All Petrobras service contracts contain clauses on eliminating forced labor and abolishing the use of slave and child labor or labor in degrading conditions

COMPLIANCE WITH REQUIREMENTS ENSURES BEST PRACTICES

Principle 2 Businesses should make sure that they are not complicit in human rights abuses

Petrobras operates in accordance with the Social Responsibility Policy, following the human rights principle to ensure that the principles of decent work and non-discrimination in all its contracts are complicit.

Projeto Juventude que Samba, Trabalha e é Feliz, no Rio de Janeiro
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Clauses that eliminate forced labor and abolish the use of slave and child labor or labor in degrading conditions are included in all Petrobras service contracts. Items referring to health, safety, environment and social responsibility are also considered. With regard to significant investments, it was not possible to identify the total number of contracts with human rights clauses. Petrobras intends to compile this information during 2009 to publish it in the next report.

From the List of Petrobras Goods and Service Providers , it is possible to select among the supply companies those that are able to comply specific criteria. Registration is made in a single database available to the entire company. Upon registering, the company must comply with certain requirements for the legal, technical, economic, HSE and social responsibility criteria. Thus, Petrobras intends to obtain better management in the process of procuring goods and services and promoting the integration of the activities relating to assessment of its suppliers.

The company also assesses the registered companies and undertakes on-the-spot audits in their head officers and onsite. The supplier that is registered, renewed or has increased scope approved is visible to all the company units and receives the Registration Qualifying Certificate (CRCC), valid for a year.

The Engineering area, for example, assesses suppliers using the Engineering Supplier Management Program (PROGEFE). During the year, 180 of the 338 suppliers that provide services considered critical were assessed. In the Downstream area, on the other hand, under the Responsible Partnership Program, guidance work was done in 2008, based on social responsibility aspects, involving 123 Petrobras suppliers of critical product resources and 67 fuel customers nationwide. All were assessed in order to identify the progress of management processes and encouraged to be committed to improvements in quality, health, safety, environment and social responsibility.

ENGAGEMENT PROGRAMS

Petrobras takes actions to capacitate multipliers of its Code of Ethics and disseminate its social responsibility practices. The whole workforce must perform in accordance with the principles of the Code, which stresses aspects relating to human rights and relations with employees, customers, suppliers, outsourcees and society. The company provides seminars, lectures and training to disseminate matters relating to human rights. Subjects on harassment and diversity are also discussed.

During 2008, 20,180 hours were devoted to capacity building in social and environmental responsibility with the participation of 3,022 employees and outsourcees. The Petrobras University ran courses on citizenship, social responsibility, public policies and globally responsible leadership (GRLI). Subjects relating to social networks for community development, preparation of social projects for Petrobras Development & Citizenship were also provided and classes given on the principles, concepts, certifications and tools of Environmental and Social Responsibility.

Also, seminars, workshops and special projects on sustainable human development, voluntary work and ethics were offered.

Each year Petrobras trains according to corporate standards and norms all its property security employees in the policies and procedures relating to the aspects of human rights. The contracted workforce has a recycling course every two years, with ideas about criminal law and the physical safety of the facilities. To reinforce the importance of the HSE guidelines with its contractors, Petrobras standards are presented with risk matrices, as well as requirements for contracting of service providers, in compliance with the strict selection criteria and periodic assessment.