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GOVERNANCE

Stakeholder Engagement

EMC actively engages with stakeholders to build trust and foster dialogue, leveraging their expertise and perspective to strengthen our business by providing insight into emerging issues that are important to our stakeholders and to our business. In addition, this engagement helps us validate the areas of greatest importance as well as the solutions to address them within our company and beyond.

In 2013, EMC received feedback from several stakeholders on our previous year’s sustainability report. This feedback influenced content for this report in a number of ways, including continued use of the dashboard and graphics, more data on mid-range targets and sustainability goals, and further emphasizing the top material factors.

Also in 2013, EMC held two stakeholder engagement events facilitated by Ceres, a network of investors, companies, and public interest groups working to accelerate the adoption of sustainability practices. One was an in-person forum focusing on materiality, the 2012 sustainability report, eWaste, diversity and inclusion, supply chain responsibility, and facility energy and carbon; the other was a teleconference focusing on sustainability employee engagement. EMC participants included subject matter experts, sustainability professionals, managers, and executives. Stakeholder participants included consultants, non-governmental organizations, socially responsible investment analysts, supply chain auditors, and business academics. They were chosen based on expertise in diversity, employee engagement, carbon and energy management, eWaste, and supply chain social and environmental responsibility.

Key topics covered during the spring forum included:

  • Communicating material issues
  • Integrating sustainability into the risk management process
  • Disclosing key suppliers and diversity data to provide additional opportunities for transparency
  • Developing productivity metrics for eWaste management
  • Strengthening governance by linking executive compensation to achievement of sustainability goals and targets

Key topics covered during the fall teleconference included:

  • Measurement and goals for employee engagement programs on sustainability
  • Incentives for employees to integrate sustainability into their daily work
  • Additional communications to employees regarding sustainability
  • Additional communications with customers to meet EMC’s sustainability goals, and to extend leadership and collaboration throughout the value chain

The recommendations were used to inform direction for this report and future EMC sustainability practices.

After the 2013 Annual Meeting of Shareholders, we dialogued and met with many shareholders to discuss our executive compensation program. Several themes emerged, including:

  • Support for our pay-for-performance philosophy;
  • Support for multi-year performance goals;
  • Support for continued use of existing operational performance metrics;
  • Request for more widespread use of a return metric, such as total shareholder return (“TSR”); and
  • Request to simplify our program.

After considering our business strategy, the results of the 2013 advisory “say-on-pay” vote and our dialogue with shareholders, the Compensation Committee changed the design of the compensation program for 2014 as follows:

  • Introduced a long-term equity incentive plan to replace the annual performance equity award program;
  • Added a TSR performance metric to the long-term equity incentive plan;
  • Simplified the equity program by decreasing the different types of equity awards utilized; and
  • Modified the Executive MBO to emphasize execution of our Federation strategy.

EMC also has ongoing engagement with a wide variety of other stakeholders, including current and prospective employees, customers, shareholders, non-governmental organizations (NGOs), suppliers, industry groups, and local schools and communities.

Below are some examples of how we engaged with stakeholders in 2013 along with the resulting impact.

Stakeholder Group How We Engage Examples of Impact
CURRENT
EMPLOYEES
  • “Great Place to Work (GPTW)” employee survey.
  • Annual Innovation Conference & Roadmap
  • Recognition@EMC
  • Sustineo
  • Nelson Award for Initiative in Sustainability
  • Sustainability Employee Engagement Council
  • Quarterly COE Sustainability Summits
  • Social media (EMC|ONE)
  • Sustainability Competitions
  • Earth Day and World Environment Day events

    Feedback from the GPTW survey resulted in initiatives including more awards and recognition for employees, improving the coffee at EMC’s facilities, and removing all parking spots designated for senior executives.

    Winning innovation ideas get cash awards and incubation commitments to pursue the potential of turning them into products, services, or processes for EMC and the industry at large.

    We used the recognition system to send a thank you and acknowledgement to everyone who submitted a proposal in response to the environmental stewardship challenge as part of the Innovation Roadmap.

    The Nelson Award was given to individuals whose submissions to the environmental stewardship challenge did not win, but did show significant initiative in driving sustainability within their jobs at EMC.

    Sustineo, rolled out company-wide in 2013, encourages dialog and helps employees be more sustainable in their daily lives. The tool is a social, gamified platform that allows employees to learn about sustainable behaviors, perform sustainable actions, get points for those actions, and compete in groups with other teams.

    The Sustainability Employee Engagement Council was formed to act as a sounding board for sustainability ideas. One concept discussed was the need for physical reminders of sustainability, such as bringing in art from a local sustainability project to EMC. We continue to listen for ways to make sustainability real to our employees.

    The various communities on our social media platform, EMC|ONE, allow employees to raise concerns and have them discussed and addressed. One initiative driven through the platform was the implementation of electric car charging stations, which continues to expand today.

    We held an email spring cleaning contest, designed to bring awareness to the need for deleting emails no longer needed by the user or required due to legal restrictions. Email takes up storage, and uses electricity and hardware to maintain. It is difficult to gauge the exact quantity of total storage capacity reduced by the contest, but the winner deleted 6.85 GB of email.

    In 2013, 2.7 percent of our employees took part in tuition reimbursement. Also in 2013, we announced a partnership with MIT’s Sloan School of Management through which EMC employees can receive discounts on all of MIT’s Executive Education open enrollment courses.

    At the 2013 World Environment Day expo at the corporate headquarters, a solar installer signed up 80 individuals for solar evaluations.

    EMC continued engagement with employees at our Centers of Excellence. Ownership of the meetings has transitioned to the COEs, allowing them to choose and discuss initiatives important to their stakeholders, such as community involvement in education.

    To learn more, visit Our People & Workforce.

Prospective
Employees
  • Engaging with universities and NGOs
  • Internships
  • Career days

    We formed a new partnership with University of Puerto Rico/Mayaguez (UPRM) and Florida International University. Our partnership with UPRM has resulted in several full-time hires.

    In 2013, EMC began a partnership with Bottom Line, a non-profit dedicated to helping disadvantaged students with one-on-one guidance through the application process and during college. EMC provides mentoring, career counseling, information sessions, and resume writing workshops to the students, and also tracks where they go to college. After one year working with the organization, we have hired two Bottom Line students into full-time positions at EMC.

    To learn more, visit Our People & Workforce.

Customers

  • “Voice of Experience” survey
  • EMC Community Network (ECN)
  • Customer council focus group
  • One-on-one meetings
  • CDP supplier reports
  • Extensive RFP questions and sup­plier questionnaires
  • Executive Briefing Centers
  • Engagement at EMC World
  • Customer Security Management Office
  • Product Security Response Center

Our Executive Briefing Centers bring EMC customers together with executives and experts to encourage multi-way discussions about industry-leading technology and strategy. The meetings are catered to specific customer needs and the local market, but we have noticed a growing interest in the topic of sustainability and EMC’s efforts in this area. We have briefing centers located in Hopkinton, Massachusetts; Santa Clara, California; Bedford, Massachusetts; Washington, D.C.; Cork, Ireland; Bangalore, India; Singapore; Tokyo, Japan; and Beijing, China.

IT customers are seeking more information about the products they buy and want to understand the security protections in the software they use. In response, EMC launched an initiative in 2013 to use blog posts and other media to share with customers about how we work to ensure information security and privacy. EMC’s Customer Security Management Office (CSMO) works directly with internal departments as a customer advocate to enhance our operations to meet or exceed customer expectations.

Through our Product Security Response Center, we issue EMC security advisories (ESAs) to notify customers about potential vulnerabilities and provide corrective measures before adversaries are able to exploit the situation. In 2013, we issued close to 100 ESAs to our customers.

To learn more, visit Customers.

Shareholders

  • Regular outreach with institutional investors and other shareholders
  • Annual shareholder meeting
  • Bloomberg Sustainability Survey
  • Inclusion of Sustainability overview in Annual Report on Form 10-K, Letter to Shareholders and earnings presentations
  • CDP reports (water and carbon)

We regularly respond to analyst ratings surveys and participate in investor conferences (e.g., UBS Forum).

During 2013, as part of its long-standing shareholder engagement program, members of EMC management met with shareholders on a variety of topics. We spoke with representatives from our top institutional investors, mutual funds, public pension funds, labor unions and socially responsible funds about various corporate governance and compensation matters.

To learn more, visit EMC’s 2014 Proxy Statement and 2013 Annual Report on Form 10-K.

Suppliers

  • Supplier and SAQ audits
  • Annual Supplier Day
  • Supplier Scorecard
  • Quarterly business reviews
  • SER Link newsletter
  • Blue Sky Supplier Sustainability Award
  • Training
  • One-on-one assistance
  • Site visits

We made significant advances in both the methodology and weight of the Supplier Scorecard. The sustainability section more than tripled in points. This has already led to increased focus on suppliers’ efforts to communicate their initiatives to EMC. In some cases, suppliers have made additional investments in order to meet EMC expectations on performance.

Though we can’t provide individual training for every supplier, we spoke with multiple supplier contacts in different geographies and commodities to better understand what resources would provide the most value. Armed with this knowledge, we began to develop an online resource library for suppliers. The resource contains short training modules on different topics and at different levels, including best practices, case studies, and references to already-existing resources available through public sources.

To learn more, visit Supply Chain.

NGOS AND INDUSTRY GROUPS

  • Targeted session
  • Individual feedback to sustainability report
  • Memberships
  • Board participation
  • Committee participation
  • Public policy advocacy

We partnered with Ceres to hold our multi-stakeholder forum and a teleconference on sustainability employee engagement.

We communicated with individual stakeholders to gain feedback on our reporting methodology.

We continued participating in the EICC-GeSI Extractives workgroup to develop programs for the responsible sourcing of minerals, including the Conflict-Free Smelter program and mineral traceability schemes.

We continued our board membership in The Green Grid to establish industry-wide standards for energy efficiency and eWaste metrics.

SCHOOLS AND COMMUNITIES

  • Town meetings
  • Faculty engagement activities
  • Volunteerism with education and community organizations

In November 2013 at Rajiv Gandhi Technical University (RGTU) in Bhopal, India, EMC held the fifth annual Academic Alliance Conference. The four-day event revolved around the themes of IT transformation in information storage, cloud computing, and Big Data. It attracted more than 400 students and faculty members representing 124 institutions. RGTU also conducted a webcast of the conference to over 350,000 students at 225 institutions. The conference featured speakers from around the world.

EMC’s Academic Alliance team engages with faculty to update and enhance the program. The team encourages feedback through our faculty portal, regular email communications, and interactions with Academic Alliance program managers. We also encourage students to connect with their global peers and industry experts through the EMC Proven Professional online community.

To learn more, visit Communities.

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