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| Human Rights Policy |
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Alcoa is a global enterprise that does business in many dynamic markets. We rely on our culture in the first instance—Alcoa employees living Alcoa’s values—to ensure that we conduct business in a way that respects human rights.
This is a universal approach and not restricted to developed, or developing, economies. Externally, in those instances where we do have direct influence, we extend the requirements and aspirations expressed within our values, principles, and policies to the business dealings of our suppliers and contractors.
Typically, the ability to directly influence occurs where the supplier or contractor is working within, or delivering products or materials directly to, our facilities. This influence can take the form of mandated practices, such as compliance with our environment, health, and safety standards and practices.
An example can be found in Iceland as a result of the construction of the newest smelter in the Alcoa system, the 340,000 metric-ton-per-year Fjardaal facility (see case study). In this highly sophisticated and advanced country, Þór Sigfússon, CEO of Sjóvá—one of the two largest insurance companies in Iceland—remarked in the national newspaper Fréttabladid on May 24, 2006 that “accidents in the construction business in Iceland increased by 140% in the last decade. At the same time, you hear of large workplaces where 2 million work hours have passed without any LTIs (lost time injuries). This applies to the construction site of the Fjarðaál smelter in Reyðarfjörður, which has become the largest school in Iceland on work safety. The main reason for this success…is that preventive measures have become a matter-of-course part of the work and work methods of all employees.”
Our influence regarding human rights can also be a mentored approach, as in the case of waste minimization initiatives aimed at reducing both supplier costs and the amount of disposable waste that accompanies supplier product on delivery at our facilities. Often, such initiatives create the opportunity for enduring public-private partnerships.
One such example can be found in the Greening the Supply Chain Program developed by the World Environment Center (WEC) in conjunction with our Mexican automotive operations. This program was subsequently refined in collaboration with our operations in Romania and taken further afield into China by WEC. (Read a commentary by Terry Yosie, CEO of the World Environment Center.)
We respect all national laws and international human rights norms. The values and principles that underpin these laws and norms inform and guide our own policy and behavior. While the primary responsibility for human rights lies with the various governments, we are committed to helping them avoid human rights violations.
Children and Young Workers
As a fundamental principle, we do not employ children or support the use of child labor. We do encourage the creation of educational, training or apprenticeship programs tied to formal education for young people.
Freedom of Engagement
We believe that people should work because they want or need to, not because they are forced to do so. We prohibit the use of prison labor, forcibly indentured labor, bonded labor, slavery, or servitude.
Equality of Opportunity
We recognize, respect, and embrace the cultural differences found in the worldwide marketplace. Our workplace is a meritocracy where our goal is to attract, develop, promote, and retain the best people from all cultures and segments of the population, based on ability. We have zero tolerance for discrimination or harassment of any kind.
Compensation
We ensure that compensation meets or exceeds the legal minimums and is competitive with industry standards. Our compensation philosophy is clearly communicated to employees and is in full compliance with all applicable laws.
Freedom of Association
We recognize and respect the freedom of individual Alcoans to join, or refrain from joining, legally authorized associations or organizations.
Relationships with Indigenous People
Within the framework of our Values, we respect the cultures, customs and values of the people in communities where we operate and take into account their needs, concerns, and aspirations.
Within our operations, we strive to maintain high standards in the human rights area while operating in many diverse locations. To achieve this, we apply human rights to everything we do, as the following examples illustrate:
- We have a robust program focused on inclusion, and we hold our senior management accountable for championing and endorsing these initiatives. In our new smelter in Iceland, for example, about one-third of our employees are women. In 2008, we added a diversity goal to our annual cash incentive compensation plan for increasing global female employment and U.S. minority employment in the professional and executive ranks;
- In Juruti, we are working with local traditional communities in acquiring basic living needs, such as clean water, health care, and urban and rural infrastructure, that are not only necessary for a higher quality of life but also for the development of small and micro businesses in those communities;
- In developing our growth projects, we focus great attention on the needs of communities and the engagement of stakeholders;
- We are providing jobs and opportunities for people with disabilities throughout the world (see case study); and
- Senior Alcoa leaders meet around four times a year with employees of the Piedras Negras and Acuna facilities in Mexico in the presence of Alcoa shareholders, primarily members of the Interfaith Center on Corporate Responsibility, to review employee issues and discuss current and future business conditions.
Compliance Measures
Our Human Rights Policy is available on our internal website in 21 languages and dialects. This site is the primary means within the company to find information about Alcoa and its policies.
One of our key challenges in the human rights area is ensuring this policy is integrated throughout our global operations. Ensuring compliance is difficult, but we have created numerous methods to identify noncompliance.
By publicly posting our policy on alcoa.com, stakeholders worldwide can—and do—alert us to potential issues regarding this policy. Our internal systems also support compliance with this policy. For example, we have a robust and mature Ethics & Compliance Line that permits employees and external stakeholders to report policy violations on a confidential basis and in their own language.
Annually, we conduct a Business Conduct and Conflict of Interest Survey that requires certification of compliance with all business conduct (including applicable laws and regulations), anti-corruption, and conflict of interest policies. In the jurisdictions in which we employ a majority of our employees, there are laws applicable to most of the areas in our policy, including child labor, freedom of engagement, equality of opportunity, and compensation.
We also have a rigorous internal audit system that includes, as part of a site visit, interviews with all key location managers on compliance with local laws. In 2008, we added a specific interview question regarding management compliance with our human rights policy.
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