Is it safe?
What about governance?
How big do alligators get?
Why is the phone green?
Is globalization good or bad?
What if Joe calls while I’m driving?
What if I could be anything?
Motorola 2003 Global Corporate Citizenship Report
Who is a global citizen?
Every year customers, employees, students, investors, activists and others ask us questions. They want to know about our environmental policies, our role in the community and how we treat our employees around the world. Throughout this report, Motorola responds to the most frequently asked questions.
As a global corporate citizen, Motorola creates products and technologies that benefit society by making things smarter and life better for people around the world. We are dedicated to operating ethically, protecting the environment and supporting the communities in which we do business. We are guided by our Code of Business Conduct, which is based on our key beliefs of uncompromising integrity and constant respect for people. As a global corporate citizen, we strive to: > Create innovative technological solutions that benefit people at home, at work and on the move
> Maintain a safe and healthy workplace, fostering a globally diverse workforce and supporting our employees’ work-life balance
> Increase shareholder value through profitable growth, technological innovation and market leadership
> Create economic opportunities and growth in regions where we do business, through our products, services and operations
> Operate with transparency and the highest standards of ethics and law in directing and managing the company for all stakeholders
> Set expectations for our suppliers to conduct
> Protect the environment by improving our environmental performance and designing environmentally conscious products
> Support the quality of life and educational opportunities in the communities in which we operate around the world
their operations in compliance with the law and accepted standards of fairness and human decency
01 Table of Contents 02
Financial Highlights
03
Manufacturing Facilities 2003 / Corporate Overview
04 06 08
10 12
Conversation with Ed Zander Intelligence EverywhereTM Governance and Management Systems
ECOMOTO EHS 2003 Performance
14 The Tough Stuff 31
18
Product Stewardship
20
The World We Share
23
Putting Down Roots
24
Waste Not
25
Going Toward the Green / Gaining by Reducing
26
Compliance and Remediation
28 29
Education / Inspiration
32
Enabling Everyone Reaching Out / Community
How Can I Help?
33
Junior Achievement
34
Motorola Foundation
35
Hope: The Greatest Gift / CEO Award for Volunteerism
36
Employee Diversity / Supplier Diversity
37 What If I Could Be Anything?
This report covers the calendar year 2003 and was developed with consideration given to the Global Reporting Initiative (GRI) Sustainability Reporting Guidelines. Our GRI content index is shown at right. See www.globalreporting.org/guidelines/2002.asp for further information.
38
Motorola Joins SARS Battle
40
Health and Wellness / OSHA VPP STAR Program
41
Selected 2003 Awards
Inside Front Cover
10
3.19, 3.20
28
LA10
1.1, 3.7
12
EN3, EN5, EN8, EN11, EN30, LA7
34
EC10
01
2.11
14
3.16, HR1, HR2, HR3, HR4, HR5,
35
EC10
02
EC1, EC2, 2.8
HR6, HR7, PR1
36
LA10
03
2.1, 2.2, 2.5
18
3.16
37
LA10
04
1.2, 3.2
22
EN26
38
EC10
06
2.2
24
3.16
40
3.14, LA6, LA12
08
2.9, 3.1, 3.7, 3.10
26
EN16
41
2.10, 2.22, S04
Financial Highlights
2003 Net Sales by Business Segment
dollars in millions, except per share amounts or as noted
before intercompany eliminations
Years ended December 31 Net sales Operating earnings (loss)
2003
2002
$27,058
$27,279
1,084
(1,813)
4.0 %
% to sales Earnings (loss) before income taxes
1,293
% to sales
4.8 %
Net earnings (loss)
893
% to sales
3.3 %
2003 Market Sales by Region
38%
Personal Communications Segment
17%
Semiconductor Products Segment
15%
Global Telecom Solutions Segment
50%
United States
14%
Europe
10%
China
10%
Asia-Pacific
(6.6) % (3,446) (12.6) % (2,485) (9.1) %
Diluted earnings (loss) per common share R&D expenditures Capital expenditures
0.38
(1.09)
3,771
3,716
655
607
88
97
Year-end employment (in thousands)
14%
Commercial, Government and Industrial Solutions Segment
8%
Integrated Electronic Systems Segment
8%
Latin America
6% 2%
Broadband Communications Segment Other Products Segment
5% 3%
Other Markets Japan
Net Sales
Operating Earnings (Loss)
Diluted Earnings (Loss)
dollars in billions
dollars in millions
per share in dollars
40
30 20 2,000
10
.75
0
0 99
00
01
02
0
03 -2,000
-.75
-4,000
-1.5
-6,000
-2.25 99
02
00
01
02
03
99
00
01
02
03
03
Manufacturing Facilities 2003 AMERICAS
EUROPE / MIDDLE EAST
ASIA-PACIFIC
JAGUARIÚNA, BRAZIL
SWINDON, ENGLAND
TIANJIN, CHINA (3)
CHIHUAHUA, MEXICO
ANGERS, FRANCE
TAI PO, HONG KONG
NOGALES, MEXICO
TOULOUSE, FRANCE
SENDAI, JAPAN
CHANDLER, ARIZONA, USA (2)
BERLIN, GERMANY
KUALA LUMPUR, MALAYSIA
TEMPE, ARIZONA, USA (3)
FLENSBURG, GERMANY
PENANG, MALAYSIA
PLANTATION, FLORIDA, USA
ARAD, ISRAEL
ANG MO KIO, SINGAPORE
ARLINGTON HEIGHTS, ILLINOIS, USA
EAST KILBRIDE, SCOTLAND
TAIPEI, TAIWAN
NORTHBROOK, ILLINOIS, USA
SOUTH QUEENSFERRY, SCOTLAND
SCHAUMBURG, ILLINOIS, USA ELMA, NEW YORK, USA AUSTIN, TEXAS, USA (2) FORT WORTH, TEXAS, USA SEGUIN, TEXAS, USA
Motorola is a global leader in wireless, broadband and automotive communications technologies and embedded electronic products. Wireless Handsets: We are one of the world’s leading providers
Broadband We are a global leader in developing and deploying
of wireless handsets, which transmit and receive voice, text, images and other forms of information
end-to-end digital broadband entertainment, communication and information systems for the home and for the office. Motorola broadband technology enables network operators and retailers to deliver products and services that connect consumers to what they want, when they want it.
and communication. Wireless Networks: We develop, manufacture and market public and enterprise wireless infrastructure communications systems, including hardware and software. Mission-Critical Information Systems: We are a leading provider of customized, mission-critical radio communications and information systems.
Automotive We are a global leader in embedded telematics systems that enable automated roadside assistance, navigation and advanced safety features for automobiles. Motorola also provides integrated electronics for the powertrain, chassis, sensors and interior controls. Semiconductor We are a leading producer of embedded processing and connectivity products for the automotive, networking and wireless communications industries.
Conversation with Ed Zander
Q. Ed, you became chairman and chief executive officer of Motorola at the beginning of 2004. Can you share with us what global corporate citizenship means to you?
EZ. To me, corporate citizenship is a broad concept that encompasses the responsibility we have to our many stakeholders. It means the company’s products and services create value for our customers and contribute to the well-being of society. It means we operate using ethical business practices and expect the same from our suppliers and partners. It means we minimize the environmental impact of our facilities and products. It means we provide jobs, pay taxes and make a profit, as well as support philanthropy and community involvement. It means we treat our employees with respect and are a good neighbor to the people next door as well as those half a world away. Q. How does Motorola balance economic performance with social and environmental performance?
Motorola has a terrific heritage of good citizenship. Before I agreed to take the position of CEO, I read a copy of Motorola’s 2002 Global Corporate Citizenship Report. I was impressed with the objectives,
EZ. Strong economic performance and good social and environmental performance are not mutually exclusive. In fact, I believe that good corporate citizenship improves our bottom line. It’s not surprising that many analysts and investors are paying closer attention to a company’s corporate citizenship efforts for purely fiduciary reasons. Firms with solid citizenship records and a real commitment to corporate responsibility are arguably more sustainable, better managed and, therefore, better long-term investments.
commitments and progress that the company has made over the past few years – all in spite of extremely difficult business conditions. It’s during times of hardship that people can see whether global corporate citizenship is really important to a company or just window dressing. Motorola passed the test. As we develop a clear vision for our business and execute better, I think that Motorola can become an even stronger global citizen in the future.
Edward J. Zander Chairman of the Board and Chief Executive Officer Motorola, Inc.
04
05
Q. Over the last few years, we’ve seen companies continue to struggle with governance issues – particularly in the telecommunications sector. What is Motorola doing to guarantee transparency and accountability?
EZ. Integrity is critical. Corporate governance was one of the first things I considered before accepting this job. Particularly now, when my name is on the financial reports, it’s something I scrutinize. But even before corporate governance scandals started hitting the news nationwide in 2000, our board of directors had been strengthening our practices. Of our 11 directors, nine are independent. Directors must accept half their fees in the form of Motorola stock. Every five years we conduct what we call a no-fault review, where the board evaluates the needs and interests of the company, and board members are afforded an opportunity to step down, if appropriate. If you would like additional information, I encourage you to visit the investor relations portion of our Web site, where you can access the section on corporate management and governance.
Q. Motorola once had a reputation for being a great place to work. Given the challenges in recent years with downsizing, is this still true and how do you respond to employee concerns?
EZ. We’ve had the challenge, like other tech companies, of having to downsize to ensure our competitiveness. In these situations, Motorola has treated individuals with respect and provided severance assistance, extended medical coverage and professional outplacement services. Motorola has also divested business units and made these transactions contingent on the acquiring company’s commitment to maintaining the affected employees’ status and fringe benefits through the transition period and beyond. It’s clear Motorola has come through a challenging time. But it’s important to
and
note that our commitment to our people has never wavered. And, I know if you asked our people around the world, you’d find an air of real optimism right now that we’ve turned a corner and things are getting better.
Intelligence Everywhere
TM
Motorola. For 75 years we’ve made products that benefit society >
In 1930, we made the first practical and affordable car radio.
>
Our two-way radios helped lead allied forces to victory during World War II.
>
The coaxial cable TV systems we pioneered in the 1950s ushered in news, information and entertainment for people in remote areas.
>
Motorola transponders helped facilitate truly global communication and relayed the first words from the moon back to Earth.
>
For decades, many doctors haven’t gone anywhere without a pager, a technology we helped pioneer nearly 40 years ago.
The computer-controlled, trunked two-way radio systems we designed in the 1970s are forerunners of today’s Project 25 digital technology and TETRA radios, the gold standard for law enforcement and public safety communities. And did we mention mobile phones? Since the 1983 launch of our first portable, the device formerly known as the cell phone has revolutionized personal communication, evolving far beyond voice transmission to include taking pictures, transmitting images and data and serving as a personal digital assistant or PDA.
Today, our products continue that tradition of innovation >
You can hear our Push-to-Talk technology hard at work in offices, on the street and at worksites, providing the ultimate in business efficiency.
>
Our flexible Canopy™ broadband wireless system represents a reliable, secure and cost-effective solution for bridging the digital divide.
>
And our telematics systems are quietly making the next generation of cars and trucks safer and smarter.
Building on our tradition of innovation and integrity, Motorola communications technologies provide seamless connectivity for people at home, at work, in the auto and out in the world. By helping connect people to people, people to things and things to people, the company offers intelligent solutions that make life on planet Earth smarter, simpler and safer. 06
07
Motorola transponders helped facilitate truly global communication and relayed the first words from the moon back to Earth.
Motorola has a long history of putting our public safety experience and portfolio to work for communities, responding with fast, critical support following major natural disasters and emergencies throughout the world. Now, communities everywhere are rethinking their strategies for disaster preparation and prevention. Real-time communications and accurate, timely information are necessities for public safety. Motorola products and services meet the mission-critical needs of emergency responders, who are dedicated to ensuring the safety and security of the public. Examples of our solutions include: >
Motorola’s Mission Critical IPTM communications platform, which enables interoperable data and voice solutions designed for public safety use. This provides seamless and secure communications within and across departments, jurisdictions and borders, allowing emergency responders to work together and provide faster services in disaster situations.
>
The Motorola Fireground Communications System, a new mobile communications solution designed for firefighters. The system provides improved on-scene and in-building radio coverage and enhanced personnel monitoring.
>
Motorola’s Customer Request Management and Asset Management solutions, which help local governments answer questions, track requests and respond to citizens. People increasingly want to be able to contact local government about issues that affect the quality of life in their communities, and know that action will be taken as a result of their calls.
>
The Motorola OmnitrakTM AFIS/Palmprint Identification System, which significantly expands capability to store, search and retrieve the right information from the right database at the right time – when law enforcers need it most.
Motorola telematics systems are quietly making the next generation of cars and trucks safer and smarter.
Governance and Management Systems Our Key Beliefs: >
Uncompromising integrity
>
Constant respect for people
Not just words, but a way of doing business. A promise we uphold every day and in every corner of the world. These key beliefs are the foundation upon which our governance and management systems are built. Motorola ensures good governance and sound management through transparency, accountability and tough audits. Here, we present an overview of our commitment to ethical business practices, governance and management systems, and stakeholder engagement. For more information, please visit www.motorola.com/investors and access the corporate management and governance section. Since its inception in the 1970s, our Code of Business Conduct has provided Motorola employees with guidance for their business activities, placing a priority on establishing trust with our stakeholders through ethical conduct. Motorola employees have the personal responsibility to make sure that their actions, individually and collectively, adhere to our Code of Business Conduct and the laws that apply to our work. Our EthicsLine (1 800 538 4427) enables our employees, business partners and others to report any questions or concerns they may have about compliance with the code – or the laws, regulations or contract provisions that govern Motorola business. Failure to abide by any of these will lead to disciplinary measures appropriate to the violation, up to and including dismissal. Also, the Audit Committee Line (1 866 724 1500) was established in 2004 to allow access to the audit and legal committee of Motorola’s board of directors for anyone concerned about the company’s accounting or auditing matters. Motorola managers are expected to lead according to our standards of ethical conduct in both words and actions. Managers are responsible for promoting open and honest two-way communication and being positive activists and role models who show respect and consideration for each of our associates.
08
09
Board of Directors The board of directors has long adhered to governance principles designed to ensure the continued vitality of the board and excellence in executing its duties. The board provides oversight, advice and counsel on the leadership and strategy of the corporation. To do that effectively, the board is composed of individuals with skills and experiences to contribute effectively to this process. The board is highly diversified. It includes active and former chief executive officers and chief financial officers of major corporations and individuals with experience in high-tech fields, government and academia. The board continues to renew itself to ensure that its members understand the industries and the markets in which the company operates. It must be informed about the positive and negative issues, problems and challenges facing Motorola and its industries and markets so that the members can exercise their fiduciary responsibilities to shareholders. In 2003, the board continued its commitment to improving corporate governance. The work of two ad hoc committees on governance, which were formed in February 2000 and January 2002 to drive board renewal, continued under a new governance and nominating committee.
Committees of the Board of Directors The board has six standing committees that assist in carrying out its duties: >
Audit and Legal Committee – Assists with oversight responsibilities related to accounting policies, internal controls, financial reporting practices, and legal and regulatory compliance.
>
Compensation and Leadership Committee – Assists with overseeing management of human resources.
>
Executive Committee – Acts for the board between meetings on matters already approved in principle.
>
Finance Committee – Reviews the company’s overall financial posture, asset utilization and capital structure.
>
Governance and Nominating Committee – Identifies individuals qualified to become board members, consistent with approved criteria.
>
Technology and Design Committee (formerly known as Technology Committee) - Reviews significant technological issues and needs affecting the company.
Stakeholder Relationships Transparency and trust enable Motorola to build solid relationships with stakeholders: >
Communities – We are a responsible citizen in the communities where we do business. We interact regularly with our neighbors on our environmental, health and safety efforts, and we provide financial and voluntary support to community programs.
>
Customers – We endeavor to build long-term relationships with our customers – partnerships based on trust and integrity. We work closely with customers to develop and test new products and ensure satisfaction through surveys and ongoing dialogue.
>
Employees – People are the essence of Motorola. We foster an open-door policy and ensure clear and constant two-way communication through employee surveys; regular group, team and division meetings; and our company intranet.
>
Government Officials – We maintain an ongoing dialogue with legislators, regulators and others involved with policy leadership.
>
Investors – We value our investors and believe it is vital to keep them informed and aware of our financial performance as well as our global citizenship performance.
>
Non-Governmental Organizations (NGOs) – We value input from NGOs and participate actively in meetings, conferences and forums on policy issues.
>
Suppliers – We require suppliers to comply with our global citizenship expectations, and we monitor their performance.
This committee considers how to improve all aspects of how the board functions, including: > > > > > > > >
Meeting effectiveness Director involvement, development and retention Committee governance, effectiveness and composition Board and committee assessment Director assessment and review Board size, composition and independence Executive sessions Calendar and attendance
The committee also guides the board in meeting the new governance requirements set forth by the New York Stock Exchange, new rules adopted by the U.S. Securities and Exchange Commission and emerging best practices.
Environment, Health and Safety Policy
EHS Management Systems
It is the policy of Motorola to conduct all business activities in a responsible manner, free from recognized hazards; to respect the environment, health and safety of our employees, customers, suppliers, partners and community neighbors; to foster the sustainable use of the earth’s resources; and to comply with applicable environmental, health and safety laws and regulations of the countries in which we operate. In addition, we commit to continuous improvement in our environmental, health and safety management systems, pollution prevention practices and safety programs.
Motorola sites around the world operate under a common EHS management systems framework. Through Lloyd’s Register Quality Assurance (LRQA), all of our manufacturing sites are registered to the globally recognized environmental management system standard, ISO 14001. Oversight of our EHS management system is provided by an executive committee of senior executives who create strategy and policies, and a leadership team of senior EHS managers who provide technical leadership. Our EHS professionals around the world develop and implement site-specific programs to comply with EHS management system requirements. Their efforts are supported with corporate policies, procedures, checklists and other resources, as well as location-specific internal Web sites.
Responsibility The presidents of Motorola’s sectors are responsible for implementing this policy in their respective organizations, and they will ensure that quarterly environmental reports and annual self-audits are completed at each of their facilities. At year end, each sector president will report to the office of the chairman on environmental, health and safety systems, activities and performance in their organizations. The corporate environmental, health and safety (EHS) department, with the advice and counsel of the law department, will support the sectors and groups by providing standards, consultative expertise and assistance with self-audits; will collect, analyze and consolidate information to enhance the deployment of environmental, health and safety systems; and will assist in filing regulatory reports. The corporate EHS department will conduct environmental, health and safety audits corporate-wide.
EHS Audit Program Since 1993, the corporate EHS audit program has provided independent assessments of conformance to our global EHS requirements.The audit program provides routine assessments for all manufacturing sites, follow-up on corrective actions and periodic management reviews with our board of directors. Audit teams are staffed with trained EHS professionals who are independent of the organizations being reviewed. Our operations use natural resources and have potential impacts on air, water and land. In accordance with ISO 14001, the international environmental management system standard, we conducted environmental aspect and impact assessments over the past few years. The top 10 ways Motorola’s operations may affect the environment are: solid waste, energy consumption, hazardous waste, chemical use and storage, air emissions, water effluent and releases, water consumption, raw materials usage, potential contamination to land and product/packaging design. To minimize our negative impact on the environment, we have developed long-term objectives and short-term goals, outlined on the following page.
10
11
EHS Long-Term Objectives Product Stewardship. Zero Waste.
Design all products for the environment and safety.
Reuse or recycle all waste materials.
Benign Emissions. Closed Loop.
Eliminate from plants all emissions that adversely impact the environment.
Conserve natural resources by fully integrating products and processes in the recycling loop.
Zero Occupational Injuries and Illnesses. Green Energy.
Create a workplace free of occupational injuries and illnesses.
Use energy in highly efficient ways at sites and use renewable energy where practical.
EHS 2003 Goals Reduce volatile organic material (VOM) emissions by 10% per year. Reduce hazardous air pollutant (HAP) emissions by 10% per year. Reduce total perfluorocarbon (PFC) compound emissions by 50% by 2010 from 1995 levels. Reduce hazardous waste by 10% per year. Recover 65% of non-hazardous waste by 2003. Reduce water usage by 10% per year. Reduce energy consumption by 10% by 2003 from 1998 levels. Continuously reduce U.S. Toxic Release Inventory (TRI) emissions. Continuously improve recordable injury and illness case rate. Achieve zero EHS-related fines and continuous improvement in the number of citations.
EHS 2010 Goals Reduce volatile organic material (VOM) emissions by 60% from 2000 levels. Achieve continuous improvement in greenhouse gas emissions. Reduce hazardous waste by 50% from 2000 levels. Reduce non-hazardous waste by 25% from 2000 levels. Recycle 75% and recover 85% of non-hazardous waste. Reduce water use by 25% from 2000 levels. Reduce energy use by 25% from 2000 levels. Achieve continuous improvement in recordable injury and illness case rate. Achieve zero EHS-related fines and continuous improvement in the number of citations.
CEO EHS Award The Motorola CEO Environment, Health and Safety Award is presented to employees or teams for significant contributions within the company, community, nation or world. The award recognizes EHS excellence and achievement beyond compliance and with a sustained performance over time. In 2003, the Semiconductor Products Sector Water and Energy Technical Councils received the CEO EHS Award for exceptional leadership in developing and implementing numerous innovative water and energy conservation projects since 1998, resulting in sustained environmental performance and profitability.
EHS 2003 Performance 12
2.4
16
9
1.8
12
6
1.2
8
3
0.6
4
0
0 96
97
98
99
00
01
02
0 90
03
GLOBAL REC ORDABLE IN J URY AND IL LNESS CASE RAT E R e cord able i njuries and il lne sses per 100 e mployees
91
92
93
94
95
96
97
98
99
00
01
02
U.S. TOXIC RELEASE IN VENT O RY (TRI) RELEASES V S. U .S. SALES Left s cale: million s of poun d s R i ght sca le: billion s of d olla rs
U . S . E L E C T RO N I C AV ER A G E U . S . M A N UFA CTUR I N G AV E R A G E M O T O R O L A R AT E
U.S. TRI RELEASES U.S. SALES
Category
2003 Absolute
Units
2002 Normalized
2003 Normalized
% Reduction
Met Goal?
Normalized Units
VOM emissions
156
Metric tons
10.85
5.80
47%
Yes
Metric tons per billion sales dollars
HAP emissions
24.3
Metric tons
1.46
0.90
38%
Yes
Metric tons per billion sales dollars
Hazardous waste
2,850
Metric tons
0.16
0.11
31%
Yes
Thousands of metric tons per billion sales dollars
Non-hazardous waste
72%
Percent recovered
66%
72%
—
Yes
Percent recovered
Water use
15 .15
Millions of cubic meters
0.75
0.56
25%
Yes
Millions of cubic meters per billion sales dollars
2.57
Billions of kilowatt-hours
0.11
0.09
18%
Yes
Billions of kilowatt-hours per billion sales dollars
—
0.58
0.44
24%
Yes
Recordable injuries and illnesses per 100 employees
Electricity and natural gas use Recordable injury and illness case rate
12
—
13 We exceeded all EHS goals for 2003 (listed on page 11). Since we established our baseline in 1998, we have: >
Reduced volatile organic material emissions by 76%
>
Reduced hazardous air pollutant emissions by 42%
>
Reduced perfluorocarbon compound emissions by 50%
>
Reduced hazardous waste generation by 54%
>
Reduced water use by 55%
>
Reduced energy use by 36%
>
Reduced recordable injury and illness rate by 79%
>
Increased recycling rate of non-hazardous waste from 46% to 72%
These results were achieved due to various pollution-prevention efforts, additional abatement equipment, creative efforts to conserve water and energy, and improved health and safety programs. Now that we have completed our goals for 2003, we have established new goals for 2010 (see page 11) using 2000 as our baseline.
25
1.6
0.25
0.024
25
1.6
0.25
0.024
1.2
0.20
1.2
0.20
20
20 15
0.018
0.018
0.15
15
0.8
10
0.8
0.012
0.15
0.012
0.10
10
0.10 0.4
5
0.006 0.05
0.4
5 0
0
0
0.006
0.05
98
99
00
01
02
03
0
1.5
99
00
01
02
03
0
00 Z A01RDOU 02 S 03 98 99 GLOBAL HA AIR PO LLUTA NT E M I SS I O N S G L O BAL HA Metri c tons pZ erAbRDOU illi on S AIR L LUTA N T E M I SS I O N S sal esPO dollars M e t r i c t o n s p er b illi o n s a l es d o l l a r s
98 99 00 AT 01 ILE 02 O RGANIC 03 GLOBAL VOL M AT ERI AL EMISSIONS G L O BAL VOL IL E O R G A N IC Metri c tons perATbillion M AT A L EM I S S I O NS sal esERI dollars M e t ri c t o n s p er b i l l i o n s a l es d o l la r s
80
80
1.5
0.15 0.12
1.2
0.12
0.06
40
0
0
0
00
01
02
03
00 01 GLOB A L G02RE E03 N HO U S E GAS E M I SSIO NS G L OB L G REtons E N HO U S E Mill i on Ame t ric G A S E M I SSIO N S CO2 equi v alents pe r M i l l i on me t ric t o ns billion s a les dol lar s C O2 equ i v a l e n t s pe r b i l l i o n s a le s d o l lar s
120
120
60
0.6
0.03
03
80
40
0.3
02
100
0.09
0.03
01
60
0.9
0.3
00
60
0.09
0.06
99
100
0.9
0.6
98
02 S 03 98 99 GLOB A L H00AZ A01RDOU WASTE Thousan ds of met r i c t ons per G L OB A H AZ RDOU S WA S T E billion s aLles dolAlar s T h o u san ds o f met r i c t ons p e r b i l l i o n s a le s d o l lar s
0.15
1.2
0
0 98
80
2010 Goal 2010 Goal
60 40
20
40
20
20
20
0
98
99
00
01
02
03
98 99 00 01 U02 03 GLOBAL WATER S AGE Million cubic m e t ers per G L O BAL WAT E R U S AG E billi o n s ales doll a rs M i l l i o n c u b i c m e t ers p e r b i l l i o n s al e s d o l l a rs
G o al
0
0
0 98
99
00
01
02
03
98 99 00 ECT 01 RICIT 02 Y /03 GLOBAL EL NATURA L GAS USA G E G L O BAL EL ECT R I C I T Y / Billi o n s of k ilo watt h ours N ATbillion U R A L sales G A S do USA GE per ll ars B illi o n s o f k ilo w att h ou r s p e r b i l l i o n s a l e s do l l ars
0
98
99
00
01
02
03
98 99 GLOB A L R00E CY01C LE02D 03 NON-HAZ A RDOUS WASTE G L OB A L R E CY C LE D Percen t re c ove r ed N O N - H A Z A RD O U S WA S T E P e r c e n t re c ove r ed
0
95
96
97
98
99
00
01
02
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95 96A L P97ER F98 99 00ARBO 01 N 02 03 GLOB L UOROC COMPOUN D EMIS SIO NS G L OB A L P ER F L UOROC A R B O N In perce nta ges , e missio ns n o rm a li zed C O1MP U N Dcarbon) EM I S SIO N S to 9 9 5O (as I n pe r c e n t a g es , e mi s s i o n s n o rm a li ze d t o 1 9 9 5 (a s c a r b o n)
The Tough Stuff and how we see it Q1. What is globalization? Is it good or bad? A1. While globalization has no single definition, it is frequently used to explain how the world has shrunk and how events on one side of the globe can have an immediate impact on the other side. Information and money flow nearly instantaneously, international travel is pervasive, goods and services cross borders faster than ever and no country is isolated from actions on other continents. >
Companies like Motorola can export and promote the ideals of democracy, freedom and an open marketplace along with high-tech products.
While not inherently good or bad, this interconnectedness can have both positive and negative results. For example, mobile phones enable poor women in Bangladesh to set up phone-call
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Constant pressure from competitors requires companies to continuously improve productivity, lower costs and innovate. Open economic systems allow for more scrutiny than closed systems. They enable the world community to actively address social injustices and protect the environment. Under-served populations are gaining access to important advancements in technology.
businesses as a way to improve living conditions for their families. On the other hand, diseases like SARS can cross the world via airplane and infect people thousands of miles away from the disease’s origin. As a participant in the global economy, Motorola works hard to ensure that we grow in sustainable ways – always respectful of the communities, traditions, customs and environments where we operate.
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Q2. What about outsourcing? A2. When a company uses other companies to help produce its goods and services, it’s often called outsourcing. At Motorola, we call it worldwide sourcing. For a company with operations around the world, it basically means partnering with others, as needed, to provide the best value for our customers. About half of both our global workforce and our revenues come from the U.S. Equally important is our investment in the world’s rapidly emerging markets. Such investments enhance our strength in all markets by fostering competitiveness, profitable growth, innovation and new opportunities. Wherever we operate, we follow our key beliefs and work to help ensure that our supply-chain partners operate with similar values. In 2003, we established global corporate citizenship expectations for our suppliers and are implementing them throughout our supply chain. They can be found at www.motorola.com/EHS/environment/supplier.
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How are you addressing global climate change?
A3. We recognize that human actions may be influencing global climate change and have had initiatives to address this for several years. In 1999, we established an aggressive goal to reduce our emissions of PFCs (perfluorocarbons) – the largest source of greenhouse gases – by 50 percent worldwide by 2010. Motorola achieved the goal in 2003, well ahead of schedule. Also, we are a founding member of the Chicago Climate Exchange, an innovative voluntary initiative to reduce emissions. To be transparent about our actions, we participate in the Carbon Disclosure Project.
Q4. News reports and environmental groups have called attention to the devastation that illegal Coltan mining has caused to gorillas in Congo. What has Motorola done to address this issue? A4. In early 2001, Motorola became aware of the illegal mining of Coltan in the Democratic Republic of Congo. We took swift and effective steps to cease the use of materials containing tantalum, a Coltan derivative, that could be traced to illegal mining. We have done as much as possible to mandate and enforce compliance from our suppliers on this important issue. Should we learn of non-compliance, we would immediately investigate, work with the supplier to remedy the situation or, if necessary, terminate our relationship with the supplier. We also encourage and support organizations, such as the United Nations, that are actively engaged in seeking solutions to the tragic conflict in Congo. We know that there are many challenges ahead, but Motorola will continue to address this and similar issues in a swift, responsible and balanced manner.
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A4 continued.
Tantalum powder is used in the production of materials found in a wide range of electronic devices, including mobile phones. Almost all of the world’s tantalum comes from Australia, but Motorola does not buy tantalum directly. We require all of our suppliers, existing and new, to verify in writing that materials sold to Motorola do not contain tantalum derived from illegally mined Congolese Coltan. Our suppliers have responded to this mandate and share our concerns about the deplorable damage that has been caused by illegal mining. While our use of tantalum has significantly declined over the last few years, Motorola purchases materials containing tantalum derived from legally mined Coltan from companies in Japan, Korea and the U.S. These companies obtain most of their tantalum from two main tantalum processors, Cabot and Starck. Both companies have stated that they control their purchases to minimize the possibility of obtaining illegally mined Congolese Coltan.
Q5. How is Motorola dealing with concerns about distracted driving? A5. Motorola has a long-standing commitment to responsible driving and to addressing potential distractions such as eating, drinking, grooming, talking with passengers, reading maps or using electronic devices improperly. As part of our
We provide programs that help people drive more responsibly, which is their primary task when at the wheel.
efforts, we’ve developed voice-activated phones, navigation aids that eliminate cumbersome map reading, and the Driver AdvocateTM system, which uses onboard software to monitor driving conditions and prioritize the driver’s tasks. In addition to offering new products and technologies, we conduct research and provide educational programs that help people drive more responsibly, which is their primary task when at the wheel.
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We provide employees with a Web-based distracted-driving course that identifies and provides solutions for potentially risky driving behavior.
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We provide customers and partners “best practices” guidelines for the use of our products and have established a publicly available distracted-driving course for use by other employers.
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We are working with the American Automobile Association to create a distracted-driving program for novice drivers that focuses on safe use of mobile phones.
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At our Tempe, Arizona, research facility, we use a simulator to analyze product-related driving and human factors and to conduct broad research on distracted driving.
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We regularly review, and selectively sponsor, academic scientific research on driving issues. See www.motorola.com/callsmart for more information.
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Q6. What is Motorola’s human rights policy? A6. Motorola’s human rights policy is based on our long-standing key beliefs of uncompromising integrity and constant respect for people.
Q7. Huge growth in the use of mobile phones has led to questions about their safety. What has Motorola done in this regard?
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Anti-Discrimination - We employ people on the basis of their ability to do the job, and we prohibit discrimination based on workers’ personal characteristics or beliefs.
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Freely Chosen Employment - We do not use forced, prison or indentured labor. We ensure that terms of employment are voluntary.
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No Child Labor - Our hiring practices conform with the International Labor Organization conventions for minimum age and child labor.
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Working Hours and Wages - We do not require our employees to work more than the maximum hours of daily labor set by local law. Our employees are paid at least the minimum legal wage or, where no wage law exists, the local industry standard.
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Freedom of Association - Our employees have the right to join associations of their own choosing or to refrain from joining, unless otherwise prohibited by law.
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Safe and Healthy Working Conditions - We provide a safe and healthy work environment for employees. In cases where we provide housing or eating facilities, we operate and maintain them in a safe and sanitary manner.
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No Harsh or Inhumane Treatment - The safety and security of employees at our facilities is a key priority. We prohibit the physical abuse and harassment of employees, as well as the threat of either.
A7. For years, Motorola has been >
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Mobile phones, two-way radios and other wireless products use radio frequency (RF) energy – sometimes referred to as radio waves, a form of electromagnetic energy – for communication. Scientists around the world have studied the health effects of electromagnetic energy for more than 50 years and have established science-based safety standards providing wide margins of safety.
a leader in exploring the relationship between radio waves and health. We have supported independent studies and have made important contributions to research in this
These standards and guidelines are based on exhaustive expert evaluations of the best available scientific literature and establish exposure limits that provide significant margins of safety for users and the public.
area. We continue to work globally
See www.motorola.com/rfhealth for more information.
national authorities and others on
with international organizations, these health issues. Motorola mobile
telephones, two-way radios and other portable radio product lines are designed, manufactured and tested to ensure that they operate within nationally and internationally recognized safety standards. The fact that all Motorola products meet these standards provides a sound, scientific basis for confidence in their safety.
Product Stewardship To achieve continuous improvement throughout the life cycle of our products, Motorola is developing a product stewardship program. The objective is to implement a product-centered approach that provides customers with more value at less environmental impact. We are identifying processes that can be improved to minimize the environmental, health and safety impacts throughout a product’s life cycle, including design, supplier management, manufacturing, distribution, sale, product use and end-oflife management. We have achieved significant successes in recent years. For example, we eliminated cadmium, a hazardous material, from our batteries in mobile phones while still providing a smaller and lighter battery with longer performance. We also reduced the amount of material used in our mobile phones from 5 kilograms in 1984 to less than 100 grams in recent models. Additionally, we have implemented battery collection programs in many places around the world.
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Product Design Goals We have established the following goals for designing new products: >
Design our products to be highly recyclable
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Reduce the use of hazardous materials
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Reduce energy use by our products
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Increase the use of recycled materials in our products
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Minimize the ratio of packaging material to product volume
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Label all plastic parts weighing greater than 4 grams to aid future recycling
Green Design Advisor The Green Design Advisor (GDA) is a software tool that helps Motorola engineers calculate the environmental impact of a product and compare different materials and processes used to create a product.
Rapid Environmental Assessment Lab The Rapid Environmental Assessment Lab (REAL) in Taunusstein, Germany, is part of Motorola’s Advanced Technology Center in Europe and focuses on environmentally friendly materials, product recyclability and energy conservation. REAL enables Motorola’s staff, suppliers and resellers to conduct material analysis and recyclability studies. Such analyses are necessary because individual components of materials often originate from suppliers in different countries, where different regulations for environmental compatibility apply.
European Environmental Laws European laws covering electronic equipment take-back, disposal and recovery (Waste Electrical and Electronic Equipment Directive) and restricting the use of hazardous materials (Restriction of Hazardous Substances in Electrical and Electronic Equipment Directive) are changing how electronic products will be designed and managed in the next few years. It is likely that China, some U.S. states and other jurisdictions will adopt the European approach. Motorola has already taken steps in the right direction. Our business units have established roadmaps that incorporate these environmental parameters. We have developed environmentally preferred product goals and a materialdisclosure specification to aid product design. A cross-sector product stewardship team is developing a framework and tools to help businesses respond to the new requirements.
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The World We Share Every year, children and grandchildren of Motorola employees in Illinois participate in an environmental awareness program that publishes their artwork on environmental issues in a calendar for employees and other stakeholders. The illustration shown here is by Kristi Chadzichristos, age 7. The work of other young participants is pictured on the next two pages.
The World We Share Illinois, USA Sponsored Green Car and Safe Driving Expositions at several Motorola campuses in northern Illinois. The events showcased alternative-fuel vehicles, advanced-technology hybrid vehicles and lowemissions vehicles.
Minimizing environmental impact while maximizing product life span. Reducing waste while increasing sustainability. Decreasing emissions while expanding recycling and reuse. We’re taking responsibility and taking action for the sake of the world we share.
Namibia Supported Biosphere Expeditions, a non-profit wildlife research and conservation organization working to protect rare cheetahs and other threatened and endangered animals. Arad, Israel Tutored 10 groups of high-schoolers in a program, initiated by the Tel Aviv Municipality, where students produce technological solutions to the city’s environmental problems. Jaguariúna, Brazil Partnered with Embrapa, a federal environmental research institute, to develop an environmental awareness program in the Jaguariúna region; the first projects entail developing an environmental curriculum guide and a series of environmentally themed contests.
Artist: Natalie LaPlant Age: 8
Artist: Jennifer Margono Age: 9
Artist: Stephanie Zhu Age: 10
Artist: Adam Cheng Age: 10
Lawrenceville, Georgia, USA Saved 4,500 commuter miles through carpooling, teleworking and use of public transportation during 2003 smog season. Ang Mo Kio, Singapore Supported 2003 Clean and Green Week, organized by the Ministry of Environment, and sponsored a Green Audit Program for schools promoting greener campuses. Texas, USA Helped develop the Central Texas Early Action Compact and Clean Air Force activities and participated in emissions-reduction task forces. Arlington Heights and Schaumburg, Illinois, USA Conducted household electronics collection events for employees and members of the community; a record 195,000 pounds of materials were recycled or reused.
Artist: Juhi Palat Age: 4
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Putting Down Roots Scientists estimate that the earth loses more than 70 million acres of forest each year. Trees are nature’s filters, and this unrelenting loss threatens the beauty, health and very existence of our ecosystems. Every year, Motorola employees around the world make tree-planting initiatives a focus of their community outreach. Tianjin, China Sponsored four tree-planting events (1,500 poplar trees) in local urban areas. Taipei, Taiwan Sponsored planting of 100 camphor trees in Hsin Dien City.
Florida, USA > Collected cypress tree seeds for cultivation at the Arthur R. Marshall Loxahatchee National Wildlife Refuge and eventual use in the Florida Everglades reforestation project. >
Hong Kong Continued sponsorship of five-year Forest Adoption Project with WorldWide Fund Hong Kong in Pak Sin Leng Country Park.
In Florida, a team of Motorola employees participated in the 2003 International Coastal Cleanup, collecting trash from the shoreline of Lake Osborne and data on the type and amount of debris collected. Data were forwarded to the Ocean Conservancy for tabulation. Among the local denizens to benefit from their efforts was Alligator mississippiensis.
Thanks to the Florida Fish and Wildlife Conservation Commission for the info.
Ang Mo Kio, Singapore Partnered with the Cheng San Community Development Center to catalog flora and fauna in an unexplored section of national park land. Flensburg, Germany Planted 600 tree and bush seedlings to help create an outdoor adventure playground for area children. East Kilbride, Scotland Supported Greenhills Out of School Care Club gardening. Viables and Midpoint, Basingstoke, England Spruced up Maple Ridge School, a special needs facility; volunteered time to the Royal Society for the Protection of Birds. Dorset, England Built fences to protect young trees and heartland in Avon Heath Country Park from damage caused by hungry rabbits; planted woodland flower seedlings for spring transplantation to the Cracknel Forest. Penang, Malaysia Planted 70 casuarina trees and cleaned beaches along coastal roads.
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Alligators are an important part of Florida’s heritage and play a crucial role in the ecology of the state’s wetlands. Females average 8 feet long and males average 11 feet, weighing up to 500 pounds.
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The length of an alligator may be estimated from the length of its snout. Each inch, from the tip of the snout to the eyes, equals about 1 foot of total body length.
Artist: Indraneel Brahme Age: 6
Assisted with wetland restoration project at Lake Osborne near the Lantana Airport, collecting trash, removing exotic plants and harvesting pond-apple seedlings that had sprouted too close to the airport runway.
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Planted 75 native plants at the John U. Lloyd Beach State Park in Dania Beach.
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Removed trash and exotic invasive plants from the Yamato Scrub Natural Area, Boca Raton.
Ambler, Pennsylvania, USA Removed invasive plants; planted 30 native saplings for the Wissahickon Valley Watershed Association. Schaumburg, Illinois, USA Collected seeds and cleared brush for redistribution and restoration of endangered plant species at a local nature sanctuary. Deer Park, Illinois, USA > Provided seedlings and potting materials for children attending our Take Your Kids to Work Day activities. >
Planted 500 seedlings at the MacArthur Woods Oak Savannah Recovery Project.
Arizona, USA Moved 11 tons of gravel before landscaping and planting at the Phoenix H.O.P.E. House (transitional living for homeless women).
Waste Not Our “disposable society” can be rough on the environment. Consumer electronics pose environmental challenges for people who buy them and companies that make them. Most people want the features offered by the latest TVs, computers and mobile phones. But what can consumers do with existing devices when they upgrade? What is the corporate community’s response to this dilemma? Experts estimate that the average “life” of a mobile phone today is only 18 months. At Motorola, we offer phones with a variety of features and styles that help make life easier and better. But we understand how innovation can contribute to the increasing number of obsolete and unwanted phones. So we are taking action. Upgradable phones, for example, allow users to keep them longer by adding new features and options. Motorola has initiatives to facilitate the recycling of obsolete phones and batteries. We also support programs that use proceeds from collected phones to combat hunger, homelessness and domestic violence. Recycling, materials reuse and conservation of natural resources are cornerstones of our effort to reduce the environmental impact of our products. Our priority is to develop products that are innovative and meet our customers’ needs but that also conserve natural resources, contain only benign materials, use low amounts of energy and are easy to recycle. Our industry leadership in environmentally preferred technologies – such as halogen-reduced printed wire boards and lead-free solder – has made us a pioneer in manufacturing “green phones.” We will continue to design and build advanced mobile phones for the marketplace, always aiming for maximum innovation and minimum environmental impact.
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U.K. and Sweden Implemented successful take-back programs
Brazil Collected 100 tons of end-oflife batteries
China, Singapore and Malaysia Initiated post-consumer take-back programs in dozens of cities
Germany Eliminates tons of waste annually with reusable boxes and trays
Going toward the green
Gaining by reducing
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Provides North American customers with no-charge options for recycling used batteries through INMETCO or the Rechargeable Battery Recycling Corporation program. (Visit www.RBRC.org for information.)
XiQing, Tianjin, China Increased non-hazardous waste recycle rate to 70% in 2003 vs. 63% in 2002 through recycling clean-room waste by a clean-room consumable supplier; increased hazardous waste recycling rate to 15% in 2003 vs. 7% in 2002 by reusing sulfuric acid in industrial water tower/scrubber neutralization and cooling tower pH adjustment; achieved 100% waste epoxy reclamation.
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Shared environmental solutions with industry trade groups such as the Cellular Telecommunications and Internet Association and the Consumer Electronics Association.
Ang Mo Kio, Singapore Reduced hazardous waste by 57%, non-hazardous waste by 34%, energy consumption by 37% and water consumption by 29% over the last year.
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Became a signatory to the United Nations Environment Programme Sustainable Partnership on the Environmentally Sound Management of End-of-Life Mobile Phones.
Hong Kong, China Implemented 17 reuse/recycle programs encompassing materials use and water and energy conservation; donated 325 pairs of unneeded clean-room shoes and other equipment to not-for-profit Crossroads International, avoiding 342 kilograms of landfill waste. Flensburg, Germany Reduced hazardous waste generation from 32 metric tons to 8 tons over the last four years and 40% or 10 metric tons in 2003 alone; invested in reusable boxes and trays to eliminate an estimated 1.2 million disposable trays and 180,000 cardboard boxes.
Compliance and Remediation We strive to comply with all applicable environmental, health and safety laws and regulations of the countries in which we operate. During 2003, we received five non-compliances and zero fines (see next page). We promptly corrected the issues and addressed their root causes to prevent recurrences. Going forward, we will work diligently in pursuit of our goal of perfect compliance. The need for environmental remediation was identified at 10 current and former Motorola manufacturing sites. These remediations resulted from activities that were legal and in compliance with industrial standards at the time. However, as soon as an environmental impact was identified, we took appropriate actions to address the issue. We have completed remediation at six sites. Motorola is involved in U.S. EPA Superfund Program cleanup operations at non-Motorola sites to which our waste was sent for disposal in the past. Motorola remains committed to pay our fair share to clean up any environmental impacts to which we may have contributed. As a strong, tangible commitment, we have reserved $70 million for any probable environmental liabilities. Motorola utilizes the best technology available to ensure remediation is conducted efficiently, effectively and in a timely manner. In 1993, Motorola implemented a set of leading environmental standards to review all off-site disposal facilities on a periodic basis. We perform due-diligence investigations to evaluate potential environmental risks at sites that we are planning to acquire, divest or lease. Motorola also has developed action plans to remedy other issues, including some not attributable to our company.
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EHS Compliance History 2003
2002
2001
2000
1999
1998
Environmental non-compliances*
5
1
1
1
4
12
Safety non-compliances*
0
5
0
3
0
2
$0
$0
$1,000
$1,375
$0
$40,700
Fines or penalties
*Non-compliances include notices of violation (NOV), citations, administrative orders and notices of non-compliance
2003 EHS Compliance Record LOCATION
AGENCY
DESCRIPTION
CORRECTIVE ACTION
FINE
Schaumburg, Illinois United States
Metropolitan Water Reclamation District of Greater Chicago (MWRDGC)
Received notice of noncompliance based on self-reported violations of permitted copper and mercury wastewater discharge limits.
Conducted detailed evaluation of wastewater treatment system and conveyances, which resulted in lines being flushed to remove buildup of residual solids.
None
Schaumburg, Illinois United States
Metropolitan Water Reclamation District of Greater Chicago
Received notice of noncompliance based on self-reported violations of permitted copper wastewater discharge limit.
Completed modifications to wastewater treatment system to handle significantly lower flow volumes.
None
Northbrook, Illinois United States
Metropolitan Water Reclamation District of Greater Chicago
Received cease and desist order for discharging effluent with high pH into sanitary sewerage system.
Conducted investigation as required, and found cause of exceedance to be faulty electronic pH controller. Controller and associated components were replaced, and pH sampling was conducted over three-day period to verify system was in full compliance. Follow-up report to MWRDGC was filed as required.
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Deer Park, Illinois United States
Department of the Army, Chicago District, Corps of Engineers
Received notice of non-compliance for not complying with conditions of our wetlands permit due to inadequate soil and sediment control measures in a few locations.
Areas of concern were stabilized and re-vegetated. Army Corps conducted follow-up inspection in August 2003 and determined that all issues Motorola was responsible for had been resolved satisfactorily.
None
Lawrenceville, Georgia United States
Georgia Department of Natural Resources (DNR)
Received notice of violation based on self-reporting the use of deactivated EPA ID number for shipment of hazardous waste for disposal.
As directed by Georgia DNR, response letter explaining the discrepancy was submitted to disposal firm and accepted.
None
Enabling Everyone Motorola makes things that help make life better and easier for everyone – and that includes people with disabilities. As we develop and launch new products, we do so with the understanding that people will use them, and rely on them, in different ways. Visit us at www.motorola.com/consumer/accessibility for additional consumer information.
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Visual-Impairment Solutions High-contrast displays Identifiable “5” key Audio cues Speech recognition Voice-message recording Verbal phonebooks Programmable ring tones Zoom displays
Mobility-Needs Solutions Side-grips and rubber covers One-touch dialing Bluetooth® headset Automatic-answer feature Speech-recognition dialing Hearing-Needs Solutions
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Earpiece speakers that couple with telecoil-equipped hearing aids
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Hands-free neckloop accessory
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T T Y-compatible phones
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Reaching out to the Next Generation Argentina Built a library for School No 38, where employees read books to students as part of the To Read program. Korea Sponsored Motorola Angels, supporting underprivileged children and orphans through mentorship, scholarships and financial support. Philippines Donated clothing, milk, books and medicine to abandoned children in Quezon City and provided financial support to the Don Bosco House for Street Children. Illinois, USA Supported the Re-Use a Shoe program, turning old shoes into materials used in athletic courts and playground facilities for schools and community centers. Toulouse and Angers, France Provided training, mentoring, job placement assistance and financial support to young people. Jaguariúna, Brazil Issued the first edition of an environmental education book, sponsored in part by Motorola, for school teachers to use in teaching water conservation. Vietnam Donated US$50,000 to build a rural elementary school facility, in a joint project with Vietnam Posts and Telecommunications Corporation. USA, UK, France, Germany Sponsored the Lego League, teaming younger students with Motorola engineers to design and operate robots that perform complex tasks in competition. Venezuela Donated US$13,000 to San Juan de Dios children’s hospital to cover the cost of surgeries for needy children. Santiago, Chile Donated presents at annual Christmas ceremony for El Broquel, a center for homeless children.
Istanbul, Turkey Commemorated Motorola’s 75th anniversary by donating new clothing to 75 disadvantaged children living in one of Turkey’s poorest neighborhoods.
MOTOROLA in the Community Hong Kong, China Sponsored EnviroSeries 2003, a forum on conservation, recycling and sustainable development, and donated computers and equipment to the Salvation Army. Schaumburg, Illinois, USA Worked with area organizations to rehabilitate a local children’s advocacy center and group homes for abused children, seniors and people with developmental disabilities; to sponsor educational field trips for local children from disadvantaged families; and to sponsor bowling outings for people with mental illness. Flensburg, Germany Organized MOTOWALK to raise funds for the Katharinen Hospice and also raised funds for the Flensburger Tafel, a soup kitchen. Taipei, Taiwan Donated US$6,000 to the senior amnesiacs campaign organized by the Social Welfare Foundation and, with Mobitai, donated more than US$30,000 to assist victims at the Family Abuse and Sex Abuse Prevention Center. Flensburg, Germany MOTOWALK
Korea Sponsored play-and-learn exhibit at the National Seoul Science Museum, encouraging children to explore telecommunications and electronics. Timau, Kenya Sponsored Mount Kenya Mountain Bike Challenge, a 50-kilometer downhill race, raising funds for the Woodley Mount Kenya Trust, local schools and communities. Ang Mo Kio, Singapore Provided training, certification and employment for intellectually disabled adults through Movement for the Intellectually Disabled of Singapore. Swindon, England Supplied landscaping for the West Swindon Family Project, a voluntary organization that provides resources and information to children and families. Arad, Israel Collected 20,000 bottles and cans and used the deposits to provide food for needy families; donated more than 500 hot meals each week in Tel Aviv and Hertzelia; participated in a bone marrow drive, identifying 500 potential donors. Toulouse, France Supported four non-profit organizations helping to integrate foreign women into the community, sponsored a community concert and a food drive, and organized a small-business roundtable featuring Minister Renaud Dutreil and business leaders from Le Mirail. Tempe, Arizona, USA Sponsored ninth annual education partnership with Carminati Elementary School, where Motorola engineers used model rocketry to teach math, science and engineering principles to fifth graders; continued mentoring female engineering students at Arizona State University. Mexico City, Mexico Helped refurbish public schools and served infants in foster care in underprivileged areas. San Juan, Puerto Rico Helped paint and landscape Colegio de Educacion Espedica y Rehabilitacion Integral. Brazil Through the efforts of 900 Motorola volunteers, assisted 23 institutions and 4,000 people; contributed US$20,000 and donated 6,000 items of clothing and more than 6,700 kilograms of food.
How do we jump-start innovation?
Competitors in Motorola’s Be an Inventor Challenge inspire young people who may someday jump in the footsteps of the East Kilbride, Scotland winners, shown above.
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Education Keeping new inventors, thinkers and doers in the pipeline means we have to go to the source. Young minds, open to fresh thoughts and ideas, are the future of our company and our world. Flensburg, Germany Donated US$12,000 worth of equipment to the electrical engineering department of Flensburg Vocational School. Korea Awarded scholarships to students with the Korea Information and Communication Society; supported development of training materials for junior college students with the Institute of Electronic Engineering of Korea. Bangalore, India Partnered with the India Ministry of Technology to develop a PowerPC® technology curriculum, now offered at 14 strategic institutes. Schaumburg, Illinois, USA Hosted the fifth annual Engineering Trek in conjunction with National Engineering Week, where students interested in pursuing engineering careers have an opportunity to participate in tours, presentations and oneon-one time with engineers. Penang, Malaysia Partnered with the Malaysia Multimedia University to establish a knowledge management program, providing a platform for development of instructional design skills; the partnership facilitated successful projects in electronic-, mobile- and televisionbased learning. Philippines Partnered with the University of San Carlos to improve IT and engineering curriculum, providing hardware, software development kits, laboratory tools, literature, manuals, training and implementation support. Mexico Donated semiconductor boards and software to familiarize engineering and telecommunications students with new embedded technologies.
Vietnam Donated US$40,000 to two leading universities to assist with laboratory upgrades and to provide scholarships for promising students from disadvantaged backgrounds. Arad, Israel Inaugurated a unique two-year course for 11th-grade students in computer and digital communications at Gimnasia Hertzelia in Tel Aviv. San Diego, California, USA Partnered with Cox Communications to provide wireless Internet access to students’ homes using Motorola’s SBG1000 wireless cable modem gateway, as part of the Classroom for the Future’s Lemon Link project in the Lemon Grove School District.
Tianjin, China Supported Half the Sky (HTS), an organization providing early childhood education, personalized learning and infant nurture programs in Chinese welfare institutions, by providing and installing computers and training in HTS orphanage preschools. Arad, Israel Dedicated two working hours per week to teaching mathematics to high school students of Ethiopian origin, helping them succeed in their baccalaureate exams. Philippines Supported UP Diliman engineering students and helped fund laboratory upgrade; sponsored the Manual M. Lopez Development Center in Antipolo, a world-class training and development facility, with a US$20,000 donation.
Inspiration Whether as big as a lightning bolt or as subtle as a lightning bug (thanks, Mark Twain), when inspiration strikes, great things can happen. Motorola seeks that flash from young people everywhere. USA Sponsored robotics teams in the FIRST (For Inspiration and Recognition of Science and Technology) Competition; Motorola engineers worked with students from local high schools to design and build the robot that won the national championship. Ukraine Provided scholarships and sponsored internships and work-study programs for engineering students at Kyiv Polytechnic Institute. Dubai Provided training, internships and mentorship to promising students from throughout the Middle East, including the United Arab Emirates, Kuwait, Egypt, Morocco and Qatar. East Kilbride, Scotland Sponsored Motorola’s Be an Inventor Challenge, encouraging innovation and development of key business skills among children.
Swords, Ireland Supported local schools through sponsorship of special events and week-long work experience programs, encouraging students to consider technology careers. Colombia Donated microcontroller kits to three universities to help train professors and students in semiconductor technology. Costa Rica Donated a computer lab to Ciudad de los Ninos; donated 75 fruit trees so the local school could sell produce to support programs. Brazil Provided professional training for underprivileged teenagers, in partnership with Homem do Amanhã.
Each month, thousands of women hear the words “How can I help?” from the National Domestic Violence Hotline, offering a way out of abusive relationships. “It takes courage to call,” says Candice Smith, a hotline volunteer since 1999. “Sometimes, a woman will keep the number for months before deciding to act.” Candice offers information, referrals to local programs and shelters, crisis intervention and help developing safety and escape plans. “Not every call is a crisis,” she notes, “but the hotline is often the first place a woman reaches out to. She’s confiding in a stranger, a voice To enable women to make these calls, Motorola cofounded over the phone.” the Call to Protect program in 1996. The initiative – supported by the company, the Wireless Foundation, the National Coalition Against Domestic Violence and several telecommunications carriers – distributes preprogrammed safety phones, with free airtime, through a national network of shelters and support groups. Abuse victims can call for emergency assistance anytime, anywhere. To date, Motorola has donated more than 20,000 new mobile phones to the program, providing a wireless lifeline for more than 100,000 women and their children. While many of the distributed handsets are brand new, donated phones are also collected, refurbished and issued to at-risk women or sold to raise funds for domestic violence prevention programs.
How can I help? Motorola sites have coordinated several collection events at the local level, and national organizations, including the National Football League, also have sponsored drives. A side benefit is the environmentally friendly way thousands of older phones are reused and obsolete phones are recycled.
These women are often starting over
with their children in tow and nothing but the clothes on their back.
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Reflecting a growing need, the National Domestic Violence Hotline (1 800 799 SAFE) recently answered its onemillionth call. Says Candice, “These women are making the most important call of their lives.”
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Employees Support Junior Achievement For thousands of young people around the world, Junior Achievement (JA) teaches the first lessons learned about economics and serves as an important introduction to the world of business. Aimed at 5- to 17-year-olds, the program provides younger students with an overview of the marketplace, while older students learn how to establish and operate small businesses.
“Since the 1940s, Motorola’s support has helped prepare generations of young people for the realities of business,” says Sandy Daffé, president of Junior Achievement of Chicago. “This hands-on commitment has helped instill in them the values of hard work, collaboration and ethical behavior. In today’s global economy and in the midst of far too many corporate scandals, such lessons have never been more important.” Motorola has a long and rich history with JA. Hundreds of employees volunteer each year as JA teachers, using a curriculum funded by the Motorola Foundation. The company actively supports chapters in Argentina, Australia, Guatemala, Hungary, Ireland, Israel, Russia, Uruguay and across the United States.
Motorola employees enriched by Junior Achievement >
Jennifer Lyons, marketing specialist in Motorola’s Personal Communications Sector, was once a JA student herself, and has worked with second, third and fourth graders for the past two years. She explains, “JA provides a fun and age-appropriate way to introduce complex business, community and financial topics to kids.”
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Tushar Patel, software engineer in Motorola’s Global Telecom Solutions Sector, says JA taught him, as a fourth grader, that business can and should help society. Today he teaches the basics of supply and demand to first graders, who “ask the most challenging questions but are wildly creative in thinking about what business really means.”
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Brett Jackson, director of engineering for Motorola’s Commercial, Government and Industrial Solutions Sector, recalls his long history with JA. “Not only was I in JA as a high school student, I was in a JA group sponsored by Motorola,” he says. “We formed a company, developed a business plan, then produced and sold fiber-optic lamps.” Today he’s designing the next generation of wireless technology and also teaching 10- and 11-year-olds the nuts and bolts of managing a business.
Argentina, Brazil, Colombia, Mexico Supported the initiatives of the Ibero-American Science & Technology Education Consortium, connecting universities and institutions throughout Latin America to advance research and scholarship. Korea Sponsored the new Telecom Technology Seminar at Yonsei University and presented scholarships to engineering students at Seoul National University, Choongbuk National University and Sookmyung Women's University. Scotland Supported SCI-FUN, an innovative, hands-on education program that introduces young people to the wonders of science and raises awareness of technology in everyday life. Singapore Awarded prizes to top engineering students at area universities. Motorola’s three R&D centers also collaborated with area educational institutions on key technology projects. Israel Working through the Fidel Association, provided financial assistance, social support and counseling to low-income engineering students of Ethiopian origin.
The Motorola Foundation sponsors programs that prepare students for careers in math, science and engineering. Over the past 10 years, the foundation has donated more than $70 million to schools and charities around the world. In 2003, the foundation provided more than $9 million in grants to fund organizations and initiatives, including the examples listed on this page. Visit www.motorola.com/MotorolaFoundation/ to find out more. Philippines Supported development of the Asian Institute of Management’s Courseware Development Project on the management of information and communications technology in the Philippines. Ukraine Instituted the Laboratory for Digital Signal Processing and the virtual LDSP at the National Technical University of Ukraine – the first and only lab in the Ukraine dedicated to remote engineering training for students, postgraduates and engineers. USA Supported the Arizona Business Leadership Network in hosting education forums on disability awareness, assistance technology and work issues for people with disabilities.
United Way Thanks to the generosity of Motorola employees, the company was honored with the United Way Million Dollar Community Partnership Award in 2003. Those shown at right represent the many employees who have supported or benefited from United Way. Carmen Gonzales
Bernie Schaeffer
Loretta Kohlstedt
Larry Chapman
We partner with health and human service organizations locally, nationally and internationally, focusing on projects that address basic needs of children and adults. In the United States, we have supported United Way since 1951. Motorola employees and the Motorola Foundation contributed more than $4.1 million to United Way chapters across the country in 2003.
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Hope: the greatest gift
Project Hope strives to improve teaching conditions and promote the development of basic education in China. Since 1994, Motorola and the Motorola Foundation have donated more than $3 million to the initiative, providing education and financial support for children who have dropped out of school in rural areas.
Here’s what we have achieved: >
Helped more than 10,000 children return to school
>
Established 30 school libraries
>
Set up 25 multimedia language labs
>
Trained more than 600 teachers
>
Funded 300 advanced-study scholarships
>
Helped build more than 60 schools in 22 provinces
In 2003, we made additional donations of books and other equipment, and nearly 100 Motorola employees contributed thousands of volunteer hours to Project Hope schools.
Motorola’s CEO Award for Volunteerism, funded by the Motorola Foundation, encourages worldwide community involvement and recognizes examples of exceptional dedication. The award is the highest recognition an employee or team can receive for community involvement. In 2003, 11 individuals and one team were honored. (Three honorees are highlighted at right.)
One MMSC Community Services Team Selangor, Malaysia The Global Software Group in Malaysia launched a community outreach program to help bridge the digital divide in Selangor and expand career horizons for area residents. Funds were raised to establish a Technology Resource Center at a local primary school, supported by 12 Motorola employees. Fernanda Cobos Nicolete Jaguariúna, Brazil Fernanda volunteers with Time SIFE PUC Campinas, an initiative that helps disadvantaged women by teaching them business basics as they produce and sell their own handicrafts.
Don White Austin, Texas, USA For seven years, Don has been a dedicated volunteer member of the San Marcos Area Recovery Team (SMART), a group of underwater investigators. SMART conducts structure evaluations for public agencies, performs crime scene processing and supports educational programs for area school children.
Employee Diversity Motorola promotes diversity in multiple ways. Our Global Diversity Office, for example, provides resources and tools for embedding diversity into our business practices and has oversight of Motorola’s five diversity business councils. Led by senior executives and emerging leaders, the councils provide opportunities for employees to connect, develop professionally, advance Motorola products and extend a helping hand to their communities. >
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Asian Business Council Showcased Motorola products and brand at events such as Chitrahar Night and the U.S.-China Economic Development Forum. Black Business Council Positioned Motorola products as essential lifestyle gear at events such as the NBA All-Star Weekend and Chicago International Film Festival.
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Gay, Lesbian, Bisexual and Transgender Business Council Sponsored training that explored gender and sexual-orientation issues in the workplace and initiated a related course at Motorola University.
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Women’s Business Council Initiated peer-to-peer employee mentoring program and online executive interviews that can enhance career development.
Latino Business Council Partnered with Motorola Foundation in Viva Technology initiative that develops Hispanic talent.
Motorola’s trimester review process sharpens the focus on developing diversity throughout the company’s senior ranks. In those sessions, senior leaders review diversity efforts of each business and function as well as the advancement and movement of diverse talent throughout the organization.
Supplier Diversity The Motorola Supplier Diversity Program is designed to increase purchasing and subcontracting opportunities for minority-owned, women-owned and other recognized diversity-owned businesses, and to maximize the volume of goods and services purchased through them. In 2003, we spent more than $335 million in the United States with tier 1 and tier 2 minority-owned and women-owned businesses. In addition to procurement opportunities, Motorola provides developmental assistance to diversity-owned businesses through mentor-protégé relationships and educational programs. 36
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What if I could be anything?
Basingstoke, England In 2003, participation in Take Our Daughters to Work Day was higher than ever. Korea Motorola reaches out to women through visits to local schools, where informational forums are held regularly on technology and engineering careers. Educational meetings are arranged for students interested in learning more, and annual scholarships are awarded to promising young women.
What if a girl could imagine herself in any occupation, pursuing the activities for which her talents and intelligence best suited her? Research suggests that boys and girls are still reared with stereotypes about what’s appropriate for men and women to do. This may be the reason more women aren’t pursuing careers in technology and engineering. More alarming still, a recent survey of female engineers found that many education and career counselors actually steer women away from the field and discourage them from studying related subjects in school. Encouragement helps a girl go against the grain. “My family instilled in me a love of math and science, and I was always trying to figure out how things worked,” says Padmasree Warrior, Motorola’s first female chief technology officer. Ever since Helen Lagowski was hired in 1928 to work in the company’s first factory, Motorola has believed we need the best minds, not just the best male minds, to make our company stronger, our business smarter and our products better. Motorola sites participate in Take Our Daughters to Work days and many sponsor the International Girls Day initiative to motivate young women toward an interest in technical or engineering careers. Open laboratories, design rooms and offices give girls a firsthand look at the rewards and opportunities awaiting them. Special events give insight into working life, and young women are encouraged to apply for ongoing internships and training programs.
Cultural stereotypes Subtle biases Subconscious behavior These are difficult barriers to break down, but in Motorola facilities around the world, the company is working to do just that.
Flensburg, Germany Teenage girls toured Motorola’s facilities as part of Girls Day 2003, participating hands-on to learn about career options open to them in the telecom field. Germany Country-wide, more than 30 percent of interns and about 60 percent of all new apprentices in 2003 were women. Mexico Motorola received the Certificate for Model Equity Practices from Mexico’s National Institute of Women (Instituto Nacional de las Mujeres, INMUJERES), a government-sponsored agency that establishes and supervises equal employment conditions. Motorola was recognized for pioneering diversity in the Mexican corporate arena, setting the company apart from other certificate recipients. United States Motorola’s progress has been recognized by the Society of Women Engineers, which recently selected the company to receive the annual Golden Family Award for excellence in providing work/life balance and family-friendly benefits.
Motorola joins The phone in Jason Lum’s pocket rang. The Singapore Ministry of Health was calling to confirm Lum’s suspicion: Motorola was in the midst of the new pandemic. One of his employees was infected with Severe Acute Respiratory Syndrome, SARS. Lum, senior vice president of human resources, Motorola Asia-Pacific region, already had ordered that precautionary measures be put in place at all facilities. As two employees in other offices became ill, he quickly moved contingency plans into action and asked exposed staffers to isolate themselves for 10 days.
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SARS battle
Motorola reaches across Asia >
Donated US$350,000 worth of wireless two-way radios and mobile phones to municipal governments in Beijing, Tianjin, Shanghai and Nanking for communication between government health officials and medical teams.
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Donated more than 12,000 disposable protective suits for medical workers caring for SARS patients at the new Xiaotangshan Hospital in Beijing, the Tianjin and Beijing Municipal Environmental Protection Bureaus and the Tianjin Disease Prevention and Control Center.
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Donated 1,600 pairs of safety glasses to front-line healthcare staff in eight Hong Kong hospitals.
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Donated more than US$23,000 to the Business Community Relief Fund for Victims of SARS, supporting patients and surviving family members.
The human resources team developed emergency evacuation procedures, plans for disinfecting buildings, and entry protocols, and secured materials and supplies. After organizing seminars on the SARS infection, Motorola shared best practices with partners and competitors alike as government agencies and other companies sought to learn about our preventive measures and organization-wide response. All three employees fully recovered from the SARS infection. Though stressful, this was a successful chapter in the company’s history of employee wellness, indicative of the innovative and holistic approach the company has long practiced.
Health and Wellness in Action Motorola’s commitment to health and wellness is captured in our wellness charter: to design and deliver valuable health solutions to enhance the quality of life for employees and their dependents. The company responds to high-quality scientific research and health-trend data to provide services and products that will attract, retain and engage employees.
Ang Mo Kio, Singapore Reduced injuries and illness rate per 100 employees by 49%; launched a nutrition program through the employee cafeteria and offered one-on-one counseling with a doctor for employees with high cholesterol levels. Flensburg, Germany Hosted a public health and safety awareness week to inform associates about new trends in health promotion and illness prevention; hosted a public symposium on occupational health issues.
Hong Kong, China Achieved zero accidents in 2003; organized on-site first aid training for 30 volunteers, joined the Workplace Hygiene Charter and completed workstation risk assessments and statistical analysis.
Jaguariúna, Brazil Organized employee wellness programs, including WeightWatchers and MOTOACTION (gymnastics at work).
Elma, New York, USA Developed improved EHS programs addressing ergonomics, materials handling, emergency evacuation and safety projects with the State University of New York.
Wellness initiatives around the world
OSHA VPP STAR Program
> In 2003, flu immunizations were provided to more
Eight of our sites have earned the U.S. Occupational
than 11,000 employees, dependents and retirees at
Safety and Health Administration’s (OSHA’s) highest
70 on-site locations.
award, the Voluntary Protection Program (VPP) Safety
> Wellness centers at many company sites offer stateof-the-art workout equipment, classes, personal training and outdoor activities. > For U.S. employees, Motorola covers membership
Through Accountability and Recognition (STAR) award. The following sites have received the VPP STAR: Chandler, Arizona; Plantation, Florida; Arlington Heights, Illinois; Schaumburg, Illinois; Austin, Texas (two sites); Seguin, Texas; and Fort Worth, Texas.
fees at company wellness centers or reimburses
This prestigious national award recognizes sites
the fees for outside centers.
demonstrating superior safety and health programs.
> Annual health fairs, tournaments, leagues and “just
Only one-hundredth of one percent of eligible sites
for fun” physical fitness activities occur at company
in the United States have earned this award. In 2003,
sites throughout the year.
Motorola had one of the largest numbers of employees
> Hundreds of classes are held regularly in facilities around the world, on topics ranging from cancer prevention to preparing healthy food. > Web-based training is available on a variety of health topics. 40
Arad, Israel Improved work stations through ergonomics, reducing back- and muscle-related sick days by 99% over three years (2000-2003) and related costs by US$300,000.
working at VPP sites in the United States.
Selected 2003 Awards Tianjin, China Named Excellent Enterprise for Environmental Protection. Flensburg, Germany Selected as finalist for the DuPont Safety Resources European Award 2003 and won a bronze medal for health-promotion programs related to continuous shiftwork. Arlington Heights, Illinois, USA Recognized by the National Safety Council for operating more than one year with no lostworkday injuries. Penang, Malaysia Awarded the Prime Minister’s Hibiscus Award for the third consecutive year, recognizing efforts to reduce water consumption in the production line, eliminate the use of nitrogen in test operations and reduce electricity consumption. United States Received Moving Into the Future: Award for Program Innovation certificate at the Conference Board/Families and Work Institute Conference on Work/Life. Hong Kong, China Featured as one of 10 sterling examples of green pioneers in Hong Kong. Oak Hill, Texas, USA Recognized by the City of Austin as a dual award winner for Excellence in Pretreatment of Industrial Wastewater and Water Conservation.
East Kilbride, Scotland Received British Safety Award from the British Safety Council for achieving accident rates below the manufacturing industry sector average.
Tianjin, China Recognized as “the advanced enterprise on occupation health work” by Tianjin government for seventh consecutive year.
Ilinois, USA Received the Golden Family Award from the Chicago Regional Section of the Society of Women Engineers for excellence in providing work/life balance and family-friendly benefits.
Ang Mo Ko, Singapore Won HEALTH Platinum Award from the Minister of Health for promoting health in the workplace.
Penang, Malaysia Received eighth consecutive Gold Award for excellent safety and health management from the Malaysian Society for Occupational Safety and Health. Arad, Israel Awarded the Transparency Shield for promoting transparency and quality of management. Kuala Lumpur, Malaysia Received the Gold Award for the ninth time from the Malaysia Society of Occupational Safety and Health for low lost-time injury frequency. Illinois, USA Received a Lester Award from the Keep Chicago Beautiful Foundation in recognition of efforts in environmental preservation and beautification. Mexico Received the Certificate for Model Equity Practices from the National Institute of Women in recognition of commitment to diversity and equity practices.
Arad, Israel Received a Golden Badge from the Israel Institute of Standards in recognition of environmental preservation, safety and occupational health, and quality in the automotive industry. Flensburg, Germany Won second place in the Schleswig-Holstein mobility award competition, “Cycling for Success,” for implementing benchmark programs promoting alternative means of transport. Illinois, USA Received Environmental Leadership Award from the Chicago Academy of Science and the Peggy Notebaert Nature Museum for improving Chicago’s environment. Israel Won first prize for excellence in human resources management, recognizing an innovative program to enhance the effectiveness of the human resources organization. United States Received the 2003 WasteWise Challenge Honorable Mention Award from the Environmental Protection Agency.
Visit us at www.motorola.com and www.motorola.com/EHS/environment for the most current information. We welcome your comments and feedback on this report.
Motorola, Inc., Corporate Offices, 1303 East Algonquin Road, Schaumburg IL 60196 U.S.A. +1 847 576 5000
Please send your input to:
MOTOROLA and the Stylized M logo are registered in the U.S. Patent and Trademark Office.
Sheila Voth Motorola, Inc. 1303 East Algonquin Road Schaumburg, IL 60196 U.S.A. +1 847 538 4058
[email protected]
All other product or service names are the property of their respective owners.
Communication design by Plan A
The Bluetooth trademarks are owned by their proprietor and used by Motorola, Inc. under license. PowerPC is a trademark of IBM Corp. and used under license. ©Motorola, Inc. 2004 Motorola is an Equal Employment Opportunity / Affirmative Action Employer. This book is printed on chlorine-free paper that contains 50% recycled content and 20% post-consumer recycled fiber. Printed with 100% soy-based ink.
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