18th January, 2012

To our stakeholders:

I am pleased to confirm that Kuwait Resources House - KRH, 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 exhibit how our business practices, strategy, culture & daily operations are aligned with the Global Compact and its principles. We also commit to share this information with our stakeholders using our primary channels of communication.

Sincerely yours,

Mohammed Ghabris

GM

Human right issue is very relative to our business practice. This is due to our business model structure which is built to deliver HR Services & Life Support Services for two beneficiaries; businesses & manpower.
The sustainability of our business heavily depends on practices that cross check with the “Universal Declaration of Human Rights” articles.
Our competitiveness in our markets can only be guaranteed and maintained by delivering to those beneficiaries the promised quality of service, which evolves around jobs, humans & their rights.
Internally, KRH is recognized as being a widely diverse multi-ethnic working environment, stable & fair place to work and offers equal opportunity for individuals of various skills & qualification levels.
KRH Internal policies include strict human rights related subjects that guarantee achieving and maintaining all that. Examples of those policies are; code of conduct, respect among team members, hiring & firing policies guaranteeing compatibility with human rights articles, and many more.
The only risks that may exist are the governmental laws that ban certain nationalities from visiting or working. This deprives the country’s local economy from benefiting of the diversity in culture and skills of people that exist in the banned parts of the world.
Our goals for 2012 are to maintain our edge in being a human rights supporter in the way we practice our business, especially as we are going through a business restructuring process at this time.

The implementation is on 3 levels.
1- Standardization Certifications
a. KRH is an ISO 9001 registered firm.
b. KRH is an OHSAS 18001 registered firm.
2- Services we provide to businesses & people.
We practice our business in complete compliance with ISO & OHSAS, and is tightly managed through our QHSE department.
a. For businesses:
i. Providing manpower that meets the qualifications and experiences they seek, regardless of gender, religion, political or any other discriminatory criteria.
ii. Stability and high performance of those manpower, which results naturally from our “Unique & Comprehensive Life Support services”. Satisfied manpower performs well.
iii. We only provide our services to businesses that have no previous record or reputation in any human rights related violation. We care for our people and only assign them to work places or projects where they are respected, well treated and valued.
iv. We perform on ground project management in order to have a first hand on the working conditions and incidents management, leaving the employers of our people limited worries; performance and achieving their business plan.
b. For manpower (people).
i. We provide high standard accommodation solutions that exceed the expectations of the hired employers. This is in terms of area, furnishing climate conditioning & many other factors.
ii. Healthcare & work insurance are provided equally to each individual
iii. Transportation, Catering, laundry services, recreational services such as libraries & gyms, travel planning, general help & assistance in the country of performance, internet service, tailored entertainment to meet individual requests such as cable TV selection, and many more.

3- Internal mechanisms
a. Call center.
b.Project manager on site.
c. Suggestions boxes.
d. Monthly scheduled meetings.
e. HR team offering sincere personnel services and guidance.
f. Group seminars and motivational sessions.
g. Multipurpose awareness sessions on safety, laws, office ergonomics, health, and many more functions.
h. Groups English language education.
i. Groups computer applications training.

1- Quality assurance methods are one way of measuring outcomes. This is due to our unique business structure.

a. A quality assurance team is dedicated to monitor the delivery of our promised services and assure it equals or exceeds the quality standards we promise our stakeholders including clients and people.
b. Quality team provides monthly/quarterly reporting to all stakeholders.
c. Quality & HR teams attend immediately to any reported incident whether it’s a violation to any human rights article, injury and any incident of any nature.
d. Reports and documentation is well managed and channeled.
e. Internal investigations on any violations are part of the HR & Legal department daily work.

2- Annual audit
Annual audit and review takes place at the end of every year, which is a practice we do not only for the sake of human rights, but as well to continuously develop our service delivery standards. This reflects on positive business growth for stakeholders, positive human rights reputation especially that we provide manpower from around the world, and of course to our clients.

3- Progress
2011 was another great year on all levels, including human rights, as no human rights violations were recorded

As describes in the human rights part, our business model is different than other businesses. Human rights and labor rights are inseparable components. This is why you will notice common answers in the “four issues areas”.

Labour rights:
As described in the first issue area, we provide businesses with complete manpower planning and manning. Labour rights are summarized in 2 categories.
1- Country labour legal rights
In Kuwait, there are a set of laws for labour rights regulating the relationship between the employer and labour. We and our clients comply fully with these laws.

2- Company labour rights policy.
As mentioned in issue 1 area, KRH provides “HR Solutions & Life Support Services” having both businesses and manpower the end user & beneficiary. Our service delivery was described earlier in issue area 1, and it provides each labour with a set of rights and services that by far exceed those set by the government.
Every employee receives a fully detailed contract that mentions that refers to the local labour law of the country and clearly states all his rights guaranteed by the law, and as well the rights and services that she/he shall receive from the company..

Forced labour and child labour:

Such violations do not exist. Thanks to Kuwait labour laws and our internal strict policies that completely forbid such acts.

Employment/occupation discrimination:
Internally, KRH is recognized as being a widely diverse multi-ethnic working environment, stable & fair place to work and offers equal opportunity for individuals of various skill & qualification levels.
KRH Internal policies include strict human rights related subjects that guarantee achieving and maintaining all that. Examples of those policies are; code of conduct, mutual respect among team members, hiring & firing policies guaranteeing compatibility with human rights, and many more.
The only risks that may exist are the governmental laws in some countries that ban certain nationalities from visiting or working. This deprives the local economy of the law issuing country from benefiting of the diversity in culture and skills of people that exist in the banned parts of the world.

Please refer to the implementation part under “Human Rights Issue area”. Same answers apply here.

Please refer to the measurement of outcomes part under “Human Rights Issue area”. Same answers apply here.

KRH is in the process of designing environmental protection solutions, but limited to specific area. We strive to be actvie contributors to the global efforts to protect the environemt and we have a management directive to adopt any possible new solution or technology that helps making a better environment.

1- Paper usage/recycling
a. Reducing the use of papers by adopting new communication, documentation and working electronic environment.
b. Using recycled papers when needed.
c. Develop written policies to achieve that.
d. Paper waste is collected by paper recycling companies on weekly basis.
2- Power usage
a. The company has strict policies on reducing power usage by acquiring the available technologies that help us achieve this objective.
i. Power saving lighting systems.
ii. Power turn off at the end of every business day through our multi story tower.
3- Smoking ban inside the building
Making the working environment a healthy place for people to work is an utmost priority. Therefore, we have a strict no-smoking policy as follows.
a. Smoking ban is a strict policy within all offices.
b. Smokers are allowed to have regulated short smoking breaks outside the offices.
c. Violators of the policy are disciplined according to the announced policy.

Goals:
We aim to contribute more to the global environment protection efforts, and our only challenge is the availability of technologies that can help us achieve that.
Some of our long term goals are to switch our vast fleet of vehicles to electrically powered vehicles once available in our markets.

It’s one of our goals to develop a measurement system and tools that allows us to measure our contribution and success in achieving our environmental goals.

We have written policies and business agreements that cover all our business aspects whether with our suppliers or with our clients, guaranteeing that we have "zero" incidents of violations to anti-bribary and corruption act.
We are registered with FCPA & Trace, which a necessity for KRH business since most of our business is conducted with governments.
2011 was completely clean of any violation and we shall maintain this position as we have for the past 17 years.

1- KRH is a member with TRACE international, an international anti-bribery compliance solution provider and consultant. We developed our written company policies that have zero-tolerance for corruption, bribery & extortion using TRACE services and with reference to the UN Convention against Corruption.
2- KRH hired an independent legal firm to manage its contracts with individuals and businesses to guarantee the integrity of every business transaction.
3- KRH established an internal audit & legal department to be another level of self-monitoring & policy application.
4- We provide suggestion boxes, call center and the list of names and contacts for all management allowing every individual to have access to the management team.
5- Updates from any international instrument that we use to develop our policy and monitoring efforts, are conveyed to all our people in internal awareness sessions.

The company has successfully managed to have a17 years of business exercising without a single incident of corruption or bribery related case.
Our annual audit reports this as well in coordination with the hired legal body and in reference to the TRACE institution.