Arconic’s Human Rights Policy comprises the following six principles.
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.
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 Arconic employees 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.
We endorse the United Nations Global Compact with respect to human rights. The compact’s 10 principles provide that businesses should support and respect the protection of internationally proclaimed human rights and ensure that they are not complicit in human rights abuses.
In our work environment, we respect human rights primarily by providing safe and healthy working conditions for our employees and ensuring non-discrimination in human resource practices. In our communities, we respect human rights by contributing our time to the well-being of the communities in which we operate and in striving to do no harm. We believe we influence the standards of conduct in these communities by living our Values.
Our ability to directly influence the standards of conduct of people we do not employ occurs where a supplier or contractor is working in, or delivering products or materials directly to, our facilities. In those cases, we mandate practices, such as compliance with our environmental, health, and safety standards, our human rights standards, and our Values. We also conduct audits of new suppliers to ensure they meet our safety standards and Values before they supply materials to our company.
In 2015, we continued implementing a third-party supplier due-diligence program with our supplier base that includes specific survey questions related to child and slave labor and human trafficking. More than 47% of our targeted suppliers were registered in the program at the end of the year, and we will continue to drive compliance throughout our supply base.
We also audit existing suppliers to ensure that they comply with our human rights requirements. These audits are focused in regions of the world where risks regarding human rights concerns are greatest. (See the Supply Chain section of our annual sustainability report.)
Within our operations, we strive to implement our Human Rights Policy while operating in many diverse locations. Arconic Foundation is dedicated to bettering the communities in which we have a presence around the world. That includes ensuring members of each community have access to basic needs, including food, health care, and education. Recent grants support programs to alleviate hunger and malnutrition; champion science, technology, engineering, and math education; and combat diseases and improve health.
For new major projects, we conduct environmental, social, and health impact studies in the earliest stages of development. Among other things, these studies investigate how the project could potentially affect the livelihoods and health of local communities. We then implement mitigation strategies that help ensure we are not complicit in human rights abuses.
Some mitigation strategies from past projects include the following:
- Creating a communication and grievance mechanism to ensure community and individual concerns are adequately addressed;
- Having a code of conduct for employees and contractors that outlines behavior that is prohibited during and outside of work;
- Providing cultural sensitivity training for our employees;
- Having a zero alcohol/drug use policy at work;
- Providing health education programs for the community and our workforce; and
- Investing in infrastructure to support the health of communities and to alleviate any potential burden on communities caused by our actions.
Through communication and audits, we ensure our human rights policy is integrated and non-compliance incidents are identified within our global operations.
We provide every employee with Arconic’s Code of Conduct, which is available in multiple languages. The code provides clear and easy-to-navigate information and guidance on business, legal, and compliance issues, including human rights, and provides links to our supplier sustainability organization. The code is available on our website, providing all stakeholders worldwide with our expectations and how to alert us to potential issues.
We have a well-developed internal reporting process. Our confidential Integrity Line is available to employees and external stakeholders in 19 languages for reporting alleged violations of laws and our policies. Along with the Integrity Line, our Integrity Help Chain is available to all employees who want to seek advice or raise a concern.
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.
Slavery and Human Trafficking:
California (USA) law requires companies like Arconic that conduct business in that state to disclose the efforts they have taken to eliminate slavery and human trafficking from their supply chains. As such, the following description of the efforts we have taken is intended to meet this requirement:
As stated in our Supplier Standards and demonstrated by our support of the United Nations Global Compact, Arconic strictly prohibits the use of slave labor and engagement in human trafficking and requires all suppliers to acknowledge and comply with our prohibition. Arconic requires that all of our suppliers conduct business in a manner that respects human rights.
In addition, we require every supplier to comply with all applicable laws, rules, regulations, orders, conventions, ordinances or standards. This requirement includes complying with all laws related to the prohibition of human trafficking and slave labor.
In 2015, we continued implementing a third-party supplier due-diligence program with our supplier base that includes specific survey questions related to child and slave labor and human trafficking. More than 47% of suppliers targeted through a risk-based approach were registered in the program at the end of the year, and we will continue to drive compliance throughout our supply base.
In highest risk regions, we also survey and audit a portion of our suppliers each year to assess their adherence to our overall supplier standards. We take appropriate action to increase our scrutiny of our supply partners operating in those areas. We do not require our direct suppliers to certify that materials incorporated into their products comply with slavery and human trafficking laws of the country or countries in which they do business.
If a supplier fails to comply with any of our requirements, including those regarding slavery and human trafficking, we will take appropriate action. This can include canceling all contracts and alerting local authorities of any suspected or confirmed illegal activity.
All Arconic employees with direct responsibility for supply chain management have been presented with Arconic’s Human Rights Policy and are highly knowledgeable about our Supplier Standards. Every Arconic employee is required to comply with all of the laws and regulations of the jurisdictions in which we operate, including those related to the prohibition of human trafficking and slave labor.