ITW - Illinois Tool Works

Corporate Accountability

 

At ITW, we believe strongly in the health and safety of our employees, and value the trust that our shareholders have placed in us. High ethical standards, backed by clear and firm governance policies, are part of why we’ve remained financially sound and strong for nearly 100 years—even during periods of slow economic growth or market fluctuations.

ITW Wellness Expands and Reaches More Employees

Participation in ITW’s free employee wellness program increased in 2010. Over 10,000 employees took advantage of the program’s free, on-site biometric health screenings and other resources. Combined with employees who pursued a physician screening based on these tools, almost two thirds of ITW employees took steps toward improving their health in 2010.

The program was also updated with an expanded portal to give employees enhanced access to healthcare information and a toolkit to give wellness “champions” at our business units the means to initiate local programs. A few of the programs at ITW businesses represent our emphasis on employee health:

  • Traulsen Refrigeration in Texas used hands-on approaches to reach 77 percent participation in its wellness program and integrated walking and recreational programs for its diverse workforce (see profile at right).
  • AXA Power, in Denmark, began closing its office for 90 minutes each day for employees to walk, run, cycle and play soccer together. After exploring different wellness models, the company determined that investing in bikes, running gear and other equipment would reap more benefits than a room full of exercise equipment. They have seen improvements in operating income, the effectiveness of working teams, and overall employee health. And after getting involved with running at work, some employees have been inspired to enter the Copenhagen Marathon.

CORPORATE GOVERNANCE STRENGTHENED

Recognizing that the international legal landscape has become increasingly more complex, in 2010 we strengthened our Statement of Principles of Conduct, an internal set of standards and principles of behavior that apply to all ITW operations, divisions and subsidiaries—no matter where in the world they are located. Our new Anti-Corruption Policy supplements our Statement of Principles of Conduct and provides detailed guidance to our employees on what actions are prohibited under anti-bribery and anti-corruption laws. In 2010, we also adopted two new policies—one that prohibits our key employees from hedging the risk of ownership in ITW stock and another that provides for the recovery of incentive compensation payments from our senior officers in the event of an accounting restatement (whether or not based on misconduct) due to material noncompliance with financial reporting requirements.

More ITW businesses meet strict safety standards

Our Statement of Principles of Conduct details the requirements that all of our businesses must follow regarding employee health and safety.

  • In 2010, four of ITW’s businesses met the rigorous requirements of Occupational Health and Safety Assessment Series (OHSAS) 18001. The OHSAS 18001 is a standardized assessment tool used to assess organizations on their health and safety performance. Currently, fewer than 10,000 businesses hold the certification. (The OHSAS 18001 was developed for compatibility with the environmental management system, ISO 14001. See Environmental Responsibility.)
  • ITW also increased the number of its businesses in the U.S. Occupational Safety and Health Administration Voluntary Protection Program (OSHA VPP) to five locations. The OSHA VPP recognizes employers in private industry and federal agencies who have maintained injury and illness rates below national Bureau of Labor Statistics’ averages for their respective industries.

At ITW, we’re very proud that our social commitment has remained strong for nearly 100 years. In 2010, when our company established an even stronger presence in emerging markets all over the world, we followed through with record-breaking charitable contributions and company-wide programs that promote wellness, accountability, and diversity. And despite the challenges of having a global, highly decentralized structure, we’ve gained real momentum with our programs to launch new sustainability initiatives and capture comprehensive environmental data from each of our businesses—hundreds of them, all over the world. We look forward to leveraging these global insights to strengthen our environmental commitment even further in the coming years.


Traulsen

Hands-on wellness outreach

Like many of ITW’s North American business units, Traulsen, a foodservice refrigeration business in Fort Worth, Texas, offers a voluntary wellness program that includes on-site biometric screenings (such as cholesterol and blood pressure) and online personal health assessments. Traulsen also has one of ITW’s most diverse staffs, with 300 men and women from over 17 different countries speaking Spanish, Vietnamese, Croatian, and other languages. Most employees have limited English skills, have never used a computer or the Internet, and face cultural barriers to sharing personal health information.

Not content to let the wellness tools go unused—and risk losing opportunities to improve employee health—a dedicated group of human resources professionals worked hands-on, for many weeks, to bring employees into the wellness program. They delivered informal talks directly on the shop floor, translated the survey format, and set up computer kiosks for one-on-one sessions. The HR wellness team became trainers and educators, not just benefit and employee relations experts. And being bilingual themselves, they were able to communicate with employees and address concerns with sensitivity.

By 2010, Traulsen achieved 77 percent participation despite their unique challenges. Traulsen has supplemented its efforts to get the wellness program off the ground by recruiting wellness “champions” throughout the business unit and establishing walking groups and outdoor recreational sports. Given the known connection between good employee health and workplace safety, Traulsen has incorporated wellness elements into its safety plans as well as other internal initiatives like its United Way campaign, sustainability, and diversity efforts.

Pictured above:

Ana Flores
Senior Human Resources Specialist

Mai Nguyen
Personnel Coordinator II

Andres Bolivar
Employee Relations Manager


The Chilean mine collapse – when innovation and quality matter most

A commitment to quality high-performing tools, made with integrity, is one of ITW’s core values. But rarely has it been tested by situations as extreme as the mine collapse of August 2010 in San Jose, Chile. It took 17 days to locate 33 trapped miners, using drilling rigs that bored
5½ inch holes 2,300 feet deep.

A large rig, nicknamed “the miracle,” bored the 28-inch hole that was used to pull the miners to safety. It was mounted on a custom-built, heavy-duty truck chassis manufactured by ITW’s Crane Carrier Company. The widening process began September 5, and with zero downtime attributed to the truck and Crane chassis, drilling was complete by October 9. All 33 miners were returned to safety.