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MOL GROUPSCIENTIFIC MAGAZINE

2013 / 1

Business responsibility for human rightsThe business case for gender diversityIn search of the real MOL Group brand identyCustomer credit management at MOL

New photoacousc spectroscopy-based instrument for measuring emissionsFuel formulaon for future drive train developments


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Chairman of the Editorial Board:Gyrgy Mosonyi

Editorial Board:Zsolt Csaos; Pter Duds, Dr.; Istvn Guba; Jen Hancsk, Dr. Prof.; Pl Kapusy;Gbor Kis, Dr.; Lajos Kisdek; Andrea Kiss; Mrta Krmer, Dr.; Lszl Lzr; Zsolt Molnr;Lszl Rcz, Dr.; Gabriella Szalms, Dr.; Domokos Szollr; Artur Thernesz

Editor-in-chief:Lszl Rcz, Dr.

Published byMOL Group Communicaons

ISSN 2060-338X


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CONTENTS

Challenges

Business responsibility for human rights in oil and gas industry 4Kriszna Szegedi, PhD Pl Kapusy

Customer credit management at MOL A joint eort between business and nance 16Ilona Korh

Focus

In search of the real MOL Group brand identy 24Boldizsr Konja Anastasia Girutskaya

The business case for gender diversity 36Tmea Hadhzy Szilvia Han Judit Kormos

History of the 60 years old Zala Oil Renery 48Lszl Gelencsr, Dr.

Development

New photoacousc spectroscopy-based instrument for measuring emissions of 62glycol regeneratorsVeronika Hanyecz rpd Mohcsi, PhD Sndor Pusks, Dr. Univ. rpd Vg Gbor Szab, DSc

Fuel formulaon for future drive train developments 72Mt Zldy, PhD Andrs Holl, PhD Zoltn Szerencss Ferenc Kovcs Rbert Auer

ARGUS New trends in on-line analysers techniques 80Gbor Bereznai Rbert Zomborszki

Workshop

Direcons of vehicle and engine development for carbon dioxide emissions reducon 86Lajos Kisdek Mt Zldy, PhD

Impact of changes in temperature of the cooling water and steam ow through 100the condenser to the eciency of condensing turbo generator plantIvan Jakovljevi, PhD

Experiences with operator training simulators in Duna Renery 106Tibor Szab

Important people in the oil and gas industry

Viktor Dank, DSc 116

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BUSINESS RESPONSIBILITY

FOR HUMAN RIGHTS IN OILAND GAS INDUSTRY

Challenges

Kriszna Szegedi, PhD (43)Chairperson of the Ethics CouncilMOL [email protected]

Pl Kapusy (35)Head of Environment and SustainabilityMOL [email protected]

ABSTRACTOver the past decades, considerable debatehas unfolded about whether, and if so, whatlevel of responsibility the companies have in

the protecon of human rights. A number ofinternaonal organisaons points out thatglobalisaon and the role played by compa-nies in it entail corporate responsibility, interalia, the protecon of human rights. Empir-ical studies have shown that the oil and gascompanies make considerable eorts to pro-tect human rights. The aim of this arcle isto assess how the human rights protecon isinstuonalised in the oil and gas industryscompanies and to show some good pracce

examples.

HUMAN RIGHTSHuman rights are oen dened in dierentways. Human rights are literally the rightsthat one has because one is human (Donelly,J 2003). Human rights are based on the prin-ciple of respect for the individual. Their fun-damental assumpon is that each person is amoral and raonal being who deserves to be

treated with dignity. They are called humanrights because they are universal (United forHuman Rights 2012). Human rights are a setof moral and legal guidelines that promote and

protect a recognion of our values, our identyand ability to ensure an adequate standard ofliving (Australian Human Rights Commission,2012). According to the Amnesty Internaon-

al (Amnesty Internaonal 2012) human rightsare basic rights and freedoms that all people

are entled to regardless of naonality, sex,naonal or ethnic origin, race, religion, lan-guage, or other status.

Scolars disagree about the source of humanrights, but it is clear that the concept of hu-man rights has a long history in various re-ligions and philosophies of the world. Theroots of the human rights can be found for

example in the Code of Hammurabi, in worksof the Buddhist King Ashoka of India or of theAncient Greeks and Romans. In the West therst systemac human rights theory was writ-ten by John Locke in the seventeenth centu-ry. In the modern history of the human rightsthe United Naons General Assembly on 10thDecember, 1948 adopted the Universal Decla-raon of Human Rights. It was the foundaonof the internaonal system of protecon for

human rights and the rst step for integranghuman rights into internaonal and naonallaw (Freeman, MA 2011).

Universal Declaraon of Human Rights sum-marises the fundamental human rights in 30arcles (see Table 1)(United Naons GeneralAssembly 1948). Three generaons of humanrights are disnguished based on their con-tent and chronological appearance: rst-gen-

eraon civil and polical rights (right to lifeand polical parcipaon), second-genera-on economic, social and cultural rights (rightto subsistence) and third-generaon solidarity

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rights (right to peace, right to clean environ-ment) (Nickel, J 2012). But all human rightsare universal, indivisible and interdependentand related. The internaonal community

must treat human rights globally in a fair and

equal manner, on the same foong, and withthe same emphasis (World Conference onHuman Rights 1993).

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1. All human beings are born free and equalin dignity and rights.

2. Everyone has all the human rightsregardless of race, sex, language, religion,polical or other opinion, naonal or socialorigin, property, birth or other status.

3. Everyone has the right to life, liberty andsecurity of person.

4. Slavery and the slave trade are prohibited.

5. No one shall be subjected to torture or tocruel, inhuman or degrading treatment orpunishment.

6. Everyone has the right to recognioneverywhere as a person before the law.

7. All are equal before the law and are

entled without any discriminaon toequal protecon of the law.

8. Everyone has the right to an eecveremedy when not treated fairly.

9. No one shall be subjected to arbitraryarrest, detenon or exile.

10. Every person is entled to an imparalhearing.

11. Every person shall be considered innocentunl proven guilty.

12. Every person has the right to protecon ofhis or her privacy.

13. Every person has the right to freedom ofmovement within a country and to leaveand return to his or her country.

14. Every person has the right to asylum from

persecuon.

15. Everyone has the right to a naonality.

16. All adults have the right to marry of theirown free will and found a family.

17. Every person has the right to own property.

18. Everyone has the right to freedom ofthought, conscience and religion.

19. Every person has the right to freedom ofopinion and expression.

20. Everyone has the right to freedom ofpeaceful assembly and associaon.

21. Every person has the right to take part inthe government of his or her country.

22. Every person has economic, social andcultural rights.

23. Every person has the right to work, to justpay, and to form and join trade unions.

24. Every person has the right to rest andleisure.

25. Every person has the right to an adequatestandard of living.

26. Every person has the right to educaon.

27. Everyone person has the right to parcipatein cultural acvies and benet fromscienc advancement.

28. Everyone is entled to a social order inwhich these human rights can be realised.

29. Every person has dues to the democracsociety according to the law.

30. No person can take away these rights and

freedoms.

UNIVERSAL DECLARATION OF HUMAN RIGHTS

Table 1.Shortened version of Universal Declaraon of Human Rights (United Naons GeneralAssembly 1948)


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Challenges

BUSINESS AND HUMAN RIGHTSOriginally the movementof human rights refers

to the relaons between governments and theircizens; furthermore the increased acvity ofnongovernmental organisaons plays an es-

senal role in it. But globalisaon is converngseparate naonal economies into an integratedworld economy, and in this process mulnaon-al enterprises play a signicant role as they aredominant in internaonal trade, internaonaldiusion of informaon, knowledge, technolo-gy and in capital movements and labour mobil-ity (Kleinert, J 2004). This process has strenght-ened the Corporate Social Responsiblity (CSR)discourse and raised a debate regarding the

relaonship between business enterprises andhuman rights in recent years. Human rights area basis for CSR (Cassel, D 2001 cited by Garri-ga, E & Mele, D 2004; Vaaland, TI & Heide, M2005). According to some opinions mulnaon-al enterprises (MNE) are driving forces of eco-nomic development so they improve human

rights condions. Others argue that MNEs cre-ate highly uneven economic development and

it contributes to lower levels of human rights

protecon (Preuss, L & Brown, D 2012).

Margolis and Walsh (Margolis, J & Walsh, J2003; cited in Cai, Y & Jo, H & Pan, C 2012) sum-marised over 120 studies between 1971 and2001 which examined the empirical relaon be-tween CSR and nancial performance. Becauseof methodological problems the result is mixedbut shows a mild posive correlaon. It is surethat bad social performance is disadvantaged

to the nancial performance of the companies.

Upholding or violang human rights is not neu-tral for companies from economic point of view,as violang human rights can cause serious rep-utaonal and business impacts. When Nike wascrised for very low wages, child labor, and sex-ual harassment in Chinese and South-East Asianfactories, the scandal caused a large-scale boy-co of Nikes goods by consumers, non-protorganisaons, and the media, which had a neg-ave impact on the companys prots. Howev-

er, a solid CSR ranking would enhance the rep-utaon in the eyes of investors, consumers andthe public at large which increases the sales

(Avesyan, E & Ferrary, M 2012). According to

Amnesty Internaonal, the worlds largest hu-man rights organisaon, mulnaonal compa-nies and business communies have wide mor-al and legal responsiblity to promote respect for

human rights and should not be silent witness-

es, even when it is not their business interests(Amnesty Internaonal 1998).

Human rights have been discussed in severalguidance documents for businesses like UNGlobal Compact, ISO 26000, Global ReporngIniave, Guiding Principles on Business andHuman Rights and OECD Guidelines for Mul-naonal Enterprises. Table 2contains the mainparts of the menoned guidance documents.

The role of businessin human rigths has become

more important recently. Aer a long period ofconsultaon and development from 2005 to2011 John Ruggie, UN Special Representavedeveloped the United Naons Protect, Respectand Remedy Framework (Human Rights Coun-cil 2011). It is a signicant landmark in role ofbusiness in protecon of human rights. The In-ternaonal Organisaon of Employers (IOE), theInternaonal Chamber of Commerce (ICC) andthe Business and Industry Advisory Commiee(BIAC) to the OECD, which together form themost representave voice of global business,welcomed the United Naons Secretary-Gen-erals report on business and human rights andthe UN system (Internaonal Chamber of Com-merce 2012). As an impact several standardslike IFC Performance Standards, ISO 26000 andOECD Guidelines for Mulnaonal Enterpriseshave been revised based on the Ruggie Frame-

work. It will contribute to more transparentsupply chains, where problem solving and dia-logue will play more important role than inves-gaon and compliance (Gibbons, S 2011).

The Framework has three main principles:protect, respect and remedy. Protect meansthe State duty to protect against human rightsabuses by third pares, including business en-terprises. In order to full this task State has to

ensure appropriate legal and guidance frame-work, to communicate clear expectaons forcompanies, to oer best pracce examples andto implement special measures in companies

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owned or controlled by the State. Respect isthe corporate responsibility to respect human

rights. Remedy is both State and business re-

sponsibility to provide greater access by vic-ms to eecve judicial and non-judicial reme-dy (Human Rights Council 2011).

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UN GLOBAL COM-PACT (2000) (THETEN PRINCIPLES)

ISO 26000 (2010) GLOBAL REPORTINGINITIATIVE (GRI G3)

UNITED NATIONS

PROTECT, RESPECTAND REMEDY

FRAMEWORK (2011)

OECD GUIDELINES

FOR MULTINATIONALENTERPRISES (1976,UPDATED IN 2011)

HUMAN RIGHTSPrinciple 1: Business-es should supportand respect theprotecon of interna-onally proclaimedhuman rights; and

Principle 2: makesure that they are notcomplicit in humanrights abuses.

LABOURPrinciple 3: Business-es should uphold thefreedom of associa-on and the eecverecognion of theright to collecvebargaining;

Principle 4: the elimi-naon of all forms offorced and compulso-ry labour;

Principle 5: the eec-

ve abolion of childlabour; and

Principle 6: the elim-inaon of discrim-inaon in respectof employment andoccupaon.

ENVIRONMENTPrinciple 7: Business-es should supporta precauonaryapproach to environ-mental challenges;

Principle 8: undertakeiniaves to promotegreater environmen-tal responsibility; and

Principle 9: encour-age the developmentand diusion of envi-ronmentally friendlytechnologies.

ANTI-CORRUPTIONPrinciple 10: Busi-nesses should workagainst corrupon inall its forms, including

extoron and bribery.

Clause 1:Scope

Clause 2:Terms anddenions

Clause 3:Understand-ing social responsi-bility

Clause 4:Principles ofsocial responsibility

Clause 5:Two funda-mental pracces ofsocial responsibility

Clause 6:Socialresponsibility coresubjects

6.2. Organisaonal

6.3. Human rights

6.4. Labour pracces

6.5. The environment

6.6. Fair operangpracces

6.7. Consumer issues

6.8. Communityinvolvement anddevelopment

Clause 7:Integrangsocial responsibilitythroughout an organ-isaon

BIBLIOGRAPHY

ANNEX

0. Strategy and Prole

1. Economic

2. Environmental

3. Labour Praccesand Decent Work

Employment

Labor / Manage-ment Relaons

OccupaonalHealth & Safety

Training and Educa-on

Diversity and EqualOpportunity

4. Human Rights Investment and Pro-

curement Pracces

Non-Discriminaon

Freedom of Associ-aon and CollecveBargaining

Child Labour

Forced and Complu-sory Labour

Security Pracces

Indigenous Rights

5. Society

6. Product Responsi-bility

General principles

I. THE STATE DUTYTO PROTECT HUMANRIGHTSA.Foundatonalprin-ciplesB.Operatonalprin-ciples

General State reg-ulatory and policyfuncons

The State-businessnexus

Supporng businessrespect for humanrights in conict-af-fected areas

Ensuring policy co-herence

II. THE CORPORATERESPONSIBILITY TORESPECT HUMAN

RIGHTSA.Foundatonalprin-ciplesB.Operatonalprin-ciples

Policy commitmentHuman rights duediligence

Remediaon

Issues of context

III. ACCESS TO REM-EDY

A.FoundatonalprincipleB.Operatonalprin-ciples

State-based judicialmechanisms

State-based non-ju-dicial grievancemechanisms

Non-State-basedgrievance mecha-nisms

Eecveness criteriafor non-judicial griev-ance mechanisms

Declaraon on Inter-naonal Investmentand MulnaonalEnterprisesPart I.OECD Guide-lines for MulnaonalEnterprises: Rec-ommendaons forResponsible BusinessConduct in a GlobalContext

1. Concepts andPrinciples

2. General Policies

3. Disclosure

4. Human Rights

5. Employment andIndustrial Rela-ons

6. Environment

7. Combang Brib-ery, Bribe Solicita-on and Extoron

8. Consumer Inter-ests

9. Science and Tech-nology

10. Compeon

11. Taxaon

Part II.Implementa-on Procedures of

the OECD Guidelinesfor MulnaonalEnterprises

Table 2.Guidance documents on human rights. Source: Websites of the organisaons


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Challenges

The corporate responsibilityto respect human

rights contains the following main praccaltasks (Human Rights Council 2011):

Commitment - Business enterprises shouldexpress and communicate internally and ex-ternally their commitment to meet this re-sponsibility and integrate it into trainings and

business processes. It is essential to involvesecurity personnel into human rights train-ings (Amnesty International 1998).

Human rights due diligence Business enterprises should regularly as-

sess their actual and potential human

rights impacts.

Assessment is essential in new operationareas, armed conflict areas, regarding highrisk products, functions with special em-phasise on stakeholders like indigenouspeoples, women, national or ethnic, reli-gious and linguistic minorities; children,persons with disabilities; and migrantworkers and their families.

It is important to involve internal and ex-ternal experts into the assessment processand to integrate the human rights assess-ment into the general risk assessment ofthe company.

Effectiveness of the assessment systemshould be evaluated based on qualitativeand quantitative indicators, surveys, feed-back from stakeholders and internal and

external audits.

Business enterprises should take actions inorder to prevent and reduce human rights

problems and should try to influence firms

violating human rights or terminate the

business relationship with them. In case ofan essential business relationship compa-nies should demonstrate their efforts and

be prepared to accept reputational, legal

or financial consequences.

Remediation Where a business enterprise has caused or

contributed to adverse impacts, it shouldprovide for or cooperate in remediation

with further actors.

Precondition of remediation is an effectivegrievance mechanism, which is legitimate,accessible, predictable, equitable, transpar-ent, rights-compatible, a source of continu-ous learning and based on engagement and

dialogue. It is essential to have clear andpublished procedure, to conduct fair inves-tigations, to be accessable for stakeholderswithout barriers of language, literacy, costs,physical location and fears of reprisal and

find solutions through dialogue.

Where adverse impacts have occurred that

the business enterprise has not caused

or contributed to, but which are directlylinked to its operations, products or servic-es by a business relationship, the responsi-bility to respect human rights does not re-quire that the enterprise itself provide forremediation, though it may take a role indoing so, for example in cooperation with

judicial mechanisms.

In 2012 the United Naons Working Groupon Business and Human Rights iniated a pi-lot survey on implementaon of the corporateresponsibility to respect human rights, whichdetermined the following main challenges for

companies regarding the components of the

responsibility to respect (United Naons Work-ing Group 2012):

Policy commitment:It is difficult to commu-nicate the policy in a clear way to all relevant

external parties and to translate policy com-mitment into relevant operational proce-dures.

Understanding impacts: Companies areunsure how far into the supply chain they

need to go in understanding impacts.There is a lack of credible information,

methodologies and frameworks to assessimpacts and it is not clear how to engage

with stakeholders where governments re-strict dialogue.

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Addressing impacts, tracking responses andcommunication: It is difficult to manage situ-ations where companies leverage over busi-ness partners is limited, and to operate insituations where human rights are not part

of local law or not applied in practice or gov-ernment institutions are lacking.

Complaints, grievances and access to reme-dy:It is difficult to adapt a grievance mech-anism to a cultural context, to build trust inthe mechanism, to move a complaints hot-line to an effective grievance mechanism and

to incorporate mechanisms into stakeholdermanagement.

CORPORATE SOCIAL RESPONSIBILITYCSR AND HUMAN RIGHTS IN OILAND GAS INDUSTRYOil industry is one of the controversial in-dustries from ethical point of view because

of its contested environmental and social

impacts. Oil and gas companies have beencriticised by media, governmental organisa-tions, and non-governmental organisations(NGOs) for issues of environmental viola-tions, detrimental impact on local communi-ties, of breaches of labour and safety stand-ards, corruption and human rights abuses(e.g. Pulver, S 2007; Reiner, K 2010; Adeoye,Y 2012; Du, S & Vieira, ET Jr 2012; De Ro-eck, K & Delobbe, N 2012). The question iswhether such a controversial industry can

be developed? According to the opponentsCorporate Social Responsibility in controver-sial industries may be inherent contradic-

tion, but the proponents mean that firms canbecome better organisations by CSR in suchindustries as well (Cai et al. 2012). Lindorffet al. (Lindorff, M & Jonson, EP & McGuire,L 2012) emphasise the essential role of CSRin the controversial industries. Companiesof such industries are able to be socially re-sponsible in particular areas of their opera-tions, minimising the harm in order to solveparticular social problems. Studying data of

475 US firms in controversial industries fromthe 1995-2009 period researchers empiri-cally investigated the impact of CSR engage-ment on firm value for firms in controversial

industries and found a positive correlation

between CSR engagement and firm value(Cai, Y & Jo, H & Pan, C 2012).

De Roeck and Delobbesurveyed 155 employ-

ees of a petrochemical organisaon in order tostudy employees responses to organisaonsCSR iniaves in the controversial oil industry(De Roeck, K & Delobbe, N 2012). Researchndings proved that perceived CSR posivelyrelates to employees organisaonal idenca-on and it is mediated by organisaonal trust.CSR iniaves can result in employees supporteven in a controversial industry sector.

Du and Vieirastudied the CSR pracce and itscommunicaon by several oil companies (Du, S& Vieira, ET Jr 2012). It was assumed that dueto the highly controversial reputaon of the oilindustry, companies try to achive their legi-macy by their CSR acvies. According to theanalysis the bigger companies had more exten-sive CSR pracces and more eecve CSR com-municaon strategies than the smaller ones.The studied companies are characterised by

CSR as public relaons mentality and by re-acvity. The arcle suggests a long-term stra-tegic approach and proacve, leadership rolefor the companies. All companies used mul--media technology in their CSR communica-on which supports stakeholder involvementand companys openness and transparency. Incontrast to hard, fact-based CSR informaon,story-based messages, short video interviewswith NGOs, community members, employees,and local communies were menoned as best

pracce of so, human face CSR communica-on. The researchers found not only posivebut negave comments and informaon aboutthe CSR acty of the companies, as well. Au-thors suggested taking responsibility for nega-ve company acons and publishing two-sidedmessages in order to migate scepcism andto enhance trust in companies and the whole

industry (Du, S & Vieira, ET Jr 2012).

An analysis of current trends in corporate hu-man rights reporng (Umlas, E 2009) found sev-eral weaknesses like equang community withphilanthropy, lack of performance reporng and

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Challenges

impact reporng, lack of balance of posiveand negave impacts, gap in reporng contentand sustainability context, absence of humanrights from assurance. Areas for improvementare idenfying the key human rights risks, col-

lecng and sharing baseline data in reports onlocal communies stakeholders concerns abouthuman rights impacts, exploring traceability insupply chain reporng, developing proacveapproaches regarding relevant human rights is-sues of the industry. The report contains somepraccal examples from oil industry as well. BPis involved in a joint venture in Brazil to operatean ethanol renery. Sugar cane plantaons andethanol reneries in Brazil have been found in

some cases to use forced labour. The issue ofbiofuels in the report did not menon any po-tenally negave human rights pracces andits invesgaon by the company. OMV Groupdeveloped its Human Rights Matrix which in-cluded companys human right responsibilies,

but the report did not contain detailed informa-on about these issues and the level of perfor-mance. The report of Marathon Oil containedits community investment in Equatorial Guineaintroducing training programmes and compa-

ny-sponsored course on rule of law and humanrights but did not contain which human rights

abuses are rife in that country.

Preuss and Brown analysed how wide-spreadthe corporate policies on human rights among

FTSE 100 rms are and what charasteriscs thesehuman rights policies have (Preuss, L & Brown,D 2012). According to their survey 57.1% of thestudied rms had a separate human rights poli-

cy or integrated this issue into a code of conductor dealt with it in an isolated reference. This ratewas high in industries like alcoholic beverages(100%), tobacco (100%), food (100%), oil & gas(85%) and chemical (75%). The rate was medi-um (between 50% and 66%) in pharmaceucal,

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banking, extracve, insurance, telecom and IT,business services, ulies, hotel, leisure andmedia sectors. The rate was low (below 50%) inretail property and construcon, other nancial,manufacturing and transport areas. The arcle

emphasises that oil and gas industry is one ofthe industries having the most thorough engage-ment with human rights issues. Several studiedrms of oil and gas industry (e.g. BP and Shell)had the longest human rights policy which con-tained the meaning of human rights, discussedpotenal human rights abuses and describedthe companys commitment to protect humanrights and the taken acons.

The content analysisof the human rights poli-cies among FTSE 100 rms showed a rather lowappearance of UN Declaraon Principles: onlysix of them were found in half or more of thecorporate documents. Most of the companiesconcentrate on avoidance of discriminaonand on the right of associaon and form and

join trade unions. Many companies considerimportant prohibing slavery, the human dig-nity and the principle about no torture, cruelor inhumane treatment (Preuss, L & Brown, D2012). In order to help the oil and gas sectorcompanies, the European Commission Hu-man Rights Sector Guidance Project (EuropeanCommission 2012) suggested a special matrix,which contains the adequate human rights ofstakeholders (e.g. company workers, supplychain / contractor workers, aected commu-nies, potenally vulnerable groups) duringcompany acvies like land acquision / reset-tlement, drilling / seismic tesng, construcon

of facilies / pipelines, environmental manage-ment, human resources management, security,planning / management of decommissioning.

In our recent surveywe studied 15 oil and gascompanies which were listed in Dow Jones Sus-tainability Index 2012. Table 3presents a sum-mary of the human rights management tools

applied by these companies. Main conclusionsare as follows:

Not surprisingly, the most widely appliedmanagement tool is the policy which is a cor-nerstone of a human rights framework: one

third of the analysed companies have some

sort of explicit human rights policy, while withtwo exceptions all companies code of con-duct refers to human rights principles. Oneremarkable practice: Ecopetrol incorporated

a chapter on human rights into the collectivebargaining agreement.

75% of the studied companies provide eth-ics training programmes to at least a select-ed group of employees, five companies ap-ply specific human rights modules, as well.

Another widely used tool is to incorporaterequirements into supplier prequalifica-

tion or selection criteria (67%). However,only one third of companies monitor orconduct audits on compliance with it. Forexample, Repsol hired an external com-pany to conduct seven ethics and human

rights audits on two suppliers in Spain andfive in Peru. In addition, three audits wereconducted on suppliers contractors, onein Morocco and two in China. As a resultof the audits, actions to be implementedwere defined.

More than half of the companies (60%) havea whistleblowing policy or hotline in place

where human rights abuses can be noticed.It can be mentioned that ENI reports human

rights violations with quantitative data andtypes of cases as well.

UN Guiding Principles (Ruggie-frame-work) is referred to by six companies,

while the Voluntary Principles on Securityand Human Rights is endorsed by almosthalf of the analysed businesses. BG Grouphas invited professor John Ruggie, formerSpecial Representative to the UN SecretaryGeneral for Business and Human Rights, toaddress senior managers on the UN Guid-ing Principles.

Grievance mechanisms and public report

on it remain an area for improvement:only two companies have such processes

in place, one of them (Ecopetrol) disclosesalso examples.

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Challenges12

Companyn

ame

Ecopetrol

ENI

Repsol

BGGroup

Total

Petrobras

Sasol

Santos

MOLGroup

**

Neste

PTT

Statoil

Woodside

Cenovus

Galp

S-Oil

Total(withoutMOLGroup):

Policy*

1 Code of Conduct / Ethics refers

explicitly to HR

2 Separate HR policy0 No HR menoned

2 2 1 2 2 1 1 2 1 1 1 1 1 0 1 0 18

Risk or impact assessment*

1 Reference to process

2 Disclosure of results0 n.a.

2 1 1 1 1 1 1 1 0 0 0 1 1 1 0 0 12

Training*

1 Code of Conduct / Ethics related

training includes HR issues

2 Separate training on HR3 n.a.

2 2 2 2 1 2 1 1 1 1 1 1 0 0 0 0 16

Whistleblowing policy / Ethics hotline

1 Hotline exists

2 Disclosure of related indicators0 n.a.

1 2 2 2 1 2 2 0 2 0 1 0 0 1 0 0 14

Grievance mechanisms and remediaon*1 Exisng process

2 Disclosure on examples

0 n.a.

2 0 1 0 0 0 0 0 0 0 1 0 0 0 0 0 4

Audit, due diligence

1 Internal process

2 External party involved0 n.a.

1 1 0 1 2 1 2 0 0 1 0 1 0 0 0 0 10

Suppliers

1 HR clause in contracts or

prequalicaon criteria2 Monitor / audit of compliance

3 n.a.

0 2 2 1 1 2 1 1 1 2 1 0 2 0 0 0 15

Reference to UN Guiding Principles(Ruggie Framework)

1 1 1 1 1 0 1 0 0 0 0 0 0 0 0 0 6

Voluntary principleson security and HR

1 1 1 1 1 0 0 1 0 0 0 1 0 0 0 0 7

Total 12 12 11 11 10 9 9 6 5 5 5 5 4 2 1 0

Table 3. Human rights management tools in the oil and gas industry. Source: webpages of thestudied companies*Criteria based on the recommendaons by Business & Human Rights Iniave 2010 (Business & Human Rights Iniave 2010)**MOL Group was listed on the Dow Jones Sustainability Index between 2010 and 2011, but not in 2012, therefore it is included in the Table justfor informaon to readers of MOL Group Scienc Magazine. Analysis has been limited to the listed companies, thus without MOL Group.


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CONCLUSIONSIn the last decade various guidances were

published to help corporates manage human

rights related issues and report on them. Thearcle presented a summary of the main el-

ements of a corporate human rights frame-work. Our study on the most sustainable oiland gas companies revealed the fact that the

most progressive companies apply a wide

range of tools to manage human rights, butthere is sll room for improvement for all in-dustry players. Business sector itself will notbe able to solve human rights problems but

will have more signicant contribuon in thefuture to proliferate universal human rights.

However, there is no one-size-ts-all solu-

on; each company should be able to idenfykey impacts and issues and address them withappropriate tools.

ACKNOWLEDGEMENT

This research was carriedout as part of theTAMOP-4.2.1.B-10/2/KONV-2010-0001 pro-

ject with support by the European Union,co-nanced by the European Social Fund.The authors want to thank the supporng or-ganisaons.

Keywords:human rights, corporate social responsibility,

business ethics, sustainable development, oil and gas

industry

Reviewed by Pl Kara, Dr.

13

REFERENCESAdeoye, Y 2012, Nigeria: Oil Sector Controversy and Ancipated

Reforms - Maers Arising. Vanguard, 11 July 2012, viewed 2November, 2012, hp://allafrica.com/stories/201207110156.html

Amnesty Internaonal 1998, Human Rights Principles For Companies,viewed 2 November, 2012, hp://www.amnesty.org/en/library/asset/ACT70/001/1998/en/9a3c152c-e81c-11dd-9deb-2b812946e43c/act700011998en.html

Amnesty Internaonal 2012, Human rights basic,viewed 2 November,2012, hp://www.amnestyusa.org/research/human-rights-basics

Australian Human Rights Commission 2012, Human Rights Explained.Fact sheet 1: Dening Human Rights, viewed 2 November, 2012,http://www.humanrights.gov.au/education/hr_explained/1_dening.html.

Avesyan, E & Ferrary, M 2012, Dynamics of Stakeholders Implicaonsin the Instuonalizaon of the CSR Field in France and in theUnited States,Journal of Business Ethics,published online, viewed30 June 2012, hp://link.springer.com/arcle/10.1007%2Fs10551-012-1386-3?LI=true.

Business & Human Rights Iniave 2010, How to Do Business withRespect for Human Rights: A Guidance Tool for Companies, TheHague: Global Compact Network Netherland, viewed 2 November,2012, hp://www.unglobalcompact.org/docs/issues_doc/human_rights/Resources/how_to_business_with_respect_for_human_rights_gcn_netherlands_june2010.pdf

Cai, Y & Jo, H & Pan, C 2012, Doing Well While Doing Bad? CSR inControversial Industry Sectors Journal of Business Ethics, vol. 108,pp. 467-480.

Cassel, D 2001, Human Rights Business Responsibilies in the GlobalMarketplace, Business Ethics Quarterly,vol. 11, no. 2, pp. 261-274.

De Roeck, K & Delobbe, N 2012, Do Environmental CSR IniavesServe Organizaons Legimacy in the Oil Industry? ExploringEmployees Reacons Through Organizaonal Idencaon Theory,

Journal of Business Ethics, vol. 110, pp. 397-412.Donelly, J 2003, Human Rights in Theory and Pracce, p. 8, Cornell

University Press, New York, USADu, S & Vieira, ET Jr 2012, Striving for Legimacy Through Corporate

Social Responsibility: Insights from Oil Companies,Journal BusinessEthics,vol. 110, pp. 413-427.

European Commission 2012, Human Rights Sector Guidance Project

2012, Guidance for the Oil and Gas Sector on Implemenng the UNGuiding Principles on Business and Human Rights. Dra version

for public consultaon, Brussels, viewed 15 January, 2013, hp://www.ihrb.org/pdf/eu-sector-guidance/2012-11-30-OandG-Sector-Guidance-DRAFT-for-Public-Consultaon.pdf

Freeman, MA 2011, Human Rights: An Interdisciplinary Approach.Polity Press, Cambridge, ISBN-13: 978-0-7456-3965-9.

Garriga, E & Mele, D 2004, Corporate Social Responsibility Theories:Mapping the Territory,Journal of Business Ethics,vol. 53, pp. 51-71.

Gibbons, S 2011, Protect, Respect and Remedy: what does Ruggiesframework mean for ethical trade?, viewed 2 November, 2012,http://www.ethicaltrade.org/news-and-events/blog/steve-gibbons/ruggie-framework-protect-respect-remedy

Human Rights Council 2011, Report of the Special Representave of theSecretary- General on the issue of human rights and transnaonal

corporaons and other business enterprises, John Ruggie GuidingPrinciples on Business and Human Rights: Implemenng the UnitedNaons Protect, Respect and Remedy Framework, viewed 2November, 2012, hp://www.business-humanrights.org/media/documents/ruggie/ruggie-guiding-principles-21-mar-2011.pdf

Internaonal Chamber of Commerce 2012, Joint Input to the UnitedNaons Secretary-Generals Report on Business and Human Rightsand the UN System,viewed 29 January, 2013, hp://www.iccwbo.org/Advocacy-Codes-and-Rules/Document-centre/2012/Joint-Input-to-the-United-Nations-Secretary-General%E2%80%99s-Report-on-Business-and-Human-Rights-and-the-UN-System/

Kleinert, J 2004, The Role of Mulnaonal Enterprises in Globalizaon,Springer-Verlag, Berlin Heidelberg.

Lindor, M & Jonson, EP & McGuire, L 2012, Strategic CorporateSocial Responsibility in Controversial Industry Sectors: The Social

Value of Harm Minimisaon, Journal of Business Ethics, vol. 110,pp. 457-467.

Margolis, J & Walsh, J 2003, Misery loves companies: Rethinkingsocial iniaves by business,Administrave Science Quarterly,vol.48, pp. 268-305.

Nickel, J 2012, Human Rights, The Stanford Encyclopedia ofPhilosophy, viewed 15 January, 2013, hp://plato.stanford.edu/entries/rights-human/

Preuss, L & Brown, D 2012, Business Policies on Human Rights: AnAnalysis of Their Content and Prevalence Among FTSE 100 Firms,

Journal of Business Ethics vol. 109, pp.289-299.Pulver, S 2007, Making Sense of Corporate Environmentalism. An

Environmental Contestaon Approach to Analyzing the Causesand Consequences of the Climate Change Policy Split in the OilIndustry, Organizaon & Environment,vol. 20, no. 1, pp. 44-83.

Reiner, K 2010, Most Environmentally and Socially ControversialCompanies Oil Industry Special Report, viewed 2 November, 2012,hp://www.reprisk.com/downloads/mccreports/15/RepRisk%20Oil%20Industy%20Special%20Report%20June%2010.pdf


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Challenges14

Krisztina Szegedi, PhDis an independent chairperson of the MOL Group EthicsCouncil since 1stSeptember 2007 and associate professor of the Faculty of Eco-

nomics of the University of Miskolc since 2003. In 2002 Ms Szegedi was grantedher PhD degree in Business and Organisation Sciences. From 2004 to 2007, MsSzegedi held various management positions at the University of Miskolc, in-cluding Deputy Dean of Scientific and International Affairs and Deputy Dean ofEducation of the Faculty of Economics. She has been teaching business ethics atthe University of Miskolc. She is an advisor and auditor of Ethics ManagementSystems. Ms Szegedi conducts researches and has more than 60 publications inbusiness ethics, corporate ethics and institutionalising of ethics. She is a mem-ber of public body of Hungarian Academy of Sciences, member of the GermanBusiness Ethics Network and the European Business Ethics Network.

Pl Kapusyis the head of Environment and sustainability of MOL Group. Hehas been working with sustainability, corporate responsiblity and environ-mental areas since 10 years. He joined MOL in 2008 as SD manager, previ-ously he worked as executive director of KVET-INEM Hungria, a businessnetwork promoting SD and CSR among companies. He used to live and study

in Italy, France and Denmark. He has MSc in Engineering and Management(Budapest University of Technology and Economics), MA in Philosophy (ELTEBudapest) and he is doing PhD in University of Miskolc.

Umlas, E 2009, Corporate Human Rights Reporng: An Analysisof Current Trends, viewed 2 November, 2012, hps://www.globalreporting.org/resourcelibrary/Human_Rights_analysis_trends.pdf

United for Human Rights 2012, Human rights dened, viewed 2November, 2012, hp://www.humanrights.com/what-are-human-rights.html

United Naons General Assembly 1948, The Universal declaraon ofHuman Rights, viewed 2 November, 2012, hp://www.un.org/en/documents/udhr/index.shtml

United Naons Working Group 2012, Report of Pilot Business Surveyon Implementaon of the Corporate Responsibility to Respect

Human Rights,p. 7, viewed 29 January, 2013, hp://www.iccwbo.org/Advocacy-Codes-and-Rules/Document-centre/2012/Report-of-pilot-business-survey-on-implementation-of-the-corporate-responsibility-to-respect-Human-Rights/

Vaaland, TI & Heide, M 2005, Corporate Social Responsiveness:Exploring the Dynamics of Bad Episodes. European ManagementJournal,vol. 23, no. 5, pp. 495-506.

World Conference on Human Rights 1993, Vienna Declaraon andProgramme of Acon, viewed 2 November, 2012, hp://www.unhcr.org/refworld/topic,459d17822,459b17a82,3ae6b39ec,O.html


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CUSTOMER CREDIT

management at mOL A JOINT EFFORT BETWEENBUSINESS AND FINANCE

Challenges

Ilona Korh

Credit Management Back Oce managerMOL Credit, [email protected]

ABSTRACTCustomers expect credit terms from suppli-

ers in order to finance their working capi-tal cycle, a particularly important aspectof business in economies where banks are

reluctant to lend. The credit process, whichextends from the request for a credit lim-

it to collection of unpaid trade receivables,must be closely controlled to avoid unnec-

essary risk. At MOL, the credit managementprocess is jointly approved by business and

finance, with well-defined and parallel rolesfor both the sales and credit managementorganisations.

COMMERCIAL CREDIT WHO NEEDS IT?Commercial credit business to business - iswidespread in Central and Eastern Europe.Customers expect it and almost every supplierprovides it. There are approximately 17,000credit customers at MOL Plc and some 60,000Group-wide. Before we turn to the how ofcommercial credit, we should examine thequeson of why suppliers are expected toprovide credit to their customers.

The major movaonof the supplier is to sellthe product, not to provide credit in the formof deferred payment. The intrinsic risk in anindustrial company like MOL is related to the

manufacturing of products of a specic quality

at a reasonable cost. To take on the addion-al risk that the customer may not pay for theproduct seems unreasonable. Nevertheless,that is exactly what we do for approximately75% of our customers because it is expectedby our markets and, hopefully, improves ourselling posion.

While acknowledging the fact that a sale istruly a sale only if the customer makes pay-ment, MOL provides credit with the sole pur-pose of increasing sales. Banks take a com-pletely dierent approach, in that the bankdoes not have a vested interest in approving

a parcular credit besides the obvious mo-vaon of increasing its assets and revenues.From the suppliers perspecve, the credit de-cision is ed to the tangible and ulmate goalof selling the product.

If banks are professional providers of credit,

then why are suppliers expected to providecredit at all? One answer is that supplier cre-dit enhances a customers liquidity, bypassesthe banks and does not impinge on the cus-tomers ability to expand by requiring it touse its bank credit to pay for goods, while itsown customers are buying on credit terms.In the geographical region served by MOL,the availability of bank credit is a determin-ing and liming factor, as most SME (small

and medium-sized enterprise) customers areundercapitalised and have usually exhaustedtheir limited banking sources; if the suppliercannot provide credit, the sale oen cannot

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be made. In an environment in which banksare reluctant to lend, credit limits are gener-ally required to make the sale, price may be asecondary consideraon. In the US and West-ern Europe, a much larger proporon of SME

companies are well-capitalised and can makechoices between suppliers and banks as sourc-es of nancing. Another answer is that largecustomers expect credit terms, since suppliercredit enhances their nancial exibility andfurthermore, they can demand pricing levelswhich may not reect the full cost of credit.

THE COST OF CREDITAlthough we havestated that supplier cred-

it is primarily a commercial issue, there aretwo nancial aspects which must be con-sciously managed and which should aectsales decisions. The rst is the cost of work-ing capital nancing,the second is thecost ofnon-payment by the customer;the two costsare addive.

The cost of working capital nancing can beviewed as the cost at which the supplier can

obtain external nancing to cover the liquid-ity gap caused by selling for credit instead of

for cash, since trade receivables e up work-ing capital. If the supplier is perceived by thebanks and other sources of capital as a signif-icantly beer credit risk than the customer,then the customer may be obtaining supplier

credit at a considerable discount compared to

bank nancing. While this is a good deal forthe customer, the suppliers interest is to passon the cost; otherwise it is lending its balance

sheet without being appropriately compen-sated. This can be achieved in more than oneway: either the nancing cost is wholly builtinto the sales price, or if uncompensated, thisis considered to be the cost of doing business,i.e., an acceptance of the fact that withoutcredit terms, the sale cannot be made. Anoth-er way to look at the issue is to compare theyield of invesng in customer receivables toalternave short-term investment opportuni-

es, such as bank deposits or treasury bills,but this does not adequately reect the needto sell the product. A third approach is to in-corporate a cost in the pricing of the prod-

uct which more closely reects the nancingcost of the customer, as opposed to that ofthe supplier. A completely dierent approachis to discourage buying for credit by oeringincenves for shorter payment periods, for

prepayment or early payment. Prepaymentcould result in a discount if the supplier is

prepared to give up protability in exchangefor liquidity and zero credit risk. The dicul-ty encountered by suppliers is that while they

are usually compelled to provide credit, theyare generally unable to fully reect nancingcosts in their prices due to erce compeon,and the extent of this problem is determinedby other factors, such as:

The availability of credit to the supplier (byits own suppliers and nancial instuons)

The availability of alternave credit sourcesto the customer.

At MOL, the laer factor is determining, butthe cost of the former is also considerable.

The cost of non-payment by the customermust also be consciously managed, but howis this determined? The best source is the

suppliers own present and historical data,although valuable corroborang data may beavailable from the market. For example, if alevel of 2.0% of total receivables are irrecov-erable, then the cost of non-payment is 2.0%,divided by the number of mes the suppliersreceivables turn over annually; if receivablesturn over at an average of 4 mes per year,

then the overall cost of credit is 2.0% / 4, or0.5%. On a customer level, if a customer pur-chases only once per year, then the price ofthat single purchase should theorecally re-ect the full 2.0% premium. If another cus-tomer purchases product every month to the

extent of its credit limit, then the applicablepremium theorecally needs to be only 2.0% /12, or 0.17%. Another way to look at this issueis to calculate how many mes the customer

has to turn over its credit limit in order to be-come risk-free. For example, if the margin ona product is 5%, then the customer needs toturn over its credit limit 20 mes to achieve

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Challenges

a cumulave margin which exceeds the creditlimit, i.e., the relaonship is protable evenif the customer defaults with the next pur-chase, an unorthodox but praccal approach.Said another way, regular customers are de-

sirable not only from the point of view of gen-erang higher sales, but they also represent areduced cost of credit as compared to occa-sional customers, and it is not unreasonablefrom a credit point of view to apply pricing

discounts. Similarly, the sale of high-marginproducts becomes protable from a creditpoint of view earlier than low-margin prod-ucts. Of course, in a complex industrial pro-cess such as oil rening, in which products

and by-products are linked in a single process,some products may be chronic loss-makers,but cannot be eliminated, while others willbroadly cover these costs; regular evaluaonof this eect is essenal in making appropri-ate commercial decisions.

The commercial policy may address these is-sues, in part, by applying discounts if the creditlimit is wholly or parally covered by preferredand liquid forms of security: cash deposits,commercial insurance or bank guarantees, or ifthe customer pays in advance.

CUSTOMER CREDIT MANAGEMENT ASA JOINT VENTURE BETWEEN BUSINESSAND FINANCECustomer credit management is the process

of managing the risk which is associated withsales based on deferred payment. The processextends from determinaon of credit limits to

the collecon of unpaid receivables. Suppliercredit management works best if it is a jointeort shared by business and nance. Thecredit management organisaon provides aservice which is agreed and jointly carried outwith the business team. The business teamparcipates throughout the process, includ-ing the approval of limits and limit-excesses,as well as the collecon of overdue receiva-bles from delinquent customers.

Most importantly,remuneration of the salesteam is directly affected by the performance

of the receivables portfolio through the ap-

plication of credit-related Key PerformanceIndicators (KPI), such as % overdue receiv-ables / total commercial receivables and %bad debt (overdue >= 90 days) / total com-mercial receivables. These KPIs are applied

throughout the MOL Group, and are agreedeach year with the business teams. The tar-get values differ from subsidiary to subsid-iary, depending on its activity, when it wasacquired and the credit culture of the coun-try in which it is domiciled. While the per-formance of each subsidiary is different, thetrend is toward improvement in line with

the adoption of Group credit practices and

the cleaning out of portfolios that contain

stale debt.

STEPS IN THE MOL CREDIT PROCESSFOR DEFERRED PAYMENTCUSTOMERSMOL Group credit policy includes the follow-ing compulsory steps, each of which are joint-ly carried out by both the business and credit

representaves, according to an agreed set ofrules(see Table 1).

DECIDING ON AN APPROPRIATECREDIT LIMITThe required credit limit is calculated by thebusiness representave based on projected pur-chase volumes and desired terms of payment.

Within the MOL Group, credit decisions onun-secured limitsare made with the help of a uni-versally applied internal scoring method, whichtakes local informaon sources into considera-

on and consists of 4 parts(see Figure 1).

The basis of the limitis the esmated monthly(fuel) consumpon of the customer (taken as apercentage of the customers average month-ly net sales), which is reduced proporonatelyby the scoring result. An addional and impor-tant control does not allow the credit limit to

exceed 30% of the customers equity. Limitscalculated using this tool normally cover the

fuel requirements of transport, industrial oragricultural customers, provided that paymentterms do not exceed 20-30 days. If longer pay-ment terms are requested or if the customer is

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a trader whose major supplier is MOL, a largerlimit is required, which can only be approvedif the customer is an excellent risk. This basic

scoring tool is supplemented by informaonobtained from credit agencies, site visits andinterim nancial reports.

19

STEP BUSINESS CREDIT / FINANCE

Establishing credit limits

Request for credit limit based onexpected volumes and contractualterms; approval of limits; negoa-

on of contract

Recommendaon of limit and / oracceptance and assessment of secu-

rity; parcipaon in approval

Management of order-blockings dueto limit excesses, overdue receiva-

bles or expired revision of limit

Approval of release of order-blockings

Administraon of ERP-generatedorder blockings; approval of blockingrelease jointly with business above

set amounts and percentages

Regular review and monitoringContacng of delinquent customers;communicaon of negave changes

to credit department

Weekly reporng of delinquency;regular monitoring of change in legal

status; regular annual or semi-annu-al revision of limits

Collecon processesManagement of internal colleconprocess during rst 45-60 days of

delinquency

Taking over of collecon processfollowing rst 45-60 days; use of

external collecon agencies, legalcounsel, credit insurer; applicaon

of security

Reserves, write-osApprove write-os based on uncol-

lecbility of receivables

Create reserves monthly based on

delinquency and legal status of over-due receivables

KPIs Remuneraon of sales sta directlyinuenced by credit-related KPIs Reporng of performance againstKPIs

Table 1.MOL credit process for deferred payment customers(ERP enterprise resource planning)

DEMOGRAPHICSMeasures stability of the customer (corporate legal

form, age, ownership, size)

PAYMENT DISCIPLINETakes into account external(tax authority, other suppli-

ers, banks) and internalpayment experience

FINANCIALSMeasures liquidity, leverage, working capital, protabili-

ty, sales trend

BUSINESS RELATIONSHIPTakes into account importance of the customer (fre-

quency and volume of purchases, length of relaonship,market posion)

Fig. 1.MOL Group internal scoring method for credit decisions on unsecured limits


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Challenges

The nature of the productitself or the posionof the customer or supplier can also inuencethe credit decision:

Taking a higher credit risk may be balancedby the importance of the related product tothe customers operation; customers withlimited liquidity prioritise their paymentsand will continue to make payments for es-sential supplies long after they have fallen

behind in other, less critical payments

Similarly, taking a higher credit risk may bedefensible if the supplier has a very strong

market position; the less alternative suppli-

ers exist, the better the payment disciplinegenerally will be

Taking a higher credit risk may be reason-able if there is a pressing need to offload

certain products, such as the by-products ofthe oil refining process, or when storage ca-pacity is limited

Taking higher credit risk may be balanced byhigher profit margins.

A case shouldbe made for approving an un-secured limit which is substanally higherthan that recommended by the credit team,but the limit which is ulmately approved isdone at the discreon of the decision-makingindividuals. Lower limits are approved with-in the hierarchy of the business organisaon;above a certain amount, the approval of cre-dit / nance managers must also be obtained.

If the requested limit is not approved, thensecurity in the form of a bank guarantee, let-ter of credit, cash deposit or credit insuranceis recommended.

MANAGING ORDER-TAKINGWITHIN APPROVED LIMITSApproved credit limitsare registered in theERP system, with a compulsory review dateof either 6 months or 1 year. Whenever a

customer places an order with the logis-tics department, the ERP system tests theorder against credit data in the system in

three ways:

Will fulfilment of the order result in an ex-ceeded credit limit?

Does the customer have overdue receiva-bles? (Tolerance, in terms of days overdue,

depends on the risk rating of the customer.)

Was the revision date passed without havingcompleted the regular review?

If the answer to any of these questions isYES, the system generates an order blockage,which must be released by approvals under

the valid LDA (List of Decision-Making Author-ities) or denied, whichever is appropriate.

A customer-friendly credit process includesmechanisms to ensure that the customer,if performing, can be served. This can beachieved by providing a roomy credit limitwhich is large enough to cover all situations,or by establishing a limit which is tight, butflexible. MOL prefers the latter and manageslimit excesses with increased scrutiny of thecustomers performance and approval of ex-cesses if business and credit considerations

are in balance.

MONITORINGThe most important element of monitor-ing is the regular review of all credit limits

by the credit department, with re-approvalby the relevant parties. However, ongoingmonitoring of the portfolio is also required.Depending on the country in which the rele-vant MOL Group company operates, a variety

of monitoring tools are available. The mostwidespread service is external monitoring forliquidation, bankruptcy and dissolution, thesource of which is the publication of change

in legal status by the commercial court. Whilethis type of information is essential, recoveryof receivables at this stage are questionable,at best. Fortunately, there has been a boomduring the past few years in the availability

of more advanced early warning tools in al-

most every market in which MOL operates.For example, information is available onpayment defaults to authorities, change inaddress, change in management, negative

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change in a credit agencys rating of the com-pany, increase in the likelihood of default orany combination of these. Tools which pro-vide some information on payment defaults

to other commercial partners are the most

useful. Although publicly available blacklistsof defaulting businesses exist in some coun-tries, this remains fairly uncommon. Severalprivate initiatives, however, have been takento share early information on delinquency inan ethical manner. Participating businessesregularly provide information on aging of re-ceivables to a central party, which maintainsand disseminates the data to participants, sothat the source of the data remains anony-

mous. In some countries typically in theBalkans - information on defaults to financialinstitutions and the submission of promissory

notes by suppliers as a method of collection

of overdue receivables can be tracked and in-corporated in the credit assessment.

Reporting of delinquency by credit manage-ment to the business is also an essential aspect

of monitoring. Sales staff then contacts thecustomer and obtains the promise to pay with-in a reasonable deadline or communicates the

likelihood of default to the credit department.The earlier a delinquency is treated, the great-er the likelihood of recovery.

COLLECTION OF OVERDUERECEIVABLESAs noted above, collection in the first 45-60days of delinquency is managed by the salesstaff. Not only is this a customer-friendly ap-

proach, it underlines primary responsibility forthe receivable by the business. The majority ofoverdue receivables are successfully collected

during this period, or payment rescheduling isagreed with the customer. In this interval, cred-it staff may join salespeople for customer visits,if the likelihood of default is high.

Following the first 45-60 days, the responsi-bility for managing collection is passed to the

credit department. MOL uses external collec-tion agencies, whose success rate is 45-65%and who are compensated only through suc-cess fees. Collection agencies are force-ranked

on a quarterly basis and are rewarded for highsuccess rates with an increased number of

collection mandates in the following quarter.

If the receivable is deemed to be uncollecti-

ble by the collection agency, the case is trans-ferred to legal counsel for initiation of legal

action. Lawsuits and payment execution of-ten result in up to 70% recovery, but resultsvary. Similarly, bankruptcy and subsequentrestructuring may result in recoveries of 50-70%, but lower rates are also common. Thethreat of liquidation often produces a pay-ment plan by the previously unwilling cus-tomer. If the company goes into liquidation,

however, the likelihood of collection dropsprecipitously to less than 2%. Nevertheless,the goal is to recover 100% of all receivablesand to convey a clear message to the marketthat MOL does not intend to allow its debtors

to walk away from their obligations.

RESERVES AND WRITE-OFFSReceivables aboveHuF 1 million are revaluedevery quarter in terms of their recoverability;smaller amounts are revalued once annually,at year-end. The percentage of reserve takenon a receivable depends on the actual stage of

collection, but may be influenced by other rel-evant information. For example, a receivable inthe external collection agency stage is typicallyreserved for at 20%, while receivables of com-panies in liquidation are reserved 100%, giv-en the very low likelihood of recovery at thatstage. The extent to which reserves are takenmust be defensible. Reserves are reversible if a

positive change should occur in the likelihoodof recoverability.

Write-offs of uncollectiblereceivables reducethe taxable base of the company in almostevery jurisdiction in which MOL operates.Therefore, the rules are fairly stringent andestablished in the accounting law. Uncollect-ibility must be documented by the liquidatoror the court. If a receivable is released, as is

typical in the cases of bankruptcy or out-of-court settlements, the released amount maybe written off, but this loss does not reducethe taxable base.

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23

LOOKING FORWARDWhile the credit management mechanism

jointly operated by credit management andbusiness organisations usually works well, thereis a need to reset certain aspects from time to

time, some of the possible reasons being:

Perceived increase in the risk of the economyoverall or within certain segments

Business loss to competitors due to inabilityto approve competitive credit limits

Deterioration in the quality of the customerreceivables portfolio.

The challenge is to respond to these drivers as

early as possible, using appropriate leading in-dicators. (Some examples follow in Table 2.)

As seen above, the possible explanations forthe observed anomalies are multiple in every

case and must be carefully examined to under-stand the root cause and to make the appro-priate change based on a correct analysis. Onlyadherence to the valid credit policy can bring

about changes which truly address the issues.

Keywords: credit management, customer, receivable,

risk

Reviewed by Anna berandLszl Szab

LEADING INDICATOR POSSIBLE PROBLEM AREAS HIGHLIGHTED

Rao of denied, cancelled or reduced credit limits in-creases (including similar acons by credit insurer)

Increased risk in affected segments Inappropriate, too stringent scoring tool Inappropriate selection of potential customers

Increase in number of customers with short-term delin-quency; increase in Days Sales Outstanding

Liquidity problems in affected segments or customers Sales staff not diligent in managing early collections Collection agency ineffective

Increase in rate of growth of reserves Increased risk in affected segments Early collection efforts ineffective

Increase in number of liquidaons, bankruptcies, disso-luons, lawsuits; increase in number of cases passed to

collecon agencies

Increased risk in affected segments

Ineffective monitoring, early collection

Table 2.Leading indicators for credit management

Ilona Korhis currently the head of the Credit Management Back Office at

MOL plc, and previously managed the Credit Front Office. She has been withMOL for two years and has an extensive background in commercial bankingand training in credit and finance.


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IN SEARCH OF

THE REAL MOL GROUPBRAND IDENTITY

Focus

Boldizsr Konja (39)Markeng Communicaons expertMOL Group Corporate [email protected]

Anastasia Girutskaya (21)Markeng Communicaons traineeMOL Group Corporate [email protected]

ABSTRACTSeeking a true and meaningful corporate brand

personality, MOL Groups Markeng Communi-

caons experts have made signicant eorts in

the past years to research and develop a system

which can discover the organisaons true in-

ner character upon which to build its identy.

Among dierent methods the brand elaboraon

was centred on the archetypal theory, which

helped the organisaon to translate its valuable

benets and properes into a powerful mean-

ing. Once the principle archetype of MOL Group

was idened it became a fundamental step in

building up a consistent corporate brand iden-

ty that started with dening the brand essence

derived from the brand personality and thenthe mission and vision of a corporaon.

WHY?Companies, just like people,should have their ownwell-dened idenes, manifested in the com-municaonal style and tonality their brands areassociated with. Although oen misunderstood,a brand identy is not merely a logo or a symbolbut comprises all the various associaons in con-

sumers minds with the company. A consistentbrand identy is built not only on the products orsymbols a company conveys but also on the organ-isaon and the personality, a company idenes

itself with (Aaker, DA & Joachimsthaler, E 2000).It is comprised of all the aributes, personality orinherited benets symbolic or experimental im-ages, thoughts, feelings, atudes and experiences

that form brand knowledge (Keller, KL 2003).

When we thinkof brand identy as a series of as-sociaons and experiences, just as with humanbeings personal idenes, we must rstly discov-er and develop a brand personality.

As Robert T. Blanchard,a former P & G execu-ve put it: like a person, a brand has a name,a personality, character and a reputaon. Likea person, you can respect, like and even love abrand. You can think of it as a deep friend, ormerely an acquaintance. You can view it as de-pendable or undependable; principled or oppor-tunisc; caring or capricious. Just as you like tobe around certain people and not others, so alsodo you like to be with certain brands and notothers. Also, like a person, a brand must matureand change its product over me but its charac-ter and core beliefs should not change. Neithershould its fundamental personality and outlook

on life. People have character so do brands. Apersons character ows from his or her integri-ty: the ability to deliver under pressure, the will-ingness to do what is right rather than what is

expedient. You judge a persons character by his/her past performance and the way he/she thinksand acts in both good mes, and especiallybad. The same is true of brands (Blanchard, RT1999). Does it make sense to build strong brandswith strong personalies? Does a well-dened

brand identy generate increased sharehold-er returns? Indeed, there is clear evidence thatstrong brands outperform weak ones in totalshareholder returns (Fisk, P 2006).

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HOW TO DEFINETHE BRAND PERSONALITYOnce it is clearthat nding a true and mean-ingful brand personality plays a pivotal role

in brand management, we need to develop a

system with which we may discover the organ-isaons true inner personality upon which tobuild its identy. The ve dimensions of brandpersonality (Aaker, JL 1997) include sincerity,excitement, competence, sophiscaon andruggedness. Research into human personal-ies used a system of archetypes (Jung, CG1959) applied to consumer brands (Mark, M& Pearson, C & Pearson, CS 2001) and recom-mended for brand development by experts

(Howard-Spink, J 2003; Jansen, M 2006).

Jung believed that we are made of the ego,the personal subconscious and the collecvesubconscious and that archetypes exist at thecollecve subconscious level and they are an-cient or archaic images that derive from the

collecve unconscious (Feist, J & Feist, GJ2009). He also believed that the most powerfulideas in history are based on archetypes (Jung,CG 1960). He originally described four main ar-chetypes but believed that others can exist andhe himself described seven addional ones.

THE 12 ARCHETYPESWhat is an archetype?According to Carl Jung,archetypes are forms or images of a collec-ve nature which occur praccally all over theearth as constuents of myths and at the sameme as individual products of unconsciousorigin (Mark, M & Pearson, C & Pearson, CS

2001). All the most powerful ideas in historygo back to archetypes, Jung explained in hisbook The Structure and Dynamics of the Psy-che (Jung, CG 1960). This is parcularly trueof religious ideas, but the central concepts ofscience, philosophy and ethics are no excep-on to this rule. In their present form, theyare variants of archetypal ideas created by

consciously applying and adapng these ideasto reality. For it is the funcon of conscious-

ness not only to recognise and assimilate theexternal world through the gateway of thesenses, but to translate into visible reality theworld within us (Jung, CG 1960).

Aer 30 years of research into the subject,Dr. Pearson dened 12 fundamental arche-types (Pearson, CS 2001). The following table(Table 1, Figure 1)is just a short summary of the12 fundamental archetypes; you can read more

about the whole system at hp://www.herow-ithin.com/index.html. The dierent archetypescan be placed around two axes, one leading fromorder to freedom or change, the other from theego towards the social aspect(see Figure 1).

Thorough understanding and strengthening

archetypal meaning (see Figure 2)in brandingnot only adds an interesng advantage to ef-fecve markeng but also is, rather, a prereq-

uisite. No maer how eecve a companysmanufacturing and distribuon systems or howdisncve its products are, its competors canimitate or duplicate them. In such circumstanc-es, businesses have found only two strategicroutes: reduce prices or imbue their products

with meaning. The truth is that brands prospernot only because of their innovave featuresor because of the benets they bring but alsobecause these properes have been translatedinto powerful meanings.

According to Pearson (Pearson, CS 2001),strong and inuenal brands are built on astrong and well-dened archetype and all com-municaons of the brand are centred on thiskey master archetype. Every piece of commu-nicaon and its whole tonality should be builtupon this.

WHY SEARCH FOR AN IDENTITY

FROM WITHIN?As the Beyond Petroleum image of BPshowed us, during a crisis, serious damagecan be caused to a companys reputaon ifthere is a signicant gap between the exter-nally communicated identy and the reality ofthe companys day-to-day acvies (Veer, J& Konja, B &. Ungr, P 2010). A really truth-ful image can only be built from within, sinceif employees and other wider stakeholder

groups do not feel the identy as part of theirown and valid for the brand, which in this caseis represented by the organisaon itself, thiswill lead to negave consequences, namely:

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Focus26

ARCHETYPE MOTTO COREDESIRE

GOAL FEAR EXAMPLE(INDIVIDUAL)

EXAMPLE(ORGANISATION)

THE INNOCENT Free to beyou and meTo experience

paradiseTo be happy

Doing some-thing wrongor bad thatwill provoke

punishment

Dolly Parton

Disney,Coca-Cola,

Elmo?Volkswagen

THE EXPLORER Dont Fenceme In

The freedomto nd outwho you

are throughexploring the

world

To experiencea beer, more

authenc,more fullling

life

Gengtrapped, con-forming, inner

empness,non-being

AmeliaEarhart

Starbucks,Red Bull

THE SAGEThe truthwill set you

free

The discoveryof truth

To use intel-ligence andanalysis tounderstandthe world

Being duped,misled; igno-

rance

Carl Jung,Albert

Einstein

PHILIPS,Google,

Discovery

THE HERO

Where

theres awill, theres a

way

To proveones worth

throughcourageousand dicult

acons

To exert mas-

tery in a waythat improves

the world

Weakness,vulnerability,wimping out

The LoneRanger

FedEx,

U.S.Army,BMW, Nike,

Olimpia

THE OUTLAWRules are

meant to bebroken

Revenge orrevoluon

To destroywhat is not

working

Being power-less, trivial-

ised, inconse-quenal

Che Guevara,Robin Hood

Apple,Virgin,Harley-

Davidson

THE MAGICIAN It can hap-pen!Knowledge offundamental

laws

To makedreams come

true

Unancipated,negave con-

sequences

Marn LutherKing

intel,SONY,

MasterCard

THE REGULARGUY

All menand womenare created

equal.

Conneconwith others

To belong,t in

Standing out,seeming toput on airs,

being exiled orrejected as a

result

Jimmy CarterVISA,GAP,ebay

THE LOVER I only haveeyes for you.

To aaininmacy andexperience

sensual pleas-ure

Being in arelaonshipwith people,the work, theexperiences,

the surround-ings they love

Being alone,a wall-ower,

unwanted,unloved

RudolphValenno,

Sophia Loren,Elizabeth

Taylor

marie clare,Hagen-Dazs,

VictoriasSecret

THE JESTER

If I cant

dance, I dontwant to bepart of yourrevoluon.

To live for the

moment withfull enjoy-

ment

To have a

great meand lighten

up the world

Boredom orbeing boring

Tina Fey IKEA,Ferrari

THE CAREGIVERLove your

neighbour asyourself.

To protectpeople from

harm

To help oth-ers

Selshness,ingratude

MotherTeresa

VOLVO

THE CREATOR

If it can beimagined, itcan be creat-

ed.

To createsomethingof enduring

value

To give formto a vision

Having a me-diocre visionor execuon

MarthaStewart

Bang &Olufsen,Crayola,dyson

THE RULER

Power isnteverything.Its the only

thing.

Control

Create a pros-perous, suc-

cessful family,

company orcommunity

Chaos, beingoverthrown

AlanGreenspan

Windows,Mercedes

Table 1. Summary of the fundamental archetypes (source: Mark, M & Pearson, C & Pearson,CS 2001; own research)


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the gap between the projected identity andthe perceived or real image becomes ex-posed in a crisis situation

employees will not be able to identify them-selves with the projected identity

employees will feel external communicationsare not in line with everyday practices.

To avoid the abovemenonedproblems and pro-ject a truthful and valid brand identy the organi-saon needs to discover the real true characteris-cs with the help of the archetype methodology.

DEFINING THE MOL GROUPARCHETYPE RESEARCH DESIGNTo have a clearunderstanding of who we are

as a Group, we had to discover the MOL Groupprincipal archetype. To do that we used a pur-pose-built archetype quesonnaire (Appen-dix 1)as well as a series of senior managementinterviews to discover the real self of the organ-isaon, the brand personality in other words.

More than250 quesonnaires were sent outto dierent organisaons across MOL Group,dierent in both geographical and organisa-onal terms. With a 71% response rate, thesample was considered representave. Theresults of the quesonnaire were analysedand since all the quesons related to a specif-ic archetype from one of the 12 fundamentalarchetypes, a precise value could be assignedto each which revealed the relave strengthof each specic archetype in the archetype

set. Results can be found inAppendix 2.

RESEARCH FINDINGSAccording to the research, the most predom-inant archetype for MOL Group was the Ruler.Scores for the dierent archetypes were veryclose to each other, a clear indicaon that sinceMOL Group did not built its brand according to

archetype methodology, no one single arche-type was predominant and stronger than the

others. The close to even distribuon of arche-type scores is both a disadvantage and an oppor-tunity. A disadvantage, since there is not a singlepredominant archetype and an advantage since

with connuous communicaons according tothe style and tonality of the archetype with the

highest score the Ruler the most characteris-c brand identy could be built up.

It also has to be noted that there was not

much dierence between archetype scoresacross countries, which implies that MOLGroup people across a wide geographical

spread view their organisaon in a similarmanner (see Appendix 3).

THE MOL GROUP ARCHETYPE:THE RULER

When we think about the Ruler archetype,we usually think about someone with pow-er, somewhere between the boss, the fatheror the mother who acts like someone bornto rule. The main characterisc of the Ruleris the exercising of power for the benet ofothers. The ruler believes that the best wayto keep oneself and ones family, friends orcolleagues safe is to create the feeling of be-ing in control, ghng chaos and assuming

responsibility. On the other hand, the Ruleris also a facilitator who helps others to fulltheir tasks. Normally the Ruler is recognisedas a leader, polician, responsible cizen,

27

Fig. 1.The archetypes and their individual andsocial aspects (Jansen, M 2006)


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Focus28

ARCHETYPES

CHANGE KN

OWLEDGE

BELONGING

RISK DISCOVERY

STRUCTURECARE

THE OUTLAW

Rebellion,Nonconvenonality

Awe, Opmism,Purity, Innocence

TransformaonalPower

Fun, Truth,Playfulness

THE INNOCENT

THE MAGICIAN

THE JESTER

Belonging, Ulity,Dependability

THE REGULAR

GUY

Creavity, Vision

THE CREATOR

Inmacy,Communicaon,Sensual Pleasure

THE LOVER

Power,Resposibility

THE RULER

Discovery,Independance

THE EXPLORER

Care, Protecon

THE CAREGIVER

Challenge,Archievement

THE HERO

Awe, Opmism,Purity, Innocence

THE SAGE

Fig. 2. Archetype characters (source: hp://www.added-value.com/source/2010/06/added-cnbc-world-news-brand-identy/ ,characterlab.com)


29/120

29

manager or administrator portrayed as ex-tremely reliable and juggling many impor-tant responsibilies. Typical Ruler brands areTHE brands in their respecve product orservice category, usually with a long-standing

heritage and legacy(see Appendix 4).

FROM ARCHETYPE TO BRANDESSENCEIt has to benoted that dening the guiding ar-chetype is only a methodology used to really

dene the brand personality and, taking theanalogy of an individual person, it is not themessage, not what one says but the basic prin-ciple of the style and tonality of brand commu-

nicaons, in other words, how the message isdelivered. Accordingly, dening the archetypeis just the rst step towards building up a con-sistent corporate brand identy that startswith dening the brand essence derived fromthe brand personality and then the mission

and vision of a corporaon.

THE MISSION, VISION AND VALUESOF MOL GROUPWhen developing the Vision statement, MOLGroup has dened how it relates to the worldin the context of its business. The following Vi-sion statement has been developed:

MOL Group keeps people moving ahead bydiscovering new ways of serving their energyneeds beer and creang value for genera-ons to come.

It is alsoimportant to make clear how the com-

pany intends to achieve its vision, i.e. the Mis-sion statement:

Operang across and from Central Europe,MOL Group will systemacally overcome all

froners, inspired by its management and rely-ing on the experse of its people.

A Value set has also been dened:

Success and growth Courage and decisiveness Team-work and partnership Expertise and responsibility.

THE BRAND ESSENCEBased on the main archetype, vision, mis-sion and values, a brand essence had to becreated. This might be described as an emo-onal common denominator ready to reso-

nate across cultures. There are nine criteriafor a powerful brand essence. It must beunique, intangible, single-minded, experien-al, meaningful, consistently delivered, au-thenc, sustainable, scalable which meansthat it should also work for brand extensions(Phillips, K 2009).

Accordingly, MOL Groups brand essence isvalue creaon made manifest in the following

words:

Thinking is characterisc to MOL Group sincethe core to value creaon is thinking aboutnew investment opportunies, new, techno-logically more advanced ways of drilling for

hydrocarbons, exploing synergies through-out the enre hydrocarbon value chain fromwell to wheel, thinking about more ecienttechnical soluons in our reneries or moresustainable retail network expansion with en-ergy savings in mind.

Creang shareholdervalue, creang productsor services day-by-day or talented people cre-ang world class achievements all this to-gether is the core of the brand. Helping oth-ers in the process of creaon, bringing to life

something genuinely new is also in harmonywith ruler characteriscs.

Moving physically and moving indirectly,leng others move and being constant fa-cilitators of change is also at the core of our

brand. Moving on four wheels or permingothers to move on two wheels in our Bikeprogramme or moving local communies toact in the Greenbelt programme, energising

them to create more liveable in, greener lo-cal communies is also in the true spirit ofthe brand. MOL Group also moves sports,the arts and culture.


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Focus30

THE BRAND BOOKAer dening the key archetype, mission, vi-sion and value set, as well as the brand essence,a Brand book had to be created that is muchmore than a corporate identy manual only de-ning the mechanics of using dierent graphicelements, colours and tones. More than that, aBrand book helps us understand the whole brandpersonality and describes the reason for using a

certain style and tonality. It serves as the Bibleof every professional engaged in communicat-ing verbally or visually using the brands image-ry. It gives direcon to both creave directors,photographers, copywriters, graphic design-ers working on dierent elements carrying thebrand message. It is a great help since it can beused across borders to communicate the style,

tone and manner of the same brand personali-ty. As a result, the MOL Group Brand book hasbeen created. It builds strongly on Think. Create.Move., and even the new MOL Group brand logoevoluon is derived from it (see Figure 3).

The rst campaign in which the new commu-nicaons style was used was the InternaonalGLOCAL recruitment campaign (see Figure 4).which ran in eight countries in tradional and

online media channels. It was been a clear suc-cess from the communicaons e ciency pointof view since from the planned 23,286 clicks itgenerated 53,778!

FURTHER STEPSFirstly,it is very important that the new iden-ty be well introduced at MOL Group level and

is then communicated across all touch points

in Group communicaons.

Secondly, since MOL Group operates a mul--brand system this means that besides theumbrella MOL Group brand, a number of localmarket brands exist. The next step in the de-velopment process is to harmonise these local

brands with the Group brand and cascade the

Group brand personality down to local levels.This is not an easy task, since at local marketlevels dierent corporate, product and ser-vice brands are used. Somemes these are noteven at brand level, since they do not full the

most important pre-requisite of a brand - thatit evokes feelings. In many cases, they are re-ally at product name level or a pure logo level.

Strategic and conscienous harmonisaonand the brand development processes have to

be started to guarantee single voice commu-nicaons as well as integraon of the umbrel-la brand idea into local level communicaons.

Keywords:branding, archetypes, markeng communica-ons, brand book

Reviewed by Domokos Szollr

THEBRAND BOOK

OFMOLGROUP

What else could our jobs be if not

to understand our world lile by lit-

tle and then make our lives beer?

To create new values and share them

with others. Wherever we live in the

world, this is the aim and direcon of all intelligent human eort. This

makes all our individual and collecve

acts really have meaning.

Butallour aconsaectourenvironment.

However, existence means more than

merely being. It means recognis-

ing our responsibility to the world.

All that we are able to give, all that we

must give. It means searching for new

values. It means creang new added

value. It means sharing our values with

others, serving each others needs.

Much more than that, existence means

taking our well-deserved place in the

world. Fullling the role and the mission

Acve human beingscan only fullltheir

earthlymissionbylivingincommuniesand

bycreangvaluesin collaboraonwithoth-

ers.Ourfreedom andthegreatopportunies

opentousareassuredbysuchcreavecoop-

eraon.Nothingcanbe freerthanthought,

itself.Nothingis morevaluablethancreaon.

Nothing can give greater sasfacon

than moving our individual and collec-

ve ideas forward.

that provide a goal and a meaning to being

human. Everything that serves our individ-

ual welfare but also helps the sustainable

development of our environment.

Think, create and let growth ourish:

these are the collecve values that

make the members of MOL Group one

family, one community of companies

creang collecvely, one community

of employees who can and want to

achieve one collecve goal.

WHAT ELSE could the goals of human thinking andcreating possibly be other than those of developing and

moving forward the things that surround us?

THINK, CREATE, MOVE, - Only mean onething to us: The very meaning of existence

Fig. 3.The new MOL Group Brand book


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REFERENCESAaker, JL 1997, Dimensions of Brand Personality,Journal of Markeng

Research, vol. 34, no. 2. pp. 347-356.Aaker, DA & Joachimsthaler, E 2000, Brand Leadership, Mass-market

Paperback Pocket Books 2009, Simon & Schuster UK, p. 47.Blanchard, RT 1999, Robert T Blanchard of Procter & Gamble in his

Parng Essay,Brandbinge, viewed 11 January, 2013, hp://brandbinge.

blogspot.hu/2011/10/robert-t-blanchard-of-procter-gamble-in.html>

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