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They’re Two sides of The same susTainabiliTy sTraTegy
investing in People,
investing for the Planet
2010 Public rePorT
About This Book
There’s more than one facet to sustainable business,
and at SC Johnson, we believe in taking a holistic
approach. That's why the printed edition of this
Public Report had two covers and two ways to get
to know SC Johnson. For this online edition, we've
compiled the two sections into one handy PDF.
Interested in social progress and public health?
Start reading here. Interested in our environmental
leadership? Turn to the second half of the book and
our alternate cover, on page 25 of this online PDF.
Either way, the whole book is about how SC Johnson
is making the world better.
What’s in This Half?
SC Johnson at a Glance — a look at our
organization, stakeholders, and recent social and
community milestones. PAGE 4
Celebrating Philanthropy — marking the 50th
anniversary of the SC Johnson Fund, Inc. PAGE 6
Strengthening Communities — how we’re building
businesses at the base of the pyramid and investing
in communities around the globe. PAGE 10
Protecting Families — our continuing efforts to
prevent insect-borne diseases through research,
education and products. PAGE 16
Offering Great Workplaces — how we’re protecting
the safety and well-being of our people, as well as
our unique and respected culture. PAGE 20
Find Out More
Want to know more about SC Johnson? Visit
our web site to find out about the company and
its history. We're at www.scjohnson.com
SC Johnson’s Holistic
Approach to Sustainability
Our sustainability efforts
target four key areas where
we believe we can make the
biggest impact on quality of
life, economic progress, our
product mix and the planet.
They are ...
Improving Our Products:
Choosing more earth-
responsible ingredients.
Reducing Resource Use:
Reducing energy consumption
and greenhouse gas emissions.
Strengthening Communities:
Advancing social progress
and public health.
Protecting Families:
Preventing insect-borne diseases.
©2010 S. C. Johnson & Son, Inc.
4,102 gallons of wastewater flow saved and
894 pounds of greenhouse gas emissions
avoided — all by printing this report on paper
manufactured with post-consumer fiber and
renewable wind power. It’s the equivalent
of planting 573 trees.
This book also uses eco-friendly inks and
low-VOC emitting water-based coatings.
This cover reflects a few examples of how we’re making a
difference
for families, from investing at the base of the pyramid, to
helping fight
insect-borne diseases, to offering inspiring workplaces.
2010 PUBLIC REPORT 3InVESTInG In PEOPLE, InVESTInG
FOR ThE PLAnET
Making life better for people and the
planet is our mission at SC Johnson.
Part of being a responsible company is working
hard to play our role in helping to solve the world’s
environmental problems and, importantly, also helping
those who buy our products make more responsible
choices. This is an opportunity that inspires us every
day at SC Johnson. Making life better for people and
the planet is our mission.
Over the last year, we further reduced greenhouse gas
(GHG) emissions, increased our use of renewable energy
and invested in continually improving our products.
We also have worked hard to provide more industry-
leading transparency for our consumers by labeling our
products with their ingredients. We want our consumers
to scrutinize the careful ingredient choices that we make
so they can continue to trust our enduring brands.
We have begun laying the groundwork for our next
five-year strategy, which includes expanding our
GHG focus to address the full product lifecycle and
working in new ways to minimize landfill impact.
But these efforts are just part of our sustainability
story. In 2009, we also continued to fulfill the
obligation for business to drive social progress.
We celebrated the 50th anniversary of our philan-
thropic arm, the SC Johnson Fund, Inc., as well as
ongoing philanthropy by the company that began
decades earlier. We continued to invest in base-
of-the-pyramid business co-creation.
And, through investments such as our collaboration
with the Bill & Melinda Gates Foundation, we further
extended our efforts to prevent the insect-borne
diseases that affect millions of families around
the world each year.
This year, our public report has two different
covers and routes to get to know SC Johnson.
But they converge on the same belief —
that business has both an opportunity
and an obligation to make the world
better by advancing environmental
and social progress.
By sharing our company’s efforts
across both the environmental and
social facets of sustainability, this 2010 Public Report
aims to highlight the many ways in which we’re
bringing this belief to life.
It’s a commitment we’ve upheld for more than 120
years, and an aspiration shared by the 12,000 people
of SC Johnson. I continue to be very proud of, and
grateful for, the difference we’re able to make.
H. Fisk Johnson, Chairman and CEO
4 SC JOHNSON AT-A-GLANCE WWW.SCJOHNSON.COM
SC Johnson at a Glance
12,000 people working in 70+ countries to make the world
better.
Environmental
• Continuously improving the raw materials
scores of our products as measured by
our Greenlist™ process.
• Reducing combined air emissions, water
effluents and solid waste 50% by 2011,
versus the 2000 baseline. Achieved in 2009.
• Reducing on an absolute basis U.S. greenhouse
gas (GHG) emissions another 8% by 2011,
versus our 2005 baseline. Achieved in 2008.
• Reducing on an absolute basis GHG emissions
for all worldwide factories 12% by 2011, versus
the 2000 baseline. Achieved in 2008.
• Sourcing 40% of global electricity from
renewable energy.
Social
• Contributing to public
health by helping
minimize the spread
of insect-borne diseases
through products
and education.
• Developing partnerships
and programs that create
mutual value at the base
of the economic pyramid
and contribute to local
quality of life.
• Supporting communities
through philanthropy and
employee volunteerism.
Economic
• Continually growing by
meeting consumer needs with
innovative products of superior
quality and value that enhance
people’s lives.
• Contributing to the economies
of our host communities by
providing employment and
partnering with organizations to
create growth and opportunity.
• Ensuring that new investment
fits constructively into the
economic development
progress of each host country
and local community.
Organized for Sustainability
At SC Johnson, we believe sustainable business is
a company-wide responsibility. Because we approach
sustainability holistically, it doesn’t just get discussed
by a “green team.” Rather, everyone shares the job
of thinking about sustainability implications, and more
than 130 people are formally focused on it.
Here are just a few of the Johnson leaders who have
sustainability targets as part of their accountability:
Chairman and CEO
President – Chief Technical Officer
President – Developed Platform
President – Developing Platform
Executive Vice President – Worldwide
Corporate and Environmental Affairs
Senior Vice President – Global Product Supply
Senior Vice President and Chief Administrative Officer
Senior Vice Presidents/Vice Presidents –
Business Units and New Product Development
Plus, these functions are focusing on sustainability
topics for the worldwide company each and every day:
Environmental and Safety Actions
Safety Assessment and Regulatory Affairs
Research, Development & Engineering
Safety/Health, Environment and Quality
Sustainable Innovation
Community Leadership
Public Affairs and Communication
Government Relations
Our Stakeholders
SC Johnson’s values are articulated in This We Believe —
our statement of expectations for operations around
the world. This We Believe is much more than simply a
written document; it is the essence of who we are and
how we operate. Failure to operate with integrity is not
tolerated. You can find the full text of This We Believe at
www.scjohnson.com/en/company/principles.aspx
This We Believe explains SC Johnson’s values in relation
to the groups of people, shown below in blue, to whom we
are responsible and whose trust we have to earn. In support
of our principles, we also regularly interact with a variety
of other external stakeholders, shown below in green.
Sustainability Objectives
Our 2011 strategy calls for the achievement of these
sustainability objectives:
Find It Online:
Want to know more about SC Johnson? Visit
our web site to find out about the company
and its history. Plus, you can visit our online
Public Report at www.scjohnson.com/2010Report for a
list of the 2009 members of our Board of Directors.
World
Community Media
Customers
and PartnersEmployees
Consumers
and Users
Industry
Associations
Neighbors
and Hosts
General
Public
NGOs
Policy
Makers
2010 PUBLIC REPORT 5INVESTING IN PEOPLE,
INVESTING fOR THE PLANET
A Look at News from 2009
SC Johnson is a leading global manufacturer of household
products. But despite 124 years
and billions in sales, we still have a “small town” commitment
to making a positive difference
in the communities where we operate. Here’s a brief look at a
few of our accomplishments …
And throughout the year ... from January through
December 2009, SC Johnson companies were named to
local employer-of-choice lists compiled by the Great Place
to Work Institute®, Hewitt Associates and others. Among
the SC Johnson operations honored in 2009 were our
companies in Argentina, Canada, Central America, Chile,
Germany, Italy, Mexico, Turkey, United States and Venezuela.
APRIL
SC Johnson Mexico is honored with the Socially
Responsible Enterprise Award from the Mexican Center
for Philanthropy (CEMEFI). SC Johnson is one of only
10 companies in Mexico that have received the award
for nine years in a row.
NOVEMBER
SC Johnson announces its first commitment through the
Clinton Global Initiative. Focusing on malaria prevention,
SC Johnson will roll out an information, education and
communication program in partnership with the Global
Business Coalition on HIV/AIDS, TB and Malaria. The
program draws from SC Johnson’s experience combating
malaria and will be designed to help NGOs, governments,
businesses and community health groups support families
at risk of contracting the disease.
SC Johnson launches the newly updated web site
www.scjohnson.com, designed to not only offer product
and corporate information, but also provide a place to
share experiences and inspire one another. The site includes
family-focused elements such as “Family Economics,” where
external bloggers share ideas for getting more out of every
household dollar and enjoying every minute with family.
SC Johnson joins Kroger’s “Giving
Hope a Hand” campaign to raise
money to fight breast cancer.
Working with Kroger, we pledge
$280,000 to support non-profit
organizations targeting this cause,
and develop specially designed
displays and packaging featuring
Winnie Marquart, sister of Chairman
and CEO Fisk Johnson, sharing her
breast cancer survivor story.
OCTOBER
Despite the tough economy, SC Johnson
employees contribute more than $855,253
to the annual United Way campaign in the
United States. The SC Johnson Fund, Inc.
matches the pledges dollar-for-dollar,
meaning United Way-supported agencies
receive more than $1.7 million from
SC Johnson and its people.
SEPTEMBER
SC Johnson is recognized as a top
company for diversity by prestigious
organizations including AARP
(Best Employer for Workers Over
50), Working Mother magazine
(100 Best Companies for Working
Mothers), Hispanic Business
Magazine (Top 60 Companies for
Diversity), and the Human Rights
Campaign (scoring 100 percent
on the group’s Corporate Equality
Index, which rates companies on
their fair treatment of gay, lesbian,
bisexual and transgender employees,
consumers and investors).
JUNE
SC Johnson announces a 28-month partnership to benefit
thousands of Rwanda pyrethrum farmers by helping
them enhance the collection, drying and transportation of
higher-quality pyrethrum flowers. The effort aims to enable
farmers to increase their families’ income, as well as result
in an increased supply of
sustainable East African
pyrethrum for key pur-
chasers like SC Johnson.
Pyrethrum is a natural
insecticide that is used
in some of SC Johnson’s
pest control products such
as its Raid® and Baygon®
brand insecticides.
SC Johnson ranks sixth among the top 10
companies for disabilities and in the top 50
companies for diversity, according to the ninth
annual list published by DiversityInc.com.
MARCH
6 CELEBRATING PHILANTHROPY
WWW.SCJOHNSON.COM
IN THE LAST 10 YEARS ALONE, THE
SC JOHNSON FuNd, INC. HAS ALLOCATEd:
> 411 grants totaling $51.7 million to organizations supporting
social equity.
> 100 grants totaling $13.2 million to organizations supporting
economic vitality.
> 73 grants totaling $6.7 million to organizations supporting a
healthy environment.
The SC Johnson Fund, Inc. — 1959-2009
Five Decades of Philanthropy
Follow links to more information wherever you see this symbol.
We believe in having
a positive impact on
the communities in
which we operate
and the world at large.
2010 PuBLIC REPORT 7INvESTING IN PEOPLE, INvESTING
FOR THE PLANET
Making Life Better for Families
Throughout its history, SC Johnson has contributed to
community and charitable efforts
in the belief that the company cannot be healthy on the inside
unless our communities
outside are healthy, too.
This commitment to philanthropy goes back to the
company’s beginnings. Herbert F. Johnson, Sr., son
of company founder Samuel C. Johnson, helped set
up a Racine community fund in the 1920s. Today, the
SC Johnson Fund, Inc. continues that long tradition
by matching employees’ United Way contributions
in all the communities where we have employees
throughout the United States.
In keeping with this commitment, in 1959, the
SC Johnson Fund was incorporated with the goal
of supporting non-profit organizations and programs
that have a positive impact on the communities in
which we operate and the world at large.
Grants that Drive Growth
Grants are made to support existing non-profit
organizations or programs focused on defined areas
of interest such as the environment, social equity
and economic vitality. Recipients must demonstrate
broad-based support from, and collaboration with,
other community groups.
Organizations submit a request for financial support
to the Fund; its Board of Trustees reviews the requests
several times a year and recommends support for
various proposals.
Ongoing Programs that Help
The SC Johnson Fund also has ongoing programs to
involve employees and the community in philanthropic
efforts. For example, the Educational Matching Gift
program matches employees’ and retirees’ cash or
stock gifts to accredited educational institutions, up
to $6,000 per year for each employee or retiree.
Along with a Sons & Daugh-
ters Scholarship Program for
dependents of employees
and retirees, the SC Johnson
Fund also established a
Young Leaders Scholarship
program to assist economi-
cally disadvantaged high
school seniors of non-
employee families in the
Racine area. Students who plan to continue their edu-
cation in college or vocational schools can apply for
renewable scholarships. More than $1.5 million in Young
Leaders scholarships have been granted since 2002.
In addition, the SC Johnson Fund in 2001 launched
a Dollars for Doers program to recognize employee
and retiree volunteer time. The Fund awards $250 to
non-profit organizations for 40 hours of service there
by employees or retirees in a fiscal year. More than
$350,000 has been awarded so far.
Among 45 new scholarship
recipients in 2009, one was
Eric Wagers, pictured here
with his parents who are both
SC Johnson employees.
Milestones in Making an Impact
The SC Johnson Fund, Inc. has granted millions of dollars to
local and global organizations. Here are a few
examples in recent years.
$3 million to
The Nature Conservancy
for conservation of bio-
diversity and promotion
of compatible economic
development in the
Caatinga eco-region
of Brazil.
1998 $9 million to
Racine Charter One, Inc.,
supporting 21st Century
Preparatory School,
a K-8 independent
school established for
Racine’s diverse student
population.
2002 $2.2 million
to the Mayo Foundation
for Medical Education
and Research, to support
the Samuel C. Johnson
Program in the Genomics
of Addiction.
2004 $3 million to
the Johnson Foundation
at Wingspread, which
this year is focusing
attention on the emerging
freshwater crisis in the
United States.
2009
73%
social equity
18%
economic vitality
9%
healthy
environment
Total SC Johnson
Fund, Inc. grant
dollars allocated
by interest area,
2000-2009
8 CELEBRATING PHILANTHROPY
WWW.SCJOHNSON.COM
50 Years of Help, a World of Difference
Since its inception in 1959, the SC Johnson Fund, Inc. has
provided hundreds of grants to
non-profit organizations working to better their communities.
Here are just a few examples
of organizations that have received support from the SC
Johnson Fund.
Alliance for the Great Lakes
The mission of the Alliance for the Great
Lakes is to “conserve and restore the
world’s largest freshwater resource
using policy, education and local efforts,
ensuring a healthy Great Lakes and clean water for
generations of people and wildlife.”
To accomplish this mission, the
Alliance works with residents,
scientists, teachers, policymak-
ers and others to preserve the
Great Lakes. The program has
several focus areas, including
water quality, water conserva-
tion, habitat recovery, and
education and outreach.
The SC Johnson Fund has provided $66,000
in funding to the Alliance for the Great Lakes to
develop a local Adopt-a-Beach™ program and to
educate area youth about the importance of the
Lake Michigan coastline.
Opportunities
Industrialization Center
The Opportunities Industrialization Center
is a worldwide organization of local affili-
ates that provide employment-related services to
dis advantaged members of the community. The
OIC of Racine County focuses on working with
young adults to help them stay in school, graduate
and learn job skills.
The OIC’s Youthbuild Racine
GreenTech Project provides
hands-on, on-site training in
green housing construction and
rehabilitation. The program pro-
vides skills to participants while
also increasing the supply of
affordable, energy-efficient low-income housing.
The program aims to transition at least half of
participants into a construction trade apprentice-
ship and to graduate at least 75 percent in a GED
or high school equivalency program.
Since 1996, the SC Johnson Fund has provided
$1,073,000 to the OIC of Racine County.
First Choice
Pre-Apprenticeship Training
First Choice Pre-Apprenticeship
Training provides low-income,
unemployed and underemployed
individuals in Racine with skills necessary for
the construction and skilled trade industries.
The goal is to improve employment opportunities
by providing the skills needed to obtain family-
supporting wages.
Hundreds of workers have completed the
program and secured area construction jobs,
including employment on a major Milwaukee
freeway interchange and on a new building at
SC Johnson’s world headquarters.
Since 2002, the SC Johnson Fund has
provided $331,850 in funding to First Choice
Pre-Apprenticeship Training, which is now
managed by Human Capital Development Corp.
Feeding America
Feeding America is a nationwide
network of more than 200 food
banks that help fight hunger in the
United States. Feeding America Eastern Wisconsin
feeds 330,000 people each year, including 105,000
children and nearly 33,000 seniors. The food bank
distributes more than 12 million pounds of food
and grocery products an-
nually through 1,100 partner
hunger relief agencies that
serve the hungry directly.
Each year, SC Johnson
makes large product dona-
tions to Feeding America Eastern Wisconsin, for
example contributing more than 60,000 pounds of
products such as Ziploc® brand sandwich bags in
2009. In addition, since 1996 the SC Johnson Fund
has provided $60,000 in financial contributions.
2010 PuBLIC REPORT 9INvESTING IN PEOPLE, INvESTING
FOR THE PLANET
Habitat for
Humanity International
Habitat for Humanity works
to provide housing that is
decent, safe and affordable
to low-income families around the world. Local
Habitat affiliates work to select homeowners,
organize volunteers and coordinate house building.
Homeowners are selected based on need, ability
to pay a mortgage and willing-
ness to help participate in the
homebuilding process. Home-
owners and volunteers build
under trained supervision.
Since its founding in 1976,
Habitat has built, rehabilitated,
repaired or improved more than
350,000 houses worldwide,
providing shelter for more than 1.75 million people
in 3,000 communities.
Since 1989, the SC Johnson Fund has provided
$255,000 in funding to Racine Habitat for Humanity
to support the construction of new homes.
Conservation International
Conservation International is an
international organization that
works in more than 40 countries
to protect the earth’s resources.
CI is committed to helping societies adopt a
more sustainable approach to development — by
considering and valuing nature. CI has many focus
areas, in cluding watershed and forest protection,
biodiversity conservation, carbon sequestration
and ecotourism.
CI’s mission includes
empowering societies
to responsibly and sus-
tainably care for nature.
As part of this mission,
over the next three years Conservation Interna-
tional plans to support the development of a green
economy in Rwanda. CI hopes the economy will
serve as a regional model for integrating ecosys-
tem services into development and conservation.
The SC Johnson Fund, in collaboration with
SC Johnson corporate giving, provided $725,000
in support to Conservation International this
past year, of which $100,000 will support their
Rwandan green development program.
The Johnson Foundation
at Wingspread
The Johnson Foundation at Wing-
spread is dedicated to serving as
a catalyst for innovative public
and private solutions. It operates the Wingspread
Conference Center and hosts leading thinkers,
conferences, workshops and seminars in an effort
to have a great impact on environmental,
community and other
public policy issues.
An entirely separate institu-
tion from the SC Johnson
Fund and SC Johnson, the
Johnson Foundation seeks
to provide solutions on a regional and global basis
in the areas of healthy environments and healthy
local communities. Most recently, the Johnson
Foundation announced the 2010 Freshwater
Summit, a new initiative to focus attention on the
emerging freshwater crisis in the United States,
including pollution, water shortages, water infra-
structure and water quality.
In 2009, the SC Johnson Fund provided 3,000,000
in funding to the Johnson Foundation.
Racine Art Museum
The Racine Art Museum (RAM)
opened in 2003 as an outgrowth of
the 69 year-old Charles A. Wustum Museum of
Fine Arts (Wustum). RAM operates both locations,
using Wustum as an education center and RAM
as home to internationally recognized exhibitions
of contemporary crafts. The
museums are a popular destina-
tion for the 11 million residents of
the Chicago-Milwaukee corridor
and across the United States.
In addition to six exhibition
galleries, RAM has a world-class
museum store and an art library.
Both campuses offer a myriad of
free community outreach programs and Wustum
offers one of the largest studio arts programs of
any Wisconsin museum.
In the past 10 years, the SC Johnson Fund provided
more than $5,700,000 to RAM’s building fund,
endowment, exhibitions and education programs.
Zaitz Photography
10 STRENGTHENING COMMUNITIES
WWW.SCJOHNSON.COM
NEW THIS YEAR
> Worked with BoP partners to further advance our joint Kenya
initiative.
> Progressed in our efforts to help Rwanda pyrethrum farmers
increase their supply.
> Continued contributing time and money to make communities
better.
Advancing Social Progress and Public Health
Strengthening Communities
Follow links to more information wherever you see this symbol.
We’re working to drive
positive social change,
help consumers and
improve quality of life.
Chairman and CEO Fisk
Johnson recently visited
Rwanda for an up-close look
at the company’s program
assisting pyrethrum farmers,
and to meet some of the
people it’s helping.
2010 PUBLIC REPORT 11INvESTING IN PEOPLE,
INvESTING FOR THE PLANET
Behind This Flower is a Powerful Story
In June 2009, SC Johnson kicked off a partnership in Rwanda
that illustrates sustainable
development at its best.
By helping farmers enhance their ability to supply
higher-quality pyrethrum (py) — a natural insecticide
extract of the chrysanthemum flower — the effort
helps increase farmers’ income while increasing the
supply for SC Johnson and other purchasers.
What We’re Doing
SC Johnson is working in active partnership with the
U.S. Agency for International Development and Texas
A&M University’s Borlaug Institute to support farmer
organization and more effective agricultural practices.
As an example, the farmers are being assisted in estab-
lishing a cooperative to promote best practices for py
collection and transportation. The two largest groups
of 4,000 farming families are reorganizing into smaller
groups of 30 to 50 growers, to allow for more effective
and better management. With these smaller groups,
the goal is to improve and accelerate services to farm-
ers and to more quickly disseminate best practices. At
the same time, the reorganization removes middlemen
that were siphoning money from the py value chain,
and instead keeps the profits with the farmers.
Additionally, agronomic techniques are being improved
to raise the income farmers can get from the same
amount of land planted with py. Also, the effort is
bringing global positioning system (GPS) and geo-
graphic information system (GIS) technology to
develop a crop management system that will help
ensure long-term benefits to the farmers and the
growth of Rwanda’s pyrethrum industry.
As part of the effort, we’re also providing health
information through the co-ops to the farmers, to
help their families stay healthy.
What’s at Stake
The goal is to increase production each year through
the end of 2011, while also increasing the py content
of the yield. Despite various challenges so far, the
2009 harvest of dried py flowers delivered a yield
with a 33 percent higher py content than in 2008.
Also important, farmers in the region are engaging in
the project and the acreage being planted is showing
signs of increasing.
Obviously these are good results in terms of increasing
the sustainable supply of py for key purchasers like
SC Johnson. But also important, as farmers see
increased returns on their business, we’re hopeful it
will lead to important benefits for their families, such
as more reliable or higher incomes that can enable
improved nutrition, health and education. What is Py?
Pyrethrum, or “py,” is a natural,
fast-acting insecticide extracted
from the dried flower heads of
chrysanthemums. Although it
can be produced synthetically, py
is known for the fact that it doesn’t persist as long in
the environment as synthetic py. SC Johnson uses it in
some of its pest control products, such as its Raid® and
Baygon® brand insecticides sold around the world.
SC Johnson has purchased py from East Africa for more
than 40 years. We worked with the Pyrethrum Board of
Kenya to help build capacity, stabilize the supply and
bring more reliable income to farmers there. We also
partnered with the NGO KickStart to bring Kenya py
farmers a manual water pump for irrigating crops with
groundwater. We began exploring opportunities with
Rwanda py farmers in 2007.
From BoP Pilot
to Business-As-Usual
On this page and the following, SC Johnson features
investment projects with base of the pyramid (BoP)
entrepreneurs and farmers. But we also have BoP proj-
ects that have evolved into profitable business-as-usual.
In Nigeria, we launched a motorcycle sales pilot in 2006
to reach more traditional, lower-income distribution
outlets. It became a profitable success for all involved.
Similarly, a Ghana effort using push bikes designed for
carrying cargo now provides a solid source of income
for the bicycle distributors as well as for SC Johnson.
By becoming strong enough to be self-sustainable,
these efforts prove out the promise of BoP investments.
12 STRENGTHENING COMMUNITIES
WWW.SCJOHNSON.COM
Progress from Partnership
In 2006, with partner Carolina for Kibera, SC Johnson co-
launched Community Cleaning
Services (CCS) in Nairobi, Kenya, offering very low-cost
cleaning services to families living
at the base of the economic pyramid.
Since then, CCS has
achieved a solid business
model cleaning public
and private shared toilet
facilities. Most toilets in
Nairobi’s poor neighbor-
hoods are shared by
multiple households
and are poorly maintained. Neighbors now can hire
CCS to clean their toilet and share the cost, meaning
regularly maintained, more sanitary toilets for about
17 U.S. cents per
household. Fourteen
CCS teams currently
service around 225
facilities per week.
Collaborating for
Continuous Improvement
Focusing on continuous improvement, since 2009,
CCS and a team from SC Johnson have been working
together, exploring ways to enhance the toilet cleaning
processes, reduce costs and drive sales growth.
A collaborative approach was key, as was the addi-
tion of a team member with R&D expertise. Through
hands-on research, process analysis and iterative
prototyping, the teams were able to identify ways
to increase cleaner productivity by 60 percent and
cut cleaning time by 35 percent. In addition, they
collectively devised a solution to CCS’s top customer
issue: odor control.
A Fresh
Solution
Odor is an issue in any toilet area, but especially in
bathrooms shared by multiple households. The CCS
team knew this, and that clients would pay more for
toilet cleaning if odor control was included. But a chal-
lenge was that air fresheners tended to disappear or
be taken from the bathrooms shortly after placement.
Together, we found an effective, low-cost solution:
an SC Johnson toilet gel product distributed under
the Duck® and Scrubbing Bubbles® brand names.
Designed to be stamped out of a dispenser in devel-
oped market-type toilet bowls for cleaning and odor
control, the gel turned out to have great potential for
the developing market, too.
A dollop of gel in the toilet
area freshens the air for
seven to 10 days, and in a
form that stays put. In addi-
tion, it allows SC Johnson to
repurpose excess gel from
the routine manufacturing
process. By providing a barrel
of the gel to CCS instead of
disposing of it, we cut material
handling and disposal fees.
The gel is then distributed by
the pound to the entrepre-
neurs, who transfer it to pastry
bags that are reused repeat-
edly for individual applications. The end result is more
satisfied clients, higher profits for the cleaning teams,
and less packaging and waste.
More Opportunities on the Horizon
To continue leveraging the momentum of the CCS
effort, the SC Johnson team checks in regularly and is
helping explore other opportunities. Up-and-coming
efforts include quantifying the sanitation impact of
CCS’s service to prove the value of the cleaning, and
introducing a graphical, step-by-step training manual
to help train new cleaners.
In addition, learnings from this effort will be used in
other BoP initiatives moving forward. For example,
SC Johnson is undertaking an initiative in Ghana to
create a sustainable business model related to malaria
prevention. Read more about it on page 15.
Click here to jump to the
back of this book and find
out more.
2010 PUBLIC REPORT 13INvESTING IN PEOPLE,
INvESTING FOR THE PLANET
Q You were the first SC Johnson team member with
an R&D background to partner with the CCS team.
How do you think your perspective was different?
As a designer, my first instinct is to approach problems
from a user-centered point of view. To do that, you
really need to walk in the user’s shoes and that meant
living and working with the cleaning teams as well as
spending a lot of time interviewing their clients.
I also interviewed the cleaning teams to understand
what they’ve learned along the way and how they’ve
improved processes. For example, one team learned
odor control was an issue. That eventually led to the
new odor control offering. Experience with iterative
prototyping helped
too, because we were
translating needs into
tangible products or
processes that we
could test and modify
as necessary.
Jeremy Knopow is a Senior Research Engineer and Industrial
Designer at SC Johnson. He most recently visited Kenya in
January 2010 and returns this summer.
Expert Q&A
Measuring Success
SC Johnson recently provided the Community Cleaning
Services team trainer with a “germ meter” to measure
toilet-area microbiological levels. The meter is for quality
control and to help show potential clients the sanitation
benefits of toilet cleaning. A swab test before and after
cleaning allows CCS to measure microbial improvement
... and demonstrate some impressive results.
Germ Level Comparison
0
10
20
30
40
50
60
50
10
15
60
50
B
o
P
B
a
th
ro
o
m
B
E
f
o
R
E
C
C
S
C
le
a
n
in
g
B
o
P
B
a
th
ro
o
m
A
f
T
E
R
C
C
S
C
le
a
n
in
g
T
y
p
ic
a
l
R
o
u
ti
n
e
ly
C
le
a
n
e
d
D
e
v
e
lo
p
e
d
-
C
o
u
n
tr
y
B
a
th
ro
o
m
C
e
ll
P
h
o
n
e
*Germ level is measured by the amount of organic material that
remains on the surface. RLUs are Relative Light Units. A
chemical
on the germ monitor swab causes organic materials to glow and
the monitor reads the Relative Light Units, or the amount of
light
emitted.
Turning Problems into Opportunities
Here’s an example of a process opportunity that the
CCS and SC Johnson teams co-innovated.
Problem
When cleaning walls, water and dish soap would be
splashed onto the wall by hand. Water would run down
the wall and drain away, requiring even more water to
complete the cleaning task.

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They’re Two sides of The same susTainabiliTy sTraTegyinves.docx

  • 1. They’re Two sides of The same susTainabiliTy sTraTegy investing in People, investing for the Planet 2010 Public rePorT About This Book There’s more than one facet to sustainable business, and at SC Johnson, we believe in taking a holistic approach. That's why the printed edition of this Public Report had two covers and two ways to get to know SC Johnson. For this online edition, we've compiled the two sections into one handy PDF. Interested in social progress and public health? Start reading here. Interested in our environmental leadership? Turn to the second half of the book and our alternate cover, on page 25 of this online PDF. Either way, the whole book is about how SC Johnson
  • 2. is making the world better. What’s in This Half? SC Johnson at a Glance — a look at our organization, stakeholders, and recent social and community milestones. PAGE 4 Celebrating Philanthropy — marking the 50th anniversary of the SC Johnson Fund, Inc. PAGE 6 Strengthening Communities — how we’re building businesses at the base of the pyramid and investing in communities around the globe. PAGE 10 Protecting Families — our continuing efforts to prevent insect-borne diseases through research, education and products. PAGE 16 Offering Great Workplaces — how we’re protecting the safety and well-being of our people, as well as our unique and respected culture. PAGE 20 Find Out More Want to know more about SC Johnson? Visit our web site to find out about the company and its history. We're at www.scjohnson.com
  • 3. SC Johnson’s Holistic Approach to Sustainability Our sustainability efforts target four key areas where we believe we can make the biggest impact on quality of life, economic progress, our product mix and the planet. They are ... Improving Our Products: Choosing more earth- responsible ingredients. Reducing Resource Use: Reducing energy consumption and greenhouse gas emissions. Strengthening Communities: Advancing social progress and public health. Protecting Families: Preventing insect-borne diseases. ©2010 S. C. Johnson & Son, Inc. 4,102 gallons of wastewater flow saved and 894 pounds of greenhouse gas emissions avoided — all by printing this report on paper manufactured with post-consumer fiber and renewable wind power. It’s the equivalent of planting 573 trees. This book also uses eco-friendly inks and
  • 4. low-VOC emitting water-based coatings. This cover reflects a few examples of how we’re making a difference for families, from investing at the base of the pyramid, to helping fight insect-borne diseases, to offering inspiring workplaces. 2010 PUBLIC REPORT 3InVESTInG In PEOPLE, InVESTInG FOR ThE PLAnET Making life better for people and the planet is our mission at SC Johnson. Part of being a responsible company is working hard to play our role in helping to solve the world’s environmental problems and, importantly, also helping those who buy our products make more responsible choices. This is an opportunity that inspires us every day at SC Johnson. Making life better for people and the planet is our mission. Over the last year, we further reduced greenhouse gas (GHG) emissions, increased our use of renewable energy and invested in continually improving our products.
  • 5. We also have worked hard to provide more industry- leading transparency for our consumers by labeling our products with their ingredients. We want our consumers to scrutinize the careful ingredient choices that we make so they can continue to trust our enduring brands. We have begun laying the groundwork for our next five-year strategy, which includes expanding our GHG focus to address the full product lifecycle and working in new ways to minimize landfill impact. But these efforts are just part of our sustainability story. In 2009, we also continued to fulfill the obligation for business to drive social progress. We celebrated the 50th anniversary of our philan- thropic arm, the SC Johnson Fund, Inc., as well as ongoing philanthropy by the company that began decades earlier. We continued to invest in base- of-the-pyramid business co-creation. And, through investments such as our collaboration
  • 6. with the Bill & Melinda Gates Foundation, we further extended our efforts to prevent the insect-borne diseases that affect millions of families around the world each year. This year, our public report has two different covers and routes to get to know SC Johnson. But they converge on the same belief — that business has both an opportunity and an obligation to make the world better by advancing environmental and social progress. By sharing our company’s efforts across both the environmental and social facets of sustainability, this 2010 Public Report aims to highlight the many ways in which we’re bringing this belief to life. It’s a commitment we’ve upheld for more than 120 years, and an aspiration shared by the 12,000 people
  • 7. of SC Johnson. I continue to be very proud of, and grateful for, the difference we’re able to make. H. Fisk Johnson, Chairman and CEO 4 SC JOHNSON AT-A-GLANCE WWW.SCJOHNSON.COM SC Johnson at a Glance 12,000 people working in 70+ countries to make the world better. Environmental • Continuously improving the raw materials scores of our products as measured by our Greenlist™ process. • Reducing combined air emissions, water effluents and solid waste 50% by 2011, versus the 2000 baseline. Achieved in 2009. • Reducing on an absolute basis U.S. greenhouse gas (GHG) emissions another 8% by 2011, versus our 2005 baseline. Achieved in 2008. • Reducing on an absolute basis GHG emissions for all worldwide factories 12% by 2011, versus the 2000 baseline. Achieved in 2008. • Sourcing 40% of global electricity from renewable energy.
  • 8. Social • Contributing to public health by helping minimize the spread of insect-borne diseases through products and education. • Developing partnerships and programs that create mutual value at the base of the economic pyramid and contribute to local quality of life. • Supporting communities through philanthropy and employee volunteerism. Economic • Continually growing by meeting consumer needs with innovative products of superior quality and value that enhance people’s lives. • Contributing to the economies of our host communities by providing employment and partnering with organizations to create growth and opportunity. • Ensuring that new investment fits constructively into the
  • 9. economic development progress of each host country and local community. Organized for Sustainability At SC Johnson, we believe sustainable business is a company-wide responsibility. Because we approach sustainability holistically, it doesn’t just get discussed by a “green team.” Rather, everyone shares the job of thinking about sustainability implications, and more than 130 people are formally focused on it. Here are just a few of the Johnson leaders who have sustainability targets as part of their accountability: Chairman and CEO President – Chief Technical Officer President – Developed Platform President – Developing Platform Executive Vice President – Worldwide Corporate and Environmental Affairs Senior Vice President – Global Product Supply Senior Vice President and Chief Administrative Officer Senior Vice Presidents/Vice Presidents – Business Units and New Product Development Plus, these functions are focusing on sustainability topics for the worldwide company each and every day:
  • 10. Environmental and Safety Actions Safety Assessment and Regulatory Affairs Research, Development & Engineering Safety/Health, Environment and Quality Sustainable Innovation Community Leadership Public Affairs and Communication Government Relations Our Stakeholders SC Johnson’s values are articulated in This We Believe — our statement of expectations for operations around the world. This We Believe is much more than simply a written document; it is the essence of who we are and how we operate. Failure to operate with integrity is not tolerated. You can find the full text of This We Believe at www.scjohnson.com/en/company/principles.aspx This We Believe explains SC Johnson’s values in relation to the groups of people, shown below in blue, to whom we are responsible and whose trust we have to earn. In support of our principles, we also regularly interact with a variety of other external stakeholders, shown below in green. Sustainability Objectives Our 2011 strategy calls for the achievement of these sustainability objectives: Find It Online:
  • 11. Want to know more about SC Johnson? Visit our web site to find out about the company and its history. Plus, you can visit our online Public Report at www.scjohnson.com/2010Report for a list of the 2009 members of our Board of Directors. World Community Media Customers and PartnersEmployees Consumers and Users Industry Associations Neighbors and Hosts General Public NGOs Policy Makers 2010 PUBLIC REPORT 5INVESTING IN PEOPLE, INVESTING fOR THE PLANET A Look at News from 2009
  • 12. SC Johnson is a leading global manufacturer of household products. But despite 124 years and billions in sales, we still have a “small town” commitment to making a positive difference in the communities where we operate. Here’s a brief look at a few of our accomplishments … And throughout the year ... from January through December 2009, SC Johnson companies were named to local employer-of-choice lists compiled by the Great Place to Work Institute®, Hewitt Associates and others. Among the SC Johnson operations honored in 2009 were our companies in Argentina, Canada, Central America, Chile, Germany, Italy, Mexico, Turkey, United States and Venezuela. APRIL SC Johnson Mexico is honored with the Socially Responsible Enterprise Award from the Mexican Center for Philanthropy (CEMEFI). SC Johnson is one of only 10 companies in Mexico that have received the award for nine years in a row. NOVEMBER SC Johnson announces its first commitment through the Clinton Global Initiative. Focusing on malaria prevention, SC Johnson will roll out an information, education and communication program in partnership with the Global Business Coalition on HIV/AIDS, TB and Malaria. The program draws from SC Johnson’s experience combating malaria and will be designed to help NGOs, governments, businesses and community health groups support families at risk of contracting the disease.
  • 13. SC Johnson launches the newly updated web site www.scjohnson.com, designed to not only offer product and corporate information, but also provide a place to share experiences and inspire one another. The site includes family-focused elements such as “Family Economics,” where external bloggers share ideas for getting more out of every household dollar and enjoying every minute with family. SC Johnson joins Kroger’s “Giving Hope a Hand” campaign to raise money to fight breast cancer. Working with Kroger, we pledge $280,000 to support non-profit organizations targeting this cause, and develop specially designed displays and packaging featuring Winnie Marquart, sister of Chairman and CEO Fisk Johnson, sharing her breast cancer survivor story. OCTOBER Despite the tough economy, SC Johnson employees contribute more than $855,253 to the annual United Way campaign in the United States. The SC Johnson Fund, Inc. matches the pledges dollar-for-dollar, meaning United Way-supported agencies receive more than $1.7 million from SC Johnson and its people. SEPTEMBER SC Johnson is recognized as a top company for diversity by prestigious
  • 14. organizations including AARP (Best Employer for Workers Over 50), Working Mother magazine (100 Best Companies for Working Mothers), Hispanic Business Magazine (Top 60 Companies for Diversity), and the Human Rights Campaign (scoring 100 percent on the group’s Corporate Equality Index, which rates companies on their fair treatment of gay, lesbian, bisexual and transgender employees, consumers and investors). JUNE SC Johnson announces a 28-month partnership to benefit thousands of Rwanda pyrethrum farmers by helping them enhance the collection, drying and transportation of higher-quality pyrethrum flowers. The effort aims to enable farmers to increase their families’ income, as well as result in an increased supply of sustainable East African pyrethrum for key pur- chasers like SC Johnson. Pyrethrum is a natural insecticide that is used in some of SC Johnson’s pest control products such as its Raid® and Baygon® brand insecticides. SC Johnson ranks sixth among the top 10 companies for disabilities and in the top 50 companies for diversity, according to the ninth annual list published by DiversityInc.com.
  • 15. MARCH 6 CELEBRATING PHILANTHROPY WWW.SCJOHNSON.COM IN THE LAST 10 YEARS ALONE, THE SC JOHNSON FuNd, INC. HAS ALLOCATEd: > 411 grants totaling $51.7 million to organizations supporting social equity. > 100 grants totaling $13.2 million to organizations supporting economic vitality. > 73 grants totaling $6.7 million to organizations supporting a healthy environment. The SC Johnson Fund, Inc. — 1959-2009 Five Decades of Philanthropy Follow links to more information wherever you see this symbol. We believe in having a positive impact on the communities in which we operate and the world at large.
  • 16. 2010 PuBLIC REPORT 7INvESTING IN PEOPLE, INvESTING FOR THE PLANET Making Life Better for Families Throughout its history, SC Johnson has contributed to community and charitable efforts in the belief that the company cannot be healthy on the inside unless our communities outside are healthy, too. This commitment to philanthropy goes back to the company’s beginnings. Herbert F. Johnson, Sr., son of company founder Samuel C. Johnson, helped set up a Racine community fund in the 1920s. Today, the SC Johnson Fund, Inc. continues that long tradition by matching employees’ United Way contributions in all the communities where we have employees throughout the United States. In keeping with this commitment, in 1959, the SC Johnson Fund was incorporated with the goal of supporting non-profit organizations and programs that have a positive impact on the communities in
  • 17. which we operate and the world at large. Grants that Drive Growth Grants are made to support existing non-profit organizations or programs focused on defined areas of interest such as the environment, social equity and economic vitality. Recipients must demonstrate broad-based support from, and collaboration with, other community groups. Organizations submit a request for financial support to the Fund; its Board of Trustees reviews the requests several times a year and recommends support for various proposals. Ongoing Programs that Help The SC Johnson Fund also has ongoing programs to involve employees and the community in philanthropic efforts. For example, the Educational Matching Gift program matches employees’ and retirees’ cash or stock gifts to accredited educational institutions, up to $6,000 per year for each employee or retiree.
  • 18. Along with a Sons & Daugh- ters Scholarship Program for dependents of employees and retirees, the SC Johnson Fund also established a Young Leaders Scholarship program to assist economi- cally disadvantaged high school seniors of non- employee families in the Racine area. Students who plan to continue their edu- cation in college or vocational schools can apply for renewable scholarships. More than $1.5 million in Young Leaders scholarships have been granted since 2002. In addition, the SC Johnson Fund in 2001 launched a Dollars for Doers program to recognize employee and retiree volunteer time. The Fund awards $250 to non-profit organizations for 40 hours of service there
  • 19. by employees or retirees in a fiscal year. More than $350,000 has been awarded so far. Among 45 new scholarship recipients in 2009, one was Eric Wagers, pictured here with his parents who are both SC Johnson employees. Milestones in Making an Impact The SC Johnson Fund, Inc. has granted millions of dollars to local and global organizations. Here are a few examples in recent years. $3 million to The Nature Conservancy for conservation of bio- diversity and promotion of compatible economic development in the Caatinga eco-region of Brazil. 1998 $9 million to Racine Charter One, Inc.,
  • 20. supporting 21st Century Preparatory School, a K-8 independent school established for Racine’s diverse student population. 2002 $2.2 million to the Mayo Foundation for Medical Education and Research, to support the Samuel C. Johnson Program in the Genomics of Addiction. 2004 $3 million to the Johnson Foundation at Wingspread, which this year is focusing attention on the emerging freshwater crisis in the
  • 21. United States. 2009 73% social equity 18% economic vitality 9% healthy environment Total SC Johnson Fund, Inc. grant dollars allocated by interest area, 2000-2009 8 CELEBRATING PHILANTHROPY WWW.SCJOHNSON.COM 50 Years of Help, a World of Difference Since its inception in 1959, the SC Johnson Fund, Inc. has provided hundreds of grants to non-profit organizations working to better their communities. Here are just a few examples of organizations that have received support from the SC Johnson Fund. Alliance for the Great Lakes
  • 22. The mission of the Alliance for the Great Lakes is to “conserve and restore the world’s largest freshwater resource using policy, education and local efforts, ensuring a healthy Great Lakes and clean water for generations of people and wildlife.” To accomplish this mission, the Alliance works with residents, scientists, teachers, policymak- ers and others to preserve the Great Lakes. The program has several focus areas, including water quality, water conserva- tion, habitat recovery, and education and outreach. The SC Johnson Fund has provided $66,000 in funding to the Alliance for the Great Lakes to develop a local Adopt-a-Beach™ program and to
  • 23. educate area youth about the importance of the Lake Michigan coastline. Opportunities Industrialization Center The Opportunities Industrialization Center is a worldwide organization of local affili- ates that provide employment-related services to dis advantaged members of the community. The OIC of Racine County focuses on working with young adults to help them stay in school, graduate and learn job skills. The OIC’s Youthbuild Racine GreenTech Project provides hands-on, on-site training in green housing construction and rehabilitation. The program pro- vides skills to participants while also increasing the supply of
  • 24. affordable, energy-efficient low-income housing. The program aims to transition at least half of participants into a construction trade apprentice- ship and to graduate at least 75 percent in a GED or high school equivalency program. Since 1996, the SC Johnson Fund has provided $1,073,000 to the OIC of Racine County. First Choice Pre-Apprenticeship Training First Choice Pre-Apprenticeship Training provides low-income, unemployed and underemployed individuals in Racine with skills necessary for the construction and skilled trade industries. The goal is to improve employment opportunities by providing the skills needed to obtain family- supporting wages. Hundreds of workers have completed the program and secured area construction jobs,
  • 25. including employment on a major Milwaukee freeway interchange and on a new building at SC Johnson’s world headquarters. Since 2002, the SC Johnson Fund has provided $331,850 in funding to First Choice Pre-Apprenticeship Training, which is now managed by Human Capital Development Corp. Feeding America Feeding America is a nationwide network of more than 200 food banks that help fight hunger in the United States. Feeding America Eastern Wisconsin feeds 330,000 people each year, including 105,000 children and nearly 33,000 seniors. The food bank distributes more than 12 million pounds of food and grocery products an- nually through 1,100 partner hunger relief agencies that
  • 26. serve the hungry directly. Each year, SC Johnson makes large product dona- tions to Feeding America Eastern Wisconsin, for example contributing more than 60,000 pounds of products such as Ziploc® brand sandwich bags in 2009. In addition, since 1996 the SC Johnson Fund has provided $60,000 in financial contributions. 2010 PuBLIC REPORT 9INvESTING IN PEOPLE, INvESTING FOR THE PLANET Habitat for Humanity International Habitat for Humanity works to provide housing that is decent, safe and affordable to low-income families around the world. Local Habitat affiliates work to select homeowners, organize volunteers and coordinate house building.
  • 27. Homeowners are selected based on need, ability to pay a mortgage and willing- ness to help participate in the homebuilding process. Home- owners and volunteers build under trained supervision. Since its founding in 1976, Habitat has built, rehabilitated, repaired or improved more than 350,000 houses worldwide, providing shelter for more than 1.75 million people in 3,000 communities. Since 1989, the SC Johnson Fund has provided $255,000 in funding to Racine Habitat for Humanity to support the construction of new homes. Conservation International Conservation International is an international organization that
  • 28. works in more than 40 countries to protect the earth’s resources. CI is committed to helping societies adopt a more sustainable approach to development — by considering and valuing nature. CI has many focus areas, in cluding watershed and forest protection, biodiversity conservation, carbon sequestration and ecotourism. CI’s mission includes empowering societies to responsibly and sus- tainably care for nature. As part of this mission, over the next three years Conservation Interna- tional plans to support the development of a green economy in Rwanda. CI hopes the economy will serve as a regional model for integrating ecosys- tem services into development and conservation.
  • 29. The SC Johnson Fund, in collaboration with SC Johnson corporate giving, provided $725,000 in support to Conservation International this past year, of which $100,000 will support their Rwandan green development program. The Johnson Foundation at Wingspread The Johnson Foundation at Wing- spread is dedicated to serving as a catalyst for innovative public and private solutions. It operates the Wingspread Conference Center and hosts leading thinkers, conferences, workshops and seminars in an effort to have a great impact on environmental, community and other public policy issues. An entirely separate institu- tion from the SC Johnson Fund and SC Johnson, the
  • 30. Johnson Foundation seeks to provide solutions on a regional and global basis in the areas of healthy environments and healthy local communities. Most recently, the Johnson Foundation announced the 2010 Freshwater Summit, a new initiative to focus attention on the emerging freshwater crisis in the United States, including pollution, water shortages, water infra- structure and water quality. In 2009, the SC Johnson Fund provided 3,000,000 in funding to the Johnson Foundation. Racine Art Museum The Racine Art Museum (RAM) opened in 2003 as an outgrowth of the 69 year-old Charles A. Wustum Museum of Fine Arts (Wustum). RAM operates both locations, using Wustum as an education center and RAM as home to internationally recognized exhibitions
  • 31. of contemporary crafts. The museums are a popular destina- tion for the 11 million residents of the Chicago-Milwaukee corridor and across the United States. In addition to six exhibition galleries, RAM has a world-class museum store and an art library. Both campuses offer a myriad of free community outreach programs and Wustum offers one of the largest studio arts programs of any Wisconsin museum. In the past 10 years, the SC Johnson Fund provided more than $5,700,000 to RAM’s building fund, endowment, exhibitions and education programs. Zaitz Photography 10 STRENGTHENING COMMUNITIES WWW.SCJOHNSON.COM
  • 32. NEW THIS YEAR > Worked with BoP partners to further advance our joint Kenya initiative. > Progressed in our efforts to help Rwanda pyrethrum farmers increase their supply. > Continued contributing time and money to make communities better. Advancing Social Progress and Public Health Strengthening Communities Follow links to more information wherever you see this symbol. We’re working to drive positive social change, help consumers and improve quality of life. Chairman and CEO Fisk Johnson recently visited Rwanda for an up-close look at the company’s program assisting pyrethrum farmers, and to meet some of the people it’s helping. 2010 PUBLIC REPORT 11INvESTING IN PEOPLE,
  • 33. INvESTING FOR THE PLANET Behind This Flower is a Powerful Story In June 2009, SC Johnson kicked off a partnership in Rwanda that illustrates sustainable development at its best. By helping farmers enhance their ability to supply higher-quality pyrethrum (py) — a natural insecticide extract of the chrysanthemum flower — the effort helps increase farmers’ income while increasing the supply for SC Johnson and other purchasers. What We’re Doing SC Johnson is working in active partnership with the U.S. Agency for International Development and Texas A&M University’s Borlaug Institute to support farmer organization and more effective agricultural practices. As an example, the farmers are being assisted in estab- lishing a cooperative to promote best practices for py collection and transportation. The two largest groups of 4,000 farming families are reorganizing into smaller groups of 30 to 50 growers, to allow for more effective
  • 34. and better management. With these smaller groups, the goal is to improve and accelerate services to farm- ers and to more quickly disseminate best practices. At the same time, the reorganization removes middlemen that were siphoning money from the py value chain, and instead keeps the profits with the farmers. Additionally, agronomic techniques are being improved to raise the income farmers can get from the same amount of land planted with py. Also, the effort is bringing global positioning system (GPS) and geo- graphic information system (GIS) technology to develop a crop management system that will help ensure long-term benefits to the farmers and the growth of Rwanda’s pyrethrum industry. As part of the effort, we’re also providing health information through the co-ops to the farmers, to help their families stay healthy. What’s at Stake
  • 35. The goal is to increase production each year through the end of 2011, while also increasing the py content of the yield. Despite various challenges so far, the 2009 harvest of dried py flowers delivered a yield with a 33 percent higher py content than in 2008. Also important, farmers in the region are engaging in the project and the acreage being planted is showing signs of increasing. Obviously these are good results in terms of increasing the sustainable supply of py for key purchasers like SC Johnson. But also important, as farmers see increased returns on their business, we’re hopeful it will lead to important benefits for their families, such as more reliable or higher incomes that can enable improved nutrition, health and education. What is Py? Pyrethrum, or “py,” is a natural, fast-acting insecticide extracted from the dried flower heads of chrysanthemums. Although it can be produced synthetically, py is known for the fact that it doesn’t persist as long in the environment as synthetic py. SC Johnson uses it in
  • 36. some of its pest control products, such as its Raid® and Baygon® brand insecticides sold around the world. SC Johnson has purchased py from East Africa for more than 40 years. We worked with the Pyrethrum Board of Kenya to help build capacity, stabilize the supply and bring more reliable income to farmers there. We also partnered with the NGO KickStart to bring Kenya py farmers a manual water pump for irrigating crops with groundwater. We began exploring opportunities with Rwanda py farmers in 2007. From BoP Pilot to Business-As-Usual On this page and the following, SC Johnson features investment projects with base of the pyramid (BoP) entrepreneurs and farmers. But we also have BoP proj- ects that have evolved into profitable business-as-usual. In Nigeria, we launched a motorcycle sales pilot in 2006 to reach more traditional, lower-income distribution outlets. It became a profitable success for all involved. Similarly, a Ghana effort using push bikes designed for carrying cargo now provides a solid source of income for the bicycle distributors as well as for SC Johnson. By becoming strong enough to be self-sustainable, these efforts prove out the promise of BoP investments. 12 STRENGTHENING COMMUNITIES WWW.SCJOHNSON.COM Progress from Partnership In 2006, with partner Carolina for Kibera, SC Johnson co- launched Community Cleaning
  • 37. Services (CCS) in Nairobi, Kenya, offering very low-cost cleaning services to families living at the base of the economic pyramid. Since then, CCS has achieved a solid business model cleaning public and private shared toilet facilities. Most toilets in Nairobi’s poor neighbor- hoods are shared by multiple households and are poorly maintained. Neighbors now can hire CCS to clean their toilet and share the cost, meaning regularly maintained, more sanitary toilets for about 17 U.S. cents per household. Fourteen CCS teams currently service around 225 facilities per week.
  • 38. Collaborating for Continuous Improvement Focusing on continuous improvement, since 2009, CCS and a team from SC Johnson have been working together, exploring ways to enhance the toilet cleaning processes, reduce costs and drive sales growth. A collaborative approach was key, as was the addi- tion of a team member with R&D expertise. Through hands-on research, process analysis and iterative prototyping, the teams were able to identify ways to increase cleaner productivity by 60 percent and cut cleaning time by 35 percent. In addition, they collectively devised a solution to CCS’s top customer issue: odor control. A Fresh Solution Odor is an issue in any toilet area, but especially in
  • 39. bathrooms shared by multiple households. The CCS team knew this, and that clients would pay more for toilet cleaning if odor control was included. But a chal- lenge was that air fresheners tended to disappear or be taken from the bathrooms shortly after placement. Together, we found an effective, low-cost solution: an SC Johnson toilet gel product distributed under the Duck® and Scrubbing Bubbles® brand names. Designed to be stamped out of a dispenser in devel- oped market-type toilet bowls for cleaning and odor control, the gel turned out to have great potential for the developing market, too. A dollop of gel in the toilet
  • 40. area freshens the air for seven to 10 days, and in a form that stays put. In addi- tion, it allows SC Johnson to repurpose excess gel from the routine manufacturing process. By providing a barrel of the gel to CCS instead of disposing of it, we cut material handling and disposal fees. The gel is then distributed by the pound to the entrepre-
  • 41. neurs, who transfer it to pastry bags that are reused repeat- edly for individual applications. The end result is more satisfied clients, higher profits for the cleaning teams, and less packaging and waste. More Opportunities on the Horizon To continue leveraging the momentum of the CCS effort, the SC Johnson team checks in regularly and is helping explore other opportunities. Up-and-coming efforts include quantifying the sanitation impact of CCS’s service to prove the value of the cleaning, and introducing a graphical, step-by-step training manual to help train new cleaners.
  • 42. In addition, learnings from this effort will be used in other BoP initiatives moving forward. For example, SC Johnson is undertaking an initiative in Ghana to create a sustainable business model related to malaria prevention. Read more about it on page 15. Click here to jump to the back of this book and find out more. 2010 PUBLIC REPORT 13INvESTING IN PEOPLE, INvESTING FOR THE PLANET Q You were the first SC Johnson team member with an R&D background to partner with the CCS team. How do you think your perspective was different? As a designer, my first instinct is to approach problems
  • 43. from a user-centered point of view. To do that, you really need to walk in the user’s shoes and that meant living and working with the cleaning teams as well as spending a lot of time interviewing their clients. I also interviewed the cleaning teams to understand what they’ve learned along the way and how they’ve improved processes. For example, one team learned odor control was an issue. That eventually led to the new odor control offering. Experience with iterative prototyping helped too, because we were translating needs into tangible products or
  • 44. processes that we could test and modify as necessary. Jeremy Knopow is a Senior Research Engineer and Industrial Designer at SC Johnson. He most recently visited Kenya in January 2010 and returns this summer. Expert Q&A Measuring Success SC Johnson recently provided the Community Cleaning Services team trainer with a “germ meter” to measure toilet-area microbiological levels. The meter is for quality control and to help show potential clients the sanitation benefits of toilet cleaning. A swab test before and after cleaning allows CCS to measure microbial improvement ... and demonstrate some impressive results. Germ Level Comparison 0
  • 51. m C e ll P h o n e *Germ level is measured by the amount of organic material that remains on the surface. RLUs are Relative Light Units. A chemical on the germ monitor swab causes organic materials to glow and the monitor reads the Relative Light Units, or the amount of light emitted. Turning Problems into Opportunities Here’s an example of a process opportunity that the
  • 52. CCS and SC Johnson teams co-innovated. Problem When cleaning walls, water and dish soap would be splashed onto the wall by hand. Water would run down the wall and drain away, requiring even more water to complete the cleaning task.