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Company Capsules

Brady Corporation
Cisco Systems, Inc.
Cummins, Inc.
Ecolab Inc.
Herman Miller, Inc.
Intel Corporation
Pitney Bowes, Inc.
Southwest Airlines Co.
St. Paul Travelers Companies, Inc. (The)
Starbucks Corporation
Timberland Company (The)

Brady Corporation (BRC)
Number of years on the list: 8
KLD Index Membership: Domini 400 Social^SM Index, KLD Broad Market Social^SM Index, KLD Dividend Achievers Social Index

Identification products manufacturer Brady Corporation’s corporate identity includes a strong commitment to environmental management, employee training, and support for education within the company’s home state of Milwaukee.

Brady has a global environmental and safety management system called the Critical Program Element scoring system. The system focuses on a set of 21 basic global requirements covering both safety and environmental areas, including compliance to local/country laws and regulations, as well as the plant management systems required to ensure a sustainable program. Any site with a score below 100% is required to publish and attain agreed-upon goals for the continuous improvement of the program. Site scores are tracked on a monthly basis and reported to key managers, and are reflected in job review and incentive plan reviews as appropriate to the location.

Since 1989 Brady has developed a series of innovative manufacturing and training programs increasing employee involvement. Its "cellular" manufacturing teams are self-directed at many facilities.

Brady has learning centers at all its facilities and an internal training department. The learning centers offer computer and audio-visual equipment, and programs on a wide range of self-improvement and manufacturing topics, including foreign language resources.

The company's on-site learning centers are available to employee family members on weekends. Brady also offers an Internet training program.

Brady has school partnerships with elementary and high schools, including the Clara Barton Elementary School, Glen Mills Middle School, and Milwaukee Hamilton High School. The company supports schools through donations and assistance with designing curricula. Brady also encourages employees to volunteer in schools and provides flexible schedules to accommodate volunteers.

Brady has worked on primary school reform in Milwaukee since 1990. The company’s Brady Academic All-Star program awards scholarships to graduating high school seniors for continuing education.

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Cisco Systems, Inc. (CSCO)
Number of years on the list: 8
KLD Index Membership: Domini 400 Social^SM Index, KLD Large Cap Social^SM Index, KLD Broad Market Social^SM Index, KLD Select Social Social^SM Index

Internet networking systems developer Cisco Systems considers its own employee network an organizational priority.

The company's CEO, John Chambers, is a strong advocate of teamwork and open communication among employees. Cisco holds a monthly breakfast meeting where Mr. Chambers is available to answer questions from employees. There is an open door policy for communication with management.

As of January 2006, Cisco granted stock options to virtually all employees upon hire. Many employees also received additional grants each year.

Cisco has an Injury and Illness Prevention Program through which the company manages its employee health and safety programs. The company reported that it offered a range of health and safety training courses through its Cisco University. It also had a program specifically for lab safety.

In FY 2005, Cisco had a lost time injury rate of 0.07 per 200,000 hours worked, up 17% from 0.06 in FY 2004, but down 61% from 0.18 in FY 2002. KLD considers this a notably low rate.

As for external networks, Cisco Systems focuses the majority of its charitable giving activities on educational initiatives. In October 2005, Cisco announced a $40 million commitment over three years for its new 21st Century Schools initiative in the Gulf Coast region. In the initiative's first phase, the company planned to devote $20 million to reconstruct and improve public schools in Mississippi following the devastation of Hurricane Katrina. The effort would include educational technology and professional development for teachers. In the second phase, Cisco planned to expand the program to other areas impacted by Katrina, including Louisiana.

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Cummins, Inc. (CMI)
Number of years on the list: 8
KLD Index Membership: Domini 400 Social^SM Index, KLD Large Cap Social^SM Index, KLD Broad Market Social^SM Index, KLD Select Social Social^SM Index

Engine manufacturer Cummins uses a continuous environmental improvement approach to the development of new products. In 2005 the company reported that more than half of its research and development spending over the last decade had been devoted to emissions reductions technologies. Cummins develops low emission, diesel-fueled engines for trucks and buses, as well as emission reducing after-treatment technologies such as catalytic converters and particle converters.

In March 2004, the company introduced its new ComfortGuard Auxiliary Power Unit system for trucks, RVs, and other large vehicles. The product allows the vehicle's heating and cooling systems to be run without running the engine, reducing emissions and saving fuel. The company told KLD that the product can reduce the fuel consumption of a typical long-haul truck fleet by 1,600 gallons of diesel fuel per truck each year.

In its 2004 sustainability report, the company reported that its power generation unit has produced a new low heat generator that operates on diluted methane gas that is emitted from land fills, sewerage pipes or coal seams. Methane gas is a contributor to climate change.

In 2003 Cummins reported that as part of its environmental mission it planned to develop a viable commercial product that emits zero particulate matter by 2010.

In December 2006, Cummins told KLD that in 2006 it committed to create a new global climate change policy that would guide the company in minimizing its impact on the environment. The policy would establish objectives that would help Cummins achieve annual goals for both facilities and products. The new policy would be developed in cooperation with Cummins' local entities and the company also planned to seek guidance from experts in the climate change field.

Cummins has a strong diversity record, notable in its industry. Two women and two minorities (for a total of three diverse members) serve on Cummins's nine-member board of directors.  There is one woman among Cummins's five principal senior line executives. Cummins has progressive and inclusive diversity policies and programs, including on-site childcare at several locations, diversity audits at the company’s plants, and programs to encourage contracting with small-, women- and minority-owned firms.

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Ecolab Inc. (ECL)
Number of years on the list: 8
KLD Index Membership: Domini 400 Social^SM Index, KLD Large Cap Social^SM Index, KLD Broad Market Social^SM Index, KLD Select Social Social^SM Index, KLD Dividend Achievers Social Index

Ecolab lives up to its name with a strong focus on environmental initiatives and products.  As of 2006, the company produced multiple products that are either manufactured with lower environmental impacts than their traditional counterparts, or are designed to have a positive impact on the environment.

Ecolab manufactures and distributes 14 cleaning products that are certified by Green Seal, a non-profit organization devoted to identifying environmentally beneficial products. The company reported that it was partnering with Green Seal to develop an environmentally sustainable cleaning standard for building service contractors.

Ecolab has an ongoing program to reduce overall product packaging, utilizing post-consumer recycled content plastic and incorporating package designs that consume less space in transport and landfills.
 
Ecolab has extensive training programs for its employees, including driver safety programs, manager training, and injury prevention.

In 2005, Ecolab told KLD that it had launched The Ecolab Talent Pipeline. This enterprise-wide methodology and tool set is aimed at helping employees take an active role in their own development. The training and individual tools focus on building the right skill sets to accomplish and achieve both employee and business goals.

The company reported that it focuses on and supports the career development of female employees through a relationship with the Mentium Organization, which provides a 1-year training and mentoring opportunity to women. Mentium 100 is a mentoring program for mid-level and junior-executive level female professionals that provides leadership development and professional skills. Other mentoring programs that are also offered through Ecolab's newly organized affinity groups include the Research & Development University, which provides focused training and development programs in the field of Project Management, Product Development, and Industry specific learning opportunities.

Other diversity benefits include progressive employment policies towards gay and lesbian employees, purchasing programs to encourage contracting with women- and minority-owned businesses, on-site or nearby childcare facilities, lactation programs, flextime, job sharing, and counseling for family issues through an employee assistance plan.

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Herman Miller, Inc. (MLHR)
Number of years on the list: 8
KLD Index Membership: Domini 400 Social^SM Index, KLD Broad Market Social^SM Index, KLD Global Climate 100^SM Index

In addition to its long history of product innovations (landing a large number of the company's pieces in the design collection of the Museum of Modern Art (MOMA) in New York), Herman Miller’s collection of employee programs and policies keeps the company at the forefront of its industry.

Herman Miller offers extensive family benefits for its employees. The company offers subsidies for childcare, financial support for community child care programs, and reimbursement for adoption expenses. Other benefits include child and elder care resource and referral services, flextime, compressed workweeks, telecommuting, and job sharing. The company is one of only a few in the U.S. to pay social workers to visit elderly relatives of employees and help them arrange needed services. The company also offers wellness programs that include fitness facilities and exercise classes.

The company has a profit sharing plan through which it contributes annually 5% base compensation to employees. In December 2006, the company told KLD that approximately 90% of its employees participated in the program. In FY 2006, Herman Miller contributed $19.25 million to its employees though the plan.

Herman Miller is a member of the Women's Business Enterprise Council (WBENC), an organization focused on increasing opportunities for women business owners, and the National Minority Supplier Development Council. In FY 2005, Herman Miller told KLD that approximately 13% of its total subcontracting for goods and services with women-owned and minority-owned companies.

Herman Miller’s commitment to the environmental sustainability and advocacy is included in the company's corporate values statement. Herman Miller maintains an environmental management system (EMS), with performance measured by internal and third-party audits at all certified facilities. The company rewards managers for achieving environmental objectives, and job reviews are based in part on achievement of environmental objectives.

Herman Miller maintains an Environmental Quality Action Team (EQAT) comprised of approximately 400 employees, in nine different sub teams, from different positions within the company. In December 2006 Herman Miller stated that it has the following environmental goals for 2020: zero landfilled waste, zero hazardous waste generated, zero air and water emissions from manufacturing, all company buildings constructed or renovated to a minimum LEED Silver certification, and the use of 100% green energy to meet its power needs.

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Intel Corporation (INTC)
Number of years on the list: 8
KLD Index Membership: Domini 400 Social^SM Index, KLD Large Cap Social^SM Index, KLD Broad Market Social^SM Index, KLD Select Social Social^SM Index

Intel Inside – Semiconductor chip-maker Intel Corporation’s strong record in employee relations, diversity, and environmental stewardship have earned it a spot on four of KLD’s Indexes, including the Domini 400 Social^SM Index, where the company has been a member since 1990.

Intel’s exceptional programs and policies for supporting diversity have earned it recognition from Working Mother’s 100 Best Workplaces for Working Mothers list, Careers and the disABLED magazine’s list of the companies with the best reputation for employing and accommodating the disabled, and a perfect score from the Human Rights Campaign’s Corporate Equality Index, recognizing companies with equal benefits and policies for gay, lesbian, bisexual and transgender individuals.

Intel offers 22 weeks of maternity leave, some with full pay, exceeding the federally required 12 unpaid weeks. Other benefits include phase-back for new mothers, lactation programs, resource and referral services, and a full time work/family benefits manager.

As of 2006, Intel had several on-site and near-site childcare centers serving its employees and offered free back-up care. The company reported that its childcare programs served about 1,800 children of employees during 2005.

During 2005, Intel reported that it expanded its elder care program, offering extensive online resources as well as seminars and training for employees with elder care responsibilities.

Intel has also instituted a women and minority contracting program through which the company placed 13% of its spending on supplies through women-and minority-owned businesses in FY 2005.

Intel has published an environment report since 1994, and in 2001 began publishing an annual Global Citizenship Report in accordance with the Global Reporting Initiative’s (GRI) guidelines.  Intel reported has an environmental management system in place company-wide, with performance measured by internal and third-party audits at all certified facilities. The company rewards managers for achieving environmental objectives, and job reviews are based in part on achievement of environmental objectives.

Intel also has several initiatives intended to reduce its direct and indirect greenhouse gas emissions, including programs to reduce its energy use per unit of production; purchase renewable energy; and improve the energy efficiency of its products.

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Pitney Bowes, Inc. (PBI)
Number of years on the list: 8
KLD Index Membership: Domini 400 Social^SM Index, KLD Large Cap Social^SM Index, KLD Broad Market Social^SM Index, KLD Dividend Achievers Social Index

Business and office equipment manufacturer Pitney Bowes strong record for diversity, environmental sustainability and support for affordable housing projects have earned the company a spot on the 100 Best Companies list for eight years straight. 

Pitney Bowes provides several work/life benefits for its employees, including eight weeks of paid maternity leave, which exceeds the federally mandated benefit of 12 weeks of unpaid leave. The company also provides financial assistance for adoption and offers dependent care resource and referral services. Pitney Bowes offers emergency back-up child and elder care as well. The company supports community childcare centers and is part of a coalition of companies working to provide slots at local day care centers for their employees. As of 2006, the company also offered pre-tax flexible spending accounts for dependent care and a prenatal care program.

As of 2006, Pitney Bowes offered flextime programs, part-time work, telecommuting, and compressed workweeks.

Two women and three minorities (for a total of four diverse members) serve on Pitney Bowes's 11-member board of directors; and one minority serves among the company’s four principal senior line executives. 

A 2006 survey by Careers & the disABLED magazine ranked Pitney Bowes 7th among 50 companies with the best reputation for employing and accommodating the disabled. In September 2005, Pitney Bowes was selected by AARP as one of the Best Employers for Workers over 50 years old.

In 2003, Pitney Bowes became one of the first participants in Atlanta-based Sterling Planet, Inc.'s Green America program. The Green America program allows companies to purchase tradable renewable energy certificates that represent the environmental benefits created when power is generated from renewable resources. For every unit of renewable electricity generated by a participating utility, an equivalent amount of renewable certificates is produced and can be traded among various "green power" market participants. Pitney Bowes committed to purchase an amount of certificates equivalent to 10% of its annual U.S. and U.K. home office consumption of electricity generated from conventional resources.

Pitney Bowes participates in several ongoing affordable housing public/private partnerships, particularly in Stamford, Connecticut, where its headquarters is located and where 20% of its employee base lives. The company has been praised by community activists for keeping its headquarters in a deteriorating neighborhood, and the company supports low-income and reduced-rate rental housing and low-interest financing for low-income families in the area. Employees are encouraged to volunteer in neighborhood revitalization programs such as the "Adopt A House" program, which repairs homes for the elderly or families in low-income areas.

The company is a founding member of the Enterprise Foundation, a group that funds affordable housing and other neighborhood development projects.

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Southwest Airlines Co. (LUV)
Number of years on the list: 8
KLD Index Membership: Domini 400 Social^SM Index, KLD Large Cap Social^SM Index, KLD Broad Market Social^SM Index, KLD Select Social Social^SM Index

Southwest Airlines extends its LUV to its employees in the form of strong retirement benefits, notably strong union relations, and innovative and inclusive policies and programs.

Southwest has a strong reputation as an employee-centered company with a nonhierarchical culture. The company emphasizes teamwork, has a recognition program called "Heroes of the Heart," which honors employee groups for their dedication to the airline; and has an ongoing employee training program. Southwest has never laid off any employees, in spite of the cyclical nature of the airline industry, though it does not have a formal no-layoff policy. Turnover at the company is also low.

Southwest Airlines has a profit sharing retirement plan for substantially all of its employees. The company contributes cash to the plan, and employees have six investment alternatives, including company stock. Southwest contributes 15% of net operating profits into the plan annually.  Southwest Airlines’ corporate compensation structure extends to CEO compensation, with a moderate compensation package for the company’s top employee.

Southwest Airlines also has a strong diversity record, with two women among Southwest's five principal senior line executives, and two women and one minority serving on Southwest's 11-member board of directors.

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The St. Paul Travelers Companies, Inc. (STA)
Number of years on the list: 8
KLD Index Membership: Domini 400 Social^SM Index, KLD Large Cap Social^SM Index, KLD Broad Market Social^SM Index, KLD Select Social Social^SM Index

Property and casualty insurance provider The St. Paul Travelers Companies, Inc. has a long-standing record for working to ensure the success of local non-profit organizations focusing on low income and underserved populations.

Since 1980, the company has a program that helps build the technical and administrative abilities of nonprofit organizations nationwide. The program helps these organizations to better manage their minimal resources for long-term success.

A large number of the company's education grants focus on urban and minority education. In FY 2005, education grants accounted for 28% of total giving.

The company's Leadership Initiatives in Neighborhoods Program provides grants to “neighborhood leaders.” The program gives leaders an opportunity to spend a year studying and traveling to increase their knowledge and skills for the work they do in the community.

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Starbucks Corporation (SBUX)
Number of years on the list: 8
KLD Index Membership: Domini 400 Social^SM Index, KLD Large Cap Social^SM Index, KLD Broad Market Social^SM Index, KLD Select Social Social^SM Index

Coffee giant Starbucks’ commitment to the environment may be stronger than its brewed coffee.

In 2006 the U.S. Environmental Protection Agency (EPA) listed Starbucks among the nation's top 25 purchasers of renewable energy through the EPA's Green Power Promotion program. As of February 2006, Starbucks was the second largest corporate purchaser of renewable energy among companies and fourth largest among companies, organizations, and government institutions. Starbucks purchased green power to meet 20% of its total energy needs.

In December 2005, Starbucks announced plans to purchase 150 million kWh of Green-e certified wind renewable energy certificates (RECs)--the equivalent of 20% of the annual electricity consumed by company-operated retail stores in the U.S. and Canada. This represented a significant increase from the company's initial goal, set in April 2005, of purchasing 5% of the energy for those stores from renewable sources.

In addition to its renewable energy purchasing, Starbucks has other initiatives to reduce its emissions and energy consumption. In 2006 Starbucks planned to launch Project Green BELT, an initiative through which it would use 20 of its stores to test and collect data on new equipment and operational processes. The goal is to identify the best opportunities to maximize energy and water efficiency. In 2005 the company began retrofitting emissions control equipment at its roasting facilities with more energy-efficient replacements.

The company has offered certified organic coffee since 2000. In FY 2005, Starbucks purchased 9.2 million pounds of certified organic coffee (3% of its total coffee purchased), up from 5.7 million pounds in FY 2004 and 1.7 million pounds in FY 2002. In December 2005, the company told KLD that many of the coffees it buys are grown using organic methods but are not certified as such.

In addition, during FY 2005, 66% of purchases made by the Starbuck's Tazo Tea subsidiary were organic ingredients, up from 58% the previous year. In July 2001, Starbucks began offering organic milk at all of its company-owned stores in the U.S. The company also offers organic soymilk at its stores.

Starbucks emphasizes the development of an inclusive workplace culture for employees (who it calls partners) that include a variety of programs designed to provide opportunities for employees to share ideas and feedback with senior management. An in-depth annual strategic planning process involves many layers of employees throughout the organization. The CEO holds monthly managers' meetings where employees share ideas, insights and ask questions. Management conducts in-market open forums or "town meetings." In addition, the company encourages employees to provide feedback through Mission Review cards. Starbucks also conducts biannual employee surveys.

The company also has a strong benefits program that included a company-wide stock option plan (Bean Stock) for full and part time U.S. employees who meet certain tenure and hours paid requirements.

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The Timberland Company (TBL)
Number of years on the list: 8
KLD Index Membership: Domini 400 Social^SM Index, KLD Broad Market Social^SM Index

Timberland’s “Make it Better” motto could as easily refer to the company’s commitment to the community through its innovative community giving and volunteer programs as to its products. 

Volunteering is a strong part of Timberland’s corporate culture, and the company has developed a notably generous employee volunteer program called Our Path of Service.  Through this program, Timberland allows all full-time and part-time employees up to 40 hours of paid time off annually to work on community service projects, half of which are chosen by the company and half by the employees.  In addition, the company closes its operations for one day a year for all employees to participate in company-sponsored volunteer projects.  Employees who have worked at Timberland for at least one year are eligible to apply to take a six-month, paid sabbatical to work with a nonprofit organization of their choice.

Timberland also encourages community service among its consumers through a national advertising campaign, and by dedicating sections of the company’s website to help consumers find information about volunteer opportunities in their communities. In addition, through Timberland's Community Builders Tour, Servapalooza, and its support of the City Year program, the company works with community leaders to identify community service programs and invites consumers and employees to work on the projects.

Timberland was a founding sponsor of City Year in 1989, and continues to be one of the organization’s largest corporate supporters.  City Year recruits young people to work on human service projects with city agencies, and was a model for President Clinton’s Americorps National Service Program.

Additionally, strong representation of women and minorities on the board of directors, progressive employment policies, on-site daycare for employees at its company headquarters, flexible working arrangements, and programs for working parents make this company an industry leader in diversity.

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