Section 8 Social ResponsibilityCONFIDENTIALSocial Responsibility Assessment ChecklistThe items to assessed during the Social Responsibility diagnosis. The rating scale is described at the end of the appendix.Assessment area (based on the applicable law)Assessors CommentsRatingEnterprises must have a complete set of regulations to protect the rights of employees. Those regulations should include staff contract management terms, salary management terms, social security and welfare terms, working hours and leave regulations, penalty and bonus regulations, and other management regulations.Enterprises have to recruit and employ staff without any racial, nationality, gender or religious discrimination.Enterprises have to sign contracts with employees within 30 days of their joining date. The contracts should include clauses covering: working hours, job description, work protection and work conditions, payment, discipline, termination terms of the contract, obligation terms (if there is violation of the contract) and other agreements between the employee and employer.Enterprises must sign contracts with temporary workers and offer them social insurance according to the law.Employers have to follow the policy of equal payment for equal positions.Salary should be paid in currency without unauthorised deduction or delay.Salary cant be lower than the minimum local salary (Chengdu: RMB 270, Leshan, RMB 213, Mianyang, RMB 250). If the payment is lower than the minimum local salary, employers have to compensate the difference plus an additional fine of 25% of the difference.Enterprises must enforce the new working hours calculation policy (i.e. 8 hours per day / 40 hours per week / 20.92 average working days (or 167.4 working hours) per month annually calculated.Enterprises have to pass the annual check by the labour administration department and must not illegally increase working hours.Payment of a minimum of 150% of original salary must be paid for overtime work.Payment of a minimum of 200% of original salary must be paid to the employees who work leave days and cannot take their leave days later.National leave (New year, 1 day / Spring Festival, 3days / Labour day, 3 days / National day, 3 days).Enterprises must have a special labour disputes conciliation committee or labour union representative to deal with disputes.Enterprises have to register at the social security bureau for employees.Employers have to buy the basic pension for staff (20% of monthly salary).Employers have to buy the basic medical insurance for staff (6% of monthly salary).Enterprises should buy unemployment insurance for all employees. The amount should be the average total staff annually multiplied by 2% of the municipal average salary of last year calculated by the statistics bureau.Enterprises should buy injury insurance for staff. The premium should be based on the average monthly salary and the basic numbers of workers. (Varies according to different industries.)Employers must buy maternity insurance (0.6% of monthly income or 0.6% of the annual pension insurance paid according to annual income).Enterprises cannot force their staff to buy shares and cannot reduce staff salary, lay off or terminate the contract if employees don not want to buy shares.Trade union or staff representatives opinions must be consulted and reported to the labour bureau before the enterprise starts to lay off workers.When enterprises apply criteria to cut staff, they must do it according to legal procedure.Employers must not dismiss those who fall ill due to work related illnesses, those who have been injured during work, those who are pregnant or on maternity leave.After enterprises finish their cut off plan and start to recruit new employees within 6 weeks, laid off workers should be considered first.Other CriteriaEnterprises should ensure that timely, regular, reliable and relevant information is disclosed to employees regarding organisational activities, structure, financial situation and performance.Enterprises are encouraged to communicate information that could include:- Value statements or statements of business conduct intended for public disclosure including information on the social, ethical and environmental policies of the enterprise and other codes of conduct to which the company subscribes. - In addition, its performance in relation to these statements may be communicated;- Information on relationships with employees and other stakeholders.Enterprises should encourage human capital formation, in particular by creating employment opportunities and facilitating training opportunities for employees.Enterprises should develop and apply effective self-regula