1 © 2016 Chevron

International Business Integrity Conference (IBIC) 2016

Government-private partnership:

anti-corruption & anti-bribery practice

© 2016 Chevron

Government-private partnership: anti-corruption & anti-bribery practice

Wayne P. Borduin

Vice President Finance

Jakarta, November 16, 2016

3 © 2016 Chevron

“Integrity is doing the right

thing, even if nobody is

watching.” Unknown author

4 © 2016 Chevron

Exploration & Production

Refining

Chemicals

Chevron worldwide

• One of the world’s largest

integrated energy companies

• Over 58,000 employees

• 2.622 million BOE daily net

production in 2015

5 © 2016 Chevron

PT. Chevron

Pacific

Indonesia

Chevron Indonesia Company

South Natuna

Sea Block B

Tiwi Field

Mak-Ban Field

Chevron Geothermal

Salak

Chevron Geothermal

Indonesia

Oil & Gas

Exploration and

Production

Geothermal

Chevron

Geothermal

Philippines

Holding Inc.

Chevron

Malampaya

PT. Chevron

Geothermal

Suoh-Sekincau

Chevron indoasia business unit (IBU)

Produces over 40% of

Indonesia’s crude oil

production

Generates approximately

50% of Indonesia’s

geothermal energy

Chevron Makassar, Ltd

Chevron Rapak & Ganal (IDD)

6 © 2016 Chevron

The chevron way: Guiding our business and core strategies

7 © 2016 Chevron

The chevron way Vision and values

Vision

To be the global energy company

most admired for its people,

partnership and performance

How does Chevron achieve its

vision? By getting results the right

way… The Chevron Way

Values

Our company’s foundation is

built on our values –

• Integrity

• Trust

• Diversity

• Ingenuity

• Partnership

• Protecting People and the

Environment

• High Performance

8 © 2016 Chevron

Preventative measures for

ethical decision making

Is it consistent with

company policy?

Is it legal?

Is it consistent with

the Chevron Way?

Would I be comfortable if

it were made public?

9 © 2016 Chevron

3 steps in implementing

anti-corruption / anti-bribery practice

Develop and implement strict anti-corruption/ anti-bribery policy

Policy

Develop and implement anti-corruption/ anti-bribery programs and supporting tools

Program & Tools

Monitoring and evaluation

Monitoring &

Evaluation

The Chevron Way: Integrity

10 © 2016 Chevron

Step 1: develop anti-corruption/

anti-bribery policy

1. Business Conduct & Ethic Codes, which guide us to fully comply with the

law and conduct our business in accordance with the highest standard of

honesty and integrity

2. Conflict of Interest, which prohibits employees from engaging in any

activities which conflict with Chevron’s business; adversely affect Chevron’s

reputations or relations with others; interfere with the fulfillment of the

employee’s job responsibilities

3. Foreign Corruption Practice Act (FCPA), a US Government policy which

prohibits any offer or payment of “anything of value” to non-US officials,

political parties, political party officials and candidates for non-US public office

in order to influence any action or gain any improper advantage for the

purpose of obtaining or retaining business

11 © 2016 Chevron

Step 2: develop and implement

anti-corruption/anti-bribery program

1. Manage Internal Control & Compliance Organization under Finance to

ensure the Company Policies are understood and executed by all

2. Develop Tools to implement and monitor the compliance programs:

• Incorporate compliance into employee annual performance agreements • Conduct mandatory computer-based training for all employees and

contractors, e.g. Business Conduct & Ethic Codes; Conflict of Interest

Survey; Foreign Corruption Practice Act/FCPA , Leading with Integrity

• Establish and maintain a designated Compliance Hotline

• Conduct face-to-face workshops on FCPA / COI / Compliance for

Chevron teams, vendors, and other business partners

• Secure pre-approval / clearance for any activities involving GOI officials

prior to executing the program/activity

• Establish an Investigation Governance Board (IGB) to follow-up any

whistle blowers allegation and implement sanctions to

employees/vendors

• Conduct independent Contractor audits

12 © 2016 Chevron

Step 3: monitoring and evaluation

Compliance Training

Employee Performance Agreement

Quarterly Compliance Committee Meetings

Internal Rated Audits

Compliance Action

Database

Corporate Reporting Complianc

e Action Database

Annual

Rep Letters

13 © 2016 Chevron

Summary and recommendation

Successful anti corruption and anti bribery practice requires:

Clear vision and values

Clear tone from the top, leading

by example

Availability of policy, regulation and good governance practice (i.e. establish publish rate on

government tariffs)

Availability of supporting tools/trainings and anti-corruption

preventive system

Build strong & transparent alliances with GOI agencies and

business sector

Consistent implementation and equitable sanction for all parties (government and

private business)

Transparent, consistent and honest justice system on law

enforcement

14 © 2016 Chevron

Thank you