Cummins Inc. 2007 Sustainability Report

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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.
Supplier Code of Conduct Cummins places a premium on doing business with companies that share its values and that treat their employees with dignity and respect. In 2005, Cummins created a Supplier Code of Conduct, which it has rolled out to more than 2,800 suppliers representing nearly all the Company’s supplier spending. The Code spells out standards of employee treatment to which it expects its suppliers to adhere, including provisions banning child or forced labor and those which encourage suppliers to provide a safe workplace their employees. Suppliers were asked to establish a process ensuring compliance with the intent of the code and to provide a means for workers to anonymously report violations without fear of retribution. At the end of 2007, Cummins had received a 99.5 percent response rate, with 99.6 percent of those responding indicating that they were in compliance with every element of the code. In certain regions where Cummins conducts a significant part of its business, including India and China, response and compliance rates reached 100 percent. Cummins is working with those suppliers who have not responded to attain our goal of 100 percent participation. An examination of the self-reported non-compliance information revealed no significant variance to the intent of the policy. In addition, Cummins has begun a process to assess compliance with the Supplier Code while on visits to customers in China and Japan. Internal Audit Yancey Jones, a Cummins new hire, meets with a member of his diverse group. On his immediate work team, there are people representing four of the seven continents around the globe. Cummins has a robust global Internal Audit department that provides the Board of Directors and management with independent, objective information on the performance of the Company’s control environment. The Executive Director — Internal Audit reports to the Audit Committee of the Board of Directors and helps the Audit Committee ensure the integrity of the Governance 27
Page 1: Cummins Inc. 2007 Sustainability Re
Page 4 and 5: Cummins Inc. About this Report The
Page 6 and 7: “Corporate responsibility and wor
Page 8 and 9: The power of our Company is not jus
Page 10 and 11: “On any given day, there are appr
Page 12 and 13: As of the end of 2007, Cummins was
Page 14 and 15: “Cummins can create an advantage
Page 16 and 17: Cummins uses a voice of the custome
Page 18 and 19: Cummins has launched a focused effo
Page 20 and 21: We continuously work with customers
Page 22 and 23: “We rely on our core values to gu
Page 24 and 25: Going back to its earliest days, Cu
Page 26 and 27: “Cummins has created an environme
Page 30 and 31: “Cummins leverages the expertise
Page 32 and 33: The primary mission of the Board of
Page 34 and 35: “Every employee at Cummins should
Page 36 and 37: As a result of our outstanding tech
Page 38 and 39: “We believe we can’t be success
Page 40 and 41: Having the ability to meet a broade
Page 42 and 43: Cummins has worldwide experience an
Page 44 and 45: “We believe the right technology
Page 46 and 47: “We take pride in our work and ar
Page 48 and 49: “Being a lowcost producer is esse
Page 50 and 51: Emission Solutions offers exhaust a
Page 52 and 53: “The best way to have great emplo
Page 54 and 55: “Cummins’ future is based on ho
Page 56 and 57: The Cummins Science and Technology
Page 58 and 59: By the end of 2007, Cummins had 42
Page 60 and 61: “I am honored to work at a compan
Page 62 and 63: Manufacturing Operations For perspe
Page 64 and 65: Materials Category 2004 2005 2006 M
Page 66 and 67: “Working for a winning organizati
Page 68 and 69: Significant emissions reductions ha
Page 70 and 71: Ozone Depleting Substances In 1995,
Page 72 and 73: “We view our vendors and supplier
Page 74 and 75: Our goal is to make Cummins a best-
Page 76 and 77: “The safety and well-being of our
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Entities are recognized at four dis
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“Creating a great place to work i
Page 82 and 83:
“Every person must be treated wit
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“Being a successful company means
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Cummins Named Among Top 50 Companie
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“At Cummins, we strive to foster
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Cummins’ focus on corporate respo
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From raking leaves to reading to ch
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“Six Sigma is an indispensable im
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The Cummins Foundation Report Cummi
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The Cummins Foundation - 2007 Grant
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Grantee Community Purpose Amount Pa
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Cummins Inc. 500 Jackson Street Col
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Cummins Inc. 2007 Sustainability Report

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