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Code of corporate ethics of “Ukrainian energy machines” joint stock company

CODE OF CORPORATE ETHICS OF “UKRAINIAN ENERGY MACHINES” JOINT STOCK COMPANY

(approved by decision of Directorate No. 28-H dated 05.04.2019)

(in connection with adoption of decision by extraordinary general meeting of shareholders held on 27.08.2021 on renaming the company, according to the text, all names - Joint Stock Company “Turboatom” have been replaced by “UKRAINIAN ENERGY MACHINES” Joint stock company)

 

CONTENT

Introduction

1. Objectives of the Code

2. Goals and corporate values of the company

3. Norms of business ethics and behavior of employees

4. Principles of interaction

  • 4.1. Relations with company employees
  • 4.2. Relations with business partners
  • 4.3. Relations with mass media

5. Business hospitality and business gifts

6. Combating corruption and other abuses

7. Protection of company resources

8. Information security

9. Dress culture and appearance of employees

10. Corporate events

11. Political and religious activity

12. Labor and environmental protection

13. Enforcement of the Code and responsibility for its violation

INTRODUCTION

The Code of Corporate Ethics of “UKRAINIAN ENERGY MACHINES” Joint stock company (hereinafter - the Code) is internal organizational and management document aimed at fostering and maintaining corporate culture within the company, business principles and values, norms of behavior of employees by which they must be guided in performance of their duties responsibilities

The Code provides understanding of principles of conducting business, as well as requirements that must be observed by all employees of “UKRAINIAN ENERGY MACHINES” Joint stock company (hereinafter - the company, the enterprise). The Code should be implemented in day-to-day activities of the enterprise and contribute to its development.

Every employee is obliged to know the Code and constantly comply with its provisions. Employees should remember that their behavior directly affects their personal reputation and reputation of the company as a whole. During the performance of their official duties, the company's employees must act exclusively in its interests.

“UKRAINIAN ENERGY MACHINES” Joint stock company hopes that its existing and potential business partners share values and principles, as well as rules of conduct declared by the company.

            1. Objectives of the Code

Tasks of the Code of Corporate Ethics are:

  • Consolidation of company's corporate values;
  • Introduction and development of unified corporate culture based on high ethical standards;
  • Maintenance of atmosphere of trust, mutual respect and decency in team, compliance by employees with high standards of behavior;
  • Awareness of personal responsibility of each employee to business partners, shareholders and consumers of the company's products.

            2. Goals and corporate values of the company

Goals of the company are:

  • maximization of welfare of shareholders due to growth of market value of shares, as well as receipt of profit by shareholders;
  • meeting social needs of national economy of Ukraine and citizens in products of the company with high consumer qualities at minimal costs, ensuring on this basis the growth of well-being of shareholders of the Company;

The company's corporate values are the main tool for realizing its strategic goals, which play important role in building business processes and determine the rules of interaction among the workforce, with counterparties, competitors, the state and society. Each employee of the company must share its corporate values and adhere to them in the framework of their professional activities.

The company's corporate values are:

  • Reliability - the company is one of the leaders of domestic power engineering, therefore, we aim to create an impeccable reputation, take a responsible and balanced approach to making all decisions;
  • Professionalism - employees of the company are focused on self-improvement and continuous development of their professional skills, they know their business perfectly, have necessary qualities and competences in the field of the company's activities;
  • Responsibility - quality and reliability of manufactured products, compliance with shareholders' interests, timely and high-quality fulfillment of contractual obligations are the company's priorities;
  • Development of new and promising areas of production, introduction of modern technologies and the latest equipment;
  • Trust in the company's employees, which allows you to delegate to them authority to make responsible decisions;
  • Protecting the interests of the company, which means taking all possible measures to protect its interests;
  • Preservation of production, personnel and other potential of the company;
  • Provision of conditions for professional continuity;
  • Team cohesion, based on the desire to work effectively and develop one's potential, support of team spirit and interaction to achieve the common goals of the company;
  • Adherence to high ethical standards, namely respect for the opinion of others tolerant attitude, open and friendly discussion of problems;
  • Team spirit, which means joint solution of production tasks;
  • A healthy lifestyle, active participation in cultural, sports and other events held by the society.

3. Norms of business ethics and behavior of employees

Standards of business conduct of managers provide for:

  • maintaining a favorable social and psychological climate in the team;
  • fairness and objective assessment of the work of subordinate employees;
  • openness to communication and self-criticism;
  • respect for opinion of colleagues and subordinates;
  • supporting the initiative of subordinate employees;
  • mentoring and assistance to young specialists and new employees in their professional development;
  • promotion of personnel, taking into account exclusively their professional abilities and work results.

Standards of business behavior of employees provide for:

  • respectful attitude towards colleagues and observance of subordination;
  • polite and correct relations with colleagues, creating an atmosphere of mutual understanding and cooperation in the team;
  • negative attitude towards rumours, preventing their discussion and dissemination;
  • sharing experience and information with colleagues, providing assistance to each other in achieving the company's goals;
  • refraining from criticizing colleagues, subordinates or the manager in the presence of other employees;
  • rational use of own working time and that of colleagues.

4. Principles of interaction

4.1 Relations with company employees

The company realizes that guarantee of its success is effective activity of the labor team of the enterprise.

Relations between the company and its employees must be based on mutual respect and mutual responsibility.

The company respects personal freedom, human rights and dignity, treats employees with trust, creates equal opportunities for all employees and candidates for relevant positions in the company.

Main criteria for making personnel decisions are the qualifications of the employee, his professional qualities and achievements, as well as other factors related to his work. The company supports polite and correct relations in the team, an atmosphere of cooperation and mutual understanding, exchange of experience and information, teamwork to achieve the best result.

Discrimination in any form, oppression and harassment (mobbing) at the workplace, intimidation based on personal or political beliefs, gender, age, religion, socio-economic status, etc. are unacceptable.

The company declares the inadmissibility of any manifestations of harassment, threats, mental and physical violence against its employees.

  4.2 Relationships with business partners

The company values and maintains relations with business partners based on long-term cooperation, mutual trust, respect, benefit, fairness and objectivity.

The company always faithfully fulfills its obligations to business partners, stipulated by the terms of agreements or contracts, and, in turn, demands the same from them. The company carefully selects business partners and strives to work with those who have an impeccable reputation, are not subject to sanctions, comply with the requirements of current legislation and generally accepted norms of corporate and business ethics.

Adhering to high ethical standards of behavior, principles of legality and the rule of law, respecting the rights, legitimate interests and business reputation of its partners, the priority for the company is to defend its own rights and interests. The company always tries to resolve all misunderstandings that arise in the process of interaction with business partners through legal means, conducting negotiations and trying to reach a compromise.

Employees of the company are prohibited from disclosing information about business partners, which may cause damage to the company itself and/or its partner, except for cases provided for by the legislation of Ukraine.

In relations with non-resident business partners, the company complies with requirements of legislation of countries of which they are business entities.

4.3 Relations with mass media

The company constantly interacts with mass media (hereinafter referred to as mass media), builds these relations on the principles of openness and transparency, readiness for dialogue and compliance with high ethical standards of communication.

The exchange of information with the mass media takes place through the provision of official information about the company by the press service, which uses all available communication channels for this purpose: placement of information materials in printed mass media, on radio, television, and the Internet, distribution of press releases, holding press conferences, etc.

Public speeches on behalf of the company in the mass media and at other events with participation of mass media representatives have the right only the head of the company or persons authorized by him. Without such authority, employees must avoid any statement or expression that could be perceived as the official position of the company and affect its reputation. Transmission of information and documents, including information about the company's current financial status, to the mass media by unauthorized persons is a violation of corporate ethics. All contacts of company employees with media representatives must be made through the press service.

The company does not allow the dissemination of false information, distortion of facts, which may harm it, its business partners, the interests of third parties or the State.

5. Business hospitality and business gifts

The company allows employees to accept or give gifts that correspond to generally accepted notions of hospitality (business hospitality).

Business hospitality is expenses for social, corporate, sports, cultural events, food, accommodation or entertainment for the purpose of establishing business relationships or showing gratitude, which are carried out in connection with the performance of employees' functional duties.

Employees of the company must not accept gifts or other offers in form of gifts in case it can be considered as willingness to commit illegal bribery or the person accepting the gift can at least think that it will influence his work decisions.

It is not allowed for company employees to demand or request gifts for themselves or third parties from business partners, their representatives, other legal entities or individuals in connection with the performance of their powers and related opportunities.

Employees of the company may accept gifts from legal entities and individuals, including those subordinate to them, that meet characteristics of business hospitality (souvenir products, literary publications, paintings, booklets, flowers, food, reimbursement of transportation expenses and accommodation in a hotel, and etc.), if value of such gifts does not exceed one subsistence minimum for able-bodied persons, established on the day of acceptance of the gift, once, and the total value of such gifts received from one person (group of persons) during the year does not exceed two subsistence minimums established for of an able-bodied person on January 1 of the year in which the gifts are accepted.

The limitations on the value of gifts provided for by this clause do not apply to gifts that:

  • Donated by relatives - work colleagues;
  • Received as publicly available discounts on goods, services, publicly available winnings, prizes, bonuses, bonuses, etc.
  • Employees of the company must refrain from offering gifts to government officials, people's deputies of Ukraine, deputies of local councils, their relatives, actual or potential business partners, their employees or representatives, as well as from any other behavior that can be considered as a readiness to commit a corrupt act an offense related to the company's activities.
  • Gifts given on behalf of or on behalf of the company, as well as representative expenses for business hospitality, must meet the following criteria:
  • Directly related to legal goals of the company's activities or national holidays (Constitution Day, Independence Day, anniversary of establishment of the company, etc.), are purchased and awarded in accordance with the company's financial condition and upon agreement with the company's head;
  • Reasonable and those whose value meets requirements mentioned above;
  • Is not a hidden reward for a service, action, inaction, connivance, granting of rights, making a certain decision, committing a transaction, obtaining permission, etc., or as an attempt to influence the recipient of the gift for another illegal purpose;
  • Do not create a reputational risk for the company, its management, employees and other persons acting on behalf and on behalf of the company.

6. Combating corruption and other abuses

Requirements of the anti-corruption legislation of Ukraine are mandatory for the employees of “UKRAINIAN ENERGY MACHINES” Joint stock company.

The company in its activities as a whole, as well as its officials and other employees, are obliged to adhere to the principle of "zero tolerance" to any manifestations of corruption, to take all possible measures to prevent, detect and counter corruption.

The company has developed and implemented an Anti-corruption program that declares the above principles.

The company also approved the "Policy of compliance with anti-corruption legislation in “UKRAINIAN ENERGY MACHINES” Joint stock company, which reflects commitment of the company and its management to high ethical standards, the principles of open and honest business conduct, as well as the company's desire to maintain its business reputation at an appropriate level.

In order to prevent manifestations of corruption, the company developed and approved the Regulations on consideration of reports of violations of the Anti-Corruption Program or commission of corruption offenses received by “UKRAINIAN ENERGY MACHINES” Joint stock company, which defines the sequence of actions of the Company's officials upon receipt, accounting, processing and consideration messages received from applicants, as well as possible methods of communication.

Information on anti-corruption measures is freely available on the society's website.

7. Protection of company resources

The company makes maximum efforts to provide employees with all material (movable and immovable property, funds, etc.) and non-material (software, licenses, etc.) resources necessary for work.

The company adheres to principle of achieving maximum efficiency from used resources at existing level of technology development and simultaneously reducing man-made impact on surrounding natural environment.

All employees of the company are obliged to:

  • Treat company resources with care and use them effectively;
  • Maximize rational use of energy resources (electricity, thermal energy, water resources);
  • Do not use means (office equipment, tools, equipment, programs, etc.), information and resources of the enterprise for personal purposes;
  • To use your working time rationally, to treat the working time of other employees of the company with respect.

8. Information security

The company is responsible for use and protection of information and personal data owned or managed by it, in particular:

  • Follows principles of protection of personal data and confidential information about the company's employees. Personal data of employees is collected, stored and used in accordance with current legislation of Ukraine and organizational and management documents of the company. Access to personal data of employees is limited;
  • Observes confidentiality rules regarding information received from business partners and counterparties of the company;
  • Takes all possible measures to protect own information that is confidential or contains a commercial secret, which has become known to company employees in connection with the performance of functional duties;
  • The company does not allow the dissemination of false information, distortion of facts, which may harm it, as well as its business partners.

While working at “UKRENERGYMACHINES” JSC, as well as after termination of employment relations with the enterprise, employees are obliged to ensure protection and non-disclosure of personal data of other employees, official and confidential information received or acquired during activities at the enterprise. One should avoid discussing this information over the phone, in public places, in transport and via Internet.

Each employee of the enterprise must comply with requirements of the company's internal organizational and management documents, which regulate the procedure for access, use and disclosure of trade secrets and confidential information. It is prohibited for employees to transfer confidential information and documents related to trade secrets to third parties, except for cases provided for by legislation of Ukraine.

9. Dress culture and appearance of employees

Employees of the company should remember that their appearance is important for maintaining a positive business image of the company. For this purpose, men and women of management staff are recommended to follow a business style in their clothes. For other employees of the enterprise, a freer style of clothing is possible, however, their appearance must meet such criteria as neatness, restraint, well-groomed and expediency.

During working hours, employees should refrain from clothing that is too loose and sporty, with the exception of the need to wear overalls by technical personnel, whose work is closely related to the production process, maintenance and repair of equipment, as well as cleaning of premises, which is due to job duties.

When choosing an office style, employees of the company should be guided by the principle: clothes form the image of a professional, and are not a means of attracting attention.

10. Corporate events

“UKRAINIAN ENERGY MACHINES” Joint stock company, including trade union organization of the company, conducts various corporate events aimed at uniting and maintaining the corporate spirit of team.

The company welcomes initiative of employees in social life, support for holding corporate events with personal participation. During corporate events, as well as being in public places, employees of the company are obliged to observe the generally accepted rules of etiquette. Employees of the company must be aware of the impact of their behavior on the company's reputation and avoid actions that negatively affect its image.

11. Political and religious activity

In its activities, the company adheres to principle of apoliticality and neutrality in matters of religion. Employees are prohibited from engaging in political and religious propaganda while performing their functional duties.

The company forbids its employees to use the name of “UKRAINIAN ENERGY MACHINES” Joint stock company, company resources (material base or personnel) during personal political or religious activities, to contribute to implementation of corporate contributions to specified activity. Participation of company employees in political or religious informational and campaigning activities directly during working hours or during the performance of representative powers is not allowed.

12. Labor and environmental protection, fire safety

Creation of safe working conditions for every employee of the enterprise is a priority for “UKRENERGYMACHINES” JSC. Each employee must comply with all rules and instructions regarding labor safety in production, maintain cleanliness and order in his workplace, monitor order in the office, in production premises, buildings and on the territory of the enterprise. Smoking is prohibited at the enterprise, with the exception of specially designated areas.

Employees of the company must understand and take care of personal safety and health, as well as safety of people around them in process of performing any work or during their stay on territory of the enterprise. Employees of the company are obliged to know and comply with requirements of regulatory documents on labor protection, fire and man-made safety. Each employee of the company bears personal responsibility for violations of requirements of labor protection, fire and man-made safety.

Use of alcoholic, narcotic or toxic substances that reduce work capacity and speed of reaction to external stimuli is prohibited on territory of the company. Presence of company employees under influence of such substances while performing official duties is prohibited and is grounds for disciplinary action.

The company is fully aware of its responsibility to current and future generations for the impact of its activities on the environment. The company carries out sustainable and safe business practices aimed at minimizing and mitigating the negative impact on the environment, adheres to the principle of dynamic technical development with the most rational use of natural resources and reducing the amount of waste and emissions. The company makes maximum efforts to constantly improve the environmental performance of its activities.

In the field of environmental protection, the company:

• Adheres to norms of national and international legislation on environmental protection, which apply to its activities, and applies appropriate standards in cases where appropriate regulation and legislation are absent;

• Encourages each employee to respect and be frugal towards the environment, as well as personal participation in improving indicators of the company's economic impact on the environment;

• Conducts training of employees in the field of environmental protection;

• Provides quick and effective response to all environmental incidents arising as a result of its activities;

• Conducts and facilitates research and analysis of the impact of the company's activities on the environment in order to minimize it.

13. Enforcement of the Code and responsibility for its violation

Provisions of the Code apply to all employees of the company, who are obliged to be guided by it in their work at the enterprise, regardless of their position.

All employees of the company must be familiarized with the Code when applying for a job in the company, about which they must sign the employee's commitment in the form of Appendix 1.

All employees are timely informed about changes in the Code. If employee, for any reason, has not familiarized himself with the Code or has not signed the employee's commitment in the form in accordance with Appendix 1, this does not release him from the obligation to comply with the provisions of the Code.

Employees of the company must take appropriate measures to prevent violations of the Code.

If an employee of the company has doubts about the correct application of the provisions of the Code, he can ask for help from his immediate supervisor or the compliance service, both in person and by using “hotline” or electronic mailbox.

In the event that an employee of the company establishes violations of the requirements of the Code (unethical behavior) in the actions of another employee, he must be warned about this, specifying which provision he violates, and inform his immediate supervisor or the compliance department about the detected violation.

Reports of violations of the Code may be submitted anonymously and subsequently kept confidential.

Any harassment of, or pressure on, an employee who has voluntarily reported a violation of the Code is prohibited and will be considered a separate violation of corporate ethics.

Employees of the company are responsible for strict compliance with the provisions of this Code. The Society may apply disciplinary measures to violators of the Code, as well as issue warnings and warnings to violators.

In addition, violators of the requirements of the Code may also be subject to other measures of influence provided for by the current legislation and organizational and management documents of the company.

In the event of violation of the Code and current legislation by employee of the enterprise or its business partner, the company reserves the right to transfer information about the detected violation to law enforcement agencies in order to bring the guilty parties to administrative or criminal liability.

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