ISO 26000: Labor Practices

Respectingemployee
relations

The JT Group recognizes
that good labor relations
foster collaboration, and puts
employees at the center of its
efforts to succeed and grow.

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Report14 | JT- CSR- CSR
Report20132013| Labor Practices

Focusing on health, safety and employee satisfaction
The health, safety and well-being of its workforce are ofparamount importance to the JT Group. It has established policies
and standards beyond its statutory requirements, which safeguard
the interests of all employees.
Recognizing the importance of dialogue with staff helps to create
an understanding of how the JT Group can be a better employer.
To this end, employee surveys are conducted and the result is a
two-way communication between the Group and its employees,
who cooperate to create rewarding business environments.

The JT Group believes that its
core asset is the talent it employs.
Respecting and acting on the needsof employees is therefore essential.

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Listening to employees helps create a better workplace
Employing a culturally
diverse workforce
The JT Group employs individuals
encompassing more than 100 nationalities.
It believes that employing a workforce ofsuch cultural diversity creates a strong
source of competitiveness and is a driving
force for sustainable growth. Great efforts
are made to harness this power of diversity,
motivating and encouraging employees toexpress their individual perspectives.
As an equal opportunities employer personal
growth is nurtured, regardless of anindividual’s race, nationality, creed, religion,
gender or physical ability. The principle ofcombating discrimination in the workplace iscentral to the Codes of Conduct and humanresources policies.
Developing the skills of its employees helps
advance the objectives and growth of theJT Group. It therefore supports employees’
efforts to advance by offering a wide rangeof personal training programs, which helps
them determine and capitalize upon theirbest abilities.

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Between 2008 and 2009, the JT Group piloted
an Employee Engagement Survey (EES)in 12 countries across its CIS+ region. The
aim of the survey was to gather employees’suggestions on how to improve businesspractices and discover what issues they mayhave.

high performance companies. Data from theEES is now used as a catalyst for hundreds ofinitiatives, mostly at a local level. It illustrates
the fact that, not only is the JT Group
committed to listening to and understanding
its employees, but it also acts upon thefeedback received.

The scope of the EES subsequently extended
in 2010, and in 2012 the first Group-wide
survey took place. The survey covered 72
countries, with 46,729 employees surveyed
in 38 languages. The response rate - 93% - isconsidered by Towers Watson, consultants tothe EES, to be above the participation rate ofAction plans and initiatives that result fromthe EES take many different forms, fromcreating new platforms that enable thebusiness to work smarter to programs thatreward employees` exceptional efforts.

“The EES is a global initiativethat results in local actions.
It makes sense to interpretand act on the information
we receive at the country level
because of local influences anddiffering cultures.”
Heinz von Allmen
JTI Vice President Human ResourcesDemonstrating ‘continuous improvement’with Employee Engagement Survey initiatives
Online collaboration: fromthe survey to the server‘Engage’In 2012, JTI launched a global internal networking
platform called ‘Engage’, a tool with functionality
similar to popular social media networks. The
platform evolved from an initial pilot in Ukraine,where employees asked for an online solution thatwould help them share information, generate ideas
and collaborate with colleagues around the globe.
This led to the development of ‘MyJTI’ in Ukraine,
a collaborative online tool allowing employees todialogue across departments, improve decisionmaking and share best practices.
The decision was made in 2012 to expand theconcept to create an internal global networking
platform, and Engage was born. Jonathan Duce,
Corporate Communications Director, tasked
with overseeing the platform’s delivery, explains
the thinking: “One of JTI’s core strengths is its
international diversity. This online employee
platform will help us to leverage that diversity andnurture a culture of openness and innovation.”

Striving for excellence
In the 2010 EES, JTI’s MENEAT region identified an opportunity to reward
employees for their performance. Accordingly, the ‘Striving for ExcellenceAwards Scheme’ was created to recognize and celebrate high-performing
employees across the region. More specifically, the scheme looked to reward
individuals whose contribution to the business goes above and beyond thenormal expectations of their position.
To be eligible for the award, an employee must be nominated by a colleague
and recommended by local management. The program, piloted in 2011, wasextended in 2012 to cover all employees, including those working in factories
across the region. In December 2012, 16 successful candidates were rewarded
with a two-day trip to London. This included a sightseeing tour and dinner withthe regional management team.

Chris Moat, MENEAT & WWDF Regional Human Resources Vice President,
believes that the ‘Striving for Excellence Awards Scheme’ works on manylevels: “As a region, MENEAT is geographically very diverse, and the ‘Striving
for Excellence’ program provides a platform for employees to be recognized not
only at a country level, but also by the region. It really incentivizes employeesto know that their efforts do not go unnoticed, and that exceptional work will
be met with exceptional rewards. The awards are now very much a part of
MENEAT’s efforts to recognize the contribution of its employees.”“It was an honor to be commended for mywork by the Company. I enjoyed visiting
London, and one of the highlights wasvisiting Madame Tussauds waxworks
museum where I saw the wax statueof Atatürk, the founder of the Turkish
Republic.”
Irfan Cinar
Electricity and Energy Associate, JTI Turkey
Striving for Excellence Award winnerLabor Practices | JT Group - CSR Report 2013 | 17Bringing ideas to life
A number of countries have their own programs for promoting
innovation throughout the JT Group. While specific details
differ, the essential spirit of such initiatives is the same acrossall geographies: individuals put forward ideas that contribute to
the performance of the Group, with the goal of generating betterbusiness results.
One such initiative that evolved from the EES is the ‘Bringing
Ideas to Life’ regional awards program in the CIS+ region.
Employees expressed a desire to contribute more to the successof the Company, requesting a platform to present new ideas.
In 2012, the ‘Bringing Ideas to Life’ awards generated as manyas 1,482 ideas, of which 288 were shortlisted. These were furtherevaluated and the best ideas were identified, which led to 11
people being invited to JTI’s headquarters in Geneva in January
2013, to be honored for their efforts. Award winner Evgeniya
Yaroslavtseva, a recruitment specialist in Moscow, proposed thatEvgeniya Yaroslavtseva receiving a “Bringing Ideas to Life” award from Martin
Braddock, JTI Regional President CIS+.

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new employees receive an introductory letter on their first day,making them feel welcome and informed. Other winning ideas
included the creation of a single email address for all humanresources enquiries, and the replacement of paper payroll slips
with electronic slips.
Guergana Andreeva, CIS+ Regional Human Resources Vice
President, points to the benefits that such a program brings tothe Company and its staff: “One of JTI’s values is ‘Enterprising’and this award promotes an enterprising and entrepreneurial
spirit throughout all levels of the organization. Encouraging
employees to be innovative ultimately benefits the business interms of performance, and it also encourages the sharing of bestpractices. Above all, it shows employees how they can reallymake a difference and that their ideas are always taken seriously.”Maintaining the health and well-being of employees
The JT Group has in place initiatives aimed atmaintaining the health of employees, with theemphasis on preventing medical conditions thatarise within the workplace.

Global health and well-being strategy
In 2012, JTI began developing a global health and well-being strategy as part ofits Environmental Health and Safety (EHS) commitments.
Exercise and stretching class with a public health nurse

Prior to the introduction of this strategy, existing programs were run successfully
in local entities, according to their specific needs. Presently, a global approachallows the sharing of best practices and ensures consistent initiatives andactivities across the entire organization.
The strategy will be monitored, so the business can measure its success. Mike
Jackson is JTI’s Occupational Hygiene Director and he explains the program’s
objectives: “Prevention is key to our goals, but rehabilitation support is alsoessential in the event of sickness.”

Four pillars to well-being
Four pillars comprise the employee well-being program. These pillars are:‘Reaction’, which defines the response to employees who become ill. The
second pillar, ‘Risk Assessment’ identifies the occupational health risks
our workforce face and how these can best be addressed. The third pillar is‘Control & Management’, once the nature and magnitude of a health issue
is understood, control mechanisms can be put in place. Finally, the fourth pillar
is ‘Well-being’, which includes initiatives in health education, managementand promotion. Not only are occupational factors considered, advice on diet,exercise and stress management are also included.

Promoting healthy
lifestyles in Japan
Mike Jackson, JTI Occupational Hygiene Director

Extending the program beyond staff
In countries where JTI operates and endemic diseases are prevalent, theemployee health and well-being program will cover employees as well as
employees’ family members and their local communities. Jackson provides
an example of how this currently works to good effect: “We currently havea successful Action Against Aids program in South Africa and Tanzania, andwe are looking to adopt this for other regions across sub-Saharan Africa,
particularly where we have agricultural operations. From a business perspective,
occupational health programs make sense, because we rely on localworkforces. So this is not merely philanthropic; the benefits affect our ability tomaintain a healthy supply chain.”

In Japan, JT has instigated various programs thatoffer employees the opportunity to change their
daily habits and routines. Programs include lectures
and advice on nutritionally balanced meals, suchas providing easy-to-make recipes for healthy
meals. On a physical level, exercise and stretchingclasses are available, as well as instruction on how
to maintain posture, through walking with a correct
gait.
JT also provides employees with access tophysicians and nurses who can be consulted
regarding any health concerns.

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