Underpinning its work the Enel Group has a solid system of ethics. This system is a dynamic collection of rules which is constantly oriented at introducing the best international practices which all the people who work in Enel and for Enel must comply with and apply in their daily work.
Code of Ethics
In 2002 Enel adopted the Code of Ethics, which expresses its commitments and responsibilities in the conduct of its affairs and corporate activities. This Code applies both in Italy and abroad, in light of the cultural, social and economic diversity of the various countries where Enel operates.
Policy on Human Rights
In order to enact the United Nations Guidelines on Business and Human Rights, in 2013 Enel approved the Policy on Human Rights, which sets out the commitments and responsibilities in regard to human rights entered into by employees of Enel SpA and of its subsidiaries, and promotes respect of the Policy by contractors, suppliers and commercial partners in its business relations.
Zero Tolerance of Corruption Plan
The Plan was adopted in 2006 and confirms the Group’s commitment to ensuring correctness and transparency in conducting corporate affairs and activities. All parts of the organization are responsible, as appropriate, for effective risk management by putting adequate control and monitoring systems into place.
As from January 2016, it has been possible to use a new online communication channel, only at Group level, to notify any violation or suspected violation of the compliance programs adopted by the Group or by the individual companies, such as: the Code of Ethics, the Policy on Human Rights, the Zero Tolerance of Corruption Plan, the Enel Global Compliance Program, the Organizational and Management Model ex Legislative Decree no. 231/2001 and the other national compliance models which may be adopted by the Group companies in conformity with local law (www.enel.ethicspoint.com).
During the analyses undertaken to ascertain possible violations of the Code of Ethics, no facts or events emerged involving the harming of the rights of minors, while in 4 cases the violations regarded issues relating to “work practices”: 2 cases referred to discriminatory conduct/mobbing and 2 regarded the corporate climate. For each confirmed violation, Enel has defined specific action plans.
Enel Global Compliance Program
The Enel Global Compliance Program, which is aimed at the Group’s foreign companies, integrates, where they exist, any compliance programs (risk prevention models) adopted by those companies in conformity with local law. This document, which was approved by the Board of Directors of Enel SpA in September 2016, is inspired by the main international regulatory framework and qualifies as a governance instrument aimed at strengthening the Group’s ethical and professional commitment to prevent the committing of illegal acts abroad from which corporate criminal liability may arise together with the related reputational risks. The type of situation addressed in the Enel Global Compliance Program – which is accompanied by the provision of conduct standards and areas to be monitored by way of prevention – is based on illicit conduct which is generally considered as such in most countries, such as for example crimes of corruption, crimes against the Public Administration, false accounting, money-laundering, crimes committed in violation of the laws on occupational health and safety, environmental crimes, etc.
Organizational and Management Model
Legislative Decree no. 231/01 introduced into Italian law a regime of administrative (but de facto criminal) liability on companies, for some types of crimes committed by the related directors, executives or employees in the interests of or to the advantage of the companies themselves. Enel was the first company in Italy to adopt an Organizational and Management Model corresponding to the requirements of Legislative Decree no. 231/01 (231 Model) as early as 2002. Enel SpA started in 2015 and continued in 2016 a review of its 231 Model in order to take account of the regulatory update, which entailed an enlargement of the scope of the crimes which are considered relevant under Legislative Decree no. 231/01, as well as to align the Model to the organizational structure in force. In particular, a review was arranged of the General Part of the 231 Model and the updating of the Special Parts “G” (crimes of receiving stolen goods, money-laundering, use of money, goods or assets of illegal provenance and self-laundering), “H” (IT crimes and illicit processing of data) and “L” (environmental crimes).
Enel’s commitment on human rights
Enel is aware of the fact that a company is responsible for the respect of human rights not only in the actions which involve it directly, but, more generally, also indirectly in the context in which it operates. As required by the Guidelines and on the basis of policy principles, the Human Rights Compliance Assessment (HRCA) project is continuing in the various countries, through the establishment of multi-function and multi-country work groups which enable the definition of global policies and their exposition while taking into account local situations. As part of the work to define the Group’s priorities (see “Analysis of priorities”) various stakeholders are asked their opinion on human rights in various aspects. In general, Enel’s policy focuses on two fundamental areas: labor practices and relations with communities.
The new due diligence process
During 2016 Enel redesigned its due diligence process in order to align it to international best practice, focusing the analysis at first on the perceived risk assessment for human rights in the various areas where the Group operates.
In particular the process envisages 5 stages:
- assessment of the country risk on labor rights;
- assessment of the country risk on rights of the community and the environment;
- impact assessment;
- development of an action plan;
- monitoraggio del piano e rimedi.
During 2016, Enel designed the aforementioned process through the involvement of representatives of the various countries where the Group operates, after defining the country risk assessment questionnaire and launching two parallel projects in Latin America to verify its operation.
The country risk assessment on labor rights
On the basis of the statement by the International Labor Organization (ILO) on labor principles and fundamental rights, and, in line with the indications of UNICEF and the recent regulatory proposals (such as for example the Modern Slavery Act of 2015), a country risk assessment questionnaire has been prepared connected to labor rights and in particular: freedom of association, child labor, forced labor, diversity and inclusion. The questionnaire was administered, both through local interviews and with an online survey, to various stakeholder categories (communities, institutions, customers, etc.), defined in line with the provisions of the priority analysis, and concerned 5 countries: Argentina, Brazil, Chile, Colombia and Peru. The assessment of perceived risk is based on both the severity of the issue and on the likelihood of an actual violation. The combination of its components enables identification of the Risk Prioritization Number - RPN, in accordance with the following matrix.
From the analysis of the results it emerged that the perception of the risks linked to labor rights in Latin America, albeit taking into consideration the due local differences, tends to be medium to low. For each issue and for each country the areas to be monitored have been identified to guarantee their constant control
Perception of risks linked to labor rights in Latin America
Working groups on human rights
During 2016 the work continued of the internal work groups to oversee human rights, such as the activities on diversity and inclusion and those relating to the purchasing process (see the chapters dedicated to our people and to the sustainable supply chain), confirming Enel’s desire to have a preventative and not reactive approach to such issues. In addition, in 2016 Enel continued to participate in the initiative (UNICEF Business Lab) launched by UNICEF Italia, a platform which involves institutions, companies, the academic world, the media and the main stakeholders from the Italian economy on issues of business and human rights, children and adolescents.