Analysis of Corporate Social Responsibility: Chevron Corporation

This report provides a detailed analysis of the Chevron Corporation's corporate social responsibility (CSR). It begins with a brief history of the company, tracing its origins and evolution into a major multinational energy corporation. The report then offers an overview of Chevron's operations, including its products, services, and global presence. A significant portion of the report is dedicated to exploring Chevron's CSR initiatives, focusing on its approach to environmental, social, and governance (ESG) concerns. The report also examines the company's ethical considerations, highlighting both its strengths and weaknesses in this area. Furthermore, the report addresses legal issues and public criticisms faced by Chevron, such as environmental incidents and legal lawsuits. The conclusion summarizes the key findings, emphasizing Chevron's commitment to innovation, its efforts to balance business efficiency with environmental and social considerations, and the challenges it has encountered. The report uses various sources and provides a comprehensive understanding of Chevron's CSR practices and their implications.

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Executive Summary
This report discusses the business ethics and corporate social responsibilities of a well-known
multinational energy corporation named Chevron. The company is mainly based in America
and is involved in the production of oil, natural gas, geothermal energy industries. The report
also brings out the weaknesses and legal issues related to the company. The report concludes
by focusing on the social responsibilities and corporate ethics of the company.

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Table of Contents
Introduction................................................................................................................................3
Discussion..................................................................................................................................3
A Brief History of the Company............................................................................................3
An Overview of the Company...............................................................................................4
Products and Services of the Company..................................................................................5
Corporate Social Responsibilities..........................................................................................6
Conclusion..................................................................................................................................8
References..................................................................................................................................9

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Introduction
The following report is a study of the business principles of a multinational energy
corporation generating resources for progress. The Chevron Corporation is an American
company, which mainly deals in the production of oil and natural gas. The company is one of
the successors of the Standard Oil and its earliest predecessor was Pacific Coast Oil
Company. At present, the company has outlets in more than 180 countries and is one of the
leaders among the leading oil companies in the world (Baghebo & Atima, 2013).
The report also includes the products and services offered by the corporation. Among
its products and services the company chiefly supplies energy resources to its customer. The
company mostly aims at procuring the global oil and natural gas market in an innovative and
eco-friendly technique.
The report wraps up by stating the business ethics of the corporation. This consists of
the legal lawsuits against the Chevron Corporation and its responses.
Discussion
A Brief History of the Company
The Chevron Corporation was founded on 10th Sept 1879 in California of United
States under the name of Pacific Coast Oil Company. In 1906, a treaty was made between
Pacific Coast Oil Co. and lowa Standard that gave birth to Standard Oil Corporation,
California (Manning, 2013). Now the “new” company emerged as a business corporation that
particularly engaged in selling of gasoline and lubricants, which were promoted under the
Calumet, Petrolite, Ruddy Harvester, Diamond, Zone labels and Zerolene. In May 1911, a
Supreme Court decision known as Sherman Anti-trust law separated the two business

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corporations and the company appeared as the Chevron Oil Corporation. The company got its
name “Chevron” from its few retail goods in 1930s. The company was also named
Calso from 1946 to 1955 in territories exterior to its local West Coast.
An Overview of the Company
The company currently ranked third in the top 500 joint-stock company in US and
sixteenth in the top 500 worldwide corporations. Apart from its production in gasoline and
natural gas, the company also takes part in hydrocarbon exploration and production, refining
and power generation. In 15th October 2000, Chevron declared purchase of Texaco in an
agreement worth at $45 billion, becoming the second-largest oil corporation in the United
States and the fourth-largest openly traded oil corporation in the world with a mutual market
value of about $95 billion. This combined business was called Chevron Texaco. The
company is also one of the first companies who introduced two fuel brands to be Top
Tier certified.
The company’s board of directors- John S. Watson, Michael K. Writh, Linnet F. Deily
and Ronald D. Sugar are exceptionally committed to the vision and values of the company.
The company according to the reports of 2016 employs 61,500 employees with annual
revenue of 114.5 billion USD. The market capitalization of the company is esteemed at over
20 billion USD. Chevron’s company centers of operations are situated in a campus of 92-acre
in California’s San Ramon. The company furthermore functions from agency Texas’s Huston
towers, where it chartered the 1500 Louisiana Street and 1400 Smith Street from previous
energy monster of Texas, Enron. The corporation is also developing a fresh workplace in
business district Houston beside its vacant possessions at 1600 Louisiana Street (Lawson &
Kam, 2013).

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Products and Services of the Company
The company operates both upstream and downstream production. The company’s
upstream productions revolve around the globe and are generally in USA, Nigeria, Australia
Angola, the Gulf of Mexico and Kazakhstan. The organization controls oil and natural gas
wells of roughly 11,000 in hundreds of fields absorbing 4,000,000 acres (16,000 km2) across
the Basin of Permian, placed in Western Texas and southeastern part of New Mexico. The
company’s project in Australia “Gorgon” is among one of the few largest natural gas projects
in the world, and “Wheatstone” will be the country’s foremost third-party liquefied natural
gas hub. During the onshore and near-offshore areas of the Niger Delta, Chevron functions
under a mutual scheme with the National Petroleum Corporation of Nigeria, investing a 40%
concentration in 13 regions in the district. Besides, Chevron activates the Gas Plant at
Escravos and the gas-to-liquids plant of Escravos. The corporation has benefits in four
regions in Angola, including two offshore districts in Cabinda territory, the Tombua–Landana
development and the Mafumeira Norte mission. Chevron is also a chief collaborator
in Angola LNG plant. The corporation has also started its project in
Kazakhstan, Tengiz and Karachaganak. According to 2013 report, the oil and gas field of
Rosebank in western Shetland was assessed by Chevron and its associates. Chevron drilled its
invention there in 2004. The company is expecting its production is expected by 2017 if a
treaty is signed to bore oil from the fields. The company is facing geology and weather
challenges, which is delaying its production.
The corporation’s downstream businesses are to fabricate and sell goods such as fuels,
additives, lubricants and petrochemicals. Chevron’s major noteworthy locations of businesses
are the western North American coast, Southeastern Asia, the US Gulf coast, Australia,
Southern Korea and Southern Africa. According to the reports of 2010, the corporation sold a
standard amount of 3.1 million barrels each day (490×103 m3/d) of sophisticated goods like

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petrol, gas, jet fuel and diesel. Chevron manages more or less 19,550 vend locations in
84 countries. The corporation is also interested in 13 power-generating possessions in the
United States and Asia and takes in gas stations in Western Canada. The corporation
possesses the brand privileges to Texaco and Caltex fuel and oil goods. The company’s
chemicals industry shares an ownership of 50% in the Chevron Phillips Chemical Company,
that produces petrochemicals, and the Chevron Oronite Company that builds, creates and
trades petroleum and lubricant additives. Apart from this, Chevron Corporation operates in
renewable geothermal energy production. Chevron activates Indonesia’s geothermal wells
in Indonesia generating electricity to Jakarta and the surrounding area. In the Philippines, the
organization runs geothermal wells at Tiwi field in the province of Albay, the Makiling-
Banahaw field in Laguna and Quezon counties. The company manages Gas-fired
cogeneration services to generate electricity and steam to recover the wasted heat to sustain
superior oil recovery functions (Torchia et al., 2012). The corporation’s renewable
maneuvers contain wind, geothermal and solar resources. The company is also developing
their business of geothermal and solar energies joined projects in Arizona, California and
Texas.
Corporate Social Responsibilities
The company’s corporate responsibility focuses on ecological, social and governance
(ESG) concerns that subject to the corporation’s business and stakeholders – shareholders,
consumers, host governments, local publics and staff. The report from Nigeria conveys that
the company is admired for their people, partnership and performance with superior
potentialities and commitment (Strauss, 2012). The company in Latin America contributed to
the social progress by developing energy resources (Schneider et al., 2012). They are
operating responsibility by employing skilled men and women with executive excellence

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(Beittel, 2013). Thus, the company chiefly aims at achieving its core value which are-
diversity and inclusion, high performance, integrity and honesty and protection of people and
the environment.
Apart from this, there are also some legal issues and public criticisms against the
company that affected the company’s reputation. One such environmental issue that can be
mentioned is the spilling of oil off the coast of Rio de Janerio. In the month of November 8,
2011, the organization was fired by the authorities of Brazil for its responsibility in the
spilling of crude oil off the Brazil’s southeastern coast (Abowei & Ogamba, 2013). The
supervisors of Brazil reported that 416,400 liters of oil leaked within the duration of two
weeks from marine rock close to the well in the Frade oil plan, which is 370 km away from
the Brazilian coast. The judicial board in Brazil at first claimed $10.6bn in the following
charge (Bencardino, Greco, & Ladeira, 2012) while the National Petroleum Agency (ANP)
expelled the corporation’s actions in Brazil until it acknowledged the source of the oil leak
off the coast of Rio de Janeiro. An instance of public damage caused by Chevron was the
explosion of KS endeavor. The KS Endeavor jackup rig blowed up on 16th January in the year
2012 while drilling a discovery well for the company in the Nigerian Funiwa field (Porter,
2013). The blast caused the demise of two labors among the 154 labors who were working in
it and a blaze that burnt for 46 days. According to a report of Reuter’s news, labors on the KS
Endeavor were overlooked by Chevron when the labors pleaded mass departure owing to
issues of rising smoke that swelled up from the drilled borehole. A higher labor confessed
that an enormous build-up pressure prompted the blowout. However, the authority responded
that they had not received any requests regarding the desertion of the rig stating that
employees working there had the right to call a close down to the work if they assumed risky
circumstances (Wasserman, 2012). A legal lawsuit against the corporation was appealed to
the Argentine government in 2013 (Walker, 2014). In 2013, a contract for the world’s

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second-largest shale gas deposit, Vaca Muerta was signed between YPF and Chevron. In the
month of August 2013, the Neuquén province Congress approved the contract, while a huge
group of about 5000-10,000 labors, scholars and native inhabitants objected to it outside the
court. In order to manage the mob the police fired rubber bullets that hit a few activists.
Governor Jorge Sapag sheltered the police by stating that the protest rally was generally
nonviolent, but an approx of 100 people alienated from the rest harassed the police force,
which was handled with sincerity and proficiency.
Conclusion
In the light of the above discussion, it can be concluded that, Chevron Company is a
globalized energy production that believes in production with innovation. The company not
only works efficiently but also looks after the concerns related to environmental and social
factors. Nevertheless, the company had faced many external and internal challenges to reach
at this height. The company has also various adverse affects on the environment and society
and as a result of this, it had faced several lawsuits that at certain point of times reduced the
company’s production.

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References
Abowei, J. F. N., & Ogamba, E. N. (2013). Effects of Water Pollution in Koluama Area,
Niger Delta Area, Nigeria Fish Species Composition, Histology, Shrimp Fishery and
Fishing Gear Type. Research Journal of Applied Sciences, Engineering and
Technology, 6(3), 373-381.
Baghebo, M., & Atima, T. O. (2013). The impact of petroleum on economic growth in
Nigeria. Global Business and Economics Research Journal, 2(5), 102-115.
Beittel, J. S. (2013). Ecuador: Political and Economic Conditions and US Relations. Current
Politics and Economics of South and Central America, 6(2), 243.
Bencardino, M., Greco, I., & Ladeira, P. R. (2012, June). The comparative analysis of urban
development in two geographic regions: the State of Rio de Janeiro and the Campania
Region. In International Conference on Computational Science and Its
Applications (pp. 548-564). Springer, Berlin, Heidelberg.
Lawson, G., & Kam, S. (2013). Making Law Out of Nothing at All: The Origins of the
Chevron Doctrine. Admin. L. Rev., 65, 1.
Manning, J. F. (2013). Chevron and Legislative History. Geo. Wash. L. Rev., 82, 1517.
Porter, W. M. (2013). The environment of the oil company: A semiotic analysis of Chevron’s
‘people do’commercials. Rhetorical and critical approaches to public relations, 279-
300.
Schneider, J., Ghettas, S., Merdaci, N., Brown, M., Martyniuk, J., Alshehri, W., & Trojan, A.
(2015). Towards sustainability in the oil and gas sector: benchmarking of

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environmental, health, and safety efforts. Journal of Environmental
Sustainability, 3(3), 6.
Strauss, P. L. (2012). DEFERENCE" IS TOO CONFUSING—LET'S CALL THEM"
CHEVRON SPACE" AND" SKIDMORE WEIGHT. Columbia Law Review, 1143-
1173.
Torchia, D., Arora, A., Vo, L., & Global, C. L. (2012). Clean, green, hydrocracking
machine. Hydrocarbon Engineering.
Walker, C. J. (2014). Chevron Inside the Regulatory State: An Empirical
Assessment. Fordham L. Rev., 83, 703.
Wasserman, M. F. (2012). The Changing Guard of Patent Law: Chevron Deference for the
PTO.