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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 />

G<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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• 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 />

G<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 />

G<br />

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THE OUTCOME OF THE<br />

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BASED PROCESS<br />

G2. INTERNAL STAKEHOLDERS<br />

38<br />

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

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