sustainability It’s In our nature




       Tyson Foods, Inc. 2007 susTaInabIlITy RepoRT
TABLE OF CONTENTS

   From our ceo . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
   about This Rep...
Sustainability Mission Statement
“Tyson Foods, Inc., recognizes the importance of being a responsible corporate citizen. O...
about This Report




4
                Tyson Foods, Inc. 2007 susTaInabIlITy RepoRT
With the release of It’s In Our Nature, our second biennial sustainability report, we continue to demonstrate that
sustain...
coMpany pRoFIle                                      animals, land, and environment entrusted to us.
                     ...
coMpany sTRaTeGy                                       We also pay close attention to costs and the
                      ...
Retail brands                                           Wholly-owned subsidiary
Foodservice brands
                       ...
MAiNTAiNiNg A PrOud
         WOrkPLACE
         ethics and Governance . . . . . . . . . . 10
         Doing What’s Right

...
ethics and Governance
           Doing What’s Right




10
                            Tyson Foods, Inc. 2007 susTaInabIlI...
We strive to conduct our business in an ethical, honest manner and in full compliance with all applicable laws and
regulat...
ManaGInG eTHIcal conceRns
                                       eTHIcs TRaInInG
                                         ...
GoVeRnance
coMplIance
                                                      Tyson Foods is committed to best practices in
...
people
     Respecting Our Team Members




14
                          Tyson Foods, Inc. 2007 susTaInabIlITy RepoRT
At Tyson Foods, we know our employees, whom we call Team Members, drive our continued success and provide the
unique contr...
HIRInG THe besT
                                Inclusion and diversity Initiatives
                                      ...
payInG a coMpeTITIVe WaGe
Regional Recruiting
                                                         Tyson Foods offers ...
Talent Review and succession planning
                                         Health care
                               ...
Tyson Foods’ chaplain services
leaders into champions
                                                   Initiated in 2000...
ReWaRdInG and RecoGnIZInG
                                      communication with Team Members
                          ...
BuiLdiNg TruST EvEry dAy

             Food safety . . . . . . . . . . . . . . . . . . . . .22
             Maintaining Co...
Food safety
     Maintaining Consumer Trust




22
                          Tyson Foods, Inc. 2007 susTaInabIlITy RepoRT
As an industry leader, Tyson Foods has been committed to providing safe, quality foods people can trust for more than 70
y...
ensuRInG saFe, QualITy Food aT                           We also partnered with Texas A&M University to
                  ...
statistical support
Our award-winning laboratory network is composed
of 18 company-owned and operated laboratories        ...
coMMunIcaTInG WITH consuMeRs
                                  Internal and external Food safety audits and
              ...
tyson foods  2007 Sustainability Report
tyson foods  2007 Sustainability Report
tyson foods  2007 Sustainability Report
tyson foods  2007 Sustainability Report
tyson foods  2007 Sustainability Report
tyson foods  2007 Sustainability Report
tyson foods  2007 Sustainability Report
tyson foods  2007 Sustainability Report
tyson foods  2007 Sustainability Report
tyson foods  2007 Sustainability Report
tyson foods  2007 Sustainability Report
tyson foods  2007 Sustainability Report
tyson foods  2007 Sustainability Report
tyson foods  2007 Sustainability Report
tyson foods  2007 Sustainability Report
tyson foods  2007 Sustainability Report
tyson foods  2007 Sustainability Report
tyson foods  2007 Sustainability Report
tyson foods  2007 Sustainability Report
tyson foods  2007 Sustainability Report
tyson foods  2007 Sustainability Report
tyson foods  2007 Sustainability Report
tyson foods  2007 Sustainability Report
tyson foods  2007 Sustainability Report
tyson foods  2007 Sustainability Report
tyson foods  2007 Sustainability Report
tyson foods  2007 Sustainability Report
tyson foods  2007 Sustainability Report
tyson foods  2007 Sustainability Report
tyson foods  2007 Sustainability Report
tyson foods  2007 Sustainability Report
tyson foods  2007 Sustainability Report
tyson foods  2007 Sustainability Report
tyson foods  2007 Sustainability Report
tyson foods  2007 Sustainability Report
tyson foods  2007 Sustainability Report
tyson foods  2007 Sustainability Report
tyson foods  2007 Sustainability Report
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tyson foods 2007 Sustainability Report

  1. 1. sustainability It’s In our nature Tyson Foods, Inc. 2007 susTaInabIlITy RepoRT
  2. 2. TABLE OF CONTENTS From our ceo . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 about This Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Maintaining a proud Workplace . . . . . . . . . . . . . . . . . . 9 • ethics and Governance: doing What’s Right • people: Respecting our Team Members building Trust every day . . . . . . . . . . . . . . . . . . . . . . . . . 21 • Food safety: Maintaining consumer Trust • animal Well-being: Treating animals Right • environmental, Health, and safety: Making a difference • International: sharing with the World creating Meaningful change . . . . . . . . . . . . . . . . . . . . 45 • Research and development: Focusing on the Future • shareholders: creating long-Term shareholder Value • supply chain: partnering with suppliers • community: Touching lives and Meeting needs contact Information . . . . . . . . . . . . . . . . . . . . . . . . . . . 63
  3. 3. Sustainability Mission Statement “Tyson Foods, Inc., recognizes the importance of being a responsible corporate citizen. Our Core Values – which define who we are, what we do, and how we do it – are the foundation of corporate sustainability at Tyson. We are committed to making our company sustainable – economically, environmentally, and socially. Our progress in this endeavor will be measured by how we develop and market our products, how we care for the animals, land, and environment entrusted to us, and how we treat people, including our Team Members, consumers, suppliers, and the communities in which we live and operate.” John Tyson Chairman, Tyson Foods, Inc. From Our CEO use by 15 percent. To ensure continual There are many different definitions of sustainability. improvement, during fiscal year 2008, we will Some say it means “meeting the needs of the establish and begin implementing initiatives present without compromising the future.” Others for improving our water conservation efforts. say it is “extending the Golden Rule through time,” or “leaving the world better than you • Our new Tyson Renewable Products unit is found it.” I believe sustainability is simply doing pursuing ways to convert by-products such the right thing, whether it involves protecting as animal fat into alternative energy. Through natural resources, creating alternative energy, or announced alliances with other companies, feeding the hungry. we currently plan to produce up to 250 million gallons of biofuel a year from animal Sustainability at Tyson Foods is a natural outgrowth fat within the next three to four years. of our Core Values, which call on us to “serve as stewards of the animals, land, and environment” • The continued escalation of grain prices, “I believe the Team Members of and “operate with integrity and trust.” It involves driven largely by government mandates for Tyson Foods will continue to succeed taking both ethical and social responsibility, but in our sustainability efforts because corn-based ethanol, has resulted in higher it can also have economic implications if you so much of it is part of who we are input costs for the food industry, as well as and how we operate our business.” choose to ignore it. higher consumer food prices. Tyson Foods Richard L. Bond will continue efforts to effectively manage There are three major aspects of our sustainability president and CEO of Tyson Foods these additional input costs and will also efforts, which we refer to as our “triple bottom continue advocating changes in government line.” They include our economic, social, and policy on the use of corn for ethanol. environmental performance. While we are obviously focused on the economics of our • Tyson Foods is a leader in the fight against business, we also pay attention to our social and hunger. In 2006, the company committed environmental responsibilities. This includes ethics, to donate 10 million pounds of protein over worker dignity and respect, food and worker three years to America’s Second Harvest – safety, animal well-being, and community relations. The Nation’s Food Bank Network. We are already on track to exceed this goal well We have staff members specifically assigned ahead of schedule. to ensure we are properly addressing these important areas. Because sustainability touches I believe the Team Members of Tyson Foods will virtually every aspect of our operations, however, continue to succeed in our sustainability efforts we strive to make it the responsibility of every because so much of it is part of who we are and Tyson Team Member. We have also set the how we operate our business. We’re proud of following sustainability goals for the company: what we have already accomplished, and we are committed to doing even better. • As a company, we use approximately 28 billion gallons of water each year to produce safe and healthy food products for our customers. Our goal is to conserve this important natural resource, and over the Richard L. Bond past two years we have reduced water President and Chief Executive Officer of Tyson Foods
  4. 4. about This Report 4 Tyson Foods, Inc. 2007 susTaInabIlITy RepoRT
  5. 5. With the release of It’s In Our Nature, our second biennial sustainability report, we continue to demonstrate that sustainability is a fundamental element of Tyson Foods’ culture. This report provides facts and data illustrating that sustainability is an inherent part of who we are as individuals and as a company. Simply said, it is in our nature to care about important issues such as hunger relief, environmental protection, resource conservation, food safety, animal well-being, ethical business practices, the safety and health of our Team Members, and community support. Tyson Foods published its first sustainability report, Living Our Core Values, in 2005. Both reports can be viewed at www.tyson.com. Report period and scope • Animal Well-Being: Treating Animals Right • Environmental, Health, and Safety: The data in this report, including financial Making a Difference information, covers fiscal reporting years 2006 (October 2, 2005 - September 30, 2006) and 2007 • International: Sharing with the World (October 1, 2006 - September 29, 2007). Financial Creating Meaningful Change information is given in U.S. dollars. Unless • Research and Development: otherwise noted, this report covers all U.S.-based Focusing on the Future operations, with additional information provided • Shareholders: Creating Long-Term on select international operations, subsidiaries, Shareholder Value and joint-ventures. The scope of the report does not include data from independent producers, • Supply Chain: Partnering with Suppliers external organizations, or activities over which • Community: Touching Lives and the company has limited control or influence. Meeting Needs Report content Key stakeholders Tyson Foods collaborated with both internal and This report is designed to provide information external sources to determine the topics in about our company’s sustainability efforts to this report. These sources included company individuals and organizations interested in Tyson objectives and strategies; roundtable discussions Foods’ economic, social, and environmental with the company’s senior management team; performance. We expect this report to be used focused discussions and workgroups with by the following stakeholders: key business units; customer and consumer • Team Members feedback; comments specific to Tyson Foods’ previous Sustainability Report; and the Global • Shareholders and potential investors Reporting Initiative (GRI) G3 Reporting Guidelines. • The Board of Directors Based on our assessment, we determined that • Independent producers the topics of greatest importance to our • Communities near our operations company and its stakeholders can be • Customers and consumers of our products categorized as follows: • Multicultural organizations Maintaining a Proud Workplace • Nongovernmental organizations • Ethics and Governance: Doing What’s Right • Local, state, and federal governments • People: Respecting Our Team Members • Suppliers Building Trust Everyday • Food Safety: Maintaining Consumer Trust • Joint ventures and alliances 5
  6. 6. coMpany pRoFIle animals, land, and environment entrusted to us. Our vision is to be the world’s first choice for Tyson Foods, Inc. [NYSE: TSN], founded in 1935 protein solutions while maximizing shareholder with headquarters in Springdale, Arkansas, is the value, living our Core Values, and fostering a fun world’s largest processor and marketer of chicken, place to work. Our mission is to produce and beef, and pork, the second-largest food production market trusted quality food products that fit company in the Fortune 500, and a member of today’s changing lifestyles and to attract, motivate, the S&P 500. Our company produces a wide and retain the best people in the food industry. variety of protein-based and prepared food products and is the recognized market leader As the largest protein company, Tyson Foods in the retail and food service markets it serves. produces nearly one out of every four pounds Tyson Foods provides products and service to of chicken, beef, and pork consumed in America. customers throughout the United States and We are the only company selling all three proteins more than 80 countries. Our company has through all major distribution channels. We lead approximately 104,000 Team Members employed domestic beef production with a 25-percent at more than 300 facilities and offices in the market share*. We also hold the number two United States and around the world. Through position in chicken and pork production with our Core Values, Code of Conduct, and Team a 24-percent and 17-percent market share*, Member Bill of Rights, Tyson Foods strives to respectively. operate with integrity and trust and is committed *Chicken market share is based on average weekly to creating value for our shareholders, customers, slaughter. Beef and pork market share is based on and Team Members. Tyson Foods also strives reported processing numbers. to be faith-friendly, provide a safe work environment, and serve as stewards of the Tyson Foods production Facilities International 6 Tyson Foods, Inc. 2007 susTaInabIlITy RepoRT
  7. 7. coMpany sTRaTeGy We also pay close attention to costs and the efficiency of our operations. In the fall of 2007, With our talented, diverse, and high-performing Tyson Foods undertook an initiative to examine team, we will drive performance in a winning, highly every aspect of the business to ensure best accountable culture reflective of our Core Values. practices are shared throughout the company. We will: The result of this process will be an optimization • create innovative and insight-driven food of resources that align production, customer solutions: Discover and sell market-leading needs, and efficiencies. products and services to grow Tyson Foods’ Toward our goal of international expansion, we brand equity and help our customers entered into a joint venture in 2007, creating the succeed through our commitment to joint first vertically integrated beef operation in value creation Argentina. Tyson Foods is pursuing additional • optimize commodity business models: opportunities in South America as well as Asia. Emphasize cost focus in operations, manage The newest aspect of our corporate strategy is to margins, and maximize revenue by revolutionize the conversion of raw materials into capitalizing on scale, yield, pricing, product high-margin initiatives. Renewable energy is an mix, and services important aspect of this strategy, and we have • build a multi-national enterprise: Accelerate created a new division to support this effort. expansion in cost-competitive regions and The Tyson Renewable Products group is in markets with the greatest growth potential a strategic partnership with ConocoPhillips to as well as increase and diversify U.S. exports produce renewable diesel fuel from beef, pork, and chicken fat. The companies anticipate • Revolutionize conversion of raw materials production of 175 million gallons of renewable and by-products into high-margin initiatives: diesel fuel per year by 2009. Commercialize opportunities outside the The new Any’tizers™ snacks core business, such as creating renewable We also entered into a joint venture with packaging energy from fat and developing other Syntroleum Corporation, a synthetic fuels technologically advanced platforms from technology company. The partnership, named 2007 sales by segment materials such as feathers and other animal Dynamic Fuels LLC, will target the renewable $26.9 billion by-products diesel, jet, and military fuels markets. When the first standalone production facility is completed With the opening of the Tyson Discovery Center™ 10% in 2010, the companies anticipate production of in fiscal year 2007, Tyson Foods significantly prepared Foods 75 million gallons of synthetic fuels annually. increased its efforts to create innovative and 47% 12% beef insight-driven food solutions. This state-of-the- Tyson Foods will also continue efforts to mitigate pork art research and development facility enhances the impact of higher grain prices, which have our ability to create new foods and bring them to largely been caused by the use of corn for 31% the marketplace quickly. This year we introduced ethanol production. Grain is a significant input chicken 100% All Natural Chicken for our Foodservice cost in the livestock and meat industry, customers. In the consumer products channel, we representing almost half the cost of raising a launched Any’tizers™ snacks. chicken. Because of the impact of increased grain costs on our company as well as our customers and consumers, the company will continue to push for changes in government policy on ethanol production. 7
  8. 8. Retail brands Wholly-owned subsidiary Foodservice brands Corn King® Cobb-Vantress, Inc., a Tyson Foods wholly owned Tyson® subsidiary, is the world’s leading supplier of broiler A leading national brand of value-priced bacon, ham IBP® breeding stock and technical expertise for the and deli meats. Bonici Italian® chicken-meat industry. Cobb-Vantress works with Russer® Mexican Original® customers in more than 90 countries to provide A brand of deli meats and cheeses for both self- for the growing demand for chicken, helping Wright Brand® serve and service deli departments. them to increase production efficiency and Star Ranch Natural Angus Beef™ Weaver® improve overall returns. Care for the welfare of The Northeast’s leading brand of quality frozen fully the chickens and for the needs of the customers cooked chicken products. is central to Cobb-Vantress’ business philosophy. Wilson™ A brand of ham and deli meats. Wright Brand™ The Southwest’s largest supplier of high-quality bacon and hams. cobb-Vantress distributors 8 Tyson Foods, Inc. 2007 susTaInabIlITy RepoRT
  9. 9. MAiNTAiNiNg A PrOud WOrkPLACE ethics and Governance . . . . . . . . . . 10 Doing What’s Right people . . . . . . . . . . . . . . . . . . . . . . . . . 14 Respecting Our Team Members
  10. 10. ethics and Governance Doing What’s Right 10 Tyson Foods, Inc. 2007 susTaInabIlITy RepoRT
  11. 11. We strive to conduct our business in an ethical, honest manner and in full compliance with all applicable laws and regulations. We believe integrity is a fundamental element in our relationships with our many stakeholders. Our commitment to operating with respect, trust, accountability, and honor is modeled daily by our Team Members. In 2007, Tyson Foods introduced a revised Code of Conduct and developed a Code of Conduct/Ethics DVD to address the training needs of our hourly Team Members. In addition, computer-based ethics and Code of Conduct training courses were implemented for all management and management-support Team Members. Tyson Foods also created the Office of Compliance in 2006 to facilitate our compliance program. ouR code oF conducT Team Members must successfully complete a test to obtain credit for the course. Newly hired The Code of Conduct sets forth ethical standards or promoted management and management- that apply to the Board of Directors, all Team support Team Members are required to complete Members, business divisions, and subsidiaries of the Code of Conduct course to ensure their Tyson Foods. Team Members from across the awareness of the company’s ethical standards set company assisted in the 2007 revision of the forth in the Code. Code of Conduct. The Compliance Coordination Committee, the Executive Compliance Committee, and the Board of Directors approved these revisions. In conjunction with the release of the revised Code of Conduct, a computer-based training course for management and management support was implemented. The course ensures Team Member’s awareness of the company’s Code of Conduct requirements with respect to integrity For additional information, visit and honor in key business areas, such as: our Web site at www.tyson.com. Many resources about our • Food safety corporate governance program • Animal well-being are available there, including our Corporate Governance Principles, • Environmental management committee structures, charters, • Conflicts of interest and Code of Conduct. • Safety and health • International business practices 11
  12. 12. ManaGInG eTHIcal conceRns eTHIcs TRaInInG It’s understood that the written Code of Conduct All Tyson Foods Team Members, including the cannot provide guidance on every situation Team Board of Directors, annually attend approximately Members may face during their business activities. one hour of Ethics and Code of Conduct training. When the Code of Conduct is not enough, the This training provides information on various ‘real Tyson Help Line is available. life’ ethical scenarios. Team Members are taught to make good decisions within the framework of In 2007, Tyson Foods implemented a new Help “Doing What’s Right.” They are instructed to ask Line tracking system. This system allows Help themselves the following questions when they are Line personnel to more accurately analyze calls uncertain about the proper course of action in a for the purpose of investigation and follow-up. difficult situation: In addition, the nature of each call to the Help Line is evaluated. Results, trends, and statistics • Does it comply with Tyson Foods’ are reported quarterly to the appropriate Board Core Values? ouR coRe Values of Directors committee. We are a company of people • Is it the right thing to do? engaged in the production of The Help Line may be used anonymously to • Were others treated the way I want food, seeking to pursue truth and integrity, and committed to report any suspected violation of the law, to be treated? creating value for our shareholders, applicable regulations, company policies, or • Would Tyson Foods or I be embarrassed if our customers, and our people in provisions of the Code of Conduct. The Help the process. this action were reported in the newspaper? Who We are Line is accessible to callers from the United • We strive to be a company of • Is it legal? States, Canada, Mexico, and China 24-hours diverse people working together to produce food. a day, and offers assistance in more than • We strive to be honorable 150 languages. people. • We strive to be a faith-friendly company. What We do • We feed our families, the nation, and the world with trusted food products. • We serve as stewards of the animals, land, and environment entrusted to us. • We strive to provide a safe work environment for our Team Members. How We do It • We strive to earn consistent and satisfactory profits for our shareholders and to invest in our people, products, and processes. • We strive to operate with integrity and trust in all we do. • We strive to honor God and be respectful of each other, our customers, and other stakeholders. 12 Tyson Foods, Inc. 2007 susTaInabIlITy RepoRT
  13. 13. GoVeRnance coMplIance Tyson Foods is committed to best practices in In 2006, the company created the Office of corporate governance. We believe maintaining Compliance and performed a Compliance Risk qualified independent directors on the Board of Assessment. The assessment, which will be Directors is an integral part of effective governance. updated periodically, was developed to: Since 1998, the percentage of independent directors • Create an inventory of Tyson Foods’ has increased, while the overall size of the board compliance risks has decreased. Of ten directors currently serving, • Measure the likelihood and significance of a six are independent. In 2006, the functions of compliance violation specific to that risk Chairman and Chief Executive Officer were • Gauge the effectiveness of management’s separated. John Tyson serves as Chairman while efforts to manage the risk Dick Bond is the President and Chief Executive Officer. Tyson Foods values the diverse thoughts, • Offer suggestions for improvement backgrounds, skills, and characteristics of our A Compliance Coordination Committee was directors. Tyson Foods has four working also established during 2006. The committee is a committees of the Board – Audit, Compensation, cross-functional management team representing Governance, and Nominating – each of which is key compliance business processes. Its mission is comprised of independent directors. Currently, to enhance our ability to collaborate on compliance we have four minority directors on our board. best practices. The committee will help foster Furthermore, our directors bring broad-based effective and efficient communication across experience related not only to food production compliance risk areas. but also investments, health care, and marketing. The Compliance Coordination Committee provides information on compliance risks and key business drivers to the Executive Compliance Committee, a committee of senior leaders at the company. The Executive Compliance Committee sets the tone and direction of the company’s compliance program. 13
  14. 14. people Respecting Our Team Members 14 Tyson Foods, Inc. 2007 susTaInabIlITy RepoRT
  15. 15. At Tyson Foods, we know our employees, whom we call Team Members, drive our continued success and provide the unique contributions required to build a sustainable company. We strive to celebrate those unique contributions and provide personal and professional opportunities for growth for each Team Member. We seek to recruit a highly skilled and motivated workforce, offer competitive compensation and benefits, and above all, treat our Team Members with dignity and respect. In 2006 and 2007, Tyson Foods launched the Pipeline Management Process. Focused primarily in our plants, this process helps prepare a diverse talent base for future management opportunities at every level of our company. In addition, our Professional Recruitment department re-engineered our recruiting process to develop proactive talent-management plans for each business unit. Furthermore, Tyson Foods unveiled a new strategy for communicating its diversity and inclusion efforts, expanded its health benefit plans, and designed a new reward and recognition program for Team Members. one person, one Team, one Goal ManaGInG InclusIon - ValuInG dIVeRsITy Our Core Values state, “We strive to be a Inclusion, diversity, and engagement are the company of diverse people working together to cornerstones that have supported the sustained produce food.” Diversity, however, is about more success of our company. We believe these than a person’s outward appearance; it’s about the cornerstones: individual and collective thoughts, backgrounds, • Increase innovation and talents of our 104,000 Team Members. • Enhance customer and investor confidence Our strategy, “One Person, One Team, One Goal,” • Help maintain a competitive advantage supports our Core Values, Code of Conduct, and • Attract and retain the best of all groups Team Member Bill of Rights. This concept moves each Team Member closer to realizing the truth • Support our success and growth in behind the personal statement, “At Tyson Foods, the future I have the opportunity to be part of a winning Tyson Foods is committed to building and team, and grow personally and professionally, maintaining a culture that fosters inclusion and while being myself.” diversity. We will do this by increasing our awareness about how our own thinking, actions, and backgrounds impact those around us. We will also continue to educate our leaders on how to effectively champion and energize a multi-cultural workforce. 15
  16. 16. HIRInG THe besT Inclusion and diversity Initiatives Hiring the right people is a part of Tyson Foods’ Tyson Foods has developed and implemented key success. A robust hiring process helps ensure activities supporting its inclusion and diversity compliance with federal, state, and local hiring business strategies. Our company established practices. Moreover, it helps us ensure the skills an Executive Diversity Business Council in March and experiences of our Team Members are properly 2005. This council develops and leads initiatives aligned with our business needs and that we have that foster inclusion and participation of all Team a talent pipeline for future leadership opportunities. Members. Led by our President and CEO Dick Bond, the goal of this council is to ensure all Team Improving our Recruiting process Members are treated with dignity and respect. Our Professional Recruitment department Involvement is a key factor for Team Member redesigned the recruitment process in 2006. retention. Tyson Foods established three Business By partnering with our internal customers such Resource Groups for this reason. The Women’s, as hiring managers, we were able to develop Multicultural, and Men’s Business Resource Groups proactive talent management plans for each help ensure all Team Members feel connected to of our business units. The changes resulted in our company’s overall business strategy. Not only significant time and cost savings and provided do these groups help foster engagement in our these additional benefits: company, they also aid our Team Members’ • A comprehensive talent acquisition plan understanding of how they can more effectively and recruiting strategy for each available support our business strategy. Business Resource position Groups also provide an avenue for Team Members to network and to develop further their professional • An automated applicant tracking system knowledge and skills. to better utilize Internet recruiting sites Tyson Foods has established an Organizational • An enhanced employment record-keeping Effectiveness Assessment. The purpose of the process assessment is to solicit Team Member feedback • Expanded search capabilities for both regarding Tyson Foods’ effectiveness in fulfilling candidates and recruiters its business strategy and mission. The assessment Focusing on college Recruitment focuses on key business elements such as: We hire a number of Team Members from • Innovation and operational excellence college campuses. Our Executive Diversity • Inclusion Business Council directly supports five colleges • Decision-making and universities throughout the country. We • Customer focus also support the Historically Black College Classics program, and our partnership with the • World-class talent development Junior Military Officer recruiting program is a Team Members looking for advancement will have significant source of diverse candidates for all a new opportunity as the Pipeline Management areas of our business. Process (PMP) is implemented throughout most of We sponsor a recruiting room in the Career the company. Primarily focused in the plants, the Placement Office at the University of Arkansas. PMP provides a system to identify Team Members Here we conduct mock interviews to help from first-level supervisors to upper management Team Members throughtout the prepare students for job interviews. In addition, as candidates for development potential and company may become candidates leaders from Tyson Foods participate in classroom possible advancement opportunities. for the PMP program. teaching opportunities through case studies, projects, and lectures. 16 Tyson Foods, Inc. 2007 susTaInabIlITy RepoRT
  17. 17. payInG a coMpeTITIVe WaGe Regional Recruiting Tyson Foods offers its Team Members one of Finding a qualified supply of labor is an ongoing the best benefits packages in our industry. Our challenge for the company. With a renewed focus compensation package is competitive and affords on our Regional Recruiting program, we have been our Team Members the opportunity to acquire a able to make significant achievements in staffing stake in the future of our company. Our health- hard to fill positions and locations. The Regional care benefits focus on all aspects of lifestyle Recruiting program identifies qualified individuals, changes, good health, disease prevention, and usually from large cities, who are willing to relocate education. These programs not only ensure our to rural areas where our plants are located. The Team Members are properly compensated for company provides relocation assistance, job skills their workplace contributions, they also support training, and benefits coverage. As an example of the broad-ranged health and well-being needs of this program’s success, our Louisa County and our Team Members. Storm Lake, Iowa, plants achieved full capacity through this program. compensation benefits ensuRInG eMployMenT coMplIance and We conduct wage surveys and review cost of elIGIbIlITy living indicators and community norms regularly. At $10.83 per hour, our average hourly rate is Tyson Foods is committed to equal opportunity substantially higher than the national minimum in all aspects of employment. Our company wage. Team Members are given the opportunity maintains a strict policy prohibiting any kind of to have a financial interest in our continued unlawful harassment or discrimination, such as success through our stock purchase plan. The that involving race, sex, religion, color, age, plan allows Team Members to contribute up to national origin, veteran’s or disability status, or 20 percent of their pay to stock purchase. After a sexual orientation. This policy applies to anyone year of service, the company will match a portion in the workplace including managers, supervisors, of the first 10 percent contributed. co-workers, vendors, clients, or customers of Tyson Foods. Tyson Foods requires 100 percent of Tyson Foods’ Retirement Savings Plan helps our its Team Members annually to attend approximately Team Members fulfill one of their most important Thanks to Tyson Foods’ policy one hour of anti-harassment and anti-discrimination goals – financial security. In addition to the in support of the U.S. military, training. The company considers harassment, company match and payroll-deduction features, Team Member David Rook did discrimination, and retaliation to be serious issues we now offer three new plan benefits to help our not suffer financially when he and has invested considerable resources to prevent was called to serve with his Team Members manage their investments: National Guard unit in Iraq. The their occurrence. • Three age-based investment funds that policy provides differential pay Tyson Foods is also committed to ensuring offer a moderate-risk portfolio appropriate for all Team Members called to all its hiring locations consistently follow the active military duty. to an individual Team Member’s age Tyson Foods Employment Eligibility Policy “I’m thankful for the company’s • An InvestForward program that automatically and maintain compliance with the Immigration position on differential pay. Our places a Team Member in the appropriate Reform and Control Act (IRCA) of 1986 and family would have faced financial age-based fund and manages annual trouble without it,” Form I-9 regulations. We will not tolerate any rebalancing David Rook person knowingly hiring or allowing anyone to complex safety manager, • GuidancePlus, an online tool, which continue working if he or she is not authorized warehousing/distribution helps Team Members set retirement goals for employment. The company has therefore Springdale, Arkansas and determine if their contribution level is established procedures to ensure its compliance Served in Iraq July, 2005 to sufficient for meeting these goals with all federal and state laws regarding the November, 2006 verification of employment authorization. Strict training, certification, record keeping guidelines, and third-party verification processes are used regarding I-9 forms. The company also participates in the Department of Homeland Security’s E-Verify Employment Eligibility Verification Program. 17
  18. 18. Talent Review and succession planning Health care A Talent Review and Succession Planning Tyson Foods understands the importance of initiative in each business unit and shared services having access to affordable and comprehensive department provides a way to identify our human health care coverage. We require that all Team resource needs as they relate to our business Members have health care coverage through strategy and to offer the right development either the company-sponsored health plan or resources to meet those needs. through a spouse’s employer’s plan. Therefore, 100 percent of the company’s eligible Team Members Individual development plans have health care coverage. In addition to the approximately 15 percent of Our goal is to partner with our Team Members to our Team Members who are required to receive help them become better health care consumers regular performance and career-development and to make better lifestyle choices. Several reviews, many of our Team Members use an enhancements became effective in January 2008: Individual Development Plan (IDP) to create a • Tobacco Cessation Program road map to reach career objectives. An IDP is used to strengthen areas identified for growth • Life and AD&D Insurance option for Team and to “fine tune” already well developed skill Members not enrolled in the Tyson Foods sets. Team Members are encouraged to share Group Health Plan their IDP with a supervisor or mentor who may • Option for additional Voluntary Life be able to help them achieve their goals more Insurance coverage completely and quickly. Team Members are also • Option for additional Voluntary AD&D encouraged to take advantage of the many coverage resources Tyson Foods provides that can aid • Discount on Diabetic Test Strips in their professional development. • Generic Medication Incentive leadership college in springdale, arkansas • Disease Management Program Tyson Foods Leadership College is open to all • Free Personal Health Risk Assessment management and management-support Team Members. It provides a curriculum focused • Health Matters Condition Management “My wife stays at home with our on developing six core-leadership attributes: Program two children, and with one income, business acumen, leadership, strategic agility, the education assistance has been a TeaM MeMbeR TRaInInG and deVelopMenT highly valued benefit for us. Tyson communication, developing self and others, and Foods’ commitment to professional The goal of Tyson Foods’ Leadership and understanding Tyson Foods. growth and development and work- Professional Growth department is to create an family balance is a value that is hard educational assistance program integrated talent-management process that to replace. I’m in the last semester During the 2007 fiscal year, 267 Team Members identifies, develops, deploys, and retains leaders of a three-year master’s degree in took advantage of the company’s Educational public administration. That degree within our organization. The department provides a has opened my eyes to a different Assistance Program, with the company’s overall variety of services and programs to help prepare our perspective on how Tyson Foods investment totaling just over $523,000. The Team Members for future leadership challenges. relates to government and how laws Educational Assistance Program encourages and politics play into our everyday and enables Team Members to increase their business.” knowledge, develop skills, and further their Mike Chapman education. The company will reimburse eligible manager of process safety Team Members 75 percent of the cost of tuition, management and risk management programs services books, and fees, up to $3,500 maximum for a calendar year for qualified classes. 18 Tyson Foods, Inc. 2007 susTaInabIlITy RepoRT
  19. 19. Tyson Foods’ chaplain services leaders into champions Initiated in 2000, the program provides Leaders into Champions (LINC) is a two-year compassionate pastoral care and ministry to intensive development opportunity designed Team Members and their families, regardless of to empower our high-potential leaders as their religious affiliation or beliefs. More than 120 organizational and industry champions who chaplains representing 31 different faith group contribute significantly to the performance affiliations support the program. Team Members and profitability of Tyson Foods and expand talk in confidence with chaplains about many the company’s depth of influence and leadership issues including good times or stress concerns. within the industry. Our chaplains also provide premarital counseling, Team Members nominated into the program conduct weddings, celebrate when new babies participate in a rigorous selection process. The are born, and conduct funerals for our Team first year of the program focuses on the Team Members and their families. Chaplains also provide Member’s own personal-development planning, cultural support and help integrate new workers peer-to-peer development sessions, coaching who may be struggling to adapt to new and from a mentor, and monthly learning sessions led different cultures. by a senior leader of the company. In year two, LINC members may participate in a number of outplacement assistance different developmental experiences including Like many organizations in today’s marketplace, job rotation, action learning teams, or special Tyson Foods has faced economic and financial project assignments. pressure. From ideas submitted by our Team caRInG FoR ouR TeaM MeMbeRs Members, our 2006 Cost Management Initiative (CMI) realized over $265 million in cost reductions Tyson Foods cares about its Team Members. and savings. Unfortunately, some Team Members’ We recognize that our Team Members may positions were eliminated as part of this experience personal problems such as health streamlining. For those affected, the company concerns, marital and family issues, grief and provided an enhanced severance package and death, substance abuse, or job and financial outplacement assistance. Our outplacement concerns. If unresolved, these issues may assistance efforts included: affect emotional health. It is our goal to • Resume writing and interviewing skills provide a confidential resource for our Team training Members to help address these issues. • Counseling services from the Chaplaincy Program • On-site employment interviews with local companies Tyson Foods was honored to receive the 2007 International Spirit at Work Award from the International Center for Spirit at Work, a worldwide non- profit organization for people who are integrating spiritual values into the workplace. Tyson Foods was one of seven organizations that received the award. 19
  20. 20. ReWaRdInG and RecoGnIZInG communication with Team Members ouR TeaM MeMbeRs Tyson Foods’ culture is built on open and frequent In 2006, Tyson Foods formed a task force to communication. We engage in several different explore the types of reward and recognition our types of communication to ensure our Team Team Members value. The goal was to design a Members have access to important information. reward and recognition program that: As an example, each month a different business leader from our company hosts a “Brown Bag • Encourages extraordinary behaviors that Luncheon”, which is also viewable online. In create positive business results addition, our Executive Leadership Team routinely • Drives the goals and strategies of the produces video messages updating Team Members organization on recent initiatives and projects. We have also • Is a catalyst to transform our culture and Team Members participate in a round established: table discussion. enhance Team Member involvement • Tyson Help Line for Team Members to report Internal feedback from the task force overwhelmingly concerns or complaints regarding employment, indicated business units and departments wanted workplace issues, discrimination, or harassment the flexibility to create their own programs specific • Feedback Forum where Team Members can to their functions. They wanted their programs submit anonymous questions and have them to be sincere and simple, meaningful, adaptable, answered on our company intranet relevant, and timely. As a result of this effort, many departments have put together their own task forces and created unique reward and recognition programs. • Our Human Resources department created the Think PIC award which is presented quarterly and recognizes Team Members who go above and beyond the qualities of being proactive, innovative, and customer focused. • The Information Systems department’s Captain Reboot award incorporates humor, spot awards, and team communication to recognize great service and enhance the department’s culture. • The Tyson International Great Efforts and Results (TIGER) award recognizes a Team Member’s above-and-beyond contribution to the success of the International team. The award recognizes the way the Team Member accomplished their success using collaboration, customer service, and other key leadership attributes. 20 Tyson Foods, Inc. 2007 susTaInabIlITy RepoRT
  21. 21. BuiLdiNg TruST EvEry dAy Food safety . . . . . . . . . . . . . . . . . . . . .22 Maintaining Consumer Trust animal Well-being . . . . . . . . . . . . . . .28 Treating Animals Right environmental, Health, and safety . . . . . . . . . . . . . . . . . . . . . . 32 Making a Difference International . . . . . . . . . . . . . . . . . . . .42 Sharing with the World
  22. 22. Food safety Maintaining Consumer Trust 22 Tyson Foods, Inc. 2007 susTaInabIlITy RepoRT
  23. 23. As an industry leader, Tyson Foods has been committed to providing safe, quality foods people can trust for more than 70 years. We have a history of developing innovative and effective food safety systems. These systems have been recognized as gold standards in the industry and as state of the art by government regulators. These innovations are essential in maintaining the confidence customers and consumers have in the Tyson Foods brand. Our commitment to innovation helps ensure each product leaving a Tyson Foods plant meets or exceeds customers’ and consumers’ expectations. Tyson Foods participates in a number of national food safety and quality programs, as well as its own programs each year. The company’s foodWISE® program helps educate our customers and consumers on our general food safety practices. In 2006 and 2007, we heard from approximately 250,000 customers through our IN TOUCH WITH TYSON program. Our consumer input is invaluable in helping us develop safe, quality food consumers want. In 2006, we converted our marinated fresh chicken to 100% All Natural™. QualITy aT THe FaRM • We produce chicken feed at our 33 U.S.-based Food and Drug Administration registered We take steps at every level to make sure each feed mills. We use ingredients from suppliers product meets the company’s rigorous safety and that are members of the Animal Protein quality criteria. In fact, everything in our business Producers Industry. Our feed typically consists is designed with these two factors in mind, of grain, vegetable proteins, and other natural beginning at the farm and continuing all the way ingredients. These ingredients are tested by to the dinner table. our Quality Assurance laboratories to ensure A solid commitment to protecting animal health safety, quality, and nutritional value. Steroids provides a foundation for the quality of meat and growth hormones are never used in any produced. Below are examples of how this of our chicken feed, as prescribed by the commitment is fulfilled. federal government. • Soil and water quality tests are performed • Before being transported to a processing at all company-owned and independent facility, we test every flock of chickens to poultry farms before houses are built. Each ensure they are pesticide free. Pesticides that chick receives an immunization regimen to could leave a residue in and around poultry prevent illness at the farm and each flock of houses are prohibited. In addition, we check chickens is regularly evaluated for healthiness. every flock of chickens to ensure good health. • Strict biosecurity measures are implemented This includes our decision in the fall of 2005 to prevent the spread of disease among to expand on-farm avian influenza testing to farms and animals. We perform thousands include pre-screening all flocks prior to of tests each week to confirm the health of transport to processing facilities. our animals. 23
  24. 24. ensuRInG saFe, QualITy Food aT We also partnered with Texas A&M University to ouR FacIlITIes offer two of the few industry-sponsored training programs approved by the International HACCP From our laboratories, to our product and process Alliance. These programs include case studies and monitoring programs, to our Hazard Analysis and small working-group sessions that provide a working Critical Control Point (HACCP)-verification processes, knowledge of HACCP. our dedication to safe, quality food is evident in We also offer certification support training for our the programs and controls we have to protect Team Members. This support helps them prepare our products. for certifications from organizations such as the Food safety and Quality assurance Team American Society for Quality’s Certified Quality Engineers and Auditors and the National Restaurant Our Food Safety and Quality Assurance (FSQA) Association’s Educational Foundation. Team consists of approximately 2,500 FSQA Tyson Foods professionals. This team partners with Food safety laboratories and Research operational units to ensure the safety and quality Our Food Safety and Laboratory Services of every product. FSQA Team Members monitor Network is recognized throughout the industry the execution of our food safety and quality as a research leader in serological testing, food assurance programs including: chemistry, microbiological testing, food safety • Food safety and sanitation research, and environmental water testing. Our • Policy adherence and regulatory compliance accreditations include: • Laboratory services and statistical support • U.S. Department of Agriculture (USDA)-Food Saftey and Inspection Services (FSIS) Food • Product and process performance Chemistry • Good Manufacturing Practices • USDA-FSIS Pesticide Analysis • Food safety and quality training • USDA-Agricultural Marketing Service Russian The safety of our products is closely monitored Export/Chemistry and Microbiological Testing by a company Food Safety Team located at • National Poultry Improvement Plan for Testing each facility. These multi-departmental teams Avian Influenza, Mycoplasma synoviae, and systematically evaluate key aspects of the Mycoplasma gallisepticum production processes to prevent potential food safety issues. The Food Safety Team then works • USDA-Animal and Plant Health Inspection with the facility to develop, implement, and Service for Salmonella Analysis monitor controls and procedures to drive continuous improvement. A key success factor for continuous improvement is training. Our Team Members participate in ongoing food safety and quality-assurance training. For example, in partnership with the University of Arkansas, we developed the Food Safety Training and Education Initiative. This initiative provides courses on key food safety Tyson Laboratory Services Network topics such as: includes 18 company-owned and operated laboratories throughout • Food safety management the United States. • HACCP • Food processing and statistical process control 24 Tyson Foods, Inc. 2007 susTaInabIlITy RepoRT
  25. 25. statistical support Our award-winning laboratory network is composed of 18 company-owned and operated laboratories Our Statistics Group provides Statistical Process across the country, including a 25,000 square-foot, Control (SPC) training and support to the company, state-of-the-art food testing and research laboratory its subsidiaries, and the food industry as a whole. at our World Headquarters in Springdale, Arkansas. This group also supports our continual improvement The Springdale laboratory is dual certified under efforts, partners with our sales teams and customers the International Organization for Standardization to address potential quality issues and functions (ISO) quality management system standard ISO as an industry resource for research projects that 9001:2000 and the ISO/International Electrotechnical provide statistically valid experiment results to Commission (IEC) 17025 standard for the competence USDA. The group partnered with our facilities to of testing and calibration laboratories. In addition, establish SPC programs to: seven other company-owned regional and • Reduce processing errors and waste corporate laboratories are certified under the • Control and validate critical HACCP limits same ISO/IEC 17025 standard. • Maximize finished product quality The company also has 58 plant-based Quality Assurance laboratories. All tests conducted in Food deFense these laboratories are thoroughly detailed in Tyson Foods takes extraordinary measures for the company’s Laboratory Manual. A 3½ day protection against deliberate acts of food product microbiology and chemistry course is offered tampering. We require all facilities and co-packers quarterly for management personnel and laboratory to conduct vulnerability assessments. From this technicians located in our processing and rendering assessment, each facility then develops and plants. Regularly scheduled audits of these maintains a site-specific food defense plan. laboratories underline our continuing commitment This plan identifies the measures that will be to quality. implemented to avoid risk involving deliberate Our commitment to food safety is not a point of product tampering. We also require that each competition between manufacturers. We openly facility develop a response strategy in the event a share our food safety research and technologies threat to the food products they produce is made with peers and colleagues. With the support of or detected. our Laboratory Services Group, we partner with government, academia, trade associations, and other industry members to sponsor food safety research. Tyson Foods has made substantial contributions to research covering E.coli O157:H7, Salmonella, Avian Influenza, Listeria monocytongenes, Campylobacter, and other public health issues and initiatives aimed at improving food safety. The Tyson Foods Laboratory Services Group is also focused on our future food-safety and business needs. Whether it’s marshaling resources to develop rapid methods for new analytes, such as melamine, or redeploying resources in support of our new business ventures, such as renewable diesel fuel, the Laboratory Services Group is available to provide the resources needed to support our food-safety and quality promises. 25
  26. 26. coMMunIcaTInG WITH consuMeRs Internal and external Food safety audits and and cusToMeRs Inspections Even after our products leave our direct control, Our facilities receive routine internal quality our quality assurance service continues. We are assurance and food-safety assessments. These committed to educating consumers about the assessments are conducted by quality control importance of safe food handling and healthy managers. They focus on: eating. We listen to our customers and their • Critical food-safety elements feedback about the products we produce. • Sanitation performance educating our consumers • Company policy adherence Tyson Foods’ foodWISE® program helps educate • Regulatory compliance our customers and consumers on the comprehensive New Trimmed & Ready™ packaging. Each facility is audited in accordance with the food safety practices in all areas of our business. company’s Comprehensive Food Safety Audit This program provides tips to bring food-safety Program. These internal audits are composed of techniques into the home. The program encompasses audit Team Members who are independent of items such as tips for buying meat, food and meat the location being audited. handling techniques, Team Member training, food Our facilities receive periodic independent safety at our plants, and the company’s laboratory third-party audits of their food-safety systems. practices. Information about the foodWISE® These reviews, conducted by or on behalf of program is communicated through consumer our customers, are performed by nationally events, product packaging, and our Web site recognized independent auditing firms. (www.tyson.com). Government agencies also provide independent eating Healthy inspection reviews of our production facilities. In 2004, we were one of the first companies in For example, the USDA-FSIS engages in on-site the industry to remove added trans fats from our inspection of all of our meat and poultry plants. breaded poultry products. In 2006, we converted Furthermore, Tyson Foods has four non-USDA our marinated fresh chicken to 100% All Natural™, facilities which are regulated by the Food and which means it is minimally processed and Drug Administration (FDA). FDA inspectors perform contains no artificial ingredients. We are proud to routine inspections at each of these facilities. have the resources residing in our Tyson Discovery Center that enables us to offer products and benefits our consumers and customers deserve. While our marinated chicken wing sections do have a higher sodium level than non-marinated, we are providing the benefit of tenderness and juiciness to consumers at approximately half the sodium level of competitive products. 26 Tyson Foods, Inc. 2007 susTaInabIlITy RepoRT

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