Communication on Progress in Chevron Corporation

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Communication on Progress in Chevron Corporation

This Communication on Progress (COP) has been prepared as part of Chevron Corporation compliance of the UN Global Compact. Chevron Corporation has been in the forefront of ensuring that it complies with the principles outlined in the UN Global Compact. We have come up with policies that have enabled the company achieve its goals in complying with the principles. With regards to principle 2, the company has a well developed human rights policy. For principle 9, the corporation has invested in identifying technologies that will provide alternative sources of energy. However, we at the corporation believe that there is always room for improvement and this submission seeks to recommend further actions that could be taken to ensure the entity fully complies with laid out principles.

Global Commitment

Chevron Corporation is an active member of the United Nations Global Compact, and it is part of its aims to comply with the set out principles of the global compact. This submission report will outline various recommendations that will help the company’s local network in complying with principles two and nine. The principles are as outlined below;

Principle 2: “Business should make sure that they are not complicit in human rights abuses.” (The Ten Principles/ Principle 2 2012).The aim of this principle is to encourage member corporations to eradicate complicity in their organizations thereby safeguarding human rights. Chevron has been at the forefront in safeguarding human rights which it considers it is part of its corporate social responsibility.

Principle 9: “Businesses should encourage the development and diffusion of environmentally friendly technologies.” (The Ten Principles/ Principle 9 2012). This principle seeks to encourage corporations to come up with technologies that seek to protect the environment, promote the efficient use of natural resources, as well as reduce the environmental footprint of the environment. For Chevron Corporation, environment conversation is part of the company’s core values. The business seeks to ensure that it reduces its economic footprint and that environmental impacts are considered in its decision-making.

Business Practice with regards to Human Rights

At Chevron Corporation respect for human rights is considered part of the organization’s corporate social responsibility and as part of its commitment to ensuring that human rights are safeguarded, we adopted a Human Rights Policy that would help the company enhance its capabilities in managing human rights issues among its employees, security providers, suppliers, and communities. We believe that further actions can be taken in ensuring that the company complies with. We propose the following recommendation in enhancing compliance with Principle 2 (Weissbrodt, and Muria 2003).

Recommendation 1

A monitoring system should be introduced that tracks how the human rights policy is being implemented. Additionally a program should be implemented that continually raises awareness of employees on human rights issues both current and emerging, that are within the company’s control (Smith, 2013).

Benefits and Implications

The monitoring of the implementation process will enable Chevron to determine if the human rights policy was appropriate and the challenges being faced in the implementation of the policy. Through monitoring, management will be able to determine if the objectives and goals that the policy sought to achieve have been achieved.

The creation of awareness of human rights issues within an organization ensures that employees are aware of their rights as well as their obligations towards others. Creating awareness ensures that individuals know how to deal with different situations especially when one’s rights have been infringed. The employees will therefore carry out their duties with due diligence so that they may safeguard the human rights of colleagues and the community at large (Massarani, et al., 2007).


The challenge that the business is likely to face in implementing this recommendation is coming up with a tracking system that will facilitate the effective monitoring of the implementation process. Another challenge will be how to deal with the outcome of the monitoring process carried out. If the results are negative, the conclusion to be made is that the policy is not effective. The company will have to come up with a new policy that requires resources and time (Williams, 2008).

Another challenge that the entity may face is the carrying out of continuous awareness on human rights issues. This means that resources have to be allocated to facilitate this program. Secondly the employees may be reluctant to participate in the program as they may consider it monotonous.

Business Practice with Regards to Technology

Chevron Corporation is a company that operates in the oil and gas industry and is, therefore, likely to have an impact on the environment in the course of its business. The company has developed an environmental sustainability policy that ensures the reduction of the entity’s environmental footprint. The company has also strived to find alternative as well as renewable sources of energy that will help in the efficient utilization of energy in carrying out its operations. Chevron has focused its operations on technologies that enhance their strengths (Lawrence, and Paul, 2013).

These technologies include geothermal energy, wind power, solar energy, and biofuels. Principle 9 encourages corporations to improve the technology by changing their processes, recycling materials, changing the product, and changing input material. It is in management’s belief that Chevron can further comply with principle 9 through the recommendation made below.


The entity could include stakeholders in its efforts of sustaining the environment by making information on its environmental performance available to them. The report could also include the benefits of adopting the technology. Additionally the company could also get into a partnership with other industry players and ensure that the best available technology is accessible to other businesses.

Benefits and Implications

The inclusion of stakeholders in environmental sustainability programs facilitates their understanding on how the new technology works. It also enhances the image of the entity as individuals appreciate organizations that are environmentally sensitive (Adeyeye,2011).

The inclusion of other industry players in finding the best available technology is beneficial for the company as the costs associated with developing new technology is distributed.


Having the best technology in carrying out operations gives a company competitive advantage over other companies. Bringing companies in the same industry to agree on a particular technology may prove to be difficult. Secondly some companies may not be willing to take up the risk of implementing new technology. They prefer using technology that has already been tested.

What kind of information is suitable for disclosure may difficult for the company to identify. Chevron must decide the amount of information to disclose to its stakeholders. Additionally, the company may be biased in that it will only disclose information that will enhance the image of the company. Objectivity in making disclosures is important so that stakeholders are not misled with the information provided (Brockett, Anne, and Zabihollah, 2013).


Chevron has ensured that it has complied with all the principles as laid out by the United Nations Global Compact. The principles may be constant but the issues they address are changing, and it is up to the signatories to the compact to ensure that they are in compliance with the set out requirements. The above recommendations will help Chevron to enhance its compliance as well as achieve its CSR goals.



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