| www.hermanmiller.com |
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| Share Price (3/15/07): | $36.55 |
| OVERVIEW: | |
| Market Value (3/15/07): | $2.4 BIL |
| Revenue (2006): | $1.7 BIL |
| Employees: | 6,054 |
| Return on Equity 2006: | 64.2% |
| HIP PRACTICES: | |
| Vision: | Zero Ecological Footprint by 2020. Zero landfill goal set in 1989. Green building principles and participatory management Ingrained in the company DNA by Herman Miller's founders--and referred to as "collective capitalism," whereby employees own a share of the business. |
| Metrics: | 4 years ago established ten value statements and ten goals set out to achieve over a 5-year horizon. "Power of Ten" core metrics cascade across the organization; two are environmental, and two are community (volunteerism and charity). Whereas always measured landfill, energy consumption, recycled content, water, and air emissions but have recently added Economic Value Added metric for environmental analysis across entire organization. |
| Financials: | Design for Environment" products expected to account for 32% of revenue, double last years. See next generation of workers as integrating their work and personal life together to have a unified sense of meaning. |
| Accountability: | CEO reviews integrated scorecard w/Board annually, and quarterly with VPs. Five-year goals and annual Board review. |
| Decision-Making: | Economic Value Added (EVA) tool used company-wide to incorporate environmental and impact metrics into full calculation of net benefit. Impact on ergonimic health is measured in research and development phase. Specific goals for top tier suppliers in environment and diversity. |
| HIP OUTCOMES: | |
| Health: |
The Aeron chair is GreenGuard certified as a low-emitting product that meets current indoor air quality standards. GreenGuard certified products also meet the emissions requirements of the State of Washington Furniture Systems criteria and the U.S. EPA Procurement Guidelines for Office Furniture. |
| Wealth: |
Approximately 15%, or 400 of Herman Miller's 6,000 employees, work on environmental initiatives, directly or indirectly. All Herman Miller employees with one month of service are entitled to own stock in the company. As of July 1999, about 16 percent of all outstanding shares in the Herman Miller were held by employee-owners. |
| Earth: |
Already 63% complete toward 2020 goal of zero footprint. Herman Miller honored by the U.S. Environmental Protection Agency (EPA) with its WasteWise Award for its commitment to build or renovate its facilities--leased or owned--to meet at least a LEED (Leadership in Energy and Environmental Design) Silver certification. Herman Miller's West Michigan manufacturing sites considered Clean Corporate Citizens by the Michigan Department of Environmental Quality (MDEQ). The Aeron chair is up to 94 percent recyclable at the end of its useful life. Aeron is comprised of 66 percent recycled materials. The recycled content breaks down to 44 percent post-consumer and 22 percent pre-consumer content. In Mira chair opted to use a more expensive product to achieve environmental standard. There also have been products like the Leed light, that has wiring with PVC in it, so it's environmental score was 49 out of 50 but still launched and company continues to look for a PVC alternative for future. |
| Equality: |
Herman Miller purchased $87.4 million from minority-owned suppliers, which represented 12 % of total purchases, in fiscal year 2005-06. |
| WHAT'S NEXT: | |
| Practices: | Integrated eco-mindset keeps innovating new products, leading to higher share and margins. |
| Outcomes: | Showcasing "cradle-to-cradle" concepts are real, practical and generate ROI. |
| OTHER RATINGS: | |
| KLD: Companies are rated from negative (0) to positive (6) in seven areas. | Community: 5.4 Governance: 2.0 Diversity: 6.0 Employees: 6.0 Environment: 6.0 Human Rights: 0.5 Product: 5.5 Included in KLD Indices for: Domini 400, Broad Market Social Index, Global Climate 100, Large Cap Social Index |
| Calvert Rating: Companies are rated on a scale of 1 (substantially below Calvert standards) to 5 (superior). | Not published. |
| RESOURCES: | |
| Sustainability or CSR Report: | Corporate Awards and Recognition |
| Annual Report: | 2006 Annual Report |
--Alex C. Pasquariello
