The Code of Ethics and Core Values

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 The Code of Ethics and Core Values

Contents
A word from the CEO, Chairman of the Board & Chairman of Workers' Union 3
Vision of the Israel Electric Corporation 4
Introduction 6
IEC’s Five Core Values 7
Courageously Changing 8
Committed to our Customers’ Needs 8
Leading Responsibly & Authentically 8
We Care 10
Committed to Professionalism and Excellence 11
Code of Ethics in Practice 12
Appendix: Ethics Rules in the Digital Arena 14

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Dear Employees,

At Israel Electric corporation we are committed not only to achieving results but also to the way in which we
conduct ourselves. Out of a firm belief in the importance of our actions and the way we behave, we have
recently formulated the company’s Core Values through a thorough, corporate-wide process that included a
large number of employees and managers. These values are the cornerstone of the Ethics Code presented
here.
Assimilation of these values is intended to reinforce an organizational culture that will assist the company in
coping with its business environment and with the changes in the electricity sector, in the path to fulfilling
IEC’s vision: “To lead the energy market in Israel as an efficient and fair business company, which is the
backbone of the economy, in a world of advanced technologies, accelerated development and competition”.
We ask you to peruse this document, familiarize yourselves with and understand the principles, rules and
values set forth in the Code, in order that they may become a tool and compass in your daily work and an
integral part of our organizational culture.
We expect each and every one of our directors, executives and employees to meet these highest of ethical
standards, uncompromisingly adhere to personal and business codes of conduct based on responsibility and
integrity, and most importantly – identify with these values. A special responsibility is placed on the executive
level, from whom we expect to set a personal example in applying and assimilating these rules. Thus, we shall
ensure that relationships with our colleagues and customers, suppliers, the public, the authorities and other
company stakeholders are based on trust.
Transparency and sharing, reliability and responsibility, professionalism and excellence, commitment to
customer needs are all more than just slogans. These are the values that should guide us in all we do. An
uncompromising adherence to the Code’s values will increase our sense of pride as IEC employees and
managers, help us to keep the company a pleasant work place, and secure our moral, economic and social
strength.
Sincerely,

Mr. Ofer Bloch Maj. Gen. (Res.) Yiftah Ron Tal Mr. Miko Tzarfati
CEO Chairman of the Board Chairman of the Workers' Union

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 Vision of the Israel Electric Corporation

Israel Electric corporation (IEC) leads the energy market in Israel as an efficient and
fair business company, which is the backbone of the economy, in a world of
advanced technologies, accelerated development and competition

Since its foundation in 1923, the Israel Electric Corporation has fulfilled a central role in the development of
Israel's society and economy. Its founder, Pinchas Rotenberg, stated the following principle back in 1927:
“The one and only concern of the Israeli Electric Company is the development of the country on the basis of
pure business considerations”.
IEC is a major provider of essential service in the economy, its mission being to provide electricity to millions
of customers. It thus contributes to the quality of every resident's life, sets the economy's wheels in motion,
and is essential to the activity of every organization and household in the country, both in routine and in
emergency situations.
We strive to continue being the leading business company in the energy market in Israel. To this end, we
aspire to be Israel’s leading electricity provider, an efficient and advanced electricity producer, and one of
the world’s leading and most advanced grid infrastructure companies. We strive to act efficiently,
professionally and fairly in an evolving competitive environment and ever-changing advanced
technologies, with the aim of ensuring the company adequate profitability and financial strength, which
are required for the supply of available and high quality electricity to the economy, and for continued
development of the electricity sector.
We shall courageously change, in order to develop and adapt the company to changing structure and market
conditions and to economic, social and technological changes in Israel and across the world, including in the
fields of renewable energy, energy efficiency, energy storage, electric vehicles and smart grids, and aspire to
operate in new and international markets.
To this end, we will develop and deliver products and services that best meet our customers' needs. We will
provide excellent service, ensure top quality and safety, strive for excellence in management, technological
innovation, creativity and efficiency, and do all these while maintaining the highest environmental standards
and promoting corporate sustainability.

We are committed to:

 Providing the best response to our customers' needs, and providing innovative, high quality and
available service at an efficiency level tailored to market conditions.
 Leading the market, meeting its needs and staying ahead of competitors in the nature and quality of
services and products we provide.
 Acting with respect, integrity, fairness and credibility towards customers, employees, competitors,
suppliers, lenders, shareholders and government agencies.
 Recognizing our employees as a core asset of the company, communicating with them respectfully
and openly, supporting their advancement, creating a sense of pride and belonging, and encouraging
them to work with mutual trust and in collaboration, with passion, commitment and creativity.

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 Demonstrating leadership and taking responsibility for our decisions, actions and outcomes, both
within and outside the company.
 Serving as an example of excellence in management, operation, technological innovation, governance
and due diligence, while promoting and fostering proper organizational norms and values, and zero
tolerance for any deviation from them.
 Protecting the environment with determination, while producing cleaner energy and striving for
sustainable development.
 Being attentive to the human environment in which we operate, collaborating with the community
and exhibiting engagement, caring and social responsibility.

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Introduction
The Code of Ethics reflects IEC's compass of values. It incorporates the principles that guide us in our activities.
Strict adherence to these principles increases the company's moral, social and economic strength, and helps
us to maintain our leading position in the economy, and to cope with the competitive business environment
and with the changes in the electricity market in Israel.
IEC's values are derived from its vision and from the principles laid out by the company founder, Pinchas
Rotenberg. The Code was updated according to the company's Core Values, which were formulated in a wide
collaborative process involving company managers and employees.
The Code of Ethics includes two types of values:
Moral Values – such as integrity, fairness and mutual respect.
Organizational Values – such as excellence, business orientation and environmental responsibility, which the
company considers important and adopts as part of the organizational culture and as factors that help achieve
its goals, objectives and vision.
The company sees great importance in assimilation and implementation of the Code of Ethics and expects
each and every one of us – especially management level – to set an example in keeping the Code and
preventing it from being violated. Commitment to values will help us realize our potential as a solid and
quality company, which also deserves the trust of the public and authorities.
The Code is intended to be our “moral compass”. It provides us with tools and guidelines for dealing with
problems that we encounter in daily life. Our responsibility is to translate the principles of the Code into
actions and decide how to conduct ourselves.

Code Application
The Code applies to the company, directors, managers and employees. Each of us must remember we are
part of the company and must set a personal example through application of the Code.
The Code of Ethics principles and values apply to all subsidiaries and also guide us in our activities abroad.

Compliance with the Law and Procedures

Compliance with laws, regulations and procedures is a prerequisite for ethical conduct. We are obligated to
comply with the provisions of the law in the State of Israel and in every country in which we operate, as far
as they apply to us. In addition, we are committed to following IEC procedures.

Management Responsibility
IEC's management recognizes the importance of adhering to the ethical rules of conduct, which are essential
for maintaining the company's strength as well as its business success. Therefore, the management takes
action to implement the Code among managers and employees throughout the company, in an atmosphere
that will encourage organizational discourse, contemplation and consultation, as well as reporting situations
where violation of the Code is suspected.

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 IEC’s Five Core Values

Courageously Changing
Business Approach, Innovation, Efficiency

Committed to our Customers’ Needs

Available Quality Service

Leading Responsibly & Authentically

Integrity, Personal Example

We Care
Fairness, Solidarity

Committed to Professionalism & Excellence

Initiative, Passion, Safety

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 Courageously Changing Business Approach * Innovation * Efficiency
Our ability and determination as an organization to renew and change, while showing the courage to initiate,
act and adapt to challenges and opportunities in the business and technological environment will ensure our
resilience and continuity.
We at IEC – in all roles and at all levels – work to perform our tasks effectively, efficiently and with a business
approach. All this in order to achieve appropriate profitability and increase the company's competitiveness,
with the aim of maintaining its financial strength.
We work to foster a culture of innovation and creativity, strive to implement technological innovations, and
are attentive and flexible to the needs of our customers and the needs of the electricity sector.

 Committed to our Customers' Needs * Available Quality Service

As part of striving to continue being a leading company in the energy market, we act with dedication to
develop the electricity sector. We are committed to making every effort to ensure available, reliable, high
quality power supply for all company customers. All in accordance with the company's objectives, legal and
regulatory provisions while considering environmental concerns. Understanding the needs of our diverse
customers and providing professional and prompt response are at the center of our activities and
undertakings.
We at IEC strive to meet high standards of service to entities inside and outside the company. We work to
provide reliable, courteous, high quality and considerate service by representatives at call centers, and by all
employees who are in contact with customers.
We aim to provide the best possible service to our customers in times of routine, emergencies and all weather
conditions. We take actions to quickly and efficiently repair malfunctions, while maintaining employee and
public safety as well as complying with security instructions.

 Leading Responsibly & Authentically Integrity * Personal Example

As managers and employees in every role and level, we exhibit leadership and take personal and managerial
responsibility for our decisions and actions and their consequences within IEC, as well as with regards to
customers, to the environment and to the community. We do this out of a sense of caring and loyalty to the
company.
We act with integrity and in line with our statements, and set a personal example for those around us. We
are committed to company values and to appropriate representation of the company wherever we operate
and in relation to all company stakeholders. We work in accordance with professional, fair and non-
discriminatory standards, and strive to maintain mutual trust in all our relationships within the company and
with external stakeholders such as customers, suppliers, contractors operating on our sites, business partners
and debt holders.

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We maintain honest, respectful and open communication based on sharing and transparency. We support
employees when their decisions and actions are based on discretion and good faith.
We maintain fair competition and obtain business information only in lawful ways. We respect agreements
and do not abuse our status, stress conditions, knowledge gaps or lack of understanding. Our choice of
suppliers is based only on professional criteria and the law. We work to create a responsible supply chain,
and expect our suppliers to conduct their business fairly - financially, legally, socially and environmentally.

Integrity
We work to preserve the highest standards of integrity. We take measures to prevent corruption. We avoid
offering or accepting bribes – directly or indirectly; any act of embezzlement or fraud; personal exploitation
of the company’s business opportunities, and situations or actions in which there may be a conflict of interest
between our personal benefit and the benefit of the company.
We protect company resources and assets and use them only to promote company goals.

Reliable and Accurate Information

We at IEC provide internal and external parties the necessary and permissible information that is reliable and
accurate, while maintaining the confidentiality of company internal information. The company's publications
as well as reports submitted on its behalf to the authorities are reliable and accurate.

Environmental Responsibility
We at IEC are aware of the impact our activities as an industrial company have on the environment, and adopt
a sustainability approach through commitment to the environment and society in terms of conservation of
natural resources, from a long-term perspective and for the benefit of future generations.
We strive to incorporate environmental considerations into all areas of activity. We maintain environmental
transparency and make information regarding the environment accessible to the public. We work to promote
energy efficiency, to conserve natural resources and strengthen environmental awareness among our
employees and the general public. Our environmental policy is published on the company's website and is
updated periodically.

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We Care Fairness * Solidarity

We at IEC treat all company employees and our diverse customers with respect and fairness, humanity and
care. We are attentive to the needs and difficulties of employees around us, exhibit solidarity and make an
effort to support and assist as much as possible. We demonstrate and encourage openness, tolerance and
expression of diverse opinions.

Respectful Communication
We use clean, appropriate and respectful language in conversations, discussions and correspondence within
the company, as well as in our activities in the public sphere. We ensure respect to human dignity in the
digital arena too – on the internet, in e-mails, corporate portals, forums and social networks. We conduct
pragmatic and courteous discourse, listening and being patient to others, avoiding abusive expressions
towards co-workers, suppliers, customers, partners and competitors. Representing the company at all times
and anywhere, we are aware that our behavior may also have negative consequences for IEC's image.

Collaboration
We at IEC work to promote teamwork and foster a climate of trust, collaboration and a service approach
between employees, managers and units within the company and with external partners. We help colleagues
who are experiencing difficulties at work, and we come to the aid of new employees during their
acclimatization in the company.

Safe, Healthy and Accepting Work Environment

We at IEC work to preserve human life, body and property, and to create a healthy, hygienic and safe working
environment.
We maintain employee rights and take actions to promote a respectful work environment free of threats,
harassment, maltreatment, bullying or violence of any kind and for any reason, such as religious belief, origin,
gender, disability, customs or status. We condemn any manifestation of harassment or intimidation and
undertake to act to eradicate these phenomena.
We take actions to cultivate a diverse and accepting culture and work environment; to develop awareness of
the different other, to create equal opportunities for the entire population, and to promote an accessible
environment tailored for diverse target populations such as women, ultra-Orthodox, members of the
Ethiopian ethnic group, minorities, and people with disabilities.

Respecting the Right to Privacy

We respect everyone’s right to privacy. We conduct ourselves with discretion, with regards to our employees,
our customers and suppliers, and any other entity with whom we come into contact. We take extra care
when handling personal information, and distribute it only to authorized and required entities. We secure
and protect personal information in both the physical and computer environments.

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Appropriate Attire
We dress appropriately, respecting ourselves and our role while being considerate to the people around us.

Responsibility for the Social Community

As a leading company in Israel's economy, we consider ourselves an integral part of the community.
Therefore, we believe in ongoing dialogue with the community and foster partnerships and social
engagement. We promote activities across a range of audiences and ages in the fields of education, science,
safety, health, environment, culture and the arts, as well as other areas. These activities express our
commitment to community work, stemming from awareness of our prominent presence in the environment
and landscape in which we operate.
We are attentive to the needs of special and weak populations, assist and support them. We take actions to
create a climate and a work environment that enable equal opportunities in the recruitment and employment
processes of these populations. We are working to improve accessibility of company services and sites.

 Committed to Professionalism & Excellence Initiative * Passion * Safety

At IEC we strive to be the best at what we do, and regard initiative and work passion as vital components to
achieving our goals.
We act in accordance with the best of our professional and business judgment. We encourage excellence and
persistently endeavor to improve performance quality out of loyalty to the company and concern for
maintaining its reputation. We learn lessons from failures as well as success, and strive to find solutions to
any problems that arise.
We emphasize ongoing professional learning in our areas of activity, in order to continue being a leading
company in knowledge and technologies in our fields of business.

Cultivating Human Capital and Promoting Employment Diversity

IEC employees are the source of the company's strength. Recognizing this, we are committed to developing
and maximizing their capabilities and performance, while ensuring equal opportunities.
We promote employment diversity, while maintaining quality and professionalism.
We take actions to manage and preserve knowledge accumulated in the company, and share the knowledge
and experience we have acquired during our years of work with our superiors, co-workers, and subordinates.
We credit employees with the recognition and appreciation they deserve for their work. We see the
importance of providing and receiving ongoing, honest and direct feedback on our work.

Safety
We see the utmost importance in complying with safety rules and in maintaining a safe environment for the
general public, IEC customers and employees. We avoid exposure to risk, and exercise extra caution when
carrying out activities involving possible risks. We ascribe importance to ensuring physical conditions that
maximize safety at work, and to reporting any defect, accident or near accident.
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Code of Ethics in Practice
In all areas of our activities there are laws, regulations, procedures and guidelines valid to the workplace. The
Code of Ethics does not replace all of these but adds to them. You are advised to read the Code carefully and
to openly discuss it with your friends and superiors.
IEC takes actions to integrate and implement the Code's values through educational activities, information
and supervision. We expect each and every one of us, especially executives and directors, to set a personal
example of Code compliance, educate to maintain it, ensure it is implemented and prevent violations. When
making decisions about managers and employees, IEC management will consider the extent to which
managers and employees conduct themselves in accordance with the Code.
We operate accessible mechanisms to consult and report deficiencies and deviations from the Code, while
maintaining discretion and protecting the reporting employee. We will not take any action against those who
have reported in good faith any violation of the Code.
If you have any comments or suggestions for modifying or adding to the Code – please direct them to the
Ethics Officer.

Coping with an Ethical Dilemma

The Code of Ethics does not provide an answer for every situation we may encounter in the workplace. At
times, principles outlined in the Code may lead to different courses of action, and finding the right balance
between them is not easy.
If you are deliberating about how you should behave in any given situation, use the following “rules of
thumb”:
 If the case were reversed, would you like your rights, dignity, money or property treated in the same
way you are about to treat others?
 Would you feel comfortable if your behavior was made public? Will you and the company be praised
for it, or will you be criticized?
 Will you be able to sleep well at night after making your decision?
You may also use the dilemma booklet on the Ethics website. The booklet clarifies how to deal with various
dilemmas that may arise during work.
A basic principle that can guide us when there is no clear reference in the Code, procedures or law to the case
we are faced with, is the rule coined by Hillel the Elder: “Don't do unto others what you don't want done unto
you”.

Consultation and Reporting

When you are confronted with an ethical dilemma or believe that certain actions that have taken place or are
about to take place may conflict with the values of the Code*, you can contact:
 Your superiors
 Ethics Trustee or member of the Ethics Forum of your division/unit
 IEC Ethics Officer/Implementation Manager

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  Intranet contact center on the Ethics website, or email address ethics@iec.co.il. Inquiries will be
handled by representatives appointed among members of the Steering Committee for the Ethics Code
Implementation. Referrals will be reviewed while respecting the dignity and privacy of the applicant.

* Inquiries regarding good governance and/or violations of procedures should be directed to the Internal
Auditor, Ombudsman, and/or the HR department, as applicable.

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Appendix

Ethics Rules in the Digital Arena

Introduction
The digital arena in general and social media channels in particular – such as Facebook, YouTube, forums,
blogs, portals, WhatsApp, Instagram, e-mail and similar media – have changed the way we communicate
within IEC, and our way of communicating with the public, customers, suppliers and other external parties.
The high speed, ease of distribution, multiplicity of participants, and global access to information published
by means of the new technological tools – all can create a sense of a boundless space, where anything is
possible and permissible. It is especially under these circumstances that we are required to ensure the
internet is a place where discourse is held in a pleasant manner, and be mindful not to disseminate
confidential or sensitive information. Each of us, with little investment of attention and discretion, can
contribute to this.
IEC recognizes the advantages and benefits of the digital world but is also aware of the risks involved. It is
important we be aware that company employees’ online activities may have an effect on their relationships
with other employees, on the company's image and its business relationships with customers, suppliers,
consultants and other parties. We therefore developed rules that will guide and assist us using digital
communication channels responsibly and intelligently.
Application
These rules apply to our behavior within the digital arena in all its uses, in both work and private settings.
Compliance with the Rules, Procedures and Laws
Although it seems as though “anything goes” in the digital arena, activity on any digital channel – including
social networks – is governed by the rules, procedures and terms of use of that media (it is important to read
and become familiar with them), as well as the laws of the state in which it operates and the laws of the State
of Israel. Our activities in the digital arena must also comply with IEC procedures.
We must bear in mind that information we have published can at any given time be used against us (or against
IEC – if the publication was carried out as part of our role on behalf of the company) – and regarded as libel,
defamation, injury to privacy, infringement of securities law (regarding the prohibition of publishing material
information before it has been published in the electronic due diligence system, MAGNA), spam email and
more.
State laws also apply to the use of a “pseudonym”, and the person who published the information can always
be found with relative ease.

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Guiding Principles
Responsibility
We are responsible for the content we write and/or publish in the digital world. Social media channels are
public spaces, and we must assume that everything on the internet is visible to everyone, everywhere.
Content we post will be retained over time and may be accessible to a wide audience within and/or outside
the company, even if we have used privacy settings that these channels allow.
We exercise discretion in selecting the recipients of our e-mails and/or social media messages, as detailed
below in the table of Common Ways to Distribute Information and their Consequences.

Honesty and Integrity

We are committed to the accuracy and truth of what we write, so as not to mislead or harm ourselves or the
company. We think before publishing, and when we are not sure – we do not publish.
When responding or referring to a matter regarding IEC on social media, we mention that we are IEC
employees. However, as long as we do not act within a formal role on behalf of the company, we will
emphasize that we speak only on our own behalf and do not represent the position of IEC.
We refrain as much as possible from making connections that may put us in a conflict of interest, and from
situations that may have the appearance of a conflict of interest, and might cause harm to the company or
its image and expose it to legal claims. In any situation where a conflict of interest may arise, we turn to our
superiors for guidance.
If, following our online activities, we are asked or have questions about company activities, we refer them to
the company's authorized bodies and/or relevant social network pages, which provide a formal response to
these issues.

Mutual Respect
We demonstrate mutual respect, responsibility and restraint in all conversations.
We keep our language clean, appropriate and respectful, courteous and professional and refrain from making
any references that are offensive or negative towards IEC employees, customers, suppliers or other entities.

Right for Privacy

We maintain our privacy to the best of our ability. We are cautious about what personal information we
would like to share online.
We keep the privacy of those we converse with and of other employees and entities.

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Protection of Company Data

We refrain from publishing confidential, sensitive or protected content about IEC, our employees, customers
or suppliers, or any other confidential information contained in IEC information systems or other company
databases.
We refrain from distributing internal information without proper authorization. We adhere to company
instructions regarding data protection.

Common Ways to Distribute Information and their Consequences (In the digital arena)

Options Recipients Proper Judgement

One recipient who sent Sending a private message
Reply
me a message to one recipient
All names from the “To” Does the message require
Reply All
and “CC” lines widespread distribution?
Forwarding information – it
is advisable to ask the
Forward New recipients approval of the
correspondence
participants so far
Does the message require
All followers of the widespread distribution?
Post, Tweet sender, in accordance Are there cultural,
with privacy settings organizational or other
sensitivities?
All followers of the Is a public message
sender and the recipient required? Are there
Comment
in accordance with cultural, organizational or
privacy settings other sensitivities?
All followers of the The information will be
sender and the recipient published on your behalf –
Share
in accordance with will you stand behind the
privacy settings words?
All followers of the
Your preference will
sender and the recipient
Like become public – will you
in accordance with
stand behind the words?
privacy settings

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In Conclusion
We are not alone in the digital arena! Even when it seems to be a private group, statements can be saved and
may spread widely at the push of a button. In this manner they might reach places we did not intend them
to and may be misinterpreted. Therefore, the rules should also be kept in private/internal groups.

Whom to Turn to?

If you have any questions or doubts on how to act you can contact your direct supervisor, the legal
department, online communications officer, information and internet security department, sexual
harassment prevention officer, the ethics trustees, or another qualified authority, all in accordance with the
matter at hand.

____________________________________________________________________________________
 The Code of Ethics is an internal IEC document. It does not create grounds or grant the right or remedy
to any person or other body. The Code is not part of IEC employment contracts or agreements and
does not change anyone's employment status.

2019

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