Company name

Polski Koncern Naftowy ORLEN S.A.

Title of solution

Changing the corporate culture in PKN ORLEN SA

Subtitle (just one sentence explaining what it is)

Establishing Corporate Values
Create the PKN ORLEN Code of Ethics
Choose the Company Ombudsman

Theme (please select all that apply).

Communication & Transparency

Problem (description of the initial problem/business challenge in 8 to 10 lines)

There was a serious image crisis in PKN ORLEN SA.
Public TV provided live broadcasts showing the work of the Parliamentary Investigation Commission (called the “ORLEN Commission” by journalists). A number of witnesses spoke about ORLEN’s internal matters. External studies conducted in 2004 showed that the name ORLEN had negative associations for 51% of respondents. Employees were not satisfied with the quality of the company’s internal communications and corporate culture (internal studies in 2005). 33% of respondents said they had no information on important matters in the company, 48% thought that managers did not follow the ethics rules, 46% knew of cases of abuse of power within the company.
These problems led us to initiate work on a new internal communication strategy and changing corporate culture.

Solution (description of solution in 25  to 30 lines)

We started from communication, which is one of the main tools in building corporate culture. We set up the following objectives: 1. to improve the efficiency of vertical and horizontal communication, 2. openly communicate changes and problems to increase employer credibility, 3. to build employee’s engagement and identification with the company. We developed our internal media (12 pages magazine, internal radio and intranet), we are strengthening cooperation with press office and managers over project management and changing management communication. We are organizing a series of events for employees including sports and integration meetings.
This was a great base for changing the corporate culture. We were going to make this change by establishing Corporate Values, creating the Code of Ethics and electing the Company Ombudsman.
Main activities of this process included: 1. Focus groups of PKN ORLEN employees concerning the current and the desired corporate culture, 2. Meeting of the Management Board, Managing Directors and persons responsible for communication and HR, to define the key values that constitute the foundation of the new culture, 3. An open debate with employees via the corporate media, 4. Cooperation with external specialists, mainly academics, 5. Discussion with PKN ORLEN labour unions and the Supervisory Board.
As a result, employees' own priorities were established: Corporate Values (Consistency in pursuing goals, Cooperation, Integrity, Responsibility, Entrepreneurship), Code of Ethics (the company and its environment (local communities and natural environment, the company and its partners (customer, contractors), Internal relations (shareholders, employees) and choosing the Ethics Ombudsman. To prepare and supervise the election of the Ethics Ombudsman an Ethics Workgroup was established, consisting of representatives of all company departments.  Information on the election and presentation of candidates was placed in the corporate media using interactive tools. Members of the Board organized meetings with Managing Directors and other managers to explain the necessity of building a new corporate culture in PKN ORLEN S.A., discuss key values, preferred attitudes and reflect these in the Code of Ethics. Management staff was handed the Code of Ethics, posters with Key Corporate Values, and materials for meetings with employees. Managers organized workshops for their own teams and prepared Best Practice Documents (by transforming Key Values into a one-page document which defined the rules of proper conduct in specific functional areas).
We have transferred The Corporate Values and Code of Ethics to almost all subsidiaries. We have prepared “Newly Employed Info Pack” and organize information meetings for new ORLEN employees.

Constraints (5 lines)

1. Complexity of PKN ORLEN (number of employees, large range of business fields: administration, production, logistics, sales, historical background = company was formed in 1999 after merger of 2 independent and competitive Plock – and Warsaw-based entities and also two different corporate cultures. 2. Great fluctuation of the management across the company and their low engagement into direct communication.

Achieved benefits (5 lines).

Internal studies in April 2006: 9% of respondents said they had no information about important matters in the company (33% in May 2005), 37% thought that managers did not follow ethics rules (48% in May 2005), nearly 25% knew of cases of power abuse in the company (46% in May 2005). 2007 survey is under preparation.

Place of implementation

PKN ORLEN – we involved members of Management Board, middle management and every single employee.

Year of launch of Solution.

February 2006.

Relevant websites

www.orlen.pl