2. CONTENTS
INTRODUCTION 01
WE ARE RESPONSIBLE OUR COMMUNITY SOCIAL LEVEL 02
TO ON A
WE RESPONSIBLE TO OUR COMMUNITY ENVIRONMENT 08
ARE REGARDING OUR
WE ARE RESPONSIBLE TO OUR CUSTOMERS 12
WE ARE RESPONSIBLE TO OUR ASSOCIATES 16
WE ARE RESPONSIBLE TO OUR SHAREHOLDERS 20
3. INTRODUCTION
1954...2004... 50 Years. Yes, the year 2004 was For many years we have believed that A Culture of
Lennar’s 50th year in business. 50 years ago, our Responsibility means that we are responsible to four very
founders were struggling to build a fledgling important constituents.
homebuilding venture into an ongoing business. Yet
• We are Responsible To Our Community
even in those earliest days, they focused on a very
• We are Responsible To Our Customers
simple business philosophy, and a very simple
operating standard. Both have remained constant and • We are Responsible To Our Associates
unwavering throughout our corporate life.
• We are Responsible To Our Shareholders
Our business philosophy is that Quality,Value and
Integrity is the basis of all that we do. Our operating And thus,we are a broader spirit,focused on all four
standard is equally simple... Always do the right thing, constituents, imbuing, inspiring, and continually
for the right reason. reinforcing that broader spirit into every Lennar
These two guiding principles have not only been Associate,altering ourselves culturally and expressing this
constant and unwavering, they have been at the spirit as the standard to which we hold ourselves
forefront of the way we manage,the way we grow,and accountable. This very spirit makes us continually ask
the way we achieve our results. ourselves, “How can we be even better, in all of our
To assure that we convey these principles clearly responsibilities, to all of our constituents?” This spirit
and consistently to all those who work for, and with, defines us as uniquely Lennar.
Lennar, we have developed a very unique Our goal, very simply, is to make the world a better
corporate Culture. It is this Culture that guides us, place by our having been here, for our Community, for
inspires us, enables us to communicate, and identifies our Customers, for our Associates, and for our
who we are. Shareholders. In this Corporate Responsibility Report,
When you peel away all the layers of our we share with you what we believe our responsibilities
Culture and look at its very essence, it is, to our constituents are, and the ways that we believe we
very simply, A Culture of Responsibility. Ours is A are meeting these very important issues. We humbly
Culture of Responsibility in which every one of present our progress, knowing full well that we have
our approximately 12,000 Associates is called upon each much more yet to accomplish. With an ongoing pledge
day to have Quality,Value,and Integrity serve as the basis to raise the bar ever higher for ourselves, we accept this
of all that they do, and to always do the right thing, for important responsibility.
the right reason.
In the Lennar Culture,we profoundly believe that
developing a Community, providing financing for, and
WE ARE RESPONSIBLE FOR
building a home is an enormous responsibility. In our
Acts of Caring
Culture it is more than just a house and a homesite that
builds a home. What builds a home is not only
structural, not just bricks and shingles and concrete,
Environmental
but the entire package defining our Homebuyers’lives. Value
Preservation
• The quality of the Community in which they live,
• The quality of the Environment in which they reside,
Shareholders Community
• The attitudes of the Lennar Associates who
take care of their needs,
Quality
Hiring
• And the financial strength of their Homebuilder to be there, Process
with a warm heart and a strong balance sheet, through
thick or thin, if something goes wrong.
Customers Associates
Our Cultural Values are to deliver each and every
home we build with all of these pieces in place. Our
Culture and the nature of our business dictate,
Customer
Training
mandate, and call to us, to be more than just a profit Experience
center. They motivate us to elevate the “who we are”
spirit,into a “what we do”spirit. They demand that we
Safety
incorporate good Community and environmental
practices into good business practices.
01
4. WE ARE RESPONSIBLE TO OUR COMMUNITY
ON A SOCIAL LEVEL
Seth Strudler, long-time Associate and
inspirational Lennar Culture leader, observed that
“We care for a lot of people...
and they need us.”
5. W We consider our Community to be every city ongoing needs of the communities in which
across America where we live and conduct we live and work. The primary mission of our
business. Our Community has been very good to Foundation is to find organizations that assist
us during our 50 years. We believe that “doing the people who are less fortunate, and are
right thing for the right reason,” means we are providing those people an avenue to enter into
responsible to give back to our Community, the mainstream of society. We find organizations
quietly and without fanfare – to give not just by that “teach people how to fish.” The Lennar
giving money, but to give of our time and of our Foundation also funds medical research,
hearts, on a continuing and connected basis, to especially in the areas of cancer research
help make our Community a better place because and treatment.
of our involvement. Our Culture reminds us that Each year, Lennar donates one percent of
“We care for a lot of people and they need us.” As a our after tax net profit to the Lennar
result, we focus our Community efforts on those Foundation. In 2004, that amount (based on
who may not be able to help themselves – children, Lennar’s 2003 net income) was $7.5 million.
inner city neighborhoods, education, the The Lennar Foundation then contributes at
handicapped, the ill, the homeless. least 50 percent of the funds it receives each
Our philosophy of giving back to our year back to our Community. In 2004, the
Community is based on an ancient proverb,“Give Lennar Foundation gave back over $5.0 million
a person a fish and you feed him a meal. TEACH dollars to our communities. Based on our net
him how to fish and you feed him for a lifetime.” income of $945 million in 2004,our contribution
As a result, our Giving Back to Our Community to the Lennar Foundation will be at least $9.45
programs are often focused on helping people million in 2005.
Our Focused Acts of Caring – The
learn better life skills, and ways to help them into
mainstream society. giving back process is not just about giving
We believe that being responsible to our money. It is about giving of ourselves and
Community also means working to protect the making our contributions really count through
quality of our environment, both during and after our individual involvement. It is a combination
the construction of our homes. It means to look of being able to provide great financial support
forward to meeting with the members of our for organizations that are helping to change
Community, with the buyers of our homes, with lives – and at the same time giving our time
our friends and neighbors, because we know we and energy to those organizations to help
are meeting our Community social and them achieve their goals.
environmental responsibilities, AND delivering a As part of the Lennar Culture, each
quality work product. December, our 67 Homebuilding Divisions, 29
Please allow us to share with you some of the Land Development Divisions, and 35 Financial
ways that we meet our responsibilities to Services Divisions across the country replace
our Community. the usual corporate Holiday Parties celebrating
The Lennar Foundation – The Lennar “us,” with Random Acts of Caring events
Foundation is the umbrella under which much of helping others, thus devoting time and dollars
our Giving Back to Our Community is to giving back to their Community. In the most
accomplished. Our Foundation was created in recent years, we have been transforming our
1989 as the vehicle for Lennar to address the Random Acts of Caring, a one-time Holiday
03
6. Season event, into Focused Acts of Caring, in which each Division training and placement, and numerous other “learning how to fish”
adopts a local charity not just for the one Holiday Season event, programs. Through our Focused Acts of Caring,we are finding,adopting,
but for the entire following year, maintaining a continuing and and working with, on a connected ongoing basis, organizations that are
individually connected relationship,building futures for those who may focused on accomplishing these same objectives.
be less fortunate. In 2004, our Divisions across the country, often joining forces and
This mission of our Focused Acts of Caring is to help people learn
working together on their Focused Acts of Caring, adopted over 50
to help themselves by building bridges to a productive life. Examples
organizations and touched many lives across America. Complementing
of how we do this are many: helping the homeless to
the thousands of hours of individual Associates time invested, our
re-establish themselves with jobs and a place to live; aiding young
Divisions also spent over $700,000 in aggregate on their Focused Acts
people with a record of delinquency to rehabilitate themselves and
of Caring activities. This $700,000 was in addition to the $5,000,000
establish productive lives; helping victims of abuse overcome the
invested in our Giving Back to Community programs of the
effects of that issue and recover their self-esteem; assisting the mentally
or physically challenged to achieve productive lives through job Lennar Foundation.
OUR 2004 FOCUSED ACTS OF CARING ADOPTED ORGANIZATIONS INCLUDE:
A Child's Place City of Hope Hope Family Services SCV Boys & Girls Club Foundation
Homeless Children's Advocate Helps Treat and Prevent Domestic Violence
Cancer Center for Research, Prevention Inspires and Enables Youth to Become
Charlotte, NC Bradenton, FL
and Treatment Responsible, Productive, Healthy, Citizens
Los Angeles, CA Santa Clarita , CA
Alliance For Children Interact
Abused Children's Advocate Works to Stop Violence and Supports
COC Foundation / Henry Mayo SCV Chamber Education Foundation
Ft. Worth, TX Victims of Violence Works to Improve Education
Newhall Memorial Health Fund
Raleigh, NC
Community Hospital and Trauma Center Santa Clarita, CA
Alternatives for Domestic Violence
Valencia, CA
Helps Stop Domestic Violence Jackson Memorial Foundation - Senior Helpline Services
Riverside, CA Schiff Liver Institute
Community Partnership for Assists Seniors towards Independent Living
The Center for Liver Disease
the Homeless Lafayette, CA
American Red Cross -
Miami, FL
Helps Break the Cycle of Homelessness
Upstate South Carolina Chapter Special Olympics
Miami, FL
Humanitarian Service Organization Kids In Distress Works to Develop Skills in Special
Greenville, SC Abused Children's Advocate
Council for Educational Change / Olympic Athletes
Ft. Lauderdale, FL
S. FL Annenberg Challenge Houston, TX
B.A.S.E. Camp
Works to Improve Education
Supports Children (and their families) Leap Learning Systems Street Teens
Davie, FL
with Cancer Developing Literacy and Accelerate Supports Youth Living on the Street
Winter Park, FL Academic and Social Success
Families First Las Vegas, NV
Chicago, IL
Strengthens Parent / Children
Battered Women's Shelter Texas CASA
Relationships
of Bexar County Make-A-Wish Foundation of Abused Children's Advocate
Denver, CO
Helps Stop Domestic Violence New Jersey-Wishing Place Facility Austin, TX
San Antonio, TX Grants Wishes to Children with
Florida Hurricane Relief Fund
The Arizona Burn Center
Life-Threatening Illnesses
Provides Restoration Aid for
Bay Point Schools Cares for and Treats Burn Victims
Union, NJ
Hurricane Victims
Boarding School for Moderate-Risk Phoenix, AZ
Tallahassee, FL
Adolescent Boys Mankato State University-Construction
The Florida Center for Child
Miami, FL Management Scholarship
Founders Academy of Los Angeles
& Family Development
Construction Management Scholarship
Helps Educate Children from Homes
Bayview Hunters Point Multipurpose Supports Children and Families who are
Mankato, MN
with Substance Abuse
Senior Services Abuse Victims
Los Angeles, CA
Assists Elders in Maintaining Mustard Seed School Sarasota, FL
their Independence Educates Homeless Children and
The Gabriel House Inc.
The Ivymount School
San Francisco, CA Prepares them for Public School
Rescues and Rehabilitates
Helps Children with Disabilities Reach
Sacramento, CA
Abandoned Children
Big Brothers Big Sisters their Highest Level of Development
Ft. Myers, FL
Child Mentoring Program Nevada Cancer Institute Rockville, MD
Tampa, FL Cancer Research, Prevention, Detection
Guadalupe Center
The Reach Fund
and Treatment
Improves Quality of Life for People
Brevard School Foundation Provides Services to Youth, Seniors
Las Vegas, NV
of all Ethnic Backgrounds
Supports Public Education and Families
Cincinnati, OH
Viera, FL Poverello House Roseville, CA
Provides Shelter and Aid for the Hungry
Habitat For Humanity
Bridgewood Farms The Success Center
Fresno, CA
Provides Affordable Housing to
Develops Potential in Individuals with Works to Constantly Improve Education
Low-Income Households
Mental Retardation Richmond Perrine Optimist Club Vallejo, CA
Sacramento, CA
Conroe, TX Provides Education and Aid for
United Way of Miami-Dade County
At-Risk Youth
Habitat For Humanity
Candlelighters Childhood Cancer Humanitarian Service Organization
Perrine, FL
Provides Affordable Housing to
Foundation Miami, FL
Low-Income Households
Supports Children (and their families) Sacramento Children's Home
Village of Hope
Houston, TX
with Cancer Works to Stop Abuse and Supports
Family-based Homeless Shelter
Austin, TX Victims of Abuse
Happy Hill Farm Children's Home
Santa Ana, CA
Sacramento, CA
Provides Care for Children who are in
Children's Home Society
Volunteers of America
Crisis or Academically and Socially
Multi-level Social Services for Children Safehouse
Provides Services to Those with Special
Disadvantaged
and Families At-Risk Youth Advocate
Needs Throughout the Community
Granbury, TX
Tampa, FL Riverside, CA
Sacramento, CA
Hillview Acres
Children's Home Society San Diego Children's Center
Treatment Center for Young Windwood Farm Home for Children
Multi-level Social Services for Offers Education and Therapy to At-Risk
Works to Prevent Child Abuse
Abuse Victims
Children and Families Children and Youth
Ft. Lauderdale, FL Chino, CA San Diego, CA Awendaw, SC
7. Our 2004 September 11th Memorial Grant
Other Foundation Acts of Caring – In 2003 and 2004,
The Bay Point School – is an alternative year-round boarding
our Foundation also committed significant assistance to the
school that provides educational, vocational, and counseling services
following organizations: to troubled teenage boys whose behavior has led them into
antisocial or criminal activities. The Bay Point School also operates a
half-way house,as many of its graduates do not have families to return
• $500,000 to the Founders’ Academy,
to upon graduation. The mission of the Bay Point School is to build a
a Los Angeles inner city
better and safer Community through positive peer pressure and
youth mentoring program education, one youth at a time. The typical Bay Point student is a
young man between the ages of 13 and 18. Typically, they have
grown up in non-functioning families, have performed poorly in
• $500,000 to the Schiff Liver Cancer Institute,
school and had behavior problems. Many have been involved in
University of Miami Medical School using or selling drugs,stealing cars,or burglaries. Most of these boys
have been arrested and been through the judicial system. In lieu of
being sent to jail, Bay Point gives them a second chance and
• $500,000 to the City of Hope,
provides them with the tools they can use to turn their lives around.
a cancer treatment center in California
• $500,000 to the Community Partnership for the
Homeless, South Florida
• $500,000 to the Council For Educational Change,
South Florida
• $500,000 to the Florida State
Hurricane Emergency Relief Fund
• $500,000 to The Bay Point School,
a juvenile rehabilitation school in South Florida
• $250,000 to the Nevada Cancer Institute.
Our 2004 September 11th Memorial Grant – In
One of the unique concepts at the Bay Point School is the way it
memory of the tragic events of September 11, 2001, the Lennar
approaches changing its students’ behaviors. Bay Point develops a
Foundation established a special “September 11th Memorial” positive peer culture, where students who have accomplished
annual grant. Each year, our Foundation grants $1,000,000 to attitude and behavioral change are encouraged to mentor, tutor and
guide the newer students to take responsibility for their own lives. As
that year’s September 11th recipient organization.
a student proves himself to his peers, his teachers, and the
supervisory staff,he moves up in status,earns privileges and becomes
• 2001 – Our inaugural grant was to the Family and a member of the student government. Bay Point requires each student
to participate in vocational programs that are taught at the school.
Victims of September 11th Fund
Students receive an introduction to the basics of construction trades,
culinary arts, computer skills and landscaping. A student may then
• 2002 – Granted to the University of Miami to establish choose to continue in advanced classes of the vocation that interests
“The Leonard Miller Real Estate Chair of Management” them. As a result of this environment of mentoring, education, and
learning vocational skills to become a self-sufficient member of the
at the School of Business, in memory of our
Community, over 90 percent of The Bay Point School graduates have
Founder who passed away that year.
not commited another crime.
Our 2004 September 11th Memorial grant of $1,000,000 to the
Bay Point School is designated for the construction of a permanent
• 2003 – Granted to The Overtown Youth Center, an inner city
vocational school to replace the portable classrooms used currently.
educational, mentoring and recreation facility in one of Miami’s
Students will have expanded hands-on opportunities to learn the
most challenged communities. skills and become professionally certified in numerous trades in
residential construction. In addition, our Miami Homebuilding
Division has adopted the Bay Point School as their Focused Act of
• 2004 – Granted to The Bay Point School
Caring for 2005, and established the following major goals. First,
in South Dade, Florida.
05
8.
9. in Project Opportunity Builds in Houston,Dallas,
they are creating a program with other South
Tampa, Miami, Tucson, Denver, Colorado
Florida builders and suppliers to raise the
Springs,Fort Collins,and Santa Ana. We will build
balance of the funds needed to build and
a Project Opportunity home in Minneapolis
provide ongoing support for the Bay Point
in 2005.
vocational school. Secondly, our Miami Division
Our Project Opportunity Internship
will team up with our Building Partners, our
and Employment Programs – In 2004, we
subcontractors and vendors, to provide the Bay
expanded our Special Olympics involvement by
Point students with internships and to provide
offering internships,and ultimately hiring Special
graduates with job placement so that they, the
Olympians as potential career Lennar Associates
graduates, can become self-sufficient members of
in our Customer Care offices in Houston. We
society. We will be helping the Bay Point School
look forward to expanding this valuable program
teach challenged young men “how to fish”,and thus
throughout our Lennar Divisions.
see our efforts come full circle by helping to change
lives and improve our Community.
Habitat For
Our Project Opportunity – is a partnership
Humanity and the among Lennar, the Special Olympics, and Habitat
For Humanity. The Special Olympics is an
Special Olympics select
international organization dedicated to empowering
one of the cities in
individuals with intellectual disabilities to become
which we have physically fit, productive and respected members
of society through sports training and competition.
homebuilding
Habitat for Humanity is a nonprofit housing
operations and invite
organization providing affordable homes for
our local building and needy families.
Across America, the Special Olympics assists
financial services
children and young adults with intellectual
Divisions to host our
disabilities in finding ways to learn life skills. In
Annual Project addition,there are needy families,often of minority
Lennar Charitable Housing
heritage,who are assisted by Habitat For Humanity
Opportunity Build.
Foundation – In California, we have created
in fulfilling their dream of home ownership. In
the Lennar Charitable Housing Foundation, a
1998, we created Project Opportunity, a unique
financial vehicle giving homebuilders the
partnership among The Special Olympics, Habitat
opportunity to expand and leverage their
for Humanity, and Lennar.
relationships with homebuyers to help meet our
Each year, Lennar, Habitat For Humanity and
country’s significant homeless problem. We
the Special Olympics select one of the cities in
have created an ongoing method for those
which we have homebuilding operations and
fortunate enough to be able to buy a home, to
invite our local building and financial services
have a simple way to assist those who are
Divisions to host our Annual Project Opportunity
homeless. Upon the actual closing transaction of
Build. At each Project Opportunity, Lennar
a home that is sold in a Lennar Charitable
Associates from all the disciplines of corporate life,
Housing Foundation Community, a fee totaling
build from one to eight homes in a one-week
1/20th of one percent of the gross sales price of
period in a local Habitat for Humanity Community,
the home is collected from the buyer on that
assisted by local Special Olympics Athletes.
sale, and then from each new buyer on every
In advance of each Project Opportunity Build,
subsequent resale.Thus each time the home is
the Special Olympics Athletes receive residential
sold, an ongoing, in perpetuity, fee is generated.
construction skills training from veteran Lennar
These fees are limited for use to support
construction Associates. The Special Olympians
organizations that provide assistance for the
also participate in an OSHA 10-hour construction
transitionally homeless or those living in
course as part of their orientation for the build. Our
substandard housing. By having the fee
goal is to educate and prepare the athletes to
generated each time a home is resold,we have
work in an actual construction site environment. In
created an ongoing funding source for assistance
addition, our Project Opportunity Builds give the
to the homeless in the local Community. Lennar
Special Olympians the opportunity to participate
is pleased to have been a founder in this unique
in society in a way that is rarely available to them –
program of giving back to our Community, and
an opportunity for them individually to give back to
looks forward to its expansion in other areas of
their Community.
Lennar Community development.
In recent years,we have completed 21 homes
07
10. WE ARE RESPONSIBLE TO OUR COMMUNITY
REGARDING OUR ENVIRONMENT
We strive to be as proud of our communities
many years after they are completed,
as we were the day we delivered the first home.
11. Protect, Reduce, and Conserve families, our friends, and ourselves, live.
This approach to building communities that
We respect that while the process of
protect,preserve and conserve our environment
building homes and developing communities is
results in the following accomplishments.
both an admirable and a necessary activity in
the American economic picture, we must also
The Preservation and
protect the environment we are blessed to
Enhancement of Wetlands
enjoy. We must work to reduce pollution.
and Wildlife Habitat
We must design to conserve natural resources,
in not only the building process but also in the Wetlands are environmentally sensitive
use and enjoyment of our homes and areas that are critical to our country’s ongoing
communities after completion. We strive to be fresh water supply and to the preservation of
as proud of our communities many years after flora (plants) and fauna (animals), which live in
they are completed as we were the day we the wetlands areas. Working with local, state,
delivered the first home. We want our children and federal entities, we strive to protect and
and grandchildren to enjoy a safe and clean enhance wetlands that could be affected by our
environment. We invest significant efforts and development activities. In some instances, the
dollars in our planning and development wetlands in or adjacent to our development
processes to reach these goals. locations are already in stages of degradation
Our “Review – Do – Review” completely unrelated to our planned
Planning Process development, and our activities will improve
their quality. Our development activities have
The development process starts with
resulted in the preservation or enhancement
planning. And in the Lennar Culture, planning
of thousands of acres of wetlands and wildlife
is accomplished by our “Review - Do - Review”
habitat across our country. We have invested
process, a continuous cycle of reviewing our
millions of dollars in these preservation and
goals for the task at hand, executing the plan
enhancement activities.
that is created, and then reviewing again
after completion, to assure that we
The Mitigation of Wetlands
accomplished our goals and learn from the
In occasional instances the guiding
process so to be even better going forward.
environmental entities and we agree that it is
Our goal in the planning process is the
not practical to preserve a specific wetlands
same whether we are developing a
area and that the environment would be better
Community ourselves or purchasing finished
served by recreating that wetlands area in
homesites from an independent developer. We
another location. This is called mitigation, and
strive not just to have the Community plan
may be desired if the wetlands in question are
meet the minimum requirements of regulatory
already degrading due to climatic changes
agencies which guide the development
in water levels, previous non-Lennar
process, but to have a Community we will be
development, or for a host of other reasons.
proud to have the world know as “A Lennar
Often the mitigation process may result in a
Family of Builders’ Community, a Community
larger and higher quality wetlands area being
in which we will be pleased to have our
09
12.
13. created. We have created thousands of acres of plants from spreading and further degrading the
mitigated wetlands areas,and invested millions of environment. Such plant species vary from area
dollars in these environmental efforts. to area. Some of the more commonly
recognized are Melaleuca trees in Florida and
Kudzu vines in the Carolinas. As part of our
development plans we often devote significant
efforts to noxious and invasive plants removal.
We have removed thousands of acres of such
environmentally undesirable materials, and
invested millions of dollars in these
environmental efforts.
Creating and Dedicating Parks
and Open Spaces
Planning and developing the Lennar way
also means creating effective Community
designs. We strive to deliver value driven homes
while also maximizing open space Community
areas. Careful consideration is devoted to
minimizing the impacts of our homes,roads,and
other development areas. We focus on the
creation and preservation of open spaces and
Community parks to both enhance and buffer
the resulting Community. Careful steps are
taken to place the ownership of open space
and park areas in appropriate Community
associations to assure their ongoing preservation
and maintenance. We have preserved, created,
Creating Lakes, Littoral Shelves,
We have preserved, and dedicated thousands of acres of parks and
and Drainage Collection Areas
created and dedicated open space.
In addition to preserving, enhancing, and
thousands of acres of
Planting Trees and Large Shrubs
mitigating existing wetlands areas, our
parks and open space. development activities often create new lakes,
Perhaps for many of us there are no more
drainage collection, and wetlands areas. We
emotional words regarding the building and
strive to build these in such a manner that they
development of new communities than “cutting
function and support flora and fauna as
down trees.” It is unfortunate that since our first
effectively as if they were created by nature
non-Native American ancestors we have been a
rather than man-made. Often this means
nation clearing trees for farmland to feed ourselves
devoting special efforts to creating littoral
and to create living space to house ourselves.
shelves around the lakes. These areas of
Often the land on which Lennar builds today was
carefully designed shorelines are planted with
previously farmland, and any native tree growth
specific plants that both protect the quality of
was removed long before we became involved
the lakes and support the desired fauna.
with the site. Planning the Lennar way considers
We have created thousands of acres of lakes,
this issue in our process. We work with
littoral shelves, and drainage collection areas
professional landscapers and planners to plant
and invested millions of dollars in these
the appropriate species of trees and large shrubs
environmental efforts.
in locations designed to beautify our
communities, shelter our homes, and enhance
Removing Noxious and our environment. Often our communities have
Invasive Plants many more trees after we complete them than
In many of the areas where we develop, were present before we started. We have planted
non-indigenous plants have invaded the local hundreds of thousands of trees and large shrubs
environment. These are often referred to as in our communities. We know that such trees
noxious or invasive plant species, and are and shrubs clean our air and protect our soils.We
ecologically undesirable. Great efforts are often firmly believe that their growth will both
taken to prevent these noxious and invasive enhance and protect the environment.
11
14. WE ARE RESPONSIBLE TO OUR CUSTOMERS
We respect and cherish
that our workday revolves around building
and financing the homes and communities
in which our Customers will live.
15. A
A common topic of discussion in the halls of “I Care” for Customers,
Lennar is our appreciation that we are so fortunate Expectations I exceed,
to be homebuilders. We greatly value the I promise less and give them more,
professional opportunities we have to earn our Success is guaranteed.
living, to support our loved ones, and to make our
world a better place. We respect and cherish “I Care” to be the best,
that our workday revolves around building and “I Care” that I have tried,
financing the homes and communities in which “I Care” to look at all we do,
our Customers will live.We profoundly understand And look at it with pride.
that our homebuyers’ purchase from us will
Our “I Care” focus is reinforced in each
likely be the largest purchase they will ever make.
of the numerous management training
Our definition of our responsibility to our
programs that we hold every year. It is an
Customers is not just to deliver a quality home, on
integral part of the ongoing inspiration and
time, and at a great value. It is also to provide
education of every discipline of our
an exceptional home buying, financing, and
Community development, homebuilding,
ownership experience. We call this the Customer
and financial services operations. It is at the
experience. Our desire is to create a Customer
very core of our code of conduct.
experience that results in a relationship with
our Customer for life.
Our Responsibility is reflected The Customer Experience
in our goals relating to our Customers continues with independent surveys
We strive to deliver an exceptional Customer We realize that in order to obtain true
experience for each and every one of our and unbiased feedback from our Customers,
Customers – every time. While we may be building we must make sure that each Customer has
thousands of homes each year, we continually the opportunity to share how he or she
remember that the only home of importance to thinks we are doing. We employ J.D. Power
our Customer... is their home. and Associates to survey each Customer who
Our goals relating to our Customers start purchases a home from us. Thus, every
with the “I Care” attitude that we constantly work Customer who wishes to speak to an
to inspire in each of our Associates across independent third party candidly and openly
the country. A profound attitude of “I Care” of their experiences has that opportunity.
is woven into and consistently reinforced through From this independent feedback, we
our Lennar Culture. It is most simply expressed have learned that our Customers’ satisfaction
in the following selected verses of the “I Care” and perception of the homebuilding process
poem, which we use to inspire and educate is greatly based on our ability to communicate
our Associates. with them clearly and consistently.
13
16. Our action in response to their feedback was Directors visits our operating Divisions on a
the creation of our comprehensive Lennar TDH regular basis and inspects our communities and
Touchpoints program. TDH stands for Tickled, homes under construction. Divisions are rated
Delighted and Happy®. It is our goal for every each quarter and ranked each year for the
Customer to be TDH when buying, building, National Heightened Awareness Awards within
TDH
financing, and living in a Lennar home. Our our Company.
CUSTOMER
Additional Quality Assurance Programs –
TDH Touchpoints program is a minimum
TOUCH of fourteen-steps of communication skills Complementing our National Heightened
POINTS that we follow to assure that all of our Awareness Team, we have Regional Quality
Associates understand and are fully Assurance Programs that focus on both regularly
1
“Make a Friend”
educated to fulfill their role in learning, scheduled inspections of our homes during the
communicating, and taking care of, construction process and the quality of each
the needs of our Customers. home at delivery. This team of Associates acts as
Purchase Agreement All of our 67 Homebuilding a second set of eyes for our Customers, utilizing
2
- “Sold” Celebration
Divisions are implementing the an extensively detailed checklist to assure that
TDH Touchpoints program our homes are inspected and tested prior
In Our Design StudioSM to assist them in delivering to delivery.
Homes, Our Homebuyers
the best possible Customer
3
Prepare For Their
experiences – every time. Our
Design Studio Experience
Lennar Financial Services
“Welcome” Call From Divisions are implementing their
The Construction 4
specialized form of TDH
Department
Touchpoints throughout their
Divisions this year.The combination
of independent surveys and
Pre-Drywall Orientation - Celebration 5
our TDH Touchpoints program
has resulted in our achieving
steadily higher J.D. Power Customer
TDH Party Neighborhood
6 Satisfaction scores each year since our
Get-Together
inception of the survey process.
Creating A Lifelong
Home Orientation Tour
7 Customer Experience
- Celebration
Each day we strive to identify and develop
new ways to make our relationship with our
Closing - Celebration Customers not just a one-time experience –
8
but instead, a lifelong experience. That is why
our focus is not just on closing a mortgage and
New Home
delivering a home – but is also on creating a TDH
Consultant Presents
9
Homeowners’ Keys experience that results in our Customers’ desire
- The Lennar Way!
Using Our Size to Provide
to be connected to Lennar for years to come.
Quality and Value to Our Customers
New Home
Consultant Sends Our Responsibility to Our
Note & Pen To Lennar’s growth has given us the buying
10
Customers continues in the
Remind Customers Of
power to give our Customers great value.
Upcoming Survey way we educate our Associates
To maximize the effects of our volume buying
Our “I Care” focus is the first of many power, we created our Net Plus National
TLC 1st Month
11
responsibilities we use to constantly inspire our Purchasing Program in the Year 2000. There are
Visit
Associates. great values to be found when one is buying for
Heightened Awareness – is a profound
Sales thousands of homes per year. By combining the
Associate
focus on some of the most important elements buying power of all of our Divisions across the
Survey 12
of developing communities and building country, and then working with selected national
Reminder
Card & Pen homes. These elements are the quality of our and regional suppliers, we achieve two important
construction, the materials we use, our jobsite objectives for our Customers. We are often able
TLC 3rd Month
cleanliness, and the safety of our construction
13 to increase the quality of the materials that we
Visit
sites through ongoing OSHA compliance. use in building our homes, while at the same
Our National Team of Heightened Awareness time lowering costs.
New Home 14
Consultant Sends
Referral Card
TLC 11th 15
Month Visit
18. WE ARE RESPONSIBLE TO OUR ASSOCIATES
A fundamental tenet of our Lennar Culture is that we believe
that every Associate is both a student and a teacher. It is our
quest to learn from each other and to continually increase the
knowledge of our Associates in all facets of our business.
19. W We believe we are responsible to our Associates, was originally developed a number of years ago and
not just to provide a safe and pleasant workplace, but has been constantly fine-tuned through the years.
also to be the vehicle for our individual Associates to Every New Home Consultant in our Company is
have the opportunity to learn, grow, and prosper, in invited to participate in this program. Our New Home
both their business and personal lives. Consultants learn our Lennar “Personalized Planned
Presentation” which consists of 25 key questions
We Are Responsible to Inspire, Inform, asked to assist our Customers in identifying their
and Educate Our Associates specific home needs, and to help them find
the home that best fills those needs. We created
A fundamental tenet of our Lennar Culture is that
this program because our relationship with our
we believe that every Associate is both a student and a
Customer is not just about selling a home, it is also
teacher. It is our quest to learn from each other and to
about making a friend.
continually increase the knowledge of our Associates
Our Focus on Service Program – This
in all facets of our business. To achieve these goals we
one-week program educates our Construction
have organized our numerous nationwide Associate
and Customer Care Associates on how to better
training programs under the banner of Lennar Success
understand and communicate with our Customers.
University, which we affectionately call LSU.
This program focuses on teaching our Associates the
We continue to evolve and fine tune our Lennar
ability to recognize the different behavioral styles of
Success University Training Programs to meet the ever
our Customers,and thus the best way to communicate
changing evolution of the homebuilding industry, the
effectively and relate to each of those behavioral styles
ongoing needs of our Customers, and the professional
so that we can improve each Customer’s overall home
goals of our Associates.
buying and ownership experience.
Our Lennar Success University Training Programs
LSU Online – LSU Online has been developed to
consist of a three-tiered approach to education. The
offer internet based online professional education
first tier consists of very focused training related to
modules that can be completed at an individual
each Associate’s individual role in building and
Associate’s own pace, and gives us the ability to assist
financing homes. The second tier is an educational
in and track our Associates’ training as it is completed.
program in which our Senior Management Team
The initial modules are in the areas of personal
members interact with Associates to inspire and
development, communication, and relationship
evaluate leadership candidates. The third tier focuses
training. Our LSU Online education program was
on a selected group of Associates,who are identified as
developed and tested with more than 1,000 of our
future leaders, and are invited to participate in
Associates in our Southern California Region. As we
an ongoing LSU Leadership Development
move into 2005, LSU Online is being expanded
Training Program.
nationwide with additional curriculum added in the
The first level of training that occurs is relative
areas of purchasing, construction, sales, accounting,
to the respective disciplines within our business.
They include: and leadership.
Our LSU Sales Training Program, It’s About Lennar Success University for Construction -
Making A Friend – This two-week training program Available nationally and supplemented regionally, this
17
20.
21. Our Management Development Reading
education program raises the level of our
Program – The second tier of training is our
construction techniques and shares best con-
struction practices. This program is taught at each Management Development Reading program.
Division for all levels of Construction Managers, Management Team members across the country
from entry level to senior manager. The national regularly host Book Reading Programs in which they
program is currently being established for online interact with and evaluate individual Associates
use and tracking so that every field Associate will through the group discussion of specific reading
be able to log into the program and complete study materials that have been assigned prior to the
courses for self improvement and advancement. meetings. Currently 1,100 Associates who are
Heightened Awareness – A pro-active field believed to have management potential or are now in
Our pro-active
inspection and training program designed to mid-level management positions participate in this
field inspection and heighten the awareness of our Associates and program. Four books are chosen each year, on
training program is Business Partners in the areas of quality of products, topics such as management styles, motivation
quality of installation, and overall service to our techniques, and business practices, which are then
designed to heighten
Customers. Our National and Regional Directors discussed in our Book Meetings. We study and
the awareness of our of Heightened Awareness accomplish this discuss other successful business entities. The
Associates and through actual field visits. They, together with our host management team members evaluate the
local team members, review current practices in participating Associates after each reading program.
Business Partners in
the field and share our best practices learned
the areas of quality of We are Responsible to our
from across the country.
Associates to help them become
products, quality “I Care” Training Program - Our Customer
our Future Leaders.
Care Associates meet annually for four days.
of installation, and
They review best practices and techniques for Leadership Development Training -
overall service to satisfying our Customers’ needs, and the best use The third and perhaps most exciting tier of our
our Customers. practices of our Customer Care tracking program LSU education program is our Leadership
to achieve quick and consistent follow-up of Development Training. This program is designed to
Customer Care requests. identify some of our most valuable assets: our future
OSHA Training Program - An OSHA approved leaders. The “best of the best” junior and
ten-hour construction safety course created for our field mid-level leaders within our Company are nominated
Associates is taught and sponsored by our National Risk by our Regional and Division management teams
Assessment Team. The course is taught in our individual across the country. The nominees are invited to
Divisions. Approximately 1,000 Associates complete the participate in three-day round table discussions with
course each year. the senior most members of Lennar management,
First Aid and CPR Training Program - held on multiple occasions throughout a one-year
A six-hour first aid and CPR course is taught by our period.In these forums,interactive discussions occur
National Risk Assessment Team. This course is taught in on a wide range of topics, including asset
our Divisions on an ongoing basis. Associates from all management, mergers and acquisitions, purchasing,
disciplines are encouraged to attend. compensation/benefit plans, land acquisition and
After being exposed to specific training that is development, Customer satisfaction, strategic
relevant to their business discipline, those planning, financial services for our Customers,
Associates identified as having leadership potential and our Culture. Graduates of our Leadership
are asked to participate in the second tier of our Development Training fill the future management
ongoing training program. positions throughout our Company.
19
22. WE ARE RESPONSIBLE TO OUR SHAREHOLDERS
...and we believe that we are responsible
to our Shareholders, not just to make a profit each year,
but also to be as socially and environmentally
responsible as we are fiscally responsible.
