The following Code of Ethics is adopted by the Association and it is expected that members will accept that they are morally hound to abide by the Code. The Code will give member companies and their employees a simple guideline of’ the modus operandi expected of them as members of the Association.

Some relevant Objectives fundamental to the Code of’ Ethics are

a. To support and protect the integrity, character and status of the forest industry sector and the collective interests of Members of the Association.

b. To represent the collective interests of Members through representative participation in the National Forest Board, direct communication to Government and through contact with other available agencies or media.

c. To foster balanced environmental, community, and economic responsibility and practical forest management principles within the forest industry sector.

d. To oppose any dishonorable conduct or unlawful practice among entities engaged in or associated with the forest industry sector.

e. To consider and promote the Association’s policy position on matters relating to the forest industry sector.

f. To liaise and communicate directly with Government Departments, agencies and Authorities which regulate or have an influence on the forest industry sector.

The Association believes that it is in the collective interest of its members to maintain standards and prevent the establishment of unnecessary precedents which will adversely affect the industry.

THE FOREST INDUSTRY CODE OF ETHICS IN GENERAL

1. At all times to uphold the legally adopted Constitution of the Independent State of Papua New Guinea and the Rules of the Papua New Guinea Forest Industries’ Association (Inc.)

2. To promote the concepts of free, fair and ethical competition in all business dealings within a democratic framework.

3. To ensure at all times that the Association represents the views of the majority of its members in any issues relevant to forest based industries in Papua New Guinea.

4. To continue to work for the establishment and maintenance of a good working relationship with the National Government through its relevant Departments and Ministries, likewise with the other tiers of Government, Provincial and Local (Community) Governments; to promote a climate of mutual trust and cooperation to achieve this end, through opening and maintaining clear channels of communication with a frank exchange of member/government viewpoints.

5. To maintain on-going programmes of education and community awareness regarding the benefits accruing to landowners, communities and the nation at large from planned development of the forest resource potential of the nation.

6. To conscientiously pursue a good corporate citizenship image in the community at large by:

• a) carefully conforming with the laws, and regulations, established by the Government for investigation, project submission, and operations based on forest resources.
• b) to foster discussion and debate which may improve the public’s awareness of the strategic role the Nation’s forest resources can play as a commercial entity and as a renewable and sustainable factor in national development.
• c) familiarization with and respect for the traditional customs of the many various ethic groups in Papua New Guinea, particularly with regard to the Melanesian philosophy regarding customary land/forest ownership, which in effect is private ownership.
• d) promoting long term management of forest resources within the overall framework of sustainable management and to sponsor discussion and action as to how these forest management may he improved.

IN PARTICULAR

1. Timber Permits or Other Operating Authorities

All holders of Permits or other operating authorities to have a responsible attitude to harvesting and utilization operations, including

• a) endeavoring to ensure that all activities are carried out with the full knowledge of government.
• b) endeavoring to ensure that all reporting to government, as required under the various statutes is complete, accurate and timely.
• c) endeavoring to ensure that the legitimate rights of landowners residing in an area of operation are respected.
• d) endeavoring to maintain an environmental awareness and to promote wise use and conservation of forest resources.

2. Employment Practices

To be committed to sound and fair employment practices which include

• a) a healthy and safe working environment.
• b) renumeration and promotion based on performance.
• c) equal opportunity for all Papua New Guineans after satisfying the requirement of offering first preference for employment opportunities to suitably qualified people from the project area.
• d) reasonable and standard employment conditions for jobs in similar categories throughout the industry.

3. Education and Training

To be committed to the ongoing education and training of Papua New Guinean nationals to enable the development of skills and experience at all levels of employment in the forest based industry sector.

4. Promotion of PNG Based Enterprises

Wherever possible and practicable to give preference to nationally owned companies for the provisions of goods and services to the industry both during project preparation and planning, and into project development and operation.

5. Landowners

• a) To attempt, at all times, to understand the position of customary landowners in all forest industry projects and with this in mind, to confer with the landowners at every stage of resource development activity, and to attempt to resolve problems occurring between members and landowners.

6. Environment

To share community and government concern over environmental damage and support the concept of sound environmental management. Members of the Association will endeavor to conduct operations to standards as high as or higher than those laid down by the State. The Association supports the concept of multiple land use where applicable, and is committed to conducting operations in a manner which generates minimal environmental disturbance within approved production levels and long term forest management goals.

With regard to care for the environment and rehabilitation of the project area, members agree to the following guidelines:

• a) plan and carry out projects to high professional standards.
• b) operate projects in an environmentally responsible manner within satisfactory environmental conditions.
• c) actively review measures introduced for environmental control and rehabilitation.
• d) demonstrate a corporate commitment to environmental principles and ensure that employees and contractors are fully informed of, and understand these corporate objectives.
• e) closely liaise with national and provincial government officials responsible for forest resources and the environment.
• f) closely liaise with local landowners and the project area community to ensure a mutual understanding of operational effects.

7. Other Matters

• To oppose graft and corruption of any form, in particular any of offering inducements to politicians or public servants to influence their decisions.
• To avoid any form of payment to persons who make threats of violence or blackmail against members of the industry. Members should report such incidents to the Association.
• To avoid discrediting government or any individual or company in the industry for the purpose of self promotion with landowners or any other group or organization.
• To remain apolitical and to avoid becoming involved in the politics of Papua New Guinea in order to influence decisions in favour of a particular member to the detriment of the industry as a whole

8. Effect

This Code of Ethics is accepted as a responsibility of membership to the Forest Industries Association (Inc.) and contravention of the code may result in disciplinary action being taken by the Executive Committee.

The maximum penalty under this provision shall be termination of membership to the Association.