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“Hydro shall maintain high standards of integrity. This means that we shall be honest and fair in all our dealings. We shall not permit or tolerate engagement in bribery or other forms of corruption.” HYDRO’S SOCIAL RESPONSIBILITY DIRECTIVE Peter Eigen, founder of Transparency International, and CEO Eivind Reiten agree on the need to fight corruption. Global engagement Hydro cooperates with civil society networks and organizations with the aim to fight corruption, such as Transparency International (TI), an international NGO, and the Extractive Industries Transparency Initiative. The partnership with TI reflects Hydro’s CSR strategy to build alliances with NGOs with special competence and knowledge in areas relevant to Hydro’s activities. Hydro is actively involved in TI’s work to develop principles and guidelines for companies on how to fight corruption. The TI Business Principles for Countering Bribery are also applicable to private-to-private transactions, as distinct from the OECD Convention, which is limited to the bribery of foreign public officials. 25 The Hydro Integrity Programme Integrity is a major issue in the Code of Conduct. As a first step in developing a Hydro Integrity Programme, a complaints and concerns channel has been set up. Employees can use this to report unethical business conduct, which they for various reasons cannot report within their local organization. This is a corporate channel that leads directly to the head of Internal Audit Corporate. Hydro will develop the integrity programme further to ensure the implementation of our integrity standards throughout the organization. An important element of the programme will be Transparency International’s Business Principles for Countering Bribery which, together with other sources, will contribute to informing and training employees with regard to corruption and related challenges.
26 Integrity Signature bonuses and transparency Angola is an oil rich country and suffered for many years from a civil war, which required a large part of the revenues from oil and other natural resources. The war has now ended, but despite the significant oil revenues, much of the population is living in conditions of extreme poverty with an average life expectancy of 45 years. Income from oil companies accounts for nearly ninety per cent of government income. The International Monetary Fund (IMF) has claimed that huge amounts have been unaccounted for in the Angolan state finance budget. It has been reported that much money has been transferred to foreign bank accounts and tax havens, and there has been increased pressure on the Angolan and other governments to account for the management of the oil revenues. Hydro has been present in Angola since 1998 and was at that time applying for participation in a promising deep-water block. As in many countries, oil companies in Angola are required to pay a signature bonus as an entrance ticket for attractive blocks, and this applied also for Hydro and the other companies according to their contract with the state oil company Sonangol. The dilemma was that the amount of the signature bonus could not be disclosed due to a confidentiality clause in the contract. Even if the oil companies wanted full transparency of such payments, a breach of the contract could have serious consequences for the companies’ future in Angola. What Hydro and some other companies did, was to refer to the public accounts which the companies had to file according to national law. The confidentiality clauses were heavily criticised due to the consequences for Angolan society, and many organizations were urging oil-producing countries towards transparency in the management of oil revenues. In 2003, the Angolan government disclosed the amounts paid for this block to IMF, which released Hydro and its partners from the confidentiality obligation. The payments were fully accounted for, and the figures coincided with those traced by IMF as having been transferred to the Angolan Treasury bank account. The Angolan government has since increasingly disclosed payments received from oil companies, and lack of transparency with respect to such payments is expected to be less of a problem in the future. Hopefully, this will create more open societies, to the benefit of the people in countries with valuable natural resources.
Page 1 and 2: Designed and produced by: Hydro Med
Page 4 and 5: Dear Hydro Colleague Our Hydro cult
Page 6 and 7: Introduction Invitation to a Dialog
Page 8 and 9: "This publication is another step t
Page 10 and 11: This chapter gives an outline of th
Page 12 and 13: “Hydro supports the principles se
Page 14 and 15: Dilemmas: You are a Hydro manager,
Page 16 and 17: “Through developing profitable bu
Page 18 and 19: Dilemmas: Hydro is about to establi
Page 20 and 21: “Hydro will not discriminate on t
Page 22 and 23: Dilemmas: In some Muslim countries,
Page 24 and 25: “We are prepared to enter into an
Page 28 and 29: Dilemmas: Looking for business oppo
Page 30 and 31: Corporate social responsibility cal
Page 33 and 34: 32 CSR in the business planning pro
Page 35 and 36: 34 Development of social knowledge
Page 37: 36 The Hydro experience in Utkal, I
Page 40 and 41: It is important to obtain social kn
Page 42 and 43: Suggested approach 1. Make a strate
Page 44: CSR and Business Relations Companie
Page 47 and 48: 46 CSR in Strategy, Business Planni
Page 49 and 50: 48 Resources The Hydro Social Respo
Page 51 and 52: 50 Appendix 1 Hydro’s Social Resp
Page 53 and 54: 52 Appendix 2 Hydro's Code of Condu
Page 55 and 56: 54 Appendix 2 Hydro's Code of Condu

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