15 December 2011

To our stakeholders:

I am pleased to confirm that Hathay Bunano p.s reaffirms its support of the Ten Principles of the United Nations Global Compact in the areas of Human Rights, Labour, Environment and Anti-Corruption.

In this annual Communication on Progress, we describe our actions to continually improve the integration of the Global Compact and its principles into our business strategy, culture and daily operations. We also commit to share this information with our stakeholders using our primary channels of communication.

Sincerely yours,

Samantha Morshed
CEO

• To establish a rural training and production center
• Free training facilities on knitting and crochet skill
• To increase income of target women through training on export oriented selected products and development.
• To run the proposed center in a sustainable way

Brief description of our process:
Hathay Bunano p.s has developed the working model of rural centres. These enable the effective and efficient training of women within their local communities. They then enable production work to be carried out in a supervised environment with adherence to compliance and legal obligations regarding health and safety and with effective quality control procedures. This enables the production of export quality goods in the rural setting. Women are employed largely in rural production centres that offer flexible, high quality employment close to their homes and villages. Women are provided with 4-6 weeks of training in one of three skills: crochet, knitting or embroidery (carcupi). Training is provided free and once women start working in production, all materials and equipment (i.e. yarn) are provided by HB at no cost to the producer. Women are paid on piece rate based on a rate of Tk 10/ hour.1 Income is matched to requirements – women work as much or as little as they desire. In most cases, income is supplemental, not subsistence, in household income. Women have opportunities for advancement and income growth through (i) producing piece rate products quicker, a function of skill development, and at a good quality level and (ii) promotion to a salaried trainer or supervisor. All supervisors are chosen from the local group of trainees.

We have trained almost 500 women around Bangladesh this year (2011) in various rural areas. Now we are planning to expand our training program in some new places. In 2012 we will enlist approximately 1000 women in our training schedule.

20% women somehow left the center for their own reason. Now approximately80% trained skilled women is working with us who have joined with us this year.

• Fair wages for the artisans
• No time limitation for the work of the artisans.
• Artisans must be above 18.
• All of the artisans of Hathay Bunano p.s. have done their work from their heart. Because it is an one kind of art.

Brief description of our process:
Hahthay Bunano p.s. is a Fair Trade Organization. We are always very careful about fair wages. There are no opportunities to arise any question from the center to increase their wages.
In addition there is no time restriction for the artisans. They can take all raw materials to their house and do their work as a freedom worker.
We are very aware of our artisan’s age limitation. When we enlist any women for our training we take a copy of their national ID card for the confirmation of age. We don’t consider any women who are under 18.
Though knitting & crochet skill is an art so artisans should be very careful of their work. Sometimes they need to be creative in some position.

Sometimes our Management team visit the centers to inquiry everything. We did not see any discrimination in any sector. We have a supervisor in each center. When we provide training to our women than we describe everything about our wages rate and payment procedure. In addition we store a copy of all artisan’s Bio Data in our head office to verify her admission requirement.

Now all of our skilled artisans are able to earn 2000 BDT - 3500 BDT per month as a part time work. So rural disadvantage women don’t need to rush in the city to change their fate. They can earn their expected money staying with their family. In addition they can fulfill their basic demand by working with Hathay Bunano p.s. So Hathay Bunano p.s have some moral and social implication. We are creating women empowerment in rural areas, reduction to migrate urban areas and early marriage and controlling birth rate.

• All products made by hand.
• No machine is used in our production line.
• No toxic chemical is used for washing.

Brief description of our process:
All of our products are made by hand. We just use hand needle and 100% organic cotton yarn for making Hathay Bunano products. There is no machine used in our production line. Our production centers are very safety, neat and clean. Our artisans wash their hand by hand wash or soap before making our products. In addition when all products come from the rural centers, than it goes to washing plant. Our washing plant also use very simple non-toxic chemical for washing the products. There is no chance to pollute environment. We source our yarns from oeko-tex certified mill with full ETP and regular testing and monitoring for this certification.

One of our dream is to make a Green Bangladesh. Hathay Bunano product and activities become more popular day by day because it does not pollute environment and also in favour of rural women.

We only use machine for washing our products. So now we are planning to make a washing plant where less water will be used and which will 100% safe for the environment.

The mill we source our yarn from is tested 4 times each year along with submitting monthly sample results to ensure that no harmful chemicals are put back into the environment, to maintain the oeko-tex standard and to check there are no problems with the ETP.

• MIS System (an application software) is implementing in our organization.
• All of our payment procedure is transparent to all.

Brief description of our process:
We have a MIS system (an application software developed by ATI Ltd.) is implanting in our organization. We are maintaining all raw material distribution, packing note, making payment sheet, shipment and stock entry by this software. So there is no chance for corruption in our system.

It is now very easiest way than earlier to make distribution and payment sheet for the center by the MIS system. There is no way to make any manual sheet by our employee. Now we are planning to develop our system day by day. However our administration is very strict against all forms of corruption, including extortion and bribery.

All of our employee are very familiar with our MIS system. So our administration is free from all forms of corruption, including extortion and bribery.