This
August OAO LUKOIL has introduced the Company’s Code of Business Ethics. The Code is a set of the most important
business rules of the Company and its employees, ethical corporate business
practices, social responsibility and other top priority issues of business
ethics.
Among
other things, the document governs the relations of the Company’s employees with
OAO LUKOIL shareholders and investors. The Code specifically focuses on
disclosure of information, which could
potentially affect the price of LUKOIL securities (inside information). The Company has a very clear
procedure set to identify the notion of an insider. It is constantly updating
the list of insiders who are to follow special guidelines when dealing with LUKOIL securities.
A separate
section of the Code is devoted to the
corporate relations of the
employees. Specifically, the Code eliminates all sexual, age, racial, national,
religious and political discrimination of employees.
LUKOIL
employees are recommended to constantly pursue professional development via a
personnel training system and
acquire new skills and the
necessary expertise to improve their performance.
The
Code also governs conflicts of
interest when due to personal, family or other circumstances a LUKOIL employee
loses or may lose loyalty and objectivity towards the Company. The resulting
conflict of personal interests with the Company’s interests will undermine its
efficiency; for this reason the Company is entitled to prevent the effect of
such conflicts.
The
Code sets out appropriate relationships
with business partners. Thus, LUKOIL declares its readiness to establish and
maintain mutually beneficial relations with any partner in case it, just like
the Company, adheres to the principles of mutual respect and mutual benefit,
fairness, conscientiousness, and tight mutual obligations.
At
the same time the Company advocates fair competition and compliance with all
effective laws on competition in
all countries of its presence.
The
Code also states that LUKOIL employees must never accept presents, services,
payment for entertainment and vacations, monetary rewards or any other benefits, which may
affect the impartiality and independence of their professional duties, or make
decisions which might oppose the Company’s interests.
The
Code of Business Ethics also specifies the relations with state authorities and
public organizations; particular attention is paid to HSE issues.
According
to the provisions of the Code,
the Company has established a business ethics committee, which looks into
corporate ethical relations.
“It
is important to bear in mind that each employee represents the Company and
supports its reputation and credibility by their labor and attitude. The Code of Business Ethics is one of
the tools to create a company in which all employees are members of the top
business team,” Vagit Alekperov,
OAO LUKOIL President and CEO, said.
