Комплаенс

CORPORATE POLICY

Corporate culture

Management Style

The company follows the management style based on the principles of innovation, cooperation, flexibility and respect to employees’ opinion, aims at improving its managerial and organizational structure.

The company’s management is realized on the basis of mutual understanding, accurate problems’ statement and monitoring of their fulfillment. The management provides all conditions for the employees’ well-coordinated work oriented to achievement of the set goals.

The company uses an accurate subordination and reporting structure, regulations of each organization department as well as rights and liabilities (job description) of each employee are given in detail.

The task of the manager is to provide a balance between the employee’s liabilities for the given work and to vest the employee with respective authorities, access to necessary information and optimal distribution of work.

Business ethics

The key to the company’s success lies in effective teamwork. There is no place for individualism, lack of appropriate attention to each other and absence of mutual support, provoking conflict situations among the staff.

The managers at all level are obliged to:

• Develop within their staff a sense of belonging to Yuzhnoye Design Office great achievements, creating a team of like-minded people aimed to attainment of the company’s long-range goals;

• Take care of their staff’s needs;

• Award only the employees who deserves it;

• Respect the dignity of the employees;

• Take responsibilities for making a key decision;

• Stimulate innovation;

• Take into account that the employees want to use their professional skills in cooperation with them.

The company’s employees are obliged to:

• Respect professional competence of each other;

• Be tolerant of other people behavior;

• Coordinate personal goals with the company’s;

• Be sure that their work brings benefits not only to them, but to the company as well;

• Recognize the need for both competition and cooperation;

• Take measures to remove obstacles that prevent from the work being done well and inform their immediate supervisor or their hierarchical superior about such cases at once, and keep themselves away from actions that can cause the company’s financial loss and property damage;

• Act in the interest of the company during working hours. If there is no opportunity for an employee to receive the order how to solve a problem, the employee is obliged to act to the utmost in the interests of the company.

Communication between the management and the staff

The management provides the employees with comfortable workplace, equipped with everything that is necessary for the employees to be productive at work, formulates job descriptions.

The management has to organize the staff correctly taking into account their knowledge, specialty and qualification, defines objectives and provides the staff with workload during the working day.

An employee of the company is obliged to:

• Work with honesty and conscientiousness;

• Carry out his/her functions;

• Take responsibilities for his/her results;

• Maintain labor discipline;

• Follow the company’s rule of conduct;

• Execute the management’s and immediate supervisor’s order;

• Use working hours efficiently;

• Refrain from activities that have the potential of hindering other employees from his/her functions.

If an employee did not execute the supervisor’s order, the latter is obliged to take appropriate measures against the employee action in accordance with internal working rules.

The employees do not have to leave their workplace during working hours without obtaining permission from their immediate supervisor or their hierarchical superior. Each employee has to keep his workplace in order and comply with determinate order of keeping documents and material assets.

Confidential Information

When starting work with Yuzhnoye SDO the employee assumes legal and ethical nondisclosure obligations as for confidential and commercial classified information even if thereafter he will make a decision to leave the company.

The company’s employee must build his relations with the Customer on the principles of providing necessary information, but not to disclose information obtained on confidential basis and use it for the benefit of other contractors and Customers.

Conflict of Interests

The company’s employees and managers must not be involved in activities which may result in conflict of the company’s interests or may be considered as such conflict, as well as they must not use the company, its reputation and information for the purpose of their own or other persons’ gain.

In case of situation which, in the employee’s opinion, may result in conflict of interests, the employee must be guided by the following principles:

• Avoid the conflict of interests;

• While making decisions on business matters one must be guided by interests of the company solely;

• Not to use any confidential or in-house company’s information for personal financial or other benefit as well as other natural or legal person’s benefit;

• In case of probable conflict of interests this matter must be discussed with a direct chief and the employee must act in accordance with regulations of these rules;

• The company does not prevent from participation of its employees in labor activities in other organizations, in civil activities and shows sympathetic understanding of commercial activities realized by certain employees.

At that:

• The employee must inform his direct chief on the supposed parallel work, especially related to commercial activities, in a written form. If the chief (manager) decides that such activity will result in conflict of interests then the employee has no right to combine this activity with his work at the company;

• Each employee involved in commercial activities must be sure that these activities do not harm the company’s image or financial interests in any form;

• The employee must not allow negative effect of activities outside the company on performance of his direct obligations at the company.

The employee may be involved in activities not related to the company’s activities only in off-hours and according to regulations of these rules.

Language policy

THE LAW OF UKRAINE 25.04.2019 № 2704-VIII «ON ENSURING THE FUNCTIONING OF UKRAINIAN LANGUAGE AS THE STATE LANGUAGE»

Political neutrality

The company respects its employees’ wish to be knowledgeable voters and involved in politics.

The company has no goal to forbid its employees to engage in political activity out of hours, but it is forbidden during working hours.

According to the Ukraine’s current legislation, it is forbidden to run any type of political campaign for a candidate including the distribution of electoral materials in the company.

It is forbidden to use company’s software, equipment, office and other supplies in order to support these activities.

An employee should not get into graces or displease the company due to his / her participation in the political process.

An employee’s political opinion and party affiliation, if they do not contradict the Ukraine’s current legislation, cannot constitute the basis for his/her reprimand or dismissal.

RULES

Rules of Yuzhnoye Design Office State Enterprise named after М.К. Yangel» in previous edition

Rules of Yuzhnoye Design Office State Enterprise named after М.К. Yangel» in revised edition

PROPERTY STRUCTURE

The state enterprise is based on state property and belongs to management sphere of the state State Space Agency of Ukraine.

Reference to the source

Labor payment policy

The legislative and regulatory framework, which regulates labor and associated relations, as well as the issues of labor compensation at Yuzhnoye SDO, includes the following basic acts:

• Code of Laws on Labor;

• Law of Ukraine «On payment for labor»;

• Law of Ukraine «On state budget of Ukraine»;

• Industry-wide tariff agreement;

• Company collective agreement.

At present, the company uses 2 systems of payment for labor – time-based system of payment, which is the basic one and piecework system, used for employees, who perform construction as well as construction and repair works.

The wage consists of two parts – basic and extra wage.

The basic wage constitutes official salaries (tariff rates), i.e. charging fees for the work performed in accordance with established work standards (time standards, standard production rates, service standards, official duties). Official salaries of engineering personnel and employees, tariff rates of workers are developed in accordance with Labor code, regulations of the Supreme Council of Ukraine, Cabinet of Ministers of Ukraine, industry-wide tariff agreement; and can be adjusted in case of availability of company funds. Payment for labor of employees, who have fulfilled complete monthly work standard, cannot be lower than the level of minimally-guaranteed official salaries (rates), and statutory amount of the minimum pay.

Extra pay includes premiums and additional payments, bonuses and rewards, payment for work during holidays and non-working days, indexation of wages, payment of additional leaves, and other incentive and compensatory payments. The list of extra payments and premiums is defined by industry-wide tariff agreement and company collective agreement.

According to the law of Ukraine the salary is paid two times per month with time interval between payments no more than 16 calendar days, and not later than seven days upon completion of the period, for which the payment is made.

Motivation and incentive system of employees’ work was set up at the company. Individual attention is given to the following groups:

• Young employees;

• Scientific workers;

• Inventors and innovators;

• Most valuable employees and high performers.

At the company there is a number of subdivisions, where individual incentive pay schemes are in place, developed with respect to specificity of activities, carried out by these subdivisions.

The labor compensation policy at Yuzhnoye SDO is focused on enhancement of efficiency and quality of labor by fulfilling the tasks for creation of new rocket-and-space equipment and by ensuring a decent level of payment for labor of company employees.

Employee Reward System

There are several ways of rewarding the employees for their conscientious work in the company:

• Rewarding with the Yangel Medal;

• Rewarding with breastplate “For developing space-rocket hardware”;

• Rewarding with the Medal “For individual contribution into the company’s development”;

• Rewarding with honorary title “The Company’s Honored Veteran”;

• Rewarding with title “The Best Specialist of Yuzhnoye Design Office” and placing his/her picture on the Honor Roll display;

• General Director’s orders and commendation timed to the employees’ anniversaries and the company’s other outstanding events;

• Rewarding with title “The Company’s Best Inventor and Rationalizer”;

• Rewarding with title “The Company’s Best Intern”;

• Rewarding with title “The Company’s Best Young Worker” etc.

The company’s management intercedes for the company’s outstanding staff members to be honored with state and industry awards.

Occupational safety and health

Arrangement and provision of safe working environment is the main priority of Yangel Yuzhnoye State Design Office. Life and health of our employees is of supreme value. Modern approach in introduction and functioning of the system of labour safety administration is pursued providing safe performance of production job and preservation of health of the employees in full. It is not only the right approach in order to mitigate risks, but also boosts the productivity of the personnel.

On the one hand Yuzhnoye SDO seeks to raise the labour safety protecting employees, on the other hand, preventing occurrence of accidents and occupational diseases. To achieve these goals the enterprise:

• Studies and introduces into production the achievements of science and technology, advanced and safe technologies, up-to-date collective and individual protection of employees;

• Employees are provided with working clothes and footwear, employees who work in harmful working conditions get healthful and dietary meals;

• Organizes health protection of employees, including annual medical examinations, X-ray examination, creates favorable conditions for athletic activities (the enterprise features fitness studio) and establishes weighed balance between work and private life;

• Monitors the functions of the enterprise safety management system, organizes preventive actions to eliminate dangerous and harmful production factors, to prevent accident, occupational diseases, eliminates the health hazards and life-threatening factors for the workers due to the working environment;

• Introduced Guideline on training, guidance and examination on labour safety of Yuzhnoye SDO employees. The system of training on the labour safety provides maintenance of the required skill level of the employees and readiness to carry out professional duties sticking to safety requirements. Various kinds of guidance, drills and Q&A sessions are applied;

• Provides conformity of the enterprise quality management system with the DSTU, ISO 9001, EN 9100 requirements and continuous increase of its efficiency;

• Jointly with organization departments elaborates integrated actions to achieve the specified safety standards and occupational health, as well as Labour safety section in the collective bargaining agreement;

• Introduces the program on safety of work standards. Purpose of the program is to change the thinking and behavior of all the employees at the enterprise, i.e. a combination of leadership and support from the top-level management, participation of the low-level management and encouragement of the employees to comply with security measures to preserve the life and health of the employees.

Scientific organization of labor

Yuzhnoye SDO carries out its business activity in accordance with legislation of Ukraine and company statute, follows in its activity long-term, medium-term and short-term strategic plans for development.

The quality management system was set up at the company, which ensures compliance by subdivisions and specialists with order and quality while performing its functions and includes a whole set of documents, regulating the company business in all areas of activity.

Administrative-organizational company structure was built in accordance with the scope and specificity of works performed. Given that together with the main subdivisions (performing R&D), the company includes a whole set of subdivisions, necessary to ensure the main works, execution of administrative–and-managerial, sales and marketing and other functions, the most optimum type of structure was selected – linear-functional with elements of matrix type in principal activity. The company subdivisions are staffed with personnel, the qualitative and quantitative composition of which allows to deal with all assigned tasks.

Labor organization in subdivisions is defined by Regulations on business subdivisions. These are internal regulatory document, based on which the daily activity of this subdivision is organized, the results of work are evaluated, job descriptions are made, and employees’ tasks, functions, rights, duties and responsibility are defined. The regulation on business subdivision is a local regulatory act of company subdivisions, which defines a procedure for setting up a subdivision, legal and administrative status of subdivision, its relations with other company subdivisions, responsibility of the whole subdivision and its executive.

Using the regulation on business subdivision (its internal structure) the job descriptions are elaborated, and job-related instructions are developed for nonprofessional occupations.

Job descriptions and job-related instructions as well as Regulations on subdivisions are baseline regulatory documents, which specify requirements to executives’ and employees’ work. Job descriptions and job-related instructions are mandatory for its execution and serve as a ground for evaluating the results of work, professional competence of employee and making personnel decisions.

The basis for defining the tasks, functions, interaction, results and performance indicators of company subdivisions, authorities and responsibility of employees is distribution of business processes and functions between subdivisions and employees.

The job description and job-related instructions reveal the job content an employee must perform with necessary coverage of participation in implementation of goals and objectives in the area of quality, established for subdivision, labor safety, safe conduct of works and environmental safety.

The job descriptions and job-related instructions were made up for all employees, entered in staff lists and dispositions. These concisely and clearly define requirements to its qualification of employees, their duties, rights and responsibility for identification and division of labor in subdivisions.

СИСТЕМА МЕНЕДЖМЕНТА КАЧЕСТВА

Система менеджмента качества ГП «КБ «Южное» является составной частью общей системы менеджмента предприятия и предназначена для управления предприятием с целью обеспечения выполнения всех установленных требований к разрабатываемой продукции и предоставляемых услуг.

Высшим руководством предприятия сформирована и внедрена Политика в области качества ГП «КБ «Южное» соответствующая назначению и среде предприятия, поддерживающая стратегию его деятельности и предоставляющая основание для установки целей в области качества.

Область применения системы менеджмента качества ГП «КБ «Южное» охватывает все виды деятельности предприятия по проєктированию, разработке и изготовлению объектов ракетно-космической техники, а именно:

проєктирование и разработка объектов ракетно-космической техники;
экспериментально-испытательные работы;
участие в предоставлении пусковых услуг, поддержка пусковых операций на этапе эксплуатации ОРКТ разработки ГП «КБ «Южное» в рамках контрактов;
авторский надзор за ОРКТ разработки ДП «КБ «Южное» при эксплуатации;
изготовление электрического наземного технологического оборудования из состава наземного комплекса РКК;
изготовление космических аппаратов и составных частей ракетно-космической техники.

Система менеджмента качества, действующая на ГП «КБ«Южное», сертифицирована на соответствие требованиям стандартов ДСТУ ISO 9001, ISO 9001 и
EN 9100.

Сертификат соответствия № UA229631 от 10 апреля 2020 г. системы менеджмента качества ГП «КБ «Южное» на соответствие требованиям стандарта ISO 9001:2015 «Quality management systems — Requirements» («Системы менеджмента качества. Требования»), выданный органом по сертификации «Бюро Веритас Сертификейшн». Срок действия сертификата – до 30 мая 2023 г.

Сертификат соответствия № UK3912017-1 от 31 мая 2020 г. системы менеджмента качества ГП «КБ «Южное» на соответствие требованиям стандарта EN 9100 «Quality Management Systems — Requirements for Aviation, Space and Defense Organizations» выданый органом по сертификации «Бюро Веритас Сертификейшин». Срок действия сертификата до 30 мая 2023 г.

Сертификат соответствия системы менеджмента качества ГП «КБ «Южное» в системе сертификации УкрСС КТ — № UA УкрСС КТ 09.090.00031.18 от 25.10.2018 г. Срок действия сертификата — до 24 октября 2021 г. Выдан Сертификационным центром ракетно-космической техники Харьковского ПГЗ-ДКА Украины.

HR POLICY

Equal opportunities

All appointments, promotions and reassignment to another positions, as well as other decisions on employment of employees are not nationality-, origin-, gender- and religion-related etc.
Such policy regulates all aspects of labour activity, including job selection and work distribution, payment, promotion, discipline, dismissal, as well as access to benefits and training.

Gender policy

Gender policy of the company is realized through consecutive creation of conditions for occupational development of the company employees regardless of gender. Yuzhnoye SDO provides equal opportunities for self-realization of employees of both genders, adheres to the principle of equality of men and women in all aspects of professional activity.

Employment of people with special needs

Everyone has the right to work, which one freely chooses or which one freely agrees to perform. Establishment of labour rights and guarantees to working people with disabilities in Yuzhnoye SDO is regulated by the Constitution of Ukraine, Labour Code, Acts of Ukraine: «On vacations», Occupational Safety and Health Law, «On fundamentals of social security of disabled people», «On rehabilitation of disabled people in Ukraine». Workplaces to employ the disabled people are created at the enterprise and working conditions are provided taking into account medical counsel. Moreover, additional guarantees of protection of labour rights are codified for the employees with disabilities, which are steadily observed in Yuzhnoye SDO. Enterprise is entirely interested in adaptation, full-scale labour and professional realization of workers with disabilities on the same level as other employees.

Staff development policy

To conduct research and development, experimental works, the company provides its staff with continuous on-the-job training. The management considers the system of developing the employees’ skills as the fundamentals of the company’s growth; therefore, the company established the Space-Rocket Educational and Research Centre, and the Graduate Centre, sends the engineers and technicians to several Ukrainian and foreign training organizations for advancing in skills. All these activities make the employee strive for professional development and growth.

Continuous on-the-job training is provided to the staff according to the Company Standard 155.1.03.014:2013 “Quality system management. Error free workmanship management. Manpower education and professional development.”

The employees develop their professional skills visiting either the company’s courses or advanced training courses provided by several Ukrainian and foreign specialized bodies.

The company provides several types of advanced training courses and programs such as:

• Specialized courses on the application of computer technology to use the company’s single information space;

• Specialized internship program to train specialists so that they can proceed to business at Yuzhnoye Design Office and its subdivisions immediately;

• Long-term training program of the Yuzhnoye Design Office’s management and its reserve for 2017-2021;

• Courses on developing basic skills of translating technical documents into English;

• Courses on developing basic skills of working on intellectual property;

• Technical training courses and others.

The personnel department builds the talent management system. The company offers vacancy to its employee first. The main criteria for promotion are real achievements and professional capabilities.

ANTI-CORRUPTION MANAGEMENT

Internal corporate regulations

(English translation has been made from Ukrainian original document)

ANTI-CORRUPTION STATEMENT OF YUZHNOYE STATE DESIGN OFFICE

ANTI-CORRUPTION PROGRAM OF YUZHNOYE STATE DESIGN OFFICE

PROVISION ON COMMISSION FOR EVALUATION OF YUZHNOYE SDO CORRUPTION RISKS

LIST OF MEMBERS OF COMMISSION FOR EVALUATION OF CORRUPTION RISKS IN YUZHNOYE SDO ACTIVITIES

Anti-corruption laws of Ukraine

(Links to the original documents on the Verkhovna Rada of Ukraine website)

Clarifications and methodical recommendations

(English translation has been made from Ukrainian original document)

EXPLANATIONS OF DETERMINATION OF DECRALATION SUBJECTS STIPULATED BY SUB-ITEM “И” OF ITEM 1 AND ITEMS 2, 3 OF THE PART OF FIRST ARTICLE OF THE LAW OF UKRAINE “ON PREVENTION OF CORRUPTION” (CONCERNING PUBLIC SERVANTS OF LEGAL ENTITIES OF PUBLIC LAW)

METHODOLOGICAL RECOMMENDATIONS ON TRANSFER OF MANAGEMENT OF ENTERPRISES AND/OR CORPORATE RIGHTS FOR THE PURPOSE OF PREVENTION OF CONFLICTS OF INTERESTS

EXPLANATION AS TO THE APPLICATION OF CERTAIN PROVISIONS OF THE LAW OF UKRAINE «ON PREVENTION OF CORRUPTION» WITH REGARD TO FINANCIAL CONTROL MEASURES

Confidential line of trust

Should you become a witness or become aware of corruption offences and other illegitimate actions committed by the officials and the employees of Yuzhnoye Design Office, you can send us an e-mail to the following address: AntycorYu@ukr.net

The e-mail should contain some information about you and your contact details. It will help us turn to you for additional details and make a careful study of the situation.

You have a right to leave an anonymous message. We will take this message under consideration if its information relates to the person and the facts that can be verified.

We also emphasize that those whose message contains defamation, insult and discredit of the officials and the employees of the company will incur the liability under the laws of Ukraine.

To inform us about corruptions or corruption-related offences and other violation of the Law of Ukraine “On the prevention of corruption”, you can get in touch with us via one of the telephone numbers mentioned below or turn to the Anti-Corruption Authority personally.

+38 056 790-02-43 (landline number)

25-65 (internal number)

Companys financial reports and audit

QUARTERLY AND ANNUAL REPORTING

ANNUAL RESULTS OF AUDITING CHECK

DESCRIPTION OF POTENTIAL RISK FACTORS

INFORMATION ON THE OPERATIONS AND OBLIGATIONS OF THE ENTERPRISE WITH THE STATE BUDGET

INFORMATION ON CONTRACTS ON E-DATA.GOV.UA

as per Yuzhnoye SDO ЕДРПОУ : 14308304

(to obtain the information on contracts, copy the above code ЕДРПОУ OF YUZHNOYE SDO, follow the above link on e-data.gov.ua, on page e-data.gov.ua in field (code ЄДРПОУ of payer), insert code ЕДРПОУ and press the button (SEARCH), as a result of search, the link (Yuzhnoye State Design Office) will be displayed on the page of contracts, follow the above link).

Procurement activities

Principles of procurement:

• Transparency of procurement;

• Fair competition among bidders;

• Assurance of equality of rights, justice, fairness and absence of unwarranted restriction of rivalry towards the bidders;

• Fair and unbiased assessment of the received bids;

• Prevention of corrupt practices.

Click link to find all up-to-date information for bidders, invitation for bids and contact details.