Case study: How GFCL promotes employee welfare
Operating in 75 countries across the globe, GFCL (Gujarat Fluorochemicals Limited) is one of the leading chemical producers in the world and a market leader in chloromethanes, refrigerants and PTFE. Continuously focusing on the needs and well-being of employees while providing suitable benefits so as to induce improved employee productivity and build a strong retention rate, is a top priority for GFCL.
This case study is based on the 2019-20 Sustainability and UNGC Communication on Progress Report by GFCL published on the Global Reporting Initiative Sustainability Disclosure Database that can be found at this link. Through all case studies we aim to demonstrate what CSR/ ESG/ sustainability reporting done responsibly means. Essentially, it means: a) identifying a company’s most important impacts on the environment, economy and society, and b) measuring, managing and changing.
Abstract
By offering a congenial working environment, providing the best of amenities and employee-centric policies, GFCL seeks to motivate its employees to aspire for professional success Tweet This! while also retaining its position as an employer of choice. In order to promote employee welfare GFCL took action to:
- offer benefits
- promote work-life balance
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With this case study you will see:
- Which are the most important impacts (material issues) GFCL has identified;
- How GFCL proceeded with stakeholder engagement, and
- What actions were taken by GFCL to promote employee welfare
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What are the material issues the company has identified?
In its 2019-20 Sustainability and UNGC Communication on Progress Report GFCL identified a range of material issues, such as economic performance, process safety and emergency preparedness, environmental compliance, anti-corruption, occupational health and safety, climate change. Among these, promoting employee welfare stands out as a key material issue for GFCL.
Stakeholder engagement in accordance with the GRI Standards
The Global Reporting Initiative (GRI) defines the Principle of Stakeholder Inclusiveness when identifying material issues (or a company’s most important impacts) as follows:
Stakeholders must be consulted in the process of identifying a company’s most important impacts and their reasonable expectations and interests must be taken into account. This is an important cornerstone for CSR / sustainability reporting done responsibly.
Key stakeholder groups GFCL engages with:
| Stakeholder Group | Method of engagement |
| Investors / Shareholders
| · Investor meetings · General Meetings · Annual Report · Press Briefings |
| Customers
| · Customer visits by Sales and Marketing team · Technical support interaction · Regular Conferences · Trade fairs · Product brochures and website |
| Suppliers
| · Vendor Satisfaction surveys · Vendor meetings · Vendor capability webinars |
| Employees
| · CEO talk · Employee Surveys · Joint Committee forums · Company In-House Magazine · Let’s Talk and Stay interviews · E-mail Communication · HR Buddy · Ethics Line |
| Community
| · Public Hearing · Community meeting with Community leaders · CSR Cell engagement with community · Community Development programmes and events · Community Development Newsletter |
| Regulatory and Government Bodies
| · Participation is Seminars and events organised by the Regulatory Bodies · Making representations whenever required |
| Industry Bodies and Media
| · Press Conferences · Regional and national conferences and seminars of Industry Bodies · Memberships |
| Educational Institutes
| · Campus engagement · Annual Senior Management Lectures · Annual MOU |
How stakeholder engagement was made to identify material issues
To identify and prioritise material topics, GFCL conducted a survey to objectively capture the opinion of all stakeholder groups on the importance of sustainability topics. The survey questionnaire was rolled out to approximately 230 individuals across the different stakeholder groups. Out of these, a total of 128 individuals responded by giving a rating against each sustainability topic, based on their view regarding its importance.
What actions were taken by GFCL to promote employee welfare?
In its 2019-20 Sustainability and UNGC Communication on Progress Report GFCL reports that it took the following actions for promoting employee welfare:
- Offering benefits
- GFCL’s employee policies and benefits apply to company employees globally at all levels of the organisation while due to local laws and regulations, some policies and benefits vary by country and work location. These benefits include Group Medical Insurance, Personal Accident Insurance, Leaves, Flexi Work schedule, Loans & Advances, Free Transportation, Canteen Facility, Uniform and other Social Security benefits. The company medical insurance scheme voluntarily covers all employees and their immediate families, under a Group Medical scheme. Employees are also covered under an Accident Insurance scheme. GFCL has well-defined policies in place in this regard: ‘HR/33 – Group Medical Insurance’ and ‘HR/34 – Group Personal Accident’ for all employees. These policies are a part of the HR Operations Manual and Employee Handbook. All employees, including trainees and employees on probation, are covered under these policies. All labour/workers of contractors who work in GFCL’s premises are also covered under a group accident insurance scheme, the cost of which is borne by GFCL as the principal employer. In addition to other employee benefits, GFCL also extends social security benefits to its employees which include employer’s contribution to Provident Fund, Pension scheme and ESIC (Employees’ State Insurance Corporation) coverage for employees who are not covered under group medical reimbursement scheme. GFCL also pays Gratuity under Payment of Gratuity Act, 1972 to its employees and Bonus or Ex-Gratia at the rate of 20% of the basic salary (to labour/workers of contractors who are working in its premises, too).
- Promoting work-life balance
- To facilitate better work-life balance and encourage punctuality and discipline in regularity of attendance among employees, GFCL has an established leave policy for availing leaves as per the entitlement. Benefits on account of flexi-timing system, an alternate Saturday extended weekend, are also provided to employees working in specific offices. Leaves are generally of three types: privilege leave, sick leave and casual leave. GFCL also makes sure that all labour/workers of contractors are provided leaves as per the Factories Act, 1948. In addition, GFCL extends special leave when an employee joins or gets transferred to a new location, to support them during relocation. GFCL applies the following policies in this regard: ‘HR/50 – Guideline on Working Hours’, ‘Late Attendance and Extended Alternate Saturdays Off’ and ‘HR/52 – Guideline on Over Time’. At manufacturing plants, GFCL has a standardised process for the Administration of Overtime. All technicians and trainee technicians in the technician grade/level, as applicable in the respective plants, are covered in this policy. Furthermore, all the women employees are entitled to avail child-care leave as per the Maternity Benefit Act. These matters are covered in the Employee Handbook and awareness sessions are held regularly, with contract workers also offered an awareness programme on these subjects.
Which GRI Standards and corresponding Sustainable Development Goals (SDGs) have been addressed?
The GRI Standards addressed in this case are:
2) Disclosure 401-3 Parental leave
Disclosure 401-2 Benefits provided to full-time employees that are not provided to temporary or part-time employees corresponds to:
- Sustainable Development Goal (SDG) 3: Ensure healthy lives and promote well-being for all at all ages
- Targets: 3.2
- Sustainable Development Goal (SDG) 5: Gender Equality
- Targets: 5.4
- Sustainable Development Goal (SDG) 8: Decent Work and Economic Growth
- Targets: 8.5
Disclosure 401-3 Parental leave corresponds to:
- Sustainable Development Goal (SDG) 5: Gender Equality
- Targets: 5.1, 5.4
- Sustainable Development Goal (SDG) 8: Decent Work and Economic Growth
- Targets: 8.5
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References:
1) This case study is based on published information by GFCL, located at the link below. For the sake of readability, we did not use brackets or ellipses. However, we made sure that the extra or missing words did not change the report’s meaning. If you would like to quote these written sources from the original, please revert to the original on the Global Reporting Initiative’s Sustainability Disclosure Database at the link:
http://database.globalreporting.org/
2) https://www.globalreporting.org/standards/gri-standards-download-center/
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