To prevent risks of corruption, Total has implemented a robust, regularly updated anti-corruption compliance program that has been rolled out throughout the Group. The aim of this program is to promote a culture of compliance, transparency and dialog, components that are key in ensuring the sustainability of the Group’s operations and activities, as well as to meet legal requirements and, in particular, to comply with applicable anti-corruption laws, such as the U.S. Foreign Corrupt Practices Act, the UK Bribery Act or the French law on transparency, the fight against corruption and the modernization of the economy. Failure to comply with such legislation could expose the Group to a high financial and criminal risk, a risk to its reputation, as well as measures such as the review and reinforcement of the compliance program under the supervision of an independent third party.
The commitment of the entire Group and the efforts undertaken are unrelenting in order to ensure the sustainability and continuous improvement of the anti-corruption compliance program, which the U.S. authorities deemed to be appropriate in 2016, thus putting an end to the monitorship process that was introduced in 2013.
This program is drawn up by a dedicated organization acting at the corporate and business segment levels: the Legal Risks Management and Compliance department, headed by the Chief Compliance Officer, and the Branch Compliance Officers. They coordinate a network of nearly 390 Compliance Officers in charge of rolling out and running the program at the subsidiary level. This structured organization lies in close proximity to operational activities while having its own dedicated reporting line.
Total’s anti-corruption compliance program is based primarily on the following seven pillars: management commitment or “tone at the top”, risk assessment, adoption of internal standards, awareness raising and training of the employees, feedback of information, including the whistleblowing system, mechanisms for assessing and monitoring the implementation of the program, and imposition of disciplinary sanctions in the event of misconduct.
The constant high level of commitment by the General Management is reflected by the principle of zero tolerance for corruption that is set out in the Group’s Code of Conduct. Managers have a duty to lead by example and are responsible for promoting a culture of integrity and dialog. This commitment is expressed in regular statements made by the Chairman and Chief Executive Officer as well as through large-scale communications actions, such as the annual Business Ethics Day organized on the occasion of the UN’s International Anti-Corruption Day and Human Rights Day. This event was held for the fourth time in December 2018 and was devoted to the updated Code of Conduct which was published on the same day and presented by the Chairman and Chief Executive Officer in a video.
The commitment of the management bodies is also expressed externally by Total joining anti-corruption initiatives and supporting collaborative and multipartite approaches. Total joined the Partnering Against Corruption Initiative (PACI)(1) in 2016, thereby adhering to the PACI Principles for Countering Corruption. The Group’s commitment has been further reinforced by Total’s Chairman and Chief Executive Officer joining the PACI Vanguard Board.
Total is also a member of other initiatives that contribute to the global effort to fight against corruption, such as the UN Global Compact since 2002 or the Extractive Industries Transparency Initiative (EITI)(2) ever since it was launched in 2002. Furthermore, in October 2018, Total’s Chairman and Chief Executive Officer took part in the International Anti-Corruption Conference, which is organized every two years by Transparency International.
(1) Launched in 2004 within the World Economic Forum, PACI now numbers approximately 90 major corporations and forms a platform for discussion that brings together business leaders and governmental and non-governmental organizations, allowing them to share their experiences and ideas and develop best practices.
(2) The EITI brings together representatives of the governments of the member countries as well as representatives of civil society and business in order to strengthen transparency and governance with regard to income from oil, gas and mineral resources.
To ensure that the compliance program is adequate regarding the risks to which Total is exposed, these must first be identified and assessed. Beyond the Group risk mapping, a risk mapping dedicated to the risks of corruption have been carried out at Group level and every Compliance Officer is responsible for establishing a mapping dedicated to the risks of corruption within their entities, with the aim of drawing up a suitable action plan. Employees are provided with tools that help them identify the risk of corruption, e.g., the Typological guide of corruption risks.
Specific rules have been adopted and incorporated within the Group referential in order to mitigate the identified risks.
As an essential element of the Group referential, the Code of Conduct sets out the behavior to be adopted, in particular with regard to the question of integrity. It prohibits corruption, including influence peddling, and advocates “zero tolerance” in this area.
The Code of Conduct is complemented by a regularly updated set of anti-corruption standards. The Anti-Corruption Compliance Directive, which was updated in 2016, recalls the main principles and organizes the roll-out of the anti-corruption program. It deals, among others, with commitment, training and awareness raising, accounting and book-keeping, the assessment system and whistleblowing mechanisms. This directive is complemented by rules that deal with more specific subjects in order to prevent the various identified risks. These rules relate, among others, to the due diligence process, i.e., the analysis and assessment of third parties before entering into business relations with them. This analysis is performed according to criteria that differ depending on the risk level associated with the type of third party. These provisions are incorporated in the supplier and service provider qualification process, which was harmonized in 2017-2018 in connection with the gradual roll-out of a shared database within the Group.
Standards have been drawn up to deal with other high-risk areas, such as gifts and hospitalities, which have to be registered and approved by the line manager above given thresholds; conflicts of interest, which must be declared to the line manager; compliance programs implemented within joint-ventures; and human resources-related processes such as recruitment.
Awareness raising and training
Awareness raising actions are carried out towards all employees. The Group’s intranet contains a section on the fight against corruption which provides employees with various media, e.g., the internal standards or guides such as the booklet entitled Prevention and fight against corruption. Poster campaigns communicating the key messages in the risk areas are organized on a regular basis; the latest one was launched in mid-2018. An initial anti-corruption e-learning course was rolled out in 2011 in 12 languages, followed by a more in-depth e-learning module in 2015. This module is accessible to all employees and mandatory for the targeted personal (approximately 30,000 employees). New employees are also required to follow these e-learning courses.
More targeted training courses are also provided for the most highly exposed functions, whether by the corporate or segments Compliance teams or by the Compliance Officers in the subsidiaries. In-depth training is available to the Compliance Officers and a digital training program, intended more specifically for new Compliance Officers, was launched in early 2019.
Feedback of information
The feedback of information is ensured primarily through an annual reporting process. This is performed by the Compliance Officers, reviewed by their Branch Compliance Officer and sent to the Chief Compliance Officer. This reporting contributes to monitor the roll-out and implementation of the anti-corruption program, through figures on key elements of the program, for example the number of training courses or due diligences performed.
The consolidated data resulting from this reporting, which reflects the results of the implemented policies, is presented once a year to the Executive Committee and the Board of Directors via the Governance and Ethics Committee. This presentation provides an opportunity to report the results of the undertaken actions at the very highest level and to review the roadmap aligned with the identified areas of improvement.
In addition, Total strives to develop a speak-up culture and asks its employees to report any situations that they consider to be contrary to the Code of Conduct. This culture is encouraged by regular communications that inform personnel about the various speak-up channels; employees, depending on the option they feel is most appropriate, can contact: their line manager, their human resources manager, their Compliance Officer or Ethics Officer, or the Group Ethics Committee. Both employees and third parties can refer to this Committee by writing to [email protected]. The Group will tolerate no retaliation measure toward anyone who submits a report in good faith and undertakes to respect confidentiality.
Assessment and monitoring
The anti-corruption program is monitored firstly by the line managers and the Compliance Officers who are in charge of ensuring the day-to-day implementation of the rules. Secondly, controls are performed by the Compliance function, in particular through assessment missions (referred to as compliance reviews) that are undertaken by a dedicated team within the Group’s Compliance department. Internal Control also performs annual tests, in particular by documentary checks, in order to verify the quality of the reporting performed by the Compliance Officers. Thirdly, Group Audit helps monitor the anti-corruption program through audits performed according to a framework that includes compliance topics or via more specific missions such as those relating to the Sarbanes-Oxley regulations.
In line with the principle of zero tolerance and in application of the Code of Conduct and the Anti-Corruption Directive, any infringement of the anti-corruption standards must give rise to disciplinary sanctions, up to dismissal. The Group’s resolve in this matter is recalled in communication media intended for employees as well as on the intranet. This resolve, which results from the management commitment, contributes, with the other pillars described above, to the robustness of the anti-corruption compliance program.
Fighting tax evasion
In this context, Total has developed a responsible tax approach based on clear principles of action and rigorous governance rules as set out in its tax policy statement, which was released in 2014 and is available online.
(1) RD 2018 p.380 – 9.3 Report on the payments made to governments
Since 2017, the Group also files a country-by-country reporting to the French tax authorities.
Since May 2019, Total has publicly endorsed the BTeam’s Responsible Tax Principles as it is a step further in the Group’s effort to promote a global responsible tax environment and drive best practice. Total will endeavor to bring its expertise and share experience to work with the B Team to help refine recommendations over time.
Promoting financial transparency
Total is committed to ensuring full transparency in respect of the revenue generated by its activities. The Group actively participates in intergovernmental initiatives and dialogue in this regard.
Promoting transparency among host States
The Extractive Industries Transparency Initiative (EITI) brings together players from civil society, host States and extractive companies. Its main purpose is to improve transparency in transactions between governments and companies from the extractive industry. Because it applies to all oil and mining players in EITI member countries, this initiative also contributes to strengthening the principles of accountability, fair competition and good governance.
Total joined the EITI as soon as it was launched at the 2002 Johannesburg Summit. The Group has always supported this initiative and continues to be actively involved, particularly with the presence of a Total representative on the Board of Directors.
Promoting the principles of transparency is part of a framework which is respectful of the sovereignty of the host countries: no lasting result can be achieved without the voluntary commitment of the States. In conjunction with the initiative's secretariat, the Group is committed to promoting the EITI principles among the host States in which it operates, and to assist them in the practical implementation of these principles.
Total supports governments efforts towards advancing transparency in accordance with the EITI framework, and advocates for the public disclose by countries of their Petroleum contracts and licenses.
To do this, Total strives to:
- Foster dialogue between the relevant Group officials and representatives of States, civil society and the EITI;
- Participate in the efforts of the EITI Board;
- Promote the EITI and its principles among the States in which it operates and, more generally, whenever it has the opportunity;
- Share resources and recommendations based on our experience.
The initiative is consistently recognised by the G8 (it became a focal point of the 2013 Lough Erne Summit) and the G20 also confirmed its support in this regard (Saint Petersburg in 2013).
Why support the EITI
The EITI has the advantage of being a voluntary, win-win initiative.
For companies, a transparent approach should facilitate the emergence of stable economic and political conditions, guaranteeing the sustainability of their investments. This process contributes to improved relationships with our shareholders and greater confidence in the markets. It also allows for better risk management and relationships with local communities.
Conversely, the stabilization of economic conditions attracts foreign investors, contributes to sustainable development of the host State and reduces poverty. The International Monetary Fund and the World Bank pay special attention to how transparent countries are, and as such encourage EITI membership.
Local communities benefit from a better understanding of how oil revenues are allocated.
Finally, civil society improves its links with investors and international organizations. The EITI promotes good governance which strengthens public institutions and raises civic awareness.
In addition to its commitment to the EITI, Total reports payments made by the Group's extractive companies to the governments, States and territories in which it operates. It details the total amount and type of payment, by country, by project and by government in its annual reference document.