In 2016, we visited a new key manufacturing site, residential quarters of its employees and training and recreational facilities. We discussed how its at-risk processes are now subject to additional physical and procedural safeguards. We also addressed employee benefits systems and grievance mechanisms with the labour union and spoke to a group of assembly line workers on their maternity leave about the perception of the company.
An independent assessment by the Fair Labor Association in 2012 showed the company has made good progress on employee relations. The company has also enhanced its disclosure, and in 2015, launched its vision and strategy website and published an improved sustainability report. The adviser to the chair/CEO credited our feedback with contributing to the improvements the company has made. An audit committee composed of three new independent directors was set up in 2016. In early 2017, a third-party research firm took the company off its controversial companies list. With regard to board composition, effectiveness and succession, we have so far only been given limited assurance.
These case studies are examples of companies we have either held or engaged with.
Source: Hermes Investment Management