World Economic Forum/L&TCCI

Talking with our competitors in the framework of the World Economic Forum, we have set up a Transportation industry charter (L&TCCI – Logistics & Transportation Corporate Citizen Initiative). In 2004 the subscribers to the underlying principles agreed on three programs of work for the years 2004-2006:

More information: www.weforum.org.

Three programmes of work

• Embedding the Principles within our individual companies – ‘walking the talk’
  The CEOs that have subscribed to the L&TCCI Principles have agreed to consult with their peers in other companies to increase the number of signatories. The CEOs agreed to a programme of work to embed the Principles through:
  • the continued sharing of best practice and the development of further tool sets based on those developed through 2003, to include stakeholder mapping, dialogue processes and ‘gap analysis’ and
  • working together to enhance strategic philanthropy in the areas of core business competence and (a) humanitarian assistance and (b) in respect of HIV/AIDS - two of the world’s current great challenges.   
• The L&TCCI Handbook – ‘The Logistics and Transportation Sector in Society’
  The CEOs supported the proposal to develop a resource book in the public domain to demonstrate the importance of the Logistics and Transportation Sector in society and its contributions to economic wealth and sustainable development.
• The KPI programme - ‘measuring and reporting on progress’
  It was agreed to begin a process of external stakeholder engagement. It was recommended that this process should be convened by the Global Reporting Initiative (GRI), as a recognized independent third party, in order to develop at least 3-5 specific KPIs that could be used by individual companies within the sector to report on their respective contributions in society in order to demonstrate the contributions of the sector overall.   

Principles of corporate citizenship

Principle 1: Governance - compliance through integrity

We work with integrity and fairness and we manage our risk ethically and transparently. We seek the same from those with whom we do business, both directly and indirectly. Above all, we believe in respecting and complying with statutory law and regulation: no employee may directly or indirectly solicit a bribe; we seek to reject personal gifts, political donations or other dealings that might reasonably be believed to influence commercial activity and the decision-making process, or that might bring the sector into disrepute. We believe in free enterprise and we will ensure the absence of conflicts of interest at all levels in the way we work.

Principle 2: Financial Responsibility - optimizing shareholder value over time

Guided by our Principles of Corporate Citizenship, we strive to achieve the highest standards of business practice. This enables us to contribute to long-term sustained value creation for the benefit of shareholders, employees, host countries, business partners and local communities. All business transactions must be reflected accurately in our accounts in accordance with established procedures and auditing standards. Accounting records will reflect and describe the nature of the underlying transactions.

Principle 3: Stakeholder Engagement - transparency and accountability

We recognize that we have a responsibility towards a diverse group of stakeholders that view the logistics and transportation industry from different perspectives. These stakeholders include the many communities in the different areas of our operations, as well as shareholders, customers, employees, governments and business partners. We are committed to engaging in dialogue and building partnerships with our key stakeholders. All communications with our stakeholders, both internal and external, including our suppliers, will be guided by the principle of transparency and the ‘‘right to know’’.

Principle 4: Employees - social justice in the workplace

We are committed to providing healthy, safe and decent working conditions for all of our employees and expect our suppliers to do the same. We actively encourage diversity and opportunity. We also respect the rights of employees to join lawful trade unions or to form workers’ associations. We respect the right to collective bargaining. As a minimum, we will fully comply with all relevant national laws and regulations with regard to working hours and conditions, rates of pay and terms of employment. We provide training to our employees on how to manage challenges arising from the implementation of these Principles.

Principle 5: Human Rights - global corporate citizenship

For those of us who work internationally, our tradition of support in times of crisis, as well as our active and increasing involvement in humanitarian projects applying our core competencies, presents us with special ethical responsibilities when we work in difficult circumstances. When we operate in countries where there is conflict or where there are allegations of human rights violations, we will ensure that our employees do not act in any way that could be considered complicit. This commitment is in line with the Norms established by the UN with respect to the human rights responsibilities of transnational corporations and the UN Global Compact. This means that when undertaking our work in those countries, we ensure that we do not employ child labour, in accordance with ILO Conventions 138 and 182, or bonded or forced labour, as set out in ILO Conventions 29 and 105.

Principle 6: Community Investment - responsive in times of need

We are committed to playing a positive role in society as a corporate citizen, optimizing the positive aspects of our operations wherever we work. Wherever possible, and where there is no conflict with a centrally managed purchasing strategy, we will recruit locally and will establish business relationships with local suppliers, respecting regional development initiatives. We believe in community investment activities and charitable work that supports capacity building and that strategically aligns with our core business purpose. We will therefore harness our logistics and transportation skills and networks to support those in need, particularly where humanitarian assistance is required.

Principle 7: Customers, Suppliers and Subcontractors - responsibility in our business relationships

By building long-term relationships with our customers, suppliers and subcontractors, we are committed to delivering high quality and best value services. We will meet the highest standards of security through our value chain and strive to ensure that trust is the basis of all our relationships in society. We are committed to meeting the expectations of our customers in respect of responsible business practice. Progressively, we will share with our business partners these Principles of Corporate Citizenship and we may withdraw from a business relationship if we consider that the standards that we uphold are not being met by a business partner.

Principle 8: Environment and Precautionary Approach - towards environmental sustainability

We will contribute to the development of sustainable transport systems and infrastructure and to providing solutions by applying our core logistics competence in society. We are committed to understanding, reducing and managing our environmental impacts. We will work actively to promote the responsible delivery of services. We are aware of the need to demonstrate continuous improvement and a precautionary approach in relation to those environmental aspects that are important to us and to our stakeholders. These aspects include, but are not restricted to: global warming, resource conservation, smog, noise, accident prevention, risk management and emergency preparedness. We will also seek innovative solutions to traffic congestion and utilize alternative transportation modes. Wherever relevant and practicable, we seek certification of our environmental performance.