“I am pleased to confirm that Van Dyck Carpets (Pty) Ltd reaffirms its support of the Ten Principles of the United Nations Global Compact in the areas of Human Rights, Labour, Environment and Anti-Corruption. It is our first annual Communication on Progress and we describe our actions and policies involved with the integration of the Global Compact and its principles into our business strategy, culture and daily operations. We are also committed to share this information with our stakeholders using our primary channels of communication. Of particular importance is this inclusion and training of our employees in the principles of the United Nations Global Compact and the continued fostering of an inclusive and collaborative environment”

Sincerely,

Dr Mehran Zarrebini
CEO
VAN Dyck Carpets (Pty) Ltd

It is our aim, that all our employees and our other stakeholders respect the Universal Declaration of Human Rights and Environmental Protection. Based on our commitment, the declaration will be communicated to our employees, staff, management and union representatives in December 2014. A pledge will be signed by the CEO and Trade Union representative declaring our commitment to the Universal Declaration of Human Rights and Environmental Protection.

Van Dyck Carpets has taken a number of measures to prevent human rights violations at our premises in Reunion which include:
• A suggestion box that is located close to where employees enter and leave the premises. This is a quiet area along a passage where employees have the freedom to voice any concerns and problems that they face in the work place. The suggestion box in controlled by the CEO who has access to it on a daily basis. In this manner, employees are assured that their rights will not be jeopardised and will be fully respected.
• The responsibility for the respect and support of the Human Rights Principles rest with the CEO and Human Resources Manager.
• The Human Resources Manager is responsible for conducting training sessions with all employees to raise the public awareness on human rights issues.
• Town hall meetings will be conducted with all departments in the organisation to create awareness of the Human Rights Declaration throughout the company.
• WI-HR-006 is our controlled procedure/policy document developed to address concerns and grievances of those who feel aggrieved.

• All alleged incidents will be subjected to our code of conduct and their merits will determine whether to take disciplinary interview route or disciplinary hearing.
• Communication progress issues will form part of HR monthly report to the BOD
• It is envisaged that in 2015, the Human Rights Principles will form part of Van Dyck’s bi-annual management reviews. Such meetings involve the discussion on progress of such matters relating to International Standard Accreditations, Human Resource related matters and Sales and Marketing. Such meetings are of strategic importance since they involve senior management from across the organisation.
• Management reviews involve the assessment of suppliers. Van Dyck Carpets will audit and evaluate all partners and suppliers against a set of defined principles, policies and guidelines. Contravention of Human Rights matters will be documented and meetings to address the matter with senior management of offending suppliers will take place. Continued non-compliance with result in the partner relationship being terminated.

Van Dyck Carpets upholds the freedom of association and the effective recognition of the right to collective bargaining. Van Dyck Carpets recognises collective bargaining as a universal right for its employees, compensation and responsibilities.
Each employee undergoes an induction with regard to their respective rights as stipulated in its code of conduct once employed in the company.
The code of conduct clearly stipulates the rights and responsibilities of employees in the company. The compensation and benefits of each employee is stipulated in their employment letter.
Van Dyck Carpets has a long and well-established relationship with the South African Clothing and Textile Workers Union (SACTWU) and labour related matters are discussed at regular meetings that take place between the two parties.

Van Dyck Carpets implements its labour policies, reduces risks and responds to labour violations by:
• Labour related policies have been signed by all employees and forms part of induction process for new employees.
• For control purposes the Safety, Health, Environment and Quality (SHEQ) department ensures that all documentation related to labour policies are ISO compliant. This consists of a number of documents which include:

• SHEQ Policy that reflects top management’s commitment to injury prevention, ill health and the health and safety of personnel.
• Recruitment policy that reflects Van Dyck’s commitment to rectify the imbalances of the past through affirmative action and training.
• Code of Conduct that advises employees of workplace rules and further assist management in ensuring that discipline is dealt with consistently and fairly.
• Grievance Procedure creates a safe and secure opportunity for employees who feel aggrieved at any given time.
• Dress Code Policy protects and encourages employees to dress appropriately and be presentable at all times.
• Intoxication Policy protects employees from abuse of liquor and drugs.
• Birth Policy ensures protection of employees before and after childbirth.
• HIV/AIDS Policy ensures that affected employees are treated with dignity and the company collectively works with the trade union, SACTWU to minimise the impact through the SACTWU AIDS project a joint HIV/AIDS initiative between SACTWU and all employers organised under SACMEA.
• Communication Policy balances privacy rights of employees with responsibilities that come with same rights of the employer.
Van Dyck Carpets works with the SACTWU, the textile affiliate under COSATU. For Collective Bargaining we are organised as the South African Carpet Manufacturer’s association (SACMEA) under National Textile Bargaining Council (NTBC).

The company monitors and evaluates performance by:
• Employment Equity Forum, which consists of top management, middle management, ordinary employees and union representatives. Collectively, they develop, evaluate and implement all policies and guidelines throughout the organisation.

Van Dyck Carpets has an integrated environmental policy in line with International Standards, ISO 14001 and ISO 14064 respectively. The environmental impact of our operations is of utmost importance to ensure the sustainability of our organisation and longevity of the areas in which we operate. In the coming year we aim to reduce our environmental impact by reducing our green house gas emissions further and successfully implementation a further International Standard, ISO 50001. This will ensure we have an integrated approach to energy management, environmental sustainability and the minimisation of our green house gas emissions.
From a manufacturing perspective, we critically look at ways to minimise our environmental impact through the use of recycled content in the manufacture of our products, incorporate ‘Design for Environment’ philosophy within our research and development departments and ensure our products are manufactured in an efficient and least resource intensive manner.

Van Dyck Carpets implements its environmental policies, reduces environmental risk and responds to environmental incidents by:
• The continuous training of employees with regard to ISO 14001 and ISO 14064. In 2015, key individuals will attend a carbon analyst-training course in order to provide internal audits of the company’s ISO 14064 system.
• With the first stage of ISO 50001 implementation expected to be completed early in 2015, an energy team has been formed in the company that encompasses key individuals from various energy intensive production departments, accounting, planning and trade union shop stewards. They will have the collective responsibility of implementing the system and continuously improving the system.
• Van Dyck Carpets reports on its resource utilisation monthly. This report is available and posted on all notice boards throughout the company. Targets are shown graphically and communicated to employees.
• Van Dyck Carpets utilises third party specialised assessors where necessary to ensure that it complies with all South African and International environmental laws.
• Van Dyck Carpets is installing an effluent treatment plant at its manufacturing facility to ensure the correct treatment of its effluent prior to disposal.
• Van Dyck Carpets utilises the services of Enviroserv to ensure that all production waste is separated, recycled or disposed of in a correct manner prior to leaving its premises.
• The CEO leads the responsibility for environmental protection within the company. The SHEQ department is responsible for the continuous accreditation and implementation of ISO 14001, ISO 14064 and ISO 50001. However it must be noted here that the success of these systems largely involves the participation of all employees in the company and hence active participation is encouraged.

The company monitors and evaluates environmental performance by:
• ISO 14001 environmental management system is accredited once a year by an external body.
• ISO 14064 green house gas management system shows the improvements made with regard to the reduction of green house gas emissions on a yearly basis. In our reporting system we accounting for direct, indirect and indirect voluntary emissions. We then use this metric as a function of the square metres of flooring produced in our operations and it is compared with previous years.

Van Dyck Carpets has a zero-tolerance approach to corruption, bribery and extortion. As part of our values, we will act with uncompromising honesty and integrity. In doing business anywhere in the world, Van Dyck Carpets nor any person associated with the company may offer, pay, promise, authorise or receive any bribe, kickback or other illicit payment. We continue to provide education for all our employees, staff and management about corruption and its consequences.

• Our Code of Conduct strongly discourages all forms of corruption. The Code of Conduct outlines disciplinary steps to be taken should anyone found involved in corruption, bribery and kickbacks.
• Our buying procedure is developed in such a way as to minimise the potential wrongdoing from the purchase of goods from suppliers.
• Van Dyck Carpets is a proud member of Corruption Watch SA.
• Anti-corruption will top our town hall meetings and training in 2015.

• Van Dyck Carpets has not been involved in any legal cases, rulings or other events related to corruption and bribery.
• Our financial accounts are subjected to statutory external audits yearly. These audits are used as one of the methods in identifying suspicious payments, receipt of monies, which could be related to bribery and corruption.
• No incidents of corruption have been reported in 2014.