PJSC Tatneft. Annual report 2017
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PJSC Tatneft. Annual report 2017

Stakeholder engagement

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Stakeholders

Stakeholder engagement based on a systems approach, joint actions and a balance of interests is one of the key aspects of the Company's responsible business practices.

BASIC PRINCIPLES

  • The Company acts in accordance with the Social Charter of Russian Business and the Universal Declaration of Human Rights. We presume that everyone should have all the rights and freedoms set forth therein without distinction of any kind, such as race, color, sex, language, religion, political or other convictions, national or social origin, property, birth, or other status.
  • The Company does not allow any form of harassment or discrimination. The Company respects the rights of each employee to collective representation, including labor unions, while excluding any possibility of a hostile, humiliating or insulting atmosphere for human dignity.
  • Relations between shareholders, members of the Board of Directors, and the executive directorate of the Company are built on mutual trust and respect, conscientious fulfillment of duties thereof and realization of rights.
  • The Company equally respects equally the rights of its shareholders, regardless of the number of shares owned by them or where they are located. We maintain an effective dialogue with them, seek to justify their trust by fulfilling the stated obligations to develop the Company and ensuring the level of dividend payments.
  • The Company seeks to maintain a reasonable balance between short-term and long-term financial results of its operations and ensure a high credit rating and a proper level of liquidity of securities.
  • The Company openly informs shareholders, partners, employees, and other interested parties of its activities, ensuring the exercise of their right to receive full and reliable information in a regular and timely manner and in the forms established by current legislation and internal documents of the Company.
FORMS OF INTERACTION

Interaction with interested parties is carried out at all levels of the Company’s activities using mechanisms and forms appropriate to the scale and content of the tasks to be carried out in the area of mutual interests.

The Company builds relationships with a number of stakeholder groups (regional and federal authorities, trade unions, public and international organizations, business partners) on the basis of cooperation or partnership agreements.

AA1000SES (2015)

The Company is guided by the Stakeholder Engagement Standard AA1000SES (2015).

When concluding agreements and joint actions with interested parties, the Company conducts a negotiation process, allowing each party to state its position and jointly find a solution that suits both parties. The fulfillment of obligations is accompanied by monitoring, allowing each party to assess the effectiveness of interaction. The results of the implementation of agreements, as a rule, are discussed with interested parties, including at public events. The Company also provides feedback in the form of surveys, round tables, conferences, meetings, feedback channels, which allows to identify the satisfaction of stakeholders with various aspects of the Company's activities, including its products, services, social programs. Indicators for assessing the effectiveness of the system of interaction with stakeholders:

  • stakeholder evaluation (results of surveys, dialogues, proposals received);
  • monitoring the implementation of commitments undertaken by the Company.
PRINCIPLES FOR THE IDENTIFICATION AND SELECTION OF INTERESTED PARTIES

The Сompany identifies stakeholders based on:

  • determination of the degree of dependence of the parties on the activities of the Company and the parties to which the Company has obligations (under contracts, agreements and joint programs);
  • identifying stakeholders who have a high degree of influence on the Company's operations and performance;
  • identification of stakeholders for whom the most active response is required;
  • identification of stakeholders, cooperation with which is important given the strategic vision of the Company's development.

Issues of interaction with stakeholders are governed by relevant corporate documents and regulations.

CORPORATE STANDARDS AND REGULATIONS ON INTERACTION WITH SHAREHOLDERS

Shareholders Regulatory documents
All shareholders

Charter of Tatneft
Corporate Governance Code of Tatneft
Development strategy of the Tatneft Group for the period up to 2025
Regulations on the Information Policy of Tatneft
Operating procedure of the "Hot Line" of Tatneft Company
Policy of the Tatneft Group in the field of industrial safety, labor protection and environment
Anticorruption policy of Tatneft Company

Regulators

The company takes part in the work of official bodies and expert platforms where issues and bills related to the oil and gas industry are discussed.

Shareholders

Regulation on the General Shareholders' Meeting of Tatneft
Regulation on the Board of Directors of Tatneft
Regulations on the committees of the Board of Directors of Tatneft
Regulation on the Corporate Secretary
Regulation on the dividend policy of Tatneft
Regulation on provision of information to shareholders of Tatneft
Regulation on the use of insider information and the procedure for informing about transactions with securities

EC3
Employees

Tatneft Code of Corporate Culture
Human resources policy
Standard of staff recruitment and transfer to another job
Regulation on mentorship
Standard of work with the personnel reserve
Personnel appraisal standard
Training and development of personnel standard
Labor discipline standard
Employee awarding standard
Standard for providing information on the turnover rate
Internal code of conduct for employees
Regulation for preparing and holding employee conference
Regulation on the insurance of employees against occupational accidents
Regulation on the organization of employee health and resort treatment and recreation
Regulation on the industrial safety management system
Production safety management system
Regulation on industrial control over compliance with industrial safety requirements at hazardous production
facilities
Procedure for organizing preliminary and periodic medical examinations of employees engaged in heavy, harmful work
and work with hazardous and/or dangerous production factors
System of personal responsibility of workers for the safety of work
Regulation on the allocation of loan funds for the construction of individual housing

Trade union

Collective agreement standard
Regulation on the committee (commission) on labor protection
Labor protection agreement

EC3
Veterans and pensioners

Regulation on the organization of non-state pension provision for employees
Regulation on the organization of health and resort treatment of nonworking pensioners and disabled workers
Corporate project of targeted assistance to pensioners

Business partners

Standard on the procedure for registration of suppliers of goods (works, services)
Regulation of material and technical support of structural subdivisions and subsidiaries
Regulation on the organization of contract work
Regulation on the organization of procurement of goods using an electronic trading platform
Regulation on work in "Tatneft's trading and purchasing platform" system
Corporate standard on the procedure for accreditation of potential suppliers when organizing the purchase of
goods using the electronic trading platform
Regulation on the order of interaction of the Company's subdivisions for the consideration of complaints coming to
Tatneft's trading and purchasing platform hot line
Regulation on the organization, management, and automated recording of claims and lawsuits
Regulation on the organization of procurement of goods from enterprises producing unique (custom-made) goods
(manufacturers-monopolists)
Regulation on organization of safe production of works performed by third parties at the Company's facilities
Standard of the organization "Requirements in the field of ensuring environmental safety to the organizations
involved in the work and provision of services at the Company's facilities"
Standard of interaction of the Company with external service enterprises in providing services
Standard of the Company's investment and technical policy on expansion of the types and improvement of the
quality of oil services
Regulation on the introduction and approval of changes made to the schemes of production facilities that define
the boundaries of the responsibility sections of service companies and structural divisions in providing services to
the Company
Regulation on customer information technology service
Regulation on the bidding process (tender) for placing orders for the supply of goods, performing work, providing
services for the Company's needs
Regulation on precompetitive and postcompetitive work arrangements for the supply of goods, performing works,
providing services for the Company's needs
Regulation on organizing the marketing evaluation of materials and equipment with material and technical support

Consumers

Regulation on "Tatneft" trademark and the rules of its use
Standard "Production control of products and technological processes"
Standard "Final inspection and testing of products"
Procedure for consideration of claims and requests of consumers of tire products
Procedure for collecting and processing information on the customer satisfaction
Charter of customer service at gas stations
Rules of the Company's trading practices with respect to the sale of diesel fuel in the Russian Federation

Local communities and public organizations

Agreements with city and township administrations in regions of operation
Regulation on work with alumni of boarding schools and orphans in specialized education institutions
Corporate project on supporting development of small and medium business of the Republic of
Tatarstan
Regulation on the Company's participation in public organizations

BUSINESS PARTNERS, SUPPLIERS, CONTRACTORS

The Сompany aims to create and maintain long-term and stable relations with business partners, suppliers, counterparties, investors and other stakeholders based on mutual trust, full commitment, openness and flexibility, exchange of experience and mutual support.

Principles of interaction with partners, suppliers and contractors:

  • The Company undertakes to adhere to these principles of mutual benefit and develop business relations taking into account the interests of all its partners, counterparties, and stakeholders.
  • The Company does not enter into relations with persons using illegal and/or unethical methods of doing business.
  • The Company makes decisions on the acquisition or sale of goods or services, placing orders and contracts by assessing their quality and price, as well as comparing proposals of the competing organizations. To avoid a conflict of interests, employees of the Company interacting with customers and suppliers are obliged to avoid any participation in the preparation and adoption of a decision in which they are interested directly or indirectly.
  • In its activities, the Company is guided by legislation that regulates competition, supports free competition and entrepreneurship, and pursues a fair open policy with respect to the competing organizations.
  • The Сompany seeks to assess new suppliers on the basis of labor practices, respect for human rights, and impact on society (to avoid potential negative impacts on society in the supply chain).
  • The Сompany takes into account the criterion "marking products and services" and conducts appropriate procedures to control the necessary information about the properties of products and services for which information requirements are applied in order to avoid instances of non-compliance with regulatory requirements and voluntary codes.
  • The Сompany takes into account the environmental assessment criterion when selecting suppliers and customers in order to avoid significant actual and potential negative environmental impacts in the supply chain.
  • When choosing strategic partners, the Company proceeds from the understanding that the parties in the common interests, in the interests of shareholders, the state and society as a whole, strive to implement a sustainable development policy and to take the most natural-resource and environmental concerns.

The Company never hires agents to commit acts contrary to the above principles and requirements.

EMPLOYEES

A high level of professionalism of employees, their adherence to the corporate interests, responsibility and trustworthiness, as well as desire and ability to work as a team are the key to successful activity and development of the Company. That is why the Company strives to create all the necessary conditions for comfortable workplace, while fulfilling the potential of each employee.

The Company’s objectives with regard to employees are as follows:

  • Attraction and consolidation of bright, talented people—the best professionals.
  • Creating the most favorable conditions for professional growth and creative development of employees, providing a comfortable work environment based on mutual trust and respect.
  • Combining the professional skills, abilities and creative potential of the Company’s employees, which will allow the Company to build a corporate culture based on a solid foundation and stimulating new opportunities for development of the highly efficient business.
  • Developing each employee’s personal sense of responsibility for operational activities and the Company’s reputation.
  •   Creating an effective system of compensation for employees, which will allow an objective assessment of each employee’s contribution.

The Company lays a great emphasis on the tolerance and formation of an auspicious psychological climate in the workforce. Trust is built on mutual respect and tolerance, regardless of an employee’s position. Everyone is valued for professionalism, knowledge, experience, and interest in development and growth.

Employees are entitled to conduct an open and constructive discussion of the quality and effectiveness of their work, the work of their division, and the Company as a whole. They are also empowered to make proposals aimed at improving the efficiency of team work. At the same time, employees have the right to rely on the reasonable and necessary attention of the Company to their personal circumstances while performing their official duties.

All employees, regardless of their positions, are obliged to:

  • Use the Company’s assets only to strengthen and develop the Company’s business, without seeking self-profit by abusing their official position.
  • Strictly adhere to the requirements of legislation, this Code and other local regulations, which are included in employment contracts with them.
  • Fulfill their official work duties in full, reasonably and conscientiously.

The Company takes care of the well-being and social security of its employees and their families, provides various forms of insurance, and implements social programs. The Company supports veterans, pensioners, disabled workers, and families of workers injured while at work.

The main stakeholders, depending on the degree of influence on the activities of the TATNEFT Group and the degree of influence of the Company on their livelihoods, are grouped into two areas. The areas of significant influence include stakeholders who may significantly affect the activities of the TATNEFT Group or whose interests significantly affect the Company's activities. These are internal stakeholders, shareholders and investors, consumers and customers, business partners, government bodies. The areas of limited influence include public organizations, investment analysis and rating companies, the media, specialized institutions of higher and secondary vocational education, and local communities, that is, those stakeholders whose interests may be affected by the Company's activities in part or which may have an indirect effect on Company.