performance that endures - john deere ca · john deere machines such as the 9770 sts combine, 672d...
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D E E R E & C O M P A N Y 2 0 0 7 G L O B A L C I T I Z E N S H I P R E P O R T
PERFORMANCE THAT ENDURES
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John Deere machines such as the 9770 STS combine, 672D motor grader, 2500E hybrid greens mower, and 1270D forestry harvester shown on the cover use advanced technology such as GPS, precision sensors and electric drives to improve effi ciency and productivity and reduce environmental impacts. Wind turbines represent company investments in alternative energy.
Bringing agriculture to the city is the promise of the John Deere Forum, a new visitor attraction in Mannheim, Germany. Opened in conjunction with the company’s newEuropean headquarters building, the Forum has meeting rooms, an educational area, a library, a merchandise shop and a bistro that serves food and non-alcoholic beverages from the region. The facility’s display areas feature Lanz and John Deere vintage and modern equipment.
Vertis QCA1300 19th Street, Suite 200East Moline, IL 61244
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Table of Contents
Chairman’s Letter 4
John Deere at a Glance 6
Values 8
Four Founding Values Governance Ethics And Compliance Public Affairs
Stewardship 10
Environment Climate Change Safety & Health
Products 19
Dealers & Suppliers 22
Employees 24
Philanthropy 28
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Unless otherwise indicated, all capitalized names of products and
services are trademarks or servicemarks of Deere & Company.
This report was printed with soy ink on recycled paper.
e 2 2007 Citizenship Report Page 3 Vertis QCA1300 19th Street, Suite 200East Moline, IL 61244
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John Deere’s Global Citizenship Report for
2007 celebrates the commitment and eff orts
of employees, dealers and suppliers around the
world. Th eir support is critical to carrying out
the company’s mission of distinctively serving
customers – those linked to the land – through
a great business. Th is year’s report also provides
insight into how the company operates
and achieves its purposes.
Our mission aff ects how we do business.
As the company delivers quality products
and services, it does so mindful of its
commitment to serving global com-
munities and society at large, to fair
dealing in all relationships, and to
minimizing environmental impacts.
By operating in this manner, we seek
to ensure that our actions result in
performance that endures.
In 2007, the company continued to make progress
in becoming a more resilient, high-performing
business. In large measure, our progress has been
achieved through the eff ective execution of our
strategies aimed at exceptional operating
performance, disciplined growth, and aligned
high-performance teamwork.
• Exceptional operating performance, stressing
rigorous attention to costs, asset management
and customer focus, has helped us deliver record
performance for four years in a row.
• Disciplined growth initiatives have extended our
presence into new products, new businesses, and
new geographies.
• Aligned high-performance teamwork focuses
on maximizing the impact of our talented
workforce through improved collaboration and
alignment.
Deere’s role as a leading corporate citizen is
consistent with our commitment to customers,
employees, communities, dealers and suppliers,
allowing us to deliver attractive returns to our
shareholders. We provide products of benefi t
to customers and society that are designed with
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respect for the earth’s limited resources. Our
company off ers employees safe and healthy
workplaces where they can develop to their
fullest potential. At the same time, we operate
our facilities and processes in a way that
minimizes environmental impacts. As a result
of these factors, we have been successful
growing a great business while helping foster
human fl ourishing.
Values
John Deere’s success executing its strategies is
directly attributable to a 171-year heritage of
integrity, quality, commitment and innovation.
Th e role of these values is summarized by a
statement, widely known by employees, that
how we achieve results is as important as the
results we achieve.
Leadership is critical to creating an environment
in which values are an essential part of every
transaction. Our independent board of directors –
I am the only Deere-employee member – helps
provide that leadership. Drawn from a range
of industries and sectors, these directors off er
useful insight while safeguarding the interests of
shareholders. Likewise, our business conduct
guidelines hold employees and suppliers
accountable for fair dealing, respecting others,
and obeying the law.
Stewardship
Wherever we do business throughout the world,
John Deere aims to improve productivity and
minimize environmental impacts. Our consistent
investment in state-of-the-art production
facilities is undertaken with environmental
stewardship in mind. One of Deere’s newest
facilities, a tractor factory in Montenegro, Brazil,
discharges no wastewater and was planned and
built using minimal-energy-use principles. In
2007, our facilities began working on plans to
reduce greenhouse gas emissions as part of the
company’s participation in the U.S. Environmental
Protection Agency’s Climate Leaders program.
We continue, as well, to support alternative
energy sources such as wind and ethanol.
Performance That Endures
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Employee health and safety is also a priority at
John Deere facilities, which remain among the
safest in the world. In 2007, the company reduced
its already low injury-frequency rate. Many
locations have recorded millions of employee
hours worked without a lost-time injury.
Products
John Deere products are known for productivity
and effi ciency. Th e company’s investment of
more than $2 million a day in research and
development is aimed at maintaining that focus
for our customers. As an example, precision
agricultural technologies minimize input
requirements while increasing productivity.
Reduced tillage products limit soil erosion and
energy use. A blend of 5 percent biodiesel has
been certifi ed for use in most of the engines
powering Deere heavy equipment, and we
continue to work with standards-setting groups
to make quality biodiesel blends more widely
available. In addition, John Deere’s power systems
organization continues its 40-year focus on
improving engine effi ciency while lowering
emissions.
Employees
To achieve the company’s aim of growing a
business as great as its products, we depend on
employees from diverse backgrounds around
the world to discover innovative ways to meet
customer needs. Our Team Enrichment initiative
is helping establish an inclusive and collaborative
culture. Enterprise-wide processes focusing on
accelerated innovation leverage the inherent
creativity and problem-solving abilities of the
company’s skilled, committed workforce.
Dealers & Suppliers
John Deere dealers represent the company
to customers and communities in their trade
areas. Th ese valued business people and their
employees are held to high ethical standards
consistent with the company’s own code of
conduct. Dealers accept the responsibility of
enhancing John Deere’s name and reputation
wherever they do business.
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In addition, the company works with a high-quality
worldwide supply base to accomplish its mission.
Supplier performance is supported by an exacting
code of conduct that prohibits gift-giving or
improper payments to secure business and requires
compliance with all environmental, health and
safety regulations. Th e company’s vigorous
program to support small and diverse suppliers
brings innovation and fresh perspectives to
John Deere products, services and logistics.
Philanthropy
John Deere supports philanthropic eff orts around
the world through monetary contributions,
in-kind donations, sponsorships and memberships
as well as through employee volunteer eff orts.
Th e John Deere Foundation, based in the United
States, last year provided donations of some $11.2
million. In other countries, smaller foundations
and localized contribution programs support
organizations and projects of importance in their
communities.
Corporate citizenship is a vital part of daily
operations at John Deere and plays a major role
in our business success. Th is approach provides
performance and productivity to customers
as well as exciting career opportunities to
employees, resulting in a valuable return to
investors. Th ese elements, applied sustainably,
lend crucial support to our pursuit of performance
that endures and contribute to human fl ourishing
around the world.
Sincerely, 1 April 2008
Robert W. Lane
Chairman and Chief Executive Offi cer
Deere & Company
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Deere & Company and its affi liated companies manufacture, distribute, and fi nance a full line of equipment for use in agriculture, construction, forestry, and lawn and turf care; manufacture engines and other powertrain components for John Deere equipment and other manufacturers; and provide credit and other services to customers around the world.
The company markets its products primarily through a worldwide network of independent dealers supported by a decentralized marketing organization.
John Deere at a Glance
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1 Rosário, Argentina 2 Brisbane, Australia 3 Catalão, Brazil 4 Horizontina, Brazil 5 Montenegro, Brazil 6 Porto Alegre, Brazil 7 Edmonton, Alberta 8 Langley, British Columbia 9 Grimsby, Ontario 10 Welland, Ontario 11 Beijing, China 12 Jiamusi, China 13 Ningbo, China 14 Tianjin, China 15 Joensuu, Finland 16 Arc-les-Gray, France 17 Saran, France 18 Bruchsal, Germany 19 Gummersbach, Germany 20 Mannheim, Germany 21 Stadtlohn, Germany 22 Zweibruecken, Germany 23 Magarpatta City, India 24 Pune, India 25 Milan, Italy 26 Luxembourg, Luxembourg 27 Monterrey, Mexico 28 Saltillo, Mexico 29 Torreón, Mexico 30 Horst, The Netherlands 31 Tokoroa, New Zealand 32 Poznan, Poland 33 Moscow, Russia 34 Orenburg, Russia 35 St. Petersburg, Russia 36 Singapore, Singapore 37 Richards Bay, South Africa 38 Madrid, Spain 39 Schaffhausen, Switzerland 40 San Marcos, California 41 Torrance, California 42 Atlanta, Georgia 43 Augusta, Georgia 44 Quad-Cities, Illinois-Iowa 45 Des Moines, Iowa 46 Dubuque, Iowa 47 Ottumwa, Iowa 48 Waterloo, Iowa 49 Coffeyville, Kansas 50 Lenexa, Kansas 51 Thibodaux, Louisiana 52 Springfield, Missouri 53 Charlotte, North Carolina 54 Kernersville, North Carolina 55 Raleigh, North Carolina 56 Fargo, North Dakota 57 Greeneville, Tennessee 58 Horicon, Wisconsin
Financial Performance
Net Sales and Revenues (millions)
2005 2006 2007$21,191 $22,148 $24,082
Net Income (millions)
2005 2006 2007$1,447 $1,694 $1,822(Fiscal year ending October 31)
Environmental, Health and SafetyPerformance
Workplace Safety
Lost-Time Injury Frequency Rate
2005 2006 20070.29 0.27 0.25(Injuries per 200,000 hours worked)
Lost-Time Injury Severity Rate
2005 2006 20075.7 5.9 5.3(Days lost per 200,000 hours worked)(2006 results restated due to data collection error)
Environmental Impact
Total Waste
2005 2006 200764.0 62.0 61.8(Kilograms per ton of production)(Includes foundry sand and powerhouse ash previouslyreported separately; 2005 and 2006 totals restated)
Hazardous Waste
2005 2006 20072.09 2.05 2.30(Kilograms per ton of production)(2007 increase due in large part to factory demolition and clean-up activities; 2005 and 2006 results restated)
Greenhouse Gas Emissions
2005 2006 2007 0.61 0.61 0.56 (Metric tons of CO2 equivalent per ton of production)(Emissions measure changed to metric tons; 2005 and 2006 results restated)
Worldwide HeadquartersDeere & CompanyOne John Deere PlaceMoline, IL 61265-8098
European HeadquartersDeere & Company European Offi ceJohn Deere Strasse 7068163 Mannheim, Germany
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e 6 2007 Citizenship Report Page 7 Vertis QCA1300 19th Street, Suite 200East Moline, IL 61244
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John Deere strives to conduct its business with a
passionate commitment to doing what is right
and operating ethically while providing products
and services that enable human fl ourishing. Th e
John Deere values – integrity, quality, commitment
and innovation – are fundamental guides and
measures in every aspect of the company’s
operations and an explicit part of its strategies.
Integrity means telling the truth, keeping our
word and treating others with fairness and respect.
Quality means delivering the value that customers,
employees, shareholders and other business
partners deserve and expect, every time we
interact with them.
Innovation means inventing, designing and
developing breakthrough products and services
that customers want to buy from John Deere.
Commitment means doing our best to meet
expectations over the long run.
Governance
A diverse and independent board of directors
provides rigorous oversight and expectations of
high performance. Members of the Deere board
also bring expertise, business skills, and strategic
global perspectives to guide the company’s growth
while maintaining its values. While current
by-laws require only that a majority of directors
be independent, Deere Chief Executive Offi cer
Robert W. Lane is the only board member who is
an employee of the company. Board policy calls
for many traditional functions of the chairman,
such as setting agendas, to be shared by all
directors. Further, the board makes extensive
use of the “presiding director” concept for
executive sessions and for specifi c subjects, such
as succession planning. Independent directors
annually review the performance of the company’s
chief executive offi cer regarding business results,
execution of strategies and development of
employees.
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Values
Business Conduct Guidelines
John Deere business conduct guidelines spell out
how employees are expected to act in carrying
out the company’s business. Employees are
expected to honor the rights and respect the
individual dignity of all persons globally, support
diversity and equal opportunity in employment
and freedom of association, work to provide safe
and healthy workplaces for all employees, and
reject the use of forced or indentured labor or
child labor.
Under the guidelines, business relationships must
be mutually benefi cial, serving the interests of
all parties. Further, commercial relationships
must not be tainted by favoritism or unethical
practices. Similarly, the privacy of employees,
retirees, dealers, suppliers and other stakeholders
must be respected.
Ethics and Compliance
Operating with the highest business ethics requires
vigilance. John Deere maintains a compliance
hotline for reporting possible violations of com-
pany ethics policies, and employees who suspect
or have knowledge of unethical or improper
actions are encouraged to report these concerns.
Th e hotline, available 24 hours a day, is backed
up with anonymous e-mail and a postal address
as alternative means for confi dential reporting.
John Deere’s Offi ce of Corporate Compliance helps
ensure consistency and compliance in a global
business environment of increasing complexity
of laws, regulations, and cultural practices.
Th e compliance offi ce conducts continuous
training, communications, and sharing of best
practices throughout John Deere’s operations to
ensure and enhance compliance with laws and
regulations. It also provides employee access to
global policies and off ers guidance on complex,
and sometimes ambiguous, business and cultural
situations.
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Members of John Deere’s board of directors, pictured with the company’s 9630T track tractor, are, from left:
• Joachim Milberg, Chairman, Supervisory Board, Bayerische Motoren Werke (BMW) AG
• Aulana L. Peters, Retired Partner, Gibson, Dunn &Crutcher LLP
• Richard B. Myers, General, United States Air Force (Ret.)
• Arthur L. Kelly, Managing Partner, KEL Enterprises L.P.
Public Affairs
Because accomplishing business objectives often
depends on sound public policy, John Deere places
a high value on involvement in the political process.
Th e Public Aff airs Worldwide group off ers
employee-involvement programs, including the
John Deere Political Action Committee (JDPAC),
a voluntary employee political contributions
program in the United States, and the
• Crandall C. Bowles, Chairman, Springs Industries, Inc.; Chairman, The Springs Company
• T. Kevin Dunnigan, Retired Chairman, Thomas & Betts Corporation
• Robert W. Lane, Chairman and CEO, Deere & Company
• Antonio Madero B., Chairman and CEO, SANLUIS Corporación, S.A. de C.V.
• Clayton M. Jones, Chairman, President and CEO, Rockwell Collins, Inc.
• Dipak C. Jain, Dean, Kellogg School of Management, Northwestern University
• Charles O. Holliday, Jr., Chairman and CEO, DuPont
• Vance D. Coffman, Retired Chairman, Lockheed Martin Corporation
• Thomas H. Patrick, Chairman, New Vernon Capital, LLC
John Deere Government Action Information
Network (JDGAIN). Th e latter program asks
employees to contact elected offi cials about
pending legislation of interest to the company.
Deere Public Aff airs advocates sustainable and
fair government policies and practices through-
out the world, and keeps employees informed
about world economic, political and civil aff airs.
Deere & Company Board Of Directors
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As a global manufacturer, John Deere strives to
conduct business in a way that safeguards
employees, customers, community neighbors
and the environment. In the company’s view,
conducting business this way is a necessary
part of its pursuit of sustainable growth and
performance that endures.
Deere’s operating processes refl ect a commitment
to environmental protection through energy-
effi cient systems and waste reduction and
elimination. When investing in new products,
approaches or technologies, John Deere gives
preference to those that have the most favorable
environmental impact and safeguard customers.
Deere’s Environment, Health & Safety (EHS)
policy requires compliance with all applicable
EHS regulations wherever the company does
business. Deere makes EHS considerations a
priority in business planning, provides fi nancial
and human resources for EHS programs,
monitors performance, and promotes healthy
workplaces.
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Stewardship
John Deere’s environmental stewardship and
commitment to workplace safety are integrated
into the company’s operations throughout the
world by the John Deere EHS Management
System. Th e system includes a set of formal,
documented processes for controlling and
continuously improving environmental, health
and safety measures.
John Deere considers environmental protection
and employee safety to be the responsibility of
all employees. Along with training at initial
employee-orientation sessions, there is a required
curriculum for global unit managers, and
intermediate and advanced curricula for EHS
professionals. In addition, the company facilitates
opportunities for EHS leaders to stay abreast of
industry developments and share best practices.
In 2007, Deere’s EHS leaders met for a global
conference that helped participants understand
and prepare for changes in legislation, standards,
and company guidelines. Speakers included EHS
experts from other leading companies.
Renewable energy can play an important role in promoting cleaner air and reducing greenhouse gas emissions. John Deere has signifi cant interest in alternative energy sources, including wind energy.
John Deere Wind Energy, a business unit of John Deere Renewables, LLC, invests in and provides value-added services to wind projects. It offers project fi nancing and expertise in construction project management, wind turbine procurement, and wind energy technology and operations.
Developing Wind Energy
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John Deere routinely incorporates energy effi ciency into product design and facility updates. In this regard, John Deere Harvester Works reduced electricity needs for lighting by more than 25 percent with the recent installation of 32-watt, six-lamp fl uorescent fi xtures shown in the photo above throughout its main assembly and sheet-metal fabrication buildings. The lamps illuminate work areas with a whiter, more uniform light than the previous high-pressure sodium lamps.
In addition, the reduced demand for electricity contributes to a total of 3,000 fewer tons of greenhouse gases emitted into the atmosphere each year by the East Moline, Ill., combine factory. Carbon dioxide emissions contribute to climate change, and efforts to reduce them are one way to mitigate global warming.
As part of the company’s participation in the U.S. Environmental Protection Agency’s Climate Leaders program, representatives from Deere’s 15 largest global manufacturing facilities are working together to reduce emissions of greenhouse gases such as carbon dioxide. Every John Deere manufacturing location is responsible for identifying energy-saving projects as part of this effort.
Thus, John Deere Wind Energy serves as co-developer of commercial wind energy projects for a variety of customers and stakeholders. The company is involved in wind energy projects in commercial operation, or under development, in the U.S. states of Texas, Minnesota, Michigan, Illinois, Missouri, Idaho and Oregon, and continues to consider invest-ments in new projects and locations. The current portfolio includes projects capable of producing more than 600 megawatts of electricity. That’s
enough to power up to 180,000 homes.
John Deere’s involvement in wind energy builds on the company’s long-standing commitments to the environment and rural communities. Wind energy projects can provide additional income for land-owners, ranchers and other ag-related businesses, enabling them to directly benefi t from the production of renewable energy.
Pursuing Reduced Greenhouse Gas Emissions
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Tracking Energy Useand Emissions
John Deere has had an energy management
program since 1973 that requires operations to
implement energy-conservation initiatives and
track energy use. In response to international
global-warming concerns, Deere added a
worldwide greenhouse gas (GHG) inventory
program in 2003.
In 2007, Deere announced it would work to reduce
GHG emissions as part of its participation in the
U.S. Environmental Protection Agency’s Climate
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Leaders program, a voluntary industry-government
partnership. Under the program, in 2008 Deere
will announce a comprehensive, company-wide,
six-year GHG reduction goal.
Deere’s GHG emissions, measured in metric tons
of carbon dioxide equivalent per ton of production,
are a mix of direct and indirect emissions. Direct
emissions come from operations such as foundry,
heat-treat, painting, powerhouse, and testing.
Indirect emissions result from demand for
electricity. Th e majority of greenhouse gas
emissions attributed to John Deere’s operations
are carbon dioxide.
W
64.0 62.0 61.8
05 06 07
Total WasteKilograms per ton of production
(Includes foundry sand and powerhouse ash previouslyreported separately; 2005 and 2006 totals restated )
2.09 2.05 2.30
05 06 07
Hazardous WasteKilograms per ton of production
(2007 increase due in large part to factory demolition and clean-up activities; 2005 and 2006 results restated)
0.61 0.61 0.56
05 06 07
Greenhouse Gas EmissionsMetric tons of CO2 equivalent
per ton of production
Indirect Emissions Direct Emissions
( Emissions measure changed to metric tons; 2005 and 2006 results restated )
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Plant-fi lled channels, left, help purify wastewater at John Deere’s Pune, India, tractor factory, a zero-wastewater-discharge facility. Industrial wastewater from sources such as parts washing and painting is fi rst treated by chemical and physical means then released to the channels where plant roots absorb organic material. As excess water exits each channel, it is tested for remaining pollutants, then used to water onsite trees and other plants. Facility sanitary wastewater is treated and run
through the channels and reused for irrigation as well.
Reducing or eliminating waste-water discharge is an important environmental goal for Deere operations throughout the world. At John Deere’s new Montenegro, Brazil, tractor factory, industrial wastewater is purifi ed through an ultrafi ltration membrane, polished by biological treatment, then used to water onsite vegetation. As a result, Montenegro sends only a few truckloads of ultrafi ltration
concentrate and machine coolant to a local treatment facility. Simi-larly, sanitary wastewater is treated biologically, disinfected, fi ltered and reused for onsite irrigation.
Through a process used by Regen Technologies, a John Deere joint venture in Springfi eld, Mo.,wastewater is distilled, clean water vapor released, and metals, greases and oils collected. What remains are fi lter cakes, which are sent to a local landfi ll as non-hazardous waste.
Wastewater Reused
At John Deere’s Zweibruecken Works, above, fi nding a better way to dispose of waste wood means the factory will reduce its annual greenhouse gas, or GHG, emissions by 3,500 tons.
In 2008, the German plant will install two biomass boilers that will generate energy to heat facilities, air-condition offi ces, and provide heat for various manufacturing processes.
The project will allow Zweibruecken to reduce direct GHG emissions from 5,100 tons a year to 1,600 tons.
Most of Zweibruecken’s waste wood comes from pallets received with inbound material. In addition, the factory will use other biomass material, such as rapeseed cake (a by-product of the production of rapeseed oil), forest residue and silver grass to operate the boilers.
Two boilers are being installed to accommodate different heat volumes needed throughout the year.
Creating Energy Onsite
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Sometimes fi nding ways to save energy means looking in places commonly overlooked. John Deere’s factory in Torreón, Mexico, above, found energy savings in air.
When the Torreón factory opened in 1997 to make diesel engines, axles, and transaxles, it had two air compressors. As operations grew, additional production equipment was installed and compressed-air requirements increased.
Over time, four additionalcompressors were added. While the patchwork of compressors and piping worked well enough, it was an ineffi cient system from the standpoint of energy use. Plus, the multiple-compressor network created a complex system of valves, condensation drains and air dryers that were prone to malfunction.
As a result, air-pressure drops were high – between 10 and 20 pounds per square inch – and expensive.
In response, Torreón installed a new system that consolidated six compressors into one. This created enough compressed air storage to meet demand peaks and substantially boost effi ciency.
Saving Energy by Saving Air
John Deere’s new Montenegro, Brazil, tractor factory, which began operations in 2007, is an example of how to build a factory with respect for the environment. About 25 percent of the 960,000-square-meter (237-acre) building site is maintained as undisturbed nature habitat. Marshlands, trees and wildlife habitat were preserved during construction. Trees listed by Brazil as protected fl ora were carefully relocated. Plus, four trees were planted for each one removed during construction.
Roof skylights and windows increase natural light within the 61,000-square-meter (657,000-square-foot) factory. Minimal-energy-use principles were followed to select energy-effi cient motors, lighting design, and the facility’s energy management systems. Environmentally safer refrigerants, like R-134a, are used for cooling systems.
Outside the factory, a retention pond controls storm water runoff. In addition, the site has no underground oil or chemical storage tanks or fl oor drains and has installed wells for groundwater monitoring.
What’s more, the factory uses low-emission paints and water curtain technology to control paint-booth emissions. Coolant from machining operations is closely managed to extend its life before being properly treated and recycled. Metal scrap, paper, wood, and plastics are sorted and shipped to recyclers.
Brazil Factory Designed for the Environment
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Creating a Safe Workplace
John Deere’s goal is zero injuries. Pursuit of this
aggressive goal, coupled with a long-held
emphasis on employee safety and health, has
made John Deere factories among the safest in
the world. Th e company’s worldwide injury
frequency rate improved 7 percent in 2007
compared with 2006. Th e severity rate improved
10 percent from levels already far better than
commonly found even in non-manufacturing
sectors. Enterprise-wide, Deere’s 2007 injury
rates were at their lowest point ever.
Ergonomics
One reason John Deere employees are so safe
on the job is the company’s long involvement in
ergonomics – designing work and workstations
to eliminate repetitive and awkward movement.
John Deere ergonomics specialists look for ways to adjust work so employees can work safely and comfortably. Often, ergonomic improvements lead to product quality and effi ciency gains.
That’s what happened in an ergonomics project at John Deere’s Mannheim Works. Assemblers who attach front axles to the frames of the tractors manufactured at the German plant once used a loud compressed-air tool in awkward
Improving Ergonomics, Quality
overhead positions to tighten each nut and bolt to the specifi ed torque.
Plant engineers developed a special front-axle nut driver, shown in use above. Now, as each suspended tractor frame comes down the production line, the nut driver is wheeled into place and raised to simultaneously connect the four nuts and bolts linking the axle and frame. Synchronized electric drivers torque down the nuts to pre-set levels, using information
stored in a database to ensure consistent quality.
Result: Employees at the workstation no longer experience extremely loud noises or awkward work positions. Total noise level at the work station has dropped more than 20 percent, eliminating the need for hearing protection, and torquing is much more precise.
5.7 5.9 5.3
05 06 07
Lost-Time Injury Severity RateDays lost per 200,000 hours worked
(2006 results have been restateddue to data collection error)
0.29 0.27 0.25
05 06 07
Lost-Time Injury Frequency RateInjuries per 200,000 hours worked
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Teams at all John Deere factories continually look for ways to be safer. The goal is for all employees to go home injury-free at the end of each shift.
In 2002, John Deere’s factories in Waterloo, Iowa, began requiring employees to remove rings from their fi ngers and wear appropriate gloves while working. The only exception was for those working with rotating or oscillating devices that might entangle a glove.
The new policy has dramatically reduced the number of hand and
Doing so helps reduce stress and eliminates many
potential injuries and disorders associated with the
overuse of muscles, bad posture, and repetitive
tasks.
Continuous improvement (CI) teams also
contribute to John Deere’s enviable safety record.
In the CI process, teams of production employees
set quarterly goals in quality, safety, effi ciency,
and delivery. Th e teams then undertake projects
to make their workplaces safer. Hundreds of
safety-improvement projects are completed every
quarter and the results widely shared throughout
the company.
Th e company encourages employees to apply
safety principles in their homes, too. By including
off -the-job injury statistics, safety messages target
risks away from work. In addition, many units
host safety and health fairs, stressing issues
ranging from hunting safety to cholesterol
screening and awareness.
Occupational Health and Industrial Hygiene
At many John Deere units, occupational health
and industrial hygiene professionals help evaluate
potential exposures to hazardous materials,
manage employee injuries and illnesses, and
protect the confi dentiality of medical information.
In addition, these professionals help units man-
age their medical emergency action plans.
Additionally, John Deere sponsors programs to
assist employees in maintaining and improving
their health and managing their personal and
work-life needs. Resources include health risk
assessments and coaching, and personalized
health education and support.
Th e company has also initiated a company-wide
planning procedure to prepare for the possibility
of pandemics. Individual factories and offi ces will
use the procedure to create local response plans.
John Deere continues to establish global occupa-
tional health programs to address ever-changing
health and well-being challenges as processes,
products, and regulations change. By further
understanding the public health issues and health
care infrastructure in specifi c countries, the
company can develop programs that best serve
employees who work and travel throughout the
world.
fi nger injuries. Case numbers are down 65 percent, from 191 in 2001 to 66 in 2007. Hand and fi nger injury rates (injuries per 200,000 hours worked) are down 76 percent, from 5.77 in 2001 to 1.39 in 2007.
The program is environmentally sound as well. After a period of use, gloves are double-washed, dried and sent through magnetic detection to check for metal shavings. Then they are reused – 4.4 times on average.
Going Home Injury-Free
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17
Regularly cited as a leader in workplace safety, John Deere facilities and manufacturing operations are among the safest in the world. The company’s Cylinder Division in Moline, Ill., for example, has operated for more than 12 years without a lost-time injury.
In 2007, the U.S. National Safety Council presented 77 awards to John Deere units for their safety performances. Among the awards was the council’s 2007 Industry Leader Award, which went to Deere’s Waterloo (Iowa) Works for having the best safety record in the United States in the heavy manufacturing group. In addition, John Deere Turf Care in Fuquay-Varina, North Carolina, received the council’s Perfect Record Award.
The company has received 984 safety awards since NSC started its recognition program. At the end of the 2007 fi scal year, 21 John Deere facilities had each worked more than a million hours without a lost-time injury. Below are facilities that in 2007 reported the highest number of hours worked without a lost-time injury.
2007 Safety Landmarks
As part of a training exercise, an emergency response team, shown at left, practices tending to a victim in a simulated accident at John Deere’s factory in Horizontina, Brazil. Employees who volunteer to serve on the team are trained to provide fi rst aid at the combine and planter factory.
At John Deere workplaces throughout the world, teams are ready to deal with a range of emergencies, including medical, fi re, or weather-related situations, ultimately helping minimize injuries. The teams are trained to perform CPR (cardiopulmonary resuscitation) when necessary,
and, at many locations, are trained to use an AED (automatic external defi brillator). Some employees receive a higher level of training, enabling them to provide medical aid to the injured until local ambulance crews arrive.
Emergency response teams at John Deere locations are trained to provide a level of care at least as good as that required by local, state or country regulations. Training and certifi cation is usually provided by outside resources or agencies, while occupational health unit managers or safety managers arrange for appropriate training and staffi ng.
Emergency Response Teams
5.1 8.2 4.1 9.1 3.2 4.14.4 5.3 8.0
20.6
Augusta,Ga.
Des Moines, Iowa
Fuquay-Varina,N.C.
Greeneville,Tenn.
Jiamusi,China
Cary, N.C. Waterloo (Iowa)Works
Waterloo (Iowa)Engine Works
Units that Reported Millions of Hours Worked Without a Lost-Time Injury
Moline, Ill.Seeding
Group
Charlotte, N.C. Welland, Ont. Works
6.06.4
Moline, Ill.Cylinder Div.
Safety Landmarks Reported During 200724.8
CorporateOffices
Moline, Ill.
Nortrax
2.3
18
An infant named Faith was about a minute from dying when Dave Bingham, shown above, stepped in. By performing the CPR he learned in on-the-job safety training, Bingham saved the child’s life.
Bingham, an instrumentation and test mechanic at John Deere Dubuque (Iowa) Works, isn’t the only hero in the story. His 9-year-old daughter Gabby was at her grandmother’s when she heard a dispatch over the police scanner about a baby drowning in a pool. Gabby recognized the name and address as her family’s neighbors, and called to alert her father.
Bingham raced to his neighbor’s house to fi nd a hysterical parent on the phone with a 911 operator, and 17-month-old Faith lying lifeless on the fl oor.
Bingham’s instincts and CPR training kicked into gear. He immediately cleared Faith’s airway and started the life-saving procedure. Bingham stayed on the line with the 911 operator to make sure he was following the special CPR procedures for infants. By the time the emergency medical techni-cians arrived, Faith was breathing.
Just a few months prior to Faith’s accident, Bing-ham had participated in a CPR refresher course at Dubuque Works. It’s training that helped save Faith’s life.
As shown above, John Deere operations (green bars) have an excellent safety record, with injury rates below those common even in non-manufacturing sectors. (Data is for 2006, the last year for which industry fi gures are available.)
CPR Training Saves Life
0.18
0.20
0.21
0.32
0.50
0.71
0.70
1.00
1.00
1.10
1.20
1.20
1.20
1.40
1.40
1.60
1.80
1.80
2.10
2.20
2.20
2.20
2.40
2.70
2.70
(Sources: John Deere; U.S. Bureau of Labor Statistics)
0.46
John Deere Injury and Illness RatesCompared to U.S. Selected Industries
Frequency rate:Cases with days away from work per 200,000 employee hours worked
John Deere U.S. & Canada
John Deere China
Finance & Insurance
John Deere Mexico
John Deere South America
Electronic Equip/Computers
John Deere Europe
Apparel
Aircraft
Telecommunications
Lawn & Garden Equipt. Mfg.
Printing
Services
Grain Milling
Utilities
Mining
Food Mfg.
Furniture Mfg.
Farm Machinery & Equipt. Mfg.
Construction Machinery Mfg.
Motor Vehicles
Warehouse & Storage
Construction
Forestry & Logging
Iron & Steel Foundries
Trucking
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19
Products
John Deere’s values – integrity, quality, commitment,
and innovation – are expressed in its products as
well as in the way the company makes and sells
them. Deere products are well known for their
quality, reliability, innovative designs, and perfor-
mance. What’s more, they incorporate features to
lessen environmental impacts or advance
sustainable production, effi ciency, and safety.
For example, John Deere Power Systems, which
manufactures diesel engines from 30 kW to
448 kW (40 hp to 600 hp), has been a leader in
reducing diesel engine emissions, and has shown
ways to harness engine power while minimizing
its impact on the environment.
John Deere is developing appropriate technologies
to address stringent emissions standards soon
taking eff ect in the United States and Europe.
Th e standards – Interim Tier 4 in the United States
and Stage III B in the European Union – aff ect
nonroad diesel engines. For engines of 130 kW
(174 hp) and above, John Deere plans to add
aftertreatment to its PowerTech Plus engine
technologies, which include variable geometry
turbocharging, cooled exhaust gas recirculation,
high-pressure fuel systems, four-valve cylinder
heads, and electronic controls. Many John Deere
engines under 56 kW (75 hp) already are Interim
Tier 4 and Stage III A compliant.
Besides engines, John Deere Power Systems makes
heavy-duty drivetrain components such as
transmissions, axles, planetary drives, and pump
drives for nonroad applications. As a result, the
company can skillfully integrate engines, drive-
train components, and electronic engine-control
units. Th is capability is important in maximizing
fuel economy and performance while meeting
emissions regulations.
John Deere continues to support the use of
biodiesel, which can be used in most of its
engines. An early adopter of biodiesel, Deere
continues working with standards-setting bodies
to promote the fuel. Biodiesel is a renewable,
oxygenated fuel commonly made from soybeans
or other oilseeds. It is biodegradable and nontoxic,
John Deere’s 1870 air seeder allows single-pass, low-soil-disturbance seeding for more accurate placement of fertilizer and reduced input costs while optimizing conditions for responsible stewardship of the soil. In reduced tillage systems, crop residues are retained on the fi eld, improving soil structure, reducing erosion, and improving moisture retention. Coupled with the company’s GreenStar 2 precision guidance and map-based prescription seeding, fertilizing, and fi eld documentation systems, the 1870 with Conserva Pak gives customers the most productive and environmentally friendly air seeders ever.
John Deere’s 210LJ landscape loader illustrates how the company includes environmental stewardship and safety in its designs. Besides its Tier 3-certifi ed John Deere PowerTech E engine, the machine sits low to the ground to enable safer grading under building eaves. The operator’s station has a wider platform and a seat that swivels for a better view of rear working tools.
Saving SoilWorking for safety
20
John Deere has been working to reduce engine emissions since 1967. That was when the company fi rst began emissions testing – years before governments recog-nized the need for standards (at left, a test lab at John Deere Product Engineering Center in Waterloo, Iowa). The company’s work over several decades has proven it is possible to maintain fuel effi ciency and engine performance while pursuing cleaner air. For example, keeping air intake temperatures as low as possible controls oxides of nitrogen (NOx). John Deere was the fi rst to use air-to-air charge air cooling in nonroad applications and has nearly 20 years’ experience using the technology.
John Deere engineers have employed three key technologies on the PowerTech Plus engines that reduce emissions and fuel consumption simultaneously: cooled exhaust gas recirculation, a variable geometry turbocharger, and a state-of-the-art engine control unit. Applying those tech-nologies has resulted in engines that meet nonroad emissions regulations set by the U.S. EPA and other bodies.
Deere launched Tier 3/Stage III A engines ahead of EPA and EU deadlines and is developing technologies to meet forthcoming Tier 4/Stage III B regulations.
Making Engines Work Better, Cleaner
produces less visible smoke and lowers engine
particulate matter, hydrocarbons, carbon monox-
ide and life-cycle carbon dioxide emissions. As a
renewable energy alternative, biodiesel reduces
dependence on petroleum and helps create more
stable markets for oilseed crops. It can be blended
with petroleum diesel to create a blend, such as
B20, or 20 percent biodiesel.
Machine performance is just one aspect of
John Deere’s focus on environmental impacts.
Just as important is what goes into the company’s
products and how they’re used.
• John Deere uses recycled or renewable materials
in its products, such as corn- and soy-based
plastics for components on combines and some
tractors.
• Reduced environmental impact is one benefi t
of no-till farming methods, pioneered by
John Deere. No-till methods leave crop residue
on fi elds, conserving moisture and reducing the
need for chemicals to control weeds and fertilize
the crop.
• John Deere’s GreenStar AutoTrac assisted
steering system further helps farmers conserve
agricultural inputs while decreasing environmental
impact and fuel consumption. AutoTrac uses the
global positioning system, or GPS, to steer the
vehicle down the fi eld, eliminating fertilizer and
seed overlaps, for example.
• John Deere Water Technologies sells high-
performance plastic micro- and drip-irrigation
products for the agricultural, nursery, and
greenhouse markets. John Deere Golf & Turf
One Source is a service platform through which
the company provides products and services such
as irrigation systems for golf courses. Both
businesses help customers eff ectively manage
water to improve plant health and reduce the use
of chemicals.
Resource conservation is aided by recycling, too,
and John Deere has been involved in remanufac-
turing for more than a decade. A Deere facility
in Canada provides remanufactured hydraulic
and powertrain components to makers of heavy
equipment. A joint-venture operation in Mis-
souri between John Deere and SRC Holdings Co.
remanufactures engines, fuel systems and engine
components.
21
Promoting Product Safety
John Deere strives to conduct business and design
products in a manner that safeguards customers.
Appropriate features are built into John Deere
products to help protect operators and others
from injury, illness and fatigue. Th e company’s
100 Series and Select Series lawn and garden
tractors, for example, provide an option that
requires operators to engage a switch to mow in
reverse. Th at helps ensure users check behind
them for hazards. Th e machines also have a brake
interlock that prevents starting the mower unless
the brakes are engaged.
At company factories, product safety committees
and product safety facilitators are involved in
product improvement and development processes.
Th ey conduct comprehensive safety reviews using
tools such as John Deere’s Hazard Discovery and
Rating System, checklist-based reviews, Failure
Modes and Eff ects Analysis, and the Quantitative
Safety Risk Assessment.
At the corporate level, the company’s Product
Safety Department works with factory safety
committees, especially during product technology
development, and provides coordination and
consistent processes for multiple-factory product
development projects. Th e department also
keeps units informed of safety developments and
product-safety professionals participate in trade
associations and standards development
organizations.
John Deere also works with customers, dealers
and external safety organizations to promote
proper use and maintenance of its products. Th e
company provides training resources such as
videos, posters, brochures, and guides, including
materials that teach children about safety. It also
supports child safety organizations, such as Farm
Safety 4 Just Kids. In addition, dealers are
encouraged to promote safety in their communities
through local John Deere safety days.
Besides regular training programs for professional
equipment operators, the company delivers safety
DVDs with new lawn and garden tractors. Deere
also has produced television programs to educate
property owners who may be unaware of standard
safety practices for the equipment they use to
maintain their land.
Building on its commitment to safety, John Deere is helping ensure the success of a New York program that retrofi ts tractors with rollover protection structures (ROPS) to help save lives.
The state legislature funded a ROPS rebate program in 2007 that reimburses New York farmers for most of the ROPS cost. John Deere dealers help, too, by ensuring clients’ ROPS kits are ordered, installed and properly documented for a rebate. In the program’s fi rst year, 351 ROPS were installed and funding has been approved for another year.
John Deere engineers developed ROPS, which, used with a seat belt, offers protection in the case of tractor rollover. In 1966, Deere shared the ROPS patent with other equipment manufacturers to improve safety for all farmers.
John Deere’s new 313 and 315 radial-lift skid steer loaders (above, a 315 model) advance operator safety by providing clear visibility to the sides and rear. An in-seat boom lock – a Deere exclusive – is engaged from the operator station. A triple-inter-lock park brake system ensures the operator is seated and the seat belt engaged for operation. Brakes automatically engage when the seat belt is unfastened.
In Europe, John Deere forage harvesters are already a popular and effi cient way to collect plant material for conversion to energy, often in biogas digesters. The same things that make forage effi cient for livestock feeding make material more effi cient for biogas digesters – compaction, length of cut, and dry-matter content, among other things. The John Deere 7050 Series self-propelled forage harvester introduced in 2007 includes features to optimize length of cut based on dry-matter content.
Retro ROPS Giving Safety a Lift Harvesting Energy
22
John Deere’s commitment to integrity and
social responsibility extends to businesses and
communities around the world through an
unparalleled dealer network and a diverse
worldwide supply base.
John Deere dealers, who are primarily
independent business people, are the face of the
company for most customers. Besides promoting
the John Deere line in their territories, dealers
accept responsibility for enhancing the company’s
reputation with customers. Th e company
actively seeks high-caliber, qualifi ed candidates
with diverse backgrounds. For Deere’s three
equipment divisions in the United States, more
than 220 dealers are women or members of
minority groups.
Th rough its training materials and guidelines,
John Deere works to help dealers operate safe
and environmentally sound businesses.
Training is available to dealer employees through
the company’s John Deere University. Subjects
include chemical management, spill prevention
and control, waste management planning, and
workplace and customer safety training.
Dealerships play an important role in local econ-
omies. Deere’s agricultural equipment dealers in
the United States generate more than $14 billion
in revenues, employ nearly 32,500 people, and
Dealers & Suppliers
spend more than $80 million in advertising, sales
promotion, professional services and employee
training annually.
Suppliers and the Code of Conduct
Suppliers are expected to abide by the John Deere
Supplier Code of Conduct. Based on Deere’s
own rigorous business-conduct guidelines, the
supplier code applies to all suppliers worldwide
and is available on the Internet in 18 languages.
Under the code, suppliers may not off er gifts to
John Deere employees nor make payments to
government agencies to gain business advantages.
Suppliers, in addition, are expected to comply
with child labor laws and must not engage in or
support use of forced or involuntary labor. Th ey
are expected to comply with all applicable local
laws concerning discrimination in employment,
provide safe working environments and comply
with safety and health laws and regulations.
Suppliers also must conduct their operations in
a way that protects the environment and comply
with all environmental laws and regulations.
Additionally, suppliers are expected to be familiar
with the business practices of their own suppliers
and sub-contractors and ensure that they, too,
operate in accordance with the code. John Deere
Besides operating successful businesses in their trade areas, John Deere dealers frequently are community leaders who get things done.
When a massive F5 tornado demolished Greensburg, Kansas, last year, Murphy Tractor, a Deere construction equipment dealer, donated the use of equipment to begin the cleanup.
Murphy Tractor also provided a crawler loader to a hard-hit neighboring county.
Throughout the cleanup, John Deere machines were instrumental. At left, a 444J loader ready to begin digging into rubble.
Dealers Helping Out
23
provides a reporting process through which sup-
pliers or their employees can anonymously report
potential violations.
John Deere relies on strong, competent suppli-
ers and a supply base that mirrors the diversity
of its customers worldwide. For that reason, the
company maintains programs to qualify and
help develop capable small and diverse suppliers.
Deere seeks out capable suppliers through a
supplier diversity Web site, supplier fairs and
other research. John Deere Supply Management
routinely works with small suppliers to help
them become more competitive by adopting
lean manufacturing principles. Th is is often done
through university partnerships such as one with
Tecnológico de Monterrey in Mexico, which
has helped two small suppliers in Chihuahua
and Toluca. Projects are also being developed
with universities in China, France and Canada.
Continuing programs are helping 31 John Deere
suppliers in eight U.S. states.
Shared values often lead to close relationships. As an example, John Deere and ocean transport supplier Wallenius Wilhelmsen Logistics collaborated on a Mis-sissippi River clean-up project in 2007. The project was created by Living Lands & Waters, a non-profi t group that assigned
Valuing Common Goals
John Deere dealerships are important businesses in their communities. Many have adopted the company’s signature showroom concept called John Deere Place (photo at left). It maximizes retail space to create a comfortable buying atmosphere, promoting a positive John Deere retail experience for customers.
The John Deere Experience
volunteers to pick up trash from the banks of creeks and rivers. Along with other volunteers, the 40-member team from John Deere and Wallenius removed 49,000 pounds of debris from the Mississippi River, including scores of tires.
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Great people make John Deere a great company.
For this reason, the company works to ensure
that employees around the world have oppor-
tunities to develop their own potential while
providing goods and services that benefi t society.
Aligned High-performance Teamwork
Fulfi lling the company’s strategies depends on
aligned, high-performance teamwork – teams
that focus on results and common goals.
John Deere is working to establish that
performance-based culture as part of its eff orts
to grow a great business enriched by the aligned
eff orts of a worldwide workforce of more than
50,000 employees. Th e company’s job designs,
reward systems, and performance feedback
and development process are all constructed to
support aligned, high-performance teamwork.
Diversity is important to the company’s growth
plans. A diverse workforce encourages the
creativity and innovation critical to growth and
helps build a stimulating work environment.
John Deere wants to maximize diversity,
capitalizing on employee diff erences while
enabling all to realize their highest potential and
contribute to the enterprise and to society as a
whole.
In 2007, for the fi fth year in a row, John Deere was named one of the 50 best employers in the United States for workers over age 50 by AARP, a non-profi t membership organization. The award was established by AARP to honor employers who show a commitment to older workers like Francis Goedken (left) and Jose Luis Chinarro (center, right). Both employees have more than 50 years of service at John Deere.
Goedken started as a pattern maker apprentice in June 1955 and has spent his career at John Deere Dubuque Works in Dubuque, Iowa. The need for a
Employees
John Deere’s Team Enrichment initiative has
created a regional council structure to develop
processes and behaviors that support a diverse
workforce in an inclusive work environment.
Th e councils identify region-specifi c approaches
to teamwork. Employees from a variety of
backgrounds work together on identifi ed focus
areas, specifi cally to fi nd ways to encourage and
enable high-performance teamwork.
Th e company also is intent on maintaining close
working relationships with wage employees. In
addition to job training, wage employees learn
about Deere’s fi nancial and operating metrics
and, in most cases, share in the company’s success
when productivity targets are met.
Personal Development
John Deere’s career-development process helps
employees manage their careers. Th e process
identifi es paths that can build the skills, experience,
knowledge, and competencies needed for career
development and advancement. When job
openings occur, an extensive employee-résumé
system enables hiring managers to search for
individuals with the right skills and experience.
Training and education enable employees to
reach their potential in every discipline from the
factory fl oor to the corporate headquarters.
Valuing the Older Worker
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25
John Deere has always relied on teamwork. Now, the company is working to build a formal environment aimed at creating and sustaining high-performance teams.
Under its Team Enrichment initiative, introduced in 2006, the company is creating stronger teams, positioning itself to compete for the best global talent, enhancing workforce diversity, and building a culture of inclusion.
John Deere’s long-term competitive advantage lies in how employees work together to capitalize on opportunities and execute strategies. Team Enrichment is designed to help the company understand what makes a team high-performing, and, importantly, how teams create an environment in which employees and future leaders from all backgrounds can develop.
In 2007, the initiative launched pilot Team Enrichment Councils (TECs) in the United States, Europe, and Latin America. Each council has identifi ed key focus areas that will further enable teamwork. This year’s regional projects are aimed at global team development, increasing diversity, understanding employee expectations, and developing leadership skills.
A fourth council, focusing on employees from businesses in the United States and Canada recently acquired by Deere, will be launched in 2008. An Asia TEC will be launched over the next year.
pattern maker went away in 2001. He now works on a cost reduction team, whose efforts he describes as interesting and challenging.
According to Chinarro, he was still wearing short pants when he started as a tooling apprentice at John Deere’s factory in Getafe, Spain, in October 1957. He, too, has spent his entire career at the factory, working in tooling, methods and time engineering, and supervision. Chinarro attributes many of the best experiences of his life to his employment at John Deere.
Enriching John Deere Teams
26
John Deere Learning, an online learning tool,
provides access to a range of colleges and course
curricula. It is used by employees in the United
States and Canada and is being expanded globally.
Leadership development, a global priority, is
provided at all leadership levels. Leadership
training is provided internally to supervisors and
managers around the world by certifi ed trainers
in employees’ native languages.
Over 100 John Deere advisors help employees
make sound decisions about managing their
careers. Coaching and mentoring services are
off ered to salaried employees interested in
enhancing their careers and work performance.
John Deere also helps employees continue their
educations, off ering tuition reimbursement and
assistance for associate, technical, four-year and
graduate degrees as appropriate.
Work-life Management
John Deere recognizes the challenges employees
face in balancing the many facets of their lives at
home and at work.
• Th e company off ers a variety of working
arrangements to help employees manage home
and work-life situations. Th ese include fl exible
schedules, telecommuting and job sharing. Deere
subsidizes daycare providers in some communi-
ties to help employees secure quality child care.
• Th rough its Healthy Directions initiative, the
company has introduced programs and resources
to help U.S. salaried employees focus on their
health and well being. Some larger facilities have
fi tness centers on site.
• John Deere also encourages employees around
the world to consider volunteering time and
other resources to personal causes, as well as to
workplace-sponsored projects.
Collecting food for hungry people has become a record-setting event for employees of John Deere’s Commercial & Consumer Equip-ment Division.
In their annual drive, C&CE employees collect and donate tons of food to charities in Germany, Canada and the United States. In 2007, more than 57 tons of food were collected for local charities where the division has facilities.
By collecting and donating food to help people in crisis, employees are expressing commitment – one of the company’s core values – to their communities.
They’re committed to making the program bigger and better as well. From 2 tons collected in 2002, the fi rst year the event was held, the collection went to 15 tons in 2003 and kept rising, to the record tonnage in 2007.
Organizations benefi ting from the food drive include Second Harvest Food Bank of Charlotte, N.C., and Greeneville, Tenn., Central Wisconsin Community Action Council, Oberbergische Tafel Soup Kitchen in Gummersbach, Germany, the Fuquay-Varina (N.C.) Food Bank, and Port Cares in Welland, Ont., Canada.
Employee GenerositySets New Record for Food Drive
27
John Deere supports a range of employee network groups around the world that bring together people with shared interests, backgrounds, skills or spe-cializations. Employee network groups develop goals related to business, career, and community. In the process, they help the company attract and retain top talent and achieve improved business results. Network groups support their local communities through events and sponsorships.
Employee network groups at John Deere include:
African-American: Dedicated to developing members’ skill sets to lead, assist, and excel professionally and to help improve recruitment and retention. In fi scal 2007, the network helped secure $3.35 mil-lion in sales to municipalities through relationships developed with the National Conference of Black Mayors.
Asian/Pacifi c Islander or LOTUS (Lead, Organize, Teach, Unite and Support): Aims to promote an inclusive, collaborative environment for all employees to help accomplish outstanding business results. In 2007, LOTUS sponsored and coordinated monthly lunch-hour informational events on career develop-ment, global supply management, China and India operations, IT innovation, and corporate business development.
Hispanic: Vision is unity within John Deere; mission is to lead, assist and support company effort to employ, develop, and retain Hispanics in the workforce.
Multicultural: Aim is bringing together employees from variety of racial and ethnic backgrounds to promote understanding, create an inclusive and collaborative environment, and foster personal and professional development. John Deere sponsors these network groups at many factory locations.
NEON (New & Experienced Organizational Network): Open to all employees, regardless of their years of experience, group focuses on both business and social-oriented events. Focus includes working to enhance the John Deere culture, cultivate employee morale, and improve employee productivity and retention.
Women REACH (Relating, Enriching, Achieving, Challenging and Helping): Creates an environment for women to learn, develop, and build professional relationships. Company has Women REACH groups in Cary, N.C.; Brazil (South America Employee Network); Horicon and Madison, Wis.; Mannheim, Germany; Johnston, Iowa; Quad-Cities, Ill. and Iowa; Thibodaux, La.; Tampere, Finland; and Pune, India.
If you are interested in an employee network group participating in your project or event, please send an e-mail to [email protected]
One way the Mannheim Women REACH employee network group widens the horizons of its members is through tractor training. The yearly event, held at the company’s training center in Bruchsal, Germany, brings people together to learn about John Deere equipment and have fun, too.
Employee Network Groups Add Value
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Th e company’s primary philanthropic arm is the
John Deere Foundation, which donated $11.2
million in 2007 in the areas of education, human
services, arts and culture, community develop-
ment, and its newest initiative, Solutions for
World Hunger. Notable contributions included a
$1 million donation to Purdue University’s Neil
Armstrong Engineering Building to develop a
permanent exhibit encouraging the study of math
and science. Th e company also renewed a three-
year, $3 million grant to KickStart, a non-profi t
organization helping lift African farmers out of
poverty. In addition, the John Deere Foundation
continued its signifi cant annual support of two
organizations through both fi nancial donations
In a country with 120 million hectares (about 300 million acres) of farmland, much of it under-developed, the need for modern agricultural equipment is great. So, too, is the need for trained technicians. As part of its com-mitment to advancing agriculture education in the country, John Deere Russia donated two grain combines to Orel State Agri-cultural University (OSAU).
The 9560 and 1175 model com-bines were presented in a special ceremony at the school’s
Philanthropy
and employee participation: Junior Achievement,
which educates young people about business and
economics, and United Way, an organization
aimed at improving communities by mobilizing
people and resources.
Commitment at the Facility Level
At the facility level, John Deere continued to make
positive and lasting impacts in communities.
• Th e company’s Waterloo, Iowa, operations have
a long history of supporting community develop-
ment in the Cedar Valley area. In 2007, the unit
facilitated a donation of more than $17.4 million
in buildings, land, technical assistance and fi nan-
cial resources to a nonprofi t group developing a
bio-based, agri-industrial product development
and exposition marketplace. Th e initiative, Cedar
Valley TechWorks, is being developed over several
years on about 40 acres of land that formerly
housed part of Deere’s Waterloo operations.
• John Deere Dubuque (Iowa) Works was awarded
the Outstanding Philanthropic Organization
award in 2007 by the Greater Tri-State chapter
All-Russia Education Day in September 2007. Representatives from John Deere and Russian government offi cials were among the 1,000 in attendance, along with OSAU students and faculty.
One of Russia’s premier agricultural universities, OSAU is located in the city of Orel, about 350 kilometers (220 miles) southwest of Moscow. Combines will be used to train students in agricultural machinery classes both on campus and in nearby test fi elds.
Supporting Ag Education in Russia
Arts and Culture
Community Development
Education
Health and Human Services
Solutions for World Hunger
John Deere Foundation2007 Contributions
29
The World Food Prize recognizes individual con-tributions in advancing human development by improving the quality, quantity or availability of food. It also helps develop the individuals who will provide those contributions in the future. Its Youth Institute is devoted to increasing awareness of the prize among young people in Iowa and beyond. An extension of the institute, the Borlaug-Ruan Intern-ship program sends talented high-school students to agricultural research centers in Africa, Asia and Latin America each summer to work with noted scientists.
A portion of the John Deere Foundation’s $100,000 contribution to The World Food Prize in 2007 was earmarked to support two of the institute’s interns.
Jack Hou (inset, above), now a student at Iowa State University, spent his eight-week internship at the Brazilian Corporation of Agricultural Research (Embrapa) in Londrina, Brazil. He helped analyze a soybean fungus that caused sudden death in soybean plants and posed a widespread problem for farmers in Southern Brazil.
For her internship, Katie Seiser Taylor (at left, above) of Des Moines, Iowa, spent the summer at the M.S. Swaminathan Research Foundation in Chennai, India. Working under the guidance of an ecotechnologist, she helped promote a self-help group concept designed to lift women and their families out of poverty. She also provided instruction on basic fi nancial skills and record-keeping.
From Iowa to the World
30
India is a country that values education. Employees at John Deere’s tractor factory near Pune are helping ensure that some of the area’s youngest citizens learn in the best environment possible.
Members of the factory’s social responsibility committee have adopted education as a focus of the plant’s philanthropic efforts. Now, employees have begun a program to provide for the basic needs of fi ve area schools that together have an enrollment of 2,800 students ranging in age from 4 to 14 years old.
Visiting the schools, committee members saw students sitting on fl oors for their lessons, teachers standing all day, a lack of clean drinking water, limited school supplies, and broken toilets, windows and doors.
In response, the committee began raising funds and gathering volunteers. The fi rst step was outfi tting schools with desks, chairs and educational materials. This year, employees will arrange for building maintenance and donate computers and other necessary school supplies.
of the Association of Fundraising Professionals.
Th e unit was cited for its numerous community
involvement activities, as well as for its leadership
roles on community boards and overall fi nancial
support of community initiatives.
• In Fargo, N.D., John Deere’s Phoenix Interna-
tional unit is a leading supporter of the Troll-
wood Performing Arts School. Phoenix con-
tributes to Trollwood’s Students at Risk (STAR)
program, which introduces the arts to under-
privileged children.
Global Philanthropies
Elsewhere, the John Deere Foundation of Canada
focused 2007 giving on hospitals and health
organizations, a hospice and Habitat for Human-
ity. In addition to fi nancial support, employees
helped build Habitat houses. Education support
included awarding scholarships at many universi-
ties across Canada.
• In Europe, the John Deere Goodwill Fund
continued its partnership with the International
Garden in Mannheim, Germany, where recent
immigrants are encouraged to work with local
citizens in planting and growing fl owers and
vegetables in an urban setting. In addition, the
Goodwill Fund in 2007 supported the Heidelberg
Center of American Studies’ Spring Academy.
Th is international forum gathers scholars to
discuss their work on American Studies, in hopes
of creating a better understanding of American
culture amongst Europeans.
• Fundação John Deere in Brazil supports social
services, multiple forms of health services for
employees, arts and culture, and sports. Each of
Brazil’s fi ve units chooses various social responsi-
bility programs each year aimed at improving the
quality of life for their employees and communi-
ties. In addition, Fundação John Deere promotes
volunteerism among employees and their families,
even conducting workshops that teach the funda-
mentals and responsibilities of being a volunteer.
Sponsored Programs
Sponsored Programs, through which John Deere
supports diverse business and marketing activities
of value to the company, continues to be an impor-
tant part of the company’s philanthropic eff orts.
Non-profi t organizations supported through
corporate sponsorships include the following:
National FFA, Society of Hispanic Professional
Engineers, National 4-H Council, U.S. Jaycees
Better Local Education
Vertis QCA1300 19th Street, Suite 200East Moline, IL 61244
Cyan Magenta Yellow Black 2007 Citizenship Report Page 30 200
31
When the world’s largest manu-facturer of agricultural equipment partners with one of the world’s leading university agricultural engineering programs, exciting things happen.
Biorenewable fuel sources are at the forefront in addressing the world’s long-term energy needs and are also important in response to the issues of global climate change and environmental sustainability. The John Deere Foundation’s $1.25
million grant to Iowa State University, Ames, Iowa, for construction of an agricultural and biosystems engineering facility (architect’s rendering, above) will help ensure biorenewables reach their full potential. The building is part of a planned multi-structure complex that will include ISU’s Bioeconomy Institute.
The development of biorenewable fuel sources holds exceptional
opportunity for developing new crops and new markets for the agricultural economy.
Iowa State’s agricultural and biosystems engineering programs are widely recognized for excel-lence. ISU therefore is in a strong position to provide leadership and technical support to the biorenewables effort. Both are essential to producing renewable fuels on a large scale and in an economical, sustainable manner.
Outstanding Young Farmer program, Skills
U.S.A., and Minorities in Agriculture, National
Resources and other Related Sciences
(MANRRS).
Community Relations
John Deere strives to be a good corporate citizen
by improving the quality of life in communities
where it has facilities. In recognition of its eff orts
at the community level, John Deere received the
American Red Cross’ highest recognition award,
the Circle of Humanitarians Award, in 2007. It
was the fourth consecutive year Deere received
the award, which recognizes businesses making
annual fi nancial and in-kind contributions of
$1 million or more.
Fueling Our Future
Citizenship HighlightsEffi ciently harvesting saw logs and biomass while contributing to a healthyforest, John Deere’s biomass harvesting system uses the 1490D energy wood harvester to turn residue into fuelbundles.
• John Deere ranked 4th on list of “100 Best Corporate Citizens” by CRO magazine, a journal for corporate responsibility offi cers.
• Company units receive 77 awards from National Safety Council.
• Showing commitment to the alternative energy market, John Deere Renewables expands business services; generating capacity of wind projects approaches 600 megawatts.
• Building on its record of environmental stewardship, John Deere joins U.S. EPA’s Climate Leaders program and holds greenhouse-gas summit to plan company-wide emissions reductions.
• Company named one of U.S. best employers for workers over age 50 by non-profi t organization AARP.
• John Deere ranked No. 1 in Fortune magazine list of “Most Admired Companies” in Industrial and Farm Equipment category, based on survey of industry executives, directors and analysts.
• For fourth year in a row, John Deere recognized with the American Red Cross’ Circle of Humanitarians Award.
• John Deere China announces it will begin providing scholarships and special training programs to students at Tianjin University, one of top engineering schools in China.
• US Black Engineer and Information Technology magazine lists company among those most supportive of Historically Black Colleges and Universities.
• John Deere named one of “Best Diversity Companies” in survey of readers of Diversity/Careers in Engineering & Information Technology magazine.
J Series backhoe loaders (410J TC shown) are designed to let operators see the work better, change attachments from the cab. Auto-idle feature saves fuel; ride control improves handling on rough ground.
The Gator TE utility vehicle provides quiet, electrical operation. Powered by a standard 48-volt system, the zero-emissions machine boasts fast acceleration, improved climbing power, and performs evenly until recharge.
John Deere’s E-Premium Series tractors are the fi rst to have on-board electrical power networks that can power engine accessories, contributing to fuel savings and boosting performance.