Employees

Ethics and Compliance

Our customers, employees, shareholders and other key stakeholders expect the highest level of business ethics and corporate responsibility. It is vital to our success as a company and a core foundation of our business plan. This commitment to doing the right thing crosses every aspect of our day-to-day business interactions – shaping the way we are viewed as a business, as an employer and as a team.

In March 2012, NiSource was named one of the World’s Most Ethical Companies by the Ethisphere Institute. This significant achievement recognizes our commitment to ethical leadership, compliance practices and corporate social responsibility. The list of 145 companies highlights organizations that show leadership in promoting ethical business standards as measured by four specific categories: Ethics and Compliance Programs; Reputation, Leadership and Innovation; Governance; and Corporate Citizenship and Responsibility.

The NiSource Code of Business Conduct is the foundation of our Ethics and Compliance Program and is designed to provide guidance on maintaining high standards of business conduct.

• Commitment at All Levels: A committee of NiSource’s Board of Directors oversees the company’s ethics and compliance program. In 2011, the Ethics and Compliance Executive Council was created to support program governance. All employees are required to acknowledge their commitment to the Code of Business Conduct.
• Training and Reinforcement: All employees are required to complete annual ethics and compliance training. In 2011, all employees received a reminder card sent to their homes, which reinforces the Code of Business Conduct and provides easy access to reporting tools. To reinforce ethics and compliance on a regular basis, quarterly ethics reports and compliance bulletins are shared with all employees.
• Culture of Reporting: Employees are encouraged to report misconduct and have various methods of reporting, including anonymously, in-person, a confidential third-party reporting hotline and a confidential web-based reporting tool. We maintain a non-retaliation policy, which ensures employees who report good-faith suspected violations are not discriminated against in any way.

When ethical issues arise, we have a fair and thorough investigation process that is applied consistently across the organization. That process begins with a full review of the facts for each reported incident. In 2011, we investigated 67 ethics cases and found that 45 involved violations of company policies or our Code of Business Conduct. We closed cases in an average of 14 days, less than the industry average of 29 days. The largest number of cases involved the misuse of IT resources. We take these investigations seriously and apply appropriate discipline, ranging from letters of information to termination.