Last Update: 03/11/2010
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Part of the audited Consolidated Financial Statements and Management´s Analysis

Monitoring tools

Internal monitoring

  • Audits on environmental, safety and social standards
  • Three-part system to monitor adherence to labor and social standards
  • Survey whether processes for adherence to standards exist and how effective these are

A range of systems help us to monitor whether our sites are in compliance with our environmental, safety and social standards. For example, for over 20 years, BASF has been conducting internal audits around the world according to standardized criteria on process safety, occupational health and safety, and environmental protection.

Likewise, we monitor adherence to internationally recognized labor and social standards as well as legal requirements. We also conduct risk-based assessments of our suppliers worldwide through on-site visits.
More on audits on environment, health and safety
More on compliance

Adherence to labor and social standards

We introduced a three-part monitoring system to evaluate whether we adhere to internationally recognized labor and social standards within the BASF Group. This includes:

  • close dialogue with employee representatives and international organizations in order to recognize new developments and challenges early on,
  • a compliance hotline that all employees can use anonymously and confidentially to obtain information about valid labor and social standards or to report grievances, and
  • an annual survey in our Group companies to ensure adherence to voluntary commitments in day-to-day business.

If the evaluation and comparison of the monitoring tools indicate deficits at any of our Group companies, we investigate these and take appropriate action. This ranges from a verbal warning to dismissal.

In 2009, our compliance hotline received 48 calls relating to labor and social standards, of which 37 related to grievances. The 2009 survey covered 100% of the employees in our Group companies. In this, we ask about existing processes for adhering to standards. We also query the effectiveness of these processes, for example for the implementation of the International Labor Organization’s core labor standards.

As a member of the Global Compact, our responsibility does not end with adherence to minimum standards. We strive to continuously improve working conditions at our companies and to support internationally recognized labor and social standards within our sphere of influence. For example, we are involved in a project in Pakistan, together with the national employers’ association EFP and the ILO, to promote equal rights for women in the workplace. The project aims to increase the involvement of women in decision-making processes in companies. In 2009, as part of leadership training, we worked with our partners to train over 400 female managers in all of Pakistan’s larger cities.
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labor and social standards

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Survey of ILO Core Labor Standards 2009



Process implemented

Effectiveness of the process


A very small percentage of our employees are working for companies in countries that have legal restrictions with respect to freedom of association and organization as well as collective bargaining.

Prevention of child labor


Verification of age of employee when hired


Employees are over 15 years of age when hired

Prevention of forced labor


Employment contract based on employee’s voluntary agreement


Employees have a right to unilateral termination of employment contract

Prevention of discrimination


Personnel policies based on objective criteria


In 2009, we received 33 calls relating to discrimination. In 10 cases, there was evidence of misconduct.

Employees’ right to freedom of association

100% 1

No company measures to fundamentally restrict freedom of association


Employees are working at a company, in which employee representation exists

Employees’ right to collective bargaining

100% 1

No company measures that fundamentally restrict freedom of collective bargaining


Employees are working at a company in which working conditions are based on a collective contract and employee representation exists

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