Transcript GE Oil & Gas - Kommunikasjon.no

GE and GE Oil & Gas
Beppe Ruocco
Stavanger
October 24, 2008
This is GE.
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GE Confidential & Proprietary Information
GE © 2008 – All Rights Reserved
… it is recognized as being among the world’s
best companies
World’s most admired company
Fortune Magazine
2000, 2001, 2002, 2006, 2007
World’s most respected company
Barron’s Magazine
2005 (#1), 2007 (#3)
Top 50 technology companies
Scientific American
Dow Jones Sustainability Index
2005, 2006, 2007
Best Place to Launch a Career
Business Week Magazine- 2007 (#13)
100 Best Companies for Working Mothers
Working Mother Magazine
Best in Leadership Development
Leadership Excellence Magazine - 2007
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GE Confidential & Proprietary Information
GE © 2008 – All Rights Reserved
… it is a family of four businesses … $173B
(2007 Revenue)
Technology
Infrastructure
Energy
Infrastructure
GE Capital
NBC Universal
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GE Confidential & Proprietary Information
GE © 2008 – All Rights Reserved
GE’s portfolio
Energy
Infrastructure
Technology
Infrastructure
GE
Capital
• Oil & Gas
• Energy
• Water & Process
Technologies
• Aviation
• Enterprise Solutions
• Healthcare
• Transportation
• Aviation Financial Services
• Commercial Finance
• Energy Financial Services
• GE Money
• Treasury
NBC
Universal
• Cable
• Film
• International
• Network
• Sports & Olympics
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GE Confidential & Proprietary Information
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… it is a global company
Operations in over
100 countries
2650 employees in
Norway
300,000+ employees
worldwide
Manufacturing facilities
in 32 countries
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GE Confidential & Proprietary Information
GE © 2008 – All Rights Reserved
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GE Confidential & Proprietary Information
GE © 2008 – All Rights Reserved
Reputation Is Our Most Important Asset
•
Most Admired Company
•
Most Ethical Company
•
Best Legal Department
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GE Confidential & Proprietary Information
GE © 2008 – All Rights Reserved
A Reputation for Integrity …
• Builds confidence in customers
• Helps us attract the best talent
• Allows us to engage outstanding partners
and suppliers
• Lowers the risk of crises –- and when they
do occur, we can recover faster
• Contributes to a trusting environment in
which to work with regulators and the public
Integrity is a competitive advantage
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GE Confidential & Proprietary Information
GE © 2008 – All Rights Reserved
GE Oil & Gas
GE Energy Infrastructure
Employees: 65,000 • ‘07 revenue: $30.7B
Oil & Gas
• HQ: Florence, Italy
• Employees: 12,000
• ‘07 revenue: $6.8B
Energy
• HQ: Atlanta, GA
• Employees: 42,000
• ‘07 revenue: $21.8B
Water & Process
Technologies
• HQ: Trevose, PA
• Employees: 8,300
• ‘07 revenue: $2.3B
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GE Confidential & Proprietary Information
GE © 2008 – All Rights Reserved
GE Oil & Gas playground
Land
Pipeline Inspection
Offshore NG
Onshore NG
Offshore
Transportation
Processing
Subsea
Broad oil & gas technology player
with service at its core
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GE Confidential & Proprietary Information
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Global & Local
Commercial Hubs
Manufacturing facilities
Service shops
Nailsea
Edmonton
Aberdeen
Oshkosh
Shenyang
Odessa
Jadira
Houston
Hassi Messaoud
Charleton
Le Creusot
Port Harcourt
Stavanger
Stavanger
+ Oslo, Bergen,
& Trondheim
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GE Confidential & Proprietary Information
GE © 2008 – All Rights Reserved
Integrity & Compliance
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GE Confidential & Proprietary Information
GE © 2008 – All Rights Reserved
Why is integrity so challenging?
• Because it doesn’t just happen
• Pressures are a part of our daily life
- Customer demands
- Business complexities
- Government regulations
- Globalization
- Digitization
- Culture
• Building and maintaining our integrity culture must
be a daily activity
• It depends on each one of us … all 300,000 + GE
employees
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GE Confidential & Proprietary Information
GE © 2008 – All Rights Reserved
Whatever the challenge, it comes down to living
up to your values …
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GE Confidential & Proprietary Information
GE © 2008 – All Rights Reserved
The Spirit & the Letter
The Spirit: We will be honest,
fair and trustworthy in
ALL our activities and
ALL our relationships
The Letter: We will obey all
laws and regulations
Integrity … A GE value for over 125 years
For GE, our Code says it all
… every GE employee makes a personal commitment to follow our
Code of Conduct
• It is translated in over 30
languages
• Lays out our responsibilities &
commitments
• Outlines the standards we work by
• Indicates how to report any
concerns
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GE Confidential & Proprietary Information
GE © 2008 – All Rights Reserved
The Letter: The Policies to guide us
Working with Customers & Suppliers
•
•
•
•
•
Improper Payments
Supplier Relationships
International Trade Controls
Money Laundering Prevention
Privacy
Government Business
• Working with Governments
Competing Globally
• Complying with Competition Laws
In the GE Community
• Fair Employment Practices
• Environment Health & Safety
• Security & Crisis Management
Protecting GE Assets
•
•
•
•
Intellectual Property
Controllership
Conflicts of Interest
Insider Trading & Stock Tipping
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GE Confidential & Proprietary Information
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Our Focus Is On Our Leaders
“As a GE leader, you
have
no
greater
responsibility than to
shape the culture of
your business.”
Jeff Immelt
Chairman of the Board and
Chief Executive Officer
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GE Confidential & Proprietary Information
GE © 2008 – All Rights Reserved
Compliance is a function with a set of processes
Concern Reporting
and Resolution
Risk Assessment
and Abatement
Leadership
Engagement
Evaluation
Communication
Training
Leadership engagement is
the most critical element
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GE Confidential & Proprietary Information
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Why are business leaders so critical?
…because they are responsible for the culture
They Create
the Environment
They
Hire the
People
They
Own the
Processes
They
Set the
Priorities
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Validating the Culture Is a Must
Open Reporting System
Auditing
• 400 Ombudspeople
• 500 Auditors
• Every Business,
Every Country,
Every Location
• Continuous
ComplianceRelated Audits
• Confidential,
Retaliation-Free
• Every Geographic Area
& Business
• Global Internet Access
• Reports Directly to
Audit Committee
• Anonymous Channels
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GE Confidential & Proprietary Information
GE © 2008 – All Rights Reserved
Assessing our Culture is a continuous process
The Roll-Up
Inputs
Outputs
• What
Keeps Us
Awake?
Bottom
Up
• Compliance Program Objectives
• Key Investigations
• Strategic Plan Aligned with
PCRB
“Growth Playbook”
• Review Compliance Resources
• Bottoms Up
Objectives
Business
Wide
• Address Resource Priorities
Regional
• Culture & Systems Abatements
• eCPA/Healthcheck
• Risk Prioritization
• Business Leader Goals &
• Cross Business Trends
• Annual PCRB Priorities
• Cross Business/Industry Trends
Country
We never take Culture for granted
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GE Confidential & Proprietary Information
GE © 2008 – All Rights Reserved
Oil & Gas Global Compliance Footprint
1
Calgary
1
Houston /
Mexico
~ 1400
UK/Norway 1
~ 2400 3
2
South Europe /
North Africa 1
~ 4000
N.A. Ops
1
4 4
2
.5
1
2
2 7
18 .5
1
China
~ 150
2 2
1
1
Maracaibo
1
Middle East
~ 150
1
Nigeria
South Asia
~ 600
Luanda
Macaé
1 2
Sao Paulo
B. Aires
Compliance Leaders
Regional Coverage
7 Full time Compliance Leaders
W.E./E.E./N. Africa
37 Part time Functional / Div.
Asia
TBD M. East
15 Internal Audit Team
~ 100 employees
LA/SA
TBD W. Africa
NA/CA
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Compliance & Communication
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GE Confidential & Proprietary Information
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Compliance Processes - Communication
• Compliance Review Board ... quarterly
• CEO messages ... Annual meeting and Corporate Exec. Council (July)
• Compliance misses and “heroes” ... Oil & Gas quarterly newsletter
• Training: (1) New employees face to face and (2) Spirit & Letter web based
• Compliance videos – situation specific
• Spotlight on Integrity ...
› Yearly “one day” event, at all global sites, focused on integrity and compliance
› Each manager responsible to spend time with respective teams, including pitch
› Pitch translated into 10 different languages
› “Integrity Quest” ... “scavanger hunt” through integrity web sites ... 10 winners
• “Bottoms Up” and survey
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GE Confidential & Proprietary Information
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… Every Year
“EMS”
- Goals & Objectives Drive Business Leadership ownership
“Session D”
- Bottoms-Up Meetings
- Compliance Risk Prioritization and Action Plans Developed
- Employee Perception Survey
- Compliance Program Assessment
Acknowledgements
- S&L Policy Acknowledgement
- COI Questionnaire
- International Boycott Survey
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GE Confidential & Proprietary Information
GE © 2008 – All Rights Reserved
Global objective ...
Local execution ...
•
Yearly “one day” event, at all global
sites, focused on integrity and
compliance
• Vice Chairman video message & roundtable
Each manager responsible to spend
time with respective teams, including
pitch
• Management web-chat (w/c 27/10)
•
•
Pitch translated into 10 different
languages
• O&G CEO all employee communication
• Give-aways: I.d. badge holder
• Mgr’s presentation focused on ‘08 PCRB
priorities
• “Integrity Quest” ... “scavanger hunt” through
integrity web sites ... 10 winners
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• Local event, ie: Florence
compliance
booth
GE Confidential
& Proprietary
Information
GE © 2008 – All Rights Reserved
Communication - “Integrity Matters”
• Quarterly newsletter
• Compliance misses
• Oil & Gas Ombuds metrics
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GE Confidential & Proprietary Information
GE © 2008 – All Rights Reserved
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GE Confidential & Proprietary Information
GE © 2008 – All Rights Reserved
“It takes 20 years to build a reputation
and five minutes to ruin it. If you think
about that, you will do things
differently”
- Warren Buffett
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GE Confidential & Proprietary Information
GE © 2008 – All Rights Reserved
Overview … The case for Integrity
• It is the right thing to do
• It is the foundation of our
business
• Our reputation depends on it
• It is the basis of all our
relationships and activities
• It involves everyone of us …
everyday
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GE Confidential & Proprietary Information
GE © 2008 – All Rights Reserved