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

Letter from the chairman
Table of contents
Welcome to the 2011-2012 Sustainability
Not only is there a direct tie between
Letter from the chairman 2
Corporate Responsibility
Report. I’m pleased to report that 2011
was another outstanding year for Cummins
both in terms of our financial performance
as well as our commitment to a cleaner,
healthier and safer environment.
At Cummins, we believe that sustainability
starts with a strong financial performance.
Our Company had record revenue and
profits in 2011. Revenue for the full year
was $18 billion, up 36 percent from 2010,
and Earnings Before Interest and Taxes
(EBIT) increased by 54 percent compared
to a year ago. Our balance sheet is strong,
as our cash balances finished the year
at $1.5 billion, more than twice our
outstanding debt.
The strong financial performance in
2011, as well as in prior years, has
enabled our Company to make the
necessary investments to develop and
maintain technology leadership in our
industry, to further expand our global
reach with manufacturing, engineering,
and customer service, and to increase
our capacity to meet growing demand.
All of these investments are vital to
sustain our future profitable growth.
At Cummins, we also recognize that
our long term sustainability depends
on the success of a number of other key
stakeholder groups. In fact, the stakeholder
model was championed by our former
Chairman and Chief Executive Officer,
our future growth and the success of our
stakeholders, but it is in our self-interest as
a company to invest in our stakeholders’
success. For example, we believe that
our Company is only as strong as the
communities where our employees live
and work. Stronger communities mean
that we can attract and retain the best
talent and ultimately lead to more robust
markets for our products and services.
The theme of this year’s report, The Power
of Engagement, fits well with Mr. Miller’s
ideals that we partner with our stakeholders
to achieve success and promote our
mission that “everything we do leads
to a cleaner, healthier, safer environment.”
As you read this report, I think you will see
many examples where Cummins employees
are engaging with the community to make
things happen. They are working closely
with key community partners, leveraging
the skills and capabilities of Cummins,
and investing in community projects that
make a difference.
On a personal note, it is an honor and
privilege to assume the leadership of a
company with a long history of achievement
and great values. Much like my predecessor
Tim Solso, I feel a tremendous responsibility
to be a good steward of Cummins and its
stakeholders. I am committed to building
an even stronger and more sustainable
company during my time as leader.
INTRODUCTION
Cummins around the world 4
Who we are 6
How we do it 7
Our history 8
Vision, mission,
values and principles 10
Our recognition 12
Environment
SuperTruck project is ready to take off 14
Products 18
Hedgehog: Big can still be green 28
Profitable and green after 10 years 30
Zero can be a big number 31
Practices 32
Let the sun shine in! 41
Silence is music to neighbor’s ears 42
Partnerships and policy 44
Collaborating with customers
for better performance 46
A family affair 50
Energy savings from the
earth’s core to the shop floor 52
COVER STORY
Vocational education: changing lives,
strengthening communities 54
Living our corporate responsibility
value takes many forms in 2011–2012 58
Challenge keeps growing
in scope, impact 61
Power for Padarwadi, and beyond 68
Putting our professional skills to work 70
Philanthropy:
augmenting our skills and passions 73
Foundation Leaders 77
Employee Relations
A record year in safety 78
‘Ergo Team’ charts safer path for plant 81
Leveraging the full benefit of diversity 83
Making a difference
for women at Cummins 86
Taking supplier diversity
to the next level 88
Development mindset key
to sustainable workforce 90
Governance & Risk
Sustainability built
on good governance 92
Cummins Board of Directors 96
Managing risk key to sustainability 98
FINANCIAL
Cummins records strong financial
performance over past year 102
Introduction
J. Irwin Miller, who believed strongly
that it is in Cummins’ self-interest to
Transition goes according to plan 104
ensure that all stakeholders share in
our Company’s success.
Tom Linebarger
Chairman and Chief Executive Officer
Cummins Inc.
2 SUSTAINABILITY REPORT 2011–2012 SUSTAINABILITY REPORT 2011–2012 3