Voting issue: social

Many companies, when expanding their business, may come into conflict with the rights of local native people or with the safeguarding of certain natural assets. These populations have lower literacy levels and less access to health services. In many cases, indigenous peoples are obliged to submit to the dominant culture, changing their language, religion, customs and traditions. The reference document in this regard is the ILO Convention on Indigenous and Tribal Populations (1989) under which governments are obliged to identify lands, protect the rights of indigenous peoples (e.g. by prohibiting their removal from their lands) and safeguard the natural resources in their territories.

Etica Sgr aims to discuss, inter alia, the following issues (and to vote in favour of any shareholder motions in that respect):

• adoption of policies governing conduct relating to the rights of indigenous peoples in line with the UN Declaration on Human Rights and with the principles enshrined in the national constitutional charters of individual countries (e.g. principles recognised by the constitutional charters of certain Latin American countries: Ecuador, Bolivia, etc.);
• publication of information on projects with an impact on indigenous peoples;
• involvement of indigenous peoples in projects and listening to their demands;
• preparation of reports on impacts on local indigenous communities;
• making public the tools used and the results obtained;
• recognition and protection of the collective land rights of indigenous peoples and local communities on the basis of ILO Convention No 169 of 1989 and the UN Declaration on the Rights of Indigenous Peoples;
• ensuring transparency and accountability in transactions and investments that may have an impact on land or the survival of indigenous peoples and local communities, by means of policies and mechanisms that avoid confiscation and land grab, reducing and finding solutions for the direct and indirect impacts of manufacturing operations on land and natural resources, including through appeal mechanisms;
• implementation of the principle of prior informed consent and fair compensation in the event of land transfers and mechanisms for reporting possible infringements;
• promotion of due diligence on human rights that takes account of gender rights, establishing compliance with the FAO Voluntary Guidelines on Tenure (regarding the responsible management of land, fisheries and forests).

This term refers to all forms of work carried out by persons under a statutory minimum age. The geographical areas primarily affected by child labour are Asia, Oceania, Africa and Latin America (mainly Colombia and Brazil).

The damage caused by this phenomenon is manifold: products used in factories damage the organs of the breathing system, the eyes, the liver, the kidneys and much more, while carrying weights or holding forced postures for long periods impairs bone development and growth. Excessive noise causes partial deafness.

Another serious consequence of child labour is that children cannot attend school on a regular basis or, if they already attend, have to give it up and remain illiterate, denying them any prospect of social advancement.

Etica Sgr aims to discuss, inter alia, the following issues (and to vote in favour of any shareholder motions in that respect):

• adoption of policies and conduct that prevent the use of child labour below the age specified in ILO Conventions 138 and 182 and by national laws throughout the production chain.
• adoption, where child labour exists, of the necessary measures to ensure the rehabilitation and social reintegration of the children concerned and the consequent modification of supply relationships in order to prevent such phenomena from reoccurring;
• making public the tools used to minimise the risk of involvement in child labour (e.g. supplier controls);
• making public the control levels introduced in order to avoid the risk of the use of child labour at all stages of the production chain;
• responses to any allegation of the use of child labour by any party in the company’s production chain or by suppliers.

Poverty and the climate of destitution in which the inhabitants of many disadvantaged countries live help to promote a market in which girls and boys are traded like commodities.

Etica Sgr aims to ensure that the companies in which it invests, particularly those operating in the tourism sector, are aware and responsible in this regard.

Etica Sgr aims to discuss, inter alia, the following issues (and to vote in favour of any shareholder motions in that respect):

• adoption of policies aimed at minimising the risk of being involved in sex tourism;
• production of reports listing the tools used to combat organ trafficking and sex tourism;
• adoption of responsible tourism codes for monitoring these phenomena, for example the ECPAT (End Child Prostitution, Pornography and Trafficking) Code;
• implementation of staff information and training policies in Italy and destination countries on the subject of the sexual exploitation of children.

Forced labour takes many forms: debt bondage, people trafficking and other forms of modern-day slavery. Its victims are the most vulnerable: women and girls forced into prostitution, migrants bound by debt and workers or agricultural labourers forced, through the use of illegal tactics, to work in disrespectful conditions for very low pay.

Despite the fact that slavery was abolished in many countries over a century ago, the plague of forced labour still persists everywhere.

Etica Sgr aims to discuss, inter alia, the following issues (and to vote in favour of any shareholder motions in that respect):

• adoption of policies on the subject of forced labour;
• measures to prevent any use of forced labour and to identify, release, protect and rehabilitate people who have been subject to forced labour;
• making public the tools used to minimise the risk of involvement in forced labour (e.g. supplier controls);
• making public the control levels introduced in order to avoid the risk of the use of forced labour at all stages of the production chain;
• responding to any allegations about the use of forced labour by any party in the company’s production chain or by suppliers.

Companies have a duty to promote personnel management that aims to develop workers, by investing not only in safety and training, but also in forms of active participation by employees in company choices, including information.

In particular, training must be a key tool in the professional and personal growth of the individual. Companies that provide good training have a competitive advantage over their rivals, as they improve their ability to retain and attract high-level employees.

Job insecurity and harassment compromise the personal and professional development of employees, who must always be placed at the heart of the company’s business. The active participation and involvement of employees through information and discussion about decision-making helps to increase corporate cohesion and improve production cycles.

Etica Sgr aims to discuss, inter alia, the following issues (and to vote in favour of any shareholder motions in that respect):

• publication of investment in staff training, distinguishing between internal and external training (i.e. training entrusted to third parties);
• publication of data on any pay gaps (e.g. between executives and employees or gender gaps);
• publication of staff training policies;
• implementation of policies and programmes to promote the most advanced measures to ensure the health and safety of workers, including beyond national standards;
• reporting on occupational illnesses, workplace injuries and the tools introduced to ensure health and safety at work;
• guaranteeing workers the right to leave work if there is a serious and imminent danger to health or safety;
• making policies public in order to measure employee satisfaction;
• making public the ways in which workers and employees are involved and consulted with regard to decision-making;
• adoption of certification for the proper management of employee health and safety (e.g. OHSAS 18001).

Equal treatment of employees regardless of gender, religion or ethnicity (ILO standards 100 and 111 – ban on discrimination at work) is also a key issue.

Etica Sgr aims to discuss, inter alia, the following issues (and to vote in favour of any shareholder motions in that respect):

• accounting for the policies the company implements to promote equal opportunities;
• publication of the percentage of employees with disabilities or belonging to ethnic, religious or gender minorities, and information about any programmes to facilitate recruitment;
• reporting on programmes to increase the number of managers with disabilities, women or members of ethnic or religious minorities;
• publication of a report on any equal opportunity disputes;
• promotion of studies on the internal wage system to ensure that women and members of minorities in general (e.g. ethnic and religious minorities) are paid the same as other workers performing the same role and providing the same quantity and quality of work.

In this area, Etica Sgr aims to discuss, inter alia, the following issues (and to vote in favour of any shareholder motions in that respect):

• compliance with ILO Conventions 87 and 98 on the freedom of trade unions and collective bargaining, in order to guarantee the right of workers to form trade unions and representative organisations of their choice for the purposes of collective bargaining and to reach collective agreements on the terms and conditions of work;
• providing employee representatives with the necessary means to reach effective collective agreements;
• providing employee representatives with adequate information on business strategies;
• promotion of consultation and cooperation through constructive industrial relations on issues of common interest;
• giving sufficient notice to employee representatives of any changes in production that affect employment, in order to identify safeguarding measures.

Whenever possible, Etica Sgr analyses cases of corporate restructuring (e.g. plant closure, manufacturing relocation, mass redundancies), studying the causes, the attempts to prevent them, the alternatives available to the company and the worker protection policies adopted.

It is important that shareholders understand the level of dialogue between the company and its employees, particularly with union organisations. Trade unions and collective bargaining can provide valuable protection for workers against exploitation, especially in low-income countries.

Etica Sgr aims to discuss, inter alia, the following issues (and to vote in favour of any shareholder motions in that respect):

• the effects of the reorganisation plan on jobs ex ante and checking these effects ex post;
• making public the details of reasons that might result in a decision to restructure the company, the company policies implemented to avoid such a decision and any alternatives considered;
• employee transfer and retraining programmes;
• provision of information on the quality of relations with workers and trade unions.

Access to medicines, especially in poor countries, is limited, particularly for infectious and parasitic diseases. In some cases, drugs are inaccessible not only for the majority of people in poor countries, but also for the most socially disadvantaged populations in developed countries.

Etica Sgr believes that access to essential medicines should be considered a universal right.

Etica Sgr aims to discuss, inter alia, the following issues (and to vote in favour of any shareholder motions in that respect):

• adoption of more favourable pricing policies for poor countries;
• the funding of research into drugs to treat rare diseases;
• not extending patent protection to poor countries in order to facilitate the production and importation of generic drugs;
• making public drug testing methods and locations.

Pharmaceutical companies provide doctors and retailers with a number of incentives to market their medicines. These incentives, which are often not made public, can significantly affect the final price of medicines and doctors’ decisions to promote them among their patients.

Etica Sgr aims to discuss, inter alia, the following issues (and to vote in favour of any shareholder motions in that respect):

• reporting on the process of pricing drugs or other treatments;
• publication of a report on gradual increases in the prices of the main drugs produced;
• provision of more information on the incentives used to promote the sale of products by medical sales representatives and medical personnel;
• reduction of investment in incentives for doctors or retailers.