Integrity and human rights
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.
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| In 2007 we developed an interactive e-learning programme on corporate requirements. The programme includes anti-corruption training and will be presented to all employees during 2008. |
If non-conformities are registered, our policy is to demonstrate openness and learn from negative experiences.
Countering corruption and human rights violations is an integral part of our business. These areas are important elements of our ambition to contribute to a viable society. Both legislation and internal regulations place demands on us. We also believe that our performance in these areas makes us a supplier and partner of choice, as well as an attractive employer.
Fundamental labor rights
It is essential for us to avoid the use of child labor and forced labor, not just in Hydro's activities, but also in those of our suppliers and collaborating partners. We are concerned about fundamental labor rights, such as freedom of association, minimum wage requirements, and the regulation of working hours. A survey carried out in the entire organization in 2005 revealed no serious violations of these rights. A new self-assessment tool has been developed to measure performance. This will be implemented in 2008. Hydro does not tolerate discrimination on the basis of gender, race, national or ethnic origin, cultural background, social group, disability, family status, age, or political views.
Security staff are required in some areas, including armed guards for the protection of personnel, property and business activities. Hydro is a signatory to the Voluntary Principles on Security and Human Rights. No negative incidents connected to our use of security staff were registered in 2007.
Countering corruption, promoting human rights
Hydro has had ethical guidelines for many years, and in 2003 our current Code of Conduct was approved by the Board of Directors. Based on this, the Hydro Integrity Program was launched in 2005 to prevent corruption and human rights violations connected to our activities. The program includes risk mapping, tools and training. In 2007, 200 more leaders and other personnel in senior positions were added to the 2000 who had previously participated in the training program. Personnel from certain joint-venture partners have also taken part in the program.
Training includes dilemma discussions. An interactive e-learning program on corporate requirements was developed in 2007 and will be launched in 2008. The program is mandatory to all employees and includes anti-corruption training.
Libya
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 US 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.
Corporate responsibility in supply chain
We are continuously working on the implementation of corporate responsibility requirements with respect to our suppliers. Requirements have been established regarding health, safety, environment and social responsibility issues. These are important elements of the supplier prequalification process, bid evaluation and contract execution phases. A Supplier Declaration has been developed. The intention is to further increase awareness and improve the transparency of social responsibility issues in the supply chain. By signing the declaration, the supplier confirms a willingness to initiate a process of documenting his promotion of these issues, and his performance with respect to them. Step-by-step implementation in the organization has commenced, and will continue throughout 2008.
Voluntary commitments
Our most important voluntary commitments are our support of the principles set out in the Universal Declaration of Human Rights and the UN Global Compact regarding human rights, labor standards, environment, and anti-corruption. We also support the OECD's Guidelines for Multinational Enterprises, the Voluntary Principles on Security and Human Rights, Transparency International's Business Principles for Countering Bribery (BPCB), the World Economic Forum's Partnering Against Corruption Initiative (PACI), and the Extractive Industries Transparency Initiative (EITI). We report all payments to authorities in the countries where we have exploration and extraction activities for bauxite, as well as operations for the production of aluminium oxide.
According to our internal directives, Hydro is not permitted to make financial contributions to political parties.
