2010 Public rePorT

Transcription

2010 Public rePorT

Investing in People,
Investing for the Planet
They’re two sides of the same sustainability strategy
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 our environmental leadership? Start
reading here. Interested in social progress and public
health? Turn to the second half of the book and our
alternate cover, on page 19 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’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 earthresponsible ingredients.
educing Resource Use:
R
Reducing energy consumption
and greenhouse gas emissions.
Strengthening Communities:
Advancing social progress
and public health.
Protecting Families:
Preventing insect-borne diseases.
Printed on paper containing
post-consumer fiber.
Printed on paper manufactured
with renewable wind power.
Cert no. BV-COC-080715
©2010 S. C. Johnson & Son, Inc.
SC Johnson at a Glance — a look at our business
and recent environmental milestones. PAGE 4
Improving Our Products — an update on how we’re
making better products with better ingredients and
better information. PAGE 6
Reducing Resource Use — our continuing efforts
to reduce greenhouse gas emissions and minimize
energy consumption. PAGE 12
2010 Metrics Quick Reference — at SC Johnson,
we’re committed to setting sustainable development
goals, tracking our progress and reporting our results.
This is our 19th year of public reporting. Here's a
quick summary of our results. PAGE 16
Questions about this report should be directed to Kelly M. Semrau,
Vice President — Global Public Affairs and Communication, at
[email protected] or 262-260-2440.
This cover reflects a few examples of how SC Johnson is making a
difference, from continually improving our products to using innovative
power sources, including wind power, in the United States and Europe.
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
aking life better for people and the
M
planet is our mission at SC Johnson.
A Message from the Chairman and CEO
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 industryleading 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 philanthropic arm, the SC Johnson Fund, Inc., as well as
ongoing philanthropy by the company that began
decades earlier. We continued to invest in baseof-the-pyramid business co-creation.
Investing in People, Investing for the Planet
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
2010 PUBLIC REPORT
3
SC Johnson at a Glance
12,000 people working in 70+ countries to make the world better.
Product Categories
Business Profile
Home Cleaning — creating clean and hygienic homes.
Sales: More than $8 billion
Pest Control — helping protect families from pests
that can carry malaria, dengue and other diseases.
Status: Privately held; led by the Johnson family for
five generations
Air Care — offering benefits from relaxing ambiance
to odor elimination.
Employees: 12,000
Home Storage — keeping food fresh and protecting
families’ possessions.
Headquarters: Racine, Wisconsin
Industry: Household consumer products
Markets: Our products are sold in virtually every country
around the world.
Operations: 70 countries
Major Brands
Primary Manufacturing Locations: Argentina, Canada,
China, India, Indonesia, Mexico, The Netherlands,
the United Kingdom and the United States
Commitment
Everywhere we operate around the world, along with
introducing innovative and quality products that meet
the needs of families, SC Johnson is committed to:
•respecting people and supporting universal
human rights
•adhering to all local laws and regulations regarding
products and how they’re made
•choosing more earth-responsible ingredients
•reducing emissions, waste and the use of fossil fuels,
and we’re now looking at new ways to minimize
landfill impact, too
•contributing to our host communities through
philanthropic contributions and local volunteerism
Other Businesses
In recent years, SC Johnson also acquired The Caldrea
Company, marketer of the Mrs. Meyer’s Clean Day®
and Caldrea® brands, and Soy Basics, maker of soy candle
brands including Beanpod Candles®, Soy Scentsations® and
Soy Inspirations®. We also acquired majority ownership of
Fruits & Passion, the Quebec company that manufactures
and sells personal care and ambiance products.
Plus other trusted brands and regional product lines:
Find It Online:
SC Johnson is in its 19th year of publicly
reporting progress on sustainability objectives. Visit www.scjohnson.com/2010Report
for information about our reporting practices. Or, contact
Kelly M. Semrau, Vice President – Global Public Affairs and
Communication, at [email protected] or 262-260-2440.
4
SC JOHNSON AT-A-GLANCE
WWW.SCJOHNSON.COM
A Look at News from 2009
Along with launching more than 100 new products in 2009 and continuing to drive growth
of the business, SC Johnson also achieved a variety of sustainability milestones during the
year. Here’s a brief look at a few of these accomplishments ...
JANUARY
SC Johnson launches the Nature’s Source® line of cleaning
products made with 99+% natural or naturally derived
ingredients. The line combines
the power of trusted brands
like Scrubbing Bubbles® and
Windex® with a formula for
consumers who want to tackle
household jobs naturally.
MARCH
At its World Leadership Forum Luncheon
in New York City, the Foreign Policy
Association distinguishes both
SC Johnson and our Chairman and CEO
Fisk Johnson for commitment to corpo
rate social responsibility. The recognition
was due to the company’s longstanding
environmental and sustainability leadership. In particular,
the Foreign Policy Association noted our success in inno
vating, manufacturing and marketing environmentally
responsible products and our patented Greenlist™ process,
as well as our renewable energy initiatives.
NOVEMBER
SC Johnson announces plans to go beyond regulatory
requirements and voluntarily provide ingredient information
— including dyes, preservatives and fragrance ingredients —
for our air care and home cleaning products. We also
introduce www.whatsinsidescjohnson.com to make this
ingredient information readily accessible and understand
able for consumers on the Internet.
In support of Conservation International’s Team Earth
and to generate engagement for the cause, SC Johnson
creates a section of its web site to collect environmental
tips and inspire dialogue. For each tip shared, the company
commits to contribute $1 to Team Earth, up to $25,000.
SC Johnson launches Ziploc® evolve™ sandwich and storage
bags. The new line offers the same quality seal and freshness
protection, convenience and price that consumers rely on,
but is made with 25 percent less plastic than regular Ziploc®
brand bags and manufactured with a
combination of renewable wind energy
and energy from traditional sources.
Just nine months after launching our industry-leading
ingredient web site, SC Johnson
completes the task of populating
the U.S. site with more than
200 air care and home cleaning
products and their ingredients.
We also announced a Spanishlanguage version of the U.S. site,
which launched in February 2010.
JULY
In Mijdrecht, The Netherlands, SC Johnson launches our first
owned and operated windmill at our largest European plant,
called Europlant. The new windmill adds to SC Johnson’s
strategic array of clean energy projects
designed to reduce greenhouse gas
emissions. It is expected to generate
66 percent of the electricity needed
to power Europlant.
SEPTEMBER
SC Johnson becomes a founding
partner of Conservation International’s
Team Earth, a worldwide sustainability
effort that unites businesses, non-profit
organizations, scientists, educators
and individuals to address the most
pressing environmental issues.
SC Johnson’s Nature’s Source® cleaning products are among
the first to receive the Green Good Housekeeping Seal, an
extension of the well-known Good
Housekeeping Seal. The new designa
tion is designed to set the
bar for consumers who want to live
a greener lifestyle.
And in January 2010 ...
SC Johnson launches a
wind energy pilot program
at our headquarters cam
pus in Racine, Wisconsin.
Three Swift turbines are
installed on the roof of
one of the buildings on
campus and connected
to the company’s electrical distribution system. We hope
to gain from this experiment a clear picture of the number
of computers, machines and basic office resources that
can be powered by this renewable energy.
2010 PUBLIC REPORT
5
Improving Our Products
Choosing More Earth-Responsible Ingredients and Being Transparent
We’re committed to
making better products,
and communicating
openly about them.
NEW THIS YEAR
> Developed plans to further improve our Greenlist™ ingredient selection process.
> Expanded ingredient disclosure to Canada and to Spanish-speakers in the U.S.
> Invested in new products and product improvements that have a lighter footprint.
Follow links to more information wherever you see this symbol.
6
WWW.SCJOHNSON.COM
Better Products from Better Information
In 2001, SC Johnson transformed how we evaluate ingredients with our Greenlist™ process
for classifying ingredients considered for use in our products. Nearly 10 years later, we’re
continuing to expand and develop the process.
What is Greenlist™?
Our now-patented Greenlist™ process provides
ratings for more than 95 percent of the ingredients
we use. Each potential ingredient is rated from
3 to 0, with 3 considered “Best,” 2 “Better,” 1
“Acceptable” and 0-rated materials used only
in special circumstances.
The goal is that beyond meeting legal and regulatory
requirements, we use the Greenlist™ process to
annually increase the proportion of our ingredients
with the least impact on the environment and human
health. We started at 4 percent “Best” ingredients
in 2001; today we are at 18 percent.
10%
0-rated materials
1%
4%
best
14%
0-rated materials
55%
acceptable
(kg of raw material by EC,
5 base categories)
Expert Q&A
The Greenlist™ process has led to many improvements, such as phasing out less desirable ingredients
like PVC packaging. Similarly, we’ve improved numerous formulas to work better and have less impact.
For example, we’ve cut nearly 48 million
pounds of VOCs from our products in the
last five years.
18%
Results for
2008/09
Baseline
2000/01
73%
How We’re Doing
best
better
acceptable
When SC Johnson scientists create a new product,
they work to select ingredients rated “Better” or
“Best.” When products are reformulated, the scientist
must use ingredients with ratings equal to or higher
than the original formula. While some ingredients with
a 0 score aren’t restricted by government regulatory
requirements, we use them only when there isn’t a
viable alternative.
26%
better
(kg of raw material by EC, 37 chemical
and 12 component material types)
We’ve also made good progress toward
our aggressive 2011 aspiration of raising
our overall average ingredient rating to 2.
When we started Greenlist™, 18 percent of
our ingredients had a rating of 2 or better.
By 2008/09, we’d brought that number
up to 44 percent.
But we haven’t reached our target yet.
Like any good scientific process, using the
Greenlist™ process is a continual learning
experience, and we continue to identify
ways to make it even more valuable.
Enabling Better Decision-Making
A Q&A with SC Johnson’s Dan Lawson
Q What is SC Johnson doing to drive product
improvements with the Greenlist™ process?
Our goal is to make it as easy as possible for our
scientists to make better decisions. We call it
“decision-making at the bench,” meaning the actual
lab table. We want to make sure that the Greenlist™
process is readily understandable and practically
applicable to product development.
So, we’re continually working on tools that help
our scientists more easily see and evaluate potential
ingredient options for a particular
product function. We want them to
be able to play around with those
options to see how different choices
would lower a product’s impact.
Dan Lawson is Sustainable Innovation
Manager for SC Johnson.
There’s more! Click here to jump to the back of this
book and read the entire interview, including what else
SC Johnson is doing to drive product improvements.
2010 PUBLIC REPORT
7
Showing What We’re Made Of
In March of 2009, SC Johnson announced a broad ingredient communication program.
It was the logical extension of the Greenlist™ process that has been helping us select better
ingredients for the environment and human health since 2001.
Knowing that families today want to understand
more about the products they use in their homes,
we decided to go beyond industry ingredient com
munication guidelines that had been announced.
Instead, we committed to listing dyes, preservatives
and fragrance ingredients, which aren’t part of the
industry program, and making our information available through not just one, but three sources: online,
on product labels and via a toll-free number.
Recognizing the launch, Paul Lapierre of Canadian
Cancer Society noted, “We believe that Canadians
have the right to know which ingredients are in
the products that they buy so that they can make
informed decisions about their health and about the
products that they use in their homes. We applaud
SC Johnson’s initiative to list ingredients on their
products’ labels, and we encourage other companies
to follow suit.”
Since that 2009 announcement, SC Johnson has
achieved three key milestones in the implementation
of our disclosure program:
•In March 2010, SC Johnson became the first company in our industry to offer a Spanish-language
ingredient site. Just like its
English counterpart, the
site offers easy-to-access
and easy-to-understand
information about the ingredients in SC Johnson’s
U.S. air care and home
cleaning products.
•In November 2009, just eight months after
announcing our plans, we had populated our U.S.
ingredient site, www.whatsinsidescjohnson.com.
The site now includes more than 200 air care and
home cleaning products, and the hundreds of
ingredients they include.
•In December 2009,
SC Johnson Canada
launched its own
ingredient site in
both English and
French, located at
www.whatsinsidescjohnson.ca
and www.souslemballagescjohnson.ca.
Chairman and CEO Fisk Johnson said, announcing
the news, “Families want to know what’s in
the products they use in their homes. By making
that information accessible to Spanish-speaking
consumers too, we’re helping even more families
understand that they can trust our products and
our company.”
A History of Ingredient Leadership
While all SC Johnson products meet legal and regulatory requirements, studies occasionally surface new information that
makes a particular ingredient less desirable. In these cases, we often choose to go beyond the requirements and replace
these ingredients with others that have a better environmental or health profile. Here are a few examples …
• CFCs – eliminated in 1975, three years before the
U.S. government mandated doing so, because of
concerns about their impact on the ozone layer.
• Chlorine-bleached paperboard packaging –
eliminated in 2002 because the chlorine can cause
contamination of air and water.
• DDVP, an organophosphate insecticide –
eliminated in 2004 because of links to human health
and environmental risk.
• Paradichlorobenzene (PDCB) in toilet products –
• Phthalates – being eliminated now at SC Johnson’s
direction from the fragrances supplied for our products,
because of consumer concerns about the larger class
of substances in the phthalate family.
• Polyvinyl chloride (PVC) – eliminated from our
packaging in 2002 because it’s not recyclable and
has been linked to health problems and other issues.
• Propoxur, an insecticide – eliminated in 2006
because of concerns about toxicity and persistence
in the environment.
eliminated in 1993 due to concerns about its effect
on ozone in the upper atmosphere and potential to
contaminate water and accumulate in the food chain.
8
WWW.SCJOHNSON.COM
Policies and Partnerships
No company can operate at its best without policies and partnerships that offer checks
and balances, as well as surfacing new ideas. That’s why we invest time and effort in both.
Here’s a look.
A Matter of Policy
From how we develop and market products to how
we run our factories, SC Johnson has thorough guidelines that direct our actions. For example, we have
environmental policies on topics such as protecting
air quality and safeguarding rivers, lakes, wetlands
and oceans.
Alignment with policies is audited at SC Johnson
factories around the world at least once every five
years, which has led to continuous improvements in
factory standards. Following an audit, an SC Johnson
operation has 60 days to respond with a description
of actions to be taken and a timeline for completion.
How we determine product claims is a matter of
policy, too. Claims can’t be made simply for marketing
purposes — we have detailed standards for terms such
as “biodegradable” and “natural,” as well as for performance claims. Along with helping ensure consistency
in how we talk about our products, these guidelines
also help ensure that claims are science-based.
Setting the Record Straight
Despite our ongoing commitment to responsibility, like any company SC Johnson occasionally
finds itself in the spotlight due to Internet rumors
or other media that make negative claims about
our products or product categories. But we don’t
let misinformation stand.
We carefully evaluate all SC Johnson products
and take safety allegations and concerns very
seriously. In fact, in a typical year SC Johnson
explores at least 50 hoaxes, rumors or claims
that surface online or in the media.
Fact-based, scientific evidence is usually enough
to correct misinformation. When a question is
raised, we may review scientific literature, evaluate testing procedures, consult with experts,
work with industry groups and more. We don’t
stop until we’re fully satisfied that concerns are
groundless. We’ve worked hard to foster a reputation for doing what’s right, and that’s something
we will always uphold and defend.
Helpful Partnerships
Some of SC Johnson’s policies and guidelines
develop over time as we learn from our own
experiences and from outside partners. In 2005,
SC Johnson became the first major consumer
packaged goods company to partner with the
U.S. EPA in its Design for the Environment (DfE)
program. It’s one of several partnerships that help
us continuously improve our products.
The DfE Safer Product Labeling
Program uses EPA’s expertise and
resources to evaluate products and
label those that meet the program’s
high standards. Our current DfE products include
items in our Nature’s Source®, Scrubbing Bubbles®
and Shout® brands.
Another DfE program, the Safer Detergents
Stewardship Initiative, recognizes companies
that voluntarily commit to using safer surfactants
in their products. SC Johnson was named a
Champion in the Safer Detergents Stewardship
Initiative in 2008, the highest level achievable.
We also gained Charter for
Sustainable Cleaning membership
in 2006 with the International
Association for Soaps, Detergents
and Maintenance (A.I.S.E.) in Europe.
This voluntary membership means we’ve committed to continually improving our products and
processes in ways that benefit human health and
the environment.
A Policy Example
We often hear from consumers and organizations
who want to know SC Johnson’s position on
animal testing, so we’ve made it easily accessible
in the “Points of View” section of our online Press
Room. The bottom line is that we have to meet
government, safety and environmental requirements
for our products, but we’re working toward ways to
do so while continually minimizing animal testing.
Visit www.scjohnson.com/en/press-room/pointsof-view.aspx to access the full position statement.
2010 PUBLIC REPORT
9
Superior Products, Made Smarter
Each day, SC Johnson products are used by millions of families around the globe. That’s
why we think it’s so important that our products not only be innovative, but also effective
and responsible. Here are a few examples of recent product advances.
This innovative mosquito coil is made using more
than 50 percent recycled paper instead of the usual
mixture of sawdust and other ingredients. As a result,
it weighs a third less than normal coils, but is actually
more durable. Since it’s not easily breakable like other
coils, we were able to reduce the packaging around
it by more than 70 percent.
In China, we updated both the formula and the bottle
for this Mr. Muscle® Heavy Duty Kitchen Cleaner. A 30percent-lighter bottle means less plastic and the new
formula is less caustic, has a lower cost and still works
as well or better than competitive products. Producing
it requires 350 fewer tons of ingredients annually.
These ultra-light Ziploc® evolve® bags are made
with 25 percent less plastic than regular Ziploc®
brand bags, and are manufactured with a combination of renewable wind energy and energy from
traditional sources.
Our new Earth Options by Raid® products give
consumers a great solution for outdoor pests. Two
of the products use pyrethrum, a botanically derived
insecticide from the chrysanthemum flower. The
Insecticidal Soap is approved for organic production
by the USDA’s National Organic Program, and is listed
by the Organic Materials Review Institute (OMRI) for
use in the production of organic food and fiber.
10 Improving Our Products
WWW.SCJOHNSON.COM
An evaluation of Windex® glass cleaner formula
showed we could make the surfactant and solvent
work together better. We optimized the ratio of
ingredients and were still able to satisfy consumers.
Even better, the new combination of ingredients
and quantities used gives the product an even
better environmental profile.
Along with delivering superior coverage in tubs and
showers, Scrubbing Bubbles® Daily Shower Cleaner
Power Sprayer, along with Scrubbing Bubbles® Extend-A-Clean™ Power Sprayer for bathroom
surfaces, brings one-touch ease to consumers who
aren’t able to or prefer not to repeatedly squeeze
a trigger. In fact, it’s earned the Arthritis Foundation’s
Ease of Use Commendation seal.
Nature’s Source® cleaning products were
among the first to receive the new Green Good
Housekeeping Seal. This designation is meant
to set the bar for consumers who want to live
a greener lifestyle. Nature’s Source® cleaners
are packaged in recyclable bottles and contain
99+ percent natural ingredients.
Glade® PlugIns® Scented Oil refills used to come
in boxes with larger, plastic-covered windows. By
changing to these smaller, teardrop-shaped windows,
we could eliminate the plastic, making the packages
easier to produce, transport and recycle.
2010 PUBLIC REPORT
11
Reducing Resource Use
Reducing Energy Use and Greenhouse Gas Emissions
We’re committed
to continually
lightening our
impact on the world.
NEW THIS YEAR
> Began partnering with WRI and ClearCarbon to test new GHG reporting protocols.
> Joined Conservation International in launching its Team Earth program.
> Achieved further progress toward our 2011 greenhouse gas reduction goals and
laid groundwork for working in new ways to minimize landfill impact.
12 Reducing Resource Use
WWW.SCJOHNSON.COM
Doing Better, With Less
For decades, SC Johnson has taken steps to minimize our impact. Since 2000 alone, our
worldwide factory greenhouse gas emissions are down nearly 32 percent, far surpassing
our goal of a 12 percent reduction by the end of 2010. And we want to do even more.
That’s why SC Johnson has been helping to develop,
and now test, standards for measuring and reporting
greenhouse gas (GHG) emissions across corporate
and product supply chains.
Energy Innovations, GHG Advances
From wind power to waste palm shells to methane
from a public landfill, SC Johnson uses innovative
energy sources to minimize our GHG impact. And
it’s working:
Expanding Reporting
This is the latest step of the GHG Protocol Initiative
convened by the World Resources Institute and the
World Business Council for Sustainable Development.
On the heels of previous standards, such as the GHG
Protocol Corporate Accounting and Reporting Standard
that SC Johnson employs, this new effort aims to
define standards and measures for broader reporting.
> 2009 global manufacturing GHG emissions down
31.6% vs. 2000 on an absolute basis
> 2009 U.S. GHG emissions down 29.1% vs. 2005
on an absolute basis
> 39.7% of the company’s electricity sourced from
renewable energy
In January, SC Johnson joined a formal test of the
Scope 3 (Corporate Value Chain) Accounting and
Reporting Standard. This new standard broadens
companies’ measurement to include what are known
as “Scope 3” emission sources — upstream activity
such as direct supplier emissions, waste generated,
and company business travel, as well as downstream
activity such as transportation and distribution,
consumer use and product disposal.
WRI Q&A
Expert Q&A
Testing the New Standard
The goal is to incorporate real-world feedback that
ensures the new standard can be implemented by
companies of all sizes, geographies and industries.
About 60 companies are testing the Scope 3 protocol
or its sister effort, the Product Life Cycle Accounting
and Reporting Standard.
Making Measurement Matter
A Q&A with ClearCarbon’s Kyle Tanger
Q
Is there a business case for companies to get
involved with greenhouse gas (GHG) reductions?
Absolutely. Carbon, quite simply, is money. I think
companies are finding that when they reduce their
carbon footprints, they save money. Carbon has
a price, whether that price is pollution, the cost
of energy or something else. Having a low carbon
footprint is a strong cost-efficiency initiative.
Calculating a carbon footprint is where the GHG
Protocol standards come in. Standard protocols and
measurements will give companies a more accurate
picture of the environmental, economic and social
impact of the products they make. This will help companies identify the best partners and make strategic
decisions for sourcing materials and creating products.
It lets companies see the available choices, weigh the
tradeoffs and avoid unintended consequences.
Q How does the supply chain fit in?
When it comes to most consumer
products, companies are realizing
that a majority of the emissions
created during a product’s lifecycle occur within
the supply chain. A tremendous amount of energy
goes into finding and processing raw materials,
transporting materials and making them into finished
products. Even before products are sold to consumers,
many have a huge amount of embedded energy.
Kyle Tanger is the founder and CEO/President of ClearCarbon,
which helps organizations create competitive advantage
through carbon measurement, management and monetization.
SC Johnson is working with ClearCarbon as we test the Scope 3
protocol. www.clearcarboninc.com
book and read the entire interview, including what
Kyle sees on the horizon.
2010 PUBLIC REPORT 13
Measuring Our Progress
Here’s a look at SC Johnson’s 2009 progress against our company’s energy, emissions and
other goals. We’re thrilled to have already achieved three of these four corporate objectives,
which are due to be completed by the end of 2010.
Waste and Emissions Reduction
Greenhouse Gas Reduction — U.S.
GOAL: By 2011, for global manufacturing reduce combined
air emissions, water effluents and solid waste by 50 percent
versus the 2000 baseline, as a ratio to production.
GOAL: By 2011, reduce on an absolute basis U.S. GHG
emissions another 8 percent versus the 2005 baseline.
-40.5%
2007
ACHIEVED
-54.0%
2010
0
10
20
30
40
50
ACHIEVED -17%
ACHIEVED
2008
2009
GOAL
2009
7%
2007
-46.0%*
2008
-2.4%
2006
GOAL
-33.71%
2006
2010
60
70
-8
-4
0
4
8
12
16
20
-29.1%
24
28
32
Greenhouse Gas Reduction — Worldwide
Global Renewable Energy
GOAL: By 2011, reduce GHG emissions for all worldwide
factories by 12 percent versus the 2000 baseline on an
absolute basis.
GOAL: By 2011, source 40 percent of total electricity usage
worldwide from renewable energy.
-9.4%
2008
2009
ACHIEVED
ACHIEVED
ACHIEVED
GOAL
2007
2010
0
3
6
9
12
-15%
-27%
2006
28%
2007
28%
36%
2008
-31.6%
39.7%
2009
GOAL
2006
2010
15
18
21
24 27 30 33
0
10
20
30
40
50
* Our last Public Report indicated we held steady at -40.5% in 2008, however when all final global data was in, we had achieved a 46% reduction.
Here’s a look at SC Johnson’s 2009 energy consumption by source.
Direct Energy Consumption by Source
4%
5%
gasoline
Indirect Energy Consumption by Source
2%
37%
LPG
purchased
renewable
electricity
palm shells
20%
landfill gas
1%
60%
kerosene
5%
fuel oil
natural gas
2%
62%
purchased
electricity
1%
purchased
steam
diesel
14 Reducing Resource Use
WWW.SCJOHNSON.COM
Continuous Commitment, Continuous Progress
Here’s a look at a few of the ways SC Johnson is continuing to progress our commitment to
reducing greenhouse gas impacts around the globe.
New Winds of Change
Smarter Shipping, Lower Emissions
In 2009, SC Johnson launched its first company-owned
windmill, at our largest plant in Europe. The 262-foot
wind turbine generates about 66 percent of the electricity needed to power our plant, preventing 3,930 metric
tons of greenhouse gas (GHG) emissions annually.
In 2009, SC Johnson worked to implement legislation
in Wisconsin that provides a special permit for heavier
truckloads. With the permit, we can safely increase the
weight of shipments to our local warehouses to 98,000
pounds from the normal 80,000-pound loads. The
heavier loads result in 72,000 fewer shipping miles traveled yearly and 15.7 tons of carbon dioxide eliminated.
In addition, 100 percent of 2009 outbound SC Johnson
shipments were handled by carriers participating in the
U.S. EPA’s SmartWay1 Transport Partnership, up from
78 percent in 2008.
We then continued to push the winds of change in
January 2010, launching a one-year wind energy pilot
program at our headquarters
in Racine, Wisconsin. Three
Swift mini-wind turbines
were installed on one of our
office buildings, with the goal
of reducing GHG emissions
while raising awareness that
renewable energy can be
used in urban settings.
SmartWay is a trademark of the U.S. Environmental
Protection Agency.
1
Click here to jump to the back of this book and
find out more.
Supporting Team Earth
In September 2009, SC Johnson became a founding member of Conservation International’s Team Earth
project, which unites businesses, non-profit organizations, scientists, educators and individuals to address the
earth’s most pressing environmental issues. Team Earth’s first challenge is climate change, making it a natural
fit for our commitment to innovative renewable energy solutions and reducing GHGs. SC Johnson’s participation
includes financial and other support. As one small example, last fall we created a special section of our web site
where consumers can share environmental tips. For each tip submitted, SC Johnson is giving $1 to Team Earth,
up to $25,000. Visit it at www.scjohnson.com/TeamEarthTips
Expert Q&A
Collaborating to Drive Results
A Q&A with Conservation International’s Julie Blackwell
Q What benefits do companies bring to the Team
Earth coalition?
Because it blends top-name consumer brands,
scientific research and individuals all around the
world, Team Earth offers a unique approach to green
outreach. For example, when we launched this spring’s
“do more / do less” campaign, our partners carried
the message to their employees and customers. These
are individuals CI didn’t directly reach before, meaning
millions of people are being encouraged to do more by
planting trees or using compact fluorescent lights, and
do less by driving less and creating less waste.
Q Many of the companies involved with Team Earth
already have sustainability campaigns in place. What
will they do differently as members of Team Earth?
Having strong sustainability practices
makes them valuable partners. Still, a
company working alone can only accomplish only so much. When several
companies collaborate and leverage
the messages of one another, the possibilities are endless. Plus, Conservation International is a neutral third
party that companies can tap as a source of information when educating their employees and customers.
Julie Blackwell is Senior Director – Conservation International
and Team Earth. You can learn more about CI and the Team Earth
initiative at www.teamearth.com
book and read the entire interview, including where
Julie sees corporate collaborations going in the future.
SC Johnson 2010
Metrics Quick Reference
We believe in taking a holistic
approach to sustainable business.
That's why this 2010 Public Report
shares progress across both the
environmental and social facets
of sustainability.
By 2008/09, 44 percent of our ingredients were rated
"Better" or "Best." Page 7.
1%
4%
10%
best
0-rated materials
18%
0-rated materials
14%
best
better
Results for
2008/09
Baseline
2000/01
73%
26%
55%
acceptable
better
acceptable
(kg of raw material by EC,
5 base categories)
(kg of raw material by EC, 37 chemical
and 12 component material types)
By 2009, we had completed three of our four corporate energy and emissions goals. Page 14.
Waste and Emissions Reduction
Greenhouse Gas Reduction — U.S.
GOAL: By 2011, for global manufacturing reduce combined
air emissions, water effluents and solid waste by 50 percent
versus the 2000 baseline, as a ratio to production.
GOAL: By 2011, reduce on an absolute basis U.S. GHG
emissions another 8 percent versus the 2005 baseline.
-40.5%
2007
ACHIEVED
-54.0%
2010
0
10
20
30
40
50
ACHIEVED -17%
ACHIEVED
2008
2009
GOAL
2009
7%
2007
-46.0%*
2008
-2.4%
2006
2010
60
70
-8
-4
0
4
GOAL
-33.71%
2006
8
12
16
20
-29.1%
24
28
32
Greenhouse Gas Reduction — Worldwide
Global Renewable Energy
GOAL: By 2011, reduce GHG emissions for all worldwide
factories by 12 percent versus the 2000 baseline on an
absolute basis.
GOAL: By 2011, source 40 percent of total electricity usage
worldwide from renewable energy.
-9.4%
2008
2009
ACHIEVED
ACHIEVED
ACHIEVED
2010
0
3
6
9
GOAL
2007
12
-15%
-27%
2006
28%
2007
28%
36%
2008
-31.6%
39.7%
2009
GOAL
2006
2010
15
18
21
24 27 30 33
0
10
20
30
40
50
* Our last Public Report indicated we held steady at -40.5% in 2008, however when all final global data was in, we had achieved a 46% reduction.
16 2010 METRICS QUICK REFERENCE
WWW.SCJOHNSON.COM
Our community leadership encompasses time and financial support — more than $180 million in contributions in the past
10 years. Page 32.
General Manager Participation
On Community Boards
SC Johnson Operations Organizing
a Major Employee Volunteer Event
Fiscal Year 2008/2009.
100
100
90
88%
86%
87%
90
80
80
70
70
60
60
50
50
40
40
30
30
20
20
10
0
71%
76%
74%
Developing
Markets
Total
10
Developed
Markets
Developing
Markets
0
Total
Developed
Markets
PEOPLE – PAGE 11: Tem simagnis autenda dolore doloriatur.
190,000,000
Worldwide
Sed ea coneces equaercias
id et
180,000,000
Corporate
quidunt fuga. tenda dolore
dolo170,000,000
Philanthropic
riatur. Sed ea cone
160,000,000
Contributions
150,000,000
Rolling 10-year
cumulative
contributions
(includes
SC Johnson
Fund, Inc.)
in U.S. dollars.
140,000,000
130,000,000
120,000,000
110,000,000
1999
2000
Here's a look at SC Johnson's direct and indirect
energy consumption in 2009. Page 14.
Direct Energy Consumption by Source
4%
5%
gasoline
2%
LPG
palm shells
20%
landfill gas
1%
60%
kerosene
5%
fuel oil
2003
2004
2005
2006
2007
2008
2009
We continue to be highly committed to ensuring
consistent safety, health and environmental conditions
at all of our factories. Page 41.
Worldwide Safety Performance Record
40
Days Lost
Medical Incidents
Lost Time Incident Rate
35
30
25
20
15
10
5
0
89
91
92 93 94 95 96 97 98 99 00
01 02 03 04 05 06 07 08 09
YEAR ENDING
2%
Indirect Energy Consumption by Source
37%
purchased
renewable
electricity
62%
2002
natural gas
diesel
purchased
electricity
2001
PER 200,000 HOURS WORKED
100,000,000
1%
purchased
steam
Data provided in this report was prepared following the
2002 Global Reporting Initiative (GRI) Sustainability Reporting
Guidelines except for financial and production data, which is
business confidential and considered proprietary by this private
family enterprise.
— Dr. H. Fisk Johnson,
Chairman and CEO, S. C. Johnson & Son, Inc.
Questions about this report should be directed to
Kelly M. Semrau, Vice President — Global Public
Affairs and Communication, at [email protected]
or 262-260-2440. For further information regarding
SC Johnson and its legacy of sustainability leadership,
please visit www.scjohnson.com
TURN THE PAGE TO SEE OUR ALTERNATE COVER AND READ how SC Johnson is investing in people.
Investing in People,
Investing for the Planet
They’re two sides of the same sustainability strategy
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 first half of the book and our
alternate cover, on page 1 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’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 earthresponsible ingredients.
educing Resource Use:
R
Reducing energy consumption
and greenhouse gas emissions.
Strengthening Communities:
Advancing social progress
and public health.
Protecting Families:
Preventing insect-borne diseases.
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.
©2010 S. C. Johnson & Son, Inc.
SC Johnson at a Glance — a look at our
organization, stakeholders, and recent social and
community milestones. PAGE 22
Celebrating Philanthropy — marking the 50th
anniversary of the SC Johnson Fund, Inc. PAGE 24
Strengthening Communities — how we’re building
businesses at the base of the pyramid and investing
in communities around the globe. PAGE 28
Protecting Families — our continuing efforts to
prevent insect-borne diseases through research,
education and products. PAGE 34
Offering Great Workplaces — how we’re protecting
the safety and well-being of our people, as well as
our unique and respected culture. PAGE 38
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.
Find Out More
our web site to find out about the company and
its history. We're at www.scjohnson.com
aking life better for people and the
M
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 industryleading 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 philanthropic arm, the SC Johnson Fund, Inc., as well as
ongoing philanthropy by the company that began
decades earlier. We continued to invest in baseof-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
SC Johnson at a Glance
12,000 people working in 70+ countries to make the world better.
Sustainability Objectives
Our 2011 strategy calls for the achievement of these sustainability objectives:
Environmental
Social
Economic
•Continuously improving the raw materials
scores of our products as measured by
our Greenlist™ process.
•Contributing to public
health by helping
minimize the spread
of insect-borne diseases
through products
and education.
•Continually growing by
meeting consumer needs with
innovative products of superior
quality and value that enhance
people’s lives.
•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.
•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.
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.
•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
Consumers
and Users
Employees
Customers
and Partners
General
Public
Industry
Associations
Policy
Makers
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
Neighbors
and Hosts
World
Community
Media
NGOs
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
Find It Online:
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.
22 SC JOHNSON AT-A-GLANCE
Safety/Health, Environment and Quality
Sustainable Innovation
Community Leadership
Public Affairs and Communication
Government Relations
WWW.SCJOHNSON.COM
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 …
MARCH
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.
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.
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.
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 purchasers 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.
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).
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.
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.
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.
Five Decades of Philanthropy
The SC Johnson Fund, Inc. — 1959-2009
We believe in having
a positive impact on
the communities in
which we operate
and the world at large.
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.
24 CELEBRATING PHILANTHROPY
WWW.SCJOHNSON.COM
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.
18%
Total SC Johnson
Fund, Inc. grant
dollars allocated
by interest area,
2000-2009
economic vitality
9%
healthy
environment
73%
social equity
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 & Daughters Scholarship Program for
dependents of employees
and retirees, the SC Johnson
Fund also established a
Young Leaders Scholarship
program to assist economi- Among 45 new scholarship
recipients in 2009, one was
cally disadvantaged high
Eric Wagers, pictured here
with his parents who are both
school seniors of nonSC Johnson employees.
employee families in the
Racine area. Students who plan to continue their education 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.
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.
1998
$3 million to
The Nature Conservancy
for conservation of biodiversity and promotion
of compatible economic
development in the
Caatinga eco-region
of Brazil.
2002 $9 million to
Racine Charter One, Inc.,
supporting 21st Century
Preparatory School,
a K-8 independent
school established for
Racine’s diverse student
population.
2004
$2.2 million
to the Mayo Foundation
for Medical Education
and Research, to support
the Samuel C. Johnson
Program in the Genomics
of Addiction.
2009
$3 million to
the Johnson Foundation
at Wingspread, which
this year is focusing
attention on the emerging
freshwater crisis in the
United States.
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.
Opportunities
Industrialization Center
The Opportunities Industrialization Center
is a worldwide organization of local affiliates that provide employment-related services to
disadvantaged 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 provides 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 apprenticeship and to graduate at least 75 percent in a GED
or high school equivalency program.
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, policymakers and others to preserve the
Great Lakes. The program has
several focus areas, including
water quality, water conservation, 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.
Since 1996, the SC Johnson Fund has provided
$1,073,000 to the OIC of Racine County.
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 annually through 1,100 partner
hunger relief agencies that
serve the hungry directly.
Each year, SC Johnson
makes large product donations 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.
26 CELEBRATING PHILANTHROPY
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 familysupporting 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.
WWW.SCJOHNSON.COM
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 willingness 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.
The Johnson Foundation
at Wingspread
The Johnson Foundation at Wingspread 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 institution 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 infrastructure and water quality.
In 2009, the SC Johnson Fund provided 3,000,000
in funding to the Johnson Foundation.
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, including watershed and forest protection,
biodiversity conservation, carbon sequestration
and ecotourism.
CI’s mission includes
empowering societies
to responsibly and sustainably care for nature.
As part of this mission,
over the next three years Conservation International plans to support the development of a green
economy in Rwanda. CI hopes the economy will
serve as a regional model for integrating ecosystem 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.
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 destination 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.
Zaitz Photography
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.
Strengthening Communities
Advancing Social Progress and Public Health
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.
We’re working to drive
positive social change,
help consumers and
improve quality of life.
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.
28 STRENGTHENING COMMUNITIES
WWW.SCJOHNSON.COM
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 establishing 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 farmers 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 geographic 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.
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.
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.
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 projects 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.
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 neighborhoods 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
Click here to jump to the
CCS teams currently
back of this book and find
service around 225
out more.
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 addition 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 challenge 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 developed 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 addition, 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 entrepreneurs, who transfer it to pastry
bags that are reused repeatedly 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.
WWW.SCJOHNSON.COM
Turning Problems into Opportunities
Measuring Success
Here’s an example of a process opportunity that the
CCS and SC Johnson teams co-innovated.
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.
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.
Germ Level Comparison
Expert Q&A
50
50
50
40
30
20
15
10
10
hone
Cell
P
T
Clea ypical R
ou
ne
Cou d Deve tinely
ntry
lo
Bath pedroom
BoP
Bath
room
CCS AFTE
R
Clea
ning
0
Results
By using less water, the cleaners can make fewer
trips to the water source, which is often distant. This
increases the number of sites that can be cleaned in a
day and reduces costs since most water sources charge
a fee. Water use is down 57 percent and local team profits can more than double, particularly during frequent
droughts and soaring water costs. Plus, there’s a benefit
for SC Johnson since the more successful cleaner is an
SC Johnson product.
60
60
BoP
Bath
room
CCS Before
Clea
ning
Teams now mix the water
and cleaner into a foam
by pouring them back and
forth between two buckets.
The foam stays on the wall
for a thorough scrubbing,
and requires about half as
much water and cleaner. The
team has since identified
the potential to switch from
dish soap to SC Johnson’s
Mr. Muscle® brand low-cost
kitchen cleaner. It cleans
well but without as many
suds as dish soap, meaning
less rinsing is required.
Germ Level (RLU x 1000)
Solutions
*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.
Uncovering Insights, Creating Solutions
A Q&A with SC Johnson’s Jeremy Knopow
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.
book and read the entire interview, including Jeremy’s
perspective on how this initiative has affected the lives
of the entrepreneurs.
Acting in Our Communities
As 2009 brought another year of challenges for communities around the world, SC Johnson
once again sought ways to lend a hand to those in need. We believe unwavering support is
fundamental to being a responsible and resilient member of our communities around the globe.
Support in Many Forms
Our Commitment in Action
Along with global objectives for philanthropy and
social progress, SC Johnson also has formal Community Leadership Guidelines in place to help drive
accountability at the local level. Each SC Johnson
operation has these objectives:
In addition, many SC Johnson employees share their
time with worthy organizations such as Toys for Tots,
the Salvation Army and the Racine Zoo, community
food banks and other service organizations.
Plus, we’re proud that our employees give generously
to their communities. In 2009, our United Way campaign in the United States raised more than $855,253
in employee contributions. With a match by the
SC Johnson Fund, Inc., we provided community
support of more than $1.7 million.
•Demonstrate senior management leadership
in the community by having the General
Manager hold at least one board-level
membership with a major local community
non-profit organization.
•Give to local charities at a target of 2 percent
of pre-tax profits.
•Promote and coordinate at least one significant
employee volunteer effort in the community
each year.
Measuring Our Progress
We continue to make progress each year on our community leadership and philanthropy goals. Here’s a look
at our accomplishments for fiscal year 2008/2009.
General Manager Participation
On Community Boards
SC Johnson Operations Organizing
a Major Employee Volunteer Event
100
100
90
86%
88%
87%
90
80
80
70
70
60
60
50
50
40
40
30
30
20
20
10
0
71%
76%
74%
Developing
Markets
Total
10
Developed
Markets
Worldwide
Corporate
Philanthropic
Contributions
Rolling 10-year
cumulative
contributions
(includes
SC Johnson
Fund, Inc.)
in U.S. dollars.
Developing
Markets
0
Total
Developed
Markets
190,000,000
180,000,000
170,000,000
160,000,000
150,000,000
140,000,000
130,000,000
120,000,000
110,000,000
100,000,000
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
WWW.SCJOHNSON.COM
Making a Difference for People
Whether supporting schools, reaching out to those affected by crises or promoting employee
volunteerism, SC Johnson works to make our communities better because we are there. Here
are a few examples.
Helping Haiti
Within days of the devastating earthquake that crippled Haiti, the SC Johnson Fund, Inc. donated $20,000
to the American Red Cross’s Haitian relief efforts and
committed to match SC Johnson employee contributions up to $15,000 over the next month.
Due to overwhelming participation by employees, the
limit was soon increased to $20,000. In addition, many
subsidiaries around the world contributed to Haiti
relief in a variety of ways. The combined companywide efforts brought in more than $160,000 in funds
to help Haiti recover, a true testament to the values
of the people of SC Johnson.
Supporting Breast Cancer Awareness
In September 2009, SC Johnson joined retailer
Kroger’s efforts to battle breast cancer during
its “Giving Hope a Hand” campaign. Winnie Marquart,
sister of Chairman and CEO Fisk Johnson, played
a key role by sharing her personal story as a breast
cancer survivor to help educate
and inspire.
Working with Kroger, SC Johnson
pledged $280,000 to support nonprofit organizations that address the
cause. The campaign was focused
on finding a breast cancer cure and
helping women and their families
find the treatment and resources
they need to face their illness head on.
We also developed specially designed displays
and packaging that featured Winnie’s
breast cancer survivor story and
offered shoppers pamphlets from
the American Cancer Society.
In addition, SC Johnson arranged
for a specially equipped medical van to provide
free mammograms at Kroger stores in underserved
communities around Cincinnati, Ohio, as well as at
an event at Kroger’s headquarters.
Offering Support across the World
Here are just a few examples of how SC Johnson operations supported their communities over the past year.
SC Johnson
Canada launched
a Community
Enrichment
Team to connect
employees
with volunteer
opportunities.
For example,
employees have
already helped
complete three
Habitat for
Humanity houses.
SC Johnson Italy contributed to 10
organizations chosen by employees,
providing help to efforts including
medical research, support of the disabled and defense of children’s rights.
SC Johnson Japan made contributions
to 12 institutions that support fatherless
families, and also to Kanagawa Prefectural
Children’s Hospital for medical devices
and equipment.
SC Johnson South
Africa continued
its tradition of
giving financial
support to child
care programs
at Leutlwetse
preschool.
SC Johnson
Mexico provided
financial support
to 18 foster homes
for young girls in
need, benefitting
2,061 girls.
SC Johnson Brazil contributed to
Associação Caatinga, which aims to
preserve plant and animal diversity in
the Caatinga ecosystem in northeast
Brazil.
SC Johnson
Home Hygiene
Products
in Indonesia
contributed
$120,000 to
UNICEF to help
build clinics in
a village in Java.
The clinics teach
new mothers
about early child
development
and care.
SC Johnson Argentina organized a
volunteerism program for employees
and retirees. It promotes 11 volunteer
opportunities across education, social
and environmental needs.
SC Johnson Spain helped with the
reforestation of local fields, with employees planting 200 trees and shrubs
and financial support for a year of
watering and care.
Protecting Families
Helping Prevent Insect-Borne Diseases
We target a key
public health issue with
effective pest control
products and education
about avoiding insectborne diseases.
NEW THIS YEAR
> Launched a study with the Bill & Melinda Gates Foundation to help
determine product-based solutions to combat malaria, as well as a Gates/Center
for Sustainable Global Enterprise partnership to create a sustainable business
model that addresses malaria.
> Continued educating about insect-borne diseases across many countries.
34 PROTECTING FAMILIES
WWW.SCJOHNSON.COM
Investing in Education and Prevention
According to world health authorities, malaria kills more than a million people every year,
and there are as many as 50 million dengue infections worldwide annually.
Yet these diseases are preventable simply by pro
tecting families from the insects that can transmit the
infections. As the leading marketer of household insect
control products worldwide, we’re working every day
to make products that help protect people, and to
educate about how to avoid insect-borne illnesses.
Along with our ongoing efforts in this area, in 2010
SC Johnson announced a collaboration with the Bill &
Melinda Gates Foundation (BMGF) to combat malaria.
Together, we are supporting two research programs
designed to study and advance the use of consumer
products in the fight against the spread of the disease.
One Collaboration, Two Efforts
One effort is a scientific research study by a consortium
of Indonesian research institutions led by Hasanuddin
University, under the guidance of Dr. Din Syafruddin.
The study aims to demonstrate the effects of consumer
products in repelling malaria-infected mosquitoes.
Funding is coming from BMGF, with product resources
and in-kind personnel support from SC Johnson. This
effort is expected to last at least four years.
The second effort in collaboration with BMGF is
being co-conducted with Cornell University’s Center
Expert Q&A
In Sumba, Indonesia, the study site, families live in huts that mosquitoes can easily penetrate, with saline lakes nearby that offer a
breeding ground for mosquitoes. Inset, a typical sleeping area.
for Sustainable Global Enterprise. The project, led
by Dr. Mark Milstein and Dr. Erik Simanis (below) as
well as SC Johnson’s base of the pyramid business
development team and SC Johnson Ghana, will work
to develop a consumer-level, market-based solution
to malaria infection among at-risk populations at the
base of the economic pyramid. The ultimate goal is
to create a business model that will address malaria
infection while creating value for all participants.
Co-Creating New Businesses
A Q&A with the Center for Sustainable Global Enterprise’s Erik Simanis
Q You’ve been involved in the Base of the Pyramid
(BoP) movement since its start. What have you learned?
The BoP has evolved considerably. When the idea was
first proposed that there were business opportunities
in serving the low-income sector of billions of people,
companies saw it as an opportunity both to help people and tap new markets quickly. There were a couple
of success stories — like Unilever’s sachet-packaged
detergent in India — that really helped boost interest.
So a number of global companies jumped in and started researching opportunities. Many came up with great
projects with a lot of market research behind them, like
helping families clean their drinking water. But when the
projects were launched, most not only failed to generate any profit, but there was little consumer interest.
As a consequence, a lot of BoP ventures were closed
down or shifted into philanthropic efforts.
The key learning was that those
quick wins like Unilever’s are few
and far between. That only happens
when there is an existing consumer
market where you can get on the
ground, do good market research, and turn out a
better product. In most cases, like with clean water,
there isn’t an existing market. The products just don’t
register with consumers — people aren’t accustomed
to valuing their benefits, nor integrating them into
their routines and lifestyles. Doing market creation
requires a different strategy and innovation process
than does market entry.
Dr. Erik Simanis is Managing Director of Market Creation Strategies
at the Center for Sustainable Global Enterprise at Cornell University.
There's more! Click here to jump to the back of this
book and read the entire interview, including how BoP
efforts are evolving.
Creating Prevention Awareness Across Markets
To achieve an ongoing, sustainable positive impact, successful efforts must be good for people
and for business. With that in mind, we work to educate families about avoiding insect-borne
diseases and show how our brands can make a difference. Here are a few examples.
Indonesia Dengue Campaign Helps
Communities be Proactive, Involved
This year, Johnson Home Hygiene Products (JHHP)
in Indonesia is conducting a multi-pronged dengue
campaign to create awareness and educate consumers, while strengthening our Baygon® brand’s position
as the best solution to fight the insect-borne disease.
In coordination with local health authorities’ theme of
“starting with yourself to proactively prevent dengue,”
JHHP sponsored a kick-off education event, complete with a giant
mosquito mascot. Training targeting 5,000 people from 40 areas of
Jakarta, Bandung, Semarang, Jogjakarta and Surabaya
focused on prevention, first aid for dengue infections
and Baygon® product information.
Additionally, a portion of Baygon® sales was donated
to dengue education and prevention programs, and in
partnership with a local NGO we supported fogging in
areas where high dengue incidence was reported.
Another Year Making a Difference
in the Philippines
Marking its twelfth consecutive year,
SC Johnson Philippines’ Iwas Dengue
campaign continued to create awareness
of the dangers of dengue, reaching more
than a million households. The Baygon®OFF!® Iwas Dengue advocacy campaign aims to educate about the importance of proper household and
community care in the fight against dengue.
In partnership with ABS-CBN Foundation, this year
an anti-dengue medical mission was conducted in
14 identified dengue hotspots nationwide. Every purchase of Baygon® or OFF!® products helped fund the
medical mission in the identified dengue hotspots.
The medical mission included lectures on dengue
prevention, children’s activities, as well as distribution
of medicines and samples. In addition, the campaign
included the three pillars that have become fundamental to Iwas Dengue: a hotline to request free spraying
in areas with outbreaks, house-to-house spraying
teams distributing leaflets and product samples, and
educational caravans about dengue prevention.
36 PROTECTING FAMILIES
Educating on Dengue
and Malaria in India
For the third year in a row, in 2009
our ALLOUT® brand in India led
a dengue protection drive in
major metropolitan areas. The
program featured free fumigation, in-store activity and
an ALLOUT® truck conducting contests and quizzes
about disease protection.
In addition, since July 2008 we have been working
with the NGO VHAI to expand malaria education and
support in the Guwahati area. The effort has included
health events, mobile clinics, free mosquito nets and
the distribution of educational materials.
Fighting Malaria with UNICEF
For the third consecutive year, in 2010 SC Johnson
France’s Baygon® brand and UNICEF France teamed
up to fight malaria as part of UNICEF’s Central African
Republic program targeting malaria and other health
issues for mothers and young children. From March
through August, SC Johnson France is donating a
portion of every Baygon® brand sale to the effort.
In 2009, contributions from the Baygon® partnership
surpassed $160,000, and helped provide more than
225,000 children with vaccines, distribute mosquito
bed nets and facilitate other health support.
The 2010 program has included
a number of interactive and
social media components such
as the www.baygon-unicef.com
web site and Facebook. Fans
actively participated in the Mosaic Against Malaria,
which aggregated users’ photos to create a unique
symbol of the collaborative fight against malaria.
Drawing Attention
to an Important
Health Issue
In its sixth year, SC Johnson
Thailand’s anti-dengue campaign
continued to drive awareness of
the disease with on-the-street events and a road show
to workplaces, as well as a $55,000 product contribution to the Thai Red Cross Society to provide repellents
to people living in rural areas.
WWW.SCJOHNSON.COM
Making Information More Accessible
This past year, SC Johnson got underway with its first commitment as part of involvement
in the Clinton Global Initiative — an IEC intervention.
Partnering with the Global Business Coalition on
HIV/AIDS, TB and Malaria (GBC), we created an
online repository of training materials and information
for NGOs, governments, businesses and community
health groups working on anti-malaria educational
initiatives.
The effort draws from learnings gained in SC Johnson’s
partnership in the Healthy Children, Healthy Homes™
program, a collaborative effort between SC Johnson,
South Africa’s National Department of Health, Medical
Research Council and RTI International. This community-
Products that Protect
At SC Johnson, we work every day to make products
that protect families while meeting different needs.
Protection While Sleeping
•E
lectric mats offer one night's protection
using a treated mat inserted in a
heating device.
•L
iquid electric area repellents
offer many nights of continuous
mosquito protection.
•M
osquito coils are the most affordable
area repellent and last up to 10 hours.
Protection On the Go
•N
ew OFF® Clip-On™ is an innovative personal
repellent that uses a fan to circulate protection
around a person for up to 12 hours.
Expert Q&A
based malaria education program has now reached
more than a million South Africans, and has been
expanded into Mozambique and Ghana.
Part of SC Johnson’s role in that program was to
help develop information, education and communi
cation (IEC) materials. Now, we’ve brought the
learnings gained there to the global level, with a new
Anti-Malaria IEC program that is available online at
GBC’s web site.
This IEC intervention
takes a train-the-trainer
approach to distributing key public health
messages around
malaria prevention and
treatment. Training
materials in English,
Portuguese, French and
Kiswahili explain how
to effectively use large
flipchart materials that
avoid language and
reading barriers by communicating through pictures,
such as those shown above. Access to "take-home"
educational materials will also be provided.
We’re hopeful that this model of providing resources
to self-motivated organizations and individuals will help
broaden the reach of this important educational effort.
Advocating and Partnering for Results
A Q&A with the Global Business Coalition on HIV/AIDS, TB
and Malaria’s Neeta Bhandari
Business is crucial in helping to turn the
As an organization, what public health issues
tide against HIV/AIDS, TB and malaria,
worry you most?
and it will only be through collaboration
The issues of HIV/AIDS, TB and malaria continue
and coordination, that we will fight
to kill thousands every day and limit the potential
these diseases faster. Companies
of economies throughout the developing world.
contribute in different ways: leveraging their core
There are 33 million people living with HIV/AIDS
competencies, contributing to advocacy efforts,
globally; every 30 seconds a child dies from
developing robust workplace policies and programs,
malaria; and last year, TB killed one person every
and providing their skills and assets to fill critical gaps.
20 seconds. The effects of these epidemics are
Neeta Bhandari is Senior Manager, Membership & Advisory Services,
devastating and business has a critical role to play
for the Global Business Coalition on HIV/AIDS, TB and Malaria.
in ending them.
Q
Q How can GBC corporate members help? Why
is such private/public/NGO collaboration important?
book and read the entire interview, including Neeta’s
perspective on future health issues.
Offering Great Workplaces
Committed to SC Johnson Principles Including Respect and Inclusion
As a family company,
we believe in doing
what’s right for the
people who make this
company a success.
NEW THIS YEAR
> Recognized for the 10th year among FORTUNE magazine’s 100 Best Companies
to Work for in America, along with being recognized in numerous other countries.
> Opened Fortaleza Hall, a new building at our headquarters that symbolizes
our unique history of innovation, creativity and adventure.
38 OFFERING GREAT WORKPLACES
WWW.SCJOHNSON.COM
A Commitment to People
In good economic times and bad, from Buenos Aires to Budapest to Bangkok, SC Johnson
believes in doing what’s right for the families who use our products in their homes, and the
people of SC Johnson who create them.
We believe this starts with a commitment to the
people of SC Johnson — to ensuring a culture of
fairness, respect and innovation; to fostering inclusion
so that all opinions are valued and everyone can do
their best work; and to maintaining global operational
standards designed to ensure the safety and wellbeing of SC Johnson people worldwide.
That’s why along with our This We Believe statement
of corporate values (see page 2), we have formally
pursued diversity efforts for nearly 20 years and have
had a global Safety, Health and Environment commitment for decades (see page 21). We have clear and
well-communicated policies on topics from safety
to legal compliance to work hours.
Employer Milestones
Recognition since July 2009
“Great Place to Work” Recognition
•SCJ Argentina: Recognized for the 8th time.
•SCJ Canada: Recognized for the 5th time.
•SCJ Chile: Recognized for the 5th time.
•SCJ Germany: Recognized for the 7th time.
•SCJ Italy: Recognized for the 8th time.
•SCJ Latin America: Recognized as a top 100
Company in Latin America.
•SCJ Mexico: Recognized for the 9th time.
•SCJ Poland: Recognized for the first time.
Understanding and Engaging
We also conduct annual global employee opinion
surveys to maintain a pulse on topics including
integrity and trust, development and training, and
work/life balance. In 2009, once again our overall
Employee Engagement score measured strong at
84 percent, which we see as a key to winning in
today’s challenging business environment.
We believe this engagement comes from our commitment to people both at work, and outside of work, too.
Starting with paid vacations in 1900, we’ve introduced
numerous helpful benefits such as award-winning child
care, concierge services and more.
Expert Q&A
•SCJ United States: Recognized for the 10th time.
•SCJ Venezuela: Recognized for the 5th time.
Other Employer Recognition
•Among Diversity Elite 60 list of Hispanic
Business magazine.
•An AARP Best Employer for Workers Over 50
for the 4th year.
•Perfect score on Human Rights Campaign
Corporate Equity Index.
•21st year among Working Mother magazine’s
100 Best Company for Working Mothers.
•Number 41 on DiversityInc.com Top 50 Companies
for Diversity® list, and 7th among the top 10
companies for people with disabilities.
Dedicated to Diversity and Inclusion
A Q&A with SC Johnson’s Maria L. Campbell
Q It’s been nearly 20 years since SC Johnson
established its Office of Diversity. What key
milestones stand out?
Looking back, I’d say SC Johnson has had three
“a-ha” moments when thinking about diversity.
The first was the realization that diversity was a
business imperative versus just an HR initiative.
We rely on selling products to consumers and
making a difference in their lives and in their family’s
lives. It’s important for us to focus on how diversity
connects with the business and to our consumers
and customers. We are a company
that not only makes products for
consumers, but a company that
cares about the consumers we make
products for.
Maria L. Campbell is Director of Diversity for SC Johnson.
You can find out more about our diversity commitment
at www.scjohnson.com/diversity
book and read the entire interview, including the other
two “a-ha” moments Maria shared.
Engaging and Inspiring
In January 2010, SC Johnson opened its first major new building on the company’s
international headquarters campus since the 1950s. And what a building it is.
Offering Inspiration and Community
Fortaleza Hall includes an array of features designed
to energize and inspire, such as a vertical garden with
79 species of Central and South American plants, a
polyconic mosaic map that uses four different types
of end-grain wood that is Forest Stewardship Councilcertified, and a soundscape that brings to life
the flora, fauna and street
sounds of Fortaleza, Brazil.
Fortaleza Hall is a testament to SC Johnson’s unique
history of innovation, creativity and adventure. It
honors the late Sam Johnson, the fourth-generation
leader of the company, and his tremendous leadership
in our innovation, geographic expansion and environmental legacy.
Designed by world-renowned architecture firm
Foster + Partners, Fortaleza Hall is a fitting partner
to the innovative designs that already exist at our
headquarters campus, including the Frank Lloyd
Wright-designed Administration Building and
Research Tower. Fortaleza Hall was also an investment
in the local economy, with 21 local companies hired
for the project.
Remembering a Timeless Trip
In the middle of Fortaleza Hall soars Sam Johnson’s
Carnaúba airplane, an enduring symbol of family, adventure and leadership
for the company. The
twin-engine S-38 amphibious plane is a replica
of the S-38 flown by H.F.
Johnson, Jr. in 1935 on
an expedition to Brazil to
find a sustainable source
of wax for the company.
In 1998, Sam and his sons, Fisk and Curt, recreated
that historic expedition, in a trip that rekindled the
company’s spirit of adventure. As Chairman and CEO
Fisk Johnson noted upon the opening of Fortaleza Hall,
“This plane is an enduring symbol of courage, of adventure and preservation. It is also a reminder that venturing into the unknown is often worth the risk.”
40 OFFERING GREAT WORKPLACES
Importantly, the building
also acts as a gathering
place for the people of
SC Johnson, housing employee services including
the company cafeteria, concierge service, bank, fitness
center, coffee shop and Legacy Gallery, a space where
visitors and employees alike can learn about the principles and spirit that guide our company.
Respecting the Environment
The building was constructed under the U.S.
Green Building Council’s Leadership in Energy and
Environmental Design (LEED) certification guidelines.
For example, it uses materials such as low-VOC paints
and flooring with recycled materials. It also features
energy-efficient lighting and water-efficient fixtures.
In addition, Fortaleza Hall includes unique sustainable
features such as a customized air distribution system
that requires less air to be heated or cooled, and a cis
tern that captures rainwater from the building’s drainage
system and reuses it for campus landscape watering.
The Frank Lloyd
Wright Library and
Reading Room
In the northeast corner of
Fortaleza Hall, this unique
space pays tribute to the
architect who has been inspiring employees and visitors
at SC Johnson’s headquarters for more than 70 years.
The Frank Lloyd Wright Library and Reading Room
houses hundreds of Wright’s sketches, notes and correspondence — some being made public for the first time
— thanks to the generosity of the Frank Lloyd Wright
Foundation. The library opened with more than 300
books about Wright and his career, 250 original drawings and blueprints, 125 photos, 140 letters and more.
WWW.SCJOHNSON.COM
Upholding Standards, Ensuring Safety
From guidelines and training to driving employee accountability, SC Johnson is working
to ensure Safety, Health, Environment and Quality standards are met around the globe.
In addition to meeting SC Johnson standards, compliance with local laws and regulations is mandatory. And
when company guidelines are more protective than
local regulations, the SC Johnson requirements must
be met. SC Johnson’s corporate Safety, Health, Environment (SHE) and Quality team, supported by external partners and employees around the world, delivers
policies, guidelines, training,
technical support and auditing, to ensure this happens.
But we’re aiming to do
even more, by further driving
understanding that safety
is everyone’s responsibility.
"Safety is the point of entry
for every activity at SC Johnson, and it ought to be
the first point on everyone's priority list, too," says
David Kaissling, Vice President - Global Manufacturing.
“Over the years, we’ve had great results from the focus
on compliance, audits and improvements. But we
want to do even more. Ninety-five percent of injuries
result from workplace behaviors. Our goal is to further
increase awareness among employees and get everyone involved in the safety program, to continue driving
down our incident rates to industry-leading levels.”
Expert Q&A
Tracking Needs and Improvements
As we pursue continuous improvement, auditing and
educating remain key. Each SC Johnson factory is
audited at least once every five years, with SC Johnson
and external auditors reviewing a total of 74 criteria
in nine key areas including employee safety, industrial
hygiene, air/water and waste management, fire protection, emergency response planning, and more.
Following an audit, an SC Johnson operation has 60
days to respond in writing with a description of actions
to be taken, individual responsibilities and a timeline
for completion. Follow-up reports are due every three
months to the worldwide SHE team. All actions must
be completed in 12 months unless capital spending is
planned. Four times a year, the SHE team presents outstanding issues and resolution plans to the company’s
highest management team to ensure that progress
continues to be made.
Worldwide Safety Performance Record
PER 200,000 HOURS WORKED
Protecting the health, safety and well-being of our
people is a top priority for SC Johnson. We have global
standards for our manufacturing facilities that help
ensure consistent and equivalent working conditions
for people worldwide.
40
Days Lost
Medical Incidents
Lost Time Incident Rate
35
30
25
20
15
10
5
0
89
91
92 93 94 95 96 97 98 99 00
01 02 03 04 05 06 07 08 09
YEAR ENDING
Investing in Safety Makes Sense
A Q&A with SC Johnson’s Franklyn Ericson
Q How do you keep up with local SHE regulations
to ensure SC Johnson’s standards are aligned?
We use independent third-party consultants to set up
and execute each audit, and require them to be up-todate with current requirements and regulations. We also
use an outside party to update our protocol for SHE
requirements in that country. Our consultants also work
with in-country SHE professionals to provide expertise
in local laws.
Using third-party consultants along with our internal
SC Johnson auditors has been fundamental to our
audits since 1993. We do this to get
objective opinions of our plants, to
make us aware of SHE auditing best
practices we can adopt to keep our
processes up-to-date, and to get
consistent multi-year audit opinions that are tied
to valid and current protocols for each country.
Franklyn Ericson is Director of Worldwide Safety, Health
and Environmental Operations for SC Johnson.
book and read the entire interview, including thoughts
on best practices.
Find Out More
Making Measurement Matter:
A Q&A with ClearCarbon’s Kyle Tanger
Looking for the rest of the story?
Following are the continuations of Q&As
and other stories that began earlier in
the book. So, please, read on!
(continued from page 13.)
Enabling Better Decision-Making:
A Q&A with SC Johnson’s Dan Lawson
Q
Do you continue to see progress on the
company’s overall Greenlist™ results?
Progress is always a challenge, but we’ve made a
lot of improvements, such as removing PVC from
our packaging and eliminating chlorine-bleached
paperboard.
We have eliminated materials we considered to be
0-rated, even though they met legal and regulatory
requirements, such as the insecticides DDVP and
propoxur. And in 2008, we started working with our
suppliers to have them eliminate phthalates from
the fragrances they provide for our products.
Q
These efforts focus on formula; is SC Johnson
exploring other elements of the product footprint?
That’s a good question because, as we like to say, it’s
not just about the liquid in the bottle. It’s about the
holistic product experience, and we believe there are
many ways to lighten a product’s footprint.
One example is dematerialization — meaning not just
using better materials, but less of them. That applies
to the ingredients in a formula, of course, but it’s also
about other aspects such as packaging and even
how items are displayed on shelf and used in the
consumer’s home.
These are all elements of our environmental strategy.
While the Greenlist™ process focuses on products,
our overall environmental commitment continues to
take a very broad view. For example, you can read
about our participation this year in WRI and WBCSD’s
Scope 3 (Corporate Value Chain) Accounting and
Reporting Standard pilot on page 13.
Q
Why is it important to have global standards for
measuring and reporting greenhouse gas (GHG) emissions across corporate and product supply chains?
Environmentally conscious companies have been
looking for ways to reduce the amount of energy
incurred within the supply chain in order to reduce
their carbon footprints and reduce costs. However,
there haven’t been common standards for measuring
and reporting.
Setting global GHG standards creates a common
language, one that gives consistency across similar
companies, which in SC Johnson’s case would be
other consumer product manufacturers. It also provides common terminology that suppliers can use
when talking with their business partners and other
suppliers. It’s easier to aggregate data if everyone
uses the same nomenclature.
Q
In the past, many companies have published
lifecycle GHG data calculated using their own protocol.
Why is it important to have an “agreed-to” protocol
standard used by all?
This goes back to the importance of having a common
language and standards, which produces data that are
more meaningful.
In the past, companies have shared the results of
their product lifecycle analyses, but not necessarily
the steps or components that went into the calculation. With the common language and standards,
you know what went into it and can apply data to
improve your own footprint.
Q
What value do partnering companies, such as
SC Johnson, offer for the GHG Protocol initiative?
The top thing companies like SC Johnson offer is
credibility and practical knowledge. SC Johnson
has a long history of corporate responsibility. There
is no substitute for real experience.
The critical feedback provided by SC Johnson and
companies like it will make this protocol accurate,
applicable and useful. Without leading companies’
participation, the protocol could be without a practical
focus and be based on data that aren’t useful or don’t
exist. The result would be an initiative that wouldn't
have widespread adoption and it won’t drive change.
Q
How were companies selected to participate in
testing the draft protocol? Why is testing necessary?
Companies volunteered, with many of them stepping
forward because they realize the importance of the
42 INVESTING IN PEOPLE, INVESTING FOR THE PLANET
WWW.SCJOHNSON.COM
protocol. The World Resources Institute narrowed
down the field of volunteers, ultimately selecting
companies that would represent a range of different
industries as well as global industry leaders who could
impact the protocol development process through
their experience.
Testing is necessary to make sure the protocol is
practical, and that results are actionable. The testing
process also is an opportunity for stakeholders to have
a voice in the process. Stakeholders include governments, NGOs, academia, subject matter experts and
companies/industry.
Q
Is Scope 3 the final stage/step of measuring
and reporting GHG emissions, or will it lead to
new measurements/reports (perhaps ones not
yet even imagined)?
It would be difficult to imagine too many more
protocols. Instead of creating new protocols, I think
there will be refinements of the most impactful components of each stage. Scope 1 applies to direct emissions from sources controlled by the company. Scope
2 are indirect emissions such as purchased electricity,
where emissions are created during the generation of
electricity from fuels used by the power company.
If you think about it, Scope 3 emissions are like the
rest of the world for a company. They are emissions
created because of the company’s activities but not
directly by the company, such as emissions created
within the supply chain or at the end of the product
lifecycle.
Continuing to hone and refine the protocol will
help companies see where their actions will have
the greatest impact.
Q How will you, as an organization, know if the
GHG protocol is successful?
If the information doesn’t lead to better decisionmaking, then it isn’t a success. That is the ultimate
grade. Another aspect of success is the distribution
and sharing of knowledge. Much of what companies
know about their carbon footprints today was calculated using industry averages and broad information.
General information doesn’t yield the precision and
level of confidence companies really need for effective
and confident decision-making.
The end goal is for businesses to gain clear insight into
all of the components of doing business, even those
components that are outside of their direct control,
and then use those insights to make business better.
This valuable knowledge makes it possible for companies to achieve sustainability, make higher-quality
products, and offer a better price.
Smarter Shipping, Lower Emissions
Along with the 2009 advances explained on page
15, SC Johnson continues to use rail cars, whenever
feasible, to transport propellants, alcohols, solvents,
plastics and other items into our manufacturing plants.
One rail car is equal to about six tanker trailers.
We’re also promoting shorter-haul trips and increasing
the use of “day cabs” — truck cabs specifically designed
for such short runs — and continuing to enforce our
anti-idling policy at all SC Johnson facilities. After
seven minutes, trucks must turn off their engines.
Here’s a look at SC Johnson’s progress with
intermodal transport.
SC Johnson Intermodal Shipping
Miles shipped via intermodal transport
2005
17,505,555
20,278,171
2006
22,245,437
2007
22,853,654
2008
23,783,495
2009
0
5000000
10000000
15000000
20000000
25000000
Collaborating to Drives Results:
A Q&A with Conservation International’s
Julie Blackwell
Q
What was the impetus for Conservation
International to launch Team Earth?
Since its creation more than 20 years ago, Conservation
International (CI) has operated as an NGO with two
core strengths: first, our wide-reaching partnerships
with businesses, NGOs and other partners in public
and private practices; and second, our relationships
with the scientific community.
In the past, CI’s focus has been on reaching out to and
working with decision makers and influential leaders.
Team Earth is a collaborative effort of cross-sector
partnerships designed to reach individuals and inspire
them to take action.
People need nature to thrive, and through CI’s work
with corporations and governments, and Team Earth’s
work with consumers, we are trying to support efforts
around a greener, sustainable development path.
Q
CI works with more than 1,300 NGO partners on
projects around the world. What are NGOs looking
for from their corporate partners?
The missions of CI and other NGOs are varied, but at
the end of the day, we all have the goal to save our
planet. A lot of power comes from that one collective
message. When you get down to where the rubber
meets the road, though, NGOs want partners who
don’t just talk about green practices, they go out
and take action and get things done.
Good examples are when Starbucks launched its
Conservation International Starbucks Card, which
donates 5 cents toward forest protection efforts each
time a customer pays with the card, and SC Johnson,
which added a “Green Tip of the Day” promotion to
its web site and donated $1 for every green tip added.
Q
Since 1987, Conservation International has been
working to conserve the Earth’s living natural heritage
and global biodiversity. What changes have CI noticed
through the years? How can Team Earth and companies help?
More companies, groups and individuals are taking
a holistic approach to conservation and world health.
In the past, there was almost an invisible line separating the missions and goals of the many organizations
working out there. On one side were the organizations
that supported human health and on the other side
were organizations that supported ecosystems and
biodiversity.
You don’t see so much division anymore. Today, there
are more collective efforts that are moving toward a
common vision. There’s more talk about how without
one, we eventually won’t have the other. The members
of Team Earth are key to driving this new vision and
working to achieve common goals.
Q
Improving Cleanliness and Incomes
(Continued from page 30.)
In 2006, SC Johnson co-created a partnership in
Nairobi, Kenya with Carolina for Kibera and the
Coalition of Youth Entrepreneurs. The partnership
co-launched Community Cleaning Services (CCS),
in which entrepreneurs offered cleaning and pest
control services to community members at a very
low cost. The average person living at the base of
the economic pyramid, or BoP, has an annual income
of less than $3,000.
Since the effort’s launch, CCS has explored a variety
of different services, one of which has grown into a
solid business model — cleaning public and private
shared toilet facilities. Most toilets in Nairobi’s poor
neighborhoods are shared by multiple households
and are poorly maintained. Households now can hire
CCS to clean their toilet and share the cost, meaning
they can enjoy regularly maintained, more sanitary
toilets for about 17 U.S. cents per household.
CCS entrepreneurs create and lead teams
that provide the cleaning services in their own
communities, and the teams share the profits.
Eight entrepreneurs have now established profitable
CCS micro-enterprises, and another two are joining
CCS now. The number of cleaners involved has
increased to over 60 and the business grew 187
percent in the first two quarters of this year over
the same period last year. The typical pay is more
than two times the official local minimum wage, and
some toilets now have an on-site attendant whose
income is nearly 40 percent above minimum wage.
What else is on your mind these days when you
think about sustainability, collaborative efforts and/or
environmental challenges?
My mind is on how we can create a society where we,
as individuals, instinctively take action, not because
we’re working in the “green space,” but because we’ve
decided to make smarter decisions to lead a healthier
life and live in a way that protects the planet for future
generations. I would like it to permeate our thoughts
that the steps we take don’t have to be a sacrifice in
order for them to be good.
Members of the CCS team recently met for a general meeting.
44 Investing in People, Investing for the Planet
WWW.SCJOHNSON.COM
CCS also now manages
some public toilets, including some it has refurbished
and painted to make community members feel more
comfortable using them.
Importantly, CCS is also
focused on environmental
sustainability and has
initiated a bulk product
program, so packaging
is reused within the
business rather than
discarded. This eliminates cost and waste for the
business and the communities in which it operates.
The business is under way in the Mulango Kubwa,
Korogocho, Kariobangi, Kariokor, Kawangware,
Pangani, Zimmerman and Mathare #10 areas
of Nairobi.
Uncovering Insights, Creating Solutions:
A Q&A with SC Johnson’s Jeremy Knopow
Q
How did you approach working with the
CCS team?
The most important thing was to build mutual trust
from the beginning. I wanted to show early on that
I was willing to roll up my sleeves, literally, to unclog
a very dirty toilet. You can’t be selective if you’re truly
going to do immersive research. I also lived with one
of the entrepreneurs while I was there, and that went a
long way toward building a good working relationship.
He was a very gracious host.
I also found many people were eager to show me the
issues and problem areas they encountered. And, it’s
about working together. I wasn’t there to fix things
alone; it was understood that the CCS team had to
own the issues too and we’d solve them together.
Q
What is your assessment of the impact this CCS
initiative has had in the lives of the entrepreneurs
and on the communities overall?
The BoP business-building endeavor is different
because it isn’t just providing a product or service; it
provides a livelihood and new business opportunities
for the communities. This helps guarantee the sustainability of the business, because the people involved
now have a way to make a living by fulfilling what was
an unmet social, environmental or economic need.
I would say quality of life, education and process
improvements were the biggest areas of impact.
For example, Dennis Mambo, the lead team trainer
who was my host, was able to move from a one-room
tin shanty he shared with his brother into a concrete
structure. He was able to finally live under the same
roof with his wife and children, and they’ve since
upgraded to a two-room dwelling. This BoP effort
literally changed his standard of living. We worked
together and when I left, he was interviewing clients
the way I did and was quite adeptly iterating his
own prototypes.
In addition, the mere fact of having cleaner toilets is
significant for the community. The leading cause of
death among kids there is from water-borne illnesses.
Now, the level of bacteria in the toilets is dramatically
reduced, and people are more likely to use the facilities
versus polluting natural water sources.
Q
Coming from a focus on developed-country
projects, what did you find different here?
The similarities were actually more interesting than
the differences. The root of the user-centered R&D
process is really quite universal and can be adapted to
just about any situation, product or process, including
in undeveloped markets. The main difference for me
was I was working independently as a one-person
R&D operation.
That meant I needed to be more resourceful and it
took a little longer to get certain things accomplished.
For example, I needed otherwise common quarterinch plastic tubing for a prototype. It took almost two
weeks just to find something — a piece of used tubing
from a fish tank in a pet store.
Q What was most interesting?
I was impressed with how innovative the entrepreneurs
are. They never cease to amaze me with what they can
do with very limited resources and background. That
is why I feel the educational piece of our BoP work is
such an important component of the project. Our partners in Kenya have the drive and passion; we are just
helping empower them with business and R&D skills
so they can build their own businesses and careers. It
is very rewarding to see them be so successful.
Q What was most challenging?
From an R&D standpoint, the biggest challenge was
accessing supplies, materials and resources. What
takes a couple clicks of the mouse in the United States
took days and weeks there. There are also complex
community politics that can affect business development — multiple layers of tribal, political and religious
factors that can come into play.
Q
Was anything surprising in terms of how it did
or didn’t meet your expectations?
Well, I didn’t expect to hear Kenny Chesney’s country
music blaring from radios there! But, seriously, I was
so impressed with the level of personal pride people
have, even in the toughest communities.
Q
What did you learn from this experience that
can be applied to future BoP efforts?
I think the biggest learning is to get R&D involved in
the beginning, especially for the consumer insight
process. Everything eventually flows from those key
insights and identifying them accurately is a core
competency of R&D. This was a significant learning
that is already being applied to new BoP endeavors,
such as our malaria initiative that was recently kicked
off in Ghana.
Problem
CCS was buying SC Johnson’s Duck® cleaner in bulk
and distributing it to cleaning teams. But it was nearly
impossible to refill the traditional curved-neck Duck®
applicator bottles from the spout of the bulk containers,
so most teams used a wide-mouthed container instead.
These replacement containers didn’t spray under the
toilet rim and a lot of
cleaner was wasted.
Solution
The team collaborated to
make a new applicator bottle from local materials. It’s
easier to refill, has a curved
neck to reach under toilet rims, and is translucent to
allow the cleaners to see how much they’re using.
As an added plus, the new applicator
bottle’s cap fits the bulk container as well,
meaning they can be transferred to bulk
containers to act as a decanting spout.
Results
Waste of the Duck® solution has been
reduced by nearly 100 percent.
Co-Creating New Businesses:
A Q&A with the Center for Sustainable
Global Enterprise’s Erik Simanis
Q You’ve been involved in a lot of BoP work
over the years. What changes are you seeing in
recent years?
Because of the limited success stories, combined with
the current economic condition, some of the luster or
shine about the BoP as a source of profit and growth
has faded. A number of BoP investments are being
undertaken as part of corporate social responsibility
initiatives with no expectation that it will ever be
integrated into the profit and loss side of the business.
So the line between BoP as philanthropy and BoP
as business development has blurred.
I think this blurring of the line creates its own set
of challenges for companies. They are two totally different goals and kinds of investment — they require
different management structures around them to be
successful and create value. So when starting a BoP
project, there has to be internal clarity and alignment
whether it’s a business development initiative or a
philanthropic effort — sitting on the fence usually ends
up with an under-resourced business development
effort or a poorly-publicized philanthropic effort that
creates little value.
Q
So then, should a company set out with
a philanthropic mindset? Wouldn’t it seem greedy
for global companies to approach BoP initiatives for
the purpose of making money?
Actually, no; they are two different approaches that
create different kinds of value for the company and
the communities it aims to serve. Ventures that are
profitable are not only going to last a lot longer than
ventures that are purely social investments, but they
will scale much easier. That is particularly true in
economic times like we’re seeing now. It can be hard
for a social investment initiative to get the traction it
needs to keep going in the long term.
This has been an interesting issue. I think companies
almost feel guilty about pursuing BoP as a growth and
profit initiative, for fear that it gets labeled as “making
money off of poor people.” So companies self-censor,
and end up sitting on the fence between philanthropy
and business development. That, as I’ve said, comprises the initiative from the start.
Q
What’s new or different in the SC Johnson/Bill &
Melinda Gates Foundation-sponsored project in Ghana?
The key business challenge with the project in
Ghana is that there is no existing consumer market
for malaria prevention — we have to create that
market. So in Ghana, we’re building on the market
creation strategies we’ve been developing and testing
out in Kenya, India, the U.S. and Mexico over the past
five years with a number of companies.
The approach we’re using combines business
development with community organizing and social
movement techniques so that consumers in the
community feel a personal connection and commitment to the new business, and the product offering
seems like a natural part of their lives. So we create
a base of consumer demand as we build the business,
rather than relying on marketing and awarenessbuilding campaigns at the point of business and
product launch.
WWW.SCJOHNSON.COM
Q
Do you see this latest approach as the silver bullet
that will open the doors on BoP investing, or will it be
a continuation on the evolutionary process?
It’s definitely part of an ongoing evolution of our
understanding of effective BoP strategies. We’ve
certainly made huge strides with pinpointing key
factors that drive successful market creation, but
there will always be opportunities to learn and
improve. Getting on the ground in Ghana will certainly
deepen that understanding and help take the methods
and practices to the next level.
Advocating and Partnering for Results:
A Q&A with the Global Business Coalition on
HIV/AIDS, TB and Malaria’s Neeta Bhandari
Q
Global companies have a lot on their plates
these days. Where should the fight against HIV/AIDS,
tuberculosis and malaria fit in?
There is also a strong business case for why
companies should make fighting HIV/AIDS, TB and
malaria a top priority. These diseases affect worker
productivity, cause absenteeism, increase training
costs, and ultimately can affect the bottom-line
of a company. For companies that have workforces
in highly endemic regions or for companies looking
to invest in the emerging markets, HIV/AIDS, TB and
malaria are issues they cannot afford to ignore.
Companies tend to find that their health-related
corporate responsibility efforts are highly motivating
for employees and help to attract and retain talent.
Furthermore, health is inextricably linked to economic
development — the healthier the society, the higher
the likelihood for economic productivity, and the more
purchasing power for consumer products — a virtuous
cycle ultimately benefitting businesses. Through partnership with an organization like GBC, there are ways
that global companies can address these issues in line
with their core strategic business objectives, ultimately
doing well by doing good.
Q
Why is private/public/NGO collaboration
important?
Public-private partnerships are important because
no one player can make a significant impact alone.
Corporations have a specific expertise they can bring
to the table, but the public sector and NGOs often
have in-country expertise to contribute, which is
also critical.
Q
Are there public health issues in existence today
that could or will be eradicated within 10-20 years?
Are there any concerns beginning to emerge now
that will be significant problems in 10-20 years?
Eradication may be saying too much, but there are
many reasons to be hopeful. Malaria is where we have
the best shot. Nine African countries have cut their
malaria deaths by half in the last seven years and we
are only a few years away from having a good malaria
vaccine on the market. If the private sector and global
health communities join forces in strategically smart
collective actions, we can mitigate the effects of these
three diseases worldwide.
Challenges like the economic downturn, weak health
systems and lack of adequate funding create gaps
that need to be filled, and the way to get the job done
is for everyone to work together — and that includes
the corporate sector playing a lead role by turning
business assets into disease-fighting assets.
Q
What new or different perspective do you feel
SC Johnson may bring to the GBC? Any advice for
SC Johnson?
SC Johnson continues to lead through its engagement
in the fight against malaria, deploying its core competencies, expertise, and global reach in powerful, resultsdriven ways. Given its focus on the Base of the Pyramid
strategies, the company can continue to share knowledge and best practices with others, partner with key
global health stakeholders, and continue to serve as
global advocates. Furthermore, SC Johnson can share
knowledge and best practices on project and financial
management, as well as private sector approaches,
with national and regional governments, to help to
strengthen local health systems.
Q
How can SC Johnson’s efforts complement/help
advance the efforts of other GBC members?
By participating in GBC’s knowledge-sharing and
co-creation activities, other GBC members will learn
from SC Johnson’s successes and challenges, helping them to achieve greater results. As SC Johnson
develops its information, education and communication tools on malaria, it can complement and further
enhance the workplace policies and programs of
other private sector companies. GBC can work with
SC Johnson to broker introductions and inform other
member companies about SC Johnson’s malaria
education tools, where they can be deployed in the
communities where other GBC members operate.
To the extent that it doesn’t interfere with the
company’s competitive strategy, SC Johnson
should promote its Base of the Pyramid and capacitybuilding work (e.g., with pyrethrum farmers) among
other consumer products companies. The consumer
products sector has huge and growing reach in
African markets, and investments like these can
deliver both social and commercial returns to companies that follow SC Johnson’s example.
Q
What else, if anything, would you like readers
to know?
We’re proud to count SC Johnson as a GBC
member, and an integral part of a movement that
will end the ravages of disease faster. Companies like
SC Johnson are deepening their impact on global
health, and becoming more closely connected to
partners and customers. SC Johnson’s high-impact
leadership is something that your employees and
stakeholders can be very proud of.
Dedicated to Diversity and Inclusion:
A Q&A with SC Johnson’s Maria Campbell
Q
What were the second and third “a-ha” moments
for SC Johnson?
The second came as a result of SC Johnson’s diverse
business councils, which heightened awareness of
the different needs of employees. For instance, the
Women’s Business Council helped the company
recognize the importance many working parents
place on having flexible schedules, for example not
having meetings scheduled at 6 a.m. or 6 p.m. due
to possible conflicts with family needs.
The third “a-ha” moment again goes back to the
business case, but this time relates to how we look in
our ads, how we speak to consumers and what images
we portray. This is when we recognized our ability to
connect with different consumers and communities,
both locally and internationally.
Q
When it comes to diversity leadership,
what opportunities lie ahead that global companies
could/should pursue?
When it comes to being diversity leaders, global
companies must think beyond simply U.S.-based
companies. This may require a mind shift away from
how we define things in the U.S. You should not bring
your “U.S. thinking” to the international table. The
way we define minority in the U.S. is not likely to be
the way it’s defined internationally. Some countries,
for example, may look at minority in terms of women
or race or culture, while others may think about religious, tribal or underrepresented groups. Recognizing,
understanding and navigating these differences
will be the foundation of strong diversity leadership,
moving forward.
Q
What do a company’s diversity practices say
about it? Why is this an important measure?
A company’s diversity practices tell whether the
company is progressive or not. Diversity shows how
well a company respects its employees, its customers,
its consumers and the communities in which it operates. It’s all about the greater good. Companies with
strong diversity practices recognize the role diversity
and inclusion play in helping the company sustain
itself by having a workforce and customers that will
be around to help it survive.
It’s important to measure diversity, just as it’s important to measure and track any business metrics. As
a business, you need to know where you are now,
the goal you’re trying to shoot for, and how you’re
going to get there. Why should that behavior be any
different when it comes to diversity?
Q
Diversity has been on the radar of most
companies for at least five to 10 years now. What
changes have been most encouraging to you?
What’s been disappointing?
Most encouraging is that more and more companies
have come to understand that operating with diversity
and inclusion makes good business sense and also is
the right thing to do. As you look around, you can see
more companies viewing diversity not just as an HR
initiative, but using diversity and inclusion to improve
effectiveness in managing every facet of the business.
On the other hand, it’s disappointing to see companies
that continue to view diversity as just an EEOC mandate, quota or a policy forced on them by government.
The focus should be on the realization that the global
marketplace is very diverse.
Q
What’s on the horizon for SC Johnson’s diversity
and inclusion platform?
As we prepare for 2016 and beyond, we will continue
to "raise the bar" on how diversity and inclusion
serve as key enablers for SC Johnson. From helping
us understand our marketplace, to the demographic
and generational shifts that are affecting our consumers, to the people who make up our company —
we’ll continue to need inspirational leadership versus
simply managing talent. And that requires a deep
and committed understanding of the enormous
possibilities of diversity and inclusion. We’re excited
about the future.
WWW.SCJOHNSON.COM
Investing in Safety Makes Sense:
A Q&A with SC Johnson’s Frank Ericson
Q
Why is auditing an important practice for global
companies?
An important part of being a leader in Safety, Health,
Environment (SHE) efforts is measuring the status
of our programs at all of our manufacturing plants
against our corporate standards and regulatory
requirements. We can then use the audit results
to drive continuous improvement and to share
best practices. Measurement is important for
determining whether we’re meeting the standards
set by the company and local regulators, as well
as for setting improvement goals and identifying
how we’ll achieve them.
Q
In what ways, if any, has SC Johnson added,
deleted or changed its guidelines or programs in
the past year or so?
In 2008 we moved responsibility for the oversight
of quality measurement and tracking to our SHE
corporate team. This move allowed our team, now
the SHEQ team, to increase the consistency and best
practice measurements of the formal audits we regularly complete worldwide. Additionally, every year our
team updates four to five of the SHE standards and
guidelines, as well as the training programs connected
with those areas. We choose the areas where we
believe we can make the most significant enhancements to our efforts. In this way, our corporate offices
act as an independent monitor of our operations.
Q How many audits does SCJ conduct annually
among its manufacturing sites across the globe?
How does this compare to industry standards?
Every site undergoes an audit every three to five
years, depending upon the complexity of the operations. Unfortunately, not all industries perform routine
SHE audits of their operations. For those that do,
the audit frequency is two to five years.
SC Johnson conducts quality audits every year at
each of our manufacturing sites until their programs
reach the “high” level. At that time, they move to
a three-year audit frequency, where they stay as
long as that high score can be maintained. This
audit frequency is consistent with that used by the
leading quality programs.
Q
What happens when a site doesn’t pass an audit?
What happens next?
of our operations have scores that are “acceptable”
or higher, with the exception of some of our new
acquisitions, which had not been audited before. For
each SHE audit, irrespective of the score, a corrective
action plan is developed and all audit findings must
be addressed within a year. The purpose of the SHE
audit process is to drive continuous improvement.
In addition, all findings within the Quality audits must
be addressed within one year as well.
Q
How can a company identify best SHEQ practices
among its peers? In other words, how can you spot
who the leaders are, so you can learn from their
actions and programs?
Since companies don't necessarily connect their
SHE and Quality programs, let me answer with
a focus on SHE. We belong to a few outside SHE
audit groups, including the IAPC (International Audit
Protocol Consortium). Members are responsible for
their companyies’ SHE audit programs. IAPC members
get together annually to share best practices, current
challenges, successes, etc.
Leaders are those companies that make the auditing
process more effective, more consistent, and more
relevant to overall corporate objectives, which is our
intent at SC Johnson, too.
Q
What’s your advice for companies that want to
implement or enhance a SHE program — what are
the top things they need to do?
Get involved with a group of your peers to understand
the most current practices and programs. Start where
the leaders are and benefit from what they have learned.
Companies will need a full commitment for SHE
excellence from their top management. They’ll also
need effective and comprehensive SHE and Quality
management systems. These systems help a company
get to a high performance level, to consistently
maintain that performance, and to have sustainable,
high performing programs.
Q
Why should companies such as SCJ be open
about their SHE and Quality practices? Why should
they lend a hand to other companies looking to start
or improve their practices?
Our position is to share what we are doing with SHE
and Quality practices. It’s part of being a corporate
leader. Others can learn from what we have done, just
as we have learned from the best practices of other
companies. In the end, we want our whole industry
to be responsible in its SHE and Quality practices,
not just a few companies.
Since starting our audit program in 2002, SC Johnson
has audited all of our sites multiple times. Today, all

2010 Public rePorT

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