors on a monthly basis efforts<br />
towards maintaining a safe and<br />
healthy working environment<br />
What we are not able to deliver<br />
now<br />
• Fund specific health research in<br />
Zimbabwe<br />
• Reduce corporate profile in the<br />
community. Some stakeholders felt<br />
that we should stop advertising<br />
altogether and maintain a low profile<br />
in the market.<br />
• Initiate an industry approach to CSR<br />
similar to that of BAT Operations<br />
For a full list of external stakeholder<br />
organisations who participated in Cycle<br />
Two dialogue sessions please refer to<br />
Appendix 1.
BAT OPERATIONS’ EFFORTS IN THE FIGHT AGAINST HIV/AIDS<br />
The HIV/AIDS programme was introduced in 1991 through staff training, dramas<br />
and quiz competitions. The high level of HIV/AIDS infection in Zimbabwe among<br />
the adult working group continues to pose a threat to the health of the nation<br />
and also to the productivity of the industrial sector. Through networking with<br />
expert organisations BAT Operations added a new dimension when it launched<br />
the peer educator programme in 1996. The first group of 20 peer educators<br />
received training from National Council of Transport Industry, Family Health<br />
International, Population Services International and the MHCW.<br />
Soon after a high profile launch of the programme, the newly trained peer<br />
educators embarked on a number of activities. These included condom<br />
distribution, dissemination of information, weekly meetings, quarterly training<br />
sessions and the introduction of HIV/AIDS awareness games. Peer educators were<br />
also trained in handling other preventable and contagious medical conditions<br />
without losing focus on HIV/AIDS.<br />
The programme aimed at establishing a sound knowledge base and a high level<br />
of understanding of HIV/AIDS among the entire workforce; also facilitates the<br />
provision of medical counselling to the affected and those living with HIV/AIDS.<br />
The introduction of management peer educators in 2002 will help in sensitising<br />
all levels of employees to the pandemic and related issues.<br />
The implementation of the awareness programme has resulted in employees<br />
changing their sexual behaviour and adopting healthy living standards. According<br />
to the company nurse the company began to realise the benefits of the<br />
programme at the end of 2002 when there was a notable decrease in the annual<br />
incidence of sexually transmitted diseases and HIV/AIDS related ailments. There<br />
has also been a steady decline on retirement<br />
on medical grounds. Management<br />
commitment is crucial for the success of any<br />
awareness programme, in terms of the<br />
allocation of resources and ensuring<br />
compliance with national regulations among<br />
other things.<br />
A group of workers playing a HIV/AIDS snakes and<br />
ladders game during lunch time<br />
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An HIV/AIDS awareness<br />
programme is a worthwhile<br />
long-term investment,<br />
considering its business<br />
impact due to illness, death,<br />
recruitment and training. BAT<br />
Operations acknowledge the<br />
importance of supporting the<br />
programme and for these<br />
reasons a new staff clinic was<br />
built in 2002 as part of efforts<br />
to support the organisation’s<br />
ill-health management programme.<br />
Peer educators pose for a picture<br />
after an AIDS awareness workshop<br />
The Zimbabwe Business Council on AIDS –<br />
Partnership to fight HIV/AIDS :<br />
The success of the BAT Operations' HIV/AIDS programme resulted in the<br />
company embarking on a concerted effort to share its experiences in fighting this<br />
pandemic. Stakeholders challenged the organisation to share the benefits of the<br />
programme. The opportunity came about when the National AIDS Council (NAC)<br />
mooted the idea of forming a coalition amongst business in fighting the disease.<br />
BAT Operations seized this opportunity to become one of the founding members<br />
of the coalition now known as the ZBCA. The other founding members are Lever<br />
Brothers, Colgate-Palmolive Zimbabwe, Zimbabwe Sugar Refineries, Standard<br />
Chartered Bank Zimbabwe and Kingdom Bank. At a business meeting held at a<br />
local hotel on 20 September 2002, the NAC taskforce which initiated the project<br />
of setting up a Business Council on Aids, formally handed over to the interim<br />
committee that had been formed.<br />
The basic premise is that as an association the ZBCA’s first objective is to ensure<br />
that the founding companies and others are persuaded to participate and<br />
implement a best practice version in dealing with HIV/AIDS. Once this has been<br />
achieved, the coalition would seek ways to contribute in an open way to the<br />
community at large. The next challenge would be to seek to influence the<br />
national policy on HIV/AIDS in a proactive way. With regards to membership the<br />
coalition seeks the support of a number of high profile business executives from<br />
major companies, in order to make the ZBCA a successful and credible<br />
organisation. The objective of ZBCA is to get about 15 companies to commit to<br />
the initial programme. Once this has been achieved it would open the<br />
membership to a wider group as there would be a story to tell. The structure of<br />
ZBCA is two-tier, with a Steering Group which consists of CEOs/MDs of the<br />
companies who are committed to the organisation and its objectives and an<br />
Executive Committee comprising of Human Resources Directors of the member<br />
companies would have a work plan approved by the Steering Group.
As BAT Operations, we will continue to support efforts to fight the spread of the<br />
pandemic bearing in mind the ZBCA mission statement, which reads:<br />
"The mission of the Zimbabwe Business Council on AIDS is to prevent, control,<br />
mitigate and stop the spread and impact of HIV/AIDS at the workplace and in the<br />
community at large."<br />
E. PARTNERSHIPS AND ALLIANCES<br />
Stakeholder expectation summary<br />
Stakeholders felt the company should<br />
work together with NGOs, retailers,<br />
schools and the Government specifically<br />
the MHCW.<br />
Our view<br />
It is BAT Operations aim to seek<br />
partnerships that contribute to the<br />
society in which it operates. Accordingly<br />
the company has formed partnerships<br />
in initiatives such as biodiversity,<br />
HIV/AIDS and eliminating child labour in<br />
tobacco growing.<br />
What we are able to deliver now<br />
• Form strategic alliances in the fight<br />
against HIV/AIDS<br />
• Support efforts to form strategic<br />
partnerships on YSP programmes<br />
• Encourage more corporates to get<br />
involved in social reporting<br />
Performance Indicators<br />
Strategic alliances<br />
• Seek partnerships in our efforts to<br />
transform the YSP programme into<br />
an educational campaign<br />
• As a founding member of ZBCA, we<br />
will continue to share our<br />
Richard Linnett, General Manager, TPZ<br />
(third from right) explaining the company’s<br />
operations to MPs during a factory tour<br />
experiences and assist the<br />
organisation in recruiting new<br />
members<br />
• Participate in local clean-ups<br />
• Engage the Government in various<br />
initiatives the company has<br />
embarked on<br />
• Continue with top-level briefings and<br />
familiarisation factory visits<br />
• Find platforms to share with<br />
interested parties<br />
More organisations getting involved in<br />
social reporting:<br />
Expansion of the distribution of our<br />
2002-2003 Report to Society to include<br />
Members of Parliament, companies,<br />
councils and any organisations or<br />
individuals suggested by stakeholders<br />
What we are not able to deliver<br />
now<br />
• At the moment we are not in a<br />
position to set-up community banks<br />
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• Tackle the issue of HIV/AIDS orphans<br />
in partnership with local NGO's<br />
• Alleviate poverty through support of<br />
economic programmes<br />
• Support agricultural graduates who<br />
have been resettled on farms<br />
• Fund small-scale agriculture as per<br />
the Brazilian model. The current<br />
marketing system does not allow<br />
organisations such as BAT<br />
Operations to adopt the Brazilian<br />
type of contract growing scheme<br />
F. THE ENVIRONMENT<br />
Stakeholder expectation summary<br />
On the environment, issues raised<br />
related to agricultural practice including<br />
water, energy use, product life cycle<br />
and sustainability.<br />
Our view<br />
BAT Operations are committed to the<br />
principles of sustainable development<br />
and to achieving world-class standards.<br />
Our environmental approach stems<br />
from the recognition that almost<br />
everything we handle – tobacco, paper<br />
and board – is grown in the natural<br />
environment. The company supports<br />
initiatives such as the Agronomy Best<br />
Practice Guidelines and the conservation<br />
of biological diversity.<br />
What we are able to deliver now<br />
• Continue to support ethical crop<br />
production and good agricultural<br />
practices<br />
• Promote efforts to reduce pollution<br />
• Perpetuate environmental initiatives<br />
involved with energy, product life<br />
cycle, sustainable ecosystems<br />
Performance Indicators<br />
Good agricultural practices and ethical<br />
crop production<br />
• Expand the adoption BAT social<br />
responsibility in tobacco growing<br />
guidelines and road maps to other<br />
grower bodies<br />
Water usage<br />
• Continue to measure actual versus<br />
targets using GRIs and EH&S<br />
initiatives. For more information on<br />
2001-2003 GRIs please refer to<br />
Appendix 2<br />
The environment<br />
• Produce EH&S report twice a year<br />
• Maintain the ISO14001 standards<br />
within Leaf Operations<br />
• Promote BAT Biodiversity<br />
Partnerships<br />
What we are not able to deliver<br />
now<br />
None<br />
G. INTERNAL POLICIES REFORM<br />
Stakeholder expectation summary<br />
Stakeholders felt that the company<br />
should review its board composition<br />
and widen its mission statement beyond<br />
"smokers".<br />
Our view<br />
Stakeholders' expectations on policy<br />
changes require wider consultation and<br />
approvals at various levels and therefore<br />
cannot be done as quickly as stakeholders<br />
would like.<br />
What we are able to deliver now<br />
and performance indicators<br />
• Balanced board – this deliverable<br />
from 2002 saw BAT Zimbabwe
eviewing the balance of the board<br />
and as a result of the exercise two<br />
additional non-executive directors<br />
were appointed<br />
What we could not deliver now<br />
Stakeholders wanted BAT Zimbabwe to<br />
revise its mission statement beyond<br />
BIODIVERSITY – THE ZAMBEZI BASIN INITIATIVE<br />
smokers. At the moment this is a nondeliverable<br />
as the current mission<br />
statement- "Our Mission is to satisfy the<br />
needs of all smokers through high<br />
quality tobacco products while meeting<br />
all stakeholders' reasonable<br />
expectations," will remain unchanged.<br />
Our business can impact biodiversity and as part of our<br />
commitment to sustainable development and environmental<br />
protection, we are developing our role in biodiversity management<br />
and conservation. Fundamental to the concept of sustainable<br />
development is the understanding that no single sector or entity can<br />
achieve sustainability in isolation. Governments, NGOs, the<br />
corporate sector and civil society need to work together in<br />
partnership to enable sustainable development to take place.<br />
Participating in the Zambezi Basin Initiative (ZBI) is part of BAT's effort to promote<br />
biodiversity across the countries in which we operate. The objective of the project<br />
is to build the capacity of the Zambezi Society and Biodiversity Foundation for<br />
Africa through the development of ZBI. This also includes the establishing of a ZBI<br />
co-ordination capacity within the Zambezi Society, assisting in donor liaison and<br />
fund raising, promoting regional collaboration and the involvement of the private<br />
sector. The project located in Zimbabwe and the other seven Zambezi basin<br />
countries initially started in 2001 and is earmarked to end in 2004.<br />
The ZBI is well institutionalised within the operations of both local partners as an<br />
"umbrella" for a range of discrete interrelated activities designed to enhance<br />
biodiversity conservation within the Zambezi Basin. The capacity of local partners<br />
to undertake both biodiversity research and conservation has developed<br />
considerably since the inception of this project. The finalisation of an initial<br />
evaluation of biodiversity within parts of Tete province, Mozambique, represented<br />
a major step towards the completion of work within the ZBI pilot area, which<br />
includes part of Mozambique, Zimbabwe and Zambia. Diversity within the<br />
Zimbabwean context is relatively well<br />
known and requires only minor work to<br />
complete. A preliminary evaluation of the<br />
Zambian component has been carried out<br />
from existing remote imagery but requires<br />
ground-truthing.<br />
Cahora Bassa flora<br />
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A. WORKPLACE<br />
(i) Employee Welfare<br />
Stakeholder expectation summary<br />
Expectations included such issues as<br />
environmental and health risks,<br />
pollution control, empowerment,<br />
improved funeral policy, team-building,<br />
benefits and incentives.<br />
Our view<br />
BAT Operations believe that at the heart<br />
of our business is our people. Drawn<br />
from diverse backgrounds and cultures,<br />
our people are the cornerstone of our<br />
success and growth.<br />
What we are able to deliver now<br />
• Sporting facilities<br />
• Transparency in housing loans<br />
• Education bursaries<br />
• Specialist employment<br />
• Good corporate behaviour<br />
• Empower line management<br />
• Environment risk assessment<br />
• Employee health support<br />
• Team-building - non-work<br />
interaction<br />
• Pollution control<br />
Performance Indicators<br />
Team-building<br />
• As part of efforts to foster<br />
team spirit among all levels<br />
Leon Reed, Chief Executive Officer,<br />
Leaf Operations (second from left)<br />
presents a cheque to various social<br />
welfare organisations at the<br />
charity golf day cocktail party<br />
of employees, we will encourage<br />
them to take part in non-work<br />
interaction activities that will be<br />
organised by the company. These will<br />
include activities such as sports days<br />
and team-building exercises that are<br />
company-wide and cross functional<br />
Environmental & Health Assessments<br />
• There will be regular EH&S<br />
assessments and reports will be<br />
produced internally at least twice a<br />
year. These will measure actual<br />
against targets set by the responsible<br />
departments. This is also part of our<br />
GRIs, where we report on such<br />
things as dust emissions, number of<br />
injuries and accidents including<br />
fatalities that might occur at the<br />
workplace<br />
Ill-health Management programmes<br />
• All internal stakeholders have access<br />
to the staff clinic and medical cover<br />
will continue to be provided for<br />
permanent employees. The number<br />
of man-day illness prevented will<br />
also be measured as efforts to<br />
improve our ill-health management<br />
programme. Adequate protective<br />
clothing will be provided at all times<br />
and an issues register will be kept.
Team leaders have a responsibility to<br />
ensure that their members wear<br />
protective clothing through regular<br />
inspection.<br />
Female condoms will also be readily<br />
available either at the reception or at<br />
staff clinics. Voluntary Counselling<br />
and Testing (VCT) will be offered to<br />
all employees as part of the<br />
companies' efforts to raise awareness<br />
on HIV/AIDS and encourage<br />
behavioural change<br />
Empower line management<br />
• This is part of our change<br />
management process. As part of<br />
empowerment, line managers will<br />
disseminate information on a regular<br />
basis on such issues as promotions,<br />
disciplinary actions and will<br />
communicate salary increments<br />
when they occur. Human resources<br />
policies are easily accessible on the<br />
HR database but for those employees<br />
who do not have PCs, hard copy will<br />
be available from line manager<br />
Good Corporate Behaviour<br />
• Publicise our social reporting process<br />
in the media to create awareness on<br />
it and to encourage other multinationals<br />
to emulate the process.<br />
• The corporate brand awareness<br />
campaign will be embarked on as<br />
part of our efforts to raise our<br />
Kennedy Mandevhani, Managing<br />
Director, BAT Zimbabwe (right), making<br />
a donation to anti Hi-jack Trust<br />
chairperson Mary Van Heerden<br />
corporate profile and talk about the<br />
good things we are doing through<br />
our CSR programme.<br />
What we are not able to deliver<br />
now<br />
• Standardised working conditions<br />
• Have uniform remuneration as<br />
salaries are based on individual<br />
employment contracts<br />
• Offer full medical cover to all<br />
employees including seasonals. The<br />
company offers clinical services for<br />
those who are not provided with full<br />
medical cover<br />
(ii) Total Quality Management<br />
Stakeholder expectation summary<br />
They ranged from the need for paying<br />
suppliers promptly to better internal<br />
controls to combat fraud and theft,<br />
supporting the idea of ISO 14001<br />
compliance and tougher monitoring of<br />
its impact.<br />
What we are able to deliver now<br />
• Continue to monitor the<br />
environmental impact of our<br />
operations and efforts to improve<br />
• Aim for continuous quality<br />
management<br />
• Comply with ISO 9001 and 14001<br />
and apply tougher monitoring of<br />
impact within Leaf Operations<br />
• Encourage cleanliness and product<br />
integrity<br />
G<br />
The<br />
outcome of<br />
the AA1000<br />
Dialogue-<br />
Based<br />
Process<br />
39
THE OUTCOME OF THE<br />
AA1000 DIALOGUE-<br />
BASED PROCESS<br />
G2. INTERNAL STAKEHOLDERS CONTINUED<br />
40<br />
• Promote value added security and<br />
seek to curb thefts<br />
• Improve controls and accountability<br />
Performance Indicators<br />
• Improve supplier payment –<br />
suppliers will be paid on time<br />
according to terms and conditions of<br />
contract. Foreign suppliers will be<br />
paid subject to the availability of<br />
foreign currency<br />
• TQM – aim to achieve MRPII class "B"<br />
rating at BAT Zimbabwe by end of<br />
2003<br />
• Achieve Class "A" Tigris rating at BAT<br />
Zimbabwe by end of 2003<br />
• Maintain ISO 9001 and 14001<br />
compliance at Leaf Operations<br />
• Promote the idea of TQM to<br />
employees and give feedback on<br />
the TQM audit results<br />
• Review and put appropriate<br />
decision-making processes to<br />
improve TQM<br />
MRPII team members pose for a<br />
photograph after receiving MRPII Class<br />
“C” certificate<br />
Leaf buyers checking the quality of tobacco<br />
in the Leaf Operations Quality Room<br />
• Work hard to reduce/eliminate losses<br />
by the organisation through fraud,<br />
theft, wastage etc. by conducting<br />
regular audits<br />
• Improve security controls through<br />
taking appropriate action against<br />
offenders and putting in place a<br />
service level agreement with the<br />
security contractor and review<br />
security contracts and systems<br />
• Play our part in environmental<br />
management by measuring and<br />
reducing things such as dust emissions<br />
and effluent disposal. As part of GRIs<br />
and EH&S controls we will report on<br />
actuals versus targets. We will continue<br />
to encourage other grower bodies to<br />
adopt good agricultural practices<br />
through our recommended agronomy<br />
practices
What we could not deliver now<br />
None<br />
(iii) Internal Communication and<br />
Empowerment<br />
Stakeholder expectation summary<br />
Issues covered were local feedback on<br />
incentives, empowerment and improved<br />
internal communication<br />
What we are able to deliver now<br />
• Improve our internal communication<br />
• Counter negative publicity<br />
• Encourage closer working relations<br />
between management and nonmanagement<br />
Performance Indicators<br />
• Continue with staff briefings that are<br />
held quarterly internally at BAT<br />
Zimbabwe and on a monthly basis at<br />
Leaf Operations. These are aimed at<br />
keeping employees better informed<br />
and fostering good working relations<br />
among all employees<br />
• Improve visibility of senior managers<br />
in staff meetings and during factory<br />
visits<br />
• Seek to redress merger fallout.<br />
Employees felt that there were still<br />
some individuals who were still<br />
ISO team members proudly<br />
display their certificates at the<br />
award ceremony<br />
operating as Rothmans or old BAT<br />
Zimbabwe employees. This redress will<br />
be part of change management<br />
initiatives<br />
• Keep internal stakeholders updated<br />
of any developments that affect<br />
taxation on their incomes<br />
• BAT Operations "Your Voice" action<br />
plan will seek to foster teamwork<br />
amongst all employees<br />
• Continue with communication and<br />
feedback initiatives by management<br />
such as social reporting<br />
• Encourage informal meetings<br />
amongst all levels of employees<br />
What we could not deliver now<br />
• Participation by internal stakeholders<br />
in policymaking: It is management's<br />
job to run the business in the most<br />
effective and efficient manner<br />
possible. Whilst management policies<br />
are not negotiable issues, all internal<br />
stakeholders' inputs are welcome to<br />
improve our business. In various fora<br />
employees are given an opportunity<br />
to discuss proposed policies and to<br />
submit their proposals regarding<br />
policy or otherwise<br />
G<br />
The<br />
outcome of<br />
the AA1000<br />
Dialogue-<br />
Based<br />
Process<br />
41
THE OUTCOME OF THE<br />
AA1000 DIALOGUE-<br />
BASED PROCESS<br />
G2. INTERNAL STAKEHOLDERS CONTINUED<br />
42<br />
• Ensure autonomous management:<br />
As an international company, there<br />
are global policies that must be<br />
followed. This is one of the measures<br />
of working for an international<br />
company. However, one of our<br />
guiding principles is "Freedom<br />
through Responsibility", which<br />
STAFF BRIEFINGS<br />
states, "we believe decisions should be<br />
pushed down the organisations to the<br />
appropriate level, as close to the<br />
consumer as possible, and decision<br />
takers should accept responsibility for<br />
the way that they affect our<br />
stakeholders"<br />
BAT Zimbabwe<br />
employees at the<br />
launch of the 2002<br />
staff briefings<br />
BAT Operations started<br />
their staff briefings in<br />
2002. The objective of the<br />
staff briefings is to<br />
communicate with all<br />
employees by keeping<br />
them updated about issues<br />
relating to the performance of the company and those issues impacting on<br />
the business. The sessions are part of BAT Operations' internal<br />
communication initiatives that aim at creating a two-way communication<br />
system between management and internal stakeholders at all levels. The<br />
events afford employees an opportunity to share ideas on how continued<br />
improvement can be assured within BAT Operations. Two formats are used:<br />
BAT Zimbabwe conducts road shows on a quarterly basis with those at Leaf<br />
Operations being done on a monthly<br />
basis firstly with departmental heads<br />
who in turn cascade the same<br />
information to members of their<br />
respective departments. In both cases<br />
the briefings are followed by a<br />
question and answer session.<br />
Bernard Gona, Human Resources Director,<br />
BAT Operations, during May 2003 staff<br />
briefing
ISO CERTIFICATION – LEAF OPERATIONS<br />
The of ISO Certification ceremony by the Registrars, Anglo Japanese <strong>American</strong> (AJA) of<br />
South Africa, to ELT and TPZ was held at the Royal Harare Golf Club on 27 February<br />
2003. The certification is very important to the two companies as it recognises that<br />
highly organised operating standards and procedures exist in their structures and that<br />
they are working satisfactorily. The certification demonstrates to stakeholders that the<br />
two companies are professional in using proven methods to achieve business growth,<br />
not only through utilisation of a recognised production and sales standards but also<br />
ensuring a sound environmental platform. For this reason the two companies opted<br />
for an Integrated Management System, which consisted of the sales and production<br />
standard of ISO 9001 coupled with the environmental standard of ISO 14001.<br />
Continuous improvement is a significant feature of ISO, which suits Leaf Operations’<br />
business goals and is compatible with the way it operates. The ISO certification is also<br />
an official recognition of TPZ's devotion to their mission statement- "Quality and<br />
Service Excellence is our promise".<br />
The ISO implementation process began some 18 months, before the audit by AJA in<br />
August 2002. This period saw a considerable improvement in various areas as the ISO<br />
standards were being implemented. Among them there were:<br />
• Processed product conformity increased considerably over the previous year to<br />
99,2%<br />
• Direct feedback from customer questionnaires showed an improvement in all<br />
aspects of customer service<br />
• Waste generation was reduced by 37,5% or by almost 3000 tons<br />
• 100% of tobacco waste in the form of dust is now commercially recycled into<br />
organic fertilizer<br />
• 95% of total waste is recycled<br />
• Dust exposure levels have been reduced by more than half and are now within the<br />
legal limits. This was the result of an investment of over US$1million in the TPZ<br />
dust extraction system. Dust emissions to the environment also reduced<br />
significantly to comply with BAT global standards<br />
• In an effort to curb machine<br />
noise in the factory several<br />
engineering solutions are<br />
being implemented<br />
Leaf Operations ISO team at the<br />
certification ceremony<br />
G<br />
The<br />
outcome of<br />
the AA1000<br />
Dialogue-<br />
Based<br />
Process<br />
43
THE OUTCOME OF THE<br />
AA1000 DIALOGUE-<br />
BASED PROCESS<br />
G2. INTERNAL STAKEHOLDERS CONTINUED<br />
44<br />
B. BUSINESS CONTINUITY<br />
Stakeholder Expectation Summary<br />
It was felt that to ensure business<br />
continuity the group in Zimbabwe<br />
should address the issues of support<br />
for growers and product availability.<br />
What we are able to deliver now<br />
• Local farming activities will<br />
continue to be supported<br />
wherever we can<br />
Performance indicators<br />
• Take the lead and play our part in<br />
the development of an enabling<br />
sustainable tobacco growing<br />
environment<br />
What we could not deliver now<br />
• Produce enough cigarettes: The nonavailability<br />
of some of our brands<br />
locally is due to price and tax disparities<br />
within the region resulting in outflows<br />
into neighbouring countries. It is an<br />
issue of concern to us and we will<br />
continue to work with relevant<br />
authorities in addressing this issue.<br />
• Avoid the use of contractors: In an<br />
effort to concentrate on our core<br />
business we out source the supply of<br />
peripheral activities in the supply<br />
chain<br />
C. EXTERNAL COMMUNICATION<br />
Stakeholder Expectation Summary<br />
Internal stakeholders urged the<br />
company to support issues which<br />
included clearer health warnings on<br />
cigarette packs, clarification of<br />
controversial issues, creation of<br />
partnerships with NGOs and<br />
Government to linking with lawmakers<br />
on the YSP campaign<br />
2002 BAT Zimbabwe Small Scale Tobacco<br />
Grower of the Year Award winner, Ivy Maseko,<br />
proudly displays her trophy after the<br />
presentation ceremony held at Harare Club<br />
Our view<br />
• We acknowledge that our business<br />
entails significant responsibilities and<br />
we are working hard to "walk our<br />
talk"<br />
• Social reporting is one of the<br />
initiatives we have embarked on to<br />
allow continued stakeholder<br />
engagement with respect to our<br />
social and ethical performance<br />
What we are able to deliver now<br />
• Link with lawmakers on "Under 18,<br />
No Cigarettes" campaign<br />
• Raise awareness of YSP retail access<br />
campaign<br />
• Seek partnerships with NGOs in<br />
areas such as HIV/AIDS awareness<br />
and environmental issues<br />
• Strengthen relations with<br />
government<br />
• Clarify controversial issues
• Enhance external communication<br />
• Ensure product availability<br />
• Have clearer health warnings on<br />
cigarette packs<br />
Performance Indicators<br />
Clarifying controversial issues – we will<br />
conduct employee and media briefs and<br />
issue press releases where appropriate<br />
External communication – as previously<br />
mentioned we will continue to conduct<br />
top level briefs with the relevant<br />
Government ministries and public<br />
health authorities, familiarisation tours<br />
for stakeholders and seek appropriate<br />
partnerships in various initiatives<br />
Health warnings on cigarette packs are<br />
regulated by the S.I. but the customer<br />
information shown below will be on all<br />
cigarette packs<br />
CUS<strong>TO</strong>MER SATISFACTION<br />
E-mail address: bat@africaonline.co.zw<br />
Toll free number: 0800 4601<br />
Postal Address:<br />
<strong>British</strong> <strong>American</strong> Tobacco Zimbabwe,<br />
P.O. Box ST 98, Southerton, Harare<br />
What we could not deliver now<br />
None<br />
Simukai Munjanganja (left), Head of<br />
CORA, Legal and Security, BAT<br />
Operations, chats to retired Justice<br />
Korsah, Moderator, during a Dialogue<br />
Two session break<br />
D. COMMUNITY SERVICE<br />
Stakeholder Expectation Summary<br />
This was raised as a separate issue<br />
relating to quality donations, giving<br />
back to society and reducing the impact<br />
from withdrawing from sport.<br />
Our view<br />
BAT Operations' corporate social<br />
investment policy seeks to support<br />
selected initiatives. By limiting our focus<br />
to selected areas we can ensure its<br />
effectiveness<br />
What we are able to deliver now<br />
• Continue giving back to society<br />
• Reduce impact from withdrawing<br />
from sport<br />
• Ensure quality donations<br />
Performance Indicators<br />
• In addition to our COTY sponsorship<br />
and FDT support we will pursue new<br />
community involvement initiatives to<br />
reduce the impact of our withdrawal<br />
from sports sponsorship<br />
What we could not deliver now<br />
• Support women's sport<br />
• Financial support for programmes<br />
such as tuberculosis or adopting a<br />
hospital ward<br />
G<br />
The<br />
outcome of<br />
the AA1000<br />
Dialogue-<br />
Based<br />
Process<br />
45
H. THE WAY FORWARD<br />
A group of<br />
stakeholders during<br />
a Dialogue Two<br />
discussion<br />
46<br />
In moving forward, we hope to<br />
continue to listen and respond to the<br />
views and expectations of our<br />
stakeholders both new and old. The<br />
past two years have not been easy and<br />
we accept that embarking on a complex<br />
process such as social reporting has<br />
demanded a lot of time and patience<br />
from all our stakeholders. To this end<br />
we continue to be grateful to all our<br />
stakeholders. The format of future cycles<br />
is currently under review as we have<br />
received a lot of suggestions on how we<br />
can continue with the social reporting<br />
process in a more efficient and effective<br />
manner.<br />
In looking at the turnout of external<br />
stakeholders, in Cycle Two Dialogue<br />
Internal stakeholders at a<br />
Dialogue Two session<br />
One there were 61 external<br />
stakeholders who participated, as<br />
compared to the 39 who attended<br />
Cycle One Dialogue One representing a<br />
56,4% increase. In Cycle Two Dialogue<br />
Two, 42 stakeholders attended while in<br />
Cycle One Dialogue Two, 44<br />
stakeholders took part, indicating a<br />
4,5% decline in attendance.<br />
It is pleasing to note that our<br />
stakeholders have continued to commit<br />
themselves to the social reporting<br />
process. In reviewing the format of<br />
future cycles, we will also endeavour to<br />
keep our stakeholders interested in the<br />
social reporting process.
Some of the suggestions we<br />
are considering are:<br />
• That social reporting should<br />
move a step further to<br />
engaging individual<br />
stakeholders and building<br />
sustainable partnerships<br />
• Lengthening cycles,<br />
reducing the number of<br />
dialogue sessions and<br />
pursuing the option of oneon-one<br />
dialogue sessions<br />
• Alternative ways of collating<br />
internal stakeholder views so as to<br />
ensure inclusivity<br />
Full consultation with stakeholders will<br />
be done as we review the social<br />
reporting process.<br />
External stakeholders in a Dialogue<br />
Two session<br />
go to<br />
www.bat.com<br />
H<br />
The way<br />
forward<br />
47
I. ASSURANCE<br />
STATEMENT: BUREAU<br />
VERITAS<br />
BUREAU VERITAS ASSURANCE STATEMENT<br />
<strong>TO</strong>: BRITISH AMERICAN <strong>TO</strong>BACCO OPERATIONS IN ZIMBABWE<br />
48<br />
1. OPINION<br />
Bureau Veritas, as the appointed<br />
independent social auditor, is satisfied<br />
that the information conveyed in this,<br />
the second <strong>British</strong> <strong>American</strong> Tobacco<br />
Operations in Zimbabwe (BAT<br />
Operations) social report, covering the<br />
period July 2002 to June 2003, is<br />
reliable and free from significant error or<br />
bias.<br />
The information in the report is<br />
material, complete, relevant, and<br />
commensurate with the progress made<br />
over the two accounting and reporting<br />
cycles. The social report is<br />
understandable and accessible to those<br />
stakeholders who wish to gain a better<br />
understanding of the social and ethical<br />
issues facing BAT Operations, and how<br />
it is addressing these issues. In<br />
consultation with its stakeholders, BAT<br />
Operations has set performance<br />
indicators and targets against which its<br />
social and ethical performance is being<br />
measured. We are satisfied that BAT<br />
Operations is committed to a continued<br />
85%<br />
50%<br />
23%<br />
92.8%<br />
STAGE STAGE ONE<br />
PRE-CONSULTATION<br />
Three Stage Performance<br />
88%<br />
56%<br />
28%<br />
90.9<br />
STAGE STAGE TWO TWO<br />
STAKEHOLDER CONSULTATION<br />
process of stakeholder engagement.<br />
BAT Operations has demonstrated a<br />
continued willingness to consult with<br />
the widest range of stakeholders in the<br />
interests of improved inclusivity. The<br />
Corporate Social Responsibility<br />
Committee is ensuring that the goal of<br />
continuous improvement is achieved,<br />
and is already implementing some of<br />
the actions requested by stakeholders.<br />
1.1 AA1000 Alignment &<br />
Commentary<br />
During the social reporting cycle BAT<br />
Operations has been measured using<br />
the VeriSEAAR © tool to establish<br />
ongoing progress against the AA1000<br />
Process Standard. For ease of use,<br />
VeriSEAAR © is structured into three<br />
distinct stages: pre-dialogue, dialogue<br />
and post-dialogue. A score is attributed<br />
to each of these stages and the<br />
individual AA1000 process steps<br />
The VeriSEAAR © compliance scores for<br />
the three process stages are given in the<br />
diagram below.<br />
90%<br />
68%<br />
40%<br />
89%<br />
STAGE THREE<br />
POST-CONSULTATION<br />
ADVANCED<br />
GOOD GOOD<br />
AVERAGE AVERAGE<br />
POOR
BUREAU VERITAS ASSURANCE STATEMENT<br />
<strong>TO</strong>: BRITISH AMERICAN <strong>TO</strong>BACCO OPERATIONS IN ZIMBABWE<br />
VERIFICATION 1.1.1 Pre-dialogue STATEMENT: BRITISH AMERICAN <strong>TO</strong>BACCO<br />
49<br />
Prior to the dialogue, BAT Operations<br />
provided the identified stakeholders<br />
with information relevant to the process<br />
and feedback on cycle one<br />
performance. BAT Operations imposed<br />
no restriction on the coverage of<br />
product, operation or location. The<br />
stakeholders were advised in advance<br />
that a well-qualified and independent<br />
facilitator would oversee the<br />
engagement.<br />
1.1.2 Dialogue<br />
BAT Operations improved inclusivity by<br />
increased involvement of stakeholders<br />
participating in the second reporting cycle.<br />
BAT Operations held two dialogue sessions<br />
with each participating stakeholder group:<br />
the first to determine issues of concern and<br />
the second to develop, with stakeholder<br />
input, performance indicators against<br />
which to address such issues.<br />
The dialogue sessions were independently<br />
facilitated and there were no restrictions<br />
on issues raised, as reflected in the records<br />
taken by the independent recorder.<br />
BAT Operations maintained a welldocumented<br />
approach to stakeholder<br />
engagement and this ensured that the<br />
records generated during the process cycle<br />
process were readily available for internal<br />
and external audit.<br />
1.1.3 Post-dialogue<br />
Bureau Veritas is satisfied that BAT<br />
Operations has acknowledged and<br />
reported on the main issues of concern<br />
raised by participating stakeholders.<br />
Measurement of the progress towards<br />
achievement of indicators is taking place<br />
and results are being recorded. This report<br />
for cycle two includes feedback on<br />
indicators set during cycle one.<br />
1.1.4 Indicators based on GRI<br />
In addition to the targets and indicators set<br />
through direct stakeholder dialogue, BAT<br />
Operations has reported against<br />
approximately 50 percent of the Global<br />
Reporting Initiative core performance<br />
indicators (GRI 2002 Sustainability<br />
Reporting Guidelines). We have verified<br />
the systems for data collection and are<br />
satisfied that the data have been accurately<br />
transposed from their source to the report.<br />
1.2 Future Considerations<br />
The assurance statement in the first report<br />
listed under future considerations two<br />
areas of expectation.<br />
The first, that BAT Operations improve<br />
inclusivity, has been achieved and BAT<br />
Operations remains committed to further<br />
improve this aspect.<br />
The second was that BAT Operations<br />
increase stakeholder involvement in the<br />
setting of indicators. Again there has been<br />
an improvement and stakeholders are now<br />
more directly involved in setting indicators.<br />
Notwithstanding the need to continue<br />
with the above improvements, Bureau<br />
Veritas would like to see increased<br />
performance with regard to benchmarking<br />
against other organisations, in order to<br />
make the year-on-year comparison more<br />
informative.<br />
An increase, over time, in the level and<br />
detail of reporting against the GRI<br />
framework would provide stakeholders<br />
with additional empirical data and assist<br />
with improvement measurement.<br />
1 Bureau Veritas' VeriSEAAR � includes as part of the tool a Truncated AA1000 allowing ease of use and application<br />
during verification work. More information is available on www.bureauveritas.com.<br />
go to<br />
www.bat.com<br />
I<br />
Assurance<br />
Statement<br />
49
ASSURANCE<br />
STATEMENT: BUREAU<br />
VERITAS<br />
BUREAU VERITAS ASSURANCE STATEMENT CONTINUED<br />
50<br />
2. SCOPE<br />
The assurance has been conducted<br />
against the following objectives:<br />
- An independent review of BAT<br />
Operations implementation of AA1000.<br />
- Assurance that the information<br />
contained within the report is a true and<br />
fair reflection of BAT Operations<br />
activities and performance.<br />
Assurance covered all aspects of the<br />
AA1000 process from the company's<br />
governance structure and identification<br />
of stakeholders, through to the setting<br />
and measurement of indicators and<br />
targets.<br />
In addition to the AA1000 processrelated<br />
information within the report,<br />
BAT Operations requested that certain<br />
case studies and information sections,<br />
including GRI, be verified. The Bureau<br />
The Bureau Veritas social report<br />
assurance does not consist of verifying<br />
statements by <strong>British</strong> <strong>American</strong> Tobacco<br />
Operations in Zimbabwe of position,<br />
belief, intent or aspiration.<br />
Bureau Veritas has not been constrained<br />
by BAT Operations in the coverage of<br />
the social reporting process. Bureau<br />
Veritas has no other relationship with<br />
BAT Operations, apart from third party<br />
assurance services for its social<br />
reporting.<br />
3. METHOD<br />
Bureau Veritas used a range of proven<br />
audit techniques to establish the<br />
accuracy of information reported. The<br />
assurance covered all stages of the BAT<br />
accounting and reporting process to<br />
ensure the requirements of AA1000<br />
were subject to a consistent and<br />
appropriate degree of external audit.<br />
The methods included inspection of<br />
stakeholder mapping documents,<br />
internal and external enquiry to confirm<br />
the accuracy of information sources,<br />
review of BAT Operations internal audit<br />
reports, attendance at dialogue<br />
sessions, review of dialogue minutes<br />
and feedback from stakeholders.<br />
We have used three assurance symbols<br />
within the body of the report. These<br />
symbols are designed to highlight<br />
which areas of the report have been<br />
verified and in what way.
Assurance Symbols<br />
Process: information has been checked for accuracy and is<br />
derived using a verified AA1000 process e.g. stakeholder<br />
outputs<br />
Base Data: the facts stated or claims made have been<br />
confirmed by enquiry or other audit technique<br />
Numerical: numerical data has been checked for accuracy<br />
and/or source<br />
Region of Southern Africa and East Africa<br />
26 August 2003<br />
www.bureauveritas.com<br />
go to<br />
www.bat.com<br />
I<br />
Assurance<br />
Statement<br />
51
J. APPENDICES<br />
APPENDIX 1<br />
52<br />
LIST OF EXTERNAL STAKEHOLDER ORGANISATIONS WHO PARTICIPATED IN CYCLE<br />
TWO DIALOGUE SESSIONS<br />
List by Organisation<br />
Africa University<br />
African Banking Corporation<br />
Afro Centre for Tobacco Control<br />
Agricultural Labour Bureau<br />
Anti Drug Abuse Association of Zimbabwe<br />
Barclays Bank of Zimbabwe<br />
Burley Marketing Zimbabwe<br />
CB Richard Ellis<br />
Commercial Arbitration Centre<br />
Confederation of Zimbabwe Industries<br />
Consumer Council of Zimbabwe<br />
Cotton Company of Zimbabwe<br />
Environment Africa<br />
Farmers Development Trust<br />
General Agricultural and Plantation Workers<br />
Union of Zimbabwe<br />
Hospitality Association of Zimbabwe<br />
Hunyani Printopak<br />
International Union for the Conservation of<br />
Nature and Natural Resources<br />
Jaggers Wholesalers<br />
Lowe Lintas Advertising<br />
Medicines Control Authority of Zimbabwe<br />
Meikles Hotel<br />
Michael Hogg, Young and Rubicam<br />
Midlands State University<br />
Ministry of Education, Sport and Culture<br />
Ministry of Finance & Economic Development<br />
Ministry of Health and Child Welfare<br />
Ministry of Industry & International Trade<br />
Ministry of Public Service, Labour & Social Welfare<br />
National Aids Council<br />
National Arts Council of Zimbabwe<br />
National Association of Medical Aid Societies<br />
National Association of Non Governmental<br />
Organisations<br />
National Railways of Zimbabwe<br />
Natural Resources Board<br />
OK Zimbabwe<br />
Old Mutual<br />
Parliament of Zimbabwe<br />
PG Industries<br />
Prince Edward School<br />
Robertson Economic Consulting<br />
Save the Children Norway<br />
Scientific and Industrial Research and<br />
Development Centre<br />
Standard Chartered Bank of Zimbabwe<br />
Tobacco Growers Trust<br />
Tobacco Industry & Marketing Board<br />
Tobacco Research Board<br />
Tobacco Trade Association<br />
Trade and Industry Competition Commission<br />
Transparency International Zimbabwe<br />
United Nations Childrens’ Fund<br />
University of Zimbabwe<br />
Wildlife & Environment Zimbabwe<br />
World Bank<br />
Zimbabwe Aids Network<br />
Zimbabwe Congress of Trade Unions<br />
Zimbabwe Council for Tourism<br />
Zimbabwe Electricity Supply Authority<br />
Zimbabwe National Chamber of Commerce<br />
Zimbabwe National Family Planning Council<br />
Zimbabwe Republic Police<br />
Zimbabwe Revenue Authority<br />
Zimbabwe Tobacco Association
APPENDIX 2<br />
BRITISH AMERICAN <strong>TO</strong>BACCO OPERATIONS IN ZIMBABWE GRI’S 2001 - 2003<br />
GRI Performance indicators Unit of 2001 2002 2003 Comments<br />
Measurement Actual Actual Target<br />
Materials<br />
BAT Zim Total materials used other than water,<br />
EN1 by type Tonnes<br />
Leaf 4,371 3,794 4,070<br />
Wrapping paper 1,178 1,420 1,523<br />
Cigarette paper 115 208 223<br />
Total 5,664 5,422 5,816<br />
Tonnes per tonne of product 1.3 1.4 1.4<br />
Tonnes per million cigarettes equivalent<br />
produced 1.3 1.4 1.4<br />
ELT/TPZ Total materials used other than water,<br />
EN1 by type Tonnes<br />
Leaf 94,200 79,307 30,000<br />
Wrapping paper 4,606 4,267 3,413<br />
Total 98,806 83,574 33,413<br />
Tonnes per tonne of product 1.0 1.1 1.1<br />
Tonnes per million cigarettes equivalent<br />
produced 1.0 1.1 1.1<br />
BAT Zim/ Percentage of materials used that are Tonnes Do not currently measure due to lack of<br />
ELT/TPZ wastes (processed or unprocessed ) from data systems to generate the required<br />
EN2 sources external to the reporting orginisation information. Development of required<br />
organisation data systems will be evaluated<br />
Energy<br />
BAT Zim Direct energy use segmented by primary GJ No energy purchased<br />
ELT/TPZ source<br />
EN3<br />
BAT Zim Indirect energy use GJ 76,602 22,808 25,338<br />
EN4 GJ per tonne of product 21.09 8.54 8.58<br />
GJ per million cigarettes equivalent<br />
produced 21.09 8.54 8.58<br />
53
APPENDIX 2 CONTINUED<br />
GRI Performance indicators Unit of 2001 2002 2003 Comments<br />
Measurement Actual Actual Target<br />
ELT/TPZ Indirect energy use GJ 177,605 164,018 See 7.5 KWH/kg of tobacco processed<br />
EN4 comment<br />
GJ per tonne of product 2.02 2.21 4.70 2003 expecting lower crop size<br />
GJ per million cigarettes equivalent<br />
produced 2.02 2.21 4.70<br />
Water<br />
BAT Zim Total water use Cubic metres 45,095 37,326 37,000<br />
EN5 Cubic metres per tonne of product 10.32 9.84 9.09 In 2001 contruction building construction was taking was place.<br />
Cubic metres per million cigarettes More taking water place.<br />
consumption for concrete<br />
equivalent produced 10.32 9.84 9.09<br />
ELT/TPZ Total water use Cubic metres 164,815 84,782 50,859<br />
EN5 Cubic metres per tonne of product 1.75 1.07 2.26 2003 expecting lower crop size<br />
Cubic metres per million cigarettes<br />
equivalent produced 1.75 1.07 2.26<br />
Biodiversity<br />
BAT Zim Location and size of land owned, leased Ha BAT Operations cannot report on this<br />
ELT/TPZ or managed in biodiversity-rich habitats indicator at this time. The company is<br />
EN6 engaged in an assessment of its impacts<br />
on biodiversity in conjunction with key<br />
stakeholders. This assessment will identify<br />
which of its owned, leased, or managed<br />
properties, if any, may fall within<br />
biodiversity rich habitats<br />
BAT Zim/ Description of the major impacts on Ha Do not currently measure due to the lack<br />
ELT/TPZ biodiversity associated with activities and/ of data systems generating the required<br />
EN7 or products and services in terrestrial, information. Development of required data<br />
freshwater, and marine environments systems are under development in<br />
conjunction with key stakeholders<br />
BAT Zim Total amount of land owned, leased, or Ha 5 5 5<br />
EN23 managed for production activities or<br />
extractive use<br />
ELT/TPZ Total amount of land owned, leased, or Ha 24 14 12 Forecast in reduction of crop size<br />
EN17 managed for production activities or hence moved away from external rented<br />
extractive use warehouses<br />
54
Emissions, Effluents and Waste<br />
BAT Zim Green house gas emissions Tonnes 9,238 3,350 3,562<br />
EN8 Tonnes per tonne of product 2.11 0.88 0.88<br />
Tonnes per million cigarettes equivalent<br />
produced 2.11 0.88 0.88<br />
ELT/TPZ Green house gas emissions Tonnes 19,070 17,587 14,115<br />
EN8 Tonnes per tonne of product 0.20 0.22 0.47<br />
Tonnes per million cigarettes equivalent<br />
produced 0.20 0.22 0.47<br />
BAT Zim Use and emissions of ozone-depleting Tonnes Do not currently measure due to lack of<br />
ELT/TPZ substances data systems to generate required<br />
EN9 information. Development of required<br />
data systems will be evaluated<br />
BAT Zim / NO2 , SO2 , and other significant air Tonnes Do not currently measure due to lack of<br />
ELT/TPZ emissions by type data systems to generate required<br />
EN10 information. Development of required<br />
data systems will be evaluated<br />
BAT Zim Total amount of waste by type and<br />
EN11 destination Tonnes<br />
Hazardous waste to landfill 7 0 0 There was a high amount of hazardous<br />
Hazardous waste recycled 27 2 0 waste to landfill in 2001 because BAT<br />
Hazardous waste incinerated 1 0 0 Zimbabwe was in the process of<br />
Non-hazardous waste to landfill 339 222 210 replacing asbestos roof sheeting from<br />
Non-hazardous waste recycled 148 202 155 its factory<br />
Non Hazardous waste incinerated 22 19 15<br />
Total 544 444 380<br />
Tonnes per tonne of product 0.12 0.12 0.09<br />
Tonnes per million cigarettes<br />
equivalent produced 0.12 0.12 0.09<br />
55
APPENDIX 2 CONTINUED<br />
GRI Performance indicators Unit of 2001 2002 2003 Comments<br />
Measurement Actual Actual Target<br />
ELT/TPZ Total amount of waste by type and<br />
EN11 destination. Tonnes<br />
Hazardous waste to landfill 0.34 0.33 0.29<br />
Hazardous waste recycled 2.00 1.67 2.32<br />
Hazardous waste incinerated 0.05 0.46 0.46<br />
Non-hazardous waste to landfill 636 573 459<br />
Non-hazardous waste recycled 7,346 4,416 3,533<br />
Non Hazardous waste incinerated 2.00 0.00 0.00<br />
Total 7,987 4,991 3,995<br />
Tonnes per tonne of product 0.08 0.06 0.13<br />
Tonnes per million cigarettes<br />
equivalent produced 0.08 0.06 0.13<br />
BAT Zim Significant discharges to water by type Cubic metres 36,020 35,391 35,081 Sewer to municipal treatment plant<br />
EN12 Cubic metres per tonne of product 8.24 9.32 8.62<br />
Cubic metres per million cigarettes<br />
equivalent produced 8.24 9.32 8.62<br />
ELT/TPZ Significant discharges to water by type Cubic metres 52,000 40,000 30,000 Estimate: note no water reading is<br />
EN12 Cubic metres per tonne of product 0.55 0.50 1.00 being done<br />
Cubic metres per million cigarettes<br />
equivalent produced 0.55 0.50 1.00<br />
BAT Zim/ Significant spills of chemicals, oils, and Litres 0 0 0 No significant spills of chemicals, oils<br />
ELT/TPZ fuels in terms of total number and total or fuels were reported in 2001 and 2002<br />
EN13 volume<br />
Products and Services<br />
BAT Zim/ Significant environmental impacts of Our products have environmental<br />
ELT/TPZ principal products and services impacts through littering associated with<br />
EN14 improper disposal after consumption.<br />
Data is not available to quantify the<br />
impact<br />
56<br />
BAT Zim/ Percentage of the weight of products sold Approximately 50% of the weight of<br />
ELT/TPZ that is reclaimable at the end of the product sold is normally consumed.<br />
EN15 products' useful life and percentage that 100% of the remaining is reclaimable.<br />
is actually reclaimed Not currently measure due to lack of<br />
required data systems in private and<br />
public waste handling services
Compliance<br />
BAT Zim/ Incidents of and fines for non-compliance 0 0 0 No incident of non compliance<br />
ELT/TPZ with all applicable international declarations was reported in 2001 and 2002<br />
EN16 /conventions/treaties, and national, subnational,<br />
regional, and local regulations<br />
associated with environmental issues<br />
Health and Safety<br />
BAT Zim/ Practices on recording and notification of For occupational accidents, diseases and<br />
ELT/TPZ occupational accidents and diseases, and environmental occurrences, compliance at<br />
LA5 how they relate to the ILO Code of an enterprise level is significantly met for<br />
Practice on Recording and Notification of reporting, recording, notification,<br />
Occupational Accidents and Diseases statistical analysis and investigation<br />
BAT Zim/ Description of formal health and safety 1. Environmental Health & Safety<br />
ELT/TPZ committees comprising management and working group 2. Technical committee<br />
LA6 worker 3. Exco steering committee<br />
BAT Zim Standard injury, lost day, and absentee Number<br />
LA7 rates and number of work-related<br />
fatalities (including subcontracted<br />
workers) See<br />
LWC 7 4 comments In 2003, forecasting a 10% decline in LWC<br />
Serious accidents 0 0 0<br />
ELT/TPZ Standard injury, lost day, and absentee Number<br />
LA7 rates and number of work-related fatalities<br />
(including subcontracted workers)<br />
LWC 3 0 0<br />
Serious accidents 0 0 0<br />
BAT Zim/ Description of policies or programmes We aim to reduce by preventive means<br />
ELT/TPZ (for the workplace and beyond) on throughout our operation significant<br />
LA8 HIV/AIDS indigenous diseases that cause pain and<br />
suffering to employees, their families<br />
and the communities in which they live<br />
according to a defined programme. Our<br />
programme can be accessed via the<br />
<strong>British</strong> <strong>American</strong> Tobacco website or that<br />
of the Global Business Coalition for<br />
HIV/AIDS<br />
57
APPENDIX 2 CONTINUED<br />
GRI Performance indicators Unit of 2001 2002 2003 Comments<br />
Measurement Actual Actual Target<br />
Labour practices and decent work<br />
LA1 BAT Breakdown of work force, where possible, As at December 2002<br />
Zim/ELT/ by status, employment type and by BAT Zim ELT/TPZ<br />
TPZ employment contract. Also identify Management 48 52<br />
retained in conjunction with other Non management 344 190<br />
employers Contracts/seasonal 177 1,677<br />
LA2 BAT Net employment creation and average Will start exporting from 2003.<br />
Zim/ELT/ turnover Currently only tracking management<br />
TPZ turnover<br />
LA12 BAT Employee benefits beyond those legally We ensure our salaries and benefits<br />
Zim/ELT/ mandated remain highly competitive, i.e. in the<br />
TPZ top 25% of leading players both local<br />
and multinational companies<br />
comparative basket.<br />
LA3 BAT Percentage of employees represented by Number of non management employees<br />
Zim/ELT/ independent trade union organisations or as at December 2002 being represented<br />
TPZ other bona fide employee representatives by Zimbabwe Tobacco Industrial<br />
broken down geographically or percentage Workers Union<br />
of employees covered by collective BAT Zim = 344 (88%)<br />
bargaining agreements ELT/TPZ = 190 (79%)<br />
LA4 BAT Policy and procedures involving For non management staff the National<br />
Zim/ELT/ information, consultation and negotiation Employment Council (NEC) provides<br />
TPZ with employees over changes in the procedures for negotiation and<br />
reporting organisation's operations consultation. Non management staff are<br />
also represented in the workers<br />
committee and works council<br />
LA13 BAT Provision for formal worker representation For management staff, open<br />
Zim/ELT/ in decision-making or management, communication and consultation as a<br />
TPZ including corporate governance practice is encouraged.<br />
LA10 BAT Description of equal opportunity policies As a matter of principle BAT Operations<br />
Zim/ELT/ or programmes, as well as monitoring does not discriminate, we abide by the<br />
TPZ systems to ensure compliance and results Zimbabwean labour laws and also<br />
of monitoring. follow the BAT employment principles.<br />
We advertise internally and externally<br />
opportunities and recruitment is based<br />
on merit.<br />
58
LA11 BAT Composition of senior management and - See page 8 for CSR governance<br />
Zim/ELT/ corporate governance bodies (including - Two non-exective directors were<br />
TPZ the board of directors) including female/ appointed in 2002 for BAT Zimbabwe<br />
male ratio and other indicators of diversity (see page 22 and 23)<br />
as culturally appropriate. - Male/female ratio as at December 2002:<br />
Total Male Female Female as<br />
% of total<br />
BAT Zim 392 273 19 4.8<br />
ELT/TPZ 242 230 12 5<br />
Human rights<br />
HR1 BAT Description of policies, guidelines, The code of conduct stipulates<br />
Zim/ELT/ corporate structure, and procedures to employee and employer's rights and we<br />
TPZ deal with all aspects of human rights adhere to the BAT employment<br />
relevant to operations, including principles which also provide protection<br />
monitoring mechanisms and results. for employees on human rights. Comply<br />
to the local legislation on human rights<br />
on labour law.<br />
HR2 BAT Evidence of consideration of human rights There is no formal measurement in<br />
Zim/ELT/ impacts as part of investment and place. However all suppliers/contractors<br />
TPZ procurement decisions, including selection engaged are expected to be legal<br />
of suppliers/contractors. entities and in full adherence to the laws<br />
of the country of operations<br />
HR3 BAT Description of policies and procedures to<br />
Zim/ELT/ evaluate and address human rights<br />
TPZ performance within the supply chain and<br />
contractors, including monitoring systems<br />
and results of monitoring.<br />
HR4 BAT Description of global policy and procedures The code of conduct, Labour Relations<br />
Zim/ELT/ /programmes preventing all forms of Act revised in 1996 and the Labour<br />
TPZ discrimination in operations, including Relations Amendment of 2002 provides<br />
monitoring systems and results of a well defined grievance procedure for<br />
monitoring employees to raise complaints on issues<br />
or against their superiors and be<br />
ensured of an impartial process. There is<br />
also a grievance procedures in place for<br />
employees<br />
59
APPENDIX 2 CONTINUED<br />
GRI Performance indicators Unit of 2001 2002 2003 Comments<br />
Measurement Actual Actual Target<br />
HR5 BAT Description of freedom of association policy In line with the provisions of the Labour<br />
Zim/ELT/ and extent to which this policy is universally Relations Act Revised Edition of 1996<br />
TPZ applied independent of local laws, as well which recognise freedom of association<br />
as description of procedures/programmes and collective bargaining, the company<br />
to address this issue extends its recognition to National<br />
Employment Council (NEC) as the<br />
governing body representing non<br />
management employees<br />
HR6 BAT Description of policy excluding child labour We are in strict adherence with the<br />
Zim/ELT/ as defined by the ILO Convention 138 and Child Protection and Adoption Act<br />
TPZ extent to which this policy is visibly stated which prohibits the engagement of<br />
and applied as well as description of workers under the age of 16. As a<br />
procedures/programmes to address this matter of practice we do not employ<br />
issue, including monitoring systems and any persons below the age of 18.<br />
results of monitoring Also refer to page 28 of this report.<br />
HR7 BAT Description of policy to prevent forced and The company does not practice forced<br />
Zim/ELT/ compulsory labour and extent to which and compulsory labour in line with the<br />
TPZ this policy is visibly stated and applied, as constitution of Zimbabwe and also as<br />
well as description of procedures/ part of BAT employment principles. We<br />
programmes to address this issue, including comply with the labour laws of the<br />
monitoring systems and results of country.<br />
monitoring<br />
Society<br />
SO1 BAT Description of policies to manage impacts BAT Operations Social reporting process<br />
Zim/ELT/ on communities in areas affected by is testimony to our sincere desire to<br />
TPZ activities, as well as description of listen, understand and respond to<br />
procedures/programmes to address this reasonable stakeholder expectations.<br />
issue, including monitoring systems and Details on some of the identified<br />
results of monitoring deliverables and non deliverables are<br />
found under the section the outcome of<br />
the AA1000 dialogue based process<br />
SO2 BAT Description of the policy, procedures/ Our standards of business conduct and<br />
Zim/ELT/ management systems and compliance code of conduct defines actions which<br />
TPZ mechanism for organisations and employees will be taken against any employee<br />
addressing bribery and corruption found guilty of bribery or corruption.<br />
60
SO3 BAT Description of policy, procedures/ BAT Operations does not make<br />
Zim/ELT/ management systems and compliance contributions to political parties or<br />
TPZ mechanisms for managing political politically based organisations<br />
lobbying and contributions<br />
Product responsibility<br />
PR1 BAT Description of policy for preserving While not reporting on this area, topics<br />
Zim/ELT/ customer health and safety during use of in the AA1000 section report on product<br />
TPZ products and services and extent to which related issues<br />
this policy is visibly stated and applied, as - Courtesy of Choice campaign on page 26<br />
well as description of procedures/ - Customer care information on page 45<br />
programmes to address this issue, - Real Progress for the Real World on<br />
including monitoring systems and results page 31<br />
of monitoring - Media engagement on page 18<br />
- Health Warning Clauses on page 32<br />
PR2 BAT Description of policy and procedures/ We comply with Statutory Instrument<br />
Zim/ELT/ management systems and compliance 264 of 2002 Public Health ( Control of<br />
TPZ mechanisms related to product Tobacco) Regulations which governs<br />
information and labelling packing and labelling of tobacco<br />
products.<br />
- Also refer to pages 17 & 27<br />
61
APPENDIX 2 CONTINUED<br />
GRI Performance indicators Unit of 2001 2002 2003 Comments<br />
Measurement Actual Actual Target<br />
PR3 BAT Description of policy, procedures/ Our agreement with research agencies<br />
Zim/ELT/ management systems and compliance seek to ensure that consumer privacy is<br />
TPZ mechanisms for consumer privacy protected for all projects involved by<br />
requiring that they comply with all<br />
relevant data protection legislation in<br />
each market and take appropriate<br />
technical and organisational measures<br />
against unauthorised or unlawful<br />
processing of personal data and<br />
accidental loss or destruction of, or<br />
damage to, personal data.<br />
When considering what measure is<br />
appropriate, the agency is required to<br />
consider the state of technological<br />
development and the cost of<br />
implementing any measures to ensure a<br />
level of security appropriate to the harm<br />
that might result from such<br />
unauthorised or unlawful processing or<br />
accidental loss or destruction and to the<br />
nature of the data to be protected.<br />
The agency is also required to take<br />
reasonable steps to ensure the reliability<br />
of its employees who have access to the<br />
personal data.<br />
PR11 BAT Number of substantiated complaints None<br />
Zim/ELT/ regarding breaches of consumer privacy<br />
TPZ<br />
GRI Road Map<br />
BAT Zim 2.42 2.84 3.18 Objectives and targets are set annually<br />
ELT/TPZ 3.23 3.32 3.50 and reviewed bi-annually in accordance<br />
with the policy requirements<br />
62
GLOBAL <strong>REPORT</strong>ING INITIATIVE CONTENT INDEX<br />
GRI Reference Page<br />
Environmental<br />
Materials EN1, EN2 53<br />
Energy EN4 53/54<br />
Water EN5 54<br />
Biodiversity EN6, EN7, EN17, EN23 54<br />
Emissions, effluents & wastes EN8, EN9, EN10, EN11, EN12, EN13 55/56<br />
Product & services EN14, EN15 56<br />
Compliance EN16 57<br />
Health & safety LA5, LA6, LA7, LA8 57<br />
Labour practice and decent work<br />
LA1, LA2, LA3, LA4, LA10, LA11,<br />
LA12, LA13, 58/59<br />
Human rights HR1, HR2, HR3, HR4, HR5, HR6, HR7 59/60<br />
Society SO1, SO2, SO3 60<br />
Product responsibility PR1, PR2, PR3, PR11 61/62<br />
63
64<br />
K. GLOSSARY<br />
Glossary of terms used in this report<br />
AA1000 Measure of social and ethical accountability (Accountability 1000)<br />
AJA Anglo Japanese <strong>American</strong><br />
BAT <strong>British</strong> <strong>American</strong> Tobacco p.l.c.<br />
BAT Operations <strong>British</strong> <strong>American</strong> Tobacco Operations in Zimbabwe<br />
BAT Zimbabwe <strong>British</strong> <strong>American</strong> Tobacco Zimbabwe Holdings Limited<br />
CCA Corporate Conduct and Accountability<br />
COC Courtesy of Choice<br />
COMESA Common Market for East and Southern Africa<br />
CORA Corporate and Regulatory Affairs<br />
COTY Communicator of The Year<br />
CSR Corporate Social Responsibility<br />
ECLT Elimination of Child Labour in Tobacco-growing<br />
EH & S Environmental Health & Safety<br />
ELT Export Leaf Tobacco Zimbabwe<br />
ETS Environmental Tobacco Smoke<br />
FCTC Framework Convention on Tobacco Control<br />
FDT Farmers Development Trust<br />
GRI Global Reporting Initiative<br />
HAZ Hospitality Association of Zimbabwe<br />
HR Human Resources<br />
IMS International Marketing Standards<br />
Internal Stakeholders Employees<br />
ISO International Standardisation Organisation<br />
IT Information Technology<br />
Leaf Operations Export Leaf Tobacco Zimbabwe and Tobacco Processors<br />
Zimbabwe<br />
MHCW Ministry of Health and Child Welfare<br />
MRP II Materials Resources Planning<br />
NGO Non-Governmental Organisation<br />
RPRW Real Progress for the Real World<br />
S.I. Statutory Instrument<br />
TPZ Tobacco Processors Zimbabwe<br />
TQM Total Quality Management<br />
VeriSEAAR Social, Ethical and Environmental Auditing and Accounting<br />
(verification tool)<br />
YSP Youth Smoking Prevention<br />
ZBI Zambezi Basin Initiative<br />
ZIMRA Zimbabwe Revenue Authority<br />
ZNCC Zimbabwe National Chamber of Commerce<br />
ZTA Zimbabwe Tobacco Association
WE WELCOME YOUR<br />
FEEDBACK<br />
We welcome your feedback on our second Report to Society, which covers issues<br />
stakeholders raised during dialogue sessions held between September 2002 and February<br />
2003. Stakeholder engagement will continue and it is hoped that all reasonable<br />
stakeholder expectations will be addressed going forward.<br />
• As we indicated in our first report we hope to expand stakeholder participation. Your<br />
suggestions in this regard are welcome<br />
• Your views on the first and second report will help us in finding ways to improve the<br />
social reporting process<br />
HOW <strong>TO</strong> SEND US YOUR VIEWS<br />
• Please fill in the enclosed reply card and send it to the Social Reporting Manager*<br />
<strong>TO</strong> FIND OUT MORE<br />
There is comprehensive information about <strong>British</strong> <strong>American</strong> Tobacco on our global<br />
corporate website: www.bat.com<br />
If you would like further copies of the first or second report, or any other information on<br />
the social reporting process, please contact the Social Reporting Manager*<br />
* <strong>British</strong> <strong>American</strong> Tobacco Zimbabwe, 1 Manchester Road, P O Box ST 98, Southerton, HARARE.<br />
Telephone: +263 (4) 621170-84, +263-11-206342, Fax: +263 (4) 661934 E-mail: Innocent_Mtize@bat.com
BRITISH AMERICAN <strong>TO</strong>BACCO OPERATIONS IN ZIMBABWE <strong>REPORT</strong> <strong>TO</strong> <strong>SOCIETY</strong> 2002 – 2003<br />
www.bat.com