Business Responsibility
Guidelines for Coke
based Cupola Foundries
for Ajmer Zila Laghu Udyog Sangh
(AZLUS)
National Voluntary Guidelines- An Introduction
Developed under the
guidance of Ministry of
Corporate Affairs.
Process managed IICA
and GIZ
Drafting Committee
included experts and
practitioners from
diverse stakeholder
groups
Adopted in 2011, after
extensive consultations,
conducted across cities
and regions
* Emphasis on BR
* Lays down basic requirements of businesses to function responsibly
* “Responsible Business” conduct refers to the commitment of businesses to operating
in an economically, socially and environmentally sustainable manner
* A guidance document for businesses of all size, ownership, sector, and geography
* Take into account the realities of Indian business and society
Structure: 9 Principles, 48 core elements
Ethics, Transparency, and
Accountability
• Governance structures, procedures and practices to ensure ethical
conduct in transparent manner
Product Life Cycle Sustainability
• Optimal use of resources from design to disposal of the product
Employees’ Wellbeing
• Maintain equal opportunities, wellbeing and skills development
within business and in value chain
Stakeholder Engagement
• Systematic and continuous stakeholder engagement in a just, fair
and equitable manner
Human Rights
• Respect and promote human rights for all concerned in business
and across the value chain
Environment
• Identify environmental risk and opportunity through progressive
environment management system
Policy Advocacy
• Represent business issue in collective and responsible manner
Inclusive Growth
• Align policy and frameworks in line with Country’s Agenda and
create value for Society
Customer and Customer Value
• Product disclosure in a truthful and factual manner and create
consumer awareness
Why we need guidelines for Foundry sector
India ranks third in the world based on number of foundries and 6th based on the
output
The industry is characterised as a high risk business and owing to hazardous
operations
Factors such as sub-optimal working conditions, lack of proper training and safety
equipment, environmental pollution, ineffective measurement systems and limited
us of technology are some concern areas
Businesses are increasingly beginning to realize the impact of their actions
on society as well as the environment
Methodology for formulating the Guidelines
Literature
Review
Stakeholder
Interactions
Field Visits
• In-depth desk research to understand the key issues faced in this sector
• Analysis of reports* based on studies conducted by FMC were also analysed
• Preliminary report on ‘Environmental, Social and Governance Issues in the
Foundry Industry’ was prepared
• CUTS team met with members of AZLUS in Ajmer to discuss the preliminary
report
• The team also got an understanding about AZLUS and its member’s
approach/perspective towards Business Responsibility (BR) issues
• CUTS team visited few foundries during the Ajmer visit to get an understanding of
the ground realities
• These included a mix of large and small foundries
*Diagnostic Study of Cast Iron Foundry Cluster Jaipur and Ajmer Block Cutter Casting Cluster, Foundation for MSME Clusters, 2012; A Study on
Indian Foundry Sector, MSME Foundation, 2009 etc
Principle 1: Businesses should conduct and govern themselves with
Ethics, Transparency and Accountability
Core Elements
Develop further improved governance structures
Promote standard practices to ensure responsible
production at all levels. BMO can lead this process of
standardization
BMO can guide members to easily adhere to all applicable
compliances/rules/regulations by providing necessary
knowledge/resource offering assistance/training as and
when required
Principle 2: Businesses should provide goods and services that are safe
and contribute to sustainability throughout their life cycle
Core Elements
All the resources including fuel, water, coke, pig iron, sand,
molasses, scrap etc. should be utilized more efficiently and with
proper standard measurement systems. Greater monitoring
should be undertaken by foundries to ensure minimum wastage
Adopt greater use of energy efficient and cleaner technology in
production processes to ensure energy efficiency
Facilitate skill development and other relevant trainings to
enhance their business
Adopt testing facilities for raw materials and finished products for
improving quality and standardization. BMO can create such
common facility
Principle 2: Businesses should provide goods and services that are safe
and contribute to sustainability throughout their life cycle (cont…)
Core Elements
Adopt practices for reusing materials like waste sand, rejections
and working towards proper disposal of solid waste like slag and
waste sand. BMO can promote such activities
Undertake regular monitoring and maintenance of equipment to
ensure proper and efficient functioning for instance, developing
periodic equipment maintenance plan
Prepare product manufacturing flow chart with the quantity of
raw material required for daily use for easy understanding of
workers
Principle 3: Businesses should promote the well-being of all employees
Core Elements
Respect the right to provide access to appropriate grievance
redressal mechanisms for all employees
Ensure timely payment of minimum wages to employees
Enroll employees in social security schemes such as health
insurance etc.
Promote design and layout to have adequate light, ventilation,
proper drinking and sanitary facilities as well as temperature
and noise minimisation etc.
Provide training and support easy implementation of
preventive measures for possible health hazards. BMO can
provide such training and consultancy support
The use of personal protective equipments such as helmets,
gloves, glasses, ear plugs, shoes, masks proper garments etc.
should be further encouraged and their use monitored
Promote regular health check-ups are conducted for their
employees, with BMO taking the lead
Principle 4: Businesses should respect the interests of, and be responsive towards all
stakeholders, especially those who are disadvantaged, vulnerable and marginalised
Core Elements
The BMO can conduct regular review meeting
with members to discuss any concerns/
challenges as well as best practices which could
be shared with respect to waste disposal,
pollution minimization, etc.
In case of conflicting issues, businesses should
work towards resolving differences with
stakeholders in a just, fair and equitable manner
Principle 5: Businesses should respect and promote human rights
Core Elements
Promote and further integrate respect for
human rights in management systems, in
particular by assessing human rights impacts of
their operations and ensuring all individuals
that are impacted in any way by the business
operations have access to grievance redressal
mechanisms
Human rights of all relevant stakeholders and
groups within and beyond the workplace,
including that of communities, consumers,
vulnerable and marginalized should be
respected
Principle 6: Business should respect, protect, and make efforts to
restore the environment
Core Elements
Utilize natural and manmade resources in an optimal and responsible
manner and adopt measures to improve efficiency and reduce
wastage
Continuously seek to further increase energy efficiency by improving
or upgrading systems, implementing innovative mechanisms and
adopting better technology for reducing energy consumption
Seek to reduce dependence on conventional sources of energy and
adopt cleaner methods of energy production such as solar energy
etc.
Ensure the sustainability of resources by reducing, reusing, recycling
and managing waste effectively
Continuously seek to improve environmental performance
Develop Environment Management Systems (EMS) and contingency
plans and processes that help them in preventing, mitigating and
controlling environmental damages and disasters, which may be
caused during operations
Principle 7: Businesses, when engaged in influencing public and
regulatory policy, should do so in a responsible manner
Core Elements
While pursuing policy advocacy, ensure that the
advocacy positions are consistent with the
Principles and Core Elements contained in
these Guidelines
To the extent possible, utilize the trade and
industry chambers and associations and other
such platforms to undertake such policy
advocacy
Principle 8: Businesses should support inclusive growth and equitable
development
Core Elements
Work to understand the impact of operations
on social and economic development, and
respond through appropriate action to
minimize the negative impacts
Innovate and invest in products, technologies
and processes that minimise the negative
impacts and promote the wellbeing of society
Principle 9: Businesses should engage with and provide value to their
customers and consumers in a responsible manner
Core Elements
Always promote and advertise products by
providing correct and complete information
about the product and its usage to their clients
Always work towards exercising due care and
caution while providing the end product to
ensure its safety
Thank you!