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Good Practice Note | January 2006 | Number 5

Good Practice Note


Non-Discrimination
and Equal Opportunity
T
Environment and Social Development Department
he concepts of non-discrimination and equal distinction, exclusion or preference which has the
opportunity have for decades been part of effect of nullifying or impairing equality of
the international community's key principles. opportunity or treatment in employment or
Enshrined in numerous international instruments, occupation, and is made on the basis of personal
including conventions of the United Nations and the characteristics, including race, color, gender, religion,
International Labor Organization, these concepts political opinion, national extraction or social origin,
are rooted in universal principles of human rights, disability, age, sexual orientation, and/or HIV status.
fundamental freedoms, and equality. In today's What’s Inside?
emerging markets, companies that seek to be Discrimination can take many forms and can affect 2 The Business Case for Diversity
leaders and set examples of corporate social both access to employment and the treatment of 4 Where Discrimination Can Occur
responsibility while building a productive and employees once they are employed. It may be 6 Standards on Non-Discrimination
diverse workforce must address issues of direct or indirect, and arise in a range of industry 7 International Instruments
10 Types of Discrimination
discrimination in the workplace. Businesses that sectors and cultural settings. Given the complexity of
12 Maternity and Other Family Rights
succeed in doing so act decisively to eliminate the challenge, the Good Practice Note seeks to help
14 Harassment
discriminatory practices and create the conditions IFC clients and the wider private sector increase
16 Migrant Workers
for diversity and equality of opportunity and their understanding of the issue in a number of key
18 HIV/AIDS
treatment in employment, often going beyond what areas, including: recognition of the various types of
20 How Companies Can Make a Difference
is required of them by national law. Employers who discrimination; how and where it can occur in the
24 Acknowledgments and Useful References
adopt such approaches may derive a number of workplace; obligations under national law and other
business advantages, including penetration of new international provisions; practical approaches and
markets, improved employee morale, a wider pool options for addressing workplace discrimination; and
of talent from which to recruit, reduced exposure the benefits derived from diversifying the workforce.
to legal challenges, and reputational benefits. (For
more on The Business Case for Diversity, see p. 2.) While tackling these issues can be sometimes
controversial and difficult, particularly in an emerging
Both non-discrimination and equal opportunity are market context, there are a growing number of
rooted in the principle that all employment companies engaged in good practice efforts that may
decisions are based on the ability of the individual to go beyond their legal obligations with respect to
do the job in question without regard to personal non-discrimination. These businesses are actively
characteristics that are unrelated to the inherent reaching out among the communities in which they
requirements of the work. Conversely, operate to create opportunities for previously
discrimination in employment can be defined as any alienated groups to participate in the labor market.
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Non-Discrimination and Equal Opportunity

This Good Practice Note draws on many of these addition, emerging market companies which
examples and case studies to illustrate how today's produce for a global export market are increasingly
companies are taking positive action in the equal finding that such issues are raised by their
opportunity arena. customers, who require commitments as to the
elimination of discrimination as a standard condition
of business.
There is a growing The Business Case
consensus that
for Diversity There are often clear business benefits for a
company in recruiting employees from as wide a
promoting a diverse
There is a growing consensus that promoting a pool as possible. Businesses that are serving
workforce is good for diverse workforce is good for business. particular markets will frequently find that having a
business. Employment practices and decisions based on an diverse workforce increases their penetration in
individual's gender, race, religion or other personal those markets, based on the image which their
characteristics irrelevant to their performance at workforce gives to potential and actual customers.
work restrict the available pool of workers and Such companies also tend to benefit as a result of
skills. Discrimination also can isolate a company having a wide range of experiences, perspectives,
from the community in which it operates and and cultural understandings within the organization.
damage its reputation, potentially affecting profits. In

Business Case for Diversity in Brazil


The German chemical company BASF seeks to The Committee's first actions were to review and
uphold equal opportunities for all, irrespective of sex modify recruitment selection procedures. In addition,
or color, in all its operations. This principle is of communications measures have been taken to
particular importance within its operations in Brazil, encourage awareness of the issue and events
a country forged out of diverse cultures, where black including workshops for management staff and
people and women, in particular, are sometimes community initiatives have been planned. The idea
constrained in their educational and employment is to integrate the diversity principle firmly in the
opportunities. minds of decision makers and employees.

This is reflected in the composition of BASF's BASF recognizes that an ethnically mixed workforce
workforce. The company currently employs around brings its cultural knowledge on board and helps
3,500 people in Brazil, yet fewer than one in four the company to develop new markets and service
are women and only around 6% are black. Thirty- existing ones in a customer-focused manner.
five women and nine black employees currently hold Diversity is thus a sound business principle, simply
senior management positions. because BASF wants the best employees on the
market.
In order to reverse the overall underrepresentation of
women and black employees within the company, This program places BASF among the very few
and above all in management positions, BASF S.A. multinational companies operating in Brazil that
established a Diversity Committee in 2003. The pro-actively tackle the problem of discrimination
Committee is made up of members representing against women, black workers and other minorities,
Brazil's diversity, particularly women and black both in employment and in occupation.
workers.
Source: BASF, Global Compact 'Learning Forum' paper

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Good Practice Note | January 2006 | Number 5

Non-Discrimination Roadmap

Identify need for » Link non-discrimination with business priorities


non-discrimination » Get top management support for initiatives
strategy » Identify business benefits from non-discrimination

Prepare baseline » Analyze the composition of workforce


information » Analyze the composition of local labor market
» Get information on legislative requirements

Review and change » Move to competence-based systems


recruitment » Ensure recruitment is not based on personal specifications
policies » Train managers in non-discriminatory recruitment

Assess payment » Identify potentially discriminatory practices


practices » Audit payment disparities for women and minority groups

Implement an » Define an anti-harassment policy


anti-harassment » Communicate the policy to the workforce
policy » Train managers on the policy
» Support workers who are harassed

Develop family-friendly » Institute maternity leave policies


policies » Encourage flexible working where appropriate
» Consider the possibility of providing crèches
» Consider ways to accommodate breastfeeding mothers

Understand cultural » Know the cultural boundaries in the society in which you operate
and religious » Train and develop managers to understand cultural differences
diversity » Adjust workplace practices to facilitate religious cultural practices where
possible

Involve » Check your recruitment requirements: are they absolutely necessary?


underrepresented » Consider ways of providing training to potential employees to improve their
groups in your chances of employment
workforce » Consider whether you can work with government, trade unions and other
stakeholders to develop the potential of underrepresented groups

Devise a strategy to » Examine ways in which jobs can be readjusted to accommodate persons with
deal with disability disabilities
and health issues » Have a health management system which seeks to rehabilitate or reintegrate
employees who have long-term health problems
» Develop a policy on HIV/AIDS

Communicate » Ensure your managers and workforce know the standards of behavior expected
of them and are aware of company policies
» Let marginalized communities know about your programs
» Accentuate the positive advantages of non-discrimination with all stakeholders

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Managing Retrenchment
Non-Discrimination and Equal Opportunity

Other business advantages derived from an


Grounds upon Which
approach based on non-discrimination and equality
Discrimination May Be
of opportunity may include:
Inappropriate or Unlawful
» being the employer of choice - promoting their » Gender » Sexual orientation
values and commitment to diversity is one tool » Race » Disability or health
In most » Nationality » HIV status
companies use in attracting the best talent
» Ethnic origin » Union membership
circumstances » improved productivity through increased » Caste » Political affiliation
employee morale, job satisfaction and reduced » Religion or belief » Marital status
discrimination will
turnover
not tend to be overt, » a better market focus with an understanding of not tend to be overt, but rather the result of
but rather the result changing customer base and awareness of prevailing cultural, social or economic norms. It
customer needs may also arise from the application of particular
of prevailing cultural,
» enhanced reputation policies which on the face of things appear neutral
social or economic » increased competitiveness, creativity and in their effect, but in reality are detrimental to one
norms. productivity group as compared to another. For example, if an
» reduced vulnerability to legal challenges employer advertises only in a particular language,
or claims a job needs particularly stringent
qualifications, the effect may be that members of
Where Discrimination one group are less able to apply for the job. In such

Can Occur circumstances an employer should be able to justify


the application of the requirement imposed.
Discrimination can arise in a variety of work-related
situations. These include access to employment Some of the areas where discrimination is most
and to particular occupations, and access to training likely to occur, and where companies should
and vocational guidance and support. Further, it can exercise care in their policies and actions, include
occur with respect to the terms and conditions of the following:
the employment, such as remuneration, hours of
work and rest, paid holidays, maternity leave, » Recruitment of new workers. Problems can
security of tenure, advancement, social security, occur as a result of basic prejudice or
and occupational health and safety. It can also arise misunderstanding on the part of those making
through harassment and victimization. the hiring decisions. They can also arise from the
Discrimination at work may occur in a range of application of particular criteria or requirements
settings; it can exist in a rural agricultural business or that are not necessary for the job but negatively
in an urban high technology environment. impact a particular group. Examples include:
unnecessary qualifications, language skills that are
There are some circumstances where employers not required by the job, or a requirement that
deliberately discriminate on inappropriate grounds. recruits must live in a particular area, unless this
However, in most circumstances discrimination will is necessary for the job.

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Good Practice Note | January 2006 | Number 5

» Retrenchment and restructuring. These ensure that policies and procedures are in place
processes often involve the dismissal of workers, to ensure that such terminations are not a mask
which can give rise to discrimination against one for discrimination practices.
group, depending on the procedure and criteria » Training and development. Just as preferences
used. For example, dismissing those with the can be made during hiring and promotion, the
least amount of service may disproportionately same can be said for training and development. It
Decisions on how
affect women and minorities, who are often the is important to bear this in mind, because an
most recent entrants in many longer established employee may later be denied promotion on the much individuals are
organizations. apparently non-discriminatory ground that he or paid and who should
» Payment and promotion. Decisions on how she had less training and qualifications.
much individuals are paid and who should be » Harassment at work. Where there are gender, be promoted can
promoted can often be subjective and open to ethnic or other tensions at work, harassment may often be subjective
influence by discriminatory criteria. Assessment take place. Women in particular are subjected to
and open to influence
by managers may be subjective, or the widespread harassment.
rewarding of some characteristics such as » Maternity protection. In order to effectively by discriminatory
strength more than others such as dexterity, for participate in the workforce and not suffer criteria.
example, can disadvantage women. discrimination, it is essential for women to receive
» Dismissal for cause. While there is nothing particular protections in relation to maternity,
inherently discriminatory about dismissing an childbirth, and breastfeeding.
employee for good reason, employers should

Anti-Discriminatory Measures in Venezuela

Norwegian energy group Statoil has taken a broad befall the Warao people of the Orinoco delta, where
view of its responsibilities with regard to much oil is produced.
discrimination in employment. The company runs an
established training program on human rights for Statoil supports the UNDP and BanMujer, a
employees and contractors in Venezuela, and governmental institution, with a training program to
prevention of discrimination against women and promote the incorporation of women into the
indigenous peoples is one of the main elements productive chain in Valdez Municipality, Sucre State.
included in this program. As far as training programs and work placement for
vulnerable or excluded groups are concerned, Statoil
To gain knowledge about national requirements and Venezuela sponsored the publication of the First
challenges, Statoil cooperates closely with the Multicultural Bilingual Educational Guide for the
government and NGOs in Venezuela. The group has Warao People. This project was carried out in
signed an agreement with the United Nations partnership with the Ministry of Education, the oil
Development Program (UNDP), which has among company Perenco Venezuela and the NGO SOCSAL.
others an education program for children to Statoil is also currently supporting an Amnesty
promote non-discrimination and tolerance. This last International training program for people with
component has a specific project on human rights disabilities to become economically active.
for indigenous communities in order to combat the
discrimination and intolerance which commonly
Source: Statoil, Business Leaders Initiative on Human Rights
Report 2: “Work in Progress”

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Managing Retrenchment
Non-Discrimination and Equal Opportunity

Standards on IFC Standards

Non-Discrimination IFC requires specific performance standards in


relation to projects that it finances. These
Most countries have some form of non- performance standards are driven by principles of
discrimination legislation. This can range from social and environmental sustainability, are
In some countries,
simple one-sentence constitutional provisions outcome-focused, and contain concise objectives
non-discrimination prohibiting discrimination at large, to detailed and requirements.
laws may be weak or labor-specific legislation on various discriminatory
practices. Where rules against discrimination exist Performance Standard 2 on Labor and Working
may only cover a as part of national law, businesses are obliged to Conditions states that IFC clients shall not make
limited range of comply. employment decisions on the basis of personal
characteristics unrelated to inherent job
categories.
In some countries, however, non-discrimination requirements. It goes on to state that the client will
laws may be weak or may only cover a limited base the employment relationship on the principle
range of categories. In such circumstances of equal opportunity and fair treatment, and will not
businesses that take principles of non-discrimination discriminate with respect to aspects of the
seriously often look to broader standards agreed to employment relationship, including recruitment and
by the international community and industry best hiring, compensation (including wages and benefits),
practice to help determine their own standards of working conditions and terms of employment,
behavior. Social and cultural expectations are often access to training, promotion, termination of
slow to develop around issues of discrimination, employment or retirement, and discipline. In
and it may often be the case that national legislation countries where national law provides for non-
or even international standards may lag behind discrimination in employment, the standard
current best practice approaches to non- requires the client to comply with national law.
discrimination. When national laws are silent on non-discrimination
in employment, the client is still expected to meet
However, there are some common themes in the principles of non-discrimination set out in the
both international conventions and law, as well as performance standard. The standard also specifies
private and public sector best practice. In this that special measures of protection or assistance to
section we set out the principles that guide IFC remedy past discrimination or selection for a
clients in this area as well as international and other particular job based on the inherent requirements
standards which apply in relation to non- of the job will not be deemed to be discriminatory.
discrimination.
IFC's Performance Standard on Labor and Working
Conditions is also accompanied by a Guidance
Note that provides further details on the issues of
non-discrimination and equal opportunity. More
information can be found at: www.ifc.org/enviro

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Good Practice Note | January 2006 | Number 5

International The Complexity of Employment Equity in South Africa


Instruments As a major employer in South Africa, mining for the rigorous testing is that potential
company BHP Billiton is committed to employees need to operate heavy
There are a number of well-established achieving employment equity in its South machinery in the plant. On average, in an
international instruments related to discrimination in African operations. The company has intake of 70 candidates, only three
introduced an Employment Equity Policy, in candidates qualify for employment. Most
the workplace. Some have been in existence for
consultation with trade unions and in line with candidates fail the medical testing due to
over fifty years, while others have evolved more the spirit of the South African Government's poor health and living standards. The net
recently in response to new and emerging issues. Employment Equity Act, which is aimed at result, by default, is that the uptake of
improving labor market access and mobility candidates is skewed in favor of people
Among the most important international for people in designated groups: black from the Indian and white communities.
conventions are those which come from the people, women, and people with disabilities.
International Labor Organization (ILO) and the The ultimate aim for the company is to Some positive results are already apparent,
achieve representation at all levels of the however. At the company's Hillside
United Nations. The ILO places obligations on business consistent with the demographic operation, initiatives include an
countries to take measures to eliminate profile of South Africa. Accelerated Development Program to
facilitate the development and promotion
discrimination in employment and occupation and Recognizing the country's history, in which the of employees with potential; scholarships to
to promote equality of opportunity and treatment. majority of South Africans were excluded from help female employees achieve millwright
Discrimination is defined in ILO Convention 111 as participating in the mainstream economy, BHP status; practical vocational work for
Billiton has adopted a strategy of change students; and on-site training for graduates
any distinction, exclusion or preference based on a through empowerment. to allow their skills to be identified and
number of specified grounds which has the effect of developed. It is through initiatives such as
The Employment Equity Forum addresses the these that Hillside has attained a 60%
nullifying or impairing equality of opportunity or
issue of legislative requirements for the success rate in filling promotions and
treatment in employment or occupation. company, maternity benefit policy, pension appointments from the targeted designated
provision and recruitment. It also covers groups since the plan was put in place.
transformation at the levels of ownership,
The scope of the Convention covers access to management, sustainable socio-economic To promote equitable access to
vocational training, access to employment and to development, and procurement. The employment, BHP Billiton is involved in a
particular occupations, and terms and conditions of company's Employment Equity Policy, a key number of community projects. For
plank of the strategy, is aimed at redressing example, in partnership with other major
employment. Some 162 States have ratified this previous imbalances through accelerated industries in the region, through Zululand
Convention and, as a consequence, are obliged to development, training and education Chamber of Business Forum, the company
programs, and numerical goals and participates in a number of school
undertake to repeal any statutory provisions and
timetables. initiatives aimed at providing support
modify any administrative instructions or practices structures to schools in the region, with
which are inconsistent with non-discrimination, and Achieving this goal is far from straightforward, particular emphasis on the fields of
however. BHP Billiton's recruitment policy mathematics, physical science and biology,
to enact legislation and promote educational provides an illustration. All candidates must as well as physical school improvements. In
programs which favor its acceptance and have specific school qualifications (Grade 12) addition, BHP Billiton is involved with a
implementation in cooperation with employers' and plus mathematics and science as subjects number of skills training projects in the
passed. All candidates for any position in the Empangeni region.
workers' organizations. company must pass a medical examination.
Candidates applying for positions at the plant
must undergo a number of tests, which
The ILO Equal Remuneration Convention, 1951
include psychological assessment, medical,
(No. 100) provides that ratifying states should—by stamina, hearing, eyesight and lung function. Source: BLIHR, BHP Billiton 2004 Health Safety
According to the company, the reasons given Environment and Community Report
means appropriate to the methods in operation for

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Non-Discrimination and Equal Opportunity

determining rates of remuneration—promote and, discrimination and, to the extent possible, without
insofar as is consistent with such methods, ensure conflict between their work and family
the application to all workers of the principle of responsibilities.
equal remuneration for men and women for work
of equal value. This implies that rates of The United Nations International Convention on
remuneration must be determined without the Elimination of All Forms of Racial
Rates of
reference to gender. Discrimination (1965) defines racial discrimination
remuneration must as “any distinction, exclusion, restriction or
be determined Regardless of whether a State has ratified the core preference based on race, color, descent, or
ILO Conventions on non-discrimination, the national or ethnic origin which has the effect of
without countries in which IFC operates have committed to nullifying or impairing the recognition, enjoyment or
discrimination their implementation. This is because the principles exercise, on an equal footing, of human rights and
are one of the four “core” labor standards fundamental freedoms in the political, economic,
based on gender.
contained in the ILO's Declaration on Fundamental social, cultural or any other field of public life.”
Rights and Principles at Work, which all members of
the ILO have agreed to promote. The United Nations Convention on the
Elimination of Discrimination Against Women
The ILO Maternity Protection Convention, 2000 (1979), in addition to enumerating the equal rights
(No. 183) requires ratifying member States to that women should enjoy in the workplace,
adopt measures to protect the health of pregnant emphasizes the steps that government should take
and breastfeeding women at work. It includes to “prevent discrimination against women on the
provisions concerning their entitlement to grounds of marriage or maternity and to ensure
maternity leave (not less than 14 weeks) and their effective right to work.” These measures
benefits. Member States are also explicitly required include: protection from dismissal on the grounds
to ensure that maternity does not become a source of pregnancy, maternity leave, or marital status, as
of discrimination in employment, including access well as special protections for women during
to employment and protection against dismissal. pregnancy in types of work proved to be harmful to
them; maternity leave with pay or with comparable
The Workers with Family Responsibility social benefits without loss of former employment,
Convention, 1981 (No. 156) aims to promote seniority or social allowances; and provision of the
equality of opportunity and treatment between necessary supporting social services, in particular
men and women workers with family through promoting the establishment and
responsibilities and between workers with family development of a network of child care facilities.
responsibilities and other workers who do not have
such responsibilities. With a view to creating The Universal Declaration of Human Rights and
effective equality, member States shall make it an the International Covenant on Economic, Social
aim of national policy to enable workers with family and Cultural Rights also provide general protection
responsibilities to engage in employment without against discrimination.

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Good Practice Note | January 2006 | Number 5

Provision of Crèche Facilities in Kenya

The Alltex garment factory in Kenya provides an example of good practice in the provision of child care
facilities. The factory is a joint venture between Industrial Promotion Services (Kenya) Limited (IPS) and Global
Readymade Garments Industry LLC of Qatar. IFC is a 15% shareholder in IPS, the majority shareholder being
the Aga Khan Fund for Economic Development. The state-of-the-art factory, which opened at the end of
2003, employs about 2,000 people, the majority of them women. Seeing the challenge facing working
mothers, Alltex decided to establish and run a crèche for children of its staff. Employers in Kenya are not Regardless of
compelled by law to run a crèche, but the management of this factory believes that the crèche has been
responsible for making employees happier and more comfortable at work because they know that their whether a State has
children are safe and happy. According to the management, this, in turn, leads to greater productivity, which
equals increased profits. The crèche has a kitchen, sleeping area, sick bay, ablution block, washing and drying ratified the core ILO
area and indoor play area. The crèche, which can accommodate up to 80 children, caters meals and snacks.
The staff also wash and iron any clothes that the children may soil during the day.
Conventions on non-
Source: Aga Khan Foundation, www.akdn.org discrimination, the
countries in which
IFC operates have
The United Nations General Recommendation Protection of the Rights of All Migrant Workers committed to their
19 to The Convention on the Elimination of All and Their Families was adopted by the UN in 1990
implementation.
Forms of Discrimination Against Women and came into effect in 2003. The Convention
(CEDAW) defines sexual harassment as including: makes it clear that many of the traditional civil and
political rights found in the more general human
“such unwelcome sexually determined behavior as rights instruments apply to all persons, including
physical contact and advances, sexually colored migrant workers and their families. The Convention
remarks, showing pornography, and sexual demands, also clarifies that basic economic, social, and cultural
whether by words or actions. Such conduct can be rights apply to both regular and irregular migrant
humiliating and may constitute a health and safety workers. However, there are some instances in
problem; it is discriminatory when the woman has which the Convention permits States to limit the
reasonable ground to believe that her objection would rights of certain specific categories of temporary
disadvantage her in connection with her employment, migrants, such as seasonal workers, project-tied
including recruitment or promotion, or when it creates workers, or specified-employment workers. The
a hostile working environment.” ILO has Conventions relating to migrant workers:
Convention No. 97 on Migration for Employment
The International Labor Organization has addressed and Convention No.143 concerning Migrations in
sexual harassment as a prohibited form of sex Abusive Conditions and the Promotion of Equality
discrimination under Convention No.111. of Opportunity and Treatment of Migrant
Workers. Convention 97 says that migrant workers
There are a number of international instruments should be entitled to equal treatment with national
that are aimed at protecting the rights of migrant workers regarding working conditions, trade union
workers. The International Convention on the membership and enjoyment of the benefits of

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Non-Discrimination and Equal Opportunity

collective bargaining, accommodation, social are highlighted briefly below, followed by a more
security, employment taxes and enforcement of detailed discussion of thematic areas where, in
employment rights. practice, businesses may be less aware of the
discriminatory impact of certain policies and
Emerging Private Sector Good Practice procedures.

Some employers
There are a number of examples of voluntary Religion
choose to allow initiatives on labor standards which also cover
employees of a discrimination. For example, the tripartite Ethical It is important for employers to ensure that no
Trading Initiative's base code provides that ETI work practices discriminate directly against
particular religion members should ensure, in respect of the suppliers individuals on the basis of their religion. There may
time off on to which the code applies, that there should be “no also be indirect discrimination arising from particular
discrimination in hiring, compensation, access to requirements placed on workers which have a
important religious
training, promotion, termination or retirement disproportionate effect on account of their religion.
holidays, while based on race, caste, national origin, religion, age, So, for example, if a company has a policy that
others provide for disability, gender, marital status, sexual orientation, employees cannot wear a beard or headdress, this
union membership or political affiliation.” may affect certain religious groups. Or if an
prayer facilities employer requires employees to remain at their
within the Similarly, the Electronic Industry’s Supply Chain workstation throughout the day with no choice
Code of Conduct (EICC) provides that over the timing of their breaks, this might affect
workplace.
participants should be committed to a workforce those who wish to pray. Both rules could be
free of harassment and unlawful discrimination. justified, but the company should be able to show
Companies shall not engage in discrimination based sound business reasons for sticking to an absolute
on race, color, age, gender, sexual orientation, rule. Some employers choose to allow employees
ethnicity, disability, pregnancy, religion, political of a particular religion time off on important
affiliation, union membership or marital status in religious holidays, while others provide for prayer
hiring and employment practices such as facilities within the workplace.
promotions, rewards, and access to training. In
addition, workers or potential workers should not Disability
be subjected to medical tests that could be used in
a discriminatory way. (See also, www.eicc.info) While certain jobs will have requirements which
would make it difficult or impossible for an
individual with a particular disability or defined
Types of Discrimination health problem to do them, there may often be
ways in which the job can be adjusted to facilitate
There are, as previously mentioned, a number of that individual. An employer may find that
forms of discrimination that are considered to be preconceptions about particular illnesses or
internationally unacceptable. Some of the key areas disabilities overstate the effect on an individual's

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Good Practice Note | January 2006 | Number 5

ability to work. Employers should look carefully at Sexual Orientation


any such preconceptions and seek to make
accommodations where appropriate. Increasingly, good practice employers acknowledge
that distinctions made upon the basis of an
Gender individual's sexual orientation are both inappropriate
and irrelevant to running an efficient and merit-based
In many countries
As discussed in various parts of this Note, there are business. Often such employers will also adopt
many ways in which discrimination on the grounds measures to prevent workplace harassment on the age still remains a
of gender may occur. Good practice employers will basis of sexual orientation. difficult question in
always look to eliminate both direct and indirect
discrimination on the grounds of gender, whether Age
terms of non-
this is in the form of recruitment decisions or discrimination
payment and promotion systems which unduly While in many countries age still remains a difficult
practice and
favor men. Good practice calls for a regular review question in terms of non-discrimination practice and
of all forms of employment policy and practice to legislation, emerging good practice seeks to legislation.
determine how they affect women and also how eliminate it as a criterion for making decisions which
they may be moderated in order to remove gender have an adverse impact on employees. This is not to
bias and discrimination. Issues to consider include say that certain benefits such as retirement pensions
equal remuneration for men and women workers and the like should be removed, but rather that
for work of equal value. (See also Maternity and individuals who are otherwise obviously suited for a
Other Family Rights, p. 12.) job should not be discounted merely because of
either their age or unfounded perceptions related to
their age.

Religious Sensitivity in Malaysia

Mattel's Global Manufacturing Principles enforce determine policies that would best accommodate
non-discrimination practices and promote religious practices. These included two prayer rooms
understanding of religious freedoms. The company or mushollas (one for men and one for women),
respects not only the cultural, ethical, and flexible schedules to accommodate Friday prayer, and
philosophical differences of the many countries in Muslim-sensitive menus in company cafeterias.
which it operates, but also the needs of distinct During the fasting month, employees who fast during
employee groups within its manufacturing facilities. their shift are entitled to make other arrangements for
For example, at its die-cast plant in Penang, their meals. In addition to recognizing all state
Malaysia, a country recognized as one of the most holidays, Mattel gives its workers paid leave for
ethnically diverse in the world, Mattel has provided a religious activities and state obligations, with written
Hindu shrine, a Buddhist shrine and an Islamic proof from appropriate institutions. In addition,
musholla to address varying prayer needs. Mattel Muslim employees who have three years of service at
also operates two plants in Indonesia that combined Mattel are permitted to make a pilgrimage to Mecca,
employ roughly 10,000 people, about 90% of whom entitling them to 45 days leave of absence with full
are Muslims. When developing a collective labor pay.
agreement on behalf of its employees, Mattel
established an employee-elected committee to Source: www.bsr.org

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Non-Discrimination and Equal Opportunity

Race, Nationality, Ethnic Origin is pregnant, forced testing involves a gross invasion
of privacy and therefore constitutes an
Employers should seek not to discriminate on the inappropriate business practice. Similarly,
basis of race or ethnicity. This is of particular requirements upon women to take contraceptive
importance where either there is a mixture of pills as a condition of their employment is also
different races within a country's national population unacceptable, as are intrusive questions about an
Wherever possible,
or there are defined groups of migrants or individual's intentions with regard to having
provision should be immigrants. It is important that an employer children. Dismissal of workers because they are
made to enable considers the potential for both direct and indirect pregnant is, likewise, internationally recognized to
discrimination in this regard and, in line with some be an inappropriate course of action.
women who work of the examples given in this Good Practice Note,
to continue seeks to implement policies and procedures to Maternity leave
reduce the possibility of discrimination.
breastfeeding their
The amount of maternity leave and payments
children. during leave varies according to the relevant
Maternity and Other national law and/ or collective agreements.

Family Rights Employers should inform employees of their rights


with regard to maternity and other parental leave
An area which can often give rise to controversial when an employee informs them of her pregnancy.
and difficult issues relates to the rights of women to Further, the employer should be sure to comply
both reproductive health services and continued with all relevant payments and leave entitlements.
work before, during and after pregnancy.
Breastfeeding
Pregnancy Testing
Wherever possible, provisions should be made to
Throughout the world there are employers who enable women who work to continue
submit their female employees to pregnancy tests breastfeeding their children, either by way of areas
before and during employment. This is a where children may be brought during breaks or
discriminatory procedure and questionable from a through breaks to allow women to express milk
legal standpoint. Many large-scale multinational and keep it refrigerated. Some companies provide
organizations that have discovered that their child care facilities and lactation rooms for their
suppliers have been applying such procedures have employees.
asked them to stop doing so under the terms either
of corporate codes of conduct or national Other Family Rights
legislation.
Women normally, though not always, constitute the
While some employers believe they have a right to main caregivers, and, as such, it is important for
know for business purposes whether an employee employers to understand that they may sometimes

Page Twelve
Good Practice Note | January 2006 | Number 5

Pregnancy Testing and Outsourced Work in a Free Trade Zone

Novartis is a major pharmaceutical and consumer the woman herself should decide whether to reveal
healthcare company with 360 independent affiliates her pregnancy and determine what would be best for
in 140 countries. The company signed the UN herself and her child. Pregnancy testing can be
Global Compact in 2000. viewed as both a form of sex discrimination and a
violation of a woman's right to privacy. While sex Dismissal of workers
A survey to determine particular areas of concern for discrimination is prohibited by relevant ILO
the company suggested that third-party activities Conventions, these do not explicitly address because they are
were potentially problematic. One clear example pregnancy testing.
was the existence of pregnancy testing at a sub- pregnant is
contracting production facility in a developing Denying employment on the basis of pregnancy can,
country free trade zone. in many countries, pit local practice against global internationally
norms. Is this an area where global society should,
The management of the plant was pregnancy-testing and has, the right to overrule local practice? recognized to be an
job applicants during a pre-employment physical
without the applicants’ knowledge, and denying Local Novartis management argued that pregnancy inappropriate course
employment to pregnant women. Before the testing was an accepted practice in the country, as
company started emphasizing human and labor shown by the government-owned facility’s insisting
of action.
rights, pregnancy testing had never surfaced as a that a change would jeopardize the relationship with
part of Novartis' anti-discrimination policy. the plant, which had demonstrated acceptable overall
standards for labor practices over an extended period
As with many labor rights issues, there were a of time and was a model plant for its environment (as
number of complicating factors. The production confirmed by an on-site monitoring visit). Beyond the
facility was owned and managed by the local pregnancy testing issue, insisting on a change of
government, as was the whole free trade zone; policy could have a negative effect across a broad
undisclosed pregnancy testing was not against the range of other interactions between Novartis and the
national law; moreover, it was policy across the free government.
trade zone that a condition of employment should
be that the worker be unmarried and not pregnant. This issue found its way to the Novartis Executive
Committee, consisting of the top eight executives in
The senior plant management believed they were the company. The Committee, with CEO Daniel
making an important contribution to the applicant by Vasella as chairman, judged that the practice was
providing a physical examination, perhaps for the indeed discriminatory and would be immediately
first time in her life. It was argued, since most of stopped. The current policy is that pregnancy testing
these applicants were migrant workers from remote is offered cost-free as part of the application physical,
villages, they should know about their pregnancy in but is not a condition of employment.
time to return home for the birth and for the
nurturing environment of the extended family, an
environment that could not be replicated at the plant Source: Novartis, UN Global Compact, BLIHR
site. The management of the plant and that of the
free trade zone were convinced their policy was the
best for the applicants, for the free trade zone, and
for their society.

The counterargument, based on the dignity of the


applicant, was that since pregnancy is such a central
and unique component of a woman's identity, even
though others may treat the issue with great respect,

PageTwelve
Page Thirteen
Non-Discrimination and Equal Opportunity

need time off to deal with emergency issues related healthy environment in which people can work.
to children or elderly relatives. While there are Changing behavior and attitudes is one of the most
obvious limitations on the amount of time workers effective ways of ensuring a harassment-free
can have off for this purpose, it is generally good workplace. This includes having a clear anti-
practice to allow sufficient time for employees to harassment policy coupled with anti-harassment
make alternative arrangements for care. training for all staff. If harassment is alleged, the
Employees subjected people involved should know their rights and
to harassment responsibilities. Employees who commit acts of
should have Harassment bullying or harassment should be dealt with
appropriately, while employees subjected to
confidential means Sometimes there may be workplace conflicts harassment should have confidential means of
of placing a where an employee or group of employees seek placing a grievance or seeking support. With such
sexual favors or uses sexual language, imagery or policies in place, harassment can be dealt with
grievance or seeking behavior in such a way as to distress and disturb promptly, efficiently, and with the least disruption
support. another employee. While women are most and cost possible.
commonly subjected to sexual harassment, men
may experience it as well. Employees are also often If unchecked or badly handled, bullying and
harassed on the basis of their sexual orientation, harassment can create serious problems for an
ethnicity, or union membership. organization, including:

Even if senior management is not directly involved » poor morale and poor employee relations
in this kind of behavior, an employer has » loss of respect for managers and supervisors
responsibility for what goes on in the workplace. It » absenteeism and resignations
is in every employer's interests to promote a safe, » damage to company reputation
» court cases and awards of damages

Dealing with Harassment in the Supply Chain

During an internal audit of suppliers conducted by the criminal nature of sexual harassment, the
Chiquita in 2002, cases of sexual harassment were action to be taken in the event of detection, and
discovered in one location in Latin America. the penalties applicable.
Information was received from union representatives » Training of all employees worldwide on respect in
at a farm level and also from workers. Action taken the workplace and sexual harassment.
by the company following the audit report included: » During the following internal audit in 2003, no
cases of sexual harassment were found in this (or
» Dismissal of involved supervisors after any other) location, despite careful inquiries.
investigation.
» Training of all women workers at the location
concerning sexual harassment, their rights, and Source: Chiquita Annual Report to the Ethical Trading
the duties of supervisors and management. Initiative 2003 (Feb. 2004 - http://www.chiquita.com/
» Training of all management, administrative and chiquita/corpres/ETI2003.pdf)
supervisory personnel at the location concerning

Page Fourteen
Good Practice Note | January 2006 | Number 5

BTC - Building Local Capacity and Creating Employment Opportunities

The BTC Pipeline has been built along a » Priority for unskilled job opportunities was community relations orientation. The
1,768 km corridor through Azerbaijan, given to project-affected communities. objective of this orientation was to increase
Georgia and Turkey and represents one of » To maximize the spread of benefits, the awareness about the local area, cultural
the world's largest construction projects. unskilled workforce would change as the sensibilities and the Code of Conduct, as
At its peak, in 2004, the construction of contractor moved construction camps. well as awareness raising on health issues
the pipeline involved over 20,000 workers. such as communicable diseases.
The project team was made up of skilled Objective 2: Provide a fair and
staff, semi-skilled workers and laborers. transparent recruitment process. Results
Total IFC investment in the BTC project is The employment strategy with regard to
around $250 million. In order to achieve this objective, an distribution of the workforce has generally
employment strategy was developed in all worked well. In Azerbaijan the establishment
BTC corporate policy states that the three countries, including protocols on: of recruitment centers in each district crossed
company will generate “economic benefits by the pipeline ensured a regional spread in
and opportunities for an enhanced quality » recruitment principles, explaining how they hiring. In Georgia, random selection helped
of life for those whom our business contribute to the BTC Project Objectives of prevent instances of preferred individuals
impacts.” Local employment was identified maximizing local employment being hired and provided an air of
as one of the main benefits that the project » mechanisms by which all directly affected transparency, resulting in the recruitment of
could directly bring to people living in the settlements would be able to access the unskilled workers being spread along the
settlements affected by the construction of recruitment process pipeline right-of-way. In Turkey, the strategy
the pipeline and associated facilities. » mechanisms to ensure that the recruitment to promote local employment worked across
Commitments were subsequently made to procedure is transparent and that there is the project, with all contractors achieving
optimize local employment and to ensure no discrimination compliance with overall employment targets,
direct benefits to those living in settlements » procedures to monitor the compliance of although in some cases local employment
in the immediate vicinity of pipeline the construction contractor with targets were difficult to achieve owing to the
construction. In addition, it was hoped employment principles timing of recruitment coinciding with the
control of the employment process by » mechanisms for preferential recruitment of peak agricultural period, resulting in a lower
prioritizing local employment and local workers demand for jobs.
discouraging informal immigration would » internal and external monitoring of the
help minimize socio-cultural tensions and process to seek to ensure that the targets The levels of local employment have to date
improve the relationship between the set out above were met. consistently exceeded the targets, most
project and pipeline-affected communities. notably at Ceyhan Marine Terminal in Turkey.
Three major objectives were identified. Objective 3: Enhance the local skills In Azerbaijan, the target for local
base through training provided on the employment has been comfortably met, with
Objective 1: Maximize local project. the percentage of local employees exceeding
employment in skilled, semi-skilled 70% for the pipeline and 90% at the
and unskilled categories during Commitments were also made to enhance facilities. In Georgia the percentage of local
construction. the skills of national employees through the employees was above 70% for the pipeline
Project Employee Training Plan (developed and always in excess of 60% at the facilities.
In order to achieve this objective the by the contractors and approved by BTC).
following approaches were taken:
Training was also provided to all staff on
» Targets for the percentage of national camp management rules and overall
workers employed were specified in the discipline and cultural awareness. This
contracts between BTC and the included a briefing on camp rules and a Source: BTC Environmental and Social Team.
Contractors. For more information, go to
www.caspiandevelopmentandexport.com

Page Fifteen
Non-Discrimination and Equal Opportunity

Migrant Workers however, good practice urges treating migrant


workers equally and fairly and without creating a
situation of dependency.
One particular area where discrimination is likely to
occur is in relation to migrant workers. Migrants are Export Processing Zones (EPZ) are another area
often stigmatized as being different and “foreign” where migrant workers are often at risk of ill
Migrants are often
and treated differently than national workers. It is treatment. The growing importance of such zones
stigmatized as being not unusual to see labor legislation and workplace in global trade can further compound discriminatory
different and rules which provide for preferential treatment and conditions that migrant workers face because in
higher payment for workers of the national country many countries, EPZs are exempt from national
“foreign” and then for migrant workers. Migrant workers often labor laws altogether or the enforcement of labor
treated differently will not be given proper contracts, will have to live laws inside the zones is weak.
in substandard accommodations, and will have
than national
inferior social security and other benefit In the case of higher-paid expatriate workers
workers. entitlements. The same may apply to internal coming into a country, it may often be that their
migrants, who have come from another region higher pay is justified by a combination of skill,
within the same country. responsibility and ability. However, it may not
always be prudent for a company to rely too
Efforts to treat migrant workers on the same heavily on expensive expatriate workers, not just
footing as other workers may be difficult and because it will give rise to feelings of discrimination,
controversial. Although there may be practical but also because it may not be, in the long term,
difficulties in affording migrant workers exactly the sustainable and cost-effective compared to training
same terms and conditions as other workers, due local workers and developing national capacity.
to relevant national legislation, collective bargaining Good practice companies operating in emerging
agreements or other rules, it is good practice for markets often set specific targets for creating local
employers to try to ensure that two workers doing employment opportunities, building local capacity
the same job are not treated or paid differently through training, and advancing country nationals to
merely because of arbitrary or discriminatory replace expatriates in management positions. (See
criteria. This principle also applies to other benefits also Box on p. 15 on BTC Pipeline Building Local
provided during the course of the contract by the Capacity and Creating Employment Opportunities.)
employer such as housing, medical care and other
support—which is often the case, for example,
during the construction phase of infrastructure
projects. Where there are sound, non-
discriminatory business criteria for treating them
differently, this is acceptable; as a general principle,

Page Sixteen
Good Practice Note | January 2006 | Number 5

Ethiopia: A Private Employment Agency’s Efforts to Protect


Women Migrant Workers

Under Ethiopian legislation on migrant labor passed Meskerem provides its staff with an ID card written in
in 1998, private employment agencies and brokers Amharic (the Ethiopian official language) before they
must register with the Government before sending leave for their destination. The card contains the
Ethiopian agency staff to work abroad. Only those name of the employee, her file number with the The agency contacts
workers able to produce a letter stating that they agency, the address and phone number of the
have gone through the agency are issued exit visas agency in Ethiopia as well as the contact details for all its employees
by the authorities. the agency's representative in Lebanon. It also
contains information on Meskerem's 24-hour twice a month to
The Meskerem Employment Agency is one such assistance service for Ethiopian staff in Lebanon:
registered agency and is the only one licensed to whenever a migrant worker is in trouble, she needs check on their well-
recruit Ethiopians for employment in Lebanon. The only to call and mention her file name and the
Ethiopian workers employed by the agency work in people at the agency will identify her address and go being.
domestic roles, and all are women. Above and to her. The agency has a van with a driver that is
beyond its obligations under the law, Meskerem has available 24 hours a day.
taken several proactive measures to better protect
migrant women workers. Meskerem also keeps records of employees, and any
concerned citizen can go to the agency's offices and
Firstly, it has implemented a policy to recruit only look at the records to find out the whereabouts of the
high school graduates, since it believes that its migrant workers sent through the agency. The record
agency staff require a certain level of education to contains information on the file number of the
assert their rights and to be able to write home to migrants, their full name and telephone number, their
their families. (It should be noted, though, that passport number, their employer's full name and
returnees in a focus group interview questioned the telephone number, their date of departure from their
desirability of this measure, as they did not feel that country and their date of return to the country.
women needed high school qualifications to work as
domestic staff, and it was felt that this policy could, The agency contacts all its employees twice a month
in fact, leave those without such qualifications at the to check on their well-being as well as to find out
mercy of traffickers.) whether the employer is satisfied with their work.
Where there are complaints or misgivings on either
The agency also assists all migrant workers sent to side, the agency attempts to reconcile the differences.
Lebanon in obtaining exit visas and checking the If reconciliation is not possible, the agency
reliability of their prospective employers through its undertakes to return the migrant worker to Ethiopia.
representative in Lebanon, irrespective of whether Where this means that the employee returns before
they have themselves been recruited by the agency. her contract of employment has come to term, the
Once the conditions of employment have been agency pays the migrant compensation of US
confirmed, the agency provides non-Meskerem $1,500. If a migrant has been abused in her
employees with the same training as it provides to its employment, the agency immediately takes her out of
own staff. the abusive situation, pays her salary if the employer
refuses to do so, and repatriates her. Meskerem then
takes legal action against the employer.

Source: E. Kebede, Ethiopia: An Assessment of the


International Labour Migration Situation The Case of
Female Labour Migrants (Geneva, ILO GENPROM Series on
Women and Migration, 2002), pp. 22-36.

Page Seventeen
Non-Discrimination and Equal Opportunity

HIV/AIDS become, infected with HIV or AIDS or are


otherwise affected by the pandemic.

A crucial issue for employers seeking to promote In order to address this issue, an official company
equality of opportunity in emerging markets is the policy or policy statement is a useful tool that can
question of how employees who are affected by serve a number of purposes, including: educating
Companies have
HIV and AIDS are treated. Given the stigma employees about HIV/AIDS including transmission
often found that fear associated with the disease in many societies, and prevention; informing workers of their rights
of discrimination or employees may be actively discriminated against as and responsibilities; making clear the commitment
a result of their perceived HIV status. As a of management; setting forth the principles of zero
harassment is the consequence, it is essential that both employees tolerance for discrimination and respect for the
primary factor and managers understand how an organization confidentiality of HIV status; and, in certain cases,
intends to deal with employees who either are, or protecting a company from liability. As well as being
preventing
employees from Heineken NV: Company Policy on HIV/AIDS Discrimination
learning their HIV Companies have often found that fear of Basic principles of Heineken's HIV/AIDS non-
discrimination or harassment is the primary factor discrimination policy:
status. preventing employees from learning their HIV status
and taking proactive steps to improve their health. » Heineken is firmly opposed to discrimination in
general, including discrimination of employees with
Companies which are active in regions with a high HIV, and will make every effort to ensure that
incidence of infected employees—such as Heineken employees are not stigmatized. Their HIV status will
NV, the Dutch brewer with operations in 160 not affect job security, terms of employment or any
countries worldwide—have attempted to address the other elements of HR policy. They will be treated in
fear of discrimination through policies that prohibit the same way as employees suffering from any
discrimination against potential employment other chronic disease with regard to absenteeism,
candidates based on HIV status and also assessment, transfer to a less demanding position
discrimination against HIV-positive employees. or working environment. HIV status will not be a
criterion in redundancy selection.
These policies are often the result of broad » Given the nature and development of the disease
consultation within the company and with external and its effect on business, Heineken focuses
parties (such as unions, NGOs and international primarily on prevention and on health support for
agencies), and as a means of successfully HIV and AIDS patients.
implementing them, companies have made senior » Heineken will not oblige anyone to undergo an HIV
managers, including Board members, responsible test or treatment, whether employees, potential
for them. employees, their families, or third parties.
» Personal medical information including a request
Below is a summary of a company policy, for and the result of voluntary HIV tests, will be
implemented by Heineken NV. Heineken is a treated in the strictest confidence.
member of the Global Business Coalition on » Heineken will co-operate where possible with
HIV/AIDS, and has had an HIV prevention program relevant organizations and institutions. Heineken
in operation for over ten years in central Africa, with will do its utmost to allow local communities to
regular reviews and updates by the General benefit from the spin-off of preventive activities
Manager Group for the region. which Heineken organizes for its employees.

Source: Global Business Coalition on HIV/AIDS, F&C Asset


Management and UBS HIV/AIDS Beyond Africa: Managing
the Financial Impacts

Page Eighteen
Good Practice Note | January 2006 | Number 5

readily accessible and visible in many locations, the One of the most controversial issues in this area is
company HIV and AIDS policy should be whether an employer should screen potential or
communicated to employees in a manner that explains existing employees for HIV. From a non-
the significance of the policy's terms. Staff should feel discrimination standpoint, HIV status should not be
confident that the company is dedicated to maintaining used as a basis for employment decisions. The ILO
employee privacy and to taking reasonable steps to Code of Practice states that “HIV/AIDS screening
From a non-
safeguard the health of the workforce. Many should not be required of job applicants or persons
employers also seek to develop programs that assist in employment.” Forced testing risks ethical, legal discrimination
families and communities in coming to terms with the and reputational liabilities for the employer. From a standpoint, HIV
devastating impacts that can be wrought by the business perspective, there are also a number of
disease. (See also IFC’s Good Practice Note on practical reasons why such a measure is status should not be
Addressing HIV/AIDS in the Workplace, December 2002, inappropriate and ineffective. First, the fluidity of the used as a basis for
available at www.ifc.org/enviropublications) situation and the spread of the virus mean that an
employment
ILO Checklist for Planning and Implementing a Workplace Policy decisions.
on HIV/AIDS

Employers, workers and their organizations should » Committee assesses the impact of the HIV
cooperate in a positive, caring manner to develop a epidemic on the workplace and the needs of
policy on HIV/AIDS that responds to, and balances workers infected and affected by HIV/AIDS by
the needs of, employers and workers. Backed by carrying out a confidential baseline study.
commitment at the highest level, the policy should » Committee establishes what health and
offer an example to the community in general of information services are already available both at
how to manage HIV/AIDS. The core elements of this the workplace and in the local community.
policy include information about HIV/AIDS and how » Committee formulates a draft policy; draft is
it is transmitted; educational measures to enhance circulated for comment, then revised and adopted.
understanding of personal risk and promote » Committee draws up a budget, seeking funds from
enabling strategies; practical prevention measures outside the enterprise if necessary, and identifies
which encourage and support behavioral change; existing resources in the local community.
measures for the care and support of affected » Committee establishes a plan of action, with
workers, whether it is they or a family member who timetable and lines of responsibility, to implement
is living with HIV/AIDS; and the principle of zero policy.
tolerance for any form of stigmatization or » Policy and plan of action are widely disseminated
discrimination in the workplace. through, for example, notice boards, mailings, pay
slip inserts, special meetings, induction courses,
The following steps may be used as a checklist for training sessions.
developing a policy and program: » Committee monitors the impact of the policy.
» Committee regularly reviews the policy in the light
» HIV/AIDS committee is set up with representatives of internal monitoring and external information
of top management, supervisors, workers, trade about the virus and its workplace implications.
unions, human resources department, training
department, industrial relations unit, occupational Every step described above should be integrated into
health unit, health and safety committee, and a comprehensive enterprise policy that is planned,
persons living with AIDS, if they agree. implemented and monitored in a sustained and
» Committee decides its terms of reference and ongoing manner.
decision-making powers and responsibilities.
» National laws and their implications for the Source: ILO Code of Practice on HIV/AIDS and the World
enterprise are reviewed. of Work

Page Nineteen
Non-Discrimination and Equal Opportunity

individual who is HIV negative on the day of the employment practices to identify where the biggest
test, may not be so the day after the test. Second, risk of discrimination as well as the biggest
an HIV-positive status does not necessarily have a opportunity to make a real difference exist.
bearing on the employee's ability to continue in his Employers who are serious about promoting
or her job. Furthermore, where the level of equality examine the effect of their existing practices
infection has reached pandemic proportions, testing and develop revised policies and procedures to
Some companies
and rejecting HIV-positive applicants who are address gaps and shortcomings. They also
actively seek to give otherwise qualified for the job may leave the recognize the need to raise awareness and to train
marginalized groups employer with a very small potential labor pool. their managers and employees. In addition, some
companies actively seek to give marginalized groups
opportunities to A widespread AIDS pandemic also opens up a host opportunities to work in jobs in which they have
work in jobs in which of issues around the ability of caregivers to support been underrepresented.
their families and also earn a living, which
they have been
companies must consider if they are to be Eliminating Discrimination
underrepresented. supportive and effective employers. The IFC
Against AIDS program is aimed at improving Any company wanting to create a workplace
understanding and developing tools to tackle issues environment in which discriminatory practices or
concerning HIV/AIDS in both the workplace and behavior are not tolerated can take a number of
the community. The program works with client good practice steps towards the achievement of
companies to develop specifically tailored tools and this objective. For example:
advice to address workforce and community-
related concerns stemming from the disease. For » Institute company policies which make
more information go to qualifications, skill and experience the basis
http://www.ifc.org/ifcagainstaids for the recruitment, training, and
advancement of staff at all levels. Clear and
well-explained procedures have the effect of
How Companies Can both minimizing the occurrence of discrimination
Make a Difference and providing the employer with protections
against any legal actions that could arise.
As a general rule, addressing discrimination and » Assign responsibility for equal employment
increasing diversity do not mean a company needs issues at a high level.
to overhaul its workforce to employ certain groups » Raise awareness and train staff within the
in certain numbers to reflect the overall gender or company. All staff, but managers and supervisory
ethnic makeup of society. At a minimum, staff in particular, should have an understanding
companies need to be aware of and respect all of the different types of discrimination and how it
relevant local and national laws pertaining to non- can affect the workforce.
discrimination in the country of operation. Next, a » Promote transparency and consistency. There
company should review its policies and are many situations when an employer will

Page Twenty
Good Practice Note | January 2006 | Number 5

differentiate between employees on perfectly » Provide access to skills development training to


acceptable grounds such as performance, ability, all employees where relevant.
or market requirements. However, managers » Avoid systematic applications of job
must be able to explain the reasons why one requirements that would disadvantage certain
member of staff was treated a certain way, not groups. Work on a case-by-case basis to evaluate
only to protect against discrimination but also to whether certain requirements are necessary for
It is important that a
make sure they are making the right decisions and the job.
preserving good employee relations. » Keep up-to-date records on recruitment, diversity strategy be
» Link advancement of supervisory staff to training and promotion. To be useful, such a part of the overall
performance in this area. Managers should be records should provide a way to track
able to demonstrate adherence to company opportunities available to employees and their corporate vision and
policies and procedures on non-discrimination progression within the organization. not an optional extra.
and equal employment in their area of operation.

Establishing a Diversity Strategy: Key Components


Ensure diversity as part of the overall core important to remember that inclusion is better than
strategy for the organization. It is important that a exclusion. Find a way for willing individuals to
diversity strategy be a part of the overall corporate participate. Encourage a broad base of participation.
vision and not an optional extra.
Communication. Information regarding the
Top management commitment. Support for progress and purpose of a diversity strategy should
diversity initiatives at all levels of the organization is be spread throughout the organization. Further,
important, but senior-level support is critical. seeking feedback from employees is an important
way of developing the strategy and heading off any
Auditing and assessment of needs. Determine the discontent. Diversity training and education are
needs of your organization in the area of diversity. critical for the success of initiatives.
Merely taking an “off the shelf” program will only
lead to the development of a plan and targets that Individual understanding. While it is important to
are inappropriate to the business and as a result are create plans for the overall organization, individuals
less likely to be achieved. need to understand their specific role in the success
of the strategy. As part of this process, try to set
Clarity of objectives. A strategy to promote appropriate goals for managers.
diversity should be based on clear, quantifiable
objectives within defined time scales. Look to Diversity champions. One measure of success is
develop indicators for the various aspects of the plan the number of individuals who have seamlessly
and regularly check progress. integrated the goals of the diversity strategy into the
work plan for their own departments/divisions. As
Promotion of accountability. Transparent and fully these “champions” emerge, the success of the
understood processes on diversity will lead to a more diversity strategy stabilizes and grows.
successful outcome, and will also help to avoid any
misunderstandings or feeling that there is more Evaluation. Any workplace change initiative should
favorable treatment of one group. be evaluated with reference to the vision, objectives
and indicators established at the start of the process.
Establishment of a diversity team. There should The same goes for a diversity strategy.
be more than one or two staff members, but too
many members can be counterproductive. It is

Page Twenty-one
Non-Discrimination and Equal Opportunity

» Develop grievance procedures to address Promoting Equal Opportunity


complaints, handle appeals, and provide
recourse for employees. Be aware of formal As a matter of good practice, companies should
structures and informal cultural issues that can develop and promote an equal opportunity policy,
prevent employees from raising concerns and both in terms of hiring and on the job. This means
grievances. that once hired, individuals are accorded equal
Any company
» Accommodate disability. Provide staff training opportunities to develop the knowledge, skills and
introducing on disability awareness and reasonably adjust the competence that are relevant to their job. Any
measures to physical environment to ensure health and safety company introducing measures to promote
for employees, customers and other visitors equality needs to be aware of the diversities of
promote equality with disabilities. language, culture, and family circumstance that may
needs to be aware of » Work with trade unions. Reach agreements to exist in the workforce.
promote equality and non-discrimination.
the diversities of
Some socially responsible companies seek to go a
language, culture, Monitoring Diversity in the Workforce step further, sponsoring outreach programs with
and family those members of the community who have been
In order to determine whether discrimination exists historically discriminated against in order to
circumstance that or whether any remedial measures that have been enhance their ability to take up meaningful
may exist in the adopted are having any effect, businesses should employment. While positive discrimination or
consider monitoring the composition of the affirmative action programs can be controversial
workforce.
workforce and how this changes over time. So, for (and in some countries unlawful) the kinds of
example, an employer who wants to improve the capacity building and other helpful actions
representation of minorities within its workforce undertaken by companies featured in this Note can
may consider monitoring the ethnic origin not only lead to real results and have genuine benefits for
of those individuals who are actually appointed, but the businesses concerned.
also those who applied for work with the
employer. Similarly, a company that has Outside the workplace, companies can also play a
implemented a management training program for role in promoting opportunity. They may support
women should monitor whether the proportion of community efforts to foster a climate of tolerance
women within management grades increases over and equal access to occupational development
time. opportunities. This could take the form of
sponsorship of awareness campaigns, adult
Monitoring of this nature should be carried out on education programs, or child care services, for
the basis of anonymity, and the data arising from it example. Companies may need to accommodate
should be kept separate from personnel records. cultural traditions and engage worker
representatives and government authorities to
improve equal access to employment by women
and minorities.

Page Twenty-two
Good Practice Note | January 2006 | Number 5

Promoting Women's Employment in Mining

Programa Mujer is an innovative example of the concept of hiring women with no experience. the women's determination meant that they
how to break with tradition that excludes women The recruitment ads generated a flood of gained acceptance among their workmates
from mining operations. The program was an responses. The company received 936 by demonstrating that their technical
initiative of IFC client Minera Escondida, the applications from women with no prior work was safe, of a high quality and
world's largest copper-producing mining experience, of whom 238 were invited to productivity. The workforce of Minera Escondida
company, located in the Atacama Desert in the participate in the recruitment process. The became more inclusive, and the women's
north of Chile. It was supported by Chile's applicants came from a variety of backgrounds; presence generated a positive impact on
Ministry for Women's Affairs. teachers, secretaries, train operators, security workplace attitudes and behaviors. Early results
guards and fork-lift truck operators. indicated that high productivity rates and
In light of the high unemployment rate for attention to maintenance detail made this a
women in Chile and the company's role in the The applicants underwent a series of evaluations sound business decision as well as the right
local economy and as a job creation source, it and a rigorous 3-month-long selection process. thing to do.
was important for Minera Escondida to take The final group of applicants attended a 3-
special steps to include women in its labor force. month training period that included technical, The project generated excellent PR for the
mechanical and practical matters as well as a company, challenging the notion of workplace
Programa Mujer marked the company's first focus on safety and corporate values. The next stereotypes. The women were able to gain the
attempt to integrate women into the operation of step was a training and evaluation period during respect and recognition of their co-workers,
heavy mining equipment since production which the women operated equipment at the challenging the belief that only men can
started in 1990. The name and image of Minera Escondida Norte Mine. The women who were perform heavy equipment operations.
Escondida were used country-wide to promote hired on a permanent basis are today part of the
and disseminate the emerging role that women mine operations team, operating 360-ton haul Source: “Promoting Gender Equality in the Private
are playing in the Chilean mining industry. After trucks, graders, and 90-ton water trucks. While it Sector - Hiring Women in Mining Production Jobs.”
recruiting a small number of women with existing was not easy to integrate women into shifts IFC (2005).
www.ifc.org/ifcext/enviro.nsf/content/GEM
experience, Escondida management approved where only men had worked previously,

“Going Beyond”: Women’s Empowerment Program in Sri Lanka and India

MAS Holdings launched a women's Recognizing the importance of English language As a result, 14 inspiring women have been
empowerment program in November 2003 skills, MAS subsidiary MAS Intimate Fashions, identified and rewarded as “Empowered
entitled Go Beyond, focusing on women both at located in Chennai, India, has introduced Women” who have battled and overcome
MAS' apparel manufacturing units and within the English-language instruction to its employees, many challenges, both personal and
rural communities in which they operate. regardless of whether English was directly professional. These women serve as
applicable to their present positions. spokespersons for empowered women within
Over 90% of the employees at MAS' apparel their respective work units. Many of them
manufacturing plants are women. A large In 2004 an MAS Go Beyond “Empowered began within the apparel industry at the
majority of these women are from predominantly Woman of the Year” competition was launched bottom-most rung as Helpers or Machine
rural backgrounds, and while some may have group-wide. The only requirements for applying Operators, and have over a period of years
high levels of literacy, many would have had were that the lady be an MAS employee for at risen into responsible posts such as Assistant
limited access to enhance their education and least one year and that she be nominated by a Production Managers and Quality Executives.
skillbase. peer/supervisor.
Their stories also have the power to inspire
The program has four main areas of A panel of six judges comprising four members women at a macro level. As such, these
concentration: Training for Career Development; of the MAS Corporate Social Responsibility winners' life stories are being published in a
Rewarding Excellence; Initiatives on Work-Life Advisory Committee, the National Coordinator monthly national newsletter (entitled “Women
Balance; and Rewarding Excellence of Women in of the ILO-International Program to Eliminate @ Work”).
the Communities. Child Labor (ILO-IPEC) and the Strategic Director
of a Local Advertising Company did the final Source: MAS Holdings, UN Global Compact
round of judging. Fourteen winners representing
14 business units were chosen.

Page Twenty-three
Non-Discrimination and Equal Opportunity
Acknowledgments

“Non-Discrimination and Equal


Good Practice Publications available at Useful References

Opportunity” marks the fifth in a series of


Good Practice Notes prepared by the
www.ifc.org/enviropublications International Labor Organization
www.ilo.org

Environment and Social Development UN Global Compact


Department of the International Finance GOOD PRACTICE NOTE: Managing www.unglobalcompact.org
Corporation. The work was carried out Retrenchment (August 2005)
under the direction of Rachel Kyte Provides guidance to IFC clients and the Business for Social Responsibility
(Director) and managed and edited by wider private sector operating in emerging
www.bsr.org
Debra Sequeira (Senior Social markets on how to plan and manage the
Development Specialist). Steve Gibbons process of retrenchment where
(Director, Labor Rights) and Alastair Usher significant job losses are anticipated. Ethical Trading Initiative
This Good Practice Note helps http://www.ethicaltrade.org/Z/resrcs/subj/
(Research Director) of Ergon Associates
companies think through the 7-discr/index.shtml#more
were the Note's principal authors. Design
key issues, avoid common
and layout were done by Vanessa Manuel. pitfalls and learn from the ILO - Business and Decent Work:
experiences of other companies Non-discrimination Facts & Figures
The team would like to thank the following to design a comprehensive
people who provided valuable comments http://www.ilo.org/public/english/comp/
Retrenchment Plan.
on earlier drafts: Rachel Kyte, Bruce Moats, business/info/discrim.htm
28 pages | ©2005 IFC |
Richard Caines, Motoko Aizawa, Free to download
Margaret Wachenfeld, Sandra Polaski ILO Global Report: Time for Equality at
(Carnegie Endowment), Amanda Ellis, GOOD PRACTICE NOTE: Work
Sabine Durier, Armand Pereira (ILO) Addressing the Social http://www.ilo.org/dyn/declaris/
and the ILO Headquarters (Geneva). Dimensions of Private Sector DECLARATIONWEB.GLOBALREPORT
Projects (December 2003) DETAILS?var_language=EN&var_Publications
We are grateful to those who participated A practicioner's guide to undertaking ID=116&var_ReportType=Report#
in the peer review and public comment social impact assessment at the
process including: Louise Gardiner, William project level for IFC-financed Good Practices in the Workplace - The
Bulmer, Patricia Miller, Josefina Cutura, projects. This Good Practice Note has Business Case for Diversity
been written by IFC social http://www.conference-board.org/
Ted Pollett, Larissa Luy, Josefina Doumbia,
development specialists based on years pdf_free/goodPracticeWorkplaceDiversity.pdf
Christopher Frankel, Ajay Narayan, and
of private sector experience across
Martin Lednor (BTC). Thanks are also due
industry sectors and regions. It covers issues from scoping and baseline data collection to Business & Diversity - Helping Business
to Barbara Zhang, Rashanikka Hayley and impact analysis, mitigation and monitoring of social impacts. Social assessment is presented
Giulio Quaggioto for their help in Score Higher in Managing Diversity
as both an integral part of IFC's environmental assessment process and as a tool for
promotion and dissemination. http://www.csreurope.org/uploadstore/cms/
identifying value-adding opportunities that go beyond traditional mitigation measures to
promote sustainable development on a broader scale.
docs/CSRE_pub_diversityDec2002.pdf
28 pages | ©2003 IFC | Free to download
IFC Gender Entrepreneurship Markets -
GOOD PRACTICE NOTE: HIV/AIDS in the Workplace (December 2002) QuickNotes
An introduction to the issue of HIV/AIDS in a business context. This Good Practice Note http://www.ifc.org/ifcext/enviro.nsf/Content/
looks at the impact of the epidemic on the private sector, assesses the costs to companies, GEM-QuickNotes
and provides a menu of program options from awareness raising and policy development to
prevention, care and treatment programs for businesses interested in implementing IFC Against AIDS
HIV/AIDS initiatives to support their employees and the communities in which they work www.ifc.org/ifcagainstaids
and live.
24 pages | ©2002 IFC | Free to download UNAIDS
www.unaids.org/en/in+focus/hiv_aids_human_
For more information, please contact: GOOD PRACTICE NOTE: Addressing Child Labor in the Workplace and rights/unaids+activities+hr.asp
International Finance Corporation Supply Chain (June 2002)
Environment and Social Development This Good Practice Note offers a unique private sector perspective on the topic of harmful
ILO Code of Practice on HIV/AIDS and the
Department child labor. It seeks to share corporate learning and experiences by providing companies
World of Work
with a range of basic, good practice approaches that other businesses have successfully
2121 Pennsylvania Avenue, NW http://www.ilocarib.org.tt/infsources/general_
applied in managing risks associated with child labor in their own workplaces and those of
Washington, D.C. 20433 reports/aids/cop_aids.pdf
their vendors and suppliers.
USA 20 pages | ©2002 IFC | Free to download
Disclaimer
The purpose of the Good Practice Note series is to share information about private sector approaches for addressing a range of environmental and social issues. This Good Practice Note provides guidance
and examples of basic good practice approaches that businesses have successfully applied in their operations. IFC has not financed all the projects or companies mentioned in the Good Practice Note.
Some of the information in the Note comes from publicly available sources such as company websites. IFC has not verified the accuracy of such information nor the companies' practices.

This Good Practice Note does not represent a commitment by IFC to require projects it finances to take certain or all of the actions specified in the Good Practice Note. Instead, any issues arising in an
IFC-financed project will be evaluated and addressed in the context of the particular circumstances of the project.

Page Twenty-four

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