Stakeholder engagement

We would like our stakeholders to perceive us through the quality of the products and services we offer and the values we hold dear. It is in our best interests to build trust and credibility among MOL customers and employees, as well as those with whom we share a common environment, both now, and in the future. With this in mind, we are committed to the on-going process of an open and transparent multi-stakeholder dialogue.

We define our stakeholders as being groups who affect and/or could be affected by our operations. Being a large multinational company, the majority of the engagement processes occur at a local-level. Stakeholders to engage with are selected according to specific local needs and circumstances. In this section we provide an overview of the engagement and dialogue processes we undertake with the main stakeholder groups.

Shareholders          

We are serving the interest of our shareholders, who require constant assurance that the current corporate structure and operations guarantee the best value for them. MOL Group management is aware of its fundamental duty to represent and promote shareholder interests and recognises its accountability through the company’s performance and activities. Performance and development are therefore continuously analysed and evaluated, both within the operations of the Group itself and in the broader external environment.

Whereas MOL Group shareholders are mainly UK and US institutional investors, there are also a significant number of individual shareholders. We regularly conduct shareholder identification surveys, in addition to regular reports on the geographical distribution and nature of our shareholders by our share registrar, KELER.
Type of stakeholder engagement (and frequency):

• Annual General Meeting (annually)
• Annual Report / Flash Report (annually / Quarterly)
• Regular one-on-one meetings and Road shows with analysts and investors (continuous)
• Website publications - dedicated portal for investors and shareholders (continuous, link)

Employees

The long-term success of our company depends to a large degree on the quality and commitment of its workforce. Therefore we apply several engagement mechanisms in order to improve work conditions, increase health and safety performance, and all other topics to be solved which are raised by the employees.

Type of engagement (and frequency)	General information	Issues raised, results in 2010
Trade unions (continous)	Trade unions have the right to be informed before significant operational changes and about issues affecting a majority of employees. There are recurring topics (e.g.: Collective Agreements, compensation, etc) during  employer and trade union meetings, but beyond the regulations of the national legislation we are committed to ensuring fair, mutual and continuous communication.	In June 2010 MOL managers and employee representative bodies signed the Equal Opportunity Plan (EOP) of MOL Plc valid for 2010-2012. It is the first document in the Group that, besides declaring the necessity of equal opportunity and formulating a ban on discrimination, specifies the responsible staff and establishes deadlines for actions. In 2011, we would like to extend EOP to bigger Hungarian subsidiaries. The necessary guidelines for implementing EOP at subsidiaries have already been compiled.
Workers’ Councils (in Hungary: formal monthly meetings)	This ensures high potential for personal and interactive communication between employee representatives and MOL top management on business and social issues, e.g. headcount plans.	In 2010 regular Works' Councils meetings were held, not only in our Budapest Headquarters but at various sites of Hungarian subsidiaries. Usually these meetings are connected to Employee Forums.
European Workers’ Council (EWC) (ordinary meeting once a year, meetings of the EWC executive committee 2 or 3 times per year)	The EWC - under its scope of authority for obtaining information and holding consultations - is entitled - in accordance with the EWC-Act – to ask for information and consult on issues like MOL Group operations and employment policy.  Furthermore EWC plays a key role in group-level communication towards employee representatives on issues belong to its scope of authority.	We would like our employees as stakeholders to review the SD reports. The executive committee of the EWC was asked to provide feedback on the SD report, and check that all relevant issues and information are covered or at least mentioned in the report.  In 2010 the EWC established its new communicational strategy in order to increase effictive communication with the employer and the employees. Also, in 2010 EWC made preparations for the New Europe Program 2.
Employee forums (3-4 times per year and additionally when necessary about “hot news”, in Hungary and Slovakia)	In these fora employees can raise questions directly to the top management of the company.	In order to strengthen face-to-face communication we increased employee coverage of the forums: namely, beside the regular events in E&P and R&M we held a forum on functional areas with great success for employees.
Without Taboos (Leaders conferences on a special issue, held in Hungary 2-3 times per year)	Special, topic-oriented forum with a limited list of participants. The Workers’ Council suggests the topic of the forum and invites competent experts and managers.	In 2010 the topic of purchase was discussed.
Committee on MOL-Group labour safety (Quarterly)	This Committee is built up from the labour safety representatives of 7 MOL Group companies. It aims to ensure a healthy and safe work environment based on the same principles group wise.
Local committees on labour safety (Continuous)
Communication via internal communication tools: Internal news via e-mail (continuous), Company magazines (monthly / biweekly), Intranet portal (continuous)
MOL Group Ethics Council – call centre (continuous)		See Ethics section. (link)
Employee Engagement Survey (bi-annually: next one due in 2010)		The survey was conducted for the third time in 2010. Twenty-two MOL Group companies participated, covering 85 percent of the total workforce. INA was involved for the first time, with a response rate of almost 50 percent. The analysis of the results, and the setting up of the unit-level action plans are aimed to be completed by May 2011.
Application for handling employee suggestions and grievances  (continuous)	The ’application for handling employees’ grievances’ handles the observations, problems and suggestions of employees electronically so those responsible (and associated deadlines) can be checked in order to avoid problems being disregarded.

Customers

The MOL Customer Services is not only the face of the company, but a key customer information tool where customers can make enquiries, express opinions or request for  assistance.

The types of engagement (and frequency) include:

• Internal and external customer satisfaction surveys (annual / biannual, link)
• Communication via newsletter, website, etc. (continuous)
• Customer call service, contact point on webpage (continuous, link)

Suppliers

Efficient cooperation with our suppliers significantly contributes to our long-term business success.

Type of engagement (and frequency):

• Supplier Forums (occasionally)
• Regular meetings with major contractors (continuous)
• Contractor safety Program (link)
  
• Annual Supplier HSE Forums with a special focus on supplier HSE performance (annually)
• Website publications e.g. about local HSE expectations (continuous)

Public and local authorities          

Since the operating environment of MOL is determined by international and national regulations, it is crucial that company representatives participate in consultations and professional discussions aimed at modifying the regulatory environment. In a consultation with EU and national economic operators MOL seeks to cooperate with government bodies, local authorities and NGOs effectively.

Adoption of legislation is usually preceded by extensive data collection and consultation. MOL joins these consultations and professional discussions in line with legal requirements and relevant Group-level internal guidelines. MOL has professional membership in several EU and national professional associations to represent and enforce its standpoint.

Several EU legislations, affecting the oil and gas industry, had to be adopted on national level in 2010. Establishing the new regulations meant a complex task on government level, therefore relevant professional and business associations were invited to participate in the preparation. MOL acts jointly with domestic economic players in every country, where the company has business activity, and provides professional support for governments adjusting national energy, climate and environmental regulations to harmonize them with EU requirements. MOL supports the effort of countries in the region in the development of the single energy market, therefore our representatives have joined the expert talks of Visegrad countries

However, MOL neither takes part in political debates among political parties nor takes side in favour of any national or local politician.

The recent cooperations and events:

• Regional Energy Network Development to establish Regional Energy Market and Security of Supply: Expert status for government request during the preparatory work for intergovernmental negotiations of HU-Romanian, HU-Croatian and HU-Slovakian interconnectors. Establishment of interconnectors support the realisation of EU Energy Policy goals in achieving regional competitive energy market
• National Energy Strategy: Expert status for government request in formulating the objectives of National Energy Strategy (New Szechenyi Plan, Energy Strategy 2030)
• Modification of fuel and bio-fuel regulation in Hungary: Expert status for government request regarding the consultation on Hungarian National Renewable Action Plan and adoption of fuel and bio-fuel regulation in line with the relevant EU directive
  

Local communities

Our aim is to conduct our business operations in a socially responsible manner which also complies with best industry practices. A fundamental part of values is the national, cultural and religious diversity. To fulfil our commitment and social responsibility we have increased the support we offer to the local communities where we operate (link).

Our types of engagement (and frequency) include:

• Holding public hearings in case of significant investment projects (occasionally)
  
• Support local community development projects (continuous)

At our significant industrial sites we have undertaken several initiatives in order to build trust among local communities.

At the Duna Refinery (HU):

• As a part of a career-orientation program, regular Refinery visits – open days – have been and are to be organized for elementary and high school students and their teachers from schools in the neighbourhood with an indoor presentation, site-visit and a question & answer session (which is the most popular part of the program);
• We offered various awards and gave a presentation at the Secondary Schools’ Conference on Environmental Protection;
• We cooperate with schools in Százhalombatta in the preparation of special environment-protection training materials for their students. Additionally, we participate at several events organized by schools or the local government (e.g. EarthDay, Day of Environmental protection, High school Environment-protection Conference);
• Continuous collaboration with the environmental committee of the local government of Százhalombatta (e.g. in preparing the city’s noise map);
• We participate in local career forums in Százhalombatta.
• „ Who knows more about Refining?” Quize game for  primary schools pupils
  
• Civil Protection (exercise in the city of Ercsi)
• Forums for customers
  
• Association of the Mechanical Pensioners of Oil Industry (conference regarding the relationship between the town and the refinery)

At the Zala Refinery (HU):

• Internal and external emergency plan (exercise)
• Forum for inhabitants living in nearby area of Zalaegerszeg
• Museum of Oil Industry  (keep in touch continuously)
• Academic group visits

At the Tisza Refinry (HU):

• Family-day
• Tree planting
• Civil protection (annually exercise)
• Academic group visits (university of Debrecen)

At the Rijeka Refinery (HR):

• “Open doors Day”  for local elementary school children to introduce the Refinery and its operation
  
• Project "INA for Youth" included the contest for the best ECO project in primary and secondary schools on the occasion of International Year of Youth, in cooperation with local press media
  
• INA organized a lecture "The Adriatic Dolphin Project" for students of local primary schools in collaboration with the local ecological NGO on the occasion of 45 years of existence the Rijeka refinery on location Urinj  

At the Sisak Refinery (HR):

• Open days  for elementary and high school students and their teachers from schools with an indoor presentation, site-visit and a question & answer session on World water day.

In the TVK petrochemical plant (HU):

• We organised site visits and training events for elementary school pupils from the region, aiming to acquaint them with the environmental impacts of petro-chemistry and the activities of TVK (a total of 825 participants in 2009);
• We held a five-day educational series of programs under the title “Friendly plastics – TVK for people and for the environment” in the Tiszaújváros Kazinczy Ferenc Elementary School. Here – among other events – a cartoon about the Petchem industry was presented. The film was made to incorporate the ideas of the employees of TVK Plc.