In the light of the current global economic downturn, it is even more important to ensure that the benefits from our activities are shared and distributed in an efficient and open manner.
We aim to be known for our high ethical standards and our commitment to transparency and openness, and accept no violations of integrity in our operations. In October 2008, we received the findings from the external investigations into Norsk Hydro's petroleum activities in Libya, as discussed last year. The main conclusion was that consultancy agreements related to Norsk Hydro's earlier activities in Libya contain issues which could be problematic in relation to Norwegian and US anti-corruption legislation. The findings have also been handed over to relevant authorities in Norway, the USA and Libya. (See separate article).
External commitments
Our commitment to integrity and transparency is founded in a number of international initiatives. We support the Extractive Industries Transparency Initiative (EITI) and respect and promote the EITI principles throughout our operations. We have also endorsed the United Nations Global Compact principles, including the 10th Principle on Anti-Corruption, and communicate annually on our progress in implementing the 10 principles. We also support the World Economic Forum's Partnering Against Corruption Initiative (PACI), the Business Principles for Countering Bribery (BPCP), and the OECD Guidelines for Multinational Enterprises.
Transparency
StatoilHydro was the first major oil company to start disclosing all revenues and payments in the countries in which it operates, a practice that we continue to follow. We also work through the EITI to promote principles of transparency in the countries where we operate, and have in 2008 actively promoted implementation of the EITI principles, particularly in Azerbaijan, Nigeria and Kazakhstan. We continued our collaboration agreement with Transparency International Norway and, in an effort to improve industry disclosure and reporting on sustainability issues together with industry partners in the International Petroleum Industry Environmental Conservation Association (IPIECA), we have begun preparations for the second edition of the Oil and Gas Industry Guidance on Voluntary Sustainability Reporting. In addition, we aim to work with industry, governments and civil society to operationalise our commitment in the countries where we operate.
Business integrity
Our Ethics Code of Conduct, updated in 2007 following the merger between Statoil and Hydro's oil and gas activities, describes our ethical commitment and requirements for our business practice and the personal conduct of all individuals who act on behalf of StatoilHydro. We are committed to complying with applicable laws and regulations and act in an ethical, sustainable and socially responsible manner. Respect for human rights is an integral part of our corporate social responsibility. We shall be known for our high ethical standards, and breaches of laws and ethical requirements are therefore a threat to the group's competitiveness and reputation.
In 2008, the focus was been on mainstreaming our Ethics Code of Conduct throughout the organisation and strengthening our ability to manage and mitigate integrity risks in our operations. We screen new investments, partners, contractors and suppliers for integrity and human rights risks, and implemented stricter requirements for integrity due diligence (IDD) to improve our processes for managing integrity risks in our business relationships. In connection with this implementation, approximately 2,000 business managers and procurement staff completed compulsory IDD training related to their specific working area. Moreover, as part of an overall assessment of risk exposure, five of six business areas also reviewed their corruption risks in 2008.
We provide online and face-to-face training in key areas, including in ethics, anti-corruption, and compliance issues. By the end of 2008, as many as 89% of all StatoilHydro staff had completed compulsory e-learning on anti-corruption. To further engrain and ensure ownership of our revised Ethics Code of Conduct, we also rolled out an ethics training and awareness programme, 'The Right Way', across our operations, especially targeting senior management, procurement staff and others regularly exposed to third parties. A total of 127 Ethics roll-out workshops were conducted during the year, spanning 40 countries, and reaching 2,132 staff. In terms of other training, an additional 42 Anti-Corruption Compliance workshops with 985 employee participants were also held in the same period, and 298 new staff also received introductory training in the StatoilHydro Anti-Corruption Compliance Programme and Ethics Code of Conduct. We are also working to make our ethics and anti-corruption training available to selected groups of suppliers and contractors in key markets.
Since 2005, we have had a global Ethics Helpline for employees, business partners and other interested stakeholders to confidentially and anonymously report their concerns about ethical issues involving StatoilHydro or those acting on our behalf. The Ethics Helpline is managed by an external party and is available in local languages, 24 hours a day, every day of the year. Staff are also encouraged to raise ethical issues through line management, our human resources department or their trade union representatives.
In order to ensure that these matters and other ethics issues are given thorough consideration at the appropriate management level, StatoilHydro has established a system of ethics committees. The various management committees from the corporate executive committee down to the local country offices meet regularly as ethics committees and deal with an agenda specifically focusing on ethics issues. Their decisions and clarifications may then be passed on to the staff or incorporated into ethics policy as this is developed.
