At Oxy, we are dedicated to maintaining high ethical standards and conducting our business in a manner that safeguards our employees, benefits neighboring communities and strengthens regional economies.
We continually strive to provide safe, healthy and secure workplaces; protect the environment; uphold and promote human rights; and respect cultural norms and values, everywhere we operate. These commitments are the cornerstones of Oxy’s Social Responsibility Program. We believe that social responsibility is integral to the company’s continued profitable performance and to sustaining its global reputation as a respected producer of oil and gas and chemicals.
Social responsibility practices are systematically implemented in Oxy’s daily operations through our longstanding Health, Environment and Safety (HES) Management System. This integration ensures that the tenets of our HES and Social Responsibility programs jointly contribute to business decision-making and facilitate continuous improvement at the facilities we operate and throughout our supply chain.
As a responsible corporate citizen, we engage proactively with our stakeholders, including neighbors, community organizations, governments, partners, suppliers and others affected by our operations and performance. Before starting a project in a new business location, we first assess what Oxy’s presence will mean for the neighboring community and surrounding region, and we work to maintain our engagement throughout Oxy’s involvement. Our goal is to build positive, enduring relationships with mutually beneficial outcomes. We strive to be the employer, neighbor and partner of choice, everywhere we operate.
Safety at Oxy is a deeply held commitment – a collective responsibility that we take very seriously. The continual emphasis we place on safety is reflected in the company’s performance in the Injury and Illness Incidence Rate (IIR), a U.S. Department of Labor metric that indicates recordable injuries and illnesses per 100 full-time workers per year. Our 2011 employee IIR of 0.37 was the second-best in Oxy’s history and far better than the 2010 all-U.S. industry average IIR of 3.5. Our 2011 contractor IIR of 0.69 also was our second-best ever, but tragically, during the year three contractor fatalities occurred at our operations among our more than 30,000 contractors. We will continue to focus proactively with our contractors on preventing incidents and reducing risks of injuries in our operations around the world.
We are also keenly aware that we hold a great responsibility to safeguard the environment. Our strong commitment to environmental stewardship takes many forms, including cost-effectively controlling emissions at our plants and facilities; reusing and recycling water, carbon dioxide and other materials in our operations; enhancing energy efficiency and mechanical integrity of our equipment; and supporting biodiversity and habitat conservation programs on our properties. These efforts have garnered external recognition for Oxy. More importantly, they support the long-term development and productivity of our operations and protect the environment in the communities where we operate.
We take pride in contributing to the energy supply, economic growth and self-sufficiency in the regions and communities where we conduct our business. We stimulate local economies through our purchasing activities, payment of taxes, construction of new facilities and, significantly, through job creation and training. In 2011, we expanded our global workforce by more than 20 percent—including the addition of 8,800 workers in the United States—to more than 40,000 employees and contractors.
Overseas, we help to build the capacity of national workforces through the transfer of skills and technology. Oxy’s hiring and training practices in the Middle East support government programs such as “Omanization” and “Qatarization” that encourage capacity-building and job creation for nationals in their respective countries. The diverse perspectives of our employees, and their experience in a wide range of domestic and international operations, strengthen our ability to innovate and to compete.
Oxy continues to be recognized in well-regarded rankings of national and global companies for our financial and social responsibility performance. For example, Oxy ranked No. 1 in the Mining, Crude-Oil Production category in Fortune magazine’s 2011 survey of the World’s Most Admired Companies. Also in 2011, we were pleased to be included on Barron’s list of the World’s Most Respected Companies and Corporate Responsibility Magazine’s 100 Best Corporate Citizens list.
Such recognition is a tribute to Oxy’s dedicated global workforce and management team. We continue to focus on attracting and retaining dedicated plant, field and support employees who will strive to keep Oxy at the forefront of our industry – as a successful, profitable enterprise and an exemplary corporate citizen.
Our 2011 Social Responsibility Report illustrates Oxy’s commitments to safety, integrity and respect for people and the environment. Social responsibility is good for business, and at Oxy we make it everyone’s business.
Stephen I. Chazen
President and Chief Executive Officer