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, including members of 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 2014, members of EMC’s Board of Directors and management dialogued and met with shareholders 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 36% of our outstanding shares). Topics discussed included our strategy and performance; 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 2014 Annual Meeting of Shareholders, our shareholders expressed strong support for our executive compensation program, with over 93% of votes cast voting in favor of the proposal. Following the 2014 Annual Meeting of Shareholders, we dialogued and met with many shareholders to discuss our executive compensation program and we received positive feedback on the enhancements the Compensation Committee made to our 2014 executive compensation program.
For more information, please see EMC’s Proxy Statement for the 2015 Annual Meeting of Shareholders.
Sustainability Stakeholder Forum
In 2014, EMC held a stakeholder engagement forum facilitated by Ceres, a nonprofit organization working with investors, companies, and public interest groups to accelerate the adoption of sustainable business practices. EMC participants included members of the Board of Directors and the executive leadership team, subject matter experts, sustainability professionals, and other interested employees from throughout the Company. Stakeholder participants included consultants, NGOs, investment analysts, supply chain auditors, and business academics.
Key topics covered during the forum included:
- Our sustainability materiality process and results
- Our new 2020 goals, including near-term absolute GHG, product efficiency, and STEM targets as well as supply chain responsibility and eWaste goals
- The proposed format for the upcoming report
- Our Top 9 priorities of energy efficiency & climate change, eWaste, supply chain responsibility, STEM education, information security & privacy, role of IT in society, innovation, diversity & inclusion, and corporate governance. For more information on each of the priorities, please visit the Executive Report.
The topics and feedback from the stakeholder forum were used to inform direction for this report and future EMC sustainability practices.
In 2014, we received additional feedback about our 2013 report, and based on the feedback, we made several changes. We decided to continue with the same format as last year, but understood the need to make the summary report shorter and more targeted, and focus further on the aspects that are most material to our stakeholders and our business. Additionally, we removed the technical aspects of the report to a new detailed report, 2014 Report Methodology & Disclosures, in order to further tighten up the message of the summary report. Though we were unable to implement all of the good suggestions this year, many will inform our reports going forward.
Below are some additional examples of how we incorporated stakeholder feedback in 2014.
|STAKEHOLDER GROUP||HOW WE ENGAGE||EXAMPLE(S) OF IMPACT|
“Great Place to Work (GPTW)” employee survey
Inside EMC, our corporate social media and communications platform
Annual Innovation Conference & Roadmap
Sustineo, an employee engagement platform
Quarterly COE Sustainability Summits
Earth Day and World Environment Day events
EMC uses the GPTW survey results as a platform to drive change and evolution of our culture across the organization. For example, EMC launched a program in 2014 that gives employees 3 paid work days per year to volunteer in their local communities – a direct response to their survey input.
In addition, the service recognition program was modified to offer greater flexibility in response to employee feedback from our Inside EMC platform.
“EMC me” Internships
In response to the changing needs of prospective employees, EMC me was launched in 2014. EMC me gives candidates a customized, data-driven social experience to learn about EMC. The portal provides real-time content from social and web sources and from a host of EMC live blogs. It also aggregates content from EMC sources, bringing candidates relevant job openings based on their unique search criteria and providing an intuitive way to apply or keep in touch.
“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
In 2014, EMC held its inaugural Total Customer Experience (TCE) Day, both onsite at 13 offices in 7 countries, and virtually. TCE Day provided an opportunity for over 4,000 employees and more than 150 customer and partner guests to visit EMC locations all over the world and provide feedback both in person and online. Feedback from customers and partners led to resources such as the Experience Analytics Showcase in which customers can interact with real EMC data as well as explore our TCE programs, and to the creation of EMC’s first ever TCE Annual Report.
EMC places high importance on measuring customer satisfaction (CSAT), maintaining industry-leading levels, and using feedback to continually drive improvements. In 2014, EMC achieved an all-time high Net Promoter Score (NPS) and continued to achieve best-in-class Customer Satisfaction (CSAT) levels. Additionally in 2014, TCE began to leverage social media as an additional “listening post” and means of expanding the EMC TCE brand.
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 2014, the Lead Director met in person and spoke by telephone with various shareholders to discuss Board diversity. The Board appreciated shareholders’ input and willingness to dialogue on this issue. In 2015, the Board amended the Governance Committee’s charter to strengthen our public statements and more clearly state our commitment to Board diversity.
Audits and Corrective Action Plans
Quarterly Business Reviews
SER Link newsletter
EMC launched the SMaRT Library in 2014, informed by supplier risk and performance data, a gap survey conducted in 2013, concerns raised in the media and NGO reports, and conversations with suppliers and peers in the industry. The library houses a set of training modules on various sustainability topics as well as case studies and hundreds of references to other resources. These modules will help drive continuous improvement across our entire diverse supply base.
To extend our training initiatives, we also hosted peer discussions on sustainability reporting and human trafficking. These sessions allowed suppliers at different levels of maturity in their programs to share ideas, challenges, and best practices with others.
|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 2014, EMC became a signatory to the Corporate Renewable Energy Buyers Principles. Through this initiative begun by the WWF and WRI, we are engaging with NGOs, peers, and utilities seeking to expand the production of renewable energy in response to the urgent need to reduce greenhouse gas emissions.
|SCHOOLS AND COMMUNITIES||
Volunteerism with education
Faculty engagement activities
Classroom discussions and guest lectures
We partnered with online resource tool Science Buddies to create a landing page highlighting science projects in a variety of topic areas where Big Data is used. This page is used by teachers worldwide as a resource to provide their students with up to date information.