06.03.2014 angloamerican business integrity policy and its application within the business globally,...
TRANSCRIPT
OBJECTIVES AGENDA An Introduction to Anglo American as Company
Anglo American’s Values
Anglo American’s stance on corruption and anti-bribery policy
The impacts and consequences of corruption
The definition of bribery
Anglo American’s exposure to bribery risk
Recognising and dealing with bribery risk
The Individual’s roles and responsibilities – Business Integrity Training
Speak up – our anti-corruption hotline
ANGLO AMERICAN AT A GLANCE Anglo American is one of the top 5 diversified global mining
companies
Global Headquarters: London
Stock Exchange Listings: London and Johannesburg
Employees plus contractors: ~ 150,000
Gross revenue in 2013: US$33.0 billion
Operating Profit 2013: US$6.6 billion
A GLOBAL PLAYER
Platinum
Diamonds
Copper
Nickel
Iron Ore and Manganese
Thermal Coal
Corporate offices
Key
Headquarters
Metallurgical Coal
Other Mining and Industrial
Headquartered in London with 95 mines and advanced projects worldwide
• Diamonds: Be Beers is the Global leader with 35-40% of global
rough diamond production by value
Snap Lake Diamond Mine Northern Canada
ANGLO AMERICAN - CORE COMMODITIES
• Metallurgical and Thermal coal: 3rd largest coking coal exporter
globally
ANGLO AMERICAN - CORE COMMODITIES
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THE CONTEXT OF BUSINESS INTEGRITY
Safety and
Sustainable
Development
Employment and
Labour Rights Community
Development and
Human Rights
Business
Integrity
Good Citizenship Business Principles
“Zero tolerance and implacable opposition to corruption”.
The Anglo
American
Safety Way
The Anglo
American Social
Way
The Anglo
American
Environmental Way
Business
Integrity
Policy
Policies
“We will neither give nor accept bribes nor permit others to do so in our name. We
aim to operate to the same level of integrity wherever we work.”
Anglo Values
“This means taking an honest, fair, transparent and ethical approach in everything
that we do. It’s not about being popular; it’s about always doing the right thing.”
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THE IMPACTS OF CORRUPTION
“Corruption is an insidious plague that has a wide range of
corrosive effects on societies. It undermines democracy and the
rule of law, leads to violations of human rights, distorts markets,
erodes the quality of life and allows organised crime, terrorism and
other threats to human security.
Corruption hurts the poor disproportionately by diverting funds
intended for development, undermining the government’s ability to
provide basic services, feeding inequality and injustice, and
discouraging foreign investment and aid.”
Kofi Annan, Former Secretary-General of the United Nations.
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BAD FOR BUSINESS
Social instability
Cost of doing
business increased
Corruption begets
ever more corruption
– the slippery slope
Unlevel playing field/
Loss of business to
competitors
Uncertainty
Prosecution
Bureaucracy
encouraged
Investment
discouraged
Blackmail
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UK BRIBERY ACT 2010
Came into force 1 July 2011
Gold standard in anti-bribery legislation
New corporate, strict liability offence: failing to prevent bribery (unlimited fines)
Extraterritoriality: Prosecution regardless of where bribery takes place
Sole defence: “Adequate Procedures” (bribery prevention measures) including anti-corruption training & due diligence
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ACTING WITHOUT INTEGRITY - CONSEQUENCES FOR COMPANIES
Criminal fines
Civil fines
Legal fees
Invalid contracts & licences
Monitoring & compliance costs
Debarment/Exclusion
Reputational damage
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DEFINING BRIBERY
Promising, offering or giving a benefit to another
person (or entity), whether directly or through an
intermediary, to influence that person (or another
person), to act in breach of their business or
public duties.
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DEFINING BRIBERY
“Promising, offering or giving…”
Includes authorising,
cooperating, covering up,
turning a blind eye, soliciting
accepting.
“…a benefit to influence…”
Anything of value: Cash, gifts,
entertainment, offers of employment,
charitable contributions, bursaries,
memberships, allowing use of
company assets
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FORMS A BRIBE CAN TAKE
Bribes
Cash
Gifts
Hospitality
Use of company
assets
Offer of employment
Information Political donation
Charitable donation
Sponsorship
Social investment
Membership
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DEFINING BRIBERY
“Promising, offering or giving…”
Includes authorising,
cooperating, covering up,
turning a blind eye, soliciting
accepting.
“…a benefit to influence…”
Anything of value: Cash, gifts,
entertainment, offers of employment,
charitable contributions, bursaries,
memberships, allowing use of
company assets
“…whether directly or through an
intermediary…”
Anglo American is responsible for the
actions of those that work on its behalf
“… to act in breach of public or
business duties …”
Providing an improper
advantage to the recipient: a
contract, a licence, planning
permissions, customs
clearance, insider information
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DEFINING EXTORTION
Extortion is the crime of obtaining money or
some other thing of value by the abuse of one's
office or authority.
Extortion, involves the verbal or written threat that something will
happen to the victim if he or she does not comply with the
extortionist's will.
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A COMPANY’S RISK EXPOSURE TO CORRUPTION
• Sales
• Exports
• Licences
• Utilities
• Customs
• Lobbying
• Purchases
• Imports
• Project Approvals
Community Leaders Suppliers
Customers Public
Officials
Use of
Agents
Social
Spend
Gifts &
Hospitality
Use of
Agents
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MEASURING CORRUPTION
9.0 – 10
8.0 – 8.9
7.0 – 7.9
6.0 – 6.9
5.0 – 5.9
4.0 – 4.9
3.0 – 3.9
2.0 – 2.9
1.0 – 1.9
0.0 – 0.9
No data
VERY CLEAN
HIGHLY CORRUPT
HOW DO WE EMBED BUSINESS
INTEGRITY INTO THE WIDER COMPANY
1) BY HAVING A BUSINESS INTEGRITY POLICY
AND PERFORMANCE STANDARDS
2) BY TRAINING ALL STAFF TO RECOGNISE
AND ADDRESS CONFLICTS OF INTEREST
AND CORRUPT BEHAVIOURS
3) BY ENCOURAGING OUR STAKEHOLDERS TO BE
INVOLVED IN BUSINESS INTEGRITY ISSUES
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BUSINESS INTEGRITY PERFORMANCE STANDARDS
A: Gifts, Entertainment and Hospitality
B: Conflicts of Interest
C: Facilitation Payments
D: Use of Company Assets
E: Political Donations
F: Interactions with Government Officials
G: Charitable Donations
H: Social and Community Investment and Enterprise Development
I: Sponsorship
J: Retention and Payment of Intermediaries
K: Mergers, Acquisitions, Joint Ventures and Associates
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(A) GIFTS AND HOSPITALITY – KEY PRINCIPLES
Written disclosure and approval required for all gifts, entertainment and hospitality exceeding your function’s reporting threshold.
You are accountable for determining the acceptability of gift and hospitality exchange regardless of the threshold.
Key considerations for acceptability include: business purpose, timing, proportionality, reciprocity, counterpart permissions.
Be extra careful when dealing with government/public officials (including employees of state-owned entities)
Could the perception be created that objectivity is compromised?
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1) Is my course of action consistent with Anglo American’s values,
principles and business integrity policy?
2) Am I setting a good example?
3) Am I being transparent?
4) Have I sought appropriate advice?
5) Would my actions cause embarrassment to the company or myself
if they were to become public knowledge (remember, even if your
actions are not strictly illegal they could be damaging to Anglo
American’s reputation)?
SELF-CHECK QUESTIONS
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1) What factors give rise for concern from a business integrity perspective?
2) What action should you consider taking and why?
a) Keep the gift;
b) Share the gift with your team;
c) Return the gift to the potential supplier;
d) Raffle the gift off for charity.
3) Would your decision be different if:
a) The gift was just one bottle of wine; or
b) The gift was from an existing supplier?
AN UNEXPECTED GIFT (A, B)
You are due to award a procurement contract before 20th December. You
have a meeting with one of the potential bidders on 10th December. The
next day you receive a case of expensive champagne with the note,
“Thank you for our meeting. We would look forward to working with you.
Merry Christmas.”
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1) What factors give rise for concern from a business integrity perspective?
2) On what basis could you agree to facilitate the trip for the official?
A REQUEST FROM A GOVERNMENT OFFICIAL (A, F)
You are in discussions with a government official over the results of an
environmental impact report commissioned as part of the permitting
process required for a project in Mongolia. During the meeting he says that
he has heard relatively positive comments about Anglo American
operations but he is still concerned about the environmental impacts of
mining. He then asks if he and three of his colleagues could visit some of
Anglo American’s operations and talk to the local communities, perhaps in
South Africa?
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(B) CONFLICTS OF INTEREST – KEY PRINCIPLES
Transparency through disclosure of conflicts of interest are fundamental to maintaining a reputation for professional integrity.
Conflicts of interest can arise in various situations include outside jobs and activities, relationships and investments.
All actual, potential or perceived conflicts of interest should be avoided or promptly disclosed or managed.
The disclosure and management of conflicts on interest should be fully documented.
Certain “interests” are prohibited and others require prior approval. Ensure that you are clear on the Business Integrity Policy requirements.
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REQUIREMENTS OF PERFORMANCE STANDARD B
Prohibited Prior Written Approval Disclosure as potential, actual or
perceived conflict arises
Outside Jobs and
Directorships
- An employee must never perform services for anyone or any organisation that they deal with as part of their job for Anglo American. - Employees must never engage in outside jobs or directorships that compromise an employee’s ability to devote their principle energies to Anglo American.
- Required for outside employment, directorships , running for public office or similar activities.
- Required if you are considering assuming an outside directorship position; and additional job, or providing services to a third party.
Activities and
Affiliations of
employees or their
close
friends/relatives
- Political donations of all types (including working time) are prohibited. - Activities that compromise an employee’s ability to devote their principle energies to Anglo American are prohibited.
- Required for employees that wish to utilise company time or other company assets to support any outside activities or affiliations (e.g. Charities).
- Required if you, your close friend or relative works for a charity or other organisation that Anglo American currently provides or is looking to provide support to (financial or otherwise). - Required if you, your close friend or relative is affiliated to an NGO or other type of group that impacts Anglo American.
Relationships of
employees or their
close
friends/relatives
with third parties or
each other
- An employee should not be in a position where they are able to hire, supervise, affect terms and conditions or employment or influence the management of any close relative. - Close friends or relatives of Anglo American employees should not have business dealings with the employees or anyone reporting to them.
- Required if your close friend or relative performs services for a customer, supplier, competitor or other stakeholder. - Required if you, a close friend or relative has, commences or is considering commencing, a close personal relationship with your manager, somebody that reports to you or with the employee of an actual or potential customer, supplier or competitor or other relevant stakeholder.
Investments held by
employees or their
close
friends/relatives
- Personal investment decisions must not be made on the basis of material, non-public information acquired through an employee’s work for Anglo American. - An employee, their close friend or relative, must never invest (directly*) in a customer ,supplier, or other entity that Anglo American contracts with if the employee, or anyone that they supervise, is responsible for, and has any involvement, with the selection or assessment of, negotiations or general dealings with the supplier, customer or entity.
- Required for any (direct*) material investment (any economic interest that might influence or be perceived to influence your judgement) in a competitor, customer, supplier or other entity that Anglo American contracts with.
- Required if you, a close friend or relative, have a direct* material investment in a customer, supplier or other entity that Anglo American is seeking to contract with.
*DIRECT INVESTMENTS: Performance Standard B only relates to investments which are held directly. Investments which are indirectly held via pension schemes or mutual funds, for example, where the employee has no discretion or influence over the investment decisions made, are not relevant.
Gifts and
entertainment
-Various exclusions apply. See performance Standard A of the Business Integrity Policy and any department, function or Business Unit specific Gifts and Hospitality that may apply.
Gifts and entertainment that exceed the threshold established by the Business Unit or corporate function.
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(E) POLITICAL DONATIONS (INCLUDING ACTIVITIES AND
CONTRIBUTIONS BY EMPLOYEES)
Anglo American will not make political donations, whether in cash or kind, anywhere in the world. If you receive a request for a political donation immediately notify you Business Integrity Champion and the Business Integrity Department.
If you participate in a personal capacity in a political process, it is your responsibility to make clear in doing so that: - You do not represent Anglo American; - Your views and actions are your own; and - Any financial or other contributions are given personally.
If you are intending to run for public office, prior approval is required (from the person designated (by your head of Department) as this constitutes a potential conflict on interest.
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HELP AND SUPPORT
When I have a Business
Integrity dilemma
If I am unable to obtain an
answer or want to discuss
and issue with someone
outside of my department
If I know or reasonably
suspect a Business Integrity
issue
Consult with:
Business Integrity Champion
Business Integrity Compliance Department
Refer to/consult with:
Self-Check Questions
Quick Reference Guide
Business Integrity Manual
Line Manager/Nominated Contact
Report to:
Your Line Manager
Your Head of Department
Business Integrity Champion
Business Integrity Compliance Department
Speakup
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REPORTING A BUSINES INTEGRITY ISSUE ANONYMOUSLY
Speakup VISIT: www.anglospeakup.com
EMAIL: [email protected]
PHONE: +27 31 571 5408
OBJECTIVES CONCLUDING REMARKS Anglo American’s stance on corruption is clear and uncompromising and embedded in
our corporate values
The impacts and consequences of corruption are severe
We define bribery and extortion and address our response to it
Anglo American has analysed its exposure to corruption and undertakes regular risk
assessments
We train staff how to recognise and deal with bribery and corruption risks
Each staff member is trained in their individual roles and responsibilities
Business integrity coaches are available to help
Anti-corruption hotlines are available to the general public to report issues to
Anglo American management