Cummins Inc. 2007 Sustainability Report

In 2007, Internal
Audit issued
more than 130
audit reports
and audit
memos covering
functions and
businesses
around the globe.
In 2007, the Company completed a Six
Sigma quality project aimed at reducing
the time necessary to close investigations.
As a result, the average time to close fell
from more than 60 days at the end of
2006 to just under 20 days at the end of
2007, despite an increased number of
investigations over that period.
The Company’s reporting system and its
commitment to investigate, take action and
protect those who raise concerns help us
bring our Code of Business Conduct to life.
Ethics Certification Process
In 2007, more than 10,000 Cummins
employees completed an Ethics
Certification in which they certified their
compliance with the Company’s Code of
Business Conduct and underlying policies
and reported any exceptions to Company
policy. Internal Audit and the Cummins
Law Department reviewed all exceptions to
ensure they were handled correctly under
Company policy.
Diversity Audits
Rigorous diversity audits have been
conducted at Cummins’ facilities for
more than a decade and are today a
central component of our efforts to ensure
that employees enjoy a positive, safe and
productive work environment.
The process began in 1997, led by the
Cummins Law Department, and is focused
on making sure that our locations are in
compliance with the laws, are operating
in a way consistent with our commitment
to diversity and equal opportunity, and are
taking the right steps to provide employees
26 Cummins Inc. 2007 Sustainability Report
with a great place to work. In that time, the
Company has conducted 56 diversity audits
at 30 sites in the United States and Europe.
The audits are conducted by teams of
four to eight employees with diverse
backgrounds who have no direct
connection to the site being audited. The
team tours the facility and also examines
satisfaction surveys, training records,
personnel files and other documents to
ensure full legal compliance and assess the
work environment. The audit also examines
the diversity of employees and the site’s
commitment to creating an inclusive and
representative workforce.
A key component of the audit involves
team members conducting confidential
one-on-one interviews with a randomly
selected cross section of approximately
10 percent of the site’s workforce.
Employees are asked a variety of
questions regarding their work environment,
knowledge of workplace policies and
procedures, and their perceptions as to
whether local management is committed
to the Company’s values, most notably our
Code of Business Conduct, Treatment of
Each Other at Work policy and diversity.
Results of the audits are shared with local
management and with the Company’s
senior leadership. If issues are discovered,
the site must create an action plan to
address issues. Currently, the Company
conducts audits at its facilities in the United
States and Europe and is exploring how to
expand the program to locations in other
parts of the world.