Responsible behaviour

Cairn is committed to behaving with honesty and integrity in all our business activities wherever we operate.

We recognise that corruption has the potential to damage both our economic performance and our reputation as a business, as well as impacting disproportionately on poorer communities.

Because we operate in some countries with a relatively low ranking on the Transparency International 2009 Corruptions Perceptions Index, we need to be particularly vigilant that we operate with the highest standards of integrity at all times.

In May 2009, a revised Group Code of Business Ethics and a Whistleblowing Policy were approved and implemented across our business and supported by a comprehensive communications campaign to make all employees aware of their responsibilities as representatives of Cairn. This was supported by workshops in Edinburgh, Tunisia and Bangladesh. We also have procurement controls to ensure fairness and integrity in the placing of contracts for goods and services.

A further update of the Code, which sets out our approach and gives directions to employees on the high standards of personal and professional integrity required of them, is planned for 2010.

All employees are provided with their own copy of the Code prior to joining the Company and required to formally agree to the Code as a condition of employment. Breaches of the Code are reported to the Chief Executive's Committee.

We also recognise the principles of the Extractive Industries Transparency Initiative (EITI) and have been reporting our payments to Governments for a number of years.