2004 Motorola Global Corporate Citizenship Report
Transcription
2004 Motorola Global Corporate Citizenship Report
2004 Motorola Global Corporate Citizenship Report FOR THE FIRST TIME I CAN TRAVEL THE WORLD WITHOUT LEAVING MY VILLAGE - FOR THE FIRST TIME KNOWLEDGE IS IN MY HANDS FOR THE FIRST TIME EVERYONE IS MY NEIGHBOR BRIDGING THE DIGITAL DIVIDE Because seamless mobility empowers people, the world is smaller and more personal than ever. That means we can live our lives, connecting with family and friends, accessing information, creating security, trading ideas and services, finding everyone and everything, whenever we want. Our reach is long and effortless. With empowerment comes responsibility. Action has impact. Every decision can help or might impede. Our community is all around the globe. This report shares our beliefs, principles and policies on corporate citizenship issues. It reviews Motorola’s performance, celebrates our achievements and acknowledges our challenges. Our goal: as we empower the person with our products, we also enable the world. Motorola’s vision of seamless mobility enables smarter, faster, more cost-effective and more flexible communication. As the world becomes more connected, corporate actions become even more important. Committed to responsible behavior, we evaluate our environmental and social policies and performance – and take appropriate action. We provide information and help in times of crisis. And we empower our employees to lead within their communities, using Motorola’s resources and knowledge to improve and inspire. 2004 Recognition Motorola was selected a member of the Dow Jones Sustainability Indexes. Launched in 1999, these global indexes track the financial performance of the leading sustainability-driven companies worldwide. They provide asset managers with reliable and objective benchmarks to manage sustainability portfolios. The Citizens Index rated Motorola a top 10 corporate citizen for efforts to improve the environment. The index consists of 300 large-cap companies chosen by Citizens Advisers for industry representation, financial soundness and corporate citizenship. 1 An independent, Munich-based rating agency, oekom research AG, ranked Motorola first in responsible citizenship among the world’s 10 largest manufacturers of IT/communications equipment. Using the corporate responsibility ratings based on the Frankfurt-Hohenheim Guidelines, oekom assessed corporate responsibility toward social, societal, cultural and environmental sustainability. Motorola led the category with an overall grade of B. Motorola, Inc. Corporate Citizenship Business Principles Motorola products and technologies benefit society by making life better for people around the world. We operate ethically, protect the environment and support our communities. These principles guide our actions: Innovative Products, Customer Delight and Quality We strive to provide innovative and safe products and solutions with quality and performance that meet or exceed our customers’ expectations. Ethics and Transparency We strive to operate with transparency and according to high standards of ethics and law in directing and managing the company for all stakeholders. Environmental Quality We strive to foster sustainable use of the earth’s resources in our products and operations. We strive to design environmentally conscious products. Diversity and Inclusion We strive to create an engaged workforce that can contribute its full potential in an inclusive work environment. Safe and Healthy Workforce In cooperation with our employees, we work to maintain a safe and healthy workplace and support employees’ work-life balance. Economic Opportunities and Growth We work to create wealth, economic opportunities and growth in regions where we do business, through our products, services, relationships and operations. Supplier Relationships We set expectations for our suppliers and work with them toward conducting their operations in compliance with applicable laws and accepted standards of fairness and human decency. We strive to create a diverse supplier base. Community Support We support educational, environmental and social needs in the communities in which we operate. Shareholder Value We seek to achieve strong financial results and long-term success through sustained profitable growth, technological innovation and market leadership. 2 Table of Contents 01 16 Our Vision EHS 2004 Performance 02 18 Corporate Citizenship Business Principles Environment Issue Responses 03 The World We Share 20 Table of Contents 22 04 Social Issues Financial Highlights 24 05 Product Stewardship Manufacturing Facilities/ Corporate Overview 26 Giving Back 06 CEO Ed Zander on Corporate Citizenship 28 08 30 Products That Benefit Society Supporting the Community 10 32 Supply Chain Diversity 12 34 Governance Health and Wellness 14 36 Environment, Health and Safety (EHS) Committed to Our People Investing in Our Future 37 Awards This report covers the calendar year 2004 and was developed with consideration given to the Global Reporting Initiative (GRI) Sustainability Reporting Guidelines and GRI Telecommunications Sector Supplement. 02 03 04 05 Our GRI content index is shown here. 06 07 10 11 www.globalreporting.org/guidelines/2002.asp 1.1 2.11 2.8, EC1, EC2 2.1, 2.2, 2.4, 2.5, 2.13, LA1 1.2 1.2 3.16, HR2, HR3 3.16, HR2, HR3, SO4 12 13 14 16 17 18 19 22 23 3.72, 2.9, 3.1, 3.101 3.14, 3.20 EN5, EN8, EN11 2.14, EN3, LA7 EN9 EN16 PR1 HR1, HR4, HR5, HR6, HR7, PR3 24 25 26 32 33 34 35 36 37 BC 3.16 3.16 EC10 2,11 LA10 LA10 LA12 LA6 LA12, LA17 SO4 2.10, 2.22 Financial Highlights Earnings from continuing operations increased 136% while sales grew 35% from the previous year. Financial Highlights 2004 2003 $ 31,323 $ 23,155 Operating earnings 3,132 1,273 Earnings from continuing operations before income taxes 3,252 1,376 dollars in millions, except per share amounts or as noted Net sales Earnings from continuing operations 2,191 928 Loss from discontinued operations, net of tax (659) (35) Net earnings 1,532 893 Diluted earnings per common share 0.64 0.38 R&D expenditures 3,060 2,799 494 344 68,000 88,000 17% Global Telecom Solutions 19% Europe 54% Personal Communications 15% Commercial, Government and Industrial Solutions 9% China 9% Latin America 47% United States 7% Asia, excluding China and Japan 9% Integrated Electronic Systems 1% Other Products 3% Japan 6% Other Markets Capital expenditures Year-end employment* 7% Broadband Communications 2004 Consolidated Net Sales by Business Segment 2004 Market Sales by Region *Employment decrease in 2004 primarily reflects the impact of the spin-off of Freescale Semiconductor. 35,000 4,000 1.0 3,000 0.5 2,000 30,000 1,000 0.0 0 -0.5 -1,000 25,000 -2,000 -1.0 -3,000 -1.5 -4,000 20,000 00 01 02 03 -5,000 04 -2.0 00 01 02 03 04 00 01 02 03 Net Sales Operating Earnings (Loss) Diluted Earnings (Loss) dollars in millions dollars in millions dollars per common share 4 04 Manufacturing Facilities 2004 Flensburg, Germany Berlin, Germany Swindon, England Munich, Germany Angers, France Northbrook, Illinois, U.S. Schaumburg, Illinois, U.S. Elma, New York, U.S. Tianjin, China (2) Chandler, Arizona, U.S. Tempe, Arizona, U.S. Fort Worth, Texas, U.S. Nogales, Mexico Seguin, Texas, U.S. Sonora, Mexico Seoul, Korea Arad, Israel Plantation, Florida, U.S. Taipei, Taiwan Penang, Malaysia Ang Mo Kio, Singapore Jaguariúna, Brazil Motorola operates 320 facilities in 73 countries Motorola, a Fortune 50 communications leader, provides seamless mobility products and solutions across broadband, embedded systems and wireless networks. Employees by Region as of December 2004 North America Asia-Pacific Europe, Middle East and Africa Latin America 45% 29% 17% 9% 2005 Business Units Connected Home Solutions Mobile Devices Provides a scalable, integrated end-to-end system for the delivery of broadband services that keeps consumers informed, entertained and connected. This technology enables network operators and retailers to create and execute on new business opportunities by providing innovative products and services to the home. Offers market-changing icons of personal technology – transforming the device formerly known as the cell phone into a universal remote control for life. A leader in multi-mode, multi-band communications products and technologies, Mobile Devices designs, manufactures, sells and services wireless subscriber and server equipment for cellular systems, portable energy storage products and systems, servers and software solutions and related software and accessory products. Government & Enterprise Mobility Solutions Provides integrated radio communications and information solutions, with more than 65 years of experience in meeting the mission-critical requirements of public safety, government and enterprise customers worldwide. This business unit designs, manufactures and sells automotive and industrial electronics systems and telematics systems that enable automated roadside assistance, navigation and advanced safety features for automobiles. 5 Networks Delivers cellular, wireless broadband and wireline access technologies, with recognized leadership in integrating core networks through wireless IP, wireless softswitch and IP multimedia subsystems. This business is advancing seamless mobility with innovative technology solutions and an expanded portfolio delivering support, integration, applications and management. Motorola, Inc. Q. What is your assessment of 2004, your first year as Motorola’s CEO? CEO Ed Zander on Corporate Citizenship EZ. It’s been a truly great year. Through the innovation and hard work of our employees, Motorola launched some fabulous products like our iconic RAZR mobile phone. We increased sales by 35 percent and dramatically improved shareholder value. We sharpened our focus, improved operating efficiency and aligned the organization with our vision of “seamless mobility” to give us flexibility and the speed to capitalize on new opportunities. The year was full of dramatic news stories, too, including hurricanes, earthquakes, the tsunami and other heartbreaking tragedies. I was moved by how personal all the stories became. Motorola has employees, customers and suppliers all over the world. Almost every story had some impact on us and brought home more than ever how connected we all are. Our employees’ response to these tragedies – time, equipment, money – really demonstrated the commitment and compassion they share. Q. Is there a relationship between “seamless mobility” and “global corporate citizenship”? EZ. Absolutely. Our vision of “seamless mobility” will empower the individual and help better the world. For example, our wireless Canopy™ product delivers voice and data communication at a very low cost in rural and urban environments. It is being deployed in many developed and emerging 6 countries to improve education, health services, commerce and safety. We are introducing a very low cost mobile phone for developing countries so that millions of lower-income people can create business opportunities and live better through Motorola technology. Seamless mobility will help make people’s need for communication and information cheaper, more integrated, more fun and more accessible throughout the world. Q. Is corporate citizenship important to you as you lead Motorola? EZ. Large global companies like Motorola have a big impact on society in many ways including the environment, human rights and business conduct. My goal is to continue and strengthen Motorola’s legacy of positive contributions. We have established nine business principles to guide our activities, including our products and services and how we deal with employees, suppliers and our communities. I believe that a company’s values say as much about its worth as its balance sheet. Environmental responsibility, supporting our communities, a strict code of ethics and business conduct, encouraging these values in our supply chain and exceeding our customers’ expectations all make us a stronger and more competitive company. By delivering on our corporate citizenship business principles, I believe we create wealth for our employees, shareholders, customers and society in general. Edward J. Zander (right), Motorola chairman and CEO, accepted the U.S. government’s 2004 Award for Corporate Excellence from Secretary of State Colin Powell Q. What do you consider Motorola’s most pressing citizenship issues? EZ. First, we must strengthen diversity and inclusiveness. Broader diversity builds our talent pool and incubates great ideas. We recently established a goal to substantially increase the number of minority and women executives over the next two years. We also want to expand our minority and women in our technical ranks. Second, we must share our values and expectations with our supply chain. To stay competitive, we increasingly partner with suppliers from many parts of the world. We must continue to ensure they fully understand our expectations toward the environment and their workers. We have established objectives for our suppliers and work to ensure compliance. With a supply chain as big as ours, this is a very challenging task. Third, products we create are found all over the world and function for many years. We want those products to have minimal impact on the environment. So, we take our product stewardship responsibilities very seriously. Whether designing a new device to be environmentally friendly or determining the most effective strategy for end-of-life management, we want to continue to drive new ideas. For example, people throughout Motorola are implementing programs to meet the new product environmental laws being implemented across Europe and several other nations. Q. Motorola received the 2004 Award for Corporate Excellence from the U.S. Department of State for the company’s citizenship activities in Brazil. What’s the significance of this award? EZ. Motorola Brazil exemplifies our belief in the importance of engaging in our communities through volunteering, recycling and time and money investments. It was great to have the Brazil team’s work singled out by such an important government body. Our Malaysia team was honored with the same award in 2000, making Motorola the only company to have received the award twice. 7 Motorola, Inc. Products That Benefit Society From the very first car radios we made back in 1930, Motorola has conceived, designed and produced products that make life better. Innovation is in the very DNA of our company. New products and solutions constantly emerge as we leverage the promise of seamless mobility and connect people to each other and the world. Bridging the Digital Divide Our breakthrough Canopy™ product delivers high-speed, low-cost Internet access in geographic areas where cable modem and DSL services are not available or deployment is too costly – improving education, health services, commerce and safety in developing countries. In South Africa, for example, the Ulwazi project relies on the Motorola Canopy system to create an interactive virtual classroom – using electronic whiteboards, webcams and microphones – for several schools, miles apart. Our Canopy product provides cost-effective Internet access in urban and rural areas Wireless phones Make home a safe haven Not just a convenience, a mobile phone vitally connects the unconnected in poor areas of the world, reducing transaction costs, broadening trade networks and reducing the need to travel. Motorola has been chosen to provide low-cost handsets for the Global Mobile Suppliers Association’s Emerging Market Handset program that attempts to bridge the digital divide in countries such as India, Philippines, Indonesia and Turkey. The Motorola homesight™ monitoring and control system is a wireless solution consisting of cameras, environmental sensors, and lighting/appliance controls that work together to provide real-time information about what is happening in your home. Consumers can extend the functionality of the system by adding extra devices. For example, by connecting a wireless door sensor, working parents can set up an email notification to let them know when the kids open the front door after arriving home from school. Environmental sensors can be configured to alert a mobile device about a water leak or extreme temperature–before the basement is flooded or the pipes freeze. See me, hear me The Motorola Ojo™ Personal Video Phone makes it easy to share special moments and feel close to people important to you, even when you can’t physically be together. The phone sends face-to-face conversations – complete with full-motion video and synchronized audio – over any high-speed Internet connection, keeping friends, family, co-workers and more seamlessly connected. 8 For the good guys Motorola’s Digital Justice Solution™ provides mid-sized police and fire departments and emergency responders with the ability to collect, manage, share and effectively use critical information. This solution includes computer-aided dispatch software that automates 9 -1-1 emergency call taking and dispatching functions, a records management system so law enforcement agencies can effectively record, index and track criminal and non-criminal incidents, mobile applications for field personnel to communicate wirelessly and Omnitrak ®, the automated fingerprint identification technology that helps solve crimes and identify individuals quickly and accurately. Motorola Teams With CARE Motorola has committed to provide CARE with more than a million dollars of life-saving technology in Asia, Latin America and Africa. CARE is a leading humanitarian organization fighting root causes of poverty. CARE helps the world’s poorest communities get the tools, knowledge and other resources they need to solve problems and change their lives for good. Last year, CARE’s povertyfighting projects reached more than 45 million people in 70 countries. Bangladesh CARE staff in the Kurigram district now use Motorola portable radios, base stations, repeaters, accessories and other equipment to avert disaster during the monsoon season. Staff members, communities and evacuation crews receive information and mobilize quickly to save lives and reduce the impact of floods, which annually affect 480 villages and almost 282,000 people. The sensory experience A new line of automotive sensors, including tire pressure, inertial and highpressure sensors, reflects an ongoing sensor portfolio development. Motorola’s new tire pressure sensor surpasses the governmental safety standards (NHTSA’s FMVSS 138) for driver warning systems when tire inflation becomes significantly low. Incorporating such sensors into tires improves both fuel efficiency and tire life. Motorola also introduced an inertial sensor module, which measures a vehicle’s directional motion and acceleration using silicon micro-machined gyroscopes and accelerometers. This product family helps correct over- and under-steering, potential rollovers, and is used in active cruisecontrol and steer-by-wire applications. Wireless access for all Motorola makes a difference in people’s lives by opening up the world of telecommunications. We’ve accomplished this through a commitment to providing quality products and services to all of our customers – including mature customers and those with disabilities. We create new products that meet the needs of the widest range of users while making our products easy to use and fun for everyone. Take a look at the hearing-, visual- and mobilityneeds solutions available in our products at www.motorola.com/consumer/accessibility. Democratic Republic of Congo Bangladesh CARE uses Motorola equipment to prepare for and respond to natural disasters Peru The Peruvian highland town of Puno has the country’s highest maternal mortality rate, and farmers in this remote area face a distinct disadvantage when trying to compete in the regional markets. With new communication equipment donated by Motorola, pregnant women and mothers are able to call for an ambulance, reach a doctor, nurse or CARE worker, and have medicine delivered. Some 2,000 farmers can obtain market prices and plan ahead to meet demand and maximize profits. 9 CARE is helping the Democratic Republic of Congo protect the world’s second largest contiguous tropical rainforest and its endangered wildlife. Using Motorola technology in the remote Maringa/LoporiWamba area, CARE field staff and local partners can more effectively and safely implement conservation projects. Motorola, Inc. Getting our Arms Around the Supply Chain Motorola relies on suppliers around the world to provide services and products. We expect that everyone in every link of the supply chain will behave ethically and be treated ethically. We expect our suppliers to conduct business in compliance with law and widely accepted standards of fairness and human decency. During 2004, we integrated a review of our suppliers’ global corporate citizenship (GCC) practices into the Motorola supplier capability mapping process. Now, before beginning a business relationship with a supplier, we evaluate its GCC performance along with other critical business performance measures. In 2005, we plan to implement a supplier self-assessment and risk identification process to help us identify and monitor potentially high-risk suppliers. We actively participate in several larger collaborative corporate social responsibility (CSR) initiatives. For example, we participated with the Frank Hawkins Kenan Institute of Private Enterprise, Washington Center, in a working group of leaders from business, civil society and labor, as well as U.S. government officials. The participants discussed how the U.S. government could help companies employ voluntary CSR initiatives to promote human rights as well as environmental best practices in China. Business Conduct Expectations for Suppliers Compliance Child labor Suppliers will maintain compliance systems and be able to demonstrate a satisfactory record of compliance with law in the conduct of its business, including requirements in the following areas: anticorruption; unfair business practices; antidiscrimination; humane treatment of workers; working hours and wages; safety and health; and environmental sustainability. Suppliers will ensure that their hiring practices are in conformance with International Labor Organization (ILO) Conventions for minimum age (C138) and child labor (C182). Suppliers are encouraged to develop lawful workplace apprenticeship programs for the educational benefit of their workers, provided that all participants meet the minimum age requirements. Anti-corruption Additionally, we are working on global supply chain issues with a broad consortium of telecommunications service providers, manufacturers and other electronics companies and the United Nations Environment Program through the Global e-Sustainability Initiative (GeSI). This coalition is working to develop and implement a common approach to integrating CSR issues effectively into the supply chain, promoting good supplier conduct and helping them improve CSR performance through the development/improvement of tools and the implementation of processes and systems. 10 Suppliers will conduct their business without engaging in corrupt practices, including public or private bribery or kickbacks. Suppliers will maintain integrity, transparency and accuracy in corporate record keeping. Freedom of association Unfair business practices While it is understood that overtime is often required, suppliers will manage operations in ways that overtime does not exceed levels that create inhumane working conditions. Where there are no applicable laws, suppliers will not require, on a regularly scheduled basis, work in excess of six consecutive days without a rest day. Workers are to be paid at least the minimum legal wage and, where no wage law exists, the local industry standard. Suppliers will act with integrity and lawfully in the proper handling of competitive data, proprietary information and other intellectual property; and comply with legal requirements regarding fair competition and antitrust, and accurate and truthful marketing. Anti-discrimination Suppliers will employ workers on the basis of their ability to do the job, not on the basis of their personal characteristics or beliefs. Forced labor Suppliers will not use forced, prison or indentured labor, including debt bondage. If a supplier recruits foreign contract workers, the supplier will pay agency recruitment commissions and not require any worker to remain in employment for any period of time against his or her will. Suppliers will allow their workers the right to join, or to refrain from joining, associations of their own choosing, unless otherwise prohibited by law. Working hours and wages Safe and healthy working conditions Suppliers will operate a safe and healthy work environment, including housing or eating facilities. Supply chain awards China Named best corporate citizen by the 21st Century Business Herald for outstanding achievement in building a strong supply chain Taiwan Received three International Purchase Office awards for contribution to the local supply chain Florida, U.S. Governor’s Florida Sterling Award presented to Motorola iDEN Subscriber Supply Chain Operations Environmental sustainability Suppliers of goods will have an EMS in accordance with ISO 14001 or equivalent. The EMS must be implemented and functioning. Third-party registration is strongly recommended but not required. Motorola encourages our suppliers to provide us with environmentally preferred products. Specifically, we encourage them to create products that are energy efficient, highly recyclable and contain significant amounts of recycled materials and low amounts of hazardous materials. To enable us to evaluate supplier components and products for environmental performance, suppliers must provide Material Disclosure outlined in our Controlled and Reportable Materials Disclosure Process. It is Motorola’s policy to eliminate from Motorola products, any components, including components provided by our suppliers, that contain or are manufactured with a process that uses any Class I ozone-depleting substance. Supplier Diversity In 2004, minority-, women- and veteran-owned businesses received more than $500 million in tier-1 and tier-2 purchases and diversity channel revenue from Motorola. Motorola’s Supplier Diversity Group assists diversity-owned businesses in identifying procurement opportunities within the Motorola supply chain. Other Motorola supplier diversity milestones include: • Recognized as “Corporate Support of the Year” by the Women’s Business Development Center, an organization for women-owned businesses in the U.S. Midwestern states • Recognized as “Corporation of the Year” by the Women’s Business Enterprise Council-West, an organization for women-owned businesses in the U.S. Western states special outreach to diversity businesses with Six Sigma training to help drive process improvements in their businesses that can deliver bottom-line results • Initiated • Used 650 diversity suppliers in U.S. procurement opportunities in 2004 and spent $1 million or more with 53 diversity suppliers • Initiated two formal mentor-protégé agreements with small disadvantaged businesses to provide developmental assistance • More than 50 major non-diversity suppliers participated in reporting their own diversity supplier spending through Motorola’s tier-2 diversity program www.motorola.com/supplierdiversity • Motorola vice presidents served on the board of directors of the National Minority Supplier Development Council and the Women’s Business Enterprise National Council • Became a founding corporate partner of the National Gay Lesbian Chamber of Commerce’s Diversity Development and Procurement Program • Became a corporate member of the U.S. Pan Asian American Chamber of Commerce 11 Flensburg, Germany At the Kappelner Werkstaetten, a non-profit workshop providing training and employment for mentally and physically challenged persons, Motorola awarded contracts for reusable packaging and other services Motorola, Inc. Governance Our charge is simple: Do the right thing. Our Key Beliefs Uncompromising integrity means staying true to what we believe, without compromise, even when circumstances make it difficult. Constant respect for people means we treat everyone with dignity, as we would like to be treated ourselves. In the wake of corporate scandals and increased demands from shareholders and regulators, many publicly traded companies have scrambled to create or dramatically revamp their ethics and compliance programs. In 2004, an extensive review of best practices confirmed for us that the program we launched in the 1970s and have improved through the years is still appropriate. It has been benchmarked by many other companies as a best practice itself. Code of Business Conduct Everyone at Motorola takes personal responsibility for abiding by the Code of Business Conduct and the laws that apply to our work. In 2004, we made only minor updates to the Code, formalizing some standards that had not been expressly stated. For example, we made it clear that employees are required to cooperate with investigations and audits. www.motorola.com/code Living the Code Over the last two years, 3,700 senior managers participated in full-day interactive workshops on business ethics, held around the world. This commitment shows Motorola’s determination to “do the right thing.” Employees, customers, suppliers and others use our EthicsLine and Audit Committee Line to raise issues and report concerns. In 2004, these helplines received 721 contacts – with more than 150 coming from outside Motorola. Continuously improving responsiveness encourages additional feedback and many reports help us mitigate disputes and eliminate wrong-doing quickly, saving the company millions of dollars. 12 Responses Mean Involvement Business Conduct Champions Feedback from all stakeholders is integral to an effective ethics and compliance program. Motorola’s EthicsLine and Audit Committee Line give responses to varied questions and concerns, while providing a confidential intake method for matters that need to be investigated. Use has climbed despite reduced employee numbers. In 2004, Motorola chose 24 employees from around the company to serve as Business Conduct Champions. Working in local time zones, languages and businesses, these high-performing individuals serve as resources for employees with questions and concerns and as the eyes and ears for the ethics and compliance programs. Stakeholder Relationships Transparency and trust enable Motorola to build solid relationships. Communities We are a responsible citizen in the communities where we do business. We interact regularly with our neighbors on our environmental, health and safety efforts, and we provide financial and voluntary support to community programs. Customers We recognize that none of these efforts will mean much if our culture and tone at the top do not reinforce the right message. We believe they do. In meetings with employees, CEO Ed Zander clearly projects his standard to “Do the right thing. Every day. No excuses.” Calls logged to the EthicsLine and Audit Committee Line 1000 We build long-term relationships with our customer-partnerships based on trust and integrity. We work closely with customers to develop and test new products and ensure satisfaction through surveys and ongoing dialogue. Employees 800 Motorola Board of Directors 600 400 200 0 96 97 98 99 00 Motorola’s EthicsLine 800.538.4427 U.S. toll-free +1.602.808.4427 Outside U.S. Audit Committee Line 866.724.1500 U.S. toll-free +1.602.957.5491 Outside U.S. 01 02 03 04 The board of directors adheres to governance principles designed to ensure continued vitality of the board and excellence in executing its duties. Highly diversified, the board includes active and former chief executive officers and chief financial officers of major corporations and individuals with experience in high-tech fields, government and academia. Board members must be loyal to the shareholders and informed on matters pertaining to the short-term and long-term performance of the company, especially in the areas of strategy, leadership and financial health. Directors are therefore involved in the positive and negative issues facing Motorola, its industries and markets so they can exercise their fiduciary responsibilities. In addition to regular ethics and compliance briefings to the Audit Committee, during 2004 the entire board had a focused session on new legal requirements, how Motorola is addressing issues and what our Code requires. 13 We foster an open-door policy and ensure clear and constant two-way communication through employee surveys; regular group, team and division meetings; and our company intranet. Government officials We maintain an ongoing dialogue with legislators, regulators and others involved with policy leadership. Investors We value our investors and keep them informed and aware of our financial performance as well as our global citizenship performance. Non-governmental organizations We value input and participate actively in meetings, conferences and forums on policy issues. Suppliers We require suppliers to comply with our global citizenship expectations, and we monitor their performance. Motorola, Inc. Jaguariúna, Brazil A Motorola wastewater treatment plant processes sludge to fertilize the orange orchards Environment Health and Safety (EHS) Top 10 ways our operations may affect the environment EHS Management Systems All our manufacturing sites are registered to the globally recognized environmental management system standard, ISO 14001, through Lloyd’s Register Quality Assurance. A committee of senior executives and a team of senior EHS managers provide oversight of our EHS management system. Globally, our EHS professionals develop and implement site-specific programs to comply with EHS management system requirements. Corporate policies, procedures, checklists and internal websites support their efforts. Solid waste Energy consumption Hazardous waste Chemical use and storage Air emissions Water effluent and releases Water consumption Raw materials usage Potential contamination to land Product/packaging design EHS Audit Program Since 1993, the corporate EHS audit program has provided independent assessments of conformance to our global EHS requirements. The audit program provides routine assessments for all manufacturing sites, follow-up on corrective actions and periodic management reviews with our board of directors. Audit teams of trained EHS professionals are independent of the organizations being reviewed. Because our operations use natural resources and have potential impact on air, water and land, we conduct environmental aspect and impact assessments in accordance with ISO 14001. 14 Cultivating the Earth’s Garden by Actively Managing Resources EHS Vision EHS Policy EHS Long-Term Objectives To be a globally recognized benchmark for environmental, health and safety performance in our industry and for integrating EHS and business performance Motorola is committed to conducting business in a manner consistent with our Corporate Citizenship Business Principles and Code of Business Conduct, providing world-class environmental, health and safety (EHS) performance for our customers, employees and other stakeholders. Motorola will operate our facilities in an environmentally acceptable manner with continuous improvement in our processes, EHS management system and the prevention of pollution. We will strive to offer products and services that consider environmental and safety impacts throughout their life cycles. We will work with our employees to maintain a healthy and safe workplace. Product stewardship To achieve this globally, we will: Green energy • Meet Use energy in highly efficient ways at sites and use renewable energy where practical CEO EHS Award Motorola presents the CEO Environmental, Health and Safety Award to employees or teams for significant contributions within the company, community, nation or world. The award recognizes EHS excellence and achievement beyond compliance and with a sustained performance over time. 2004 Recipients Motorola’s Inbound Discrepancy Report Team – for exceptional leadership and EHS/supply chain teaming to develop the inbound discrepancy tracking and corrective action system, resulting in improved safety and environmental performance and enhanced profitability Motorola’s Schaumburg Packaging Improvement Team – for exceptional leadership in developing and implementing a packaging solution that improved environmental performance, exceeded customer expectations and enhanced profitability or exceed all applicable environmental, health and safety legal and other requirements to which we subscribe in the countries where we do business • Establish sound EHS objectives and targets and report to stakeholders on our performance • Strive to design our products for sustainable use of the earth’s resources, considering waste, energy, material content, packaging, upgradeability, reuse and recycle • Expect suppliers to operate consistently with our EHS policy • Partner with customers to assist them in improving their EHS performance • Evaluate performance by monitoring results through effective management reviews and global assurance processes • Report progress and key issues to the board of directors Design all products for the environment and safety Zero waste Reuse or recycle all waste materials Benign emissions Eliminate from plants all emissions that adversely impact the environment Closed loop Fully integrate products and processes in the recycling loop to conserve natural resources Zero occupational injuries and illnesses Create a workplace free of occupational injuries and illnesses EHS 2010 Goals • Reduce volatile organic material emissions by 60% from 2000 levels • Achieve continuous improvement in greenhouse gas emissions • Reduce hazardous waste by 50% from 2000 levels • Reduce non-hazardous waste by 25% from 2000 levels • Recycle 75% and recover 85% of non-hazardous waste • Reduce • Reduce energy use by 25% from 2000 levels • Achieve continuous improvement in recordable injury and illness case rate • Achieve zero EHS-related fines and continuous improvement in the number of citations Tianjin, China Motorolans joined in tree planting event 15 water use by 25% from 2000 levels Motorola, Inc. Environment Health and Safety (EHS) 2004 Performance Goal 12 Goal 0.20 0.025 10 0.020 0.15 8 0.015 6 0.10 0.010 4 0.05 0.005 2 0 00 01 02 03 04 0.000 10 00 01 02 03 Global Volatile Organic Material Emissions Global Greenhouse Gas Emissions metric tons per billion sales dollars million metric tons CO2 equivalent per billion sales dollars 0.00 04 01 02 03 04 10 Global Hazardous Waste thousands of metric tons per billion sales dollars Goal Goal 2.0 00 Goal 100 1.0 80 0.8 60 0.6 40 0.4 20 0.2 1.5 1.0 0.5 0.0 00 01 02 03 04 Global Non-Hazardous Waste thousands of metric tons per billion sales dollars 10 0 00 01 02 03 Global Recycled Non-Hazardous Waste percent recycled 04 10 0.0 00 01 02 03 Global Water Usage million cubic meters per billion sales dollars 04 10 We achieved our EHS 2010 goals (listed on page 15), except for the goal to reduce non-hazardous waste by 25 percent. These results were achieved due to various pollution-prevention efforts – additional abatement equipment, creative efforts to conserve water and energy, improved health and safety programs – and the spin-off of our semiconductor operations into Freescale Semiconductor in 2004. Freescale will report separately on its results and progress. Our non-hazardous waste increased primarily due to a major parking lot renovation project in Schaumburg, Illinois, U.S. and those materials were recycled. Category 2004 Units Absolute 2000 Normalized 2004 % Reduction Normalized On Goal? Normalized Units Volatile organic material emissions 44.1 Metric tons 10.3 1.41 86% Yes Metric tons per billion sales dollars Greenhouse gas emissions dollars 0.1959 Million metric tons CO2 equivalent 0.0205 0.0063 69% Yes Million metric tons CO2 equivalent per billion sales dollars Hazardous waste 889 Metric tons 0.19 0.03 84% Yes Thousands of metric tons per billion sales dollars Non-hazardous waste 57,368 Metric tons 1.61 1.83 — No Thousands of metric tons per billion sales dollars Non-hazardous waste recycled 84% Percent recycled 53% 84% — Yes Percent recycled Water use 3.57 Millions of cubic meters 0.65 0.11 82% Yes Millions of cubic meters per billion sales dollars Electricity and natural gas use 0.8 Billions of kilowatt-hours 0.10 0.03 69% Yes Billions of kilowatt-hours per billion sales dollars Recordable injury and illness case rate 0.44 Recordable injuries and illnesses per 100 employees 1.28 0.44 66% Yes Recordable injuries and illnesses per 100 employees Goal U.S. TRI Releases U.S. Manufacturing Average U.S. Sales U.S. Radio and Wireless Communications Equipment Average Motorola Rate 20 0.15 0.12 0.10 0.12 15 12 15 0.08 0.09 9 10 0.06 0.06 6 0.04 5 0.03 3 0.02 0.00 00 01 02 03 04 10 0.00 00 01 02 03 0 0 00 01 02 03 04 Global Electricity/ Natural Gas Usage U.S. Toxic Release Inventory (TRI) Releases vs. U.S. Sales Global Recordable Injury and Illness Case Rate billions of kilowatt-hours per billion sales dollars left scale: millions of pounds right scale: billions of dollars recordable injuries and illnesses per 100 employees Preserving and protecting the environment for today’s society and generations to come Global Climate Change Ozone-depleting substances We eliminate from Motorola products any components, including those provided by our suppliers that contain or are manufactured with a process that uses any Class I ozonedepleting substance. We recognize that human actions may be influencing global climate change and have had initiatives to address this for several years. In 1999, we established an aggressive goal to reduce our emissions of PFCs (perfluorocarbons) – the largest source of greenhouse gases – by 50 percent worldwide by 2010. Motorola achieved the goal in 2003, well ahead of schedule. Also, we are a founding member of the Chicago Climate Exchange, an innovative voluntary initiative to reduce emissions. To be transparent about our actions, we participate in the Carbon Disclosure Project. Illegal coltan mining Tantalum powder derived from coltan is used to produce materials found in a wide range of electronic devices, including mobile phones. When Motorola first became aware of the devastation that illegal coltan mining was causing to wildlife in the Democratic Republic of Congo in 2001, we took swift and effective steps to cease the use of materials containing tantalum, the coltan derivative, which could be traced to illegal mining there. Motorola has significantly reduced the use of tantalum over the last several years. We do not buy tantalum directly but purchase materials containing tantalum derived from legally mined coltan from companies in Japan, Korea and the U.S. We regularly require all of our suppliers, both existing and new, to verify in writing that materials sold to Motorola do not contain tantalum derived from illegally mined Congolese coltan. Remediation Motorola has been in business for more than 76 years and has had numerous manufacturing facilities around the world. Because of the age of some of our operations, Motorola is involved in environmental cleanups at 10 current and former manufacturing facilities. We have completed remediation at six of these sites. The need for environmental cleanups at these sites resulted from activities that were legal and in compliance with the industrial standards of the time. However, as soon as any environmental impact was identified, Motorola and other identified responsible parties took the appropriate actions to address the issues. The U.S. Environmental Protection Agency implemented the Superfund Program to oversee environmental cleanups. Motorola is involved in Superfund Program cleanup operations at non-Motorola sites to which our waste was sent for disposal in the past. The Superfund Law creates retroactive liability for past actions even if they may have been legally and technically acceptable at the time. 18 Motorola pays our fair share to clean up any environmental impacts to which we may have contributed. We currently have $16.5 million reserved for any environmental liabilities. This reflects a more than 75 percent reduction compared with 2003 due to the spin-off of Freescale Semiconductor and ongoing implementation of remedies. Motorola utilizes the best technology to ensure that remediations are conducted effectively, efficiently and quickly. We work with many recognized institutions to develop and evaluate new remediation technologies. Protecting Our Future In an ongoing effort to prevent future impacts to the environment, in 1993 Motorola implemented a leading set of environmental standards and improved an aggressive program to periodically review all off-site disposal facilities. To ensure that Motorola fully understands any environmental risks at sites we plan to acquire, divest or lease, we perform an intensive due-diligence investigation to evaluate potential environmental risks. In several countries, Motorola has worked with governments to address environmental issues on sites we were interested in acquiring, remediating problems even though others had caused them. Motorola is an industry leader in our concern for the environment and will continue to pursue technology and systems that make our efforts an environmental benchmark. Schaumburg, Illinois, U.S. Wildflowers bloom again at Motorola’s headquarters where we converted approximately five acres of lawn turf to native prairie to support the Village of Schaumburg’s biodiversity plan Our goal: to achieve zero EHS-related fines and continuous improvement in the number of citations. Our Compliance History 2004 2003 2002 2001 2000 1999 1998 Environmental non-compliances* 0 5 1 1 1 4 12 Safety non-compliances* 1 0 5 0 3 0 2 $0 $0 $0 Fines or penalties $1,000 $1,375 *Non-compliances include notices of violation, citations, administrative orders and notices of non-compliance 2004 EHS Compliance Record Location Seguin, Texas, U.S. Agency U.S. Occupational Safety & Health Administration Description Received an “Other Than Serious” citation for using a process-specific air nozzle (in excess of 30 pounds per square inch) in a cleaning operation. Corrective action The process-specific air nozzle was modified so it no longer can be used in cleaning operations. All air nozzles in the facility were inspected to ensure they are used appropriately. Fine None 19 Motorola, Inc. $0 $40,700 Basingstoke, England Preserved ancient woodlands by clearing visitor access to Chineham Woods Natural Reserve. Swindon, England Motorolans know the connection between a healthy environment and a healthy life. Whether improving life in the city or helping nature in the wild, we take action. The World We Share Built a walkway at the Jones Mill Nature Reserve. Puerto Rico Cleaned up land and planted garden for the Colegio de Educación Especial y Rehabilitación Integrada. Chandler, Arizona, U.S. Jaguariúna, Brazil Bio-solids treatment at Motorola facility Elgin & Schaumburg, Illinois, U.S. Participated in quarterly clean-ups for Adopt-a-Highway program. Schaumburg team collected nearly one ton of trash. Plantation, Florida, U.S. Fifty interns stripped invasive non-native vines in Broward County’s Tree Tops Park. Israel Collected nearly 5,000 liters of used cooking oil from Motorola kitchens in Tel-Aviv and Arad for recycling. Collected 100 tons of paper, two tons of used batteries and more than 1,000 toner cartridges for recycling. Boynton Beach, Florida, U.S. Removed trash and an abandoned irrigation system from the 576-acre Juno Dunes, a scrub habitat home to more than 600 plant and animal species, including the threatened Scrub Jay and the Atlantic Loggerhead Sea Turtle. Helped plant 5,000 red mangroves on John’s Island, an Audubon-managed natural habitat. 20 Hosted a U.S. Environmental Protection Agency (EPA) National Environmental Performance Track (NEPT) seminar with regional and federal EPA officials and attendees from local businesses and municipalities. Mentored General Dynamics and Intel for the NEPT program. Mentored IBM and TRW for the OSHA Voluntary Protection Program (VPP) with Motorola support formally recognized when TRW was named a STAR VPP facility. Flensburg, Germany Reduced hazardous waste generation from 32 metric tons to six metric tons over the past five years and 30% or 2.5 metric tons in 2004. Savings achieved through more efficient board cleaning processes, reduction in ultrasonic cleaning bath solution, use of soldering paste cartridges and reusable cloth wipes and more restrictive approval of hazardous material usage. U.S. Gathered more than 8,000 cell phones and accessories from employees – roughly 5,000 pounds – for recycling. John’s Island, Florida Motorola volunteers helped plant 5,000 mangrove trees on this newly created wetland area Recycling for Real Results The North American Customer Fulfillment Center in Texas recycled 80% of all waste produced, including 1,328 tons of cardboard and 445 tons of pallets, diverting 2,067 tons of waste from landfills. Compared to 2003, the Center achieved 35% reduction of water usage (3,303,000 gallons), 93% reduction of natural gas and 12% reduction of electricity usage. The results: 22,581 37,193,240 BTU Trees saved Electric energy savings 670,806 gallons 3,985 cubic yards Oil/fuel savings Landfill space saved 21 Motorola, Inc. A Healthy Regard for Safety Wireless communication is so much a part of our lives that it’s hard to remember a time when we didn’t rely on it. Dramatic growth in the use of wireless phones and other portable radio products generates occasional questions about safety. Motorola devotes significant effort to address these issues. Wireless Phones and Health Research on radio waves and health dates back more than 60 years, and knowledge in this area continues to grow. New findings are released regularly, presented at scientific meetings and published in scientific journals. Sometimes, media accounts make these findings seem confusing or contradictory, causing people to wonder what to believe about wireless communications and health. Mobile phones and other portable radio products are designed, built and tested to assure they operate within recognized science-based limits for safe exposure to radio waves. These limits are expressed in a value known as specific absorption rate (SAR). Motorola conducts laboratory measurements to assure that the SARs produced by its products are within required limits, which contain substantial margins of protection for users and the public. www.motorola.com/rfhealth Responsible driving starts early To educate novice drivers about distracted driving, Motorola has created Cruise Control, an interactive site delivering responsible driving information in a fun and playful way. A downloadable brochure aimed at parents of teens addresses the same issues and offers best practices. What About Children? The exposure limits described above are based on independent reviews of a large scientific knowledge base accumulated over many years. In establishing these limits, standard-setting organizations incorporate “safety factors” to take into account the well-being of all members of the population, including children. 22 The use of wireless communications products by young people remains a matter open for parental choice. Many families value wireless phones for the personal comfort that comes from being connected. We believe they can continue to do so with confidence in the safety of these products. Responsible Driving Motorola believes that safe driving is a driver’s primary responsibility. We address this responsibility through education, research and improving technology. To encourage responsible driving, we provide consumers with ease-of-use products such as headset jacks and speakerphone capability for hands-free driving, one-touch dialing, automatic answer, voice dialing, caller ID and integrated proinstall hands-free kits. We also provide highly integrated communications systems to certain automobile manufacturers, integrating the phone into the vehicle’s audio system. Motorola helped develop a distracted driver curriculum for the Network of Employers for Traffic Safety, has partnered with the Cellular Telecommunications & Internet Association on its driver safety campaign and developed a novice driver program with the American Automobile Association. In addition, Motorola launched a website to help educate teen drivers about the appropriate use of telecommunications devices in vehicles. This site can be reached from our Responsible Driving website at www.motorola.com/callsmart, where we provide additional responsible driving tips and information. Operating with Sensitivity Human Rights Policy Anti-discrimination We employ people on the basis of their ability to do the job, and we prohibit discrimination based on workers’ personal characteristics or beliefs. Freely chosen employment We do not use forced, prison or indentured labor. We ensure that terms of employment are voluntary. No child labor Our hiring practices conform with the International Labor Organization conventions for minimum age and child labor. China Motorola sponsored two-week technology training for 96 principals and teachers in the Project Hope Schools Working hours and wages We do not require our employees to work more than the maximum hours of daily labor set by local law. Our employees are paid at least the minimum legal wage or, where no wage law exists, the local industry standard. Freedom of association Our employees have the right to join associations of their own choosing or to refrain from joining, unless otherwise prohibited by law. Safe and healthy working conditions We provide a safe and healthy work environment for employees. In cases where we provide housing or eating facilities, we operate and maintain them in a safe and sanitary manner. No harsh or inhumane treatment The safety and security of employees at our facilities is a key priority. We prohibit the physical abuse and harassment of employees, as well as the threat of either. Privacy Practices Motorola recognizes that most individuals accessing the Internet are concerned about privacy and security. We maintain privacy practices for consumers buying a Motorola product or browsing our website. Motorola collects personal information to facilitate order processing, contact a consumer if a problem arises with the order or obtain a credit report if necessary. Motorola does demographic research to better understand and serve our users. This research is compiled and analyzed in aggregate to prevent identification of personal information relating to any one individual. Motorola may share this aggregated data with our business partners. www.motorola.com/privacy We use the information collected through surveys to help us design and build better products, to customize the shopping experience and to provide advice and purchase recommendations. We also use information collected to help target the marketing and advertising of new products or services we think may be of interest. 23 Motorola, Inc. Product Stewardship Motorola wants our products to give our customers more value with better environmental performance. Throughout a product’s life cycle, we work to minimize environmental, health and safety impact by constantly improving design, supplier management, manufacturing, distribution, sale, product use and end-of-life management. An estimated 100 million phones are retired each year in the U.S. Now kindergarten through 12th grade students can help ensure these phones are properly recycled while raising funds for their schools. Motorola’s Race to Recycle program enables schools to earn approximately $3 per intact phone they collect in their communities (up to $21,000 per calendar year). Schools can call or register online to get started. The goal: to collect one million phones in 2005. Getting young people involved early helps raise good global citizens. www.motorola.com/racetorecycle Taking It All Back Technology and environment complement each other when a comprehensive recycling plan is part of innovation. We’ve made strides in this area. For example, Motorola includes U.S. postagepaid recycling envelopes with many new phones to allow consumers an easy and convenient recycling option for their retired cell phones. We accept any phone, not just ours. From www.motorola.com/racetorecycle anyone can obtain a U.S. postage-paid mailing label. Outside the U.S., we’ve initiated takeback and recycling programs in Brazil and China. And as a participating member of the Electronics Industries Alliance, Motorola co-sponsors www.eiae.org to inform consumers about recycling and reuse opportunities for used electronics. 24 Product design goals jurisdictions likely will adopt this approach. Responding to the new requirements, Motorola business units have developed environmentally preferred product goals and a material disclosure specification to aid product design. • Design our products to be highly recyclable • Reduce the use of hazardous materials • Reduce energy use by our products • Increase the use of recycled materials in our products Environment-friendly materials Motorola continues to implement environmentally preferred materials such as recycled and bio-based plastic. Motorola Labs in Europe is exploring use of biobased plastic in mobile phone housings and other electronic products. One protype explored: phone housings using bio-based plastic materials that can be composted in the garden at the end of life. • Minimize the ratio of packaging material to product volume • Label all plastic parts weighing greater than four grams to aid further recycling Rapid Environmental Assessment Lab (REAL) Part of Motorola Labs, the REAL in Taunusstein, Germany, focuses on friendly materials, product recyclability and energy conservation. REAL enables Motorola’s businesses, suppliers and customers to conduct material analysis and recyclability studies at the material, component and product levels. Recycled content plastic formulated under the EXL1414 resin type, EXRL0110, successfully finished a three-tiered evaluation. Motorola engineers added this resin to the material roadmap as an alternate choice for future Motorola parts that require the material properties of the EXL1414 resin grade. Global analytical test method led by Motorola The European Restriction of Hazardous Substances in Electrical and Electronic Equipment (RoHS) Directive and other global legislation are driving the electronics industry to develop methods to test products analytically. The International Electrotechnical Commission Advisory Group on Environmental Aspects developed a standard to determine the level of regulated substances in electrotechnical products. Motorola Labs leads this standardization work using the experience of the REAL. Recent successes • Eliminated cadmium, a hazardous material, from our batteries in wireless phones while providing a smaller, lighter battery with longer performance. • Reduced the amount of material used in our wireless phones from 5 kilograms in 1984 to less than 100 grams in recent models. This is about a 98% reduction and an enormous savings in the need for new materials and energy. • Implemented European environmental laws European laws covering waste electronic equipment take-back, disposal and recovery (WEEE Directive) and the Restriction of Hazardous Substances in electronic products (RoHS Directive) are changing how electronic products are designed and managed. China, some U.S. states and other 25 product takeback collection programs in many places around the world. Motorola, Inc. Education Community Environment In 2004, Motorola strengthened its giving program to better support the company’s and its employees’ extensive giving history. This year alone, Motorola and the Motorola Foundation supported thousands of organizations around the world and donated more than $12 million. And Motorola employees and their families generously gave time to organizations in their communities. We now will build on this rich history with a new program that brings new excitement and focus to giving at Motorola. Giving Back Motorola seeks to become a leader in global corporate philanthropy through strategic grant making, building strong community partnerships and engaging all stakeholders in our mission of improving our communities by fostering a spirit of innovation and discovery. Innovation Generation Community Connections We support education programs that inspire students – especially girls and minorities – to embrace science, technology, engineering and math and give them the tools to become the next generation of innovators. We give our time and our money to the communities where we live and work. One Environment We promote a wide variety of environmentally responsible activities, including proper care of our own products and materials. www.motorola.com/giving 26 Reversing a Trend Facing a declining student enrollment in math, science and technology programs, South Africa’s government partnered with Protec to design a new national technology curriculum for 2005. With Motorola’s support, Protec will enable training for 20 teachers who will reach 2,500 students in the first year. Bringing Motorola’s experience to the nation, company volunteers advise Protec on skills required for students to pursue careers in technology. They also built a center to help children learn, communicate and explore through the Internet. Other examples of Motorola’s commitment to education: • Equipped software engineering labs and updated training courses at Russia’s St. Petersburg Polytechnic University and St. Petersburg State Electrotechnical University • Helped indigenous women university students with the cost of living and studying away from home through the Australian Computer Society Foundation • Helped children learn, communicate and explore through the Internet through a computer clubhouse in Johannesburg, South Africa • Offered technological and human development training for young people from disadvantaged communities through Venezuela’s non-profit SUPERATEC education and research in telecommunications through a lab for the Groupement des Écoles de Télécommunications in Paris • Encouraged • Engaged pre-collegiate students in science and engineering projects through Scotland’s University of Edinburgh Sci Fun lab-on-wheels • Sponsored the Technopreneurship Challenge for engineering students at the National University of Singapore and sponsored awards for the academically outstanding female engineering students at Ngee Ann Polytechnic in Singapore students learn about environmental product design and testing through Girls Day at the REAL Lab in Germany • Helped • Provided computers and accessories to elementary schools in Vietnam through Edunet, a high-priority government program, and provided software training for Vietnam IT/software specialists and professionals • Created a two-year program to attract gifted high school students in Israel to engineering studies. During plant visits, they learn about technological jobs from Motorola engineers and then work on solutions to actual engineering problems. 27 Chandler, Arizona, U.S. Coached by Motorola volunteers, students build and test rocket prototypes • Hosted high-risk junior and senior high school students participating in STRIVE, a mentoring program that teaches the business imperative for staying in school in Chicago • Taught thousands of young people about economics and the world of business through the Motorola employees who volunteered as Junior Achievement teachers, using a curriculum funded by the Motorola Foundation • Strengthened an advanced-degree program at the Danish Technical University by delivering lecturers, loaning advanced measurement equipment and mentoring graduating students the academic curricula at Mexico’s Tec de Monterrey by funding overseas training for professors in Carnegie Mellon’s Capability Maturity Model for software development centers • Improved Motorola, Inc. Investing in Our Future The Partnership for Building Bridges and Futures engages selected advanced high school students in analytical research of Motorola’s soon-to-be released products. The program gives us insight from a unique consumer population while providing students the opportunity to combine theoretical practice with realworld experience. Hundreds of Motorola employees race to volunteer for the local First Lego League competitions. This global program for children ages nine through 16 combines a hands-on, interactive robotics program with a sports-like atmosphere. Teams of players around the world focus on problem solving, creativity and analytical thinking as they face the international robot challenge. Motorolans volunteer time to coach students building robots, assist at the competitions and serve as advisory board members. • Promoted middle school mathematics achievement by providing scholarships to winners in the U.S. MATHCOUNTS competition • Presented the Motorola Academic Award to professors selected by the Korea Institute of Communication Science • Hosted students competing in the Midwest Regional Science Bowl, a U.S. academic competition that challenges and recognizes students’ knowledge of science and mathematics • Created internships in international business and shadow days for students in Belgium 28 • Assisted the Israel Center for Technology & Accessibility for the Handicapped by developing a special model of the Spirit wireless phone for hands-free use from wheelchairs • Judged the Chicago Public Schools science fair with students representing the best of more than 10,000 exhibits from city junior high and high schools • Encouraged high school students throughout Poland to consider careers in information technology through a competition to build an Internet page • Provided funding, radio communication equipment and technical guidance to electronic engineering students in Mexico who designed a prototype electric car and raced it in the Electraton 2004 national championship featuring cars designed by students Stepping Up Every day Motorola employees around the world step up to serve their communities. We provide warm meals, upgraded playgrounds, restored homes, holiday gifts, clothes, books, toys, special activities and listening ears. Motorolans ask “How can I help?” and take pride in their actions. Because of Motorola, there are children playing on playgrounds, seniors have friends, HIV patients are no longer isolated. Restoring Schools and Hope Since 1994, Motorola has worked with Project Hope to help more than 12,000 children in China return to school by funding teacher training, scholarships and new libraries, multimedia language labs and schools. Seventy-two Motorola Hope Schools in 23 provinces bring powerful learning experiences to undeserved areas. Motorola’s investment includes more than financial assistance. Employees serve as mentors and do other volunteer work with the schools including clothing and food drives. In 2005, 200 students will receive Motorola scholarships to finish high school or college. • Refurbished Other examples of how Motorolans stepped up to serve the community: • Organized a Mid-Autumn Festival mooncake party and a soccer tournament for the Movement for the Intellectually Disabled of Singapore produce and planted for future harvests to address the needs of underserved residents of Orange County, California, U.S. • Picked • Refurbished homes and participated in benefit walks for cancer and other diseases throughout the U.S. • Played games and shared activities with the children at Puerto Rico’s Campamento de la Distrofia Muscular • Helped animals in distress by clearing ground, installing a fence and moving a shed for the UK’s Allandale Animal Sanctuary toys, candy and a piñata fiesta to children with terminal diseases at El Hospital Infantil de México Federico Gómez in Mexico City, Mexico an Israel center for young women from broken homes including painting, laying carpets and installing alarm systems • Donated 500 used phones for local school to recycle with the environmental aid agency, generating funds to finance a school project mapping local flora and fauna in Flensburg, Germany • Logged more than 2,400 employees’ hours of community service in South Plainfield, New Jersey, U.S. Five employees together logged more than 1,000 service hours and received awards from the U.S. President’s Council on Service and Civic Participation. • Contributed more than $3.7 million – from employees and the Motorola Foundation – to United Way chapters across the U.S. to assist health and human service organizations focusing on projects that address basic needs of children and adults • Delivered CEO Award for Volunteerism winners Eleven individual employees and three employee teams from among 68 applicants received the CEO Award for Volunteerism. Winners received award plaques and U.S. $5,000 checks for their designated charities. In recognition of the Motorola Foundation’s 50th Anniversary, a U.S. $150 contribution for each of the other applicants was made to the Disaster Relief Fund for the American Red Cross and the International Red Cross. “Why is the sky so blue today? What makes the air so fresh? Motorola. Because you are sending us a ray of Hope.” The children recited a poem they wrote to welcome visitors from Motorola. Hundreds of local people in Xikou Township, Jiangxi Province in China gathered early in the morning at the Hope School that Motorola funds helped to build. They wore sashes that read “Thank you!” 29 Motorola, Inc. Our Neighbors Are Everywhere Kerala, India Sanjay Kumar, Motorola’s India country sales manager, presents Motorola radios for the tsunami relief effort to Oomen Chandy, Kerala chief minister, as P K Hormese Tharakan, Kerala director general of police, looks on Southeast Asia In the early hours of the tsunami crisis, Motorola–a major partner with first responders around the world–deployed equipment and technical support to meet critical communications needs in the affected areas. Motorolans in the region responded quickly. At press time of this report, the contribution of equipment and money from Motorola and its employees had reached $4 million. This includes: more than 1,200 two-way radios, 1,600 wireless handsets, along with repeaters and base stations in Indonesia, India, Sri Lanka, Thailand, Singapore, Malaysia and Maldives; donations of $1 million; and matching $1 million of employee donations to the Red Cross/Red Crescent and the AmeriCares Foundation. Motorola employees in Southeast Asia continue to work with relief agencies in their individual capacities and have donated additional time, food, money and other assistance. Thailand Motorola engineer Budi Wibowo (left) and his team worked around the clock for several weeks to supervise and accompany the many shipments of Motorola-donated base stations used to restore communication in tsunami-devastated Aceh, Indonesia 30 Plantation, Florida, U.S. Motorola employees clean up hurricane damage U.S. Russia In the wake of three of the worst hurricanes on record, storm victims needed support to get back to normal. Motorola’s Product Realization Shared Services organized a team community service effort to help families rebuild their lives. Motorola donated $6,000 to survivors of the Beslan school tragedy for surgery and post-surgery medical treatment. The victims of this terrorist attack in Republic of Ossetia, South Russia were mostly children. After clearing debris from their own yards, Motorolans coordinated with United Way to clear fallen trees for people who couldn’t manage on their own; worked with fire departments to deliver donated food and water; and provided emergency communication systems. Morocco When an earthquake struck, parts of Morocco were almost completely destroyed. Motorola’s Moroccan team donated a fully equipped ambulance by buying a light-utility vehicle, modifying it and driving 11 hours with aid and supplies to the affected area. Expanding Our Reach Motorola’s global corporate citizenship programs gain strength when we partner with organizations to expand our reach. Through industry organizations, companies, governments, scholars and other subject matter experts cooperate to build on best practices, expand resources and penetrate untapped areas. A sample of organizations in which we participate: U.S. Environmental Protection Agency Wastewise Program U.S. Environmental Protection Agency Performance Track Program World Environment Center World Resources Institute Global e-Sustainability Initiative Global Environmental Management Initiative Chicago Climate Exchange Occupational Safety and Health Administration Voluntary Protective Program 31 Motorola, Inc. The Face of Motorola 57% of workforce is outside the U.S. 34% of workforce is female 34% of U.S. workforce is multi-ethnic A seamless bridge between workplace and marketplace Diversity How do you define diversity? Where do you go to mix it up, to broaden your horizons, to be rejuvenated and inspired with thought-provoking, innovative, progressive and creative ways? At Motorola, we are committed to being the premier choice of all stakeholders by driving a culture that attracts, leverages and celebrates all similarities and differences. The Morphing of MOTOMIX Employees and senior executives used data-driven information and insights at the 2004 OWNMOTO Diversity Summit to kick off a strong new direction for Motorola’s diversity efforts. The result was MOTOMIX, a reinvigorated diversity vision for our multi-cultural workforce and global business. The group also generated ideas and actions to make diversity a business discipline embedded throughout the company. Workplace & Employees Communities Governance Customers 32 Suppliers We took quick action by launching the Motorola Diversity Leadership Council, a group of senior executives sponsored by members of Motorola’s senior leadership team. The Council recommended goals and mentoring expectations for all vice presidents and officers, developed diversity business plans for each business and function and are launching a new diversity learning suite. Other efforts also focused on building diversity considerations more strongly into product design processes and relationships with customers, suppliers and communities. And a new diversity intranet portal was launched to integrate information, tools and news for employees. Awards Top 50 Employer, Equal Opportunity magazine Top 50 Employer, Women Engineer magazine Top 50 Employer, Workforce Diversity for Engineering and IT Professionals magazine Victoria Rowell of The Young & The Restless TV soap opera for her foster care foundation, The Rowell Foster Children’s Positive Plan Top 50 Employer, Minority Engineer magazine the “Black Perspectives Homecoming Celebration” series at the 40th Chicago International Film Festival • Sponsored Top 50 Companies to Win for African Americans, Savoy Professional magazine 50 Most Important Hispanics in Business and Technology bestowed upon two senior Motorolans, Hispanic Engineer & Information Technology magazine Top 15 Companies for Lesbians, Curve magazine Employer of Choice Award from Minority Corporate Counsel Association Outstanding contribution award bestowed upon a Motorolan from Black Engineer of the Year Awards Joseph Papp Corporation Diversity Award Larry Kopp Award from Council for Ethnic Understanding Corporate Support Award from Women’s Business Development Center Corporation of the Year Award and Board Member of the Year Award to a Motorolan from Women’s Business Enterprise Council-West Perfect score on Corporate Equality Index from Human Rights Campaign Foundation measuring inclusive treatment of gay, lesbian, bisexual and transgender employees, consumers and investors Gay Lesbian Bisexual Transgender Business Council • Sponsored Atlanta, Georgia, U.S. Motorola’s booth at the National Business and Disabilities Council Conference demonstrated Motorola products with accessible features Diversity Business Councils the Out & Equal Workplace Summit in Phoenix, a national conference bringing together gay, lesbian, bisexual and transgender employees, straight allies, and human resource and diversity professionals to share best practices for addressing workplace equality • Sponsored Human Rights Campaign fundraiser dinners, Washington, D.C. and Chicago Since 2000, diversity business councils have advanced our market-based diversity strategy by enhancing recruitment and retention of top talent, identifying and capitalizing on key, under-represented markets and linking diverse perspectives into our decision-making channels. Latino Business Council 2004 Achievements • Sponsored • Partnered with Nextel to sponsor Carnaval Miami, the largest global showcase in the Hispanic market Asian Business Council • Sponsored the 49th Manikchand Filmfare Awards in Mumbai, India with the “Motolook of the Year” Award presented for the first time with more than 44 million Indian households plus viewers in 12 other countries watching two events for Hispanic Heritage Month with Catalina magazine, including a Washington, D.C., kickoff event with the Congressional Hispanic Caucus Women’s Business Council • Launched a Canada site chapter of the Women’s Business Council • Sponsored • Participated Black Business Council People With Disabilities Business Council (new in 2004) • Sponsored • Motorola’s the 6th International Bollywood Awards, which recognize achievements of Indian movie stars and makers the 6th annual “Chic Boutique” event at the National Basketball Association All-Star Weekend in Los Angeles, a fundraising event for the International Association of African American Music Foundation’s Summerscope program; Motorola presented the spirit award to actress 33 in iDEN-funded market research project on female consumers of wireless communications technology newest business council will focus on attitude, accessibility and accommodation for people with disabilities • Hosted Career Opportunities for Students with Disabilities national conference at Motorola’s Galvin Center in Schaumburg, Illinois, U.S. Motorola, Inc. Here’s to Health Wellness solutions improve quality of life for employees and their families. U.S. & Canada Fitness and recreation • Ten wellness centers offered workout equipment, movement classes, specialty series, personal training and outdoor activities • Tournaments, leagues and “just for fun”activities held at multiple sites throughout the year • Wellness reimbursement dollars available for use at on- or off-site fitness facilities Prevention and screening On-site wellness screenings and Health PowerProfile assessments gave employees information to improve health and provided aggregate data Motorola can use for targeted interventions Education and awareness Web-based “tool kits” on tobacco cessation, healthy active families, self care, weight management and resilience made available and linked with on-site class schedules and online education opportunities U.S. With Partners Telemedicine of Harvard Teaching Hospitals, tested MOTOHEALTH, a Motorola solution that uses mobile phones to help healthcare providers monitor chronically ill patents as they go about daily routines Seguin, Texas, U.S. Brazil Employees take charge of their health through the MOTOVIVA wellness program. Gymnastics, massage, heart, weight-loss, maternity, sports, leisure, nutrition and music programs show real results: 20 percent reduction of over-weight, 50 percent increase in the number of employees exercising regularly and improved blood pressure and glycerides results. Angers, France Formed a team to address on-site injuries, using pictorial job safety analyses that are machine-specific; judged best-in-class by Delta Environmental during compliance audit With three national carriers and the government, created a research foundation to study electromagnetic fields and to provide information to the public, especially messages from the World Health Organization. Flensburg, Germany Promoted good health and ergonomic improvements by creating a risk register for each work site based on employee input and other data. The register emphasized health and safety of shift workers. Work-related accidents in Motorola Flensburg reduced nearly 77 percent since 1999. Angers, France To promote an accident-free work environment and to deal with emergencies effectively, employees spent three days learning first aid, fire safety, chemical firefighting and how to use protective equipment and procedures 34 Singapore To promote workplace health, Motorolans walked in the Guiness Record New Paper Big Walk 2004 OSHA VPP STAR Program Six sites earned the highest award of the U.S. Occupational Safety and Health Administration, the Voluntary Protection Program (VPP) Safety Through Accountability and Recognition (STAR) award. The following sites earned the VPP STAR in 2004: Chandler, Arizona; Plantation, Florida; Schaumburg, Illinois; Arlington Heights, Illinois; Seguin, Texas; and Ft. Worth, Texas. Only one-hundredth of one percent of eligible sites in the U.S. have earned this award. In 2004, Motorola had 46 percent of its U.S. employees working at a VPP STAR site. 35 Motorola, Inc. Committed to Our People Schaumburg, Illinois, U.S. Motorolans volunteer in a day care center The 68,000 employees who make up Team Motorola drive our success. We value the talents, ideas and enthusiasm each employee brings to work each day. And we work to attract and retain the best talent through our employee programs. You’ve already read about our commitment to diversity, high ethics, philanthropy, community service and wellness. We also offer strong benefits, competitive pay, development opportunities and flexible work options. Beyond basic benefits Develop your skills, grow your career Motorola seeks to provide world-class rewards strategies and programs that attract, retain and motivate the best people. Our total compensation package is competitive with the prevailing practices for each industry and country in which we operate. The Motorola global rewards team routinely surveys our competitors, conducts employee feedback sessions and polls human resources managers to ensure that our total rewards program provides a competitive package of benefits and services. We are committed to helping our employees grow and develop their skills. Job paths clearly define the knowledge, skills and behaviors required to excel in certain functional areas. Each employee creates an annual development plan to improve skills. When more formal education is required, a generous tuition reimbursement program makes it possible. Accredited business and technology programs even hold classes on some Motorola campuses. An energized, flexible environment A sample of our extensive family-friendly benefits (availability varies by country): preand post-natal programs, on-site childcare centers with back-up care and school’s-out programs, generous adoption assistance and a 24/7 resource and referral program offering consulting and education to help manage many life events. 36 Periodically, we engage our employees in a comprehensive survey. One of the primary concerns our employees have voiced is the need for help with balancing work and home life. In response, we’ve introduced options including home and breakaway offices, compressed work weeks, job sharing, part-time positions and non-standard work weeks. Select 2004 Awards Corporate Excellence Award Motorola received the U.S. Secretary of State’s Award for Corporate Excellence for stewardship in Brazil. We were one of two companies selected from 50 nominated by U.S. embassies for good business practices and contributions to local communities. Most Influential Multinational in China A survey conducted by the China Business News Network, China Business Daily, China International Intellectech Corp and Horizon Research Group named Motorola the Most Influential Multinational in China in 2004. Motorola ranked high on all survey parameters, including corporate image, internal process, market competitiveness, financial health, human resources, leadership, corporate culture, management system and crisis management. Israel Received 100 Star Award from the Beautiful Israel Association in recognition of 20 consecutive years of winning 5-Star Awards for exemplary work environment, employee welfare programs and community outreach activities in education, assistance to the underprivileged and protection of the environment Taiwan Singled out from 248 candidates as Best Enterprise by Commonwealth magazine for leadership position in the IT and telecommunications industry Israel Received Israel-America Chamber of Commerce & Industry award in appreciation for Motorola’s pioneering initiative in establishing a development center and a manufacturing facility in developing areas in Israel, and in recognition of community outreach and employment progress in development areas and in the management of over 4,000 employees Flensburg, Germany Won the DuPont Safety Resources European Award for its Health Promotion program for continuous shift work Chandler, Arizona, U.S. Commended by U.S. Region 9 for “significant contribution to the U.S. Environmental Protection Agency’s National Environmental Performance Track recruitment program” Illinois, U.S. ”Building Bridges and Futures” program received the Illinois State Board of Education’s Outstanding Business/Education Partnerships Award and the Award of Excellence for Community Volunteerism 37 Texas, U.S. Received Guardian Angel Award from Women’s Haven of Tarrant County, an organization to prevent domestic violence, for cleaning, painting and repairing housing units and its thrift store Canberra, Australia Received government recognition for providing equal opportunity for women in the workplace Taiwan Received the national Wenxin Award from the Taiwan Council of Cultural Affairs for sponsoring local cultural activity U.S. For the fifth year, named one of the 100 Best Corporate Citizens by Business Ethics, which surveys the 1,000 largest publicly traded companies to see which excel at serving seven stakeholder groups: stockholders, employees, customers, the community, the environment, overseas stakeholders and women and minorities Florida, U.S. Motorola Plantation facility accepted into Environmental Protection Agency’s National Environmental Performance Track program U.S. Named a top U.S. work/life employer by WorkLife Matters magazine Brazil Exame magazine’s “Good Corporate Citizenship Guide” recognized our community policing contest as a best practice for reducing violence Motorola, Inc. We welcome your comments and feedback on this report. 110 Please send your input to: 330 pounds Sheila Voth Motorola, Inc. 1303 East Algonquin Road Schaumburg, IL 60196 U.S. +1.847.538.4058 environment@motorola.com www.motorola.com/citizenship trees not cut down waterborne waste not created 47,900 gallons water/wastewater flow saved 5,100 pounds solid waste not generated This publication is printed on Mohawk Options 100% PC Cool White, Smooth 80-pound cover and 80-pound text, made with processchlorine-free 100% post-consumer waste fiber. The paper is certified by Green Seal and the Forest Stewardship Council and was manufactured using non-polluting, wind-generated energy. It was printed with all soy-based inks. The choice of this paper over non-recyclable ones yielded these approximate environmental savings: 9,900 pounds atmospheric emissions not generated 64,900,000 BTUs energy not consumed 1,400 pounds air emissions not generated RC-99-2067 MOTOROLA and the Stylized M Logo are registered in the U.S. Patent & Trademark Office. All other products or service names are the property of their respective owners. © Motorola, Inc. 2005. Communication design by Plan A at PlanA.com