Chevron and Community Engagement: Partnerships in Action
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Chevron and
Community Engagement:
Partnerships in Action
Asian Development Bank Institute Conference
Tokyo, Japan | 17-19 October 2007
Tam Robert Nguyen
Chevron Corporate Public Policy
tam.nguyen@chevron.com
The views expressed in this paper are the views of the authors and do not necessarily reflect the views of policies of the Asian Development Bank
(ADB), or its Board of Directors, or the governments they represent. ADBI does not guarantee the accuracy of the data included in this paper and
accepts no responsibility for any consequences of their use. Terminology used may not necessarily be consistent with ADB official terms.
© Chevron 2005 DOC ID
Presentation Outline
Chevron in Asia
Corporate Responsibility at Chevron
Corporate Responsibility and Community Engagement
Chevron and Partnerships
Lessons Learned
Conclusion
2
Chevron is the leading international energy company
in Asia…
Present in more than 30 Asia-pacific
countries
z Including key producer countries:
Indonesia, Thailand, Australia,
China, Cambodia, Vietnam,
Kazakhstan, Myanmar, Philippines,
Bangladesh, and India
A leader in regional energy security
z Supporting seven refineries that
supply reliable energy for Asia’s
long-term economic growth and
development
A regional leader in renewable
energy production
z Operating world’s largest
geothermal projects (Indonesia and
the Philippines)
z Supplying clean energy to SE Asia
3Asia is a diverse operating environment…
The country conditions in … and this context has
which we operate vary… strategic implications for our
current and future business
Human capital
growth in Asia
Economic development
Growing expectations to
Growing awareness of address socio-economic issues
environmental issues among host communities
Rapid urbanization and related Managing geo-political and
environmental issues other business risks
Growth of the “middle class” Engaging diverse stakeholders
Unemployment Being a “partner of choice”
Governance Attracting and retaining a local
Health workforce
Education
4Corporate responsibility at Chevron means we…
Apply The Chevron Way
consistently everywhere we
operate
Integrate socio-economic
and environmental
considerations into our
business practices
Engage with and balance
the needs of our key
stakeholders
Maximize the positive
impacts of our business on
current and future
generations
5Our approach to corporate responsibility is based on…
Integrating it into our work (part of how we do business)
z Enterprise-wide management processes and training
z Environment, Social and Health Impact Assessment training
z Other types of training
f HIV-AIDS, Human Rights, Business Conduct and Ethics Code, and Political
Compliance
z Health and Safety policies and programs
f Programs and/or plans on HIV-AIDS, Malaria, Avian Flu pandemic
planning, occupational safety and health
Community engagement and stakeholder engagement are central to
corporate responsibility at Chevron
In conducting these efforts, capacity building and strategic partnerships are
key to our approach
z Local programs and initiatives that have impact, build capacity, are sustainable
and inclusive of all stakeholders
f Fully utilize local knowledge and international “best practice” approaches
z Partnerships that are strategic, “fit for purpose,” leverage resources, supported
by host governments, and informed by industry drivers and societal needs
z Programs that address local needs and have positive impacts on our operations
6Our approach to community engagement is grounded
in operational impacts…
Philanthropy Social Strategic Social Impact
Investment Social Management
Investments and
Measurement
and Evaluation
Indirect relationship to Direct relationship to
to operational impacts operational impacts
7Examples of our community engagement work…
Local economic development
z Supporting local economic
development through
livelihood creation, vocational
training, technology transfer,
local content and supply chain
Stakeholder engagement
z Governments, business
partners, communities
z Industry associations, media,
NGOs, multilateral institutions
Policy dialogue through multi-
stakeholder, voluntary
initiatives
z Extractive Industries
Transparency Initiative (EITI)
z Voluntary Principles on
Security and Human Rights
8Partnerships are central to our ability to address local
needs…
To effectively address local issues where we operate, we are moving
away from a philanthropic model to “strategic social investments”
z Strategic refers to our understanding of the local context and the long-
term view we take toward our investments
z Social refers to our support for socio-economic development in the
communities where we operate
z Investment refers to the fact that we apply the same due diligence to our
partnerships and programs that we do to our core business investments
Working with the right institutions, organizations, and individuals is
critical to success; therefore, selecting our partners is also a strategic
choice
Our partners
z Understand the local socio-cultural, economic and environmental context
z Be committed to build local capacity (individual and institutional levels)
z Leverage our contributions and capabilities for higher impact
z Integrate and promote good governance and accountability in their own
programs
z View and engage with Chevron as a strategic partner - not just to
supplement budgets, scale up programs, or provide donations
9Partnerships in action - Indonesia
Post-disaster recovery and development
Chevron Aceh Recovery Initiative
z Partners: Government of Aceh, USAID,
American and Indonesia Red Cross, Swiss
Contact, Mercy Corps, other local
organizations
z Purpose: To strengthen local capacity to
undertake the long-term development of
Aceh, and support the Indonesian economy
z Provided use of Chevron’s Riau Polytechnic
Institute for vocational skills training
f Providing training to 350 students
from Aceh (and 90% are employed)
z Micro-enterprise development and business
start-up support
f Goal is to generate 800 new jobs,
provide 500 new business loans, and
offer services to 300 micro-businesses
z Local service provision training (healthcare
and local administration)
f Open 30 new pre-schools and expand
its mobile clinic to reach more than
1,500 victims
10Partnerships in action - Philippines
Youth development
Caltex Street-to-School and Caltex In-Plant
Training (CIPT) Programs
z Partners: Department of Social Welfare and
Development, Education Research and
Development Assistance (ERDA) Tech Foundation,
Inc., and more than 20 local NGOs in Manila and
other cities in the Philippines
z Purpose: To address the rise of homeless Filipino
youths living on the streets
z Provide financial assistance for shelter,
scholarships, and applied skills training
f More than 2,000 at-risk youths have
benefited from assistance
f CIPT students receive practical training at
Chevron/Caltex stations, including auto
repair, customer relations, and accounting
f Some received employment at automotive
companies in the Philippines, (i.e., Toyota)
f The program continues to expand in other
cities, including Mindanao in the south
z In 2001, President Arroyo cited Chevron/Caltex
support for street children as a model for other
companies to emulate in the Philippines
11Partnerships in action - Kazakhstan
Small business development
Tengizchevroil Small Business Development
Group
z Partners: BankTuranAlem and
KazkommertzBank
z Purpose: To support the government’s
development agenda to diversify the local
economic base
z Provide business-related services and loans
(range is US$5,000-US$750,000) to qualified
small businesses, including business
providing social and environmental services
f Between 1997-2005, US$5.7M has
been disbursed to 157 businesses
f 2,000 new jobs have been created
f Chevron’s spend on local businesses
increased year to year
58% of 2006 total spend was
directed to small businesses
12Partnerships in action - Thailand
HIV/AIDS
Prevention, Care and Support
z Partners: Thai Business Coalition on AIDS
z Purpose: To provide prevention and
treatment services to employees and
dependants and increase the availability of
these services in the communities where we
operate
z Voluntary counseling and testing and home
visits offer free or low cost services, including
blood testing, risk behavior counseling, and
care and support
z Engagement in the World AIDS Day
Campaign promotes awareness through
information booths, disseminates printed
materials and condemns, and provides face-
to-face counseling
z Financial support to the AIDS Temple
supports the Temple’s ongoing work to care
for and support HIV-infected people
13By focusing on local issues in community
engagement, we have learned that...
There is a strong business case for engaging with local communities
z Capacity building and development programs, which contribute to local
economic growth and address local needs
f Support a positive operating environment for our employees and
assets where we operate (countries allow us to invest, but
communities enable us to conduct business)
z By investing in local capacity to address local issues
f Chevron is recognized as a “partner of choice” by host governments,
employees, communities, and local business partners
z We have a positive and lasting impact on current and future generations in
the communities where we operate
Through partnerships, we can
z More effectively incorporate local socio-economic issues with our business
objectives
z Ensure the sustainability of our initiatives, beyond our direct inputs, by
f Leveraging our partner’s local knowledge, networks, and technical
expertise
f Leveraging our partner’s financial and in-kind resources to expand
and enhance the benefits of our initiatives
14To learn more about Chevron and Corporate
Responsibility, and how we engage communities and
other stakeholders, please hyperlink to…
www.chevron.com/globalissues
You can also view or download our 2006 Corporate
Responsibility Report on the website. Thank you.
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