DONE BY:

At BAT Bangladesh they have always been committed to good

employment practices and here they have set out their Employment
Principles, their framework on workplace practices, employee relations
and employee human rights. By formalizing these Principles, they have
given their visible commitment to the beliefs and values by which
they’ll manage their relations with their employees. Their Statement of
Employment Principles outlines how these beliefs and values can be
translated into consistent and measurable good practice in corporate
employee relations. They recognize that as one of Bangladesh’s
leading public companies, they have a responsibility to seek to
influence specifically those organizations with which they do business
and generally, others in the corporate domain in terms of employee
relations. They do however believe that it is the primary responsibility
of the national government to raise standards of employment
legislation, requirements and compliance. The key points of their
Employment Principles have been outlined below:

1. STRENGTH FROM DIVERSITY

Actively utilizing diversity – of people, cultures, viewpoints, brands,

markets and ideas – to create opportunities and strengthen
performance. The company is dedicated to providing equal
opportunity to each employee, that is, they’ll not discriminate when
making decisions on hiring, promotion or retirement on the grounds of
the employees’ or candidates’ race, color, gender, age, social class,
religion, smoking habits, sexual orientation, politics or disability –
subject to the inherent requirements of the role to be performed. A
basic aim is to ensure a diverse and representative workforce profile
through the promotion of employment equality. We shall observe
national legislation relative to Positive discrimination.

2. OPEN MINDED

Being an active listener, genuinely considering others’ viewpoints and

not pre-judging.’ British American tobacco aim to be open and
transparent and to provide regular, reliable and relevant business and
industry-related information, through a wide range of internal
communication channels to allow access for all employees. Such
communications take into account disclosure of policies and obligations
to business confidentiality. They respect both freedom of association
and freedom on non-association, acknowledge the right of employees
to be represented by legitimate trade unions or other genuine
representatives, conducting activities within the applicable regulations
and agreed procedures.

3. FREEDOM THROUGH RESPONSIBILITY

They believe decisions should be pushed down the organization to the
appropriate level, as close to the consumer as possible and that
decision takers should accept responsibility for their decisions.’

Under this principle, the Company’s

Responsibilities are to ensure:

Fairness at work: Through the creation of a climate of Confidence for

employees to ask questions and air problems, and for quick resolution
(via adequate grievance and disciplinary procedures) to the
satisfaction of all concerned

Dignity at work: Through removal of any form of harassment and

bullying and related attitudes in the workplace.

Responsible restructuring: Through clear explanation of such

initiatives and necessity for change to employees and all appropriate
bodies, in accordance with local laws and regulations.

No exploitation: Of child labor, forced/ involuntary labor and

immigrant labor via unlawful use

Under this principle, the employee’s

Responsibilities are to ensure:

Compliance with Standards of Business Conduct: An integral

part of our corporate governance and designed to provide a decision-
making framework for all employees.

Proper use of Company: Systems to help achieve business goals

Performance responsibility: Through meaningful and confident

contributions to the success of the Company and their own place
within it, and to be accountable for their performance, having been
given a clear understanding of expectations and feedback

Under this principle, the mutual responsibilities

include:

Environment management, community contributions and economic

contributions, business information security and personal development
and learning.

As valued business partners, their

Responsibilities include:

Influencing their business partners to embrace their employment

principles, whilst recognizing that each partner organization has the
responsibility to manage its employment practice in accordance with
its own business standards, values and local legislative framework.
In doing so, they seek to influence their business
Partners to avoid:

 child labor, particularly in any industrial process or agricultural

process involving the use of chemicals (other than in genuine
apprenticeships)

the selling of cigarettes to minors

the use of forced or illegal immigrant labor

working conditions which do not meet our standards on health, safety

or hygiene

the denial of access to, or unfair application of, a transparent

grievance procedure

any form of unlawful discrimination, harassment, abuse or bullying

3. ENTERPRISING SPIRIT

‘The confidence to seek out opportunities for success, to strive for

innovation and to accept the considered risk taking that comes with it.’
Under this Principle, they are to ensure the physical and mental well
being of employees, through reasonable working hours, family friendly
policies and sound occupational health and safety standards. BAT
recognize the need to reward performance in a manner that is fair,
transparent and competitive, while providing equal opportunity for
recruitment, promotion and career development.

Alignment with the ILO Guidelines

An independent review was commissioned to measure position of the

British American Tobacco (BAT) Employment Principles, (which form the
basis for the British American Tobacco Bangladesh Statement of
Employment Principles) with principles contained in 21 International
Labor Organization (ILO) Conventions: 8 conventions determined as
fundamental by the ILO’s governing body, 4 determined as priority and
9 referenced in the base code of the Ethical Trading Initiative (ETI). The
BAT Employment Principles were found to be well aligned with
principles contained in the relevant ILO conventions, with stronger
alignment tending to be with principles within the 8 fundamental
conventions relating to freedom of association and collective
bargaining, equal opportunity, forced labor and child labor.
 Social performance

The social dimension of sustainability concerns the organization’s

impact on the social systems in which it operates. Social performance
can be gauged through an analysis of the organization’s impacts on
stakeholders at the local, national and global levels. This dimension
considers the organization’s labor practices, including occupational
health and safety and human rights and the policies in place to
manage impacts on communities and policies and procedures to
address bribery and corruption. They believe that their people are their
greatest asset and take great pride in their talent and ability. They
apply exact selection standards and provide employees with
challenging opportunities. They support their employees in achieving
their full potential via their comprehensive development programmes.
They also maintain a competitive remuneration strategy to ensure we
reward employee effort and retain talent. In 2003, they have launched
their Employment Principles which build on their commitment to good
employment practices and workplace related human rights.

Rewarding and retaining talent

Their reward strategy is designed to inspire a high performance work

environment. The key features of our strategy are:

• Strong emphasis on rewarding performance, judged against clearly

defined objectives

• A competitive pay and benefits package

Their pay and benefits package is regularly reviewed against that of

relative companies in the market to ensure they remain competitive, in
the top 25%. Annual increments are determined via a transparent
process involving senior managers of each function and are duly
communicated to all employees. Annual bonus payouts to individuals
are based on Company and individual performance and are calculated
based on pre-determined targets. Remuneration and benefit
information such as the process for increment determination and basis
for annual bonus are made available to employees on the employee
portal – OPUS. The Collective Agreement sets out the remuneration
and benefits package of non-management employees.
Our social performance
 Managing opportunities for career
Development
Career planning and personal development of their people are business
critical activities, important for the sustainability of future talent. They
invest significant management time in these activities. Their Career
development Meetings (CDM) provides structure to this process. The
CDM process is held annually and aims to match the career goals of
individuals with short and medium term opportunities; and identify the
development required to support them. At these sessions, the career
potential of employees is explored based on current performance as
well as other capabilities that will become critical at more senior
management levels. BAT has also invested heavily in a global
management database – as a tool for employees to chart their
development and progression in the Company.

Training and development

BAT believes training their people is important in developing and

realizing their full potential. They have invested a total of RM3,
874,628 in 2003 to create 1,205 training places across the
organization, spanning a variety of programmes. BAT has in place a
carefully developed training calendar and employees are encouraged
to identify and attend programmes of relevance to them. The training
programmes selected can be related to our identified people drivers:

• Culture,
• leadership,
• learning
• Talent.

A large proportion of these training programmes are conducted

centrally. However there are some programmes, particularly technical
based programmes which are run specific to certain functions. In
addition to these programmes, employees also attend external
programmes deemed relevant for their career development.
International development opportunities are available to employees on
a need basis, via the International Management and International
Functional training programmes. As a multi-national company, we are
also able to provide employees international development
opportunities via secondments to relevant markets within the British
American Tobacco world. This enables sharing of best practices across
markets and provides their employees with a global outlook. Graduate
recruitment and development via our Management Trainee programme
is yet another stage for them to ensure that they are equipped with
high caliber managers to build the future of our business. The
programme, The Challenge Initiative, develops fresh graduates in a
holistic manner, providing them with a complete understanding of the
business and early opportunities to take on leadership roles. Upon
completion of the two-year programme, high performers are set on a
fast track to form the leadership bench of the future.

Managing career endings

In years where significant right-sizing exercises are carried out, the

company provides a comprehensive out-placement programme for all
affected employees. These programmes via career counseling sessions
cover the emotional aspect such as behavioral changes required to
face the new challenges upon leaving the Company. In addition, the
programmes address the practical aspects such as financial planning
and seek to enhance the re-employment opportunities of affected
employees via workshops on job-seeking, including segments on how
to apply for jobs as well as how to write resumes. Affected employees
are also put in contact with employment agencies to further facilitate
their job-seeking efforts.

Occupational Health and Safety

BAT recognizes occupational health and safety as a significant area of

corporate responsibility. They are committed to providing and
maintaining a healthy working environment in which employees are
not exposed to hazards. This involves identifying, assessing and
controlling foreseeable hazards that may arise.

Recognition of our commitment

The staff Medical Centre was awarded:

With their fully owned subsidiary Tobacco Importers and Manufacturers

Sdn. Bhd. (TIM), our Occupational Health Department was awarded:

Programmes conducted

In 2003, the company conducted a voluntary vision screening

assessment programme where 159 employees (largely
mismanagement) were screened for long/ short sightedness as well as
astigmatism. Where refractive errors were observed, employees were
advised to change their glasses/ lenses and were covered by the stated
optical benefits. In instances where other eye pathologies were
observed, employees were referred to an eye specialist for further
management with treatment and consultation covered by their clinical
benefits.

A Women Wellness Programme was organized in August with the

objective of early detection and prevention of breast and cervical
cancer. The programme covered all female employees aged 35 years
and above and comprised components on self breast examination, as
well as formal checks for early detection, such as mammograms and
PAP smears. Those identified in the wellness programme with a
medical problem were subsequently provided with further treatment,
covered by their clinical benefits.

Equal Opportunity

They are committed in ensuring that their workplace policies, practices

and behaviors are fair and equitable by:

• Giving all employees access to training and development

• Recognizing and respecting social and cultural backgrounds

• Employing recruitment and promotion practices which are open,

competitive and merit-based

•Encouraging two-way communication to allow employees to be heard.

In 2003, BAT has conducted a Companywide Employee Opinion Survey

called 'Your Voice' which involved participation from all levels of
employees and covered elements pertaining to, amongst others, the
organization’s culture and working environment, including living our
Guiding Principles, remuneration and benefits, corporate responsibility
and leadership. The survey represents an important channel for
employees to voice their opinions, raise concerns and together with
the organization, work towards improvements. The participation rate
was incredibly high at 99%. The survey results were collated and
analyzed by ISR, an independent international survey research
organization based in London, and findings were disseminated to all
Employees.

The key findings indicate that employees rate the Company highly in
terms of corporate responsibility and business integrity. Employees
also feel well-informed on the goals and objectives of the Company,
Company performance and other matters affecting them. Employees
feel they have comparable or better pay, benefits and job security as
Compared with other companies in Bangladesh and are positive about
the development opportunities available to them. While employees are
aware of the existing value system within the Company as set out via
our Guiding Principles, areas highlighted for improvement include
embedding areas relating to the practice of open mindedness, freedom
through responsibility and enterprising spirit.

A “Your Voice” Steering Group has been established to identify,

design and implement activities/ programmes to address the concerns
raised via the opinion survey. Updates on development and
implementation of these activities/programmes are provided to
employees via the quarterly management briefings as well as team
briefings. Areas of concern are currently being further explored via
employee focus group sessions – to help clarify issues raised as well as
provide employees the opportunity to get involved in building
solutions. The company work to provide a workplace that is free from
discrimination and harassment. The Company has formulated a Code
of Practice on the Prevention and Eradication of Sexual Harassment at
the workplace. An awareness campaign was also launched to educate
employees on what constitutes sexual harassment and the grievance
mechanisms they have in place, designed to ensure complaints are
resolved quickly. This information has since been included as part of
the induction programme for all new employees. This reflects our
seriousness in preventing harassment and ensuring equal opportunity.
Their Employment Principles ensure employees are hired and treated
without prejudice or bias of any sort. Review of application of the
principles is ongoing and will include feedback obtained via employee
opinion surveys to be carried out periodically.

Fig -1 describes the Company’s highest

management employees, broken down by
gender.
 Corporate Conduct

They are committed to conducting our business with the highest

standards of ethical behavior. They owe this to our shareholders,
employees, customers, consumers and the communities in which we
operate. As a responsible corporate citizen, all our business activities
need to be conducted in a manner which is in accordance with
regulatory standards and expectations. Their Standards of Business
Conduct require all employees to act with high standards of business
integrity. All employees are expected to be aware of and understand
the corporate values set out in the Standards of Business Conduct and
to act in accordance with them at all times. These values are an
integral part of the Company’s Corporate Governance
and aim to:

• ensure that decisions and judgments made by employees are lawful

and comply with the ethical standards expected of a leading public
company

• set a tone and culture for the organization

• help employees who must make judgments in doing their work

• give reassurance to our shareholders, customers, suppliers, to

governments and to other third parties with whom we come into
business contact

• protect the Company from extortion, fraud, theft or other dishonesty

The Standards cover specific topics, requiring all employees to avoid
conflicts of interest, prohibiting ‘insider dealing’ and the use of trade
secrets or confidential commercial information for their own purposes.
They require compliance with competition law and prohibit corrupt
practices, both abroad and in the base country.

Compliance with these Standards is monitored regularly by the Board

of Directors and Audit Committee. The Head of Internal Audit, in
consultation with the Head of Legal/ Company Secretary of BAT
Bangladesh is charged with the responsibility of reporting to the Board
on an annual basis how these Standards are being observed by
employees and Directors of the Company wherever applicable. Strict
disciplinary action will be taken for violations of law or stated policies,
as appropriate, including and without limitation to termination of
employment.
Community
BAT seeks to positively increase our impact on the community – not
just through corporate philanthropy but through long term community
management and partnership.

Contributions

Their contributions policy strategy is to provide assistance and

contributions in the form of cash or kind to activities or organizations
that are in line with the Government's socio-economic focus, such as
the environment, literacy enhancement, fostering multi-racial relations
and to directly alleviate hardships of the less fortunate members of
society. It is our aim, to provide assistance where it is needed and
where it can make a difference.
Continued