BP (BP)

Governance and the role of our board

        Good governance is often defined in terms of the presence or absence of particular practices without reference to the underlying purpose of governance processes. We believe that governance is a more powerful concept.

        Governance is not an exercise in compliance nor is it a higher form of management. Governance lies at the heart of all the board does and it is the task our owners entrust to the board. It has a clear objective — ensuring the pursuit of the Company's purpose. The board's role is focused on this task, which is unique to it as the representative of BP's owners. This task is discharged by the board through undertaking such activities as are necessary for the effective promotion of shareholder interest.

        Governance is the system by which the Company's owners and their representatives on the board ensure that it pursues, does not deviate from and only allocates resources to its defined purpose.

        As a Company, we recognize the importance of good governance and that it is a discrete task from management. Clarity of roles is key to our approach. Policies and processes depend upon the people who operate them. Governance requires distinct skills and processes. In the context of BP, governance is overseen by our board while management is delegated to the group chief executive by means of the board governance policies.

        Our board governance policies use a coherent, principles-based approach, which anticipated many developments in UK governance regulation. They ensure that our board and management operate within a clear and efficient governance framework that goes beyond regulatory compliance and places shareholder interest at the heart of all we do.

Governance and the role of our board

        Good governance is often defined in terms of the presence or absence of particular practices without reference to the underlying purpose of governance processes. We believe that governance is a more powerful concept.

        Governance is not an exercise in compliance nor is it a higher form of management. Governance lies at the heart of all the board does and it is the task our owners entrust to the board. It has a clear objective — ensuring the pursuit of the Company's purpose. The board's role is focused on this task, which is unique to it as the representative of BP's owners. This task is discharged by the board through undertaking such activities as are necessary for the effective promotion of shareholder interest.

        Governance is the system by which the Company's owners and their representatives on the board ensure that it pursues, does not deviate from and only allocates resources to its defined purpose.

        As a Company, we recognize the importance of good governance and that it is a discrete task from management. Clarity of roles is key to our approach. Policies and processes depend upon the people who operate them. Governance requires distinct skills and processes. In the context of BP, governance is overseen by our board while management is delegated to the group chief executive by means of the board governance policies.

        Our board governance policies use a coherent, principles-based approach, which anticipated many developments in UK governance regulation. They ensure that our board and management operate within a clear and efficient governance framework that goes beyond regulatory compliance and places shareholder interest at the heart of all we do.