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10 November 2006

Aditya Birla Nuvo is a member of the Global Compact, an international forum that operates under the aegis of the United Nations. The forum's vision is to usher in a "more sustainable and global economy." There are 10 basic principles outlined in its charter and the following pages highlight the thinking and initiatives of the company in those areas.

Human Rights
1. Businesses should support and respect the protection of internationally proclaimed human rights
Aditya Birla Nuvo ascribes to the human rights policy of the United Nations and Global Compact. It has a comprehensive policy and a code of conduct which is binding on all employees who must sign it on their induction in to the company. It protects the interests of the employee and other stakeholders. "Integrity, trust, fairness and honesty are the basics that guide our strategies, our behaviour and the relationships we build with people, both internally and externally. Each of us will exercise the highest level of ethical and professional behaviour," states the policy.


2. Businesses should make sure that they are not complicit in human right abuses

Aditya Birla Nuvo endeavours to uphold the human rights outlined in the Global Compact. Not only in terms of its employees, as detailed above, but also for others such as customers and business associates. Here is what the policy states: "We are committed to our customers, to fulfilling their present needs and anticipating their unmet needs. We are dedicated to continually improving quality, usefulness and value of our products and services that help our customers enhance their performance. We provide value for customers through creativity, innovation, productive relationships, quick response and simplicity in all that we engage in."


Going beyond business, the company is engaged in community work, concentrating largely in the rural areas close to its manufacturing plants. The company's work is based on the felt needs of the communities. It is in tandem with the Group's social vision which is "to make a qualitative difference to the lives of the weaker sections of society in proximity to our plants and in doing so improve the Human Development Index of our nation."

For the year 2005-06, Aditya Birla Nuvo reached out to over 28 lakh people. We focus on improving the quality of life among the weaker sections of the society straddled across areas such as health care, mother and child care, education, sustainable livelihood, women self help groups, social welfare and infrastructure.

A summary of our projects undertaken in 2005-06:

  • Conducted 300 medical camps across the units, reaching out to 66,000 patients.
  • More than 3000 patients were checked at eye camps, of which 400 patients were provided with spectacles and 428 patients were operated upon and fitted with intra ocular lenses.
  • Coordination with the government health departments and agencies like CARE and SIFPSA has helped to cover 1,95,000 families under the mother and child health care programme.
  • AIDS awareness programmes organised across all the units were attended by over 4000 adults.
  • The Aditya Junior High School in Belhatthi Panchayat, run by HiTech Carbon, Renukoot, helps provide quality education to 109 under-privileged students.
  • Water harvesting structures supports thousands of families, facilitating irrigation processes and potable drinking water.

Labour Standards
3. Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining
Our manufacturing locations have workers in the unionised cadre. Long term settlements are signed with the workers at regular frequency wherein the management and union leaders sit across the table and negotiate the terms of the settlement. The process is peaceful and productive across all locations.

Being essentially a meritocracy and a peoples' organisation, our attention in the people area remains unwavering. We are enhancing the quality and the pace of the institutionalisation of our systems and processes. These now embrace the entire life cycle of the employee's engagement with the organisation. Several new initiatives have been taken towards the well being of our employees, particularly in the area of healthcare, education of their children and other critical aspects. We have cordial relations with our shopfloor colleagues, creating a work place environment that nurtures innovation and encourages people to constantly learn and grow.

4. The elimination of all forms of forced and compulsory labour
People are keen to associate with Aditya Birla Nuvo out of their own volition. The terms and conditions are explained in detail openly before the appointment is formalised.


5. The effective abolition of child labour

Aditya Birla Nuvo does not employ child labourers.


6. Eliminate discrimination in respect of employment and occupation

Aditya Birla Nuvo is an equal opportunities employer. Our policy states: "We respect the individual rights and dignity of all people. We believe in the inherent potential of employees and are fully committed to people development processes in our company in a fair, equitable and transparent manner. We encourage employees to grow professionally and personally to their highest capabilities regardless of nationality, caste, religion, colour or sex."

Environment
7. Businesses should support a precautionary approach to environmental challenges
Our environment policy clearly states: "We are committed to sustainable development and to the health and safety our employees and the environment surrounding our plants. To building eco-efficiency in all of our operations and to guarding natural resources. We are committed to going beyond stipulated requirements and ensure energy conservation and productive recycling of waste."

The OEKO TEX Certification for Aditya Birla Nuvo's Rayon brands —- RayOne and KolorOne endorses that they meet the highest ecological requirements established for products that come into direct contact with the skin. The Rayon Division's caustic soda plant is reckoned as a benchmark plant with the lowest rate of solid waste per tonne of production. At Veraval, sodium sulphide is made from hydrogen sulphide and sodium hypochloride is produced from waste chlorine. Our plant uses hydrogen gas to produce caustic flakes. It is one of the cleanest fuels for the flaker furnace.

At Jayshree textiles in Rishra, the effluent treatment plant has been upgraded to factor the expansion of its wool combing division. The three projects taken up under the clean development mechanism under the aegis of the United Nations Framework Convention on Climate Change (UNFCCC) have been validated and are now awaiting registration with the UNFCCC.

8. Undertake initiatives to promote greater environmental responsibility
We relentlessly pursue the development of cleaner production processes that inherently reduce pollution levels and require fewer resources. All of Aditya Birla Nuvo's plants have received OHSAS 18001 certification for Safety Management Systems and are SA 8000 certified for Social Accountability Standards. Professional Environmental Auditors, The Central Salt and Marine Chemical Institute (Bhavnagar), - a Gujarat Pollution Control Board recognised institute, GITCO - Ahmedabad and the Bureau of Indian Standards conduct in-depth environmental audits at our plants. Their audit reports validate our commitment to environmental conservation. Additionally, trained environment systems auditors conduct periodic checks.

Several accolades have been conferred on the Company for its contribution to environment conservation. A selective list is given below.

Aditya Birla Nuvo's Rayon Division has been the proud recipient of

  • The Ministry of Power's National Energy Conservation Award from the Bureau of Energy Efficiency, which declared it as the best in this sector.
  • The Greentech Foundation Award for commendable safety standards in the chemicals sector.
  • The Gujarat Safety Council's Safety Award for best practices in the textile sector.
  • The National Safety Council of India awarded the Suraksha Puraskar to the company's fertiliser division.
  • Aditya BirlaNuvo's HiTech division, which manufactures carbon black, was named "The Greentech Gold Award Winner for Environmental Excellence."
9. Encourage the development and diffusion of environmentally friendly technologies
At Aditya Birla Nuvo's insulator plant, the bare effluent waste generated is recycled for low tension insulators and whatever is not used is dispensed to the cottage industries.

Steam and electricity are generated through rechannelising of gases. The power so generated is used for captive consumption and the additional steam is sold to Hindalco, another of our Group companies, which is in proximity to our company's plant in Renukoot. At the company's fertiliser division, processes towards better environment management are in place. The plant has zeolite softeners, deep hydrolyser, ammonia stripping systems, de-dusting systems, oily water treatment systems and guard ponds, supported by effective online monitoring system to safeguard the environment.

The company's fertiliser division's project "Energy Efficiency through installation of modified CO2 Removal System" in the ammonia plant is the first project worldwide in the fertiliser sector to be registered with the United Nations Framework Convention on Climate Change (UNFCCC).

10. Businesses should work against all forms of corruption, including extortion and bribery
The company policy clearly states: "I will not seek or encourage bribes or kickbacks in any form. I will not deal with a supplier who offers me a bribe to get a contract awarded." Adherence to the policy is total and no leniency is shown to a defaulter.

The Aditya Birla Group has re-articulated the values that spawn across its diverse businesses and locations and act as an organisational glue to bind people together. These values are: Integrity, Commitment, Passion, Speed and Seamlessness. The values drive the organisational thinking and processes-whether related to people, manufacturing, environment or community responsibility, the bedrock of the principles outlined by the UN Global Compact.

Here is what our Chairman Mr. Kumar Mangalam Birla has to say: "Great businesses are never built on the quick sands of opportunism. If living by our values means, perhaps growing at a pace slower than we would otherwise liked, so be it. For us, leadership lies at the heart of knowing what we stand for."


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