Corporate Citizenship

Our Value: We live by our principles of corporate social responsibility and make a difference through our philanthropic, social development and volunteer programs.

 

 

Corporate Social Responsibility Strategy

Marathon wants to be a positive influence in communities. The Company fosters constructive working relationships and builds alliances to address sustainable development issues and contribute to the long-term viability of local communities where it operates. New venture opportunities and existing assets are evaluated to understand associated risks and impacts to communities and determine if Marathon is managing legal, political, reputational and operational risks appropriately.

Marathon recognizes that its actions and operations affect its stakeholders – investors, employees, customers, suppliers, communities, business partners and host governments.

The commitment to CSR means being accountable to stakeholders on a basis of respect, cooperation, stewardship and sustainable development.

 

Stakeholder Engagement

Marathon is committed to ongoing engagement with its stakeholders to develop cooperative, aligned and mutually beneficial relationships. A proactive exchange of ideas and information between Marathon and its stakeholders on specific issues assists the Company's business planning, strategy and project execution. Achieving this level of engagement with a wide range of stakeholders at all levels of the global enterprise continues to be a challenge for Marathon.

In 2008, new venture entry teams and existing asset teams in several U.S. operating areas followed Marathon's stakeholder engagement process to identify issues, concerns and challenges in their communities and areas of operations. Through one-on-one meetings, community forums and other forms of engagement, Marathon worked with landowners, elected officials, non-governmental organizations, regulators and other stakeholders to address identified opportunities.

Issues raised by stakeholders are included in social risk assessments completed for all existing projects and operations worldwide. Assessments help Marathon identify potential social issues that may impact performance; the likelihood they will occur with current controls in place; and their relative significance. The analysis assists Marathon in prioritizing issues for action and implementing its broader CSR strategy. Required annual social risk assessment updates, conducted as part of the management system process, were performed in existing operations in EG and Indonesia in 2008 to ensure that Marathon is taking appropriate actions to manage or mitigate priority risks.

 

Security and Human Rights

Marathon conducts business within the broad social-political context of the countries and communities where it operates, while respecting the human, cultural and legal rights of individuals and communities.

To reinforce this commitment, Marathon is finalizing human rights guidelines to assist operations in managing community relationships. The Company also promotes the U.N. Universal Declaration of Human Rights by participating in the Voluntary Principles on Security and Human Rights.

Human rights risk assessments are performed routinely as part of due diligence for all proposed new country entries. Along with operational and other business information, Marathon considers these assessments when deciding to proceed with a new project, while negotiating project documents and determining project security and risk management strategies.

The Company also conducts background screenings of public and private security providers, as outlined in the Voluntary Principles. Company security personnel reinforce respect for human rights and the Voluntary Principles during interactions with host government enforcement officials and in-country security providers.

Face-to-face human rights training is mandatory for Marathon employees, managers, security personnel and key contractor supervisory personnel in relevant locations. An abbreviated version of this training was presented in local languages to security personnel in EG and Indonesia in 2008 and will be conducted in Gabon and Libya in 2009. Marathon also offers an introductory CBT module on the Voluntary Principles.

 

Community Relationships

Marathon is committed to the welfare of citizens in host communities and countries, and uses its CSR framework for operating as a responsible business, employer and neighbor. To build strong communities, Marathon may provide local employment opportunities, support capacity building and fund community development activities.

Recognizing the need for systematic processes to promote responsible interactions and programs, Marathon will introduce community development guidelines in 2009. The guidelines assist operating units in developing sustainable social programs as needed to mitigate identified risks. Together with processes such as social risk assessment and stakeholder engagement, these guidelines represent a suite of resources to help build community relationships.

 

Lifesaving Results from Bioko Island Malaria Control Program

Malaria is a major public health threat that imposes a harsh toll on Africa and creates an adverse investment climate for businesses operating in malaria-endemic areas.

Marathon leads the BIMCP, a private-public partnership that has dramatically reduced the incidence of malaria on EG's Bioko Island since 2003. By 2008, the project had reduced the presence of malaria-transmitting mosquitoes by 99 percent and the presence of malaria parasites in children under 5 years of age by 49 percent, relative to pre-BIMCP levels. It is estimated that the mortality rate of children under age 5 in Bioko declined from 152 per 1,000 before the start of the project to 55 per 1,000 in 2008. This increase in child survival may have saved up to 5,000 lives during the project's first phase. In 2008, Marathon and its partners agreed to extend the program for a second five-year phase. A major focus of phase 2 is to develop capacity within the EG National Malaria Control Program to sustain it beyond 2013.

The $28 million commitment from Marathon and the government of EG for this extension also was a foundational contribution to the U.N. Malaria Capital Campaign that seeks to raise $100 million to help provide everyone at risk in Africa with anti-malaria tools by the end of 2010.

Marathon took the lead in forming the Corporate Alliance on Malaria in Africa (CAMA) to be the focal point for the private sector to work with governments and civil society to reduce the impact of malaria. In 2008, CAMA partnered with the Global Business Coalition (GBC) to be its secretariat and developed a guide to help public and private sector entities implement an integrated malaria control program based on best practices, including lessons learned from Bioko Island.

External Capacity Building

In developing social programs, Marathon attempts to ensure local capabilities are in place to sustain programs into the future, beyond the Company's initial investment and involvement.

 

Preparing Community for Technical Careers

Marathon requires a well-educated and trained workforce to operate its complex Garyville refinery system. The Company is taking a comprehensive approach to developing a qualified local workforce in St. John the Baptist Parish by providing financial and volunteer support for schools and additional resources for science education; career awareness activities and scholarships for the local technical trade school; and contributions to Louisiana State University's Minority Engineering Program and engineering and chemistry departments.

In an ongoing effort to increase the number of qualified parish residents for its technology-driven jobs, in 2008, Marathon broadened its outreach by increasing community awareness of job opportunities, educating residents on the application process and offering training classes to prepare applicants for the refinery's pre-qualification tests. As a result, 40 percent of final job offers were made to minority applicants and 50 percent of successful candidates were from St. John the Baptist Parish.

 

Community Impacts and Resettlements

Marathon strives to avoid negative socioeconomic impacts and involuntary resettlement of individuals and communities in siting, developing and operating its assets. For new projects, community engagement is based in part on applicable IFC and World Bank guidelines and standards. These and other resources are particularly useful for operations in developing countries.

 

Participatory Consultation in Indonesia

Marathon employs participatory consultation to avoid physical resettlement and to develop solutions that are acceptable to communities and meet their needs. This approach is helping Marathon develop a trusting relationship with communities near its exploration programs offshore Sulawesi, Indonesia. Through community consultation forums it hosted, the Company learned about local needs and developed sustainable social, health and economic programs designed to address specific issues. Programs included improving access to clean water and developing home industries to help citizens generate income. Marathon also tailored assistance for citizens whose livelihood was affected by seismic work in its offshore venture. After seismic work was completed in 2008, Marathon ensured that fishermen and others were able to resume work successfully. The Company plans to take a similar approach as its exploration program progresses in other parts of Indonesia.

 

Indigenous Communities

Marathon respects the desire of indigenous communities, peoples and nations to preserve, develop and pass along their territories, cultures and institutions to future generations.

 

Expanding Reach of Methamphetamine Awareness Program

Methamphetamine abuse affects the quality of life in some communities where Marathon operates, the safety and well-being of Marathon workers and their families, and employee retention and recruitment. After learning about these risks from stakeholders, Marathon developed an awareness program to help develop local capacity to deal with methamphetamine abuse. The geographic scope of the program and the diversity of its stakeholders have expanded steadily since it was launched in 2006. The program has been presented to approximately 22,000 people in nine states where the Company owns assets, primarily through secondary school events and town-hall style meetings. The Company continues to work with industry groups, law enforcement officers and community leaders to broaden opportunities to communicate about preventing methamphetamine abuse.

Marathon maintains an ongoing dialogue with Wind River Reservation tribal leaders in Wyoming concerning local issues. This engagement led Marathon to host its methamphetamine awareness program for 350 Wind River Casino employees in 2008. In addition, more than 4,000 people from the community participated in the awareness program, including local high school students.

 

Social Investments

Marathon supports responsible social investments as a means to serve the communities where it operates, combining longer-term funding for sustainable initiatives with targeted philanthropic contributions.

The strategic focus areas for Marathon's social investing are education and health and human services. To maximize its support for select organizations, the Company develops signature programs encompassing multi-year financial commitments. Marathon also supports nonprofit organizations and civic, community, environmental and social programs, and encourages employees to volunteer locally.

As local needs grow, community relations programs and philanthropy are increasingly important to the successful execution of Marathon's business plans. An internal strategic philanthropy study will be conducted in 2009 to ensure that contributions and activities align with Marathon's business plans.

 

Supply Chain Management

Marathon's Global Procurement organization manages the competitive bid process to efficiently obtain goods and services from outside sources.

Suppliers are expected to demonstrate financial viability and competitive value-added capabilities. They must comply with applicable safety, environmental and transportation laws and regulations, the Marathon Code of Business Conduct, and Company policies related to drugs and alcohol, harassment, HES&S and weapons. All suppliers are required to follow Marathon's operational safety procedures. Depending on the job they perform, certain suppliers must complete a safety evaluation process before they are allowed on Marathon's properties.

Global Procurement employees and suppliers adhere to high ethical standards, respect local laws and promote principles of justice, fairness and equality wherever the Company operates. Marathon's Integrity Helpline is available to suppliers for reporting suspected unethical or illegal behavior.

 

Supplier Diversity Program

Marathon takes a proactive approach in building relationships with minority- and women-owned business enterprises (MWBEs). The Company maintains corporate memberships with the National Minority Supplier Development Council (NMSDC) and the Women's Business Enterprise National Council (WBENC), the two most widely recognized certifying agencies in the U.S. Marathon only tracks spending with MWBEs that are certified through NMSDC or WBENC processes, which include a financial review, ownership documentation and onsite visits.

Marathon had direct spending with MWBEs of $210 million in 2008, compared to $214 million in 2007. The decrease in spending resulted from key suppliers losing their MWBE designation due to mergers or acquisitions.