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and those having the greatest influence on business success.
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as well as external stakeholders including customers and non-governmental organisations.
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During recent years, Ansell has made significant progress incorporating environmental, social and governance standards into our business operations, implementing actions to address gaps and enhance strengths in the key focus areas.
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to these targeted activity areas, and we report on our progress and challenges against these goals in this report.
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A crisis is an adverse incident or series of events that has the potential to severely damage an organisation’s employees, operations, business, brand or reputation.
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To protect its global stakeholders and to prevent the interruption of our vital operations, Ansell is committed to employing all appropriate strategies for anticipating and controlling crises and mitigating risk.
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refresh employees on their roles, responsibilities and resources should a natural or operational disaster occur.
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During FYAnsell’s Executive Leadership Team participated in Crisis Management & Recovery training at Ansell’s Cyberjaya, Malaysia hub to experience CMP response firsthand as well as to understand their vital roles in crisis management and recovery.
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Left and right: Crisis management training is key to preparedness and successful recovery.
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Training sessions are shown here at Ansell’s facilities in Thailand and Lithuania.
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as ours will need to manage a diverse and dynamic range of social and environmental factors.
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This figure contains just a few examples of the broad trends recently observed in the countries in which we operate.
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with our belief that sustainability, responsiveness and resilience are important drivers of value in our business.
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Sri Lanka, Sweden, Turkey, the UK and elsewhere.
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Our Commitment to Labour Standards For to millions of people around the world.
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We are proud of our track record in creating a safe working environment at Ansell and we strive to promote and respect the rights and well-being of all workers.
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As announced earlier this year, following the increased scrutiny of labour practices in the glove manufacturing industry, Ansell committed to a comprehensive review of labour standards in our own facilities and those in our supply chain.
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of our people and for those working in our supply chain.
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Reviewed national standards, ILO conventions and other recognised guidelines to determine what standards are legally appropriate in the countries in which Ansell operates and how they could contribute to Ansell’s over-arching objective of securing employee health, safety and well-being.
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for those suppliers to ensure they implement corrective action plans.
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with suppliers as they progress corrective action, with progress measured by follow-up audits.
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the decision to seek an alternative supply of its products.
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We concluded that we have appropriate standards in place.
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and safety standards, to ensure the health and safety of our people and those working in our supply chain.
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• Some of our manufacturing sites fell short against our labour standards on overtime and rest days.
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• Audits generally provided positive platform for improvement.
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Employees and wider workforce Our Approach and Focus Ansell places a high priority on risk identification and management throughout our operations and has processes in place to assure the integrity of our Risk Management Framework.
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This Framework is based on a comprehensive program including integrated policies, procedures, systems and controls and regular reporting that seeks to identify, assess, mitigate and prevent risks involved in and/or arising from the conduct of Ansell’s operations and business relationships.
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Consistent with our Human Rights Statement, Ansell’s approach concerning the management of human rights risks, including slavery and human trafficking, is necessarily ‘people centred’ and seeks to use due diligence to identify and assess where potential impacts may be potentially severe (and/or have the capability to become so) and therefore require prioritised action as part of a systematic approach.
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In the context of Ansell’s two main business units, Industrial and Healthcare represent broadly equal parts of our overall business but with distinct manufacturing and supply chain risk profiles concerning slavery and/or broader human rights risks.
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of the risks in each of our business units and specific product lines.
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We considered the human and labour risk profiles of the jurisdictions where our manufacturing sites and direct tier suppliers are located and the overall need to develop the maturity of labour standards in certain jurisdictions.
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This assessment indicated that we should prioritise our efforts and on-going review and actions on disposable glove manufacturing in Southeast Asia, then progressively expand our risk assessment and approach, and prioritise further steps concerning other areas of our business operations and relationships.
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Ensuring Our Own House Is in Order In FYAssessment with an external global, non-profit sustainability consultancy.
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This process identified strengths and gaps in our labour policies and procedures.
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In FYteams then implemented an ambitious agenda to update and standardise our practices across our global operations.
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We continued our progress on creating positive transformational change in human rights at Ansell in FY19.
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all standards, health and safety, environment and business ethics, providing independent verification of Ansell compliance with these standards.
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Where non-compliance was identified, we created specific action plans to mitigate any deviance from our own policies and procedures as well as from local law in the countries in which we operate.
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To ensure transparency, Ansell is a member of Sedex and all audit reports are uploaded to the Sedex digital data platform.
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and are scheduled to be completed by December 2019.
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Ensuring our Supply Chain is up to Standard As part of Ansell’s review of labour standards in our supply chain, we also reviewed the workplace standards of our suppliers.
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The reviews comprised third party audits covering hours and overtime worked, rest days taken, practices associated with the recruiting of foreign employees, together with possible human rights violations including freedom of movement and association.
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Ansell’s purpose was to establish the facts through third party review, and to work collaboratively with its suppliers to ensure appropriate standards were understood and met, and that breaches were identified and unacceptable practices removed.
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This is consistent with Ansell’s general approach to supplier relationships, where long-term business relationships are highly valued.
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Most of Ansell’s suppliers have responded positively to the audits and have demonstrated clear improvement, and Ansell continues to monitor corrective action through follow-up audits.
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One supplier was terminated owing to its labour standards being found to be persistently deficient in one key respect.
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But as a last resort, termination is an entirely appropriate response for any business to ensure its standards are met.
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a clear message throughout the supplier cohort that Ansell’s commitment to high standards is paramount.
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Compliance to Working Hours and Wages Following the Human Rights Impact Assessment conducted in FYproduction management at all Ansell manufacturing sites completed comprehensive training on the SMETA 4-Pillar Standards which embedded the Ethical Trading Initiative (ETI) Base Code, an internationally recognised code of good labour practice founded on the ILO Conventions.
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hours are in accordance with local laws and labour standards.
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Ansell manufacturing sites use comprehensive tracking tools to monitor compliance (including the use of card, finger or face scanning to capture worker attendance and automated time-clock systems).
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All Ansell manufacturing locations in Asia track employee attendance on a daily, weekly and monthly basis and use this data to monitor worker productivity, staffing needs, labour cost management, and the support of fair and consistent behaviours by supervisors and managers.
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Many of Ansell’s production workers expect to receive high levels of overtime and desire to maximise their work hours as much as possible over short periods – and in the case of migrant workers, to maximise earnings during their time spent away from their families and their home country.
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Ansell’s adherence to legal rest day requirements and overtime limitations in our countries of operation often cause employees to look instead for work at other local companies who will offer them additional overtime (without rest days) despite existing but sometimes unenforced regulations.
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Ansell is seeking to ensure a fair wage for fair hours of work for all its workforce and looking to help others in our industry move to this position.
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at, or in many cases, above the prevailing market-rate.
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In response, Ansell offers competitive compensation and an attractive work environment to retain employees and to recruit and attract a dependable workforce.
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to preemptively ensure compliance with local requirements and limitations by having excess workers available – a reserve pool.
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their operations in line with our Transformation Program.
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Additionally, we re-structured shift roster systems and upgraded local Human Resource Information Systems to monitor thousands of worker movements.
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Ansell aligns with the UN Guiding Principles on Business and Human Rights as well as the International Labour Organisation (ILO) core Conventions and respects human rights as set out in the Universal Declaration of Human Rights.
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Ansell’s commitment to respecting human rights extends to its supply chains and we seek to engage with suppliers and contractors who aspire to do the same.
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with major activities in many countries, with different workforce standards and cultures, and different approaches and methods for regulation.
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is neither desirable nor practical when considering the various issues and stakeholder views that require consideration.
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Ansell will continue to evaluate the advisability and practicality of implementing any additional labour standards.
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Managing a global production workforce is a complex process.
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Employees and wider workforce workforce acquisition, workforce management and workforce optimisation challenging.
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However, we have re-affirmed a clear position in full compliance with applicable local national laws and standards, at a minimum.
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to create dashboards that monitor headcount, turnover, gender diversity, and employee movement on a real-time basis.
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This technology enables Ansell to be more proactive in understanding human capital issues and thus act on a timely basis.
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Employees are central to the Company’s business success, and Ansell focuses significant resources on workforce acquisitions, management and optimisation, on a company-wide basis.
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In addition, members of Ansell management regularly provide people-risk updates to the Executive Leadership Team, as well as the CSR & Risk Committee and Human Resources Committee of the Ansell Board. Freedom of Association and Employee Representation Ansell respects the right to freedom of association and collective bargaining in all its businesses.
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have the right to join or form trade unions of their own choosing and to bargaining collectively.
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Ansell has adopted an open attitude towards the activities of trade unions and their organisational activities.
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core ILO Conventions maintaining healthy industrial relations and meaningful social dialogue across all manufacturing plants.
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The main element of the policy is that the workers’ representatives are not discriminated against and have access to carry out their representative functions in the workplace.
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population is represented by a union or independent workers’ committee.
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All matters relating to wages, benefits, grievances, health and safety issues take place through effective management and worker dialogue.
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can give feedback through worker surveys and a confidential compliance hotline, in addition to through the regular direct management and human resources channels.
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Forced Labour Ansell is committed to treating its employees with dignity and respect.
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or threat, or by physical confinement, human trafficking, slavery or any other means.
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Ansell will not demand that employees surrender any government-issued identification, such as a passport, to the company as a condition of employment.
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Recruitment Fees Ansell acknowledges a major cause of forced labour in global supply chains is the charging of recruitment fees and related costs from foreign workers.
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Ansell has a zero-recruitment fee policy, meaning Ansell does not require any of its employees (including foreign workers) to pay any recruitment fees or other related fees for their employment.
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Given the increased scrutiny of labour practices in Malaysia in FYthe prevention of debt-bonded labour within our supply chain.
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These include implementing a new Foreign Workers Recruitment Policy, enhanced training on modern slavery and conducting worker interviews and self-assessments.
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We have also been working closely with our licensed labour agents (who hire the foreign workers) to implement more rigorous recruitment standards.
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We assessed these labour agents against a set of criteria and the appointed agents have signed agreements acknowledging Ansell’s expectations and requirements.
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Ansell will not hire any employee or engage a contingent worker (an individual hired through a third-party staffing agency to perform temporary work) below the age of 18 years for any job.
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If applicable laws impose a higher minimum age requirement than with the law.
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H.M. Queen Silvia of Sweden to combat child abuse, child labour and child sexual abuse.
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to uphold similar employment practices with regards to forced labour and child labour.
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Employee Health and Safety Ansell’s and Safety (EHS) policies apply to our operations everywhere, including new acquisitions.
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Our global EHS teams continuously work to raise safety standards at all Ansell locations, and to identify and manage EHS risk.
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We evaluate our compliance to regulatory requirements as well as to our own policies and procedures.
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We identify opportunities for improvement and share exemplary practices and new innovations amongst our global EHS team.
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like many multinational companies, follows the U.S. Occupational Safety and Health Administration (OSHA) record keeping rules and formulas to record and measure injury and illness rates worldwide.
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Ongoing training is vital to maintain safety performance at the highest level.
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In FYlaunched high-risk safety surveys at all sites – manufacturing plants, warehouses and office locations – to enhance safety awareness and teach proper procedures to machine operators.
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