Chevron is one of the world's leading
integrated
energy companies, with subsidiaries
that conduct business around
the world. We explore for, produce and
transport crude oil and natural gas; refine,
market and distribute transportation fuels
and other energy products; manufacture
and sell petrochemical products; generate
power and produce geothermal energy;
provide energy efficiency solutions; and
develop and commercialize the energy
resources of the future, including biofuels
and other renewables.
Our Operational Excellence Management
System (OEMS) integrates safety, health,
environmental, reliability and efficiency
objectives throughout the corporation.
Operational Excellence holds company
leaders accountable for achieving
results in the right way by behaving in
accordance with our values. More than
2,400 employees completed Operational
Excellence (OE) training and certification
in 2008, bringing the year-end total to
11,700. Also by year-end, 16,500 employees
had completed the OE Leadership
Roles and Behaviors session. In 2008,
Chevron received attestation from
Lloyd’s Register Quality Assurance that
OEMS meets all requirements of the
International Standards Organization's
14001 environmental management system
standard and the Occupational Health
and Safety Assessment Series management
specification 18001 and that OEMS
is implemented throughout the corporation.
These standards are international
benchmarks and demonstrate Chevron's
commitment to world-class performance.
We conduct business to the highest
ethical standards and in compliance with
the letter and spirit of all applicable laws
in the countries where we operate. Our
Business Conduct and Ethics Code (BC&E Code)
communicates to our employees
the values that guide our actions and
decision making worldwide.
We require that employees read and
abide by the BC&E Code. In 2008, an
updated BC&E Code, which included
Chevron’s Human Rights Statement, was
deployed in 14 languages. All employees
are required to acknowledge reading
the code and completing the computerbased
training.
Chevron's commitment to good governance
is demonstrated in many ways. All of our
directors stand for election each year, 13
of 15 are nonemployees and independent,
and we have a lead independent director.
Since 2004, we have elected seven new
directors. Stockholders have the right to
call for special meetings and recommend
director candidates to the board. The board
will reconsider any stockholder proposal
that receives a majority of votes cast at the
annual meeting. And we adopted a policy
of obtaining stockholder approval of any
stockholder rights plan.
Chevron strives to be transparent with and
responsive to our stockholders while managing
the company for long-term success.
We communicate with our stockholders
through reports, press releases and other
formats. We meet frequently with stockholders
to discuss governance, financial,
environmental, social, and policy issues. For
example, in 2008 we met with stockholders
to discuss our presence in Myanmar and
Nigeria, our record of support for international
human rights, our environmental
record and commitment to alternative
energy sources, our board structure and
processes, and our director and executive
compensation practices.
Stockholders can submit inquiries to the
Board of Directors and proposals for inclusion
in our proxy statement. In the past five
years, we worked with proponents of 51
stockholder proposals submitted for inclusion
in our proxy statement, resulting in
the agreed-upon withdrawal of 11 of those
proposals. During the 2009 proxy season,
we received eight stockholder proposals covering
a range of topics, including greenhouse
gas emissions, country selection guidelines
and human rights. One of these
proposals was withdrawn after dialogue
with the proponents. More information
can be found at Chevron.com/Investors/CorporateGovernance.
Lobbying
Chevron has a right and responsibility to
advocate positions on proposed policies
that will have an impact on the company's
ability to meet growing demand for energy.
We lobby ethically, constructively and in a
bipartisan manner through direct communication
with public officials. We also
encourage our employees, stockholders
and others to communicate with officials
where permitted by law. Chevron complies
with all registration and reporting regulations
related to our lobbying activities.
Chevron is actively engaging the administration
of U.S. President Obama and the
U.S. Congress to provide perspective on
the complexity of energy issues affecting
the United States and the world. In 2008,
our outreach to the president included
recommendations on policy matters
regarding the economy, energy, climate
change, international issues, education,
and research and development. The goal is
to help shape an effective and responsible
U.S. energy policy. The recommendations
include promoting energy efficiency and
expanding and diversifying the country’s
energy portfolio. To view "Strengthening
America's Energy Pillar: Recommendations
for President-Elect Obama," please visit
Chevron.com/ObamaLetter.
Business Ethics
Chevron takes seriously the conduct of
its employees and requires questionable
conduct to be reported. This may
include, for example, violations of company
policy or of the Chevron Business
Conduct and Ethics Code. One reporting
method is the Chevron Hotline, which is
operated offsite by Global Compliance
Services (AlertLine®), an independent
agent. In 2008, AlertLine® received 555
reports, compared with 391 in 2007 and
262 in 2006. The largest percentage of
reports applied to two categories: people-
management issues (63 percent) and
financial and internal controls (17 percent).
You can find additional information in our
Business Conduct and Ethics Code
about avenues in which employees report misconduct and a description of how we administer oversight of our compliance program.
Political Contributions
Chevron has strict policies and internal
approval processes so that decision making
and reporting on political contributions
comply with the letter and spirit of all
applicable laws. Contributions in 2008
were $4,358,256 to support candidates
and political organizations that foster economic
development, free enterprise and
good governance. Totals include contributions
to support our views on local and
state ballot measures.
Chevron employees, through the Chevron
Employees Political Action Committee
(CEPAC), contributed $711,270 in the
2007–2008 election cycle to the election
of candidates from both parties for U.S.
federal office, as well as to local and state
candidates in certain U.S. jurisdictions.
By policy, CEPAC does not contribute to
presidential candidates or national political
parties.
A list of federal contributions made by
CEPAC is on the U.S. Federal Election
Commission Web site. You also can see a list of corporate
political contributions
made during the previous year.
Updated: May 2009