| www.ge.com |
|
| Share Price (3/15/07): | $34.52 |
| OVERVIEW: | |
| Market Value (3/15/07): | $355.0 BIL |
| Revenue (2006): | $163.4 BIL |
| Employees: | 316,000 |
| Return on Equity 2006: | 18.64% |
| HIP PRACTICES: | |
| Vision: | CEO Immelt's "eco-magination" vision visible and compelling--except it is not yet comprehensive for Commercial Finance, GE Money, and NBC Universal. |
| Metrics: | Strong for employee and suppliers; customer metrics evolving into real-time feedback; still need to track impact on customers. |
| Financials: | Only profitable roll-outs pursued, but integrating ecoMagination vision. $750mm annual R&D for green products in 2005 doubling to $1.5B annual R&D for green product development by 2009. |
| Accountability: | Board-level impact committee led by former Sen. Nunn meets three times yearly; quarterly reviews at business group level. Operating reviews monthly with line-of-sight to projects. |
| Decision-Making: | Overriding eco-theme is "not grass and daisies; BUT get your spreadsheets in here"--with consequences and rewards if you do, and disincentives if you don't. |
| HIP OUTCOMES: | |
| Health: |
Increased access to affordable health care through lower-priced new products accessible to billion-consumer markets, especially low-cost medical devices for low-income hospitals. Injury and illness rates higher post-NBC Universal, triggering overall corporate increase. Employee "engagement" is 74% favorable for professionals and managers. 75% of all employees said they strongly "liked the job they have." Since 2005, new employees no longer eligible for company-paid retirement health benefits. |
| Wealth: |
Staff income and benefits are attractive -- over a decade, average increases for each have exceeded the US average. At 5+ million shareholders, the most widely held stock in the world. Two million individuals globally own stock in GE, and 40,000 retirees benefit from stock appreciation and dividends that have averaged 16% annual returns over the past decade. |
| Earth: |
$10 billion in revenue is certified "green," but only 7% of revenue. In 2005, had fewest air exceedances ever -- keeping society healthier from surprise toxins. But cleanup commitments remain across several sites globally. |
| Equality: |
In 2005, 40% of senior executives were women, U.S. minorities, and non-U.S. citizens; nearly doubling from 22% of Officers in 2000. Nearly one quarter of GE's leadership comes from outside the U.S. |
| WHAT'S NEXT: | |
| Practices: | Full implementation of EcoMagination and its integration with the business needs to take hold to yield true business benefits. |
| Outcomes: | "Green" revenue increases will provide the market power for suppliers to innovate and compete for providing sustainable manufacturing and materials. |
| OTHER RATINGS: | |
| KLD: Companies are rated from negative (0) to positive (6) in seven areas. | Community: 4.5 Governance: 1.8 Diversity: 5.9 Employees: 4.4 Environment: 2.3 Human Rights: 0.0 Product: 2.6 Included in KLD Indices for: Global Climate 100 |
| Calvert Rating: Companies are rated on a scale of 1 (substantially below Calvert standards) to 5 (superior). | Environment: 1 Workplace: 2 Business Practices: 1 Human Rights: 2 Community Relations: 5 Included in Calvert funds: No |
| RESOURCES: | |
| Sustainability or CSR Report: | General Electric : Citizenship : Scope of the Report |
| Annual Report: | General Electric 2005 Annual Report |
--Ruthie Ackerman and R. Paul Herman
