NWR wishes to contribute to the quality of life in the communities where it operates. To that end, the Group has undertaken a range of projects and initiatives that are designed to improve the quality of life for people in its home regions.
This year the Company has for the first time highlighted its activities in the field of corporate social responsibility (CSR), and NWR plans to publish its first audited “CSR Report” on sustainable development for 2011.
Why social responsibility?
The Moravian-Silesian Region, where NWR operates, has for centuries been inherently linked with mining and heavy industry, such as metallurgy, steel production and mechanical engineering. Local residents are understandably sensitive to the position of big companies on environmental protection, employee welfare and the local quality of life. NWR is well aware of this and strives to exercise the utmost responsibility towards its environs and stakeholders, including the corporate environment, employee safety and working conditions, quality of life in local communities, environmental protection, relations with national and local government, the non-profit sector, business partners and customers.
Such an emphasis on the responsible behaviour of business towards local environments and communities is something which, although the norm in many European countries, is relatively new to the Czech Republic and other countries that were once run under communism and with centrally planned economies. “The communication that was in the past offered by companies not only in the mining sector, but in industry in general, was largely insufficient and was often neglected by firms altogether. Moreover, any support provided to civil society was rather chaotic in places. That is why we decided to change things by taking a proactive approach. Several years of hard work have passed and we can now look back at successful projects that have helped to improve the quality of life of particular people, often in difficult living situations. And that is the most important thing,” reflects Petra Mašínová, Head of NWR Corporate Communication.
Numerous awards won by OKD, NWR’s Czech coal mining subsidiary, are testament to the quality of the various projects. In both 2009 and 2010, OKD secured second spot in the prestigious TOP Filantrop poll, which rates the most generous corporate donors in the Czech Republic. Moreover, the Company received in 2009 a special prize for “Best Newcomer” in the area of corporate philanthropy.
Why a separate publication?
The number of activities and projects pursued by NWR in the field of social responsibility has grown over the years, which is why the Company decided to publish an overview of the topic. “The target is to publish a brochure that describes the activities we implemented in this area in 2010, to improve our work in a way that ensures we address our objectives and improves the coordination of projects with their beneficiaries,“ Mašínová said. The document can be downloaded here www.newworldresources.eu.
The publication presents socially responsible projects implemented by NWR, and the Company is now working hard to meet all the requirements necessary for the regular release of audited CSR Reports. The Company anticipates it will be able to release a CSR Report, compliant with the internationally acknowledged Global Reporting Initiative (GRI) guidelines for reporting the application of social responsibility and sustainable development principles, in the course of the next year.
NWR’s four pillars of social responsibility
NWR’s social responsibility concept is founded on four main pillars: Corporate Governance, People, Community and the Environment.
In the area of management, the company adheres to Corporate Governance principles compliant with international standards and recommended best practices, including relations with shareholders, business partners and customers, as well as internal processes within the company. The key themes governing actions of NWR are responsibility, prosperity, stability and progressiveness.
The Company approaches this area very seriously, as documented in the NWR Code of Business Conduct and Ethics. The Code governs the actions of representatives and employees of the Company as well as employees of its subsidiaries. It includes the specifications of mechanisms available to employees to directly share their concerns and complaints related to actions taken by a Company representative and/or other employees with the NWR Chairman, an authorised independent Board Member and an appointed ethics representative of the company.
The OKD Foundation – the leader in non-profit sector support
NWR mainly channels its assistance to local communities through the OKD Foundation. In the three years of its existence, the Foundation has supported nearly 800 projects among non-profit organisations and municipalities with more than CZK 123 million.
The key goals of the Foundation are to support and develop non-material values, the environment, education, sport and cultural pursuits and social and medical services. OKD has pledged to donate one per cent of its annual gross profit to the Foundation.
Through its four programmes (For Health, For Joy, For the Future, and For Europe) and three funds (Crisis Fund, Operational Fund and Development Fund), the Foundation supported in 2010 a total of 190 projects put forward by non-profit organisations and municipalities with more than CZK 24 million.
Approximately 80 per cent of the projects are in the Moravian-Silesian Region.
Appreciation of significant projects
Every year, the Foundation awards the most beneficial projects it has supported. Last year saw the beginning of a new Foundation award that, under a Media Achievement category, recognises an editorial team or an individual journalist for efforts in raising public awareness of nonprofit sector activities and publicly beneficial projects. The inaugural winner of the award was the weekly magazine Euro for its regular column Positive News, which brings readers information on corporate philanthropy.
Vision for 2011
The OKD Foundation plans to allocate CZK 60 million to support publicly beneficial activities of non‑profit organisations and municipalities in 2011, of which CZK 10 million is earmarked or supporting sheltered and socially therapeutic workshops. “These indispensable establishments, which support the integration of disadvantaged people into work, and therefore integration with normal life, are facing a financially tough year due to state budget cuts. We can, for example, assist the workshop operators by contributing towards the costs of machinery and other equipment in order to ensure the competitiveness of their products on the market in terms of both quality and price,” says Jiří Suchánek, OKD Foundation Director.
Assistance for mining orphans
OKD is a founding member of the Saint Barbora Civic Association. The Association aims to support children that have lost a parent to an occupational accident in mining. “In 2001, the Association registered 87 children in its care. The number of registered children has fallen in recent years, thanks in part to investments made by OKD in increasing occupational safety, which in turn have led to a reduction in the number of occupational accidents,” notes Vladislav Sobol, Chairman of the Association.
“The volume of resources available to the children increases every year. The amount of direct financial assistance provided or the costs of actions undertaken in 2009 amounted to CZK 2.5 million, while in 2010 it was CZK 2.9 million,” said Vladislav Sobol.
Sponsoring: sport, culture and education
Sponsorship and support for sport, culture, education and mining traditions play a significant role in the region.
In sport, OKD is the traditional general sponsor of top handball league club Baník OKD Karviná, which is the most successful Czech handball team in both the domestic league and in European competition. Since 2008, the Company has also been the general partner of second division football club MFK OKD Karviná, a club that does not conceal its ambitionto reach the top division.
In culture, OKD is the general partner of the international world music festival Colours of Ostrava, whose originality is noted not only across the region, but also throughout the Czech Republic. The company also provides financial support to the summer Shakespeare Festival.
People: the greatest corporate value
OKD, the Czech subsidiary of NWR, is the largest employer in the Moravian-Silesian Region. In 2010, the Company provided work for 13,693 of its own employees and 3,679 contractor employees. OKD’s activities affect the lives of virtually all residents of the region, which is why OKD takes seriously its responsibilities to both the regional economy and quality of life.
Proper compensation for quality work
Working in mines is physically and mentally demanding, and it is not suitable for everybody. OKD knows how to reward those who can cope with the demands. The average wage in the company has for years exceeded the regional as well as the national average. The 2010 average wage was CZK 32,878, while the wages of underground miners averaged CZK 32,583.
In line with collective agreements concluded between the management and the unions for the period 2010-2012, the company provides its employees with various benefits that comfortably exceed what the law requires. These benefits include contributions to pension and life insurance, meals, holidays, Christmas bonuses, transport to work, various cultural and sports activities, therapeutic stays and recreational holiday trips for employees’ children.
Safety first
Employee safety is of the utmost importance to NWR, and the Company is fully conscious that people are its most valuable asset. “Tonnes of coal mined or coke produced, or favourable financial results, can never under any circumstances outweigh the value of the health and lives of our employees,” says Leo Bayer, OKD Chief Operating Officer. The Company therefore never ceases to improve its safety standards and to reduce occupational hazards. Key safety indicators for 2010 confirm a positive trend and demonstrate that the measures implemented are pointing the Company in the right direction.
The number of injuries that occurred in OKD mines during 2010 dropped by more than a fifth to 271 from 346 in 2009. The frequency of injuries, as expressed by the Lost Time Injury Frequency Rate (LTIFR) indicator, decreased year-on-year in the same period from 11.29 to 8.61. The statistics include contractors’ employees of all nationalities.
In 2008, OKD announced its SAFETY 2010 programme, which encompassed investments in excess of half a billion Czech crowns in the purchase of the most up-to-date work and protective equipment. The programme delivered new personal working and technical equipment that have contributed to improved occupational safety and more comfortable working environments.
Educated people as a guarantee of future prospects
OKD mines have undergone modernisation as part of the Productivity Optimisation Programme 2010 (POP 2010). The mines have been equipped with state-of-theart technology for longwall production and gateroad development, supplied by major global manufacturers Sandvik, Bucyrus and Deilmann-Haniel. Operating he new equipment means increased demands where employee qualifications are concerned, which is why NWR places great emphasis on the education and qualifications of its people.
Renaissance of mining education
In 2008, OKD entered into an agreement with the secondary school of technology and services in Karviná, marking the renaissance of mining curricula in the Czech Republic. At the end of 2010, OKD supported more than 70 students in their preparation for future employment with the company in the positions of locksmith – mining operations, and electrician – mining operations. Students receive a monthly stipend of CZK 1,000 and have access to summer jobs and internships in OKD surface operations. But most importantly, upon leaving school the students have the certainty of employment with OKD.
At the beginning of 2011 the Company concluded a similar agreement with the secondary school in Havířov-Šumbark. Starting with the 2011/2012 school year, future mining locksmiths and electricians will follow the same curricula and enjoy the same support from OKD as is provided to the Karviná students.
The OKD Academy
As part of its OKD Academy programme, designed to assist employees’ children in their studies, in 2010 the company supported seven students in their master’s studies at the VŠB-Technical University of Ostrava. Two students each attended the Faculty of Mining and Geology, the Faculty of Mechanical Engineering and the Faculty of Electrical Engineering and Computer Science, while one student attended the Faculty of Civil Engineering. The Company provided the students with professional backing in developing their papers, dissertations and theses, as well as with internships. The students will also enjoy the safety of guaranteed employment with OKD upon the completion of their studies.
Reclamations return life to landscapes
Hard coal mining and heavy industry have significantly altered not only landscapes in Northern Moravia and Silesia, but also local demographics,social conditions and environmental quality. NWR is aware of its responsibilities ensuing from the impacts of mining activities on the environment and carries out various projects to mitigate these effects.
Between 1991 and 2010, the costs of remedying the impacts of mining activities in the Ostrava-Karviná district reached CZK 9.246 billion. In the period between 1993 and 2000, the state also contributed. In the framework of subsidies that addressed the thinning and reduction of mining activities in the Ostrava section of the mining district, it provided resources to the tune of CZK 2.773 billion. Since 2001, the remediation of mining impacts has been fully financed from the internal resources of OKD.
The most visible outcomes of the attention given to landscapes stem from decontamination and reclamation projects, which covered 857 hectares (2,118 acres) in 2010. As many as 55 larger-type reclamation projects were pursued, of which 13 were funded from public resources and 42 were financed by OKD. Total costs reached almost CZK 265 million, of which CZK 148 million was provided by OKD and CZK 117 million came from public budgets. Projects designed for the period up to 2015 include another 20 major reclamation initiatives.
(Marek Síbrt)