We support transparency in revenue flows from oil and gas activities to governments and have a responsibility to our host countries to be ethical in our dealings
We contribute to economies around the world through the taxes that we pay. We paid $2.2 billion in income and production taxes to governments in 2016 (2015 $3.5bn, 2014 $8.0bn).
We participate in initiatives to simplify and improve tax regimes to encourage investment and economic growth. We also support efforts to increase public trust in tax systems.
The Extractive Industries’ Transparency Initiative (EITI) supports disclosure of payments made to, and received by, government in relation to oil, gas and mining activity.
As a member of EITI, BP works with governments, non-governmental organizations and international agencies to improve the transparency of payments to governments.
We disclose information on payments to governments for our upstream activities. We report on a country-by-country and project basis as required by UK regulation. These payments could be made in the form of production entitlements, taxes, royalties, bonuses, fees and infrastructure improvements.
We also make payments to governments in connection with other parts of our business - such as the transporting, trading, manufacturing and marketing of oil and gas.
Anti-bribery and corruption
We operate in some of the world’s highest-risk countries from an anti-bribery and corruption perspective.
Our code of conduct explicitly prohibits engaging in bribery and corruption in any form. We have a responsibility to our employees, our shareholders and to the countries and communities in which we do business to be ethical and lawful in our work.
Our anti-bribery and corruption policy applies to all BP-operated businesses. It sets out appropriate contractual commitments, risk assessments and training. We provide training to those employees for whom we believe it is most relevant. This depends on the nature or location of their role or in response to specific issues. In 2016 nearly 13,000 employees completed this training (2015 13,500).
Before working with a supplier, we conduct an assessment to determine the degree of bribery and corruption risk posed. If needed, we then put in place a risk reduction plan.
We expect our suppliers to comply with laws and act consistently with our code’s principles. Our contracts with suppliers make these expectations clear.
We also carry out checks once contracts are in place. For example, for a number of suppliers in higher-risk regions, our upstream business conducts audits to assess their compliance with our anti-bribery and corruption contractual requirements.
Potential areas for improvement identified by the audits are shared with the suppliers and we often work with them to find the best ways to strengthen their procedures. The learnings from these audits help to reduce risk to both BP and our suppliers. We issued a total of 25 audit reports in 2016 (2015 35, 2014 36).
A key consideration for our downstream and shipping businesses is how best to carry out the safe, efficient and ethical distribution of our products. For example, the movement of goods could be exposed to corrupt requests for ‘facilitation payments’ to expedite customs clearance or avoid delays to the supply chain. In higher-risk regions, we provide training for our shipping crews and distributors to help them understand and mitigate these risks. BP does not tolerate facilitation payments in any form.