Our Principles govern how Transredes S.A., its employees, contractors and anyone who provides services to the company carry out their business activities in accordance to the Sustainable Development Policy that we have adopted, adhering to the highest norms of integrity, honesty and impartiality.


PRINCIPLES OF SUSTAINABLE DEVELOPMENT
The three pillars that are the basis of our Sustainable Development Policy are integrated into the following three Principles:

• ECONOMIC PERFORMANCE



• PRESERVATION OF THE ENVIRONMENT AND HUMAN LIFE



• RESPONSIBILITY TO STAKEHOLDERS





Integrity, honesty, and fairness are essential in all aspects of our activities. We report to senior management any violation or breach of ethical conduct and expect the same in return from those with whom our Company conducts business. In that regard, we practice and apply the following seven principles:

• GIFTS AND ENTERTAINMENT



• BRIBES AND CORRUPTION



• CONFLICTS OF INTEREST



• FAIR COMPETITION



• INTEGRITY OF INFORMATION



• CONFIDENTIALITY



• POLITICAL ACTIVITIES



• COMMUNICATIONS AND INTERACTION





The most important economic objectives for Transredes S.A. are: to ensure sustained profitability and generate financial resources for our shareholders. The strategies for managing the financial income will mainly be based on maximizing the dividends for our shareholders.

The criteria for decisions on investments and disinvestments include consideratiions related to Sustainable Development (economic, social and environmental) and a risk evaluation of the investment.

The Company will seek investment opportunities that offer the same or a better return than the existing ones and it will seek to minimize the immobilization of our financial resources.

For Transredes S.A. , sustainable economic performance is based on the following fundamental requirements:

• Maintain cost competitivity. Our activities require Transredes S.A. to offer the best economic option for our customers.
• Provide our customers with sustainable quality service. Our customers expect quality service as an essential component in mitigating the risk of their investments .
• Seek viable growth opportunities, using the strengths of our main activities.
• Ensure consistency when applying legal, fiscal and regulatory systems
  
  

Transredes S.A. classifies its stakeholders into seven groups that are essential for the sustainability of its activities:

a) Shareholders – Our success will consist of maximizing the long-term value for our shareholders, while minimizing the inherent risks from our activities .

b) Customers and Partners – Transredes S.A. will relate openly and honestly with its customers, financers, business partners and other associates, promising to provide them with world-class service, identifying and proactively responding to their needs.

c) Suppliers and Contractors – Transredes S.A. will relate openly and honestly with its suppliers and contractors, making sure that they all compete for the opportunities under the same conditions and transparency. Transredes S.A. has proposed to make sure that the acquisition of goods and services is carried out without prejudice or discrimination, maintaining fair competition among its suppliers. Whenever possible, greatest priority will be given to national/local components, whether it is to provide equipment and materials or labor. In exchange, our Company will receive the best quality products and services at a lower cost, like they are needed to ensure the sustainability of our operations. We seek efficient solutions that will maximize the quality of the goods and services we receive.

d) Employees – Transredes S.A. will respect its employees rights and aspirations, treating them with dignity, ensuring equal job opportunities for all, providing them with safe working conditions, promoting the development and best use of their working capacities and talents. In exchange, the service the employees provide to Transredes S.A. must be high quality, in accordance to the Companies values and principles. Actions that are considered to be harassing or discriminating in the work place will not be tolerated, and they must be properly investigated and taken care of.

We encourage our employees to reach their full potential through training and development. The employees will be evaluated in accordance to their performance and their aptitude for the requirements of the job, both when hiring and for development or promotion.

Our employment procedures consider the equality of opportunities and diversity. Transredes S.A. manages diversity in the work place as a key activity and it respects the need to balance work and personal activities. Transredes S.A. also values individuality, diversity and the creative potential that the workers contribute in their activities. Relations with and among employees are framed within respect for people and their human rights.

e) The State – Transredes S.A. carries out its activities respecting the sovereignty of the governments it interacts with, without affecting their legitimacy. We obey the laws, norms and regulations that govern our activities, surpassing them through the implementation of best practices.

We have constructive, respectful relations with the different offices of the Bolivian State and whenever possible we share joint actions and alliances that seek permanent solutions for both priority and common topics that are related to people, the company, and the country. We maintain fluid communications with the local, departmental, national and international official agencies that are related to our activities, seeking to maximize the value of our services and minimize institutional risks.

f) Civil Society and Non Government Organizations (NGOs) – Transredes S.A. conducts its activities in a responsible manner in Bolivian and world society. We support the Universal Declaration of Human Rights and we hope to see its principles applied in our environment. We want to make a difference in the society that we serve. For this to happen, we manage our activities with the objective of maintaining sustainable long-term relationships with civil society organizations. We have an investment program that includes contributions to improve the quality of life and well-being of the communities in our area of influence. Transredes S.A. recognizes the important role that NGOs have in society and it relates to them in a transparent, respectful manner.

g) Communications Media – Transredes S.A. transparently conducts is activities with the public. We seek maintaining open access to the information that is pertinent to all the communications media in a proactive, equal and opportune manner. We respect the independence of the media and we work actively so that our actions and any news concerning our Company are reported in an impartial, precise and objective manner.

Gifts and Entertainment
All the directors, executives, employees and contractors who work in Transredes S.A.'s name are strictly forbidden to offer, promise or give money, gifts, loans, prizes, favors, or anything else of value to any government official, employee from another Company, agent or other intermediary, whether inside or outside of Bolivia, with the explicit or implicit intention of influencing his actions. Employees must not receive or offer, either directly or indirectly, gifts, entertainment, any kind of valuable benefits or offers that might or seem to influence in any manner their participation in the transactions of the Company itself. Any employee of Transredes S.A. , as well as any contractor or supplier, present or potential, who are contacted in a manner that is not consistent with Our Principles must report the act to upper management. To not follow these procedures will result in immediate disciplinary actions against the employee and the supplier or contractor. Transredes S.A. forbids improper payments in all its activities, whether they are with the public or the private sector.

2. Bribes and Corruption
Offers, payments, requests, or accepting bribes, either directly or indirectly, in any manner, is unacceptable . Transredes S.A. forbids giving anything of value, directly or indirectly, to government officials or political candidates to obtain, retain or direct business deals. Transredes S.A. and its representatives are also forbidden to offer or pay anything of value to anyone if it is known or there is reason to believe that all of part of said payment will be used for the forbidden actions that are described above.

3. Conflicts of Interests
Executives and employees must avoid any activity that might compromise, or seem to compromise, their judgment or objectivity in carrying out their duties with Transredes S.A. Any relationship or apparent relationship with suppliers, customers or competitors that might have an influence or seem to influence exercising our activities or obligations in the Company, must be informed to upper management in detail at the start of the work relationship and/or immediately when the relationship is established .

4 . Fair Competition
No director, executive, or employee can celebrate any understanding or agreement with a present or potential competitor that illegally or somehow restricts the actions of either of the parties. This prohibition includes any agreement that illegally limits the competition with respect to tariffs, costs, profits, services, service terms or conditions, classification and selection of customers or suppliers. No director, executive or employee will take unfair advantage of anyone, whether through manipulation, hiding, abuse of privileged information, material falseness or any other disloyal practice .

5 . Integrity of the Information
All of Transredes S.A.'s business transactions must be precisely and honestly reflected in the Company accounts in accordance to the established procedures and they are subject to audits. Intentional falsification of accounts and the creation or maintenance of unregistered accounts is strictly forbidden. Transredes S.A. uses a systematic, well-defined approach in making decisions on investments, establishing business controls, evaluating risks, financial management and promoting operational excellence. Any report or information that is provided in our name to the authorities of the sector or national authorities must be true, complete and exact. Any omission, false statement or lack of attention to details might result in a violation of norms and regulations that expose the Company to harm .

6 . Confidentiality
Transredes S.A.'s employees will respect the Company's confidential information including, without limitation, the information that is confidentially granted by third parties, shareholders, suppliers, contractors, competitors and customers, just as the Company protects its own information that is considered confidential. Protection of the privacy of confidential information is vital. All the employees will make sure that all the operations, activities and aspects of the Company's and its affiliates' business are kept strictly confidentia.

Any employee who possesses material information must not disseminate it before it is broadcast to the market and he must take the necessary steps to ensure that Transredes S.A. opportunely meets its obligations.

7 . Political Activities
Transredes S.A. respects its employees political preferences and activities. However, the Company will not provide any support for political campaigns, or make payments or other kinds of contributions to political parties, organizations or their representatives, nor will it participate in political party activities. Nevertheless, when dealing with the State, Transredes S.A. has the right and the responsibility, in seeking its legitimate business objectives, to make its position known on any matter that affects the Company, its employees, customers and/or other publics. Transredes S.A. also has the obligation to make known its position on topics affecting its groups of interest, proactively strengthening sustainable relationships with them.

8 . Communications and Interaction
Transredes S.A. recognizes that dialogue and regular interaction with other interested third parties are essential. We have assumed the commitment to inform about our results by providing pertinent, complete information to the legitimately interested parties, subject to any essential consideration of confidentiality on the business.