Business Principles

 

1. Objective

 

The objectives of CNOOC and Shell Petrochemicals Company Limited (hereinafter referred to as Company) are to engage efficiently, responsibly and profitably in its business. The Company seeks a high standard of performance and aims to maintain a long term outstanding position in its respective competitive environments.


2. Responsibilities


The Company recognizes five areas of responsibility.

 

(a) To Investors
To protect investors's investment and provide an acceptable return.
(b) To Employees
To provide all employees with good and safe conditions of work, good and competitive terms and conditions of service; to promote the development and best use of human talent and equal opportunity employment; and to encourage the involvement of employees in the planning and direction of their work, and in the application of these principles within the Company,  recognizing that commercial success depends on the full commitment of all employees.
( c ) To Customers
To develop and provide products and services which offer value in terms of price, quality, safety and environmental impact supported by the requisite technological, environmental and commercial expertise.
( d ) To Society
To conduct business as a responsible corporate body of society, observing the laws of the PRC, to express support for common and fundamental personal rights in line with the legitimate role of business and give proper regard to health, safety and the environment consistent with their commitment to contribute to sustainable development.
( e ) To those with whom the Company does business
To seek mutually beneficial relationships with contractors and suppliers and to promote the application of these principles in so doing. The ability to promote these principles effectively will be an important factor in the decision to enter into or remain in such relationships.

These five areas of responsibility are seen as inseparable. Therefore, it is the duty of management continuously to assess the priorities and discharge its responsibilities as best it can on the basis of that assessment.

 

3. Economic Principles 

 

Profitability is essential to discharging these responsibilities and staying in business. It is a measure both of efficiency and of the ultimate value that customers place on the Company products and services. It is essential to the allocation of the necessary corporate resources and to support the continuing investment required to develop and produce petrochemical products to meet consumer needs. Without profits and strong financial foundation it would not be possible to fulfill the responsibilities outlined above.

Criteria for business decisions are not exclusively economic but also take into account social and environmental considerations and an appraisal of the security of the investment.


4. Business Integrity

 

The Company insists on honesty, integrity and fairness in all aspects of its business and expects the same in its relationships with all those with whom it does business. All employees are required to avoid conflicts of interest between their private financial activities and their part in the conduct of company business. The direct or indirect offer, payment, soliciting and acceptance of bribes in any form are unacceptable practices. All transactions on behalf of the Company must be reflected accurately and fairly in the accounts of the Company in accordance with established procedures and be subject to audit.


5. Health, Safety and The Environment

 

Consistent with its commitment to contribute to sustainable development, the Company will have a systematic approach to health, safety and environment management in order to achieve continuous performance improvement.

To this end the Company will manage these matters as any other critical business activity, set targets for improvement and measure, appraise and report performance.

 

6. The Community

 

The most important contribution that the Company can make to the social and material progress of the PRC is in performing its basic activities as effectively as possible. In addition the Company should take constructive interest in societal matters which may not be directly related to the business for example through community activities and participation in and support of educational or donations programs.

 

7. Public Activities

 

(a) Of the Company
The Company shall act in a socially responsible manner within the laws of the PRC in pursuit of its legitimate commercial objectives.
Except as required by law or contract the Company will not make payments to any organizations or their representatives. Subject to the prior agreement of joint venture parties, the Company shall make its position known on any matter which affect the Company, its employees, its customers, or its shareholders. It also has the right to make its position known on matters affecting the community, when it has a contribution to make.
(b) Of its employees
Where individuals wish to engage in social activities in the community they will be given the opportunity to do so where this is appropriate in the light of local circumstances.

 

8. Competition

 

The Company will seek to compete fairly and ethically and within the framework of applicable competition laws; it will not prevent others from competing freely with them.

 

9. Communication

 

The Company recognizes that in view of the importance of the activities in which it is engaged and its impact on local economy and individuals, open communication is essential. To this end, the Company has a comprehensive corporate information program and provides relevant information about its activities to legitimately interested parties, subject to any overriding considerations of business confidentiality and cost.