On

“Social Accountability 8000

&
Its implementation in NALCO”

Submitted by
GAYATRI PADHY

Regd. No: 0941333014

Session: 2010-11

Project Report submitted in partial fulfilment for the degree of

Master of Business Administration

Under the guidance of

External Guide: Mr. Amiya Pattnaik Internal Guide: Mr. Swaroop Mohanty
Designation: DGM (HRD) Designation: Lecturer
National Aluminium Company Ltd. Institute of Business & Computer Studies

Institute of Business & Computer Studies

SIKSHA ‘O’ ANUSANDHAN UNIVERSITY

1
Company Certificate or External Guide Certificate

2
 Internal Guide Certificate
PPrrooff..…
…………
…………
…………
…………
…..
PPrrooffeessssoorr//A
Asssstt..PPrrooffeessssoorr//LLeeccttu
urreerr
IIB
BCCSS,,SSO
OAAU
Unniivveerrssiittyy

C e r t i fi c a t e
This is to certify that Mr. / Ms. …………….., having regd No……….
has done this research project work on “………………….” and submitted
the report in partial fulfilment for the degree of Master of Business Admini-
stration to IBCS, SOA University, Bhubaneswar under my supervision and
guidance.

His / her report is the record of original work done by him / her. To
the best of my knowledge, no part of the content of this report has been
submitted for any degree by him / her or any body else to any other Univer-
sity or Institution.

Date : - / / 2010

Place : - Bhubaneswar (Prof………………….)

Project Guide

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 Declaration

I, Ms Gayatri Padhy hereby declare that the project report submitted by

me entitled, “Social
Social Accountability 8000 & Its implementation in NALCO.”
NALCO.”
in the partial fulfilment for the degree of MBA to IBCS, SOA University,
Bhubaneswar, is the record of original work done by me. No part of the
content of this report has been submitted to any institution / university for
the award of any other degree. Previous works in this field have been duly
acknowledged as and when they have been referred.

Date : - 09/22/2010

Place : - Bhubaneswar (Name

Name & Signature of the Stu
Student)
dent

4
 Acknowledgements
I pay my most heartfelt thanks to Mr. Amiya Pattnaik, Dy.General Man-
ager, (IE) & Mr.Pankaj Anand, Jr.Engineer, IE Dept. (HRD), Corporate
Office, NALCO, whose unstilted support, encouragement, painstaking guid-
ance and affectionate attitude enabled me to complete this Summer Training
Project.
I am also thankful to Mr Swaroop Mohanty for his guidance in preparing
analysis part of the project. Without their constant supervision and help this
project could not have seen the light of the day.
I am grateful to the National Aluminium Company Limited for providing
me this opportunity to undertake my project at their esteemed organization.
I am grateful to NALCO for their support from time to time in preparation
of my project.
I extend my heartiest thanks to my family and all the people who have
made this project see the light of the day.

(Name
Name & Signature of the Stu
Student)
dent

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 Project Summary
The Social Accountability 8000 Standard (SA 8000), along with other types of certi-
fication standards and corporate codes of conduct, represents a new form of voluntary “self-
governance” of working conditions in the private sector, initiated and implemented by companies,
labour unions, and non-governmental activist groups cooperating together.
SA8000 covers the following areas of accountability:
• No Child labour in work Place
• No Forced labour of any kind in work place
• safe and healthy working environment
• Freedom of Association and Right to Collective Bargaining:
• Discrimination based on race, caste, origin, religion, disability, gender, sexual orientation, etc.
• Discipline: No corporal punishment, mental or physical coercion or verbal abuse
• Justifiable Working hours
• Right Compensation:
• Adaptation in Management Systems for Human Resources:
Nalco’s corporate office is already certified with SA8000 standard & implementation process
is in progress at its Captive Power Plant to adopt welfare measures for its workers.
Project objective ;- This project report focuses over the study of SA 8000 & Its significance along
with study of implementation strategy & cycle adopted by NALCO to make SA 8000 deemed fit to or-
ganization’s core Vision, Mission & Value chain
The data required for the project has been collected from both Primary & Secondary sources
which include Survey method, Personal Interviews, studying the website, published articles, policy
manual & books.
The observations during the project are as follows
v Vendor selection at NALCO need to be made more robust so as to minimise child labour in its
outsource & contractual activities
v A detailed schedule needs to be prepared for conduct of training programs for contractual
workers.
v NALCO needs to provide a healthy workplace to contractual employees.
v A dedicated task force need to be formed for regular audits & minimize deviations
v HR policies should be more aligned with guidelines of the standard
v Multi modal communication media need to be adopted strengthen awareness & penetrationIt
can be concluded that SA 8000 helps to protect basic rights and empower all personnel within
company’s scope of control and influence. It helps the organization to develop maintain and en-
force policies .
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 Table of Contents

Subject Items Page No.

Title Page ………………………………………………………………… 1

External Guide Certificate……………………………………………….. 2
Internal Guide Certificate………………………………………………... 3
Declaration………………………………………………………………... 4
Acknowledgement………………………………………………………… 5
Project Summary…………………………………………………………. 6

Chapter-I (Introduction)
• The Prologue………………………………………………………………... 8
• Relevance and scope of the study:………………………………………… 10
• Objectives of the study……………………………………………………... 11
• Research Methodology…………………………………………………….. 11
• Limitation of the study…………………………………………………….. 12
Chapter-II (Theoretical Background)
• Theoretical Framework of SA 8000……………………………………….. 13
• The conventions of SA 8000……………………………………………….. 14
• Five W’s & One ‘H’ Of SA 8000…………………………………………… 15
• Clauses Of SA 8000………………………………………………………… 17
• Benefits of SA 8000…………………………………………………………. 24
Chapter-III (Company Profile)
• NALCO At A Glance……………………………………………………… 26
• Plants And Mines……………………………………………………………. 29
• Implementation Of SA8000 In NALCO…………………………………… 31
Chapter-IV (Summary and Conclusion)
• Steps taken by NALCO…………………………………………………….. 37
• Data Interpretation Of Field Survey ……………………………………… 40
• Findings and Suggestions…………………………………………………... 44
• Conclusion…………………………………………………………………... 45
Annexure
Bibliography
Format of gap analysis
Format of legal register
Format of manual of SA 8000:
Format of NCR form

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 CHAPTER-I (INTRODUCTION)
1.1 PROLOGUE

Human Resource is the backbone of every organization. It is well said that

money and material is useless if we do not have power of men. People are at the
heart of success of any organization. Human resource is the only resource which
can produce unlimited amount through better ideas. There is no apparent limit to
what people can accomplish when they are motivated to use their potential and
create new and better ideas. This resource is animate, living and active. It is man
alone who with his ability to feel, think, conceive and grow shows satisfaction or
dissatisfaction, resentment or pleasure, resistance or acceptance for all types of
managerial actions. People in an organization can help the organization to attain a
sustained competitive advantage. According to Peter F. Ducker, “Man alone of all
the resources available to man, can grow and develop. The resources capable of
enlargement can only be Human Resources.”
Today we are living in an environment of fast-paced changes and
to survive and be successful in this fast changing scenario, an organization must
be competitive. There is a cut-throat competition for every organization, but this
again depends on human resource – a key element of the organization. That’s why
the management of men has become very important and a challenging job. People
come to work with specific motives to earn money and to have better prospects in
future. Because of the dynamic nature of the people, dynamic and growth – ori-
ented organization does require effective management of people in this fast
changing environment. Organizations flourish only through the efforts and compe-
tencies of human resource.
The success of any organization is highly dependent on how it at-
tracts recruits, motivates and retains its workforce. Today’s organization needs to
be more flexible so that they are equipped to developed their workforce and enjoy
their commitment. Organizations are required to adapt a strategy to improve the
employees work life to satisfy the organization’s objectives and employee needs.
Additionally, an organization must introduce a social management system to en-
sure compliance and continuous improvement in all aspects of organization for
which different certifications are recognized.
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 According to the Providence Business News, implementing different standard-
ized certification gives the following advantages:
v Create a more efficient, effective operation
v Increase customer satisfaction and retention
v Reduce audits
v Enhance marketing
v Improve employee motivation, awareness, and morale
v Promote international trade
v Increases profit
v Reduce waste and increases productivity
In total these certification provides benefits to all the related parties both directly
and indirectly to improve in all aspects.
National Aluminum Company Limited (NALCO) has been one of the most
profitable Public Sector Company and is strategically located in the State of Orissa
and has access to the readily available raw materials of the state as well as the
proximity to the shipping ports for the purpose of exports of the finished goods.
The workforce at NALCO consists of various levels – unskilled, semi-skilled,
and skilled and professionals. Among the professionals, the majority are engineers
and business managers. In NALCO, the number of skilled workers is huge.
NALCO being a global player in the aluminum market, the pressure for performing
with excellence is highly valued.
In this study, the emphasis has been to study the social accountability as a
standard for ethical sourcing related with NALCO Corporate Office in the city of
Bhubaneswar. This study attempts to study the social accountability 8000 and its
implementation in corporate office of NALCO. SA8000 sets out provisions for is-
sues such as trade union rights, the use of child labor, working hours, health and
safety at work and fair pay
National Aluminum Company Limited (NALCO), Corporate Office, Bhu-
baneswar has been accorded Social Accountability System Certificate (SA
8000:2008) by DET NORSKE VERITAS for being committed to provide a socially
accountable work environment to all its employees and certification to CPP
NALCO is in the process.

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 As a leading public sector undertaking, Nalco has been advocating human
rights for workers at work place and has incorporated such practices in its vital
business agenda.
1.1.1 Selection of NALCO as an organisation for summer internship training
program
I personally choose NALCO to undertake the SIP on a specific topic of HR be-
cause:-
v NALCO has emerged as the largest integrated Bauxite, Alumina-Aluminum
Complex in Asia.
v It has a very good past record of giving training to the students.
v It has been a pioneer in generating awareness and providing invaluable
corporate exposure since many years.

1.2 RELEVANCE AND SCOPE OF THE STUDY:

People are at the heart of success of any organization. An organization to sur-

vive, grow and compete in the market requires employee’s contributions like
productivity, efficiency, quality standard and loyalty. The Human Resource of the
organization comes with various needs, attitudes, behaviour, aspirations and per-
ceptions.
SA8000 is a global social accountability standard for decent working conditions,
developed and overseen by Social Accountability International (SAI). SAI offers
training in SA8000 and other workplace standards to managers, workers and audi-
tors. It contracts with a global accreditation agency, Social Accountability
Accreditation Services (SAAS) that licenses and oversees auditing organizations
to award certification to employers that comply with SA8000.
As NALCO had already implemented SA8000 in its corporate office. and in cap-
tive power plant of NALCO the implementation process is in progress. The
requirements of different elements of SA8000 was already audited and imple-
mented at Nalco’s corporate office as according to the SA8000 guidance
document. This necessitates the conformance of SA8000 in NALCO, corporate
office and helps in providing detailed study related to SA8000 and its implementa-
tion in NALCO.

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1.3 OBJECTIVES OF THE STUDY :

The study has attempted to achieve several objectives by discussing social ac-
countability and its implementation at NALCO. The following are the objectives:-
• To study different elements of SA8000 and its implementation process
adopted by the organization to get certification from accreditation agency.
• To find out those factors which creating difference between existing status
and requirements of SA8000.
• To conduct field survey to identify gaps & possible solutions

1.4 RESEARCH METHODOLOGY:

• Research Design:
Research design forms the backbone of any research work. In this study the
research design is exploratory.
• Sampling Plan:
The sampling plan is simple random sampling.
• Total Sample Size:
Total sample size consists of 40 workers.
• Research Tools:
The research tools used in this study is questionnaire method. The question-
naire method was used to obtain data from the respondents.
• Sources Of Data:
There are two sources of data used in this study, namely Primary Data
and Secondary Data source. The Primary Data source provides the primary data
which is obtained through the questionnaire from the respondents. The Secondary
Data source provides the secondary data through various manuals, brochures,
publications and records of NALCO.
• Location Of Study:
The present study on SA8000 is an organizational level study in the NALCO Cor-
porate office at Bhubaneswar.

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1.5 LIMITATIONS OF THE STUDY :

The limitations of this study are:-

• Due to huge worker base and thus the universe being large, the entire
worker base could not be covered; rather a sampling method was used.
• The study was conducted at the corporate office of NALCO, Bhubaneswar.
Due to vast geographical distances between the various other factories of-
fices of NALCO; the study had to be confined only to the NALCO office at
Bhubaneswar in Orissa.

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 CHAPTER-II (THEORETICAL BACKGROUND)
2.1 THEORETICAL FRAMEWORK OF SA 8000
SA 8000 (Social Accountability 8000) is the first international certification on so-
cial responsibility. Its main objective is to guarantee workers' rights; in such a way
that everyone involved wins: companies, workers, trade unions, government.
Lakshy Management Consultant Pvt. Ltd. is one of the leading SA 8000 com-
pliance and certification consultants in India with clients in India, USA, UK, Saudi
Arabia, Kuwait, UAE, Europe, Greece and Maldives. The standard Requirements
SA8000 was launched in 1997 by CEPAA - Council on Economic Priorities Accre-
ditation Agency, an NGO, later renamed to SAI - Social Accountability
International. Social Accountability 8000 (SA8000) is the first global standard for
corporate social responsibility. SA8000 is based on both international human
rights´ conventions (International Labour Organization, the International Declara-
tion of Human Rights and the UN Convention on the Rights of the Child) and
satisfying relevant local legislation. It aims to guarantee basic rights of workers in-
volved in the production processes. SA 8000 Standard is composed of 9
requirements:
v Child labour is not permitted
v Forced labour is not permitted
v Health and safety have to be assured
v Freedom to organize and collective bargaining have to be guaranteed
v Discrimination is not permitted
v Disciplinary practices are not permitted
v Working hours shall not exceed 48 hrs a week, with a maximum of 12 hrs over-
time
v Remuneration shall be sufficient

2.1.1 PURPOSE AND SCOPE

This standard specifies requirements for social accountability to enable a company
to:
A. Develop, maintain, and enforce policies and procedures in order to manage
those issues which it can control or influence;

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 B. Demonstrate to interested parties that policies, procedures and practices
are in conformity with the requirements of this standard.
The requirements of this standard shall apply universally with regard to geo-
graphic location, industry sector and company
SA8000 is a global social accountability standard for decent working condi-
tions developed and overseen by Social Accountability International (SAI). SAI
offers training in SA8000 and others work place standards to managers, workers
and auditors. Its contracts with a global accreditation agency, Social Accountability
Accreditation Services (SAAS) that licenses and oversees auditing organisations
to award certification to employers that comply with SA 8000.
• Released in October 1997, the Social Accountability 8000(or SA 8000) Stan-
dard is the first global ethical standard.
• SA 8000 has been developed based on the conventions of the International
Labour Organization, the Universal Declaration of Human Rights, as well as
the United Nations Convention on the Rights of a Child. It is applicable to all
companies regardless of scale, industry and location
• Its objective is to ensure ethical sourcing and production of goods and ser-
vices.
2.2 THE CONVENTIONS OF SA 8000
SA 8000 is based on the UN Universal Declaration of Human Rights, Con-
vention on the Rights of the child and various International Labour Organisation (ILO)
conventions.
SA 80000 covers the following areas of accountability:
v Child Labour : No workers under the age of 15;minimum lowered to 14 for
countries operating under the ILO convention 138 developed countries oper-
ating under ILO convention 138 developed countries exception ; remediation of
any child found to be working .
v Forced Labour : No forced labour, including prison or debt bondage la-
bour; no lodging of deposits or identity papers by employers or outside
recruiters.
v Workplace Safety and Health : Provide a safe and healthy work environ-
ment; take steps to prevent injuries; regular health and safety; access to
bathroom and portable water.

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v Freedom of Association and Rights to Collective Bargaining : Respect
the right to form and join trade unions and bargain collectively.
v Discrimination : No discrimination based on race, caste, origin, religion,
disability, gender, sexual orientation, union or political affiliation, or age; no
sexual harassment.
v Discipline: No corporal punishment, mental or physical coercion or verbal
abuse.
v Working Hours : Comply with applicable law but , any event ,no more than 48
hours per week with at least one day off for every seven day period
;voluntary overtime paid at premium rate and not to exceed 12 hours per week
on a regular basis ; overtime may be mandatory if part of collective bargaining
agreement.
v Remuneration : Wages paid for standard work week must meet the legal and
industry standards and be sufficient to meet the basic need of workers and
their families; no disciplinary deductions.
v Management System for Human Resources: Facilities seeking to gain and
maintain certification must go beyond simple compliance to integrate the stan-
dard into their management systems and practices.
2.3 FIVE W’S & ONE ‘H’ OF SA 8000

Who Why to be
What?
Develops? Certified?

Why Who is How to

Developed? Certified? Operate?

6 Questions of SA 8000
v What is SA 8000?
v Why was SA 8000 developed?
v Who develops SA 8000?
v Who have been certified to SA 8000?
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v Why become SA 8000 certified?
v How does SA8000 operate?
2.3.1 What is SA 8000?
• Released in October 1997, the Social Accountability 8000(or SA 8000)
Standard is the first global ethical standard.
• SA 8000 has been developed based on the conventions of the International
Labour Organization, the Universal Declaration of Human Rights, as well as
the United Nations Convention on the Rights of a Child. It is applicable to all
companies regardless of scale, industry and location
• Its objective is to ensure ethical sourcing and production of goods and ser-
vices.
2.3.2 Why was SA 8000 developed?
• Consumers and other stakeholders have become increasingly concerned
about whether products have been manufactured under conditions of viola-
tion of human rights, child labour and discrimination – as often reported by
the media.
• The existing management of many companies cannot adequately cope with
the myriad demands imposed by labour laws, codes of conduct of individual
companies, as well as their stakeholders.
• A greater challenge is to effectively monitor whether the manufacturers and
suppliers have implemented it.
2.3.3 Who develops SA 8000?
• SA 8000 is developed by the SAI - Social Accountability International (for-
merly known as CEPAA - Council on Economic Priorities Accreditation
Agency), an affiliate of the Council on Economic Priorities (CEP)
• Founded in 1969, CEP is a public service research organization in New
York; its mission is to provide accurate & impartial analysis of companies’
social performance
• SAI was established in early 1997. It convened a group of experts for an
Advisory Board. The Board is responsible for drafting the SA 8000 standard,
as well as providing direction and recommendation regarding the function,
operation and policy of SAI.
• SAI’s Advisory Board includes representatives from unions, organizations
for human rights and children’s rights, academia, retailers, manufacturers,
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 contractors, non-governmental organizations, consultants, accounting firms,
as well as certification bodies.
• Members of the SAI Advisory Board do not represent the interests of par-
ticular organizations; they have been appointed for their experience and
knowledge of particular sectors. This is to ensure that the interests of differ-
ent sectors are appropriately represented, thereby enabling the Advisory
Board to maintain a balanced view.
2.3.4 Who have been certified to SA 8000?
• As of May 2004, there have been 400 facilities certified to SA8000 world-
wide.
2.3.5 Why become SA 8000 certified?
• Enable companies to develop and implement effective labour practices.
• Enhance long term relationships between the company and its stake-
holders.
• Achieve international standard and enhance credibility.
• Generate positive sentiment for the company and its products.
• Reduce the number of second party audits of suppliers.
2.3.6 How does SA8000 operate?
• As in the cases of ISO 9000 quality management system and ISO 14000
environmental management system, SA 8000 provides a framework for in-
dependent assessment by a third party certification body.
• Through continuous assessment, it provides the companies with a system
for continuous improvement.
• Through an appeal process to the certification body, non-governmental or-
ganizations (i.e. NGOs), if they have supporting evidence, can challenge
the SA 8000 certification of a company.
2.4 CLAUSES OF SA 8000
2.4.1 CHILD LABOUR
v According to SA 8000 convention no 182 child labour clause a company
should follow the following rules.
v Company shall not engage the child labour.
v No support to child labour.
v If the company shall not found remediation shall be done for the child.

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 v The company should provide financial support to those to those children
and should help them to attend school till they are 14.
v Young workers should work only outside the school hours.
v Young worker’s school, transportation and work time should not exceed 10
hours a day.
v Should work only 8 hours per day.
v Should not work at night hours.
v Shall not work at unsafe or hazardous work place.
Guideline Document for child labour
v Company shall not do any of its work by any child labour i.e. who is under
15.
v If any child labour will be fond working in the firm company shall take nec-
essary steps for remediation of such children.
v Company should help them to attend school and also should provide fi-
nancial help to those children.
v The young workers of the firm shall do the light work only.
v Safety shall be provided to the young workers.
2.4.2 FORCED AND COMPULSORY LABOUR
v Shall not engage in or any forced or bonded labour in the organisation.
v Neither the company nor the entity supplying labour to the company shall
withdraw any part of salary, benefits etc to force them to work there.
v Workers and personnel can leave the workplace after completion of there
work.
v Can terminate by giving proper notice.
v Company or any other source shall not engage in or support human traffick-
ing.
Guidelines Document for Forced labour
v No bonded labour shall be there in the firm.
v Freedom of movement shall be there.
v If migrant workers are there it is recommended that auditors have to check
through the relevant documents and conduct extensive interviews should
be made to ensure that no migrant workers are under suppression or explo-
ration coercion etc.

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 v Subcontractors providing labours to the company shall not explore or har-
ass the workers in any sense.
2.4.3 HEALTH AND SAFETY
v Company shall provide safe and healthy workplace to the employees.
v Senior managers should be there to take care of the safety of employers.
v Company should provide safety instruction to the employees about he work
and workplace in regular interval of time and should be repeated for the
new employees.
v Record shall be maintained about the accidents that have occurred in the
organisation.
v Shall provide good equipments to the employees for their job.
v Shall provide first aid medical treatment in case of any injury.
v Shall provide all personnel a clean toilet facility, food storage, drinking water
facilities etc.
v Personnel should have the rights to remove themselves from any dan-
gerous situation in the work premises.
Guidelines Documents for Health and Safety
v Systematic system should be established to make the workplace safe and
healthy.
v All employees have the right to join and take care of the health and safety
of the workplace.
v Training shall be provided to the employees regarding the safety and health
of the workplace.
v Accident prevention and control should be there.
v Documentation of each and every accident shall be done. Safety machines
shall be provided.
2.4.4 FREEDOM OF ASSOCIATION AND RIGHTS TO COLLECTIVE BAR-
GAINING
v All personnel have the right to form, join and organise trade union.
v Company shall respect and shall accept these unions and there opinions.
v This shall not lead to any negative consequences for the employees.
v Company shall not interfere with his establishment, functioning or admini-
stration of such trade union.
19
 v Where the right to collective bargaining and Freedom of association are re-
stricted under Law Company shall allow electing their representative.
Guideline Document for Freedom of Association and Collective Bargaining.
v No forbidden shall be there regarding union creation, function, of joining of
unions.
v Can form and join unions of their own choice.
v Can bargain collectively.
2.4.5 DISCRIMINATION
v Company shall not engage in or support discrimination in hiring, remunera-
tion, promotion etc on the basis of caste, gender, social status, birth etc.
v Company shall not interfere with the exercise of personnel‘s rights to ob-
serve tenets or practices relating to race, national or social origin, gender,
sexual orientation etc.
v The company should not provide any behaviour that is threaten, harassing
or sexually corrective including gesture, language and physical contact.
v The company shall not subject personnel to pregnancy or virginity tests un-
der any circumstances.
Guideline Document for Discrimination
v No cultural or norm discrimination should be there.
v No discrimination of pregnant woman shall be there.
v No sexual harassment shall be there.
v No discrimination of migrant workers shall be there.
v No discrimination of age shall be there.
v No discrimination shall be there on the basis if trade union shall be there.
2.4.6 DISCIPLINARY PRACTICES
v Company shall treat all personnel well.
v Company shall not engage in or support the use of corporal punishment,
mental or physical coercion or verbal abuse of personnel.
Guideline Document for Disciplinary Practices.
v No abasement shall be there.
v Mental or psychological abasement shall not be there.
v Wage deduction or fine charge shall not be done for practice of disciplinary.

20
2.4.7 WORKING HOURS
v The company shall comply with applicable laws industry standards on work-
ing hours and public holidays.
v Personnel shall provide with at least one day off following every size con-
secutive day of working.
v These rules are not applicable when following condition exit.
v National law allows work time exceeding the limit;
v A freely negotiated collective live bargaining agreements in force that allow-
ing work time averaging including adequate rest period.
v All overtime shall be voluntarily accepted as provided in 7.4 and shall not
exceed 12 hours week , nor be requested on a regular basis.
Guidelines for working hours
v Overtime shall be done voluntarily.
v Auditors should take care of piece work and how it is managed in work-
place.
v Good understanding and use of subcontractors shall be there.
v Production review shall be done.
2.4.8 REMUNERATION
v The company shall respect the right of personnel to a living wage and en-
sure that wages paid for a normal workweek shall always meet at least
legal or industry minimum standard.
v The company shall ensure that deduction from the wages shall not be done
for any disciplinary practices.
v Company shall ensure that personnel‘s wages and benefit compositions are
detailed clearly and regularly in writing for them for each pay period.
v All overtime shall be reimbursed at a premium rate as defined by national
law.
Guideline for Remuneration
v The worker’s basic need is wage hence it should be provided properly.
v Different work system shall be there.
v Deduction of salary shall not be done for disciplinary practices.
v The company shall ensure that personnel‘s wage and benefit compositions
are detailed clearly and regularly.

21
2.4.9 MANAGEMENT SYSTEM
a. Policy:
Top management shall define the company’s policy for social accountability and
labour conditions to ensure that it:
a. Includes a commitment to conform to all requirements of this standard;
b. Includes a commitment to comply with national and other applicable law,
other requirements to which the company subscribes and to respect the in-
ternational instruments and their interpretation (as listed in Section II);
c. includes a commitment to continual improvement;
d. Is effectively documented, implemented, maintained, communicated and is
accessible in a comprehensible form to all personnel, including, directors,
executives, management, supervisors, and staff, whether directly em-
ployed, contracted or otherwise representing the company;
e. is publicly available
b. Management Review:
Top management shall periodically review the adequacy, suitability, and Continu-
ing effectiveness of the company’s policy, procedures and performance results vis-
à-vis the requirements of this standard and other requirements to which the com-
pany subscribes. System amendments and improvements shall be implemented
where appropriate.
c. Company Representatives:
The company shall appoint a senior management representative who, irrespec-
tive of other responsibilities, shall ensure that the requirements of this standard are
met.The company shall provide for non-management personnel to choose a rep-
resentative from their own group to facilitate communication with senior
management on matters related to this standard.
d. Planning and Implementation:
The company shall ensure that the requirements of this standard are under-
stood and implemented at all levels of the organisation; methods shall include, but
are not limited to:
a) Clear definition of roles, responsibilities, and authority;
b) Training of new and/or temporary employees upon hiring;
c) Periodic training and awareness programs for existing employees;
22
 d) Continuous monitoring of activities and results to demonstrate the effective-
ness of systems implemented to meet the company’s policy and the requirements
of this standard.
e. Control of Suppliers/Subcontractors and Sub-Suppliers:
The company shall establish and maintain appropriate procedures to evaluate
and select suppliers/subcontractors (and, where appropriate, sub suppliers) based
on their ability to meet the requirements of this standard.
The company shall maintain appropriate records of suppliers/subcontractors
(and, where appropriate, sub-suppliers’) commitments to social accountability, in-
cluding, but not limited to, the written commitment of those organizations to:
a) Conform to all requirements of this standard (including this clause);
b) Participate in the company’s monitoring activities as requested;
c) Promptly implement remedial and corrective action to address any non-
conformance identified against the requirements of this standard;
d) Promptly and completely inform the company of any and all relevant busi-
ness relationship(s) with other suppliers/subcontractors and sub-suppliers.
The company shall maintain reasonable evidence that the requirements of this
standard are being met by suppliers and subcontractors.
In addition to the requirements of Sections 9.6 and 9.7 above, where the com-
pany receives, handles or promotes goods and/or services from
suppliers/subcontractors or sub suppliers who are classified as home workers, the
company shall take special steps to ensure that such home workers are afforded a
similar level of protection as would be afforded to directly employed personnel un-
der the requirements of this standard. Such special
f. Addressing Concerns and Taking Corrective Action
The company shall investigate, address, and respond to the concerns of em-
ployees and other interested parties with regard to conformance/non-conformance
with the company’s policy and/or the requirements of this standard; the company
shall refrain from disciplining, dismissing or otherwise discriminating against any
employee for providing information concerning observance of the standard.
The company shall implement remedial and corrective action and allocate ade-
quate resources appropriate to the nature and severity of any non-conformance
identified against the company’s policy and/or the requirements of the standard.

23
 g. Outside Communication
The company shall establish and maintain procedures to communicate regularly
to all interested parties data and other information regarding performance against
the requirements of this document, including, but not limited to, the results of man-
agement reviews and monitoring activities.
h. Access for Verification
Where required by contract, the company shall provide reasonable information
and access to interested parties seeking to verify conformance to the requirements
of this standard; where further required by contract, similar information and access
shall also be afforded by the company's suppliers and subcontractors through the
incorporation of such a requirement in the company's purchasing contracts.
i. Records
The company shall maintain appropriate records to demonstrate conformance
to the requirements of this standard.
Guidelines for Management System
The company shall have its own policy to carry out its work and it shall be done
with the help of top management.
Management review shall be done to check the quality of goods and services.
The company shall ensure the requirements of the standard are understood and
implemented in all levels of management.
The company shall establish appropriate system to communicate with the inter-
ested parties.
2.5 BENEFITS OF SA 8000
• Along with humane workplaces, the implementation of SA8000 offers more
benefits to workers, companies and others which are as follows:
Benefits for Workers, Trade Unions and NGOs:
• Enhanced opportunities to organize trade unions and bargain collectively.
• A tool to educate workers about core labour rights.
• Another opportunity to work directly with business on labour rights issues.
• Public awareness of companies committed to assuring humane working
conditions.
• Benefits for business:
• Putting company values into action
24
• Enhancing company and brand reputation
• Improving employee recruitment, retention and performance
• Better supply chain management and performance
• Benefits for Consumers and Investors:
• Clear and credible assurance for ethical purchasing decisions
• Identification of products made ethically and companies committed to ethi-
cal sourcing
• Broad coverage of product categories and production geography.

25
 CHAPTER-III (COMPANY PROFILE)

3.1 NALCO AT A GLANCE

3.1.1 HISTORY OF NALCO
National Aluminium Company Limited (NALCO) is the largest integrated Baux-
ite-Aluminium-Alumina complex in Asia. It was incorporated in the year 1981 as a
public sector undertaking under Ministry of Mines, Government of India to exploit a
part of the large deposits of bauxite discovered in the East coast, in technical col-
laboration with Aluminium Pechiney of France. It is an ISO 9002 and ISO 14001
company. Nalco’s original project cost was Rs.2408 crore funded through the
Government of India whose contribution was Rs.1289 crore and Euro-dollar loan
from consortium of international banks of Rs.1119 crore. NALCO being India’s
largest integrated Aluminium complex, comprises of bauxite mining, alumina refin-
ing, aluminium smelting and casting, power generation, rail and port facilities. With
the passage of time, NALCO has not only addressed the need for self-sufficiency
in aluminium, but also given the country a technological edge in producing this
strategic metal to the best of world’s standard. Commissioned during 1985-87,
NALCO has emerged to be a star performer in production and export of alumina
and aluminium and more significantly, in propelling a self-sustained growth.
NALCO exports Alumina and Aluminium to about 28 countries like USA, China,
Australia, Russia, Italy, Germany, Nepal, Singapore, Japan and Malaysia.
3.1.2 VISION
To be a reputed global Company in the Metals and Energy sectors.
3.1.3 MISSION
To achieve growth in business with global competitive edge providing satisfac-
tion to the customers, employees, shareholders and community at large.
3.1.4 OBJECTIVES:
• To maximize capacity utilization.
• To optimize operational efficiency and productivity.
• To maintain highest international standards of excellence in product qual-
ity, cost efficiency and customer service.
• To provide a steady growth in business by technology up gradation, ex-
pansion and diversification.

26
 • To have global presence and earn foreign exchange.
• To maintain leadership in domestic market.
• To instill financial discipline at all levels for achieving cost and budgetary
controls, optimize utilization of working capital and effective cash flow
management.
• To maximize return on investment.
• To develop a strong R&D base and increase business development ac-
tivities.
• To promote a result oriented organizational ethos and work culture that
empowers employees and helps realization of individual and organiza-
tional goals.
• To maximize internal customer satisfaction.
• To foster high standards of health, safety and environment friendly prod-
ucts.
• To participate in peripheral development of the area.
3.1.5 ENVIRONMENT MANAGEMENT :
NALCO since its inception has taken adequate steps for pollution control and
effective environment management. In recognition of the interests of the society in
receiving sustainable industrial growth, compatible with a wholesome environment;
Nalco affirms that it assigns high Importance to promotion and maintenance of a
pollution free environment in all its activities. The company received Indira Pri-
yadarshini Vrikshamitra Award from government of India for its contribution in the
field of afforestation and wasteland development. The 960 MW captive Thermal
Power Plant of the company also received the prestigious Indira Gandhi Paryava-
ran Puraskar for the year 2000 from government of India for its outstanding
contributions in the field of environment management. Besides these, the com-
pany and its units have received National, State and Institutional awards for
excellence in safety and environment. The company has dedicated itself to ensure
a green and wholesome environment in all areas of its operations for sustainable
industrial growth and to set standards in environment management.
3.1.6 HRM PHILOSOPHY OF NALCO
The philosophy of the company in the field of human resources management has
been:-

27
• To attract competent personnel with growth potential and develop their skills
and capabilities in a congenial work and social environment through opportuni-
ties for training, recognition, career advancement and other incentives.
• To develop and nurture favorable attitudes among the employees and to ob-
tain their best contributions to the organization by providing stable
employment, safe working conditions, job satisfaction, quick redressal of
grievances and through good pay and welfare amenities commensurate with
the company’s capacity to spend and the Government’s guidelines.
• To foster fellowship and sense of belongingness among all sections of em-
ployees through closer association of employees with the management and by
encouraging healthy trade union practices.
3.1.7 QUALITY POLICY:
Quality will form the core of our business philosophy. Meeting the needs and ex-
pectations of the customer and consistently improving our systems and work ethos
will be our chosen path in achieving excellence in business and fulfilling our social
obligations.
3.1.8 COMMUNITY CARE:
NALCO has adopted a policy of playing catalytic role in improving the quality of the
life of the people living in the peripheral villages in collaboration with the local gov-
ernment and authorities. Nalco has made significant contributions in upgrading
agricultural techniques and strengthening the afforestation program in the periph-
eral areas. The company has also given great importance to medical and health
programs like regular health consultation sessions, family welfare health camps,
eye camps, animal health camps, and rehabilitation of handicapped persons. The
company has also encouraged sports among youth by recruiting young sports
men, training and coaching them and sponsoring state and national events.
3.1.9 SAFETY POLICY:
Nalco has assigned high importance to safety as an essential component in every
spare of its activities, in order to improve the well-being of employee’s perform-
ance and the growth of the Company. The objective of this safety policy has been
to give highest priority to safety, in selection of plants and equipments, to develop
operating manuals for each process, to provide safety training to employees and
contract worker, to inculcate safety culture in the organization where safety is
manifested in each employees mind, thought and expression, to strictly adhere to
28
the safety related rules, laws and procedures framed by the government and to
continuously strive for improvement in safety performances. The commitment of
Nalco has been to dedicate itself to improve its performance and strive achieving
zero accident on continuous basis.

3.2 PLANTS AND MINES

3.2.1 BAUXITE MINES:
A fully mechanized open-cast mine of 48, 00,000 TPA, on the Panchpatmali hills
of Koraput district in Orissa is in operation since November, 1985. It serves feeds-
stock to the Alumina Refinery at Damanjodi, located 16 km downhill. The transpor-
tation is done through a 14.6 km long single flight, multi curve, cable belt conveyer
of 1800 tpa capacity. The mining capacity is being expanded to 63, 00,000 tpa.
Salient Features:-
• Area of deposit: 16 sq.km.
• Resource: 310 million tones.
• Ore quality: Alumina 45%,Silica 2%
• Mineralogy: Over 90% gibbsite.
• Over burden: 3 meter (average).
• Ore thickness: 14 meter (average).
3.2.2 ALUMINA REFINERY:
The 15, 75,000 tpa energy-efficient Alumina Refinery, having three parallel
streams of equal capacity is located in the picturesque valley of Damanjodi. It is in
operation since September, 1986. The refinery provides alumina to the Company’s
Smelter at Angul and exports the balance alumina to overseas markets through
Visakhapatnam Port. Presently the capacity is being expanded to 21, 00,000 tpa
capacity.
Salient Features:
• Atmospheric pressure digestion process.
• Pre-digestion and inter-stage cooling for higher productivity.
• Co-generation of 3x 18.5 MW power by use of back pressure turbine in
steam generation plant.
• Advanced red mud disposal system.
• Recycling of waste water.
29
 • Use of dust collectors at handling and transport of bauxite, coal, lime and
alumina.
• Ash pond for disposal of ash from steam generation plant.
3.2.3 SMELTER PLANT:
The 3, 45,000 tpa capacity Aluminum Smelter, located at Angul in Orissa is based
on advanced technology of smelting and pollution control. The smelter plant is in
operation since 1987. Presently th4e capacity is being expanded to 4, 60,000 tpa.
Salient Features:
• Advanced 180 KA cell technologies.
• Microprocessor based on pot regulation system.
• Fume treatment with dry-scrubbing system for pollution control and fluoride
salt recovery.
• Integrated facility for manufacturing Ingots, Sows, Billets, Wire Rods, Strips
and Rolled Products.
• 4x35 tone and 4x45 tone furnaces and 2x15 tph and 2x20 tph ingot casting
machines.
3.2.4 CAPTIVE POWER PLANT:
Close to the Aluminum Smelter at Angul, a Captive Power Plant of 960 MW ca-
pacity has been established for the firm supply of power to the Smelter. The coal
demand is met from a mine of 3.5 million tpa capacity opened up for NALCO AT
Bharatpur in Talc her by Mahanadi Coal Fields Limited. The power plant is also
connected with the State Grid for sale of surplus power. Presently the capacity is
being expanded to 1200MW.
Salient Features:
• Micro-processor based-burner management for optimum thermal efficiency.
• Computer controlled data acquisition system for online monitoring.
• Automatic turbine run-up system.
• Specially designed barrel type high pressure turbine.
• Electro-static precipitators with advanced intelligent controllers.
• Efficient burner management to reduce emission of carbon-monoxide.

30
 3.2.5 PORT FACILITIES:
On the inner harbor of Visakhapatnam Port on the Bay of Bengal, Nalco has es-
tablished mechanized storage and ship handling for exporting alumina in bulk and
importing caustic soda. This facility can handle ships up to 35,000 DWT.
Salient Features:
• Alumina reception: 48x53 ton pay load wagons.
• Ship loading rate: 2200 tph.
• Alumina storage: 3x25, 000 tones.
• These facilities have been upgraded to handle higher volumes of exports.
3.2.6 ROLLED PRODUCTS:
NALCO has set up a 50,000MT per annum Rolled Products Unit, integrated with
the Smelter Plant at Angul, for the production of aluminum cold rolled sheets and
coils from continuous caster route, based on advanced technology of FATA hunter
Italy. This Rolled Products unit is presently producing standard coils and sheets.
Besides, it has facilities to produce foil stock, fin stock, cable wrap stock, coil stock
and closure stock for a variety of end users.

3.3 IMPLEMENTATION OF SA8000 IN NALCO

SA8000 follows the structures of both the Quality Management Standards
ISO9000 and the Environment Management Standard ISO14000, and emphasizes
the importance of an on-going improvement process. Development and ongoing
oversight of the standard is addressed by a multi-sector Advisory Board with ex-
perts from business, trade unions, government and NGOs from around the world
and across industries. Facilities seeking certification of compliance to the standard
must have robust management systems in place and undergo an audit by an in-
dependent, accredited certification body. SAI and its Advisory Board oversee the
accreditation of certification bodies, which are required to demonstrate extensive
background in systems auditing, intensive training in SA8000, and the institutional
capacity to assure quality and responsiveness. There are currently nine accredited
certification bodies that have certified facilities in 30 countries. SAI regularly con-
sults with international experts on ways to strengthen certification audits and the
SA8000 guidance documents.
• Companies seeking to independently verify their social record.
31
 • Companies seeking to independently verify their own social record and that
of their contractors.
• Contractors that produce goods for U.S. and European companies and wish
to demonstrate to companies and consumers that they are treating workers
fairly.
• Development or multilateral organizations seeking to ensure that they pro-
cure from companies those are not exploitative.
3.3.1 HOW COMPANIES CAN IMPLEMENT SA 8000?
There are two options:
• Certification to SA8000
• Involvement in the Corporate Involvement Program (CIP) Certification to
SA8000Companies that operate production facilities can seek to have indi-
vidual facilities certified to SA8000 through audits by one of the accredited
certification bodies. Since the SA8000 system became fully operational in
1998, there are certified facilities in 30 countries on five continents and
across 22 industries
SA8000 Corporate Involvement Program Companies that focus on selling goods
or that combine production and selling can join the SA8000 Corporate Involvement
Program. The CIP is a two-level program that helps companies evaluate SA8000,
implements the standard, and report publicly on implementation progress.
1. SA8000 Explorer (CIP Level One): Evaluate SA8000 as an ethical sourcing
tool via pilot audits
2. SA8000 Signatory (CIP Level Two):
3. Implement SA8000 over time in some or all of the supply chain through cer-
tification
4. Communicate implementation progress to stakeholders via SAI-verified
public reporting
3.3.2 STEPS IN IMPLEMENTING SA8000 IN NALCO CORPORATE OFFICE
Before the decision to implement SA 8000 in NALCO was taken, the benefits of its
implementation were calculated & it was found to outnumber the costs involved in
it. A sort of Cost – Benefit Analysis was done. Before providing certification, certifi-
cation body hires outside verification agency such as NGO (for NALCO it is
SHURUSHA) to know the exact status. Consultant agency of NALCO for this certi-
32
fication is MANJUSHREE INFOTECH and external audit agency is DET NORSKE
VERITAS. NALCO reached to the decision to step ahead in the process of its im-
plementation. The various steps are given as follows:-
• MOU was signed between Ministry of Mines and Company head (CMD).
• Fixation of the Consultant for giving assistance in implementation of SA
8000 in NALCO and External Audit Agency (DNV) for certification.
• A Tender (NIT – Notice Inviting Tender) was issued for selecting the con-
sultant agency for assisting in Implementation of SA8000 in NALCO and
Certification agency to give certificate for NALCO.
• Awareness Training: An awareness training was conducted to aware the
top level management and head of the departments about SA8000. It was
conducted by the consultant who is hired for implementation purpose of
SA8000 then the top level managers will do the same for the other staffs
under them as they were trained to do so.
• Selection of Core team member was done to facilitate implementation of
SA 8000 and MR (Management Representative) & WR (Worker Represen-
tative).
• 1st Gap analysis was done (Assessment of Existing status & SA standard
requirements) by the consultant. Gap analysis is done to find out the current
status of the company in respect to SA 8000 requirement, that how the sys-
tems are working in the organization, so as to fulfil the requirement of SA
8000 standards. It is suitable to find out what is existing and what is re-
quired in the organization for the implementation of SA 8000. Gap Analysis
was done in the form of Interview of various departments like HR, Admini-
stration, Materials, Health and Safety department along with the verification
of documents related to SA8000.
• The corrective action was taken by the MR in order to fulfil the Gap found
out in 1st Gap Analysis.
• Preparation of Documentation as per the SA 8000 standard. Documentation
includes Manual, Procedure, and Legal Register and Master List of Docu-
ments etc. The purpose of the preparation of such documents was to follow
international standards as per the requirement of Social Accountability In-
ternational.

33
• SA 8000 policy & objective targets were designed meeting the SA stan-
dards. Every organization has its own goals and policies & it strives hard to
achieve them. NALCO set its targets for which it can carry out its processes
to achieve them keeping in mind the SA 8000 requirements.
• Policy & Objectives target were approved by competent authority. Authori-
ties of NALCO Corporate Office were fully responsible over the
proceedings and it was after their approval that further processes were car-
ried out.
• Remediation plan (prepared along with manual) was done. After sorting out
its shortcomings a remediation plan was prepared which can be followed to
bridge the gap between existing situation and SA 8000 requirements.
• Procedure was prepared to follow the SA 8000 Documentation. A standard
procedure is prepared for the core team members to process the implica-
tion of SA 8000 smoothly.
• Vendor/Contractor control was done through Vendor Evaluation Form as
well as Contractor Compliance Form.
• SA 8000 awareness programme was conducted down the line through
training programme by the Consultants and the internal trainers. As we
know that SA 8000 requirements are mainly for the workers as 8 out of 9
requirements speak about them, its awareness should be created among
the workers to ensure that this initiative is being taken for their welfare, so
SA 8000 awareness was conducted to the contract workers down the line.
• 2nd Gap analysis was done against the standard in correlation with the 1st
gap analysis. It is done for improvement in the existing systems and mini-
mizes the difference between the current working condition and required
condition.
• The corrective action was taken by the MR in order to fulfil the Gap found
out in 2nd Gap Analysis
• Draft Document was finalized for Manual & Legal register which are at-
tached at Annexure – I
• Procedure was finalized (at Annexure-I).

34
• Internal Audit Training was conducted to select the internal auditors. For
this various departments like HRD, SH & E, marketing, P&T etc. Personnel
were selected.
• Internal audit training was conducted by consultant to select the internal
auditors. For this various department like HRD, SH & E, Marketing, P & T
etc. personal were selected. It ensured that every department within the or-
ganization’s premises is fully involved in the SA8000 programme and no
other department is left out.
• Review meeting was conducted to review the status of Audit findings. The
motto of the meeting was to ensure that every shortcoming of the organiza-
tion as a whole comprising of various departments was sorted out and find
out the present status after the corrective action.
• Involvement of NGO for the analysis of NGO report for producing unbiased
report of the organization pertaining to fulfilment of SA 8000 standards. The
purpose was to ensure that a third party serves as the witness and it would
create a humble environment without any biasness meeting SA 8000 stan-
dards.
• Vendor and Contractors control for the compliance of SA8000 requirements
was conducted through Vendor evaluation forms and Contractor compli-
ance forms. A set of Questionnaire satisfying minimum requirement as a
commitment to SA policy as designed by the NALCO to ensure that their
vendors and contractors also compliance to SA 8000 standards is sent.
• Based on their feedback through questionnaire, Vendors/Contractors con-
trol was audited for verification of commitment send through
vendor/contractor’s forms.
• Management Review meeting was carried out for preparation of final certifi-
cation. The top Authorities of NALCO Corporate Office carried out the final
Management Review meeting to ensure that every findings were solved to
meet the SA 8000 requirements as it was the final one and no further modi-
fication is allowed as external audit would be soon in operation where a
third party is allotted over which the Management has no control.
• Pre-Assessment audit was conducted by External Auditors (3rd party).

35
• Corrective action for Findings was handed over to Management Represen-
tatives (MR).The external auditors conducted various interview with the
employees (regular as well as on contract) and crosscheck it with various
documents relevant to their reply given by the interviewee. The audit was
fully formal and it was on this basis of SA 8000 Manual and procedure as
defined in it.
• Corrective actions were prepared on the basis of findings by the Auditors.
• Final audit was conducted by the external body and after review and evalu-
ating the audit results it was recommended for certification.
• Corrective action in respect to findings of final audit was sent for the evalua-
tion to external auditors.

36
 Chapter-IV (Summary and Conclusion)
4.1 STEPS TAKEN BY NALCO
4.1.1 CHILD LABOUR:
Young workers are recruited. They don’t submit original document. Not forced to
work on Sunday. They don’t work over time but it is voluntary. The organization
has developed a remediation plan and well communicated to all through circular
and awareness plan. The remediation plan aims to provide free education to all
child labour if any found working in organization.
4.1.2 FORCED LABOUR:
Forced labours don’t exist. Contractor did not take the original document by
force. In certain cases they need to work overtime but it is voluntary forced and
compulsory is ruled out.
4.1.3 HEALTH AND SAFETY:
Company is OSHAS 18000 certified health and safety issue is being taken care
by the international standard the interview process revealed that there is lack of
training and awareness in respect to health hazard. The company has taken ade-
quate step to provide with personal equipment to the entire worker and emergency
response mechanism is in placed in formed of disaster management plan de-
signed by DG FOSLY. As per factory act 1948 the factory is inspected by
inspector of factories regarding health and safety under chapter 4 and 5 of factory
act 1948.
4.1.4 COLLECTIVE BARGAINING:
There is a recognized union working in factory and they are the part of collective
bargaining process in regards to issues related to labour and their welfare. The
company doesn’t restrict and body to join trade union of their choice to hold meet-
ing and to practice whatever is relevant as per trade union act 1926. As per the
contract worker they are free to join union but the interview process revealed the
majority of them are not a part of union, but they putting their issue within contrac-
tor who in turn inform the management on their issue.
4.1.5 DISCRIMINATION:
The company doesn’t allow any form of discrimination with respect to hiring,
compensation, training, promotion etc being a public sector unit and also being in-
spected by inspector of factory there is no rule of discrimination in this unit.

37
Though in certain cases we could find out a discrepancy in relation to years of
working and the grade that is unskilled and semiskilled which was hurting the daily
wage. This requires further investigation and effective planning from the manage-
ment side to reduce the discrepancy arise.
4.1.6 DISCIPLINARY PRACTICE:
The company is following well defined process for employee, executives, non-
executives, workers and it follows the principle of natural justice.
4.1.7 WORKING HOURS:
The company is following the standard 8 hrs work as per clause 51 of factory
act 1958. In case there is a requirement for any worker to work for extra he/she is
being paid with over time act double the rate per day per hr. The general timing is
from 8 am- 5 pm with a break. No overtime for contract worker in corporate office.
The security working in shift, which is defines as below:
MORNING SHIFT (A SHIFT) 6 am -2 pm
EVENING SHIFT (B SHIFT) 2 pm-10 pm
NIGHT SHIFT (C SHIFT) 10 pm-6 am
All the employees are provided with one day off with six consecutive works in
case CPP (SUNDAY). In any case a person is required he/she is provided with
one compulsory off as per clause 53 at factory act 1953. The company provided
with rest room at its premises for the worker.
4.1.8 REMUNERATION:
The direct employee under the pay roll of Nalco is getting salary/wage. In case
of contract worker, Nalco ensures that they are getting paid on daily bases as per
Orissa Govt directive on daily wage payment. A person from the principle em-
ployer (Nalco CPP) is present at the time of payment of wage to the contract
worker. The company intent to achieve social justice to worker employed in
scheduled employed under contract labour act. The company will be following sec-
tion 4, 12, 14 of minimum wage act 1948.Section 7 and 4 of payment of wage act
1936. In certain cases in the interview process we came across it is related to the
basic need wage as the worker were of opinion that they don’t have any saving
and the entire wage is consumed. Though the company is following Orissa Govt
directive on minimum wage and paying additional money + canteen allowance.
This matter is a policy matter which need to be reviewed based on financial impli-
cation of the worker.
38
 4.1.9 MANAGEMENT SYSTEM:
The last part of standard clause 9 SA-8000 deals with management side. There
is a well defined policy on SA approved by the chairman cum managing director of
Nalco. The policy is well defined and well communicated to all the employees
through small leaflet/cards in Hindi as well as local language so that it is well un-
derstood by each and every employee. The GM is being nominated as
management representative for SA-8000 who looks into overall implementation of
the standard and its continual improvement. The head of recognized union has
been taken to bridge the gap between workers and management on issue related
to SA-8000. The company has developed a well defined process on evaluation of
its supplier physically for basic compliance on SA-8000 outside communication
and stake holder engagement process is taken care by the company to create so-
cial awareness to the society and other parties.

39
4.2 DATA INTERPRETATION OF FIELD SURVEY
Q.1 Are you aware of SA 8000?
Interpolation: From the survey we had found that out of 100% of employees 84% of
employees are aware of SA 8000. 13% of people don’t know about this and the rest and
the rest of the people can’t say anything about this.
Conclusion: Hence we can conclude that the organisation is successfully fulfilling the
SA 8000 clause to make aware of the employees about the standard.
Q.2 Have you seen any child labour working in the office premises?
Interpolation: Here we try to find out that whether the basic requirements of the stan-
dard are met by the organisation or not. We found that out of 100% employees 95% of
employees haven’t seen any child labour working in the firm.
Conclusion: We can conclude that the organisation is fulfilling the SA 8000 clause
no.1.1 about child labour under ILO convention 138.
Q.3 Is there any remediation plan for the child labours found working in the organisa-
tion?
Interpolation: We found that out of 100% of employees said there is remediation plan
for child labour 25% of employees said there is no remediation plan and the rest of the
employees i.e. 44% of employees can’t say anything about this.
Conclusion: We can conclude that the organisation is partially fulfilling the SA 8000
clause no 1.2 about making remediation plan for the child labour in the organisation.
Q.4 Do you have good understanding with your reporting boss?
Interpolation: 98% employees have good understanding with there reporting boss.
Conclusion: So it can conclude that the organisation is fulfilling the SA 8000 clause no
1.3 under ILO convention 148 satisfactorily.
Q.5 Do you stay at office after stand office hour?
Interpolation: 76% of employees’ stays in the office after the office hours and 23% em-
ployees don’t stay after the standard office hour
Conclusion: It is clear that in NALCO the SA 8000 clause no.7.2 about standard work-
ing hour is partially fulfilled.
Q.6 If yes, is it voluntary?
Interpolation: 70 % employees do the extra time working voluntarily.
Conclusion: In NALCO most of the employees do the extra time voluntarily hence it is
clear that SA 8000 clause no.7.3 is fulfilling by the organisation.
Q.7 Do you get any extra remuneration for this extra time work?
Interpolation: 93% of employees don’t get extra salary for the extra time work.

40
 Conclusion: It can be concluded that the SA 8000 clause no 8.1 is not fulfilled by the
organisation completely.
Q, 8 Does the company provides you a healthy workplace with hygiene bathroom and
pure drinking water facility?
Interpolation: According to 95%of employees the company provides a Good and
healthy workplace to the employees.
Conclusion: The organisation has successfully fulfilled the criteria of safe and healthy
organisation described in clause no 3.1 of SA 8000 document.
Q.9 Emergency exit is properly marked?
Interpolation: 94% of employees said that emergency gate is marked properly 7%of
employees said there is no emergency gate and rest of the employees doesn’t know
about this.
Conclusion: The Company is fulfilling the SA 8000 clause no 3.3 perfectly in its prem-
ises.
Q.10 Are there any trade unions in your organisation?
Interpolation: 99%of the employees said that there are trade unions existing in the or-
ganisation.
Conclusion: NALCO is perfectly satisfying the SA 8000 clause no 4.1.
Q.11 Are non management employees free to join trade unions?
Interpolation: According to 76% employees non-management employees can join the
trade unions 13% of employees said they can’t join the trade unions and the rest of the
employees can’t say anything about this.
Conclusion: The SA 8000 clause no 4.1 is being satisfied by NALCO to fulfil the re-
quirements of the standard document.
Q.12 Is there any procedure to avoid the occurrence of sexually coercive or abuse be-
haviour in the organisation?
Interpolation: 65% of employees said that there is no such procedure to avoid this
17% of employees can’t say anything about this and the rest of the employees said that
there is no such procedure is their in the organisation.
Conclusion: The organisation is partially fulfilling the SA 8000 clause no 6.1 about dis-
ciplinary practices.
Q.13 Is any discrimination done on the basis of salary, caste, religion etc in the organi-
sation?
Interpolation: 94% of employees said that no discrimination is done on the basis of
salary; cast etc and the rest of the employees can’t say anything about this.
Conclusion: We can conclude that the SA 8000 clause no .5.4 about discrimination is
fulfilled by NALCO.
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 Q.14 Is there any punishment procedure for any disciplinary action?
Interpolation: 90% of employees said that there are procedures for the disciplinary ac-
tion 3% of employees said there is no such procedure is there and 7% of employees can’t
say anything about this.
Conclusion: The organisation is fulfilling the SA 8000 clause no 6.1 about the discipli-
nary action.
Q.15 what is your normal work week?
Interpolation: For 32% of employees the normal work week is 48 hours for 3% of em-
ployees it is less than 48 hours and for 65% of employees it is more than 48 hours.
Conclusion: Hence we can conclude that the organisation is partially fulfilling the SA
8000 clause no. 7.1 about standard working hours.
Q.16 Have you got any training program for SA 8000?
Interpolation: 71% said that they got the training program and 29% of employees
didn’t get any training program.
Conclusion: We can conclude that the organisation is doing well to fulfil the require-
ments of the standard and is making aware of the employees about the standard.
Q.17 All female workers receive proper respect in the organisation?
Interpolation: 92% of employees said that he female workers get proper respect and
8% of employees gain nothing about this.
Conclusion: The organisation is completely fulfilling the SA 8000 clause no 6.5 about
the disciplinary practices.
Q.18 is there any dormitory facility provided to you?
Interpolation: 11% of employees said there is dormitory facility and 89% of employees
said there is no dormitory facility is there.
Conclusion: We can conclude that the organisation is doing well to fulfil the require-
ments of the standard.
Q.19 whether they maintain clean and safe?
Interpolation: 23% of employees said that they are maintained clean and safe and the
rest of employees can’t say anything about this.
Conclusion: NALCO is fulfilling the SA 8000 clause no 2.5 about health and safety as
per requirement of the standard.
Q.20 Is there any provision for disciplinary action for the person who misbehaves with
female employees?
Interpolation: 88% of employees said that there is disciplinary action and the rest of
employees can’t say anything about this.
Conclusion: NALCO is fulfilling the SA 8000 clause no 6.5 about the disciplinary prac-
tices to meet the standard.
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 Q.21 Do you feel that still improvement is need in the organisation?
Interpolation: 86% of employees said that improvement is needed in the organisation
9% of employees said no further improvement is needed and the rest of the employees
can’t say anything about this.
Conclusion: Although NALCO is satisfying the requirements of the standard there are
still some areas are there where the company needs to look after for continuous improve-
ment and development.

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4.3 FINDINGS AND SUGGESTIONS
v Although NALCO as a core company has completely eradicated Child
Labour & forced labour but from some resources, it was observed that
some cases of engaging child labour is prevalent in its outsourced &
contractual activities like catering, waste management, civil activities etc.
Hence NALCO needs to stringent its vendor selection process & enforce
its agencies to implement SA 8000 requirements
v Most of the Management cadre employees are aware of SA 8000 standard
but there is some gap observed in its Outsourced & contractual agencies
& Employees, hence a schedule need to be prepared for conducting train-
ing programs for contractual workers.
v NALCO provides a healthy workplace to its employees as described in
the standard but the same is not observed in case of contractual employ-
ees.
v A dedicated team as “ SA champions “ who will conduct frequent visits &
audits in all locations of plants in line with guidelines of the standard &
deviation report need to be generated & presented before top manage-
ment for corrective action
v While documentation of HR policies for different cadre of employees
,care need to be taken that the policies should be aligned with guidelines
of the standard
v Multiple communication channels need to be adopted like Intranet web-
sites, placards, notations, banners, etc to further strengthen
communication between top management and employees about the
standard & efforts taken by company in this direction.

44
4.4 CONCLUSION
From the project the main idea comes out that it is essential for the organisa-
tion to provide a better workplace environment to the employees , as described in
SA 8000 so that organisation can meet the international standard as well as em-
ployees satisfaction. SA8000 standard is based on national law ,International
Human Rights, Norms ,and Conventions of ILO .i.e. International Labour Organi-
sation to asses the compliance of workplace with these standard.
It helps to protect and empower all personnel within company’s s scope
of control and influence , who produce products or provide services to the com-
pany including personnel employed by the company itself, as well as by its
suppliers, sub -contractors, sub-suppliers ,and home workers.
It helps the organisation to develop maintain and enforce policies and
procedures in order to manage those issues which it control or influence. Credi-
bility demonstrated parties that existing company policies, procedures and
practices conform to the requirements of the standard.
The clause of SA 8000 deals with the rights of the workers and their require-
ments. It helps the organisation to provide the healthy and safety workplace to
their employees. NALCO is one of the companies that provide the best work satis-
faction to its employees.
But in some cases we had found that the company still needs some develop-
ment on its working premises. The company shall arrange programs for the
development of its workers and personnel. The company is working well in satisfy-
ing the basic clauses of the standard. The company is providing its employees a
hygiene and safe workplace. Also it is providing freedom to the employees to join
the trade unions. The personnel of the firm have a good relationship with the top
level management. There are also procedures for disciplinary action.
Overall the end part of the study shows that the company shows that the com-
pany is indeed doing the best to fulfil the objective, mission, and vision of the
company with regard to SA 8000 standard. The company is satisfying all its em-
ployees as well as its customers. Basically NALCO is working well to fulfil the
international human rights standards so it can serve the society in best means.

45
 ANNEXURE

BIBLIOGRAPHY
Apart from the information collected from NALCO corporate office Bhubanes-
war, the following secondary information sources provided me with meaning full
assistance in completion of the project.
www.nalcoindia.com

www.sa-intl.org

BOOKS:

C.B. Mamoria (Personal Management)

INTERNET SOURCES:

• www.google.com

• www.wikipedia.org

• www.citehr.com

• www.pagalguy.com

• www.workindex.com

46
 ANNEXURE
FORMAT OF GAP ANALYSIS:

CLAUSE CLAU EXISTING REQUIREMENTS REFERENCE REMARK

SE NO. STATUS DOCUMENT

Child labour 1.1A

Forced labour 2.1A

Health and Safety 3.1

Right to freedom of associa- 4.0

tion and Collective bargaining

47
 FORMAT OF LEGAL REGISTER:
About Legal register:
A complete list of local laws, rules and regulations related to SA800 clause against its requirements. It contains all those
acts and relevant section of rules and acts pertaining to different clauses of SA8000 requirement. It is maintained to cross
refer the rules for documentation purpose.
SA 8000 Clause Legislation/ Relevant clause/ Requirements Response /
Clause No Act section of Rule /Act Against the Clause Further investigation

Child Labour 1.1

Forced Labour 2.1

Health and Safety 3.1

Freedom of Association 4.1

48
 FORMAT OF MANUAL OF SA 8000:
This Social Accountability Manual describes the Social Accountability System adopted by the Company. The Manual lists down the require-
ments, applications, procedure and measures stipulated for ensuring implementation and sustenance of the standard. All requirements of SA
8000:2008 have been addressed in this manual.
The Social Accountability system has been formulated on the basis of SA 8000:2008. This chapter titled ‘General requirements’ explains the
scope, structure, profile and issue & updating procedure of the Social Accountability systems.

Doc .No.: Issue no: 01Rev.00

Effective Date :02/02/2009

Sl. No Details of Date of Section no. Page no. Issue no Approved by

amendment amendment

49
Format of NCR form

Name of the department/section/function:

NCR No : Major/Minor/Observation Date of Audit

Clause : Reference to Document

Clause of SA 8000 : 2008

Non – conformity :

Corrective Action Report (To be filled by Auditee) :

Proposed Completion Date :

Signature of Audi tee

Actual Completion Date :

NC closed / open :

50