UN Global Compact 2008-09 During the year 1999, UN Secretary-General launched the ‘Global Compact’ calling upon corporate leaders to align their business practices according to the principles of the Compact. The Global Compact has 10 principles, which encompass the areas of Human Rights, Labour, Environment and Anti-corruption. These 10 principles have been derived from various UN Declarations and conventions, viz. the Universal Declaration of Human Rights, the International Labour Organisation’s Declaration on Fundamental Principles and Rights at Work, the Rio Declaration on Environment & Development and the United Nations Convention Against Corruption. Communication on Progress for 2008-09 The 10 principles of Global Compact are mentioned below: 1. Business should support and respect the protection of internationally proclaimed human rights. 2. Make sure that businesses are not complicit in human rights abuses. 3. Business should uphold the freedom of association and the effective recognition of the right to collective bargaining. 4. Elimination of all forms of forced and compulsory labour. 5. Effective abolition of child labour. 6. Elimination of discrimination in respect of employment and occupation. 7. Business should support a precautionary approach to environmental challenges. 8. Undertake initiatives to promote greater environmental responsibility. 9. Encourage the development and diffusion of environmentally friendly technologies. 10. Businesses should work against all forms of corruption, including extortion and bribery. CPCL stands committed to the principles enshrined in the Global Compact and has been a fore runner in the effective implementation of each and every principle, for many years. This is being achieved through appropriate policies and programmes adopted meticulously by CPCL, besides total compliance of the relevant statutes all these years. Principle One - Business should Support and Respect the Protection of Internationally Proclaimed Human Rights CPCL always ensures upholding human rights in the work place. In order to ensure the human rights, the following initiatives were started during the year 2008-09, which are given below: 1
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UN Global Compact 2008-09 During the year 1999, UN Secretary-General launched the ‘Global Compact’ calling upon corporate leaders to align their business practices according to the principles of the Compact. The Global Compact has 10 principles, which encompass the areas of Human Rights, Labour, Environment and Anti-corruption. These 10 principles have been derived from various UN Declarations and conventions, viz. the Universal Declaration of Human Rights, the International Labour Organisation’s Declaration on Fundamental Principles and Rights at Work, the Rio Declaration on Environment & Development and the United Nations Convention Against Corruption.
Communication on Progress for 2008-09 The 10 principles of Global Compact are mentioned below:
1. Business should support and respect the protection of internationally proclaimed human rights.
2. Make sure that businesses are not complicit in human rights abuses.
3. Business should uphold the freedom of association and the effective recognition of the right to collective bargaining.
4. Elimination of all forms of forced and compulsory labour.
5. Effective abolition of child labour.
6. Elimination of discrimination in respect of employment and occupation.
7. Business should support a precautionary approach to environmental challenges.
8. Undertake initiatives to promote greater environmental responsibility.
9. Encourage the development and diffusion of environmentally friendly technologies.
10. Businesses should work against all forms of corruption, including extortion and bribery.
CPCL stands committed to the principles enshrined in the Global Compact and has been a fore runner in the effective implementation of each and every principle, for many years. This is being achieved through appropriate policies and programmes adopted meticulously by CPCL, besides total compliance of the relevant statutes all these years. Principle One - Business should Support and Respect the Protection of Internationally Proclaimed Human Rights
CPCL always ensures upholding human rights in the work place. In order to ensure the human rights, the following initiatives were started during the year 2008-09, which are given below:
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i. Compliance with Local and International Law:
In order to ensure greater transparency in all aspects of the CPCL’s functioning, a mechanism in the form of “Whistle Blower Policy” has been developed. As per the Policy, the persons can bring to the attention of CPCL on the incidents of improper activities without fear of victimization. Accordingly, as per Clause-49 of the Listing Agreement of CPCL with the Stock Exchange, provides the following non-mandatory Corporate Governance guideline: “The Company may establish a mechanism for employees to report to the management concerns about the unethical behaviour, actual or suspected fraud or violation of the company’s code of conduct or ethics policy. This mechanism could also provide for adequate safeguards against victimization of employees, who avail of the mechanism and also provide for direct access to the Chairman of the Audit Committee in exceptional cases. Once established, the existence of the mechanism may be appropriately communicated within the organization.” In pursuance with the above objective and the best practices of Corporate Governance, the Board of Directors of CPCL has decided to frame a “Whistle Blower Policy” to ensure greater transparency in all aspects of the CPCL’s functioning. ii. Employee Engagement Survey With a view to promote a good organizational climate, CPCL conducted an Employee Engagement Survey during December 2008 / January 2009. The survey was conducted through online for all officers and workmen (in grade III & above). The employee engagement is found to be very high order both in the case of officers and workmen.
iii. e-Enabled Data for Retired Employees Details pertaining to the retired employees of CPCL have been created and made available on the Company’s website. Retired Employees can access their details through Internet.
iv. Corporate Social Responsibility: As a socially responsible corporate, CPCL had always rendered exemplary service in addressing the local issues through various services to the local community. Some of the exemplary services rendered are as follows:
243 employees of CPCL volunteered to donate blood to meet the emergency
requirements in various city hospitals during the year 2007. In appreciation of the above cause, the Madras Voluntary Blood Bureau and Association of Voluntary Blood Donors (Tamil Nadu) awarded the “T.T. Ranganathan Rolling Shield” for maximum number of donors among the large-scale industry.
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CPCL provided financial assistance for construction of 500 toilets under the total sanitation scheme in Tiruvallur District, Tamilnadu and it is being constructed in a phased manner.
As part of CPCL’s Community Development Programme, CPCL sponsored 19 unemployed youth living in and around Manali neighbourhood for a job oriented Skill Development Training in Plastics Processing Machine Operation (PPMO) for 6 months duration at Central Institute of Plastics Engineering & Technology (CIPET), Guindy, Chennai.
In order to create awareness on physical fitness of individual and to propagate the need for energy conservation, employees of CPCL participated in the Marathon organized by Marg-Chennai Marathon in aid of Give Life Charity.
CPCL’s efforts on Corporate Social responsibility has been conferred with “Mother Teresa award for Corporate Citizen 2008” instituted by Loyola Institute of Business Administration (LIBA), Chennai for discharging the social obligations by undertaking several welfare measures.
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CSR ACTIVITIES
Donation of Honda Activa Scooter to Ms.Ilavazhaki – Senior Women World Champion (Carrom)
Financial assistance to TamilnaduHandicapped Federation CharitableTrust
v. Other Activities Carried Out: As part of CPCL Community Development Activities, CPCL has distributed merit scholarship to 528 meritorious students of 8 different Government schools in and around Manali and CPCL ITI & Polytechnic College for a total value of Rs.3.62 lakhs, out of which 50% of the amount was distributed to eligible SC/ST students under SCP/TSP scheme. The scholarships were distributed to the students in the respective schools during assembly time itself to create awareness and competitive spirit among the students. As a part of Community Development Activities, CPCL has initiated a unique scheme of sponsoring 50 girls including 25 girls from the SC/ST communities for the one year Nursing Assistant Course (III Batch) at J.V. Educational Trust Kodambakkam, Chennai as a measure to promote employability for the rural women. The Nursing Assistant Course is conducted for the benefit off poor girls drawn from our Neighbourhood, at a cost of rs. 5 lakhs. Constructed Computer Room for Irrula Tribal Women’s Welfare Society,
Chengalpet at a cost of Rs.5.00 lakhs.
Sponsored Free Tuition / Computer Training Classes for the benefit of Students in and around Manali at a cost of Rs.4.94 lakhs. Rs.5.00 lakhs spent on Skill Development Training programme for unemployed youth (boys) at CIPET, Chennai.
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i. Observance of Anti-Terrorism day:
“Anti-Terrorism Day” is being observed on 21st May every year with the objective of weaning away people, particularly the youth, from terrorism and cult of violence by highlighting the suffering of the common people and to show how it is prejudicial to the national interest. The employees working in different locations within the Refinery premises had administered the Anti-Terrorism Pledge on 21.05.09 for the year 2009. ii. Observance of Goodwill Day (Sadbhavana Diwas) Goodwill Day (Sadbhavana Diwas) is being observed on 20th August every year. The theme of the Goodwill Day is to promote integration and harmony among people of all religions, languages and regions. The employees working in different locations within the Refinery premises had administered the Goodwill Day Pledge on 20.08.08 for the year 2008.
Principle Two - Make sure that Businesses are not complicit in Human Right Abuses
CPCL gives utmost importance in up keeping the Communal Harmony. The Quami Ekta Week is being observed to mark the above and various activities are carried out for creating a harmonious atmosphere in the Company. The various activities carried out during the Quami Ekta Week are given below:
(i) Observance of National Integration Week (Quami Ekta Week):
(i) The “National Integration Week” is being observed from 19th to 25th November
every year with a view:
to reaffirm our age old traditions and faith in the values of tolerance, co-existence and brotherhood in a multi-cultural and multi religious society; and to highlight the inherent strength and resilience of our nation to withstand actual and potential, threats to a secular country with diverse views and nurture a spirit of communal harmony in its widest sense.
(ii) Theme: The theme of the Quami Ekta Week is to foster the spirit of patriotism
and national integration among people of all religions, languages and regions. (iii) The National Integration Pledge was administered on 19.11.08 at various
locations within the Refinery premises.
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Activities Carried out during the Quami Ekta Week As part of the National Integration Week, a Yoga Programme by Ms.Valli, Yoga expert and a guest lecture on “Managing Multiple Roles” by Ms.Ajitha, Advocate were organized on 24.11.2008 for all the women employees.
Essay contest in Tamil, English and Hindi were conducted for the employees. Oratorical contest in English and Tamil, were conducted for the students of CPCL Polytechnic and ITI. (ii) Prohibition of Sexual Harassment of Women Provisions have been made in Standing Orders for Workmen and Conduct, Discipline and Appeal rules for Officers to deal with the sexual harassment of women employees in workplace. In accordance with the above provision, a complaints committee has been constituted to deal the complaints of the women employees.
. Principle Three – Business should uphold the Freedom of Association and the effective recognition of the Right of Collective Bargaining
The following two Unions are functioning in CPCL:
I. Chennai Petroleum Employees Union (CPEU) II. Madras Refineries Ambedkar Employees Union (MRAEU).
During the year 2008-09, a “Long Term Settlement – Part II, that is, Work Related Allowances and Benefits was signed under Section 18(1) of the Industrial Disputes Act, 1947.
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CPCL also focuses to maintain and improve the culture of employees’ participation in the Company’s activities. Considering this, the representatives of collectives had participated in the internal Strategy Meet of CPCL to discuss and deliberate on various developmental activities identified for CPCL’s growth in the future years.
Principle Four – Organisation supports the elimination of all forms of Forced and Compulsory Labour As a proactive measure, CPCL established a Contract Labour Management (CLM) Cell headed by a Senior Manager to comply with the provisions of various Contract Labour Legislations. With the assistance of the CLM Cell, utmost care is being given for the coverage of the contractor’s workmen under Provident Fund, Employees State Insurance and payment minimum wages. Besides, a medical camp for screening anaemia, general health, diabetes and hypertension was organized for the contract labours in July 2008. More than 400 contractor’s workmen benefited in this camp. Principle Five – The effective abolition of Child Labour CPCL ensures that all forms of Child Labour practices are abolished. In order to create income-generation alternatives for the parents and prevent them to send their children as child labour to work, around 50 downtrodden women of the nearby community were distributed with Sewing Machines. Principle Six - Elimination of Discrimination in respect of employment and occupation CPCL plays a vital role in eliminating discrimination out side the workplace, that is, in the community to build a climate of tolerance and access to opportunities for occupational development. Some of the activities carried out as part of this initiative is as follows:
With a view to promote employability for the rural women, CPCL sponsored 50
women for one year Nursing Assistant Course at JV Institute of Nursing, Chennai.
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Donated Ultra sound scanning machine and semi auto analyzer to the Primary
Health Centre in Manali
CPCL bears the cost of the maintenance and running of a Crèche in Manali.
Contributed Rs.5.00 lakhs for purchase of Tamarind Plant for Self Help Group
Tribal Women at Jawadhi Hill under empowerment of Tribal Women.
Principle Seven – Businesses should support a precautionary approach to Environmental challenges. Principle Eight – Undertake initiatives to promote greater environmental responsibility. Principle Nine – Encourage the development and diffusion of environmentally friendly technologies. The following precautionary approach to environmental challenges are adopted: 1. Liquid effluents Reprocessing and reuse of Refinery effluent and city sewage is adopted in CPCL. The liquid effluent generated in the refinery and City sewage purchased from Chennai Metro water Supply & Sewage Board (CMWSSB) is recycled with use of the following clean technologies.
• Oil (free, emulsified, dissolved) removal by API, TPI separators, Dissolved air Floatation unit
• Bio-Chemical Oxygen Demand (BOD) removal by Activated sludge process and attached film process
• Removal of bacteria by Chlorination • Removal of suspended solids by Multi media Filter • Removal of Colloidal particles by use of ultra filtration Technology • Removal of Dissolved solids by use of Reverse Osmosis Technology.
2. Solid waste management 2.1 Oily sludge The following clean technologies are adopted in CPCL for solid waste management
• In-situ chemical treatment in crude oil storage tanks to reduce sludge volume from crude oil tanks
• Use of Hydrogen peroxide in ETPs to reduce chemical sludge generation from
ETPs
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• Mechanical treatment of oily sludge to recover oil and bio remediation of Mechanically treated sludge to make it environment friendly
2.2 Other solid wastes Common Treatment, Storage and Disposal Facility (TSDF) have been created by Industrial Waste Management Association (IWMA) with the approval of TNPCB at Gummidipoondi. CPCL has taken membership and obtained approval from TNPCB for disposal in TSDF. 3.0 Air pollution
Before
The following steps have been taken by CPCL by way of adoption of clean technologies to combat air pollution
• Use of low sulfur Fuel for reduction of Sulfur-di-Oxide (SO2) emission • Use of Low-Nox burners and De-Nox facilities to reduce Nox emission (Oxides of
Nitrogen) • Provision of double seal in floating roof tanks to reduce VOC emission • Continuous Stack emission monitoring in heater/boiler • 8 numbers Ambient Air quality monitoring stations are installed for continuous
monitoring of the Ambient area in and around the refinery. The following clean technologies have been under taken: Sl.No Project Purpose Cost
Rs Crore Remarks
1 Wind mill Reduction in CO2 emission
89.00 Installed in 2007
2 MS/HSD quality improvement
Reduction in vehicular emission
2615.00 Under implementation. Commissioning upto July 2010 in phases.
3 Desalination of sea water
Sustainable water supply
243.94 Commissioned in June '09.
Desalination Project Activities
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Intake well & Pump House for Sea water
Pipeline corridor for Sea water to Desal Plant
Reverse Osmosis (RO) Banks
Sand Filters
The following measures are taken for development and diffusion of environmental friendly technologies
• Use of eco friendly technologies in the Refinery
• Minimization and replacement of “use and throw-away” plastics
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• Vigorous implementation of Total Productive Maintenance (TPM) across
refinery for zero leak, zero loss & zero breakdown.
• TPM 3S kitchen competition held for the employee houses in CBR
• Solid waste management in refinery through segregation of wastes
• Creating awareness among employees on water conservation
• Environmental Literacy drive in neighboring villages and schools through
dance, drama, etc.
• Massive tree plantations in and around Refinery and nearby villages
Principle Ten – Businesses should work against corruption in all forms, including extortion and bribery.
CPCL signs MoU for Integrity Pact
Integrity Pact is a tool developed by the Berlin based Transparency International for enhancing the degree of fairness and transparency in procurement and contracts, resulting in substantial improvement in system and reduction in corruption in public dealings. By signing this MoU, CPCL joins select corporate in India who adheres to this model which binds a Company and its suppliers/contractors to ethical conduct in contracts and implementation of projects.
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In a bid to maintain complete transparency in contracts and procurements, Chennai Petroleum Corporation Limited (CPCL), has entered into a Memorandum of Understanding (MoU) with Transparency International India (TII), for implementation of Integrity Pact in CPCL.
The MoU was signed by Mr.K.K.Acharya, Managing Director, CPCL and Admiral (Retd,) R. H. Tahiliani, Chairman, TII at a function held on March 24, 2009 at New Delhi in the presence of Mr.. Pratyush Sinha, Central Vigilance Commissioner, Mr.Sudhir Kumar, Vigilance Commissioner, Smt. Ranjana Kumar, Vigilance Commissioner and Mr.S.Behuria, Chairman, IndinOil Group companies.
Mr. P. Shankar, IAS., (Retd.,) Former Central Vigilance Commissioner and Mr.Justice K.Govindarajan, Retd., Judge of the Hon’ble High Court of Madras are the Independent External Monitors, approved by CVC, for implementation of the Integrity Pact in CPCL.
Whistle Blower Policy Chennai Petroleum Corporation Limited (CPCL) endeavors to work against corruption in all its forms, including demanding and accepting bribe, illegal gratification or unjust rewards and appropriate provisions have been incorporated in the Conduct Discipline and Appeal Rules/Standing Orders applicable to employees. CPCL has introduced “Whistle Blower Policy” to ensure greater transparency in all aspects of the CPCL’s functioning, by formulating a procedure for persons to bring to the attention of CPCL, incidents of improper activities without fear of victimization.
