Principles and Policies
Cairn has had specific, Group-wide policies for health, safety and security (HSS), the environment and Corporate Social Responsibility (CSR) since 2002. Endorsed by the Board, these policies establish the principles by which the Company conducts its operations.
Our fundamental values and our approach to managing CR in accordance with these policies are described in our Business Principles.
Business Principles
Our Business Principles expand upon the 3Rs, give further definition to our policies and the international standards to which we look to comply, and support the Company's decision-making process. They are divided into a core and an overarching principle, and three principles focused on people, the environment and society (see diagram below).
These principles are implemented by Directors, officers and employees of the Cairn Group and subsidiary companies, and others who work on our behalf, in accordance with our HSS, Environment and CSR Policies.
Together, our policies and Business Principles lie at the heart of our business conduct. They are shared with all staff, partners, suppliers and contractors to promote a sustainable business culture and are available to download from our website.
Our Principles and Policies
Cairn Business Principles (Oct 2010)
Health, Safety & Security Policy (July 2011)
Environmental Policy (July 2011)
Corporate Social Responsibility Policy (July 2011)
Managing Corporate Responsibility
To support the delivery of the commitments made in our policies and Business Principles, we implement a Group-wide Corporate Responsibility Management System (CRMS), supported by detailed procedures and guidelines.
The CRMS includes our performance standards, which define our expectations for achievement based on behaviour that is honest, fair and with integrity, and help to continuously improve our business performance. They govern our work as well as our relationships with contractors and other business partners.
The Group CRMS also provides the mechanisms that:
- allow us to identify, assess and implement measures to mitigate CR risks;
- assess CR requirements through a gated process at key milestones during the project life cycle;
- guide how we monitor and report our CR performance, conduct reviews and audits, and, in the event of accidents or incidents, conduct investigations, identify causes and rectify deficiencies; and
- identify our legal and regulatory requirements, and inform any plans needed to ensure compliance.
Applying the Group CRMS to all our business activities is essential in maintaining our ‘licence to operate' and our business reputation.
Through implementing the CRMS, we aim to recognise and manage potential CR impacts, and encourage a culture of openness and continuous improvement.
Updating our CRMS
One of our 2010 CR objectives was to update our CRMS, to ensure it remains consistent with good practice and international standards.
Working jointly with Cairn India's Health, Safety, Environment and Quality Department, we held a series of CR workshops in Edinburgh, at the Mangala Processing Terminal in Rajasthan, and in Cairn India's head office in Gurgaon, to engage with all levels of the organisation and identify possible improvements in how we manage CR in the business. The outcome is a new Cairn Business Management System, which matches the way Cairn is organised (i.e. a matrix organisation with assets supported by functional departments).
The new CRMS framework, finalised in March 2011, is aligned with the new Business Management System and is divided into four parts, as shown below. These cover all activities, and define the roles, responsibilities, accountability and capability within each element of the business.
In line with our commitment to continual improvement, a gap analysis was completed between the updated CRMS and the new ISO 26000 guidelines, which identified that some of our supporting procedures and guidance needed to be updated. Revised procedures on stakeholder engagement and human rights were drafted during the first half of 2011.
In May 2011, an external audit was conducted to assess the appropriateness of the design and implementation of the CRMS in managing and mitigating strategic CR risks and, in particular, the CR risks associated with the 2011 Greenland Drilling Project. No significant shortcomings were identified, and an action plan is in place to address the areas identified for improvement.
We are also progressing with the development of the new ‘gated process’ tools to specifically identify and address any CR gaps in policies, standards and procedures for future projects.