Integrity and transparency
The promotion of ethical conduct and human rights is a core element of Hydro’s business activities. Our position is clear: zero tolerance of corruption and human rights violations. If non-conformities are registered, our policy is to demonstrate openness and learn from negative experiences.
Hydro has had ethical guidelines for many years, and our current Code of Conduct was approved by the Board of Directors in 2003. Based on this, the Hydro Integrity Program was launched in 2005 to reinforce our efforts to prevent corruption and human rights violations connected to our activities. The program includes risk mapping, tools and training. An interactive e-learning program on corporate requirements was developed in 2007 and will be launched in 2008. The e-learning program will be mandatory to all employees and includes anti-corruption training.
In the process leading up to the closing of the merger of Hydro’s oil and gas activities with Statoil, October 1, 2007, questions arose concerning the Libyan petroleum assets we acquired from Saga Petroleum in 1999. The questions related to our handling of certain contracts in Libya. We initiated an internal investigation headed by attorney-at-law Jan Fougner, supported by the U.S. law firm Shearman & Sterling LLP. Fougner reports to a subcommittee of the Board of Directors, currently consisting of chairperson of the board Terje Vareberg and Finn Jebsen. The internal investigation team is coordinated with a parallel investigation in StatoilHydro.
When entering areas with an indigenous population or other minority groups, we strive to apply caution and respect. This is an example of human rights issues that are addressed at an early stage in our projects.
We are cooperating with several organizations, including TRACE (Transparent Agent and Contracting Entities), Transparency International (TI), and Amnesty International (AI). These are all involved in internal activities linked to the Integrity Program.
Total payments (taxes, fees etc.) to host governments 1)
| NOK million |
2007 |
2006 |
| Australia |
6 |
- |
| Brazil |
89 |
127 |
| Jamaica |
81 |
79 |
| 1) Total payments to host governments in connection with the exploration and production of bauxite and alumina. Payments include benefit streams, profit tax, royalty, signature bonus, license fees, rental fees, entry fees etc. The reporting is based on the principles in Extractive Industries Transparency Initiative (EITI). The table is included in the limited level of assurance review of Hydro’s viability performance reporting 2007, but not in the financial audit. |
