PROPOSED CODE OF ETHICS

FOR AN OIL INDUSTRY

Darshan Maheswari 102119013

Giriraj P 102119022

Karthikeyan M 102119032

Khiran S 102119034

Mangesh Kota 102119035

K Vignaprasad 102119036

Mohana Sundaram S 102119043

Introduction

In recent decades, the discovery of petroleum has changed people’s lifestyles to a great extent.
And the so-called ‘Black gold’ has become one of the world’s most lucrative industries. But,
even so, the oil industry almost never builds a positive image among the general public. As we
know, there is no angel in oil companies, in most cases, oil companies’ behaviors often result in
the negative impact to the human, society, and the environment. Only way to counter this
problem is to appeal to the heart of employees, to let them follow the good man’s way.

Fundamentals

To achieve corporate purpose and to run a company smoothly code of ethics are necessary. This
code guides about rights and duties that should be fulfilled.

Company deals only with those who comply with the companies provisions and principles.

Code of ethics is monitored by the board of directors and they have power to amend or integrate
that.

i) Excellence:

Excellence translates into all aspects of a company's workplace. It is personal and group
commitment to doing what humans do well. The firm should drive for best results.

The firm should drive excellence by setting challenging goals, rewarding top performance,
encouraging innovation, creativity, diversity of thought, and teamwork.

ii) Safety Ethics :

Safety is an integral part of the value system . It is a commitment to providing a safe and
respectful working environment for all with the appropriate safety procedures and policies in
place. Safety is protecting ourselves and protecting others.In our Company Safety of the
members is given the most importance. It is ensured by:

● A particular Safety Regulation team which ensures that all the members of the company
follows the safety standards issued by API and ISO. Each member is trained by the
Safety Regulation team before joining our company in order to ensure that the members
are aware of the safety measures.The Safety Regulation Team also ensures that the
storage of highly inflammable oils is also done following the safety standards issued by
API and ISO.
● In Case of Emergencies,it is ensured that the injured person gets First aid and
Ambulances and further medical attention is given.
Proposed Code of Ethics for an Oil Industry 3

iii) ​Integrity

The integrity of business is based on the ethical standards of employees in everyday operations.
Everyone should treat people with fairness and respect. Firms should not tolerate misconduct.

iv) Accountability

Accountability means all employees at a company should take responsibility for their actions in
meeting corporate objectives.

Addressees

Code of ethics is addressed to the board of directors, people in the management section,
employees, shareholders, collaborators and anyone who is working in the name of company or
on behalf of it.

Ethics in Internal Relations :

Internal relations comprises the essential part of the company's ethical scheme and its very
important to ensure the correct application of the regulations to safeguard the behavior and
moral integrity of the entire organization.

The two main aspects for internal relations of any organization include the relationship between
the employees and the company management , and the relations between the employees
themselves.

1. Relations within company management ​:

● all organizational teams and sub-teams must cooperate fully and promote mutual
information , which results in development of organizational interests

This is very important in any organization, that all the individuals in a particular project /
assignment are fully functional with each other, which also involves sharing data with with one
another , spotting errors which one team might have glanced over, all which contributes in a
positive way to development of the company

● all members should dutifully carry out the different obligations entrusted to them with the
utmost loyalty and confidentiality, in order to ensure complete transparency of all the
work they perform

Loyalty is a very essential trait that all organizations require in their employees and helps to
build trust within the team and between the teams and the company management
Proposed Code of Ethics for an Oil Industry 4

themselves.This in turn will assure the complete transparency in any work / project they do,
resulting in quality of the work being greatly enhanced

2.Relation between team members / employees:

● the relations between all team members and employees must strictly adhere to all the
known values and principles , and respect for individual rights must be observed to a high
degree.

Good relations and terms between the members of a team performing an important task /
assignment for the organization is key in determining the success ratio of the particular
task, as a well respected relation within the team generally is a sign of success

● Any type of discrimination / harassment based on language, gender, race , religion caste,
creed or political will not be tolerated.

An organization where discrimination is strictly prohibited , ensures a safe and

● Also, complying with the internal hierarchy of the organization employees are expected
to follow through strictly with the values of honesty, equality, diligence, and
co-operation.

Following honesty and equality , for it plays a huge role in the work ethics to be
established ,and mainly create a positive outlook which will , therefore , create a platform
where all teams work with diligence and co-operation, with no ill-feelings among any
team or members within the team, ensuring that the work is done, without any snags.

3. Relation Between Company Management and Employees​:

Any industry with unhappy is going to be a failure even though not immediately but for sure
eventually and I for one consider employees are the backbone of any industry.

● The Company management is bound to exercise its powers towards the employees in a
balanced manner, ensuring respect for all persons and their dignity.

● The Company management shall issue provisions that are exclusively compliant with the
law and the principles of this Code and shall abstain from any harassment and/or
intimidation aiming to cause the breach of the aforesaid principles by the company
employees.
Proposed Code of Ethics for an Oil Industry 5

● On the other hand, the employees are bound to comply with the instructions issued by the
management and to execute them diligently, provided that such orders are not clearly in
contrast with the laws in force and/or the principles laid down in this Code; they shall
also report any situations which may be in contrast with the laws in force and/or the
principles of this Code.
● The management should never let a talent go unnoticed

● Every member should be assessed periodically and promote the member based on his/her
performance

● A deserving employee should never feel under-appreciated. The company should

External Relations

Any Industry Should have a great relationship with Customers, Suppliers, Government Officials
and people from Society in order to ensure proper and ethical working.

● Our code of Ethics is created in order to maximize the ethical behavior of Employees as
well as the Members of the Board of Directors towards the people in external relations.
● Every external relationship should be based on the values of Trust, Compassion and
Truthfulness.
● In Every external relation members of the Company should treat the people on the other
end with Utmost Dignity and Respect.
● In Every external relation under no circumstances especially by Board members,
Confidential information of the company should not be leaked as it will question the
Integrity of the Company.
● Moreover, members of the Company under no circumstances should never leak the
confidential information of the external relationship the company is part of.

1) Relationships with Suppliers and External Collaborators:

● The Selection of these Suppliers and External Collaborators such as Storage Warehouse
owners should be done only based on ethical parameters and it should not be based on
personal parameters such as extra personal gain of money (Commission), the Supplier or
the warehouse owner being a relative of the employee, etc.
● The Selection of Suppliers should be based on their product quality and it should conform
with the standards: UNI EN ISO 9001:2008, ISO 14001:2004 and OHSAS 18001:2007.
Other ethical parameters include their Performance, Efficiency, Value for Money, etc.
Proposed Code of Ethics for an Oil Industry 6

● The Selection of Storage Warehouses should be based on their ability of storing of our oil
products safely. Other ethical parameters will include the previously mentioned Value for
money, Efficiency, Performance, etc.
● Giving/Receiving gifts, donations or benefits of any kind with personal intentions should
be avoided by all members of the Company from the Suppliers as it questions the quality
of their product, which in turn questions the quality of our product and such an act puts
the quality and transparency of the business relationship with the Suppliers at stake.
Festive gifts can be given/received and such gifts should be based on full transparency
and the compliance with the Articles of Association and the legislation in Law of the
Country​.

2) Relationships with Customers:

Our Company aims to ensure full satisfaction of customers and such satisfaction should be given
with great Efficiency, Fairness and Professionalism.

● The members of the Company should inform Customers on all matters related to the
product including content, calorific value, hazards of product, etc. They should also be
informed of activities they should do if it is needed.
● The members of the Company should never promise results which can’t be achieved.
● The members of the Company should always attend to Customer needs through Customer
care portal or in private if they are in direct contact with the board members and they
should attend to their needs as early as possible.
● Even though Customer needs are prioritized by our Company, the relationship should
always be legal and it should be beneficial to the Company also.
● Similar to the relationship with suppliers, giving/receiving gifts, donations or benefits of
any kind with personal intentions should be avoided by the members of the Company.
Festive gifts can be given/received and such gifts should be based on full transparency
and the compliance with the Articles of Association and the legislation in Law of the
Country.

3) Relationships with Authorities and the public Administration​:

● In any event, members of the Company should ensure that the relationship with
Authorities such as Authorities determining the quality of our products, Income Tax
Officers and other relationships with Government Authorities should be managed strictly
in full compliance with laws and regulations of our country.
● The members of our Company should never work with personal intentions with Public
Administration as it puts the Company’s Integrity at stake and it will lead to many legal
problems.
● The members of our Company should refrain themselves from doing illegal activities
such as bribing even if it is requested by a higher government official and it should be
brought to the Company’s knowledge in order to take further legal actions.
Proposed Code of Ethics for an Oil Industry 7

● Giving/Receiving gifts, donations or benefits of any kind with personal intentions should
be absolutely avoided and even festive gifts should be given/received with caution when
it comes to relationships with Public Administration as misinterpreting good intentions
has a higher possibility in such a relationship.

4) Relationships with Competitors :

● In any event, the relationship with competitors should be ethical and it should be a
healthy competition.
● While advertising products, direct representation of competitors should be avoided to
ensure a healthy competition.

5) Relationship with the community and the environment

We strive to prevent and minimise our impact on the environment and on community

We recognise that oil exploration, development and production activities may have an impact on
the environment, biodiversity and also to people’s connections to and dependency on the
environment. We seek to prevent, minimise or mitigate any adverse impact that we may have.

Our Corporate Environment Policy is reviewed annually and establishes our commitment to
taking a precautionary approach, avoiding and mitigating negative impacts on the environment
and biodiversity. As such, we have introduced a series of procedures within our CRMs(Customer
Relationship Management) which requires environmental considerations to be taken into account
at every stage of our activities.

While we apply all local regulations, the CRMs also require us to consider industry good
practice, as defined by the International Association of Oil & Gas Producers (IOGP) guidelines
and Ministry of Petroleum and Natural gas,India(MoPNG)and practices, especially in locations
with little local regulation. This includes general environmental management and protection;
energy management and climate change; materials management; and emissions, water, waste and
noise management.

Climate Change

Our climate change strategy seeks to ensure we are able to adapt to current and future
climate risks and opportunities. Personnel and others who work with us must:

• Promote efficient use of energy and aim to reduce Greenhouse Gas (GHG) emissions
related to activities providing safety is not compromised.

• Seek to avoid or minimise emissions w-+

+hich may impact the climate.

Chemical Management

Our business requires the use of chemicals. We manage chemicals in accordance with the
rules and regulations formed by IOGP and also discard it in a way that it does not cause
any problems to the environment and its surroundings and also we do it in accordance of
rules and regulations formed by Ministry of environment forest and climate change and
also the Ministry of waste management . We strictly follow the rules laid by the IOGP

Water Management

We appreciate that our activities can impact on water resources and that access to clean
water is a key human right and of importance to local communities and the environment.
We take due consideration in protecting water quality and conserving fresh water
resources and resource management, production and delivery of process water,
collection, treatment, recycling and recovery of wastewater, effluent and products derived
from their treatment (organic matter, salts, metals, complex molecules and energy),
desalination of seawater all are done to ensure we use the water to atmost limits

Waste Management

Waste generated in our business is avoided and minimised in accordance with the waste
management hierarchy. We apply practices on Duty of Care and waste classification .
Regulatory thresholds for liquid waste and sewage effluent are becoming stricter. Our
company intends to reach zero liquid discharge which reduces the excretion of waste as
low as possible.

6) Relationship with press and other means of communication

Any communications with the media must be managed through the Corporate Affairs
Department. Our reputation and public image could be damaged if we make inaccurate or
misleading public statements. Our company has designated employees who are authorised to
represent our company to the media or respond to their enquiries or questions.

A Personnel must:

• Immediately direct any enquiry from the media to the Corporate Affairs Department.

• Not communicate with the media, either on or off the record, without prior authorisation from
the Department of Corporate Affairs.

• Comply with the requirements of the Group Social Media Policy when using social media.
Proposed Code of Ethics for an Oil Industry 9

• Not contact, or represent our company to any third parties or government organisations,
international organisations or non-governmental organisations without prior approval

All the matters which concern the matter of any problems faced by the industry must be cleared
as soon as they arrive with the help of the press and convey it to the public and ensure them that
nothing wrong .

7) ​Corporate Responsibility​:

● The Company should conduct an yearly fundraiser for an appropriate cause or a charity
Organization to increase the ethical spirit of the members of the Company.
● The Company will encourage the members once in every four years to donate a particular
amount of their salary to Orphanage and Old age homes.

Conclusion
Our Company legal and ethical obligations go far beyond what is included in our
Company’s Code of Conduct. We must comply with both the letter and the spirit of the many
laws and regulations that affect our business.

By creating a code of ethics we ensure that everyone in this company is clear on the
mission, values and guiding principles of the company. It provides employees with a framework
which rules exit, from a regulatory and law enforcement standpoint and how to act in the gray
areas of value-based ethics that are not always clear.

Here we addressed the reputation of delivering a quality product to its customers. That
reputation did not come about by accident. It has resulted from the core values of the Company,
as follows Safety, Customer Satisfaction, Reputation, Time, Performance Leadership, Agility.

If workers have any questions about either the Code of Ethics or the laws that might affect
the Company’s business, ask your supervisor or contact the General Counsel or you can speak in
Opeantalk. Remember, your best resource about what is right or wrong is your own conscience.
So, if you find yourself in a difficult situation, think before you act and ask yourself the
following questions:

Is it illegal? If it is not legal, do not do it.

Is it wrong?If it feels wrong, it probably is wrong.

Does it violate Company standards of ethics? What would your manager, coworkers or friends
say?

Even if workers have any problems to raise their questions in public. Then our Company
introduced a new scheme called OpenTalk. It is, the company's global helpline, is a confidential
Proposed Code of Ethics for an Oil Industry 10

way to get answers to your questions and to raise concerns. It is administered by an independent
company, is available every day of the week at any time, day or night, and can accommodate
calls in more than 75 languages. You can contact OpenTalk anonymously from most locations.
Any report you make will be kept confidential to the fullest extent possible consistent with law
and good business practices.

Even though Ethics is a growing priority for business leaders, they are struggling to
embed an ethical culture according to a recent CGMA(Chartered Global Management
Accountant) survey. To fully embed an ethical culture, organizations must improve training,
communication and leadership. The way in which these practices are embedded and
implemented is critical to the company's ability to gain the most from an ethical performance
culture. For that we included some methods to improve our ethical performance in the vision of
employers:

We ensure that every person in the company has clarity about their role, its importance and their
value, towards the compelling vision of the organisation. ‘People do what they are rewarded to
do’,

We made a reward system for members to encourage their hard work and dedication towards
the company. This will improve the performance in the vision of workers and also ethical
performance.

We set the tone from the top. By making senior management teams must show leadership and be
seen to live the organization’s ethical values. Only once that happens can employees get in step
and ensure the whole organization lives those values.

We will design a way to measure and tweak the culture, performance and productivity, to
achieve the holy grail of sustainable growth and profitability or viability in the case of
not-for-loss (our rewording of not-for-profits)

We will make a zero-tolerance approach to provide support routes for staff. For that we
developed clear routes for reporting suspected fraud and violation of company policies on ethical
behavior.

We frequently ensure the measure of effectiveness in our ethics program.

We fill the team with people who have a naturally strong code of ethics, and reinforcing this
with clearly defined work behaviors. This helps us to build a stronger team, and also it increases
productivity and creates a happier workforce.

These are the methods we made to improve ethical performance by decreasing unethical practice
and it will increase productivity.

All of us must always obey the letter and the spirit of the law, wherever we live or work. Each
of the countries where our company does business has its own laws, regulations and customs.
Sometimes there can be significant differences from one place to another and between regions
Proposed Code of Ethics for an Oil Industry 11

within a single country. However, no matter where we work, we are all responsible for
respecting all applicable laws, following the policies in our Code and protecting a workplace
atmosphere of mutual respect.

Our Company’s human rights policy reaffirms our longstanding support for universal human
rights. We condemn human rights abuses. This commitment is encompassed in The Company
Way vision and values and other corporate policies that ensure we operate safely and responsibly
and in compliance with applicable laws and regulations. Company’s position on human rights is
clearly laid out in our human rights policies. What are human rights? Human rights are rights
inherent to all human beings, regardless of race, gender, sexual orientation, nationality, ethnicity,
language, religion, economic or any other status. Although governments have the duty to protect
human rights, we recognize that our company has a responsibility to respect human rights and
can also play a positive role in the communities where they operate. All employees are required
to comply with our Human Rights Policy. This expectation includes the following actions:

Conducting yourself according to the values in The Company Way and according to the
commitments outlined in Human Rights Policy.

Understanding and obeying local laws and acting consistently with Company’s policies and
procedures

Reading and acknowledging this Business Conduct and Ethics Code.

Reporting noncompliance with Human Rights Policy

By making this type of Code of Ethics we will ensure that our company builds trust with
our clients, or employees, or partnering agencies. And also it sets the right culture, Builds a
good reputation, Helps remain in compliance with laws and regulations, Attracts outstanding
employees, Promotes social change. Thank you for your patient reading.