Business Ethics

Chevron is committed to conducting business with the highest ethical standards and fully complying with all applicable laws in the countries where we do business. The Chevron Business Conduct and Ethics Code (BC&E Code) outlines how we conduct ourselves and our operations around the world.

All employees are required to read and acknowledge that they will abide by the BC&E Code, or take training on the Code, which has been translated into 11 languages. The BC&E Code is periodically updated and redeployed to our employees.

The BC&E Code requires that instances of questionable conduct in any area be reported to management, legal counsel, the appropriate operating organization's compliance committee or the Chevron Hotline. We uphold our policy of protecting whistle-blowers from retaliation. The BC&E Code is available elsewhere on our Web site.

The Chevron Hotline is operated offsite by Global Compliance Services (AlertLine®), an independent agent. Any matter submitted to the Chevron Hotline may be made anonymously. Individuals can contact the Chevron Hotline using a multilingual phone line, via the Internet or by letter, 24 hours a day, seven days a week. All hotline matters are reviewed by the corporation's chief compliance officer and chief corporate counsel and, if warranted, are elevated to the Audit Committee of the Board of Directors.

In 2006, AlertLine® received 262 hotline calls in which allegations were made. While the calls covered a wide variety of concerns, the largest percentage pertained to three classifications:

• People management issues 62%
• Financial and internal controls 15%
• Environment, health and safety 6%

Our compliance program relies on shared responsibility and is structured so that each business unit is responsible for its own compliance. The Corporate Compliance Policy Committee, chaired by the vice chairman, sets compliance policy for the corporation, governs the compliance program, and reviews the compliance activities of the business units. The Audit Committee of the Board of Directors reviews the company's internal auditing practices and is responsible for corporate compliance oversight.