Professional Documents
Culture Documents
Our Long-Term Commitment: Corporate Social Responsibility
Our Long-Term Commitment: Corporate Social Responsibility
Our Long-Term Commitment: Corporate Social Responsibility
C O R P O R AT E S O C I A L R E S P O N S I B I L I T Y
Pictured on the cover is Graybars Tucson, Ariz. branch,
the Companys first facility to achieve LEED Gold certification.
Our Values
Graybar employees work to protect and enhance the Companys reputation
by demonstrating our core values every day. PAGE 2
Environmental Sustainability
At Graybar, we are committed to environmental sustainability, both in the way
we run our business and in the solutions we provide our customers. PAGE 4
Graybar is a leader in the distribution of high
quality electrical, communications and data
networking products, and specializes in related The Communities We Serve
supply chain management and logistics services. Graybar strives to forge connections that will have a positive influence
Through its network of more than 250 North American in the communities where we do business. PAGE 8
distribution facilities, it stocks and sells products
from thousands of manufacturers, helping its Our People
customers power, network and secure their facilities As one of the largest employee-owned companies in North America, our employees
with speed, intelligence and efficiency. take great pride in serving our customers and leading by example. PAGE 10
A LETTER FROM OUR CHAIRMAN, PRESIDENT AND CEO
K AT H L E E N M . M A Z Z A R E L L A
Chairman, President and
Chief Executive Officer
G R AY B A R C O R P O R AT E S O C I A L R E S P O N S I B I L I T Y 1
Graybar Principles
Values
INTEGRITY EMPLOYEE OWNERSHIP LONG-TERM VIEW CUSTOMER FOCUS
We tell the truth, do what is right We take pride in our Company We believe that long-term success We are committed to
and treat others with fairness and and demonstrate loyalty to the is more important that short-term satisfying our customers.
respect. Company and to one another. gains.
We deliver consistent, reliable
We adhere to high standards of We strive to be the best in all We cultivate loyal relationships and quality service.
ethics and business conduct. we do. that stand the test of time.
We anticipate our customers
We take responsibility for our We win by working together We invest in our employees, needs and provide solutions
actions. toward common goals. recognize their achievements that work.
and give them opportunities
We behave in a way that protects We tie our personal success We add value in the supply chain
to build successful careers.
and enhances Graybars reputation to Graybars success. through innovation and continuous
in the communities we serve. We work to keep Graybar strong improvement.
and healthy for future generations.
Vision
FOR OUR FOR OUR FOR OUR FOR OUR FOR OUR
CUSTOMERS SUPPLIERS EMPLOYEES SHAREHOLDERS COMMUNITIES
ADVANTAGE ADVANTAGE ADVANTAGE ADVANTAGE ADVANTAGE
We will be a valued We will be our suppliers We will challenge our We will achieve results Graybar will be an active
resource for our customers preferred path for employees to learn, grow that provide our corporate citizen by
by understanding and bringing their products and prosper in a culture shareholders with a contributing to the
anticipating their needs and solutions to the that respects each positive return on their communities where we
while providing the marketplace, delivering individual and recognizes investment, reinforce the do business, encouraging
best quality products value to our mutual employees who care for culture and values of community involvement
and services. customers and driving our customers and employee ownership and among our employees
profitable growth for our contribute to Graybars inspire a deep sense of and demonstrating
respective companies. success. pride in the Company. a commitment to
environmental
sustainability.
2 G R AY B A R C O R P O R AT E S O C I A L R E S P O N S I B I L I T Y
$12.9
FOUNDED IN ONE OF THE LARGEST
1869
BY INVENTOR ELISHA GRAY AND
ENTREPRENEUR ENOS BARTON
employee-
owned
COMPANIES IN NORTH AMERICA
SINCE 1929
million
2013 COST SAVINGS AND GROSS MARGIN
IMPROVEMENT FOR THE COMPANY DUE TO
CONTINUOUS IMPROVEMENT PROJECTS
465
NAMED TO WORKPLACE DYNAMICS INCORPORATED AS
GRAYBAR ELECTRIC COMPANY, INC.
No.
ON THE 2014 FORTUNE 500 RANKING
OF AMERICAS LARGEST COMPANIES
Workplaces
LIST (2013) 1925
RECIPIENT OF A
WINNER OF TED MAGAZINES A NETWORK OF MORE THAN
Greenest of
the Green
AWARD (2013)
250
NORTH AMERICAN DISTRIBUTION FACILITIES
Hero of
the Planet
AWARD FROM THE ST. LOUIS
BUSINESS JOURNAL (2012)
Strategy
Our strategy is to sustain Graybar as an independent and employee-owned Company, while achieving the
results that position us as an industry leader and allow us to work to the advantage of those we serve.
G R AY B A R C O R P O R AT E S O C I A L R E S P O N S I B I L I T Y 3
Building a Better Tomorrow
Through Sustainable Solutions
4 G R AY B A R C O R P O R AT E S O C I A L R E S P O N S I B I L I T Y
Graybars Tucson Branch is the first in
Company history to be built to Leadership
in Energy and Environmental Design
standards (LEED). This 55,000 square-foot,
state-of-the-art facility was LEED Gold
certified in September 2012 and serves
as a way to showcase intelligent energy
solutions to our customers.
G R AY B A R C O R P O R AT E S O C I A L R E S P O N S I B I L I T Y 5
According to the Energy Savings
Cost Council, energy-efficient lighting
upgrades represent an average return
of 45 percent and a payback in as little
as two years.
In May 2012, we opened a new facility in Tucson, Ariz. Graybar BUILDING A BRIGHTER FUTURE FOR CUSTOMERS
constructed the building using internationally recognized Given Graybars internal initiatives and extensive energy-
Leadership in Energy and Environmental Design efficient solutions our Company is uniquely positioned to
(LEED) standards, developed by the U.S. provide customers with effective ways to reduce their costs
Green Building Council. The property was and increase the long-term sustainability of their facilities.
awarded LEED Gold certification, and enables
us to showcase many of our energy-efficient We work to our customers advantage with the Graybar
products. PowerSmart platform, saving energy, time and money for
companies operating existing facilities such as health care,
The facility includes a number of technologically advanced retail, office and hospitality spaces.
products distributed by Graybar, including:
Graybar PowerSmart teams specialize in developing custom-
100 percent motion-activated warehouse lighting, ized plans to yield energy savings and return on investment.
with efficient, high-output fluorescent lamps to One of the primary benefits of Graybar PowerSmart is that the
reduce energy. platform is scalable customers can implement immediate
E
nergy-efficient and long-lasting LED lighting for technologies, while preparing for future upgrades.
parking and office areas.
A
programmable, facility-wide
6 G R AY B A R C O R P O R AT E S O C I A L R E S P O N S I B I L I T Y
The Green Challenge When we think about stewardship
of resources, we consider both the
Graybar has participated in the St. Louis Regional
environmental and the economic
Chambers Green Business Challenge program,
in conjunction with the Missouri Botanical Garden, impact. We look for opportunities
since 2010. The St. Louis challenge is a part of a to help customers improve their
national pilot to improve sustainability, which also
facilities in a way that reduces
includes Denver, Colo., Portland, Ore., and Silicon
Valley, Calif. overall energy consumption and
supports their business objectives.
Graybar adapted the Green
Business Challenge and
We expect energy and sustainability
introduced our own inter- to be important priorities moving
nal Graybar Green Challenge in 2013. Through this forward, and Graybar PowerSmart
program, locations earn points for a wide variety of
local sustainability initiatives.
can give our customers the per-
formance they need, while also
Efforts focus on conducting sustainable outreach
and education, reducing waste and water consump-
helping them save energy.
tion, and boosting energy efficiency. In addition, the BILL MANSFIELD, SENIOR VICE PRESIDENT,
program establishes expectations for the purchase SALES AND MARKETING
of ENERGY STAR appliances over other options,
performing Graybar PowerSmart assessments,
expanding recycling programs and more. In its first
year, were proud to have achieved 100 percent
Commitment to
participation, with 43 locations reaching the goal Responsibly Sourced
of 80 percent of the total points.
Materials
Graybar is committed to providing custom-
ers with responsibly sourced products. We
encourage our suppliers to source materials
that are free from conflict minerals originat-
2012 Award
Winner
St. Louis Business Journal
ing in the countries covered by our Conflict
Mineral Policy and, where appropriate, will
work with our customers to obtain conflict
2013 Award
Winner
Greenest of the Green
free sources of the products they need. For
specifics on our statement, visit graybar.com/
corporate-responsibility.
tED Magazine
G R AY B A R C O R P O R AT E S O C I A L R E S P O N S I B I L I T Y 7
Building a Brighter Future
Where We Live and Work
Through our foundation and corporate giving programs, we platform for employees, customers and suppliers to work
actively contribute to more than 75 charities and non-profits together and give back to our communities. We recognize
nationwide. employee efforts and share events taking place across the
country through the Outlook, our quarterly employee magazine,
Were a local business, so most of our community engage- social media and external news releases. Through Graybar
ment takes place at a local level, said Beverly Propst, Senior CARES efforts, more than $260,000 was raised in 2013.
Vice President, Human Resources. We prefer to support orga- Early in 2014, Graybar raised more than $116,000 for charity.
nizations where our employees are already involved. When
employees ask us to support these organizations, we try to
say yes whenever possible. TAKING CARE OF OUR OWN
As an employee-owned company, we also believe its import-
Supporting education has always been a priority at Graybar, ant to support our fellow Graybar employees in times of
since it helps us build a better workforce for tomorrow and unexpected hardship.
aligns with our own internal training programs. When employ-
ees donate to higher learning institutions including their The Graybar Family Foundation, an independently run, non-
alma mater we match their commitment. profit organization, provides confidential, immediate support
to Graybar employees who have a sudden need for reasons
In 2011, Graybar created Graybar CARES (Community, beyond their control, such as damage from a natural disaster
Awareness, Responsibility, Education and Service) as a or a medical emergency.
For the 2013 spring training conference, Graybar districts, delegates and
suppliers took part in the Graybar CARES fundraising and teambuilding
challenge to help raise money for their respective charities. The Company
raised a total of $144,000 with the California District coming out on top.
Graybar awarded the district with an additional $5,000 to donate to their
charity of choice, Homes for Our Troops, which builds homes adapted
for disabled veterans.
8 G R AY B A R C O R P O R AT E S O C I A L R E S P O N S I B I L I T Y
Employees from the Raleigh, N.C. Branch volunteered with Habitat for Humanity. They built
a home for one of their fellow employees and his family.
Graybar employees, such as this group
from the Fargo, N.D. Branch, work together
Employees in Bel-
to support their local communities.
Ridge, Mo., celebrated
Graybars Employee
Ownership Day by
coordinating a contest
between various
departments to sup-
port the St. Louis Area
Our corporate office, as well as our Foodbank. In total,
branches and districts across the country they collected and
have supported the United Way for more donated more than
than 25 years. 2,600 pounds of food
and nearly $1,000.
When an EF4 tornado struck Washington, Ill., Graybar and its employees take great pride in supporting a variety
employees from the East Peoria Branch of charities and organizations. You may even find us participating
just ten miles away donated food, toiletries in events like the Susan G. Komen Race for the Cure.
and supplies to help those in need.
G R AY B A R C O R P O R AT E S O C I A L R E S P O N S I B I L I T Y 9
A Foundation of Ownership
Were compelled to be accountable and take responsibility Employee ownership is an exclusive privilege available only
for our results, because as employee owners, we all benefit to eligible Graybar employees and retirees. Each year, eligible
when the Company does well. For this reason, Graybars employees can choose to purchase Graybar stock. The share
employees serve as the key ingredient to the Companys price of Graybar stock has not fluctuated. Since 1941, Graybar
long-term success. has paid a cash dividend of at least 10 percent annually, and
stock dividends have been issued 31 times. From 2009 to
To help our employees understand how they can make a dif- 2013, our shareholders earned an extraordinary 24.1 percent
ference, we strive to communicate openly and transparently annual return on their investment.
about the state of our business. We stay connected through
all-employee web conferences, monthly branch meetings,
an employee web portal and employee surveys. Through Thanks to our ownership culture and
these channels, we discuss our goals, achievements and career development programs, Graybars
challenges, and collaborate on how we can meet the chang-
ing needs of our customers with innovative services and
retention rate is well above the
solutions. wholesale distribution industry. In fact,
49 percent of our employees have more
By holding ourselves and each other accountable, combined
with a workplace that strives for financial and personal
than 10 years with the Company.
success for employees, we create an environment in which
we can better serve our customers.
10 G R AY B A R C O R P O R AT E S O C I A L R E S P O N S I B I L I T Y
When Graybar employees purchased the
Company from Western Electric in 1929,
we made history as one of the first large,
employee-owned corporations in the
U.S. Although our business has evolved
immensely over the years, Graybar remains
rooted in timeless core values that shape
everyday life at the Company.
Integrity
Employee Ownership
Long-Term View
Customer Focus
Graybar also provides employees with a profit sharing and system helps employees track their progress along with
savings plan, into which the Company has contributed a their development and performance goals. In 2013, our
five-year average of 11.7 percent of employees salaries. employees completed more than 78,000 hours of training
Employees are not required to make contributions to the on topics ranging from products and technology to company
plan, and they can choose from several investment funds. procedures and professional skills.
This plan gives employees a way to share in the success
of the Company and save for their retirement. The Company Taking training to the next level, Graybar worked with Rutgers,
also provides a defined benefit pension plan. the State University of New
Jersey, in 2004 to develop
In addition to planning and investing for financial success, a unique leadership develop-
Graybar is introducing a new focus on wellness in 2014 ment program, called
to improve employees quality of life. We plan to provide the Rutgers-Graybar Supply
education on health- and wellness-related topics, including Chain Management Program.
nutrition, stress management and early detection and Nearly 100 high-potential
prevention of illnesses. employees from across the
Company have participated
in the program. Together, they
GROWING WITH GRAYBAR
explore new and innovative approaches to help us transform
To support long-term career growth, Graybar has an extensive
and improve our business. Most of the graduates continue
track record of hiring talented employees, investing in indus-
to work for the Company and several have been promoted
try-leading employee development programs, and providing
since completing this program. This program earned the Gold
opportunities for employees to explore new and challenging
Learning in Practice Excellence in Academic Partnerships
roles throughout the Company. We have earned positive rec-
Award from Chief Learning Officer
ognition for our efforts to recruit military veterans and college
graduates while expanding our program for internships.
magazine in 2013.
78,000 hours
Graybar also developed a lead- OF TRAINING WERE COMPLETED BY
Graybar provides employees with training that equips them
ership training program in 2011 GRAYBAR EMPLOYEES IN 2013.
to succeed in their jobs today, while preparing them for the
with The Ohio State University.
future. Each employee is required to complete a core cur-
This program has already given more than 100 Graybar branch
riculum for their current role, while having access to a large
management employees the opportunity to converge and
library of courses from which they can expand their knowl-
learn new skills to use in leading their respective branches.
edge. Graybar Pathways the Companys talent management
Additional classes are planned for 2014 and beyond.
G R AY B A R C O R P O R AT E S O C I A L R E S P O N S I B I L I T Y 11
In addition to online opportunities,
Graybar holds two national training
conferences each year, along with other
sales and management training meetings.
When the bi-annual conferences started
in 1993, they were a first for the industry.
Because we know recognizing employees achievements is To track progress, we share monthly reports on safety data
also vital to effectiveness and retention, we acknowledge a practice thats been in place for more than 18 years. In
employees in a variety of ways. We celebrate employees addition to internal year-over-year benchmarks, we measure
milestone anniversaries through our service awards pro- Graybar against the industry by comparing recorded work-
gram, and our Cause for Applause program gives employ- place injuries through the Occupational Safety and Health
ees and managers a platform for recognizing outstanding Administration (OSHA). In terms of safety, were proud to
performance. In 2013, more than 29,000 Cause for Applause be in the top 10 percent of companies in the wholesale and
recognitions were sent. distribution industry.
12 G R AY B A R C O R P O R AT E S O C I A L R E S P O N S I B I L I T Y
Graybars Commitment
to sustainability is an expression of our companys
core values, particularly our long-term view. We
believe long-term success is more important than
short-term gains; this belief influences all aspects
of our business. We strive to keep our Company
strong and healthy for future generations. In doing
so, we look for ways preserve the environment.
Our sustainability commitment encompasses: