We aim to make a positive contribution, by delivering tangible benefits to our stakeholders. These include the governments that invite us to work in their countries, the communities that give us our social licence to operate and the workforce whose expertise we rely on to create value. We distribute value through payments to employees, contractors and suppliers; through taxes and duties; and by promoting social and community development in our host countries.
Increasing standards and expectations
Our industry faces continued pressure on cost-efficiency in an environment where the oil price remains volatile. While our business remains focused on efficient capital allocation and operating costs in our projects, it is important that this does not compromise our commitment to working responsibly.
We recognise the ongoing need to improve our standards of operation. To maintain our ‘licence to operate’, we track and apply best practices in the way we do business. These directly influence our Corporate Responsibility Management System (CRMS).
Increasingly, providers of capital want to ensure that the highest CR standards are adhered to. We continue to seek improvements in our CRMS to reflect changing standards and stakeholder expectations. This included creating a more concise Code of Ethics in 2017, which integrated our previous Code of Business Ethics and Business Principles. We improved the integration and the review mechanism for our risk management system.
Cairn often seeks to engage in new investment opportunities and locations. Our CRMS requires us to understand the CR risks and determine whether we accept them with appropriate mitigation, or reject them. Although some opportunities may be financially attractive, we may judge them to represent an unacceptable risk due to associated ethical, safety or environmental concerns.
Before starting any new venture, we undertake a due diligence process, to ensure that we have confidence in the partners involved and understand the CR risks associated with them and the locations where operations will take place.
Through our CRMS, we rigorously assess new venture opportunities, using a phased evaluation (see our Project Delivery Process) to assess risks in relation to the CRMS requirements and CR issues arising from the type of deal.