EMC has a long history of stakeholder engagement. We are committed to engaging in constructive and meaningful dialogue with stakeholders to build trust, leverage their expertise and perspectives, and gain insights into emerging issues important to our stakeholders and our business. In addition, engagement helps us validate our material issues as well as the solutions to address them within our company and beyond.
EMC engages with a wide variety of stakeholders, including employees, customers, shareholders, NGOs, suppliers, industry groups and local communities. We believe that positive, two-way dialogue builds informed relationships that promote transparency and accountability. The on-going dialogue has influenced our sustainability strategy beyond the pages of this report; assisted in the selection of metrics and appropriate indicators when absolute metrics are not feasible; increased engagement of employees throughout EMC; helped frame discussions about sustainability and strategy with the Board of Directors, the CEO and other executives; and generated ideas for leveraging technology for positive impact and greater employee engagement.
Our engagement with stakeholders provides an opportunity to test new ideas, solicit suggestions for ways to address industry-wide challenges, determine priority areas in which EMC can have the greatest impact, and identify emerging issues and opportunities. It also serves as a vehicle for EMC to share our perspectives on key issues, highlight areas of importance, and help stakeholders better understand EMC’s journey.
While the EMC Board of Directors, through the Governance Committee, oversees shareholder matters and participates in meetings with shareholders as appropriate, management has the principal responsibility for shareholder communications and engagement. Management provides regular updates to the Board concerning shareholder feedback. The Board considers shareholder perspectives as well as the interests of all stakeholders when overseeing company strategy, formulating governance practices and designing compensation programs.
During 2015, members of EMC’s Board of Directors and management dialogued and met with shareholders and other stakeholders as part of our annual outreach program as well as at other times throughout the year. We spoke with representatives from our top institutional investors, mutual funds, public pension funds, labor unions and socially focused funds (representing approximately 42% of our outstanding shares). Topics discussed included our strategy and performance; the pending merger with Dell; corporate governance matters such as Board composition and refreshment, succession planning and Board leadership structure; our executive compensation program; and sustainability initiatives. We solicited feedback from shareholders on these subjects and provided a summary of responses to the Board. Directors who participated in the meetings also shared their perspectives on these meeting with the full Board.
At our 2015 Annual Meeting of Shareholders, our shareholders expressed strong support for our executive compensation program, with over 92%of votes cast voting in favor of the proposal.
For more information, please see EMC’s Proxy Statement for the 2016 Annual Meeting of Shareholders.
Sustainability Stakeholder Forum
In 2015, EMC continued our dialogue with stakeholders who had participated in our 2014 forum facilitated by Ceres, a nonprofit organization working with investors, companies, and public interest groups to accelerate the adoption of sustainable business practices.
Among other things, we solicited feedback on our 2014 Sustainability Report, published in May of 2015. Based on the feedback, we made several changes to our approach to reporting for 2015, including the following:
- We decided to base this year’s main report on last year’s executive report, focusing on the aspects that are most material to our stakeholders and our business.
- We have placed the material issues in the context of the key themes that drive our business and our sustainability strategy.
- We chose not to create “high production” versions of our detailed reports, which remain text-heavy, but downloadable versions are available to assist those who prefer hard copy or versions from which they can copy text.
The methodology for EMC’s 2015 materiality assessment was also directly informed by feedback provided by stakeholders when reviewing our previous assessment results in 2013. As a result of that conversation, we paid particular attention in 2015 to integration and alignment with EMC’s risk management process and business strategy. Learn more about EMC’s approach to identifying our most critical sustainability issues.
Also in 2015, EMC held a teleconference session with stakeholders, facilitated by Ceres, focusing on human rights both upstream (in our supply chain) and downstream (during product use). Participants included consultants, NGOs, investment analysts, business academics, and suppliers as well as EMC supply chain professionals, sustainability team, and business leaders. Key topics covered during the teleconference included:
- Saliency versus materiality
- Salient human rights issues for the IT industry
- Moving beyond audits to reach stakeholders and assess impact
- Balance between respect and remedy
- The role of standards
The topics and feedback from the stakeholder call are being used to inform our human rights policies, practices and strategy.
Below are some additional examples of how we incorporated stakeholder feedback in 2015.
|STAKEHOLDER GROUP||HOW WE ENGAGE||EXAMPLE(S) OF IMPACT|
“MyVoice” employee survey
Inside EMC, our corporate social media and communications platform
Annual Innovation Conference & Roadmap
Sustineo, an employee engagement platform
Sustainability Ambassador Program
Quarterly COE Sustainability Summits
Earth Day and World Environment Day events
EMC uses the MyVoice survey results as a platform to drive change and evolution of our culture across the organization. Individual groups throughout EMC receive and assess their results from the MyVoice survey, and changes were made throughout the organization in response to the employee feedback. For example, in 2015, in Argentina, EMC launched “Women Café” – quarterly meetings for female employees to discuss career development, and work/life balance. The events are expanding to Chile in 2016.
Also in 2015, EMC increased our 401(k) match in response to input from our workforce, improving our alignment with employee expectations.
In response to the need to build the talent pipeline with female candidates, EMC EMEA hosts “Discovery Days” when young women visit EMC, hear from female leaders about the business, and tour the building. This encourages young women to pursue a career in STEM.
“Voice of Experience” survey
TCE Innovation Award
EMC Community Network (ECN)
Customer council focus group
CDP supplier reports
Executive Briefing Centers
Customer Security Management Office
Product Security Response Center
Extensive RFP questions, supplier questionnaires, and one-on-one meetings
To differentiate EMC’s customer experience and keep up with the evolving needs of customers, we implemented several innovative customer experience practices in 2015, including:
Regular outreach with institutional investors and other shareholders
Annual Meeting of Shareholders
Inclusion of Sustainability overview in Annual Report on Form 10-K
CDP reports (water and carbon)
Analyst ratings surveys
Bloomberg Sustainability Survey
In 2015, members of EMC’s Board of Directors and/or management spoke with shareholders holding more than 42% of our outstanding shares. Topics discussed included our strategy and performance; the pending merger with Dell Inc.; corporate governance matters such as Board composition and refreshment, succession planning and Board leadership structure; our executive compensation program; and sustainability initiatives.
Audits and Corrective Action Plans
Quarterly Business Reviews
Blue Sky Supplier Sustainability Award
SER Link newsletter
EMC continued to grow our suite of supplier engagement activities in 2015. This included expanding the scope of our Blue Sky Supplier Sustainability Award to reflect supplier sustainability and compliance performance more holistically; adding ten modules to the SMaRT Library in English and Chinese, and translating the entire library into Spanish; and co-hosting an in-person workshop on human trafficking in Malaysia. We also continued the targeted supplier outreach we began in 2014, focused in 2015 on those suppliers demonstrating particular risk factors related to water management and vulnerable workers.
|NGOS AND INDUSTRY GROUPS||
Individual feedback to sustainability report
Participation in industry and cross-industry groups
Board and other leadership roles
Public policy advocacy
In 2015, in anticipation of the COP21 Climate Talks in Paris, EMC joined with more than 60 other companies and nine NGOs to publish a full-page statement in the Wall Street Journal backing action on climate change.
As a result of a 2015 call with stakeholders on best practices in business and human rights, EMC revised our Human Rights and Global Labor Principles to explicitly include privacy as a fundamental human right.
|SCHOOLS AND COMMUNITIES||
Volunteerism with education
Faculty engagement activities
Classroom discussions and guest lectures
Employees visited schools in and around their communities to help students understand the importance of STEM and all of the job functions available in the industry. Once such example is an initiative called Boole2School which EMC employees became involved in at the request of University College Cork. This project engaged over 70,000 students in 47 countries in Boolean Mathematics lessons.