We address the issue of human rights through our commitment to equal opportunities, in particular treating people fairly, with dignity and respect. This commitment applies to all of the countries in which Powergen operates - currently the UK, US, India and Indonesia.

The business case

We believe there is a strong business case for promoting and protecting human rights. Human rights set out what is acceptable to society at large and are therefore the major component in the ‘licence to operate’ between businesses and communities.

Having a clear position on human rights reduces risks - to staff safety and conditions, company assets, performance and reputation. Maintaining high standards in human rights also avoids unwanted media attention, consumer boycotts and production losses whilst at the same time strengthening stakeholder relations.

The relevant international framework is the United Nations Universal Declaration on Human Rights (1948). The Declaration promotes universal respect for, and observance of, human rights. It calls on ‘every individual and organ of society’ to uphold these standards. This includes businesses.

Powergen UK and LG&E encourage all their employees to meet this call by following their respective Values. The UK Values extend to our Asian assets as part of the legacy of Powergen International (PGI). The UK Values state how employees should conduct themselves by Working Together:

• With integrity, honesty and trust
• Showing respect and consideration for others.

Powergen also meets human rights requirements within its Group Human Resources and Group Business Conduct Policies. The former sets minimum standards with respect to a whole range of employee matters such as performance and personal development, diversity and dignity at work. The latter commits all Powergen businesses and their staff to conduct themselves in both a law-abiding and ethical manner.

We do not, therefore, have a stand-alone policy on human rights. Rather, human rights are an integral part of Powergen’s Values and Group policies. We have found this approach to be both clearly understood and applied in practice. For this reason we were very disappointed when we were excluded from the FTSE4Good Index in July 2001 because of a lack of information on human rights. Human rights are, and always have been, a high priority to Powergen. They underpin many of the Group’s workplace achievements, especially in safety and occupational health, where we continue to take pride in our ‘world class’ performance.

Powergen in India and Indonesia

Human rights have a particular resonance to us because we operate in two developing world countries. Differences in cultures and regulations means that equality of opportunity and the fair treatment of staff is not always assured. This makes us acutely aware of the risk of labour exploitation, and all the more determined to operate to Group-wide standards.

Community disruption poses a further risk. Whilst the construction and operation of power stations brings many economic and employment gains, local communities are inevitably impacted upon, not least by the loss of land. Our challenge is to manage our impact and produce benefits for all - something we demonstrate in the case studies below.