Tullow Oil plc 2011/2012 Corporate Responsibility Report - The Group

2STAKEHOLDER PRIORITIESACCESS ANDINFLUENCE IN THECAPITAL MARKETSOur strategic objective is todeliver substantial returns toshareholders. This ensures thatwe can continue to pursue ourbusiness plans and invest increating shared prosperity. Tullowhas a very active investor relationsprogramme through whichthe CEO, the CFO, the otherExecutive Directors and SeniorManagement regularly meetmajor shareholders. In 2011,370 investor meetings were held,presentations were made at15 international conferences and18 broker sales team briefingswere conducted. We also engagewith Socially Responsible Investorsthrough investor meetings,roadshows, invitations to ourmulti-stakeholder meetings andby answering direct enquiries andSRI benchmarking questionnaires.INDUSTRY AND PEERGROUP ISSUES ANDBENCHMARKINGWe maintain a number of industrymemberships and affiliations thatenable us to participate in, learnfrom and contribute to industryissues and benchmark ourpractices, particularly inoperational areas. Theseaffiliations cover areas such astransparency, human rights, oilspill response and industryreporting standards and we seekindependent critiques of ourreporting and communicationsfrom a variety of stakeholders.All of these help to ensure weadopt relevant good practicesfrom our industry, contributingto our competitive edge, andmaintain an appropriate level ofdialogue and transparencyaround our operations.BUILDING ANDMAINTAINING OURREPUTATIONBeyond targeted engagementwith specific stakeholder groups,we work hard to tell the Tullowstory to a wide audience.We participate in nationalgovernment sponsored publicdialogue on the oil and gasindustry and look foropportunities to explain ourapproach to creating sharedprosperity to the Diaspora anddiplomatic representatives ofeach of our countries of operationand locally. We also sponsorevents focused on promotingAfrica as an investmentdestination and engage withinternational universities onidentifying potential sources ofAfrican talent for our business.We engage with the media toinform and engage on industryand Tullow related issues, wecommission stakeholderperception surveys and respondto corporate responsibilitybenchmarking andaccreditation surveys.2012 BOARD RISKMANAGEMENTOBJECTIVESContinue to ensure thatthe Group’s financial andoperating risks areidentified and thatadequate systems are inplace to monitor andmitigate them, with aparticular focus on:1 External StakeholderRelationships2 Portfolio management3 Improving the quality ofBoard reporting onevolving risks4 Building organisationalcapacity5 EHS and asset integrity;and6 Maintaining andenhancing the Tullowculture Setting meaningful emissionsreduction targets Transparency on paymentsto governments Bribery and corruption risksfaced and implementationof the UK Bribery andCorruption legislation Providing transparent,accurate updates onkey areas of corporateresponsibility progress The need for clarity onTullow’s approach tooperating in sensitive areas Bribery and corruption risksfaced and implementationof the UK Bribery andCorruption legislation Transparency on paymentsto governments Operating in sensitiveareas, particularly WorldHeritage Sites Industry solutions to oil spillresponse issues Human Rights and Securityand implementation of theRuggie Principles Opportunities to enter theTullow supply chain in Africa How to avoid the ‘Oil Curse’ innew oil producing countries– lack of economic diversification Employment opportunitieswith Tullow in Africa Providing information onTullow’s activities Responding to allegations ofbribery and corruption inUganda21www.tullowoil.com