OREANDA-NEWS. September 14, 2011. TNK-BP’s Ethics Committee reviewed the preliminary results of the Company’s Integrity and Loyalty Programme. Aimed at preventing violations of ethical norms and rules within the company, the Programme is one element of a comprehensive system for combating corruption and fraud in TNK-BP, reported the press-centre of TNK-BP. 

As part of the Programme, which utilizes the best practices of leading global corporations, a Security Hotline has been set up to receive and process calls from both inside and outside the Company on possible violations. Since January 1, 2011 the hotline has received a total of 584 reports, of which 365 were confirmed by investigations carried out by security staff. As a result, 92 people have been disciplined and 37 criminal cases have been launched.

TNK-BP has also set up and is making active use of a dedicated incentive fund to reward people who report damage caused to the Company or illegal actions being planned in respect of the Company. Rewards worth up to 10% of any damage prevented are granted to honest employees or Company partners who provide information that is subsequently verified.

“Integrity is one of TNK-BP’s core values, and as such the Company does not tolerate any form of corruption or fraud. We shall continue to improve our anti-corruption system, while at the same time seeking out advanced methodology and applying the best international practice in this area”, stated Deputy Chairman of the Management Board Maksim Barskiy. ”We will also act openly and make public any significant violations of business ethics. This will help not only to combat fraud and corruption more effectively, but will also attract to the Company employees and partners for whom honesty is the cornerstone of their personal values.”

Information for Editors

System of measures to combat fraud and corruption in TNK-BP

The Integrity and Loyalty programme is one element of a comprehensive system for combating corruption inside TNK-BP.

The basic elements of this system, in addition to the programme described above, are:

Values system: Integrity is one of TNK-BP’s key values and means that the Company is intolerant towards corruption, fraud and any violations of corporate business ethics.

Company regulations (policies and standards) establishing unconditional zero tolerance towards all forms of corruption and fraud.

New Delegation of Authority Matrix, effective July 2011. The new Matrix is designed to raise corporate governance standards and enhance management transparency. It grants line managers greater independence in financial and contracting decision making, while at the same time making them personally responsible for the decisions taken. This will enable the Company to identify and punish employees involved in corruption scams more effectively.

A new Integrity Commission is being set up to support ethical business practices as one of the improvements in the system. The Commission will consist of management representatives. More details on the functions and makeup of the new Commission will be communicated separately.

A system of transparent relationships with contractors and suppliers. In applying the principle of zero tolerance towards corruption within the Company, TNK-BP is also seeking to ensure full transparency in its relationships with suppliers and contractors. Over the past 12 months the conflict resolution commissions have reviewed complaints from suppliers and contractors, including business ethics issues. This subject will also be one of the main topics of discussion at the Contractors Forum on September 15.