Main content | back to top
Business integrity
At the heart of our Business Principles are three core values: honesty; integrity and respect for people. Consistently behaving with integrity requires clear and simple requirements (like our zero tolerance for bribes and fraud); effective procedures to check and reward compliance, and a company culture that does not tolerate dishonest or illegal practices.
Corruption has probably been around as long as power has existed. That doesn't make it acceptable; nor is it a waste of time to try to do something about it. Corruption does enormous damage. It costs the world’s poor billions of US dollars a year in money siphoned off by local elites. It increases inequality and unfairness, hampers economic development and drives up prices for products and services.
And while a refusal to bribe will sometimes lead to a loss of business, we have learned from experience that there are many people who prefer to deal with a company with a strong no-bribery policy.
Our approach
The stand we take is described in full in our Business Principles:
“Shell companies insist on honesty, integrity and fairness in all aspects of our business and expect the same in our relationships with all those with whom we do business. The direct or indirect offer, payment, soliciting or acceptance of bribes in any form is unacceptable. Employees must avoid conflicts of interest between their private activities and their part in the conduct of company business. Employees must also declare to their employing company potential conflicts of interest. All business transactions on behalf of a Shell company must be reflected accurately and fairly in the accounts of the company in accordance with established procedures and are subject to audit and disclosure.” – Shell General Business Principles (revised, 2005).
Helping staff and partners live by our principles
Shell Code of Conduct: guiding staff behaviour
The Shell-wide Code of Conduct, launched in 2006, gives staff more detailed instructions on the behaviour our Business Principles require. The Code defines the standards of legal and ethical behaviour expected of employees and includes guidance on:
- bribery and corruption;
- conflicts of interest;
- gifts and hospitality;
- insider dealing; and
- political activity and payments.
In 2008, we expanded the requirements that must be included in new contracts with contractors and suppliers to include following our Code of Conduct. Requirements to follow the Business Principles and our HSSE standards in the work they do for us were already in place.
Staff training and resources
All staff must complete training that explains what our Code of Conduct requires of them. We also provide staff with online and face-to-face training in specific areas, including combating bribery and corruption, and complying with competition laws, as the Business Principles require.
In many locations, we provide training to help contractors and suppliers build the systems and skills they need to comply with these principles. For example, we have a dedicated team to review and mentor contractors and suppliers in China. The team screens suppliers and contractors and helps them understand and follow our HSSE standards.
We have also published a guide for managers and a training supplement containing dilemmas or 'grey areas' that can be used as case studies in training sessions and workshops:
"Dealing with Bribery and Corruption" (second edition) (PDF, 1440 KB) - opens in new window
"Dealing with dilemmas - a training supplement" (PDF, 831 KB) - opens in new window
Whistle blowing procedure
We give employees safe ways to report possible violations. Our global helpline and website, is available 24 hours a day and staffed by independent, external specialists. It allows employees and business partners to seek advice and report concerns anonymously (if desired), and in their own language, about suspected incidents of bribery and fraud and about other violations of our Code of Conduct and Business Principles.
Tracking our performance
We expect all Shell staff to follow our Business Principles, with their commitment to business integrity. We report all violations of our Code of Conduct, including proven cases of bribery and fraud, to the Audit Committee of the Board of Royal Dutch Shell plc. In 2008, 204 violations of the Code of Conduct were reported (361 in 2007). As a consequence, we ended our relationship with 138 staff and contractors (151 in 2007).
Contractors are also expected to follow our, or equivalent, business principles when working for us. In many locations we work with contractors to help them understand these rules and comply with them. When they cannot, we are required to review the relationship. In 2008 we cancelled 49 contracts due to failures to adhere to our Business Principles. Forty-five of these cases involved violations of our HSSE standards. Multiple contracts were cancelled in Guatemala and Pakistan.
Our Shell People Survey asks all our staff confidentially whether their part of Shell is dealing with the outside world with integrity. In the 2008 Survey, 85% of staff said it was. 3 percent said it was not. This is in line with scores since the survey began in 1999.
Working with others to promote business integrity
We actively promote improved standards of business integrity across industry through our support for anti-corruption organisations and initiatives.
Read how we are working with others.
