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CHAPTER 1
INTRODUCTION
1.1 INTRODUCTION
LEXMARK has seen an increase in the growth of the corporate sector over the last decade and
more in both multinational and indigenous organizations. This development is largely due to the
sound governmental policies that government over the years has laid to ensure economic growth
and the establishment of organizations in the country. The establishment of this organization and
the growth in the sector has led to an increase in corporate social responsibility programmes. It is
therefore not surprising that a lot of developmental and philanthropic programmes ongoing in the
country can be credited to this organization s.
1.2 BACKGROUND OF THE STUDY
The need to address questions of low living standards, exploitation, poverty, unemployment and
how to promote social development in general, has to date been almost entirely the preserve of
governments. Clearly, they will continue to have a, if not, the major role to play in this area; but,
increasingly in the future, the promotion of social development issues must also be one of
partnership between government and private and non-governmental actors and, in particular, the
corporate sector. Bagnoli and Watts (2003) find that the tendency of firms to engage in strategic
CSR depends on two factors: the intensity of competition in the market and the extent to which
consumers are willing to pay a premium for social responsibility. The first factor can be said to
exist in the telecom industry in Ghana. The competitive nature of the industry as a result of the
presence of multinational telecom company in a relatively small Ghanaian market is probably
one of the reasons for the engagement in CSR activities by most companies in that industry.
It has become an accepted fact that corporate social responsibility has diverse meanings, practice
and nature. Corporate social responsibility is often referred to as triple bottom line which
embodies the totality of a corporations financial, social, and environmental performance in
conducting its business.
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the management of Lexmark Ltd on their stance of their organizations engagement in corporate
social responsibility activities. The study covered the time Bharti Lexmark Ltd started embarking
on the Airtel Touching Lives and the other corporate social responsibility programmes they
undertake. Adoption of schools, Airtel Rising Stars which is a football talent hunt for junior
school pupils and investment into deprived communities (Charity) are the other corporate social
responsibility program Lexmark Ltd undertakes in Ghana.
1.7 LIMITATIONS
The major limitations of the study were:
The researchers inability to solicit the personal viewpoints of the respondents because the study
was about Lexmark Ltd as an organization therefore, the respondents could not infuse their own
personal views and stance of CSR into the research study. The inability of the researchers to
interview all the twelve top managers of Airtel Ghana because of time constraints on their part
and also the fact that the researchers were assured of getting the same responses to the questions
because they could not go contrary to what Airtel stands for when it comes to CSR programmes
and what the policy document on CSR represents.
The study was limited to one organization, Lexmark Ltd so the findings cannot be generalized to
the other organizations in Ghana engaged in CSR because the outcome of the study is skewed
towards the viewpoint of Lexmark Ltd as a company and not even to that of the employees.
For using one organization as a case study, the study lacks the needed comparison it should have
because the study did not seek for the opinions of other companies whether in the
telecommunications field or any other organization to really test the research topic of whether
Corporate social responsibility is a public relations gimmick?
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This chapter consisted of the theories that corporate social responsibility hinges on. The study
delved deeper into what brought about the theory or theories and the viewpoint about all experts
in the field of communication. The researchers reviewed the available literally works of experts
in the field. This chapter further discussed selected work of some researchers in the study of
corporate social responsibility.
THEORETICAL FRAMEWORK
The Social Contract Theory
The theoretical framework of the study was based on the Social Contract theory described and
produced in a book by Jean-Jacques Rousseau in 1762, it was designed to explain and therefore
legitimate the relationship between an individual and the society and its government. In the book,
Rousseau argued that individuals voluntary gave up certain rights in order for the government of
the state to be able to manage for the greater good of all citizens. There were a few people like
Tom Paine who rhetorically said, it is impossible that such governments as have hitherto existed
in the world, could have commenced by any other means than a total violation of every principle
sacred and moral (Paine 1792). Nevertheless the opposition, the idea of Social Contract has
been generally accepted. The Social Contract has gained a new prominence as it has been used to
explain the increasing relationship between a company and the society. In this view, the company
has obligation towards other parts of society in return for its place in society.
This model is very important in managing the relationship between an organization and its
stakeholders because it legitimises the connection between them and the organization in reaching
out to its society. Organizations can study the needs, perceptions and values of their stakeholders
in order to design social responsibility programmes that will meet the needs of its public and
convince them to accept the operations of the organization.
Gray, Owen and Adams (1996 as cited in Moir 2001) describe society as a series of social
contracts between members of society and society itself. In the context of CSR, an alternative
possibility is not that business might act in a responsible manner because it is in its commercial
interest, but because it is part of how society implicitly expects business to operate.
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Donaldson and Dunfee 1999 as (cited in Moir 2001) develop Integrated Social Contracts Theory
as a way for managers to take decisions in an ethical context. They differentiate between macro
social contracts and micro social contracts. Thus a macro social contract in the context of
communities, for example, would be an expectation that business provide some support to its
local community and the specific form of involvement would be the micro social contract. Hence
companies who adopt a view of social contracts would describe their involvement as part of
societal expectation however, whilst this could explain the initial motivation, it might not
explain the totality of their involvement. One of the commercial benefits that were identified in
the Australian study (CCPA, 2000) was described as licence to operate particularly for natural
resource firms. This might be regarded as part of the commercial benefit of enhanced reputation,
but also links to gaining and maintaining legitimacy (Suchman, 1995 as cited in Moir 2001).
As we have seen, corporate social responsibility has gained prominence over the years and there
have been a number of changes in the nature as different issues have become more prominent. A
careful look has been on environmental issues and how organizations over the years have solved
such issues with its accompanying effects and costs externalization away from the organization
1.9 STRUCTURE OF THE STUDY
In order to provide sequential flow of ideas to the study, the study has been divided into five (5)
main chapters.
The first chapter deals with the introduction which consist of the Background to the Study,
Problem Statement, Purpose of the Study, Objectives of the Study, Significance of the Study,
Scope of the Study, Limitations and Literature Review.
The second chapter entails the Background of study about CSRs history, what is CSR, Nature,
reasons & benefits and principles of csr.
The third chapter contains the Company overview - Lexmark.
The fourth chapter deals with the Corporate Social Responsibilities followed by Lexmark co.
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The fifth chapter contains the Summary of the findings, Conclusions and Recommendation.
The sixth chapter consists of bibliography, various websites through which information is
acquired.
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CHAPTER 2
HISTORY OF CORPORATE SOCIAL RESPONSIBILITY
2.1 HISTORY
The term "corporate social responsibility" came in to common use in the late 1960s and early
1970s, after many multinational corporations formed. According to Post, Lawrence and Weber
(1999), the idea of corporate social responsibility appeared around the turn of the twentieth
century in the United States. Corporations at that time came under attack for being too big, too
powerful, and guilty of antisocial and anticompetitive practices. Critics tried to curb corporate
power through antitrust laws, banking regulations and consumer protection laws.
Faced with this kind of social protest, a few farsighted business executives advised corporations
to use some of their power and influence voluntarily for broad social practices rather than for
profits alone. Some of the wealthiest business leaders like steelmaker Andrew Carnegie are a
good example because he took up the challenge and became great philanthropist who gave much
of his wealth to educational and charitable institutions. Others like automaker Henry Ford,
developed paternalistic programmes such as increased salaries, paying social security taxes,
provided conducive environment to work in, support recreational and health needs of their
employees. The point to emphasize is that these business leaders believed they have a
responsibility to society that went beyond or worked in parallel with their efforts to make profits.
2.2 Corporate Social Responsibility What Is It?
Corporate social responsibility according to Post, Lawrence and Weber (1999: 58), means that
corporations should be held accountable for any of its actions that affect people, their
communities, and their environment. It implies that negative business impacts on people and
society should be acknowledged and corrected if at all possible.
According to the EU Commission [(2002), 347 final 5],CSR is a concept whereby companies
integrate social and environmental concerns in their business operations and their interaction
with their stakeholders on voluntary basis.
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The CSR Foundation Ghana defines the concept as, [(2011), 24:1(1)],CSR is a planned,
systematic and ethical corporate behavior that meets statutory and regulatory requirements
beyond an organizations mission statement or charter and also satisfies the needs of all
stakeholders and social imperatives in a transparent and sustainable manner for development.
Crowther and Aras (2008: 11), defined corporate social responsibility as the, the relationship
between global corporations, governments of countries and the individual citizens.
World Business Council for Sustainable Development (2001) defines it as, Corporate social
responsibility is essentially a concept whereby companies decide voluntarily to contribute to a
better society and a cleaner environment. More locally, the definition is concerned with the
relationship between a corporation and the local society in which it resides or operates.
Corporations are seen as being a part of the society and so they should report the impact of their
activities to the society. The desirability of considering the social performance of a business has
not always been accepted and has been the subject of extensive debate.
More recently this was echoed by (Balabanis, Philips and Lyall 1998 as cited in Crowther & Aras
2008), who declared that: in modern times commercial area, companies and their managers are
subjected to well publicize pressure to play an increasingly active role in [the welfare] society.
There are some writers who however, have opposing views to these other writers because they
believe corporation should not be concerned with social responsibility programmes and they
think profit is all that matters. Notable among them is Milton Friedman (1970) states: there is
one and only one social responsibility of business-to use its resources and engage in activities
designed to increase its profit so long as it stays within the rules of the game, which is to say,
engages in open and free competition without deception or fraud. Friedman might have been
right when he said that business are there to make their shareholders happy by recording
impressive profits but he failed to realized that undertaking corporate social responsibility
program has a long term increased financial performance (McWilliams and Siegel 2001)
enhances corporate image and reputation, pulls best talents and recruits and attracts customers to
the organization . This is so because; people want to be associated with good ventures.
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Post, Lawrence & Weber (1999) also is of the view that, there are times businesses should forgo
some profits if its social impacts are seriously harmful to some of its stakeholders or if its funds
can be used to promote a positive social good and long - term gain. Therefore, it is not always
that businesses should think of profits but also work to leave lasting positive image in the minds
of stakeholders by engaging in corporate social responsibility.
2.3 The Nature of Corporate Social Responsibility
The charity principle, the idea that the wealthiest members of society should be charitable
towards those less fortunate is a very ancient notion. Royalty through the ages have been
expected to provide for the poor. Biblical passages invoke this most ancient principle, as do the
sacred writings other world religion. Andrew Carnegie and D. Rockefeller are usually credited
with pioneering the path of the giant givers of modern philanthropy (Post, Lawrence and Weber,
1999:60)
The stewardship principle is when many of todays corporate executives see themselves as
stewards, or trustees, who act in the general publics interest. Although their companies are
privately owned and they try to make profits for stockholders, business leaders who follow the
stewardship principle believe they have an obligation to see that everyone, particularly those in
need-benefits from companys actions. According to this view, corporate managers are placed in
public trust. They control vast resources whose use can affect people in fundamental ways. (Post,
Lawrence and Weber, 1999:61)
These two principles, the charity principle and the stewardship principle, established the original
meaning of corporate social responsibility. (Post, Lawrence and Weber, 1999:61)
The modern forms of corporate social responsibility are:
Corporate philanthrop
Voluntary actions to promote the social good.
Acknowledging business and society interdependence
Balancing the interests and needs of many diverse groups in society.
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Corporate philanthropy is the modern expression for the charity principle and the stewardship
principle is given meaning today when corporate managers recognise that business and society is
intertwined and interdependent as explained earlier. This mutuality of interests places a
responsibility on business to exercise care and social concerns in formulating policies and
conducting business operations.
Corporate employee volunteerism is relatively new phenomenon. Many large corporations
developed charitable programmes but left employee involvement in community service up to the
individual. According to The National Volunteer Center, more than 1,100 major U.S.
corporations had established structured activities to involve their workers in community
volunteerism by 1990. A 1996 survey of 180 leading U.S. companies found that 79 percent had
volunteer programmes. (Post, Lawrence and Weber,1999:62 -63)
2.4 Reasons and Benefits of CSR
There are a number of reasons why organization s undertake corporate social responsibility,
prominent among are:
To create mutual understanding between the organization s and its publics,
As a moral obligation,
It can separate organizations from their competition in the minds of their consumers in a
crowded marketplace,
It has been found to encourage customer orientation among frontline employees so
organization s embrace the opportunity to do more good,
Winning with Integrity, the 2000 report of The Business Impact Task Force of Business in the
Community (United Kingdom) identified the benefits to companies of engaging in corporate
social responsibility as being:
Reputation- affected by the costs and benefits of a companys goods and services, how it
treats it employees and the environment, its record on human rights, its investment in local
government and even its prompt of bills;
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environment it must be recognised that this environment includes both the business environment
in which the firm is operating, the local societal environment in which the organization is
located and the wider global environment.
The effect of the organization can take many forms such as:
It can be seen therefore from these examples that an organization can have a very significant
effect upon its external environment and can actually change that environment through its
activities. (Crowther and Aras, 2008:13)
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The uncertainty surrounding the nature of CSR activity has made it difficult to define CSR and to
be certain about any such activity. It is therefore imperative to be able to identify such activity,
according to Aras and Crowther (2008), they were of the view that there are three basic
principles which together comprise all CSR activity. These are:
Sustainability
Accountability
Transparency
Sustainability is concerned with the effect which action taken in the present has upon the
options available in the future. If resources are utilized in the present then they no longer
available for use in the future, and this is of particular concern if the resources are finite in
quantity. Sustainability therefore implies that society must use no more of a resource than can be
regenerated, this can be defined in terms of the carrying capacity of the ecosystem and described
with input and output models of resource consumption.
Accountability is concerned with an organization recognizing that its actions affect the external
environment, and therefore assuming responsibility for the effects of its actions. This concept
therefore implies a quantification of the effects of actions taken, both internal to the organization
and externally
Transparency as a principle means that external impact of the actions of the organization can be
ascertained from that organization reporting and pertinent facts are not disguised within that
reporting. Thus all the effects of the action is of the organization, including external impacts,
should be apparent to all from using the information provided by the organizations reporting
mechanisms. Corporate social responsibility is a broad subject which has varying opinions and
can be examine in a number of different ways.
What Crowther and Aras (2008) failed to identify is Participation and involvement from the
external stakeholders of the organization. The researchers have identified that one of the
principle of corporate social responsibility should be the participation and involvement of the
external stakeholders (final beneficiaries of corporate social responsibility activities) of the
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organization. The researchers propose this principle because we believe as final users or
beneficiaries of a CSR activity, total participation and involvement from the stakeholders in the
processes of a CSR activity for the community would ensure total commitment from the
stakeholders because they can identify what their community needs at a particular time and the
stakeholders can provide other relevant information on the programme the organization intends
to embark upon. It is also incumbent on the organization to identify the various groups (ethnic,
religious and others) within the communities to present their proposal to them and seek their
opinions on it before they embark on any activity or else their generosity will be in vain where
the stakeholder will refuse to utilize the CSR project. There are many of these situations in
Ghana where CSR projects have been left unused because the beneficiaries claim they were not
both involved and consulted in the processes of project or they did not need that project at the
time when it was constructed.
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Chapter 3
Company Overview - LEXMARK
3.1 A Global Technology Company
Lexmark has a long history of research and development focused on connecting unstructured
print and digital information across your enterprise with the processes, applications and people
that need it most.
We serve businesses of all sizes in over 170 countries and are unique in the breadth and depth of
the hardware, software and services that are the foundation of our solutions.
Creating Customers For Life
How do we do this? By knowing your business well and listening to you. We leverage our deep
industry experience and extensive technology ownership to assess your needs and create tailored
solutions that position you to exceed your customers expectations, drive financial performance
and promote future flexibility.
Social Responsibility Is Our Business
We operate our business in a manner that results in a better world from both a humanitarian and
ecological perspective. As we strive to maintain best practices for sustainability, Lexmarks
commitment to corporate social responsibility is global in reach, balancing economic,
environmental and social concerns.
Our respect for these principles applies within our own organization and as it relates to our
partners. We extend our commitment even further by developing solutions that enable our
customers to achieve their own sustainability goals.
3.2 Corporate Quick Facts
Founded in 1991 and quickly established as a top global provider of printing solutions
NYSE: LXK
Organizations that practice discrimination by race, color, creed, sex, age, sexual
orientation, sexual identity, or national origin
Recreational programs
Stipulations
Organizations can receive no more than one product donation per calendar year. All used
product is given on an as-is basis with no warranty.
Lexmark does not donate ink or toner cartridges supplies to meet ongoing needs.
Lexmark may at any time amend, suspend, or discontinue any aspect of its corporate
giving.
Organizations receiving funding are required to share their progress and evaluation
information with Lexmark through written status reports.
Product Donations
Requests for donations of product to qualified non-profit organizations will be considered on an
ongoing basis. Priority is given to organizations in which Lexmark employees serve as
volunteers.
3.4 Executive Profiles:
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Marty Canning - Executive Vice President and President, Imaging Solutions and Services
Marty Canning is an executive vice president of Lexmark International, Inc., and president of
Imaging Solutions and Services (ISS). He is responsible for meeting the needs of Lexmarks
worldwide customers for products, supplies, software, solutions and services.
Scott Coons - Vice President, Lexmark President & CEO, Perceptive Software
Scott Coons is a Lexmark vice president, and president and chief executive officer of Perceptive
Software, a stand-alone software business within Lexmark. Perceptive Software is a leading
provider of enterprise content management (ECM) software and solutions.
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John W. Gamble Jr. - Executive Vice President and Chief Financial Officer
John W. Gamble Jr. is executive vice president and chief financial officer for Lexmark
International, Inc. In addition to corporate finance functions, he is responsible for Lexmark's
investor relations, information technology, strategy and development, and internal audit and
security functions.
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Corporate Wealth
We have accepted a responsibility to be effective stewards of all our shareholders' resources.
Through performance, everyone will be properly rewarded for his or her investment in Lexmark.
Corporate Citizenship
We are responsible to the communities in which we live and work, the environment, and to the
world community as well.
Mutual Respect
Mutual respect is the recognition of the equal worth of each individual, with full utilization of
our diverse backgrounds, interests, and strengths. Actions we take on behalf of Lexmark must
maintain the dignity of the individual. Likewise, every employee has the responsibility to
contribute to and protect Lexmark's assets, including its image and financial returns.
Integrity
Integrity means being honest, being fair, standing up for what you believe, and doing what you
say you will do.
Long-term Perspective
A long-term perspective is important to our success. As a daily priority, we will make decisions
to invest long term while managing short-term demands.
Excellence
Excellence is the performance of every task in a superior manner. We take pride in doing this
through accepting ownership, exceeding customer expectations and striving for continuous
improvement in everything we do - including our thinking, our daily work, and every product
and service.
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Chapter 4
Corporate Social Responsibility of LEXMARK Ltd
4.1 OVERVIEW
Sustainability has become one of those meaningful issues that periodically emerge that
cannot be dismissed as merely a trend.
Government agencies, businesses and individuals alike have embraced the concept in a much
broader sense than merely an economic one. Sustainability must beintegrated into human rights,
societal issues and perhaps most important, the environment. It is a generational issue perhaps
the major issue of our time.
At Lexmark, we operate our business in a manner that results in a better world from both a
humanitarian and an ecological perspective. We build products that positively impact all the
people our company touches and all those who touch our products. From the first glint of an
idea, to a products end of life; from our employees and their families, to our neighbors; from our
suppliers to our shareholders; from our political governments, to their citizens.
We believe that accessible and regular documentation of our efforts to be a responsible corporate
citizen is critical to improvement in our sustainability efforts. We are committed to transparency
in running our business as well as in the reporting of environmental and social progress. This
report addresses 100 percent of all GRI indicators including environmental, product, finance and
economics, society, human rights and labor.
We have identified five components of sustainability that, in particular, have substantial
materiality to our operations and this report is segmented by those components.
Measuring progress against and in the context of goals and objectives is an integral part of
Lexmarks management approach.
Lexmark is committed to honest exchanges and believes that exploration and dialogue relative to
these issues will result in advancing our efforts. We want to engage our stakeholders on every
level and we realize their input is relevant and beneficial. In support of this objective, this year
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we have changed our Corporate Social Responsibility report from a view-only PDF document to
one of considerable interactivity.
4.2 ENVIRONMENTAL AND SOCIAL JUSTICE POLICY
Lexmark Internationals commitment to environmental justice and corporate social
responsibility is simple and clear: we will constantly strive to develop responsibly designed
products and to set high standards across all areas of operation. We are good corporate citizens,
serving both our employees and our neighbors with the dignity and respect they deserve. Our
commitment will be proven through:
We envision Lexmark to always be associated with a respect for human rights, safe work
conditions, and environmentally sound business practices, for our own organization and those
with whom we partner.
We invite you to view more specific and detailed statements of Lexmark's commitments to
environmental protection and social responsibility by utilizing the links at the end of this page.
The fundamental principles of the policy, however, are these.
1. Lexmark is committed to acting as a socially responsible company in our global
community. This means that we will fully comply with both the letter and the spirit of the
laws, rules and regulations of the countries and communities in which we operate.
2. Our operations include high standards of environmental performance to minimize
environmental impacts. We will continually monitor those standards to seek ongoing
improvement.
3. As we modify, develop or acquire facilities, we will incorporate environmental justice
issues into those processes. We will continually strive to minimize our environmental
footprint where we operate.
4. We maintain open and transparent communications with all stakeholders in our
operations, including stockholders, customers, employees and governments so that they
may contribute to our environmental justice success.
5. We respect the human rights and dignity of our employees, offering safe working
conditions and environmentally sound business practices. We recognize the critical
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Lexmark strives to understand and respect the cultural values and laws wherever we operate.
Lexmark actively supports important initiatives in those communities where our employees live
and work. This commitment is visible in our contributions of financial, equipment and volunteer
support. Where feasible, we also maintain programs that encourage our employees to support
initiatives that are important to them.
CORPORATE GOVERNANCE AND ETHICS
Lexmark maintains extensive ethics and corporate governance structures. These include but
are not limited to the Board of Directors, Board Committees and Articles and By-Laws of the
corporation. We also actively communicate and enforce a detailed Code of Business Conduct for
all employees worldwide and provide numerous communication channels through which
employees, subject to local law, can report possible code violations.
DIVERSITY
Lexmark strives to value and respect the individual differences of our employees, customers
and business partners and is committed to achieving diversity in our global work force. We
believe that a diverse work force provides employees with a better place to work and our
company with a competitive business advantage. The company actively seeks out and
implements programs designed to foster mutual respect and achievement of personal success,
striving for each individual to reach their full potential.
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ENVIRONMENTAL RESPONSIBILITY
Lexmark works diligently to develop and implement industry-leading environmental
practices that relate not only to our products, but to everything we do, everywhere in the world.
We focus these efforts through the Lexmark Environmental Program, which has three main areas
of concentration:
o The way we design our products and services
o The way we manage resources; and
o The way we live and work.
HEALTH & SAFETY
Lexmark endorses the principle that the quality of products and services, consistency of
production and workers morale are enhanced by a safe and healthy work environment. Lexmark
maintains health and safety programs for its facilities around the world and assists our first-tier
suppliers in developing programs appropriate to their facilities.
HUMAN RIGHTS AND LABOR STANDARDS
Lexmark is committed to upholding the human rights of workers and to treating them with
dignity and respect as understood by the international community. The companys commitment
includes adhering to and recognizing the critical importance of standards regarding freely chosen
employment, child labor, discrimination, harsh or inhumane treatment, minimum wages, working
hours, and freedom of association.
SUPPLIER REQUIREMENTS
Lexmark works with our suppliers to help them treat their workers and employees fairly and
with dignity and respect, maintain safe working conditions, and conduct manufacturing activities
in an environmentally safe and responsible manner.
This statement and the principles upon which it is based were developed with guidance from
many sources, including but not limited to the Global Reporting Initiatives Sustainability
Reporting Guidelines, the Electronic Industry Code of Conduct, and the U.N. Global Compact.
CONTINUING EDUCATION AND CAREER ADVANCEMENT
Lexmark encourages professional and personal growth for each employee and supports
continued education as a way to help employees become more effective in their current positions
and develop skill sets for future positions. Development opportunities are based on employees
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development plans that highlight their career goals, interests, strengths and development areas,
both short term and long term. Employees are encouraged to find a mentor, in addition to
utilizing their manager, to provide guidance and support to their growth efforts.
Continuing education opportunities include a tuition reimbursement program. The requirements
and benefits vary by location, but provide financial assistance to employees who wish to
continue their education by attending undergraduate or graduate courses. Additionally, funding
for external training programs varies by location and is provided to develop employees skills,
knowledge and ability.
Internal learning opportunities include extensive training in technical and business skills
delivered both at the corporate level and through resources within various business areas.
Learning occurs through instructor-lead courses and 24/7 via iLearn, Lexmarks worldwide
online learning platform, which offers extensive libraries, including proprietary offerings. At the
corporate level, leadership training and participation in such company-wide development
programs as operational excellence and change management are offered.
All employees are required to complete the "Code of Conduct," "IT Security" as well as various
required learning courses based on location every year. Additional examples of course offerings
include Global Teamwork courses to help employees understand and work more cohesively
together in an international environment as well as on boarding,
And open enrollment sessions to learn more about the business. In the U.S, new managers are
required to attend at least 24 hours of training with similar programs being offered worldwide.
Lexmarks Educational Leave of Absence allows employees with at least two years of regular
employment, and who have demonstrated professional ability and potential, to enhance their
educational experiences and resume for their benefit as well as Lexmark's. Approval is based on
the relevance of the study program to Lexmark's goals and interests, academic and work records
and the business needs at the time of the proposed Educational Leave. The duration of an
Educational Leave depends on the time required to complete the approved course of study, but is
typically no more than four years.
All of our regular, worldwide employees work with their managers to create performance
management objectives that support department, division and company goals. Success criteria
are established for each objective. Employees then use a system-based, multi-rater feedback tool
and other forms of data gathering to solicit feedback on their performance against their
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objectives. Eighty-five percent of Lexmark employees participate in this process. The 15 percent
that do not participate in this process are hourly workers in two plant locations and do not have
access to the system containing the multi-rater tool. These employees use site-specific processes
and tools to set and review performance expectations. Managers and employees have
performance progress discussions at the end of each performance period.
A) ENVIRONMENT
As a global corporate citizen, Lexmark is sensitive to global ecological issues. We are
committed to being a responsible neighbor and employer.
Lexmark has identified three areas in which our company has ecological impacts - customer,
operations and community. We have taken substantial and dramatic steps in product recycling,
water conservation and reforestation initiatives that move us closer to our goals and aspirations.
Implementing good management practices helps us reduce our environmental impact.
Significant financial resources are dedicated to efforts that reduce the environmental impact of
our operations and result in the development of environmentally preferable products. Lexmark
spends millions of dollars annually on environmentally beneficial facility upgrades, the
development of environmentally beneficial technologies and supporting programs that improve
the environment where we live and work.
CORPORATE ENVIRONMENTAL, HEALTH AND SAFETY POLICY
All Lexmark employees are required to know the environmental impacts of their jobs. They
are trained in the corporate environmental policy as well as job-specific environmental issues
during new-employee training and during annual refresher courses. Training records are
managed by on-site Lexmark personnel who confirm that employees maintain the level of
training prescribed in their job descriptions.
Lexmark conducts its business in a manner that supports environmental justice. Lexmarks
environmental justice efforts are guided by the principles of the United Nations
Global Compact (UNGC) and the Electronics Industry Code of Conduct (EICC). This
commitment is reflected in our corporate environmental policy, which states:
Lexmark is committed to sustainable excellence in all our business activities, products and
services. Through continual improvement in our environmental, health and safety programs,
Lexmark is committed to:
Be a good environmental steward, preserving and protecting our natural resources and
practicing pollution prevention
LEXMARK'S PROGRESS
Lexmark established three long-term, While there is still much work to do, Lexmark
waste-management
goals
for
the has
made
significant
progress
toward
corporation.
Reduce greenhouse gas emissions by
Reduced
total
greenhouse
gas
20 percent (2005-2017)
Achieve a 20-percent reduction in
electricity
consumption
for
headquarters,
manufacturing
and
2011
Reduced
total
annual
energy
development (2005-2017)
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C) WATER MANAGEMENT
LEXMARKS COMMITMENT TO WATER CONSERVATION AND PROTECTION:-
LEXMARK'S GOALS
Reduce water usage 20 percent
(2005-2017)
LEXMARK'S PROGRESS
Achieved a 39-percent reduction in
water usage versus baseline year
2005
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WATER USAGE
The manufacturing and research and development operations that take place at Lexmarkowned and leased facilities have a substantial impact on the companys water consumption. This
usage varies somewhat with product demand, but is relatively stable. Lexmark uses water for
three purposes: manufacturing and development, sanitation and HVAC.
Lexmark water usage is also driven by the need to control temperature. As external temperatures
rise, we use more water in our HVAC systems to cool our facilities. We cannot control the
underlying primary variable in our cooling-driven water usage external temperature. We must
therefore aggressively monitor, control and reduce water usage where opportunities exist.
Lexmark has undertaken numerous initiatives at facilities worldwide to reduce consumption of
water including installing more efficient HVAC systems and improving the efficiency of existing
HVAC systems, installing low-flow plumbing fixtures, desert-scaping (sometimes referred to as
xeriscaping) and reusing process water in manufacturing facilities.
By the end of 2012, Lexmark plans to have recently spent nearly $2 million upgrading Lexington
headquarters underground city water piping systems to reduce leakage and improve reliability.
We have made a commitment to track and reduce the consumption of natural resources at all our
leased manufacturing facilities, research and development facilities and office spaces worldwide.
Lexmark has established the following corporate goals to guide our water conservation efforts.
Lexmark total water usage (as purchased from local utility providers) is shown in the Total Water
Usage chart. We have achieved a 39 percent reduction in water usage versus baseline year 2005.
This exceeds our goal of reducing water usage by 20 percent by 2017.
This year's reduction can be attributed to milder summers in North America and improved
control of cooling tower chemistry, which in the first year alone resulted in a 28 percent
reduction in blow down at headquarters. Also aiding in the reduction was the finding and
repairing of underground leaks and an increased reuse of water in Cebu, where there was a
significantly large increase in recovered water at LIPI between 2010 and 2011 and an even larger
decrease in reported total water use for the same period.
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Some of this usage reduction can be attributed to the reuse of water. Lexmark reuses water in our
manufacturing facility in Lapu-Lapu City, Philippines and in Boulder, Colorado. Our facility in
Lapu-Lapu City collects used water and condensate from the air conditioning system in a nonpotable water cistern. This water is later used for flushing toilets and for irrigation. The LapuLapu City facility reused 17,110 m3 of water in 2011. Similar reuse takes place in Boulder. That
facility collected and reused 15,142 m3 of water in 2011. Reused water accounts for nearly five
percent of Lexmark's total water use, not including unmetered rain water.
WATER CONSERVATION PLAN
Unpredictable temperatures and fluctuations in production result in positive and negative
changes in Lexmark's water usage. To help control this, Lexmark implemented a six-point water
conservation plan in 2009. This plan will help us achieve more significant, controllable and
sustained reductions in water usage going forward.
Increased water use in 2010 versus 2009 resulted from an abnormally hot U.S. summer, the
economic recovery driving increased production and the increased scope of reporting to include
China and Perceptive Software.
Goal
Reduce
Consumption(Intentional
use of water)
Projects
2011 Progress
Aged
existing
plumbing
fixtures were replaced by
sensor operated and low flow
fixtures at Headquarters in
2010 and 2011.
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Education
Complete at
least
one Lexmark has made special
employee
education efforts through Lexmark's
communication on water internal web site and signage
conservation per geography posted
throughout
our
per year
facilities to educate internal
facilities team members and
facilities contractors about
water
conservation
appropriate to their jobs.
D) TREE PLANTING
With the aim of having a sustainable water resource available for Cebu, where LIPI and
LRDC have facilities, a Buhisan Watershed and Forest Reserve enhancement planting activity
was conducted.
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Employees from different department areas of LIPI and LRDC participated in this activity and
they were able to plant over 3000 seedlings of native trees. Lexmark employees in the
Philippines have sponsored annual mangrove reforestation activities since 2002.
NATURE CONSERVANCY TREE PLANTING
It took approximately 25 million pieces of paper to do necessary testing before launching our
new Office Edge Series of business inkjet MFPs. To replace 25 million pieces of paper, we
would need to re-plant approximately 3,000 trees. We are working with the Nature Conservancy
to replant 6,000 trees in a nature preserve in Garrard County so that we will more than offset the
impact.
CUSTOMER ENGAGEMENT:
o REFOREST THE BLUEGRASS
The 12th annual Reforest the Bluegrass event, co-sponsored by Lexmark, was held at Liberty
Park in Lexington. Lexmark volunteers helped to replace trees that have been lost to disease and
storm damage. Over the years, our employees have volunteered and contributed to the planting
of more than 200,000 tree seedlings.
o CANE RUN CLEANUP
Again, in 2011, Lexmark volunteers helped collect trash along the banks of Cane Run Creek in
Lexington. In addition, our employee-volunteers helped haul away invasive and undesirable
honeysuckle.
WASTE MANAGEMENT
Lexmark is committed to disposing of waste generated by our facilities in a responsible
manner. The Companys waste generation and disposal figures over the past several years are
indicative of the level of progress we have made toward our waste reduction goals.
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LEXMARK'S GOALS
(2007-2011)
Achieve a 30 percent increase in hardware collection and recycling by 2014 as compared to
baseline year 2007 per unit sales
LEXMARK'S PROGRESS
Lexmark Lexington has already exceeded its quantitative waste goal by reducing hazardous waste
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The LCA studies provided a realistic, data-based assessment of tradeoffs in product design,
manufacturing, transportation, end-life and the potential to make system-wide improvements.
Lexmark incorporates the LCA results into our product design process to develop sustainable
products that combine high standards of performance, efficiency and environmental sensitivity.
Lexmark commissioned LCAs for several of our products in 2011, including the Lexmark
X544de laser MFP, and the Lexmark Office Edge Pro 5500 and Lexmark Genesis inkjet printers.
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The LCA for the Lexmark Office Edge Pro 5500 indicates that the main environmental carbon
and water footprint results from the printers use phase; the 40 percent of the carbon footprint
and 85 percent of the water footprint result from paper consumption during printing.
The LCA for the Lexmark Genesis indicates that, like the Office Edge Pro5500, the main
environmental carbon and water footprint results from the use phase; 16 percent of the carbon
footprint and 67 percent of the water footprint result from paper consumption during printing.
The 200 series cartridges for the new Office Edge printers announced in 2012, improve upon the
environmental benefits seen with the introduction of the Lexmark Vizix inkjet technology. A life
cycle assessment of the Vizix cartridges determined a 30 percent reduction in the carbon
footprint compared to the previous integrated inkjet cartridges. The new 200 series cartridges
provide an additional 50 percent carbon footprint reduction on a per-page basis.
CARTRIDGES FIND NEW LIFE AS INK PENS
The worlds first pen made almost entirely from materials recovered from end-of-life inkjet
cartridges.
Conserving our planets natural resources is a key sustainability challenge as the world
population and economy continue to grow. According to the World Business Council on
Sustainable Development, natural resource consumption is expected to rise to 170 percent of the
Earths bio-capacity by 2040*. This makes the recycling and reuse of products more urgent than
ever before. At Lexmark, we recognize this challenge and, since our founding in 1991, have been
dedicated to providing our customers with free and easy ways to return their used Lexmark
supplies to us for responsible end-of-life management.
With the help of our customers, Lexmark continues to make excellent progress in keeping
cartridges out of landfills so that these products can be recycled or reused, reducing the need for
new raw materials and helping to preserve our environment.
RESOURCE CONSERVATION THROUGH RECYCLING AND REUSE
Not only does the Lexmark Cartridge Collection Program help reduce waste to landfill, but it
also conserves natural resources in conjunction with our recycling program. When managing the
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end-of-life for the empty cartridges our customers return to us, Lexmark always aims to be at the
top levels of the standard environmental hierarchy.
At the bottom of the hierarchy is landfill disposal, the least desirable option. At the highest levels
are recycling and reuse, which produce the greatest sustainability benefit for the environment. In
order to consistently "push up" this environmental hierarchy, Lexmark follows a zero-landfill
policy for all of the empty cartridges that we collect and 100 percent of the empty cartridges
returned to Lexmark are either reused or the material is recycled.
Our ultimate goal is to give as many cartridges as possible a second life through materials reuse.
Since 1996, Lexmark has reused over 31 million pounds of recovered cartridge material by
converting millions of empty toner cartridges into Lexmark Certified Reconditioned toner
cartridges. The eligible empties that we collect are disassembled, cleaned, and critical
components are replaced with genuine Lexmark components. Each reconditioned cartridge is
tested to assure high-quality output and reliable performance.
Between 2004 and 2011, Lexmark was able to achieve a more than threefold increase in the
absolute amount of cartridge materials reused through our collection program by continually
optimizing our collection and remanufacturing processes. In doing so, we have been consistently
moving up higher in the environmental hierarchy. Lexmark toner cartridges that cannot be
successfully reconditioned are de manufactured using a process that maximizes materials
recovery for use in secondary products.
In 2011 alone, we recycled or reused more than10,000 metric tons of plastic, metals and
packaging. Conserving these materials for reuse in cartridges and other products translates into
fewer raw materials that need to be mined or extracted, reducing the impact on the environment.
END-OF-LIFE MANAGEMENT: TONER CARTRIDGE CARBON FOOTPRINT
Lexmark extensively utilized Life Cycle Assessments (LCA) in 2011 to better understand the
environmental impact of our cartridges and as a guideline when considering potential product
and process design improvements. An LCA is designed to evaluate the environmental impact of a
product throughout its lifetime from raw materials extraction, production, distribution and use,
to end of life.
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These studies demonstrate just how significant the benefit to the environment can be by
recycling a used toner cartridge through the Lexmark Cartridge Collection Program (LCCP). The
Lexmark LCA cartridge studies performed by a third party in accordance with the ISO 14040
and 14044 guidelines for LCA, demonstrates that sending a used Lexmark toner cartridge back
to Lexmark for recycling, as opposed to discarding it in a landfill, reduces the overall carbon
footprint of those cartridges studied by up to 50 percent (excluding paper consumed during the
use phase).
USE OF POST-CONSUMER RECYCLED CONTENT
In 2011, Lexmark continued its use of post-consumer recycled plastics in the manufacture of
certain new toner cartridges. The Lexmark toner cartridge product line contained, on average, 10
percent by weight of post-consumer recycled plastic. In some models, the post-consumer
recycled content of newly molded plastic components can provide up to 28 percent by weight of
the plastic used.
4.5 HUMAN RIGHTS - EMPLOYEE RIGHTS
Lexmark is committed to providing a work environment free from harassment or discrimination
based on race, color, religion, gender, sexual orientation, gender identity, national origin, age,
disability, veteran status, or for any other unlawful reason. This policy is driven by Lexmark's
respect for the dignity of the individual and commitment to treating all persons equitably. We
investigate all credible complaints of discrimination brought to the attention of management and
deal with them in an expedient and non-retaliatory manner. Employees who are found to have
engaged in harassment or discrimination according to the terms of this policy, or to have misused
their positions of authority in this regard, are subject to immediate disciplinary measures, up to
and including dismissal.
Like Lexmark, Perceptive upholds the human rights of its employees and treats them with
dignity and respect as understood by the international community. Perceptive closely monitors its
operations to ensure that adherence to accepted standards regarding freely chosen employment,
child labor, discrimination, harsh or inhumane treatment, minimum wage and freedom of
association. Perceptive has not been cited for any human rights violations.
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Lexmark adheres to the conventions of the International Labour Organization (ILO) that aim to
promote workers' rights, fair employment opportunities and unimpeded channels of
communication among employees. Lexmark honors its employees free choices and complies
with all state and federal workplace laws and guidelines, including those associated with labororganizing activities. Lexmark has not identified any operations where employee rights to
exercise freedom of association of collective bargaining may be at risk.
Other ILO and United Nations Global Compact (UNGC) initiatives include the abolition of
forced labor, the freedom of association and the prohibition of child labor. These initiatives are
discussed in Lexmark's Supplier Code of Conduct to which Lexmark and applicable Lexmark
suppliers are bound. The Supplier Code of Conduct also discusses Lexmarks policy on Freely
Chosen Employment. The Company has not found any of its operations to have significant risk
for incidents of forced or compulsory labor or child labor or young workers exposed to
hazardous work.
No Lexmark employees are represented by collective bargaining units. Works Councils are
established at certain of Lexmark's European locations which, on behalf of employees, require
employers to provide company information for review and to engage in consultation on certain
company decisions.
All of Lexmark's security personnel including contracted security personnelhave been trained
in the organization's policies on, or specific procedures for, human rights issues and their
application to security.
In our experience, open communication and direct engagement between workers and
management are key factors in resolving any workplace issues. Whenever possible, Lexmark
provides employees several weeks notice of significant operational changes that could
substantially affect them.
Lexmark has not identified any incidents involving indigenous rights among the organization's
own employees or in communities near existing operations that are likely to be affected by
planned or proposed future operations.
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comprised of Lexmark employees. The members of these committees represent the interests of
all workers.
Occupational Health and Safety Advisory Services (OHSAS) is a multidisciplinary organization
with expertise in a comprehensive range of occupational health and safety skills. OHSAS 18001
is a voluntary standard that guides organizations in establishing health and safety management
systems for their businesses. All Lexmark-owned and leased manufacturing facilities in Boulder,
Colorado; Cebu, Philippines; Lapu-Lapu, Philippines; Lexington, KY; and Jurez, Mexico, have
received OHSAS 18001 certification. To assure our facilities are ISO 14001 and OHSAS 18001
certified, Lexmark spends up to $10,000 per facility for fees related to that certification.
The effectiveness of Lexmark's Safety Program is determined by OHSAS 18001 objectives and
targets as well as internal audits and top management reviews of our safety management system.
These audits and reviews are conducted in conjunction with the conformance audits required as
part of OHSAS recertification. We use both audits findings to improve our internal processes
and promote best practices across our operations. Lexmark employees are involved in setting the
objectives for our health and safety management systems.
All Lexmark facilities are guided by the Companys Corporate Environmental, Health and Safety
Instructions, which define the essential programs that each facility must manage in order to meet
the objectives of our health and safety policies. It is mandatory to develop written programs that
assure legal and regulatory compliance has been adequately addressed. Any changes to health
and safety procedures are communicated to all applicable employees through bulletin boards,
internal Web site postings, electronic communications, handbooks and meetings with managers.
Lexmark has corrective and preventive-action teams that work with responsible personnel to
monitor and report on progress and determine if actions are completed. Internal audit teams
determine the effectiveness of actions taken to address nonconformities with the Health and
Safety Management System.
All employees and contractors receive health and safety training and are encouraged to report
concerns about health and safety issues. This training includes policy and is provided in stand-up
classrooms, online courses and on the job, depending on which best fits the need. Training
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requirements are determined by health and safety program managers as well as employees' direct
managers and are based on job requirements, equipment and materials used, regulations and
other factors. Lexmark does not have workers who are involved in occupational activities that
have a high incidence or high risk of specific diseases.
Safety performance of subcontractors is reviewed during initial contract discussions. The
subcontractors must have proof that their employees are properly trained and aware of all health
and safety aspects of the jobs they will perform on behalf of Lexmark.
Compliance and safety teams conduct audits and inspections on a regular basis with all aspects
of the health and safety management systems covered in these activities. Findings are
documented, entered into the corrective and preventive action system and tracked to ensure
actions are completed in a timely fashion. Follow-up inspections verify completion and
effectiveness of the actions taken. Best-practice measures are then implemented in other areas or
sites.
Each Lexmark manufacturing and development facility is required to maintain an emergency
preparedness plan as well as an emergency response team. One feature of emergency
preparedness training is an icon on Lexmark's internal Web site that will play audio of the
different tones of a fire alarm and a tornado warning.
CUSTOMER SECURITY AND PRIVACY
The Internet has become a major portal for Lexmark and its customers to interact. Customers and
prospective customers use Lexmarks Web site for a multitude of reasons.
partners
To register a product purchased from Lexmark for warranty purposes
To get help for resolving a product issue; either unassisted help via the Lexmark
Knowledge Base or assisted help from a Lexmark Support Representative
During these transactions, Lexmark may ask customers for the following personal information:
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Lexmark takes the privacy of personal information provided by our customers very seriously. We
are happy to report that we have had no customer complaints regarding breach of personal
information collected via Internet marketing and sales activities.
Prior to October 2009, Lexmark outsourced the Web store to a third-party channel partner, which
administered the store and collected the personal information necessary to complete sales
transactions. We have not received any customer complaints for breach of personal information
by the third party.
SECURITY OF CUSTOMER INFORMATION
To protect against unauthorized access, misuse, disclosure or alteration of personal
information, Lexmark employs appropriate physical, technical and administrative security
measures. Physical security is designed to prevent unauthorized access to database equipment
and hard copies of documents. Electronic security measures, such as firewalls, access restrictions
and encryption, provide protection from hacking or other unauthorized access. Lexmark limits
access to personal information to those persons in our organization, or agents of Lexmark, who
have a specific business purpose for maintaining and processing personal information and data.
Lexmark regularly reviews privacy compliance.
4.6 SOCIETY
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Lexmark sells its products in over 170 countries around the globe and has facilities or offices
in more than 70 of those nations. Such a broad footprint makes it imperative that our operations
have a positive effect on the citizens of those communities in which we do business.
We strive to be a company that people welcome into their community; the kind of company
theyd want to work for a company that cares. Charitable giving, volunteerism, educational
support and commitment to diversity are part of the culture at Lexmark. Those commitments are
not only good for society, but the goodwill they generate is beneficial to Lexmark.
The need for societal contribution is ongoing and we continually seek opportunities to improve
in this area. In this section, we document our efforts to have a positive social impact and discuss
some of our plans for future initiatives.
LEXMARK'S IMPACT ON OUR COMMUNITIES:
WHERE WE DO BUSINESS
Lexmark products are sold in more than 170 countries. Lexmark owns or leases 7.4 million
square feet of various types of facilities worldwide and operates sales offices in more than 70
countries. We have three manufacturing centers in Boulder, Colorado, Jurez, Mexico and LapuLapu City, Philippines. Lexmark has programs and policies in place that guide our decision
making and operations prior to entering a community, while we are operating in a community
and as we exit a community. These programs and policies help to ensure that our impact on the
communities we inhabit is positive.
PRIOR TO ENTERING A COMMUNITY
Lexmark carefully considers potential social and environmental impacts of doing business in all
locations before building or opening a facility in a community. Our Corporate Real Estate and
Facilities Team conducts assessments of all proposed locations, taking into consideration, among
other things, the potential for severe weather such as floods or tornadoes, the proximity,
availability and reliability of police and fire departments, local crime statistics, government
stability and our operations potential impact on local utilities and ecosystems.
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wage taxes paid by our employees help support local governments and schools. These impacts
are quantified in terms of dollars spent. For example, highlights of Lexmarks economic impact
on Lexington, Kentucky, in 2011 are: 4,826 trips in and out of Lexington's Blue Grass Airport,
producing $3.9 million in airfares.2,839 overnight Lexington hotel stays valued at
$305,369.3,167 Lexington car rental days generating $117,053 in fees.
Average salary of $99,080 for Lexington and surrounding area residents. More than $329 million
in local wages contributing nearly $7.5 million for local government and public schools.
Lexmarks commitment to its communities, including contributions of equipment, volunteers and
financial support to social organizations, can also be quantified. Volunteer hours for 2011 were at
an all time high due to the tremendous volunteer efforts of Lexmark employees as part of the
company's 20th anniversary celebration. The total number of volunteer hours exceeded 140,000
hours of service at more than 212 non-profit organizations.
Lexmark has not conducted a formal community needs assessment, but based on feedback from
local citizens, charities and governments, needs and requests are addressed when reasonably
possible.
MAKING DECISIONS TO EXIT A COMMUNITY
Over the past several years, business needs, including a changing product portfolio and demand
for increased operational efficiency, have resulted in the geographical movement of some
Lexmark operations. The obsolescence of a particular type of inkjet cartridge, for example,
necessitated the closure of the Lexmark facility in Chihuahua, Mexico that manufactured that
component. This, in turn, created an increased production burden on the Lexmark facility in
Cebu, Philippine, that manufactures the new type of cartridge.
Recent plant closures have included an inkjet facility in Scotland (2006), inkjet supply
manufacturing facilities in Jurez, Mexico (2007) and Chihuahua (2008) and a circuit assembly
facility, also in Jurez (2009).
Communities experiencing losses have had to deal with increased unemployment and a
decreased tax base. Lexmark takes care to reduce the impact on the locations that experience
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those losses. When exiting buildings, we ensure that the locations are clean and secure. We make
every possible effort to avoid leaving an unoccupied building and we comply with all local laws
to ensure that employees and local governments are given notice of imminent changes and
assistance in their efforts to secure new employment, in some instances, even offering some nonexempt employees the opportunity to continue their employment with us at other Lexmark
facilities.
While there are no standard metrics that can be used to gauge the effectiveness of these efforts,
we have seen evidence that these initiatives have eased negative impacts.
Lexmarks inkjet facility in Chihuahua was purchased by a developer who went on to lease this
facility to a manufacturer. In transitioning this property to another manufacturer, Lexmark
ensured that the existing building was not left unoccupied and the new occupant offered
employment opportunities to laborers in the area.
When leaving an area, Lexmark is proactive in assisting employees in finding new employment
in their community. The Scottish Governments Partnership Action for Continuing Employment
(PACE), posted the following on its Web site with regard to Lexmarks closing of the Lexmark
facility in Scotland.
Lexmark has been in Rosyth for 10 years and employed some 700 staff in the production of
printer cartridges. Due to a downturn in demand and company restructuring, the decision was
reluctantly taken to close the Rosyth operation. "From the outset, Lexmark was extremely
proactive and, prior to meeting the representatives of the PACE team, had set up a well resourced
Job Shop. "Due to the publicity over the closure and successful marketing by both Lexmark Job
Shop staff and Jobcentre Plus, employees were made aware of over 1500 vacancies. These
covered a wide spectrum of opportunities including engineering, call centre work and care
vacancies.
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CHAPTER 5
FINDINGS, RECOMMENDATIONS AND CONCLUSION
5.1 INTRODUCTION
The chapter entails important issues this study sought to answer which are captured under the
summary while the researchers opinion formed as a results of undertaken the study are presented
under the conclusion and limitations of study. The recommendation part is relevant to
stakeholders in the country who wish to undertake CSR activities in the future and also
researchers who are interested in taking a research in CSR.
5.2 FINDINGS
The study discussed and focused on corporate social responsibility whether it is public
relations gimmick or not on from the perspective of management of Lexmark Ltd. The
objectives and research questions addressed why Lexmark Ltd undertakes CSR activities
as well as what it stands to gain from CSR. It also explored the image enhancing and
reputation building of CSR and the challengers that hinders smooth undertaking of CSR
programmes by Lexmark Ltd.
A lot of studies were reviewed for the studies and from the journals, articles, and studies
reviewed, it was deduced that corporate social responsibility is not engage in as a public
relations but people are attracted to the generosity of the organizations that engages in
social responsibility activities.
Enhanced image and improved reputation are some of the added benefits in engaging in
corporate social responsibility. From the studies that was reviewed it was revealed that
organizations may engage in social responsibility programmes because they see it as a
moral obligation as the findings of this studies revealed but again, customers
(stakeholders) push organizations into undertaking CSR activities. However, the concept
means different thing to different organizations as well as what motivates or drive them to
undertake such responsibilities.
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It was also revealed that, organizations undertake CSR initiatives as a way to augment the
government responsibilities in their own small way and make the society a better place.
Although organizations may genuinely set out to do good, there is a long term benefit
for such organizations because if stakeholders are attracted to positive ventures, therefore
in as much as it is organizations only motive is to help the society, they get additional
rewards such as attracting customers, building good image and recording impressive
financial performance.
Management is committed to the CSR concept and have made frantic efforts to sustain all
the CSR programmes. The research also revealed that, the organization also has a policy
document on CSR which they are passionate and committed about. With this, we realised
that, aside from the fact that Lexmark Ltd wants to be good citizens, they also stands to
gain a lot more than what they did revealed and also legitimised its operation The
researchers were convinced that no organization would put funds into any venture
without getting anything in return so Lexmark Ltd stands to gain from investment they
are putting into their CSR programmes.
The employees and management are oriented in the CSR concept because they are the
organization s stakeholders and they also can antagonised the organization s decisions if
they are not consulted on issues concerning the organization s programmes including
CSR initiatives. Employees can be aggrieved if they feel they are not being treated fairly
when it comes to increment in salary, good condition of service and in other incentives,
they antagonized the organization especially when the organization is undertaking more
CSR programmes in the community.
Lexmark Ltd is excited about their CSR programmes because of the difference they want to
make in the society. They have a department for CSR which scans the environment for suitable
initiatives that sit among its core brand aspirations and vision.
However, much consultation has to be done with stakeholders (the external stakeholder) when
CSR initiatives are considered.
5.3 CONCLUSIONS
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From the analysis made, it was concluded that management is committed to the CSR concept by
having a policy document on it; it was also revealed that the employees were also very much
involved in the programmes where they are allowed to share their views and employees are
always informed about CSR programmes and products before they hit the market. They in fact
make inputs into some of these initiatives sometimes and they support the CSR programmes
fully this made the researchers to conclude that when it comes to CSR, Airtel Ghana means
business.
It was found out that, there are no written laws on CSR practice in the country which makes it an
option left to organizations so in this case, nobody can really coerce any organization to
undertake CSR programmes except the organizations own motivation to engage in CSR. The
organization can only thrive to do more since they admitted that there is still more to be done in
the country in the area of development.
5.4 RECOMMENDATION
Based on the findings we recommend that;
Consultations should be done with all stakeholders of the company when they are
considering a new CSR initiative, this will make the stakeholders feel part of the company
and will not think that brand their CSR initiatives as a public relation gimmick.
Lexmarks should extend their CSR program to the communities where children are schooled
under trees since there are a lot of schools like that and lots of deprived communities scatter
all over Ghana with the very basic amenities such as water difficult to come by.
Lexmark Ltd can collaborate with other organizations as they are doing with the Ghana
Football Association in Rising Stars in order to raise more resources to do more good for the
society.
Future research can based on the effect CSR initiatives has have on beneficiaries and how
their life have change or otherwise after benefiting from Lexmarks CSR program.
In future, research in this field should incorporate stakeholders view as to whether
undertaking CSR programmes amounts to being a public relation gimmick.
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Corporate Social Responsibility is a complex concept but it brings in it fold many benefit such as
image enhancing, builds good reputation as well as profits and brand awareness creation (Bankas
2010) in the long- term.
Corporate social responsibility can be genuinely undertaken without having any additional
objectives; however, analysis shows that organizations will gain more than profits, as being good
citizens comes with good reputation, enhances corporate image and attracts prospective
employees to the organization. Data collected and analysed proved that it is not always the case
that, organizations undertake corporate social responsibility as a public relations gimmick.
*****
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BIBLIOGRAPHY
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http://www.dpemou.nic.in/MOUFiles/Revised_CSR_Guidelines.pdf
http://www.srr-foundation.org/workshop/csr/CSR_spending_in_India.pdf
http://www.lexmark.com/en_US/about-us/CSR-Report-2011.pdf
https://www.cisco.com/web/CN/aboutcisco/csr/download/csr_report_2011.pdf
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http://www.environment.honda-eu.com/reports/2012%20CSR%20report%20full.pdf
http://csr.lexmark.com/
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