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    2010 Report on Global Citizenship

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    Ursula M. Burns

    Chie Executive Ofcer

    Good citizenship

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    12010 Report on Global Citizenship

    Dear Stakeholders:

    I write this letter at a time when most economies around

    the world are emerging rom the shadows o recession.Although the worst impacts o the economic downturnmay have begun to recede, some o the consequences

    are likely to have a long-term impact not all o it bad.

    Let me cite just one example in our own business. Inan eort to reduce costs over the past ew years, most

    nancial services companies pushed their customersto accept online statements as an alternative to paperstatements. Some went so ar as to charge or paper.

    That type o transactional printing a lot o it done by

    Xerox is not coming back.

    You might think thats o concern to us. In act, it is

    not. Our services business is very adept at helping ourcustomers move rom paper to digital documents. Itsa wonderul version o the triple bottom-line. It saves

    money or our customers. It makes money or Xerox.And it makes or a greener world or all o us.

    There are, o course, thousands o examples o this

    phenomenon this is being called the new normal.

    Its refected in our new positioning or the company Ready or Real Business. Businesses everywhere are

    ocused on nding new ways to do business that aremore cost eective, add greater customer value and aresustainable over the long haul.

    That same thinking and ocus have spilled over intothe way we think about our eorts in citizenship. Acase in point is our eorts to broaden and expand the

    number o young people entering the elds o science,technology, engineering and mathematics the STEM

    disciplines. Weve been at that or nearly hal a century.

    During the civil rights struggles o the 1960s, Xerox

    vowed to become part o the solution. We started a

    program to send our scientists and engineers into theschools o Rochester, New York, to teach science to

    inner-city students and mentor them as well.

    We established relationships with several engineering

    schools at historically black colleges. We investedconsiderable money in scholarship programs aimedat underrepresented minorities. We signed on as a

    ounding member o the National Action Committeeor Minorities in Engineering (NACME).

    Today, we still support all these programs and many

    more. We were a ounding member o FIRST, thewidely acclaimed national robotics competition orhigh schoolers. We were also a ounding member o

    the National Academy Foundations Academies o

    Engineering schools within schools in more than160 districts in disadvantaged areas that prepare high

    schoolers or college educations and careers in STEM.Its no accident that today we have a very diversetechnical and engineering community within Xerox.

    I am a good example. I came to Xerox as a summerengineering intern rom Brooklyn Polytechnic Institute,was hired by Xerox, sent to Columbia University

    or a Masters degree in engineering and never letthe company.

    s good business.

    The more we do, the more we see thepotential o what is possible. We are notdiscouraged by the enormity o whatlies ahead; we are motivated by it.

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    Im sure that Xeroxs demonstrated and enduringcommitment on this issue is why President Obama asked

    me earlier this year to help galvanize the U.S. businesscommunity to increase the number o young people whopursue STEM degrees and careers. More than a hundredmajor corporations have signed on to the eort. Its

    called Change the Equation and we hope through oureorts well do just that shit the education dynamicrom a declining interest in STEM to generating more

    active participation among students and educators.

    Now heres the new normal rub. I sense a strong levelo both rustration and commitment. Were rustrated

    because all o our companies are doing a lot in thisarea and can point to individual successes, yet thenational needle has barely budged. Were committed

    to changing that because the uture o our companiesand our country depends on it.

    The brutal reality is that despite all the eort and localsuccesses, we are alling urther and urther behindat the national level. In order to maintain Americasleadership in the global economy, we need a constant

    stream o innovation and invention. And that starts

    with mentoring and preparing a new generation oinnovators. Its an easy position or Xerox to support.

    Investments in innovation and in STEM have shapedour company or decades and will infuence our utureor many years to come. So, we were quick to put our

    hand up in supporting these objectives o Changethe Equation:

    Improving STEM teaching at all grade levels, with alarger and more diverse cadre o highly capable and

    inspirational STEM teachers.

    Inspiring student appreciation and excitementor STEM programs and careers to increase success

    and achievement in school and opportunities ora collegiate education, especially among emalesand students o color.

    Achieving a sustained commitment to improvingSTEM education rom business leaders, governmentocials, STEM educators and other stakeholders

    through innovation, communication, collaborationand data-based decision making.

    The devil, o course, is always in the details in

    this case how we measure progress. Identiyingsustainable, achievable and meaningul metrics isimportant work that has already begun. It wont be

    easy, but it is essential.

    Within Xerox, that is also an ongoing challenge. How dowe identiy the right set o metrics and then measure

    against them to assure that good intentions are beingtranslated into quantiable results? Its not as easyas you might think. Take our worldwide supply chain

    and its impact on sustainability. There are a lot o

    expectations and regulations that arent always aligned.Customers and shareholders oten have competing

    interests. The United States and a variety o countries inwhich we do business are not always on the same page.Trying to do the right thing by all these stakeholders

    can have unintended consequences that result in thewrong thing.

    This is one o our major challenges where our

    stakeholders and Xerox want to be even moreresponsive to the quest or a greener world and just

    societies. Translating these loty aims into real businessmetrics will take tenacity, wisdom and courage.

    We do some wonderul things with hard data to supportour accomplishments particularly in areas that

    impact the environment. You will see some o them inthis report. Yet the more we do, the more we see thepotential o what is possible. We are not discouraged by

    the enormity o what lies ahead; we are motivated byit. All o us recognize that we are on a journey with noend. As good as we are today, we must and we will be

    even better tomorrow.

    We are part o an ongoing experiment toprove that good citizenship and good results

    are not only compatible but synergistic in good times and in challenging times.

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    Leveraging our resources to make our world betterimproves the quality o lie or our people and the

    economic climate or our customers.

    We are a much bigger company today. We oer amuch broader portolio o services and technology.

    We have signicantly expanded our global reach. Butcertain things remain the same. Xerox people remainpassionate about honoring the legacy we have been

    given and passing it on even stronger to those who willollow us. You can be sure we will not rest on our laurels.We believe we are part o an ongoing experiment toprove that good citizenship and good results are not

    only compatible but synergistic in good times and inchallenging times.

    Ursula M. BurnsChie Executive Ocer

    32010 Report on Global Citizenship

    Id be remiss i I didnt mention that Xerox got alot bigger and a lot stronger early in 2010 with the

    acquisition o Aliated Computer Services. ACS bringswith it more than $6 billion in revenue, more thandoubles our employee base and adds knowledgeand expertise that make the new Xerox the worlds

    leading enterprise or business process and documentmanagement. It also brings us new responsibilities thatwe are eager to embrace. This report touches on ACSs

    citizenship activities. With ACS now a Xerox Company,we know our values will permeate throughout theACS workorce and stimulate even more community

    engagement and responsibility among our combined

    workorce that is now 133,000 people strong.

    Although we take a lot o pride in our record on

    citizenship, we know that we owe a lot to Xerox peoplewho have gone beore us. They paved the way and builta culture in which good citizenship is integrated into the

    way we conduct ourselves today. Even in the midst oeconomic stress and uncertainty, Xerox people continueto volunteer in their communities under company-

    sponsored programs. The Xerox Foundation continuesto invest in making our world a little better. And Xerox

    people lend their expertise to a myriad o boards andadvisory councils in the non-prot world. Im in awe ohow seriously they take our collective responsibility togive back.

    You will see that philosophy running throughout thisreport. Its organized around ve themes that capturethe essence o our citizenship eorts:

    Conducting our business with integrity andtransparency builds credibility and attracts investors.

    Aligning our resources around customer need providesthe revenue stream that enables investment in

    innovation and uture growth.

    Nurturing a greener world through sustainableinnovation and development saves money, creates

    value and helps develop new markets.

    Creating a great workplace or our people strengthensour competitiveness.

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    Progress Report

    Activity Highlights

    Percentage o employees who completed Code o Conduct Trainingand/or acknowledgement

    Training is mandatory or new employees.

    An Ethical BusinessIn todays worldwide marketplace, risks abound. Governance imparts guidelines andaccountability. Some may view it as restrictive. But at Xerox, we consider it empowering. Weare in business or the long term and being the best global citizen is critical to our success.

    The Customer ExperienceHow does Xerox address customers needs? Actively make that proactively. Ourorward-looking initiatives protect privacy, strengthen saety and security, and enhanceaccess to our products, services and people.

    Activity Highlights

    Broadened product portolio: product launches Xerox oers the industrys broadest portolio o documenttechnology and services; more than 115 products launched in thelast our years. Xerox won more than 350 awards globally in 2009in recognition o innovative technology, reliable products and aleading services oering.

    Number o patents awarded to Xerox group; includes Fuji Xerox Xeroxs joint venture in Japan, Fuji Xerox Co. Ltd., received 425 U.S.patents, an increase o 28 percent over 2008. When taken together,the Xerox group garnered 1,131 patents total. That accomplishmentpushes Xerox into the No. 12 spot worldwide. Fuji Xerox patentswere not included in the ranking compiled by U.S. patent analysisrm IFI Patent Intelligence.

    Xerox and Fuji Xerox collectively invest about $1.5 billion annually inresearch, development and engineering.

    Customer service Xerox has been recognized by J.D. Power and Associates orproviding An Outstanding Customer Service Experience. This is the

    ourth consecutive year the company has achieved the esteemedcertication or Excellence in Technology Service and Support.

    Xerox Services was awarded the Hall o Fame STAR Award rom theTSIA or Lietime Achievement or Service Excellence and the 2009Aberdeen Industry Achievement Award or Service Excellence.

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    52010 Report on Global Citizenship

    2009 2008 2007 2006

    94% 86% 81% 92%

    2009 2008 2007 2006

    34 29 41 14

    1,131 940 901 813

    Achieved certication in theJ.D. Power and Associates

    program or CertiedTechnology Service and Support.

    Xerox is the leader in DocumentProcess Outsourcing accordingto the 2009 Black Book oOutsourcing, an annual guidethat evaluates the costs andbenets o outsourcing. Theyearly ranking o outsourcingcompanies is based on surveyresponses rom more than24,000 executives worldwide.

    Achieved certication in theJ.D. Power and Associates

    program or CertiedTechnology Service and Support.

    Achieved certication in theJ.D. Power and Associates

    program or CertiedTechnology Service and Support.

    Achieved certication in theJ.D. Power and Associates

    program or CertiedTechnology Service and Support.

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    A Greener WorldAt Xerox, a greener world is not a cost o doing business. Its our way o doing business.

    Activity Highlights

    Environmental management Environmental perormance reporting now occurring at all majorXerox acilities, whether manuacturing, oce or warehouse.

    Recycle rate (non-hazardous solid waste) Our EA toner plant in Webster, New York, achieved waste-reestatus (zero waste to landll).

    We established a corporate waste-ree goal or acilities toincrease recycle/reuse rate to 97% by 2012.

    Water consumption The environmental impacts o water use are monitored andmanaged throughout our worldwide operations.

    The EA toner manuacturing process implemented changesthat signicantly reduced water consumption.

    Energy consumption Energy consumption down 21% rom 2002.

    Greenhouse gas emissions Greenhouse gas emissions down 31% rom 2002, the result o

    improved energy eciency, new technologies and improvedenergy management practices.

    We are in the process o reviewing our long-term objectivesand path to progress to account or the addition o ACS people,acilities and work practices in our enterprise.

    Products launched achieving the ENERGY STAR rating(eligible products)

    92% o new product launches in 2009 met the July 2009 rigorousENERGY STAR requirements. This includes the Xerox 700 DigitalColor Press, a light production product, which is one o the astestcolor products to achieve ENERGY STAR rating.

    Waste diverted rom landlls through equipment and suppliesreturn, reuse and recycling programs

    Xerox partners with a global recycler to introduce a close theloop program. The partnership brings two environmentallyconscious companies together to collaborate on our new recycling

    program. It gives customers more choices in returning usedimaging supplies like toner bottles, cartridges, users andtoner waste.

    Progress Report

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    72010 Report on Global Citizenship

    2009 2008 2007 2006

    The new Xerox EA tonermanuacturing sites achieveISO 14001 certication

    All manuacturing acilitiescertied to ISO 14001

    The ISO 14001 approachhas been extended to U.S.warehouse operations

    All manuacturing acilitiescertied to ISO 14001

    Two acilities namedmembers o U.S. EPA NationalEnvironmental PerormanceTrack, bringing total to ve

    All manuacturing acilitiescertied to ISO 14001

    Three acilities namedmembers o U.S. EPANational EnvironmentalPerormance Track

    93%, up 1% rom 2008 92%, unchanged rom 2007 92% 91%, unchanged rom 2005

    Down 7% rom 2008;Down 26% rom 2002

    Down 15% rom 2007 Up 2% rom 2006 Down 3% rom 2005

    Down 8% rom 2008 Up 2% rom 2007 Down 2% rom 2006 Down 13% rom 2005

    Down 11% rom 2008;

    Down 31% rom 2002

    Down 20% rom 2002 Down 21% rom 2002 Down 11% rom 2005;

    Down 18% rom 2002

    92%, up 12% rom 2008 80% 80%, down 20% rom 2006due to new ENERGY STARspecication

    100%, unchanged rom 2005

    2.3 billion pounds since 1991 2.2 billion pounds since 1991 2.1 billion pounds since 1991 2.0 billion pounds since 1991

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    A Great WorkplaceThere would be no Xerox without our people. We value our employees and appreciate thecontributions and diversity they bring to our organization. In turn, we oer a range oopportunities and programs to support their goals and help them achieve work/lie balance.

    Activity Highlights

    Employee Survey avorable response rate to: My workgives me a eeling o personal accomplishment.

    We created a proprietary Voice o the Employee (VOE) Survey thatallows managers to create a personal pulse survey to assess theiremployees satisaction on their work, workgroup, manager, andon Xerox as a whole. Each manager receives a personalized report.In addition, we capture trend data and employee ideas. Since2009, weve used this pulse survey process in 37 countries using

    25 native languages.

    Sentinel Satisaction Assurance System The Sentinel Customer Satisaction Assurance System, a Xeroxproprietary Web-based polling/routing/reporting system, linksemployee inquiries or comments through the intranet withappropriate Xerox contacts to identiy and track any comment,suggestion or unresolved problem or action.

    For example, in a large organization it can be dicult to knowwhom to contact with concerns or questions. Sentinel helps toclose this communication gap by providing a link on our intranetin the U.S. and Brazil. Employees can submit questions or concernwhich will be routed to the appropriate management teams orresolution. Plans are in place to expand the process globally.

    Diversity percentage o women employees Recognized as one o Human Rights Campaigns 2009 BestPlaces to Work

    Xerox Research Centre Canada named one o the Top 10 PlacesWhere Employees Thrive by Your Workplace magazine

    Diversity percentage o minority employees No. 35 in DiversityIncTop 50NAFE Top Companies or Executive Women list or 2010 Named to iSixSigmas list o Best Places to Work or Six Sigma

    Proessionals. Xerox ranked 7th and was noted or its supportiveculture or Lean Six Sigma, talent and training. iSixSigma.comand iSixSigma Magazine sponsored the list, which received morethan 50 nominations.

    IDGs Computerworld named Xerox a 2010 Best Places to Workin IT or organizations that challenge their IT sta while

    providing great benets and compensationNamed as one o Most Admired or HR companies by Human

    Resource Executive magazine, which is based on Fortunemagazines Most Admired Companies list. The list ocuseson management quality, product/service quality, peoplemanagement and innovation.

    Xerox Germany received the certication Audit beruundamilie(Audit Job and Family) supported by the German governmentdepartment or support o amily, senior citizens, women and youth

    Progress Report

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    92010 Report on Global Citizenship

    2009 2008 2007 2006

    77% No surveys conducted 80% 79%

    4,106 issues received androuted or resolution

    4,219 issues received androuted or resolutionThe increase is a result oincreased global adoptiono the tool

    320 issues received androuted or resolution

    Numbers not available

    31.8% 32.9% 31.5% 32.3%

    30.1% 22.6% 29.5% 29.3%

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    Progress Report

    Activity Highlights

    The Xerox Foundation giving total Our 2009 giving was invested in 2,823 non-prot organizations inthe ollowing ocus areas:

    Education and Workorce Preparedness

    Science and Technology Environmental Aairs Employee and Community Aairs United Way Cultural Aairs National Aairs Matching Gits

    Xerox Community Involvement Program (XCIP) number oU.S. employees who participated in community activities

    The Xerox International Cycling Team participated in theAmerican Diabetes Associations Tour de Cure in June. Theteam o Xerox employees, retirees and amily members raisedover $12,000 beore the start o the event.

    As a ounding partner o United Way Chile, Xerox people in that

    country responded to the February 2010 earthquake; they assistedin building two nursery schools, which today welcome 200 childrenwho come rom some earthquake-aected amilies.

    Activity Highlights

    Employee injury rates: Total Recordable Incident rate Improved saety management processes or the planning andtracking o injury prevention activities.

    Employee injury rates: Days Away From Work case rate Improved driver saety training delivered or Service Techniciansto reduce motor vehicle accidents.

    Our CommunitiesOur philanthropy and volunteer programs provide channels or us to give back andcreate positive and lasting impacts in the communities where we work and live.

    A Great Workplace (contd)

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    112010 Report on Global Citizenship

    2009 2008 2007 2006

    $12.0 million $12.6 million $12.5 million $12.0 million

    8,650 Employees 648 Projects $978,018

    9,893 Employees 604 Projects $909,000

    9,075 Employees 9,303 Employees

    2009 2008 2007 2006

    Down 7% rom 2008 Down 2% rom 2007 Down 12% rom 2006 Down 2% rom 2005

    Down 4% rom 2008 Up 6% rom 2007 Down 11% rom 2006 Down 2% rom 2005

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    Preserve Biodiversity and the Worlds Forests

    Strategic Goal

    Sustainable paper cycleObjective Source paper rom companies committed to sound EH&S

    practices and sustainable orest management. Certiy Xerox-branded paper to standards or sustainable orest

    management. Advance sustainable orest management tools and approaches

    among Xerox suppliers.

    Metric/Target Supplier adherence to Xerox requirements or sustainable orest

    management. Goal is 100% by volume.ObtainForestStewardshipCouncil(FSC)andProgrammefor

    the Endorsement o Forest Certication (PEFC) Chain o Custodycertications or Xerox operations in 2007 and maintain in2008/9 to enable launch o rst FSC- and PEFC-certied papersin 2007, increasing percentage in portolio in 2008 and beyond.

    Successfulthree-year,$1millionpartnershipwithThe Nature Conservancy.

    2009 Progress More than 90% o Xerox paper by volume met our requirements.Maintainedchainofcustodycerticationasplanned,

    expanding portolio o FSC- and PEFC-certied papers.Xerox/TheNatureConservancypartnership(20072009)

    was successully concluded. In early 2010, Xerox renewed thepartnership or a our-year period to continue the eort.

    Preserve Clean Air and Water

    Strategic Goals

    Zero persistent, bioaccumulative, toxic (PBT) ootprint; water-neutral;zero hazardous air pollutants

    Objective Reduce PBT ootprint throughout the supply chain.

    Metric/Target Xeroxs ISO 14001-certied acilities have established goals to

    reduce hazardous materials as well as energy and waste.LifeCycleEvaluation(LCE)toprioritizeareasforfuturetechnology

    development.ReduceuseofPBTsinXeroxsupplychainthroughadherence

    to Xeroxs chemical use standards or all suppliers and EICCrequirements or our 50 key global suppliers, representing 90%o spend by 2012.

    2009 Progress

    Worldwidehazardouswastevolumesdecreased4%from2008and 96% was benecially managed.

    XeroxsISO14001certiedfacilitieshaveidentiedanyPBTs that may be present in their acilities or processes or acility main-tenance. In the ew instances where PBTs have been identied, theacilities are in the process o establishing goals to reduce their use.

    AspartofEICC,ontracktocompletionofauditsonmajor high- spend/strategic suppliers in high-risk regions; in conjunction,ollow-up audits also conducted to ensure suppliers are working

    toward compliance with the EICC code.CompletedlifecycleevaluationofColorQube9200SeriesMFDs

    compared to a laser printer, and is using LCE to inorm uturedirection o R&D in products and materials.

    Protect Our Climate

    Strategic Goal

    Carbon-neutral

    Objective Reduce total company-wide greenhouse gas (GHG) emissions.Helpcustomersmeettheirprintingneedswiththemost

    energy-ecient document management solutions.

    Metric/Target Reduce total GHGs by 25% rom 2002 to 2012.ObtainENERGYSTAR rating or 90% or more o new product

    launches by 2010.

    2009 Progress GHG emissions down 31% rom 2002 to 2009.92%ofeligiblenewproductslaunchedmetthe2009

    ENERGY STAR (version 1.1) standard.

    Waste Prevention and Management

    Strategic Goal

    Waste-ree acilities and products

    Objective Reduce material ootprint o Xerox equipment and supplies.Achievezerowastetolandllformajorfacilitiesworldwide.

    Metric/Target Continued investment in cartridge-ree solid ink technology

    that produces up to 90% less waste rom supplies and packagingthan conventional oce color printers.

    Maintain>90%reuseorrecyclingofrecoveredXeroxequipmentand supplies oerings.

    ExpandISO14001-conformingenvironmentalmanagementsystem to Xerox U.S. supplies warehouses in 2008 and additionaloperations and geographies in 2009 to 2011.

    2009 ProgressIn2009,launchedXeroxsColorQubemultifunctionprinter,

    expanding solid inks environmental benets to the mid-leveloce market.

    Two U.S. Product Distribution Centers located in Caliornia andOhio achieved ISO 14001 certication in early 2010.

    Webster EA toner plant achieved Waste-Free status (zero wasteto landll).

    Achieved>90%reuseorrecyclerateforreturnedequipmentand supplies.

    Worldwide Waste-Free goal or acilities established (increaserecycle/reuse rate to 97% by 2012).

    A Greener World

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    This report is just a snapshot o Xeroxs comprehensivecitizenship activities. The report itsel is printed inways that minimize its impact on the environment.To keep paper use at a minimum, weve expandedwww.xerox.com/corporate-citizenship/2010 to providethe ull picture o our global initiatives.

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    2010 Xerox Corporation. All rights reserved. Xerox, the sphere o connectivity design, ColorCube, iGen4, and WorkCentre are trademarkso, or licensed to Xerox Corporation in the United States and/or other countries.

    This report was printed on a Xerox iGen4 Press on uncoated Xerox Planet 20 Cover which contains 20% PCW and is FSC certifed. The Text isXerox Business Recycled and contains 30% PCW.

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