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Home / case studies / Case study: How Hayleys Fabric promotes employee engagement

Case study: How Hayleys Fabric promotes employee engagement

Hayleys Fabric PLC manufactures innovative high value fabric to quality conscious global fashion brands and was the first to develop its own branded range of fabric “Inno”, forecasting fashion trends to develop fashion forward fabric that captures clients’ interest. In an industry fraught with skilled labour shortages, Hayleys Fabric is committed to engaging with its employees to nurture a strong company culture and improve employee productivity.  Tweet This!

This case study is based on the 2018/19 Annual Report by Hayleys Fabric 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.

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Hayleys Fabric maintains dialogue with its team of 1,249 motivated employees through regular staff and team meetings, whilst its open-door policy has proved to be an effective mechanism for handling grievances. In order to promote employee engagement Hayleys Fabric took action to:

  • provide fair remuneration
  • carry out performance appraisals
  • conduct dialogue on health and safety
  • promote industrial relations

What are the material issues the company has identified?

In its 2018/19 Annual Report Hayleys Fabric identified a range of material issues, such as product responsibility, cost efficiency, effluents and waste, customer health and safety, flexible manufacturing, local community relations. Among these, promoting employee engagement stands out as a key material issue for Hayleys Fabric.

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:

“The reporting organization shall identify its stakeholders, and explain how it has responded to their reasonable expectations and interests.”

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 Hayleys Fabric engages with:

To identify and prioritise material topics Hayleys Fabric engaged with its stakeholders through the following channels: 

Stakeholder Group                Method of engagement
Brand Owners & Apparel Manufacturers

 

·      Multi layered relationship management

·      Visits

·      Trade exhibitions & fairs

·      Customer survey

·      Quality & performance review

Investors

 

·      Quarterly Financial Statements

·      Press releases

·      Annual Report

·      Annual General Meeting

·      CSE Announcements

Employees

 

 

·      Open-door policy

·      Formal performance appraisals

·      Regular meetings with unions

·      Communication of company performance

Suppliers ·      Relationship management

·      Feedback

·      Supplier assessment forms

·      Visits

Regulators ·      Regular visits to premises

·      Filing of returns & tax compliances

·      Compliance with CEA, BOI, SEC & CSE regulations

Community

 

·      Engagement with religious leaders

·      Workshops

·      Village festivals

What actions were taken by Hayleys Fabric to promote employee engagement?

In its 2018/19 Annual Report Hayleys Fabric reports that it took the following actions for promoting employee engagement:

  • Providing fair remuneration
  • Hayleys Fabric’s remuneration structure is above minimum wage requirements. This includes gratuity and leave allocations at rates above regulatory requirements, comprehensive medical insurance benefits for staff and family members and benevolent benefits.
  • Carrying out performance appraisals
  • Hayleys Fabric aligns corporate objectives with those of its employees through the performance management system, linking departmental KPIs (Key Performance Indicators) with individual KPIs. Performance appraisals are carried out for all employees on an annual basis, following a formal and transparent process. High performing employees are recognised with rewards linked to salary increments, annual bonuses and promotions, spurring productivity and growth. In 2018/19, 54 employees were promoted.
  • Conducting dialogue on health and safety
  • Hayleys Fabric is committed to providing a safe work place and is guided by a comprehensive Health and Safety policy. Continuous dialogue is maintained between employees and management on improving health and safety aspects with high levels of awareness and strict enforcement of minimum safety procedures. Joint worker management committees on Health and Safety represent an average of 2% workforce participation. In 2018/19, 59 injuries in total were recorded out of which, 40 injuries were categorised as first aid cases while the balance 19 injuries were identified as loss time injuries. Hayleys Fabric achieved a 9% reduction in employee accidents during 2018/19, through provision of technical training and safety awareness programmes carried out during the year.
  • Promoting industrial relations
  • Hayleys Fabric maintains cordial relations with three trade unions representing 37% of its employees. Open and effective dialogue is sustained through monthly meetings between the management and the unions. Hayleys Fabric recognises and respects its employees’ right to freedom of association and Collective Bargaining and, accordingly, a collective agreement was signed for the first time in 2017, with the main trade union, the Sri Lanka Nidahas Sevaka Sangamaya (SLNSS), effective 1st April 2017, for a period of three years. The agreement stipulated salary increments for the next three years, industrial dispute resolution, and other worker conditions. During 2018/19, there were no industrial disputes.

Which GRI Standards and corresponding Sustainable Development Goals (SDGs) have been addressed?

The GRI Standards addressed in this case are:

1) Disclosure 401-2 Benefits provided to full-time employees that are not provided to temporary or part-time employees

2) Disclosure 403-1 Workers representation in formal joint management–worker health and safety committees

3) Disclosure 403-2 Types of injury and rates of injury, occupational diseases, lost days, and absenteeism, and number of work-related fatalities

4) Disclosure 404-3 Percentage of employees receiving regular performance and career development reviews

 

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) 8: Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all
  • Business theme: Earnings, wages and benefits

Disclosure 403-1 Workers representation in formal joint management–worker health and safety committees corresponds to:

  • Sustainable Development Goal (SDG) 8: Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all
  • Business theme: Occupational health and safety

Disclosure 403-2 Types of injury and rates of injury, occupational diseases, lost days, and absenteeism, and number of work-related fatalities corresponds to:

Disclosure 404-3 Percentage of employees receiving regular performance and career development reviews corresponds to:

 

80% of the world’s 250 largest companies report in accordance with the GRI Standards

SustainCase was primarily created to demonstrate, through case studies, the importance of dealing with a company’s most important impacts in a structured way, with use of the GRI Standards. To show how today’s best-run companies are achieving economic, social and environmental success – and how you can too.

Research by well-recognised institutions is clearly proving that responsible companies can look to the future with optimism.



FBRH GRI Standards Certified, IEMA & CIM recognised Sustainability Course | Venue: London LSE

By registering for the next 2-day FBRH GRI Standards Certified, IEMA & CIM recognised course you will be taking the first step in gaining the many benefits of sustainability reporting.

Most importantly, you will gain the knowledge to use the GRI Standards, project manage your own first-class sustainability report and:

  • Identify your most important impacts on the Environment, Economy and Society
  • Begin taking solid, focused, all-round sustainability action ASAP

 

References:

1) This case study is based on published information by Hayleys Fabric, 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/

Note to Hayleys Fabric: With each case study we send out an email requesting a comment on this case study. If you have not received such an email please contact us.