Every employee who is working in HSBC has to ensure that the customers are given proper respect. The supplies are asked to create such a plan that they abide the respect of the employees. HSBC has also ensured that there should be a proper hold on the protection of human rights. HSBC has also been supporting a number of international codes such as the UN Global Compact, OECD Guidelines for Multinational enterprises. HSBC bank has been also creating a diverse culture which ensures that the views of the employees are completely protected and their concerns are attended and it also ensures that the work environment is such that there is no harassment on any matter including the sexuality, gender age ethnicity etc.
A case study of enrolment of loan for forest destruction
HSBC has assured that if any company doesn’t pass the bank sustainability test, it will not be getting the loan from the bank. One of its forest policy states that if any company has been involved in the act of deforestation, it will not be getting any loan.
But there has been a recent case reported by EIA. One was related to the Bumitama Agri Ltd. While the other one was related to the Triputra Agro Persada. Both of these companies are the part of Roundtable on which HSBC also relies a lot in order to be compliant with its forest policy. But, it was found that the RSPO doesn’t have the credible mechanisms to ensure that there is no violation in the protection of these rights. In the year 2010, HSBC bank has provided the load of US$419 million to Bumitama in different loans and financial services. Also, in the year July 2013, Triputra Agro took the load of around US$470 million from HSBC.
In Sepember, 2013, when EIA visited the concessions of the company situated in Central Kalimantan, the forests were being cleared. These were done in order to support the plantation but doing the same on cutting of the forest was wrong. This is the breach to the rules of RSPO, but the loan was still sanctioned. Thus, in this issue HSBC is taking off the responsibility and breaking the system and favouring the deforestation of some of the best forest in the world.