Indicators for Question 1.1a(1)

1. 1.1a. VISION and VALUES (1) How do SENIOR LEADERS set organizational VISION and VALUE? HOW do SENIOR LEADERS DEPLOY your organization’s VISION and VALUES through your LEADERSHIP SYSREM to the WORKFORCE, to KEY suppliers and PARTNERS ,and to CUSTOMERS and other STAKEHOLDERS, as appropriate? How do SENIOR LEADERS personal actions reflect a commitment to the organization’s VALUES? Indicators for Question 1.1a(1) • Senior leaders have defined a future vision for the company, based upon a review of market customers and their needs, and an assessment of the company’s own capabilities. • The future vision is realistic, verifiable, and understandable to all employees. • The vision has been clearly communicated to all employees. • Employees understand how their jobs fit in and contribute to helping the company achieve its future vision • Senior leaders periodically review and revise the company’s vision as the business environment changes. • Use of a wide variety of media and methods to communicate the vision, values. expectations., and direction to employees. • There is evidence that the effectiveness of the communication methods has been evaluated and improved.

2. Indicators for Question 1.1a(1) • There is evidence that employees know and understand the values and expectations. • Company establishes values and expectations that employees believe are clear, realistic and achievable. • A systematic plan exists for teaching employees about behavior that is consistent with the values and expectations. • Values are assessed as part of the selection and promotion processes. • A proactive approach is used throughout the organization to reward employee behavior that is consistent with the values. • The values are integrated with leadership selection/training and with performance planning and assessment processes. • There is evidence that the approaches used to reinforce behavior are consistent with the values and have been evaluated and improved. • Executives communicate a balance in priorities for meeting the needs of shareholders. Customers, and employees. • Communication is two-way between employees and senior executives.

3. A belief in being the “best” • A belief in the importance of the details of execution • A belief in the importance of people as individuals • A belief in superior quality of service • A belief in the most members of the organization should be innovators, • as well as the belief in its corollary, a willingness to support failure. • A belief in the importance of informality to enhance communication • Explicit belief in and recognition of the importance of economic growth • and profits What Values Do Excellent Company Hold? • The test of your values is whether they affect your actions in the workplace. • Make your values explicit and succinct. Your people can remember and • transform them into action more readily. • Vision must be realistic, understandable, memorable, motivational and verifiable. • Vision and values must address the interests of customer, workforce and stakeholders. • Develop a performance-enhancing culture in your company

4. 1.1a. (2) How do SENIOR LEADERS personally promote an organizational environment that fosters, requires, and results in legal and ETHICAL BEHAVIOR? Indicators for 1.1a(2) • Senior leaders model principles in their in their behavior and decisions. • Leaders take form and decisive actions when employees exhibit unethical behavior • Leaders are consistent in their treatment of all levels of employees when it comes to ethics they don’t give breaks to other executives or star performers. • The organization structure is designed so that the person responsible for ethics has adequate power and autonomy. • Adequate resources (financial and personnel) are provided for ethics training and other programs.

5. 1.1a. (3) How do SENIOR LEADERS create a SUSTAINABLE organization? How do SENIOR LEADERS create an environment for organizational PERFORMANCE improvement, the accomplishment of your MISSION and STRATEGIC OBJECTIVES,INNOVATION, competitive or role model PERFORMANCE leadership,and organizational agility? How do they create an environment for organizational and WORKFORCE LEARNING? How do they personally participate in succession planning and the development of future organizational leaders? Indicators for Question 1.1a(3) • The organizational structure is designed with minimal layers and clear accountability. • Decisions are made quickly and with a minimum amount of review/approval cycles. • Progress against goals/objectives is reviewed on a regular basis and adjustments are made as needed • Planning is not an annual event. Rather, the plan is a living document that is continually reviewed and adjusted throughout the year. • Leaders encourage risk taking and innovation by allocating adequate resources to functions such as R&D. • Failures are viewed as an opportunity learn valuable lessons.

6. Indicators for Question 1.1a(3)cont. • Leaders try to hire people that are creative and different rather than always hiring people that look and think like them. • Incentive are in place to encourage creativity and innovation. • Leaders create an environment of trust. • Executives spend less time reviewing and approving expenditures than they did in the past. • The company has created a culture that rewards continual learning for everyone. • Executives participate in important training and development courses/events. • The training/education budget is one of the last things to get cut when times get tough. • A succession plan exists for all senior executives. • Executives play an active role in the succession planning process. • Leaders participate in leadership development programs and make this a priority for all managers.

7. 1.1b. Communication and Organizational PERFORMANCE (1) How do SENIOR LEADERS communicate with and engage the entire WORKFORCE? How do SENIOR LEADERS encourage frank, two-way communication throughout the organization? How do SENIOR LEADERS communicate KEY decisions? How do SENIOR LEADERS take an active role in reward and recognition programs to reinforce HIGH PERFORMANCE and a CUSTOMER and business focus? Indicators for Question 1.1b(1) • Creative and effective communication techniques are used. • Communication of important messages is evaluated for its effectiveness. • Important messages are communicated multiple times using a variety of media • Most important messages are delivered face-to-face in small groups. • Communication systems are aimed at the intended • Specific standards exist for effective communication within all media used • There are multiple systems used to encourage two-way communication between leaders and others in the organization. • Communication systems are regularly evaluated for their effectiveness and improved when necessary. • All executives take an active role in rewarding and recognizing.

8. 1.1b. Communication and Organizational PERFORMANCE (2) How do SENIOR LEADERS create a focus on action accomplish the organization’s objectives, improve PERFORMANCE, and attain its VISION? What PERFORMANCE MEASURES do SENIOR LEADERS regularly review to inform them on needed actions? How do SENIOR LEADERS include a focus on creating and balancing VALUE for CUSTOMERS and other STAKEHOLDERS in their organizational PERFORMANCE expectations? Indicators for Question 1.1b(2) • Executives meet on a regular basis to review and discuss company performance data. • Data on all important metrics from the company scorecard (4.1) are reviewed on regular basis by the appropriate executives. • Performance is reviewed in relation to objectives or targets in the strategic plan. • Performances is reviewed often enough to detect important changes so that problems can be quickly solved and opportunities may be exploited. • Performance data are communicated using a variety of media and in easy to read and understand formats.

9. Indicators for Question 1.1b(2) • Analyzes of performance data are used to identify opportunities and challenges. • Specific challenges have been identified relating to future organizational success. • Specific accomplishments have been identified as a result of performance reviews. • Scope of findings and action items is broader than simply financial issues. • Actions are clearly linked back to prioritization method and data analysis. • Analyses reveal that organization is clever in detecting important trends inside and outside the company that may impact their future. • Performance review findings identified have are consistent with overall strategic and operational plans discussed in section 2 of the application. • Adequate evidence is presented to suggest that actions are properly communicated to the right individuals both inside and outside the organization.

10. 1.2a Organizational GOVERNANCE(1) How does your organization review and achieve the following KEY aspects of your GOVERNANCE system . accountability for management’s actions . fiscal accountability . transparency in operations and selection of and disclosure policies for GOVERNANCE board members, as appropriate . independence in internal and external audits . protection of STAKEHOLDER and stockholder interests, as appropriate. Indicators for Question 1.2a(1) • Executives and leaders are held personally accountable for their actions and decisions. • Executives and leaders receive personal negative consequences for violations of ethics policies and codes • Clear and explicit rules have been defined for ethical behavior. • The rules have been effectively communicated to all levels and types of employees. • Policies and procedures are in place to ensure adequate fiscal resources are available to the organization to meet its obligations.

11. Indicators for Question 1.2a(1) • There are personal consequences to executives for poor judgments and decisions regarding fiscal resources. • A corporate compliance officer exists and reports directly to the board of directors or outside governing body. • Accountability for ethical behavior lies with the employees and managers of the organization, not the ethics/compliance officer/department. • The organization is transparent in its approach to communicating with the press, employees, shareholders, and other important stakeholders. • The organization employs a systematic approach to keep auditors and reviewers honest and objective. • There is no evidence found of collusion with auditors or reviewers. • Employees at all levels receive regular feedback on how their behavior and decisions comply with ethics codes, laws, and policies. • Communication to shareholders and other important stakeholders is frequent, honest, complete, and easy to understand.

12. 1.2a(2) How do you evaluate the PERFORMANCE of your SENIOR LEADERS, including the chief executive? How do you evaluate the PERFORMANCE of members of your GOVERNANCE board , as appropriate? How do SENIOR LEADERS and your GOVERNANCE board use these PERFOMANCE reviews to further develop and to improve both their personal leadership EFFECTIVENESS and that of your board and LEADERSHIP SYSTEM, as appropriate? Indicators for Question 1.2a(2) • Executives are evaluated on a balanced set of performance measures that are consistent with the metrics identified in section 4.1 of the application. • Performance measures all include targets or goals and those targets are based on comparative and historical data, as opposed to being set arbitrarily. • There is consistency in the factors used to assess the performance of all executives. • Assessment of executive performance includes the viewpoints of shareholders, employees, and other stakeholders/partners. • There are a clear set of performance expectations set board members. • Board members are consistently and fairly evaluated against expectations by an objective party such as an auditor or even the public. • There is strong evidence that improvements have been made by both executives and board members based on the feedback from evaluations.

13. 1.2b legal and ETHICAL BEHAVIOR(1) How do you address any adverse impacts on society of your products, services, and operations? How do you anticipate public concerns with current and future products, services, and operations? How do you prepare for these concerns in a proactive manner, including using resource-sustaining PROCESSES, as appropriate? What are your KEY compliance PROCESSES, MEASURES , and FOALS for achieving and surpassing regulatory and legal requirement, as appropriate? What are your KEY PROCESSES, MEASURES, and GOALS for addressing risks associated with your products, services, and operations? Indicators for Question 1.2b(1) • Evidence exists of a thorough and objective approach for researching possible hazards associated with the organization’s products/services. • Amount of evidence presented suggests that the applicant leads its competitors in this effort. • Outside resources, where appropriate, are used to conduct research to its products/services. • There is a lack of evidence of cover-ups of important data on risks associated with the organization’s products/services.

14. Indicators for Question 1.2b(1) • Regulatory organizations that oversee the organization’s performance are identified. • Comprehensiveness of processes and approach for ensuring legal and regulatory compliance is evident. • A complete list of both leading and lagging metrics has been identified for measuring compliance with ethical and legal standards. • Targets have been set that indicate the organization’s desire to go beyond basic laws and regulations in important areas. • Evidence exists of a systematic approach for evaluating processes for conducting research on products/services and related risks. • Number and scope of improvements made over the last few years in approaches for ensuring legal and regulatory compliance is appropriate.

15. 1.2b(2) How does your organization promote and ensure ETHICAL BEHAVIOR in all your interactions? What are your KEY PROCESSES and MEASURES or INDICATORS for enabling and monitoring ETHICAL BEHAVIOR in your GOVERNANCE structure, throughout your organization, and in interactions with CUSTOMERS, PARTNERS and other STAKEHOLDERS? How do you monitor and respond to breaches of ETHICAL BEHAVIOR? Indicators for Question 1.2b(2) • Potential new employees are screened for possible ethics problems. • Current and potential suppliers/partners are evaluated based upon their ethics. • New employees are exposed to a clear ser of the organization’s ethics as part of their orientation program. • All employees receive refresher training on ethics on a periodic basis. • Ethics training is made interesting and relevant for employees. • Systems are in place to monitor behavior of suppliers and employees for ethics. • Consequences for unethical behavior are severe and consistently implemented.

16. Indicators for Question 1.2b(2) • There is a hotline or mechanism for reporting ethics violations. • Measures assessing the effectiveness of governance programs include leading indicators such as training effectiveness, as opposed to useless metrics like attendance at ethics training. • Specific targets or goals have been set for all metrics that are used to assess the performance of the ethics/governance system. • Lagging indicators are identified and tracked on a regular basis, which look at factors such as number of employees being disciplined for unethical behavior, number recognized for ethical behavior, ethics problems uncovered by the media, whistle-blower events, and employee opinions on the extent to which executives follow the code of ethics in the organization.

17. 1.2c. Support of KEY CommunitiesHow does your organization actively support and strengthen your KEY communities? How do you identify KEY communities and determine areas of emphasis for organizational involvement and support? What are your KEY communities? How do your SENIOR LIADERS, in concert with your WORKFORCE, contribute to improving these communities? Indicators for Question 1.2c • Evidence of a planned systematic approach to charitable/community support. • Breadth and scope of activities that indicate that the company is a good corporate citizen and concerned with the public welfare. • Significance of the company’s accomplishments in these areas. • Evidence from news media and outside sources that the company is, in fact, a good corporate citizen. • Comparison of the corporate citizenship and public responsibility activities of the applicant company to other companies that are similar in size. • Evidence that the company has increased its efforts to be a good corporate citizen over the last few years. • Awards and recognition received for efforts in this area. • Lake of any “skeletons in the closet” that might prevent the company from being a good role model for the country and the world. (If the issue is serious enough, it could completely disqualify an applicant.)