Communication on Progress Report
Name of the participating company:
VAPTSAROV HOLDING AD
Country: BULGARIA
Sector: HEAVY MACHINE BUILDING INDUSTRY
Reported period: 30 September 2009 – 30 August 2010
CONTENT:
1.
Statement of continued support for the Global Compact
2.
Description of practical actions taken to implement the Global
Compact principles
2.1
Human Rights
2.2
Labour Standards
2.3
Environment
2.4
Anti-Corruption
3.
Sharing the COP with the company’s stakeholders
1. Statement of continued support for the Global Compact
Sofia, January 2010
Statement of Continued Support for the UN Global Compact
We at Vaptsarov Holding AD, Bulgaria, firmly believe that for a company to be successful it
should not be only concerned by economical gain. We attach highest priority to always
maintaining our status of a good corporate citizen and to advance into reaching new moral and
spiritual levels: the ever higher social responsibility. This can be only materialized through very
demanding requirements for personal integrity, values, mission and vision of our people.
We at Vaptsarov Holding AD recognize UN Global Compact’ principals as being the guidelines
towards reaching this aim and are committed to follow and promote them on a sustainable
basis.
B. Bonev
Chairman of the Supervisory Board
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2. Description of practical actions taken to implement the Global Compact
principles
2.1 Human
Rights:
Principle 1: Businesses should support and respect the protection of
internationally proclaimed human rights within their sphere of influence; and
Principle 2: make sure that they are not complicit in human rights abuses
1. The company demonstrate its human
rights protection policy in any of the
following documents:
- Code of Ethics
- Corporate governance program
- Training and education plan
- Sponsorship, donations and social
activities run by the HR office
2. There is a special committee in charge
of implementing this policy:
Human Resources, Corporate and Social
Responsibility and Ethics Committee. The
Committee is composed of employees from
different levels of the organization.
3. The company have special projects, for
assisting non-governmental organizations
to support disadvantaged social groups:
The Human Resources office is engaged with
all activities and communicates them to all
employees who participate on a voluntary
principle.
Actions and indicators – examples:
1. VAPTSAROV HOLDING (VH) accepts its social
responsibilities, and respects and upholds the
fundamental rights of its employees. The various
principles are also reflected in the company’s
internal documents:
The Code of Ethics was adopted in March 2010 by
all company employees and its implementation is
monitored by the Human Resources, Corporate
and Social Responsibility and Ethics Committee.
VH follows the regulation of the United Nations
International Human Rights and International
Labour Organization conventions as part of the
Bulgarian Legislation regulations.
The Corporate Governance Program is available to
external business and non-governmental partners.
VH Corporate Governance Program is registered
with the Bulgarian Financial Supervision
Commission.
The Human Resources office also provides
information about VH engagement with Human
Rights protection during the process of selection,
employment and integration of new employees.
2. VH supports the Human Rights throughout:
- Human Resources
- Free of charge dental and medical healthcare for
the employees
- Decent working conditions, in compliance with the
main standards in the field of labor and social
rights
- Permanent improvement and upgrade of
employees’ qualification and skills
- Employees motivation methods
- Corporate Social responsibility
- Following the UN Global Compact principles
- Development and implementation of Code of
Ethics
- Cooperation and respect of the interests of all
parties involved - community, local authorities,
potential investors, employees, customers,
suppliers, distributors, banks, supervisory bodies,
media, consultants, etc.
3. Social activities
Development of Traineeship program.
VH representatives participated in a Forum
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“Careers 2010”.
Traineeship program for students started in August
2010.
Participation in volunteering days and programs for
support of disadvantaged children:
 VH participates in the initiative Manager for a
Day of Junior Achievement, thus supporting the
School of Economics Intelekt in the city of
Pleven.
 Every year VH’s employees do voluntary work
and donations for the homes for disabled.
children and elderly people in the city of Pleven
 VH painted and repaired the fence of the home
for abandoned children Detelina, in the city of
Pleven.
In-house donation campaign to collect money for
supporting the children from BALIZ disadvantaged children institution in the city of
Pleven.
The data is taken from: internal reports
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2.2 Labour
Standards:
Principle 3: Businesses should uphold the freedom of association and the effective
recognition of the right to collective bargaining;
Principle 4: the elimination of all forms of forced and compulsory labour;
Principle 5: the effective abolition of child labour; and
Principle 6: eliminate discrimination in respect of employment and occupation.
1. The company demonstrate its human
Actions and indicators – examples:
rights protection policy in any of the
1. The various principles are also reflected in the
following documents:
VH’s internal documents.
- Code of Ethics
- Corporate Governance Program
VH has a plan for employment, training and career
- Training plan
development, the criteria being transparent for the
- Sponsorship, donations and social
employees. VH has clear rules regarding working
activities run by the HR office
hours, breaks, etc. Job vacancies’ advertisements
- Industry Collective Bargaining
guarantee equal access to all candidates.
Agreement
- Protocol for Nomination of Labour
Training plan is prepared based on the needs of
Conditions Committee
each employee in order to fulfill their tasks as well
as the compulsory occupation skill regulations.
2. There are a special committees in
Promoting and developing the employees is part of
charge of implementing this policy:
VH culture with view of the long-term strategic HR
Human Resources, Corporate and Social
development planning.
Responsibility and Ethics Committee
Labor Safety Committee
VH follows the principles of free choice of
Environmental Committee
employment, no forced labor, no child or underage
labour; special protection for trainees aged 16 –
18, special protection for women; special protection
for employees with decreased labour capacity.
VH applies the Machine Building Chamber’s
Industry Collective Bargaining Agreement.
2. The Committees monitor VH’s following the
principles of equal opportunity and equal treatment
are guaranteed. According to VH’s Code of Ethics
and the Labor Legislation in Bulgaria, no forms of
discrimination are tolerated.
The Labour Conditions Committee enhances the
activities of the employer on providing health and
safety at work.
Activities for improving labor conditions in the
workshop:
- Refurbishment of the painting warehouse;
- Refurbishment of bathrooms, change rooms;
- Installed reducer on the sandblasting chamber
wagon.
- Installation of a new dental treatment space.
During the first six months, the following trainings
were performed:
 Internal trainings and qualification of:
- Fitters;
- “Product safety and handling” personnel;
- Painters;
- Welders;
- Forklift operators;
- Internal auditors;
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 External trainings:
- Up-to-date welding standards;
- Regulation on instruction for safety labor
conditions.
VH plans the establishment of an in-house
Professional Training Center to conduct all
necessary and obligatory trainings and
qualifications for VH employees and external
customers.
Employee motivation: 10% of the consolidated
profit before tax of VAPTSAROV HOLDING to be
allocated to the employees in a form voted by the
Managing Board.
VH provides free of charge dental and medical
care to the employees and provides health status
monitoring via an independent medical
organization. This organization also monitors the
workplace factors influencing the employees’
health.
Each employee is entitled to daily lunch vouchers,
covering half of the lunch cost.
VH has a system to hear the opinion of the
employees – 12 committees are formed and there
is a formal representation of the employees in the
management of the company.
There are special boxes for recommendations and
complaints located in three places.
Online Forum is planned to be created and put at
the disposal of the employees.
Occupational health and safety management:
Over the reported period no fatal work accidents;
1 work accident was registered.
Day lost due to work accidents 3.
Management of VH and HR office will continue to
develop the organization by helping individual
members reach their full potential through training
and career guidance.
The data is taken from internal reports
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2.3
Environment:
Principle 7: Businesses should support a precautionary approach to environmental
challenges;
Principle 8: undertake initiatives to promote greater environmental responsibility;
Principle 9: encourage the development and diffusion of environmentally friendly
technologies.
1. The company demonstrate its
Actions and indicators – examples:
environment protection policy in any of
1. VH accepts its environmental responsibilities,
the following documents:
and the principles reflected in the VH’s
- Management Policy
Management Policy:
- Business Plans
- Improvement of the working environment and
the Environment consciousness.
2. There is a special corporate
- Diligent compliance with the international and
environmental policy.
national regulations.
- Management Policy
- Efficient use of natural resources and reuse
3. There is a special person and committee
and recycling of wastes and their reduction.
in charge of implementing this policy.
2. VH allocates Human resources for in-house
Labour Safety and Environmental Protection
training campaigns.
Responsible.
Activities under the section “Eco responsibility” in
Labour Safety Committee
the Business plan:
Environmental Committee
- 2 printing machines located in VH for reprint on
used sheets;
- Installed energy saving lights;
- Waste separation;
- Usage of water solving paints;
- Ongoing refurbishment of sandblasting
chamber.
3. The Environmental Committee – discussed
issues and decisions are transmitted for
information to representatives of all company
departments.
Labour Safety and Environmental Protection
Responsible regularly submits the necessary data
to the Regional Inspectorate on Environment and
Water.
VH has started the process of preparation for
certification under the Management System
standards ISO 14001 and ISO 18001 and together
with the implemented ISO 9001:2008 –to move to
the Integrated Management System.
VH initiated the development of training activities in
2010 to advance environmental and health and
safety awareness among employees.
One of the VH companies (VAP Hydro) has taken
part in UNEP NC open information stand at the
International Expo “Save Energy, Save Water,
Save the Planet”. The event gathered various
parties involved in Energy Efficiency, Water and
Sewage Technologies, Waste Management and
Recycling.
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One of the VH companies (VAP Hydro) actively
participates in the production of turbines and hydro
power equipment for renewable hydro power
energy.
During the period (Sept.2009-Aug.2010) the
produced turbines and hydro power components
for hydro power plants (HPP) are 491 000 kW/h
equivalent to 270 050 kg saved CO2 emissions*.
*based on formula: 1kW/h = 0,55 kg CO2
VH has taken some steps for the reduction of
greenhouse gas emissions, solid waste, etc. VH
concentrates on monitoring and measurement with
reports to the regional environmental control body.
(see Table 1 bellow).
- Dust: the indicators show overdose of dust. The
management of VH has taken steps to modernize
the sand blasting chamber by transforming it into a
particle blasting one. The project is to be
completed by December 2010.
- Paint dissolver pollution: The indicators are within
the norms. In case of annual consumption > 5 tons,
the company has to make an emission
management plan.
The data is taken from internal reports
Table 1
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2.4 AntiCorruption:
Principle 10: Businesses should work against all forms of corruption, including
extortion and bribery.
1. Document that bear on elements of anticorruption policy:
- financial rules and orders regarding
gifts, social expenses and
representational expenses
- purchase rules
- description of connected persons,
possible conflict of interests
2. The company have a document,
describing the anti-corruption and antibribery policy:
- Anti-corruption Policy
- Code of Ethics
3. There is a person charged specifically
with monitoring the implementation of this
policy:
Security and Compliance Assurance Expert
Actions and indicators – examples:
1. VH observes strict rules with regard to
donations,
including
for
political
parties,
guaranteeing transparency.
2. The employees are informed about VH Anticorruption Policy.
 The management of VH has signed a Conflict
of interests Declaration with respect to the
Code of Ethics rules.
 Internal training of the VH’s management
regarding conflict of interests was conducted by
the legal advisor of VH.
 Participation of the Chairman of the
Supervisory Board in Regional Conference: 9 11 December, 2009, Sofia, Bulgaria, under the
aegis of the UNODC in cooperation with
Regional Anti- Corruption Initiative Secretariat.
The Chairman was the only representative of
the civil society to be invited.
3. The HR Office, Human Resources, Corporate
and Social Responsibility and Ethics Committee
with the cooperation of Security and Compliance
Assurance Expert bear the responsibility for
preventing and ascertaining cases of corruption, as
well as for abiding by the anticorruption policy of
VH.
The data is taken from: internal reports
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3. Sharing the COP with the company’s stakeholders – available links to the
company’s Communication on Progress and additional information on the
location of the COP report
http://vap.bg/global_compact.php?lang=en
http://vap.bg/global_compact.php
Contact person:
Desislava Grigorova
HR Manager
Contact information:
Vaptsarov Holding AD
T: +359 64 970701 ext.123
F: +359 64 970710
M: +359 886 627717
E: desislava.grigorova@vap.bg
A: 6 Grivishko shouse Street
5800 Pleven, Bulgaria
www.vap.bg
Date of submission: 02.09.2010
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