Integrity is one of our three core values and a cornerstone of our Business Principles. We translate this value into action with a clear and simple policy: zero tolerance of bribes and fraud.

In some parts of the world our policy banning bribes runs counter to common practice. Getting employees to comply requires extensive training and monitoring.

According to our internal questionnaire of the most senior Shell representative in each country, in 2006, staff in over 100 countries attended sessions on the proper use of intermediaries in business transactions. See the Performance Data page for more on this data.

To help us follow our Business Principles, employees are provided with online and face-to-face training in key areas, including preventing bribery and corruption.

We introduced a global help line and website in 2005, and have rolled it out country by country. In a number of countries, it replaced local help lines that had been in place for many years. The new global facility is available 24 hours a day and allows employees and business partners to seek advice and report concerns (anonymously, if desired) about suspected incidents of bribery and fraud and other violations of our Code of Conduct and Business Principles. We report cases of bribery and fraud to the Audit Committee of the Board of Royal Dutch Shell plc. In 2006, 96 violations were reported. As a result we ended our relationship with 143 staff and contractors.

Every two years, the Shell People Survey includes questions to employees about whether their part of Shell is dealing with the outside world with integrity. In the 2006 Survey, 81% of staff said it was. Four per cent said it did not. This is in line with scores since the Survey began in 1999, including in 2004, after the recategorisation of our proved oil and gas reserves.

Contractors

Contractors are expected to follow our, or equivalent, business principles when working for us. In many locations, we work with contractors to help them understand and apply these principles. When they cannot, we are required to review the relationship up to and including cancelling the contract. In 2006, we cancelled over 40 contracts because of such concerns, according to our annual internal questionnaire of senior Shell country representatives. For example, multiple contracts were cancelled in Brazil, Canada, Nigeria, Trinidad and Tobago and the USA. See the Performance Data page for more on this data.

Our Chief Ethics and Compliance Officer launches
the Code of Conduct

Code of conduct

In late 2006, we launched a Shell-wide Code of Conduct. Shell operations in a number of countries, including the USA, have had codes in place for many years. This is our first company-wide code. It applies to all staff working either in Shell companies, or in joint ventures where we have a controlling interest.

The Code is intended to help staff put our Business Principles into practice by defining the basic rules and standards we expect them to follow and the behaviour required. The Code gives practical advice in more than 20 areas, from antitrust law to substance abuse. The message of the Code is “If you’re not sure, ask”.

All staff received a copy of the Code of Conduct in 2006. Compulsory awareness programmes and online training are now underway to ensure they understand and follow it.