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SUSTAINABILITY REPORTROOTED IN TRADITION, GROWING RESPONSIBLY2
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1.0 SustainabilityatTysonFoods –AProudHeritage1.1 TysonFoods’Sustainability MissionStatement1.2 AMessagefromourPresident andCEO1.3 AMessagefromourChief Environmental,Health,and SafetyOfficer1.4 TheFoundationofOurCompany -OurCoreValues
2.0 TysonFoodsataGlance2.1 OurCustomersandConsumers2.2 ADiversifiedBusinessModel2.3 OurOperations
3.0 People3.1 Ethics3.2 RecognizinganExceptionalWorkforce3.3 EnsuringtheHealthandSafetyofOur TeamMembers3.4 HungerRelief3.5 CharitableGiving
4.0 Planet4.1 OurEnvironmental,Health,and SafetyPolicy4.2 OurEnvironmentalTeam4.3 EnvironmentalManagementSystem4.4 AuditingOurPerformance4.5 DataCollectionandAssurance4.6 ManagingOurEnvironmentalFootprint4.7 EnvironmentalFinesandPenalties4.8 AwardsandRecognitions
5.0 Products5.1 ManagingFoodSafetyandQuality5.2 SupportingOurCustomersand Consumers5.3 ProductResearchandDevelopment5.4 PromotingNutritionandHealth5.5 ResponsibleMarketingandAdvertising5.6 AnimalWell-Being
6.0 Profits6.1 CorporateGovernanceand Compliance6.2 CompanyStrategyandFinancial Performance6.3 OurSupplyPartners6.4 SupportingtheFamilyFarmer6.5 RenewableProducts6.6 BuildingaMultinationalEnterprise6.7 PublicPolicyandPolitical Contributions6.8 EthanolandAnimalFeed
7.0 OurApproachtoSustainability Reporting7.1 MaterialIssues7.2 GrowingSuccessfulPartnerships –StakeholderEngagement7.3 RestatementsandChangesin Reporting7.4 DataIntegrity
8.0 GlobalReportingInitiativeIndex8.1 Acknowledgements8.2 Contacts
Contents
2009 Tyson Foods Sustainability Report | 2
Asweenterour75thyearofbusiness,wefindourselvesthinkingbackto1935whenourfounder,JohnW.Tyson,beganhaulingchickensfromSpringdale,Arkansas,topoultrymarketsinKansasCityandSt.Louis,Missouri.Inthespringof1936,Johndeliveredhisfirstloadof500Arkansas-grownchickenstoChicagoandnettedaprofitof$235.Withinayear,JohnwashaulingloadsofArkansaschickenstonewmarketsinCincinnati,Detroit,Cleveland,Memphis,andHouston.Althoughnoonerealizeditatthetime,JohnwaslayingthefoundationforthemoderndaypoultrybusinessandTysonFoods.
Today,TysonFoodsisoneoftheworld’slargestprocessorsandmarketersofchicken,beef,
andporkfoodproducts.Asourcompanyhasgrown,sohaveourresponsibilities.Weunderstandouractionsanddecisionshaveanimpact.Werecognizetheglobalcommunityweservefacesunparalleledeconomic,environmental,andsocialissues,suchasincreasedunemploymentrates,resourcescarcity,andextremehungerandpoverty.UnderstandingandaddressingtheseissuesisconsistentwiththeCoreValuesofourcompany.
Webelieveourtriple-bottom-linesuccess,includingsocialprogress,environmentalexcellence,andeconomicgrowth,willcontinueaswestrivetodotherightthingwithrespecttopeople,planet,andprofit.Sustainabilitytoucheseveryaspectofourcompanyandouroperations.
Accordingly,wedefinesustainabilityinawaythatbringsresponsibilityandaccountabilityintoeverybusinessactivityandprocess.OurCoreValuesandfocusonsustainabilityguideouractionsonimportantissuessuchashungerrelief,foodsafety,environmentalprotectionandresourceconservation,animalwell-being,ethicalbusinesspractices,thehealthandsafetyofourTeamMembers,andreturningaprofittoourshareholders.
Wearecommittedtobuildingtheworld’smostextraordinaryfoodcompany,andtoconductingbusinessinamannerthatbuildsfinancialsuccess,respectstheenvironment,andsupportsthoseinneed.
1.0 sustainability at tyson Foods – a Proud Heritage
2009 Tyson Foods Sustainability Report | 3
1.1 tyson Foods’ sustainability Mission stateMentTysonFoods,Inc.,recognizestheimportanceofbeingaresponsiblecorporatecitizen.OurCoreValues–whichdefinewhoweare,whatwedo,andhowwedoit–arethefoundationofcorporatesustainabilityatTyson.Wearecommittedtomakingourcompanysustainable–economically,environmentally,andsocially.Ourprogressinthisendeavorwillbemeasuredbyhowwedevelopandmarketourproducts,howwecarefortheanimals,land,andenvironmententrustedtous,andhowwetreatpeople,includingourTeamMembers,consumers,suppliers,andthecommunitiesinwhichweliveandoperate.
JohnTysonChairman,TysonFoods,Inc.
2009 Tyson Foods Sustainability Report | 4
“It’sourtime”isafamiliarphrasearoundthehallsofTysonFoodsrecently.Weareexcitedaboutourgreatteam,thefutureofourcompany,andtheopportunitieswehavenotonlytofeedtheworld,buttoleavethisworldabetterplacethanwefounditbecauseweadheretosustainablebusinesspractices.It’sourtimebecausewehavethebestpeople,customers,assets,brands,andcorevaluestoguideusonourjourney.
Thebusinesscaseforsustainablepracticesispositive,bottom-lineimpact.Improvingconditionsforourpeople,planet,andprofitmakeseconomicsense.Thatbottomlineargumentisevenmoreimportantinthistougheconomy–especiallyforourTeamMembersandshareholders.
Asoursustainabilitypracticesevolve,weknowwemustfocusonwhat’srightforourbusiness.Wecaredeeplyaboutissuessuchashungerrelief,foodsafety,animalwell-being,thehealthandsafetyofourTeamMembers,environmentalprotection,resourceconservation,andreturningprofitstoourshareholders.Accordingly,wehavesetthefollowingfoursustainabilitygoalstomeasureourprogress:
•Reduceourwaterusageby10percentoveratwo-yearperiodascomparedtoourwaterusagelevelsattheendoffiscalyear2008;
•Produceupto75milliongallonsofbio-fuelayearfromanimalfatwithinthenextfouryears;
•DonatemillionsofpoundsofproteinannuallytoFeedingAmericafoodbanksacrossthecountry;and
•Supportgovernmentpoliciesthatwillnotoverusefood,suchascornforrenewablefuel,andencourageeffortstofindnon-foodsourcesofrenewableenergy.
Wewillkeepoursustainabilityeffortsfocused,measured,andsupportiveofourbusiness.Welookforwardtoworkingwithourcustomers,suppliers,andothersoncommon-groundsustainabilityefforts.Noteveryeffortworkswellforeverycompany,butbycarefullyselectingopportunitiesforcollaboration,wecanshareideasandleverageresourcestowardimpressiveachievements.
Someofourrecentsustainabilitysuccessesinclude:
•DynamicFuels,ajointventurebetweenTysonFoodsandSyntroleumCorporation,brokegroundinOctober2008onaplantthatwillconvertlowgrade,inediblefatsandgreasesintorenewabletransportationfuelsforthecivilianandmilitarymarkets.Thefacility,locatedinGeismer,Louisiana,iscurrentlyscheduledtobeginproductionin2010,withanexpectedtotalcapacityof75milliongallonsperyearofrenewabledieselfuel.
•InJuly2008,webeganpursuingourGlobalFoodSafetyInitiative(GFSI)certification.TheGFSIisapartnershipbetweenfoodsafetyexpertsfromretailer,manufacturer,andfoodservicecompaniesthatfocusesonthecontinualimprovementoffoodsafetymanagementsystems.AsofSeptember2009,67ofTysonFoods’U.S.-basedfacilitieshavebeencertifiedagainsttheBritishRetailConsortiumGlobalStandardforFoodSafety.
•WearecommittedtothesafetyandhealthofourTeamMembers.Duringfiscalyear2009,thecompanyreduceditsTotalRecordableIncidentRateby19.2percentanditsDaysAway,Restricted,andTransferRateby20.7percent.Inaddition,weimprovedourinternalsafetymetricscoreby14.1percentduringfiscalyear2009.
•AnotheraspectofourongoingcommitmenttothehealthandsafetyofourTeamMembersisergonomics.OnNovember24,2009,TysonFoodsandtheUnitedFoodandCommercialWorkersUnioncompletedthe20thyearofaworkplaceergonomicsprogramthatismakingmeatprocessingjobssaferandhashelpedreduceworkerinjuriesandillnessessuchasstrainsandsprains.
IknowTysonFoods’TeamMemberswillprovidetheenergy,ideas,andleadershiptocontinueoursuccessfulsustainabilityefforts.We’reproudoftheworkwehavedoneandtheopportunitiesahead,aswecontinuetolearnandprogressasacompany.
DonnieSmithPresidentandChiefExecutiveOfficerTysonFoods,Inc. 2009 Tyson Foods Sustainability Report | 5
1.2 a Message FroM our President and Ceo
Ourcompany’sCoreValuesaretheframeworkofoursustainabilitypractices,whicharefocusedonpeople,planet,andprofit.Inotherwords,sustainabilityatTysonFoodsisaboutdoingtherightthinginallaspectsofourbusiness.
StrivingeverydaytoprovideasafeworkenvironmentforourTeamMembersandtoserveasstewardsoftheenvironmentareintegralcomponentstohowweplanourdays,doourwork,checkourperformance,andcontinuallyimprove.Weareoftenaskediftherearebenefitstosustainability.Theshortanswerisyes.Thebenefitsrangefrom“feelinggoodaboutourcompany”tothecreationofinnovativeproductsandmeasuredimprovements.
Weareproudtopresentourthirdsustainabilityreport,whichprovidesdetailsaboutourbusinessandhowwegoaboutmakingasustainabledifferenceforthefuture.Aswehaveplannedandacteduponoursustainabilityjourney,keytopicssuchashumansafety,hunger,waterresources,climatechange,renewablefuels,safefoodproduction,animalwelfare,recycling,andthedisposalofdiscardedmaterialscontinuetobeapartofoursuccessandholdourattentiontowardcontinualimprovement.
Therearebenefitsforcompaniesthatchoosetofollowapathtowardsustainability.Hereareafewkeyhighlightsonsafetyandenvironmentalefforts.
Health & Safety
OneofourCoreValuesisstrivingtoprovideasafeworkenvironmentforourTeamMembers.Wedothisbymakingsuresafetyiseveryone’sjob,everyday.OverthepastfouryearsourTotalOccupationalSafetyandHealthAdministration(OSHA)Recordable(TOR)andDayAwayRestrictedandTransfer(DART)injuryandillnessrateshavetrendeddownward.DuringFY2009weexperienceda19.2percentreductioninTORand20.7percentreductioninDART.Unfortunately,whilewehaveachievednumericalimprovements,wealsoexperiencedthework-relateddeathsoftwoTeamMembersduring2008-2009.Theseunfortunateincidentsarefeltbyourentireorganizationandserveasaconstantreminderofwhynothingshouldstandinthewayperformingourworksafely.
Listeningtoourpeopleisoneofthesinglemostimportantaspectsofsafetysuccess.Consistent,repetitivesafetycommunicationandtrainingarealsovital.Monthlysafetyreviewcallsareheldineachofourbusinessunitsandinvolvemultiplelevelsofmanagement,includingaspanofTeamMembersfromplantsupervisorstoexecutivemanagers.OurfacilitieshavesafetycommitteesmadeupofhourlyandmanagerialTeamMemberswhomeetregularlytocommunicate,discussperformance,performroot-causeanalysisofspecificincidents,anddeveloppreventiveactionstodrivecontinualimprovement.
WeworkcollaborativelywithOSHAinresponsetocomplaintsandinspections.DuringFY2009wereceived23complaintsand28inspections.Inaddition,wereceived63citations(26ofwhichwerewithdrawn),sevenofwhichhavebeensettled,and30ofwhichremainundernegotiation.Weendeavortoworkwiththeregulatorycommunityinapositive,openmannerwiththeinterestofourpeople’ssafetyastoppriority.
OnefacetofsustainabilityistheongoinginvestmentinthecareandlongevityofourTeamMembers.Forovertwodecades,Tysonhasemployedergonomicstohelpcreateauser-friendlyworkenvironment.Committingtoworksmarteranddeploymethodstomaketasksmoreefficientandeasiertoaccomplish(ergonomics)hasmanybenefits.
Takeforinstance,thefollowingthreeexamples.First,weaskpeopletodotheirjobsright–thefirsttime,everytime.Whenworkiseasiertoaccomplish,peoplecan“hittheirmark.”Properergonomicdesignofworkhelpspeopledoqualitywork,ratherthanchallengingthem.Second,weaskpeopletoworkhard–agoodday’sworkforagoodday’spay.Whenworkiseasier,peoplecanaccomplishmore.Improvementsinproductivity,insidethecompanyandout,arisefrombettermethodsandtechnologythatmakesworkeasier.This,too,ispartoftheequationofergonomics.Third,wedesire
1.3 a Message FroM our CHieF environMental, HealtH, and saFety oFFiCer
2009 Tyson Foods Sustainability Report | 6
productiveandqualityworknotonlytoday,buttomorrow,nextweek,andnextyear.Makingworkeasierhelpspreventinjuriesandillnesses,suchasstrains/sprainsormusculoskeletaldisorders(MSDs).
Ergonomicsinvolvesfittingworktoourpeople,ratherthanmakingpeopletrytofitworkthatmaynotbeoptimallydesignedorwell-suitedtothem.Tomakethisconceptareality,Tysonusesaformalstructuredapproachtoergonomics,including(1)managementcommitmentofresources;(2)extensivetrainingconductedatmanylevelsintheorganization;(3)jobsaresystematicallyreviewedwithstructuredcheck-listsandavarietyofanalysistools;(4)risksthatmaybeidentifiedaredriventorootcause;and(5)teamsofstakeholders—thesamefolkswhogetthetrainingmentionedabove—worktogethertobrainstorm,design,andimplementsolutions.Thiscanrangefromimprovedtoolsandfixtures,tobettertechniquesormethods,toclearerinstructions—makingworkereasierforthebodyandmind.
Ifsomeoneishurtonthejob,TysonFoodshasaverycapablemedicalmanagementteamthatworkstoidentifyandtreatissuesearly,beforetheybecomeserious.TreatmentismonitoredanddynamicallymanagedtoreturnTeamMemberstoworkasquicklyaspossible(sometimesimmediatelyinanalteredrole).
Somerecentergonomicsuccessstorieshaveincluded:
•TysonFreshMeats(formerlyknownasIBP,inc.)andtheUnitedFoodandCommercialWorkers(UFCW)unioncompletedlastyearthe20thyearofaworkplaceergonomicsprogramthatismakingmeatprocessingjobssafer.Someofthekeyelementsof
theprogramincludeongoingergonomicstrainingforproductionworkers;theinvolvementofhourlyworkersas‘ergonomicmonitors’;work-siteanalysisandtheredesignofworkstationsandequipment;andamedicalmanagementprogramfocusedonearlydetectionandtreatmentofworkplaceinjuriesandillnesses.Thesuccessofthisprogramhasbeenthededicationandfeedbackfromworkerswhoserveassafetyandergonomicsmonitors.Theteamworkbetweenhourlyproductionworkers,plantmanagers,andcorporatemanagementteamshasbeenveryimportanttotheongoingsuccessoftheprogram.
•Technologyforquantifyingknifesharpnesshasreducedinjury(90percentreductioninfirstinjuryreportsatourTemperanceville,Virginia,facility)andprovidedobjectivefeedbackthatallowsustotakecontrolofoursharpeningprocess(knivesnowmorethantwiceassharpatObionCounty).
•Ergonomicsdesigncriteriaformanualdebonelinesinpoultryprocessingplantshaveresultedininjuryandillnessratesthatare20-percentlowerthanpreviousgenerationequipmentinstallations.
•Enhancedtrailerspecificationsandconcentratedmaterialhandlingtrainingfordrivershasresultedina$300,000savingsinworkerscompensationcostsfortheTexasRouteSalesDeliveryorganization(zeroinjuriestodatethroughthe11thmonthofthefiscalyear.).
•Ergonomics in the Poultry Industry: A Review of 25 Years of Industry EffortsisarecentpoultryindustrystudyconductedbytheJointIndustrySafetyandHealthCouncil
(madeupofmembersoftheU.S.PoultryandEggAssociation,NationalChickenCouncil,andNationalTurkeyFederation).Thestudyreportstheindustry’seffortsinthepreventionandearlytreatmentofmusculoskeletaldisorders(MSDs).ItalsodiscusseshowOSHAhasfocusedattentiononthepoultryindustryandthepositiveresultsachievedfromOSHAandtheindustryworkingtogether.MSDsinthepoultryindustryhavedeclined75percentduringthelast25years.
Environmental, Health and Safety Management System (EHSMS)Attheendof2008,wefinishedimplementingEnvironmental,HealthandSafetyManagementSystems(EHSMS)atallofouroperatingfacilitiesintheU.S.andMexico.ThissystemmeetstherequirementsoftheInternationalOrganizationforStandardization(ISO)continualimprovementprocessforenvironmentalmanagementknownasISO14001.WecomplementedthisbyincorporatingtheprinciplesoftheOccupationalHealthandSafetyAssessmentstandardknownasOHSAS18001tosupportourintegratedmanagementapproachfortheenvironmental,health,andsafetydisciplines.Managementsystemauditsarescheduledtobeginduring2010tomonitorandcontinuallyimproveperformance.
Environmental Stewardship Whilewediscusssolutionstoglobalconcernslikewaterconservationandclimatechange,wehavechosentoconcentrateoureffortsintheseareasonhowweconductbusiness.Forexample,ourannualwaterusagefortheproductionoffoodproductsinFY2009was25.5billiongallons.Attheendof2010,wewillevaluatewaterusageandconservationprogress
2009 Tyson Foods Sustainability Report | 7
againstthe10-percentreductiongoalsetin2008.Basedupontheresults,anewgoalwillbedevelopedconsideringanumberoffactors,includingfindingabalancefortheexpectationsofregulatoryauthoritiesforfoodsafetyandenvironmentalprotection.
Ourwaterconservationefforts,alongwithseveralfacilityclosures,ledtoawaterusagereductionof7.6percentbetweenOctober2004andSeptember2009.Thisisequivalenttoa13.9percentreductioninthenumberofgallonsusedperpoundoffinishedproduct.
Weoperate34fulltreatmentand42pretreatmentwastewatersystemsandmonitorourcomplianceagainstpermitrequirements.Itisourgoaltopreventpotentialpermitexceedancesandnoticesofviolationthroughtheuseofpredictiveanalyticalindicatorstomonitorcomplianceandidentifypositiveornegativetrends.Whentrendsindicatethepotentialfornon-conformance,remedialactionsaretakentoreturntonormaloperation.Wemeasuredanincreaseinpermitexceedancesbetweenfiscalyears2008and2009followingthreeyearsofadecliningtrend.Appropriatecorrectiveactionsweretakentodeterminetherootcauses,identifypreventiveactions,andreturntofullcompliance.WealsomeasuredanincreaseinNoticesofViolation(NOVs)duringthissameperiodandtooksimilaractionstomitigatethecausalfactorsandfindpreventiveactionsforsuccessfulfutureoperation.
Climate Change
Ourclimatechangeeffortshaveincluded:(1)becomingapartnerintheU.S.EnvironmentalProtectionAgency(USEPA)Climate LeadersTMprogramin2004(Theprogramisavoluntarypartnershipchallengingbusinessestoreduce
theirGreenhouseGas(GHG)emissions);(2)completionofacomprehensivecarbonfootprintinventoryfordomesticoperations;(3)publicdisclosureofourcarbonfootprintsinceourbaselineyearof2004;(4)operationofcoveredanaerobicwastewaterlagoonsatsixofourfoodprocessingfacilities,fourofwhichhavebiogassystemsusingthemethanegeneratedasboilerfuel;(5)creatingandtradingcarbonoff-setcreditsinthevoluntarycarbonmarket;(6)preparationforcompliancewithEPA’smandatoryGHGreportingrule,withthefirstreportduein2011;and(7)becominganEPASmartWayPartnerasbothashipperandcarrier.
During2010,wehavebegunamoredeliberateeffortinthemeasurementofenergyusageandsettinggoalsforourbusinessunitstoimprovetheirenergyconsumptionbudgets.Ourinitialfocushasbeenlow-costandno-costimprovements,andcapturingenergyfootprintdataforuseinlongertermevaluationsofenergyequipmentandfuturecapitalexpenditurepossibilitiestolowerenergycostandconsumption.
Thecompany’sGHGfootprintduringcalendaryear2004(definedasourbaselineyear)was5.35millionmetrictons.Thisbaselineinventoryincludeddatarelatedtofacilityfuelandelectricityusage,transportationfuels,refrigerationusage,andanaerobicbiogasproduction.Basedonthisinventory,thecompanyisconsideringsettingGHGemission-reductiongoalsduringfiscalyear2010.Inlightofthecurrentuncertaintysurroundingthelegislativeandregulatoryinitiativesdealingwithclimatechange,however,TysonFoodsmaychoosetodelayitsdecisionongoalsettinginordertobetterunderstandthefuturelegallandscapeandroleofcarbonintheeconomy.Thecompanyiscommittedto
makingappropriatereductionsandinvestinginenergy-efficientprojectstoimprovebottom-lineperformance.
SustainabilityistrulyabouteverythingwedoatTysonFoods.Routineinteractionwithourcustomers,neighbors,TeamMembers,friends,andotherstakeholdersenablesustohearandconsidermanypointsofviewandallowscollaborationoncommon-groundsustainabilityeffortstomakeourbusinessstronger.
Kevin IgliKevinIgliChiefEnvironmental,Health,andSafetyOfficerTysonFoods,Inc.
2009 Tyson Foods Sustainability Report | 8
TysonFoods’visionistobetheworld’sfirstchoiceforproteinsolutions,whilemaximizingshareholdervalue.OurCoreValuesarefundamentaltoourcompany.Theyshapeanddirectourstrategyandinspireusdaily.Theyareintegraltothewaywedobusiness.OurCoreValuesguideourrelationshipswithourTeamMembers,customersandconsumers,suppliers,andindependentproducers.Ourgoals,programs,andmetricsarederivedfromandsupportourCoreValues.
Tyson Foods’ Core Values Weareacompanyofpeopleengagedintheproductionoffood,seekingtopursuetruthandintegrity,andcommittedtocreatingvalueforourshareholders,ourcustomers,andourpeopleintheprocess.
Who we are:
•Westrivetobeacompanyofdiversepeopleworkingtogethertoproducefood.
•Westrivetobehonorablepeople.
•Westrivetobeafaith-friendlycompany.
What we do:
•Wefeedourfamilies,thenation,andtheworldwithtrustedfoodproducts.
•Weserveasstewardsoftheanimals,land,andenvironmententrustedtous.
•WestrivetoprovideasafeworkenvironmentforourTeamMembers.
How we do it:
•Westrivetoearnconsistentandsatisfactoryprofitsforourshareholdersandtoinvestinourpeople,products,andprocesses.
•Westrivetooperatewithintegrityandtrustinallwedo.
•WestrivetohonorGodandberespectfulofeachother,ourcustomers,andotherstake-holders.
1.4 tHe Foundation oF our CoMPany - our Core values
2009 Tyson Foods Sustainability Report | 9
TysonFoodsoriginatedin1935whenfounderJohnW.TysonstartedhaulingchickensfromSpringdaletomarketsinKansasCityandSt.Louis.Helaterexpandedhisbusinessbyproducingandsellingbabychicksandfeedtofarmers,andinOctober1947,heestablishedTysonFeedandHatchery,Inc.Thecompanyenteredthechickenprocessingbusinessin1958afterbuildingitsfirstplantinSpringdale,Arkansas.
ThecompanychangeditsnametoTyson’sFoods,Inc.,in1963,thesameyearithaditsfirstpublicofferingofcommonstockandacquiredGarrettPoultry,apoultryprocessingplant,feedmill,andhatcheryinRogers,Arkansas.
DonTysonassumedtheleadershipofthecompanyin1967,afterhisfatherdiedinanautomobile-trainaccident.UnderDon’sleadership,thecompany’spoultrybusinessgrewrapidlythroughaseriesofacquisitions,includingthepurchaseofsuchcompaniesasHollyFarmsandHudsonFoods.Thesestrategicacquisitionsmadethecompany,whichwasrenamedTysonFoods,Inc.,in1972,thenation’sleadingpoultrycompany.
Don’sson,JohnH.Tyson,becamechairmanoftheboardin1998andchiefexecutiveofficerin2000.Underhisleadership,thecompanyinitiatedanothermajoracquisitionin2001,whenTysonFoodsboughtIBP,inc.,theworld’slargestsupplierofbeefandpork.
In2007,TysonFoodsenteredintoajointventurewithCactusFeeders,Inc.,andCresudS.A.C.I.F.yAtocreatethefirstverticallyintegratedbeefoperationinArgentinaandannouncedthecreationofDynamicFuelsLLC,a50-50jointventurewithSyntroleumCorporationtoproducesyntheticfuelsmadefromby-productfats,greases,andoilstotargettherenewabledieselmarkets.In2008,TysonFoodsenteredthepoultrybusinessinSouthAmericabyacquiringthreechickencompaniesinsouthernBrazil.
Today,TysonFoods[NYSE:TSN]withheadquartersinSpringdale,Arkansas,isoneoftheworld’slargestprocessorsandmarketersofchicken,beef,andpork;thesecond-largest
2.0 tyson Foods at a glanCe
2009 Tyson Foods Sustainability Report | 10
foodproductioncompanyintheFortune500;andamemberoftheS&P500.Thecompanyproducesawidevarietyofprotein-basedandpreparedfoodproductsandistherecognizedmarketleaderintheretailandfoodservicemarketsitserves.TysonprovidesproductsandservicestocustomersthroughouttheUnitedStatesandmorethan90countries.Thecompanyhasapproximately117,000TeamMembersemployedatmorethan400facilitiesandofficesintheUnitedStatesandaroundtheworld.
Infiscalyear2009,TysonFoodsrepresented20percentofU.S.chickenproduction,22percentofU.S.beefproduction,and18percentofU.S.porkproduction.Infiscal2009,thecompany’saverageweeklyproductionincluded41.4millionchickens,approximately139,400cattle,and393,300hogs.Thecompanygeneratedtotalsalesofapproximately$26.7billioninfiscal2009.Thisincludes$3.4billionininternationalsales.
ThroughitsCoreValues,CodeofConduct,andTeamMemberBillofRights,TysonFoodsstrivestooperatewithintegrityandtrustandiscommittedtocreatingvalueforitsshareholders,customers,andTeamMembers.Thecompanyalsostrivestobefaith-friendly,provideasafeworkenvironment,andserveasstewardsoftheanimals,land,andenvironmententrustedtoit.
TysonFoods’visionis“tobetheworld’sfirstchoiceforproteinsolutionswhilemaximizingshareholdervalue,livingourCoreValues,andfosteringafunplacetowork.”Thecompany’smissionistoproduceandmarkettrusted,qualityfoodproductsthatfittoday’schanginglifestylesandtoattract,reward,andretainthebestpeopleinthefoodindustry.
Want To Know More?
•YoucanlearnmoreaboutTysonFoods,itshistory,anditsoperationsintheTysonFactBook,whichisavailablebyclickingonhttp://ir.tyson.com.
•LearnmoreaboutourmajorshareholdersinourproxystatementavailablethroughourInvestorRelationsWebsiteathttp://ir.tyson.com.
•IfyouareinterestedinTysonFoods’financialperformance,weinviteyoutoreviewour2009AnnualReportonForm10-KavailablethroughourInvestorRelationsWebsiteathttp://ir.tyson.com.
2009 Tyson Foods Sustainability Report | 11
Consumer Products
TheTyson®brandisoneofthemostrecognizedbrandsintheUnitedStatesretailchannel,includingallmajorgrocerychains,wholesaleclubstores,supercenters,regionalchains,dollarstores,conveniencestores,anddrugstorechains.Wesellhundredsofdifferentproductsinthischannelincluding,butnotlimitedto,case-readyfreshchicken,beef,andpork;individuallyquickfrozenchicken;chickennuggets,stripsandpatties;bacon;anddelimeats.InadditiontotheTysonbrand,wehaveseveralotherstrongbrandsforbaconanddelimeatsbusinessesincludingWright®Brand,Corn King®,Russer®,andWilson™brands.Wealsomanufactureproductsforourleadingcustomers’in-houseandprivate-labelbrands.
Foodservice
TysonFoodsistheleadingproteinprovidertoallmajornationalrestaurantchains,includingquickservice,casual,mid-scale,andfinedining.Wealsosupplytheleadingbroadlinedistributorsandon-sitefoodservicevenues,includinghospitals,schoolcafeterias,andmilitarycommissaries.Inadditiontobeingaprimarysupplierforfoodservicechicken,wearetheleadingsupplierofpizzacrusts,pepperoni,sausage,andbeeftoppingstonationalpizzachainsandretailfrozenpizzamanufacturers.Wearealsoaleaderinsoups,sauces,andsidedishes,andwearethesecondlargesttortillamanufacturerintheU.S.
International
Inadditiontocommodityexports,wehavebrandedinternationalproductsdevelopedforthetastesandlifestylesofthelocalconsumers.Thecompanymadeseveralacquisitionsandjointventuresinkeylocationsthatoffertherightclimateforpoultryproduction,alargepopulation,amplelaborforce,accesstocornandsoybeanmeal,andacost-of-productionadvantage.Thesemarketsalsofeatureastrongemergingmiddleclass.Astheirincomesrise,oneofthefirstlifestylechangespeoplemakeistoaddproteintotheirdiets.
2.1 our CustoMers and ConsuMersWearededicatedtodevelopingabest-in-class,value-addedproductportfoliothatmeetstheneedsofourcustomersandconsumers.Wearewellpositionedtoprovidetheproductspeoplewant,fromthemostbasiccutsofmeattofully-preparedmeals.Moreover,wearetheonlycompanysellingchicken,beef,andporkthroughallmajordistributionchannelsincludingconsumerproducts,foodservice,andinternational.
2009 Tyson Foods Sustainability Report | 12
Chicken
TysonFoods’poultrybusinessisverticallyintegrated.Verticalintegrationallowsthecompanytooverseeeveryaspectofproductionandproductqualityfromtheeggtothefinishedproductonaconsumer’splate.Inshort,therearesevenstagesinvolvedingettingchickentotheconsumer,includingbreederflock,pulletfarm,breederhouse,hatchery,broilerfarm,processingandfurtherprocessing,anddistribution.
Theprocessbeginswiththegrandparentbreederflocks.Thebreederflocksareraisedtomaturityingrandparentgrowingandlayingfarmswherefertileeggsareproduced.Pulletshatchfromthefertileeggsandarethensenttobreederhouses.Thepulletsproducefertileeggsthataresenttohatcheries.
Shortlyaftertheeggshatch,thechicksaresenttobroilerfarms,nearlyallofwhichareownedandoperatedbyindependentproducers.TysonFoodscontractswithmorethan6,000independentproducers,whocareforandraisethechicksaccordingtocompanystandards.Wealsoownasmallnumberofcompanychickenfarms.Whenthebroilersreachthedesiredprocessingweight,theyarecaughtandtakentooneofthecompany’s63chickenprocessingplants.
Attheplant,thechickensareprocessedtomeetthespecificrequirementsofthecustomer,whichcanrangefromabasicrawcommoditytoafullycooked,value-addedproduct.Finishedchickenproductsaresenttodistributioncentersandthentransportedtocustomerswhosellthechickentoconsumers.
Asaverticallyintegratedpoultrycompany,TysonFoodsalsooperatesfeedmillstoproducenutritionallyformulatedfeedsforitsbreedersandbroilers.Cornandsoybeanmealremainmajorproductioncostsinthepoultryindustry,representingroughly45percentofourcostofgrowingalivechickeninfiscalyear2009.
Withanaverageweeklyproductionof41.4millionchickensduringfiscalyear2009,TysonFoodsrepresentsapproximately20percentofchickenproductionintheUnitedStates.Domesticandinternationalchickensalestotaledapproximately$9.7billionand$1.6billionrespectivelyinfiscalyear2009.
2.2 a diversiFied business ModelTysonFoods’businessmodelisdiversifiedacrossthethreeleadingproteins(chicken,beef,andpork),majordistributionchannels,producttypes,andgeographiesofproduction.Thisdiversificationhelpsmitigatechangesinmarketfundamentalsaffectingsegmentperformanceineachprotein.Weoperatefourmainbusinesssegments,includingchicken,beef,pork,andpreparedfoods.
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Beef
Unlikeourverticallyintegratedpoultrybusiness,TysonFoodsbuyscattleontheopenmarket.TheUnitedStates’cattleindustryiscomposedofmorethanonemillionindividualfarmsandranches.Eachyear,cattleproducersmarketapproximately35millioncattlethatareeventuallyharvestedforfood.Therearefourprimarystagesincattleandbeefproductionincludingcow-calfoperation,stockeroperation,feedlotoperation,andpacker-processor.Theprocessbeginswiththecow-calfoperatorandfinisheswithapacker-processorsuchasTysonFoods.
TysonFoodshasenteredintovariousrisk-sharingandprocurementarrangementswithproducersthathelpsecureasupplyoflivestockfordailystart-upoperationsatthefacilities.Thecompanyacquirescattlethroughdirectlynegotiatedpurchaseswithfeedlotproducersthroughavarietyofmethods.Themethodsincludetheopenspotmarket;formulapricing(areportedpriceplussomeamount);andfixedpricetiedtoafuturesmarket.Thecompany’sbuyerspurchasecattleonadailybasis,generallyafewdaysbeforetheanimalsarerequiredforprocessing.LiveanimalsaregenerallyheldinholdingpensatoneofTysonFoods’12beefprocessingfacilitiesforonlyafewhours.
Withamarketweightof1,250poundsandayieldof62.2percent,thetypicalsteerwillproducea777-poundcarcass.Thecarcasswillyieldapproximately620poundsofmeatandtrim;160poundsoffat,bone,andloss;and30poundsofvarietymeats.
TysonFoods’beefproductionduringfiscalyear2009averaged139,400headperweek.Thecompanyrepresentsapproximately22percentoftheUnitedStates’beefproduction.Thecompany’sdomesticandinternationalbeefsalestotaledapproximately$10.8billionand$1.1billionrespectivelyinfiscalyear2009.
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Pork
Therearefourprimarystagesinhogandporkproduction,includingsow-farrowingbarns,nurseries,finishingfarms,andpacker-processor.Thegestationperiodforhogsisapproximately114days.Farrowingsrangefromsixto13pigsperlitter,withtheaveragebeingabout10.Thenumberofpigsweanedaverages8.7pigsperlitter.Pigsaregenerallyweanedatthreetofourweekswhentheyweigh10to15pounds.Atthistime,theyaremovedtoeitheranursery,agrower,ordirectlytoafinishingbuildingmodifiedtomeettheneedsofyoungpigs.
Whenpigsreachapproximately270pounds,producerssellthemoneitheralive-weightorcarcass-weightbasistolivestockexchanges,producer-ownedmarketingnetworks,ordirectlytopackerssuchasTysonFoods.Oncethehogsareslaughtered,thefurther-processedcarcassesaresoldasboxedporktopurveyorswhofabricatetheboxedporkintocutssoldtoconsumersatretailandinfoodserviceoperations.TysonFoods,however,addsvaluetoporkbyproducingbranded,case-readyporkaswellasfullycookedporkitemsrequiringlesslaboronthepartofthecustomer.
TysonFoodsacquireshogsthroughdirectly negotiatedpurchaseswithproducersusingavarietyofmethods.Thefourprimarymethodsareformula(areportedpriceplussomeamount),thespotmarket,fixedpricetiedtofeed,andfixedpricetiedtoafuturesmarket.Hogsarepurchasedonadailybasis,generallyafewdaysbeforetheanimalsarerequiredfor processing. With a market weight of270 poundsandayieldof 75.5 percent,the typical hog will produce a 200-poundcarcass.Thecarcasswillyield about151poundsofporkand49poundsofotherproducts.
Duringfiscalyear2009,withanaverageweeklyproductionof393,300head,TysonFoodsrepresentedapproximately18percentofporkproductionintheUnitedStates.Fiscalyear2009porksalestotaledapproximately$3.4billiondomesticallyand$671millioninternationally.
Additionally,thePorkGroup,Inc.,awhollyownedsubsidiaryofTysonFoods,producesfinishedhogs,feederpigs,andweanedpigsforsaletoporkprocessorsandfinishersthroughoutthecountry.ThePorkGrouphasaninventoryofmorethan50,000sowsandhasatotalherdinventoryofmorethan230,000hogs.TysonFoods’equityownershipoflivehogoperationsrepresentslessthan1percentofthecompany’stotalporkproduction.
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Prepared Foods
TysonFoods’productsarenotlimitedtomain-courseprotein.Asanexample,TysonFoodsisthelargestsupplierofpepperoniandpizzatoppingstothefoodserviceindustry.Inaddition,wearethesecondlargestmanufacturerofflourandcorntortillachipsintheUnitedStates.QuickserviceMexicanrestaurantchainsaretheprimaryoutletsforourtortillaproducts.
Inadditiontohigh-endculinaryproductssuchascrepes,blintzes,andstuffedchickenbreasts,wearetheleadingsupplierofbaconandhamstothefoodserviceindustry.Wealsoprovidecustomsoupsforcasualdiningchains,whichfreestheirskilledlabortoworkonothermenuitems.
Wemarketourpreparedfoodsproductstoretaildelis,foodservicedistributors,restaurantoperators,andon-sitefoodserviceestablishments,suchasschools,universities,corporatecafeterias,hotelchains,healthcarefacilities,andthemilitary.
Thecompany’sculinaryandcustomerdevelopmentteamsworkwithcustomersintheTysonDiscoveryCentertoproduceexcitingandnewpreparedfoodstobuildincrementalsales.Domesticandinternationalpreparedfoodsalestotaledapproximately$2.8billionand$65millionrespectivelyduringfiscalyear2009.
TysonFoodsalsoconsistsofanumberofcorporatefunctions,suchasQualityAssuranceandFoodSafety,Sales,Finance,Accounting,InternalAudit,HumanResources,ExternalRelations,Legal,InformationSystems,Marketing,Purchasing,ResearchandDevelopment,Environmental,HealthandSafety,andInvestorRelations.Intotal,thecompanyemploysapproximately117,000TeamMembersintheUnitedStatesandaroundtheworldwith:
•2009fiscalyearsalestotalingapproximately$26.7billion;
•A2009debttocapitalizationratioof45percent;
•Anetdebttocapitalizationratioof35percentforfiscalyear2009;and
•Assetstotalingapproximately$10.6billioninfiscalyear2009.
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TysonFoodsisaninternationalfoodcompanywithmorethan400productionanddistributionfacilitiesandsalesoffices.WithintheUnitedStates,TysonFoodshasoperationsandofficesinAlabama,Arizona,Arkansas,California,Georgia,Hawaii,Illinois,Indiana,Iowa,Kansas,Kentucky,Maryland,Mississippi,Missouri,Nebraska,NewJersey,NewMexico,NewYork,NorthCarolina,Oklahoma,Pennsylvania,SouthCarolina,SouthDakota,Tennessee,Texas,Virginia,Washington,andWisconsin.
Moreover,eitherdirectlyorthroughitssubsidiaries,TysonFoodshasfacilitiesin,orparticipatesin,jointventureoperationslocatedinArgentina,Brazil,Canada,China,theDominicanRepublic,HongKong,India,Ireland,Italy,Japan,Mexico,theNetherlands,Peru,thePhilippines,Russia,SouthKorea,Spain,SriLanka,Taiwan,theUnitedArabEmirates,theUnitedKingdom,andVenezuela.
Aspartofongoingeffortstoimproveoperationalefficiency,TysonFoodsannouncedthe:
•RestructuringofitsEmporia,Kansas,beefprocessingfacilityinJanuary2008;
•ClosureofitsWilkesboro,NorthCarolina,cookedproductsplantinFebruary2008;
•ClosureofitsYork,Nebraska,PreparedFoodsfacilityinApril2008;
•AcquisitionofCentralIndustriespoultrybyproductsplantinDecember2008;
•ClosureofitsPoncaCity,Oklahoma,processedmeatsplantinMarch2009;
•SaleofitsLakesidebeefoperationinBrooks,Alberta,Canada,toXLFoods,Inc.,inMarch2009;and
•ReopeningandrenovatingofitsIndependence,Iowa,plantinOctober2009.
2.3 our oPerations
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TysonFoodsismorethanjustagreatcompanytoworkfor.AtTysonFoods,“we strive to be a company of diverse people working together to produce food.”Additionally,westrivetobe“honorable people”andtobea“faith-friendly company.”
Ouremployees,whomwecallTeamMembers,areourmostvaluedresource.Theyenjoymanyrights,benefits,andresponsibilitiesatTysonFoods.Thisincludesbutisnotlimitedto:
•Asafeworkplace,
•Accesstoexistingstateandfederalbenefits,
•Freedomfromdiscriminationandretaliation,
•Compensationforworkperformed,and
•Therighttojointogetherforcollectivebargainingpurposes.
Theserights,benefits,andresponsibilitiesaredescribedindetailinourTeamMemberBillofRights,andcorrespondwith,orareinadditionto,allotherrightsprovidedbystateorfederallaw.CLICKHEREtoviewourTeamMemberBillofRights.
Werecognizeourcontinuedsuccessasanorganizationdependsontheknowledge,skills,andtalentsofourTeamMembers.Wehaveatraditionofbuildingleadershipfromwithin.Educationandadvancementopportunitiesareavailablefromentry-levelpositionstoseniormanagement,andweactivelyfosteranenvironmentwhereeveryonehasaccesstotheseopportunities.
Additionally,inclusionandvaluingdiversityarecornerstonesthathavesupportedthegrowthofourbusinessthroughoutitshistory.Ittakesthethoughts,backgrounds,andtalentsofour117,000TeamMemberstomakeourcompanysuccessful.Webelievethiscommitmentcontributestoacompetitiveadvantagethroughincreasedinnovation,improvedcustomerandinvestorconfidence,andattractionandretentionofoutstandingTeamMembers.
3.0 PeoPle
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AtTysonFoods,webelieveethicalbusinessisgoodbusiness.EthicalbusinessiseverydaybusinessatTysonFoods.Afterall,thereisnorightwaytodothewrongthing.Westrivetoconductourbusinessinanethical,honestmannerandinfullcompliancewithallapplicablelawsandregulations.Webelieveintegrityisafundamentalelementinourrelationshipswithourmanystakeholders.Ourcommitmenttooperatingwithrespect,trust,accountability,andhonorismodeleddailybyourTeamMembers.
Core Values
TysonFoods’visionistobetheworld’sfirstchoiceforproteinsolutions,whilemaximizingshareholdervalue.OurCoreValuesarefundamentaltoourcompany.Theyshapeanddirectourstrategyandinspireusdaily.Theyareintegraltothewaywedobusiness.OurCoreValuesguideourrelationshipswithourTeamMembers,customersandconsumers,suppliers,andindependentproducers.Ourgoals,programs,andmetricsarederivedfromandsupportourCoreValues.
Code of Conduct
BasedonthefoundationofourCoreValues,TysonFoods’hasaCodeofConductthatappliestotheBoardofDirectors,allTeamMembers,businessdivisions,andsubsidiariesofTysonFoods.TheCodeofConductisawrittenguidelinethathelpsusmakegoodbusinessdecisions;it’sourguideto“DoingWhat’sRight.”
TheCodeofConductprovidesdirectiononhowwearetoconductourselveswithrespect
tokeybusinessrequirementssuchasfoodsafety,animalwell-being,regulatorycompliance,environmentalmanagement,conflictsofinterest,andinternationalbusinesspractices.InApril2008,wepublishedourrevisedInternationalCodeofConduct.Thisrevisiontothe2005versionincludedframingtheInternationalCodearoundourCoreValuesandmoreclearlyreflectingthekeyprinciplesweembracewithoutregard
togeographicallocation.
TysonFoods’GovernanceCommittee,chairedbyanindependentBoardmember,administersthecompany’sCodeofConduct.Thiscommitteereviewsandassessesthecompany’sCodeofConductandrecommendsproposedchangestotheBoardforapproval.TheGovernanceCommitteealsomeetswiththecompany’sEthicsandComplianceOfficer,andas
appropriate,reviewsandrespondstoconductorethicsissuesraisedbythisofficer.Periodically,thiscommitteereviewstheadequacyandimplementationofthecompany’sethicsandcomplianceprograms,andmakesrecommendsforanynecessarychanges.ToreviewTysonFoods’GovernanceCommitteeCharter,CLICKHERE.
It’sunderstoodthewrittenCodeofConductcannotprovideguidanceoneverysituationTeamMembersmayfaceduringtheirbusinessactivities.WhentheCodeofConductisnotenough,TeamMembersareencouragedto‘AskTysonFirst’byusingtheresourceslistedwithintheCodeofConduct.
Ethics Training
AllTysonFoodsTeamMembers,includingtheBoardofDirectors,attendapproximatelyonehourofEthicsandCodeofConducttrainingannually.ThistrainingprovidesinformationonvariousethicalscenariostoprovideTeamMembers“reallife”applicability.TeamMembersaretaughttomakegooddecisionswithintheframeworkof“DoingWhat’sRight.”Theyareinstructedtoaskthemselvesthefollowingquestionswhentheyareuncertainaboutthepropercourseofactioninadifficultsituation:
•DoesitcomplywithTysonFoods’CoreValues?
•Isittherightthingtodo?
•WereotherstreatedthewayIwanttobetreated?
•WouldTysonFoodsorIbeembarrassedifthisactionwerereportedinthenewspaper?
•Isitlegal?
3.1 etHiCs
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Responding to Ethical Concerns
AtTysonFoods,wearecommittedtoprovidingvariousavenuesinwhichTeamMembersandotherstakeholderscanconfidentiallyandanonymouslyreportanysuspectedviolationsofthelaw,applicableregulations,companypolicies,ortheprovisionsoftheCodeofConduct.WeoffertheTysonHelpLineandtheTysonWebLine.TheseoptionsareprovidedtoupholdourcommitmenttoourCoreValuesandprotecttherightsof
TeamMembersthroughoutourorganization,withoutfearofretaliation.
•TheTysonHelpLineisaccessibletocallersthroughoutNorthandSouthAmericaandChina24-hoursaday,andoffersassistanceinmorethan150languages.
•TheTysonWebLineisanInternet-based reportingmechanismavailableinfive languagesandaccessibleworldwide.
Additionally,TysonFoods’HumanResourcesDepartmentofferslocal“opendoor”avenuestohelpTeamMembersresolveareasofdisputeandtoreportunethicalactivity.ShouldTeamMembershaveanyissues,weencouragethemto“TellTysonFirst”bycontactingtheirsupervisorsorHumanResourcesDepartment.Moreover,ifanyTeamMemberfeelsthatheorsheisbeingtreatedunfairlywithrespecttoanymatterorifheorshewishestoremainanonymous,theTysonHelpLineandTysonWebLinearealwaysavailable.
Wereviewallreportsandconcernsreceivedandinvestigateandrespondasappropriate.In2007,weimplementedanewcasemanagementtool.ThistoolallowsEthicsandCompliancepersonneltomoreaccuratelyaccessandanalyzereportedallegationsforthepurposesofinvestigation,follow-up,andenhancingreportingcapabilitiestobothseniormanagementandtheappropriateBoardCommittees.
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Our Team Members
TysonFoodsemploysmorethan117,000peopleworldwide,with100,000TeamMembersworkinginourU.S.-basedoperationsand17,000atourInternationaloperations.Approximately99percentofourU.S.-basedTeamMembersserveinfull-timepositions.
WearecommittedtoprovidingagoodworkingenvironmentandtoretainingourTeamMembersthroughcompetitivewages,fairtreatment,training,benefits,andsafeworkingconditions.Thecompany’smanagement,managementsupport,andhourlyTeamMemberturnoverratewasmorethan30percentlowerinfiscalyear2009ascomparedtofiscalyear2008.Attheendoffiscalyear2009,over50percentofourU.S.-basedTeamMembershadfiveormoreyearsofservicewithTysonFoods,andwithin this group,approximately20percenthad20yearsormoreofservice.ThisimprovementinturnoverandthemanyyearsofTeamMembertenuredemonstratewearemakinggreatprogressinretainingatalentedworkforce.
Employment Practices
TysonFoods’employmentpracticesunderscoreourcommitmenttotreatourTeamMemberswithdignity.Wehavepoliciesthatensurepositiveemploymentpracticesareimplementedwhereverweoperate.Additionally,wecomplywithallapplicableemploymentandlaborlawsinthecountrieswherewedobusiness.We
provideanonymouschannelsthatcanbeusedtoreportpolicyviolations,andwefullyinvestigateallissuesraised.
Hiring the Best
Wemaintainarobustrecruitingprocess.Thisprocessnotonlyensuresourcompliancewithfederal,state,andlocalhiringpractices,italsoensureswearehiringTeamMemberswithskillsandexperiencethatalignwithboththecurrentandfutureneedsofourcompany.OurProfessionalRecruitmentDepartmentcollaborateswithhiringmanagerstodevelopproactivetalentmanagementplansforeachbusinessunit.Thisprovidesuswithacomprehensivetalentacquisitionplanandrecruitingstrategyforeachavailableposition.
Ifastudentorrecentcollegegraduateislookingforanexcitinginternshiporajumping-inpointforhisorhercareer,ourCollegeRelationsDepartmentcanhelphimorherfindafuture.ThemissionofourCollegeRelationsDepartmentistoforecasttheentry-levelneedsoftheorganizationandtoleverageourcollegerecruitingstrategiestosupportlocalareauniversities.Thefulfillmentofthismissioncreatesaqualifiedanddiversecandidatepoolthatwilldeliverentry-levelhirescompanywide.
Wealsounderstandtheimportanceofattractingandhiringtalentlocaltoouroperations.Weemploy117,000TeamMembersatmorethan400facilitiesandofficesintheUnitedStates
andaroundtheworld.ManyofourfacilitiesandofficesmaintainlocalhiringpracticesdesignedtoensuretheirTeamMemberandmanagementpositionsarepopulatedwithlocalresidents.Thispracticenotonlybenefitstheeconomyandcommunitieslocaltoourfacilities,butitalsoensuresourworkforceisrepresentativeofourcustomersandconsumers.
Employment Eligibility
WearecommittedtoensuringallofourhiringlocationsconsistentlyimplementandfollowourEmploymentEligibilityPolicy.ThispolicysetsforthguidelinesforallTysonFoods’locationsthatensurecompliancewiththeImmigrationReformandControlActof1986(IRCA)andFormI-9regulations.Wewillnottolerateanypersonknowinglyhiringorallowinganyonetocontinueworkingifheorsheisnotauthorizedforemployment.Accordingly,wehaveestablishedproceduresthatincludetraining,certification,recordkeeping,andthird-partyverificationtoensurecompliancewithallfederalandstatelawsregardingtheverificationofemploymentauthorization.
WealsovoluntarilyparticipateintheU.S.DepartmentofHomelandSecurity’sE-VerifyEmploymentEligibilityVerificationProgramandhavedonesosince1998.TheDepartmentofHomelandSecurityandtheSocialSecurityAdministration
3.2 reCogniZing an eXCePtional WorKForCeWearecommittedtoattracting,developing,andretainingagroupoftalentedTeamMembersandtocreatingaworkplacethatallowseachTeamMembertocontributetothecollectivesuccessofourcompany.Ourprogramsandinitiativesrelatedtoemploymentpractices,compensationandbenefits,talentmanagement,diversityandinclusion,andTeamMemberrelationsareimportanttofulfillingthiscommitment,especiallyintoday’schallengingeconomicclimate.TobeaninspirationtoourTeamMembersabouttheirwork,theircontributions,andtheircompanyisourpledge.
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jointlyoperatethisprogram.Ourparticipationinthisprogramallowsustochecktheemploymenteligibilityofnewhiresonline.Throughthisprogram,weareabletoaccessandcompareinformationfromaTeamMember’sFormI-9withmorethan444millionrecordsintheSocialSecurityAdministrationdatabaseandmorethan60millionrecordsintheDepartmentofHomelandSecuritydatabases.WebelieveouruseofthisprogramhasbeeninstrumentalindeterminingtheemploymenteligibilityofourTeamMembers.
Equal Employment Opportunities
Wehaveacontinuingpolicytoensurefairandequalemploymentopportunitiesareextendedtoallpersonswithoutregardtorace,religion,color,sex(includingpregnancy),age,sexualorientation,nationalorigin,disability,andveteran’sstatusoranyotherprotectedstatusunderfederal,state,orlocallaw.Thispolicyappliestorecruitment,selection,placement,assignment,training,promotion,demotion,rateofpay,benefits,leaveofabsence,lay-off,termination,work-relatedsocial/recreationalprograms,andotherconditionsofemployment.
Harassment and Discrimination
Wemaintainastrictpolicyprohibitinganykindofunlawfulharassmentanddiscrimination,such
asthatinvolvingrace,sex,religion,color,age,nationalorigin,veteran’sordisabilitystatus,orsexualorientation.Thispolicyprohibitsharassmentanddiscriminationinanyform,includingverbal,written,visualorphysical.Werequire100percentofourTeamMembers,includingmanagementandnon-managementandsalariedandhourly,attendapproximatelyonehourofanti-harassmentandanti-discriminationtrainingannually.Moreover,weconsiderharassment,discrimination,andretaliationtobeseriousissuesandhaveinvestedconsiderableresourcestopreventtheiroccurrence.Wefullyinvestigateeachallegationofharassmentanddiscriminationandimplementcorrectiveactions,includingdisciplinaryaction,asappropriate.
Human Rights
TysonFoods’humanrightspracticesaregroundedinthecompany’sCoreValues,CodeofConduct,andTeamMemberBillofRights.Thesedocumentsoutlinethemanyrights,benefits,andresponsibilitiesenjoyedbytheTeamMembersofTysonFoods.Theserightsandbenefitsandresponsibilitiescorrespondwithorareinadditiontoallotherrightsprovidedbystateorfederallaw.Werequire100percentofourTeamMembers,includingtheBoardofDirectors,toattendapproximatelyonehourofethicsandCodeofConducttrainingannually.
WestrivetoprovideourTeamMembersasafeworkplace.WeensureTeamMembersreceivepaymentofwagesowedfortheworktheyperform.OurTeamMembershavearighttoretaintheirownsocial,economic,cultural,andpoliticalinstitutions.Moreover,wedonotemployanyoneunderthelegalageofemployment,andwedonottolerateforcedandcompulsorylabor.Toourknowledge,wedonothaveoperationsatriskforincidentsofchildlaborandforcedandcompulsorylabor,norhavewehaveincurredanyincidentsinwhichtherightsofindigenouspeoplewereviolated.
Labor Relations
PursuanttoourTeamMemberBillofRights,werespecteachTeamMember’slegalrighttoorganizewithoutfearofretaliation,repression,oranyotherformofdiscrimination.Toourknowledge,wedonothaveoperationsinwhichtherighttoexercisefreedomofassociationandcollectivebargainingareatrisk.
Approximately33,000TeamMembersintheU.S.and7,000TeamMembersinforeigncountriesaresubjecttocollectivebargainingagreementswithvariouslaborunions.Wearecommittedtogood-faithbargainingandtomeaningfulcommunicationwithourTeamMembersandtheirrepresentatives.Whensignificantoperationalchangesareimminent,wenotifyourTeamMembersasrequiredbythe
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U.S.DepartmentofLaborWorkerAdjustmentandRetrainingNotificationAct(WARN);local,state,orcountry-specificlaws;oranyrequirementssetforthinrespectivecollectivebargainingagreements.
Compensation and Benefits
TysonFoodsbelievesinsharingitssuccesswithitsTeamMembers.Withthatphilosophy,weseektoprovidecompensationandbenefitsthatattract,retain,andmotivateourTeamMembers.Webelieveourcompensationandbenefitspackageisoneofthebestintheindustry.
Duringfiscalyear2009,wespentmorethan$3.5billiondollarsinsalariedandhourlycompensation,socialsecurityandMedicaretax,federalunemploymenttax,andstateunemploymenttaxforourfullandpart-timeU.S.basedTeamMembers.Additionally,TysonFoodshadbenefitscostsofapproximately$750millionforourU.S.-basedTeamMembersduringthisfiscalyear.Examplesofthesebenefitsinclude,butarenotlimitedto,healthcare,lifeinsurance,accidentaldeathanddismembermentinsurance,longtermdisability,stockmatch,and401(k)match.Belowwehighlightseveralkeyaspectsofourcompensationandbenefitspackage.
Compensation
Weemployfull-timeandpart-timehourlyandsalariedTeamMembers.ThemajorityofourTeamMemberscompensatedatanhourlyratesupportourcompanybypreparingfoodproductsinprocessingplants.TheseTeamMembersarecompensatedatoraboveU.S.minimumwagerequirements.
Toensureourcompensationpackageremainscompetitive,wemaintainaCompensationDepartment.Thisdepartmentconductswagesurveysandreviewscost-of-livingindicatorsandcommunitynormsregularly.Duringfiscalyear2009,ouraveragehourlyratewas$11.72perhour.Thisrateis61.86percenthigherthanthefederalminimumwage.
OurCompensationdepartmentalsoestablishesandmaintainscomprehensivesalaryprogramsandpolicies.Theseprogramsandpoliciesaredesignedtoattractandretainhigh-caliberpeople,stimulateandrewardhigh-levelperformance,andprovideflexibilitytofitindividualcircumstances.Additionally,ourCompensationdepartmentensuressalariespaidarecompetitivewiththosepaidbycomparablecompaniesforsimilarworkinthecommunityandintheindustry.
WealsomaintainaCompensationCommittee.Aspartofourgovernanceandoversightprocess,theCompensationCommitteereports
totheBoardofDirectors.TheCompensationCommitteesupportstheBoardofDirectorsandworkswithmanagementtoensurekeyexecutivesarecompensatedinaccordancewithourmanagementphilosophy,competitivepractice,andregulatoryrequirements.Thecommitteealsoreviews,providesadviceon,and,whereappropriate,approvescompensationobjectives,plans,andlevels.
Health Care
WearecommittedtopartneringwithourTeamMemberstohelpthembecomebetterhealthcareconsumers.Weprovideaffordablehealth,life,dental,vision,andprescriptiondrugbenefitstoourTeamMembersandtheirfamilies.WerequireallTeamMemberswhohavebeenemployedformorethanthreemonthstohavehealthcarecoveragethrougheitherthecompany-sponsoredhealthplanorthroughafamilymember’splan.Therefore,100percentofthecompany’seligibleTeamMembershaveaccesstohealthcarecoverage.
In2008,weexpandedourhealthcareprogramtoincludenumerousenhancementssuchasdiscountsondiabeticteststrips,genericmedicationincentives,andfreeonlinepersonal-healthriskassessments.WealsobeganofferingaTobaccoCessationProgramtoallinsuredTeamMembers,andtheircovereddependents18years-of-ageandolder.Thisprogramoffers
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freepersonalphonecounseling,freeself-helpmaterials,informationaboutavailablecommunityprograms,andafreeeight-weeksupplyofnicotinereplacementtherapy.TeamMembersalsohaveaccesstoprescriptionmedicationsforsmokingcessationuponrequestfromtheirphysician.Morethan2,700TeamMembersandcovereddependentshavetakenadvantageofthisprogramalready.
In2008,webeganofferingaDiseaseManagementProgram.Thisprogramprovidesfree,comprehensivesupporttoeligibleTeamMembersandtheirinsureddependentsinmanagingseveralchronicdiseasessuchasdiabetes,asthma,congestiveheartfailure,coronaryarterydisease,andchronicobstructivepulmonarydisease.Thisprogramofferscustomizededucation,one-on-onediseasemanagementcounseling,advice,toolsformonitoringdiseaseconditions,andvariousothersupportservicesbasedontheparticularneedsofTeamMembersortheirdependents.
Retirement Savings
OurRetirementSavingsPlanhelpsourTeamMembersfulfilloneoftheirmostimportantgoals–financialsecurity.Inadditiontocompanymatchandpayrolldeductionfeatures,ourRetirementSavingsPlanofferseligibleTeamMembersauniqueopportunityto“design”theirownpersonalsavingsandinvestmentplanto
meetfuturelifestyleneedsandgoals.
TeamMembersaregiventheopportunitytodecidetheamountofmoneytheywanttocontributetotheplanthroughpayrolldeductionsona before-taxbasis,choosehowtheircontributionswillbeallocatedamongdifferentinvestmentfunds,andadjusttheirrateofcontributionandinvestmentmix,astheirfinancialsituationorsavingsgoalschangeinthefuture.Moreover,wealsooffer:
•Threeage-basedinvestmentfundsthatofferamoderate-riskportfolioappropriatetoanindividualTeamMember’sage;
•AnInvestForwardprogramthatautomaticallyplacesaTeamMemberintheappropriateage-basedfundandmanagesannualrebalancing;and
•GuidancePlus,anonlinetoolwhichhelpsTeamMemberssetretirementgoalsanddetermineiftheircontributionlevelissufficientformeetingthesegoals.
Stock Purchase Plan
WealsoofferourTeamMemberstheopportunitytobuyastakeinthefutureofourcompany.TheTysonStockPurchasePlanallowseligibleTeamMemberstocontributeupto20percentoftheirpaytopurchaseTysonFoodsstock.Afterayearofservice,thecompanywillmatchaportionoftheTeamMember’scontributions.
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Chaplains Program
ChaplainshavebeenprovidingcompassionatepastoralcaretoourTeamMembersandtheirfamiliessinceOctober2000.Currently,120full-timeandpart-timechaplains,representing28differentfaithgroupaffiliations,supportthisprogram.Thisisaproactiveassistanceprogramwithaspiritualfoundation.TeamMemberstalkinconfidencewithourchaplainsaboutmanyissues,includinghealthconcerns,maritalandfamilyissues,griefanddeath,substanceabuse,andjobandfinancialconcerns.Ourchaplainsalsoprovidereferralsforpremaritalcounselingandweddings,andcelebratewithTeamMemberswhennewbabiesareborn.WebelievethisprogramprovidesanextralevelofcareforourTeamMembers.
Workforce Home Benefit Program
TysonFoodsmaintainstheWorkforceHomeBenefitprogramtoassisteligibleTeamMembersinbecominghomeowners.Theprogram
isoneofthelargestofitskindintheU.S.andenablesTeamMemberswhomeetprogram
qualificationstoobtainfinancialassistancewithclosingcostswhenbuyingahome.Italsoprovidesaccesstoexpertcounselingforthefuturehomeowners,aswellasflexibleandlow-down-paymentmortgageproducts.TohelpdefrayTeamMembers’out-of-pocketcostswhenbuyingahome,theprogramoffersaclosing-costassistancefundthatwillprovidesecondmortgagestoeligibleTeamMembers.Thefundwillprovideupto$3,000pereligibleTeamMember.Thesesecondmortgageswillbeforgivenoverfiveyears,providedtheTeamMembercontinuestoworkatTysonFoodsandcontinuestoownandoccupythehome.
Talent Management
TysonFoodshasatraditionofbuildingleadershipfromwithin.Werecognizetheimportanceofhavingbothstrongcurrentleadersandfuturebenchstrength.OurDiversityandLeadershipdepartmentandotherareasinHumanResourcesprovideseveralprogramsdesignedtoenhancebothpersonalandorganizationaleffectiveness.ThedepartmentsofferavarietyofservicesandprogramstohelpprepareourTeamMembersforthechallengestheywillfaceinguidingthecompanytosustainedprofitablegrowthandmarketleadership.
Job Skills and Leadership Training
WorkingforTysonFoodsoffersmorethanagreatjob.Educationalopportunitiesareavailablefromentry-levelpositionstoseniormanagement,andweactivelyfosteranenvironmentwhereeveryonehasaccesstotheseopportunities.ThetypeoftrainingandhoursoftrainingaTeamMembertakesvariesbasedonjobresponsibilities.ManyofourTeamMembersmustcompleteannual
regulatoryandcompany-mandatedcompliancetrainingrequirementssuchasthoserelatedtofoodsafety,environmentalprotection,animalwell-
being,transportationsafety,harassmentanddiscrimination,ethicalbusinessconduct,andworkplacesafety.
WealsoofferleadershiptrainingtoourTeamMembers.Forexample,inApril2007,welaunchedourSupervisorAwarenessTrainingSeries(SATS),anonline,frontlineleadershiptrainingprogramforsupervisors.Thisprogramcurrentlyoffers11trainingtopicsdesignedtoincreasetheawarenessandleadershipskillsofourfrontlinesupervisors.Thisincludestopicsrelatedto,butnotlimitedto,buildingtrust,dignityandrespect,sensitivitytraining,workers’compensation,safetyawareness,andimprovingretention.Todate,oursupervisorshave
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completedjustover43,000SATScoursesandloggedalmost24,000hoursoftraining.Futurecourseswillinclude“HowtoImproveAttendance”and“TheABCs(AlwaysBeConsistent)ofSupervision.”
TysonFoods’LeadershipCollegeprovidescoursesfocusedonsevencoreleadershipcompetenciesdividedintothreelevelsofcomplexityincludingleadership,businessacumen,strategicagility,communication,buildingacultureofinclusion,developingselfandothers,andunderstandingTysonFoods.Certifiedfacilitatorsteacheachcourse.Duringfiscalyears2008and2009,3,245managementandmanagementsupportTeamMembersparticipatedintrainingprovidedbytheTysonFoodsLeadershipCollege.
OurEducationalAssistancePlanencouragesandenablesTeamMemberstoincreasetheirknowledgeandskillsandfurthertheireducation.Allfull-timeTeamMemberswhohavebeenemployedwithTysonFoodsforatleastoneyearareeligiblefortuition,books,andfeereimbursement.Thetuitionreimbursementportionoftheeducation-assistanceplanisdesignedtoencourageTeamMemberstoseekandachievedegreesfromaccreditedcollegesanduniversities,andtoencouragecareerdevelopmentthatmeetsthecurrentandfuturebusinessneedsofourcompany.Twohundredandninety-nineTeamMemberstookadvantage
ofthisprogramduringfiscalyear2008,and297duringfiscalyear2009.TysonFoods’overallinvestmentintheprogramduringthesetwoyearstotaled$1.3milliondollars.
WealsooffervocationaltrainingforTeamMemberswithspecificskillsortrades.Forexample,wemaintainaMaintenanceTrainingProgramdesignedtoincreasetheskillsofourMaintenanceTeamMembers.Overthecourseoftheprogram,TeamMemberscompleteacombinationofelectronicandwrittenmaterial,classroomandlabinstruction,andon-the-jobtraining.Theprogram,whichisfacilitatedintheplants,isdesignedforpayincreasestocorrespondtospecifictraininglevelsachieved.TeamMembersarerewardedfortheskillsthey’vegainedandencouragedtocontinuetoadvance.
Regular Performance and Career Development Reviews
AllofourmanagementandmanagementsupportTeamMembersparticipateinregularperformanceandcareerdevelopmentreviews.TheTysonEvaluationandMeasurementSystem(TEAMS)forsalaried,managementsupport,andmanagementsupporttechnicalTeamMembersalignsindividualperformancewithorganizationalgoals.TEAMSprovidesaconsistentapproachtodevelopmentalplanningandappraisalby:
•Clarifyingperformanceexpectations;
•Identifyingimprovementandgrowthopportunities;
•Encouragingbettercommunication,training,andsupportforimprovedperformance;and
•SettingeffectiveTeamMembergoalsthathelptoachieveorganizationobjectivesandthathelpdevelopskillsandabilitiestoaidincareergrowth.
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Individual Development Plans
InadditiontotheTEAMSreviewprocess,weprovideTeamMemberswiththetrainingandresourcesneededtodevelopanIndividualDevelopmentPlan(IDP).IDPsareaTeamMember’sroadmaptoreachinghisorhercareerobjectives.TodevelopanIDP,TeamMembers:
•Seekoutfeedbackfromothers,suchasasupervisor,directreports,andpeers;
•Reviewfeedbackfromothersinordertoidentifydevelopmentalopportunities;
•Conductaself-assessmenttoidentifystrengths,weaknesses,interests,andvalues;
•Linktheirindividualdevelopmentneedsandopportunitiestobusinessstrategiesandgoals;and
•Developlong-termandshort-termcareerdevelopmentgoals,activities,andsuccesscriteria.
WhenaTeamMemberdevelopsanIDP,heorsheislookingtoimproveperformance,mastercompetenciesforpersonalandcareerdevelopment,orprepareforfutureopportunitiestotakeanotherpositionorincreaseresponsibilitywithinthecompany.
Job Rotation
Wealsoprovideastructuredapproachtojobrotations.FormaljobrotationsprovideTeamMemberswithexpandedexperience,enhancefunctionalskillsacrossourbusiness,andstrengthenourcultureoftalentdevelopment.Jobrotationsallowustocreatemovementwithinateam,breakingdownsilosandbringingnewscopeandperspectivestotheteam.Theyalsoallowustostaffopenpositionstomeetbothcurrentandfuturebusinessneedsandprovideapipelineofwell-roundedleadership.
Leaders Into Champions
LeadersIntoChampions(LINC)isanadvancedleadershipprogramatTysonFoodsdesignedtoempowerourhigh-potentialleadersasorganizationalandindustrychampionswhocontributesignificantlytotheperformanceandprofitabilityofthecompany.TheLINCprogramstructureiscenteredonengagement,empowerment,andgrowth.BusinessunitleadersnominateandselectTeamMemberstobeinvolvedinthetwo-yearLINCprogrambasedonaTeamMember’sperformance,influence,representation,andpotential.
Duringthefirstyear,LINCparticipantsworktounderstandtheirindividualpurpose,vision,andvaluesandalignthemwiththeneedsofTyson
Foods.Participantsincreasetheirself-awarenessandbuildrelationshipswithfellowTeamMembers,includingseniorleadersacrossthecompany.Lastly,participantscreatepersonaldevelopmentplansfocusingonimmediateareasofinfluencewithintheirteam,competencydevelopment,andshort-termcareergoals.
Intheirsecondyear,LINCparticipantsutilizethetoolsandresourcesgainedinyearoneandapplythemtoareal-world,business-focusedapplication,otherwiseknownasastretchassignment.ThestretchassignmentputsparticipantsoutsideoftheircomfortzonebybuildingnewrelationshipsacrossTysonFoodsandbygaininganewandbroaderunderstandingofourcompany.
Duringfiscalyear2009,wegraduatedourfirstLINCclassof21TeamMembersand,asofOctober2009,have38TeamMembersparticipatingintheLINCprogram.Webelievethisprogramwill:
•Ensurethestrengthofourseniorleadershippipelineandhelpprepareourleaderstoaddresscurrentandfuturechallengesandopportunities;
•Createorganizationalchampionswhoareempoweredtocreateacompetitiveadvantagewithinourculture;
•Expandthebreadthanddepthofourinfluenceandleadershipwithintheindustry;and
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•Driveinnovation,createchange,andtransferorganizationalvalues.
Succession Planning
Successionplanningallowsustobuildaformalizedplantofillspecificrolesinanestablishedtimeframe.Throughthesuccessionplanningprocess,weidentifycriticaljobsbasedonbusinessstrategyandidentifyaslateofTeamMembercandidatescapableoffillingthesepositions.Thisprocessalsoallowsustoanalyzeourabilitytofillcriticalvacanciesfromwithinandidentifyareasthatarevulnerabletoturnover,retirement,orskillgaps.
Diversity and Inclusion
Wearecommittedtomaintainingaculturethatfostersinclusionanddiversity.WebelieveitistheuniqueideasandcontributionsofourTeamMembersthatdrivesourcontinuedbusinesssuccess.OurinclusionanddiversitypoliciesandpracticesarebuiltaroundthepremisethatallTeamMembersfeel:“AtTysonFoods,Ihavetheopportunitytobepartofawinningteam,andgrowpersonallyandprofessionally,whilebeingmyself.”
Wehavedevelopedandimplementedkeyactivitiessupportingourinclusionanddiversitybusinessstrategies.In2005,weestablishedanExecutiveDiversityBusinessCouncil.Composedofseniorlevelleaders,thiscouncildevelopsandleadsinitiativesthatfosterinclusionand
participationofallTeamMembers.TheprimaryareasoffocusforourExecutiveDiversityBusinessCouncilarebusinessresourcegroups;inclusionanddiversityeducationandcommunication;andTeamMemberengagement.
Business Resource Groups
WehaveestablishedfourBusinessResourceGroups(BRG)includingaWomen’sBRG;aMen’sBRG;aMulticulturalBRG;and,newforfiscalyear2009,aVeteransBRG.ThesegroupsfosterengagementandhelpourTeamMembersfeelmoreconnectedtoourcompany’soverallbusinessstrategy.EachBRGhasabusinessplanthatoutlinesinitiativesandeventsthatsupporttheirspecificaffinitynetwork,andthatalignwithourBRGPillarsofSuccess,whichincludeprofessionaldevelopment;businessdevelopment;communitydevelopment;andnetworking,retention,andengagement.
Inclusion and Diversity Education and Communication
AtTysonFoods,webelieveinclusionanddiversityareaboutmorethanaperson’soutwardappearance.Webelieveinclusionanddiversity
isabouttheindividualandcollectivethoughts,backgrounds,andtalentsofourTeamMembers.ThisbeliefdirectlysupportsourCoreValuesthatstate,“Westrivetobeacompanyofdiversepeopleworkingtogethertoproducefood.”Accordingly,welaunchedanextensiveinclusionanddiversitytrainingprograminAugust2005.
ThefirstphaseofthistrainingprogramincludedanexternallyfacilitatedprogramtitledManager’s Mindset/Managing Inclusion.AllofficersandcontractedTeamMembersattendedthisprogram.WearenowofferingthesecondphaseofthistraininginitiativewithaworkshoptitledPause-Engage-Expand-Reflect(PEER).PEERisaone-dayworkshopinwhichleaders:
•Pausefromtheirnormaldailyroutinestogainmorein-depthinsightsabouttheirexperiencesandtheexperiencesofothers;
•Engageinopen,honest,thoughtfuldialoguewithothers;
•Expandtheirviewsoftheworldandpeoplearoundthem;and
•Reflectuponhowtheycantakewhattheyhavelearnedaboutthemselvesbacktotheirjobsaswellastheireverydaylives.
Everyoneisuniqueanddifferent.Byrecognizingandrewardingeachperson’suniquecontributions,wecreatewinningteams.Toreinforcethismessage,weshareinformationalpaperswith
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ourTeamMembersthatrecognizeculturalcelebrationsandhighlightimportantleaders,artists,andentertainersfromdiverseback-grounds.Developedonamonthlybasis,thesepaperssharethehistoryandimportanceofthesecelebrationsandculturalfiguresandcon-tributetoourTeamMembers’educationandawarenessofdiversity.
Team Member Engagement (Attraction – Retention – Recruitment)
Primarilyimplementedinourprocessingplants,thePipelineManagementProcess(PMP)providesasystematicprocessforidentifyingTeamMembers,fromfirst-levelsupervisorstouppermanagement,ascandidatesfordevelopmentalandadvancementopportunities.Wecurrentlyhavemorethan900TeamMembersidentifiedasPMPcandidateswhomaintainactionitemsthatprovideprofessionaldevelopmentplansdesignedtoincreasejobandmanagerialskills.
Supplier Diversity
Wealsoknowthathavingadiversegroupofsupplypartnersmakesgoodbusinesssense.Workingwithminority-ownedandwomen-ownedbusinessesiskeytohelpingusmeetourhighstandardsforqualityproductsandultimatelycreatesmorevalueforourshareholders.Wemaintainadiversegroupofsupplypartnersbecausewewantdiversitytobeanintegralpart
ofeveryaspectofourbusiness.Assuch,we:
•Activelylookforopportunitiestoincreaseourspendingwithcurrentdiversesuppliers,aswellasaddingnewdiversesupplierstooursupplybase.
•Partnerwithsupplierstoencouragediversityintheirsupplychain.
•IncludediversesuppliersinoursourcingopportunitiesaspartofourSourcingPolicyandProcedures.
•Maintainmembershipinandsupporteventshostedbyregionalandnationalminorityandwomen’sorganizationssuchastheNationalMinoritySupplierDevelopmentCouncil,theArkansas-MississippiMinoritySupplierDevelopmentCouncil,andtheWomen’sBusinessCouncil–SouthwestRegion.
•Continuetoparticipateindiversitytradeshowsandothernetworkingfunctions.
Inclusionanddiversityistheresultofaconsciousefforttoeliminatebarriersthatarepresentbecauseofournaturalhumandifferences.Byleveragingourdiverseheritages,wecanproduceabetterresultbecauseofourwillingnesstoacceptothersasequallyvaluableandimportant.AtTysonFoods,weaccomplishthisbyincreasingourawarenessabouthowourownthinking,actions,andbackgroundsimpactthosearoundus.Wecontinuetoeducateourleadersonhowtoeffectivelychampionandenergizeamulti-culturalworkforce.Webelievethiscommitmentcontributestoacompetitiveadvantagethroughincreasedinnovation,improvedcustomerandinvestorconfidence,andultimatelyattractingandretainingoutstandingTeamMembers.
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TysonFoodspromotesaculturethatvaluesthehealthandsafetyofitsTeamMembers.Weviewworkplaceinjuriesandillnessesasunacceptable,andimprovingourhealthandsafetyperformanceisapriority.Wehavecreatedandimplementedprogramstoreducethefrequencyandseverityoftheseevents,andwereviewandmonitorourperformanceclosely.
OurCoreValuesstatewe“strive to provide a safe work environment for our Team Members,”andwearecommittedtomakingsuretheyreturnhometotheirfamiliesashealthyandsafeaswhentheycametowork.Additionally,weaspiretohavezeroinjuriesandillnesses,andareworkingtobuildanincident-freeculturethatisgroundedonthepremiseofeliminatingworkplacerisksandhazardsandcontinualimprovement.OurEnvironmental,Health,andSafetyPolicyisavailableforreviewatwww.tyson.com.
Management System Approach
AsofDecember2008,allTysonFoods’facilitiesintheUnitedStatesandMexicohaveimplementedEnvironmental,Health,andSafety(EHS)ManagementSystems.ThehealthandsafetyaspectofthissystemfulfillstherequirementssetforthinOccupationalHealthandSafetyAssessmentSeries(OHSAS)18001,whichisaninternationaloccupationalhealthandsafetymanagementsystemspecification.Assuch,eachfacilityhasdevelopedandimplementedproceduresandcontrolsregardinghealthandsafety:
•Communication;
•Correctiveandpreventativeaction;
•Compliancemanagement;
•Hazardidentification,assessment,andcontrol;
•Documentandrecordcontrol;
•Emergencypreparednessandresponse;
•Training,awareness,andcompetency;and
•Performancereview.
Ourimplementationofthissystematicapproachtohealthandsafetyisvoluntary,andrepresentsasignificantadvancementfromcurrentindustrypractices.WebelievetheimplementationofthissystemdemonstratesourcommitmenttothehealthandsafetyofourTeamMembersandtothecontinualimprovementourhealthandsafetyperformance.
Allofourcollectivebargainingagreementscontainprovisionsrelatedtoworkplacehealthandsafety.Theyspelloutourcommitmenttobeingincompliancewithallapplicablefederal,
state,andlocalregulationspertainingtoworkerhealthandsafetyincluding,butnotlimitedto,personalprotectiveequipment,hazardousmaterialhandling,training,reportingunsafeconditions,andworkplaceinjuriesandillnesses.Additionally,manyofourlocationsareequippedtoprovidefirstaidandaccesstomedicaltreatmentbyatrainedstaffofoccupationalhealthcareproviders.
Health and Safety Programs
MembersofourEHSdepartmentdevelopandadministerourworkplacehealthandsafetyprograms.Thisteamincludes,butisnotlimitedto,occupationalsafety,industrialhygiene,healthcare,ergonomic,processsafety,lossprevention,andtransportationsafetyprofessionalsservinginkeyrolesatboththecorporateandprocessing-plantlevels.Workingincollaborationwithourprocessingplants,thisteamdevelopsandimplementsprogramsto:
•ProtectthehealthandsafetyofourTeamMembers;
•Identifyandeliminateorcontrolwork-relatedhazards;
•EducateTeamMembersoninjuryandillnesspreventionandhazardrecognition;
•Complywithallhealthandsafetylawsandrequirementsapplicabletoouroperations;
•Minimizeorpreventpropertydamageorloss;
•Respondtoandinvestigateinjuries,illnesses,andotherincidents;
•Treatandmanagework-relatedandnonwork-relatedinjuriesandillnesses;
3.3 ensuring tHe HealtH and saFety oF our teaM MeMbers
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•Assessaprocessingplant’shealthandsafetyperformance;
•Minimizeergonomic-relatedriskfactors;and
•CreateandcommunicatesolutionsforpreventingandmitigatinglossesrelatedtotheoperationofCommercialMotorVehicles.
TeamMembersthroughoutourcompanyworkdirectlywiththeirplants’managementteamtoidentifyandeliminateworkplacehealthandsafetyhazards.Throughformalsafetyandergonomiccommittees,managementandnon-managementTeamMemberspartnerandmeetregularlytocontinuallyimprovetheirplants’healthandsafetyperformancethroughkeyactivitiessuchaseducation,inspections,andinvestigations.Attheendoffiscalyear2009,approximately3,000(lessthan25percent)ofourmanagementandnon-managementTeamMembersservedonsafetyandergonomiccommittees.
Team Member Health and Safety Training
Ourabilitytoprovideasafeworkplaceisdirectlyrelatedtotheknowledge,skills,andexperienceofourTeamMembers.Tothisend,wehaveimplementedarobusthealthandsafetytrainingprogramthatensuresourTeamMembershaveaclearunderstandingoftheirhealthandsafetyrolesandresponsibilities.
NewTeamMembersreceiveawareness-leveltrainingregardingthehealthandsafetyhazardsandproceduresapplicabletomostjobsandworkareasintheirfacility.Approximately30healthandsafetytopicsarediscussedduringthistraining.Thisincludes,butisnotlimitedto,safeequipmentpractices,personalprotectiveequipment,emergencyactionandresponse,
hearingconservation,ergonomics,andelectricalsafeworkpractices.
TeamMembersreceiveregularhealthandsafetytrainingthroughouttheircareerwithTysonFoods.Throughsite-specificmanagementsystems,ourfacilityhealthandsafetyprofessionalsidentifyanddocumentthejob-specifichealthandsafetytrainingrequirementsforeachjobclassificationattheirfacilities.Theyalsoidentifyhowthistrainingwillbeperformedandwhoisresponsiblefordeliveringthistraining.Facilitiesuseacombinationoftrainingstylestofulfilljobspecifictrainingrequirements,includingon-the-jobtraining,web-basedtraining,self-studytrainingcourses,internalandexternalinstructor-ledtraining,andothertrainingmethodsasneeded.
Health and Safety Audits
Ourhealthandsafetyauditprocessisanessentialcomponentofresponsiblebusinesspracticeandcontinualimprovement.Facility-ledauditsarerelativelyinformalandinvolvefacilitymanagementteamsconductingroutinecheckstoensurehealthandsafetyprogramelementsandstandardsarebeingfulfilled.Specifically,facility-ledhealthandsafetyaudits:
•Providefortheearlyrecognitionandmanagementofhazards;
•Buildafacility’sconfidenceintheircompliance;and
•IncreaseourTeamMembers’healthandsafetyawareness.
Corporateprofessionalsconductcomplianceauditsateachmajorfacilityannually.Infiscalyears2008and2009,theseprofessionalsconductedmorethan370facilitysafetyaudits.
Theseauditsfocusonafacility’simplementationandconformancewithcompanystandardsandapplicablehealthandsafetyregulatoryrequirementsandinclude,butarenotlimitedto,programandpermitcompliancerequirementreviews,facilitywalk-aroundinspections,recordkeepinganddocumentationreviews,andevaluationsofdataandreportsfortrendingandperformanceindications.
OurEnvironmental,Health,andSafetyAuditManagerperformsqualityassuranceaudits.Theseauditsevaluatetheeffectivenessoffacility-ledandcorporate-ledaudits.Theyalsoensurecorporateprogramgoalsarebeingmet,andassurethevalueandintegrityofthecompany’shealthandsafetyauditprocess.Eightqualityassuranceauditsareconductedannually.Theauditmanagerperformstheseauditsatrandomprocessingfacilities.
Promoting Health and Wellness
Wehavealong-standingcommitmenttothehealthandwell-beingofourTeamMembersandtheirfamilies.WerecognizeourTeamMembersperformtheirbestwhentheyfeeltheirbest,andweencourageourTeamMemberstounderstandhealthrisksandtakeanactiveroleinensuringtheirhealthandwellness.
WemaintainanOccupationalHealthServicesprogramoriginallyformedin1977.Thisprogramprovidesqualifiedhealth-careprofessionalsforthemanagement
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ofwork-relatedinjuriesandillnesses.TheprogramhasexpandedovertheyearsandnowoffersTeamMembersnumeroushealthprogramsandservicesrangingfrominformationrelatedtodiet,nutrition,andcommunicablediseasestoon-sitehealthscreeningsandinfluenzavaccines.Forexample,inOctober2009,morethan450TeamMembersatourSpringdale,Arkansas,corporateofficesparticipatedinourannualhealthfair.Thehealthandwellnessinformationprovidedatthehealthfairhelpstoinform,educate,andempowerourTeamMemberstoadopthealthierlifestylebehaviors.TeamMembersassociatedwiththemanagementofourOccupationalHealthServicesprogramarecommittedtoreducingworkplaceinjuriesandillnessesandtomaintainingandpromotingthehealthandwell-beingofourTeamMembers.
OurOccupationalHealthServicesengageswithgovernmentandnon-governmentorganizationsaswellashealthcareproviderstoremaininformedofoccupationalandnon-occupationalhealthissuesandtrends.Asanexample,ourOccupationalHealthServicesTeamhasbeeninstrumentalindevelopingourcompany’sPandemicPreparationandResponsePlanandourcommunicationeffortswithTeamMembersregardingInfluenzaA(H1N1).FormerlyknownasNorthAmericanandSwineFlu,thisinfluenzastrainemergedinthespringof2009.Todate,afewTeamMembercasesofInfluenzaA(H1N1)havebeenconfirmedatTysonlocations.Whilelocalmanagementteamsandhealthservicesdepartmentsmanagedthesesituationsproactivelyandaggressively,itremindedusoftheimportanceofcommunicatingwithourTeamMembersaboutpracticingcommon-
sense,practicalguidelinesforprotectingtheirhealthandwell-being.Assuch,ourOccupationalHealthServicesteamlaunchedanextensivecommunicationprogramtoensureourTeamMembersknewhowtoprotectthemselvesandtheirfamiliesfromtheInfluenzaA(H1N1)virusaswellasseasonalinfluenza.WiththeassistanceofourOccupationalHealthServicesteamandvariousoutsideagencies,weadministered12,180seasonalinfluenzavaccinestoourTeamMembersintheU.S.duringthe2008and2009fluseasons.
Improving Fleet Safety
Weremaincommittedtosystematicallyenhancingthecompliantandsafeoperationofourcommercialmotorvehicles(CMV),andtomitigatingthepotentialrisksassociatedwiththeiroperation.Asageographicallydiverseorganizationwithfleetactivitiestakingplaceatalmosteverycompanylocation,webelieveestablishingclearandaccessibledirectionandexpectationsforoperationsmanagementisessential.Ensuringourdriversandtheirmanagersknowwhattodoandhowtodoitsafelyandincomplianceisakeyelementtoourtransportationcomplianceandsafetyefforts.
Duringfiscalyear2008,wecompletedthedevelopmentandimplementationofacomprehensivesetofoperationalstandardsthatidentifyspecificresponsibilitiesandrequirementsforachievingCMVcomplianceandsafety.Thesestandardsaddresskeytopicssuchashoursofservice,crashreporting,
regulateddrugandalcoholtesting,driverqualifications,inspections,maintenance,andrepairs.Facilitymanagersareresponsibleforimplementingtherequirementsofthestandardsandforverifyingcompliance.Additionally,duringthissametimeframe,wedevelopedandimplementedtheTysonFoodsCMVDriverSafetyManual.ThemanualisaconcisesetofrequirementsandresponsibilitiesidentifyingonlywhateachdrivermustknowaboutTysonFoods’CMVsafetyandcomplianceexpectations.
ThefinalstepinCMVsafetyexcellenceisaccountability.Ouroperationalstandardscontainarequiredself-auditprocessthatincludesareviewofeachregulatoryandlosspreventionrequirement.Wealsomaintainanassessmentprogramthatconsistsofon-siteassessmentsconductedbycorporate-basedtransportationsafetyspecialists.Theseassessmentsreviewafacility’scompliancewithfederal,state,andlocalregulationsandcompanypolicies,aswellasdriverperformance.Ifanon-conformanceisidentified,ananalysisisconductedtodeterminethereasonforthenon-conformance,andfacilitiesarerequiredtotakeactiontocorrectnon-conformances.
OursystematicapproachtoCMVcomplianceandsafetyrepresentsasignificantshiftfromstandardindustrypractice.WebelieveprovidingresourcesanddirectionforourmanagersintheformofoperationalstandardsandconciseinformationdriversneedtoknowhasresultedinaneffectiveCMVlosspreventionandcomplianceprogram.Forexample,wehavereducedvehiclerolloversby36percentsincefiscalyear2007.Wealsobelievethisapproachestablishesagatewayforcontinualimprovement.Wearemoreeffectiveatidentifyingtrendsand
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thenimplementingprocesscontrolsthattargetissuestobemanagedoreliminated.
Ergonomics
Forwelloveradecade,wehaveemployedvariousergonomicprogramsandstrategiestohelpcreateaworkenvironmentthatminimizesTeamMemberexposuretomusculoskeletalriskfactorswiththepotentialtoaffectbodypartssuchashands,wrists,elbows,shoulders,andtheneckandback.Inshort,westrivetomakework“easier”forourTeamMembersbydesigningworkrequirementsthatfitthejobtotheTeamMember,nottheTeamMembertothejob.
Assuch,wemaintainaveryaggressiveapproachtoergonomics.Werequireourfacilitymanagementteamstoestablishthefoundationalsupporttheirsite-specificergonomicsprogramrequires.Thisincludesprovidingforawrittenergonomicprogram,properlyallocatedresources,anestablishedchain-of-command,anddefinedrolesandresponsibilities.Wealsomaintainanextensiveergonomictrainingprogramthatdeliverskeyergonomicconceptsandtoolstomanagement,ergonomicprogrammanagersandteams,supervisors,hourlyTeamMembers,andtechnicalsupportTeamMembers,suchasengineersandhealthcareprofessionals.
Ourfacilitiesuseanergonomicassessmenttooltoidentify,quantify,andprioritizeergonomicriskfactorsintheworkplace.Thisassessmentconsidershealthindicatorssuchasinjuryanddiscomfortreportsandoperationalindicatorssuchasproductivityproblemsandabsenteeism.FacilitymanagementteamsandhourlyTeamMembersthencollaboratetodevelopandimplementengineering,administrative,andwork-practicesolutionstocontroltheseriskfactors.
OurergonomicapproachalsoreliesheavilyuponTeamMemberparticipation.WebelieveourTeamMembersarecriticaltothesuccessofourergonomicapproach.Theirfeedbackisencouragedduringallaspectsofworksiteanalysis,hazardprevention,control,andevaluationofeffectivenessofcorrectiveactions,andisusedtoidentifyadditionaljobsorareasofconcern.
Toensureourergonomicapproachiseffective,facilitymanagementteamsconductannualprogramreviews.Thesereviewsevaluateprogramsuccessesandidentifyopportunitiesforenhancement.Theycommonlyfocusoninjury-illnessratesandseverityrates;averagelostdayspercase;averagerestricteddayspercase;workers’compensationcosts;percentofergonomicsclaimsversustotalnumberofclaims;averageworkers’compensationcostperergonomicclaim;andabsenteerateandturnover.
Asnotedabove,wemaintainanergonomicapproachthatmakeswork“easier”forourTeamMembers.WebelievethisapproachhelpsourTeamMembersfocusonqualitywork;drivesprocessimprovementandincreasedproductivity;reducestheriskfactorsthatcouldcausemusculoskeletaldisorders,aswellasreducesthenumberofmusculoskeletaldisorders;andimprovestheoverallqualityoftheworkenvironmentforourTeamMembers.
Our Health and Safety Performance
WemeasureourhealthandsafetyperformanceusingtheOccupationalSafetyandHealthAdministration’s(OSHA)incidentcalculationsforLostTimeIncidentRate,TotalRecordableIncidentRate,andDaysAway,Restricted,andTransferRate.Wealsoscoreourhealthandsafetyperformance.Introducedinfiscalyear2006,thisprocess,knownasourSafetyMetricScore,notonlyanalyzesthehistoricalcostsassociatedwithinjuriesandillnesses,butalsoplacesgreateremphasisontheirfrequencyandseverity.Duringfiscalyear2009,thecompanyreduceditsTotalRecordableIncidentRateby19.2percentanditsDaysAway,Restricted,andTransferRateby20.7percent.Inaddition,weimprovedoursafetymetricscoreby14percentduringfiscalyear2009.
1.Inour2007SustainabilityReport,wereportedLostTimeRate,TotalRecordableIncidentRate,andDays,Away,Restricted,andTransferRateas1.18,12.95,and8.88respectivelyforfiscalyear2007.TheserateswerecalculatedbaseduponamanualOSHA300Logdocumentationprocess.In2007,weimplementedacomputerizedOccupationalHealthandSafetySystem.Assuch,ourfiscalyear2007LostTimeRate,TotalRecordableIncidentRate,andDays,Away,Restricted,andTransferRatearerestatedbelowtoaccuratelyreflectthedatareportedbythissystem.2.Numberofwork-relatedinjuryandillnessesthatresultinoneormoredaysawayfromworkper100TeamMembers.3.Numberofwork-relatedinjuryandillnessesper100TeamMembers.4.Numberofwork-relatedinjuriesandillnessesresultinginaTeamMembermissingwork,havingrestrictedworkactivity,orbeingtransferredfromtheirregularworkassignmentper100TeamMembers.5.Theformulacomponentsareweightedsuchthatworkers’compensationcostscontributes50percent,TotalRecordableIncidentRatecontributes10percent,andDaysAway,Restricted,andTransferRatecontributes40percenttothetotalsafetymetric.
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Byplacinggreateremphasisonthefactorscontributingtotheserates,wehavebeenabletoidentifykeyopportunitiesforimprovingourhealthandsafetyperformanceonasite-specificbasis.Duringfiscalyear2009,weestablishedspecialemphasisteamstoconducton-sitereviewsat10facilitiesthatheldhigherthanaverageworkers’compensationcostsandinjuryandillnessrates.Theseteamscollaboratedwithfacilitymanagementtodeveloplong-termsite-specificactionplansdesignedtoreduceworkers’compensationclaimcosts,OSHAincidentrates,andsafetyscores.
Althoughimprovementshavebeenmade,werecognizework-relatedincidentscanstilloccur.Duringfiscalyears2008and2009,thecompanyexperiencedtwowork-relatedfatalities.Additionally,inJune2009,theU.S.DistrictCourtinArkansassentencedthecompanytopayacriminalfineforwillfullyviolatingworkersafetyregulationsthatledtoaTeamMember’sdeathin2003atourRiverValleyAnimalFoodplantinTexarkana,Arkansas.Wewereorderedtopay$500,000aswellasserveone-yearprobation.Weregrettheseunfortunateeventsandareworkingtopreventsimilarincidentsinthefuture.
Awards and Recognitions
Infiscalyear2008,weimplementedanewawardprocesstorecognizefacilitieswithoutstandinghealthandsafetyperformance.Webelievethisnewawardsprogramismoremeaningful,efficient,andcosteffective.Historically,ourinjuryandillnessrateshavebeenabovetheBureauofLaborStatistics(BLS)industryrate.Accordingly,weestablishedawardcriteriatobringawarenesstothisissue,todrivecontinualimprovement,andtorecognizethosefacilitiesthataremakingsignificantreductionsintheserates.Underthenewprocess,therearethreeawardopportunities:
•InjuryFreeWorkplaceAward–ThisawardisgiventofacilitieswithaSafetyMetricScoreofzeroforafiscalyear.
•PlatinumSafetyAward–ThisawardisgiventothefacilitywiththelowestSafetyMetricScorewithinoneofninegivencategories.
•GoldSafetyAward–Thisawardisgiventoanyfacilitymeetingorexceedingthefollowing:
•SafetyMetricScorebelow:
700forBeef&PorkSlaughtering andProcessing;
300forPoultrySlaughteringand Processing;
250forMeatProcessing;
250forRendering;
250forSmallProductionOperations;
ATotalOSHARecordableRatewhichis 25percentbelowtheBLSindustryrate; and
ADaysAwayRestrictedTransferRate whichis25percentbelowtheBLS industryrate.
Duringfiscalyear2008,weawarded40facilitiestheInjuryFreeWorkplaceAward,ninethePlatinumSafetyAward,and15facilitiestheGoldSafetyAward.Infiscalyear2009,49facilitiesreceivedInjuryFreeWorkplaceAward,ninethePlatinumSafetyAward,and17receivedtheGoldSafetyAward.
Inadditiontoournewawardprocess,wecontinuetoencourageourfacilitiestoapplyforfederal,state,andlocalsafetyawardsaswellasawardsfromtradeorganizations.Infiscalyear2008,12facilitiesreceivedCorporateSafetyAwardsfromtheNationalSafetyCounciloftheOzarks.Duringfiscalyears2008and2009,12facilitiesreceivedaWorkerSafetyRecognitionAwardfromtheAmericanMeatInstitute.
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HungerreliefisTysonFoods’primaryphilanthropicfocus(hungerrelief.tyson.com).Since2000,wehavedonatedmorethan71millionpoundsofproteintofoodbanksandhungeragenciesacrosstheUnitedStates.
Inadditiontosignificantproductdonationstofoodbanks,TysonFoodspartnersnationallywithtwodomestichungerrelieforganizations:ShareOurStrength(strength.org)andFeedingAmerica(feedingamerica.org).InMay2006,TysonFoodspledgedtodonate10millionpoundsoffoodtoFeedingAmerica’s200memberfoodbanksoverathree-yearperiod.Wesurpassedourpledgeinhalfthetimeandwecontinuetodonatefoodtothisday.
Beyondourcorporatecontributionstoendhunger,ourTeamMembers,communities,customers,andsuppliersworktohaveameaningfulimpactonhungerintheUnitedStates.Belowareafewexamplesoftheseefforts.
•Powering the Spirit™ to End Childhood Hunger. In2006,TysonFoodscreatedabranded,internalfundraisingeffort,Powering the Spirit,inpartnershipwithShareOurStrengthtoengageTeamMembersinraisingfundsforhungerreliefintheirlocalcommunities.Theprogramhasthreecomponents:
oLocalfundraisingthroughcookingandgrillingevents;
oSalesofaspeciallyproducedTysonFoods’cookbookfeaturingrecipesfromthekitchensofTeamMembersnationwide;and
oAdonationof75percentoftheproceedsofthosefundraisingeffortstohungerreliefinthecommunitiesinwhichthemoneywasraised.
ThroughPowering the Spirit,ourTeamMembersraisednearly$400,000overthepastfouryears.Nearly400TysonFoods’TeamMembersparticipatedinthisprogramin2009.
•Teaming Up to Fight Hunger in Iowa.TysonFoods’TeamMembersfromallIowaplants,twoplantsinNebraska,andoneplantinIllinoisjoinedTysonFoods’corporatecommunityrelationsstaffin2007,2008and2009toraisefundsforIowacommunityagenciesduringtheDes Moines Register’sAnnualGreatBicycleRideAcrossIowa,RAGBRAI.Together,theyhaveraisedmorethan$80,805forchildhoodhungerreliefinthecommunitieswheremoneywasraised.Separately,theTysonFoods’WaterlooIowaComplexorganizedandheldthreetugof
warsinvolvingmorethan65teamsfromtheCedarValleycommunityraisingmorethan$34,000fortheNortheastIowaFoodBankandTheSalvationArmyoverthreeyearsforthisevent.
•Student Food Drive Program.InanefforttocreatethenextgenerationofhungerfightersintheU.S.,TysonFoodssponsoredapilotStudentFoodDriveprogramin18communitiesthroughout2007,2008,and2009.ConductedinpartnershipwithFeedingAmericafoodbanks,theprogramhelpedcollectmorethanthreemillionpoundsoffoodusinghighschoolstudentsinthosecommunities.Moreimportantly,itprovidedleadershiptrainingandanup-frontintroductiontotheissueofhungertotensofthousandsofpotentialnewstakeholdersinthefightagainsthunger.
•Building Hunger Awareness.AnothercriticalcomponentofTysonFoods’hungerreliefstrategyisuseofresourcestowardcreatingawarenessandengagementintheissueofhunger.Theseresourcesincludefood,money,transportationresources,volunteertime,andcommunityinfluence.
3.4 Hunger relieF
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Forexample:
oTysonFoodshasalong-standing,valuedrelationshipwiththeLeagueofUnitedLatinAmericanCitizens(www.lulac.org),whichbroadenedinrecentyearstoincludeacollaborationaddressinghungerinwhichin-kinddonationsweremadeto15communitieswithsignificantHispanicpopulations.
oSince2003,TysonFoodshaspartneredwithHistoricallyBlackCollegesandUniversities(www.hbcu.com),makingfooddonationsincommunitiesinwhichFallFootballClassicsareplayed.Ourfiscalyear2008and2009communitiesincludedMemphis,Atlanta,Indianapolis,Orlando,andGreensboro,NorthCarolina.
oForfiveyears,TysonFoodshasworkedwithagroupofinfluentialbusinessleadersfromthenationalorganizationLiftUpAmerica(www.liftupamerica.org)tomakefooddonationsincitiesacrosstheU.S.Thecompanyteamedwithprofessionalandcollegeathleticteams,includingtheMiamiDolphins,KansasCityChiefs,PhoenixSuns,ClevelandIndians,DetroitLions,SanDiegoChargers,TexasLonghorns,andArkansasRazorbackstodistributefoodandcreateawarenessabouthungerintheircommunitiesin2008and2009.
oTysonFoodshasbeeninnovativeinitsuseofsocialmediaforcreatingawarenessaroundtheissueofhungerandthoseengagedinhungerrelief.Thecompany’shungerreliefWebsiteandblog(hungerrelief.tyson.com)beganpublishinginearly2008,shortlythereaftercomplementedbyawidelyfollowedTwitteraccount,andvideoandimagesharingonYouTubeandFlickr.ApostdescribinghungerintheSanFranciscoBayAreageneratedmorethan2,100comments.
oAnothercomponentofthehungerreliefeffortsincludestheTysonFoods’Hunger All-Stars®program,inwhichpeoplecontributingtothefightagainsthungerintheirowncommunitiesarerecognizedontheHungerReliefsite.Inthepasteighteenmonths,morethan85TysonFoods’Hunger All-Starshavebeenrecognizedonthesite.Eachmonth,thecompanydonatesatruck-loadoffoodtotheTysonFoods’Hunger All-StaroftheMonth.Therearesomeinspiringstoriesonthesite,includingoneofa13-year-oldinOklahomawhoraisedmorethan$20,000forhislocalfoodbank,andan85-year-oldwomaninWashington,D.C.,whohasrunafoodpantryformorethan40years.
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Sustainable Steps toward Solutions to Hunger and Poverty.
AttheUnitedNationsMillenniumSummitinSeptember2000,189headsofstatecommittedtheirnationstoaglobalpartnershiptoreduceextremepovertyby2015throughaseriesofgoalsknownastheMillenniumDevelopmentGoals(MDG).Thesegoalsaddressextremepoverty,includingincomepoverty,hunger,disease,lackofadequateshelter,andexclusion.Moreover,thegoalspromotegenderequality,environmentalsustainability,andbasichumanrightsrelatedtohealth,education,shelter,andsecurity.CLICKHEREtolearnmoreabouttheMDG.
Theeighthgoalcallsforglobalpartnershipbetweenpublicandprivatesectorstoachievedevelopmentobjectivessetforth.Insupportofthisgoal,TysonFoodshascollaboratedwithMillenniumPromise,anonprofitorganizationsupportingtheachievementoftheMDG,tocreatesustainablefoodsystemsinSub-SaharanAfricathroughtechnicalphilanthropy.TysonFoodshasthetechnicalexpertisetobuildpoultryenterprisesand,byapplyingthe“teachamantofish”principle,theopportunitytoteachindividualsthetechnicalskillsneededtoprovideasustainablefoodandincomesource.
Totaketheseideasfromconcepttopractice,TysonissupportingaRwandan-basedcompany,IkiraroInvestments,inaprojectaimedateasingthehungerforthelocalpeopleofMusanzeinRwanda.WhileTysonFoodshasnofinancialinvestmentinIkiraroortheproject,itissupplyingtechnicalexpertiseinpoultryproductionandhusbandrytoenable
Rwandanstobecomemoreknowledgeableandself-sufficientintheproductionoffood.Thecompanybelieveseducationalinterventionisapractical,long-terminitiativetohelpeasethehungerconcernsevidentinRwanda.
Specifically,TysonFoodswillprovideperiodicvisitswithon-the-groundtechnicalexpertstothepeopleofMusanzetoteachthemhowtoraisepoultryandbuildasuccessfulpoultryenterprise.ThesebusinessesarenotandwillnotbeownedbyTysonFoods.Thegoalofthistechnicalphilanthropyistogivetheresidentsofthesevillagestheskillstoownandmanageapoultrybusiness.Additionally,wearehopefulthissustainabledevelopmentinitiativewillenablevillagesinSub-SaharanAfricatoimprovetheirincomethroughthesaleofeggsandmeat,aswellasdevelopaschoolmealprogramtoimprovenutritionbyincreasingchildren’sproteinconsumption.CLICKHEREtolearnmoreaboutMillenniumPromise.
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Asacompanycommittedtocreatingvalueforourshareholders,ourcustomersandourpeople,wealsostrivetogivebacktothecommunitieswherewelive,workandsellourproducts.Withacorporatephilanthropicfocusofhungerrelief,TysonFoodshasbecometheleadingprivatesectormeatproteindonorintheUnitedStates,providingover9.5millionpoundsofproductsinboth2008and2009tofoodbanksandhungerrelieforganizations.
Additionally,ourcommunityoutreachdonationsinourareasofoperationsprovidemillionsofdollarsannuallytoahostofcauses.Forexample,weprovidedmorethan$1.4milliondollarsininstallmentcontributionsthroughoutourcommunitiesofoperationinfiscalyears2008and2009forvarious“bricksandmortar”buildingandrenovationcampaigns.Thesedonationsencompassedawidevarietyofprojects,includingneworrenovatedfacilitiesforchildrenandfamilyshelters,hospitals,libraries,communityparksandrecreationcenters,foodbanks,andastate-of-thearteventscenterinSiouxCity,Iowa.Our$1.4milliondollarcontributionsrepresentinstallmentpaymentsfornumerousmulti-yearpledges,alltotalingmorethan$6milliondollarsininvestmentsinthecommunitieswhereourTeamMembersliveandwork.
Combiningtheseproductandmonetarydonations,wedonatedover10percentofourcompany’spre-taxprofitsinfiscal2008,wellabovetheaverageforcorporategivinginAmerica.
Supporting Education
TysonFoodscaresabouteducationinourcommunitiesandacrossthecountry.Wesponsorandsupportnumerousprogramsandorganizationsdedicatedtoimprovingournation’seducationalsystems,suchasStudentsinFreeEnterprise,JuniorAchievement,HistoricallyBlackCollegesandUniversitiesClassicsponsorships,publiclibraryfunds,andmonetaryandin-kinddonationstosecondaryandpost-secondaryinstitutions.Wealsoprovidesupporttonumerousscholarshipfunds,includingnationalFutureFarmersofAmerica,LeagueofUnitedLatinAmericanCitizens,HispanicWomen’sOrganization,UnitedNegroCollegeFund,singleparentandindependentscholarshipassociations,anddonationstovariousuniversityscholarshipprograms.
Tyson Project A+™
ThroughtheTyson Project A+™program,schoolscanearnextramoney.Themoneymaybeusedinanywaytheschoolchooses.Parents,students,facultymembers,
andothersinthecommunityclipandsavelabelsfromTysonproductsfeaturingtheTysonProject A+logo.Thelabelsarecollected,andtheschoolcanredeemthemforcashfromTysonFoods.Atotalof$248,000dollarswasdonatedtoschoolsthroughthisprogramduringfiscalyears2008and2009.
Strategic Community Involvement Plans
WebelieveoneofthemostimportantthingswecandoforcommunitiesinwhichTysonFoodshasoperationsisensureourTeamMembersareinvolvedinactivitiesvitaltothecommunities.Ourcommunityrelationsmanagers,workingalongsidecorporateHumanResourcesandoperationsmanagers,havecollaboratedtocreatestrategicplanstoengagelocalmanagersandTeamMembersintheseactivities.Plans,custom-tailoredtotheneedsandopportunitiesinindividualcommunities,werewrittenspecificallyforall89operationslocationsinfiscalyear2008and2009.Theplansencouragerelationshipbuildingwithandassistancetolocaleducation,government,business,non-profit,publicprotection,anddiversityorganizations.
Donations and Community Outreach
Infiscalyears2008and2009,wedonatedover$5.9milliontocharitiesandnonprofitorganizations,primarilyincommunitiesinwhichwehaveoperatingfacilities.Thesecontributionsrangedfromsponsorshipsandsupportofvariousnonprofitfundraisersandcampaignstomonetaryandproductdonationsforourlocalschoolsandgrassrootscommunityeffortsforeducation,healthandhumanservices,
3.5 CHaritable giving
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families,andtheenvironment.ThisdoesnotincludecontributionsmadebyindividualcompanyfacilitiesorTeamMembers.
WearealsoamajorcontributortoUnitedWay®campaigns.OurcombinedTeamMemberandcompanycommitmentsforfiscalyears2008and2009wereapproximately$3.6million.Corporatedonationssupportedhundredsofcharitieswith135organizationsreceivingatleast$10,000ormore.Asanexample,in2008wecommitted$150,000toSevenHillsHomelessShelterinFayetteville,Arkansas,tohelpestablishamuchneededtransitionallivingfacility,andin2009pledged$100,000totheNortheastIowaFoodBank’scapitalcampaigntoexpandservices.Otherrecipientsofsignificantdonationsarelistedtotheright.
Inadditiontocorporatedonations,manycompanyfacilitiesraisemoneyanddonatetoorganizationsandassociationsintheircommunity.Afewexamplesoftheseeffortsaresharedbelow.
•InMay2009,TeamMembersfromourAlbertville,Alabama,locationraised$40,600fortheAmericanCancerSocietyasapartoftheirRelayforLifeevents.ThisisthethirdyearinarowTysonFoodshasbeenthetopfund-raiserinthecounty.
•Infiscalyear2009,theTysonFoodsForest,MississippiTeamMembersraisedmorethan$60,000intheirlocalRelayforLifeefforts.
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In The Wake of Disaster
NumerousdisasterrelieforganizationsandcommunitiesdependuponthesupportofTysonFoodsinthewakeofdisasterssuchaswildfiresinSouthernCalifornia,floodingintheMidwestandhurricanesintheGulf.Infact,ourTeamMembershavebecomeverywellknownamongnationaldisasterrelieforganizationsforbeingonthesceneearlyafteradisasterstrikesandfeedinghundredsofhungryworkersanddisastervictimsinthemidstoftheirefforts.
•InFebruary2008,TeamMembersfromourShelbyvilleandGoodlettsville,TennesseefacilitiesteameduptoassistreliefeffortsinLafayette,Tennessee,followingdevastatingtornados.Thelocationspreparedapproximately300hotfoodplatesthatweredistributedinthearea.Alongwithothersideitems,theGoodlettsvilleteamsuppliedbeefandtheShelbyvilleteamprovidedchickenforthemeals.
•AfterHurricanesGustavandIkeinSeptemberof2008,Tysonsent26truckloadsoffoodtotheGulfareatohelpinrecoveryefforts.
TysonFoodsassistedmanyTeamMemberswhoendureddangerousconditionsaftericestormsdevastatedpartsofNorthwestArkansas,Missouri,Kentucky,andTennesseeinJanuary2009.Morethan200,000poundsoffoodwasprovidedtoTeamMembersandlocalfoodbankstohelpthosewhowerestrandedintheirhomeswithoutpowerorforcedtostayatshelterstoavoidthecoldtemperaturesinhomestemporarilywithoutheatordamagedbyfallingtreesandlimbs.
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Conservation,pollutionprevention,andstewardshiparesomeofthetermsweusetodescribeourresponsibilityforandcommitmenttoprotectingandrespectingtheenvironment.AtTysonFoods,weendeavortooperateourbusinessinanenvironmentallyresponsiblemannerwhileminimizingourenvironmentalfootprint.
ForTysonFoods,protectingtheenvironmentisaboutmorethanmaintainingcompliancewiththeenvironmentallawsandregulationsapplicabletoouroperations.It’saboutembracingaprocessofcontinualimprovementaimedatprotectingtheenvironmentforfuturegenerations.Thisincludes,butisnotlimitedto:
•Trackingkeyenvironmentalperformanceindicators;
•Identifyingandimplementingopportunitiestoreducetheamountofwaterusedinourproductionprocesseswithoutcompromisingproductsafetyandintegrity;
•Properlyoperatingandmaintainingourwastewatertreatmentfacilities;
•Reducingtheamountoflandfillwastethroughrecyclingefforts;
•Relatingourcarbonfootprinttoourbusinessstrategyandidentifyingopportunitiesandpossibleinitiativestoreduceourgreenhousegasemissions;and
•Evaluatingnewtechnologiesthatofferalternativefuels,reducepackagingwaste,reducethenumberoftrucksontheroad,andconserveenergy.
AsstatedinourCoreValues,“We serve as stewards of the animals, land, and environment entrusted to us.”Environmentalprotectionandresourceconservationareresponsibilitieswetakeseriouslyandconsidercrucialcomponentstoconductingourbusinessinasustainablemanner.
4.0 Planet
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WithourCoreValuesasourfoundation,itisTysonFoods’policytoconductbusinessinasafe,responsiblemannerwithrespectfortheenvironmentandforthewell-beingofourTeamMembers,customers,andneighboringcommunities.Webelievethatconservingandprotectingnaturalresourcesisessentialtoourcompany’ssustainabilityaswellasthefutureoftheworld.WebelievethatourTeamMembers,contractors,andvisitorshavetherighttoworkinasafeenvironment.
ItisboththeindividualandcollectiveresponsibilityofallTysonFoods’locationsandTeamMemberstounderstand,promote,andassistwiththeimplementationofthispolicyanditsaccompanyingprinciples.
OurGuidingPrinciples
•WestrivetomaintainsafeandhealthyworkenvironmentsthatenableourTeamMemberstoworkfreeofoccupationalinjuryandillness.
•Weendeavortooperateourbusinessinanenvironmentallyresponsiblemannerwhileminimizingourenvironmentalfootprint.
•WearecommittedtocompliancewiththeEnvironmental,Health,andSafety(EHS)regulationsandotherrequirementsapplicabletoouroperations,andwesethigherstandardsforourselvesifunacceptablerisksareidentified.
•Wesetgoalstoeliminateinjuriesandillnesses,topreventpollution,andtoconserveresources,andweregularlymonitorandmeasureourEHSperformancetowardmeetingthesegoals.
•Weworktogether,acrossalllevelsofourorganization,todrivethecontinualimprovementofourEHSManagementSystemandEHSperformance.
•WefosteropencommunicationwithourTeamMembers,contractors,andsupplierstoensuretheyareawareoftheirEHSrolesandresponsibilities,andweholdthemaccountableforconformingtothecommitmentsofourEHSPolicyandtherequirementsofourEHSManagementSystem.
4.1 our environMental, HealtH, and saFety PoliCy
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MembersofourEnvironmental,Health,andSafety(EHS)Servicesdepartmentdevelopandadministerourenvironmentalprotectionandresourceconservationprograms.ThisincludesTeamMembersservinginkeyenvironmentalrolesatboththecorporateandprocessing-plantlocations.Corporate-basedenvironmentalprofessionalsreporttoourSeniorVicePresidentandChiefEnvironmental,HealthandSafetyOfficer.Environmentalprofessionalsbasedatourprocessingplantsreporttotheirfacilities’managementteamswithadottedlineofreportingtoourcorporateEHSorganization.
Workinginpartnership,theseprofessionalsprovideoversightforavarietyprograms,suchasairpermitcompliance,riskmanagementplanning,routinechemicalreporting,solidandhazardouswastemanagement,stormwaterpollutionprevention,spillprevention,andwastewatertreatmentanddischarge.Additionally,theseprofessionals:
•Establishclearrolesandresponsibilitiesformanagingenvironmentalcompliance;
•Provideenvironmentaltrainingtohourly,managementsupport,andmanagementTeamMembers;
•Participateinthedevelopmentoflocal,state,andfederalenvironmentalprograms,standards,andregulations;
•Evaluatenewandemergingenvironmentaltechnologiesandprograms;and
•Drivecontinualimprovementwithanemphasisonpollutionprevention,conservation,recycling,andoperationalefficiency.
4.2 our environMental teaM
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AsofDecember2008,allTysonFoods’facilitiesintheUnitedStatesandMexicohaveimplementedEnvironmental,Health,andSafetyManagementSystems.TheenvironmentalportionofthissystemfulfillstherequirementssetforthinInternationalOrganizationforStandardization(ISO)14001.Assuch,eachfacilityhasdevelopedandimplementedproceduresandcontrolsthatalignwiththerequirementsof14001including,butnotlimitedto:
•Theidentificationandcontrolofsignificantenvironmentalaspects;
•Communication;
•Documentandrecordcontrol;
•Compliancemanagement;and
•Emergencypreparednessandresponse.
Animportantcomponentofthissystemistherequirementforfacilitiestosystematicallyidentifytherootcauseofanenvironmentalnoncomplianceevent,proposeappropriatecorrectiveandpreventativeactionstoaddressthenoncompliance,andtrackandmanagetheseactionstoensuretheireffectivenessinpreventingthereoccurrenceofanypotentialnoncomplianceactivity.Thisprocessnotonlyimprovesourabilitytoidentifythecauseofanissue,butalsoourabilitytoensurethatcorrectiveactionseliminatethecauseoftheissueatitssource.
Anotherkeyelementofthissystemisannualmanagementreviews.Thesereviews,conductedbyafacility’smanagementteam,evaluatewhetherafacility’ssystemisproducingthedesiredresults.Thesereviewsprovidefacilitymanagementteamswithanopportunitytostepbackfromtheday-to-dayimplementationofthesystemandevaluateitsperformanceforthepurposeofupdatingprocedures,objectives,andotherelementsofthesystemtodrivecontinualimprovement.
Webelievetheimplementationofthissystemisfundamentaltosuccessful,proactiveenvironmentalmanagement.Additionally,webelieveourmanagementsystemwillhelpensurethesustainablefutureofourcompany,theenvironment,andournaturalresources.
4.3 our environMental ManageMent systeM
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TysonFoods’Environmental,Health,andSafety(EHS)AuditProgramisanessentialcomponentofourbusinesspracticesandcommitmenttocontinualimprovement.Theprogramservesto:
•ProvideassurancetomanagementthatapplicableEHSregulationsandcompanystandardsarebeingimplementedasintended;
•Providesitemanagementwithrecommendationstocorrectanynonconformanceandaidinmanagementsystemandprogramimprovements;
•EnhanceTeamMemberawarenessandunderstandingoftheirEHSrolesandresponsibilities;and
•ProvideauditinformationanddataanalysistoourEHSmanagementteam.
Toensuretheseobjectivesarefulfilled,weimplementourEHSAuditPrograminaccordancewiththefollowingthree-tierprocess.
Tier I: Facility-Led EHS Audits
Facility-ledEHSauditsprovidefortheearlyrecognitionandmanagementofEHShazards,buildownershipandconfidenceinEHScompliance,andincreaseEHSawarenessandresponsibility.TheseauditsinvolvefacilitymanagementteamsconductingroutinechecksofEHSoperationstoensureprogramelementsandstandardsarebeingfulfilled.Inaddition,theseauditsprovideatimelierpictureofcompliancethanannualauditsaloneandassistfacilitymanagersinidentifyingEHStrendsandrespondingtodeficienciesinatimelymanner.
Tier II: Annual Compliance Audits
CompanyEHSprofessionalsconductcomplianceauditsannuallyineachmajorfacility.Processingfacilities,tanneryoperations,andfeedmillsareconsideredmajorfacilities.Allotherfacilitiesareauditedeverythreeyears.Theseauditsfocusonaplant’simplementationandconformancewithcompanystandardsandapplicableenvironmentalregulationsandpermitrequirements.Theseauditsalsoincludefacilitywalk-aroundinspections;recordkeepinganddocumentationreviews;andevaluationsofdataandreportsfortrendingandperformanceindications.Duringfiscalyears2008and2009,ourcorporateenvironmentalprofessionalsconducted360environmentalauditsatourfacilities.
Tier III: Quality Assurance Audits
OurEHSauditmanagerperformseightquality-assuranceauditsannually.Thismanagerisindependentofthefacilitiesaudited,andperformstheseauditsatrandomprocessingfacilities.Alongwiththevalueandintegrityofthecompany’senvironmentalauditprocess,theseauditsensurecorporateenvironmentalgoalsarebeingmet.Infiscalyear2010,wewillberevisingourquality-assuranceauditapproachtobemorefocusedonensuringconformancewithourmanagementsystemstandards,procedures,andgoals.
4.4 auditing our PerForManCe
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Infiscalyear2008,wecompletedanextensivereviewofourenvironmental,health,andsafetyperformancedataandsystems.Theobjectivesofthisreviewweretwofold:first,toidentifyimportantdatapointsnotbeingcollectedandmonitored,andsecond,toevaluatedatacurrentlybeingcollectedwithemphasisontheprocessforcollectingandverifyingthedata,determininghowreportswerecompiled,andtheprocessfordeliveringreportstointernalcustomers.
Fromthisreview,weidentifiedseveralkeyopportunitiestoimproveprocessefficiency.Forexample,wedevelopedaWeb-basedincidentreportingtoolcapableofcollectingdatarelatedtoenvironmentalspillsandreleases,exceedances,noticesofviolation,andregulatoryinspections.Thistoolallowsustomaketheappropriateinternalnotificationsandestablishcorrectiveactionmeasures,andincludesaqualityassurancemechanismthathelpsensuretheaccuracyofthedetails
surroundinganincidentforthepurposeofreportingandanalyzingtrends.Additionally,weareworkingonenhancementsrelatedtoourdatasystemsforwater,solidwaste,specialwaste,andrecycling.
4.5 data ColleCtion and assuranCe
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TysonFoods’mainenvironmentalfootprintareasincludewater,air,carbon,energyuse,solidwaste,packaging,andsustainableagriculture.Thesectionsthatfollowreviewourmanagementapproachtoeachoftheseimpactareasaswellasourperformancedatafortheseareasduringfiscalyears2008and2009.
Protecting and Conserving Water
TysonFoodsunderstandstheimportanceofwaterinoureverydaylivesandourresponsibilityforprotectingwaterquality.Ourpoultry,beef,andporkprocessingplantsusedapproximately25.5billiongallonsofwaterinfiscalyear2009toproducefoodproductsandensurethecleanlinessoftheirfacilities.Atthistime,wehavenotincludedwaterusagedatarelatedtoourpreparedfoodprocessingplants;however,effortsareunderwaytobegincollectingandreportingthisdata.
Wearecommittedtoprotectingthewaterbodiesthatwedischargetoasevidencedbytheresultsofourwaterqualityperformancedata.Weoperate34full-treatmentand42pretreatmentwastewaterfacilitiesinNorth
America.Inadditiontoestablishingelectronictoolsthatenableourfacilitiestoproactivelymonitortheperformanceoftheirtreatmentsystems,ourlong-termgoalistoeliminateNoticesofViolations(NOVs)andpermitexceedances.Fromtheendoffiscalyear2007totheendoffiscalyear2009,thecompanyreduceditswastewaterrelatedpermitexceedancesby5.4percent.
Duringthistimeframe,however,thecompany’sNOVsrelatedtowastewater,stormwater,anddrinkingwaterincreasedby51.9percent.Twoofourpre-treatmentwastewaterfacilitiesaccountedfor55percentofthetotalNOVswereceivedinfiscalyear2008and61percentoftheNOVsreceivedduringfiscalyear2009.Wehaveevaluatedthesefacilitiesandtheirpermitconditionsandtreatmentprocessforopportunitiestoimproveupontheiroperationsandensuretheircompliance.
WaterconservationhasbeenanimportantareaoffocusforTysonFoodsformanyyears.Weemployprogramsandtechnologies,suchasbestmanagementpractices,waterreclamationsystems,andTeamMembereducation,toconserveandreusethisnaturalresource.Ourfirstpriorityistoensurethewholesomenessandsafetyofourfoodproducts.Wateruseiscriticaltothecleanlinessoffacilitiesandforensuringthesafetyofourproducts;itsuseismandatedbythegovernment.Werecognizetheimportantbalancebetweenprotectingproductqualityandconservinganaturalresource.Accordingly,wewillneverreducewaterusageinsituationswherefoodsafetyandqualitycouldbecompromised.
Wearepleasedwiththewaterconservationeffortsmadeandtheresultsachievedsofar.Ourwaterconservationefforts,alongwithseveralfacilityclosures,haveledtoawaterusagereductionof7.6percentsinceOctober2004,whichisequivalenttoa13.9-percentreductioninthenumberofgallonsusedperpoundoffinishedproduct.Toensurecontinualimprovement,thecompanyhassetagoaltoreducewaterconsumptionby10percentoveratwo-yearperiod,ascomparedtoitswaterusagelevelsattheendoffiscalyear2008.Asarequirementofthecompany’sEnvironmental,Health,andSafetyManagementSystemStandards,anyfacilityintheUnitedStatesorMexicothatusesmorethanonemilliongallonsofwaterperweekmustdocumentandimplementaWaterConservationPlanthatsetsforthagoalforwaterreductionandatimeframeforachievingthatgoal.
4.6 Managing our environMental FootPrint
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Below,weprovideinsightintoourmanagementapproachregardingsomeofthemostcommonwaterqualityandconservationquestionsorconcernsraisedbyourstakeholders.
Oklahoma Watershed - TysonFoodsandseveralotherpoultrycompaniesarecurrentlydefendantsinalawsuitfiledbytheOklahomaattorneygeneralallegingpollutionoftheIllinoisRiverWatershed.Thesuit,filedinJune2005,allegedthepracticeofusingchickenlitterasfertilizerintheIllinoiswatershedposedasignificantthreattotheenvironmentandhumanhealth,andthepoultrycompanies’treatmentofpoultrylitterviolatedthestate’senvironmentalstandards.In2008,thefederaljudgeinthecasedeniedtheattorneygeneral’srequestforapreliminaryinjunctiontostoptheuseofpoultrylitterinthewatershed,findingthatthestateofOklahoma
hadfailedtoprovethatbacteriaintherivercouldbelinkedtopoultrylitter.Recently,inJuly2009,thejudgedismissedthedamagescomponentofthestate’scase.TysonFoodscontinuallyandvigorouslydeniestheallegationsmadeinthecase.
Maintaining Air Quality and Managing Greenhouse Gas Emissions
TheprimaryairemissionsmanagedbyTysonFoods’operationsinclude:
•Particulatematter,particulatematterof2.5micrometersorsmaller,andparticulatematterof10micrometersorsmaller(PM10)fromoperationssuchasfeedmillingandcooking;
•Sulfuroxides,nitrogendioxide,carbonmonoxide,andPM10emissionsfromthecombustionoffossilfuels;and
•Volatileorganiccarbonemissionsthatmayresultfromfryeroperations.
IntheUnitedStates,airemissionsareregulatedbyvariousfederal,state,andlocalenvironmentalagencies.Ourcompliancewiththeseregulationsisverifiedthroughannualemissionsinventories,annualandsemi-annualemissioncompliancecertifications,sampling,periodicstateagencyaudits,andinternalcompliancemonitoringsystems.
Ourairemissionsmanagementapproachalsoincludestheimplementationofpollutionpreventionprograms,theinstallationofpollutioncontrolequipment,andinvestmentinairemissioncontroltechnologies,asneeded.Wehavecompletedapotential-to-emitinventory
forourU.S.-basedoperationsasacomponentoftheongoingprocessofmanagingairpermitsandoperationalchanges.
InNovember,2004TysonFoodsbecameapartnerintheU.S.EnvironmentalProtectionAgency(EPA)Climate LeadersTMprogram,avoluntarypartnershipchallengingbusinessestoreducetheirgreenhousegas(GHG)emissions.ClimateLeadersworkcollaborativelywithEPAto:
•Developacorporate-wideGHGinventory;
•SetaggressiveGHGemissionreductiongoalsforthenext5to10years;
•ImplementaGHGinventoryandreductionmanagementplan;
•AnnuallyreportGHGinventorydataandprogresstowardgoals;and
•Publicizetheirparticipation,reductionpledges,andaccomplishments.
TysonFoodscompleteditscorporate-wideGHGinventoryinaccordancewiththeClimate LeadersGreenhouseGasInventoryProtocol.ThisinventoryincludesGHGemissionsfromourU.S.chicken,beef,pork,andpreparedfoodsoperationsaswellasourhogbuyingstationsandtransportationoperations.Additionally,itincludesinformationfromourU.S.basedCobbVantressandPorkGroupsubsidiaries.
OurGHGfootprintduringcalendaryear2004was5.35millionmetrictons.Thisbaselineinventoryincludesdatarelatedtofacilityfuelandelectricityusage,transportationfuels,refrigerationusage,andanaerobicbiogas
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production.Basedonthisinventory,thecompanyisevaluatingsettingGHGemissionreductiongoalsinfiscalyear2010.
Werecognizeourcompanyfacespotentialrisksduetophysicalchangesassociatedwithextremeweatherconditionssuchasdroughts,floods,excessiveheatorcold,hurricanes,andiceandsnowstorms.Theseconditionscanimpactthehealthandgrowthoflivestockandresultinoperationaldisruptions.Wealsorecognizeinvestinginenergy-efficientprojects
andprogramscanimproveourbottomlineperformance.Inlightofthecurrentuncertaintysurroundingthelegislativeandscientificdiscussionsrelatedtoclimatechange,however,wemaychoosetodelayourdecisionongoalsettinginordertobetterunderstandthefuturelegallandscapeandroleofcarbonintheeconomyaswellasitspotentialfinancialimplicationsonourcompany.
WealsobecameapartnerintheEPASmartWay®TransportPartnershipin2004.TheSmartWaypartnershipisavoluntaryenvironmentaland
energyconservationprogramforcompaniesthatshipandhaulfreight.In2006,weexpandedourinvolvementinthisprogram,andgainednationalstatusandrecognitionfromtheEPAasanauthorizedshipper/carrierpartner.Atthetimethisstatuswasachieved,wewereoneofonlysevencompaniestoberecognizedasbothashipperandcarrierpartner.
SmartWayPartnersarecommittedtoreducingGHGemissions,airpollution,andfuelusageintransportationfleets.Tofulfillthiscommitment,wehaveundertakeninitiativesrelatedtoreducedtransportation
miles,increasedrailwayusage,low-emissionengines,single-widetires,aerodynamicpackages,tareweightreduction,auxiliarypowerunits,low-frictiondrive-trainlubricants,andrecruitingSmartWayCarrierPartners.Thetablehighlightsourprogressinsomeoftheseareas.
BelowweprovideinsightintoourmanagementapproachregardingsomeofthemostcommonairqualityandGHGemissionquestionsorconcernsraisedbyourstakeholders.
Tyson Foods’ Position on the Carbon Disclosure Project
Forthepastseveralyears,theCarbonDisclosureProject(CDP)hasrequestedTysonFoods’disclosureofclimatechangerelatedinformation.WehavereviewedtheCDPprocess,format,andinformationrequirementsand,atthistime,havedecidedtocommunicateourGHGinformationthroughalternativebutequallyeffectivemeansratherthanparticipateintheCDP.
ThereareseveralreasonsforTysonFoods’approachtocommunicationregardingGHGinformation.First,webelieveitisunnecessarytocommittheadditionalresourcesrequiredtoannuallyreportourinformationunderCDP’suniqueformat.Second,weprefertocontinueworkingwithEPAregardingGHGinventoryinformationbecauseoftheAgency’sexpertiseandlong-termmanagementresponsibilityforclimatechange.Third,wehavereportedourGHGemissionssummaryinoursustainabilityreport,whichispubliclyavailable.
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Greenhouse Gas Emissions from Livestock Production
Inthefallof2009,aninvestmentresearchfirmprovidingmanagementtoolstoprofessionalsintegratingenvironmental,social,andgovernancefactorsintotheirinvestmentdecisionsreleasedareportclaimingTysonFoods’livestockoperationsgeneratesubstantialemissionsofmethanegas(CH4).Thisreportstatedmethanegasisproducedfromthefermentingofanimalwasteandmanure-holdinglagoonsandcitedaNovember2006reportfromtheUnitedNationsFoodandAgricultureOrganizationthatclaimedlivestockproductionaccountsfor18percentofglobalcarbondioxideemissionsandbetween40and60percentofglobalmethaneandnitrousoxide(N2O)emissions.
Accordingtothe2009 U.S. Greenhouse Gas Inventory ReportfromtheEnvironmentalProtectionAgency,manuremanagementaccountedfor4.7percentofN2Oand7.5percentofCH4emissionsintheU.S.duringthe2007reportingyear.ThisreportisavailableontheEPA’sWebsite.Toviewthereport,CLICKHERE.TysonFoodsdoesnotowncattlefeedlotsorconfinementareas,nordoesitmanagecattle.Thecompanyhasasmallnumberofcompany-ownedswinefarms,accountingforraisinglessthanone-percentoftheswineitprocessesatitsporkproductionplants.Inaddition,TysonFoodsownsaround20poultryfarmsandcontractswithapproximately6,000independentpoultryproducers,whomanagetheirownpoultrylitter.TysonFoods’poultryfarmsdonotutilizelagoonstostorechickenlitter,whichisprimarilycomposedofchicken
droppingsandbeddingmaterials,suchasricehulls.Accordingly,TysonFoods’managementofmanureandanimal-wastelagoonsresultsinasmallGHGfootprint.
Energy Usage and Conservation
EnergyuseinTysonFoods’productionfacilitiesisthecompany’sfirstandsecondlargestsourceofGHGemissions.Ourmainsourceofenergyiselectricity,whichrepresented49.8percentofourtotalGHGemissionsduringfiscalyears2004through2008.Weuseelectricitytopowerprocessing,refrigeration,andwaste-watertreatmentequipment,andforlighting,heating,andairconditioning.Inaddition,manyofourfacilitiesusenaturalgasinboilerstoheatwaterandinfryersandovenstocookourfoodproducts.Thecombustionofnaturalgasrepresented26.7percentofourtotalGHGemissionsduringfiscalyears2004through2008.
Energy-efficiencyprojectsreducebothcostsandassociatedGHGemissions.BelowareexamplesofenergyconservationeffortsunderwayatTysonFoods.
•TysonFoodsoperatesrenewableenergyprocessesandresearchesnewandevolvingtechnologiestocreaterenewableenergy.Forexample,wehavesixwastewatertreatmentsystemsthathaveenclosedtheiranaerobiclagoonsinordertogenerateandcapturebiogas.Biogasisnaturallyproducedduringthedecompositionoforganicmatterintheseanaerobicsystems.Fourofthesesixfacilities,areabletocleanandusetheirbiogasasanalternativefuelsourceto
naturalgasinon-siteboilers.AccordingtodatacollectedfromtheU.S.EnergyInformationAdministration,theaveragemonthlyindustrialnaturalgaspricefromJanuary2001toSeptember2009was$6.75perthousandcubicfeet.Duringfiscalyears2008and2009,thesefourfacilitiesusedmorethan1.8billioncubicfeetofbiogasinon-siteboilers.Forthesetwofiscalyears,thisisequivalentto1.3billioncubicfeetofnaturalgasandanaturalgascostavoidanceofapproximately$9.1milliondollars.Inanefforttominimizeenergycosts,reduceGHGemissions,andutilizealternativeenergysources,weareevaluatingadditionalopportunitiestocaptureandusebiogasatotherprocessingfacilities.
•Infiscalyear2008,TysonFoodsbegantestingarenewableenergyprocessatitsfeedmillinFairmount,Georgia.Thisprocess,knownasabiomassgasificationtechnology,isdesignedspecificallyforpoultrylitterandotherhard-to-processmaterials.Thetestingperiodlastedeightmonthsandconvertednearly1,000tonsofpoultrylitterto110-psig(pounds-per-square-inchgauge)steam.Itsuppliedanestimated30percentofthefeedmill’ssteamneeds.Thetestisconsideredanoperationalsuccess,achievingsustainedgasificationoverextendedperiodsandexcellentresultsonstackemissionsfromtheprocess.TysonFoodscontinuestoevaluateopportunitiestoinstallascaledupversionofthisprocessatothercompanylocations.
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•TysonFoodsimplementedaservervirtualizationandconsolidationeffortwithinitsInformationTechnologyInfrastructureGroupseveralyearsago.Virtualizationisamethodofrunningmultipleoperatingsystemsonasinglecomputer.Oneofthemanybenefitsofvirtualizationisreducedenergyconsumptionforpoweringthecomputersandcoolingtheareainwhichtheserversarestored.Todate,TysonFoods’effortsaroundservervirtualizationandconsolidationhavereducedserverstoragespacebyapproximately400squarefeet,thenumberofserversfrom483to37,physicalserverracksby18,andnetworkportsandcablesby268.
•OurInformationTechnologydepartmentalsobeganofferingLiquidCrystalDisplay(LCD)monitorsasanalternativetoCathodeRayTube(CRT)monitorsinAugust2005.TheadvantagesofLCDmonitorsoverCRTmonitorsequatetoapproximately$110annualsavingspermonitorinenergyuse.Additionally,LCD’sareemissionfree,poselessofafirerisk,anduseloweramountsofenvironmentallysensitivematerialssuchasleadandcalcium.
•Werelyongreendesignandrenovationtoincreaseenergyefficiency.Forexample,ournewofficebuildingandDiscoveryCenter,constructedin2007atourWorldHeadquartersinSpringdale,Arkansas,receivedenergyefficientlightingwhenbuilt.TheremainderofourofficebuildingsatWorldHeadquarterswillreceiveenergyefficientlightingasrenovationsoccurorasreplacementsare
needed.Wearealsoinstallingtimersthatautomaticallyturnofflightsduringnon-workinghours.Thisnotonlyhelpseliminatelightpollutiontotheoutsidebutalsoconservesenergy.Additionally,duringthewinterof2009,wemovedourheatset-pointsatWorldHeadquartersto68°F.Bydroppingandmaintainingtheseset-points,wereducedouroverallnaturalgasusagebyapproximately30percentascomparedtothesamethree-monthperiodin2008.
Solid Waste Management and Recycling
TysonFoods’operationsgeneratemostlynon-hazardoussolidwaste,consistingofpaper,plastics,scrapmetals,usedoils,foodwastes,woodenpallets,proteinby-products,andoldcorrugatedcontainers(OCC).AsstatedinourEHSPolicy,wearecommittedtomanagingouroperationsinanenvironmentallyresponsiblemannerwithemphasisonpollutionprevention,conservation,recycling,andoperationalefficiency.Whileworkingtoconstantlyfindalternativeusesforwastesandby-products,wepromoteconsistentwastemanagementpracticesthroughoutourcompany.Theseeffortsaidinreducingtheamountofwastesenttolandfillsandreducemethanegenerationwhichcontributestothegenerationofgreenhousegasemissions.
Monitoringwastegeneration,disposal,andreuseenablesustoassessourprogressandcontinuallyimproveourwastemanagementperformance.Ourgoalistoreducetheamountofwastewesendtothelandfillandtoincreasetheamountofmaterialsrecycledyear-over-year.TysonFoodsgenerated164,073tons
oflandfillsolidwasteinfiscalyear2008and143,564tonsinfiscalyear2009,representinga12.5percentdecreasefrom2008to2009.Werecycled31,080tonsofOCCandplasticsduringfiscalyear2008and29,615tonsduringfiscalyear2009,a4.7percentdecreasefrom2008to2009.
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WealsomaintainseveraltypesofrecyclingprogramsatourWorldHeadquartersinSpringdale,Arkansas.
•FromMay2008throughOctober2009,werecycledmorethan150tonsofofficewaste,includingplastics,paper,cardboard,aluminum,andotherrecyclables.
•OurInformationSystemsdepartmenthasanagreementwithacompanythatmanagesthereceipt,reuse,andifnecessary,theenvironmentallyresponsibledisposalofpersonalcomputers,laptops,monitors,faxmachines,copiers,cellphones,andothertypesofelectroniccomputerrelatedassets.Duringfiscalyear2009,weshippedmorethan37,000poundsofbulkcomputerequipmenttothiscompanyforde-manufacturingandreclamationofrawmaterials.Thisincludesapproximately820monitorsand2,300personalcomputers,laptops,andservers,alongwithhundredsofcomputermice,keyboards,cables,racks,andothermiscellaneousequipment.
•Througheffortssuchaselectronicinvoicingandbilling,consolidationoffinanceandpayrollapplications,onlineavailabilityandarchivingofreports,andtheuseofmicrofiche,ourDataCenterTeamhasimplementedeffortsthathavereducedourcompany’spaperusagebyapproximately40percentsincefiscalyear2005.
Additionally,weseektoenterintorelationshipswithsupplypartnerswhoshareasimilarcommitmenttoenvironmentalprotection,resourceconservation,andcontinualimprovement.InMay2008,wepartneredwithCHEPEquipmentPoolingSystemstobegintransitioningourshippingplatformfromanon-pooledpalletapproachtoapooledapproach.CHEPisaleaderinpalletandcontainerpoolingservices.Theyissue,collect,condition,andreissuemorethan300millionpalletsandcontainersfromglobalnetworkofservicecenters.Inadditiontoreducedcostsandenhancedoperationalefficiencies,ourpartnershipwithCHEPhelpsminimizeourenvironmentalfootprintinthefollowingways:
•Palletsareconstructedoflumberfromsustainablymanagedforests.
•Thepoolingmodelencouragestherepairandreuseofpallets.
•Brokenordamagedcomponentsofpalletsarerecycled.
Duringfiscalyear2009,weused8.9millionpooledCHEPpalletsforproductshipment.Theenvironmentalbenefitsofthispooledapproachincludeasolidwastereductionofapproximately5millionpounds,anenergysavingsof109billionBTUs,andmorethan3.8millionpoundsofGHGemissions.
Sustainable Packaging
Anoften-overlookedelementofafoodproductisitspackaging.AtTysonFoods,ourfirstpackagingpriorityistoensurethewholesomeness,safety,andshelf-lifeofourproducts.Ourpackagingsupplypartnersmustmeetorexceedthesafetyregulationsandstandardsapplicabletofood-gradepackaging.Inaddition,werequireannualthird-partyauditsforourpackagingsupplypartnersandlettersofguaranteefortheproductstheysupplytoTysonFoods.
Wealsorecognizetheimportanceofreducingpackagingwasteaswellastheuseofnon-renewablematerialsinpackagingcontent.OurPackagingApplicationsTeam,incollaborationwithpackagingsupplypartners,iscommittedtoreducingtheenvironmentalimpactofourpackagingwhileensuringthesafetyofourproducts.Below,wehighlightotherinitiativeswehaveimplementedtoreducetheenvironmentalimpactofourpackaging.
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Corrugated Packaging
TysonFoods’corrugatedsupplypartnerisamemberoftheSustainable Forestry Initiative®(SFI®)program.SFIcertificationpromotesresponsibleforestrypractices.Tobecertified,forestoperationsmustbeauditedagainsttheSFIforeststandard.WeuseonlySFI standardcertifiedcorrugatedpackaging,andatleast94percentoftheboxesweuseforproductshipmentarerecyclable.
Thiscorrugatedmaterialssupplieralsousesthemostcurrenttechnologytoreplaceoil-basedwaxinspecificpackagingapplications.Overthelastseveralyears,thisreplacementprocesshashelpedusreducewax-coatedboxesby16percent.Additionally,withtheassistanceofthissupplier,wehavebeenabletoimplementprojectsdesignedtoreducefiberthroughaprocesscalledboardgradeoptimization.Thisprocessmorecloselyalignsthedesignofacorrugatedboxwiththeperformanceneedsofaproduct.Todate,wehaveremovedover4,000tonsoffiberthroughboardgradereductionincalendaryear2009.
Flexible Packaging Efforts
Themostrecentchangeswehavemadetoreducetheenvironmentalimpactofourflexiblepackagingincludeoptimizingresin(plastic)useinallpackagingandinsomeapplicationsusinganewalternativefillersubstitution.Byoptimizingthepackageattributes,wehaveeliminatedoverfourmillionpoundsofresinsince2008.Thisefforthasalsoresultedinareductioninflexiblepackagingweightleadingtolesspackagingintransportationanddisposal.Themostexcitingoftheseeffortsisthemineralfillersubstituteforresinwhichisbeingusedinoneofourretailpackages.Thisfillerisnotapetrochemical,thusreducingourrelianceonthisresourcebyabout15-percentinthispackage.
Reduced Transportation through “Right Sizing”
OurPackagingApplicationsTeam,aspartoftheirregularduties,isconstantlylookingforopportunitiestoidentifyalternativepackagingthatachievesmoreefficienttruckweights.Wehaveimplementedseveralprojectsthatfocuson“rightsizing”boxes.Theseprojectsensuremoreboxesareoneachpallet,thusallowingustoreachoptimumweightonourtrucksandreducethenumberoftrucksontheroad.
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TysonFoodsincurredseveralenvironmentalpenaltiesduringfiscalyears2008and2009.Thelargestamountpaidbyasinglelocationwasa$2,026,500civilpenaltytosettleallegationsthattheFreshMeatsDivisionviolatedtermsofa2002consentdecreeandafederally-issuedpollutiondischargepermitatitsmeatprocessingfacilityinDakotaCity,Nebraska.AccordingtoafilingmadeinU.S.DistrictCourtinOmaha,thegovernmentallegesthatfromJuly2003throughMarch2004,theDakotaCityfacilityfailedtoproperlyoperateanitrificationsystemasrequiredbythe2002consentdecree.Whenthecompanybecameawarein2003thatsometreatmentplantprocesseswerenotperformingasintended,operationalchangesweremadeandadditionalequipmentandsystemswereadded,
enablingthetreatmentsystemtofunctionconsistently.Infact,duringthepastnineyears,approximately$27millionhasbeenspentupgradingandimprovingthewastewatertreatmentsystematDakotaCity.Thisincludesmorethan$4millionspentonmodificationssince2003.TysonFreshMeatsworkedcooperativelywithstateandfederalregulatorsconcerningwastewaterissuesthatoccurredyearsagoatthisfacility.Thoseissueshavebeenresolvedandthefacility’swastewatertreatmentsystemisoperatingeffectively.
Inaddition,wereported55spills(50anhydrousammonia,twodieselfuel,twocarbondioxide,andoneferricchloride)and
enteredintosixconsentagreementstoaddressspecificenvironmentalissuesandpaid$93,033inpenalties,inadditiontotheabove-mentionedpenaltyataNebraskalocation,duringfiscalyears2008and2009.Detailssurroundingpenaltiesgreaterthan$5,000incurredduringthistimeframeareprovidedbelow.
4.7 environMental Fines and Penalties
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BelowareexamplesofbothinternalandexternalenvironmentalawardsandrecognitionsreceivedbyTysonFoodsduringfiscalyears2008and2009.
•OurDawson,Georgia,poultryfacilityreceivedtheHonorableMentionAwardfromU.S.PoultryandEggAssociation’s2008CleanWaterAwardcompetitioninthepretreatmentcategory.
•InMarch2008,TysonFoodsrecognizedsixlocationsfortheirenvironmentalperformancebypresentingthemwithaFacilityEnvironmentalStewardshipaward.
•InMay2008,ourGreenForest,Arkansas,poultryfacilitywashonoredasoneoffivefinalistsforthe2007ArkansasEnvironmentalStewardshipAward,alsoknownastheENVYAward.
•TheAmericanMeatInstitute(AMI)recognized47TysonFoods’facilitiesfortheirenvironmentalperformanceinfiscalyear2008and33facilitiesinfiscalyear2009.
•InApril2009,ourJoslin,Illinois,beeffacilityreceivedtheJ.EdwardMeersIndustrialAchievementAwardfortheirwastewatertreatmenteffortsfromtheIllinoisAssociationofWaterPollutionControlOperatorsandtheIllinoisEnvironmentalProtectionAgency.
•InMay2009,Alabama’sWaterEnvironmentAssociationawardedtheWastewaterDepartmentatourBlountsville,Alabama,poultryprocessinglocationthe2008ExcellenceinWastewaterTreatmentAward–Category4BiologicalAdvancedTreatment.
•OurWorldHeadquartersinSpringdale,Arkansas,wasnamedoneofthearea’sgreenestofficesbyArkansas BusinessinAugust2009.
•InNovember2009,ourLexington,Nebraska,beeffacilityreceivedtheScottWilburAwardandGoldSafetyAwardfromNebraskaWaterEnvironmentAssociation.ThisisthesixthyearinarowthefacilityhasreceivedtheScottWilburAwardandthefifthyearinarowthefacilityhasreceivedtheGoldSafetyAward.
•OurDakotaCity,Nebraska,wastewatertreatmentplantwasalsorecognizedbytheNebraskaWaterEnvironmentAssociationinNovember2009withtheScottWilburAward.
•In2009,ourTysondeMexicoPopularPlant,CitraPlant,andfeedmilleachreceivedtheCertificacionIndustrialLimpia(CleanIndustryCertification)awardfromtheProcuraduríaFederaldeProtecciónalAmbiente(AttorneyGeneralforEnvironmentalProtection)fortheircompliancewithfederal,state,andmunicipalregulations.
•OurPreparedFoodsfacilitiesinDallasandFortWorth,Texas,receivedwastewatertreatmentawardsin2009.Dallas,forthesixthyearinarow,receivedtheBlueThumbAwardfromtheDallasWaterDepartmentfortheirwastewatertreatmentcompliance,andFortWorthreceivedthePretreatmentAssociatesAwardfromFortWorthfortheirwastewatertreatmentcomplianceperformancefromJune2007throughMay2009.
•TheU.S.Poultry&EggAssociationchoseourMonett,Missouri,poultryfacilityasthewinnerofits2009NationalCleanWaterAwardinthepretreatmentcategory.Alsoin2009,MonettreceivedtheirsecondplatinumandtenthgoldawardfromtheMissouriWaterEnvironmentalAssociationfor100percentindustrialwastewaterpretreatmentcompliance.
4.8 aWards and reCognitions
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Successfulcompaniesknowtheirfuturedependsonprovidingthequalityproductscustomersandconsumersexpectanddeserve.TysonFoodshasbecomeaworldpowerinproteinbecauseofitsstrongbeliefinthispremise.Theproductsweproducearesecond-to-noneinfoodsafety,quality,andvariety.Nothingismoreimportanttoourbusinessthanmaintainingtheconfidencecustomersandconsumershaveinthe Tyson®brand.
TysonFoodsiscommittedtoproducingsafe,nutritiousfoodproducts.Weusestate-of-the-artfoodsafetysystems,provideeducationandinformationthathelpsourcustomersandconsumersuseourproductssafely,continuouslyimproveourproductsafety,anddemandsaferawmaterialsandingredientsfromoursuppliers.OurcompanyisfullycommittedtoourCoreValuesstatement,“We feed our families, the nation, and the world with trusted food products.”
5.0 ProduCts
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TysonFoods’approachtofoodsafetyandqualityiscomprehensive,preventive,andproactive.Weimplementcontrolsandmeasuresateveryleveltomakesureourproductsaresecond-to-noneinfoodsafetyandquality.Weassessourproductsforimprovementduringproductresearchanddevelopment,manufacturingandproduction,marketingandpromotion,storageanddistribution,anduse.Webelievethisapproachhelpsguaranteethesafetyandqualityofourproductsfromthefarmallthewaytothedinnertable.Belowareexamplesofhowthisapproachisimplementedthroughoutourcompanyanditsoperations.
At the Farm
Ensuringthesafetyandqualityofourfoodproductsbeginsatthefarm.Independentpoultryproducersraisemostofourchickens.Weprovideproducerswithveterinarysupport,nutritionallyformulatedfeed,technicalassistance,andinformationonoptimallighting,ventilation,andanimalwell-being.Wealsohelpthemimplementstrictbiosecuritymeasurestopreventthespreadofdiseaseamonganimals,andweperformthousandsoftestseachweektoconfirmthehealthofouranimals,includingavianinfluenzatestingofallchickenflockspriortotransporttoaprocessingfacility.
Webuycattleandhogsontheopenmarketfromindependentlivestockproducers.Toensurethesafetyandqualityofourproducts,weworkwithindustryassociationstodevelopstandardsfortheraisingoftheseanimals.Asanexample,inJune2009,weendorsed
theNationalPorkBoard’sandNationalPorkProducersCouncil’s‘WeCare’Program.Thisprogramformalizesandverifiesporkindustryeffortstooperateinaresponsibleandethicalmannerconcerningtheenvironment,publichealth,employeecare,andcommunityrelations.ThisinitiativealsoinvolvesthePork Quality Assurance Plus®(PQA Plus®)program,whichprovidesporkproducerswithguidelinesforenhancingfoodsafetyandanimalwell-being.Aspartofthisendorsement,weareaskingallporkproducerswhosupplyuswithhogstomeettheporkindustrygoalofbeingcertifiedinthePQA PlusprogrambyJune30,2010andtocompleteasiteassessmentbyJanuary1,2011.
A Systematic Management Approach
Inadditiontogovernmentalregulatoryrequirements,wehavedevelopedourownhighlyintegratedpolicies,procedures,controls,andgoodmanufacturingpracticesdesignedtoensurethesafetyandqualityofourfoodproducts.Oursystemoftenextendsbeyondregulatoryrequirementstoaddresssuchissuesasfacilitysanitation,TeamMembertraining,personalhygiene,producthandling,foodprotection,foreignmaterialprevention,productquality,storage,andtransportation.
InJuly2008,webeganpursuingourGlobalFoodSafetyInitiative(GFSI)certification.TheGFSIisapartnershipbetweenfoodsafetyexpertsfromretailer,manufacturer,andfoodservicecompaniesthatfocusesonthe
“continuous improvement in food safety management systems to ensure confidence in the delivery of safe food to consumers.”TheGFSIobjectivesareto:
•Promoteconvergencebetweenfoodsafetystandardsbymaintainingabenchmarkingprocessforfoodsafetymanagementschemes.
•ImprovecostefficiencythroughoutthefoodsupplychainviathecommonacceptanceofGFSIrecognizedstandardsbyretailersaroundtheworld.
•Provideauniqueinternationalstakeholderplatformfornetworking,knowledgeexchange,andthesharingofbestfoodsafetypracticesandinformation.
TheGFSIbenchmarkedauditisanall-inclusive,one-stopshopforallthingsfoodsafetyandquality.Unlikeotheraudits,certificationrequires100-percentcompliancetotheauditstandard.AsofSeptember2009,67ofTysonFoods’U.S.facilitieshavebeencertifiedagainsttheBritishRetailConsortiumGlobalStandardforFoodSafety,Issue5.Additionally,ourverticallyintegratedjoint-venturebeefoperationinArgentinahasreceivedthiscertification.WebelieveourpursuitofGFSIcertificationisanopportunitytodemonstratetotheglobalcommunitythehighstandardstowhichweproduceourfoodproducts.FormoreinformationregardingGFSI,pleasevisithttp://www.ciesnet.com/2-wwedo/2.2-programmes/2.2.foodsafety.gfsi.asp.
5.1 Managing Food saFety and Quality
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Tyson Foods’ Food Safety and Quality Assurance Team
OurFoodSafetyandQualityAssurance(FSQA)teamplaysakeyroleinensuringthesafetyandqualityofourfoodproducts.Thisteamincludes2,300foodsafetyandqualityprofessionalsservinginkeyfunctionsatboththecorporateandfacilitylevel.Workinginpartnershipwithourfacilitiesandregulatoryauthorities,thisteammonitorstheimplementationandeffectivenessofourfoodsafetyandqualityassurancepolicies,procedures,andcontrols,and:
•Performsfoodsafetyandsanitationinspections;
•Verifiesregulatory,policy,andproceduralcompliance;
•Provideslaboratoryanalysisandsupport;and
•Assistswiththecontinualimprovementofourfoodsafetyandqualityassuranceprogram.
Our Laboratory Services Network
TysonFoods’LaboratoryServicesNetworkisrecognizedthroughouttheindustryasaresearchleaderinfoodchemistry,foodmicrobiology,andfoodsafetyresearch.Thisnetworkconsistsoftwocorporatelaboratories,fourregionallaboratories,and11freshmeatslaboratories.Atotalof10laboratoriesinthenetworkareaccreditedforISO17025.Additionally,our25,000square-footstate-of-the-artlaboratoryinSpringdale,Arkansas,isaccreditedforbothISO17025andISO9001-2008.Thislaboratoryisproficientinmanyaspectsoffoodsafetymicrobiology,foodsafetyresearch,andfoodchemistry.Moreover,thefieldandtrainingservicespartofthislaboratoryprovidessupporttoTysonFoods’processingfacilitiesinkeyareassuchastraining,auditing,andoptimizationofantimicrobialsystems.
Throughtheeffortsofthelaboratorynetwork,TysonFoodshasmadesubstantialcontributionstoresearchcoveringE.coliO157:H7,Salmonella,AvianInfluenza,Listeria monocytongenes,campylobacter,andotherpublichealthissuesandinitiativesaimedatimprovingfoodsafetyandanimalhealth.AlthoughnotconsideredapartoftheTysonFoods’LaboratoryServicesNetwork,thecompanyalsomaintains58plant-basedqualityassurancelaboratoriesthatassistwiththeday-to-dayimplementationandmanagementofourcompany’sfoodsafetyandqualityassuranceprograms.
Audits and Inspections
AllTysonFoods’productionfacilities,co-packers,customprocessors,distributioncenters,andsuppliersofingredientsandpackagingmaterialsarerequiredtocomplywiththegovernmentregulationsandcompanypolicies,procedures,
controls,andgoodmanufacturingpracticesapplicabletotheiroperations.Toensurecompliancewiththeserequirements,weconduct,andaresubjectto,anumberofauditsandinspections.Thisincludes,butisnotlimitedto:
•Self-auditsconductedbyfacilitymanagementteamsandfacility-basedFSQATeamMembers;
•InspectionsconductedbyvariousgovernmentagenciessuchastheU.S.DepartmentofAgriculture(USDA)FoodSafetyInspectionService(FSIS)andtheFoodandDrugAdministration(FDA);
•RoutineauditsconductedbycorporateFSQATeamMembers;
•Auditsconductedbycustomers;
•Annualauditsperformedbyanindependentthird-partyorganization;and
•Initialandannualthird-partyauditsofco-packersandcustomprocessors.
Duringfiscalyear2009,webeganimplementationofPlant.View™software,afoodsafetyandqualityassurancerecordkeepingapplication.ThePlant.ViewsoftwareguidesourFSQATeamMembersthroughprocesschecks,verifications,correctiveactions,andpre-shipmentreviews,thusimprovingourcompliancewithregulatory,company,andcustomerstandardsandrequirements.Specifically,itprovidesourfacilitieswithasinglesolutionforallproductionandqualitycontrol,customerspecification,andregulatorydatacollectionandreportingrequirements.Thiselectronicrecord-keepingsystemnotonlyimprovesfoodsafetybyreducingthechanceofhumanerror,ithasthepotentialtosavemorethan10tonsofofficepaperperyear.
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Ingredient Sourcing
Ourcommitmenttoproviding“the world with trusted food products”requiresustopartnerwithingredientsupplierswhosharethesamecommitment.Wespendmorethan$800milliondollarsannuallyfortherawingredientsthatarepartofourfinishedproducts.SincethemajorityofouroperationsarebasedintheU.S.,wepurchasemostofouringredientsfromU.S.-basedsuppliers.
Whilewedonotdisclose,forcompetitivereasons,specificdetailsaboutthesourceofouringredients,wedomaintainanextensiveingredient-supplierapprovalprocess.Thisprocessrequiresouringredientsupplierstocomplywiththeingredientspecificationswesetforth.Foreachrawingredientwepurchase,wehaveaspecificationfilethatprovidesinformationforensuringeachingredientmeetsourrequirementsfrombotharegulatoryandfood-safetyaspect.
Additionally,ouringredientsuppliersmustcomplywithfood-safetyregulationsandstandardsapplicabletotheiroperationssuchasthosesetforthbyUSDA,FDA,GoodManufacturingPractices(GMP),andHazardAnalysisandCriticalControlPoints(HACCP).Wealsorequireouringredientsupplierstomeetourstringentrequirementsrelatedto,butnotlimitedto:
•Certificatesofcontinuingguarantee;
•Packagingdescriptionsanddetails;
•Warehousingandstorageinformation;
•Namesandcertificationsofco-packersorco-suppliers;
•Documentationofvariouspractices,programs,andproceduressuchasgoodagriculturalpractices,fooddefenseprograms,pestcontrol,andrecallprocedures;
•Identificationofallallergens;and
•Koshercertification,whenapplicable.
Tofurtherensuretheingredientswereceivearesafe,oursuppliersmustverifytheycantracetheiringredientstotheirpointoforigin.Inaddition,inthespringof2008,ourFSQAdepartmentimplementedacomprehensiveingredientsupplierauditprogramthatestablishesamethodforassuringtheingredientsusedinourfoodproductsmeetregulatoryfood-safetyandqualitystandardsaswellasouringredient-supplierrequirements.Werequireannualthird-partyauditsforallingredientsuppliers.Moreover,ourFSQAdepartmentconductsrandomingredient-supplieraudits.AnyingredientthatdoesnotmeetoursafetyandqualityrequirementswillnotbeusedinaTysonFoods’product.
Controlling, Tracking, and Tracing Our Products
Ourgoalistobeworldclassinourabilitytotrackandtraceourproductsthroughoutourproductionanddistributionchannels.Infiscalyear2008,welauncheddevelopmentofourEnterpriseInventoryManagement(EIM)program.Thisprogramwillstrengthenourabilitytocontrolproductatbothplantanddistributionwarehousesbygivingourfood-safetyteamaglobalviewofinventoryandtheabilitytoholdorreleaseproductfromanywhereviaanInternetconnection.Itwillalsoallowourteamtoaccuratelytrackaproductthroughourproductionanddistributionprocess,andimproveour
abilitytotrace,bykeyindicatorssuchassupplierandbatchnumber,allingredientsthatareapartofafinishedproduct.
Shouldtheneedarise,itisimperativethatwecaneffectivelyandefficientlyidentifyandisolateaspecificproduct.OurEIMprogramprovidesboththeframeworkandtechnologythatnotonlyexecutesproductretrievalinatimelymanner,butalsohelpsusbettermanageouringredientsandproductinventories.Inaddition,ourEIMprogramwillprovidea:
•Real-time,globalviewofourproductinventorylevel,status,andavailability;
•Directlinktoinventoryforthesystematicholdingandreleasingofproduct;
•Processforquickactiontoresolveandreleaseordisposeofproductthathasbeenplacedonhold;
•Singledetailedreportoningredientsandthesourceofingredientsusedinaproduct;
•Mechanismforplacingfinishedproductsandincomingingredientsonholduntilallsafetyandqualitychecksarecompleted,ensuringtheymeetallapplicablerequirementsandspecifications;
•Computerizedprocess,withbarcodescanningcapabilities,thatreducesmanualproductandingredienttrackingprocessesandpaperwork;
•FoundationalsystemforotherbusinessareaswithinTysonFoodstoconnectto,whichwillcreateanindustryleadingEIMprogram;and
•Meansforensuringourproductsmeetcustomerrequirements,maintainconsumerconfidence,andprotectthetrustconsumershaveinTysonFoodsandourbrands.
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Product Recalls
Productrecallscanhappenformanyreasons,suchasproductmislabeling,theadditionofanincorrectingredientinaproduct,nonconformancetocustomerspecifications,orcontaminatedproducts.Inthesesituations,immediateactionmaybeessentialforprotectingthehealthoftheconsumer.
ItisforthisreasonTysonFoodsmaintainsaneffectiverecallpolicythatprovidesguidelinesforinitiating,investigating,andconductingproductrecalls.Ifwebecomeawareofasituationinwhichwesuspectaproductcouldadverselyaffectthehealthandsafetyofourconsumers,wewillinitiateavoluntaryproductrecalltocarryoutatimelyandeffectiverecoveryoftheproduct.
Inaddition,weconductmockrecallswithourprocessingfacilitiesandourdistributionteams.Mockrecallsprovideamethodologyforpracticingandevaluatingourabilitytorecallfinishedproducts,ingredients,andpackagingmaterialsinathoroughandtimelymanner.Theyalsohelpusidentifyopportunitiesforthecontinualimprovementofourrecallprocedures.
Duringfiscalyears2008and2009,weinitiatedoneproductrecall.InAugust2008,incooperationwithUSDA,wevoluntarilyrecalled51,360poundsofuncooked,foodservicechickenduetoanundeclaredsoy-basedallergenresultingfromalabelingerror.Whiletherewerenoreportedillnesseswiththisproduct,weinitiatedthisrecallasaprecautionarymeasure.Wemaintainstrictinternalcontrolsandprocedurestoprotectagainstpotentialallergenlabelingerrors.
Genetically Modified Organisms
Geneticmodificationisoftenusedincrops,suchascornandsoy,toimprovekeyproductionaspectsincludingyield,insectresistance,anddroughttolerance.Asthispracticehasbecomemorecommonandwidespread,customersandconsumershavebeguntoaskaboutthepotentialeffectsofgeneticmodificationonfoodsafety.AsnotedintheIngredientSourcingsectionabove,TysonFoods’onlyusesingredientsthatmeetthesafetyregulationssetforthbyUSDAandFDA.
TysonFoodsdoesnotcurrentlydistinguishbetweenGMOandnon-GMOwhenbuyinggrainandmealforthepurposeofblendingchickenfeed.Therehavebeendiscussionsbygrainsuppliersofsegregatingingredientsbyseedorigin;however,theproposedmethodsappeartobeinadequatetoinsurecasualcontactcanbeavoidedandthatingredientscanbeguaranteedasnon-GMO.SinceasignificantpercentoftheannualcornandsoybeancropsisofGMorigin,itislikelyweuseGMOgraininfeedforourchickens.Itisimportanttonotethatwehavenopreference,andtherearenoperformancedifferencesinGMOandnon-GMOinthemeat-conversionprocess.
Justasinourfeedingredients,themajorfinished-productingredientswithGMOquestionsarethosederivedfromcornandsoybeans.Sincesuppliersofbreadings,marinades,andspiceshaveonlyrecentlybeguntodiscusssegregationofingredients,wemustalsoassumethattheseproductscontainGMO.CommoningredientsthatcouldpotentiallycontainGMOarecornflour,cornmeal,cornstarch,cornsyrup,corngluten,soybeanoil,soyproteins,andsoymeals.
Webelievescienceissoundandsupportsthebeliefthatthecornandsoybeansusedinvirtuallyeverysegmentofthefoodindustryposenonearorlong-termhealthrisktotheconsumingpublic.Furthermore,thereisnoadvantageofanysortforTysonFoodsintheperformanceofeithersource.
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Ourcommitmenttofoodsafetydoesnotendwhenourproductsleaveourprocessingfacilities.Tohelpourcustomersandconsumersmakeinformedbuyingdecisions,westrivetoprovideaccurateandreliableingredientstatementsforourfoodproducts.OurRegulatoryLabelingComplianceandProductSpecificationsgroupensuresourproductsarepackagedandlabeledinaccordancewithourcorporateproductspecificationsandregulatoryrequirementsrelatedtoingredients,productformulation,nutritioninformation,andproductclaims,suchasnatural,wholegrain,zerotransfat,andreducedfat.
ThisgroupnotonlymaintainsaworkingrelationshipwithkeyTysonFoods’businessunits,suchasresearchanddevelopment,marketing,andfoodsafetyandqualityassurance,italsomaintainscollaborativerelationshipswiththeUSDA,FoodSafetyandInspectionService,FoodNutritionService,andAgricultureMarketingServicetoassuregovernmentalapprovalsforourpackagingandlabeling.
Overtheyears,thisgrouphasbeeninstrumentalinourimplementationofkeylabelinginitiatives,includingthemandatorynutritionlabelingdictatedbytheNutritionLabelingEducationActof1993.Thisgroupwasalsoinstrumentalinthecompany’sallergenlabelingefforts.Thereareeightfoodsthataccountfor90percentofallfood-allergicreactions:milk,eggs,peanuts,treenuts,soy,wheat,shellfish,andfish.Tohelpourconsumersmakeinformeddecisions,in2001–wellaheadoftheFoodAllergenLabelingandConsumerProtectionActof2004–weproactivelyinitiatedlabelingofpackagedproductsthatcontaintheseallergens.
Whenitcomestofoodsafetyinthehome,ourconsumersareincontrol.Wearecommittedtoofferingtoolsandresourcestohelpthemsafelyprepareandserveourproductsoncetheygetthemhome.Accordingly,wehavecreatedafoodsafetyandeducationprogramcalledfoodWISE®.Thisinformationresourceprogramprovidesourcustomersandconsumerswithtipsandinformationpertainingtofoodsafety.
•WeinviteourcustomersandconsumerstolearnmoreaboutourfoodWISEprogramatwww.tyson.com.
Ifourcustomersandconsumerswouldliketoaskusquestionsaboutourproductsdirectly,weencouragethemto“AskWillie.”WillieBarber,affectionatelyknowntousasMissWillie,hasworkedinthechickenindustryformorethan20yearsandforTysonFoodsastheManagerofConsumerInformationServicessince1989.WillieandherteamofConsumerInformationServicesrepresentatives,respondtocalls,letters,ande-mailsfromourcustomersandconsumers.Theserepresentativesaretrainedtorespondtoconcernsaboutfoodsafetyandquality,nutritionalcontent,foodstorageandpreparation,andnewproductlines.Variousexpertresourcesalsosupporttheserepresentatives.ThisincludesTysonFoodsTeamMemberswithdoctoratesinchemistry,microbiology,foodsciences,andnutritionandmembersofourfoodsafetyandqualityassuranceandmarketingdepartments.
5.2 suPPorting our CustoMers and ConsuMers
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Toensureadirectlineofcommunicationwithourfoodsafetyandqualityexperts,ourConsumerInformationServicesteamreportstoourcompany’sseniorvicepresidentofScienceandRegulatoryAffairs.
Ifaquestioncannotbeansweredimmediately,wewillrespondwithin48hoursviaphone,e-mail,orothercustomer-preferredmethod.Duringfiscalyears2008and2009,weheardfromapproximately230,000customersandconsumers.Themajorityoftheserequestsfocusedonthesafehandlingofourproducts,specificproductconcerns,corporateinquiries,andmarketingpromotions.Theideasandthoughtsofourcustomersandconsumersareveryimportanttous.Thisfeedbackhelpsensureweareprovidingthetaste,value,andconvenienceourcustomersandconsumerswant,andhelpsusmaintainafocusoncontinualimprovement.
Wearealsocommittedtoprovidingourcustomersandconsumerswithhelpfulinformationonmealideas,economicalproteinsolutions,andfeedingchildrenhealthyproteinproductstheylove.Atwww.tyson.com,consumerscanaccessTysonFoods’RecipeCentraland:
•Collectfivedaysofdinnerrecipes,whichchangeeachweek;
•Visitour10mostviewedrecipes;
•Findfoodtipsandtricksforkids;and
•Searchforrecipesbasedontherecipename,aspecificingredient,nutritionalrequirements,orthemealtypeoroccasion.
Allrecipesfeaturedonwww.tyson.comarepresentedwithnutritionalinformationbasedonservingsize.Eachrecipeisalsopresentedwithtimeestimatesrelatedtopreparation,marination,andcooking,aswellasservingsuggestionsandsubstitutiontips.Consumersalsohavetheopportunitytotelluswhattheythinkofourrecipesbysimplychoosingfromfivestars(verygood)toonestar(notverygood)andselecting“RateIt!”Theaverageofallvotesbecomestheratingfortherecipe.
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TysonFoodsisdedicatedtodevelopingabest-in-class,value-addedproductportfoliothatmeetstheneedsoftoday’schangingmarket.Byapplyingin-depthunderstandingofconsumerandcustomerneeds,analyticalskills,andstrategicthinking,wearepositionedattheforefrontofproductinnovation.Wewillcontinuetodemonstrateourcommitmenttoresearchanddevelopmentbycreatingnewandrelevantfoodsolutionsforyearstocome.
Discovery Center
InJanuaryof2007,weopenedthe100,000square-footDiscoveryCentertoenhanceourabilitytodevelopnewfoodsolutionsandbringthemtomarketfaster.TheDiscoveryCenter,locatedatTysonFoods’WorldHeadquartersinSpringdale,Arkansas,isthefocalpointforthedevelopmentofinsights,people,processes,andnewandinnovativeproducts.BringingtogetherTysonFoods’proteinresearchanddevelopmentintoasinglelocation,theworkspacewasdesignedtomaximizecommunicationandcollaborationwithknowledgeappliedacrosschicken,beef,andpork.BelowareseveralkeyhighlightsabouttheDiscoveryCenter.
Research Kitchens
TheDiscoveryCenterincludes19specializedresearchkitchensutilizing20,000squarefeetofcustom-designedspaceequippedspecificallyforthebusinessunitsandcustomerchannelsweserve.Allkitchensweredesignedformaximumtechnicalflexibilityandculinary
effectiveness,allowingourproductinnovatorstoworkinreal-worldenvironments.
Bydesign,thekitchenscanbecustomizedtomeettheneedsofanycustomer.Eachkitchencontainslightingandotherequipmentthatsimulatesthefoodserviceorretailfoodenvironments.Someofthekitchensareequippedwithoverheadcamerasandrecordingdevices.ThisgivesTysonFoodstheabilitytoallowcustomersandourmarketingandsalesTeamMembersaccesstoproductreviewsandfooddemonstrationsfromanylocationintheworld.
USDA-Inspected Pilot Plant
TheDiscoveryCenteralsoincludesa40,000-square-footmulti-protein,USDA-inspectedpilotplant.Theplantprovidesarealworld“testingground”toevaluatenumerouselementsintheproduct-developmentprocess.Inthisuniquefacility,wehavetheabilitytoreplicatenearlyeveryproductionprocessusingtheexactequipmentfoundinourprocessingplants.
Thepilotplantalsoeliminatesthedisruptions,inefficiencies,and“translationerrors”thatcanoccurduringnew-producttestingatproduction-planttrials,andreducestravelexpensesfor
TeamMembersinvolvedwithin-planttrials.Inkeepingwithbestpracticesforthesafetyofourguestsandourproducts,thepilotplantoffersaviewinggallerythatallowscustomersandgueststoobserveseveralsegmentsofpilotplantactivitywithoutenteringafood-safeenvironment.
Consumer Center
Whendevelopinganewproductorevaluatingtheuseofdifferentingredientsinacurrentproduct,itisimportanttoknowthethoughts,ideas,perceptions,andpreferencesoftheconsumer.TheDiscoveryCenteroffersanewConsumerSensoryPanelareaandConsumerFocusGrouplearningcenter.Theseareasprovidethecompanywithanopportunitytogainconsumerinsightpriortothereleaseofaneworimprovedproduct.
TheConsumerSensoryPanelareaincludes12individualsensorybooths.Theseboothsallowinternal,external,andexpertparticipantstosampleandevaluatesingleormultipleproductattributesincludingvisual,texture,taste,andaroma.Theparticipantsarethenabletoentertheirresponsesintoacomputer-basedsensoryevaluationsystem.OurR&Dteamcanthenquicklytabulateandevaluatetheresponses,resultinginaquickerproductdevelopmentprocess.
TheConsumerFocusGrouplearningcenterallowsforin-depth,one-on-oneorgroupdiscussionsregardingthemarketingactivityofanewproduct.Participantsarequeriedonvariousaspectsofaproposednewproduct,or
5.3 ProduCt researCH and develoPMent
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changestoanexistingproduct,togainconsumerinsights.Theabilitytolistendirectlytotheend-usertohelpcreatenewproductsiswhatenablesustomeettheneedsoftoday’schangingmarket.
Our Research and Development Staff
TheDiscoveryCenterishometothe120foodscience,productdevelopment,andculinaryprofessionalswhoarepartofourResearchandDevelopmentteam.Morethan40oftheseprofessionalsholdadvanceddegrees,including14withPhDs.Wehave16culinologistsonstaff,withanother50technologistsintrainingtobecomeResearchChefAssociationCertifiedCulinologists.Thistrainingprogram,developedbyJohnsonandWalesUniversityandtheUniversityofArkansas,isconductedonthecampusoftheUniversityofArkansastoeliminatetheneedfortravel.Thiswillallowtheproductdevelopmentteamtohaveawell-roundedunderstandingofboththeculinaryaspectandthecommercialviabilityofproducingaproduct.
New Product Development
Ourcurrentresearchindicatesmanyconsumersarelookingfordelicious,affordable,andhealthyproteinmealsolutions.Belowareexamplesofrecentproductreleasesdesignedtomeetconsumerneeds.
•Inearly2009,wereleasedourfoodserviceTyson®Right Size™Fillets.Madewithwhole-musclebreastmeat,thesebreadedandfullycookedfilletsareidealforbreakfast,lunchormiddaysnackmenuoptions,keepingconsumerseatingwellalldaywithinabudget.
•OurTrimmed and Ready®freshchickenisalineofpremiumcuts.Eachishandtrimmedandselectedtodeliverthehighestquality.Thereisnoadditionaltrimmingorhandlingrequiredbytheconsumer.
•Any’tizers®snacksarealineoffrozenappetizersreadyinjustminutes.Any’tizerssnackscanbeusedintheafternoon,asalightmeal,orasanappetizerforagathering.RecentadditionstoourAny’tizerslineincludefournewbolditemsthatallowtheconsumertoaddaslittleorasmuchoftheprovidedsaucepacketstotheAny’tizersproductastheywant.
•Wearealsorespondingtoconsumerdemandforminimallyprocessedfoodswithnoartificialingredients.Forexample,ourTysonNuggets,Patties,Tenders,andIndividuallyFrozenSplitCornishGameHensare100% All Natural.Theycontainnoaddedtransfat,noartificialingredients,nopreservatives,nofillers,andareminimallyprocessed.
Product Innovation Recognitions
TysonFoods’commitmenttoinnovationisevidencedbytheprestigiousproductinnovationrecognitionsandawardswereceive.
•TysonFoodsrankednumberoneintheCannondaleAssociates2008FoodservicEliteCompositeManufacturerRankingsforthesixthconsecutiveyear.
•Forthesecondconsecutiveyear,oneofournewproductsfinishedinthetopthreeforPrepared Foods Magazine’sSpiritofInnovationAwards.Our“tangle-shaped”andlightlybreadedchickenstriptookhomesecondplaceintheFoodserviceCategoryasMostInnovativeNewProduct.
•OurYankeePotRoastreceivedtheNebraskaBeefCouncil2008BestNewBeefProductaward,andourMongolianStyleBeefKitwithVegetablesreceivedthesameawardin2009.
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Ensuringthesafetyandqualityofourfoodproductsisonlyoneaspectofourcommitmentto“feeding our families, the nation, and the world with trusted food products.”Werecognizehealthandwellnessarealsoimportanttoourcustomersandconsumers,andthereisgrowinginterestinissuessuchaschildhoodobesityandhearthealth.Assuch,wearecommittedtoprovidingfoodproductsthatcontributetoahealthylifestyleandoffergreattasteandconvenienceforourcustomersandconsumers.
Ourcorporate-basedNutritionTeam,whichincludesbothregistereddietitiansandadvanced-practicenutritiontechnicians,createsandmaintainsnutritiondataforourproducts.Thisteamassuresourcompany’scompliancefornutritionlabeling,providesnutritionalguidanceduringnewproductdevelopment,createsandmaintainschild-nutritionsummariesforschoollunchandgovernmentfeedingprograms,andtrackscurrentandemergingnutritiontrends.OurNutritionTeamprovidesresponsestocustomerandconsumerinquiriesregardingnutritionalguidance,potentialallergens,andingredientinformation.
TysonFoodsoffersawiderangeofproteinchoicesthatincludesfresh,enhanced,andmarinatedchicken;beefandporkproducts;cannedchicken;andfullycookedproductstomeettheneedsoftoday’sconsumers,includingthosewatchingtheirintakeofcalories,sodium,totalfat,andtransfat.TheNutritionFactsPanelonourretailpackagesprovidesinformationforconsumerstohelpthemmakehealthfulchoices.Asrequired,thepaneloffersdetailsaboutsuchthingsasthefat,sodium,calorie,andcarbohydratelevelsofourproducts.Belowareexamplesofproductsthatoffercustomersandconsumersmorehealthfulfoodoptions.
100% All Natural
Wearerespondingtocustomerandconsumerdemandforallnaturalfoodswithnoartificialingredients.Forexample,ourTysonNuggets,Patties,andTendersare100% All Natural.Asshownontheproductpackaging,theseproductsareminimallyprocessedandcontainnoartificialingredients,nopreservatives,andnofillers.
5.4 ProMoting nutrition and HealtH
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Removal of Trans Fat
Keepingwithourtraditionofbeingfirsttooffercutting-edgeinnovation,webegantheprocessofremovingtrans-fatingredientsfromourfullycookedbreadedpoultryretailproductsin2004.Wemadethismoveinresponsetoconsumerandoperatorinterestinproductswithreducedtrans-fatcontent.Whilechickenproductsarenaturallylowintransfat,itcanbefoundincertainaddedingredients,suchasbreadingandcookingoils.ItisforthisreasonTysonFoodsdecidedtoreformulateitsentirebreadedpoultryportfolio.In2005,wecompletedtransfatremovalfromourretailfullycookedbreadedpoultryproductsandour“childnutrition”schoolfoodserviceproducts.Sincethe2007completionofouradditionalschoolfoodserviceitemreformulations,ourcompany’sentirelineofbrandedchickenproductscontainzerogramstransfatperserving.
Reducing Sodium
Recognizingthatmanyofourconsumersareactivelyengagedinpreventingandmanaginghealthconditions,TysonFoodsiscommittedtoprovidingfoodsolutionstohelpmeettheirgoals.Aspartofourcontinuingeffortstoprovidehealthfulfoodoptions,wehaveacorporate-wideinitiativefocusedonwaystolimittheuseofsodiuminourmeatandpoultryproductswithoutsignificantlyimpactingflavor.Thisinitiativeincludestheuseoftoolstohelpformulatenewandexistingproductsthatsupportourpositiononhealthandwellnessandsodiumreduction.Inaddition,weareworkingwithourFoodServicecustomerstoprovidelowersodiumproductstohelpwiththeirmenuplanning.
Children’s Nutritional Needs
AtTysonFoods,weputourheartsintocreatingthesafest,mostwholesomeproductsavailable,includingthoseweproduceforourFoodServiceK12schoolbusiness.Tyson®productsareperfectforschoolbreakfast,lunch,andsnackprograms.Infact,withTyson® Kid Tested, Kid Approvedproductsontheirmenus,schoolscanfeelconfidentservingproductsstudentslove.Wetastetestnewchickenandbeefproductswithstudentstogettheirfeedback.Thisprovenprocessallowsustoofferkid-endorsedproductsthathelpincreaseaschool’saveragedailyparticipationintheirmealprogram.
OurFoodServiceproductsforschoolsprovideacombinationoftastes,menuvariety,andfunkidswant,withthevalue,quality,consistency,andnutritiontheyneed.Asacompany,wehaveremovedallman-madetrans-fatingredientsfromourFoodServiceproductsforschools.Wehavedevelopedanutritionalplatformfornewproductdevelopment,whichensureslessthan35percentoftheproduct’stotalcaloriescomefromfatandthatthesodiumcontentperservingis400milligramsorlessperserving.
Studiesshowthateatingwholegrainsinsteadofrefinedgrainslowerstheriskofmanychronicdiseases.Whilebenefitsaremostpronouncedforthoseconsumingatleastthreeservingsdaily,somestudiesshowreducedrisksfromaslittleasoneservingdaily.Weofferbreadedchickennuggetsandpatties,eachwitheightgramsofwholegrainperserving,thatcarrytheWholeGrainStampfromtheWholeGrainCouncil(www.wholegrainscouncil.org/).Byincorporatingwhole-grainbreadinginourchickenproducts,itiseasierforchildrentoincreasewhole-grainintakeasencouragedbythe2005DietaryGuidelines.
Belowareexamplesofnewproductswelaunchedinfiscalyear2009fortheK12program.
•Tyson®AllNaturalChickenChunksmeetUSDAguidelinesfor100-percentall-naturallabeling.Thesechickenchunksareminimallyprocessedwithnoaddedflavorsoringredients.
•Tyson®Hot&SpicyWholeGrainChickenChunksofferninegramsofwholegrainperserving.
•OurFreshTyson®Burgeroffersstudentsanauthenticflame-broiled-tastingburgermadefromdomesticbeefthatis85-percentlean.
•OurMexican Original® Original Wraps®WholeGrain10-inchPressFlourTortillaWrapsprovide31gramsofwholegrainperserving.
Infiscalyear2009,webecametheonlybeefprocessortoparticipateintheUSDAAgriculturalMarketingServicesBeefPilotProcurementProgram.Throughouruniqueprocessfromprocurementtoproduction,weareabletoprocessfreshbeef,ondemand,fivedaysfromanimalharvestasopposedtoafrozen
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commodityburgerthatismadefromfrozenbeefwhichcantakeupto90daystoprocessandisfrozenandthaweduptothreetimes.TheFreshTyson®Burgerismadefromfreshbeefthatisprocessedinaslittleastwohoursandisfrozenasingletime.
WealsoworkcloselywiththeUSDACommodityProgramandtheUSDAagenciesatthefederalandstatelevelthroughtheFood&NutritionServices,FarmServiceAgency,AgricultureMarketingService,andFoodSafetyInspectionService,alongwithstatedistributingagenciesthroughstateandregionaloffices,toensuresafe,healthy,high-qualityfoodsforschoolnutritionprograms.Theseeffortshavealsobroughtmoreefficientandeconomicalsolutionstoschoolnutritionprograms.Forexample,whenschoolnutritiondirectorschooseTysonFoodstodiverttheirUSDAcommoditychickenandbeefintofoodskidsandteenswant,ourefficientsupplychainallowsdirectorsandschoolstosaveupto$10percaseofproductpurchased,decreasetheirstoragecosts,andbettermanagetimelyproductdeliveries.
Weareanactive,longtimesponsorandelectedboardmemberoftheSchoolNutritionAssociation,anational,nonprofitprofessionalorganizationrepresentingmorethan55,000memberswhoprovidehigh-quality,low-costmealstostudentsacrossthecountry.Specifically,theassociationensuresallchildrenhaveaccesstohealthfulschoolmealsandnutritioneducationby:
•Providingmemberswitheducationandtraining;
•Settingstandardsthroughcertificationandcredentialing;
•Gatheringandtransmittingregulatory,legislative,industry,nutritional,andothertypesofinformationrelatedtoschoolnutrition;and
•Representingthenutritionalinterestsofallchildren.
Toassurethatoursalesandmarketingprofessionalsarewellentrenchedintheschoolfoodserviceworld,wemaintainresearchanddevelopmentTeamMembersonourSchoolFoodServiceTeam,andeightofourSchool
FoodServiceTeamMembershaveearnedSchoolNutritionSpecialistcredentialsthroughtherigorousSNAoperatorcredentialingexamination.LearnmoreabouttheSchoolNutritionAssociationatwww.schoolnutrition.org.
ThroughthefoodWISE For Me™program,whichispartoftheTysonFoodsfoodWISE®educationalprogram,wehelpschoolscreatehealthymealsforstudentswhileincreasingstudentparticipationintheirschoolmealprograms.WealsoofferschoolfoodservicetrainingthroughTyson University™training.Tyson Universitytrainingisamultiple-daylearningexperiencefeaturingaccreditedtrainingcoursesandschoolfoodservicespecificcurriculum.Tyson Universitytrainingcoversvarioustopicssuchascommodityprocessing,wellness,nutrition,procurement,operations,andmanagementforschoolfoodservicedecisionsmakers.LearnmoreaboutthefoodWISE For MeprogramandTyson Universityatwww.tysonK12.com.
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Ourprincipalmarketingobjectiveistobetheprimaryproviderofchicken,beef,pork,andpreparedfoodsproductsforourcustomersandconsumers.Assuch,weutilizeournationaldistributionsystemandcustomersupportservicestoachievetheleadingmarketpositionforourproducts.Onanongoingbasis,weidentifydistinctivemarketsandbusinessopportunitiesthroughcontinuousconsumerandmarketresearch.
Inadditiontosupportingstrongregionalbrandsacrossmultipleproteinlines,webuildtheTyson®brandprimarilythroughwell-defined,product-specificadvertisingandpublicrelationseffortsthatarefocusedtowardkeyconsumertargetswithspecificneeds.TheseeffortsaredesignedtopresentkeyTysonFoods’productsaseverydaysolutionstorelevantconsumerproblems,therebygainingadoptionintoregulareatingroutines.Further,weuseacoordinatedmixofactivitiesdesignedtoconnectwithourcustomersandconsumersonbothrationalandemotionallevels.
Wedonotsellproductsthatarebannedincertainmarketsorproductssubjecttostakeholderquestionorpublicdebate.Pointofsaleandmarketingmaterials,aswellasadvertisements
usedbyallTysonFoods’businesses,receivethoroughinternalbusinessunitandlegalreviewtoensuretheaccuracyofeveryclaimmade.WeadvertiseinaccordancewithguidelinesfromtheFederalTradeCommission,aswellasthelabelclaimsshownonourproducts,whichareapprovedbytheU.S.DepartmentofAgricultureFoodSafetyInspectionService.
Ourprintadsaretargetedtoadults,includingparentsandsingle-personordual-personhouseholdswhopreparemealsathome.Westrivetoplaceourtelevisionadvertisementsingeneral-audienceprogrammingthatisfreefromgratuitousdisplaysofviolence,sex,andprofanity.Additionally,westrivetoensureourtelevisionadvertisementsareairedduringprogrammingthatdoesnotdisparageanyreligious,ethnic,orpoliticalgroupanddoesnotimplythecompanysupportsspecificpointsofview.WedonotadvertisetochildrenandwehavepoliciesinplacethatpreventchildrenfromprovidingpersonalinformationviaourWebsite.
5.5 resPonsible MarKeting and advertising
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Producingasafe,nutritiousfoodproductbeginswithensuringthehealthandwell-beingoftheanimalsweraiseandprocess.TysonFoodshasalong-standingcommitmenttothewell-beingandproperhandlingoftheanimalsusedinitsfoodproducts.ItisanexpectationexpressedinourCoreValues,whichcallforusto“serve as stewards of the animals, land, and environment entrusted to us.”Thisisnotonlytherightthingtodo;itisalsoanimportantmoralandethicalobligationweowetooursuppliers,customers,ourselves,andmostimportantly,totheanimalswedependonforourproductsandourlivelihood.
Ourcommitmenttoanimalwell-beinghelpsusmaintainthecriticalbalancebetweenensuringtheneedsofouranimalsaremetandprovidingourcustomersandconsumerswiththequalityfoodproductstheydeserve.CLICKHEREtoreviewourAnimalWell-BeingMissionStatement.
Our Office of Animal Well-Being
Aspartofourcommitmenttoanimalwell-being,weestablishedtheOfficeofAnimalWell-Beingin2000.KellyePfalzgraf,DVM,directsthisofficeandouranimalwell-beingprograms.Dr.Pfalzgrafhas34years’experienceinfoodanimalveterinarypractice.HeservedasaVeterinaryMedicalOfficerforU.S.DepartmentofAgriculture(USDA)FoodSafetyandInspectionServices(FSIS)inaporkslaughterfacility,andreceivedtrainingfromvariousspecialistsinthefieldofanimalwell-being,includingtheinternationallyrecognizedexpertDr.TempleGrandin.
InadditiontohisresponsibilitiesforTysonFoods,Dr.Pfalzgrafservesonnumerousanimalwell-beingcommitteesacrosstheindustry.Assuch,heisrecognizedasanindustryexpertintheareaofanimalwell-beingandregularlyprovidesguidanceandconsultationtomanyretail,foodservice,andtradeassociations.
Specifically,theresponsibilitiesofthisofficeinclude:
•Advisingourexecutiveandmanagementteamsonanimalwell-beingissues,andworkingdirectlywithcustomersandtradegroupsontheseissues;
•Advisingproducerorganizationsinthedevelopmentofanimalwell-beingguidelines,self-assessments,auditcriteria,andthedeterminationofacceptablelimits;
•Performingrandomanimal-handlingauditsatTysonFoods’slaughterfacilities,andtrendingmonthlyinternalauditresults;
•Developinganimalwell-beingtrainingvideosandwrittenmaterials,andensuringfacilitiesconducttrainingsessionswithTeamMembersthathandleliveanimals;and
•Presentingprogramsanddescribingcompanyandindustryanimalwell-beingpracticestoprofessional,producer,customer,andconsumergroups.
5.6 aniMal Well-being
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Animal Well-Being Programs and Practices
Wehavedevelopedandimplementedanimalwell-beingprogramsandpracticesforallsegmentsofourbusiness:chicken,beef,andpork.TheprogramsconsistoftrainingforTeamMembersthathandleandworkwithliveanimals;on-goingprocessmonitoring;andinternalandthirdpartyauditsandreviews.Whiletheseprogramsandpracticesdifferbasedontheanimal,webelievetheydemonstrateourproactivecommitmenttotheproperrearing,handling,andslaughterofchickens,andthehandlingandslaughterofcattleandswine.Belowareexamplesofspecificprogramsandpracticeswehaveimplemented.
Chicken Well-Being
AllTeamMembersworkingwithlivechickensarerequiredtoattendannualchicken-handlingclasses.TheymustsuccessfullypassawrittentesttoassuretheirunderstandingofproperhandlingtechniquesandsignanagreementtocomplywiththeTysonFoodschickenwell-beingrequirements.Postersandsignsarepostedinvariousareasthroughoutourfacilities
toremindTeamMembersofourcommitmenttoanimalwell-being.TeamMembersfoundinviolationofanyoftheserequirementsaresubjecttodisciplinaryaction,uptoandincludingtermination.
Additionally,bestpracticesystemassessmentsandchicken-handlingauditsareimplementedinourhatcheriesandchickenslaughterfacilities.Facilitymanagementteamsconductweeklychicken-handlingwell-beingauditsinaccordancewiththeNationalChickenCouncil’sAnimalWelfareGuidelinesandAuditChecklist,andfacility-basedFoodSafetyandQualityAssurancetechniciansconductmonthlychicken-handlingwell-beingverificationauditsinourslaughterfacilities.Inaddition,auditsareconductedannuallybyvariouscustomersaswellasprofessionalauditingcompaniestrainedinanimalwell-beingauditing.Allauditresults,includingbothinternalandexternalresults,aresenttoourOfficeofAnimalWell-Beingformonitoringandtrendanalysis.
Beef and Swine Well-Being
TeamMembersworkingwithliveanimalsmustbeTrainedAnimalHandler(TAH)Certified.Thiscertificationconsistsofafour-stageprogramrequiringcompletionofaprofessionallydevelopedtrainingclassonanimalhandlingandstunning.CertifiedTeamMembersmustsuccessfullypassawrittentesttoassuretheirunderstandingofproperhandlingtechniques,andsignanagreementtocomplywiththeTysonFoodsbeefandswinewell-beingrequirements.Annualrecertificationisrequired.Aswithourchickenwell-beingprogram,TeamMembersfoundinviolationoftheserequirementsaresubjecttodisciplinaryaction,uptoandincludingtermination.
WealsomaintainRiskAssessment,Control,andEvaluation(RACE),aprogramthatislikeaHazardAnalysisandCriticalControlPoint(HACCP)programforanimalwell-being.Theseprograms,coupledwithoversightreviewsfromourinternalcorporatemanagementteam,areoverandabovetheregulatoryrequirementsofUSDAasmandatedintheHumaneSlaughterActof1978.
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Wealsomaintainanextensiveanimalwell-beingcommunicationandauditprograminourbeefandporkprocessingplants.Thisincludes:
•ThepostingofsignsinanimalreceivingandhandlingareasremindingTeamMembersofourcommitmenttoanimalwell-being;
•Videosurveillanceofanimalhandlingandstunningareas;
•Insensibilityauditsatkeyareasareconductedbyfacilitymanagementoneveryshift;
•Eachslaughterfacilityhasaninternalanimalwell-beingteamthatreviewsauditresultsandimplementsenhancementstoimproveanimalhandlingpractices;
•Facilitymanagementconductsquarterlyyard-conditionanddriver-transportationaudits;
•Weeklyinternalanimalwell-beingauditsateachbeefandporkprocessingplantconductedinaccordancewiththeAmericanMeatInstitute’sAnimalWelfareGuidelines;
•Facilitymanagementperformssemi-annual,in-depthanimal-well-beingaudits,andthe
resultsoftheseauditsarereportedtocompanyexecutives;
•TysonFoods’OfficeofAnimalWellBeingconductsrandom,in-depthslaughterfacilityauditsforanimalhandlingannually,consultingonanyissuesidentified;and
•Third-partyauditsareconductedroutinelybyindependentprofessionalstrainedinanimalwell-beingauditingpractices.
Inaddition,weengagewithouranimaltransportationpartners,independentchickenproducers,andvariousindustryassociationstopromotefurtherprogramsandpracticesaimedatanimalwell-being.Becausewepurchaseourbeef,andmostofourpork,fromindependentproducersontheopenmarket,wehavelesscontroloftheseanimals’well-beingpriortoprocessing.Westillstrive,however,toensuretheirwell-beingismaintainedfromthefarmtoourfacilities.Forexample,weonlybuyhealthyanimals.Additionally,weprovidemanualswhichrecommendgoodmanagementandwell-beingpracticestothedriverswhotransportliveanimalstoourplants.Wealsohave
managementpositionscertifiedtotraindriverswhohaulswineintheTruckerQualityAssuranceprogramdevelopedbytheNationalPorkBoard.
Key Animal Well-Being Topics Raised by Stakeholders
Wearecommittedtoevaluatingandmanagingtheanimalwell-beingissuesofgreatestconcerntoourstakeholders.Belowweprovideinsightintoourmanagementapproachregardingsomeofthemostcommonquestionsorconcernsraisedbyouranimalwell-beingstakeholders.
Housing of Broiler and Breeder Chickens
Wedonotraiseourbroilerchickensincagesorourbreederchickensthatlaytheeggsthathatchandbecomethebroilersforourfoodproducts.Bothourbroilerandbreederchickensareraisedinopenbarnsor,aswecommonlyrefertothem,houses.Thesehousesofferadequateventilationandlighting,asmostareequippedwithcurtainsthatareraisedduringgoodweather,allowingfornaturallightandfreshair.Theyarealsoequippedwithautomatedsystemsthatdeliverfeedandwatertothechickensonanas-neededbasis.Thefloorofa
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houseiscoveredwithplant-basedmaterials,suchasricehulls.Thehousesprovideacomfortableenvironmentinwhichthechickenscanmovefreelywithprotectionfrominclementweather,extremetemperatures,disease,andpredators.Wemaintainstrictpoliciesregardingthelocation,size,andstockingdensityofthehousesusedtoraiseourchickens,forbothcompany-ownedhousesandindependentproducerhouses.Thesemeasuresarecriticaltoensuringthehealthandbiosecurityofourchickensandthequalityofourfoodproducts.
Gestation Stalls for Sows
Wemakeanimalwell-beingdecisionsbasedonbestavailablescientificresearchandtherecommendationsofanimalwell-beingexpertsintheindustry.Currentinformationindicatesthereareseveraltypesofproductionsystemsthatarefavorableforpigs,includingopenpens,gestationstalls,andopenpasture.Accordingtopublishedstudies,themostimportantconsiderationistheindividualcaregiventoeachanimalandthecaretaker’smanagementandhusbandryskills,regardlessofthesystemused.Furthermore,theAmerican
VeterinaryMedicalAssociationandtheAmericanAssociationofSwineVeterinarianshavereviewedtheexistingscientificliteratureongestationalsowhousingandhavepublishedpositionstatementsthatconcludedindividualandgrouphousingsystemsbothhaveadvantagesanddisadvantages.Forthisreason,wewillcontinuetopurchasepigsfromproducersusingbothindividualandgrouphousingsystems,whilewecontinuetomonitorthescientificliteratureregardinggestationhousing.
Physical Alteration of Chickens
Aswithmanyanimalsthatliveortravelinflocksandherds,broilerchickensnaturallyestablisha“peckingorder.”Thisnaturalbehaviorcanleadtoinstancesofundesirablebehaviorssuchasinjuriouspeckingandclawing,andsometimescannibalism.Wedonotpracticebeaktrimmingortoetrimminginbroilers,nordoourindependentpoultryproducers.Instead,wecarefullymonitortheconditionsandstockingdensitiesofourcompany-ownedandindependentproducerbroilerhousestominimizefighting,featherpecking,andothernegativebehaviors.
Stunning Methods
Wecontinuetoevaluateoptimalmethodsforstunninganimals.In2006,weconcludedastudyevaluatingtheeffectivenessofControlledAtmosphereStunning(CAS).Duringthestudy,weconsiderednumerouskeyfactorsincluding,butnotlimitedto,animalwell-bring,foodsafety,productquality,workplacesafety,andotheravailablescientificresearch.Basedonourstudy,webelieveCASmaybeanacceptablealternativetoconventionalelectricalstunning;however,wedonotconsiderittobemorehumane.
Safe Transport
Thetransportofanimalstotheprocessingplantisanimportantanimalwell-beingissue.Researchshowsthat,inadditiontonumerouswell-beingbenefits,carefulandquietanimalhandlingduringloading,transport,andunloadingcanproducemeatqualitybenefitsaswell.Itisforthesereasons,inthespringof2010,wewillimplementtheAmericanMeatInstituteTransportationAuditGuidelinesforCattleandHogsatallourbeefandporkprocessing
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facilities.Theseguidelinescontaintwosetsofauditcriteriarelatedtoanimalwell-beingduringtransport.Thefirstsetofauditcriteriaevaluatesaprocessingfacility’spoliciesandpreparednessforreceivinganimalsincludingminimizationofwaittime;weather,environmentalandemergencymanagementplans;acceptablehandlingtools;non-slipflooring;adequatelighting;andthestaffavailabletoreceiveanimals.Thesecondsetofauditcriteriafocusesontheset-up,loadingandunloading,timelyarrival,andconditionofthetrailersusedtotransporttheanimalstotheprocessingfacility.Webelievetheimplementationoftheseguidelineswillbetterenableustoidentifyopportunitiesforcontinualimprovementwithregardstotheloading,transport,andunloadingofourcattleandhogs.
Chicken Health
TysonFoodsworkshardeverydaytoearnandmaintainconsumertrust.Weknowthatthehealthiestchickensproducethebestproducts.Wealsoknowthatanimalhealth,justlikehumanhealth,dependsonahealthydiet,good
preventivehealthpracticesandasafeandcomfortableenvironment.Westrivetoprovidealloftheseelementstoourchickens,allofthetime.Wedothisincooperationwithmorethan5,700familyfarmswithwhomwecontracttoraiseourchickens.Andweemployspeciallytrainedandlicensedveterinarianstoguideourbreeding,feedingandwell-beingpracticestobesurewearefollowingthelatestprofessionalguidance.
TysonFoodsonlyusesfeedingredientsapprovedbytheU.S.FoodandDrugAdministration(FDA)andadministersthemonlyaccordingtoveterinaryassessmentsandunderveterinarysupervision.Eachflockofbirdsandgrow-outlocationtypicallyhasdifferentanimalhealthneeds.Asaresult,wemayusedifferentanimalhealthproductsandfeedformulationsatdifferentlocations,accordingtothebirds’needs.Justlikeourfinishedproductrecipes,ourfeedformulationsareproprietaryandmayvaryfromcomplextocomplex,andevenseasonally.Wedonotdisclosespecificfeedformulationsforspecificgrow-outlocationstothepublic.However,wecansaythatallFDA-
approvedantibioticsandantimicrobialsmaysometimesbeusedbyTysonFoodsforthewell-beingofourchickens.
TysonFoodsalsocomplieswithfederalregulationsprohibitingtheuseofaddedhormonesorsteroidsinanychickenproduct.
Cattle and Hog Health
TysonFreshMeatsiscommittedtoproducingwholesome,unadulteratedmeatproductsforconsumers.Whilewedonotraiseourowncattleorhogs,wedopurchaselivestockfrommultipleindependentfarmers,andweforgepartnershipswiththoseproducers,dealers,andmarketerstoachievethegoalofsafe,wholesomefoods.
ItisaviolationofFederalFood,DrugandCosmeticAct(FFDCA)toselllivestockforslaughterthatmaycontaindrugresiduesorchemicalsthatexceedtolerancesinmeatestablishedbytheU.S.FoodandDrugAdministration(FDA).TheU.S.DepartmentofAgriculture’s(USDA)FoodSafetyInspectionService(FSIS)ResidueMonitoringProgramtestsmeatandanimalorganstoensurethat
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livestockproducershavefollowedsafeproductionmethodsregardinganypharmaceuticaluse.USDAinspectorsvisuallycheckeachanimalatthepackingplantforsignsthattheyweremanagedwithsafeproductionmethodsregardinguseofveterinarydrugsandhormones.Intherareinstanceofaviolativedrugresiduefinding,theanimal’scarcassandallpartsarecondemned.Insuchcases,USDAnotifiesFDAoftheviolation,andFDAinturncontactsthelivestockproducer.
TysonFreshMeatssupportstheeffortsoftheNationalCattlemen’sBeefAssociation(NCBA)andtheNationalPorkProducersCouncil(NPPC),whichstresstheimportanceofproducerscontrollingdrugresiduesintheirlivestock.Aunifiedcommitmenttoanimalhealthhelpsmaintainthecriticalbalancebetweenensuringtheneedsofouranimalsaremetandprovidingourcustomersandconsumerswiththequalityfoodproductstheydeserve.
Cloned Livestock
TysonFoodscurrentlyhasnoplanstopurchaseclonedlivestock,asitwilllikelybealongtimebeforesuchanimalswouldevenbeavailableformarket.Anymeasuresweultimatelytakewillbeguidedbygovernmentregulationsandthedesiresofourcustomersandconsumers.
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TysonFoods’directandindirecteconomicimpactsareanimportantaspectofourcompany’ssustainabilityperformance.Werecognizeourfinancialperformancecanbebothpositivelyandnegativelyinfluencedbykeyfactorswhichinclude:
•Commoditypricesandtheavailabilityofrawmaterials;
•Marketdemandandthepriceswereceiveforourproducts;
•Livestocksupplyandconditions;
•TeamMemberrelations;
•Productsafetyandquality;
•Domesticandinternationalgovernmentregulations;and
•Factorsorforcesbeyondourcontrol,suchasnaturaldisastersandextremeweather.
Toensureoureconomicimpactsarepositive,wearecommittedtocapitalizingonstrategicopportunitiesandtoaggressivelymanagingpotentialrisks.Wearecommittedtoconductingourbusinessinaccordancewithbestpracticesincorporategovernance,andtopreservingandenhancingourrelationshipwithourshareholders.
Moreover,withourtalented,diverse,andhigh-performingteam,westrivetodriveperformanceinawinning,highlyaccountableculture
reflectiveofourCoreValues.Forexample,wearefindinginnovativewaystoconvertanimalbyproductsintohigh-margincommercialproducts,andwearecommittedtobuildingamultinationalenterprise.Weseeourengagementinthepolicyandpoliticalprocessasanimportantpartofcorporatesustainability,andweworkdiligentlyonregulatoryandlegislativepolicyissuesthatcanimpactourbusiness.Inshort,atTysonFoods,wearefullycommittedtoourCoreValuestatement:“We strive to earn consistent and satisfactory profits for our shareholders and to invest in our people, products, and processes.”
6.0 ProFits
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TysonFoodsiscommittedtobestpracticesincorporategovernance.Webelievemaintainingqualified,independentdirectorsontheBoardofDirectorsisanintegralpartofeffectivegovernance.ThefunctionsofChairmanoftheBoardofDirectorsandChiefExecutiveOfficer(CEO)havebeenseparatedsince2006.TheBoardhasappointedanon-managementleaddirectortopresideoverexecutivesessionsoftheindependent,non-managementdirectors.
Corporate Governance
Since1998,thepercentageofindependentdirectorshasincreased,whiletheoverallsizeoftheBoardhasdecreased.Oftheninedirectorscurrentlyserving,sixareindependent.Additionally,attheendofDecember2009,wehadfivefemalesandsevenminoritiesservingonourgovernancecommittees,andonefemaleandthreeminoritiesservingontheBoardofDirectors.OftheTeamMembersservingontheBoardandgovernancecommittees,twentyarebetweentheageof30and50,andthirteenareovertheageof50.Wealsomaintaintenexecutiveofficersofthecompany.Oftheofficerscurrentlyserving,fourarebetweentheagesof30and50;sixare50orolder.Oneisfemale,andoneisaminority.
Director Qualifications and Nominations
TysonFoodsvaluesthediversethoughts,backgrounds,skills,andcharacteristicsofourdirectors.Asapartofthegovernanceandoversightprocess,theNominatingCommitteeisresponsibleforidentifying,evaluating,andrecommendingindividualsqualifiedtobedirectors.Whiletherearenospecificminimumqualificationsthatapotentialnomineemustpossess,theNominatingCommitteeselects
directornomineesfor,butnotlimitedto,theirintegrity,independence,diversityofexperience,businessorotherrelevantexperience,leadership,andtheirabilitytoexercisesoundjudgment.Ourcompany’scurrentdirectorsbringbroad-basedexperiencerelatednotonlytofoodproductionbutalsoinvestments,healthcare,education,andmarketing.
Ifneeded,theNominatingCommitteewilldrawontheexpertiseofthemanagementandcorporatestaffand,whenappropriate,mayhireoutsideadvisorstoassistintheidentificationandevaluationofdirectorcandidates.Inaddition,theNominatingCommitteemay,butisnotrequiredto,considershareholderrecommendationsforcandidatestotheBoard.InordertorecommendacandidatetotheBoard,shareholdersandotherinterestedpartiesmaydirectcommunicationstoindividualdirectors,includingtheleadindependentdirector;toaBoardcommittee;tothenon-managementdirectorsasagroup;ortotheBoardasawhole,byaddressingthecommunicationtothenamedindividual,thecommittee,thenon-managementdirectorsasagroup,ortheBoardasawhole,c/oTysonFoods,Inc.,Attention:Secretary,2200DonTysonParkway,Springdale,AR72762-6999.ShareholderswhowishtoformallynominateacandidatetotheBoardmustfollowtheproceduresdescribedinourby-laws.
Board Committees
Wemaintainfourboardcommittees,includinganAuditCommittee,CompensationCommittee,GovernanceCommittee,andNominatingCommittee.ThesecommitteesarechairedbyanindependentmemberoftheBoardof
Directors.Thecommitteesalsoconsistofatleastthreedirectors,eachofwhommeetstheindependencerequirementsoftheNewYorkStockExchangeandareappointedbytheBoardofDirectors.ThroughaclearlyarticulatedsetofCorporateGovernancePrinciplesandcommittee-specificcharters,thedirectorsareresponsibletosettheoverallgovernancetoneandexercisetheirbusinessjudgmenttoactinwhattheyreasonablybelievetobeinthebestinterestsofthecompanyanditsshareholders.Toreviewourcommitteecharters,CLICKHERE.
Shareholder Communications
Shareholdersandotherinterestedpartiesmaydirectcommunicationstoindividualdirectors,includingtheleadindependentdirector;toaBoardcommittee;tothenon-managementdirectorsasagroup;ortotheBoardasawhole,byaddressingthecommunicationtothenamedindividual,thecommittee,thenon-managementdirectorsasagroup,ortheBoardasawhole,c/oTysonFoods,Inc.,Attention:Secretary,2200DonTysonParkway,Springdale,AR72762-6999.
Inaddition,thecompany’sby-lawsprescribehowproposalsofshareholders,intendedtobepresentedatanannualmeeting,mustbereceivedbythecompany.Tobesoincluded,aproposalmustalsocomplywithallapplicableprovisionsofRule14a-8undertheSecuritiesExchangeActof1934.
TheBoardhasadoptedCorporateGovernancePrinciples,andtheAuditCommittee,CompensationCommittee,NominatingCommittee,andGovernanceCommitteehaseachadoptedawrittencharter.TheBoardhasalsoadoptedaCodeofConductapplicableto
6.1 CorPorate governanCe and CoMPlianCe
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alldirectors,officers,andTeamMembers.CopiesofthesecorporategovernancedocumentsareavailableonourInvestorRelationsWebsiteathttp://ir.tyson.comunder“InvestorRelations”orinprinttoanyshareholderwhosendsarequestto:
TysonFoods,Inc.Attention:Secretary2200DonTysonParkwayMailStopCP004Springdale,AR72762-6999
Uponwrittenrequestofanyshareholder,thecompanywillfurnishacopyofourAnnualReportonForm10-K,asfiledwiththeSecuritiesandExchangeCommission,includingthefinancialstatementsandschedulesthereto.ThewrittenrequestshouldbesenttotheSecretary,atthecompany’sexecutiveoffice.Thewrittenrequestmuststatethepersonmakingtherequestwasabeneficialownerofcapitalstockofthecompany.Inaddition,theAnnualReportonForm10-K,includingthefinancialstatementsandschedulesthereto,areavailableonthecompany’sInvestorRelationsWebsiteathttp://ir.tyson.com.
Compensation and Performance
InaccordancewithourCoreValues,wearecommittedtocreatingvalueforourshareholders,andwestrivetoearnconsistentandsatisfactoryprofitsforourshareholders.TheCompensationCommitteeoftheBoardofDirectorssupportstheBoardandworkswithmanagementtoensurekeyexecutivesarecompensatedinaccordancewithmanagementphilosophy,companyperformance,competitivepractice,andregulatoryrequirements.Thiscommitteewillnormallymeetfourtimesperyear,inconjunctionwithregularmeetingsoftheBoard,
tocarryoutitsresponsibilities.Thecommitteereviewsandprovidesoversightwithrespecttothecompany’scompensationstrategy,corporategoals,andobjectivesrelevanttomanagementcompensation.Thisapproachensuresourcompany’scompensationphilosophysupportsbusinessobjectives,createsshareholdervalue,isconsistentwithshareholderinterests,andattractsandretainsthekeyexecutivetalentourcompanyrequires.Additionally,thisapproachemphasizescompany,businessunit,andpersonalperformance,thuscreatingasignificanttiebetweenthecompany’sfinancialperformanceandakeyexecutive’spotentialcompensation.
TysonFood’sBoardofDirectors,underthedirectionoftheGovernanceCommitteeandtheleadindependentdirector,conductsanannualself-evaluationtodeterminewhethertheBoard,itscommittees,andthedirectorsarefunctioningeffectively.TheassessmentfocusesonthecontributionoftheBoardandeachofitscommittees,andspecificallywillfocusonareasinwhichtheBoardormanagementbelievestheBoardanditscommitteescouldimprove.TheBoarddoesnotmaintainaseparateprocessforevaluatingitsperformancewithrespecttoeconomic,environmental,andsocialperformance.
Avoiding Conflicts of Interest
TysonFoodsrespectstheBoardofDirectors’andTeamMembers’rightstomanagepersonalinterestsandrelationships.Atthesametime,TysonFoodsexpectseachpersontoavoidpossibleconflictsofinterestwithTysonFoods’businessandavoidusingtheirroleorpositiontoachievepersonalgain.Asapartofthegovernanceandoversightprocess,theGovernanceCommitteeperiodicallyreviewsandapprovescertaintransactionsbetween
TysonFoodsandofficers,directors,oraffiliatesofTysonFoods.Additionally,allTeamMembersareexpectedtoproperlydiscloseanddocumentcertaininformationregardingallpersonalandfamilyinterests,businesses,property,investments,andobligationsthataffect,orcouldbeperceivedtoaffect,theirjobdutiesorthereputationofTysonFoods.
Compliance
TysonFoodsperformsregularComplianceRiskAssessments.TheseassessmentsareconductedinanefforttocreateaninventoryofTysonFoods’compliancerisks,measurethelikelihoodandsignificanceofacomplianceviolationspecifictoaparticularrisk,gaugetheeffectivenessofmanagement’seffortstomanagetherisk,andoffersuggestionsforimprovement.Thecompany’spotentialcompliancerisksareasareidentifiedbasedonthefollowingconsiderations:
•KnownlawsorregulationsthatapplytoTysonFoods’business;
•Standardsprovidedbythecompany’sCodeofConductandothervoluntarycodes;
•LegalandcompliancerisksdisclosedinTysonFoods’10-K;
•Previouscomplianceallegations,violations,enforcementactions,orsettlements;
•Areasofcomplianceriskpreviouslyidentifiedbyinternalorexternalauditors;
•Industryenforcementandlitigationtrends;
•Allegedcomplianceviolationsbycompetitors;
•LinemanagementorTeamMemberviewsofknownissues;and
•Businesspracticesthathavebeencriticizedbythemediaornon-governmentorganizations.
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AsaresultofourComplianceRiskAssessments,wehaveidentified15potentialareasofcompliancerisk.Thisincludesanimalwelfare;anti-trust;commodity-tradingriskmanagement;conflictsofinterest;TeamMembersafety;employmentpractices;environmentalcompliance;foodsafetyandqualityassurance;governmentrelations;internationalbusinesspractices;liveproduction;recordretention;SecuritiesandExchangeCommission,financialreporting,andcorporategovernance;safeguardingassets;andtransportation.
Tyson Foods’ Compliance Organization
In2006,TysonFoodsestablishedaComplianceOrganization.ThepurposeoftheComplianceOrganizationistoestablishandmaintainacohesiveandeffectivecomplianceprogramthatmeetsorexceedstheelementsoftheFederalSentencingGuidelines.ThisprogramconsistsofactivitiesimplementedbyTysonFoodstomanageandmitigateitscompliancerisks.Inshort,theobjectivesoftheComplianceOrganizationareto:
•UnderstandTysonFoods’compliancerisksandmanagement’sresponsetothoserisks;
•Developcomplianceeducationandtraininginanefforttominimizecomplianceissues;
•Implementinvestigativeprotocolsfortheresolutionofcompliancerelatedissues;and
•Asappropriate,communicateandreportcomplianceactivitiestoseniormanagementandtheAuditandGovernanceCommitteesoftheBoardofDirectors.
TheComplianceOrganizationismanagedbythecompany’sChiefAuditandComplianceOfficer,inconsultationwiththeGeneralCounsel.TheChiefAuditandComplianceOfficerhas
overallresponsibility,management,andauthorityfortheComplianceProgram,includingstructure,scope,resources,andinitiatives.Additionally,theComplianceOrganizationandtheChiefAuditandComplianceOfficeraresupportedbyaComplianceDirector,whoisresponsibleforthedailyadministrationoftheComplianceProgram.TheAuditandGovernancecommitteesoftheBoardofDirectorsreceivesregularreportsfromtheComplianceOrganizationandmonitorstheComplianceOrganization’sprogramdesign,implementation,andeffectivenessasdefinedintheircommitteecharters.
Compliance Coordination Committee
TysonFood’sComplianceCoordinationCommittee,whichincludescomplianceriskowners(seniorlevelmanagerswhohavebeendesignatedasresponsibleindividualswithrespecttospecifictypesofcompliancerisks),theComplianceOrganization,theOfficeofGeneralCounsel,selectbusinessunitleaders,andotherdesigneesasappropriate,meetsquarterly.TheprincipalactivitiesoftheComplianceCoordinationCommitteearetoidentifyopportunitiestostrengthenTysonFoods’approachtocomplianceriskmanagement;cascadeandcommunicateinformationaboutcompliance-relatedpolicies,processes,proceduresandinitiativestotheirareasofresponsibility;educateothercommitteemembersontheriskchallengesandstrategicobjectivesoftheirbusinessunits;sharedetailedcomplianceinformationwiththecommitteemembers;implementreliableprocessestostrengthencomplianceriskmanagementwithintheirbusinessunits;andparticipateinallaffairsofthecommittee.
Our Executive Compliance Committee
WealsomaintainanExecutiveComplianceCommittee.ThiscommitteeprovidesdirectionfortheComplianceOrganization,andconsistsoftheCEO,theCEO’sdirectreports,andotherdesigneesasappropriate.TheExecutiveComplianceCommitteeprovidesoversightandapprovaloftheinitiativesoftheComplianceOrganization;approvescertaincompanypolicies,proceduresandstrategiesrelatedtocomplianceriskmanagement;reviewscomplianceriskassessments;andallocatesnecessaryresourcestoimprovecomplianceeducation,processes,andtechnologies.
Preventing Corrupt Business Practices
TysonFoodsvaluesthefoundationuponwhichwehaveestablishedourethicsandcomplianceprogram,including:
•OurCoreValuesandCodeofConduct;
•Anethicalcultureof‘doingwhat’sright’;
•Comprehensivegovernanceoversightandaccountability;
•Thedevelopmentandimplementationofapplicablepoliciesandprocedures;
•Extensiveeducationandcommunicationstrategies;
•Internalcontrolsandauditingpractices;and
•Confidentialreportingmechanisms.
Thisfoundationisapplicabletoallofouroperationsandbusinessunits.Periodicandmeaningfulriskassessmentshelpussustainandcontinuallyimprovetheoverallperformanceandstrengthofourethicsandcomplianceprogram.Forexample,asaresultoftheseassessments,wehavedevelopedresources,training,andinternalcontrolsthathelpmanage
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risksintheareasoffraud,corruption,andmisconduct.Inparticular,ouranti-corruptionprocesseshaveevolvedasourinternationalpresencecontinuestogrow.ItnowincludesestablishedprotocolsthatreachTysonFoods’distributors,consultants,andbrokers.
Additionally,in2008,allbusinessunitleadersandkeypersonnelinvolvedinourInternationalgroup’sbusinessreceivedtrainingonanti-briberyandanti-corruptionlawsaswellasinternalproceduresandexpectations.In2009,throughablendedlearningprocessofbothWeb-basedandfacilitator-ledtraining,weexpandedthisefforttoincludeallmanagementTeamMembers.
Precautionary Approach
The“precautionaryprinciple,”asdefinedbyArticle15oftheRioPrinciplesestablishedattheUnitedNationsConferenceonEnvironmentandDevelopmentin1992,statesthat“wheretherearethreatsofseriousorirreversibledamage,lackoffullscientificcertaintyshallnotbeusedasareasonforpostponingcost-effectivemeasurestopreventenvironmentaldegradation.”TysonFoodsevaluatesandmanagesenvironmentalrisksunderitsEnvironmentalManagementSystem.Thisapproachincludesdataandguidancefromenvironmentalregulatoryagencies,academia,andindustryassociations.
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Withourtalented,diverse,andhigh-performingteam,wewilldriveperformanceinawinning,highlyaccountableculturereflectiveofourCoreValues.Wecontinuetomanageourcompanyforthelongtermbyfocusingonourfourstrategies,whichincludes:
•Createinnovativeandinsight-drivenfoodsolutions:Discoverandsellmarket-leadingproductsandservicestogrowTysonFoods’brandequityandhelpourcustomerssucceedthroughourcommitmenttojointvaluecreation.
•Optimizecommoditybusinessesandmanagemargins:Emphasizecostfocusinoperations,managemargins,andmaximizerevenuebycapitalizingonscale,yield,pricing,productmix,andservices.
•Buildamultinationalenterprise:Accelerateexpansionincost-competitiveregionsandmarketswiththegreatestgrowthpotential,aswellasincreaseanddiversifyU.S.exports.
•Revolutionizetheconversionofrawmaterialsandby-productsintohigh-margininitiatives:Commercializeopportunitiesoutsidethecorebusiness,suchascreatingrenewableenergyfromfatanddevelopingothertechnologicallyadvancedplatformsfrommaterialssuchasfeathersandotheranimalby-products.
Fiscal Year 2008 and 2009 Financial Performance
Below,weofferanoverviewofourfinancialperformanceinfiscalyears2008and2009byoperationalbusinesssegments.
Chicken
Fiscalyear2008andthefirsthalfoffiscalyear2009weredifficultforourcompany.Ouroperatingresultswerenegativelyimpactedbyhighgraincostsandnetlossesonourcommodityrisk-managementactivitiesrelatedtograinandenergypurchases.Asaresultofmorestableinputcostsandimprovedoperationalexecution,ourperformanceimprovedinthesecondhalfoffiscalyear2009.Operatingmarginsinthefirsthalfoffiscalyear2009werenegative7.2percent,whilethesecondhalfimprovedtopositive3.5percent.
Beef
Infiscalyear2008,ourbeefsegmentoperatingresultswerebetterthanfiscalyear2007asoperatingmarginssignificantlyimprovedinthelatterhalfoftheyear.Excludinga$560millionnon-cashgoodwillimpairmentcharge,ourfiscalyear2009operatingresultsdoubledascomparedtofiscalyear2008.Wesustainedouroperationalimprovementsmadeinfiscalyear2008andcontinuetohaveastrongperformance,whichshowsinourfiscalyear2009operatingresults.
Pork
Infiscalyear2008,weachievedarecordoperatingincomeof$280million,anincreaseof$135millionascomparedtofiscalyear2007.Thisperformancewasduetoadequatehogsuppliesandstrongdomesticandexportdemand.Whileourfiscalyear2009operatingincomewasdownascomparedtotherecordyearwehadinfiscalyear2008,westillhadsolidoperatingearningsof$160million,oranoperatingmarginof4.7percent,withastrongdemandforourproductsandanadequatesupplyofhogs.
6.2 CoMPany strategy and FinanCial PerForManCe
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Prepared Foods
Ouroperatingincomedeclinedinfiscalyear2008ascomparedtofiscalyear2007duetoincreasedrawmaterialcosts,partiallyoffsetbyincreasedaveragesalesprices.Infiscalyear2009,however,wehadimprovementsinoursalesvolume,whichledtooperatingmarginsof4.7percent.Inaddition,wemadeseveraloperationalimprovementsthatallowustorunourplantswithgreaterefficiency.
Capital Structure
Infiscalyear2008,weraisedmorethan$740millionincapitalbyissuing22.4millionsharesofClassAstockinapublicofferingand$458millionof3.25percentConvertibleSeniorNotesdueOctober15,2013.ThenetproceedswereusedforthenetcostoftherelatedConvertibleNoteHedgeandWarrantTransactions,therepaymentofourborrowingsundertheaccountsreceivablesecuritizationfacility,andothergeneralcorporatepurposes.Bothofthese
actionswereinourlong-termbestinterestandallowedustobecomfortableinmakingseveralinternationalacquisitions.
InMarch2009,wesuccessfullycompletedtwoimportanttransactionsforourcapitalstructure.Wereplacedourthenexisting$1.0billionrevolvingcreditfacilitysettoexpireinfiscal2010withanew$1.0billionrevolvingcreditfacilitywhichexpiresinMarch2012.Thisnewcreditfacilityissecuredbythecompany’scash,accounts
receivable,andinventoryandisalsoguaranteedbysubstantiallyallofthecompany’sdomesticsubsidiaries.Basedonourcurrentandfutureexpectedcashbalances,wedonotexpectanyusageunderthisfacilityexceptforlettersofcreditsupport,andasaresult,wedonotexpecttobesubjecttoitsfixedchargeratios.Inaddition,wecompletedanofferingof$810millionofseniornotesduein2014.Weusedtheproceedsfromthenotesofferingtorepayborrowingsandterminatecommitmentsunderour$600millionaccountsreceivablesfacility.Thenotesofferingandnewcreditfacilityaccomplishedthreeimportantgoalsforourcapitalstructure:ampleliquidity,financialflexibilityandthepayingdownofdebt.
Fiscal Year 2010 Outlook*
Webelievefiscalyear2010willshowanimprovementoverfiscalyear2009.Webelievedemandforprotein,especiallyinfoodservice,shouldimproveastheeconomyimproves,andwewillstrivetoincreasesales,gainmarketshare,andimproveoperatingmargins.
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Additionally:
Chicken
Attheendoffiscalyear2009,industrypulletplacementsweredown5to6percentasaresultofweakerdemand.Weexpect,however,demandwillimproveaswegetfurtherintofiscalyear2010,andweexpectthepricingenvironmenttoimprove,aidedbycoldstorageinventories,whicharedownrelativetothelevelswehaveseenoverthepastseveralyears.Currently,weexpecttoseegraincostsdownascomparedtofiscalyear2009.Additionally,wewillcontinuetofocusonmakingoperationalimprovementstohelpmaximizeourmargins.
Beef
Whileweexpectareductionincattlesuppliesof1to2percentinfiscalyear2010,wedonotexpectasignificantchangeinthefundamentalsofourbeefbusiness,asitrelatestofiscalyear2009.Weexpectadequatesuppliestooperateourplants.Wewillmanageourspreadsbymaximizingourrevenuesthroughproductmix,minimizingouroperatingcosts,whilekeepingourfocusonqualityandcustomerservice.
Pork
Weexpecttoseeagradualdeclineinhogsuppliesthroughthefirsthalfoffiscalyear2010,whichwillaccelerateintothesecondhalf,resultinginindustryslaughterslightlyhigherthan2007.Webelieve,however,wewillhaveadequatesuppliesintheregionsinwhichweoperate.Wewillmanageourspreadsbycontinuingtocontrolourcostsandmaximizingourrevenues.
Prepared Foods
Rawmaterialcostswilllikelyincreaseinfiscalyear2010,butwehavemadesomechangesinoursalescontractsthatmoveusfurtherawayfromfixed-pricecontractsandmoretowardformulapricing,whichwillbetterenableustoabsorbrisingrawmaterialcosts.Withthechangeswehavemadewithoursalescontracts,andtheoperationalefficiencieswemadeduringfiscalyear2009,weexpectstrongresultsinfiscalyear2010.
Moreover,weareintegratingrecentinternationalacquisitionsandexpectthemtobegincontributingin2010.
*Certain information contained in this section of the sustainability report includes forward-looking statements, including statements related to projected performance, livestock supplies, demand for our products, and amount of debt. Historical results may not be indicative of future results. We wish to caution readers not to place undue reliance on any forward-looking statements, which speak only as of the date made.
Want To Know More?
ForfinancialinformationonTysonFoods,pleasevisitourInvestorRelationsWebsiteathttp://ir.tyson.com.Thereyouwillfindfinancialstatements,SECfilings,annualreports,presentationstoinvestors,andmuchmore.WeencourageyoutoexplorethisWebsiteforacomprehensivefiscallookatTysonFoods.
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TysonFoodsiscommittedtoresponsible,legal,andsustainableprocurementpractices.Weencourageoursupplypartnerstorecognizetheroletheyplayinhelpingusassureourcustomersandconsumersofthesafetyandqualityofourproducts.Eachyear,allTysonFoods’TeamMembers,includingmembersoftheBoardofDirectors,arerequiredtoaffirmtheircommitmenttotheprinciplesdescribedinourCodeofConductandsupportedthroughourDoing What’s Right™program.WeviewoursupplypartnersasacriticalelementinfulfillingourcommitmenttoDoing What’s Right.Accordingly,inappropriatecircumstanceswestrivetoincluderequirementsinoursupplycontractsthatemphasizethesustainabilityobjectivesthataresharedwithour7,500supplypartners*.
Duringfiscalyears2008and2009,TysonFoodsspentapproximately$7.2billionongoodsandservices.Webelieveitisimportanttosupporttheeconomicdevelopmentofcommunitiesbypurchasinggoodsandservicesfrom“locally-based”supplypartnerswhoarelocatedinthesamecounty,anadjoiningcounty,orthesamestateasaTysonFoodsoperation.Ourmostrecenttwelve-monthanalysisofindirectspending,whichincludesitemssuchasservices,maintenanceandrepairs,plantexpensesandsupplies,equipment,andfuel,indicatedthat$1ofevery$3dollarsspentwithsupplypartnersisspentwithlocally-basedsuppliers.
WealsoseektoenterintorelationshipswithsupplypartnerswhosharevaluessimilartoTysonFoods,especiallyintheareasof:
•Legalandregulatorycompliance;
•Productsafetyandqualityfoodproducts;
•Animalwell-being;
•Laborandhumanrights;
•Environmental,healthandsafety;
•Sustainability;and
•Ethicalandhonestbusinesstransactions.
InourRequestforProposalprocess,weincludeandevaluatekeyelementsrelatedtosustainabilityaspartoftheselectioncriteriafordesignatedprocurements.Manyofourmajorsupplypartnersmaintaindocumented,formalsustainabilityprograms.In2007and2008,TysonFoodsawardedSupplieroftheYearAwardstohonorsupplypartnersthathaddemonstratedexceptionalfocusonvalue,costsavings,
6.3 our suPPly Partners
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servicemetrics,innovationanddesign,diversityefforts,sustainabilitypractices,andtechnicalsupport.
Wearealsocommittedtocontinualimprovementwithinoursupplychainandprocurementprocess.Forexample,weregularlyhoststrategicmeetingswithmajorsupplierstodiscusskeybusinesssuccessesandopportunities.Weroutinelyconductsuppliersatisfactionsurveystoidentifywaystofurtherenhanceourrelationshipswithoursupplypartners.Otherexamplesofourcommitmenttocontinualimprovementwithinoursupplychainandprocurementprocessaresharedbelow.
•In2008,TysonFoodslaunchedaninitiativetoimproveourPurchase-To-Pay(P2P)process.Thisinitiativewillresultinasystemandvariousprocessenhancementsdesignedtoreducewastedtime,materials,andeffort.TheenhancementsplannedwillbringTysonFoods’supplychainprocurementprocessinbetteralignmentwithbestpractices.Weexpectthisinitiativetobefinalizedin2010.
•In2009,werevisedandconsolidatedourpurchasingpoliciesandprocedures.Therevisionsandconsolidationpromotesgreaterefficiencyinoursourcingprocessandemphasizestheongoingneedtodobusinesswiththebest-valuesupplypartners.
•Webegandeveloping,in2009,aSupplierCodeofConductthatsetsforthsupplierexpectationsregardingthevaluesthathavebeensharedabove.Wewillfinalizethisdocumentandsharethiscodewithoursupplypartnersinfiscalyear2010.
•Infiscalyear2009,weimplementedaninternalContractManagementSystem.ThissystemenhancesourcommunicationwithourTysonLegalTeamandoursupplypartners,andallowsustostoreallofourpurchasing-relateddocumentationelectronically.
•In2008,wedevelopedanannualpurchasingtrainingprogram.Thisprogramhelpsassuretheprofessionalgrowthanddevelopmentofourpurchasingtalent.Ithelpsmaintainconsistencyinourpurchasingpracticesandprovidesguidanceonkeytopics,suchasthebasicsofsourcing,negotiation,anddevelopingandimplementingcontracts.
*Note: We rely on many third-party resources who are independent contractors for various goods and services. This includes, but is not limited to contractors, consultants, and suppliers, and their associated employees, agents, and subcontractors. For simplicity, we refer to these third-party resources as “supply partners” in this report.
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Mostofourchickenisraisedbyindependentpoultryproducers.Currently,Tysoncontractswithmorethan6,000independentproducers.Thereisalsoasmallnumberofcompany-ownedchickenfarms.
ProducingforTysonFoodsisasteadysourceofincomeforfarmsthatotherwisehavetodealwiththeuncertaintyoffluctuatingpricesforagriculturalcropsandproduce.Ourcontractualrelationshipswithproducersenablemanyfamiliestoremainonfarmsinsteadofpotentiallybeingforcedoffbyeconomicpressures.Weprovidefarmerswithstate-of-the-artveterinarysupport,scientificallyformulatedfeed,andtechnicalassistance,withTysonFoods’technicaladvisorsvisitingfarmstypicallyonaweeklybasis.Weprovideproducerswithinformationonsoundenvironmentalpractices,optimallightingandventilationforchicken,anddisease
control.Wealsostronglypromoteanimalwell-beingatalllifestages.Noneofourbroilersisraisedincagesatanystageofitslife.Aboveall,westrivetosupportindependentproducersintheireffortstoruntheirbusinesseswiselyandtobeindependentandsustainableenterprises.
Unlikeourverticallyintegratedchickenbusiness,TysonFoods’beefandporkoperationsdependuponindependentlivestockproducerstosupplyourplants.TheplantsoperatedbyTysonFreshMeatsarestrategicallylocatednearlargesuppliesofhighqualitycattleandhogs.
Toensureasteadysupplyoflivestock,TysonFreshMeatsmaintainsanextensivebuyingnetwork.Approximately60cattlebuyersand120hogbuyersmakecompetitivebidsonthecattleandhogsthatmeetthecompany’sspecificationsforhighqualitybeefandpork.
ThecompanybuysmillionsofcattleandhogsintheU.S.eachyearfromapproximately5,000independentcattleproducersand7,500independentporkproducerstoensureasteadysupplyforoureightbeefplantsandsixporkplants.
TysonFreshMeatssupportstheeffortsofindependentcattleandhogproducerstoensurethelivestocktheyraiseareproperlyhandled.
6.4 suPPorting tHe FaMily FarMer
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TysonFoodsisfindinginnovativeandcreativewaystoconvertanimalbyproductsintofuel,petfoodproducts,andotherhigh-margincommercialproducts.OurRenewableProductsDivisionisleadingourstrategytorevolutionizetheconversionofrawmaterialsandby-productsintohigh-marginbusinesses.Oureffortsinthisareacurrentlyinvolvefourgrowthplatforms:
•Renewableenergy;
•Petproducts;
•Biotech;and
•Nutraceuticals(nutritionalsupplements).
Renewable Energy
DynamicFuels,a50/50jointventurebetweenTysonFoodsandSyntroleumCorporation,brokegroundinOctober2008onaplantthatwillconvertlow-grade,inediblefatsandgreasesintorenewabletransportationfuelsforthemilitaryandcivilianmarkets.Thefacility,locatedinGeismar,Louisiana,iscurrentlyscheduledtobeginproductionin2010,withanexpectedtotalcapacityof75milliongallonsperyear.
Unlikethetraditionalethanolandbiodieselindustries,whichusefoodingredientssuchascornandsoybeanoiltoproducefuel,theDynamicFuelsprojectwillprimarilyusenon-foodgradeanimalfatsproducedorprocuredbyTyson,suchasbeeftallow,porklard,chickenfat,andcookinggrease.Thefuelproducedbytheventurewillofferthesamebenefitsofsyntheticfuelsderivedfromcoalornaturalgaswhileprovidingsubstantialperformanceandenvironmentaladvantagesoverpetroleum-basedfuels.Thesebenefitsincludehighercetanelevels,whichareameasureofcombustionquality,andsuperiorthermalstability,makingiteffectiveforadvancedmilitaryapplications.Inaddition,asareplacementfortraditionalpetroleumfuel,thisfuelshouldreduceparticulateemissionsby96percentandlifecyclegreen-housegasemissionsbyapproximately80percent.
Pet Products
Americanslovetheirpetsandareconcernedaboutthefoodtheirpetseat.InApril2009,TysonFoodsandIowa-basedKeminIndustries,Inc.,announcedtheopeningofanewmanufacturingoperationthatproducespetfoodflavorenhancers,knownaspalatants,underthePalasuranceTMbrand.
ThemanufacturinginitiativeistheresultofastrategicallianceTysonFoodsandKeminIndustriesformedin2008todevelop,manufacture,market,andsellliquidanddrypalatantstopetfoodcompanies.Thegoalistoprovidecostcompetitive,high-qualitypetfoodpalatants.
Thenewpalatantoperationislocatedatourflagshipanimalby-productfacilityinScranton,Arkansas,whichiscentrallylocatedtoourArkansaschickenprocessingplants.Theoperationboastsstate-of-the-artequipmentandautomatedcontrolsdesignedtoproducepalatantswiththehighestregardforproductsafetyandperformance.ProductionbeganinMarch2009andisa24-houroperationsupportedbytheTysonTeamatScranton.
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AlsoinMarch2009,TysonFoodsandNewJersey-basedFreshpetannouncedanalliancefocusedonbringingtoconsumersnewandinnovative,refrigerated,freshfoodforpets.Thisisanaturalextensionofourexpertiseinmakinginnovativerefrigeratedfoodproducts.Capitalizingonthetrendtowardhumanizationofpets,webelieveourabilitytoleverageallofourfoodknowledgetobringfreshrefrigeratedproductstothismemberofthefamilywillpresentastepchangeininnovationthathasnotbeenseeninthiscategory.
Thealliancewillcontinuetheinnovationandgrowthoftherefrigerated,freshpetfoodbusiness.WebelievethiscanbeachievedbycombiningFreshpet’sinnovationandbrand-buildingskillswithourknowledgeofproductdevelopment,logistics,andmanufacturing,aswellasoursupplyofchicken,beef,andporkproducts.EachpoundofFreshpet®Selectproductcontainssevenouncesofchicken,beef,orturkeyandtwoouncesofliverasitsmajorproteinsource.Additionallythereisoneegg,twoouncesofvegetables,andoneounceofbrownrice.Theproductis
fortifiedwith18essentialvitaminsandminerals,andcontainsnocorn,wheat,gluten,fillers,by-products,orpreservatives.Theproductisgentlycookedandquicklycooledtoeliminateanyharmfulbacteriaorparasites,andisneverfrozen.Thisresultsinabetternutritionprofile,improveddigestibility,andenhancedflavor.Allofthisleadstoahealthier,happierpet.
InanefforttomeetconsumerdemandforAmerican-made,naturalpettreats,asubsidiaryofTysonFoodsrecentlylaunchedalineofdogchews.OnFebruary5,2010,TysonPetProducts,Inc.,introduced100-percentnaturalTrue ChewsTMdogtreats,whicharebeingmadeatarecentlyreopenedplantinIndependence,Iowa.Thecompanyisofferingavarietyofdifferentchewssuchaschickenfillet,porkear,andbeefbullystick.Thechicken,beef,andporkusedin“True Chews”treatsaresourcedfromvariouscompanylocationsintheUnitedStates.Therawmaterialsareslowroastedandhaveanaturalhickoryaroma.Thefinishedproducts
areprotein-richandrawhide-free,withnofillers.
Nutraceuticals /Supplements
FoodscontainingnutritionalsupplementsaregrowinginpopularityasBabyBoomersage.Withourboneandcartilagesupply,weareuniquelypositionedtosupplyproprietarychondroitinandcollagenproductsthroughourrelationshipwithBioCellTechnology,LLC.Majornutritionalsupplementandfoodmanufacturersmarketfinishedproductsmadewiththeseingredients.Additionalopportunitiesarebeingexploredtoexpandfurtherthisbusinessplatformduring2009throughotherrawmaterialsandvalue-addedpartnerships.
Biotech Products
TysonFoodsalsorecognizestheversatilityandfunctionalityofkeratinproteinfromchickenfeathers.Aspartofthebiotechplatform,weareexploringpotentialpartnershipsandcommercializationopportunitiesforkeratin-basedproductsincludinghealthandbeautysolutions,adhesives,plastics,andnonwovens.Alloftheseproductswillbringaddedvaluetoourcompanywhilesupportingoursustainabilityefforts.
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Asdetailedinourcompanystrategy,wearecommittedtobuildingamultinationalenterprise.Theemergingmiddleclassinseveralpartsoftheworldarecontributingtoanincreaseintheglobalconsumptionofmeatandpoultryproductssuchaschicken,beef,andpork.Globally,meatconsumptionisforecasttogrowbynearlytwopercentperyearbetween2007and2017.Thisrepresentsanincreaseofalmost50millionmetrictonsofmeat.Thisincreasewillbeduetoimprovedincomelevels,dietchange,andpopulationgrowth.
Theglobalconsumptionofpoultryisgrowingatthefastestrate,followedbyporkandthenbeef.Consumerpreferenceforpoultryisduetoseveralfactors.Twoofthekeyfactorsarethatchickenisthemostefficientofthemeatproteinsinfeedconversion,andthatchickenisacceptedbymostreligions.ThesechangesinglobalproteindemandarecreatingnewopportunitiesforglobalfoodcompanieslikeTysonFoods.
Infiscalyear2009,TysonFoodsexportedchicken,beef,pork,and/orpreparedfoodstomorethan90countries.Increasingexports,diversifyingourexportmarketsandbuildingin-countryproductionareessentialtothecompany’slong-termgrowth.Inrecentyears,wemadeseveralacquisitionsandenteredjointventuresinkeylocationsthatoffertherightclimateforpoultryproduction,alargepopulation,amplelaborforce,accesstocornandsoybeanmealandacost-of-productionadvantage.Anotherimportantfeatureofthesemarketsistheiremergingmiddleclass.Asincomesrise,oneofthefirstlifestylechangespeoplemakeistoaddproteintotheirdiets.
Since2001,TysonFoodshashadapresenceinChinawithTysonDaLong,asmallchickenfurtherprocessingjointventure.Withapopulationof1.3billionandchainrestaurantsopeningatarateofoneevery18hours,theChinesemarketneedsmorepoultryproduction.AnnualpercapitachickenconsumptioninChinaisabout20poundsperperson,comparedto89poundsintheUnitedStates.Ifconsumptionincreasedbyonly10poundsperperson,itwouldbeequivalenttoallofTysonFoods’annualUnitedStatesproduction.
Toservethisgrowingmarket,in2008TysonFoodscreatedJiangsuTysonFoodstoproducefreshchickensoldundertheTysonbrandfortheShanghairetailmarket.In2009,weenteredasecondjointventure,ShandongTysonXinchangFoods,afullyintegratedchickenandduckoperation.TysonXinchangwillhaveaproductioncapacityofmorethan600,000birdsperdayandfurtherprocessingoperationswithexportcertificationsforJapan,SoutheastAsia,andEurope.
In2008,TysonFoodsacquiredthreepoultrycompaniesinsouthernBrazil.Oneoftheseoperationsisfullyverticallyintegrated,andtwoarepartiallyverticallyintegrated.AllthreecansupplyBrazil’sgrowingdomesticmarketsinadditiontoservingEurope,Japan,andothermarketscurrentlynotavailabletoU.S.chickenimports.BycombiningthesethreecompaniesintoTysondoBrazil,wehavecreatedanoperationwithmoderntechnologyandanexperiencedmanagementteam.TheproductioncapacityofTysondoBrazilwillbeapproximately800,000chickensperday.
ThethirdkeylocationforTysonFoods’internationalgrowthisIndia,whichhasapopulationofmorethanonebillionpeople.Whilepercapitachickenconsumptionislessthanfivepoundsayear,itsannualgrowthrateofmorethan10percentisamongthehighestintheworld.In2008,TysonFoodsacquiredmajorityownershipofoneofIndia’sleadingbrandedchickencompanies.Inadditiontoservingthefoodservicemarket,GodrejTysonFoodsproducesretailfreshchickenundertheRealGoodChickenbrandandfurtherprocessedchickenundertheYummiezbrand.ThecombinedproductionofthetwoplantsinMumbaiandBangaloreisapproximately60,000chickensperday.
TysonFoodshashadapresenceinMexicofor20yearsandcurrentlyholdsthenumberthreemarketshareposition.Wearenumberoneinvalue-addedchickenproductionandhavereachedfullcapacityinourplantsinamarketthatcontinuestogrow.Ourlonger-termstrategycouldincludeacquiringorbuildingmoreassetstosolidifyTysondeMexico’smarketpositioninthenorthernpartofthecountyandexpandintothecentralregion.
Chickenisn’ttheonlyproteinTysonFoodsproducesoutsidetheUnitedStates.In2007,weenteredajointventuretocreatethefirstverticallyintegratedbeefoperationinArgentina.TheSouthAmericancountryistheworld’sfifthleadingbeefproducerandthesecondleadingbeefexporter,andisknownforitslowbeefproductioncostsandhigh-qualitybreedsofcattle.
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TysonFoodsworksonregulatoryandlegislativepolicyissuesthatcanhaveanimpactonourbusiness.Wedothisthroughourowninvolvementasanindividualcompanyandthroughmembershipinindustryassociations.Tysonrepresentativesfromallpartsofourcompanyimpactpublicpolicythroughdirectinteractionwithpolicymakers,aswellasthroughparticipationonindustrycommitteesandadvisoryboards.Webelievethisinteractionensuresthatourviewsonkeyissuesareheardandshapessoundpublicpolicy.Weseeourengagementinboththepolicyandpoliticalprocessesasanimportantpartofcorporatesustainability.
Priority Issues
Thefollowingareamongthemostsignificantrecentpublic-policyissuesforourcompanyin2009:
•BalancedFoodandFuelPolicies:Wesupportthedevelopmentanduseofrenewablefuelsasawaytohelpreduceourdependenceonforeignoil.However,publicpolicyshouldnotpromotetheproductionofrenewablefuels,particularlycorn-derivedethanol,attheexpenseof
eitherourindustryorconsumers.In2008,wesupportedareductionintheRenewableFuelsStandard,petitionedbytheGovernorofTexas,becauserisinggrainpriceswerenegativelyaffectingourbusinessandleadingtohigherfoodprices.In2009,weopposedarequest,pendingwiththeEnvironmentalProtectionAgency,toallowhigherblendsofethanolingasoline.Webelievethatthispolicychangecouldraisecornpricesandcouldhaveapotentiallynegativeimpactonmotorvehicleandequipmentengineperformance.WearecommittedtoworkingwithCongress,andthecurrentAdministration,onpoliciesthatbalancethepromotionofbiofuelswiththeinterestsofbothourindustryandconsumers.
•ImmigrationReform:Webelievecomprehensiveimmigrationreformisnecessary,andtherefore,closelymonitortheissue.WevalueTeamMemberswhoareimmigrants—legalimmigrants.OurTeamMembers,immigrantandAmericanborn,wanttheirchildrentoenjoygreateropportunitiesandthestabilitythatenablesfamiliestostaytogetherandthrive.Wefeelthatacomprehensive
immigrationreformbillshouldincludebordersecurity,animprovedemployerverificationsystem,atemporaryworkerprogramwithamarket-basedregulator,andprovideapathwayforcitizenstoearnlegalstatus.
•EnsuringFoodSafety:WearecommittedtoworkingwiththefederalgovernmenttoensurethesafestpossiblefoodsupplyforconsumersintheUnitedStates(U.S.)andaroundtheworld.Issuesaroundfoodsafety,whetherintheCongressorbeforefederalagencies,aretopprioritiesforourcompany.
•InternationalTrade:Weexportproteintomorethan90countries,andourbusinessreliesonarules-basedtradingsystemthatensuresfair-marketaccessforallparticipants.Wesupporttradepoliciesthatexpandexportopportunitiesandremovetradebarrierstoproteinexportsthatarenotconsistentwithestablishedinternationalhealthandsafetystandards.
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Corporate Contributions
ThroughcampaigncontributionstocandidatesfortheU.S.HouseandtheU.S.Senate,theTysonPoliticalActionCommittee(TYPAC)helpsbuildandmaintainrelationshipswithelectedofficialswhosupportourindustryandcompany.Theyunderstandourbusinessandaregratefulthatweprovidemorethan100,000jobs.Theyappreciatetheskillandcarewededicatetoproducingsafe,delicious,andnutritiousfoodsataffordableprices.
ThroughAugust2009,TYPACcontributed$86,000tocandidatesforfederalofficesforthe2009-2010electioncycle.Duringthe2007-2008electioncycle,TYPACcontributed$218,002tocandidatesandpoliticalactioncommittees.TYPACdoesnotbaseitscontributionsonpoliticalpartyaffiliation.Asindicatedintheprecedingparagraph,weseektosupportcandidateswhounderstandandappreciateourbusinessanditsimportancetoAmericanconsumers.
Memberships and Associations
TysonFoodsisamemberofnumerousindustrygroupsandassociations.Weworkwiththesegroupsandassociationsbecausetheyrepresentthefoodprocessingindustryandbusiness
communityindiscussionswithgovernmentalagenciesandotherstakeholders.Theyarealsoinstrumentalinhelpingtoreachindustryconsensusonimportantnationalpolicyissues.Wehavecompanyrepresentativesontheboardsandcommitteesofmanyofthesegroupsandassociationstoensurewehaveanavenuetovoicequestions,concerns,andopinionsaboutpolicyorrelatedactivities.Belowisapartiallistingoftheindustrygroups,associations,andpartnershipsofwhichwearemembers.Thoseinboldtextareglobalassociations.Wealsomentionourmembershipinindustrygroups,associations,andpartnershipsinothersectionsofour2009sustainabilityreport.
AmericanAssociationofAnalyticalChemists,AmericanCommodityDistributionAssociation,AmericanCulinaryFederationChefandChildFoundation,AmericanDieteticAssociation,AmericanFeedIndustryAssociation,AmericanFrozenFoodsInstitute,AmericanLeatherChemistsAssociation,AmericanMeatInstitute,AmericanMeatScienceAssociation,AmericanSocietyforQuality,AmmoniaSafetyandTrainingInstitute,AnimalProteinProducersIndustry,Applied Sustainability Center,ArkansasAssociationofFoodProtection,
ArkansasEnvironmentalFederation,British Retail Consortium,BeefInformationFoodSafetyCouncil,Center for Business Ethics,EqualEmploymentAdvisoryCouncil,Ethics and Compliance Officers Association,FoodSafetyConsortium,Global Food Safety Initiative,IllinoisRiverWatershedPartnership,IndustryLiaisonGroup,Institute of Food Technologists,Institute of Internal Auditors,International Association for Food Protection,International HACCP Alliance,LeatherIndustriesofAmerica,NationalAssociationofMeatPurveyors,NationalBusinessGrouponHealth,NationalCattlemen’sBeefAssociation,NationalChickenCouncil,NationalFrozenandRefrigeratedFoodsAssociation,NationalMeatAssociation,NationalPorkBoard,NationalPorkProducersCouncil,NationalRenderersAssociation,NationalSafetyCouncil,NationalTanneryAssociation,NationalTurkeyFedera-tion,Research Chef’s Association,SchoolNutritionAssociation,Society of Corporate Compliance and Ethics,Society for Human Resource Management,U.S.ChamberofCommerce,U.S.MeatExportFederation,U.S.PoultryandEggExportCouncil.
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TysonFoodssupportsthedevelopmentanduseofrenewablefuelsasawaytohelpreduceU.S.dependenceonforeignoil.However,publicpolicyshouldnotpromotetheproductionofrenewablefuels,particularlycorn-derivedethanol,attheexpenseofourcompany,ourcustomers,orconsumers.Cornandsoybeancostshaveasignificantimpactonourbusiness.Onaverage,corncostsmakeup47percentofthetotalcostofraisingalivebird,whilesoybeanmealcontributesnearly20percenttothetotalcost.Cornandsoybeanmealarealsosignificantfeedcomponentsforcattleandhogs,andthesecostshavesignificantimpactonthebusinessoftheindependentcattleandhogproducerswhosupplyuswithmarkethogsandfinishedcattle.
In2005,andagainin2007,legislationwasenactedthatmandatedtheuseofspecificvolumesofrenewablefuels.Webelievethesemandates,whichhadthemostimmediateimpactontheproductionofcornethanol,wereasignificantfactorinbothasharpriseincornpricesandincreasingvolatilityintheagriculturalmarkets.Bymid-2008,ourcostsforfeedingcornintoourbroileroperationshaddoubledsinceJuly2006from$2.90perbusheltonearly$6.00perbushel.Infiscalyear2008,weabsorbed$593millioninincreasedgraincostsoverfiscalyear2007.Theseincreasesininputcosts,resultingfromgovernmentpoliciespittingfoodproductionagainstfuelproduction,directlyaffectourcompany’sprofitability.In2008,independenthogproducerswerereceivinghighmarketpricesforlivehogs;however,theystruggledtomakeaprofitduetohighfeedcosts.
Expertsestimatethatapproximately40percentoftheU.S.corncropwillbedivertedfromfoodandfeedtofuelproductionby2015undercurrentpolicies.Movingforward,webelievethecurrentmandatesshouldbereevaluatedandthatfederalrenewable-fuelpoliciesshouldfocusonnext-generationrenewablefuelsthatdonotrelyonfood-basedfeedstocks.Thispolicyfocusisgoodforthecountryandforourcompany’slong-termsustainability.
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TysonFoods’2009sustainabilityreport,Rooted in Tradition, Growing Responsibly,coversfiscalyears2008(September30,2007–September27,2008)and2009(September28,2008–October3,2009).Aswithour2005and2007sustainabilityreports,titledLiving Our Core ValuesandIt’s In Our Naturerespectively,thisthirdbiennialreportprovidesacomprehensiveandtransparentreviewofourcommitmentto,andprogresstowards,economicgrowth,environmentalstewardship,andsocialprogress.
Thisreportdetailsoureconomic,environmental,andsocialperformanceforourUnitedStatesoperations,withadditionalinformationprovidedonselectInternationaloperations,subsidiaries,andjointventures.Unlessotherwisenoted,thescopeofthisreportdoesnotincludeeconomic,environmental,orsocialdatafromsuppliers,independentproducers,externalorganizations,oractivitiesoverwhichthecompanyhaslimitedcontrolorinfluence.
7.0 our aPProaCH to sustainability rePorting
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ThisreportisintendedtocovertheissueswebelievearemostmaterialtoTysonFoods.Wedefinetheseissuesasthosewiththepotentialtopositivelyandnegativelyinfluence,bothnowandinthefuture,the:
•Progressandgrowthofourglobalsociety;
•Protectionoftheenvironmentandconservationofnaturalresources;and
•Thecompany’sfinancesoroperations.
Inaddition,wealsoconsiderthoseissuesthatareofconcerntostakeholdersorthatcansubstantiallyinfluencetheassessmentsanddecisionsofstakeholders,tobematerial.
Inanefforttoidentifythesustainabilityissuesofgreatestimportancetoourcompanyandstakeholders,weparticipatedinnumerousstakeholder-engagementactivitiesduringfiscalyears2008and2009.Thisincludesfocusedstakeholderworkgroups;customerpresentations;roundtablemeetings;discussionswithacademiaandindustryassociations;performanceandperceptionsurveys;reviewsofinternalstrategies,policies,andmanagementsystems;andformalreviewsofregulatoryrequirements,publishedresearch,andmedia
reports.Wealsoconsideredspecificmaterialitycommentsreceivedfrombothinternalandexternalsourceswithrespecttothecontentofour2007sustainabilityreport.
Inaddition,aswithour2005and2007reports,wefollowedtheguidanceofferedbytheGlobalReportingInitiative’s(GRI)G3SustainabilityReportingGuidelinestodefineanddevelopour2009sustainabilityreport.Wefeeltheseguidelinesaidinprovidingabalancedrepresentationofourmaterialissues.Theseguidelinesalsoofferaframeworkforsustainabilityreportingthatorganizationscanadoptregardlessoftheirsize,industrysector,orgeographiclocation.
AsverifiedbybothinternalauditorsandGRI,thisreportmeetsthe“B”applicationlevel.AnindexprovidingdetailsontheGRIindicatorsaddressedinthisreportisavailableonpage99.ForfurtherinformationaboutGRI,visitwww.globalreporting.org.
Basedonourstakeholderinteractions,formalreviews,andtheguidanceofferedbytheGRI’sG3Guidelines,wehaveverifiedthefollowingasourmaterialissues(innoparticularorder):
Blending Our Business and Sustainability Strategies
Ourcommitmenttosustainabilityhasalonghistoryandisevidentinourdailyactions.Simplysaid,wetakeactiononcriticalissuessuchashungerrelief,foodsafety,environmentalprotection,resourceconservation,animalwell-being,ethicalbusinesspractices,thehealthandsafetyofourTeamMembers,andreturningaprofittoourshareholders.Wearefullycommittedtomaintainingoursustainabilitydirectionandtoensuringeconomic,environmental,andsocialissuesremainakeyconsiderationofourbusinessdecisions.
Retaining an Exceptional Team
Ouremployees,whomwecallTeamMembers,areourmostvaluedresource.Wearecommittedtoattracting,developing,andretainingadiversegroupoftalentedTeamMembersandtocreatingaworkplacethatallowseachTeamMembertocontributetothecollectivesuccessofourcompany.Ourprogramsandinitiativesrelatedtodiversityandinclusion,recruiting,compensationandbenefits,andprofessionaldevelopmentarekeytofulfillingthiscommitment,
7.1 Material issues
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especiallyintoday’schallengingeconomicclimate.
Ensuring Team Member Health and Safety
Weregardworkplacehealthandsafetyasacoreindicatorofourbusinesssuccess.Accordingly,wepromoteaculturethatvaluesthehealth,safety,andwell-beingofourTeamMembers.ThefoundationforthiscultureisourCoreValues,whichcallforusto“provide a safe work environment for our Team Members.”WearecommittedtomaintainingasafeandhealthyworkenvironmentthatenablesourTeamMemberstoworkfreeofoccupationalinjuryandillness.
Supporting Local Communities and Helping Those in Need
Ourcommunityconsistsofmanypeopleweinteractwithonaregularbasis,includingourcustomers,consumers,andneighbors.Weunderstandwehavearesponsibilitytosupportthecommunitiessurroundingouroperationsaswellasthoseinneed.Throughmonetarycontributions,productdonations,partnerships,
volunteerism,andotherinitiatives,ourTeamMembersexemplifyTysonFoods’commitmenttosupportinglocalcommunitiesandhelpingthoseinneed.
Minimizing Our Environmental Footprint
Ourcontinuedbusinesssuccessisbasedonnumerousfactors,oneofwhichisourenvironmentalperformance.OurCoreValuescallforusto“serve as stewards of the animals, land, and environment entrusted to us.”Wearecommittedtoaggressively,andresponsibly,minimizingourenvironmentalfootprintandtoconservingnaturalresourcesthroughefficientuse,carefulplanning,andcontinualimprovement.
Providing Safe, Nutritious Food Products
Successfulcompaniesknowtheirfuturedependsonprovidingthesafe,qualityproductscustomersandconsumersexpectanddeserve.NothingismoreimportanttoourbusinessthanmaintainingconfidenceintheTysonFoodsbrand.Wearecommittedtomaintainingandcontinuallyimprovingthesystemsandpracticesthatallowustoprovidesafe,nutritiousfoodproductsandupholdanunsurpassedfood-safetyrecord.
Protecting the Well-Being of Our Animals
Producingahigh-qualityfoodproductbeginswithensuringthehealthandwell-beingoftheanimalswegrow,purchase,andprocess.Wehavealong-standingcommitmenttothewell-beingandproperhandlingoftheanimalsusedinourfoodproducts.Thisisnotonlytherightthingtodo;itisalsoanimportantmoralandethicalobligation.
Ensuring the Profitability of Our Company
Althoughwehavefaceddifficultpoultrymarketconditions,beefsupplyanddemandchallenges,andhigherthanaveragelivehogprices,wearecommittedtomaintaininga“senseofurgency”inreturningourcompanytoprofitability.Weremainfocusedonconductingourbusinessactivitiesinanethicalmannerwhilecreatinginnovativeandinsight-drivenfoodchoices,optimizingcommoditybusinessmodels,buildingamultinationalenterprise,andconvertingrawmaterialsandby-productsintohighmargininitiatives.
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StakeholderengagementisanimportantpartofTysonFoodssustainabilityactivitiesandouroverallbusinesssuccess.Werecognizeinternalandexternalstakeholderengagementcanhelpbetterdefineourbusinessstrategy;sharpenourdecision-making;andenhanceourcompany’seconomic,environmental,andsocialperformance.Accordingly,we(1)seektounderstandtheperspectivesandneedsofourstakeholders,(2)setexpectationsforareasofmutualconcern,(3)actupontheseexpectations,and(4)ensureourstakeholdersremaininformedofourprogress.
Everyfacetofourcompanyanditsoperationshaspotentialtoaffect,orbeaffectedby,stakeholders.Tobetteralignourbusinesspracticeswithstakeholderexpectations,wemaintainopendialogueandfostercollaborativerelationshipswiththoseindividualsandgroupswhohaveaninterestin,orareaffectedby,ourcompanyanditsoperations.Wehaveidentifiedthefollowingindividualsandgroupsasourkeystakeholders:
•TeamMembersandprospectiveTeamMembers;
•Shareholdersandpotentialinvestors;
•TheBoardofDirectors;
•Customersandconsumers;
•Local,state,andfederalgovernmentagencies;
•Nongovernmentalorganizations;
•Localcommunitymembersandleaders;
•Themedia;
•Suppliers,independentproducers,andotherbusinesspartners;
•Wholly-ownedsubsidiariesandjointventures;and
•Multiculturalorganizations,academia,andindustryassociations.
StakeholderengagementactivitiesoccurinvirtuallyeveryaspectofTysonFoods’operationsandbusinesstransactions.Selectionandengagementwithstakeholdersisconductedprimarilyinadecentralizedmanner,occurringasapartofnormalbusiness.Forexample,accountmanagementteamsareresponsibleforidentifyingandengagingwithcustomers,andmembersofourExternalRelationsdepartmentinteractwithelectedofficials,themedia,communityleaders,andothermembersofthepublic.
TysonFoodsengageswithitsstakeholdersinformalsettingsaswell.Atthelocallevel,forexample,facilitymanagersparticipateinstakeholderengagementthroughstrategiccommunity-involvementplans,donations,communityoutreach,andregionalrecruitingprograms.Atthecorporatelevel,TysonFoodscollaborateswithrepresentativesfromgovernment,academia,andindustrytodiscussemergingissuessuchasproductlife-cycleanalysisandsustainabilityreporting.Forexample,in2007,TysonFoodsalongwithnineothercompaniesandtenstakeholdergroups,begancollaboratingwiththeGlobalReportingInitiative(GRI)todevelopsector-specificsustainabilityreportingstandardsforthefoodprocessingindustry.GRI’svisionisthatreportingonsocial,environmental,andeconomicperformancebecomeasroutineandcomparableasfinancialreporting.Thefood-processing-sectorsupplementwillbetterenablecompaniesandstakeholdersinthefoodprocessingindustrytomoreaccuratelymeasureandcommunicatesustainabilityprogress.Thefinalizedsectorsupplementwillbereleasedinthespringof2010.TysonFoods’participationinthedevelopmentofthesesustainabilityreportingstandardsisjustonemorewayinwhichthecompanyistakingaleadershiproleinsustainabilitywithinthefoodindustry.
7.2 groWing suCCessFul PartnersHiPs – staKeHolder engageMent
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Totherightweofferadditionalexamplesofourstakeholderengagementprocess,includingkeystakeholdertopicsandconcernsandhowwerespondtothoseconcerns.
TysonFoods’stakeholdergroupisdiverseandincludesthosewithbothminimalandextensiveknowledgeofourprocesses,company,andoverallindustry.Giventhesize,nature,andcomplexityofourcompany,however,werecognizethisreportmaynotcomprehensivelymeettheinformationneedsofallourstakeholders.StakeholdersneedingadditionalinformationareencouragedtovisitTysonFoods’Websiteatwww.tyson.comore-mailTysonFoodsatsustainability@tyson.com.
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Restatements and Changes in Reporting
Thefollowinginformationappearedinthecompany’s2007sustainabilityreportand,afterfurtherreview,isamendedandrestatedinthecompany’s2009sustainabilityreport.
Raised Without Antibiotics
Inour2007sustainabilityreport,wediscussedourAny’tizersTMsnacksandfreshchicken“RaisedWithoutAntibiotics.”OurRaisedWithoutAntibioticschickeninitiativehasbeensuspendedduetolabelingchallenges.Assuch,werecalledandreprintedour2007sustainabilityreportinMay2008,removingallreferencestoRaisedWithoutAntibiotics.IftheU.S.DepartmentofAgriculture(USDA)developsclearguidanceonthislabelingissueinthefuture,wewillevaluateitbeforemakingadecisiononfuturemarketingefforts.
OSHA Rates
Inits2007sustainabilityreport,TysonFoods’LostTimeRate,TotalRecordableIncidentRate,andDays,Away,Restricted,andTransferRatewerereportedas1.18,12.95,and8.88respectivelyforfiscalyear2007.TheserateswerecalculatedbaseduponamanualOSHA300Logdocumentationprocess.In2007,TysonFoodsimplementedacomputerizedOccupationalHealthandSafetySystem,andthecompany’sfiscalyear2007LostTimeRate,TotalRecordableIncidentRate,andDays,Away,Restricted,andTransferRatehavebeenrestatedtoaccuratelyreflectthedatareportedbythissystem.
Water Usage
TysonFoodsreporteditsoverallwaterusagewas28.2billiongallonsinfiscalyear2006and27.5billiongallonsinfiscalyear2007inits2007sustainabilityreport.Ayear-endperformancereviewconductedatthecloseoffiscalyear2008revealeddiscrepanciesbetweenwaterusageanddischargeamounts.Accordingly,thewaterusageamountsforfiscalyears2006and2007havebeenrecalculatedandrestatedinthisreport.
Moreover,itisimportanttonotethewaterusagedatasharedinthisreport,aswellasour2005and2007sustainabilityreports,onlyincludesperformancedatarelatedtoourchicken,beef,andporkprocessingplantslocatedintheUnitedStates.Atthistime,wedonotcollectwaterusagedatarelatedtoourprepared-foodsprocessingplants.Effortsarecurrentlyunderway,however,tobegincollectingthisdata.
Solid Waste and Recycling Data
TysonFoodsreporteditgenerated159,342tonsoflandfillwasteinfiscalyear2006and159,064tonsinfiscalyear2007.Ayear-endperformancereviewconductedatthecloseoffiscalyear2008revealeddiscrepancieswiththisdata.Accordingly,theamountofwastesenttolandfillsforfiscalyears2006and2007havebeenrecalculatedandrestatedinthecompany’s2009sustainabilityreport.
Moreover,itisimportanttonotethesolidwasteandrecyclingdatasharedinthisreportrepresentsthecompany’sU.S.locationsthatmanagetheirsolidwasteandrecyclablematerialsthroughoneofthecompany’s
nationalaccountagreements.FortheportionofTysonFoods’locationsservicedbylocalvendorsthatarenotpartofournationalaccountagreement,however,weareunabletoprovidesolidwasteandrecyclingdata.Duringfiscalyear2010,wewilldevelopastandardreportingprocessthatallsolidwasteandrecyclingvendorswillbeabletoutilize.
Environmental Fines and Penalties
Inits2007SustainabilityReport,TysonFoodsreportedenvironmentalfinesandpenaltiestotaling$201,096forfiscalyears2006and2007.Adiscrepancywiththisdatawasrevealedfollowingayear-endperformancereviewconductedatthecloseoffiscalyear2009.Penaltiesassociatedwiththefollowingincidentswereinadvertentlyomittedfromthe2007SustainabilityReport.
•Acivilpenaltytotaling$10,312forallegedgroundwatercontaminationatourFinneyCounty,Kansas,beefprocessingplant;and
•AnAdministrativeConsentOrder,withamonetarypenaltyof$5,500,forfailuretoobtainanairconstructionpermitatourDenison,Iowa,beefprocessingplant.
Therehavebeennosignificantchangesfrompreviousreportingperiodsinthescope,boundary,ormeasurementmethodsappliedinthisreport.
7.3 restateMents and CHanges in rePorting
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Toensuretheintegrityofoursocial,environmental,andfinancialperformancedata,weemployavarietyofinternalandexternalmeasurementresourcesandsystems.
Social Data
ThesocialperformancedatasharedinthisreportisrelatedtoTeamMemberstaffing,compensationandbenefits,professionaldevelopment,workplacesafety,hungerrelief,andcommunitysupport.Thisdataiscollectedfromnumeroussourcesincludingthecompany’sSAP®database;payrollsystem;Environmental,Health,andSafetyIncidentReportingSystem;worker’scompensationsystem;publicdocuments,suchaspressreleases;variousspreadsheetsandsystemsmaintainedbyourbusinessunits;andTysonFoods’2009AnnualReportonForm10-K.Detailspertainingtothescopeandlimitationsofthedatapointssharedinthisreportarepresentedasfootnotesalongside,oradjacentto,thespecificdatapoint.
Environmental Data
Theenvironmentalperformancedatasharedinthisreportisrelatedtoconsumption,disposal,emissions,recycling,andregulatorycompliance.Thisdataiscollectedfromnumeroussourcesincludingthecompany’sSAPdatabase,ElectronicComplianceAutomationToolset,andEnvironmental,Health,andSafetyIncidentReportingSystem;statementsandperformancereportsfromutilityandserviceproviders;publicdocuments,suchaspressreleases;andcompliancereportsandnotificationstoandfromfederal,state,andlocalenvironmentalagencies.Detailspertainingtothescopeandlimitationsofthedatapointssharedinthisreportarepresentedasfootnotesalongside,oradjacentto,thespecificdatapoint.
Financial Data
ThefinancialperformancedatareproducedinthissustainabilityreportisfromTysonFoods2009AnnualReportonForm10-K.Thereportdescribesthecompany’saccountingprinciplesindetailandisavailablethroughourInvestorRelationsWebsiteathttp://ir.tyson.com.AllfinancialinformationsharedinthisreportisprovidedinU.S.dollars,unlessotherwisenoted.
Eachbusinessunitcollectsandverifiesdataforwhichitisresponsible;someofthisdataisverifiedforregulatorycomplianceviabothinternalandexternalauditprocesses.Inaddition,internalsubject-matterexpertsreviewedeachsectionofthisreporttoensurecompletenessandaccuracyoftheinformationpresented.TysonFoods’management,alongwithitsLegalDepartment,conductedareviewoftheinformationpresentedinthisreportandisresponsibleforitsoverallintegrity.Anexternal,third-partyhasnotprovidedassuranceforthisreport.
7.4 data integrity
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TysonFoodsreferencedtheGlobalReportingInitiative(GRI)2006G3SustainabilityReportingGuidelinesduringthedevelopmentofthisreport.Thesevoluntaryguidelinesprovideagenerallyacceptedframeworkforthereportingofanorganization’ssocial,environmental,andeconomicperformance.ToindicateareportisGRI-based,anorganizationmustdeclaretheleveltowhichtheyhaveappliedtheGRIreportingframeworkviathe“ApplicationLevels”system.Tomeetthedifferentneedsofbeginner,intermediate,andadvancedreporters,there
arethreeapplicationlevelsincludingC,B,andA.ThereportinglevelsreflectthecoverageoftheGRIreportingframework.Areportingorganizationcanreceiveaplus(+)ifanexternalassuranceproviderverifiesthereport.Forthisreport,bothTysonFoodsandGRIconfirmthattheGRI“B”applicationlevelhasbeenmet.TheindexbelowprovidesdetailsontheGRIindicatorsaddressedinthisreport.ForadditionalinformationaboutGRI,visitwww.globalreporting.org.
STRATEGY AND ANALYSIS
GRI Extent Disclosure Description Location Reported Comments
1.1 StatementfromCEO 1.1;1.2;1.3 Fully
1.2 Keyimpacts,risks, 1.3;Throughout Fully AlsoseeTysonFoods’2009AnnualReportonForm10-K. andopportunities
ORGANIZATIONAL PROFILE
GRI Extent Disclosure Description Location Reported Comments
2.1 Organizationname 2.0 Fully
2.2 Primarybrands,products, 2.0;2.1;2.2 Fully AlsoseeTysonFoods’2009AnnualReportonForm10-KandFiscal and/orservices 2009FactBook.
2.3 Operationalstructure 2.2 Fully AlsoseeTysonFoods’2009AnnualReportonForm10-KandFiscal 2009FactBook.
2.4 Locationoforganization’s 2.0 Fully headquarters
2.5 Countriesofoperation 2.0;2.3;6.6 Fully AlsoseeTysonFoods’2009AnnualReportonForm10-KandFiscal 2009FactBook.
2.6 Natureofownershipand 2.0 Fully AlsoseeTysonFoods’2009AnnualReportonForm10-KandFiscal legalform 2009FactBook.
2.7 Marketsserved 2.1;2.2;6.6 Fully AlsoseeTysonFoods’2009AnnualReportonForm10-K.
2.8 Scaleofreportingorganization 2.0;2.1;2.2;2.3; Fully AlsoseeTysonFoods’2009AnnualReportonForm10-KandFiscal 3.0;3.2;6.2 2009FactBook.
2.9 Significantchangesduring 2.0;2.3;6.2; Fully AlsoseeTysonFoods’2009AnnualReportonForm10-K. reportingperiod 6.5;6.6
2.10 Awardsreceivedduring Throughout Fully reportingperiod
8.0 global rePorting initiative indeX
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REPORT PARAMETERS
GRI Extent Disclosure Description Location Reported Comments
3.1 Reportingperiod 7.0 Fully
3.2 Dateofmostpreviousreport 7.0 Fully
3.3 Reportingcycle 7.0 Fully
3.4 Contactpointforquestions 7.2 Fully Questionsandcommentscanbeemailedto aboutreport [email protected].
3.5 Processfordefiningreport 7.1;7.2 Fully content
3.6 Boundaryofthereport 7.0 Fully
3.7 Limitationsonthescopeor 7.0 Fully boundaryofthereport
3.8 Basisforreportingon 7.0 Fully subsidiaries,jointventures, leasedfacilities,etc.
3.9 Datameasurementtechniques 7.4 Fully andthebasisofcalculations
3.10 Restatementsofinformation 7.3 Fully providedinearlierreports
3.11 Significantchangesfrom 7.3 Fully previousreportingperiodsin thescope,boundary,or measurementmethodsapplied
3.12 GRIoverview 7.1 Fully
3.13 Externalassurancefor 7.4 Fully Externalassurancehasnotbeenprovidedforthisreport. thereport
GOVERNANCE, COMMITMENTS, AND ENGAGEMENT
GRI Extent Disclosure Description Location Reported Comments
4.1 Organization’sgovernance 3.1;6.1 Fully AlsovisitTysonFoods’InvestorRelationsWebsite structure (www.tyson.com/corporate/).
4.2 RolesoftheChairmanofthe 6.1 Fully BoardandtheCEO
4.3 MembersoftheBoard 6.1 Fully AlsovisitTysonFoods’InvestorRelationsWebsite (www.tyson.com/corporate/).
4.4 Mechanismsforshareholders 3.1;7.2;6.1 Fully AlsovisitTysonFoods’InvestorRelationsWebsite andemployeestoprovide (www.tyson.com/corporate/). recommendationstotheBoard
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GOVERNANCE, COMMITMENTS, AND ENGAGEMENT (con’t)
GRI Extent Disclosure Description Location Reported Comments
4.5 Linkagebetweencompensation 6.1 Fully AlsovisitTysonFoods’InvestorRelationsWebsite formembersofthehighest (www.tyson.com/corporate/). governancebody,senior management,andexecutives
4.6 ProcessfortheBoardtoensure 6.1 Fully conflictsofinterestareavoided
4.7 Processfordeterminingthe 6.1 Fully AlsovisitTysonFoods’InvestorRelationsWebsite qualificationsofBoardmembers (www.tyson.com/corporate/).
4.8 Statementsofinternally Throughout Fully developedmissionorvalues, codesofconduct,andprinciples relevanttosocial,environmental, andeconomicperformance
4.9 ProceduresfortheBoardto 3.1;6.1 Fully AlsovisitTysonFoods’InvestorRelationsWebsite overseetheorganization’s (www.tyson.com/corporate/). identificationandmanagement ofsocial,environmental,and economicperformance
4.10 Processforevaluatingthe 6.1 Fully AlsovisitTysonFoods’InvestorRelationsWebsite Board’sperformance,particularly (www.tyson.com/corporate/). withrespecttotheorganization’s social,environmental,and economicperformance
4.11 Explanationofwhetherandhow 6.1 Fully theprecautionaryapproachor principleisaddressedbythe organization
4.12 Externallydevelopedsocial, Throughout Fully environmental,andeconomic charters,principles,andother initiativestowhichthe organizationsubscribesor endorses
4.13 Membershipofassociation 6.7 Fully
4.14 Listofstakeholdergroups 7.2 Fully engagedbytheorganization
4.15 Identificationandselectionof 7.2 Fully stakeholderswithwhomtoengage
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GOVERNANCE, COMMITMENTS, AND ENGAGEMENT (cont’d)
GRI Extent Disclosure Description Location Reported Comments
4.16 Approachestostakeholder 7.1;7.2 Fully engagement
4.17 Keytopicsandconcernsthat 7.2 Fully havebeenraisedthrough stakeholderengagement
ECONOMIC (*=Core Indicator)
GRI Extent Disclosure Description Location Reported Comments
Economic 1.1,1.4,2.0,2.1,DMA 2.2,3.2,3.5,5.1, Fully Alsoseeour2009AnnualReportonForm10-K. 6.0,6.3
EC1* Directeconomicvaluegenerated Throughout Fully Alsoseeour2009AnnualReportonForm10-K. anddistributed
EC2* Financialimplicationsandother 4.6;6.0 Fully Alsoseepage12ofour2009AnnualReportonForm10-K. risksandopportunitiesforthe organizationrelatedtoclimate change
EC3* Coverageoftheorganization’s TysonFoods2009 Fully Seepages66-69ofTysonFoods2009AnnualReportonForm10-K. definedbenefitplanobligations AnnualReporton Form10-K
EC4* Significantfinancialassistance GRIIndex Fully Thefederalgeneralbusinesscreditsarethesignificantfinancialbenefits receivedfromgovernment receivedfromthegovernmentbyTysonFoods.Duringfiscalyears2008 and2009,thesecreditswerereflectedasbenefitsofapproximately, $7millionand$13million,respectively.
EC5 Standardentrylevelwage 3.2 Fully comparedtolocalminimum wage
EC6* Policy,practices,andproportion 5.1;6.3 Fully ofspendingonlocallybased suppliers
EC7* Proceduresforlocalhiringand 3.2 Fully proportionofseniormanagement hiredfromlocalcommunity
EC8* Developmentandimpactof 3.5 Fully infrastructureinvestmentsand services
EC9 Significantindirecteconomic NotReported Wecurrentlydonotreportonthisnon-coreindicator. impacts
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ENVIRONMENTAL (*=Core Indicator)
GRI Extent Disclosure Description Location Reported Comments
Environmental 1.1,1.4,4.0,4.1,4.2,DMA 4.3,4.4,4.5,4.6,4.7, 4.8,6.1,6.3,6.5,6.8
EN1* Materialsusedbyweightor GRIIndex Fully Wecurrentlydonothavedatasupportingthiscoreindicator.Wewill volume evaluateourabilitiesandvariousmethodologiesforcollectingand reportingonthisdatainthelong-termfuture.
EN2* Percentageofmaterialsused GRIIndex Fully Wecurrentlydonothavedatasupportingthiscoreindicator.Wewill thatarerecycledinputmaterials evaluateourabilitiesandvariousmethodologiesforcollectingand reportingonthisdatainthelong-termfuture.
EN3* Directenergyconsumptionby 4.6 Fully primaryenergysource
EN4* Indirectenergyconsumptionby 4.6 Fully primarysource
EN5 Energysavedduetoconservation 4.6 Fully andefficiencyimprovements
EN6 Initiativestoprovideenergy 6.5 Fully efficientorrenewableenergy- basedproductsorservices
EN7 Initiativestoreduceindirect 4.6 Fully energyconsumptionand reductionsachieved
EN8* Totalwaterwithdrawalbysource 4.6;GRIIndex Fully Wecurrentlydonothavedatasupportingthe“bysource”requirement ofthiscoreindicator.Wewillevaluateourabilitiestocollectandreport thisdatainthenearfuture.
EN9 Watersourcessignificantly NotReported Wecurrentlydonotreportonthisnon-coreindicator. affectedbywithdrawalofwater
EN10 Percentageandtotalvolumeof 4.6 Fully TysonFoods’effortstoreduce,reuse,and/orrecyclewaterare waterrecycledandreused presentedasthecompany’swaterconservationefforts.
EN11* Locationandsizeoflandowned, GRIIndex Fully Afterreviewingtheregionalbiodiversity“hotspots”identifiedbyConservation leased,managedin,oradjacent International,TysonFoods,atthistime,hasnotidentifiedanyofits toprotectedareasandareasof U.S.-basedoperationsthatarein,oradjacentto,legallyprotectedhigh highbiodiversityvalueoutside biodiversityareas.Foradditionaldetails,pleasevisitConservation protectedareas Internationalathttp://www.conservation.org/Pages/default.aspx.
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ENVIRONMENTAL (*=Core Indicator) (cont’d)
GRI Extent Disclosure Description Location Reported Comments
EN12* Descriptionofsignificantimpacts GRIIndex Fully SeecommentforEN11 ifactivities,products,andservices onbiodiversityinprotectedareas andareasofhighbiodiversity valueoutsideprotectedareas
EN13 Habitatsprotectedorrestored NotApplicable SeecommentforEN11
EN14 Strategies,currentactions,and NotApplicable SeecommentforEN11 futureplansformanagingimpacts onbiodiversity
EN15 NumberofIUCNRedListspecies NotApplicable SeecommentforEN11 andnationalconservationlist specieswithhabitatsinareas affectedbyoperations
EN16* Totaldirectandindirect 4.6 Fully greenhousegasemissionsby weight
EN17* Otherrelevantindirect 4.6 Fully greenhousegasemissionsby weight
EN18 Initiativestoreducegreenhouse 4.6;6.5 Fully gasemissionsandreductions achieved
EN19* Emissionsofozonedepleting GRIIndex Fully TysonFoods’emissionsofozonedepletingsubstances(HCFC substancesbyweight 134/134a)isapproximately0.00108millionmetrictonsperyear.Thisis lessthan0.018percentofthecompany’stotalairemissions.
EN20* NOx,SOx,andothersignificant 4.6;GRIIndex Fully Wecurrentlydonothavedatasupportingthe“byweight”requirement airemissionsbytypeandweight ofthiscoreindicator.Wewillevaluateourabilitiestocollectandreport thisdatainthenearfuture.
EN21* Totalwaterdischargebyquality GRIIndex Fully Wecurrentlydonothavedatasupportingthiscoreindicator.Wewill anddestination evaluateourabilitiestocollectandreportwaterdischargebyquality anddestinationdatainthenearfuture.
EN22* Totalweightofwastebytype 4.6;GRIIndex Fully Wecurrentlydonothavedatasupportingthe“bytypeanddisposal anddisposalmethod method”requirementofthiscoreindicator.Wewillevaluateourabilities tocollectandreportthisdatainthenearfuture.
EN23* Totalnumberandvolumeof 4.6 Fully AlsoseeTysonFoods’2009AnnualReportonForm10-K. significantspills
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ENVIRONMENTAL (*=Core Indicator) (cont’d)
GRI Extent Disclosure Description Location Reported Comments
EN24 Weightoftransported,imported, NotReported Wecurrentlydonotreportonthisnon-coreindicator. exported,ortreatedwastedeemed hazardousunderthetermsofthe BaselConvention
EN25 Identity,size,protectedstatus, NotReported Wecurrentlydonotreportonthisnon-coreindicator. andbiodiversityvalueofwater bodiesandrelatedhabitats significantlyaffectedbythe reportingorganization’s dischargesofwaterandrunoff
EN26* Initiativestomitigate 4.6 Fully environmentalimpactsof productsandservices
EN27* Percentageofproductssoldand 4.6 Fully theirpackagingmaterialsthatare reclaimedbycategory
EN28* Monetaryvalueofsignificantfines 4.7 Fully andtotalnumberofnon-monetary sanctionsfornon-compliance withenvironmentallawsand regulations
EN29 Significantenvironmentalimpacts NotReported Wecurrentlydonotreportonthisnon-coreindicator. oftransportingproductsandother goodsandmaterialsusedforthe organization’soperations,and transportingmembersofthe workforce
EN30 Totalenvironmentalprotection NotReported Wecurrentlydonotreportonthisnon-coreindicator. expendituresandinvestments bytype
LABOR PRACTICES (*=Core Indicator)
GRI Extent Disclosure Description Location Reported Comments
LaborDMA 1.1,1.4,3.0,3.1,3.2, 3.3,4.2,5.3,5.4,6.1
LA1* Workforcebyemploymenttype, 3.2;GRIIndex Fully Wereportontotalnumberofemployees,whomwecallTeamMembers. employmentcontract,andregion Approximately99percentofourU.S.-basedTeamMembersservein full-timepositions.
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LABOR PRACTICES (*=Core Indicator) (cont’d)
GRI Extent Disclosure Description Location Reported Comments
LA2* Numberandrateofemployee 3.2;GRIIndex Fully Wereportourturnoverrate,butdonotbreakthisratedownbyage, turnoverbyage,group,gender, group,gender,orregion.Thismaybeareportingindicatorwefurther andregion evaluateforreportingcapabilitiesinthelong-termfuture.
LA3 Benefitsprovidedtofull-time 3.2 Fully employees
LA4* Percentageofemployeescovered 3.2 Fully bycollectivebargaining agreements
LA5* Minimumnoticeperiod(s) 3.2 Fully regardingsignificantoperational changes
LA6 Percentageofemployees 3.3 Fully representedinformaljoint management-workerhealth andsafetycommittees
LA7* Ratesofinjury,occupational 3.3 Fully diseases,lostdays,and absenteeism,andnumberof work-relatedfatalities
LA8* Education,training,counseling, 3.2;3.3 Fully prevention,andriskcontrol programsinplacetoassist workforcemembers,theirfamilies, orcommunitymembersregarding seriousdisease
LA9 Healthandsafetytopicscovered 3.3 Fully informalagreementswithtrade unions
LA10* Averagehoursoftrainingperyear 3.1;3.2;3.3;4.2;6.1 Fully Wemaintainextensivetrainingprogramsrelatedtokeybusinessareas peremployeebyemployee suchasfoodsafety,ethicsandcodeofconduct,anti-trustand category corruption;workplacesafety,animalwelfare,employmentpractices,and environmentalprotection.Atthistime,wearenotcapableoftracking averagetraininghoursperemployeebycategoryhowever.Thismaybe areportingindicatorwefurtherevaluateforreportingcapabilitiesinthe long-termfuture.
LA11 Programsforskillmanagement 3.2;5.3;5.4 Fully andlifelonglearning
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LABOR PRACTICES (*=Core Indicator) (cont’d)
GRI Extent Disclosure Description Location Reported Comments
LA12 Percentageofemployees 3.2 Fully receivingregularperformance andcareerdevelopmentreviews
LA13* Compositionofgovernance 6.1 Fully bodiesandbreakdownof employeespercategoryaccording togender,agegroup,minority groupmembership,etc.
LA14* Ratioofbasicsalaryofmento NotReported Wecurrentlydonotreportonthiscoreindicator. womenbyemployeecategory
HUMAN RIGHTS (*=Core Indicator)
GRI Extent Disclosure Description Location Reported Comments
HumanRights 1.1,1.4,3.0,3.1,DMA 3.2,3.3
HR1* Percentageandtotalnumberof GRIIndex Fully Outinvestmentclausesdiscusscompliancewithapplicablefederal, significantinvestmentagreements state,andlocalregulationsbutdonotspecificallyincludehuman thatincludehumanrightsclauses rightsclauses.
HR2* Percentageofsignificantsuppliers GRIIndex Fully Wecurrentlydonotscreenoursuppliersandcontractorsonhuman andcontractorsthathave rights.Wearedevelopinga“SupplierCodeofConduct,”however,that undergonescreeningonhuman willsetforthsupplierandcontractorexpectationsonkeybusiness rights issuessuchasregulatorycompliance,employmentpractices(including humanrights),foodsafetyandqualityassurance,workplacehealthand safety,animalwelfare,andenvironmentalprotection.Weplantorelease ourSupplierCodeofConductinthenearfuture.
HR3 Totalhoursofemployeetraining 3.1;3.2;3.3 Fully onpoliciesandprocedures concerningaspectsofhuman rights
HR4* Totalnumberofincidentsof 3.2;GRIIndex Fully Generally,TysonFoodsdoesnotpubliclydiscussreportedincidents discrimination ofdiscrimination.AsnotedinSection3.2ofthisreporthowever,we considerdiscriminationtobeaseriousissueandinvestconsiderable resourcestopreventitsoccurrence.Moreover,wefullyinvestigateeach allegationofdiscriminationand,ifnecessary,implementcorrective. Allegedincidentsofdiscriminationresultinginstateorfederalcourt filingsaregenerallyamatterofpublicrecord.Whilestateandfederal databasesmaybesubjecttoasubscriptionorsearchfee,these recordscantypicallybeaccessedwithintherespectivecourtsystem viatheInternet.
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HUMAN RIGHTS (*=Core Indicator) (cont’d)
GRI Extent Disclosure Description Location Reported Comments
HR5* Operationsidentifiedinwhichthe 3.2 Fully righttoexercisefreedomof associationandcollective bargainingmaybeatsignificant risk
HR6* Operationsidentifiedashaving 3.2 Fully significantriskforincidentsof childlabor
HR7* Operationsidentifiedashaving 3.2 Fully significantriskforincidentsof forcedorcompulsorylabor
HR8 Percentageofsecuritypersonnel NotReported Wecurrentlydonotreportonthisnon-coreindicator. trainedintheorganization’spolicies orproceduresconcerningaspects ofhumanrights
HR9 Totalnumberofviolationincidents 3.2 Fully involvingrightsofindigenous people
SOCIETY (*=Core Indicator)
GRI Extent Disclosure Description Location Reported Comments
SocialDMA
SO1* Nature,scope,andeffectiveness 3.5 Fully ofanyprogramsandpractices thatassessandmanagetheimpact ofoperationsoncommunities
SO2* Percentageandtotalnumberof 6.1 Fully businessunitsanalyzedforrisks relatedtocorruption
SO3* Percentageofemployeestrained 6.1 Fully intheorganization’santi-corruption policiesandprocedures
SO4* Actionstakeninresponseto NotReported Wecurrentlydonotreportonthiscoreindicator. incidentsofcorruption
SO5* Publicpolicypositionsand 6.7;6.8 Fully participationinpublicpolicy developmentandlobbying
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SOCIETY (*=Core Indicator) (cont’d)
GRI Extent Disclosure Description Location Reported Comments
SO6 Totalvalueoffinancialandin-kind 6.7 Fully contributionstopoliticalparties, politicians,andrelatedinstitutions
SO7 Totalnumberoflegalactionsfor NotReported Wecurrentlydonotreportonthisnon-coreindicator. anti-competitivebehavior,anti- trust,andmonopolypractices
SO8* Valueofsignificantfinesandtotal 3.3;4.7;GRIIndex Forthisindicator,TysonFoodsdefinessignificantasfinesequaltoor ofnon-monetarysanctionsfor greaterthan$500,000dollars.Twospecificfinesequaltoorgreaterthan non-compliancewithlawsand thisamountarepresentedinsections3.3and4.7ofthisreport.Tyson regulations Foods,atthistime,hasnotidentifiedanyotherfinespaidduringfiscal years2008and2009equaltoorgreaterthanthisamount.
PRODUCT RESPONSIBILITY (*=Core Indicator)
GRI Extent Disclosure Description Location Reported Comments
ProductResponsibilityDMA
PR1* Lifecyclestagesinwhichhealth 5.1;5.3;5.4 Fully andsafetyimpactsofproducts andservicesareassessedfor improvement
PR2 Totalnumberofincidentsofnon- NotReported Wecurrentlydonotreportonthisnon-coreindicator. compliancewithregulationsand voluntarycodesconcerninghealth andsafety
PR3* Typesofproductsandservice 5.2;5.4 Fully informationrequiredby procedures
PR4 Totalnumberofincidentsofnon- 5.1 Fully compliancewithregulationsand voluntarycodesconcerning productandserviceinformation andlabeling
PR5 Practicesrelatedtocustomer 5.2;5.3;5.4 Fully satisfaction
PR6* Programsforadherencetolaws, 5.5 Fully standards,andvoluntarycodes relatedtomarketingcommunications
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PRODUCT RESPONSIBILITY (*=Core Indicator) (cont’d)
GRI Extent Disclosure Description Location Reported Comments
PR7 Totalnumberofincidentsofnon- 5.5 Fully compliancewithregulationsand voluntarycodesconcerning marketingcommunications
PR8 Totalnumberofsubstantiated NotReported Wecurrentlydonotreportonthisnon-coreindicator. complaintsregardingbreaches ofcustomerprivacyandlosses ofcustomerdata
PR9* Valueofsignificantfinesfornon- GRIIndex Fully Wedidnotincuranyfinesfornon-compliancewithlawsandregulations compliancewithlawsand concerningtheprovisionanduseofourproductsduringfiscalyears regulationsconcerningthe 2008and2009. provisionanduseofproducts andservices
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8.1 aCKnoWledgeMentsWethankthefollowingcontributorsfortheirhelp,guidance,andvaluableinputwiththedevelopmentofthisreport:AuditandCompliance;HumanResources;QualityAssurance;AnimalWell-Being;Environmental,Health,andSafetyServices;International;ResearchandDevelopment;InvestorRelations;PurchasingandSourcing;Legal;andExternalRelations.
WealsowishtoextendaspecialthankstoTysonFoods’ExternalRelationsDepartmentfortheirdesign,photography,andeditorialassistanceinthedevelopmentandproductionofthisreportandWebsite.
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8.2 ContaCtsFormoreinformationaboutTysonFoods’sustainabilityeffortsandperformance,youmaycontactusthefollowingways:
Email:[email protected]
Website:www.tyson.com
Mail/Phone: KevinJ.Igli
SVPandChiefEHSOfficer
TysonFoods,Inc. 2200DonTysonParkway,CP393 Springdale,AR72762-6999
(479)290-4713
LeighAnnJohnston
EHSTraining,Communication,and SustainabilityManager
TysonFoods,Inc. 2200DonTysonParkway,CP39 Springdale,AR72762-6999
(479)290-3419
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