Relationship With Stakeholders Code Of Practice Version 02 Petroleum

relationship with stakeholders code of practice. version 0.2 petroleum development oman l.l.c. unrestricted document id: cp- 111

Relationship with Stakeholders Code of Practice. Version 0.2

Petroleum Development Oman L.L.C.
UNRESTRICTED Document ID: CP- 111
May 2004
Relationship with Stakeholders
Code of Practice
Authorised For Issue: 22-05-2004
Signed: …………………………………………………….
John Malcolm
Managing Director
Revision History
The following is a brief summary of the 4 most recent revisions to
this document.
Version No.
Date
Author
Scope / Remarks
Version 0.2
May 04
CSM/6
Comments included
Version 0.1
Nov 00
CEM6
Comments and Media Relations included
Version 0.0
April 00
CEM6
First Draft For Comment
Keywords: Stakeholder, Government, Engagement, Management, Business,
Policies.
This document is the property of Petroleum Development Oman, LLC.
Neither the whole nor any part of this document may be disclosed to
others or reproduced, stored in a retrieval system, or transmitted in
any form by any means (electronic, mechanical, reprographic recording
or otherwise) without prior written consent of the owner.
CONTENTS
1.
INTRODUCTION
1.
Background
2.
Purpose
3.
Target Audience
4.
Structure of this Document
2.
SCOPE AND OBJECTIVES
1.
Scope
2.
Aims and Objectives
3.
Fundamentals of this Code of Practice
4.
Review and Improvement
3.
ROLES & RESPONSIBILITIES
4.
PRACTICES TO BE FOLLOWED
1.
Stakeholders Engagement
2.
Strategies For Improvement
3.
Communication
4.
Review and Monitoring
5.
STEP OUT APPROVAL
APPENDICES
One Stakeholder Engagement Plan
Two Stakeholder Improvement Plan
Three Record of Meeting
1.
INTRODUCTION
1.
Background
Meeting stakeholder expectations is one of the key components
affecting our Business Direction and is a major component of
Sustainable Development. We need to manage these expectations to
ensure that we understand and predict present and future issues that
have an impact on the business. This will include putting plans in
place to deal with these issues at the appropriate level and ensuring
that communication is established at the appropriate level to foster
good relations.
Press and media interest in both Oman and PDO is increasing. It is
important that the media is handled effectively if we are to avoid
pitfalls and make the most of the opportunities that exist.

1.2 Purpose
To ensure that the key requirements of the Relationship with
Stakeholders, Public Relations and Correspondence with the Government
Policies are successfully implemented and aligned with Sustainable
Development concepts as shown in the figure opposite.
1.3 Target Audience
This Code of Practice is intended for use by the members of the MDC,
Functional Directors, Asset Managers and any PDO staff actively
involved in Stakeholder Engagement.
4.
Structure of This Document
This document follows the standard template within the EDMS system and
is linked to the Relationship with Stakeholders Policy, Correspondence
with the Government Policies and supporting procedures and guidelines.
2.
SCOPE AND OBJECTIVES
1.
Scope
The scope of this document commences with the identification of
stakeholders and their expectations through to reporting and
evaluation of results. Within this document, a Stakeholder is defined
as:
“A class or entity (persons or organisations) that has an interest in
PDO and plays a role in, or is affected by our success or failure”.
2.2 Aims and Objectives
The objective of this document is to define the activities and
responsibilities of personnel to ensure that:
*
Stakeholders are engaged in all aspects of our business
*
Strategies are established for key stakeholders
*
Our vision, business objectives and policies are aligned with
stakeholder expectations
*
Information is managed to promote better understanding
*
Issues are identified and managed at the appropriate level
*
Our image is enhanced and protected.
*
Proactive and structured communication is carried out to foster
good relations
2.3 Fundamentals of this Code of Practice
The guiding principles upon which this Code of Practice is developed
are clearly established in the PDO Corporate Management Framework,
Shell Business Framework and Sustainable Development Framework.
2.4 Review and Improvement
This Code of Practice will be reviewed, and when necessary updated
regularly. However, should it so warrant, a review will be undertaken
at any time. Constructive comments and feedback is welcome at any time
and will be taken into consideration during any review.
2.
ROLES AND RESPONSIBILITIES
Typically, staff at all levels of the organisation will be involved in
stakeholder management. Personnel involved and in direct contact with
stakeholders should have appropriate competence, knowledge and skills,
which include:
*
Presentation skills
*
Negotiation and engagement tools and techniques
*
Effective listening
*
Interpersonal skills including the ability to understand different
views.
Staff involved with the media shall have appropriate media relation
skills
Outline roles and responsibilities within this code of practice are as
follows:
Role
Responsibility
HXM
Is the corporate focal point, responsible for managing and
reporting the Stakeholder and Issue Management Process
MDC and Functional Directors
Develop and implement stakeholder engagement plans, identify
issues and appropriate strategies to resolve them. Report and
disseminate the results of all contacts with stakeholders.
Staff
Continually foster a good working relationship with all
stakeholders.
2.
PRACTICES TO BE FOLLOWED
1.
Stakeholder Engagement
A Stakeholder Engagement Plan should be developed in conjunction with
the MDC and Functional Directors. The Engagement Plan should clearly
identify each stakeholder and key players together with the PDO focal
point, frequency of contact, engagement focus and objectives. A
diagrammatic representation of the key steps to be considered in
developing the plan is shown below and an example (2004 plan) is
presented in appendix 1. Also, detailed explanation is available on
our recent stakeholders Engagement Guide (May 2004).
T
he Plan should be regularly updated and widely communicated to all
those involved in the engagement process.
i) Expectations.
Present and future stakeholder expectations should be determined and
listed in priority order. These expectations may be determined by a
combination of formal and informal contacts as follows:
*
Board Meetings
*
Committee Minutes
*
Other Meetings
*
Surveys
*
Questionnaires
*
Personal contact and feed back
ii) Ranking
Resources should be allocated and effort directed towards those
stakeholders who have interest and influence on the Company.
A Classification Matrix is a simple and effective tool to determine
the priority to be given to a stakeholder and subsequent approach to
be taken. Stakeholders may be grouped into four quadrants with 1 being
those stakeholders with the highest interest and influence and 4 being
those stakeholders with the least.
The matrix should be refined over time as more information is gained
and the relative importance of the stakeholders may change.
When considered appropriate, it may be useful to further prioritise
stakeholders according to their attitude towards a specific issue.
This will illustrate the range of positions taken by stakeholders,
allow engagement efforts to be prioritised and action plans prepared.
iii) Objectives
The engagement objectives will generally be determined by the priority
assigned to each stakeholder. Typical examples are as follows:
Cat 1 Align goals through consensus
Cat 2 Manage expectations through participation
Cat 3 Educate and influence through engagement
Cat 4 Inform of progress
Others Ad hoc contact
iv.
Method of Engagement
A summary of engagement tools and techniques that may be used as
appropriate is presented below.
Engagement Characteristic
Tools and Techniques
Engagement Objective
Handle specific Interests
Two - Way Engagement
Align goals through consensus
Manage Expectations
Educate & Influence
Inform on Progress
Ad Hoc Contact
MEETINGS
H
H
Face –to -Face
X
X
X
X
X
L
M
Public Meetings
X
X
X
M
M
Conferences and Seminars
X
X
X
M
H
Small Group Meetings
X
X
X
X
X
M
H
Workshops
X
X
X
X
X
INTERVIEW, SURVEY, QUESTIONNAIRES
M
L
Interviewing
X
M
L
Surveys and Questionnaires
X
X
WRITTEN COMMUNICATION
H
L
Letters
X
X
X
M
M
Briefing papers & Newsletters
X
X
X
L
L
Newspaper Advertising
X
X
M
M
Websites
X
X
X
OTHERS
L
M
Exhibitions and Displays
X
X
X
H
H
Site and Community Visits
X
X
X
X
X
H
H
Advisory Committees and Forums
X
X
X
X
4.2 Strategies for Improvement
Through engagement with our key stakeholders we shall identify how we
can ensure that:
*
our business objectives remain aligned with our stakeholder
expectations
*
any gaps are identified
*
strategies are developed
*
performance measures are established.
An Improvement Plan should be developed in conjunction with the MDC
and Functional Directors. The Improvement Plan should clearly identify
our stakeholder expectations, business objectives, perceived gap,
proposed strategy and appropriate KPI.
A diagrammatic representation of the key points to consider in
developing the plan is shown below and an example is presented in
appendix 2.
The Plan should be included in the Sustainable Development Plan,
regularly updated and widely communicated to all those involved in the
engagement process.

4.3 Communication
1.
Stakeholders
All contacts, meetings, discussions with Government and Shareholders
should be documented and distributed to the MDC and Functional
Directors as appropriate. Key areas to be considered when reporting
are shown in the sample of a Record of Meeting (Appendix 3). All other
contacts with stakeholders shall be documented and distributed to
interested parties.
2.
Media
i) Press Releases
Any area of the business may identify suitable subjects. The Public
Affairs Department (HXM) should prepare final copy with final
clearance by MD or his delegate. HXM should advise on the suitability
of all releases and copies should be forwarded to the press office in
SIL and to EPM in Dubai.
ii.
Response to Inquiries
In the first instance, all enquiry’s should be referred to HXM or
HXM/2 who are sanctioned to answer routine questions on matters that
are already firmly in the public domain without reference to senior
management.
Requests for technical or financial information must be cleared with
the responsible Director. If in doubt, the relevant Director should be
contacted for guidance. Any issue of national sensitivity should be
referred to the MOG.
For technical issues, HXM should contact the relevant specialists for
guidance. No individual other than senior management would be asked to
comment directly on anything controversial or sensitive.
ii.
Requests for Interviews or Briefings
These will be dealt with according to their merits, time scale and the
availability of senior managers. In general, only senior managers will
be requested to give interviews or briefings.
When required, HXM should seek suitable line clearance to contact
suitably qualified staff to talk on purely technical matters ‘on the
record’. No interview should ever be given without prior engagement
with the line manager and HXM.
iv) Crisis Communications
HXM will be the media focal point for crisis communications.
Communication should be as open and responsive as possible without
jeopardising the reputation of the Company, Shareholders or the
Sultanate. The Company will make every effort to work in conjunction
with the MOG and will similarly ensure that accurate information is
available to all parties.
If a major emergency occurs, HXM should produce a series of response
statements for approval by the National Emergency Director. The first
statement should be available within 15 minutes of HXM being notified
of the situation. All response statements should be copied to MD
Should the emergency continues for some time, Press Releases should be
issued at prearranged times to coincide with regular press
conferences. Press should be sanctioned by the MD and when appropriate
cleared by MOG. No such release may be issued without these sanctions.
Press conferences should be arranged to brief the media face to face
and answer direct questions. Press conferences should be arranged in
conjunction with the MOG following agreement from the MD.
Individual interviews will be dealt with on an ad hoc basis, though in
common with an open and informative approach they should be regarded
as an opportunity rather than a threat. Media training of key
individuals should be provided.
This approach is structured in such a way as to ensure that the
Company issues a consistent message. The need for there to be one
point of contact only is central to the approach, the credibility of
the Company is lost the first time a contradictory piece of
information is given.
v) ‘No Comment’
It is our policy never to say ‘No Comment’. There are many ways to
answer a question but ‘no comment’ is not one of them. The refusal to
comment is often interpreted by journalist as we have something to
hide and must be avoided.
4.4 Review and Monitoring
The plans should be reviewed annually or earlier should the MDC
consider that the any of the factors influencing the founding
principles have changed. The review shall follow the process used to
develop the original document. Approved changes shall be immediately
incorporated when appropriate; the document shall be revised and
re-issued. Distribution shall be as the original document.
HXM shall prepare an end of year status report for MDC review. The
report shall present an overview of all of the activities serving to
implement the principles of the Code of Practice, measurable
improvements and proposals for future actions.
5 STEP OUT APPROVAL
Any proposals to deviate from this Code of Practice for whatever the
reason should be submitted to MD for formal approval to do so. Any
such approvals will be recorded and held by MD.
APPENDIX 1 - STAKEHOLDER ENGAGEMENT PLAN 2004

APPENDIX 2 - EXAMPLE IMPROVEMENT PLAN
ASPIRATION
BUSINESS OBJECTIVES
GAP
STRATEGY
PERFORMANCE INDICATOR
Respect and safeguard people
Create an effective and efficient company through motivated staff
Rate of Omanisation not fast enough
Competency levels falling
Accelerate the development of Key Omani staff
Competence development of Omani staff
% of Omani salary over total PDO salary
$/annum in competency development
Demonstrate sound Health and Safety ms
Insufficient continuous improvement of S & H performance
H & S management not systemised
Empowerment of staff
Long term focus and reward system
LTIF, TROIF etc
Staff Survey Rating
Minimize impacts to the environment
Demonstrate sound HSE and integrity management
Environmental impact of PDO’s operations not minimised
Systematic Environmental Management
ISO-14001
Continuous improvement in environmental performance
CEPI
Research and develop in “zero emission” technology
Environmental research as percentage of total research ( $/$)
Maximize benefits to the community
Maintain excellent relationships with Government and Public
Low Omani representation contracting community
Increase Omani contractors
Overall % of Total
Omanisation
% rate
Community contracting
Number of. contracts / value / Omani employees
APPENDIX 3 - TYPICAL RECORD OF MEETING
Reference: Apply a reference to help with the storing and retrieval of
information.
Subject: Insert the name of the stakeholder organisation
Location and Date: Insert location and date details
Attendees
List the names and indicators or representatives for PDO
List the names of the stakeholder’s representatives and positions held
Purpose of Meeting
Include details of the objectives of the meeting or discussions. Who
requested the meeting or discussion, what were the specific
objectives?
Points Addressed
Provide a brief summary of the key points raised and discussed
Information Provided
List the key pieces of information that were supplied to the
stakeholder (e.g. briefing papers etc)
Actions
List the actions agreed, who will be responsible for undertaking them
and when they should be achieved. Include details of when and with
whom the next contact should take place, where and how. Include
details of any additional information that the stakeholder requested.
Additional Contacts Recommended
List any other stakeholders whom the organisation recommended be
included and add them to the Stakeholder Engagement Plan.
May 2004 Page 12 of 13 CP-111