At Grupa LOTOS, we undertake annual assessments of our organizational maturity.
Organizational maturity is understood as the level of professionalism of key organizational solutions, processes and activities, as well as their consistency with the best operating and management practices, which underpin the organization’s potential to achieve success in terms of protection and creation of value for its stakeholders.
Organizational maturity depends on the company’s systems and their constituent solutions which are crucial to the creation of value for stakeholders, relevant to the protection of company value, and key to its ability to operate on a day-to-day basis without any disruptions and in compliance with the law.
The following systems at Grupa LOTOS meet these criteria to the greatest extent: internal control, risk management, compliance, misconduct prevention and corporate governance.
Overall assessment of the systems
Results of the assessment of the LOTOS Group’s organizational maturity in 2013
As part of the internal control system, key organizational and process solutions have been put in place. The processes defined and deployed by the Company are characterised by a high level of organizational maturity, as evidenced by the fact that the controls have been designed in alignment with the objectives. The key control solutions have been formally established and written into the Company’s internal regulations. They work efficiently towards protecting Company value and allowing the Company to operate in a systematic and effective manner.
As part of the risk management system, we have established solutions of key importance to correctly designing its operation, which play a crucial part in ensuring the delivery of the system’s main objective to support the management process and creation of added value. To ensure that the system operates properly, the Enterprise Risk Management Policy has been communicated, and participants of the risk management process, including risk owners, Risk Management Coordinator and Risk Management Committee, have been appointed. Detailed internal regulations defining the manner in which appropriate actions should be taken within the framework of the risk management system have also been established.
As part of the compliance system, active steps are taken to ensure compliance of the Company’s activities and internal regulations with applicable laws. The Company also takes care to ensure the compliance of its actions with the requirements laid down in the organization’s internal regulations.
As part of the misconduct prevention system, we continued managing the risk of misconduct in a comprehensive and structured manner, while fostering a corporate culture of ethics. Solutions are in place to mitigate the risk of both external and internal misconduct. The organization is building up its knowledge of misconduct involved in its activities and is developing a systemic approach to identifying and monitoring solutions to prevent and detect misconduct. Our consistent efforts to foster a culture of ethics by raising the awareness of desirable attitudes fully support and help develop the misconduct prevention system. It takes time and consistency to achieve the expected outcomes.
As part of the corporate governance system, we have established most of our key solutions, including those governing the relations between the Company’s corporate bodies and other internal relations (connected with the approach to managing the organization and its resources), which are to be consistent with applicable standards and best practices. The solutions adopted with respect to the Company’s corporate bodies and their mutual relations are generally consistent with the requirements defined in the Code of Best Practice for WSE Listed Companies.
The results of the overall assessment of the Company’s organizational maturity testify to the fact that we are an organization oriented towards professionalism and adoption of the best operating and management practices. We take steps to protect Company value, as evidenced by our well-developed internal control system and corporate governance solutions, as well as by our implementation of the misconduct prevention system. We focus on being able to operate without disruptions and in compliance with the law.