ICL's Ethics Comittee

The extensive brainstorming and different points of views of the committee members, have been reflected so far in the meetings held since its formation.

Click on the "start" button for a brief overview of the issues which arose in the committee.

Payment policy for suppliers:

As part of the ICL working capital optimization project, a decision was made to extend the payment terms to suppliers. This is a process that has caused difficulties for some suppliers and some ICL employees regarding ICL's obligation to maintain fairness in business as required by the company's ethical code. This is because some suppliers and employees saw the extension of payment terms as disproportionate with inadequate consideration for suppliers. In addition, some suppliers have argued that extending payment terms has led them to negative cash flow and their ability to meet business expenses and pay salaries to employees on time.

Conflict of Interest:

A case was presented to committee members, while maintaining the confidentiality of those involved, where an employee whose father works at an ICL contractor reported a conflict of interest. The employee’s father has been employed for decades by the contractor who provides maintenance services to the ICL site where his son works. In the conflict of interest report, the employee noted that he was sometimes required to work with his father in the same department and to partially approve services provided by the contractor. . Following the report, the contractor made it clear that he could not transfer the father to another department and if no ICL solution was found, the father would be terminated. Committee members discussed the complex issue, and suggested possible solutions and proposals for implementation, including physical separation between father and son. After the committee convened, the compliance department was notified that a new tender process was started to replace the contractor.

ICL's Gift and Entertainment Policy:

Committee members received an in-depth overview of ICL's guiding principles regarding the prohibition and restrictions on receiving gifts and benefits from third parties located in the "Gifts and Entertainment" procedure. Members highlighted updates that could be relevant and embedded in the procedure. For example, one of the restrictions in the procedure is the prohibition of receiving cash from third parties as a gift/benefit. Committee members recommended that the procedure be refined so that it also applies to cash equivalents.

Human / Individual Rights:

As part of the company's strategy for promoting best corporate governance processes, the committee suggested that ICL formulate a corporate policy addressing individual rights. The suggestion is based on global best practices according to the principles outlined by the United Nations (UNGP) and the International Labor Organization (ILO) which have been embedded in other global companies. These include: non-discrimination; equality; child labor; forced labor / freedom of association; health and safety; working conditions; fair wages and the prevention of harassment and restrictions in conducting business with organizations that do not meet the above standards.

ICL already has many policies in place regionally which address many of the noted issues. The committee decided to establish a dedicated team to examine the existing approach to this issue within the Code of Ethics and / or regional procedures around the world, while examining other global companies, and then make a recommendation. The team will present its findings to the committee for further discussion, and later, make decisions to be forwarded to ICL management for approval.

Continuing employment of an employee who does not meet his or her goals:

A case was presented to committee members, while maintaining confidentiality, in which an employee who is the main breadwinner in his/her family, was not meeting performance expectations. The management provided him/her with professional support, enrichment and professional development in an effort to help him/her meet ICL’s expectations. In addition, the employee was transferred to a position that best suited his/her skills, but without positive change in his/her performance. The question was whether the company has any ethical commitment to that employee, since ending his employment would have serious personal implications for him and his family.The members of the committee and its professional representatives recommendation was that, assuming there is no legal impediment, the company has no ethical obligation towards the employee, as it is important to look at the company as a whole, as an organization with a commitment to all of its stakeholders, noting that the continued employment of someone who is not fulfilling their obligations to ICL is harmful to ICL, fellow colleagues, and in general, ICL’s stakeholders.Moreover, it was noted that an employee who is not meeting performance expectations may feel unsatisfied and unfulfilled, so the situation is may also not be optimal for the employee on a personal level. It was recommended that it is a managerial decision which should be based on the employee performance. In the specific case, there is no ethical difficulty to end the employment, as long as it is done in a dignified way while taking into consideration employee personal and financial state, and in accordance with the local laws.

Employees' employment policies at the company:

The committee discussed whether ICL should restrict the possibility of employing relatives of ICL employees. Today, there are cases in Israel sites, where a father and his children work on the same site or in ICL. This is due to historical arrangements in Israel which allow employment of employees' children as routine. Some members of the committee felt that if the issue was reported and there was transparency, there is no reason to prevent it. It should be noted that, ICL Israel has a policy regarding the employment of ICL employees' relatives, in order to prevent managerial employee relations between first-degree relatives and to report any other relationship that may produce conflict of interest exposure.

Some of the members of the committee commented that there is a concern that influencers receive the privileges of employing relatives in ICL. On the other hand, ICL has a Conflict of Interest policy, which does not prohibit this kind of employment.

Another comment suggested that the issue should be addressed by HR.

It was decided to discuss the issue again and in coordination with HR and to consider refreshing the policy of employing family members for all ICL managers in Israel and the Conflict of Interest policy for all ICL employees.

Personal use of Company Assets:

Members of the committee were presented with a question that arose among several employees regarding personal print jobs in the workplace.

The recommendation of the committee members is not to provide explicit restrictions but to rely on the employees and their judgment and leave the final decision in their hands, as long as these are individual cases and a small number of pages. The committee also recommended that in case of doubt, the employee is advised to consult with his supervisor or local management. Specific training should be considered in places where there is concern about improper use of the company's property for personal needs.

ICL's Ethics Committee in 2020

During the coming year, Members of the Committee will convene, from time to time, to discuss fundamental issues related to ethics and compliance.

They will take an active role in outlining necessary activities to implement the Code of Ethics and will assist in establishing corporate governance & ethics improvement plans, for the benefit of all our stakeholders.