European Minerals Foundation

"The MICHELIN Performance and Responsibility Approach provides us with an extraordinary opportunity to formalize our contribution to society via our services, in order to go further in implementing our values."

The Michelin Group has always aimed to put its values and principles into practice. Today, society's aspirations are more and more demanding on industrial groups: they are called upon to accept their responsibilities in reducing effects on the environment caused by human activity and to equitably distribute improvements to living conditions on the planet.

To meet these expectations, in April 2002, the Michelin Group, at the initiative of its Managing Partners, launched an approach known as Michelin Performance and Responsibility. Its purpose: to establish a more formal framework for the exercise of the Group's responsibilities to each category of its audience. The approach aims to measure and reduce the gap between the Group's values and their implementation. To a large extent, it takes existing practices derived from the Michelin culture and translates them into management principles. Driven by a constant will to innovate, it helps us provide a long-term response to issues pertaining to mobility and to the sustainability of the Company.

Since the Michelin Performance and Responsibility approach was launched, we have focused our efforts on assessing our practices and on formalizing our commitments. Internal diagnostics were carried out in early 2002; the operational units were interviewed to assess their perception of the issues, the needs and the priorities of this approach. This enabled us to select nine areas for which a specific plan is deployed, in addition to the Group's economic objectives.

Performance of our products and services
Environmental impact of tire use
Recycling of end-of-life tires
Diversity within our teams
Our relationships with the community
Safety, ergonomics and working conditions on our sites
Environmental management of our sites
Industrial risk management
Our contribution to sustainable mobility

The Michelin Performance and Responsibility approach is steered directly by the Managing Partners and the Group Executive Council (CEG). Since the beginning of 2002, each monthly CEG meeting includes a review of the state of progress made by the approach. A manager has been appointed and objectives defined for each of the areas mentioned above, then integrated into the 2002-2005 multi-year action plan.

On an operational level, the approach is under the responsibility of a full-time manager, appointed for this purpose in April 2002. His role: to coordinate the Group's actions in the nine identified areas and in terms of progress to be made on a daily basis. He steers training and drives communication on the approach, particularly as it relates to the Michelin Performance and Responsibility Charter.

MICHELIN PERFORMANCE AND RESPONSIBILITY CHARTER:
THE GUIDING PRINCIPLES OF IMPLEMENTATION OF THE GROUP'S VALUES

Drafted in 2002 to explain our values, in order to help us better implement them, the Charter specifies our responsibilities toward our different stakeholders: customers, shareholders, employees, industrial and commercial partners, public authorities, media and local communities. During this initial phase, it has been chiefly drawn up by a central project team; the comments and expectations of our stakeholders will be gathered in 2003 and 2004 to complete subsequent versions of this document.

A series of information and discussion sessions is being prepared for several thousand managers. The aim will be to provide an in-depth explanation of the meaning of the approach and to describe the tools used to implement it. All the Group's entities will use the Charter to define operational objectives and working methods, both for the nine areas specified above and for progress to be made on a daily basis.

This reflection upon our responsibilities has enabled us to establish a series of performance indicators to track the gap between our values and our practices over the long term. Within the framework of the deployment of the Michelin Performance and Responsibility Charter, this approach will be developed by adapting our data collection and processing systems.

A PUBLIC MICHELIN PERFORMANCE AND RESPONSIBILITY REPORT:
THE REVIEW OF OUR VALUES IN PRACTICE

The above document is the first of its kind for Michelin: it aims to assess how we put our values into practice. It has a dual vocation: internally, to guide our progress, and externally, to inform our partners, tell them who we are and how we exercise our responsibilities.

Anglo American plc and its subsidiaries took an important initiative to develop a set of Good Citizenship Business Principles. These set out the values and standards, which guide it in the conduct of its businesses. This superseded the Codes of Ethics, observed over many years by its predecessor companies.

This Statement should be read in conjunction with fuller policy statements such as Anglo American's Safety, Health and Environmental Policy and such other codes and guidance notes which may be issued from time to time.




	introduction \| codes of conduct \| social audits \| socially responsible investment \| health & safety \| managing environmental impacts \| community involvement \| environmental auditing \| voluntary agreements \| reporting Codes of Conduct CASE STUDY 1 "The MICHELIN Performance and Responsibility Approach provides us with an extraordinary opportunity to formalize our contribution to society via our services, in order to go further in implementing our values." Edouard Michelin, Performance and Responsibility Report, December 2002 The Michelin Group has always aimed to put its values and principles into practice. Today, society's aspirations are more and more demanding on industrial groups: they are called upon to accept their responsibilities in reducing effects on the environment caused by human activity and to equitably distribute improvements to living conditions on the planet. To meet these expectations, in April 2002, the Michelin Group, at the initiative of its Managing Partners, launched an approach known as Michelin Performance and Responsibility. Its purpose: to establish a more formal framework for the exercise of the Group's responsibilities to each category of its audience. The approach aims to measure and reduce the gap between the Group's values and their implementation. To a large extent, it takes existing practices derived from the Michelin culture and translates them into management principles. Driven by a constant will to innovate, it helps us provide a long-term response to issues pertaining to mobility and to the sustainability of the Company. DIAGNOSTICS AND FORMALIZATION Since the Michelin Performance and Responsibility approach was launched, we have focused our efforts on assessing our practices and on formalizing our commitments. Internal diagnostics were carried out in early 2002; the operational units were interviewed to assess their perception of the issues, the needs and the priorities of this approach. This enabled us to select nine areas for which a specific plan is deployed, in addition to the Group's economic objectives. Nine areas of specific action: Performance of our products and services Environmental impact of tire use Recycling of end-of-life tires Diversity within our teams Our relationships with the community Safety, ergonomics and working conditions on our sites Environmental management of our sites Industrial risk management Our contribution to sustainable mobility DEPLOYING THE APPROACH The Michelin Performance and Responsibility approach is steered directly by the Managing Partners and the Group Executive Council (CEG). Since the beginning of 2002, each monthly CEG meeting includes a review of the state of progress made by the approach. A manager has been appointed and objectives defined for each of the areas mentioned above, then integrated into the 2002-2005 multi-year action plan. On an operational level, the approach is under the responsibility of a full-time manager, appointed for this purpose in April 2002. His role: to coordinate the Group's actions in the nine identified areas and in terms of progress to be made on a daily basis. He steers training and drives communication on the approach, particularly as it relates to the Michelin Performance and Responsibility Charter. MICHELIN PERFORMANCE AND RESPONSIBILITY CHARTER: THE GUIDING PRINCIPLES OF IMPLEMENTATION OF THE GROUP'S VALUES Drafted in 2002 to explain our values, in order to help us better implement them, the Charter specifies our responsibilities toward our different stakeholders: customers, shareholders, employees, industrial and commercial partners, public authorities, media and local communities. During this initial phase, it has been chiefly drawn up by a central project team; the comments and expectations of our stakeholders will be gathered in 2003 and 2004 to complete subsequent versions of this document. A series of information and discussion sessions is being prepared for several thousand managers. The aim will be to provide an in-depth explanation of the meaning of the approach and to describe the tools used to implement it. All the Group's entities will use the Charter to define operational objectives and working methods, both for the nine areas specified above and for progress to be made on a daily basis. MEASURING THE GAP BETWEEN OUR VALUES AND OUR PRACTICES This reflection upon our responsibilities has enabled us to establish a series of performance indicators to track the gap between our values and our practices over the long term. Within the framework of the deployment of the Michelin Performance and Responsibility Charter, this approach will be developed by adapting our data collection and processing systems. A PUBLIC MICHELIN PERFORMANCE AND RESPONSIBILITY REPORT: THE REVIEW OF OUR VALUES IN PRACTICE The above document is the first of its kind for Michelin: it aims to assess how we put our values into practice. It has a dual vocation: internally, to guide our progress, and externally, to inform our partners, tell them who we are and how we exercise our responsibilities. CASE STUDY 2 Anglo American plc and its subsidiaries took an important initiative to develop a set of Good Citizenship Business Principles. These set out the values and standards, which guide it in the conduct of its businesses. This superseded the Codes of Ethics, observed over many years by its predecessor companies. The Principles of Conduct state as follows: BUSINESS INTEGRITY AND ETHICS We support free enterprise as the system best able to contribute to the economic welfare of society as well as to promote individual liberty. Without profits and a strong financial foundation it would not be possible to fulfill our responsibilities to shareholders, employees, society and to those with whom we do business. However, our investment criteria are not solely economic. They also take into account social, environmental and political considerations. We will comply with all laws and regulations applicable to our businesses and to our relationships with our stakeholders. We are implacably opposed to corruption. We will not offer, pay or accept bribes or condone anti-competitive practices in our dealings in the marketplace and will not tolerate any such activity by our employees. We prohibit employees from trading securities illegally when in possession of unpublished price sensitive information. We require our employees to perform their duties conscientiously, honestly and with due regard for the avoidance of conflicts between any personal financial or commercial interests and their responsibilities to their employer. We will maintain high standards of planning and control to: identify and monitor material risks; safeguard our assets; and to detect and prevent fraud. We will promote the application of our principles by those with whom we do business. Their willingness to accept these principles will be an important factor in our decisions to enter into and remain in, such relationships. We encourage employees to take personal responsibility for ensuring that our conduct complies with our principles. No one will suffer for raising with management, violations of this policy or any legal or ethical concern. CORPORATE CITIZENSHIP We respect human dignity and the rights of individuals in the communities associated with our operations. We seek to make a contribution to the economic, social and educational well-being of these communities, including through local business development and providing opportunities for workers from disadvantaged backgrounds. We recognize the sensitivities involved in addressing issues relating to the cultural heritage of indigenous communities. We will seek to ensure that such matters are handled in a spirit of respect, trust and dialogue. We believe we have the right and responsibility to make our positions known to governments on any matters affecting our employees, shareholders, customers or the communities associated with our operations. Whilst the primary responsibility for the protection of human rights lies with governments and international organizations, where it is within our power to do so, we will seek to promote the observance of human rights in the countries where we operate. We support the principles set forth in the Universal Declaration of Human Rights. EMPLOYMENT AND LABOUR RIGHTS We are committed to the adoption of fair labor practices at our workplaces and our conditions of service will comply with applicable laws and industry standards. We will promote workplace equality and will seek to eliminate all forms of unfair discrimination. We will not tolerate inhumane treatment of employees including any form of forced labor, physical punishment, or other abuse. We prohibit the use of child labor. We recognize the right of our employees to freedom of association. We will operate fair and appropriate means for the determination of terms and conditions of employment. We will provide appropriate procedures for the protection of workplace rights and our employees' interests. We will provide employees with opportunities to enhance their skills and capabilities, enabling them to develop fulfilling careers and to maximize their contribution to our business. SAFETY, HEALTH AND ENVIRONMENTAL STEWARDSHIP We have adopted a comprehensive Safety, Health and Environment Policy and will report regularly on our SHE performance. We will continue to review and develop this policy. We strive to prevent fatalities, work-related injuries and health impairment of employees and contractors. We recognize the need for environmental stewardship to minimize consumption of natural resources and waste generation and to minimize the impact of our operations on the environment. Senior executives and line management are accountable for safety, health and environmental issues and for the allocation of adequate financial and human resources within their operations to address these matters. We will work to keep health, safety and environmental matters at the forefront of workplace concerns and will report on progress against our policies and objectives. We recognize the human tragedy caused by the HIV/AIDS epidemic, particularly in sub-Saharan Africa. We have a clear policy for addressing HIV/AIDS in the workplace and are committed to a comprehensive prevention strategy, linked to programs of care for those with HIV/AIDS. We will strive to eliminate any stigma or unfair discrimination on the basis of real or perceived HIV status. We are committed to the principle of sustainable development, by which we mean striking an optimal balance between economic, environmental and social development. We will strive to innovate and adopt best practice, wherever we operate, working in consultation with stakeholders. This Statement should be read in conjunction with fuller policy statements such as Anglo American's Safety, Health and Environmental Policy and such other codes and guidance notes which may be issued from time to time. introduction \| codes of conduct \| social audits \| socially responsible investment \| health & safety \| managing environmental impacts \| community involvement \| environmental auditing \| voluntary agreements \| reporting