CorporateSocial Responsibility

Supply Chain ….from Fine Practice to Competitive Advantage Opportunity: Social Impact Plans and National / Local Content

Milano 30 Maggio 2013 - P. Di Rubbo

NPA1362

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STRATEGY : Wide-Ranging Process

TP proposes a key for reading CSR based on a wide-ranging strategy, improving its “Stakeholders involvement” process on the base of Sustainability principles

Method: starting from an interior marking of vision, mission and objectives,

to go on reading the CSR through Sustainability Triple Bottom line promoting innovation and change

Development: moving tactically step-by-step toward a Strategic Approach to CSR. From the short-term plan to the long-term plan.

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STRATEGY: Strategic evolution of CSR

“Tactical” “Strategic”

All Stakeholders All Stakeholders

BusinessBusiness BusinessBusiness BusinessBusiness

Plans Activity Objectives Plans Activity Objectives Plans Activity Objectives

Traditional approach:

To safeguard Business

Tactical policy

Transition:

To continue with tactical policy

To search for interrelations

New approach:

All Stakeholders are integral parts of the System

Common Strategy and Team

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SOCIAL BACKGROUND

• Community• Local people• Media• NGO• Future generation

AUTORITIES• Legislator• Public Bodies• Public Autorities

CLIENTS• Direct• Final

WORKERS• On payroll• Relatives• Consultants• Retired Person

ENVIRONMENT• Global• Local

COMPANY

PARTIES PROFISSuppliers

• Sub Contractors• Joint Venture

• Partners• Competitors

STRATEGY: Stakeholders

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TECHNIP

SUBCONTRACTORS SUBCONTRACTORS

CSR REPRESENTATIVES

CAMP COMMITTEE REPRESENTATIVES

• SUGGESTION PROCEDURE• SUGGESTION BOX • LOG BOOK

Example of Local Supply Chain Involvement: Example of Local Supply Chain Involvement: TPIT CommunitiesTPIT Communities

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• The election of five CSR representatives( of TP staff people) has been promoted by TP at JER Site. The representatives hold routine meetings with TP Management to discuss and resolve sundry problems, with full collaboration and mutual understanding, facilitating a more serene corporate atmosphere and greater effectiveness in our work commitment.

• The assignment of various ethnic groups representatives has been promoted by TP among the Subcontractors workers. They are acting as a unifying factor among the workers, channelling requests and needs to the Company Management through a “camp committee” meeting on a routine basis.

These are important tools for a more serene Company atmosphere and greater effectiveness to work commitment.

TPIT Projects Initiatives:TPIT Projects Initiatives: CSR staff Representatives and CSR staff Representatives and SubcontractorsSubcontractors Camp Committee at Site:Camp Committee at Site:

CSR staff Representatives and Subcontractors Camp Committee at Site: important tools for a more serene Company atmosphere and greater effectiveness to work commitment.

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TPIT Projects: TPIT Projects: A Grievance Plan has been issued by TPIT A Grievance Plan has been issued by TPIT (as part of Site Management Procedures):(as part of Site Management Procedures):

-To comply with Client contractual requirements: to define the method, that has to be to implement by each contractor, the control the grievance status and the management of the observed issues.

-To comply with Client specific indication: to detail the element of the grievance mechanism on how to identify ,investigate and if necessary rectifying complains from site workers and staff

This is a political big signal that show how there is a growing sensitivity to human rights and social expectation.

A Suggestion/Improvement Plan has been issued by TPIT (as part of Site Management Procedures): a political big signal that show how there is a growing sensitivity to human rights and social expectation.

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Social Impact Plan

Investors / Local Legislation & Regulation

Client

Contractor

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Developed in cooperation with local Authority and focused on local context

Based on the logic win – win. Both the subjects (TPIT/ Customer/Local Community and Contractor will be the winners at the same time)

to promote the public opinion knowledge on the investment

To manage the problems associated with area congestion

To promote a good climate between the local people / authority and the Project (Customer included)

TPIT Projects Initiatives: Social Impact Plan TPIT Projects Initiatives: Social Impact Plan

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to promote the public opinion knowledge on the investment spreading adequate information on the new industrial plant, first of all : safeguard of the environment and safeguard of Health for construction people and local community ..

1. To hold open meetings with local Authorities and Organization.

2. To promote a formal Committee (citizens, authorities, project, customer and contractor representatives) committed to consider / analyze suggestions and specific complains

3. Information on the activities and on said initiatives will be maximized .The participation of all will be strongly encouraged.

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To promote a good climate between the local people / authority and the Project (Customer/Subcontractor included)

1. To develop specific initiatives and campaign to address the preservation of region historical and cultural heritage.

2. For instance Seminar, local exhibitions sponsorships whose incomes will be devolved to the restoration and preservation projects of region historical heritage .

3. These initiatives and campaigns will be widely spread among the local community .

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To manage the problems associated with area congestion

To study a Plan to optimise the traffic on all the area ( job site included ). The impact will built-up areas will be minimised. Local Authorities & Subcontractor will be involved and the plan will be presented to the community ;

1. To launch training session on the Plan for all drivers involved in the project ( private car drives included );

2. To launch safe driving practices;

3. collective transport will be encouraged;

Proposals/Social Impact Plan Requirements1. Community relation/Social Impact Management System (CRSIM)2. Documental Structure and Plans:• Stakeholder Engagement• Public Consultation/Disclosure• Community/Workers Complain/Grievance

1. Community Relation Plan2. Labour Policy

1. Composition Requirements for diversity among site construction workers

Community Relation/Social Manager per gestire la preparazione e la implementazione di:1.Community relation/Social Impact Management System (CRSIM)2.Documental Structure and Plans:•Stakeholder Engagement•Public Consultation/Disclosure•Community/Workers Complain/Grievance

1. Social Investment Plan per spendere 11 milioni di $ già stanziati dal Cliente e realizzare iniziative sociali verso la Comunità locale nell’ambito del «Gran Acuerdo Social» sottoscritto da Ecopetrol e Autorità

Social Impact Plan

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Projects/Social Impact Plan RequirementsÈ richiesto un Employee Relation Manager per gestire la preparazione e la implementazione di:•Employee Management Plan•Social Impact Plan•Local Recruitment and Training personale locale di varia specializzazione sia per costruzione che per la gestione dell’operazione•Local Subcontractor IntegrationE di un Community Relation Manager in staff al Project Director per gestire le relazioni con le Istituzioni e le Autorità Locali

Social/Community Manager per gestire la preparazione e la implementazione di:•CRSIM (Community Relation/Social Impact Management System)•Documental Structure and Plans, including:oLocal HiringoTrainingoInflux ManagementoWorkers accomodationsoHR PolicyoSocial investmentsoStakeholder, GrievanceoCultural Heritage•Monitoring e Reporting: per il Cliente e per i Lenders

Social Impact Plan

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Tools & Approaches: Local Content

Is the Local Content only a constrain?

Employing materials and manufacture

Hiring local personnel

Levers: Local Social, Economic, Labour legislation (for licences, duties, local salaries cost etc…). Effectives Local Agencies (for local support, resources)

…or it is also an opportunity!

Establish a “real Plan“ customized on the country considered as “a System” with all its aspects: Social, economical, political and cultural.

Lasting imprint while supporting the business choices exchanging common values with Clients, Partners and Population related to the mutual Organizations, history and culture

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•Transfer technology/know-how (to own local personnel and/or Client’s and contractors’ personnel, also according to contractual requirements);

• Develop the skills of Local Personnel (Client, Technip, Suppliers and Partners);

• Promote local / national Stakeholders involvement, with “ad hoc” initiatives (Communities, NGOs, Institutions, Municipalities, Clients, Manufacturers etc…) together, but also beyond the Project

Tools & Approaches: Local Content

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CONTENTS AND DURATION• Welding Campus project will last 2 months (april/may)

and will consist of 300 hours of activities, with an alternation between theory (1/3) and practice (2/3).

• DEVELOPMENT• THEORY (in a technical school):• Work organization in plant construction and illustration

of the H-OIL project;• Health and safety protection• Understanding technical drawings• Basics of metallurgy• Welding methods and their characteristics• Quality in welding: WPS, PQR and WPQ; materials and

welding defects; tests and examinations on welds.• PRACTICE (in well equipped labs and/or in Burgas

workshop):• Practical training in manual welding (Electrode, TIG,

wire welding)• At the end of the training course, a certificate will be

issued by the authorized Institute

СЪДЪРЖАНИЕ И ПРОДЪЛЖИТЕЛНОСТ

Продължителността на заваръчното училище е 2 месеца (от април / май) за общо 300 часа дейност и с редуване на теория (третия) и практика (2/3).

ПРОВЕЖДАНЕ

Теория (в техническият институт):

Организация на работата в областта на дейността на заводите и предтавяне на проекта на Лукойл;

Защита на здравето и безопасността

Тълкуване на техническо чертане

Основи на металургията

Видове заваряване и функции

Качество при заваряване: WPS, PQR и WPQ дефекти в материалите и заваръчни тестове , инспекции и контрол на заварки.

ПРАКТИКА (оборудвани лаборатории и / или цеховете Бургас):

Практически упражнения за ръчно заваряване (Електроди, ТIG, финно заваряване)

В края на курса обучаваните ще получат лиценз от сертифициран институт.

Example of Supply Chain Involvement: Example of Supply Chain Involvement: Local People CommunitiesLocal People Communities

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Example of Supply Chain Involvement: Example of Supply Chain Involvement: Local People CommunitiesLocal People Communities

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Example of Supply Chain Involvement: Example of Supply Chain Involvement: Local People CommunitiesLocal People Communities

www.technip.com

Thank you

Pasquale Di Rubbo

pdirubbo@technip.com