Priorities

To us, Corporate Responsibility is about how we manage the interaction between financial growth, the environment and society. This is based on the expectations of our shareholders and other stakeholders in relation to our financial performance, risk management, and wider environmental and societal concerns.

To identify and manage these environmental, social and economic issues, we need to listen to those who are affected by our activities. We therefore place significant emphasis on our business risk management and stakeholder engagement processes.

During 2010, we concentrated on 10 priority areas, which affect the economic, environmental and social performance of our business, as outlined below.

How We Operate

Business Ethics

Operating ethically has always been integral to the way in which Cairn has done business. Our commitment to honesty and integrity is even more important given our global reach. We must always be vigilant about corruption; not only can it damage our economic performance and our reputation, it can also have a devastating impact on poorer communities in the countries where we operate.

Our anti-bribery and corruption management system and processes have been updated in line with the requirements of the UK Bribery Act, and a training programme was initiated ahead of the Act coming into force on 1 July 2011.

Stakeholder Engagement

Our activities are wide ranging and the way in which we carry them out is influenced by many different stakeholders, from the local communities where we operate, to employees, regulators, suppliers and investors. To be successful, and to achieve our business goals, it is imperative that we nurture an open dialogue with all our stakeholders, and strive to build strong and lasting relationships.

Continual Improvement

The goal of achieving continual improvement drives everything we do. It's a priority within all areas of the business and something we are constantly monitoring, testing and assessing. For instance:

  • we set annual business performance objectives and targets – including those related to CR;
  • we regularly review the risks associated with our operations;
  • we investigate and learn from health, safety, security or environmental incidents both in our activities and in the wider industry; and
  • we listen and act upon any grievances from our employees and the communities where we work.

Environment

Environmental Impact

At Cairn, we recognise that we have a responsibility to minimise any impact our operations may have. We have introduced stringent measures, from initial impact assessments to waste management, and, in the event of any unplanned incident, we have comprehensive emergency response and oil spill contingency plans in place.

Climate Change

Cairn is in the business of energy and we believe it is essential for social and economic progress. We also acknowledge that climate change is a complex, global issue with many causes (both natural and man-made) and that we can help to limit our impact by following the principles outlined in our climate change strategy.

Our People

Employee Development

Using the skills and knowledge of our people helps to give Cairn a competitive edge. We aim to create a working environment that adds value by empowering people to develop the ideas that will drive the business forward. We encourage teamwork and seek to ensure that continual learning is the norm.

Labour Practices

Our Business Principles, HR Policies and procedures ensure that we behave responsibly towards people and work with employees to develop their potential. We foster a workplace that respects personal dignity, is non-discriminatory, and provides fair rewards along with a healthy, safe and secure working environment.

Health and Safety

The nature of our work carries inherent risks, and the environments in which we operate can be challenging. We are therefore committed to a comprehensive health and safety strategy, which protects the wellbeing of everyone who comes into contact with our operations. We also aim to create a healthy, supportive working environment, which can help to cut absenteeism, as well as boost morale.

Communities and Suppliers

Community Development

Our operations are often long term, so developing strong, supportive relationships with local communities is crucial. We recognise that our work can have an impact on communities and sometimes our operations can potentially disrupt their way of life. Our goal is to ensure that our impact is positive, by promoting economic development, employment and trade for local businesses. Additionally, we work outside our core areas to support community projects around health and education.

Human Rights

Support and respect for human rights are integral to any responsible business. At Cairn, we recognise human rights as fundamental and work to preserve the rights and conditions of all our stakeholders, including employees, suppliers and those affected by our activities. It is a concept that is enshrined throughout the business and encapsulated in our Human Rights Handbook.