BP Annual Report and Form 20-F 2011 - Company Reporting

In detailFor more information,see Corporate governance.Page 119Above In 2011, BPannounced the start ofnatural gas productionfrom the Serrette field,offshore Trinidad.Below A team atwork in East Texas.As operator, BP drilled148 wells across theUS Lower 48 statesin 2011.In detailFor more informationon employees, seeBP in more depth.Page 73Our organization: People and governanceThe people of BP are united by a common codeof conduct and values, and share an aspiration tomake BP a stronger, safer company that makes apositive difference to the world.Our boardThe board is responsible for the direction and oversight of BP on behalf ofshareholders. As at 31 December 2011, it comprised the chairman, nine nonexecutivedirectors together with the group chief executive; the chief financialofficer and the chief executive of BP’s Refining and Marketing segment.The executive directors have responsibility for the day-to-day running of BP,while the non-executive directors bring independent viewpoints and a breadth ofexperience, along with insights into how other companies manage key issues.Five of our current non-executive directors have been appointed since 2010.Board committees play an increasingly important role. The committeesare: the Gulf of Mexico committee; the safety, ethics and environment assurancecommittee; the audit committee; the remuneration committee; the nominationcommittee; and the chairman’s committee. In addition, an independent internationaladvisory board advises our chairman, group chief executive and board on strategicand geopolitical issues relating to the long-term development of the group.In 2011, an internal review of risk management systems and processeswas undertaken to enhance clarity, simplicity and the consistency of our riskmanagement system, from front-line operations through to the boardroom. SeeOur management of risk on page 42 for further information. Also in 2011, a newboard steering group completed a review of board governance. The review lookedat the structure, roles, tools and processes involved in board and board committeework. The findings of the review will inform a new set of board governanceprinciples, which will be published later in 2012. See Board performance report onpages 120-133 for further information.Our employeesWe employ approximately 83,400 people (including 14,600 service station staff),the majority of whom are located in the US and Europe. The Deepwater Horizonoil spill in 2010 had a profound effect on our employees, and to strengthen andstandardize what we do, we launched a range of internal change projects in 2011.See How BP is changing on page 36 for more information.In addition, we are working hard to address a critical issue facing everyonein our industry – a growing skills gap. This, alongside the increasing demand forenergy products and complexity of projects, means that attracting and retainingskilled and talented people is vital.Our leadership has focused on ensuring that appropriate developmentopportunities and succession plans are in place to build capability. To supplementour existing internal capability, we also target experienced and skilled professionalsin the external market and are continuing to increase our intake of graduates tocreate a strong internal talent pipeline for the future.We provide a range of professional development programmes and trainingto build capabilities in our people and are committed to creating an inclusive workenvironment where everyone is treated fairly, with dignity, respect and withoutdiscrimination.Business review: Group overviewBP Annual Report and Form 20-F 2011 31