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HUMAN RIGHTS

Respect for human rights is one of CCI’s core values.

We value our relationships with our employees and we achieve success through the contributions that each and every individual makes. We are committed to having open and participatory workplace in which universal human rights are respected. We value every employee and encourage all to do their best.

 

In December 2018, CCI published its first Human Rights Policy, a continuation of the existing CCI Workplace Rights Policy. This new policy is based on international standards of human rights as set forth in the United Nations Universal Declaration of Human Rights, the International Labor Organization Declaration of Basic Work Principles and Rights, and the United Nations Global Compact. Supported by these sound foundations, we integrate human rights and workplace rights into all of our practices, corporate values, and sustainability strategy. The CCI Human Rights Policy is one of the fundamentals of our Vision and it is communicated continuously and consistently throughout our entire procurement chain.

The CCI Human Rights Policy addresses the following issues:

• Community and stakeholder engagement

• Diversity and inclusion

• Zero tolerance to arbitrary discrimination

• Freedom of association and collective bargaining

• Safe and healthy workplaces

• Workplace security

• Prohibition of forced labor and human trafficking

• Prohibition of child labor

• Fair work hours, wages, and benefits

• Protection of land and water resource use

 

In order to determine the degree that our operations comply with the CCI’s Human Rights Policy and TCCC’s Supplier Guiding Principles (SGP), audits were conducted by an independent auditing firm in 2018. Five CCI plants in Jordan, Kazakhstan, Kyrgyzstan, and Turkey passed these audits successfully.

Supplier Guiding Principles

Our local procurement policy supports the sustainable development of local economies and we support our suppliers to improve their sustainability performance with effective supplier development practices.

 

As part of our supplier agreements since 2002, the Supplier Guiding Principles (SGP) determine the social, environmental, ethical and economic minimals, which TCCS expect from their suppliers. The latest human rights advancements from Ruggie, OECD and UNGC standards, as well as guidance provided by the Danish Institute for Human Rights study of TCCC policies and practices are reflected to SGP standards. At a minimum, our suppliers are required to meet these standards with respect to their operations.

Goals and Commitments

Priority Areas

2018 Goals

Performance in 2018

Status

2019 Goals

 

Sustainability of our Suppliers

To attain a success rate of 85% for the SGP audits in all countries of operation.

The success rate was realized as 73%.

Underachieved

To attain a success rate of 75% for the SGP audits in all countries of operation.

We consistently cultivate effective communication and conduct audits and constructive practices in order to ensure that our suppliers adhere to our principles. Our suppliers receive a copy of our SGP at the beginning of the business relationship and are expected to transfer these principles to their stakeholders, in particular, to their workforce. We attach the SGP Policy to our supplier contracts when applicable, with the expectation that they will develop and implement appropriate internal business processes to guarantee their compliance with the SGP requirements. Supplier audits are conducted by TCCC and CCI’s trained personnel internally as well as by third parties. For our direct material and cooler suppliers, it is obligatory to undergo SGP audit and comply with SGP standards before signing contracts.

Third-party audits include confidential interviews both with employees and on-site contract workers. A supplier who fails to meet any aspect of the SGP requirements is expected to implement corrective actions. If a supplier fails to adhere to our principles, sanctions that include termination of the contract are applicable.

 

During the reporting period, with enlarged scope of SGP by trademarked Tertiary Packaging suppliers like crates, pallets, printed shrink and the like, 73% of our suppliers passed the audits and assured compliance with SGP without any major issues. Since this was below our target set as 85%, we put effort to work closely with these suppliers so that we could resolve their issues and bring them back to SGP compliance. We have revised our target for 2019 as 75%, with the inclusion of the aforementioned enlarged scope. As a result of the SGP audit, a remediation action plan that covers specific matters such as working hours (especially night shifts), rest day violation, overtime and health and safety, were sent to the relevant suppliers and supplementary audits were organized. In the last three years, TCCC audited all of CCI’s ingredient and packaging suppliers.

SGP Audit Targets for Years

2014

2015

2016

2017

2018

2019 Target

2020 Target

 

91%

93%

88%

92%

73%

75%

85%

Local Procurement

Local procurement is a significant meansfor us to contribute to local economies. The proportion of our spending on raw materials from local suppliers (within the same country) is provided in the table below.

Local Procurement (%)

2014

2015

2016

2017

2018

 

Turkey*

95

99

98

95

99

Jordan

65

55

95

95

94

 

Azerbaijan**

47

49

54

47

35

Pakistan

98

95

97

97

90

 

* Concentrate is not included.

** There are no approved suppliers in these local markets for some product and service categories. (There are no local suppliers available for some of the product categories with high spend. Suppliers are selected and approved by Human Rights Policy and TCCC's Supplier Guiding Principles (SGP).)

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SUSTAINABILITY REPORT 2018

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SUSTAINABILITY REPORT 2018