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SOCIAL POLICYthem go beyond the requirements of Russian laws and internationalstandards.The Social Code demonstrates that overall the Company:acknowledges social responsibility of business and is not shirking it;accepts realistic commitments without losing sight of what makesthem viable, that is, the Company's own economic effectiveness;is prepared to take decisions that will optimally balance various interestsof shareholders, employees, veterans, partners, the state, public, etc.The economic component of the Code reflects the Company's policyfor managing social expenses and instituting a stricter control overthem. That is achieved through the introduction of up-to-date marketmechanisms:employee participation in the funding of corporate pension andsocial insurance systems;We have receivedobjective proof thatthe provisions andprinciples of the corporatepolicies and documents(LUKOIL Social Code; Industrial,Occupational and EnvironmentalSafety for the 21st Century;Programme for Development ofa Health and Safety System forLUKOIL Group Employees;Environmental SafetyProgramme for 2004–2008; etc.)are being implemented. This isone of the examples of theCompany's adherence to theprinciples of social responsibility.joint payment for the use of social infrastructure by employees, theirfamilies and the local population;long-term mortgage loans instead of direct subsidies of housing purchases;establishment of a joint centre that would keep track of all socialexpenditures;possible outsourcing of social services rather than keeping themwithin the production structure.Issues related to implementing the social policy for LUKOIL employeesand veterans lie in the competence of the Chief Personnel Departmentwhich includes a number of subdivisions responsible for staffing, personneldevelopment, remuneration and motivation, social programmes, etc.The Public Relations Department is responsible for relaying the resultsof the corporate social policy to governments in the countries andregions of LUKOIL's operation and to the public.39