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Supply Chain Innovation

FVG Action Plan: Background and Summary

Publication date: 
Monday, March 30, 2020

In November 2019 the Fair Labor Association announced the affiliation of FGV Holdings Berhad (FGV) and Procter & Gamble Chemicals (PGC) after approval of their applications by the board of directors.

Within the first year of FLA affiliation, FGV and PGC are required to align their standards with the FLA Workplace Code of Conduct. The FLA Code is based on International Labor Organization standards and internationally accepted good labor practices that address child labor, forced labor, employment relationship, nondiscrimination, harassment and abuse, freedom of association and collective bargaining, health, safety and environment, hours of work, and compensation. Furthermore, as FLA affiliates, each company is required to develop a comprehensive social compliance and remediation program based on the FLA Workplace Code of Conduct for the Agriculture Sector and the Principles of Fair Labor and Responsible Sourcing or Production for Agricultural Supply Chains.

FLA staff visited one of FGV's owned palm plantations sites in Sabah (East Malaysia) in January 2020 and conducted an onboarding workshop with FGV top management and various divisions in Kuala Lumpur, Malaysia. A management systems gap analysis was completed and recommendations for improvement were given to FGV.

FGV, with support from PGC and the Fair Labor Association, developed a multi-year plan with a focus on actions to be taken in 2020. A draft version was shared with international organizations and Malaysia-based groups. Their input and suggestions have been integrated into the final document.

The plan is designed to demonstrate FGV's commitment to and align its labor standards practices with FLA’s principles. The FLA will assess FGV's implementation and actions against the plan. A progress report will be published on September 30, 2020.

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