2010 Corporate Social Responsibility Report - Celestica
We make a difference2010 Corporate Social Responsibility Report
Our MissionProtecting and empowering people. Respecting theenvironment. Giving back to the community.Working with responsible partners. Our commitment tocorporate social responsibility is evident in all we do.We are committed4We do the right thing9Our visionEthicsWe make it happen12We protect the planet15We promote a safe workplace19We make communities stronger22LabourEnvironmentOccupational Health and SafetyGivingPage 2 Celestica Corporate Social Responsibility
A letter fromCraig MuhlhauserWelcome to Celestica’s first Corporate SocialResponsibility Report. This Report showcases ourcommitment to social responsibility on a globalscale – including the policies we value and uphold,the progress we have made and the key milestones we are working to achieve.While publishing a formal report is a new initiative for Celestica, the concept of corporate socialresponsibility is certainly not new to our companyor our employees. We view this report as anextension of our living commitment to corporatesocial responsibility – building on a strong heritageand ongoing focus that have long been supportedby our Values, Brand and the principles and policies we abide by throughout our network.Our dedication to exemplary corporatecitizenship is not only a key element of Celestica’scorporate culture, it also helps to drive our businesssuccess. Our customers trust that we upholdstrong ethics and values. They also recognize thatour employees have their best interests at heartand act as a solid extension of their brands byhelping to make the communities where we live andwork a better place. For this reason, we created ourprograms and plans with our customers in mind.In every country in which we operate, ouremployees take pride in Celestica’s contributionsas a responsible corporation. They demonstratetheir support for our programs and enable us tocontinuously improve upon our efforts. Throughtheir support and actions, our employees ensureCelestica maintains a safe, positive and ethicalwork environment, supports local communitiesand takes care of the environment.Looking back, I’m extremely proud of themany accomplishments we have achievedin recent years. These accomplishmentsinclude our participation in the foundation andimplementation of the Electronics IndustryCitizenship Coalition’s Code of Conduct, theestablishment of our global Ethics Hotline, thelaunch of our first Environmental SustainabilityReport and numerous other activities in the areasof giving, labour and health and safety. I hopeyou enjoy reading about these achievements.As we move into 2010 and beyond, I’m lookingforward to building on all of our good work todate. Our leadership team will be setting a strongexample for employees by upholding the idealsthat are important to our company: protecting andempowering our people; maintaining a safe andethical workplace; respecting the environment;giving back to the community; and, ensuring wework with socially responsible partners.Our commitment to social responsibility isevident in all we do. We’re up for the challenge todrive year-over-year improvements in all of thekey areas within our corporate social responsibilityprogram, and look forward to sharing updates onour achievements with you in future CorporateSocial Responsibility Reports.Sincerely,Craig MuhlhauserPresident and Chief Executive OfficerCelestica Corporate Social Responsibility Page 3
We are committedOur visionA Corporate Social Responsibility programrequires two key things in order tosucceed – employee support and clearlydefined goals.Page 4 Celestica Corporate Social Responsibility
Our ValuesTeamworkTrust andCommitmentwe act as one global teamwith one vision, livingour Valueswe deliver on our promiseswith integrity, respectand qualityCreativityCouragewe strive for innovationwe act courageously inthe pursuit of businessexcellenceSupport from the whole Celestica team – from the boardroom to theproduction floor – is required for a corporate social responsibility program tobe successful and sustainable. For this reason, we uphold fundamental guidingprinciples that are an important part of our culture and engage our employeesfrom the very moment they join the Celestica team.We have been cultivating these programs for many years and they are core tohow we conduct our day-to-day business. They ensure a systemic approachthat reflects the values we believe in and the goals we aspire to.To learn more aboutCelestica’s guidingprinciples on corporatesocial responsibility, pleasevisit our website atwww.celestica.com/csrSince our company’s inception, we have been adamantly committed to ourValues – beliefs that reflect our respect for our colleagues, customers, suppliersand shareholders. Celestica’s Values were developed by our employees toreflect the characteristics and behaviours that are core to our company.Business Conduct GovernanceOur Business Conduct Governance (BCG) Policy is a natural extension ofour Values. It summarizes for employees the legal and ethical behavioursthat are an important part of our culture. Areas of focus in the BCGinclude: ethical behaviour, responsible corporate citizenship, the protectionof assets and accountability.The BCG must be reviewed and signed by all employees when they join thecompany. This commitment is renewed and augmented with training on anannual basis. Additional information on our BCG Policy can be found on ourwebsite at www.celestica.com/csr.Celestica Corporate Social Responsibility Page 5
To ensure we are in compliance with the EICC Codeof Conduct (the “Code”), we conduct the followingcritical activities:all audits to date and are working diligentlyon corrective actions for any areas in needof improvement. We educate and motivate our employees using allof Celestica’s internal communication vehicles toensure all employees realize the importance of theCode and the significance of our responsibilities. We participate in four EICC work groups focusedon: work hours, environmental sustainability,VAP and the EICC certification program. We conduct internal audits to measure EICCcompliance. Most of Celestica’s operating siteshave been audited once and continue to beaudited on a rotational basis. Through participation in the EICCEnvironmental Sustainability work groupwe are helping to develop a standardizedapproach and tool for consistent reporting ofemissions data between suppliers and theircustomers. Last year, we completed ourbaseline corporate greenhouse gas (GHG)emissions inventory and reported our GHGemissions inventory to our customers throughthe Carbon Disclosure Project (CDP) surveyand the EICC Carbon Reporting System. We participate in third-party audits using theEICC’s Validated Audit Process (VAP) to ensureour compliance globally. We have passed We conduct training with Celestica’s subjectmatter experts in each region to align ourleadership team with the EICC’s requirements. We use E-TASC (Electronics Tool for AccountableSupply Chains) – an online tool – to house oursite and supplier Self Assessment Questionnaires(SAQs). Such SAQs are available to customersupon request.Page 6 Celestica Corporate Social Responsibility
The Electronics Industry Code of Conduct outlines industrystandards to ensure that employees are treated with respectand dignity; employees are provided with a safe environmentin which to work; manufacturing processes are environmentallyresponsible; and, management systems are in place to supportthe Code. We’re proud to be a founding member.To help us excel in our quest to bepart of a more socially responsiblesupply chain, we became a foundingmember of the EICC.As part of the EICC, Celestica, alongwith other top-tier electronicsmanufacturing services companies,provided input to industry leadingoriginal equipment manufacturers(OEMs) when they banded togetherto create a set of standards for theirsuppliers to follow. The Code outlinesindustry standards to ensure thatemployees are treated with respectIt’s important to note that ourcommitment to the EICC is notlimited to ensuring the complianceand improvement of our corporatesocial responsibility initiatives. As partof the EICC’s mandate to better theelectronics supply chain, Celestica is alsostriving to ensure we are aligned withsocially responsible supply partners.Our preferred suppliers must havemanagement systems in place thatalign with the spirit of the EICC Code.We use the E-TASC Self AssessmentQuestionnaire (SAQ) tool to assess risksamong our preferred suppliers in thesupply chain.and dignity; employees are providedwith a safe environment in which towork; manufacturing processes areenvironmentally responsible; andmanagement systems are in placeto support the Code.Celestica continues to implement,manage and audit our compliancewith the Code. For more information,visit the EICC website athttp://eicc.info/To ensure Celestica’s suppliers shareour convictions about corporate socialresponsibility and reflect our commitmentto the EICC, we administer and collectSAQs which identify any risks or gaps tothe Code and/or audit requirements. Anynon-conformances identified during anaudit are tracked through a correctiveaction plan. We have also conductedtraining with our Commodity Managementteam in each geography and held supplierworkshops in Hong Kong and in Singapore.Looking aheadIn 2010, Celestica willcontinue to implement theCode throughout our sitesand track our compliance.Important milestoneswill include: Compliance with thelatest version of the EICCCode (version 3.0) Completion of theassessment ofcompliance of ourpreferred suppliers withthe EICC Code Continued participationin the EICC’s ValidatedAudit Process (VAP) ofour facilities and suppliersas required Continued participation inthe EICC workgroupsCelestica Corporate Social Responsibility Page 7
Our approachAt Celestica, we take an integrated approach to Corporate Social Responsibility. This approach relieson several elements for success, each of which is aligned with key areas of focus and supported by amanagement system designed to promote the success of the initiative and drive continuous improvement.We have a multi-functional steering committee in place, led by the company’s Chief Compliance Officer, toassist in the management of all aspects of corporate social responsibility at Celestica. The charter of thiscommittee is to plan and drive the activities required to ensure a streamlined approach to EICC complianceand to ensure we continuously improve our performance in the five key elements of our corporate socialresponsibility program. Read on for an overview of our activities, achievements andgoals in each of these five focus areas.Corporate Social Responsibility: Areas of focus1. Ethics2. Labour3. Environment4. Occupational Health & Safety5. GivingPage 8 Celestica Corporate Social Responsibility
We dothe right thingEthicsOur company is built on the strong foundation of our Values and wecontinuously maintain the higheststandards of businessethics. Our policies and guiding principles ensure that we maintainour commitment to transparency, honesty, fair dealings and respect.For more information on our commitment to business ethics, pleasesee our BCG Policy, which can be found on our website atwww.celestica.com.Celestica Corporate Social Responsibility Page 9
Activities & AchievementsOur Chief Compliance Officer provides oversightof all of Celestica’s ethical and compliancematters, including: Ethics and compliance programs includingour BCG employee training and annualrecertification process; Celestica’s Compliance Council; Celestica’s Corporate Social Responsibilitysteering committee; and,Celestica has established an onlineBCG training course and has trainedall employees in managementand support functions across thecompany in their local language. Wewill expand on our training programin 2010.Celestica provides an Ethics Hotline as a channelfor our employees to make a confidential phonecall to report unethical, illegal or unsafe activity. EICC compliance.Hosted by a third-party service provider, thehotline enables employees to communicate theirWe have created an internal Corporate SocialResponsibility intranet site to provide employeeswith easy access to resources aimed at helpingthem understand their role in maintaining aconcerns in their local language. All reports areinvestigated and resolved. Celestica recentlyannounced improvements to the Ethics Hotline,including web-based reporting, the availabilityof toll-free hotline phone numbers for morebusiness with the highest ethics and standards.regions and an enhanced overall user experience.The site also provides guidance on how employeesThese enhancements were communicated to allcan identify and report unethical activity.Celestica employees.Page 10 Celestica Corporate Social Responsibility
“At Celestica, we take the business of integrity very seriously.We provide our employees with information and resources tohelp them understand their role in maintaining a business withthe highest ethical standards.”Todd Melendy, Chief Compliance OfficerLooking aheadEthics Reporting Encourages employees todo the right thingBy the end of 2010, all employeesacross all levels and functions in thecompany will have received eitherface-to-face or online BCG training. Inspires employees to act with integrity Offers employees a non-threateningenvironment to make confidential tollfree calls to report unethical, illegal orunsafe activity Offers a web-based reporting option Is available 24 hours a day,7 days a weekOur policies and guiding principles ensure that we maintain ourcommitment to transparency, honesty, fair dealings and respect.Celestica Corporate Social Responsibility Page 11
We make it happenLabourOur success has been built on the strength of our people.Our employees have defined our culture and embody our Values.We are proud of our talentedand diverse workforce.We admire the commitment and energy that our employees bring toeverything they do and rely on our people to drive positive changethroughout the Celestica organization.Page 12 Celestica Corporate Social Responsibility
The fair treatment and human rights of our employees and contracted employees are strictlyupheld and monitored. We work to ensure that our policies and practices protect our employees.Our policies ensure: Freely chosen employmentAvoidance of child labourLimitations around hours and consecutive days workedSafe and clean dormitory facilities for on-campus employeesFair wages and benefitsActivities & AchievementsWe have strong programs that foster a positive,engaged workforce at Celestica. A number of thekey programs are summarized below. Our learning and development programsprovide opportunities to sustain and enhanceemployee performance, engagement andcareer management across all levels of theorganization. By enhancing our employees’ skillset and knowledge base we are able to respondto market demands more rapidly. Our performance management programempowers Celestica employees to achievetheir full potential by setting clear goals alignedwith business objectives and tracking theirperformance with coaching from their manager. Celestica’s global talent management strategyaims to ensure our organization possesses theright caliber of talent in order to deliver on thepromise of Celestica’s brand – both externallyand internally. We make an effort to develop andpromote talent from within and have establisheda governance model to facilitate visibility andconsistency of global processes. Our global rewards and recognition program,Bravo!, is designed to recognize employeesacross the globe for exceptional achievementsaligned to our company objectives and thedemonstration of behaviours in line with ourBrand and Values. We invest in a high-skilled workforce that evolvesand adapts based on our market demand. Celestica encourages employees to expandtheir knowledge base by taking on new rolesand responsibilities. In addition to promotingmoves into other functional areas, we supportwork assignments that enable employees to gainglobal experience and interact with colleagues,suppliers and customers in other regions. Where possible, we put account managersin the geography where the customer isheadquartered. Benefits include savings ontravel hours, reduced carbon footprint as aresult of less travel, and more face-to-facecontact with the customer. Where possible, Celestica promotes a flexiblework schedule in terms of hours worked andthe option to work remotely. We believe thatemployees who have a balanced lifestyleare more engaged in their jobs and morecommitted to the success of our company.Celestica Corporate Social Responsibility Page 13
“Celestica’s goal is to create an environment where employeesare provided with the opportunity to meet their full potential andare acknowledged for their contributions.”Elizabeth DelBianco, Executive Vice President,Chief Legal and Administrative OfficerLeveraging employeefeedbackOur employees use our Your Voice employeesatisfaction survey to confidentially share theiropinions about what Celestica is doing well, andareas in need of improvement. Their feedbackshapes the employee programs we build and ourplans for the future. It provides the framework fordriving positive change and improving the overallemployee experience. The Your Voice surveyquestions are based on the concept of employeeengagement. Employee engagement is defined asa combination of perceptions that have a positiveimpact on behaviour – including satisfaction,commitment, pride, loyalty, a strong sense ofpersonal responsibility, and a willingness to be anadvocate for the organization. The results help usunderstand what makes employees more engagedand also helps identify disengagement risks.Survey results are available for the companyas a whole, as well as by region, function anddepartment. Through our closed loop process,all managers are expected to review the resultswith their team, create action plans to addressany areas of concern and track and communicateprogress to the team. We believe this processdrives improvement in engagement levels, whichultimately results in better business performancefor Celestica.Page 14 Celestica Corporate Social ResponsibilityLooking aheadOur planned labour initiatives for 2010include enhancing programs aimed atdriving employee engagement and puttingaction plans in place to work on the areas ofimprovement identified in our most recentYour Voice employee opinion survey.
We protectthe planetEnvironmentSince our company’s inception, our sites have upheld a commitmentto environmental responsibility. Celestica is committed to beingan environmentally responsible partner in thecommunities in which we operate by: Ensuring we have safe, efficient and environmentally consciousoperating and manufacturing processes in place; Planning, implementing and involving all employees in activitiesaimed at environmental sustainability; and, Leveraging our commitment, experience and expertise to supportour customers’ environmental sustainability programs and goals.Celestica Corporate Social Responsibility Page 15
Environmental ManagementTo ensure a streamlined global approach toenvironmental management, a great deal ofeffort has taken place to establish Celestica’score environmental management system. Thissystem is well-suited to our business and uniquecorporate culture. We believe that having astandard corporate environmental managementprogram provides us with a strong platformon which to serve our customers, mitigate ourimpact on the environment and build year-overyear improvements.Celestica’s Environmental Management System iscomprised of the following: An Environmental Policy; Environmental program standards and guidelines; Environmental, Health and SafetyAudit programs; Environmental management programs (i.e.,resource conservation and pollution prevention,waste management, energy management, etc.); Environmental Health and Safety representativesin all Celestica sites; ISO 14001 certification in all Celesticamanufacturing sites;Page 16 Celestica Corporate Social Responsibility Implementation of a management systemconsistent with the requirements of the EICCCode at each site; and, An Environmental Health and Safety complianceaudit program conducted by a leading thirdparty global environmental, health and safetyconsulting company.While our sites are guided by our GlobalEnvironmental Policy and program standards,each site manages its own environmentalmanagement program according to the uniquenature of its operations (i.e., infrastructure,products manufactured, service provided,processes required) and local environmentalrequirements. A management framework is alsoprepared to assist sites in their progress towardsfull conformance with the EICC Code.“The world is not something we inheritedfrom our ancestors but something wehave borrowed from our children.”Native American saying
“Celestica is committed to being an environmentally responsiblepartner by ensuring safe, efficient and environmentally consciousoperating and manufacturing processes. Our commitment isdemonstrated in goals that have been carefully considered anddesigned to make a difference.”Mike Mackenzie, Vice President,Corporate Engineering & Operational ExcellenceEnvironmental SustainabilityEnvironmental Sustainability is a major area of focus for Celestica and our program is growing in scopein 2010. We are proud to have launched our first Environmental Sustainability Report highlighting ourachievements and goals in the six key areas shown below.Our Environmental Policy and Environmental Sustainability Report can be found on our website atwww.celestica.com/csr.1. Greenhouse Gas Emissions2. Water Conservation3. Waste Reduction and Recycling4. End-of-Life Materials Management5. Hazardous Waste Management6. Product Level Environmental ComplianceHelping our customers go green!In recent years we have built upon our environmental commitment by offering solutions and services aimedat reducing the environmental impact of our customers’ products and processes, and providing services tothe manufacturers of green technologies and infrastructure. More information on our green services andsolutions can be found on our website at www.celestica.comCelestica Corporate Social Responsibility Page 17
Looking aheadPlanned environmental initiatives for 2010 include: Deploying all aspects of our EnvironmentalSustainability Report. Proactive communication with keycustomers to share our activities andplans relative to our EnvironmentalSustainability Report. Establishing employee-led grassrootscommittees at each of our sites that arefocused on finding creative new ways ofpromoting a greener Celestica. Deploying energy-saving solutionsaimed at conserving resources anddriving efficiencies. Effectively establishing our baselinecarbon footprint and setting targets forimprovement for inclusion in our 2011Environmental Sustainability Report. Continuing to bulld on our Green-ChainSolutions to help our customers reduce theenvironmental impact of their productsand processes. Growing our capability in the greentechnology segment by helping customersin the energy management and renewableenergy products sector to deliver reliableproducts to a growing marketplace.Page 18 Celestica Corporate Social Responsibility
We promote asafe workplaceOccupationalHealth andSafetyCelestica is committed to maintaining a safeand healthyworkplace and the prevention of occupational illness and injuryat our sites. Our Occupational Health and Safety program is managedas an integrated Environmental, Health and Safety managementprogram that encompasses: An Occupational Health and Safety policy Occupational Health and Safety program standards and guidelines Environmental, Health and Safety Audit programsCelestica Corporate Social Responsibility Page 19
Our Occupational Health andSafety Policy can be foundon our website atwww.celestica.comOccupational Health and SafetyManagement at CelesticaCelestica’s Occupational Health and Safety Managmentsystem is comprised of the following: All sites have an Environmental Health andSafety representative. A number of Celestica manufacturing sites haveimplemented and certified to OHSAS 18001 or anequivalent certification. All Celestica sites have implemented an OccupationalHealth and Safety management system consistent withthe requirements of the EICC Code. We have an Environmental Health and Safetycompliance audit program in place conducted by aleading third-party Environmental, Health and Safetyconsulting company. All Celestica sites have business continuity plans andpandemic preparedness programs in place to ensurebusiness continuity for Celestica and our customers incase of disruptions to our business caused by naturaldisasters or other incidents that disrupt day-to-daybusiness activities.Page 20 Celestica Corporate Social Responsibility
“Occupational Health and Safety is an important part of ouroperational excellence program. The safety of our employees isa top priority and every one of us is responsible for ensuring andmaintaining a safe workplace.”John Peri, Executive Vice President, Global OperationsLost TimeAccident ReportingWe believe it is our responsibility to provide a safe,healthy and environmentally sustainable workenvironment. Anyone on site at Celestica mustabide by our Environmental Health and Safetyregulations and requirements for conduct.It is our philosophy that all accidents arepreventable. In addition to abiding by ourOccupational Health and Safety Policy, our sitesare expected to take proactive measures toprevent accidents by instituting robust healthLooking aheadand safety programs.Our management team takes accidents seriouslyand ensures that appropriate actions are taken toprevent recurrence of accidents. We have beenIn 2010, we have set a 10 per centimprovement target from 2009 forLost Time Accident (LTA) rates. We willcollecting LTA data for several years and reviewingalso implement an accident preventionour LTA statistics in monthly operations reviewprogram focused on the top fivemeetings as a key performance metric. Our LTAcauses of accidents in 2009.rates are comparable to the lost workday case ratespublished by major OEMs.Celestica Corporate Social Responsibility Page 21
We makecommunities strongerGivingCelestica strives to enhancethe communities in whichwe operate. This is done by encouraging employee volunteerism andthrough donations of our expertise and funds in support of programsin the areas of education, health and community services.Page 22 Celestica Corporate Social Responsibility
Celestica employees are eligible to take up totwo paid days per year to volunteer withrecognized charitable organizations.Celestica supports organizations in the following areas:Innovation in educationVolunteerismWe support organizations that motivate and inspireyouth in the areas of math, science and technologythrough unique hands-on experiences.We recognize that providing employees withmeaningful opportunities to volunteer theirtime and expertise is an important componentof supporting our communities. As a result,Celestica employees are eligible to take upto two paid days per year to volunteer withrecognized charitable organizations.GivingWe hold an annual United Way campaign atour Toronto headquarters and match ouremployees’ donations.Health and community servicesWe provide donations and volunteers to local andnational health and community service agenciesand provide relief aid to help people in time of greatneed. This may include relief efforts in communitiesthat have suffered great loss due large-scaleadversities such as floods, fires, storms orearthquakes. Employee donations to relief effortsare matched by Celestica.We contribute to the quality of life in ourcommunity by supporting organizations such aslocal food banks.Celestica Corporate Social Responsibility Page 23
Employees at our Galway, Ireland siteparticipated in a 10 kilometer marathon in supportof Croí – the West of Ireland Cardiology FoundationFighting Heart Disease.and includes many employee fundraising events.Last year, our CEO, Craig Muhlhauser served as theUnited Way of Greater Toronto’s Technology CabinetChairman. Celestica received the Spirit Award forthe Best United Way Leadership Campaign in theGreater Toronto area for running the area’s mosteffective program for generating personal gifts atthe leadership level of 1,000 or more.A group of Celestica employees at our Kulim,Malaysia site is involved in a volunteer programin a local school. By matching their unique talentsto the needs of the school, these employees playan important role in enhancing the children’s overallschool experience, helping them – and many otherchildren – learn the information and skills necessaryto succeed in life.Celestica’s Toronto, Canada team participatesin a number of giving and volunteer initiativesincluding work with Habitat for Humanity ofToronto, the Ontario Science Centre’s (OSC) robotbuilding workshop and Junior Achievement. Thesite was recently recognized with a ‘Certificate ofAppreciation’ from the office of the local Memberof Provincial Parliament for employees’ generoussupport of the local community.In addition, Celestica’s Toronto employees supportthe local community through the site’s annual UnitedWay campaign. The campaign runs for several weeksPage 24 Celestica Corporate Social Responsibility
“We recognize that providing employees with meaningfulopportunities to volunteer their time and expertise is animportant component of supporting our communities.”Paul Nicoletti, Chief Financial OfficerOur employees in Shanghai, China support a carecentre for the disabled – providing on-site assistanceand donations of money, food and clothing.Employ
Celestica Corporate Social Responsibility Page 3 Welcome to Celestica's first Corporate Social Responsibility Report. This Report showcases our commitment to social responsibility on a global scale - including the policies we value and uphold, the progress we have made and the key mile-stones we are working to achieve.
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