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Integrated Annual Report 2012
The Culture of Values


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Grupa LOTOS S.A. - Integrated Annual Report 2012

HR policy


The mission of the LOTOS Group stipulates development of the organization through continued improvement as well as making best use of our human capital. It is the basic tenet of the LOTOS Group’s HR management strategy to treat employees as the most important asset, hence our care for advancing their competences and creating circumstances that will favour their identification with the fundamental values underlying the LOTOS Group’s organizational culture.

Our company applies the principles of corporate social responsibility in every sphere of its activity. This also applies to HR policy, which is carried out in a comprehensive and strategic manner, with its implementation guided by the principles of accessibility for employees, consistency across systems and solutions, flexibility in relation to business needs, and above all responsibility for results. Our HR policy is long-term and based on continued application and improvement of best practices in responsible recruitment and employment, facilitating adaptation to the work environment, systems for improvement of qualifications, evaluation and motivation of employees, compliance with ethical principles and the rules of occupational health and safety.

In relations with our employees we particularly appreciate proactive attitudes towards achieving objectives, cooperation, communication, commitment and innovation, and continuous improvement of skills. Given our Company’s continuous development, it is essential for us to retain existing staff while improving their skills, and also attracting new, competent workers.

HR policy on the selection of employees, their professional progress and development, personnel administration, incentive systems and other social matters is the responsibility of the Board of Grupa LOTOS. In this way the Company has a positive impact on employment practices, incentives and building of desirable organizational culture, preparing and introducing optimised solutions across the LOTOS Group.

We are recognised as a reliable and respected employer that promotes social responsibility standards, adheres to social rules and counteracts discrimination in employment. Our care for the professional development and improvement of our employees’ knowledge and skills goes hand in hand with our concern for a good atmosphere and friendly relations between people in the workplace. We value open communication and the ability to cooperate and form partnership relations between managers and employees. These values are the hallmark of our company culture and are reflected in our Code of Ethics, in force since 2013.

We appreciate the rewards of work being carried out in an amicable atmosphere by hard-working, cooperative individuals with a sense of duty, who are loyal to their employer and committed to their work. A work culture built on cooperation is more likely to unleash people's potential for the benefit of the LOTOS Group, and the successful personal development of each employee. We strive to create a friendly work environment for everyone. To that end, we have developed clear and effective regulations, and employ transparent and reasonable decision-making processes that help make interpersonal relations harmonious.

We aim to ensure that our current and prospective employees have equal employment, advancement, development and training opportunities. Our efforts in this respect are centred on fostering a sense of trust between management and the rest of the employees. We are committed to the fair treatment of everybody, regardless of their job title, length of service, trade union membership, age, gender, sexual orientation, physical appearance, nationality, religion or political views. Decisions concerning recruitment, career development, performance evaluation, advancement and remuneration are based on straightforward rules and criteria to guarantee fair treatment of all current and prospective LOTOS Group employees.

Source: Code of Ethics of the LOTOS Group

Forming responsible social relations with employees is one of the key areas of our corporate social responsibility strategy, which contributes to the effective realisation of our business objectives.

Creating values beneficial to
the social environment
Creating values beneficial to
the natural environment
Creating economically
beneficial values
We are committed to respect for intellectual capital and diversity, respect for human rights, including the freedom of speech and freedom of association. We contribute to the creation of new jobs and the improvement of the quality of human capital in the areas of our impact. We actively counteract exclusion and other social problems in the spheres of our competences. We strive to continuously reduce the negative impact of our business on the environment through the application of high standards of extraction, production and processing of hydrocarbons, and also by meeting the demanding environmental standards on production, transportation and sale of petroleum products. Our mining operations now use the best available techniques and rules of conduct, and we are constantly analysing the opportunities offered in this area by new technologies. We aim to identify and develop opportunities for obtaining energy from renewable sources. We place great importance on the management of our relationship with the environment in a predictable and reliable manner, consistent with the principles of ethics and in keeping with the rules of transparency and partnership. This has an impact on the way in which we aim to profit and increase in value in the long term. Our responsibility manifests itself in activities aimed at increasing the security of the energy sector in a responsible manner, in consideration of both society and the environment. We provide a stable supply of fuel to the market, as well as participate in the exploration for and production of hydrocarbon deposits, including non-conventional ones.

One of the key objectives of LOTOS Group CSR Strategy is investment in human resources, in order to maintain the highly qualified personnel necessary for the effective implementation of our business strategy and continue to develop an  organizational culture based on our adopted values.

The achievement of CSR objectives is monitored in the periods which coincide with evaluation of the implementation levels of the LOTOS Group’s business strategy. HR policy objectives adopted in 2012 and resulting from the business strategy and CSR strategy have all been realised.

An adequate number of highly qualified personnel, necessary for the effective realisation of business strategy, has been provided.

Our recruitment procedures help us employ staff with the required qualifications, and in order to use our candidate database even more effectively, and also to make the recruitment procedure more efficient and consistent within the LOTOS Group, we introduced the e-Recruitment system. This provides for more effective management of recruitment processes by, for example, facilitating express publication of job adverts in different media concurrently, proficient analysis of database data as a result of use of electronic application forms and search methods, as well as the gathering and exchanging of candidate information according to the highest security standards, and ready access to advertising performance statistics. The new system is candidate-friendly and brings our recruitment procedures even further into compliance with our value system.

Efficiency enhancing recruitment procedures
Efficiency enhancing recruitment procedures

In order to reach the highest number of candidates, in 2012 we introduced changes to the website, making it more attractive visually and introducing a functional Career page that provides more information about the LOTOS Group as an employer.

The high results of our employees’ periodic evaluations confirms the efficiency of our  recruitment tools, adaptation tactics, training and motivation schemes.

Salaries offered by the company are formulated on the basis of data received from payroll surveys, as well our own studies of remuneration systems and the employment market, with particular emphasis on the fuel-energy and petrochemicals sectors.

In accordance with the LOTOS Group’s mission, we are continually improving our employees’ competencies with training and development projects, carried out within the LOTOS Academy and available to all employees.

We take full advantage of our workforce’s potential, and have built a culture of shared knowledge that makes use of the qualifications and experience of senior employees, aged 50+, who are now actively involved in the development of younger staff. The seniors provide training within our ‘adaptation programme’, become mentors to the newly employed and those working in production, as well as serving as speakers at in-house training sessions.

Organizational culture advanced on the basis of adopted values.

In 2012, within the framework of the LOTOS Group’s HR policy we introduced uniform principles for the planning and implementation of recruitment, internal recruitment and monitoring of employee attrition, in order to further meet our desired organizational culture. After implementing these changes, the associated good practices of Grupa LOTOS have become even more visible and more widely applied in the LOTOS Group companies.

The tools and solutions that the Company makes use of are continually monitored and advanced. We have upgraded the adaptation programme, especially in relation to technical staff. We have also prepared an endorsement of the adaptation programme for LOTOS Asfalt, taking into the account the specific profile of their trading area.

Additionally, a decision was made regarding the SAP HCM IT system which will be introduced across the LOTOS Group. The new system will not only make reporting easier, but will also better meet the needs of management and other staff by making information more accessible and providing better access to HR tools. With this in mind, we also reviewed our HR management processes, in particular auditing their ‘soft’ part, and have begun work on a map of employment positions across the entire LOTOS Group, with a related model of competences and changes in the Periodic Employee Evaluation System. This will ensure that the new IT system truly reflects the LOTOS Group’s business requirements.

In order to exert a positive impact on employment practices, provide incentives and foster good work ethics at LOTOS brand petrol stations, we have prepared an action plan to support recruitment processes which provides incentives and fosters a working culture based on the adopted values. To make recruitment process more transparent, we developed profiles for an ‘ideal’ sales assistant and station manager. We are also planning an associated training scheme that will prepare our business partners employing staff at petrol stations for the proper selection and evaluation of candidates. Our web page provides transparent information on the recruitment process for station employees. We have analysed employee incentive methods for use in the future, and are currently in the process of developing a training programme for petrol station staff aimed at promoting behaviours which conform with our adopted social and ethical values.

The process of building the business awareness of the LOTOS Group’s management is ongoing, and takes into consideration the importance of social and environmental factors as well as issues of corporate governance. The effectiveness of this process is confirmed by the results of our periodic employee evaluations – more than 90% of all evaluated employees have obtained good and very good scores for the criterion involving the importance of social and corporate governance, with 86% of the management achieving very good grades.

Efficiency enhancing recruitment procedures



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