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How does Chevron maintain the highest ethical standards?
By training our employees to stay grounded in The Chevron Way

Operational Excellence Management System
We seek to develop a culture in which everyone believes that all incidents are preventable and that “zero incidents” is possible. This requires active leadership and all employees to be engaged.

Chevron’s Operational Excellence Management System (OEMS) describes the company’s uniform approach to systematic management of safety, health, the environment, reliability and efficiency. Lloyd’s Register Quality Assurance, Inc., attested that OEMS is implemented throughout the corporation and that it meets all the requirements of both the International Organization for Standardization’s environmental management systems standard (ISO 14001) and the Occupational Health and Safety Assessment Series requirements for occupational health and safety management systems (OHSAS 18001).

In 2007, we voluntarily undertook a systematic approach to identifying and managing risks. During our initial review, we identified 307 potential risks that warranted additional action, in the form of either risk reduction measures or a more detailed review to better assess the potential risk and determine appropriate action. By the end of 2009, additional reviews and risk reduction plans, when appropriate, had been completed for 299 of those potential risks, with eight remaining risk reduction plans anticipated to be completed in 2010. The results of this process will allow us to tailor OEMS more effectively in the most material areas.

Additionally, the Corporate OE Audit Group conducts audits across the enterprise. OEMS processes and performance are audited every three years for operations groups and five years for staff groups. Other staff groups are reviewed as performance indicators warrant. Management receives the results of the evaluations, and groups report annually to the corporation on their progress in addressing significant issues.

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.

Governance
For Chevron, good corporate governance means being transparent with and responsive to its 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. Stockholders can direct inquiries to the Board of Directors and submit proposals for inclusion in our proxy statement. Since 2000, we have worked with proponents of more than 80 stockholder proposals submitted for inclusion in our proxy statement, resulting in the agreed-upon withdrawal of more than 25 percent of those proposals. During the 2010 proxy season, we received eight stockholder proposals covering a range of topics, including corporate governance, executive compensation, and social and environmental concerns.

Chevron’s commitment to good governance is seen in many other ways, too. All our directors stand for election each year; 12 of our 14 directors are nonemployees and independent; the board annually elects a chairperson; and we have a lead independent director. The past year, we added two new directors. Chevron’s restated certificate of incorporation and bylaws do not contain supermajority vote provisions. 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. In addition, we adopted a policy of obtaining stockholder approval of any stockholder rights plan. More information can be found at Chevron.com/CorporateGovernance.

 Lobbying
Chevron has a right and responsibility to advocate positions on proposed policies that will affect the company’s ability to meet the growing demand for energy. We lobby ethically, constructively and in a bipartisan manner through direct communication with public officials. We also encourage our employees, retirees and others to communicate with officials when permitted by law. We comply 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 2009, our outreach 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.

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. Global contributions in 2009 were approximately $2.52 million 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 $254,000 in 2009 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 that CEPAC made is on the U.S. Federal Election Commission Web site. Corporate political contributions made during the previous year are listed at Chevron.com/PoliticalContributions.

Updated: May 2010

source: http://www.chevron.com/globalissues/businessethics/