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Introduction

This document reaffirms the general business principles on which the conduct of the affairs of
the Royal Dutch/Shell Group of Companies is predicated. They apply equally to corporate
decision?making as to the individual behaviour expected of employees in conducting Shell
business. They are commended to staff of the Service Companies in London and The Hague as
well as to management of Operating Companies.

The Group is typified by decentralized, highly diversified and widespread operations, with which
operating companies are given wide freedom of action. However, the upholding of the Shell
reputation is a common bond which can be maintained only by honesty and integrity in all
activities. A single failure, whether it be wilful or due to misplaced zeal, or short term expediency,
can have very serious effects on the Group as a whole.

These principles have served Shell companies well for many years and will continue to do so in

the future. The statement is available for wide distribution within the Royal Dutch/Shell Group
and merits periodic re?reading. It may be exhibited externally as required.

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L.C. van Wachem

Chairman of the Committee of Managing
Directors of the Service Companies

June 1990

 

 

 

Royal Dutch/Shell Group
of Companies

Statement of
General Business Principles

1. Objectives

The objectives of Shell companies are to engage efficiently, responsibly and profitably in the
oil, gas, chemicals, coal, metals and selected other businesses, and to play an active role in the
search for and development of other sources of energy. Shell companies seek a high standard of
performance and aim to maintain a long term position in their respective competitive
environments.

2. Responsibilities

Four areas of responsibility are recognized:

a) shareholders
To protect shareholders? investment and provide an acceptable return.

b) To employees

To provide all employees with good and safe conditions of work, good and competitive terms
and conditions of service; to promote the development and best use of human talent and equal
opportunity employment; and to encourage the involvement of employees in the planning and
direction of their work, recognizing that success depends on the full contribution of all
employees.

0) To customers

To develop and provide products and services which offer value in terms of price and quality,
supported by the requisite technological and commercial'expertise. There is no guaranteed
future: Shell companies depend on winning and maintaining customers? support.

d) To society

To conduct business as responsible corporate members of society, observing applicable laws of
the countries in which they operate giving due regard to safety and environmental standards and
societal aspirations.

These four areas of responsibility are seen as inseparable. Therefore, it is the duty of management
continuously to assess the priorities and discharge its responsibilities as best it can on the basis
of that assessment.

3. Economic Principles

Profitability is essential to discharging these responsibilities and staying in business. It is a
measure both of efficiency and of the ultimate value that people place on Shell products and
services. It is essential to the proper allocation of corporate resources and necessary to support

 

 

 

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the continuing investment required to develop and produce future energy supplies to meet
consumer needs. Without profits and a strong financial foundation it would not be possible to
fulfil the responsibilities outlined above.

Shell companies work in a wide variety of social, political and economic environments over the
nature of which they have little in?uence, but in general they believe that the interests of the
community can be served most efficiently by a market economy.

Criteria for investment decisions are essentially economic but also take into account social and
environmental considerations and an appraisal of the security of the investment.

4. Voluntary Codes of Conduct

Policies of Shell companies are consistent with the two existing internationally agreed voluntary
codes of conduct for multinational enterprises, namely the OECD Declaration and Guidelines
for International Investment and Multinational Enterprises and the ILO Tripartite DeclaratiOn
of Principles.

5. Business Integrity

Shell companies insist on honesty and integrity in all aspects of their business. All employees
are required to avoid con?icts of interest between their private financial activities and their part
in the conduct of company business. The offer, payment, soliciting and acceptance of bribes in
any form are unacceptable practices. All transactions on behalf of a Shell company must be
appropriately described in the accounts of the company in accordance with established
procedures and be subject to audit.

6. Political Activities

a) Companies

Shell companies endeavour always to act commercially, operating within existing national laws
in a socially responsible manner, abstaining from participation in party politics. It is, however,
their legitimate right and responsibility to speak out on matters that affect the interests of
employees, customers and shareholders, and on matters of general interest, where they have a
contribution to make that is based on particular knowledge.

b) Political payments
As a policy Shell companies do not make payments to political parties, organizations or their
representatives.

c) Employees

Where employees, in their capacity as citizens, wish to engage in activities in the community,
including standing for election to public office, favourable consideration is given to their being
enabled to do so where this is appropriate in the light of local circumstances.

7. Environment

It is the policy of Shell companies to conduct their activities in such a way as to take foremost
account of the health and safety of their employees and of other persons, and to give proper
regard to the conservation of the environment. In implementing this policy Shell companies not
only comply with the requirements of the relevant legislation but promote in an appropriate
manner measures for the protection of health, safety and the environment for all who may be
affected directly or indirectly by their activities.

 

 

 

 

Such measures pertain to safety of operations carried out by employees and contractors; product
safety; prevention of air, water and soil pollution; and precautions to minimize damage from
such accidents as may nevertheless occur.

8. The Community

The most important contribution that companies can make to the social and material progress
of the countries in which they operate is in performing their basic activities as efficiently as
possible. In addition the need is recognized to take a constructive interest in societal matters
which may not be directly related to the business. Opportunities for involvement for example
through community, educational or donations programmes will vary depending upon the size
of the company concerned, the nature of the local society, and the scope for useful private
1n1t1at1ves.

9. Information

The importance of the activities in which Shell companies are engaged and their impact on
national economies and individuals are well recognized. Full relevant information about these
activities is therefore provided to legitimately interested parties both national and international,
subject to any overriding consideration of confidentiality proper to the protection of the business
and the interests of third parties.

10. Application

The reputation of the Royal Dutch/Shell Group of Companies depends on the existence and
knowledge of clearly understood principles and responsibilities and on their observance in day
to day practice in widely different environments. Individual operating companies may elaborate
their own statements to meet national situations, but this Statement of General Business
Principles serves as a basis on which companies of the Royal Dutch/Shell Group, in their
operations, pursue the highest standards of behaViour.

Group companies are involved in many joint ventures. Shell companies participating in a joint

venture will promote the application of these principles and will take into account their ability
to do so in deciding whether to participate in any joint venture.

Printed in England by Shell Reprographics, London 53782/10m/7.90