Compliance is the bottom line for an enterprise and the cornerstone of its sustainable development. To build an enterprise with integrity, Sinopec Corp. abides by government regulations on integrity and anti-corruption and the laws and regulations of the countries and regions where it operates, continuously improves the integrity and compliance management system, builds the integrity culture of “keeping promises and operating in compliance”, makes every effort to promote anti-corruption and ensure the implementation of the relevant regulations and the enforcement of the disciplinary mechanism.
In 2019, the Company formulated and issued the Integrity and Compliance Management Handbook, which stipulates 80 basic codes of conduct applicable in ten key fields. Employees could access the handbook through the mobile platforms and the Sinopec Online Academy. Approximately 150,000 employees participated in the “Compliance Commitment” campaign.
? The Company shall firmly abide by China's anti-corruption laws and regulations, observe the United Nations Convention against Corruption , comply with anti-corruption and anti-bribery laws applicable in the countries (regions) where the Company conducts business, comply with the integrity and anti-corruption regulations and commitments of the Company and its business partners and strengthen the development of a clean enterprise culture. The Company and its employees shall not engage in or accept commercial bribery or corruption in any territory for any reason or in any form. The Company always strictly abides by anti-corruption and anti-commercial bribery principles and regulations mentioned above when conducting overseas business and investment. More details about the Company's overseas upstream assets and refining and chemical assets are disclosed in the "Company Profile" section of this COP.
? Strictly abiding by national tax policies and regulations, Sinopec Corp. insists on paying taxes legally and paid RMB317.7 billion in taxes and fees in 2019. Meanwhile, the Company abides by the laws and regulations of the country where it operates, including compliance with local tax regulations. Please refer to the China Petroleum & Chemical Corporation Report on Payments to Governments that we release every year for detailed information.
? The Company discloses information required by law and voluntary information in accordance with its information disclosure system to ensure transparency. Sinopec Corp. is continuously rated Class A which is the highest reward by the Shanghai Stock Exchange for information disclosure. Regarding overseas projects, the Company takes the initiative to communicate with stakeholders based on local conditions and cultural background, discloses the environmental and social impact assessment information of projects, which is highly recognised by local government, people and employees.
? In 2019, the Company upgraded the Business Information Disclosure System to add 16 new types of data for disclosure and strengthen the interconnection between the system to data from different business systems, such as the Contract System, the Project Bidding and Tendering System, and the Procurement System, realising higher transparency of its various business operations. More than 4,629,800 pieces of information were disclosed at the Business Information Disclosure System in 2019.
The Company established Supervisory Committee, which is responsible for formulating the guidelines and key measures for anti-corruption, identifying and studying compliance risks that may affect the sustainable development of the Company, holding regular meetings of the Supervisory Committee, researching and deploying key supervision tasks, and supervising and ensuring the timely improvement of issues identified. Chairman of the Board acts as the Chair of the Supervisory Committee. The Company implements a two-level Supervisory Committee system at the headquarters and subsidiaries level respectively, fully covering the supervision of the Board, senior management, and all organisations and personnel with management and operation authorities to exercise. The Company also established the Discipline Inspection and Supervision Department, which reports to the Supervisory Committee, and is responsible for the daily integrity and anti-corruption management of the Company and its subsidiaries, as well as managing the evaluation and accountability of the integrity and anti-corruption management at the subsidiaries of the Company.
The Company has formulated a number of systems to provide system guarantee for integrity and anti-corruption management, including Plans on Reforming Supervision Mechanism, Regulation on the Punishment of Employees who Violate Disciplines or Regulations, the Opinions on Strengthening Daily Supervision of Discipline Inspection and Supervision Institutions (Trial) and the Guidelines on Strengthening the Prevention and Control of Overseas Integrity Risk.
? The Company formulated the Code of Conduct for Employees to regulate employees’ daily behaviours. Every year, employees at key positions are required to sign the Business Ethics Agreement to commit themselves to abiding by business ethics.
? In addition, management staff and employees who are also CPC members are also required to abide by certain regulations of the Party, including the CPC Code of Integrity and CPC Self-Discipline, CPC Regulations on Disciplinary Actions and CPC Accountability Regulations, and are subject to subversion.
? The Company established smooth complaint handling mechanism consisting of mail box, whistle-blowing hotline and email, etc. The Company formulated procedures for recording and handling the reported complaints, verifying evidence, and giving feedback to who submits the complaint. The identity of the whistle-blower will be strictly kept confidential to protect their legitimate rights.
? The Company signs the Letters of Responsibility for Business Ethics with its contractors and suppliers, which specifies that in case of corruption, they will be disqualified and their transactions with the Company will be discontinued, and they will be banned from any business cooperation with Sinopec Corp. for the next three years. Violators with severe cases will be blacklisted by the Company. The Company strictly implements the above regulations. In 2019, a total of 14 suppliers were disciplined for violating the Letters of Responsibility for Business Ethics.
The Company organises training on anti-corruption every year, and raises anti-corruption awareness by issuing documents, holding warning education conferences and watching warning education films, with 100% of employees covered and awareness raised in anti-corruption. The Company regards senior and middle-level managers as the key objects of anti-corruption supervision and management. Violations will be dealt with according to their severity by regulations, and will be notified at semi-annual and annual work meetings to strengthen warning education and promote the construction of incorruptible culture.