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2011 Corporate Sustainability and Social Responsibility ... - Cintas

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to benchmark our gains. At the close of the year, we were well on our wayto achieving the fourth tenet – where safety becomes a true corporate value.This year, we are accelerating our journey to the fifth tenet – where safetyis instinctive, a part of our DNA. That’s the mark of a world-class organization.Lost workdaycases decreasedby 32% overthe last threefiscal yearsProtecting the Health <strong>and</strong> Safety of Our PeopleWe protect the health <strong>and</strong> safety of our employee-partners – at more than 430facilities across the globe – through a robust series of stringent processes <strong>and</strong>vetted programs supported by employee-driven Safety <strong>and</strong> ImprovementCommittees at each facility. This site-specific approach identifies <strong>and</strong> correctspotential safety issues faster than a centralized approach <strong>and</strong> enlists every partnerin maintaining an injury-free workplace.Also during fiscal <strong>2011</strong>, <strong>Cintas</strong>:• Employed more than 60 <strong>Corporate</strong> Safety Team members specializing in safety<strong>and</strong> health performance improvement.• Logged more than 200,000 hours of on-site safety training by frontlineemployee-partners.• Inspired more than 300 management team members to attend OSHA’s10-hour safety improvement course, bringing the total number of trainedmanagement <strong>and</strong> frontline production partners to more than 3,400.• Ensured every <strong>Cintas</strong> facility underwent at least two 320-point safetyaudits annually.• Enrolled corporate safety team employee-partners in occupational safety <strong>and</strong>health courses so they, in turn, could enrich our corporate safety programs.• Reaffirmed safety engagement as a corporate priority, with CEO Scott Farmerchairing the Executive Safety Council <strong>and</strong> three respected safety expertsserving as outside advisors.The <strong>Cintas</strong> Safety Vision• Every <strong>Cintas</strong> location is injury-free.• Every employee-partner is engaged in continuouslyimproving safety.• <strong>Cintas</strong> is a widely recognized world leader in safety<strong>and</strong> health performance.4


Completion ofnext-gen safetyadvancementsSafety by DesignFacility design <strong>and</strong> technology are critical factors in advancing workplace safety, <strong>and</strong> we are nationallyrecognized for our innovation in this area. Our newest production centers are bright, air-conditioned<strong>and</strong> high-tech.In fiscal <strong>2011</strong>, we completed next-generation safety enhancements in all our automated <strong>and</strong> semiautomatedindustrial laundry facilities, a major initiative begun in 2009. Specifically, we:• Installed Wash Alley Safety Systems (WASS) engineered to control all hazardous motion whenan employee-partner enters the restricted area. This advancement prevents unauthorized access<strong>and</strong> eliminates the potential for injuries due to automatically moving equipment.• Re-engineered wash alley equipment <strong>and</strong> components in partnership with industrial washroom suppliers.• Retrofitted every service <strong>and</strong> delivery vehicle in our uniform rental division with “three points ofcontact.” These devices help drivers avoid injuries due to slips, trips <strong>and</strong> falls. They also reduceoverall physical stress on the body during the performance of routine duties.In-depth safetytraining <strong>and</strong>reinforcementSafety Training in PracticeWe believe that all injuries are preventable. That’s why every employee-partner is involved in a multifacetedsafety training <strong>and</strong> performance program that moves us closer to an incident-free workplace.Our program is a model in the industry <strong>and</strong> features:• Job Safety Analysis (JSA) for every task performed in the company. Each JSA identifies potentialrisks, controls protocols <strong>and</strong> pinpoints training opportunities <strong>and</strong> personal protective equipmentneeded to prevent injury in each position.• Internal safety scorecard audits at every facility, twice yearly, to ensure compliance with OSHAst<strong>and</strong>ards <strong>and</strong> internal safety requirements.• Intensive management safety leadership skills course completed by all members of senior management.Driving Safety for Employee-Partners on the Road5In June of <strong>2011</strong>, <strong>Cintas</strong> deployed a new technology across ourUniform Rental Division – further ensuring the safety of ouremployee-partners on the road. Developed by inthinc TechnologySolutions Inc., inthinc tiwiPro TM is a real-time management systemthat allows us to monitor our vehicles’ fuel usage <strong>and</strong> view GPSbasedtrip details. It also helps us ensure our drivers’ safety throughin-cab verbal alerts for speeding, seatbelt use <strong>and</strong> other aggressivedriving behavior. The technology has been documented to reduceaccidents by more than 80 percent.


• <strong>Cintas</strong> Safety Observation Program practiced by frontline production employeepartners<strong>and</strong> members of each facility’s Safety <strong>and</strong> Improvement Committee.This peer-to-peer program empowers employee-partners at all levels to makesafety improvement efforts on their own.• Industrial Athlete training aimed at 1) reducing the risks of musculoskeletalinjuries through the use of proper lifting techniques, material h<strong>and</strong>ling devices<strong>and</strong> equipment; 2) staying hydrated when working in extreme weatherconditions; <strong>and</strong> 3) focusing on the fundamentals of proper rest <strong>and</strong> nutritionto avoid injury.• In-depth safety training for our entire sales team, making them the “first lineof defense” in identifying potential safety risks at new customer locations.Receivedhighest safetyaward fromOSHARecognizing Exemplary Safety• First industrial launderer <strong>and</strong> first document management company in theU.S. to receive the Voluntary Protection Program (VPP) “Star” certification fromOSHA, the highest safety award bestowed by the agency. This prestigiousaward has now been awarded to three <strong>Cintas</strong> locations:• San Jose, CA Document Management• Ch<strong>and</strong>ler, AZ Uniform Rental• Frankfort, IN Uniform Rental• In addition, our Charlotte, NC Uniform Rental Branch achieved Rising Starstatus under the Carolina Star program.• Four <strong>Cintas</strong> locations awarded Safety & Health Achievement RecognitionProgram (SHARP) certification, the second highest honor bestowed by OSHA.• Portl<strong>and</strong>, OR Document Management• Reno, NV Distribution Center• Eugene, OR Uniform Rental Branch• Medford, OR Uniform Rental Branch• <strong>Cintas</strong>’ Calgary <strong>and</strong> Edmonton facilities were awarded Certificates ofRecognition (COR) through Canada’s Alberta Province Partnerships in InjuryReduction Program.• More than 100 <strong>Cintas</strong> operations are actively pursuing OSHA VPP“Star” or SHARP certification, or Canada’s COR recognition, for sustainedsafety excellence.6


Going for Gold by Going GreenThree years ago, <strong>Cintas</strong> launched an ambitious, system-wide sustainability effort that is fundamentallychanging the way we do business. To call it a “new initiative” is to overlook its historical roots <strong>and</strong>long-term impact. Inspired by the waste-not ethos of our founder, our green efforts are truly transformingthe company <strong>and</strong> the communities where we operate. They resonate because they are as much aboutprotecting the environment as protecting people – <strong>and</strong> because they are enthusiastically embracedby our employee-partners.7


We are committed to environmental <strong>and</strong> economic sustainability, <strong>and</strong> that loftygoal dem<strong>and</strong>s constant innovation. To help ensure we remain a financially healthycompany for many years to come, we are continually looking for more sustainableways to run our business. At <strong>Cintas</strong>, every decision, large or small, considers thecurrent <strong>and</strong> future environmental impact on our employee-partners, communities<strong>and</strong> customers.Accolades <strong>and</strong> ImpactLast fiscal year, our green philosophy earned us Newsweek recognition as oneof the greenest big companies in America. This year, we garnered ten moreenvironmental leadership awards. These accolades attest to the ardor of ourbeliefs <strong>and</strong> the efficacy of our efforts.Corporations Collaborate, Form Green Business CouncilKey environmental <strong>and</strong> sustainability leaders from sevenCincinnati area corporations joined forces in <strong>2011</strong> toestablish the Greater Cincinnati Green Business Council(GCGBC). Initiated by <strong>Cintas</strong>, the council is the area’sfirst collaboration of local business leaders dedicatedto promoting sustainability while increasing the bottomline. The group includes representatives from Procter &Gamble, Mitsubishi Electric Automotive America, MelinkCorporation, Macy’s, Luxottica Group <strong>and</strong> Fifth Third Bank.“Each member of the GCGBC brings unique experiences <strong>and</strong> innovativesolutions that are already creating added value. The opportunity to shareideas that accelerate change within our organizations while collectivelyidentifying projects that could benefit the Greater Cincinnati region isa win-win,” said Pamela Coleman, <strong>Cintas</strong>’ Senior Director of SupplierDiversity & <strong>Sustainability</strong>.The GCGBC’s vision is to drive Greater Cincinnati employers to be thesustainability leaders in America. Today, it is actively involved in the processof developing ways to educate the business community on reaching that goal.8


310,000 tons ofpaper recycledDocument ShreddingIn the last nine years, we have acquired almost 100 companies in the document destruction, storage<strong>and</strong> imaging business, making us one of the largest providers in the world. In fiscal <strong>2011</strong>, those facilitiesrecycled more than 310,000 tons of shredded documents into reusable paper products. The environmentalimpact of that work is staggering. Last year alone, it saved:• Trees: 8,022,881• Net Energy: 10,015,983 million BTUs, the equivalent of about 110,066 homes/year• Greenhouse Gases: 1,867,659,938 pounds CO2, the equivalent of about 169,587 cars/year• Wastewater: 6,890,048,778 gallons, the equivalent of about 10,433 swimming pools• Solid Waste: 595,950,243 pounds, the equivalent of about 21,284 garbage trucksTrees Saved *8,022,8816,633,9176,879,9602009 2010 <strong>2011</strong>* Environmental impact estimates were based onthe Environmental Paper Network Paper Calculator.For details, visit www.papercalculator.org.SmartShred TM Days Create a Greener Globe9<strong>Cintas</strong> hosted free, secure shred days in more than 200 communitiesaround the U.S. <strong>and</strong> partnered with the National Foundation of CreditCounseling to co-sponsor 150 more shred days as part of ProtectYour Identity Week/Secure Your Identity Month. The events helpedmore than 24,000 consumers protect their identities from theft <strong>and</strong>generated more than 566 tons of recycled paper. One event, GoodRiddance Day in Times Square, even broke the Guinness World Recordfor most paper collected in 24 hours.


2.5 millionplastic bottlesdivertedSustainable Products <strong>and</strong> ServicesWe diverted more than 2.5 million plastic bottles as a result of several innovativeproduct introductions in fiscal <strong>2011</strong>:• Full Circle Eco Polo, a “green” polo made from a recycled polyester/eco-charcoalblend. At the end of its lifecycle, the garment can be recycled into new material,creating a closed-loop system <strong>and</strong> helping organizations further enhance theirgreen apparel programs.• Washable tuxedo, which won the Editors’ Choice Award for Green GuestAmenities at the International Hotel, Motel + Restaurant Show (IHMRS).• Eco-Friendly Scrub Apparel Line, winner of the <strong>2011</strong> UNIVATOR Award.• New Rental Floor Mat made from 20-50 percent post-consumer material.www.cintas.com/greenAdvantage IQ Supports <strong>Cintas</strong>’ Commitment to <strong>Sustainability</strong>As part of our corporate-wide sustainability initiative, we recently selectedAdvantage IQ, Inc. to be our Energy Management Firm of Record.Advantage IQ, a provider of strategic energy management services formore than 500 multi-site companies throughout North America, providesadvanced software that gives us real-time access to our energy consumptionpatterns. This allows us to make informed, data-based decisions that willsignificantly help reduce our environmental footprint <strong>and</strong> greenhousegas emissions.We’ve also implemented Advantage IQ’sgreenhouse gas reporting tool, which tracks<strong>and</strong> benchmarks all significant carbonemission sources from <strong>Cintas</strong> facilities<strong>and</strong> vehicles. In addition, we’re leveragingAdvantage IQ’s expertise to create aninternal communications campaign toshare best practices for sustainabilityacross our organization – using the datawe find to gauge how efficiently eachof our sites is consuming energy.41.2%NaturalGas6.8%Gasoline17.3%DieselFuel34.8%ElectricityCarbon Usage10


Advancing Workforce Diversity <strong>and</strong> InclusionDiversity <strong>and</strong> inclusion are central to the <strong>Cintas</strong> culture of deep employee-partner engagement.We believe that building a diverse, inclusive workforce is the best way to underst<strong>and</strong> <strong>and</strong> serve ourcustomers, live up to our credo of exceeding customer expectations <strong>and</strong> be a force for meaningfulsocial change.11


30,000employeepartnerssurveyedElevating Employee-Partner Engagement <strong>and</strong> SatisfactionIn fiscal 2010, we surveyed all 30,000 employee-partners on their satisfaction<strong>and</strong> sense of connection to the company. Spring International, an independentresearch firm <strong>and</strong> certified Women <strong>and</strong> Minority-Owned Business, conducted thisbaseline survey <strong>and</strong> it yielded tremendous insights. It reinforced many things wedid well – like promoting safety as a top priority at <strong>Cintas</strong>. It also highlightedareas of opportunity for more fully valuing our employee-partners’ diversebackgrounds, talents, experiences <strong>and</strong> ways of thinking.We learned that 64 percent of our employee-partners are “fully engaged” –a percentage just one point away from a Best in Class rating for employeeengagement. That was gratifying news, but our spirit of “positive discontent”compels us to shoot higher. In fiscal <strong>2011</strong>, we committed ourselves to creating<strong>and</strong> executing an engagement action plan based on partner feedback at alllevels of the organization. We relied on technology <strong>and</strong> <strong>Cintas</strong> ingenuity toexp<strong>and</strong> upon current communications platforms. We also created a careerdevelopment site on the <strong>Cintas</strong> intranet <strong>and</strong> invested in new training. Theseefforts <strong>and</strong> many others will ensure that <strong>Cintas</strong> continues to be a great placeto work.Five Core Attributes of Diversity <strong>and</strong> Inclusion• Partner Engagement – employee-partnerrecruitment, retention, development <strong>and</strong>promotion• Supplier Diversity – economic inclusion,innovation <strong>and</strong> value• <strong>Corporate</strong> Citizenship – grassroots<strong>and</strong> corporate-sponsored philanthropy,volunteerism <strong>and</strong> social responsibility• Multicultural Marketing – listening to our customers <strong>and</strong> deliveringproducts <strong>and</strong> services that exceed their expectations• Governance – EEO compliance, affirmative action <strong>and</strong> inclusion policiesthat provide equal opportunities for all partners <strong>and</strong> applicants12


2,000 employeescompletedEmotionalIntelligence <strong>and</strong>Diversity (EID)trainingDiversity Advancement Initiatives• Leadership DevelopmentIn addition to offering online <strong>and</strong> classroom diversity <strong>and</strong> inclusion training for several years, <strong>Cintas</strong>launched Emotional Intelligence <strong>and</strong> Diversity (EID) training in <strong>2011</strong>. This equips our leadership teamswith a rich new toolset focused on introspective thinking, relationship management <strong>and</strong> empathy inemployee-partner engagement. Since January, more than 2,000 employee-partners have completedthe training. Their insights are having a visible impact on employee-partner engagement – which willbe quantified in a follow-up satisfaction survey in fiscal 2012.• Mentoring Programs<strong>Cintas</strong> employs an internal mentoring program in which employee-partners are paired with companyleaders who provide them with important support, counseling <strong>and</strong> constructive feedback – helpingthem advance their careers <strong>and</strong> overall workplace contributions.Long-st<strong>and</strong>ingpartnerships withseveral minorityorganizations• Workforce DiversificationWe continued our long-st<strong>and</strong>ing partnerships with the Urban League, INROADS, the National BlackMBA Association, the National Society for Hispanic MBAs <strong>and</strong> several predominantly minority colleges<strong>and</strong> universities. We are also working to strengthen our partnerships with the Asian <strong>and</strong> Women MBAAssociations <strong>and</strong> cultivate new partnerships with additional minority colleges <strong>and</strong> universities.“I consider it an honor to be mentored by <strong>Cintas</strong> executiveswho have a vested interest in my development. Both of the <strong>Cintas</strong>Executives who have served as my mentor provide invaluableinsight <strong>and</strong> exposure. I’m also in several mutually beneficial peermentoring relationships. I appreciate <strong>Cintas</strong> for providing the toolsto support mentoring <strong>and</strong> encourage all <strong>Cintas</strong> partners to seeka formal or informal mentor.“– Marsha Thornton, Manager, Talent Resources <strong>and</strong> Engagement13


(left to right)Robert J. Kohlhepp, ChairmanScott D. Farmer, CEOJ. Phillip Holloman, President & COO92% of <strong>Cintas</strong>’INROADSscholarsacceptedfull-timepositions• INROADS Scholar ProgramThrough INROADS, <strong>Cintas</strong> prepares minority students for full-time, post-graduateemployment at our company. Since 1996, INROADS has been providing thesetalented scholars with paid internships to help prepare them for corporate <strong>and</strong>community leadership opportunities. Our current retention rate for INROADSscholars placed with us is 79 percent – which is higher than the national INROADS’retention rate, but equal to the regional INROADS’ office retention. In addition,92 percent of <strong>Cintas</strong>’ INROADS scholars accepted full-time employment offerswith us upon graduation.In fiscal <strong>2011</strong>, 21 participating scholars traveled from around the United States<strong>and</strong> Canada to experience INROADS Scholar Days at our corporate headquartersin Cincinnati, Ohio. Scholars met our senior executives, participated in developmentalleadership training <strong>and</strong> seeded lifelong relationships with other INROADS scholars.Additionally, the young men <strong>and</strong> women engaged in community service,where they worked side by side with <strong>Cintas</strong> employee-partners to helpimprove the lives of the less fortunate.“Without question, being a part of the INROADS program has hada life-changing impact on both my personal <strong>and</strong> professional life.This program did more than just pair me with a company, it gaveme the tools to be a successful <strong>Cintas</strong> Scholar. That prepared meto be an outst<strong>and</strong>ing Management Trainee which then led to mycurrent role as a Production Manager at our Memphis UniformRental location. I will forever be grateful for the foundation INROADSlaid in me of business acumen, professional networking <strong>and</strong> mostimportantly the acclimation into corporate America. I am a proudINROADS Alumnus!”– Vince Winston, Production Manager, Memphis, TN14


Supplier Diversity: Blazing a Trail Toward World-ClassSupplier diversity is more than a program at <strong>Cintas</strong>. It’s a strategic business philosophy <strong>and</strong> a competitiveadvantage. We actively support the growth <strong>and</strong> development of minority- <strong>and</strong> women-owned businessesthrough a robust work plan that requires the collective efforts of the entire organization. Our goal isto exp<strong>and</strong> <strong>and</strong> maximize the use of our network of certified diverse suppliers to enhance value <strong>and</strong>drive a competitive advantage in the marketplace.15


“Supplier diversity is an important component of our long-term business strategy.It’s important because it enhances <strong>Cintas</strong>’ ability to meet customer needs byreflecting the changing demographics of the end consumer, while providingincreased competition, creativity <strong>and</strong> flexibility in our supply chain.”– Scott D. Farmer, CEOSupplier Diversity ChampionsAs a major corporate initiative with widespread support, supplier diversityhas earned the ardent support of <strong>Cintas</strong> President <strong>and</strong> COO Phillip Holloman.Our commitment is demonstrated through the development <strong>and</strong> engagementof the Supplier Diversity Executive Steering Committee. Members of the committeealso consider themselves “supplier diversity champions.” These senior-levelchange agents advocate internally <strong>and</strong> externally for the wisdom <strong>and</strong> necessityof building a supplier network that is reflective of the diverse business community.They are actively advancing our journey to world-class status.“<strong>Cintas</strong> has quickly moved through the continuum to world-class in recordspeed. And they show no signs of letting up.”– Melvin Gravely II, PhD, Managing Director of The Institutefor Entrepreneurial ThinkingNearly $160million spentwith diversesuppliersIncreasing Spend with Diverse SuppliersWe challenge ourselves each year to escalate both the dollar amount <strong>and</strong>percentage of our budget spent with diverse suppliers. Fiscal <strong>2011</strong> was noexception. We spent nearly $160 million with minority- <strong>and</strong> women-ownedbusinesses, which represented 11 percent of our total external domestic spend.Total Money Spent$160 M$140 M$120 M$100 M$80 M6.30%8.00%8.77%10.00%11.03%% of Total Spent2007 2008 2009 2010 <strong>2011</strong>16


For our efforts, <strong>Cintas</strong> received the Michigan Minority Supplier Development Council’s <strong>Corporate</strong> ONEAward <strong>and</strong> the South Central Ohio Healthcare Supplier Diversity Symposium’s Spirit of Diversity Awardin fiscal <strong>2011</strong>. We were also honored to receive Corporation of the Year nominations for the NationalMinority Supplier Development Council <strong>and</strong> South Central Ohio Minority Supplier Development Council.<strong>Cintas</strong> speaksnationally onbest practices forpromoting supplierdiversitySupplier Diversity in Action• National Advocacy<strong>Cintas</strong> is active in two pivotal diversity organizations – the National Minority Supplier DevelopmentCouncil <strong>and</strong> Women’s Business Enterprise National Council. Dave Wheeler, senior vice president ofglobal supply chain, was recently appointed to the national board of the National Minority SupplierDevelopment Council. Pamela Coleman, senior director of supplier diversity <strong>and</strong> sustainability,speaks nationally on best practices in building supplier diversity programs.“To be successful <strong>and</strong> sustainable, our supply chain must allow all suppliers an equal<strong>and</strong> fair chance to compete for our business.”– Dave Wheeler, Senior Vice President – Global Supply Chain <strong>and</strong> <strong>Corporate</strong> Six Sigma• Business Development Courses<strong>Cintas</strong> invests in the long-term sustainability of minority- <strong>and</strong> women-owned businesses by sponsoringa series of business development courses. In fiscal <strong>2011</strong>, more than 100 diverse supplier representativesPioneers of Diversity<strong>Cintas</strong>’ commitment to inclusion began long before corporateAmerica connected it to diversity. Founder Dick Farmer pennedhis thoughts on the subject in the first edition of The Spirit Isthe Difference, the definitive book, first published in 1984:“It is important to recognize the potential in every humanbeing….to involve everyone, <strong>and</strong> to make everyone a confident,contributing member of the team. Humility, respect, <strong>and</strong> the deep-seated belief in the potentialof our partners on the front line are common characteristics of our most successful leaders.”– Dick Farmer, Founder <strong>and</strong> Chairman EmeritusToday, <strong>Cintas</strong>’ diversity <strong>and</strong> inclusion efforts are led by the company’s <strong>Corporate</strong> DiversityCommittee – which is chaired by Dick’s son <strong>and</strong> Chief Executive Officer Scott Farmer.17


More than100 diversesupplierstrainedat no costfrom more than a dozen businesses participated in the courses at no cost,which included Green Belt Six Sigma Training, Leading Negotiations,Meticulous Hiring <strong>and</strong> Strategic Selling.• Strategic Selling – Learn how to develop <strong>and</strong> implement a strategic actionplan for managing the sale of accounts <strong>and</strong> leveraging a value proposition• Leading Negotiations – Learn effective negotiation skills through interactivediscussions <strong>and</strong> simulations• Six Sigma Green Belt Training – Learn how to utilize traditional leanstrategies <strong>and</strong> receive an overview of the Six Sigma DMAIC (Define,Measure, Analyze, Improve, Control) process <strong>and</strong> tools• Meticulous Hiring – Learn how to create a systematic hiring process <strong>and</strong>work on improving skills vital for making effective hiring decisions“The Strategic Selling course offers a practical approach to assessing the market,promoting your company <strong>and</strong> increasing sales. This is the best four hours thatI have spent working on my business in quite some time. I left the trainingfeeling energized <strong>and</strong> knowing that I can sell my way out of the recession.”– Crystal Kendrick, President <strong>and</strong> CEO of The Voice of Your Customer• Mentoring Programs<strong>Cintas</strong> is deeply engaged in formal mentoring programs such as the GreaterCincinnati/Northern Kentucky African American Chamber Breakfast with theCOO Program <strong>and</strong> the National Minority Supplier Development CouncilCenters of Excellence.“<strong>Cintas</strong> has made enormous strides granting minority suppliersopportunities for free training <strong>and</strong> extensive mentoring from toplevelexecutives. <strong>Cintas</strong> works tirelessly to ensure its diverse suppliersare equipped with the tools necessary to be successful.”– Amelia Rodriguez, CEO of Vocalink, a multilingualmanagement company18


<strong>Social</strong> Compliance Defies International BoundariesWith a supply <strong>and</strong> distribution network that crosses all geographic boundaries, <strong>Cintas</strong> is a citizen ofthe world. We operate approximately 430 facilities in North America, Europe <strong>and</strong> Asia, including sixmanufacturing plants <strong>and</strong> eight distribution centers. To ensure that our extended organization – includingsuppliers, vendors <strong>and</strong> contractors – lives up to the high st<strong>and</strong>ards of social accountability that defineour corporate culture, we enforce fundamental social compliance. In short, we expect our vendorsto subscribe to high legal, moral <strong>and</strong> ethical principles in conducting business.19


An integral part of our social compliance originates from our Code of Conduct<strong>and</strong> Business Ethics. Believing that “It’s not just what we do, but how we do it,”we will always be a company that tolerates nothing less than complete honesty<strong>and</strong> fairness in everything we do. Simply put, the way we accomplish our workis as important as the work itself – <strong>and</strong> it’s essential that we conduct ourselvesat all times with integrity <strong>and</strong> in full compliance with the laws <strong>and</strong> regulationsthat govern our business activities.18 percentof <strong>Cintas</strong>’vendorsreceivedperfectcompliancescores35 facilitiesachievedWRAPrecognitionRobust Assessment ProcessAll contracted firms are required to comply with <strong>Cintas</strong>’ Vendor Code of Conduct<strong>and</strong> use the <strong>Cintas</strong> 310-point assessment process to ensure consistency. We’reproud to report that all of our vendors passed the assessment, with 18 percentreceiving perfect scores. This reflects our vendors’ clear underst<strong>and</strong>ing of programrequirements, willingness to take corrective action when needed <strong>and</strong> continuedcommitment to upholding our high st<strong>and</strong>ards.High-Compliance FacilitiesIn fiscal <strong>2011</strong>, we engaged three independent firms to conduct social complianceassessments of 85 vendors <strong>and</strong> 148 facilities in 21 countries. The vendor pool wasnotably small because 35 facilities achieved Worldwide Responsible AccreditedProduction (WRAP) recognition – an ambitious accomplishment. The WRAPprogram ensures compliance with the 12 WRAP principles, which are basedon generally accepted international workplace st<strong>and</strong>ards, regulations <strong>and</strong>local laws.20


<strong>Corporate</strong> Citizenship Efforts Impact Millions<strong>Cintas</strong> is guided by a deep-rooted spirit of giving that affirms the dignity of all people <strong>and</strong> impacts thelives of millions. Acting individually <strong>and</strong> under the company banner, we provide essential humanitarianaid <strong>and</strong> volunteer support to local communities, military units <strong>and</strong> remote locales around the world.21


12 millionpounds ofdonatedproductsService to Vulnerable Children <strong>and</strong> FamiliesThrough our partnerships, we support organizations that serve vulnerablechildren <strong>and</strong> families. In fiscal <strong>2011</strong>, that list included more than 400 hospitals,foster care programs, homeless shelters, schools <strong>and</strong> emergency agenciesacross North America. Examples include:• Matthew 25: Ministries, an international humanitarian aid organization thatchannels unused products from American corporations to the poorest of thepoor. We are its largest donor, having contributed thous<strong>and</strong>s of volunteerhours <strong>and</strong> more than 12 million pounds of products since 1998.• Leukemia & Lymphoma Society, which receives promotional products from<strong>Cintas</strong> to sell in its e-store <strong>and</strong> contributes 25 percent of all sales to research<strong>and</strong> support. In <strong>2011</strong>, the contribution exceeded $75,000.• American Heart Association, founded to help battle heart disease <strong>and</strong> heartrelatedillness, has been partnering with <strong>Cintas</strong> customers on lifesaving trainingsince 2005. Today, <strong>Cintas</strong> is the largest training center for the AHA in the UnitedStates, with more than 200,000 people trained to date. In fiscal <strong>2011</strong>, <strong>Cintas</strong>committed to raising $100,000 corporate wide to further AHA’s mission bypromoting our employee-partners’ participation in heart walks <strong>and</strong> runs heldthroughout the country.<strong>Cintas</strong> Joins Matthew 25: Ministries on Haiti Mission TripIn June <strong>2011</strong>, Matthew 25: Ministries led a17-person mission team to Haiti. This was thethird time Matthew 25: Ministries had beento Haiti since the earthquake in January 2010decimated Port-au-Prince, but it was the firsttime a <strong>Cintas</strong> employee-partner accompaniedthe organization. The devastation was catastrophic,exacerbated by the lack of infrastructure <strong>and</strong> endemic poverty in Haiti.While there, the team delivered clothing <strong>and</strong> administered medical careto children in five orphanages. In just six days, the volunteer medical stafftreated more than 600 patients at mobile clinics <strong>and</strong> distributed newclothing donated through <strong>Cintas</strong>’ Clothe the Kids program to morethan 300 Haitian orphans. In addition, the medical team dispensednonprescription medication donated by <strong>Cintas</strong>’ First Aid & Safetydivision to hundreds of Haitian children <strong>and</strong> adults.22


$228,000 toUnited WayBuilding Stronger CommunitiesIf food sustains the body, arts enrich the soul. As a company, we support the arts through the Fine ArtsFund. We also give generously to social service <strong>and</strong> medical research organizations that enhance thecommunities where our employee-partners live <strong>and</strong> work. Our corporate United Way campaign raisedmore than $228,000 in fiscal <strong>2011</strong>. As part of their strong tradition of giving back, our employee-partnersalso supported local blood drives, giving trees <strong>and</strong> hundreds of community betterment projects.Adopt-a-Partner Program Helps Tornado VictimsMore than 200 people were killed in <strong>2011</strong> when a series ofF-4 <strong>and</strong> F-5 tornadoes swept through Alabama on April 27th,<strong>2011</strong> <strong>and</strong> Joplin, Mo. less than a month later. The impactwas devastating. <strong>Cintas</strong>’ rental branch in Tuscaloosa, Ala. wasdestroyed – yet incredibly, the nine employees who were insideat the time were unharmed. Still, the storm system took itstoll on dozens of <strong>Cintas</strong> employee-partners who lost homes,vehicles <strong>and</strong> countless belongings. As a result, <strong>Cintas</strong> launchedits “Adopt-A-Partner” program, an initiative in which <strong>Cintas</strong>employee-partners <strong>and</strong> facilities can “adopt” impacted partners <strong>and</strong> provide them with supportthrough collections, donations <strong>and</strong> fundraisers.Thous<strong>and</strong>s of <strong>Cintas</strong> employee-partners at more than 130 facilities throughout the world tookpart in the effort, sending everything from gift cards, letters, diapers <strong>and</strong> humanitarian aidto the affected areas.“I never expected the huge overwhelming support we received from partners all over theworld,” said Corey Kappler, HR Manager of <strong>Cintas</strong>’ rental facility in Bessemer, Ala. “It wasbeyond what we could have ever imagined – to the point where we almost ran out of roomto physically house the donations because the outreach was so great,” she added.While rebuilding efforts are being completed, all 60 partners employed in Tuscaloosa have beentemporarily relocated to the <strong>Cintas</strong> uniform rental plant in Bessemer, Ala., about 35 minutes away.“The employees of <strong>Cintas</strong> are heroes,” said Walt Maddox, Mayor of Tuscaloosa. “They not onlysurvived the storm but they quickly worked feverishly to resume operations. By doing so, morethan 60 families can prosper <strong>and</strong> contribute to bettering their lives.”23


Employeepartners’generosity <strong>and</strong>caring naturerecognizedthroughcorporateprogramsSupporting Our Employee-PartnersWe show appreciation for our 30,000 employee-partners in ways that reflectshared values of integrity, trust, respect <strong>and</strong> cooperation. Since 2008, we havemade a point to recognize individuals who went above <strong>and</strong> beyond the callof duty to save someone’s life or whose heroic actions significantly improvedthe lives of those around them. These employee-partners are recognizedthrough our Outst<strong>and</strong>ing <strong>Cintas</strong> Heroes Program. A new hero is named eachquarter <strong>and</strong> receives a plaque <strong>and</strong> personalized letter from the CEO, as wellas an invitation to attend <strong>Cintas</strong>’ Annual Shareholders’ Meeting as a VIP guest.Additionally, their names are added to a permanent plaque that hangs atthe company’s corporate headquarters in Cincinnati, OH.<strong>Cintas</strong> also recognizes our employee-partners who quietly serve theircommunity through our Acts of Kindness Program. All partners receivingthis <strong>and</strong> the Outst<strong>and</strong>ing <strong>Cintas</strong> Heroes recognition are featured on the<strong>Cintas</strong> Cares website at www.<strong>Cintas</strong>Cares.com.Adopt-a-Partnerprovidessupportto familiesIn keeping with our commitment to our <strong>Cintas</strong> family, we also took care ofco-workers in need through two extraordinary programs: Adopt-a-Military-Partner <strong>and</strong> Adopt-a-Partner. Our Adopt-a-Partner program is a reflectionof our partners’ generosity <strong>and</strong> caring nature. It was established in 2005, afterhurricanes ravaged the communities of many <strong>Cintas</strong> families living along theGulf coast. During the aftermath, <strong>Cintas</strong> partners donated household essentials,toiletries, clothing, school supplies, baby formula <strong>and</strong> more. And today, theycontinue to go out of their way to make a difference when tragedy strikes.Also in 2005, after the wars in Iraq <strong>and</strong> Afghanistan were underway, <strong>Cintas</strong>corporate partners began adopting military partners <strong>and</strong> their families – developingan informal support system for partners deployed to military assignments, aswell as for their families back home. Since then, dozens of <strong>Cintas</strong> partners haveadopted military partners, sending care packages, emails <strong>and</strong> letters to activeduty military partners as a way to thank them for their sacrifices. Partners alsomaintain contact with spouses <strong>and</strong> children of military partners.24


Awards & RecognitionOur commitment to sustainability <strong>and</strong> social responsibility reflects our conviction to “do what’s right,not just what’s expedient.” That’s why we’re moved by the public recognition of our achievements <strong>and</strong>the quiet expressions of thanks we receive throughout the year. The accolades affirm our belief thatgreat companies can find ways to achieve both economic prosperity <strong>and</strong> social responsibility. We hopethis abbreviated list sparks pride among our employee-partners <strong>and</strong> vendors, <strong>and</strong> confidence amongour customers <strong>and</strong> shareholders.25


Overall Performance• One of FORTUNE magazine’s Most Admired Companies for 11 consecutiveyears.Best Place to Work• Best Place to Work in Cincinnati by The Business Courier.• Top Place to Work by The Detroit Free Press.• Best Place to Work in Oklahoma by OKCBiz Magazine for the thirdconsecutive year.• Top Place to Work in Northeast Ohio by The Clevel<strong>and</strong> Plain Dealer.• 101 Best <strong>and</strong> Brightest Companies to Work for in Western Michigan <strong>and</strong>Metro Detroit by the Michigan Business <strong>and</strong> Professional Association.• 50 Best Employers in Canada for 2010 by Globe <strong>and</strong> Mail’s Report onBusiness magazine.• Top 50 Companies to Work for in Canada by Aeon Hewitt.• Top 50 Greater Toronto Area Employers by The Toronto Star.• No.15 on the list of Top 100 Military-Friendly Employers by G.I. Jobs magazine.• Best Place to Work finalist in the Coastal Bend (TX) by the Corpus ChristiHuman Resource Management Association.26


Diversity <strong>and</strong> Inclusion• <strong>Corporate</strong> ONE Award by the Michigan Minority Supplier Development Council.• Enterprising <strong>and</strong> Professional Women – Long Isl<strong>and</strong> <strong>and</strong> Suffolk County Office of Women’s Services,for empowering <strong>and</strong> employing women.• <strong>Corporate</strong> Partner of the Year by the National Black MBA Association – Clevel<strong>and</strong> NEO chapter<strong>and</strong> Cincinnati chapter.• Major Supplier Award from the South Central Ohio Healthcare Supplier Diversity Council.• Employer Support of the Guard <strong>and</strong> Reserve’s “Above <strong>and</strong> Beyond Award” for support of the troops.• Large Employer of the Year by the American Legion Department of Michigan.<strong>Sustainability</strong> <strong>and</strong> Environmental Leadership• 100 percent wastewater pretreatment compliance by the City of Phoenix.• Kansas Water Environment Association Gold Pretreatment Compliance Award.• Outst<strong>and</strong>ing Wastewater Treatment Award by the Kansas Water <strong>and</strong> Environment Association.• Environmental Excellence Award from the Association of Washington Business for resourceconservation <strong>and</strong> pollution prevention.• Pretreatment Partnership Award by the Fort Worth Water Department for five years of100 percent compliance with local, state <strong>and</strong> federal pretreatment regulations.• Silver Industrial Wastewater Pretreatment Compliance Award by the Missouri WaterEnvironmental Association.27


• Superior Environmental Compliance Award by the Spartanburg, SC SanitarySewer District.• Gold Pretreatment Excellence Award by the Hampton Roads (VA) SanitationDepartment for the second consecutive year.• Significant User Honor Roll from the Milwaukee Metropolitan SewerageDistrict/Wisconsin Department of Natural Resources for the secondconsecutive year.• Gold Industrial Wastewater Pretreatment Compliance Award from the MissouriWater Environment Association for the eighth consecutive year.Safety <strong>and</strong> Health• OSHA Voluntary Protection Program (VPP) Star Certification at the Ch<strong>and</strong>ler,AZ <strong>and</strong> Frankfort, IN uniform rental facilities <strong>and</strong> the San Jose, CA DocumentManagement facility.• Rising Star status in Charlotte, NC under the Carolina Star program.• OSHA Safety <strong>and</strong> Health Achievement Recognition Program (SHARP)certification from Oregon OSHA <strong>and</strong> Nevada OSHA.• New Jersey Governor’s Occupational Safety <strong>and</strong> Health Award for sixconsecutive years.• New Jersey Safety Achievement Award from the Commission of Labor<strong>and</strong> Workforce Development.• Workplace Safety Award from the Association of Washington Businesses.• Certificate of Recognition (COR) through Canada’s Alberta ProvincePartnerships in Injury Reduction Program.Citizenship• University of Cincinnati Business Partnership Award.28


Financial HighlightsFollowing five consecutive quarters of organic growth, <strong>Cintas</strong> posted impressive gains in revenue <strong>and</strong>earnings per share in fiscal <strong>2011</strong>. And, for the 28th consecutive year, we increased our dividend – everyyear since we went public in 1983.<strong>Cintas</strong> closed fiscal <strong>2011</strong> with revenues of $3.8 billion, exceeding both internal expectations <strong>and</strong> thoseof Wall Street. Organic growth, which adjusts for the impact of acquisitions, was a healthy 7.4 percent.Earnings per diluted share were $1.68 – a 20 percent jump over the previous year. Revenue growth,paired with ongoing cost-control efforts, exp<strong>and</strong>ed operating margins to 11.6 percent.In May, <strong>Cintas</strong> successfully completed the share buyback program authorized in October 2010. Wesold $500 million of bonds at very attractive rates, using the proceeds to repurchase 15.8 million sharesof common stock. When combined with purchases made earlier in fiscal <strong>2011</strong>, we acquired a total of23.4 million shares of common stock at a total cost of $702.1 million. Our goal was to maximize thelong-term value for shareholders <strong>and</strong> employee-partners <strong>and</strong> positively position <strong>Cintas</strong> to increaseearnings per share in the future.29


Growth Momentum Across DivisionsDespite a halting economic recovery <strong>and</strong> rising energy costs, we built growthmomentum in every <strong>Cintas</strong> division.Uniform Rental <strong>and</strong> Ancillary Products. Our largest segment, which includesthe rental <strong>and</strong> servicing of uniforms <strong>and</strong> facility services, accounted for 71 percentof fiscal <strong>2011</strong> revenues. Thanks in part to our unique <strong>and</strong> innovative productofferings <strong>and</strong> the stabilization of our existing customers, this segment increasedrevenues by 4.8 percent over the previous year.Uniform Direct Sales. This segment, which includes customized, high-end uniforms<strong>and</strong> br<strong>and</strong>ed promotional products, accounted for 11 percent of companyrevenues in fiscal <strong>2011</strong>. Segment revenues were up 8.5 percent. The gross marginwas 30.2 percent for the fiscal year, which was relatively consistent with fiscal 2010.Document Management. In its first nine years of operation, this segment acquiredalmost 100 companies in the document destruction, storage <strong>and</strong> imaging industry.Our rapid growth strategy gave us a national footprint <strong>and</strong> an exp<strong>and</strong>ingEuropean presence. Like the other <strong>Cintas</strong> segments, Document Managementposted continuous revenue gains in fiscal <strong>2011</strong>, closing 27 percent higher thanfiscal 2010. Because the government requires that confidential documents besecurely destroyed, dem<strong>and</strong> for this service is stable, even during a recession.First Aid, Safety <strong>and</strong> Fire Protection. <strong>Cintas</strong> has grown into the largest providerof van-delivered first aid <strong>and</strong> safety services in the U.S. In just eight years, we havealso established ourselves as the second largest fire protection company inthe country. Combined these two service areas boosted segment revenues by11.5 percent in fiscal <strong>2011</strong>. Productivity of our sales force continued to be strongthroughout the year, <strong>and</strong> we achieved a very solid improvement in gross marginto 41.3 percent.Our Sustainable SpiritWe credit much of our financial success to our commitment to environmental<strong>and</strong> economic sustainability. In our minds, the two are inextricably linked. Bybeing responsible stewards of the environment, we earn the genuine trust ofour employees, customers <strong>and</strong> shareholders. This simple philosophy of “doingwhat’s right, not just what’s expedient” fuels the sustainable spirit that hasdefined us for more than 80 years.30


The production of this report advances the ideals of the ForestStewardship Council, which promotes environmentally appropriate,socially beneficial <strong>and</strong> economically viable management of the world’sforests. All paper used in this report contains 30 percent pulp derivedfrom post-consumer recycled fiber. It was created using a chlorine-freeprocess with 66 percent renewable energy – both hydropower <strong>and</strong>biomass. The report was printed using soy inks. By using recycled paper,<strong>Cintas</strong> realized the following savings:2,387 gal wastewater flow saved2 million BTUs energy not consumed529 lbs greenhouse gases prevented151 lbs solid waste not generatedEnvironmental impact estimates were made using the Environmental Paper Network PaperCalculator. For more information visit www.papercalculator.org.<strong>Cintas</strong> Corporation6800 <strong>Cintas</strong> BoulevardMason, OH 45040513.459.1200www.cintas.comx1972 rev 10-11

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