Illinois Tool Works Inc. (ITW) is a Fortune 200 global diversified industrial manufacturer of value-added consumables and specialty equipment with related service businesses headquartered in Glenview, Ill. The company focuses on profitable growth with strong returns across its worldwide platforms and businesses. These businesses serve local customers and markets around the globe, with a significant presence in developed as well as emerging markets. ITW has operations in 56 countries that employ approximately 51,000 women and men who adhere to the highest ethical standards. These talented individuals, many of whom have specialized engineering or scientific expertise, contribute to our global leadership in innovation. We are proud of our broad portfolio of nearly 10,000 active patents.
ITW is committed, at all levels of the company, to the ongoing journey of being a responsible corporate citizen. The company is continually striving to be better, by improving its facilities, relationships and communities. It's part of ITW's overall commitment to being best-in-class through its five-year Enterprise Strategy, which leverages the company's differentiated business model to deliver differentiated performance. When applied to corporate social responsibility (CSR) initiatives, the strategy is helping to focus ITW's efforts where they can make the most impact.
We believe that corporate citizenship and environmental responsibility are good for business by increasing efficiency, improving customer and employee satisfaction, and driving innovation.
Environment, Health, Safety and Sustainability
Consistent with its core business philosophy, ITW relies on its General Managers (GMs) to manage all aspects of their businesses. Safety and environmental issues are no exception. The ITW corporate office provides broad guidance to the GMs through the ITW Statement of Principles of Conduct, which includes sections on both environmental management and safety in the workplace. In addition, the corporate Environmental, Health, Safety and Sustainability (EHSS) group provides a number of policies, tools and programs to help management ensure compliance with these broad directives.
This information is communicated to the business units in a number of ways, including: the ITW Environmental, Health and Safety and the ITW Sustainability intranet sites, executive vice president notices, third-party newsletters, ITW environmental and safety help line, presentations, regular safety meetings, and various internal reports.
ITW Facilities Target Environmental Improvements
ITW's annual environmental compliance audits help ensure that the company's facilities meet regulatory requirements and reinforce ITW's commitment to safeguarding the environment. The audits also highlight the ways ITW businesses go above and beyond to reduce the company's impact on the environment and preserve natural resources. Many sites have initiatives in place to recycle packaging materials and scrap rather than simply throw them away. In addition, several facilities have replaced lighting fixtures with more energy-efficient bulbs as well as installed motion sensors in office areas to conserve electricity. ITW also supports its businesses that are interested in establishing internal "Green Teams" and provides assistance for employee training.
Safety Objectives that Go Beyond OSHA Requirements
ITW is continually striving to find ways to enhance its safety and health program and stretch the company's performance. In addition to maintaining a high level of occupational safety and health compliance, a number of ITW businesses are currently working on four safety objectives that go well beyond what is required by OSHA but that will have a lasting positive impact on workplace safety: Employee involvement in the safety and health program; Near-miss reporting; Job safety analysis (JSA) process; and Communication between management and employees.
ITW is committed to giving back to the communities where its employees live and work, and where its businesses are located. As in other areas of our business, ITW's community engagement and philanthropic activities are driven by partnerships that meet locally identified needs. The company encourages and incentivizes its employees and businesses to engage with their communities and support organizations important to them at the local level.
The support for larger initiatives in the U.S. and Canada is facilitated by the ITW Foundation, the nonprofit charitable arm of the corporation. For the second consecutive year, the men and women of ITW gave approximately $25 million through the ITW Foundation, employee giving and business-level contributions in 2013.
The ITW Foundation
The ITW Foundation makes financial contributions to not-for-profit organizations that are based in the North American communities where ITW operates and that focus their services on causes that are strategically aligned with the company's core competencies and values. As part of its strategic planning process, the ITW Foundation has identified several long-term priorities, including support for education, workforce development and readiness around the world, health and human services, and the increasing globalization of the company's outreach efforts. The ITW Foundation also encourages ITW employees to give back through its Hearts Giving Hope initiatives, which include ITW's matching gift and volunteer programs.
Hobart Community Kitchen
In 2012, ITW shared the news of the ITW Foundation's gift of $330,000 to fund the construction of a new soup kitchen in rural Troy, Ohio, which is home to the company's Hobart Food Equipment business, a global industrial food equipment manufacturer. The new kitchen opened in January 2014 as the St. Patrick Soup Kitchen, also known as the Hobart Community Kitchen. In addition to the funding provided by the Foundation, Hobart, Traulsen and Vulcan donated the food preparation equipment, and local employees from ITW's Welding and Food Equipment businesses will donate time, food and money on an ongoing basis.
Welding Workforce Development
To facilitate the training of current welding students, ITW gives grants and donations to fund scholarships as well as the purchase of new technology and equipment to several universities and trade schools. Its university partners include Ferris State University in Big Rapids, Mich., and Fox Valley Technical College in Appleton, Wis. The Welding business is also a long-time supporter of the highly regarded Hobart Institute of Welding Technology in Troy, Ohio. To reach high school and younger students, the Welding business has created programs in robotics to interest them in manufacturing, engineering and welding. The Welding segment and its businesses are also working to reach traditionally underrepresented groups in the welding field, such as women and minorities. As a result of Miller Electric's efforts in this area, the Hispanic Chamber of Commerce of Wisconsin recently presented the business with its 2013 Manufacturer of the Year award.
Donations to United Way have supported a wide variety of humanitarian efforts. By partnering with United Way, these dollars go further and have a greater impact in our communities. In 2013, ITW employees and retirees donated $6.5 million to United Way chapters throughout the United States and Canada.
California Transparency in Supply Chains Act Disclosure
The ITW Principles of Conduct mandate compliance with human rights requirements around the globe, including environmental, health and safety laws that protect the well-being of employees, and laws against slavery, human trafficking and child labor. Our businesses around the globe are responsible for conducting their operations in compliance with these laws, and we expect our suppliers to comply with these laws as well. Consistent with our decentralized operating structure, our individual businesses make their own determination as to what extent they: (i) engage in verification of their product supply chain to evaluate and address human trafficking and slavery risks and whether such verification is conducted by a third party, (ii) conduct supplier audits to evaluate whether suppliers comply with ITW's policy to comply with laws against human trafficking and slavery and whether those audits are independent, unannounced audits, (iii) require a direct supplier to certify that materials incorporated in ITW's products comply with laws regarding human trafficking and slavery of the country or countries where the supplier does business, (iv) maintain internal accountability standards and procedures for ITW employees or contractors failing to comply with ITW's policies regarding human trafficking and slavery, and (v) provide training on slavery and human trafficking, particularly with respect to mitigating slavery and trafficking risks in supply chains, to employees and management with direct responsibility for supply chain management. Other than as stated above, ITW does not have a policy that specifically addresses the matters described in (i) through (v) above.