Hebou Code of Conduct

CODE OF CONDUCT

1 INTRODUCTION

Hebou recognise that the manner in which the Company and its employee, contractors, suppliers and agents conduct themselves both professionally and personally is central to our Integrated Management System and our capacity to implement:

• AS NZS ISO 9001-2016 Quality Management Systems

• AS NZS ISO 14001-2016 Environmental Management Systems

• AS NZS ISO 45001-2018 – Health and Safety Management Systems

  We are committed to ensuring that the Code of Conduct is utilised in the IMS and is developed in a consistent format, to agreed protocols and maintains its currency over the life of the document.

2 PURPOSE AND SCOPE

Hebou promotes a workplace that is friendly, harmonious, and safe and recognises the local communities in which we work.

To ensure our success in this endeavour, it is incumbent on the Company and its managers to set conduct expectations and ensure that persons performing work for or acting on behalf of Hebou abide by this Code of Conduct when dealing with clients, colleagues and the wider community.

The Code of Conduct also supports the Company in complying with all applicable national and international laws.

This Standard applies to all Hebou employees, contractors, subcontractors, agents and consultants. For the purpose of this Standard they shall be collectively referred to as employees.

That Standard is applicable in all of our workplaces whether office or project bases, as well as Company supplied accommodation.

3 LEGAL AND OTHER OBLIGATIONS

The legal and other obligations applicable to this code include but are not limited to:

• Employment Act 1978

• Employment Regulation 1980

• Employment of Non-Citizens Act 2007

• Employment of Non-Citizens Regulation 2008

• Industrial Relations Act 1962

• Industrial Relations Regulation 1972

• Companies Act 1997

• Companies Regulation 1998

• Companies Rules

• Discriminatory Practices Act 1963

• Anti-Money Laundering and Counter Terrorist Financing Act 2015

• Criminal Code (Sexual Offences and Crimes Against Children) Act

• Lukautim Pikinini Act 2015

• Whistlebower Act 2020

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4 SUPPORTING DOCUMENTATION

Supporting documentation for this procedure is identified at Attachment 1.

5 DEFINITIONS

Employee Contractor

Consultant Subcontractor

Any person employed on a Hebou site or premises either directly or indirectly.

A person or organisation (including Contractor personnel and their subcontractor personnel) engaged to deliver services for Hebou.

The provider of professional services or expert advice in a particular field to Hebou.

Any person, business or supplier engaged by Hebou or supplier to perform all or any portion of the services or related activities on behalf of Hebou or supplier.

6 RESPONSIBILITY AND ACCOUNTABILITY

6.1 Managing Director

Is responsible for:
The development and authorisation of this Standard.

6.2  General Manager

Is responsible and accountable for:

• Development and review of this Standard and related documents

• Addressing significant breaches of the code

• Reporting of overall analysis of breaches of the code to Executive Team

6.3  Business Unit Managers

Are accountable for:

Ensuring that employees are inducted into the requirements of the Code of Conduct and understand their obligations to comply with the code
Management and reporting of breaches of the code
Monitoring and evaluating the operation of this code

6.4  Human Resource Manager

Is responsible and accountable for:

The development of this Standard and related documents
Review and maintenance of this Standard and related documents
Compliance of this Standard within Hebou
The provision and distribution of this Standard to all persons with a legitimate right to know
Management and reporting of breaches of the code
Monitoring and evaluating the operation of this code

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6.5  Project Managers, Senior Engineers

Are responsible and accountable for:

The implementation of this Standard within their Projects

Monitoring and reviewing their projects compliance to this Standard

Management and reporting of breaches of the code

Monitoring and evaluating the operation of this code

6.6  Supervisors

Are responsible for:

Monitoring and evaluating the operation of this code

Management and reporting of breaches of the code

6.7  Employees

Are responsible for:

Complying with the Code of Conduct, applicable laws, regulations, as well as Hebou policies and system requirements

7 DESCRIPTION

7.1 Visions and Values

To assist Hebou in building strong and ethical relationships with its employees, clients and the community, this Code of Conduct is aligned with Hebou’s vision and values. Hebou shall incorporate its vision and values into operational activities and business objectives.

7.1.1 Vision
For Hebou to be acknowledged as the civil engineering contractor of choice throughout Papua

New Guinea.

7.1.2 Values

• The Health, Safety and Welfare of our employees, contractors’, clients and communities are always our priority

• Focus on client expectations of time, cost and quality

• Uncompromising standards of work

• Integrity, fairness and progression in the workplace

• Respect for communities and the environment

• Code of Conduct

• Teamwork within Hebou, and with our designers

• Use of reputable subcontractors, consultants and suppliers

• Pride in our name and pride in our work

7.1.3 Professional Conduct

All employees are expected to act consistently with fundamental Hebou values, ethical behaviour, respect for others and accountability and transparency in business conduct.

Employees are expected to:

• Ensure all business is conducted in accordance with the law and high ethical standards, including equal opportunity, anti-discrimination laws, gender equity and social inclusion and gender based violence.

• Perform their duties in a manner that minimises environmental impacts and maximises workplace safety

• Respect confidentiality and not misuse Hebou information, assets or facilities

• Ensure their actions do not bring the Company into disrepute

• Avoid real or perceived conflicts of interest

• Denounce behaviour that might be perceived as bullying or intimidatory

• Exercise fairness, courtesy, respect, consideration and sensitivity in all dealings

• Act with honesty, integrity, decency and responsibility at all times

• Employees should behave and present themselves in a professional and positive manner that

  supports Hebou’s vision and values at all times when an employee is representing Hebou

• Not engage in any act of violence and in particular gender based violence within or external to the

  workplace.

7.2 Business Relations

The process for development and control of internal documents is illustrated below.

7.2.1 Confidentiality

All employees are required to protect proprietary, commercial and other information that is confidential to the Company.

The obligation of confidentiality shall continue after an individual’s employment with Hebou ends.

Information that is not publicly available concerning the activities, results or plans of the Company must only be used for authorised purposes.

Employees shall be required to sign a confidentiality agreement on commencement of employment or contract.

7.2.2 Conflicts of Interest

Employees of the Company are expected to act at all times exercise sound judgment unclouded by personal interests or divided loyalties.

Employees must avoid the appearance of, as well as actual, conflicts of interest in both their performance of duties and in their outside activities.

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Where conflicts of interest either perceived or real exist, the issue should be raised with the employee’s direct supervisor, who will ensure it is raised and clarified with Senior Management.

7.2.3  Entertainment, Gifts and Gratuities

Employees are to exercise care when giving or receiving business related gifts.

Entertainment of clients and suppliers provided (or received) should not extend beyond a level reasonably required to maintain a professional business relationship. The following principles should apply:

• The hosting of Company sponsored functions or provision of gratuities is within the delegation and authority levels.

• When considering options for expenditure employees will assess the value to the business e.g. the provision of coffee or a light lunch, over the provision of dinner.

• Where alcohol is provided at the function, it is hosted in a socially responsible manner, which will not bring the Company into disrepute.

• Expense records are maintained and allocated to entertainment cost code in the chart of accounts.

  The employee must consider the monetary value of the gift and legal requirements when determining whether a gift should be retained, returned or shared.

  Where doubt exists on what is reasonable, the issue should be raised with the employee’s direct supervisor, who will ensure it is raised and clarified with Senior Management.

7.2.4  Bribes and Kickbacks

Employees of Hebou must not offer or accept cash or any other incentive, inducement or reward in any form.

In particular payments to win projects or influence a business decision in the Company’s favour.

Violation of this is considered serious and will subject an employee to disciplinary action as well as potential criminal prosecution.

Employees should take all practical steps to ensure that agents, contractors or business partners do not engage in conduct on Hebou’s behalf that would contravene this Standard.

Any attempted or alleged bribery must be raised with the employee’s direct supervisor, who will ensure it is raised with Senior Management.

Senior Management will initiate an investigation into the allegations. Where appropriate, Senior Management will utilise an independent investigator.

Where allegations are made concerning government officials, Senior Management will report these allegations to the appropriate government department.

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7.2.5  Donations Grants and Requests

Hebou over years has supported many worthy causes in PNG. This has included but not been limited to:

• The Sir Theophilus Foundation

• Red Cross

• Buk Bilong Pikinini

• Cricket PNG

• Other Not for Profit Organisations
  This support has been through either direct financial support or the provision of goods, service and

  other Company resources.

  Where direct requests for financial support are requested they must be:

• In writing clearly stating the nature of the request and amount.

• On official letter head.

• Authorised by the senior organisation officer.

  All requests for financial donations/financial assisted must be forward to the Managing Director. All requests must be authorised by the Managing Director

  Hebou have additionally provided some “in kind” support for small communities and/or landowners during our project activities, please refer to the table of delegated authorities.

  Requests of this nature should:

• be in writing.

• assessed as beneficial to the Company interests.

• within the responsible persons delegations and authorities level.

• Kept as a documented record.

7.2.6  Donations and Support to Political Parties

As a significant company group in property and infrastructure development, construction and materials supply, Hebou has a responsibility to its shareholders and stakeholders to participate in the process of public policy development. Therefore, Hebou is a member of various networking forums organized by political parties and attends networking events that support political parties as they participate in the democratic system of parliamentary government.

Hebou takes a strict principles-based approach to making political donations. These principles are:

• strict compliance with all laws;

• an honest and transparent approach at all times;

• all donations must have a public policy focus with the aim of creating value for customers,

  partners, the community and shareholders; and

• a multi-partisan approach must be taken as much as is practicable.

  Some public policy priorities which Constantinou Group advocates for include:

• quality and sustainable property and infrastructure development;

• strategic priorities to create value for Hebou customers, partners, the community and

  shareholders.

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Hebou may, at its discretion, from time to time authorise donations under the PNG Organic Law on the Integrity of Political Parties and Candidates to either:

• The Central Fund

• A Registered Political Party

• A candidate for election

  Any request for donations will not exceed the limits set within the law.
  Any request for donations must be forwarded to the Managing Director. Requests for donations may only be authorised by the Managing Director. Where a contribution is authorised and made to a political party Hebou will:

• Within 30 days of making the contribution, inform the Registrar of Political Parties of: o the amount of the contribution; and
o the name of the political party or candidate, as the case may be, to which or

whom the contribution was made; and
o the date on which the contribution was made; and
o such other matters concerning the contribution as may be prescribed.

7.2.7 Hebou Personnel and Agents Standing for Election

Hebou respect the right of every PNG citizen to stand for public office. Where a Hebou employee or agent stands for public office, they must:

• Inform the Company of their intention to stand.

• Not utilise any Company resources of any kind (including Company time) without the direct

  approval in writing of the Managing Director.

8 EMPLOYMENT PRACTICES

8.1

Human Resources

Hebou has implemented a wide range of human resources policies, procedures, standards, and guidelines.

The key points of the policies, procedures, standards and guidelines, as well as any applicable laws will be included in the Company induction.

It is the responsibility of all employees to understand and comply with all policies, procedures, standards and guidelines at all times.

To understand and comply with these documents can all be obtained from the employees’ direct supervisor of the Human Resources department.

Where changes to policies, procedures, standards and guidelines are implemented, the Human Resources department will ensure they a fully communicated to all parties with a legitimate right to know.

Equal Employment Opportunities and Anti-Discrimination

8.1.1

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Hebou have a commitment to ensuring all employees or potential employees are given equal opportunities and are not subject to discriminatory practices, when applying for vacant positions or promotions. This commitment is based on the following principles:

• No person is unlawfully excluded from consideration for employment because of race, colour, religious creed, national origin, ancestry, sex, age, veteran status, marital status or physical challenges.

• Management and supervisory levels have the responsibility to further implement this policy and ensure conformance by subordinates.

• Any employee who engages in discrimination can be subject to disciplinary action

• Any supervisory or managerial employee who knows of such behaviour and fails to take

  immediate and appropriate corrective action could also be subject to disciplinary action.

• Any individual who is the target of discrimination is encouraged to discuss the matter with the

  Project/Business Unit Manager.

• Any individual who feels such a discussion would be or has been futile, unsatisfactory or

  counterproductive should contact the Human Resources department.

• Furthermore, we will not tolerate any form of discrimination or harassment of our employees by

  co-workers, supervisors, customers, or vendors. This commitment extends to our policies on recruiting, advertising, hiring, placement, promotion, training, transfer, wages, benefits, termination and all other privileges, terms and conditions of employment.

• Hebou will actively identify work opportunities for gender equity and social inclusion target groups.

8.2 Responsibility to the Community

Hebou recognise we have a “Duty of Care” to act responsibly to minimise the impact of our operations on the communities in which we operate.

As a good corporate citizen, all employees, contractors and consultants must and are expected to maintain, open, cordial and professional relations with these communities.

8.2.1  Health, Safety and Environment

Hebou is committed to ensuring that the communities in which we operate are not exposed to unacceptable risk arising from our operations.

Employees will ensure that when interacting with our community’s appropriate strategies will be implement to reduce the risk of accident, injury or impact on the environment.

As a member of the Hebou team it is important that employees act and promote these principles in the workplace and raise any concerns in the appropriate forum.

8.2.2  Addressing Community Concerns

Where community members raise concerns over health and safety or environmental issues the responsible managers will ensure:

• All concerns are fully documented

• Investigated

• Remedial action to address the issue is developed and implemented

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8.2.3 Requests for Compensation

Where potentially impacted communities request or demand compensation arising from alleged impact on health and safety or the environment. These requests should be forwarded to senior management for assessment.

At no time are employees without the appropriated authorisation allowed to admit to an alleged compensable act or to the make promises with regard to compensation.

9 INTERPERSONAL RELATIONSHIPS

Hebou recognise that many personal relationships occur when people meet within the working environment.

We additionally recognise that many of our employee’s children and relations work within the business.

We do however expect that standards of interpersonal behaviour must be maintained at all times. This includes but is not limited:

• Acts of violence and in particular gender bases violence (GBV) WILL NOT BE TOLERATED even when occurring outside of our operations.

• Inappropriate sexual relations or conduct.

• Utilising personal relationships to unfairly promote or provide unmerited opportunities or benefits.

• Gossip based on unfounded allegation and/ or innuendo.

  10 DISCIPLINARYACTION

  Employees who breach this Code of Conduct can be subject to disciplinary action. This includes:

• Termination for Cause

• Suspension without pay

• Letters of Warning

• Verbal cautions

10.1 Termination for Cause

The basic principles will apply when considering termination of an employee. Termination must be:

• Lawful: meaning it must satisfy the requirements of the PNG Employment Act.

• Fair: meaning whether or not the principles of natural justice have been satisfied by the employer.

• Rules & Policies must be posted on all notice boards in an understandable language and form not

  giving room for the excuse of “not knowing the rules”. Examples of Termination for Cause Events:

• Breach of Law – Theft of Company property, embezzlement, assault.

• Breach of Code of Conduct – Bringing the Company into disrepute, dishonest dealings, bribery.

• Breach of Policies – Drunk at work, misuse of Company property, bullying and harassment.

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10.2 Suspension

Suspension can be used as a disciplinary action depending on the seriousness of the offence. It must not be more than once and 2 weeks or less.

Suspension due to an offence will require a formal documented investigation as soon as practicable after the event. It must take less than a week and a formal Letter of Suspension must be issued to the employee.

Investigation documents and Letters of Suspension must be signed by the responsible manager and the employee and recorded in the employees file.

10.3  Letters of Warning

Warnings can be given as first, second and final warnings, depending on the seriousness of the event.

Warnings can also be issued as First and Final, depending on the seriousness of the event.
Warning letters must be signed by the employee and the responsible manager issuing the warning. Letters of Warning recorded in the employees file.
Where the employee refuses to sign, it should be noted as “refused to sign on the notice”.

10.4  Verbal Cautions

Verbal cautions can be used as a tool to improve employees’ performance prior to a Termination for Cause, suspension of Letter of Warning.

Where verbal cautions are utilised, the responsible person must maintain a diary note as evidence the discussion took place. This should be initialled by the employee.

11 REVIEW

This document will be reviewed and modified where significant changes to statutory obligations or Hebou policies, standards and procedures occur.