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July 15 th , 2010 | ASSOCHAM l New Delhi

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July 15 th , 2010 | ASSOCHAM l New Delhi. Bayer CropScience Child Care Program From Challenge to Opportunity. Suhas Joshi Strategic Projects & CSR Bayer CropScience. The Essence of the Story. Content. Bayer CropScience Our business and commitment.

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July 15th, 2010 | ASSOCHAM l New Delhi

Bayer CropScience Child Care Program From Challenge to Opportunity

Suhas Joshi

Strategic Projects & CSR

Bayer CropScience

content
The Essence of the StoryContent
  • Bayer CropScienceOur business and commitment
  • The Challenge of Child Labor A pressing issue still in many industries
  • The Bayer CropScience Child Care Program A unique model with comprehensive measures
bayer cropscience one of three strategic subgroups of bayer
Bayer CropScience: One of Three Strategic Subgroups of Bayer

Bayer BusinessServices

Bayer Technology Services

Currenta

Management Holding Company

Bayer AG

Board of Management

Bayer

HealthCare

Bayer

CropScience

Bayer

MaterialScience

Sales 2009:€ 16.0 bn

Sales 2009:€ 6.5 bn

Sales 2009:€ 7.5 bn

Business Area Companies

Service Companies

bayer cropscience our business groups
Bayer CropScience: Our Business Groups

Crop Protection

Environmental Science

BioScience

  • Insecticides
  • Fungicides
  • Herbicides
  • Seed treatment
  • Products forprofessional users(green industry and pest control)
  • Products for consumers (home and garden use)
  • Vegetable seed
  • Seed for agriculturalcrops

- cotton

- canola

- rice

bayer human rights position
Bayer Human Rights Position
  • Bayer is a founding member of the UN Global Compact
  • Zero Tolerance to Child Labor policy
  • Full Bayer Human Rights position published in Sustainable Development Report 2006
  • Mandatory as a management regulation worldwidethroughout the Group
  • Integral part of employee orientation trainings
  • Implementation supported by BayerCorporate Compliance Policy

…Child LaborWe follow a clear “zero tolerance to child labor” policy in our business operations worldwide. We do not tolerate child labor in our supply chain either, where we take action against known cases of violations. Our efforts to fight against child labor are consistent with the ILO’s* (International Labor Organization) core labor standards and the United Nations Global Compact principles. …

*Minimum Age Convention 1973; (No. 138); Worst Forms of Child Labor Convention, 1999, (No. 182) Source: Bayer Human Rights Position Bayer Sustainable Development Report 2006

content6
The Essence of the StoryContent
  • Bayer CropScienceOur business and commitment
  • The Challenge of Child Labor A pressing issue still in many industries
  • The Bayer CropScience Child Care Program A unique model with comprehensive measures
slide7

Hybrid cottonseed production requires hand pollination

What is hybrid cotton seed production ?

  • Female and male parent plants are grown in separate plots. Production requires emasculation and crossing during season
  • Emasculation is a process of removing the anthers of the female parent to avoid self pollination. Anthers from the male parent are used to cross pollinate the female parent
  • Hybridization
    • seasonal
    • manual work
    • labor intensive
child labor in cotton seed production in india
Child Labor in Cotton Seed Production in India

Challenges unlimited

  • In 2002, Bayer acquires Aventis CropScience, along comes a seed business in India
  • Bayer realizes the challenge of child labour in hybrid seed supply chain
  • A clear policy of the Bayer Group: ‘Zero Tolerance to Child Labour‘
  • However, no successful example available anywhere which can be replicated
  • Bayer initiates steps in 2003 to combat against child labor in seed supply chain. Continuous improvisation of the programme based on the field experiences
probable reasons for child labor employment in cotton seed production
Probable reasons for child labor employment in cotton seed production

Causes for Child Labor in Seed Production

  • Child labor is deeply pervades the agricultural sector
  • Poor school infrastructure
  • Labor intense crop (e.g., cotton, vegetables, manual pollination of hybrids required)
  • Better fit for manual labor
  • Perceived easier management of children

Further challenges

  • No closed factory buildings
  • Decentralized production spread over hundreds of farms at great distances
  • No replicable blue print or successful example available
content10
The Essence of the StoryContent
  • Bayer CropScienceOur business and commitment
  • The Challenge of Child Labor A pressing issue still in many industries
  • The Bayer CropScience Child Care Program A unique model with comprehensive measures
slide11

Bayer CropScience Child Care Program:Core Elements

SUCCESS

achieved through continual improvement

Promoting

school attendance

Creating

awareness & acceptance

Incentives, sanctions, monitoring

Technical & economic support

Clear company policy

creating awareness about child labor
Creating awareness about child labor

Awareness program since 2003:

  • Frequent meetings with company staff,farmers and local politicians in villages
  • Poster & flyers,media & radio campaigns
  • Labels on seed packaging
  • Community involvement through formation of ‘Village Committees‘ against child labor
slide13

Promoting

school attendance

Creating

awareness & acceptance

Incentives, sanctions, monitoring

Technical & economic support

Clear company policy

Bayer CropScience Child Care Program:Core Elements

SUCCESS

achieved through continual improvement

slide14

Steering Com

Steering Com

E & Y Audit

Internal Audit

Internal Audit

Internal Audit

Internal Audit

MM

MM

MM

MM

MM

MM

MM

MM

MM

MM

MM

MM

May

June

July

August

Sept

Oct

Nov

Dec

Jan

Feb

March

April

Reporting

Preparations

Assessment Visits V & VI

Assessment Visits III & IV

Assessment Visits I&II

Follow- up

Follow - up

Follow - up

Follow - up

Follow - up

Follow - Up

Follow - up

Follow - up

Follow - up

Bayer CropScience Child Care Program:Strong Management System driven approach

The Program Manual delineates theconceptual approach & organizational set-up

signing the field monitoring documents
Signing the field monitoring documents

… everyone to his or her ability

the purpose of assessment and follow up monitoring visits
The purpose of Assessment and Follow-up monitoring visits

Assessment visits for the review of the situation and progress

Follow-up visitsto persuade the farmers towards attitudinal change

system of tiered incentives and sanctions
System of tiered incentives and sanctions

If contract is fulfilled:

  • 5 % bonus in 2005/06
  • 7.5 % bonus or lump sumfrom 2006/07 onwards
  • Verbal Warning
  • Written Warning
  • Loss of bonus
  • 10 % cut in procurement price
  • Contract cancelled and seed notaccepted

If contract is infringed:

slide20

Promoting

school attendance

Creating

awareness & acceptance

Incentives, sanctions, monitoring

Technical & economic support

Clear company policy

Bayer CropScience Child Care Program:Core Elements

SUCCESS

achieved through continual improvement

the bayer cropscience child care program promoting school attendance
The Bayer CropScience Child Care Program – Promoting School Attendance

Convincing farmers not to use child labor is key to success

  • Bayer CropScience‘s Initiative covers everything from reintegration into the regular school system to vocational education measures:
  • Cooperation with Naandi Foundation in Andhra Pradesh
  • (Early Childhood Education Centers, Creative Learning Centers and Academic Learning Centers)
  • Basic vocational education in schools “Introduction to Basic Technology“ in Karnataka in cooperation with local NGOs
  • Bayer - Ramanaidu Vignana Jyothi School of Agriculture
  • a vocational education center nearby Hyderabad
  • „Learning for Life“ Initiative
content22
The Essence of the StoryContent
  • Bayer CropScienceOur business and commitment
  • The Challenge of Child Labor A pressing issue still in many industries
  • The Bayer CropScience Child Care Program A unique model with comprehensive measures
the essence of the story
The Essence of the Story

The Child Care Program is in a Win-Win Situation for all involved

No more systematic child labor in the Bayer CropScience supply chain for

cotton seed in India. Isolated cases of child labor are immediately addressed.

  • Supporting education
  • Children rehabilitated into formal school: 1,402
  • “Introduction to Basic Technology“-Program reached more than1000 students
  • 44 students graduated in two years from the Bayer- Ramanaidu Vignana Jyothi School of Agriculture
the essence of the story iii enhancing farmer s productivity
The Essence of the Story (III) –Enhancing Farmer’s Productivity

The Bayer CropScience Child Care Program is a Business Case

No more systematic child labor in the Bayer CropScience supply chain for

cotton seed in India. Isolated cases of child labor are immediately addressed.

  • Cotton seed productivity up by ca. 20%, income situation for farmers improved.
  • Seed Quality increased.
  • Farmer retention increased significantly.
  • Strong orientation in cottonseed supply chain towards a systems driven approach of doing business.

106

100*

119

132

100*

147

* Normalized

figures

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