ABOUT THIS REPORT The information in this report is ... - Cummins

GOVERNANCE & RISK
Members of Cummins’ Board
of Directors visited China in
the fall of 2011, participating
in a ceremony celebrating the
expansion of the Company’s
East Asia Research &
Development Center in Wuhan,
visiting various facilities and
meeting with key personnel
and customers.
GOVERNMENT RELATIONS AND
POLITICAL ACTIVITY
Cummins has government relations
employees around the world working on
issues that might have a significant impact
on the Company, such as energy policy,
environmental legislation, taxes, trade
and transportation to name just a few.
The Company maintains an office in
Washington, D.C. but with more than
While Cummins might not agree with the
positions these associations take on every
issue, the Company believes participating
in these groups helps ensure government
officials know where Cummins’ stands on
matters critical to the Company.
Political contributions
Cummins bans contributions using
corporate funds to candidates, political
parties and independent expenditure
CIPAC is governed by corporate
policies and bylaws 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.
LOBBYING
The following list of U.S. trade organizations
to which Cummins paid dues in excess
of $50,000 during calendar year 2011
and the U.S. Chamber of Commerce,
which fell below the $50,000 threshold.
Listed with each entity is Cummins’
estimation of the portion of these dues
used by each organization for lobbying
or other political expenditures.
LEFT Cummins’ Board of
Directors visit a Company
plant in Wuhan during their
trip to China.
RIGHT Cummins’ Board of
Directors visit the Beijing Foton
Cummins Engine Company
during their trip to China.
GOVERNANCE & RISK
60 percent of Cummins’ sales coming
from outside the United States, the
Company also has government relations
employees in China and India, too.
These employees work to ensure that
Cummins’ voice is heard. For example,
Cummins worked extensively in Washington
to protect the U.S. Environmental
Protection Agency’s 2010 heavy-duty
on-highway emissions standards from
campaigns. This ban includes contributions
to 501 (c) (4) and 527 tax-exempt groups
in the United States for the purpose of
engaging in political activity. On ballot
measures deemed vital to the Company’s
interests, Cummins is committed to publicly
disclosing any payments made directly to
influence the outcome, including recipient
names and amounts.
Political contributions are made by the
»»
A decision not to contribute to
CIPAC shall not disadvantage an
employee’s career 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.
The American Trucking Associations
$11,930
The Business Roundtable
The Diesel Technology Forum
$127
The Engine Manufacturers
Association
$8,680
$30,326
delay or modification and supported the
government’s effort to establish the first
ever greenhouse gas and fuel consumptions
standards for commercial vehicles.
Cummins belongs to a number of trade
organizations to further its business
interests. These organizations help
Cummins Inc. Political Action Committee
(CIPAC), but the committee is funded
solely by voluntary employee contributions.
CIPAC makes contributions to federal
candidates on a bipartisan basis after
review and approval by CIPAC’s Executive
Committee and according to federal law.
»»
Support for issues of importance
to Cummins.
»»
Timely and effective constituent service.
»»
Political leadership or organization.
»»
Support for the Company’s values.
All of CIPAC’s political activities are
The National Association of
Manufacturers
U.S. Chamber of Commerce
$12,500
$21,012
the Company by leveraging Cummins’
For a complete list of the political action
disclosed to the Cummins Board
resources with other companies on
committee’s contributions to candidates,
of Directors in an annual political
issues where we share similar positions.
go to www.fec.gov.
contribution report.
100 SUSTAINABILITY REPORT 2011–2012 SUSTAINABILITY REPORT 2011–2012 101