Response by Charoen Pokphand: Myanmar Foreign Investment Tracking Project

1. Does your company have investments or operations in Myanmar or is it seriously considering investing or operating there?

With approval from the Myanmar Investment Commission (MIC), CP Group (http://www.cpthailand.com/CPGROUP.aspx) established Myanmar C.P. Livestock Co., Ltd. (MCPL) in 1997.

If so, please provide information on the nature of these investments, and which geographic areas and communities they will affect.

Fully-integrated agriculture and food business in Feed, Farm, and Food with various protein types such as poultry and swine. The MCPL operates mainly in the Yangon and Mandalay Divisions, with smaller operations and branches in other States and Divisions.

2. Do you have policies and procedures in place to prevent your business activities or investment from contributing to human rights abuse and social conflict in Myanmar (including, for example, human rights due diligence measures)? Please specify whether these policies and procedures apply to your company in general, or specifically to your Myanmar investment. If you have human rights policies and procedures regarding investing or operating in Myanmar, are you willing to share them for posting on our website? If so, please send them as a Word or PDF file, or, if available, as a hyperlink.

MCPL strictly follows Myanmar’s laws and regulations. MCPL company rules and regulations are also strictly aligned with Myanmar Labor Law. Since the establishment of MCPL in 1997, the company has never been cited for any human rights or other violations.

3. Who in your leadership is responsible for ensuring compliance with the policies and procedures in no. 2?

The MCPL Company President is responsible for ensuring compliance with all policies and procedures.

4. If you do not yet have human rights policies and procedures in place, do you have plans to develop them? If so, what efforts are you currently engaged in or plan to engage in on this regard?

Policies and operating procedures concerning human rights are critical and necessary for any company’s sustainable growth. MCPL is now studying the Human Rights Policy and Implementation Plan of a sister company under the CP Group umbrella, Charoen Pokphand Foods PCL (CPF). CPF is the leading agro-industrial and food conglomerate in the Asia Pacific region

(http://www.cpfworldwide.com/en/home/). The goal in the foreseeable future is for MCPL to adopt and implement the same Human Rights Policy.

CPF Human Rights Policy

The CPF Human Rights Policy complies with the United Nations Universal Declaration of Human Rights (UDHR) and the International Labor Organization (ILO) Declaration on Fundamental Principles and Rights at Work. 

The CPF Human Rights Policy aims to promote and emphasize the respect of human rights throughout the company, as well as to engage all employees and stakeholders on fair and equal treatment without any discriminatory practices. Some guidelines regarding human rights stipulated in the policy is as follows:

- Strictly comply with the company’s rules and regulations, including related local and international laws.

- Regularly monitor and assess risks and impacts on human rights together with providing appropriate risk management guidelines or control measures, which all business units must apply to ensure that risk management is fully implemented in their areas of responsibility.

- Foster proactive two-way communication amongst employees to promote greater awareness, knowledge and understanding of their role in respecting human rights; and introducing grievance mechanisms for employees and stakeholders to raise concerns, make complaints, and identify adverse human rights impacts in case of human rights violations.

- Establish procedures to investigate allegations of human rights abuses and violations upon receiving grievance reports from employees and/or stakeholders, as well as report to top management to pursue effective solutions to mitigate any adverse human rights impacts.

- Communicate and disseminate policy and guiding principles to business partners to serve as guidelines for preventing involvement in human rights violations.

- Promote ethical business conduct amongst business partners to build a culture of reciprocal respect, and enhance capabilities and competiveness in a sustainable and socially responsible manner.

To ensure that the basis of human rights is brought into everyday practice, CPF is embedding this commitment into other corporate policies, e.g. Diversity and Inclusion Policy, Employment and Labor

Management Policy, and Sustainable Sourcing Policy & Supplier Guiding Principle. MCPL is also studying these policies with the goal of adopting the same policies in the future.

CPF Diversity and Inclusion Policy:

Guidelines to promote “Diversity and Inclusion” within the company include:

- Leaders must be open to different ideas from others.

- Employees are encouraged to express their ideas constructively and assertively.

- Employees are to be recognized appropriately.

- Diverse employees work together without discrimination and receive equal opportunities in harmonized and respectful work environment. 

CPF Employment and Labor Management Policy:

This policy ensures that all employees are treated fairly, based on respect for human rights by promoting employee engagement & involvement and upholding diversity in the work environment. 

The areas below are covered in the Employment and Labor Management policy:

- Child labor: The company shall adhere to the minimum age of employment as stipulated by existing laws and regulations. Youth labor shall not be allowed to work under hazardous conditions and are restricted from the work which is harmful to physical and mental development and interferes with their schooling.

- Forced labor: The company shall not engage in any form of forced and/or compulsory labor; and shall not retain employees’ identification documents where it does not against the laws and regulations.

- Anti-discrimination: The company shall not discriminate in its employment practices and shall treat each employee with dignity and respect, regardless of race, national origin, skin color, ancestry, religion, gender, age, physical disability, political thinking, or marital status.

- Compensation: The company shall provide wages and benefits in compliance with minimum legal requirements. There shall not be any deductions from employees’ wages unless the law states otherwise.

- Working hours: The company shall comply with applicable laws on regular working hours and overtime hours, and shall monitor overtime hours accordingly.

- Freedom of association and collective bargaining: The company shall respect employees’ right to join or form labor unions and to participate in any collective bargaining in accordance with legal procedures.

- Occupational health, safety, and environment: The company shall provide employees with a safe and hygienic working environment, including safety control procedures, accident & injury prevention, and other technical measures required by specific functions to minimize risks to employees and to maintain a productive workplace.

- Protection of pregnant employees: the company shall provide safe working conditions and appropriate working hours for pregnant employee to ensure that there is no harm for the employees and their fetus. Besides, the company will not dismiss, demote, or reduce benefits and wages of the employees due to their pregnancy.

- Disciplinary practices: the company shall not do any inappropriate verbal punishment and corporal punishment, including physical coercion or abuse of employees.

- Environment: The company shall comply with all environmental laws and regulations and adhere to environment-friendly practices – utilizing energy & water efficiently, managing waste effectively, contributing to climate change mitigation, and conserving biodiversity & ecosystems. 

CPF Sustainable Sourcing Policy and Supplier Guiding Principle:

This policy reiterates CPF’s commitment to conduct business with integrity and transparency, underscoring social and environmental responsibility throughout its entire business operations by extending the CPF’s standards to its business partners. The Policy lays out CPF’s expectations for its business partners to ensure compliance with laws and regulations, conformity with CPF standards, and shared responsibility in contributing to long-term sustainable development. 

In addition, CPF’s annual Sustainability Report can be downloaded here:

http://www.cpfworldwide.com/en/sustainability/report/

5. How does your company try to prevent or mitigate conflicts that affect its operations or the surrounding communities (including armed conflict, inter-communal conflict and violence, etc.)? Could you please list your policies, procedures or concrete activities in this regard, including community engagement and dialogue measures and revenue sharing agreements?

MCPL maintains good relationships with surrounding communities through informal forums which allow community members to provide feedback to MCPL. MCPL also has extensive CSR activities including educational programs and monetary support for social ceremonies and natural disaster mitigation. 

Concrete activities include:

1. School Layer Farm Project: MCPL provides technical know-how and initial investment for students to build and operate chicken egg farms, which allow students to have nutritious eggs for lunch. Surplus eggs are also sold for extra income for the school.

2. Sponsoring Sports Tournaments (please provide examples or further explanation) for the examples Myanmar Football Federation (MFF), Myanmar Tennis Federation (MTF).

3. Technical Livestock Training for Government Staff and Livestock Farmers (please provide examples or further explanation)

The Technical Livestock Training has been established since 2004 with currently completed 62 batches of 549 trainees from the government and 684 trainees from livestock farmers.

6. Who should communities or civil society groups contact if they have questions or concerns about your investment or operations in Myanmar?

Mr. Wirat Wongpornpakdee, Company President of MCPL

Mr. Phongtron Kavanna, Accounting & Finance Head of MCPL

7. We further invite you to respond to questions specific to your industry. Does your company have policies and procedures in place to address each of the following areas? If so, please provide details:

a. Freedom of association and collective bargaining

b. Living wages

c. Health and safety

d. Child labor

e. Forced labor

f. Anti-discrimination (whether based on race, gender, religion, nationality, etc.)

g. Environment

h. Land rights

i. Relocation

MCPL’s current procedures and practices comply with all existing Myanmar laws and regulations.

Attachment 1: Charoen Pokphand Human Rights Policy (English)

Attachment 2: Charoen Pokphand Employment and Labor Management Policy (English)

Attachment 3: Charoen Pokphand Diversity & Inclusion Policy (English)

Attachment 4: Charoen Pokphand Human Rights Policy (Thai)

Attachment 5: Charoen Pokphand Employment and Labor Management Policy (Thai)

Attachment 6: Charoen Pokphand Diversity & Inclusion Policy (Thai)

Download the full document here

Related companies: CP (Charoen Pokphand)