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2002 ChevronTexaco Corporate Responsibility Report Social IssuesEmployeesEmployees are Key StakeholdersChevronTexaco’s approximately 53,000 employees are critical to thecompany’s success. ChevronTexaco seeks to provide employees with meaningfulwork, fair compensation,opportunities to develop skillsand knowledge, and honest andregular feedback on their performance.ChevronTexacoalso strivesto provide a work environment inChevronTexaco employees inwhich all employees are treatedCalifornia’s San Joaquin Valley.with respect and dignity.Approximately 43 percent ofChevronTexaco employees are in North America, 26 percent in Asia-Pacific, 14 percent in Africa, 9 percent in Europe and the Middle East,and 8 percent in South America. In the United States, approximately11 percent of ChevronTexaco’s U.S. work force is unionized.Geographic Breakdownof ChevronTexaco EmployeesManaging Work Force IssuesIn 2002 we launched the ChevronTexaco global People Strategy, whichfocuses on creating a global work force, valuing and managing diversity,developing leaders and managing talent. The strategy is designedto help us attract and retain the employees we needto achieve our business goals. ChevronTexaco’s executive-level HumanResources Committee oversees our worldwide employee relations policies,programs and performance. Individual operating companies andcorporate departments have Personnel Development Committees tomanage work-force issues for their respective organizations.Historically, Chevron and Texaco conducted periodic surveys to gaugeemployees’ satisfaction, commitment to the company and opinions ona range of other issues. Both worldwide surveys and localized or “pulse”surveys were used. In 2004, we plan to conduct our first worldwideemployee survey since the merger. The results of this survey will be animportant indicator of our performance in employee relations and willserve as the baseline for tracking our performance over time. In thefuture, we intend to conduct regular employee surveys and report theirmajor findings.Europe &M. EastSouthAmerica9%8%Africa14%Asia-Pacific26%NorthAmerica43%© 2003 ChevronTexaco Corporation. All Rights Reserved.25
2002 ChevronTexaco Corporate Responsibility Report Social IssuesDiversityBackground: RespectingDiversity is a Core ValueRespect for diversity is one ofChevronTexaco’s core values. Tous, this means appreciating theuniqueness of individuals andtheir varied perspectives and fosteringan inclusive environmentwhere every person can fullyparticipate. Throughout ourglobal operations, we encounterEmployees Ken Davis and Linda Hortondiversity in a variety of forms,amidst colleagues in Houston.and we recognize that in differentparts of the world, diversity is defined differently. ChevronTexacodefines diversity in the broadest sense to include attributes such as raceand gender to experience and personal style. We believe promoting suchdiversity and developing a work force that reflects the customers weserve, the countries where we operate and the partners we work withare essential for our long-term competitiveness.In the United States, Texaco settled a significant class-action employmentdiscrimination lawsuit in 1997. The suit, Roberts, et al. v. Texaco Inc., wasbrought by 1,400 individuals who were current or former employees ofthe company and alleged that Texaco discriminated against AfricanAmericans in pay, promotions and workplace behavior. The settlementagreement included a payment of US$115 million to the plaintiffs,along with a one-time salary increase of about 11 percent for currentemployees in the plaintiff class.As part of the settlement agreement, an independent five-year TexacoTask Force on Equality and Fairness was created. The role of the taskforce was to oversee Texaco’s and, after the 2001 merger, ChevronTexaco’s,implementation of a comprehensive human-resources program designedto help ensure fairness and equal opportunity for employees. When thetask force released its final report before disbanding as planned in 2002,it noted, “ChevronTexaco has been a responsive partner and has enthusiasticallyassumed responsibility for the human resources initiatives previouslyundertaken by Texaco to promote fairness and equal opportunityfor company employees.”ChevronTexaco’s approach to diversity reflects the knowledge that Texacogained as part of the settlement agreement and task force review. Ourvision is to be recognized globally as a leader in diversity, and we arecommitted to continual improvement.Policy on NondiscriminationChevronTexaco’s Employment Policy states that in any aspect ofemployment, no individual will be discriminated against based onrace, color, religion, gender, national origin, citizenship, age, sexualorientation, disability, veteran status or other status protected by law.Approach: Creating an Inclusive Workplace and Diverse Work ForceWe use a variety of tools, strategies and approaches to help attract, retain,develop and support a diverse, world-class work force. ChevronTexacoalso takes steps to provide a working environment free of discriminationor harassment. For example, since the early 1990s, the companyhas required all U.S. employees to take anti-harassment training. Thecompany does not tolerate retaliation against employees who exercisetheir rights under existing anti-discrimination laws.ChevronTexaco’s executive-level Human Resources Committee overseescorporatewide diversity programs and activities. The company’sGlobal Diversity Manager, who is responsible for the company’s strategicdirection, objectives and metrics related to diversity, reports directlyto ChevronTexaco’s CEO.Many ChevronTexaco operating companiesalso have their own Diversity Councils that develop programs to fosterdiversity as is applicable in their respective locations. As part of theannual review process, most employees develop and are then assessedagainst a Diversity Action Plan that describes how they will supportdiversity. For members of ChevronTexaco’s executive and managementcommittees, performance against their Diversity Action Plans is a componentin determining individual compensation.In the United States, through our Minority Outreach Program, we workwith and contribute to a variety of outside organizations that supportor help attract minorities into the disciplines we hire from. For example,ChevronTexaco partners with the INROADS scholarship and internshipprogram, which helps prepare minority students for management careers.As part of our campus recruiting process, we recruit at several historicallyminority colleges and universities as well as through minority organizationsat other universities.ChevronTexaco also supports a number of employee networks andaffinity groups that bring together employees with common goals,interests and backgrounds. The groups focus on mentoring, development,recruitment, community volunteerism, cultural awareness andsupport for the company’s diversity objectives. Membership in thenetworks has grown to almost 4,000 employees worldwide.© 2003 ChevronTexaco Corporation. All Rights Reserved.26
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