CDO-Foodsphere, Inc and the UN Global Compact: Our Communication on Progress CDO-FOODSPHERE, INC. (FSI) continues to support the ten principles of the Global Compact in respect to human rights, labour rights, the protection of the environment and anticorruption. With this updated communication, we intend to report additional efforts to promote the Global Compact’s principles. -- JEROME D. ONG President & General Manager Human Rights Principle 1 – Businesses should support and respect the protection of internationally proclaimed human rights; and Principle 2 – Make sure that they are not complicit in human rights abuses. Human Rights Principle 1 Notable activities that we have undertaken in support of UN Global Compact’s Principles. The activities, as discussed below, specifically addressed Principle 1 which states that businesses should support and respect the protection of internationally proclaimed human rights. On June 4, 2005, Odyssey Foundation launched the Gabay Buhay Project, a supplemental feeding initiative developed to help curb malnutrition among Filipino children. The children also underwent normal preparations like weighing, deworming and vitamin supplementation. The feeding program started with 120 undernourished children from Barangay Paso de Blas in Valenzuela City as initial beneficiaries. The first batch of these 120 previously underweight children, with ages three to six years, graduated and received clean bill of health on October 15, 2005 after 64 days of supplemental feeding, where they received food and vitamins. On December 3, 2006, another 150 previously underweight children comprised the second batch of Gabay Buhay beneficiaries, this time from Barangay Mapulang Lupa in Valenzuela City. On April 8, 2006, these children received health certificates confirming that their weight have improved to normal levels. This was followed by another batch of 160 undernourished children from Canumay, another barangay in Valenzuela, who enrolled in the feeding program from June 13, 2006 to October 2006. On-going feeding program covering the area of Bignay, Valenzuela City, already started last November 2006. Another activity that is worth mentioning was the seminar workshop conducted for Mancom (Management Committee) members. The 2-day training, held last February 17 & 18, 2005, 560 West Service Road, Paso de Blas, Valenzuela City 1441, Philippines ● Tel.: (632)294-1111● Fax: (632)294-0682/83 Email: cdo@cdo.com.ph● Website: www.cdo.com.ph entitled Personal Effectiveness Workshop, was only one of the scheduled series of trainings lined-up for Mancom as part of the Management Development Program designed for them by the Human Resources Department. The seminar itself was a manifestation of the company’s pursuit/goal to promote and further develop and improve the competencies and skills of its management team in order for them to effectively face the challenges of the current business environment. The organization believes that people, as represented by the team, is the most important of all its assets. Thus, being such, the organization finds ways to make them feel that they are given importance and due recognition for their enormous contributions to the success of the organization. Similarly, the Supervisory Competency Development Program (SCDP) for Supervisory personnel and Staff Competency Development Program (StCDP) for rank and file employees were also launched in 2005 and continued until 2006. Like the seminar held for Mancom, these series of trainings also address the need of supervisors as well as rank and file employees to further develop and enhance their skills and competencies as they continue on with the performance of their respective jobs. While those mentioned above are only internal trainings, it is also worthwhile to note that these are only some of the internal trainings being conducted and also, the company, aside from the opportunities offered internally, continues to send participants to trainings outside the company and even outside the country. The health & safety committee was revitalized and along with it, a safety and health policy was formulated. Awareness, education and trainings related to safety and health were undertaken. These activities instilled in everyone the seriousness of working on improving the safety conditions at work. As one of the flagship programs of the DOLE-OSHC (Department of Labor & EmploymentOccupational Safety and Health Center), the company seriously adopted the Zero Accident Program (ZAP), which essentially is the preservation and promotion of safety in the workplace. The objective of this Standard is to protect every workingman against the dangers of injury, sickness or death through safe and healthful working conditions, thereby assuring the conservation of valuable manpower resources and the prevention of loss or damage to lives and properties, consistent with national development goals and with the State's commitment for the total development of every worker as a complete human being. The No LTA (No Lost-TimeAccident) Program was undertaken in support of ZAP. Number of days without Lost Time Accident were measured and set, and milestone achievements are to be celebrated with incentives back to the workers. A monitoring mechanism was also set up, so everyone looks out for one another’s welfare. Coordination with the city representatives of the National Disaster Coordinating Council, thru the Philippine National Red Cross and the city Fire Department, were made which resulted in further enhancing the training of the company’s first aide, and emergency response teams. 560 West Service Road, Paso de Blas, Valenzuela City 1441, Philippines ● Tel.: (632)294-1111● Fax: (632)294-0682/83 Email: cdo@cdo.com.ph● Website: www.cdo.com.ph In fact, on-going seminars and workshops are continuously held to ensure that the company has enough of said response teams. Among the seminars undertaken were the following: Industrial First Aid & Life Support Training, Emergency Evacuation & Management Course. Along with the above, companywide fire protection and control, earthquake drill, and evacuation drill were held, to ensure that everyone knows what to do in emergency situations. These exercises have helped instill in every employee the adoption of safety not only in the workplace but in their households as well. Other aspects of the safety and health were also promoted via education on occupational illnesses, exposure to hazardous materials and processes, and even other family related concerns and awareness, like reproductive health, family planning, etc. Additional benefits approved in line with promoting employees’ welfare were the ‘Solo Parent Benefit Policy’ wherein the company grants parental leave1 with pay and flexible work schedule to all solo parent employees for the purpose of lending support to the employee during the times where his/her presence is needed in performing his/her duties and responsibilities as parent pursuant to Republic Act (RA) No. 8972; and the ‘Motorcycle Loan Program’ as a means to provide assistance to employees in the acquisition of motorcycle unit to be used as a means of transportation to and from the company. 2 Labor Standards Labor Standards Principle 3, 5 and 6 FSI recognizes the union’s right as guaranteed by the Constitution to perform a mutual obligation to meet and convene promptly and in good faith for the purpose of negotiating an agreement with respect to terms and conditions of employment; and executing a contract incorporating such agreements. The new CBA in fact was just concluded last August 1, 2006. With this, both management and labor are looking forward to another 5-year of industrial peace and harmony. Meantime, on-going efforts to continuously create better working conditions and environment keep the cooperation alive and working. The company also supports the prohibition of child labor, and therefore strictly enforces hiring of employees 18 years old 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 labor Principle 5 – The effective abolition of child labor Principle 6 – The elimination of discrimination in respect of employment and occupation Parental leave – refers to the leave credits granted to solo parent employee other than the agreed Sick Leave/Vacation Leave of the company to allow him to earn compensation equivalent to a maximum of seven (7) working days without reporting for work, provided that he will use this leave in performing his duty as a single parent or where his presence is needed by his child. 2 The vehicle must be covered by a comprehensive motorcycle insurance and using of safety gear (helmet) is required. 1 560 West Service Road, Paso de Blas, Valenzuela City 1441, Philippines ● Tel.: (632)294-1111● Fax: (632)294-0682/83 Email: cdo@cdo.com.ph● Website: www.cdo.com.ph and above. As additional proof of this, the average age of employees is between 21 to 28 years old. The company has also incorporated in its Suppliers Accreditation and Audit Program the prohibition of child labor, as one of its requirements to ensure that only qualified employees engage in the supply of its products and materials. Further, in cases, where the company needs to engage the services of child endorsers, in the matter of its TV and print advertisements, necessary permits and contracts are secured and executed, and other stringent requirements from the Department of Labor are followed, to ensure that the children’s rights are protected. We also see to it that personal care is taken, and a safe environment is promoted whenever the children are around. The company also promotes non-discrimination in employee recruitment, whether in gender, age, religion or physical ability, even education. We have in fact some employees with slight disabilities, and yet are productive employees. As also practiced, while the celebration of the mass are held for Catholics, ecumenical services are also held for other Christian brothers and sisters. A testament that religion is not discriminated against. At the same time, it can be said that even education is not discriminated against, for the company continue to employ people who are challenged in that area, and have in fact continued to support these employees in personal development so they can at least keep abreast, and have proven not only their loyalty but their productivity in their areas of specialization. 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 Environment Principle 8 & 9 Care for the environment is also evidenced by compliance to DENR requirements of clean air and water. The company in fact just recently was given a 5-year permit to operate its “anti-air and water pollution” devices, effective January 5, 2007 to August 28, 2011. By itself, it helps promote and instill not only consciousness but more so commitment from management and its employees. 560 West Service Road, Paso de Blas, Valenzuela City 1441, Philippines ● Tel.: (632)294-1111● Fax: (632)294-0682/83 Email: cdo@cdo.com.ph● Website: www.cdo.com.ph Anti-Corruption Principle 10 Anti-Corruption company has also endeavored to work against corruption, in whatever form, an example of which is the Principle 10 – pursuit of justice in the case of the “extortion” case Businesses should against one attorney and broadcaster. Hard as it maybe, work against all forms the company tries to set an example so that others will of corruption, including not suffer the same aggravation the company was extortion and bribery. exposed to due to the workings of the mind of an unscrupulous individual. To date, the Integrated Bar of the Philippines (IBP) has already released a resolution adopting and approving a two-year suspension from the practice of law, of the person charged with actuations constituting deceitful conduct (internally coined as the “Batas” case). The case is now with the Supreme Court for final ruling. The With the above, FSI continues to endeavor towards continuously trying to improve itself, and help promote the ten principles of the Global Compact. And in so doing, helps provide not only a better and safe workplace, but one that its employees can be truly proud of. 560 West Service Road, Paso de Blas, Valenzuela City 1441, Philippines ● Tel.: (632)294-1111● Fax: (632)294-0682/83 Email: cdo@cdo.com.ph● Website: www.cdo.com.ph