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2002 ChevronTexaco Corporate Responsibility ReportSocial IssuesCase Study >(Continued)Angola Partnership InitiativeCase Study >Community Developmentin Papua New Guineaon importation of seed, creating better access to markets and informationand, ultimately, increasing rural incomes.The planned Angola Enterprise Development Bank will provide small loansand other banking services to low-income Angolans and small businesses.The bank intends to fill a need for small-scale credit that is not currentlycovered by the commercial banking sector. In addition to ChevronTexaco,the other stakeholders in the bank are major European development institutionswhich are working for the first time in Angola.In addition to providing ChevronTexaco a vehicle to make a contribution toAngola’s recovery, our involvement in the Angola Partnership Initiative hasprovided us with invaluable experience in developing long-term, mutuallybeneficial partnerships with nongovernmental and multilateral organizations.We have also found that it has helped us bring together interested partiesto seek ways to be more efficient in our collective efforts.In 2001, Chevron Niugini Ltd.(CNLG), in partnership with theWorld Wildlife Fund (WWF), formedthe Community Development InitiativeFoundation (CDI), an independent,nonprofit organization workingPapua New Guinea children learn on community development issuesabout disease prevention.in the region. Between 2001 and2003, ChevronTexaco and its jointventure partners provided US$4.8 million (of which approximately $875,000was ChevronTexaco’s share) in grants and operational support to CDI.In addition to furthering WWF’s efforts to protect natural resources, CDIbrings social services to rural communities affected by the oil industry,providing programs in health, education, agriculture, skills developmentand cultural preservation, in support of government efforts.CDI is a unique model for ChevronTexaco’s community engagement because,in launching the foundation, the company created an independent operationalentity with its own staff, facilities and mission solely focused oncommunity development. CDI assumed responsibility for Chevron Niugini’sexisting community development programs, bringing to it the foundation’snetwork of expertise on development issues, as well as the trust of communitymembers. CDI blends both social and environmental considerationsinto one coordinated approach and is one of ChevronTexaco’s best examplesof a comprehensive community development program, designed tothrive long after a region’s oil stops flowing.In what will prove to be a test of CDI’s sustainability, in 2003 ChevronTexacosold our Papua New Guinea oil operations, a move the company currentlybelieves will not affect CDI’s continued operations. After receiving initialfunding from ChevronTexaco and its joint-venture partners, CDI begansoliciting funding from other sources to help guarantee its growthand survival after ChevronTexaco’s – and ultimately the oil industry’s – exitfrom the region.ChevronTexaco believes that our experience with CDI has provided valuablelearning about effective community engagement and innovative approachesto making a positive and lasting contribution to the communities in whichwe operate. To capture this learning and apply it elsewhere in our operations,ChevronTexaco has commissioned an independent review and analysis ofCDI. After its planned completion in 2003, the findings of the review willinform ChevronTexaco’s future community engagement activities aroundthe world.© 2003 ChevronTexaco Corporation. All Rights Reserved.17
2002 ChevronTexaco Corporate Responsibility ReportSocial IssuesHuman RightsBackground: The Private Sector’s RoleThe private sector can play an important role in the promotion of humanrights. The Universal Declaration of Human Rights – which is widelyconsidered the most important foundational document on human rights– states that “every organ of society” has the obligation to further humanrights. But given the complex nature of human rights issues, determiningthe appropriate roles and responsibilities of private, public and civil sectoractors is a delicate and evolving task.ChevronTexaco, along with other companies in the energy industry,often operates in countries where there is civil and political unrest, andwith this can come allegations of human rights violations. ChevronTexacoand others have a direct interest in operating in environments wherethe rule of law is applied fairly and consistently, and where individualsare treated with respect and dignity. As a result, over the past severalyears, companies have come to place greater attention on the promotionof human rights.Approach: Respecting Human Rights in Our OperationsAs expressed in The ChevronTexaco Way,we support universal humanrights and, in conducting our operations, we seek to uphold and respecthuman rights principles, consistent with the role of business. We also arefounding supporters of the Global Sullivan Principles, which address arange of human rights issues. We are committed to working with governments,our business partners, nongovernmental organizations and thecommunities where we operate to develop a fuller understanding ofhuman rights issues, how they apply to our company and what wecan do to make a contribution consistent with our appropriate role.We see this as an important step toward the furthering of humanrights worldwide.ChevronTexaco has long addressed many of the issues that fall underthe umbrella of human rights, such as employment practices, nondiscrimination,health and safety, and security of employees and companyfacilities. In 2002, we reviewed our policies, systems and practices todetermine how we might encourage better performance in this area,including more systematically integrating human rights considerationsinto our day-to-day operations. We also have engaged external stakeholdersand human rights experts to assist us in this effort.As a first step following the review, we have developed a draft HumanRights Statement, which builds on The ChevronTexaco Way and furtherdefines our commitments and approach in this area. The statement, whichwas developed in consultation inside the company and with outsideexperts, addresses and provides guidance on issues such as employmentstandards, security, conflict zones, indigenous peoples and humanrights assessments. We believe the statement will serve the followingpractical functions:> provide operational guidance for ChevronTexacoemployees and partners;> act as a framework for constructive dialogue withexternal organizations;> be the starting point for company measurementof and reporting on performance.Future Goals: Developing and Testing a Global ApproachWe know developing a Human Rights Statement is only a first step. Weare testing application of our statement in select locations, includingsome where we face significant human rights challenges. We intend touse this testing to gain a fuller understanding of how to apply the statementin an operational environment, determine where human rightsconsiderations can be more systematically integrated into existing managementprocesses, and how we can measure and monitor our performancemore effectively. We also intend to develop additional guidance,tools or training to support the implementation of the statement. Basedon the results, our aim is to revise and finalize the statement and begincorporatewide implementation in 2004.Case Study > Human Rights Dilemma in AngolaA recent event in Angola illustrates the challenging and complex issuesrelated to human rights and the boundaries of responsibility between thepublic and private sectors. ChevronTexaco faces these issues in many of thelocations where it operates.In December 2002, a report issued by the Coalition for the Reconciliation,Transparency and Citizenship – a group composed of several non-governmentalorganizations, Angolan unions and the Ad Hoc Commission forHuman Rights in Cabinda (which was formed by six citizens in the Angolanprovince of Cabinda) – alleged that the Cabinda Gulf Oil Company (CAB-GOC), a wholly owned subsidiary of ChevronTexaco operating in Angola,“should stop the complicity in allowing police investigations in theMalongo camp.”© 2003 ChevronTexaco Corporation. All Rights Reserved.18
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