Integrated
Annual Report 2011

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Grupa LOTOS S.A. - Integrated Annual Report 2011
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Awards and distinctions

The Company takes pride in the distinctions received from external specialists and experts.

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Members of the LOTOS Group have received numerous awards and distinctions in areas of key importance, such as corporate social responsibility, quality of products and services, and corporate management. Presented below are the distinctions earned by members of the LOTOS Group in 2011, by categories.

Corporate social responsibility

  1. Grupa LOTOS won the 1st place in the “Investor relations” category of the annual ranking “Listed Company of the Year”, and the 5th place in the “Listed Company of the Year” ranking prepared by the Pentor Institute for the Puls Biznesu weekly. The first place in the “Investor relations” category speaks of the high quality of the information and market communication policies in place at Grupa LOTOS. In this category, the strongest focus was placed on how the Company engages in dialogue with individual and institutional investors, as well as how promptly it responds to investors’ inquiries. “Listed Company of the Year” is a ranking of the best companies listed on the Warsaw Stock Exchange, compiled according to the following criteria: competence of the board, achievements in a given year, growth prospects, investor relations and quality of services and products. Winners are selected by capital market experts – stock analysts, investment advisers and brokers representing brokerage houses and offices, insurance companies, investment funds, capital departments of banks, and consulting firms.
  2. Grupa LOTOS received a distinction in the “Corporate governance and corporate social responsibility” category of the Business Award of the President of the Republic of Poland. The purpose of this prestigious award is to honour companies which have a strong stimulating effect on Poland’s economy, while contributing to its prestige and positive image abroad.
  3. Grupa LOTOS was awarded the “Fair Play Company” certificate in a contest organized by the Institute for Private Enterprise and Democracy. The “Fair Play Company” programme was created to promote reliable and ethical businesses operating in Poland, which uphold high moral values and fulfil their duties towards customers and suppliers in an exemplary manner. Such companies stand out for their teams of committed, creative and satisfied employees, as well as above-average corporate social responsibility, social sensitivity and charity policies.
  4. Our scholarship programme – “LOTOS Cup – In Search for the Champion’s Successors” – received an award in the “Corporate scholarship programme” category of a contest organized by the Good Network Foundation and the Polish-American Freedom Foundation. The award was presented during the “Civic scholarship programmes” conference. The purpose of this award is to set high standards for scholarship programmes, so they would allow young people to successfully cultivate their talents and make choices in life based on dreams and abilities only. Good scholarship programmes foster the development of local communities, providing a solid foundation for the future social and human capital.
  5. Grupa LOTOS is among the leaders of the BI-NGO 2010 Index. The index focuses on the quality of internet communications related to social commitment of the 500 largest Polish companies, as listed by the Rzeczpospolita daily. The Company received the maximum score in the ranking. The BI-NGO Index surveys the following main areas: a company’s policy and leadership, CSR strategy, relationship building, financial transparency, performance measurement and communication. 
  6. Grupa LOTOS won the Human Resources Management Leader awards, receiving the Amber Statuette. For the fifth consecutive time we were awarded by the Institute of Labour and Social Studies – this time for human resources development under our internally developed programme named “The Master”. The prize is given annually in recognition of achievements in the following fields: workforce restructuring, employee evaluation systems, employee training and development, advanced human resources management methods, and work–private life balance. The selection of winners was preceded by audits and the assessment committee’s recommendations. The judging panel awarding the title includes the Minister of Labour and Social Policy and Director of the Institute of Labour and Social Studies, as well as representatives of the National Bank of Poland, the Polish Confederation of Private Employers Lewiatan, the Polish Human Resources Management Association and the Polish Business Roundtable. The contest is organized under the auspices of Waldemar Pawlak, Deputy Prime Minister and Minister of Economy, to promote knowledge and facilitate sharing valuable practical experience in HR management, by singling out companies which are successful in this area of management.
  7. Grupa LOTOS came second in the ranking of the best energy sector employers, prepared by Antal International. In 2011, the Company was named one of the most desirable employers by over 1,900 Polish experts and managers working in different fields. As the most sought-after characteristics of an employer they indicated its size and prestige, as well as management style and organizational culture.
  8. Grupa LOTOS ranked first at the national level of the competition “Employer - Provider of Safe Work”, in the category of companies with headcounts of over 250. The award is granted by the Regional Award Committee of the State Labour Inspection Authority in Gdańsk. As the winner, Grupa LOTOS was entered on the Golden List of Employers, thus joining a group of employers widely recognised for their responsible approach to workplace safety and staff’s well-being. The State Labour Inspection Authority has stressed that work safety leaders, apart from implementing effective systemic solutions and supplementary measures, are also expected to put considerable effort into raising workplace safety awareness and adequately preparing staff to their duties.
  9. Grupa LOTOS ranked first in the “Employer - Provider of Safe Work” competition in the Province of Gdańsk. The award was granted in the large employers category. The aim of the award is to promote best practice in occupational safety and health, and to encourage employers to create safe and ergonomic workplaces.
  10. Grupa LOTOS received a prize from the Office of Technical Inspection for the long standing cooperation and active contribution to the creation of the Polish system of technical safety.
  11. LOTOS Parafiny won the first award in the “Employer - Provider of Safe Work” competition in the Province of Rzeszów, in the category of companies with headcounts of over 250. The competition was organized by the Regional Labour Inspector of Rzeszów. 
  12. LOTOS Jasło received the golden statuette “2011 Patron of Culture” from the Mayor of Jasło for supporting the town’s cultural events. The distinction is awarded to sponsors of cultural events.
  13. LOTOS Czechowice received the Platinum Laurel of Skills and Competence “Socially Responsible Business”. The Regional Chamber of Commerce in Katowice awards Platinum Laurels to outstanding individuals, organizations and institutions that operate on national and international levels, engaging in work of universal value and exemplary character.
  14. Grupa LOTOS was awarded the title of the “2010 Patron of Sports in the Province of Gdańsk”. The winner was chosen through a poll carried out by the Gazeta Wyborcza Trójmiasto daily as part of the “2010 Sport Stars of the Gdańsk-Gdynia-Sopot Agglomeration” competition. 

The LOTOS brand – quality of products and services

  1. The LOTOS brand received a Business Superbrand distinction from The Superbrands Ltd. – an independent organization operating in over 80 countries worldwide. The purpose of the initiative is to promote and award brands which have earned a high reputation in the consumer or business sectors and have gained a significant competitive edge by offering unique value to customers. The Business Superbrand title is awarded by an independent judging panel of marketing, advertising and branding experts, who also take into account the opinions of 2,700 consumer survey participants.
  2. LOTOS Oil products once again won the European Medal for products and services meeting the highest European standards of quality. In 2011, the judging panel selected the LOTOS Quazar K oil line for the award. LOTOS Quazar K oils have been designed for use in KIA cars, KIA being a long-term strategic partner of LOTOS Oil. Every nominated product or service must meet the legal requirements and hold the relevant licenses and patents. A company’s growth rate and previous awards and certificates are also important when selecting winners.
  3. The LOTOS service station located in Bydgoszcz, ul. Wojska Polskiego, received the full score – 100 per cent – in an international mystery shopping survey aimed at reviewing the service quality of service stations in Poland and abroad. The survey was carried out by International Service Check. According to its results, the entire LOTOS chain ranked 3rd in Poland. The survey involved 9 countries, 31 service station chains and 52 stations.
  4. For the third consecutive time, LOTOS Dynamic fuels won the 1st place in the “Consumer’s Laurel” programme in the premium category, thus securing the special prize – the “2011 Consumer’s Laurel Grand Prix”. LOTOS Paliwa is the only company in the fuel sector to have received the award.
  5. LOTOS Kolej was distinguished as a “2011 Leader of Rail Transport” in the carrier category. The title is granted to licenced rail carriers of both passengers and cargo. The competition is organized by the Rail Transport Forum, the editorial board of Transport i Komunikacja bimonthly and the Polish Association of Engineers and Technicians of Transportation. Winners in each category are selected by a judging panel composed of recognised researchers, experts, as well as representatives of industry organizations and the media. The company received the award for its dynamic growth, the transition from a regional operator of a railway siding to a major rail carrier on the Polish market, significant investments in motive power units and the application of advanced IT solutions for transport, which result in higher quality of services offered by Polish carriers.
  6. LOTOS Parafiny received the “Polish Product 2011” certificate from the Judging Panel of the Central Office for National Certification – Company of the Year category. The purpose of the certificate is to promote Polish businesses and products on the domestic and international markets.

Management quality

  1. Grupa LOTOS was awarded the “Master of Business” title in the Energy and Raw Materials category by the Businessman.pl monthly. The award is known for a wide range of criteria involved. The judging panel reviewed a variety of criteria, including economic performance, bold business vision, excellent management skills, ability to cope with adversities, expansion into new markets, good staffing policy and corporate social responsibility.
  2. Grupa LOTOS and LOTOS Oil received the “Ambassador of Polish Economy” title in the Exporter category. The competition was organized by Business Centre Club under the auspices of the Minister of Foreign Affairs. The prime objective of the initiative is to encourage domestic entrepreneurs to become more involved in promoting Poland internationally as a reliable business partner.
  3. Paweł Olechnowicz, President of the Board of Grupa LOTOS, received the “Golden Oxer” business award from the Employers of Pomerania, in recognition of the successful implementation of the 10+ Programme. Oxer is a double horse jumping obstacle; horses often stumble on oxers, sometimes throwing their riders off the saddle. Accordingly, the award is given to businessmen who have made a great leap into a new economic dimension.
  4. Paweł Olechnowicz, President of the Board of Grupa LOTOS, received a distinction in the Business Ethics category of the “Faces of Business” ranking organized by the Dziennik Gazeta Prawna daily and TVN CNBC.
  5. Grupa LOTOS was named the “2011 Refinery Plant of the Year” during the Central and Eastern European Refining and Petrochemicals conference organized by the World Refining Association. WRA is an independent British organization established 14 years ago to support the development of the industrial and energy sector. The Company received the award for its successful implementation of the 10+ Programme from an international judging panel of sector experts.
  6. Grupa LOTOS received the “Golden Laurel for the Company with the best IT-systems of 2011” in the “Teleinfo 100” competition run by the editorial board of the Businessman.pl monthly in the Power and Fuel Sector category. The distinction was awarded for three IT projects: CRM database, Enterprise Risk Management (ERM) system and Governance Risk Compliance (GRC) system.
  7. LOTOS Asfalt and LOTOS Kolej received distinctions in the “2011 Forbes’ Diamonds” ranking of companies with annual revenues exceeding PLN 250m. In the largest companies category for the Province of Gdańsk, LOTOS Kolej ranked 5th and LOTOS Asfalt – 8th. LOTOS Parafiny received the same distinction, coming 23rd on the Rzeszów Province’s list of middle-sized enterprises with revenues of PLN 50–250m. The ranking was prepared by Dun & Bradstreet and included companies from all around Poland which recorded the most dynamic value growth within the last three years.
  8. LOTOS Oil received a special diploma from the Ministry of Economy in recognition of its successful business cooperation with Uzbekistan. Thanks to its rapid foreign expansion, the company is now present in over 45 countries and continues to strengthen its position on foreign markets. For several years now, LOTOS Oil has operated a strong distribution network in Uzbekistan.
  9. LOTOS Czechowice received the “2011 Super Company” title granted by entrepreneurs of Czechowice-Dziedzice.
  10. LOTOS Parafiny won the “2011 Business Cheetah” title in the Province of Rzeszów, in the “Market value increase and dynamic growth” category. The mission of the initiative is to foster the development of Polish banks and businesses. The title is awarded by Magazyn Przedsiębiorców Europejska Firma, the Business Cheetah Club and ULAN Sp. z o.o.
  11. At the gala event to celebrate the official completion of the 10+ Programme by Grupa LOTOS, persons who rendered greatest service to this investment received Polish civil state awards granted by the President of the Republic of Poland. Paweł Olechnowicz, President of the Board of Grupa LOTOS, received the Officer’s Cross of the Order of Polonia Restituta. The Knight’s Crosses of the Order of Polonia Restituta were awarded to the Vice-Presidents of the Board of Grupa LOTOS, Marek Sokołowski and Mariusz Machajewski, as well as to Zbigniew Paszkowicz, Refinery Expansion Programme Director, Marek Herra, Production Director, Stanisław Pokojski, Head of Financing Arrangement Office, and Karol Sęp, expert of the Technology Office. Maciej Szozda, the Vice-President of the Board, received the Golden Medal for Long Service.
  12. Dominik Tomczyk, President of the Board of LOTOS Parafiny, was granted an Honorary Medal of the Foundry Research Institute of Kraków in recognition for his invaluable services to the institute.
  13.