Human Rights Due Diligence
GC has been implementing the Human Rights Due Diligence, which consists of defining scopes, identifying related human rights issues, analyzing the severity and likelihood of the impacts, development of mitigation measures, monitoring and review human rights issues, and conducting remediation actions. These steps are used to prioritize human rights issues within the organization, and establish the appropriate preventive, corrective and remediation actions for potential human rights impacts. GC also develop monitor plans for the corrective and preventive performance to ensure effectiveness and the operation of GC to have no human rights violations throughout the value chain.
GC’s due diligence process consists of systematic approach as follows
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Scoping: GC defines scope to conduct human rights due diligence process to ensure that all human rights issues cover all employees, business relations (joint ventures, mergers, and acquisitions), business partners (suppliers, contractors, and customers) and local communities. The scope of human rights issues includes labor rights, community rights, supply chain, security and safety, environment and customer rights. Moreover, the human rights issues also include forced labor, human trafficking, child labor, freedom of association, the right to collective bargaining, equal remuneration, discrimination and anti-harassment in both sexual and non-sexual forms.
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Identification of potential human rights risk issues: GC incessantly conduct a systematic periodic review on the risk mapping of potential human rights issues, including global trend in human rights, the country context in the petrochemical sector and effects of crisis situation to identify actual and potential human rights risks associated with the defined scope. GC also identifies Human Rights Risk covering the areas of new business relations (mergers, acquisitions, joint ventures).
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Human rights risk assessment: GC assesses human rights risk through the criteria including the levels of impacts and likelihood of human rights risks in the areas of operations and level of personnel, including rights holders and those in vulnerable groups (i.e. women, children, minorities, indigenous people, migrant workers, third-party contracted labor, person with disabilities, LGBTQI+, senior citizens, and pregnant women). GC defines level of risk impact into four levels which are extreme, high, medium and low level. The evaluated impacts which contain medium to extreme level of risk impacts will be considered the related existing control that company has in order to finally identify the corporate human right risks.
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Development of mitigation measures: GC develops risk mitigation measures to be suitable with level of risk impact for minimizing and controlling risk to low residual risk level or an acceptable level.
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Human rights issues monitoring and review: The performance according to human right mitigation measures is monitored and reviewed by responsible team and management to ensure that every human rights issues are rectified.
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Remediation actions: For company’s activities are identified that cause or contribute to human rights impacts, GC has remediation actions in form of financial and non-financial compensation to alleviate the affected people.
GC developed guidance on Mergers and Acquisitions (M&A) that include Human Rights Risk identification during due diligence process in pre-transaction, contract negotiation, and post-acquisition.