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2005 Sustainability Report - Lafarge

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PROVIDING SOLUTIONS<br />

GEARED TO LOCAL<br />

COMMUNITIES' NEEDS<br />

Given the nature of its activity, <strong>Lafarge</strong>'s<br />

future is strongly dependent on its<br />

ability to become integrated in the local<br />

community. <strong>Lafarge</strong> endeavors to meet<br />

the specific needs and expectations of<br />

local communities by providing a wide<br />

variety of appropriate solutions.<br />

Our multi-local involvement<br />

The quality of the relations that we<br />

maintain with local communities is<br />

taken into account in Business Units'<br />

performance programs. For instance,<br />

the quality of the dialogue represents<br />

one of the levers of the Cement business’<br />

Advance performance program.<br />

To face the different local situations<br />

occurring in our 2,000 sites, we<br />

encourage Business Units to forge local<br />

partnerships with organizations that<br />

provide their vision, expertise and<br />

resources to address local issues.<br />

Through a framework agreement with<br />

Habitat for Humanity International<br />

(HFHI) in <strong>2005</strong>, <strong>Lafarge</strong> extended and<br />

<strong>Lafarge</strong> volunteers<br />

participating<br />

in the Korea Blitz<br />

Build project for<br />

the construction<br />

of a Habitat for<br />

Humanity village<br />

in South Korea.<br />

developed at Group level a series of<br />

partnerships forged over several years<br />

in South Korea, the United States, South<br />

Africa and the United Kingdom to<br />

increase their respective efforts. <strong>Lafarge</strong><br />

commits to working with HFHI on<br />

housing access in 25 countries by 2010.<br />

For instance, in Romania, housing has<br />

been built for the most disadvantaged<br />

under a five-year partnership with<br />

Habitat for Humanity since 2002.<br />

<strong>Lafarge</strong> provides building materials for<br />

homes, in 12 countries to date, which<br />

are built by volunteer employees.<br />

Supporting the relocation of<br />

populations in Bangladesh<br />

<strong>Lafarge</strong> Surma Cement (an association<br />

of several partners) is building a cement<br />

plant close to the village of Chhatak.<br />

Hundreds of people had to be moved<br />

before the plant could be built. In<br />

addition to awarding high financial<br />

compensation, <strong>Lafarge</strong> supported their<br />

relocation while rolling out substantial<br />

educational and healthcare programs<br />

and providing professional training<br />

programs for 442 women (needlework,<br />

candle making, etc.). These programs<br />

BREAKDOWN OF ACTIVITIES<br />

IN COUNTRIES OF CONCERN<br />

REGARDING HUMAN RIGHTS*<br />

*Based on Freedom House’s “Freedom in the World <strong>2005</strong>”<br />

Index, which rates countries on their levels of civil<br />

and political rights.<br />

3%<br />

10%<br />

87%<br />

04 05 04 05<br />

sales breakdown<br />

● Not Free<br />

● Partly Free<br />

● Free<br />

3%<br />

13%<br />

84%<br />

18%<br />

77%<br />

have delivered benefits in terms of an<br />

increase in the literacy rate, a lower<br />

infant mortality rate (currently 8% vs.<br />

15% in 2001) and an improved level of<br />

professional qualification among women.<br />

Prior to relocation, only 3.3% of the<br />

population concerned lived in permanent<br />

housing. The current level is 71% as a<br />

result of the compensation and technical<br />

assistance provided by <strong>Lafarge</strong>.<br />

Donations to local communities<br />

Although there is no formal policy<br />

concerning donations to local communities,<br />

we have made a commitment<br />

to our stakeholder panel to establish<br />

a policy and to incorporate it in the next<br />

edition of our Code of Business Conduct.<br />

LAFARGE | <strong>2005</strong> SUSTAINABILITY REPORT | PAGE 37<br />

5%<br />

workforce breakdown<br />

11%<br />

16%<br />

73%

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