2010 Sustainability Report - Cummins.com

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In 2010, Cummins strengthened its current policy banning political contributions using corporate funds to candidates, political parties or independent expenditure campaigns. Political contributions are still made by the Cummins Inc. Political Action Committee (CIPAC), but the committee is funded solely by voluntary employee contributions. CIPAC makes contributions to candidates on a bi-partisan basis after review and approval by CIPAC’s Executive Committee and according to federal law. For a complete list of the political action committee’s contributions to candidates, go to www.fec.gov. Lobbying Here is a list of the trade organizations that Cummins paid dues to in excess of $50,000 during calendar year 2009 and the U.S. Chamber of Commerce, which fell below that $50,000 threshold. Listed with each entity is Cummins’ estimation of the portion of these dues used by the organization for lobbying or other political expenditures. Group Amount for lobbying The American Trucking Associations $11,930 The Business Roundtable $35,718 Cummins PAC The Cummins Inc. Political Action Committee (CIPAC) is governed by corporate policies and by-laws that state: All CIPAC contributions are strictly voluntary. The Company will not reimburse employees directly or indirectly for political contributions. Employees will not be pressured to contribute to CIPAC or make any other personal political contribution. A decision not to contribute to CIPAC shall not disadvantage anyone in any way. Contributions to political candidates and political organizations are based on the following criteria: Public integrity of the candidate. Representation of a Cummins facility or employees. Support for issues of importance to Cummins. Timely and effective constituent service. Political leadership or organization. Support for our core values. All of our political activities are disclosed to the Cummins Board of Directors in an annual political contribution report. The Diesel Technology Forum $1,250 The Engine Manufacturers Association $12,800 The National Association of Manufacturers $21,012 U.S. Chamber of Commerce $10,000 60 Cummins Inc. Sustainability Report 2010
Flu outbreak puts pandemic plan into action While the 2009 outbreak of H1N1 influenza didn’t hit as hard as many feared, it provided a good opportunity for global companies like Cummins to test their response plans. The Company already had a pandemic plan in place based on an earlier threat of avian flu. A new H1N1 team just had to adapt it to the new conditions. A year ago this spring, H1N1 was very much on people’s minds. The virus, first widely reported in Mexico, seemed to be striking the young and healthy. Anxiety grew in workplaces across the world whenever anyone sneezed. In June 2009, the World Health Organization classified the outbreak as a global pandemic. Cummins moved quickly to produce and distribute posters describing symptoms of H1N1 influenza along with tips on preventive hygiene. These posters were translated and placed at the entry points of Cummins facilities everywhere. Employees and visitors were urged to screen themselves and to stay home if they displayed symptoms. At Cummins and elsewhere, people changed their behaviors at work, sneezing into their elbows and making liberal use of hand sanitizer, which is still available at the entrance to many Company facilities. To determine the appropriate local response to H1N1, Cummins cued off of the World Health Organization’s pandemic levels, translating these levels into specific actions for Cummins managers. The team created response stages corresponding to the intensity of local conditions and arranged for all major facilities to receive up-to-date medical and travel information. It was also important to adhere to local rules and regulations. For example, at Cummins facilities in Mexico the government asked businesses to close in the early stages of the pandemic. A Six Sigma team was launched to refine and improve the Company’s approach to pandemics. A diagram now details several specific activities and responsibilities for each department in the event of a pandemic. These steps will prepare Cummins for new H1N1 issues should the flu return in the winters of 2010 and 2011 as some predict, as well as any future pandemics. The pandemic team The pandemic team was led by Brenda Ball, Executive Director - Global Compensation & Benefits, and also included: Theodosia Rush, Director - HR Strategy Rob Norris, Corporate Communications Manager Kelli Smith, Corporate Safety Manager Jill Olds, Director - Health Care Strategy Pat D. Breeden, Global Travel Director Shelley Stewart, Executive Director – Global Security Dr. Marianne Lindroth Corporate Governance 61
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Cummins Inc. Sustainability Report
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Who we are Vision Making people’s
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Table of contents This year’s Sus
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To address the global challenges we
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Environment 9,000 tons of CO 2 emis
Page 11 and 12: The Cummins Operating System The Cu
Page 13 and 14: Clessie Cummins was known for his b
Page 15 and 16: Social issues, diversity and people
Page 17 and 18: The university’s emphasis on educ
Page 19 and 20: Cummins is a major participant in t
Page 21 and 22: Chairman and CEO Tim Solso (fourth
Page 23 and 24: Challenges ahead: The environment I
Page 25 and 26: Global on-highway standards 4.5 4.0
Page 27 and 28: Remanufacturing Cummins products Re
Page 29 and 30: Non-road useful life emissions tota
Page 31 and 32: ReCon plant opens in India Cummins
Page 33 and 34: Partnering with others Our own prod
Page 35 and 36: Environmental objectives and target
Page 37 and 38: 25% Percent change in revenue Since
Page 39 and 40: Cummins and climate change Here are
Page 41 and 42: Cummins accepted into U.K. Carbon T
Page 43 and 44: In December 2009, Cummins became a
Page 45 and 46: Combined heat and power 45% 85% ene
Page 47 and 48: India campus wins Chairman’s Awar
Page 49 and 50: Inside a classroom at Cummins Colle
Page 51 and 52: Partnering with Purdue, Rose Hulman
Page 53 and 54: Indiana Gov. Mitch Daniels (left) a
Page 55 and 56: Challenges ahead: Governance and Ri
Page 57 and 58: Robert J. Bernhard Vice President f
Page 59 and 60: Dr. Franklin Chang-Diaz Title: Chai
Page 61: Cummins started an Internet-based c
Page 65 and 66: Cummins has been working with Ithem
Page 67 and 68: Employees from the Dongfeng Cummins
Page 69 and 70: Challenges ahead: Corporate respons
Page 71 and 72: Audit Committee Chairman Marsha Hu
Page 73 and 74: A generator set operating on vegeta
Page 75 and 76: Lokesh Agrawal, Customer Interface
Page 77 and 78: Cummins employees regularly visit P
Page 79 and 80: Other Environmental Challenge grant
Page 81 and 82: GRANTEE ORGANIZATION COMMUNITY GRAN
Page 83 and 84: GRANTEE ORGANIZATION COMMUNITY GRAN
Page 85 and 86: Mary Kate (left), can only move her
Page 87 and 88: The Cummins Power Generation Plant
Page 89 and 90: “Satisfaction has increased withi
Page 91 and 92: Create a workplace population with
Page 93 and 94: Cummins’ definition of diversity
Page 95 and 96: Taking diversity to the next level
Page 97 and 98: Council plays key role The Diversit
Page 99 and 100: Smaller diverse suppliers can play
Page 101 and 102: Cummins workforce Here’s a quick
Page 103 and 104: President and COO Tom Linebarger sp
Page 105 and 106: The investment is paying off. Becau
Page 107 and 108: Pat Ward, Vice President - Chief Fi
Page 109 and 110: Six Sigma delivers for Cummins Ten
Page 111 and 112: Our new strategic principle Cummins
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Components Sales: $2.4 billion EBIT
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Production Notes Design and writing
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