21 December 2020
Below communicated through the Internal Newsletter

Our Responsibilities

Kaizen Institute (KI) joined the United Nations Global Compact (UNGC) on January 15, 2020. Despite the COVID-19 pandemic setback in 2020, we are making progress towards fulfilling our duty and responsibility for creating a sustainable and thriving world.
We certainly have ambition to grow and provide improved services to our clients, attract best talent, and develop leading knowledge in our sector to ultimately achieve our mission of improving the world with everyone, everywhere and every day, the KAIZENTM way. But, this is not good enough for us working and living in this troubled world. As a responsible consulting company, we must also work to eliminate poverty, inequality, unrest, and environmental stress, thus demonstrating our KI Core Values in all of our actions.

(KI Core Values Statement attached)

Kaizen Institute is committed to contribute to the United Nations’ 2030 Agenda for Sustainable Development and its 17 Sustainable Development Goals (SDGs).
The UNGC advises we assess our actions against 17 SDGs (each has specific targets - for more detail visit https://sdgs.un.org/goals) by examining two characteristics:

- whether our services impact negatively on people and the environment; and
- whether our products, services, and investments are benefitting people and/or the environment.

KI and UNGC SDGs

Being a global consulting company, we advise, teach and coach our clients how to operate effectively and efficiently. In this sense, we are co-responsible for their actions as we are responsible for our own.

Hence, KI has two aspects to consider as we strive to fulfill our duties:
- Our KI actions and contribution to society;
- Our clients’ actions and contribution to society.

KI’s Actions and Contributions

We believe the KAIZENTM methodology undeniably benefits both people and environment by design. Nonetheless, we must still consciously ensure all of our actions are contributing to the SDGs. In this regard KI shall...

• act, behave and make decisions that will contribute to the SDGs;
• ensure our services create zero negative impact on people and environment;
• reduce or eliminate hazards and waste at our physical premises; and
• contribute to the SDGs through the KAIZENTM methodology.

Our Clients’ Actions and Contributions

While we are improving the organizations of our clients, we must also ensure our clients are contributing towards the SDGs.
Further, as a globally operating organization, we are obligated to provide both collective global results as well as the local/ regional results to the UNGC, so that they can measure the progress towards SDGs geographically to evaluate its impact. In practice, KI will report on our efforts (i) globally and (ii) locally.

KI’s Global Initiative

Through the survey conducted recently, KIBU leadership together with KI’s Global Operations identified the prioritized SDGs for Kaizen Institute and where our type of business could make the most difference. The prioritized goals selected are:

Goal 3: Ensure healthy lives and promote well-being for all at all ages;
Goal 4: Ensure inclusive and equitable quality education and promote lifelong learning;
opportunities for all;
Goal 8: Promote sustained, inclusive and sustainable economic growth, full and productive employment, and decent work for all; and
Goal 12: Ensure sustainable consumption and production patterns.

This does not mean other SDGs are not pursued, nor that one is more important than the others. Many
SDGs are interconnected in its ultimate goal. The next steps and detail will be shared shortly.

KI’s Local Initiative

KIBUs are encouraged to continue or initiate any local actions to contribute to SDGs. KIBUs shall always connect their efforts to SDGs and report such actions to KIAG periodically so that our actions, and the consolidated impact KI is making globally, can be measured and reported back to the UNGC.

Summary

We are about to enter the second year of being a UNGC member. We will all learn how to effectively contribute to the SDGs. We will continue with these UNGC-related initiatives by demonstrating commitment from the highest leadership level within Kaizen Institute, expanding the involvement from everyone in the organization in this mandatory effort.

Risa Cox
Managing Director
Kaizen Global Group of Companies

uring Year 1, Kaizen Institute (KI)'s Code of Conduct (COC) was updated to align with UNGC 10 Business Principles. COC includes the following;

As part of Our Corporate Principles, we commit to the Ten Principles of the UN Global Compact: Human Rights, Labor, Environment & Anti-Corruption (#1-10). In addition, we adhere to the principles of Compliance, Health & Safety, Ethics and Political Activities (#11-14).
Human Rights
1. Businesses should support and respect the protection of internationally proclaimed human rights; and
2. make sure that they are not complicit in human rights abuses.

In the area of 'Human Rights', there are two initiatives planned;
#1) Our KI actions and contribution in Human Rights to society, and
#2) Our clients' actions and contributions in Human Rights to society.
*these efforts directly involve our commitment for 'Labor' as well.

During Year 1, we achieved to create the awareness and gain the commitment for this effort internally. For the above #1, KPI will be further set for the organization in Year 2. Further, we are in the early stage of discussion to kick off a project for internal women empowerment within KI. More specifics will be planned in Year 2.

For #2, an internal survey to assess the current clients' actions towards Human rights was conducted. Question was asked "Do you have any clients where some necessary improvements were observed due to their actions against humane standards? What is the percentage of such clients out of all our Business Units (BU) clients? (Such actions may include but not to be limited to labor rights, unsafe and insecure working environments, forced labor, modern slavery, human trafficking, child labor, inequality, and discrimination)".

Currently it was observed that 4% of our clients could improve their Human Rights practice. In Year 2 and beyond, we will create a standard practice to be able to reduce these numbers always to zero (KPI 0%). Our goal shall be to reduce such clients' actions against Human rights by detecting, improving and sustaining. We take the challenge to detect such opportunities for improvement as much as possible, through our partnership with our clients. The standard practice shall include to reject such clients/projects where they are well aware of the violations and have no intention for improving/eliminating.

Another area identified as a high impact was to contribute to reduce mortality and increase the access to better health. Internal survey asked a question of "How many projects does our BU offer that are directly or indirectly reducing mortality or increasing the access to better health for people?". And "If our BU offers such projects (reducing mortality or increasing healthcare access), approximately how many people were positively impacted because of our BUs during 2020?" In Year 2, we will verify the data and we will set the policy and goals.

Following the work done during Year 1, we will continue to progress on setting the policy and finalizing the goals.

During Year 1, we were striving to create the awareness and data gathering. During Year 2 and beyond, our plans and goals will be firmer and we will be able to start measuring the outcomes.

During Year 1, Kaizen Institute (KI)'s Code of Conduct (COC) was updated to align with UNGC 10 Business Principles. COC includes the following;

As part of Our Corporate Principles, we commit to the Ten Principles of the UN Global Compact: Human Rights, Labor, Environment & Anti-Corruption (#1-10). In addition, we adhere to the principles of Compliance, Health & Safety, Ethics and Political Activities (#11-14).
Labor
3. Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining;
4. the elimination of all forms of forced and compulsory labor;
5. the effective abolition of child labor ;and
6. the elimination of discrimination in respect of employment and occupation.

Some of the efforts planned in this area are included in 'Human Rights' section.

We identified that KI can contribute by providing quality education especially for the disadvantaged people. Through the internal survey, a questions was asked "Most of the BU leaders pointed out that education is one of the key elements for the better world. One of the KI’s niches is the vocational CI related training to provide employability for the disadvantaged people. If you are already providing such support, directly or indirectly, charging or free of charge, how many people have your BU positively impacted during 2020? (Such disadvantaged people may include but not limited to indigenous peoples, youth and adults in vulnerable situations or unemployed, substance abusers or those who are in recovery, ones in developing countries especially least developed countries and small island developing states)".
Also "Assuming there is KI's standardized training program and method specifically for the purpose to help the employability for the disadvantaged people, how many people do you think your BU can target to have an impact on during 2021?" 6,592 people have been positively impacted through our support during 2020, without any organized initiative. In Year 2, we will verify the data and we will set the policy and goals.

Following the work done during Year 1, we will continue to progress on setting the policy and finalizing the goals.

During Year 1, we were striving to create the awareness and data gathering. During Year 2 and beyond, our plans and goals will be firmer and we will be able to start measuring the outcomes.

During Year 1, Kaizen Institute (KI)'s Code of Conduct (COC) was updated to align with UNGC 10 Business Principles. COC includes the following;

As part of Our Corporate Principles, we commit to the Ten Principles of the UN Global Compact: Human Rights, Labor, Environment & Anti-Corruption (#1-10). In addition, we adhere to the principles of Compliance, Health & Safety, Ethics and Political Activities (#11-14).
Environment
7. Businesses should support a precautionary approach to environmental challenges;
8. undertake initiatives to promote greater environmental responsibility; and
9. encourage the development and diffusion of environmentally friendly technologies.

KI provides services that help organizations to be more efficient, requiring less resources, more productive, cost-efficient and friendly to the environment. It is our strongest link where our service should be able to help our clients to be environmentally responsible for all they do. Through an internal survey, the question was asked "What is the percentage of your current clients where KI service has an impact on sustainable consumption and production, directly or indirectly?" The results show that 16% of the current client are supported with the improvement of the sustainable consumption and production. In Year 2, we will further verify the data and we will set the policy and goals where KI's effort in this area is strengthened making a larger impact.

Further, internally, we started to promote to reduce or eliminate hazards and wastes at our physical premises globally. However the policy and goal is yet to be developed. Also Year 2 and beyond, our efforts will continue to deepen our methodology to promote and improve in this area.

Following the work done during Year 1, we will continue to progress on setting the policy and finalizing the goals.

During Year 1, we were striving to create the awareness and data gathering. During Year 2 and beyond, our plans and goals will be firmer and we will be able to start measuring the outcomes.

During Year 1, Kaizen Institute (KI)'s Code of Conduct (COC) was updated to align with UNGC 10 Business Principles. COC includes the following;

As part of Our Corporate Principles, we commit to the Ten Principles of the UN Global Compact: Human Rights, Labor, Environment & Anti-Corruption (#1-10). In addition, we adhere to the principles of Compliance, Health & Safety, Ethics and Political Activities (#11-14).
Anti-Corruption
10.Businesses should work against corruption in all its forms, including extortion and bribery.

(below for reference)
Compliance
11.Kaizen Institute complies with all legal and regulatory rules and policies within each business jurisdiction.
Health & Safety
12.We ensure that all local offices comply with the local and national jurisdiction’s health and safety requirements.
Ethics
13.Our work is guided by our ethics both internally (how we run our business) as well as externally (how we provide professional services to our clients).
Political Activities
14.We act in a socially responsible manner within the laws of the countries in which we operate in pursuit of our legitimate commercial objectives.

Although COC is in place and understood by all KI members, KI must strengthen our practice to detect, monitor and sustain the efforts. Such practical practice and goal has not been set as of yet, while we keep demonstrating our zero-tolerance policy against our COC.

Following the work done during Year 1, we will continue to progress on setting the policy and finalizing the goals.

During Year 1, we were striving to create the awareness and data gathering. During Year 2 and beyond, our plans and goals will be firmer and we will be able to start measuring the outcomes.