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Sunoco published its first set of formal Corporate Governance Guidelines in 1998 and elected a Chief Governance Officer in 2002. Under the direction of the Board Governance Committee and the Chief Governance Officer, the Corporate Governance Guidelines are reviewed and published yearly in Sunoco’s proxy statement and on the Sunoco web site so that shareholders, financial analysts, regulators and the public will have a clear understanding of how the company is governed.
Board of Directors – Setting Strategic Direction
The eleven-member Sunoco Board of Directors annually reviews and approves the three-year corporate strategic and operations plans. The Board also approves all major corporate activities and monitors political, economic, and regulatory trends that may have a significant impact on the company’s operations or financial stability.
The entire membership of the Sunoco Board of Directors must stand for re-election annually. All members of the Board – other than the CEO – are independent. The Board conducts its work through the following committees:
Although HES performance is discussed at each Board meeting, the Corporate Responsibility Committee has lead responsibility for monitoring HES issues. In addition, the Compensation Committee approves the yearly HES modifiers, which become part of the corporate success sharing targets. The modifiers represent stretch targets that represent continuous improvement over our “best ever” performance. Management – Implementing Strategy and Managing Risks
In addition to performing the detailed analysis that leads to recommended strategic directions and implementing the approved corporate strategy, Sunoco management is responsible for identifying and managing potential risks to the corporation to ensure it long-term financial stability. Sunoco employs integrated management systems to ensure that HES issues are addressed systematically and that all legal and corporate requirements are met.
Each business unit is responsible for its HES performance with technical and policy guidance and assistance from Corporate HES Services. Corporate staff also audit HES performance and management systems and periodically report their findings to the Corporate HES Committee (CHES) and the Board of Directors. Click here to view the HES management oversight structure.
Compliance
To ensure compliance with its policies, standards, and procedures, the company has established a formal compliance program. The company’s policies include:
Employees are required to take training in areas such as business ethics and conflict of interest. Computer-based training modules have been developed so the employees can take the training on-line and then are tested regarding their knowledge of the training.
Annually, employees must answer an online questionnaire to determine if they have any knowledge of possible breaches of policy. Responses are analyzed and followed up by the Chief Compliance Officer.
Employees always have the opportunity to report issues either through their supervisor or by means of the company’s compliance hotline. Employees are trained to understand that they can report issues (anonymously if desired) involving business conduct, ethics, conflict of interest, discrimination, harassment, theft, fraud, financial integrity, etc. with the assurance that their issues will be investigated thoroughly. |
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Resources:
HES Glossary
HES Principles
About the Business
Conversion Table
Summary Report PDF
Related Links:
ERM
Sunoco has continued to formalize and expand its focus on Enterprise Risk Management ...
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Recognition by Forbes.com
On March 28, 2008 , Sunoco was recognized as one of the most trustworthy companies by Forbes.com ...
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