...Summary Chevron commits huge resources to tackle environmental risks; this report studies the viability of doing so. We find that (1) it is using a right combination of internal and external tools to increase workers’ awareness, diversify environmental risks and mitigate moral hazard at the same time; and (2) the Decision Making (“DEMA”) system is valuable to the company in providing a systematic framework to quantify environmental risks. Introduction Chevron operates in the business of petroleum and natural gas exploration, production, refining and marketing, and as such faces huge environmental risks such as oil spills and exhaust emissions. Throughout the years Chevron has honoured its claim in “Protecting People and the Environment” by committing a higher proportion of revenues to environmental spending than its competitors. However, environmental risks and the benefits of managing them are by nature hard to be quantified, while the costs are obvious and substantial. This report studies the viability of Chevron’s investments in two steps. First, it examines the tools Chevron uses to manage environmental risks, and explains why they are different from those used to manage other risks. Second, the report will analyse the pros and cons of the novel DEMA system, an attempt by Chevron to systematically quantify environmental risks. What tools is Chevron currently using to manage environmental business risk? We have categorized the tools currently adopted by Chevron as follows: ...
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...Before deciding whether Chevron should implement their new analytical process “Decision Making (DEMA)” across the organization we decided to check whether DEMA will align with the company policies. In 1997, Chevron spent around 2.1% of its revenues and 9% of the total cost to their environmental risk strategy. In the same year, Chevron’s major competitors Exxon and Mobil spent 1.1% and 0.9% of their revenue respectively on environment risk strategy. This was due to Chevron positioning itself both publicly and internally as a company that was responsible steward of natural environment. Furthermore, we analyzed their Internal and External Risk Management tools and compared them with the Quantitative Risk Management tool (DEMA). Internal Risk Management:- Traditionally, risk management decision making at Chevron was more judgmental than analytical. Their risk management across the organization relied on managerial judgment which followed Policy 530. There were ten key elements which were part of Policy 530 such as compliance assurance, community awareness and outreach, energy and resource conservation etc. All these elements were to be implemented through adherence to the managerial practices. Incentive compensation was one of the major savings plan used by 98% of the employees within Chevron but it was largely based on profitability of the corporation and not majorly linked to the attainment of safety or environmental objectives. But senior management was required to review the...
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...Domestic and Global Marketing Marketing MKT/421 Assignment 5, Domestic and Global Marketing • The present assay will review the meaning of domestic and global marketing as interpreted by the current author from course reading and online research. The paper will open with a description of domestic and global marketing taken from sources he has pulled from the internet for comparison. The author will discuss how these two types of marketing can be put into practice by examining two separate organizations. The following exercise is facilitated to build on the author’s understanding of place and promotion within marketing, and how regional influence is involved. • Marketing Comparison: Domestic and Global An online dictionary and corporate encyclopedia describe marketing as a “business activity of presenting products or services in such a way as to make them desirable” (Microsoft Encarta, 2007). Marketing needs channels of distribution to sell and deliver products or services to buyers which may include distributors, retail markets, and wholesalers (Kotler, Keller, 2006, pp. 25-26). A marketer uses a service channel, which may include storage brokers, transportation facilities, warehouses, banks, and insurance agencies who work as a liaison for the marketer (Kotler, Keller, 2006, p. 26, 89). There are two branches to marketing that are impacted by regional influence: domestic marketing and global marketing. The current author found two definitions for a branch...
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...Caltex Group’s corporate governance practices for 2014, including compliance with the ASX Corporate Governance Council’s Corporate Governance Principles and Recommendations for the year ended 31 December 2014 and as at the date of this Annual Report. A graphical representation of Caltex’s Corporate Governance Framework (CG Framework) is set out below. Delegation MD & CEO Board Independent Advice • Independent legal or other professional advice Audit Committee • Audit Committee Charter OHS & Environmental Risk Committee • OHS & Environmental Risk Charter Oversight through reporting • External auditors External Auditor Policy • Internal Audit • Board Charter • Board Tenure Policy • Board Composition, Appointment, Induction & Election • Charter of Director Independence • Delegation of Authority • Performance Evaluation Process • Policy for Transactions with Chevron • Risk Management Summary • Continuous Disclosure Policy • Securities Trading Policy • Shareholder Communications Policy • Code of Conduct • Diversity and Inclusion Policy Human Resources Committee • Human Resources Committee Charter Delegation Accountability Accountability Assurance Delegation 4 Caltex Leadership Team (CLT) Nomination Committee • Nomination Committee Charter The CG Framework is regularly reviewed and updated in response to changes in Caltex’s business, Australian corporate governance practice and the law. 1. The Board 1.1...
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... anonym2@mail.au Company: Chevron Corporation Title: Corporate Social Responsibility: An Analysis of Chevron Other Details: Semester 1 2014, Bentley Campus (Word Count: 1568) Introduction Multinational Energy Companies, like Chevron Corporation, have a broad and significant social, economic and environmental impact on the globe and as such are in a position to influence the lives of many people. Chevron is involved in many different facets of the energy business, including exploration, refining, production and transportation. The company employs approximately 60 000 people in the oil and natural gas industry, with interest in 180 countries (Chevron Corporation SWAT, 2009). With the rise in global communication associated with the information age, companies like Chevron have to establish symbiotic relationships, focused on sustainable development, with society in order to satisfy increasingly environmentally conscious stakeholders. In this context a symbiotic relationship refers to one that is cooperative and mutually beneficial (Langella et al. 2012, 51). At the foundation of such a relationship is respect for health and wellbeing of communities that interact with the company and its operations. Chevron has displayed care and respect for the local communities and their welfare on a number...
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...Chevron’s Business Conduct and Ethics Code is the foundation of which the company’s core values are built. The principles that which Chevron stands for guides all business conduct and does clarify any misconceptions for any and all situations that may be encountered on the job. Furthermore, the code also provides a list of resources that may provide any assistance in resolving any issues that are not covered within the code. Within the list of resources, company policies and procedures are also available to help facilitate a resolution. Also within the resources are major concepts that are dear to the heart of Chevron. These concepts are the “Chevron Way, Operational Excellence, and Tenets of Operation”. (Chevron, 2011) These concepts will be discussed. The violation of any code articles and any policies within the code could result in disciplinary actions to include termination of employment and/or criminal prosecution. “Our company's foundation is built on our values, which distinguish us and guide our actions. We conduct our business in a socially responsible and ethical manner. We respect the law, support universal human rights, protect the environment and benefit the communities where we work.” (Chevron, 2011) These values encompass integrity, trust, partnership, diversity, ingenuity, protecting the people and environment, and high performance. Code of Ethics The Code of Ethics is utilized daily and possibly with or without your knowledge. It has become a part of all...
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...Applying Knowledge Management to Oil and Gas Industry Challenges Released October 2002 By Paige Leavitt (with contributions from Cynthia Raybourn and Cindy Hubert) The oil and gas industry has taken advantage of knowledge management (KM) developments for more than a decade. In that time, the industry has experienced rapid changes and so many mergers that a oneworded petroleum company name now seems like an oddity. Throughout the rapid advance of technology, an extension of offshore drilling, numerous acquisitions, the growing reliance on foreign oil sources, and a focus on environmental issues, KM initiatives have played a part in making operations more efficient and effective. For instance, when oil and gas companies have been faced with new technology, outsourcing, new partnerships, and government regulation, their KM teams have provided support through technology and knowledge transfer, as well as asset management. When business issues involved capacity management, cost reduction, and the environment, KM played a part through forecasting/scheduling and process and technique innovation. And to improve speed and convenience, KM initiatives have expanded to address point-of-sale technology adoption and procedure effectiveness. Undeniably, KM has been proven to increase stock market valuation, assist in growth through acquisition, lead to better-developed products, and encourage intelligent leadership for tenacious early adopters. Chevron's (now ChevronTexaco's) definition of...
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...Applying Knowledge Management to Oil and Gas Industry Challenges Released October 2002 By Paige Leavitt (with contributions from Cynthia Raybourn and Cindy Hubert) The oil and gas industry has taken advantage of knowledge management (KM) developments for more than a decade. In that time, the industry has experienced rapid changes and so many mergers that a oneworded petroleum company name now seems like an oddity. Throughout the rapid advance of technology, an extension of offshore drilling, numerous acquisitions, the growing reliance on foreign oil sources, and a focus on environmental issues, KM initiatives have played a part in making operations more efficient and effective. For instance, when oil and gas companies have been faced with new technology, outsourcing, new partnerships, and government regulation, their KM teams have provided support through technology and knowledge transfer, as well as asset management. When business issues involved capacity management, cost reduction, and the environment, KM played a part through forecasting/scheduling and process and technique innovation. And to improve speed and convenience, KM initiatives have expanded to address point-of-sale technology adoption and procedure effectiveness. Undeniably, KM has been proven to increase stock market valuation, assist in growth through acquisition, lead to better-developed products, and encourage intelligent leadership for tenacious early adopters. Chevron's (now ChevronTexaco's) definition of...
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...defined concept, but generally it is the values, beliefs, and norms expressed in work practices and behavior. An organization's culture is not necessarily an articulated list of values found in a carefully worded statement or available as an appendix in an annual report. Rather, culture is created by the organization itself. How employees treat and interact with one another and the values of the employees and the organization, such as work ethic, manifest an organization's culture. Some cultures encourage innovation and risk taking, while others punish those who challenge established norms and practices. Here, I’d like to discuss about work culture in one of my previous employers, Chevron. Coming from a local auditing firm before Chevron, I was really in awe and culture shocked during that time. Everyone in the company address each other on a first-name basis which is not usual in a local set-up where the senior people are addressed as “Sir/Madam”, so that was a complete change of grounds for me. Also the Identity card never represented the designation of a person. The main reason behind this was to reduce the “Power-distance”. There is a kind of domination by the people in higher positions. I used to work along with the directors and other senior people in the same office and they were very much accessible to me. Every day all the employees used to had lunch and dinner with the top management. Another instance where the culture in my previous Organization had a positive...
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...Challenges While embracing an effective and productive global business environment, there are often ongoing matters such as unethical business challenges, failure to embrace technology advancement, and stiff competition among businesses (Chevron, 2012). It is the responsibility of each individual global company to ensure that proper strategies and policies are utilized to address these challenges. This paper will analyze the Code of Conduct of Chevron Corporation, as it relates to other companies in the industry, while simultaneously determining the key issues impacting the company and how technological advancements may face challenges in the global society. Chevron is a company that has an extensive strong history, which began when a group of explorers and merchants established the Pacific Coast Oil Company on September 10, 1879, in San Francisco. The company has changed its name more than once, but claims to have always retained their founders’ spirit of grit, innovation, and perseverance (Chevron 2013). They have transformed into what is now Chevron Corporation, recently ranked 9th among the world’s top oil companies by Petroleum Intelligence Weekly in 2013, second among US oil companies behind ExxonMobil (Chevron 2013). Chevron has partnered with other companies, each with their own unique history, strengths, and character. Essentially, they have grown from a San Francisco based company with a five state market in the Western United States, to a major corporation whose...
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...as follows: Legal & Economic Responsibility: Approach to Business: Chevron strive to operate safely, protect their workers and deal ethically with our stockholders, partners and the public. The approach focuses on the 4 key areas: Ethics & Governance, Human Rights, Diversity and Workforce Health & Safety – Chevron will only operate where they can legally and profitably conduct their business while placing the highest priority on protecting people and the environment. In using this approach they are able to identify and manage risks they encounter while creating value for their investors, customers, partners, government of the country in which the operation is, local communities and workforce. Chevron takes seriously the conduct of its employees and requires questionable conduct to be reported. Chevron's Human Rights Policy fosters greater awareness of human rights issues throughout the company and enhances their capabilities to identify and manage human rights issues in four areas relevant to their business: employees, security providers, community engagement and suppliers. Diversity councils throughout the company strive to provide every employee with a full opportunity to contribute to the company goals. Chevron's efforts to create and maintain a safety culture include starting meetings with safety lessons, tracking and awarding business units for strong safety performance, sharing best practices and lessons learned, and using behavior-based safety evaluations. Philanthropic...
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...Environment Bus 457 11/25/2014 Chevron Chevron, one of the oldest energy companies in United States, was first founded as Pacific Coast Oil Company in 1879 and was named as Chevron Corporation in 1984. Several companies were established after Standard Oil’s split during 1980s’ and Chevron Corporation was among those big energy corporations who merged with those companies. The company is publicly traded on NYSE, Dow Jones Industrial Average and S&P 500. Chevron is involved in petroleum and natural gas industry. It does almost anything related to the industry from exploring to generating power. With over 60,000 employees Chevron operates business in 84 countries; Angola, Australia, Gulf of Mexico, Kazakhstan, Nigeria and United States are regions where the cooperation mainly operates primary exploration and production. Other than oil and natural gas, Chevron is engaged to biofuel, geothermal, hydrogen, solar and wind energy production. According to the official website for businesses Chevron offers following goods and services: * Additives * Aviation Oils * Base Oils * Chemicals * Fuels * Lubricants * Marine * MSDS * Specialty Products * Technology And for consumers it offers goods and services listed below: * Fuels and Stations * Gift and Credit Cards * Pay Bill * Motor Oils and Fuel Additives Code of Ethical Conduct Chevron relies on values such as integrity, trust...
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...suggest the company needs to look at to further advance the company. There are many opportunities existing in today’s business marketing worlds. To take advantage of so many of these market opportunities. When we start looking , we need to look at the right area for investing our time and money to be productive in project a good image. The three companies I have selected are Chevron Lummus Global, Staples and Tiger2 Productions. Now let’s look at Chevron Lummus Global. Chevron Lummus Global (CLG) as the most completely integrated source for hydroprocessing technologies and services, CLG provides incremental efficient oversight at every step in oil refining. CLG's technologies are recognized and are being used by refiners worldwide to improve their refining profitability. (Chevron Lummus Global Ilc., 2011) A well-developed product portfolio would be good for this company. Staples’ is a large office supply company serving the world. This company strives every day to meet their customer’s needs. (Staples, 2011) Company should invest in marketing its sourcing and environmental friendly practices, as it is an opportunity for the company to show its advances into green technology and manufacturing. Tiger2 Productions is a company that supplies military surplus over the internet. This company provides wide range of military clothes and memorabilia from different eras in U.S. history. I have selected this company for research due to its providing military surplus but not...
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...understand that all students play a role in preserving the academic integrity of the University and have an obligation to report violations of the Academic Integrity Policy committed by other students. Chevron Corporation, an American multinational energy corporation is active in more than 180 countries. Chevron is one of the world’s six ‘super major’ oil companies. For the past five years, Chevron has been continuously ranked as one of America’s five largest corporations. Chevron’s headquarters is in San Ramon, California (Fox, 2012). It is engaged in every aspect of the oil, gas, and geothermal energy industries, including exploration and production; refining, marketing and transport; chemicals manufacturing and sales; and power generation. Chevron was originally known as Pacific Coast Oil Company in 1979, where they made their oil discovery in Pico Canyon north of Los Angeles, California (2012). Since its origination, it has blossomed and generated large amounts of revenue ever since. The International Financial Reporting Standards would be beneficial for Chevron. However, since this company has been in existence for a decade and have foundational methods and ways of their accounting and financial systems such as GAAP already implemented, it is hard for Chevron to adjust and...
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...Business Analysis 11 By Gloria Rodriguez MTG/521 December 5, 2011 Analyzing a business environment like Chevron’s is important, so that investors can determine if Chevron is a company one can invest in. Researching a company’s business environment is helpful to further secure business decisions. Careful consideration must be taken, and a closer review of historical financial statements is suggested to determine the company’s financial health. One way to determine a company’s health is by reviewing a company’s business environment, analyzing a company’s income statement, balance sheet, and statement of cash flows. Chevron is known to be one of the top profitable Fortune 500 Company. A recent SWOT analysis was completed determining Chevron as good company to invest in. Although, Chevrons SWOT was determined successful the mutual fund manager has to determine if the company is also successful in his or her their finances. There are five areas in a company’s business environment. The five areas of a business environment are economic, technical, competitive, social, and global business. Nickels, McHugh, and McHugh (2010) “Business environment consists of the surrounding factors that either help or hinder the development of businesses.” Businesses surrounded by a stable business environment can function successfully. Businesses that focus on their business environment closely can to make changes accordingly. Nickels, McHugh, and McHugh (2010) “Businesses normally can’t control;...
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