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Exhibit No. Worldwide Court Inc, ReDorters,

Q: Normallywe talk about'corporate social responsibility.'Why doesBp preferthe 'the responsibility term of the company'?
GB: We can't redefinethe languageof the world. But we feel that 'corpoiatJsocial responsibility'is a fluffy term that means all sortsofdifferent things.To work effectivelyin this areawe needprecision. So we preferto talk aboutthe responsibility the company. of 0: So let me try to pin you both down. What does corporate responsibility mean? GC: It's an extremelydifficult thing to define.One of the mainpointsI wis trying to make in my surveyof corporate socialresponsibilityin The Economist (published |anu ary22,2005) wasthat the term CSR coversa vastrangeofpolicies and interventionsand adjustments the in way companiesconduct themselves. Everything from the way you manage your staff, communicatewith your staff, make charitablecontributions,sponsor artistic and cultural events the wav all through to commitmentsto recyclingand the useofrenewable resources. The question is 'What do all these thingshavein common?'My argument is that one of the main thingsis a misunderstanding aboutthe way capitalism works. The fact is that manv CSR practises spring from the view that a companythat actswithin the law and makesprofits is not, merelyby virtue of that fact, advancing socialwelfare. The CSR argumentis that it needsto do other things to show that it is a good company. I think that view is wrong - it is simplya mistake.Alaw-abiding, profit-making company is advancingthe socialgood merelyby beingthat itself.It doesn'tneedto do anythingelse. o': ls that an argument you are comfartable with, Graharn7 GB: Very much so. We sharethe viewthat CSRasa phrasehascreated more fog than clarity.But we do welcome discussion aboutthe responsibility ofa companyand, in particular, the responsibility BP.In our 2004 of SustainabilityReport we lay out precisely what we mean by a responsible company. For us it starts off with compliancewith the law. It extends setting to our own standards which we operateby globallythis is beinga responsible operator. The recentterrible accidentat Texas City remindsus of how essential is to get this it bit right abovealJelse.Beyondthat we define someareas- only a very few -

companiesgiving awayother people's money.Totallyagree.

Q: So both ofyou accept the statement that "the business of businessis business"? CC: It wasthe closingremark in my article! wherewe aspireto leadership. The reason yes.Indeed,we saythat _ GB: Absolutely, for doingthat is because these areas are the purposeofour business the creation is that arerelevant our business to to and oflong term shareholdervalue. This does our business purposeofcreatinglong raisetheissue timescale. Bp,scase of In term shareholder value,They arealso we're a Iong term business our timescale societal issues whichwe choose engage is 20, 30, 40 years. to IfClive and I differ,it is in because theyaremostdirectlyrelatedto over the definition ofprofitability. There us. The obvious example climate is aretimeswhen a companylike BP needsto change.We didn't get involvedin climate act long term in a way that may reduce changeby chance.We're involvedbecause short term profitabilityby investingin we seeit asgermaneto the sustainabiliW socialissues that ultimatelywill createa of a hydrocarbons business. positiveenvironmentfor us to operatein. We think thereare three or four other We seethat asbeingpart of our social areaswherewe can take a similar view, responsibility and part of our commitment mostly in the areaof development to beinga responsible company. including education,enterpriseand CC: I don't disagree with that at all access energy.Thesegreat challenges to exceptpossiblythe last sentence. It's are relevantto our business. Thev're not centralto my view that the appropriate random choices. And philanthropy matrix for business long term is doesn'tcomeinto it. I particularly Darti Iiked I performance,with long term underlined. the point Clivemadein his surveyabout A lot of peoplecriticisedthe surveyI wrote the dubiousethicsof publicly-owned on the groundsthat it ignoresthe reality t

"There times are whena compang Bp needs act tike to longtermin a wagthatmagreduce shortterm profitabititg investing social bg in issues uttimatelg that witl create positive a environment us to operate for in." Graham Baxter

"Propertg conceived, sustainabititqabout[ongis termism whichis unambiguoustg lt's in good. evergbodg's interests companies that evergwhere should takea longtermview." CliveCrook

Corporate responsibititg that manycompaniesare

short-termist and needa longerterm outlook to do the right thing by their shareholders. Where companies short termist my view is are clear.That is just bad management. I If own a stakein a companyIwant the long term valueof that stakemaximisinsand that requires long termcalculationi be to made- aboveall in a resource-based industry. I hesitate call this 'social to responsibility.' me it falls squarelyin the To areaof good management.

applicationoftransparency the revenues to thatwe pay to governments developing in societies, we're absolutely supportive of transparency arestrongbackers the and of UKgovernment'sExtractiveIndustries Tiansparency Initiative (EITI). But does that meanthat everywhere operate we we want to reveal our commercially all sensitive information?No, it certainly doesn't.It meansthat in a specificcontext we favour transparency.

Q: Surely there are many NGOs. espeeially local NGOs. that support the EP approach? GB: You haveto be specificwhen you speak NGOs. Therearesomewith of whom we cando business a veryreal in and I might disagree and it's a very sense, therearesomewe cannot.If and you're clearabout what you meanby a awkwardareaforlarge multinationalcompanieslikeBP. responsibility helpsyou to makethe that 3" It'saroundthequestionofhow choices your engagements. I do in But D agreethat thereis an anti-capitalist movementout therewith whom we simplv i sentiment. truth is that The can'tdo business because we anti-business sentiment part ;. is fundamentallydisagree. of the CSR industry. I don't GC:The anti-capitalist movement a is questionwhat Graham says phenomenon isn't a Britishor a western It aboutthe needto build a secure, phenomenon American European long term platform for investment companies very much in the firing line are and profitablebusiness, especially aswell.And the CSRfad isn'ta British in the Third World. But a part of thing either-Arnerican annualreportsare howcompanieslike BP explain just as full of this stuff. I haveto saythat themselves the world, and the to the typicalwesterncompanydoesn't agendathat represents, comesfrom actuallyhavethe rationalethat I'vejust the demands madeby nonlistenedto from BP. governmental organisations (NGOs) and'civil society'as is it Q: As part of a commitrnent to called. And a largepart of this responsibitity. should [arge 'movement' is intrinsicallv. conrpaniesoperateto a slngle militantly anti-capitalist. standard rvsrtdwideT What I seeagainand again- and GC:This is a very difficult and I'm not accusing of thisby any BP complicatedarea.My own convictions means is business leaders pandering to don't guideme to a clearanswer. let But this sentimentand not merelymaking mejust respond with a coupleof points. long term profit-seeking decisions but First of all, for a companylike BP which actually trying to headoff that criticism. is often working in countrieswhere the It's partly a reputationexercise, know. I legalorder is insecure, wherethecountry But I feel there'sa real danger that if may not be democratically governed, companiesconcedetoo much, theywill where theremay be questionsover actuallyunderminetheir own position. whethergovernmentis clean,where the GB: I recognise what you're saying- and regulationsin force may commandno that is why we'vetried to makeclearwhat confidenceor may not be enforcedor may BP means responsibility. givea by To not be enforced consistently, does this specificexample the wholeareaof raisedifficultissues. those In transparency. general In circumstancesconcede I thereisn't much transparency a good thing is point in just saying'We follow the law' because buildstrust.In it and leavingit at that. You may well haveto the specific makedecisions yourself- and the for company thengoingtobe judged is alrnost thoughit is thegovernment. as Clearlythat meansyou haveto thinkvery hard about what sort of standards and rulesto impose yourselves. on Havingsaidthat,I don't think it's correct to arguethat it's unethicalto have differentstandards developing in Cl:Are you saying, Clive. thatthe eoncept of oorporate social responsibilit-g underniinesa

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countriesthan in the rich world. The clearest case would be labourstandards. Surelyit's not right to argueit is unethical to pay lower wagesin, say,India for any givenjob than one would pay in Britain or the US? lf onetook that viewit would condemnthe Third World to haveno foreign direct investment.What appliesto the labour market appliesacrossthe board.As unpalatableas it may be to acknowledge this,it doesn'tmake economicsense India to have for environmentalstandardsthat are as demanding the USA. Environmental as standards good in that one consumes are in a quantityrelated one'sincome. to Americans afford higherstandards. can GB: This is one of theareas wherewe disagree. chooses operate BP to consistently across world because is the it a globalcompany.It's simplyunethical to 'Well, say there'sno particularlaw in countryX aboutdumping stuff in the river sowe'll dump it.' That'snot acceptable. The realissue wherethe standards is are set.An easyanswerwould be to useUS standards becausethey're almostalways thehighest. betterway is to undertake A with local significantengagement regulators,civil societyand governments shouldbe set.This on wherestandards often resultsin voluntary initiativeswe'vegot severalexamples wherewe've gonebeyondthe legalrequirement, such astheVoluntaryPrinciples Security on and Human Rightswhich we've appliedin Colombia, Baku-Tbilisi-Ceyhan the pipeline and now Tangguhin Indonesia. O; Ho'w cer,traI is leaclershrp to corporate respcnslbiIity? GB: Leadership crucialin this,asin all is areas. Climatechange BP'sclassic is example.It was through fohn Browne's Stanfordspeech I 997 that the in companyclearlydefined its position on the issue climatechange. of The critical thing aboutour commitmentwasthat it in thenbecame embedded our actions. The speech, and the target that followed of a lOo/o reductionin our own emissions, gaveus the legitimacyto engagein the

publicdiscussion aboutthingslike emissions tradingand Kyoto. GC:My concems wider - that the are intellectual fight against anti-capitalism the mood is not beingwagedwith sufficient enthusiasm. That'swhereI'm comingfrom. I want to seechief executives engagemore eagerly thisbattleto defendcapitalism. in I'd like to see themstopapologising for capitalism bemoremilitantlyin favour. and If CEOsof multinationals aren'twillingto speakup for capitalism,then who on earth is?At themoment,thetruth is that not that manyof themare. O: Sustainabiliivis an ;rnportairt con+eptin 8F today. ls thls pandering to critics of +apitalism? GB: For us, sustainability meanshaving the capacityto endurefor the long term. It's aboutbeingherein another hundredyears. aboutbeingable It's to renewour assets. aboutfinding It's alternative sources ofenergyfor the future. It's aboutbeingableto sustain ourselves an employer- attracting as new generations. aboutbeing able It's to sustaincommunities wherethe companyoperates our mutual to advantage. And it's abouta flourishing environment if BP is operatingin an areawhere environment the dies,our business modelisn'tsustainable. CC: Properlyconceived, sustainability aboutlong-termism is which is unambiguouslygood. It's in everybody's interests that companies everyvhereshouldtake a long term view. But that doesn'tmeaneachindividual processshouldbe extendedindefinitely. rl,:Does sustainalrility !nvoive a+ting responsibly? GB: Yes,it does.To slightlyamend the original Milton Friedmanquote, I believethat the business business of is responsible business. That is the key to sustainability.