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2002 ChevronTexaco Corporate Responsibility Report Social IssuesRevenue TransparencyBackground: Addressing a Complex IssueGovernments in some countries where energy development takes place –particularly those in the developing world – have been accused of lackingsound governance systems, condoning corruption and failing to distributethe benefits of their energy resources to their citizens. This is an enormouslycomplex issue that straddles subjects such as sovereignty offoreign governments, the “ownership” of the resources themselves,sanctity of contracts and the appropriate role of companies in seekingto influence governments to better account for and manage thesesignificant sums.> that civil society organize and engage constructively, while continuingto monitor the process and remind its participants of the opportunitywe all have to work together to affect real change;> that private-sector companies continue to demonstrate their commitmentto implement the agreed-upon aims of the EITI initiative. Forour part, we have pledged our own commitment to do so.Over the past few years, a variety of efforts have emerged advocating forgreater transparency about the amounts and sources of revenues generatedby the extractive industries. Many believe that such transparencywould increase the accountability of governments to demonstrate howthose funds are used for the benefit of their citizens.Approach: Participating in Voluntary InitiativesTransparency is one of the fundamental values that guide ChevronTexaco’sbusiness conduct, and we have participated in the dialogue associated withmany recent revenue transparency initiatives. A consistent message fromChevronTexaco has been that for any of these initiatives to be meaningfuland achievable, they must honor the sanctity of contracts; be inclusive ofgovernments, nongovernmental organizations and companies, without aunilateral focus on any one; and remain voluntary.ChevronTexaco views the Extractive Industry Transparency Initiative(EITI), sponsored by U.K. Prime Minister Tony Blair, as a meaningfulattempt to tackle this difficult issue. ChevronTexaco is proud to haveparticipated in the constructive dialogue process that EITI launched,one that brought together governments, industry, international financialinstitutions (IFIs) and nongovernmental organizations to address a difficultglobal issue.ChevronTexaco has pledged its support to the Blair EITI,while at thesame time issuing a challenge to all participants:> that the G8 Governments who now drive the EITI initiative be preparedto share leadership with host governments;> that the IFIs, especially the International Monetary Fund, be preparedto dedicate the resources and commit the necessary political will andpersuasive powers to carry it forward;© 2003 ChevronTexaco Corporation. All Rights Reserved.13