Q1 2023 Integrity Advocate
Continued Focus on Anticorruption Compliance
Not only is Marathon Petroleum Corporation an industry leader coast to coast, our footprint is more international than ever. Our touchpoints now include operations and employees in Canada, Mexico, Singapore and the United Kingdom.
With this international landscape comes heightened risk for issues related to potential corruption and bribery. MPC maintains an Anticorruption Policy, which prohibits bribery and other corrupt conduct. This policy is consistent with MPC's commitment to integrity, but it is also designated to ensure compliance with applicable laws, including the U.S. Foreign Corrupt Practices Act (FCPA). The FCPA is a federal law that generally prohibits bribery of foreign government officials in connection with business as well as requires companies to maintain accurate books and records and adequate accounting and internal controls. MPC provides biennial training on the FCPA for employees whose jobs may require interaction with foreign government officials or employees of foreign government-owned or controlled business enterprises, such as those listed here.
As we continue to embrace the opportunity to have a presence beyond U.S. borders, we also understand the unique risks related to corruption inherently faced by maintaining those operations. Insight into that risk is provided by the annual Corruption Perceptions Index from Transparency International, which ranks 180 countries and territories in terms of perceived levels of public sector corruption according to experts and businesses. Rankings are based on a score of zero to 100, where zero is "highly corrupt" and 100 is "very clean." In 2022, the index identified more than two-thirds of countries with a score below 50, and the overall average score for all ranked countries has been 43 for over a decade. These rankings are considered when reviewing business partners and potential new business opportunities.
As we continue to expand our footprint, be sure to familiarize yourself with the applicable corporate policies and training opportunities related to our anticorruption and anti-bribery compliance program and take a moment to educate yourself with the brief anti-bribery video included in this newsletter.
Anticorruption Enforcement - 2022 in Review
The U.S. Foreign Corrupt Practices Act (FCPA) makes it a crime to bribe foreign government officials and imposes certain books and records and internal controls requirements on companies that are issuers of securities (i.e. listed on a U.S. stock exchange). The U.S. Department of Justice (DOJ) and the U.S. Securities and Exchange Commission (SEC) share authority for enforcement, with only the DOJ having the authority to pursue criminal actions.
Enforcement Actions
In 2022, the DOJ initiated 18 enforcement actions, while the SEC initiated 7; not all targets of enforcement are issuers subject to the SEC’s authority. These numbers are up from 2021 where there were 11 and 4, respectively. Over the past ten years the average number of initiated actions for the DOJ is 20, and the average for the SEC is 13.
To illustrate the type of enforcement actions that can occur, here are two noteworthy examples from last year:
Glencore International A.G.
On May 24, 2022, it was announced that Glencore had agreed to pay approximately $1.5 billion to resolve allegations related to bribery and market manipulation. Specific to the FCPA, it was alleged that the company had provided more than $100 million in payments and other items of value to intermediaries between 2007 and 2018 to bribe foreign officials in Latin America and West Africa to obtain contracts and other benefits. While market manipulation is outside the scope of the FCPA, this conduct was uncovered during the FCPA investigation leading to a joint resolution with the Commodities Futures Trading Commission (CFTC).
Honeywell International, Inc.
On December 19, 2022, it was announced that Honeywell had agreed to pay $202.7 million to resolve anticorruption investigations by the DOJ, SEC and Brazilian prosecutors. The agreement resolved allegations that between 2010 and 2014 Honeywell UOP paid $4 million to an official of Petrobras, the Brazilian state-owned oil company, to secure contracts related to a refinery project. The SEC resolution also included additional conduct in Algeria, resolving claims that Honeywell’s Belgian subsidiary had paid $75,000 to secure a contract with the Algerian state-owned oil company Sonatrach. These payments were made using third-party intermediaries.
Bribery and corruption are not only against our company values; they are illegal and can expose both the employee and MPC/MPLX to fines and penalties, including imprisonment and reputational damage. If you are offered a bribe, or one is requested of you, by a person or entity doing business with or seeking to do business with the company, report it immediately.
Reporting Concerns
Employees are expected to report suspected violations of laws and can do so without fear of retaliation. Suspected violations may be reported to your supervisor, your supervisor's manager, Internal Audit, Law-Government Affairs, Human Resources, or Health, Environment, Safety, Security & Product Quality. In addition, employees and others may access the Integrity Helpline at FuelingIntegrity.com or (855) 857-5700[1].
[1] Mexico - All Carriers 800.681.6945; Telmex 001 866 376 0139; Singapore – All Carriers 800.852.3912; Singapore Telecom 001 800 1777 9999; United Kingdom 0-(808)-189-1053
Celebrating 100% Participation in the Annual Code of Business Conduct Questionnaire and Certification Process
Each January, directors, officers, and employees are asked to certify that they’ve read the Code of Business Conduct (Code) and complete a questionnaire inquiring about compliance with company policies, including the Code and Conflicts of Interest Policy #2006.
This questionnaire and certification process demonstrate MPC’s commitment to ethical business conduct and provide an additional opportunity for employees to disclose situations that may involve, or appear to involve, a conflict of interest or violation of our Code of Business Conduct. Below are this year’s campaign stats as compared to 2021.
Work is underway in Business Integrity and Compliance (BI&C) to review the 243 disclosures submitted by employees via the questionnaire. Those requiring further review will be referred to the appropriate organization, such as Human Resources, Internal Audit, and/or Health, Environment, Safety, Security & Product Quality. Submitting employees can expect to receive communication from BI&C acknowledging their submissions and providing direction, as warranted.
If a new conflict of interest arises at any time during the year, you may submit a disclosure via the Interim Disclosure process.
If you have a question or concern regarding the Code of Business Conduct or company policies, including a potential conflict of interest, you may contact the Integrity Helpline at FuelingIntegrity.com or 855-857-5700[1].
[1] Mexico - All Carriers 800.681.6945; Telmex 001 866 376 0139; Singapore – All Carriers 800.852.3912; Singapore Telecom 001 800 1777 9999; United Kingdom 0-(808)-189-1053
It Happened Here
The following scenarios happened with employees at our company. Situations and descriptions have been edited to maintain anonymity and confidentiality.
Click arrows below to view the company response to the concern.
The Concern: Employee was reported for posting multiple videos on social media wearing Marathon work attire and discussing gasoline prices.
The Response:
Investigation confirmed that the employee posted videos on social media wearing Marathon work attire while discussing gasoline prices and non-public information about the employee's worksite. The investigation also confirmed that one of the videos was filmed while the employee was at work. Employee was required to remove the videos from social media and received discipline for violating the Code of Business Conduct and Social Media Guidelines; clear expectations for future behavior were set.
The Concern: Employee suspected of using a company charge card for personal purchases.
The Response:
Investigation confirmed the employee’s use of a company charge card for personal purchases. Policy #8001 – Corporate Charge Cards does not allow use of Company Charge Cards for anything other than business-related expenses. Employee repaid the company for all charges and was disciplined; clear expectations for future behavior were set.
The Concern: Employee was reported for inappropriate comments and actions that were creating a hostile and uncomfortable work environment for co-workers. Several incidents were said to be reported to the employee's supervisor and went unaddressed.
The Response:
Investigation confirmed employee’s inappropriate behavior and the supervisor’s inaction in addressing the reported incidents. Policy #10003 - Harassment & Appropriate Workplace Conduct outlines MPC’s commitment to providing a work environment free from all forms of harassment and provides procedures by which allegations of harassment may be reported, investigated and resolved. Policy 10003 also states, “Managers or supervisors who receive complaints or who are otherwise aware of conduct that may be in violation of this Policy must immediately report all such complaints and conduct to Human Resources or Business Integrity and Compliance.” Neither the employee nor the supervisor still work for the company.
Be an Integrity Advocate
Being an advocate is about speaking up not only about what may be wrong, but also about what is going right. Examples of ethical conduct should be highlighted and celebrated!
We invite you to help expand the scope of “It Happened Here” to include positive stories of integrity in action in future issues of the Integrity Advocate by submitting instances of integrity in action to Business Integrity and Compliance, Room M01004 Findlay Campus or [email protected].