Business ethics in business environment

discuss ethics in various business disciplines ethics and leadership in business and human services ethics in business are just a passing fashion
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Dr.AshleyBurciaga,France,Researcher
Published Date:05-07-2017
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ETHICS & COMPLIANCE OUR BUSINESS POWERED BY INTEGRITY ETHICS IN BUSINESS Design : Agence Cavernamuth, Photos: © J. Gaumy, H. Gruyaert, P. Zachman Magnum photos for Technip & Technip photolibrary4CONTENTS MESSAGE FROM THE CEO 3 ABOUT “ETHICS IN BUSINESS“ 4 BUSINESS PRINCIPLES 5 Ethics Principles in action 6 We are all accountable 8 Implementation of Ethics within Technip 11 MAIN RULES OF CONDUCT 15 Corruption, bribes and money 17 laundering 20 Gifts and hospitality Political activities, donations and 23 sponsorship Conflict of interest 26 Professional alerts and Whistleblowing Procedure 29 TECHNIP ETHICS CHARTER 33 APPENDIX : REFERENCES 37 12MESSAGE FROM THE CEO In today’s world, carrying out Technip’s activities requires us to act ethically and in strict compliance with the law. I have reiterated this conviction on numerous occasions. There is no other way for us to do business. This is true for the Group, and it is true for each one of us. Over the past few years, we have raised the bar for our professional practices. We have started to implement new policies and processes in governance, ethics and compliance. The Group General Counsel and the Group Compliance Officer lead our modern business approach with the full support of the management. These “Ethics in Business” guidelines are one part of our continuous progress. We are not rewriting Technip’s governance rules. With this document we are emphasizing key points concerning ethics for Technip’s employees, both how to deal with the outside world and how to put our values into practice. At Technip, it is everyone’s responsibility to comply with these rules of conduct. Applying “Ethics in Business” and upholding our integrity are the keys to the company’s future. That is why every employee will have my support and the support of the management in defending our rules of conduct and promoting our values to stakeholders. Thierry Pilenko Chairman and Chief Executive Officer 3ABOUT “ETHICS IN BUSINESS“ Technip is committed to complying with the laws and regulations in force in every country where it operates. There is no other alternative for us in how we run our business in our interactions with all our stakeholders. With the “Ethics in Business” booklet, dedicated mainly to fighting corruption, we reaffirm our strong commitment to ensuring proper conduct in our day-to-day business. Ethics is one of Technip’s core values and is an integral part of the Golden Book, our operational guidebook governing Technip’s management principles and responsibilities. But Ethics goes beyond the need to comply with law. If we believe in this value, we must promote exemplary behavior in all circumstances, both in our professional and our personal lives. And that is the purpose of this brochure. By expressing our commitment towards our clients, suppliers, business partners and stakeholders, “Ethics in Business” lays down the guidelines for behavior within Technip. This brochure is designed as a guide for you in your decision-making with advice about handling business situations professionally, fairly and legally. “Ethics in Business” is yours. It is mandatory that all Technip employees apply these principles rigorously, wherever you are, whatever you do, and, whatever your background may be. “Ethics in Business” should also be shared and discussed with clients, suppliers and our business partners to better explain our rules of conduct and reinforce our culture of accountability. Ethical behavior at all times in all business activities is essential for our company. 4BUSINESS PRINCIPLES 5ETHICS PRINCIPLES IN ACTION Technip’s aim is excellence. This requires building and maintaining a climate of mutual respect with all our partners. We must therefore apply the same principles of responsibility to all of our business relationships. These principles are set forth in the Ethics Charter. The Ethics Charter states that “it is the objective of Technip to conduct our business everywhere in the world with the highest standards of honesty, integrity and fairness.” Responsibilities towards our partners in business Excellence requires each and every one of us to conduct our activities as responsibly as possible for our business partners, customers, suppliers, subcontractors and, agents by: • Providing truthful and honest information, • Obtaining information of any nature concerning suppliers, subc ontractors, customers by legal means only, • Handling insider information with appropriate care, • Protecting our own image and our customers’ images, • Respecting third-party intellectual property, • Ensuring that procurement is transparent, • Respecting cultural diversity in all business activities and decisions, • Establishing cooperative relationships based on mutual good faith, 6• Respecting principles of competition and open-market economy, • Treating all clients and suppliers honestly and fairly, • Establishing fair contractual relations, • Delivering what we promise and not promising more than we can deliver, • Living up to the trust our customers, subcontractors, and suppliers place in us, • Promoting commitments of the Global Compact (see hereafter). We apply to other business relationships the same principles of responsibility: • Responsibility towards public officials by shunning corruption, bribery and illicit payments. • Responsibility locally and towards society as a whole by increasing our involvement in communities where we do business, respecting local customs and understanding communities’ expectations. • Responsibility towards competitors, by promoting fair and open competition, refraining from anti-competitive practices, obtaining competitors information by legal means only. Technip and the ten principles of the Global Compact The United Nations Global Compact requires companies to embrace, support and implement a set of core values in the areas of human rights, labor standards, the environment and anti-corruption. The ten Principles enjoy universal consensus and are based on: • The Universal Declaration of Human Rights • The International Labour Organization’s Declaration on Fundamental Principles and Rights at Work • The Rio Declaration on Environment and Development • The United Nations Convention against Corruption Universal application of these principles is essential to build strong relationships with all our partners.Therefore, Technip is supporting and promoting the Global Compact, within its sphere of influence, since 2003. The Ethics Charter is one of a series of Technip Charters (Ethics, Social, Environmental, Health and Safety, Quality and Security). These 6 Charters cover all commitments towards all stakeholders. 7WE ARE ALL ACCOUNTABLE Technip integrates the values of integrity, professional excellence, protection of health, safety, security and the environment and social responsibility in all its day-to-day activities. Integrity is the most important value for implementing our ethics principles. It requires two commitments: scrupulous observance of the law and the complete absence of improper intentions everywhere Technip operates. This expands the meaning of this core value and requires all of us to adopt exemplary professional behavior in all situations. Integrity is one of our major strengths Our reputation for integrity is one of our major strengths in the eyes of our business partners. We are judged according to our acts, and our reputation will be strengthened if each one of us acts in accordance with this principle. Technip is committed to full compliance with national and international legislation in every country where we do or intend to do business. All employees are required to comply with applicable rules; it is part of their duty and responsibility. To fulfill this commitment, all employees must be vigilant with regard to themselves, their professional network, their teams and the people under their management. 8 Integrity and other values must define our conduct Our behavior cannot be dictated only by the rule of law. These “Ethics in Business” guidelines are not intended to simply reproduce all laws, regulations, internal standards and agreements that already govern Technip’s activities. Acting with integrity requires each of us to recognize that our decisions may affect those around us, people who do not have the opportunity to participate in making these decisions. Acting with integrity requires that individual behavior be governed by honesty, respect for others and fairness. It is the responsibility of every employee to analyze each situation and behave according to these principles. Developing integrity practices within Technip Technip expects everyone to act with exemplary professional conduct in all situations. • Everyone must act with integrity in everyday life, meaning we must: - Be aware - Train others and be trained - Comply with regulation and standards - Help others and ask for help when needed • Everyone must try hard to help others by: - Listening - Sharing - Advising • Everyone has a duty to raise an alert in case of risk for the Company or for the employee by: - Acting with courage - Considering the adverse consequences of not blowing the whistle 9 Why is it essential to act ethically in business? • It is our duty to obey laws and regulations We run major risks if we don’t comply with criminal and civil legislation, to give just one example. • Ethics and integrity have long been an integral part of our core values For us, the spirit and the letter of the law constitute a clear framework for working with our business partners. • Ethics is a key factor for the economic success of our company Compliance with rules earns us our clients’ trust and confidence. Compliance also helps us to avoid potential heavy fines. • Ethics is a key source of pride for everybody Most people share the values of ethics, integrity, honesty and respect for the others. 10IMPLEMENTATION OF ETHICS WITHIN TECHNIP Technip’s leaders and management are taking steps to spread the ethics core value throughout the Company through ethical governance rules for the Board of Directors, internal policies, charters and rigorous processes, fair human resources management, internal control, financial and audit procedures, etc. In our day-to-day activities, Technip is committed to fighting corruption in all its forms. We must keep in mind that corruption and non-compliance with the law constitute one of the greatest risks for our company (direct economic costs, potential heavy fines, legal proceedings, impact on share price and reputation). There are various means that can be implemented to help each of us avoid this kind of risk. Organizational structure Technip has specific organizational bodies concerned with ethics and compliance issues to ensure that internal procedures are followed, monitor the effectiveness of the Group’s Ethics Charter and provide support at all levels of the Company. • The Ethics and Compliance Committee ensures that the Ethics Charter and all related internal requirements are properly implemented. • The Group Compliance Officer chairs the Ethics and Compliance Committee, ensures the compliance in particular with international anti-corruption laws and conducts the due diligence for business partners at the Group level. 11• Regional Compliance Officers provide a local contact in each region for everyday operations. They are responsible for disseminating the Ethics and Compliance rules and for monitoring their application. They also ensure that employees receive proper training and necessary information. Procedures Technip implements specific procedures to ensure compliance with anti-corruption laws and compliance policy. • “Doing Business Abroad – Technip Anti-Corruption Policy and Guide” provides a clear and comprehensive operational framework for conducting Technip’s business in every country in which we operate. • “Anti-Corruption Know Your Partner – Due Diligence Procedures” describes how to investigate the background and reputation of our prospective business partners to ensure that they will fully comply with our Anti-corruption Compliance Policy. • “Gifts and Hospitality” provides an operational framework to ensure that gifts and hospitality are not and cannot be considered as bribes. • “Whistleblowing Procedure” gives every Technip employee a route to inform the Ethics and Compliance Committee about behavior he/she believes to be inconsistent with the rules in the areas of accounting, financing and anti-corruption. Those procedures are available on Technip Group Intranet (Procedures & Standards). Training sessions “Ethics in Business” must be enforced by every employee and manager as well as every leader. Ultimately, each of us is personally responsible for making sure that we comply with the rules and regulations that apply to our business. We must stay informed about risks as well as good practices to fight corruption. Specific training sessions are provided to improve our knowledge and develop a common culture: • Training sessions for managers who have a special responsibility to lead with integrity by example. Managers must ensure that employees and contractors under their responsibility are aware of and comply with “Ethics in Business”. 12• Training sessions on legal compliance for all Technip personnel. Ignorance of the law is no excuse for non compliance. However, we cannot ask everyone to be a specialist in the legislation that applies to his/her professional activity. Therefore training sessions help employees to acquire sufficient knowledge of the legislation that applies to their activities, and allow them to determine when to seek counsel from management or from the Regional Compliance Officer. These and future training sessions serve to encourage all employees to share the “Ethics in Business” practices of Technip and to behave fairly in the interests of the Company. Support and control Internal controls, relating to Ethics and Compliance, are managed in each region by the Group and the Regional Compliance Officer. The reviews take into account geographic risk factors published by Transparency International. Regional Compliance Officers handle day-to-day queries and help all the company’s officers, employees and agents avoid corruption in all its forms. They know what is customary in a country and what is not. They remain pragmatic and business-oriented whilst taking cultural differences into account. 1314MAIN RULES OF CONDUCT 15 Foreword Some situations are known to raise major risks for employees and for Technip. The following rules of conduct are not intended to cover every ethical issue but to give general guidance. To put it simply, we must: 1. Act with thoughtfulness, common sense and sound judgment, 2. Act with respect, considering the impact of our decisions on others, 3. Seek advice in case of any doubt. The main rules of conduct deal with: • Corruption, bribes and money laundering, • Gifts and hospitality, • Political activities, donations and sponsorship, • Conflict of Interest, • Professional alerts and Whistleblowing Procedure. 16CORRUPTION, BRIBES AND MONEY LAUNDERING Anti-corruption law and Technip Commitments Corruption is the diversion of a process by dishonest practices to obtain certain benefits. Offering bribes is one common corrupt practice which consists in offering remuneration to someone in return for a favorable decision. All acts of corruption are strictly prohibited. The OECD convention (Organisation for Economic Co-operation and Development), the Foreign Corrupt Practices Act in the U.S.A., the UK Bribery Act 2010 and numerous other laws ban all acts of corruption to obtain or retain a market or to benefit from an advantage of any other kind. As a result, no payment may be offered to public officials, politicians or political parties, either directly or indirectly, in an attempt to influence the behavior of any country’s administration. It is also strictly prohibited to make payments or provide other objects of value such as gifts, loans, discounts, excessive hospitality expenses or to use the company’s funds or assets in an attempt to influence a decision under any circumstances. Technip, its employees and representatives may face civil or criminal sanctions if they violate laws on corruption in business or any similar law. 17Technip is committed to complying with all international and national legislation against illegal payments. Technip shall refrain from giving, proposing, promising or soliciting, either directly or indirectly, all payment or supply of services, gifts or leisure activities to obtain or retain a market or a competitive advantage. This rule is valid for transactions with government officials, companies or private persons, within the framework of Technip’s national and international activities. Technip may be held liable for improper payments made by its business partners. We must ensure that our agents, our subcontractors and our suppliers do not make illegal payments. Money laundering Money laundering is the process by which the criminal origins of funds or the value of funds are hidden within a company’s accounting or within legitimate commercial activities. Some suspect situations include: • Transactions in which you don’t know information concerning the parties’ identities, • Transactions conducted through unknown or unnecessary intermediaries, • Unnecessary or unexplained transactions, • Abnormal settlement methods. Laws against money laundering usually involve the company’s as well as the employee’s individual criminal responsibility. 18