Date Chevron Chevron
Chevron is one of the leaders in the American oil industry. In particular, it produces approximately three billion of oil daily. In addition, it operates in 120 countries. One of the reasons of the companys leadership is purchasing Texaco in 2001 (Opensecrets.org). Such position of Chevron in the market has led to a significant influence of the company on political decisions in the country. Therefore, the main aim of this paper is to investigate this impact of Chevron.
First, according to the companys official website (May 2013), all Chevrons activities correspond to ethical standards. Second, the organization developed strict guidelines and procedures that help protect its interests. Finally, Chevron states that all their activities are performed openly and demonstrate accountability.
In particular, Chevron applies such procedures as lobbying, corporate corporations, and PAC contributions. As for lobbying activities, the organization communicates directly with public officials. Besides, it offers support to all people that participate in such communication. However, before starting lobbying activities, an employee must receive guidance from his local Policy, Government and Public Affairs (PGPA) manager. As for the degree of Chevrons influence, it reaches the highest levels. In particular, Chevron performs its lobbing activities within the administration of the U.S. President Barack Obama and the U.S. Congress. The spheres of its interests are policy matters concerning energy issues that exist in the United States and the other countries. For instance, Chevron gives the recommendation on such questions as climate change, education, research and development, energy and economy. In other words, Chevron is aimed to help to form an efficient energy policy of the United States and their main recommendations are promoting energy efficiency and expanding the countrys energy portfolio (Chevron Inc., 2013). However, Chevron not only gives recommendations, but also finances the changes it needs. For instance, its total lobbing expenditures reached $7,530,000 in 2013. On the other hand, Chevron reduced expenses in comparison with the previous years. For example, they spent $20,815,000 in 2009 (Opensecrets.org.).
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Apart from that, according to Chevrons official website (2013), the company has such procedure as corporate contributions. They are controlled strictly and reported as demanded by a law. Global contributions were nearly $ 12 million in 2012. In addition, Chevron applies such procedure as PAC contributions, which presupposes the voluntary contributions made by eligible employees, stockholders and stockholders retirees. All these people belong to the Chevron Employees Political Action Committee (CEPAC). The money gathered by this committee is spent on the fund that supports certain candidates during elections to the Congress. The choice of specific federal candidates depends on the members of the PAC Board. Thus, it decided to contribute through CEPAC $623800 in 2012 for candidates from both parties for the U.S. federal office and certain local and state candidates in some states. However, CEPAC did not contribute anything to presidential candidates and national parties, because it is prohibited by the policy.
Such significant contributions of Chevron allowed the company to take the 35th rank out of 4,372 for lobbing expenditures in 2012. As for the top recipients of these contributions, they were the Congressional Leadership Fund ($2,500,000), the Republican Governors Association ($150,000), Mitt Romney ($117,487), Barack Obama ($96,040), the National Republican Senatorial Committee ($86,725), the Republican National Committee ($79, 512), the National Republican Congressional Committee ($58,001), the Democratic Governors Association ($50,000), Orrin G Hatch ($39,500) and John A Barrasso ($26,250). Another important aspect of Chevrons lobbing activities is high revolving door. In particular, 35 out of 48 the companys lobbyists in 2012 have worked previously for the Government. The top lobbied issues in 2012 corresponded to Chevrons philosophy and included energy and nuclear power, taxes, trade, environment and superfund, and foreign relations. If to say specifically about bills that cover these areas, the most frequently lobbied bill in the 112 congress was H.R.910 (Energy Tax Prevention Act of 2011) (Opensecrets.org).
Furthermore, the important aspect of Chevrons participation is its changes over the years. Thus, according to the statistics, the company gives much more support to the Democratic Party than to the Republican Party, and this tendency has been applicable for the last ten years. However, there are also some exceptions. First, Chevron supported Barack Obama who belongs to the Democratic Party. Second, the companys expenditures on the Democratic Party greatly increased in 2009-2010 and were higher than the costs that were spend on the Republican Party. On the other hand, Chevron returned to its previous policy of dividing lobbing expenditures that were before 2009 (Opensecrets.org).
In conclusion, Chevron as one of the leaders in the U.S. oil industry is active in lobbying its interests. The companys reports demonstrate that it supports the current U.S. President and the Republican Party. However, it also spends money on the Democratic Party. Besides, the recent reports show the reducing of expenditures in the last years. It can be explained that there were not elections in the country of this period. Nevertheless, the country had the forth position in its industry in 2011 in spending on lobbying activities (Opensecrets.org). Therefore, all this data demonstrates that Chevron has a significant influence on the U.S. policy, especially in gas and oil industry.