STATE OF ETHICS AND ETHICALPRACTICES IN CHEVRON1
STATE OF ETHICS AND ETHICAL PRACTICES IN CHEVRONManaging People at Work (H501)Submitted to Neaz AhmedProfessor, IBASubmitted by Saida Kabir ID.19 (47D)Nadia Tabassum Khan ID.28 (47D)Shahriar Kabir Nahid ID.29 (47D)December 31, 20122
Introduction• A code of conduct is intended to be a central guide and reference forusers in support of day-to-day decision making.• It is meant to clarify an organizations mission, values and principles,linking them with standards of professional conduct.• An ethical code generally implies documents at three levels: codes ofbusiness ethics, codes of conduct for employees, and codes ofprofessional practice.December 31, 20123
December 31, 20124Objective• To understand the outline of the code of ethics of the organization• To identify the effective communication of the code of ethics to theemployees• To address the areas of employee protection• To learn how employees can be motivated to comply with the code ofethics• To recognize the impact of the ethical practice on corporate culture
5December 31, 2012Scope• The selection of the organization, Chevron Bangladesh, enabled us tohave a look at a standard code of ethics as the organization is servingworldwide.• The report was generated based on the opinions given by the HRMpersonnel of Chevron Bangladesh.
66December 31, 2012Limitation• Due to the company policy, we were restricted from conducting a formalsurvey on the general employees. Thus no quantitative analysis was madepossible.• The data collection was basically through the HR Personnel that maygenerate a little biasness on the findings.• The ethical practice of Chevron may not reflect the overall scenario ofthe corporate culture of Bangladesh.
7December 31, 2012Company Overview - Chevron• Second-largest integrated energy company in the United States and amongthe largest corporations in the world.• Business activities around the world• Diverse and highly skilled global workforce consists of approximately61,000 employees, including more than 3,000 service station employees
8December 31, 2012Chevron Bangladesh• Chevron is one of the largest foreign investors in Bangladesh, providingemployment and supplying nearly 50 percent of the countrys natural gasconsumption.• Producing Natural Gas in Jalalabad• Delivering Energy Efficiently in Moulavi Bazar• Putting Innovation to Work in Bibiyana
9December 31, 2012Vision and Values• Chevron safely provide energy products vital to sustainable economicprogress and human development throughout the world• They earn the admiration of all our stakeholders — investors, customers,host governments, local communities and their employees.Key Values - The Chevron Way•Integrity•Trust•Diversity•Ingenuity•Partnership•Protecting People and the Environment•High Performance
10December 31, 2012Ethical Practices at Chevron• Code of Ethics• Dissemination of Code of Ethics• Application of Code of Ethics• Training on Ethics• Management Support for Ethical Conduct• Reporting Ethical Misconduct• Protection of Employee after Reporting• Monitoring Ethical Misconduct• Disciplinary Methods• Reward System• Updating Ethical Guidelines• Previously Observed Unethical Conduct• Challenges in Enforcing Code Of Ethics• Home Country versus Host Country• Management’s Perception about Code of Ethics• Employee Perception about Code of Ethics
11December 31, 2012Code of EthicsThe company has its own code of ethics.Is it legal?Is it consistent with Company policy, including our Human Rights Policy?Is it consistent with The Chevron Way?If it were made public, would I be comfortable? Four “yes” answers are required to qualify an action as ethical and in stepwith Chevron’s values.
12December 31, 2012Dissemination of Code of Ethics• In written form prior appointment• Through Training• Through regular application of certain guidelines
13December 31, 2012Application of Code of Ethics• Equal application of rules for different level of management• Investigation is a must• If proven guilty of any misconduct, subsequent punishment procedure isfollowed for every employee
14December 31, 2012Training on Ethics• A computer based, ‘Business Conduct and Ethics Code’, training iscarried out every year• Duration of the training is 60 minutes.• It is mandatory for employees of all departments and of all level ofmanagement.• Employees are given a 30days period to go through the training.• Combined effort of Human Resource department, Finance departmentand IC&T (Information, Communication and Technology) departmentensures successful completion of this training.• If anyone fails to do the training within time he/she will be penalized forthat.
15December 31, 2012Management Support for Ethical Conduct• Executive leaders of all departments regularly discuss about ethics andthe importance of creating an ethical culture in management meetings orother settings.• Timely and specific guidance from supervisors, managers, the ChevronLaw Department, the Corporate Compliance group or local ComplianceCoordinator are always available to support the employee.• Head of Systems, Control and Compliance department act as an in-houseethics advisor for any types of ethical issues.
16December 31, 2012Reporting Ethical Misconduct• Each employee must speak up promptly if there is any reason to suspectthat anyone in Chevron or its affiliates has violated Company policies orlocal laws. We must also report any activity that could damage theCompany’s reputation.• Employee can try to resolve the situation through a discussion withsupervisor, local management or local Human Resources businesspartner.• Chevron Hotline is also, which operates 24 hours a day, seven days aweek.• Report via hotline will be taken seriously and investigated as appropriateby a third party.
17December 31, 2012Protection of Employee after Reporting• There are no negative consequences to raising concerns in good faithusing the hotline• The Company assures employees that no retaliation will take place.
18December 31, 2012Monitoring Ethical Misconduct• Ethical state of the organization is monitored quarterly.• Human Resource department, Finance (compliance) department andIC&T (Information, Communication and Technology) department areequally responsible for this monitoring process.
19December 31, 2012Disciplinary Methods• Each of the employees must comply with Code, and with all Companypolicies.• Violations of the Code, or the policies referred to in the Code, couldresult in discipline, including termination of employment and/or criminalprosecution.• A disciplinary procedure is followed in case of such action• All of these penalizing actions are taken silently.
20December 31, 2012Reward System• The company does not provide any rewards for complying with thecodes or performing ethical behavior.• The organization expects ethical compliance as a prerequisite to workwith them.
21December 31, 2012Updating Ethical Guidelines• Ethical guidelines of the organization are updated annually.• Corporate Management department is responsible for the updates.• The employees are made informed about these relevant updates throughtraining materials, company bulletin, emails and company’s internalwebsite.
22December 31, 2012Previously Observed Unethical Conduct• Abusing the company resources which include internet abuse, use ofcustomer database for personal gain• Revealing trade secrets to competitors• Immoral behavior like- negligence at work, passing the blame,falsifications are never accounted within the organization.
23December 31, 2012Challenges in Enforcing Code Of Ethics• The most frequent challenges faced by the authority in enforcing code ofethics are-• Making the vast and diverse workforce respectful of the ethical guidelines• Keeping up with the ethical standards while dealing with external bodies.• Providing a single, standard guidance for people of different level.• Ensuring compliance with these standards in order to maintain the trustand reputation among the local and global communities.
24December 31, 2012Home Country versus Host Country• Diversity is a fundamental value at Chevron. As stated in The ChevronWay, this means that• “We learn from and respect the cultures in which we work.”• Discrimination is prohibited in hiring, rate of pay, promotion, demotion,transfer, layoff or termination.• All of the employee must obey the letter and spirit of the law at all times,wherever they live or work.
25December 31, 2012Management’s Perception about Code of Ethics• The management believes that they pursue a stable culture which resultsfrom a strong central governance.• Each and every cases of violation of ethics has been given due importancewith proper, extensive investigation in a just way.• As Chevron enjoys a strong reputation for honesty and integritythroughout the world, they feel that no major initiative should be takenat this point of time to improve their ethical culture.
26December 31, 2012Employee Perception about Code of Ethics• Employees of the organization perceive the code of ethics as a guidelinewhich effectively defines their boundary and which is mandatory forprotecting their rights at the work place.• The code of ethics as well as any update related to it is properlycommunicated to them.• They are clearly informed about what to do and what not to do and alsothe proper channel to report any ethical misconduct.• They feel protected and proud to be a part of such organization thatfollows guidelines equally applied for all employees.
27• A code is a tool to encourage discussions of ethics and to improve howemployees/members deal with the ethical dilemmas, prejudices and grayareas that are encountered in everyday work.• Chevron Bangladesh has a sound code of ethics.• The guidelines are strictly followed ensuring harmony among theorganization.• The codes of conduct offer an invaluable opportunity for ChevronBangladesh to create a positive public identity for themselves• An example for other organizationsDecember 31, 2012Conclusion