MOL GROUP Annual Report

More documents

Recommendations

Info

Professional competency trainingsAdditional development programmes continued in 2010. For example, the Upstream Jolly Joker Programme successfullyimproved the maintenance skills of operators, supporting them in everyday maintenance-related tasks. The training not onlyincreases the value of human capital, but also helps to reduce maintenance costs.In the Downstream, MOL extended the Refinery Complex Programme. This special education project focuses primarily onblue collar workers in order to keep their knowledge regarding technological, maintenance and safety issues up-to-date.During the course of the project, a professional competency system was elaborated. The long-term goal is to define bothgeneral and professional competencies to be developed, and to match educational material to the scope of specific workcompetencies. The Refinery Complex Programme will cover all blue collar workers (shift leaders, controllers and systemoperators) in each and every facility. The programme is planned to be continued in 2011, but be enhanced to includethe revision of professional skill development for shift workers at Refineries in Hungary and Slovakia, and competencydevelopment for shift leaders.Also in 2009, as part of longer term capacity development, we launched a technical competency management pilotprogramme within the Upstream Division using PetroSkills, a leading oil industry alliance’s learning and developmentpackage. After a successful pilot project, we joined the alliance as a member company, and rolled out the system for theentire white collar Upstream staff of the mother company (and also covered around 25% of INA d.d. Upstream). For 2011,we plan to continue the roll-out for MOL Group’s Upstream companies and to launch a pilot programme in Refining. Ourapproach to competency management consists of an annual cycle of repeated (re)definition of competency requirements,on-line assessment to test the required competencies , and planning and delivery of learning and development interventionsto address identified gaps in competency. The results of the competency gap analysis are utilised as a basis of the Upstreamprofessional training planning process.From 2011, we will set up the Upstream Corporate University as a forum for internal Upstream professional skill andcompetency development.Commitment to Fair EmploymentAs Hungary has ratified the UN Universal Declaration of Human Rights, ILO Tripartite Declaration of Principles ConcerningMultinational Enterprises and Social Policy, and the OECD Guidelines for Multinational Enterprises, MOL Group considersthese agreements as compulsory codes.Equal opportunity and diversityWe ensure equal opportunities to all current and future employees. In fact, MOL goes beyond national regulations: equaltreatment for all is guaranteed through collective agreements, our Code of Ethics, Trade Union agreements, Group-wideguidelines and internal regulations.In June 2010, MOL managers and employee representative bodies signed the Equal Opportunity Plan (EOP) of MOL Plc valid for2010-2012. It is the first document in the Group that, besides declaring the necessity of equal opportunity and formulating a banon discrimination, specifies the responsible staff and establishes deadlines for actions. We are confident that the EOP will help toincrease the social awareness of our managers and members of certain employee groups which require more attention.The scope of this plan covers all the employees of MOL Plc., with special respect to women, single parents, parents with twoor more children under ten years of age, those with any kind of disability, and employees over 50 or belonging to a nationalor ethnic minority. Moreover, an Equal Opportunity Board has been established and an equal opportunity officer has beendesignated. In 2011, we would like to extend EOP to all Hungarian subsidiaries. A handbook with the necessary guidlines forimplementing EOP at subsidiaries have already been compiled.In 2010, MOL joined the Employers' Equal Opportunity Forum, the first professional lobby group bringing together equalopportunity mediators within companies, and providing them with a stronger platform to fight for equal opportunity.The Forum was initiated by the Salva Vita Foundation (Hungarian NGO), and it was founded with the participation of tenHungarian and multinational companies.Number and ratio of part time employees2007 2008 INA) INAChange2007-2010(%)GroupPart time employees (people) 92 125 114 143 +55% 191Ratio of part time employeesto the total workforce (%)0.60% 0.73% 0.64% 0.79% +32% 0.59%3.5 EthicsEthical frameworkIn 2010, we placed special emphasis on updating the Code of Ethics and Rules of Procedure, implementing e-learning andcontinuing ethical communication according to the following:– The Code of Ethics, adopted three years ago, was reviewed based on experiences gained after the Code hadbeen adopted. Other codes of ethics in this industry sector, provisions of law and suggestions and sustainabilityevaluation criteria were also used in the evaluation. The revised Code of Ethics emphasises that the normsformulated in the Code cover all stakeholders, and that the managers exercise special responsibility for integratingethical norms into everyday corporate practice. Regulations for accepting gifts and rules of ethical procedureswere also changed. The position of Ethics Officer was introduced for the companies of the MOL Group;– Ethics e-learning aimed at improving awareness was successfully completed by 99% of MOL Plc employees withIntranet access, by 97% of TVK Plc employees with Intranet access, and 100% of Slovnaft employees with Intranetaccess. In addition, live ethics training sessions were held in several companies of the MOL Group;– IES, the Italian member of the Group, has also adopted the Code of Ethics;– Within the framework of internal communication, three articles were published in the internal company magazine,Panoráma, which dealt with the ethics evaluation of 2009, the results of the e-learning courses, and the positionstaken by the Ethics Council on promoting awareness of acceptable behavior in particular situations;– Ethical expectations and Key Performance Indicitors (KPI) were defined for all Country Chairperson;– INA adopted the Code of Ethics in 2010, and the INA Ethics Council was established with an independent expertappointed as Council Chairman. In 2010, the INA Ethics Council received one notification, and its investigation is inprogress.Ethical casesOnly the ethics cases reported to the Ethics Council are summarised below. The task of the Council is to ensure that all MOLGroup employees comply with the Code. Among the most important of the Council’s duties and responsibilities is replyingto complaints and questions, and conducting consequent investigations. At Slovnaft, questions related to ethical issuesare answered by the in-house Ethics Advisory Service in conjunction with the Ethics Council. In 2010, the Ethics Councilresponded to 89 questions related to harassment, discrimination, conflicts of interest and business gifts.In 2010, the Ethics Council received ten notifications. The Ethics Council investigated seven of the ten cases, and in four casesthe Corporate Security department was asked to conduct investigations. Ethical misconduct was proven in four cases out ofseven.The increasing number of notifications and questions means that employees now pay more attention to ethical issues anddisplay increasing trust in the Ethics Council.SustainabilityWork-life balanceAlthough there is not presently a Group level set of policies addressing work-life balance, MOL has taken initial steps towardsthe encouragement of non-typical employment. Part-time work and telecommuting are not an option for those involved inproduction activities because of the type of work (shift-working); however, they are accessible for other employees in certainpositions. Although only 12 employees at MOL Plc. were telecommuting in 2010, the rate of those who have gained approvalto work from home, after managerial approval, is much higher in certain cases.In the future, we intend to disseminate the currently ad hoc best practices, and establish value-based standards. As the firststep, these principles were integrated into the Group level agreement on social issues signed with trade unions in 2010.194 MOL Group annual report 2010 195
Ethical notifications received and investigations conducted by stakeholder groupStakeholdersTopic ofnotificationType ofinvestigationEthicalmisconductCustomers Harm to customer Ethical investigation NoShareholders Misappropriation (anonymous) Security investigation NoJeopardising company property Security investigation NoFuel theft (anonymous) Security investigation NoEmployees Harassment -* -*Unfair wages -* -*Unfair wages (2) Ethical investigation NoReligious discrimination(anonymous)Ethical investigationNoImproper employee behaviour Ethical investigation YesHealth, safety and the environment Failure to report an accident Ethical investigation YesViolation of health and safetyregulationsEthical investigationYesGovernment and involvementin politics- - -Local communities andthe general public- - -Suppliers, business partners Conflict of interest (anonymous) Security investigation No– Acceptance of offers of accomodation – Several managers of MOL Group participated in an an unofficialprofessional conference held by a supplier during their holiday. The managers did not seek permission from theirsupervisor. The managers infringed the Code of Ethics that states that employees: ’[may] not accept offers oftravel, holidays and/or accommodation made by a business partner, third party contractor or company acting onbehalf of MOL Group (consultants, agents, franchise partners, etc.). In certain cases (e.g. professional training, orinvitations to make presentations) acceptance of such offers of travel and accommodation is permitted, if it hasbeen approved by the supervisor exercising employer’s rights.’ The Ethics Council suggested that the managersconcerned should be held responsible for breaching ethical standards and for unexemplary behaviour.The Ethics Council regularly reported all ethical issues to the Executive Board and took measures to raise awareness.ComplianceMOL Group is committed to fair marketing behaviour without corruption and improvement of the culture of competition.In 2010, a new organisational unit, the Compliance Team, was established and made responsible for the execution of thegroup-level Compliance Programme. The aim is to clearly identify compliance the risk elements (cartel, abuse of dominantposition) of the business operations of MOL Group and make proper suggestions to eliminate such risks. Compliance officersin INA and Slovnaft have also been nominated. In 2011, the team aims to support the MOL Group member companies inimplementation and to continue training courses and conducting market analysis and inspections.3.6 Social investmentsAcceptance of offers ofaccommodationEthical investigationYesCompetitors Unfair competition -* -** The Ethics Council considered the accusations unfounded and did not initiate an ethics investigation.In order to promote ethical awareness, the Ethics Council annually publishes details of cases with proven ethical misconduct.The cases to date are as follows:– Improper employee behaviour - Getting into a stressful traffic situation and entering a security area. One of MOLGroup’s employees was not willing to identify himself when a security guard asked him to do so. He used vulgarand offensive words and hit the guard’s arm. His behaviour clearly breached the Code of Ethics that states: ’As aMOL Group employee you must never engage in behaviour that could be characterised as offensive, intimidating,malicious or insulting’, and ’you must never humiliate or injure another person’. Since security rules were violated,the Ethics Council recommended taking measures related to labour law. In addition, the Council proposed thepublication of the incident at meetings and via Intranet, and the taking of proper measures in order to preventsimilar situations from the occurring in the future.– Failure to report an accident – One of the business partners of MOL Group asked for employee volunteersto assist with some cleaning. One of the employees was injured during the course of the work and was giventreatment by a paramedic. The business partner breached the Code of Ethics that states that it is mandatory to:’promptly report to local management any accident, injury, illness, unsafe or unhealthy conditions, incident, spillor release of material to the environment, so that immediate steps can be taken to correct, prevent or controlsuch occurrences.’ The Ethics Council notified the Retail Division that the business partner had breached MOL’sethical standards and HSE rules, and recommended that the partner be fined, participate in training sessions onthe Ethics Code, and be made better aware of HSE rules.– Violation of health and safety requirements - One of the business partners of MOL Group working at a locationin a situation hazardous to human health did not report that the workers had not been provided protectiveclothing in proper sizes, and therefore performed the work without protective clothing. Performance of thesetasks without regard to safety requirements not only endangered the partner’s health, but also the health of hiscolleagues. The MOL Group manager who delegated the work did not insist that the work be perfomed only inprotective clothing, and neglected giving priority to HSE criteria. The stakeholders violated the Code of Ethicsthat holds: ’MOL Group is committed to providing all employees – and those of other companies working on ourpremises – with a safe and secure work environment, where no one is subject to unnecessary risk.’ The EthicsCouncil did not suggest introducing penalties for workers who breached the Code of Ethics due to extraordinarycircumstances, and instead recommended that personnel be made aware of the importance of HSE criteria andculture.MOL Group is committed to demonstrating leadership in the field of good corporate citizenship. MOL has created astructured, transparent and regulated charity donation policy, allowing it to avoid responding in an ad hoc way to queries.MOL Group’s commitment towards social investment is focused on the following main areas:– New Europe Foundation– Talent Support Programme – Arts and Sciences– Talent Support Programme – Sports– Child Healing Programme– Culture and Sciences– Environment and Health– Education– SportsIn 2010, MOL Group received nearly three thousand applications from individuals, associations, institutions and foundationsof all types. MOL Group allocated a total budget of HUF 1,861.1 million solely for charity purposes, from which the mainprojects amounted to HUF 1,330.3 million.MOL, Slovnaft and MOL RomaniaDonations to organizations in the acting and performance sectorMOL has supported more than 40 Hungarian theatres and other enterprises with HUF 1,085.7 million in 2010.MOL Talent Support ProgrammesIn 2010, a total of 145 talented young athletes and 79 talented young artists and scientists received HUF 48 million in financialsupport in Hungary. In Slovakia, 42 talented children were supported with the sum of EUR 66,500 (HUF 18.3 million). InRomania, 130 young athletes and artists have been awarded EUR 60,000 (HUF 16.5 million) in support.MOL Child Healing ProgrammeThe budget for this programme in Hungary was HUF 43.5 million, which was apportioned among 31 non-profit organisations.In Romania, EUR 60,000 (HUF 16.5 million) has been distributed between 20 successful applicants.MOL Talent Care AwardFour teachers and four coaches were awarded with HUF 500,000 each in 2010.Greenbelt ProgrammeIn 2010, HUF 18.9 million was allocated to the Ökotárs Foundation in Hungary, while an additional EUR 66,400 (HUF 18.3million) was granted to the Ekopolis Foundation in Slovakia. In Romania, applicants to the Greenbelt programme receivedSustainability196 MOL Group annual report 2010 197
Page 1 and 2:
MOL GROuP ANNuAL REPORT 2010MOL GRO
Page 4 and 5:
Key financial and operating dataKey
Page 6 and 7:
Overview of the environmentWorld ec
Page 8 and 9:
Exploration and ProductionHIGHLIGHT
Page 10 and 11:
OTHER RESuLTSSustainable developmen
Page 12 and 13:
upstreaPortfolio EleentsRuSSIASPE 2
Page 14 and 15:
ize MOL and INA sales channels in C
Page 16 and 17:
PetrochemicalsPetrochemicalsPetroch
Page 18 and 19:
Downstream portfolioelementsDomesti
Page 20 and 21:
The most important events of 2010Th
Page 22 and 23:
Gas and PowerGas and PowerThe Gas a
Page 24 and 25:
Financial and Operational Performan
Page 26 and 27:
1.) We have audited the accompanyin
Page 28 and 29:
Moderating growth in world economy,
Page 30 and 31:
Higher personal expenses due to ful
Page 32 and 33:
Unit OPEX slightly increasedStronge
Page 34 and 35:
…and in SPE P1 reserves2010 was t
Page 36 and 37:
In Slovakia sales volumes recovered
Page 38 and 39:
has been granted an IPPC and a Buil
Page 40 and 41:
Refining & MarketingCAPEX down by 5
Page 42 and 43:
INDEPENDENT AuDITOR’S REPORTMOL H
Page 44 and 45:
Consolidated balance sheet31 Decemb
Page 46 and 47:
Consolidated cash flow statement31
Page 48 and 49: Joint venturesA joint venture is a
Page 50 and 51: vi) HedgingFor the purpose of hedge
Page 52 and 53: off. Upon determination of economic
Page 54 and 55: At each balance sheet date, the Com
Page 56 and 57: IAS 1 Presentation of Financial Sta
Page 58 and 59: Exploration costsTransfers from exp
Page 60 and 61: 6 Subsidiaries and jointly controll
Page 62 and 63: The purchase price allocation for t
Page 64 and 65: 10 Investments in associated compan
Page 66 and 67: 15 Other current assets16 Cash and
Page 68 and 69: Changes in the number of ordinary,
Page 70 and 71: The following table summarises the
Page 72 and 73: 28 Financial (income) / expense30 I
Page 75 and 76: The Group may use cross currency sw
Page 77 and 78: Capital managementThe primary objec
Page 79 and 80: Operating leasesOperating lease lia
Page 81 and 82: 37 Notes to the consolidated statem
Page 83 and 84: Historical SummaryHistorical Summar
Page 85 and 86: Gross reserves (according to SPE ru
Page 87 and 88: Petrochmical production (kt) 2005 2
Page 89 and 90: InterviewwithGyörgy MosonyiThe str
Page 91 and 92: Objective Result Fulfillment of the
Page 93 and 94: effluents. We found that the persis
Page 95 and 96: The main programme elements are Ext
Page 97: Employee engagementWe conduct a Gro
Page 101 and 102: 4 Sustainability data (Performance
Page 103 and 104: 5 Notes on Non-Financial Reporting5
Page 105 and 106: 6 Assurance statements6.1 Independe
Page 107 and 108: CorporateCorporate GovernanceCorpor
Page 109 and 110: The Board of Directors prepares a f
Page 111 and 112: The chairman of the Supervisory Boa
Page 113 and 114: The main role of Financial Risk Man
Page 115 and 116: 7.10.11.8.9.7. Mr. József Molnár
Page 117 and 118: 6. Mr. József Simola (44)Corporate
Page 119 and 120: 7.Mr. József Kohán (59)Member of
Page 121 and 122: Ownership Structure31.12.2009 31.12
Page 123 and 124: GlossaryAverage production costTota
Page 125 and 126: Putting into productionAccomplishme
Page 127 and 128: Content tableTopic of interestCover
Page 129: Statementresponsibilityofundersigne
show all

MOL GROUP Annual Report

Create successful ePaper yourself

Delete template?

Save as template?