Business with Development: Chevron’s Corporate Social Responsibility

Business with Development: Chevron’s Corporate Social Responsibility



Corporate Social Responsibility or CSR is the most talking terminology in recent times among corporate world, commercial community and capitalistic industry, and its practices are being integrated into national and international business practices and hence it is becoming one of the determining factors for market access. According to United Nations Industrial Development Organization, CSR is generally understood as being economic, environmental and social imperatives (Triple-Bottom-Line-Approach), while at the same time address the expectation of shareholders and stakeholders. The world business council for sustainable development in its publication “MAKING GOOD BUSINESS SENSE” by Lord Holme and Richard Watts defined CSR “is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the work force and their families as well as of the local community and society at large.”

Traditionally in the USA, CSR has been regarded as humanitarian model. Companies make profits, fulfilling their duty to pay taxes. Then they donate a certain share of the profits to charitable causes. The European model is much more structured and sophisticated, focusing on function the core business in a socially responsible way. Economists and CSR experts have emphasized on practicing the European Model for sustaining development and better CSR programme.

The concept of CSR derived from ensuring improving corporate governance , labor rights , work place safety, fair treatment of workers, community development and environment management , but also for industrialization and assurance for the global market access. Some corporate houses and multinational companies are pioneering the practice of CSR by performing various programmes for community development, environment safety and ensuring good governance.

Chevron Bangladesh a large foreign IOC working in Bangladesh is engaged in exploration and extraction of natural gas from different blocks of Bangladesh and playing a vital role to stringent the energy sufficiency of the country. Business with development is a primary determination of Chevron Bangladesh, ensuring energy products to sustainable development and community development are core strategy of its business policy. Basically it’s basis is to built on principles, which distinguishing from other corporate houses, CSR of Chevron Bangladesh has been intermingled in strategic business policy that weighing up good governance, labor rights , environment safety , participating local community in development activities and consumer rights. CSR at Chevron Bangladesh is the application of the Chevron Bangladesh way across environmental, social and governance. It implements CSR priorities through existing management system, process and policies as part of commitment to operate responsibly and ethically.



Business within exploration and production

Chevron Bangladesh has wide-ranging oil and gas exploration and production business network around the world. Its worldwide net oil-equivalent averaged 2.7 million barrels per day in 2009 which is 7 percent higher than in 2008. The offshore regions of West Africa and the U.S gulf México, the gulf of Thailand and offshore northwest Australia were spotlights for exploration in 2009 .While Asia- pacific’s leading capital holder and producer among international oil companies. Chevron is putting in a portfolio of energy resources to congregate emergent energy demand in the region. Similarly its operation is applying in Africa and Latin America .In Europe; it has adaptable operations and exploration interests in the western region of the Shetland basin, the Norwegian Barents and Greenland.

Chevron Bangladesh has been performing a vital role in production and exploration of gas and mitigating energy crisis Partnership and cooperation with Petrobangla and GTCL.

Environment Safety and ecological balance

Chevron Bangladesh has been taking initiatives to protect environment & biodiversity, thus the company engaged with International Union for Conservation of Nature (IUCN) Bangladesh to form and lead a biodiversity Monitoring team to guide and supervise Chevron Bangladesh’s field activities. While Lawachara national park is situated very close to Chevron Bangladesh’s Moulavi Bazar Gas Field which is environmentally very sensitive, to protect its potential damage of conservation of trees and lives, it has given utmost priority in protecting the area, per the recommendations of the Environmental Impact Assessment and the requirement of the environmental clearance letter issued by the Department of Environment. The monitoring team recorded a total of 55 wildlife species comprising 3 amphibians, 4 reptiles, 42 birds, and 7 mammal species, specially recording 3,28,272 and 51 individuals respectively. However, at pre and post biodiversity monitoring, a total of 185 species were traced out comprising 10 species of amphibians, 17 reptiles, 148 birds and 12 species of mammalians. On the other hand, the post –project survey recorded a total of 153 species of wild fauna comprising 9 species of amphibians ,11 reptiles, 122 birds and 11 species of mammalians. Another significant achievement was that had been ensured living existences ,such as Hoolock Gibbon , Capped Langu , Pig-tailed macaque, rhesus Macauqe, Orange –bellied Himalayan squirrel, Hoary –bellied squirrel , Emerald Dove , Asian Barred Owlet ,etc.

Deforestation is another major problem for environmental insecurity that has been directly devastating ecological and geological balance. Chevron Bangladesh consequently, has been taking initiatives to tree plantation program. From 2005 Chevron Bangladesh started tree plantation program in Jalalabad plant. A total of nearly 120,000 saplings have peen planted surrounding areas of plant. In 2009, 3,000 saplings have been planted around the road leading from Chevron Bangladesh Sylhet office to Jalalabad gas plant. Approximately, 5000 saplings at Moulavibazar gas field and 4,000 saplings at Bibiyana field have been planted in 2009.

Steve Wilson, President of Chevron Bangladesh expressed pleasing speeches on this successful story “Chevron operations around the world peacefully co-exist with all varieties of ecosystem. If I took at the recent 3D seismic survey which we conducted in Moulavibazaar a portion of that was carried out in the Lawachara forest. By taking a prudent approach, involving third parties to ensure that the environment was protected we made sure that animals were not disturbed”.

Community Development and Social Advancement Programme

Community and socio-economic development are core policy of Chevron Bangladesh’s CSR program. Partnership and harmony with local community blending a new ideology in contemporary CSR practice, is at its core value and mission are mostly evaluated through social advancement program. In this context CSR practice of Chevron Bangladesh is typically basis on social improvement, community development, economic emancipation and women empowerment.

• Chevron provides sponsorship to The Asian University for Women Support Foundation of US$ 250,000. The continuation of the support the company has rendered since 2004-2005, to the tune of approximately $50,000 per year.

• Chevron Bangladesh continues to be a firm believer in the principle of community-driven development and instilling a sense of ownership and pride amongst beneficiaries – encouraging them to have a vested interest in their own journey towards self-sufficiency. Around 4800 families are engaged with Chevron supported skill enhancing programs in Bibiyana and Moulavi Bazar fields. Chevron Bangladesh and Hathay Bunano signed a partnership to establish a training centre called “Hathay Bunano Proshikhan Society” to help promote sustainable employment for underprivileged women of Kamalganj, Moulavi Bazar. The training centre will provide crochet and knitting training to 150 women who will each be capable of earning a supplemental income within three months. Chevron is bearing 65% of the total project cost.


• With partnership of Friend in Village Development Bangladesh (FIVDB), Chevron Bangladesh has been implementing Alternative Livelihood Program for the neighboring community in Bibiyana and Moulavibazar gas field, this program combines appropriate skill and asset transfer, and adult learning approaches. ALP programs started in 2006 surrounding villages of Bibiyana plant with self-help group or Village Development Organization formation approach. In addition of Bibiyana, Chevron Bangladesh with the cooperation of its NGO partner FIVDB operates a similar ALP project in 13 villages located in Moulavibazar gas plant area . Besides, , collaboration with Save the Children (USA), Chevron Bangladesh has supporting 13 non-formal primary education schools at Bibiyana.

• Chevron Bangladesh has been running the scholarship program for several years with a view to improving the overall educational scenario of schools near its three gas fields. The number of Chevron supported scholarships continues to increase significantly every year.In 2008, the number of scholarship recipients stood at 551, while in 2009 it was 587, each being selected on the basis of their financial need and academic performance. In addition to scholarship support, extra teaching support and coaching support to the high school, Chevron is also supporting 13 non-formal primary schools in Bibiyana. Chevron supported scholarship program helps create awareness among families and teachers to assist students in learning and thus motivating students to do better in their exams.
• Since 2005 health care servicing is being smoothly activated, presently running 3 Chevron Bangladesh Smiling Sun Clinic and approximately 32 Chevron supported satellite clinics and covering approximately 84,000 people per year, especially woman, children and elderly citizens. We provide primary health care support, including clinical support, pathological test support, counseling support and medicine.

Chevron has been carrying the maternity centre since 2004 in a range of capacities including building a structure in 2004 to set up the centre in Sylhet, donating $20,000 to produce blood bags and reagent for screening. Chevron Bangladesh has also been collaborating with the Red Crescent centre to organize blood donation drives for its employees since 2004. In 2009, the number of blood bags donated by its employees in Dhaka and all its field locations reached 493 and Chevron was recognized as the third-highest blood donor by the Red Crescent Society in 2009 among all corporate bodies. In 2010 a total of 249 bags of blood were collected from the drive.
There is a huge debate regarding practicing of CSR in Bangladesh among the experts & researchers, most of them opined that the company’s CSR is covering much more than just giving to charity. Nevertheless, CSR is approaching a strategic business core and tremendously becoming a development factors for the social advancement and national building. We can sight an example in the case of TATA in India who has believed in national building as an overarching objective of their aims in business. The mission to sensitize businesses in Bangladesh to the need for CSR, when conditions for doing business are fraught with enough difficulties already, is not proving an easy one. But with dedicated corporate houses like chevron Bangladesh determinedly marching on regardless, we too may one day see a titan in our corporate sector attain the stature and influence of true practice of CSR.