Dell Corporate Responsibility Report 2012 - Highlights

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Highlights from Dell's 2012 Corporate Responsibility Report. Areas of focus include Environment, Communities, People, and Supply Chain.

Highlights from Dell's 2012 Corporate Responsibility Report. Areas of focus include Environment, Communities, People, and Supply Chain.

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  • At Dell, we believe we have a real place in this world to help people grow and thrive. We believe that, collectively, our future depends on using technology as a driving force to enable human potential and create a better world. These ideals fuel our purpose as a company and our brand. We talk about that as “The Power to Do More” and it informs everything we do.One of the ways we deliver on that purpose is through the good things we do for society at large and the environment. We call that Powering the Possible. Beyond compliance, beyond philanthropy, Dell Powering the Possible is our commitment to put technology and expertise to work, where it can do the most good for people and the planet – making possible today what was impossible yesterday.Powering the Possible falls into four broad action areas:Fostering environmental stewardship, based on taking a lifecycle approach that begins with designing with the environment in mind and continues through responsible recycling.Promoting supply chain responsibility, which includes promoting supplier diversity, promoting responsible labor practices among our suppliers, and taking a leadership role in driving conflict-free sourcing for the electronics industry. For those who are not familiar with that, maybe you know “Conflict Diamonds” (or Blood Diamonds – the movie staring Leonardo di Caprio). Well there are other conflict minerals, too, and some of them are used in electronics. Empowering our people, building an inclusive workforce that thinks as differently as it looks. There’s a lot that goes into this, driven by our People strategy and touching on our great employee resource groups, the Connected Workplace program, and the expansion of the Leadership Imperative initiative, among other things.Giving back to communities is much more than just writing checks. It takes a holistic approach to giving that supplements funds with technology, expertise and volunteerism. Our efforts focus on promoting Youth Learning through access and skills acquisition, helping accelerate treatments for pediatric cancer, encouraging social entrepreneurship among students, responding to disasters and supporting our team members’ own engagement with other community groups they care about.
  • Our bamboo packaging is a great example of what we mean by Powering the Possible. Our Director of Packaging does not have environment or sustainability in his title. His day job is ensuring our products are delivered safely. But he recognized that there are better ways, and that taking cues from nature might actually help him save money, protect the environment AND help the customer. Last year we used 8.5 million pounds or approximately 225,000 stalks of bamboo in our packaging for notebooks and desktops built in China. All of that bamboo was harvested near our manufacturing and started growing back by the time the fiscal year was over. We see innovative, renewable materials like bamboo or the mushroom packaging we’re piloting for heavier server shipments as a great way to reduce packaging’s impact on the environment. Innovations like this helped our packaging programs eliminate the need for 20 million pounds worth of packaging in the last 4 years and save Dell $18 million. The Dell Reconnect partnership with 2,500 Goodwill stores in the U.S. and Canada provides easy, free drop-off services for more than 64 million homes in the US and Canada – covering roughly half of all households. This is another great example – it helps Goodwill create green jobs, it gives our customers a simple way to recycle, and it helps us ensure products are recycled properly. In addition to the Reconnect program, we offer free consumer recycling in 79 countries, and easy, secure business recycling in 38 countries. To date, we’ve recycled more than 820 million pounds of e-waste overall.For us, it’s important to not just help get products recycled. We look to use recycled content where we can. In the last four years, we’ve used 22.5 million pounds of recycled-content plastics in our products, the equivalent of 427.5 million water bottles (20 oz). If lined up end-to-end, they’d stretch 74,218 miles. If you emptied out the water, they’d fill up 101 Olympic pools.Dell’s PowerEdge servers are warrantied to operate at 113 degrees Fahrenheit for up to 90 hours. That means you could operate using outside air in Death Valley [FOR OTHER GEOGRAPHIES, CONSIDER: “in virtually every part of Europe and North America”]. For customers, this means less worry about temperature excursions and a greatly expanded geography in which they can operate without chillers. Not using chillers means not taking on the $3 million capital costs or $275,000 annual expenses associated with air conditioning each megawatt of installed IT.
  • This year we launched a multi-year commitment of technology, funding and employee engagement for the first FDA-approved personalized medicine clinical trail for pediatric cancer with our partners Tgen [pronounced tee-jen] and the Neuroblastoma and MedulloblastomaTranslationa Research Consortium. The cloud-enabled high-performance computing will cut mapping time from months to days – making it possible for researchers to develop treatments specific to their patients. The technology helps these researchers essentially take the patient’s genetics – roughly the equivalent of a library’s worth of information – tear it up and put it back together. In days. Our Youth Learning Initiatives have reached more than 2.7 million children since 2009, helping bridge the digital divide by bringing technology and skills building to underserved communities. The program has 56 partners in 11 countries, and Dell team members volunteered more than 5,400 hours with these specific partners.The Dell Social Innovation Competition encourages budding social entrepreneurs in partnership with the University of Texas. This past year, more than 1,500 teams submitted projects from 85 different countries, competing for the $150,000 prize money.While not depicted on the slide, it is worth mentioning the great work of our Children’s Cancer Care initiatives. Dell is helping nonprofits worldwide as they provide comfort and care to young cancer patients and their families. Through our multimillion dollar, multiyear commitment, our support ranges from establishing remote learning opportunities for hospitalized children to funding leukemia treatments for children who would otherwise have to discontinue treatment. By applying our technology, expertise, donations and employee volunteerism, we hope to open new possibilities for children fighting cancer.When disaster strikes, social media can be a lifeline to loved ones, information and supplies. Recognizing this, Dell donated the first of its kind digital operations center to the American Red Cross, providing the relief organization with the tools to monitor victim needs and connect people to resources. [NOT ON SLIDE, BUT MENTION] Across all these efforts and more, Dell team members were very generous with their time last year. Our team member volunteering amounted to 418,000 hours last year at more that 5,000 organizations across the world. This generosity helps the organizations we care about further their missions, making great things possible.
  • DWEN, or the Dell Women’s Entrepreneur Network, doubled in size in FY12, thanks in part to the launch of the new Women Powering Business campaign and other outreach activities. Dell also hired its first Entrepreneur in Residence – Ingrid Vanderveldt – who is on the advisory board for DWEN and acts as the bridge between Dell and the Marketplace. This commitment to women runs deep at Dell. In fact, Michael Dell recently joined the board of Catalyst – the leading nonprofit membership organization expanding opportunities for women and business. We also gave $1 million to the group.The benefits and resources of Connected Workplace provide the flexibility Dell team members need to create new possibilities for their careers and lives. We launched Connective Workplace at designated sites in 2010 and it has steadily grown to include more than 18,000 participants now. It helps parents continue their careers while caring for their children. It also allows team members to pursue other interests and dreams. For example, Richard Allen, used the Connected Workplace resources to allow him to train for a run at the Olympics this past spring. Dell has 9 Employee Resource Groups with 65 chapters across the globe and more than 10,000 team members participating. From Wise (focused on women) to GenNext (focused on team members in their 20s and 30s) to True Ability (focused on team members impacted by disabilities or special needs) to the two newest ERGS: Planet (our green team environmental group) and Virtus (focused on military personnel and veterans). [insert other ERGs if applicable – Adelante, Asians in Motion, BRIDGE, Pride]As part of our benefits, we also provide team members with free health resources. Last year, we saw a marked improvement among those who participated – with 73% of them reducing at least one of their identified health risks.We’re proud of our team members and we are humbled by the recognition we receive for our actions. In FY12 alone, Dell received more than a dozen awards for its people initiatives globally. In addition to being recognized as one of Diversity Inc’s Top 50 Companies for Diversity, we were recognized as part of Working Mother Magazine’s Top 100, the China Top 50 Employers, Best Company to Work For – Brazil, and we received a perfect score on the Human Rights Campaign’s Corporate Equality Index for the sixth straight year
  • In FY12, Dell spending with diverse suppliers reached nearly $3 billion. This qualified us for membership in the Billion Dollar Roundtable – a collection of companies spending at least $1 billion annually with minority and women-owned suppliers that promotes best practices and shared strategies for improvement. Remembering that some of our main suppliers for things like hard drives and chips are large global companies, we are quite proud of this accomplishment. We also asked our Tier 1 suppliers to report their spend with diverse businesses, which resulted in an additional $296 million spend with diverse businesses.Dell has strengthened its engagement with the Women’s Business Enterprise National Council (WBENC) through board member and Dell VP of General Procurement, Kim Brown, as well as working to ensure WBENC-certified businesses are included in the development of the Dell Women’s Entrepreneur Network Event. We are also lending our expertise in social media at WBENC’s annual conference by creating a social media command center and coaching business owners on how to use social media for marketing.Through our 125 audits of suppliers, we found that 96% of them have methods in place to allow workers to confidentially and safely report misconduct. And through our work with IDH – the Dutch Sustainable Trade Initiative – we are working with other leaders to improve working conditions among Chinese suppliers in the electronics industry. It focuses on improving core matters, such as efficient production planning, wages, and even career mapping for employees.With human rights abuses in the Congo largely fueled by trade in minerals that appear in IT products, like gold, tantalum, tin and tungsten, Dell has a policy of not purchasing from any known conflict sources and we expect our suppliers to adhere to the same standards. Our team has taken a leadership role, chairing the Conflict-Free Smelter Program for our industry and working with the EICC to strengthen the overall commitment.
  • The next four slides can be used to help provide context – they are an in-depth look at a particular project or person who embodies what we mean by Powering the Possible.
  • One of the great examples of Powering the Possible is the modular data center that Dell’s Data Center Solutions team developed for eBay. In the desert Southwest city of Phoenix, the team built a 1,920-server data center whose innovative design incorporates fresh air for cooling instead of using costly, energy-intensive chillers. The result is a powerful data center that uses less electricity and reduces their total cost of ownership. The solution helps eBay achieve their environmental goals, their business goals AND they saved money thanks to year-round cooling without chillers in the desert. This success in energy efficiency earned the DCS team and eBay recognition as one of the Uptime Institute’s 2012 Green Enterprise IT Award winners.
  • What if you could eat your packaging? That’s a question that crossed the mind of Oliver Campbell, our Director of Packaging. Oliver, in many ways, epitomizes the spirit of Powering the Possible. Actually, there’s nothing in Oliver’s job description related to the environment. But he sees the importance of finding shared value – the “win-win-win” situation where our customers benefit, Dell benefits, and society at large can benefit. And he looks to nature to help him understand how. Like choosing bamboo – which grows near our manufacturing, quickly grows back after harvesting, and is both recyclable and compostable. Dell was the first OEM to use bamboo cushions and the first to start growing cushions from mushrooms. We’ve become a leader in the packaging world through his innovative approach to incorporating nature’s solutions, and all along the way he’s making it easier for our customers, better for the environment, and less expensive for Dell.
  • Days after Dell and the American Red Cross launched their social media command center on March 7, 2012, the power of this technology became clear: as representatives were able to monitor social conversations before, during and after a horrifying outbreak of tornadoes hit the Midwest. As local residents took to their social media accounts to ask questions about tornado safety, alert loved ones and ask for help in various ways, the American Red Cross was there. Dell donated this first-ever social media command center devoted exclusively to humanitarian and disaster relief efforts, also providing the technology, software and tools like heat maps to help the Red Cross respond more effectively. The idea was not born out of Dell’s giving team or even out of the social media team. It was devised by a member of our communications team who saw the possibility – and Dell’s ability to immediately power a solution. It is a shining example of how Dell team members are Powering the Possible – putting technology and expertise to work where it can do the most good.
  • For kids with certain types of children’s cancers, the clock is ticking. That’s why last year Dell made a multi-year commitment of technology, funding and employee engagement to launch the world’s first personalized medicine clinical trial for pediatric cancer. In partnership with Tgen (pronounced tee-jen) and the Neuroblastoma and Medulloblastoma Translational Research Consortium, Dell provided a cloud solution that reduces the amount of time it takes for mapping and analyzing genomes from months to days.The project is amazing, especially considering that the only way to treat these cancers is with a personalized approach based on the child’s genetics. It allows researchers to quickly analyze and store data out on the project cloud, then use it to map and match to the treatment database. The results can then be saved to the cloud so doctors can quickly access the information and can then administer treatment.Quicker results, shared information, better outcomes – our children’s cancer care initiative is making it possible.

Transcript

  • 1. Our commitment to put technology and expertise to work, where it can do the most good for people and the planet.Environment Communities People Supply ChainHelping reduce customers‖ Giving to communities in Building an inclusive Helping suppliers buildenvironmental footprint as need with a focus on: workforce that thinks as capabilities, grow theirwell as our own through a • Youth learning differently as it looks business, and upholdlifecycle approach: • Children‖s cancer care through: high standards by:• Environmental design • Social entrepreneurship • People strategy • Supplier diversity• Responsible operations • Disaster relief • Employee resource • Responsible labor• Sustainable packaging • Employee engagement groups practices• Energy efficiency • Connected Workplace • Conflict-free sourcing• Recycling programs • Leadership Imperative Corporate Responsibility
  • 2. EnvironmentFY12 accomplishments• 8.5 million pounds of renewable bamboo used in product packaging in FY12, all of which has started growing back.• 2,500 Goodwill locations provide recycling drop-off locations in the US and Canada via Dell Reconnect.• 427.5 million plastic water bottles‖ worth of recycled plastic used in select systems since 2009 – if emptied, they would fill 101 Olympic swimming pools.• Data centers operate at 113°F without 113° Fahrenheit chillers. Not just possible, it‖s under warranty.
  • 3. CommunitiesFY12 accomplishments• Cut time to treatment from months to days months 418K with high-performance cloud solution in first to days hours FDA-approved personalized medicine clinical trial for pediatric cancer.• 2.7 million children were reached through 2.7 million Youth Learning programs since 2009.• 1,500 projects submitted globally to the 1,500 Dell Social Innovation Competition. This projects year, 103 Dell team members mentored semi- finalists.• Donated to The American Red Cross, a social media command center, the first of it‖s kind.
  • 4. PeopleKey accomplishments• Doubled the size of Dell Women’s Entrepreneur Network. 2x• Increased enrollment in Connected % Workplace by 18,000 participants or 11%. 11• Supporting 9 Employee Resource Groups with 65 chapters worldwide, including new environmental and veteran/ military groups added this year.• Saw a reduction in at least one health risk % for 73% of team members who participated 73 in free health coaching. Corporate Responsibility
  • 5. Supply ChainKey accomplishments• Invested US$3 billion in diverse suppliers.• 96% of our suppliers have a method to 3 US$ confidentially report misconduct.• Improved working conditions for 500,000 workers in China with Sustainable Trade Initiative (IDH).• Addressing Conflict-Free Minerals.
  • 6. Spotlights6 Confidential 10/17/2012 Corporate Responsibility
  • 7. “It was 115 Fahrenheit — on the roof, exposed to the sun, in the desert, sustaining26 kilowatts per cabinet, and we were getting free cooling. Let that sink in for asecond: We were getting free cooling at 115 Fahrenheit in the desert.” 7 Confidential 10/17/2012 – Dean Nelson Corporate Responsibility Vice President, Global Foundation Services, eBay
  • 8. “In nature, there is no such thing as waste. Everything feeds somethingelse. There‖s a lot we can learn from this system. Given the challengeswe face as a society and as a planet, now is the time to start thinkingabout the impossible.”8 Confidential 10/17/2012 Corporate– Oliver Campbell Responsibility Director of Packaging, Dell
  • 9. “The use of social media during disasters has grown exponentially in recentyears, and this partnership with Dell will enable us to better understand andanticipate disaster needs and help connect people with the resources theyneed during emergencies.” 9 Confidential 10/17/2012 Corporate ResponsibilityMcGovern – Gail J. President and CEO, American Red Cross
  • 10. “The Dell High-Performance Computing infrastructure is like a geneticist‖sdream sandbox. It lets us walk down paths we would in the past [have] said,―We can‖t even try that because we won‖t have the results for another month.‖” 10 Confidential 10/17/2012 – Matt Huentelman, Corporate Responsibility Ph.D. Associate Professor, TGen