POLAND: CORPORATE EXCELLENCE NOMINATION FOR 3M POLAND

UNCLAS SECTION 01 OF 02 WARSAW 001423 SIPDIS SIPDIS DEPT FOR EUR/NCE, EEB/EPPD EUR/NCE FOR DKOSTELANCIK AND BPUTNEY EEB/PPD FOR NSMITH-NISSLEY COMMERCE FOR 4232/ITA/MAC/EUR/JBURGESS, JKIMBALL, MRODGERS E.O. 12958: N/A TAGS: BEXP ECON EINV ETRD PL SUBJECT: POLAND: CORPORATE EXCELLENCE NOMINATION FOR 3M POLAND WARSAW 00001423 001.2 OF 002 ¶1. Summary. Embassy Warsaw nominates 3M Poland for the Corporate Excellence Award in the U.S. multinational corporation category. 3M Poland began operations in Poland in the 1960's and began investing in the country in 1991. Through acquisitions and growth 3M Poland now employs 850, with plans for 1,000 employees by year-end, with an investment of approximately $100 million. The company actively supports local community efforts, has exemplary employment practices, works with local and national government to improve road safety practices, and is a model for ethical business practices in Poland. End Summary. ¶2. Good Corporate Citizenship: 3M Poland created the City Information System for Warsaw, a system of traffic control signs with 3M Scotchlite Diamond Grade film that help move traffic safely and efficiently. Another initiative, "Pay Attention to the Black Points" supports local efforts to reduce road accidents by placing large black cross signs warning careless drivers that they are approaching a dangerous stretch of road. 3M Poland also sponsors an Integrative Sports Club which is a wheelchair fencing team, two local schools for disabled children in Kostowiec and Wroclaw, the Junior Achievement Fund, an environmental NGO, and the Dr. Clown Foundation which provides therapy for sick children in the hospital. An innovative program is co-branding products with the local Red Cross by placing the 3M logo on consumer health care products. A percentage of the sales revenue is given to the Red Cross for a program to support hot meals for poor children and families in the poorest regions of Poland. To date, this program has provided 150,000 meals. ¶3. Exemplary Employment Practices: As of May 31, 2007, 3M Poland employed 850 workers, and expects to employ 1,000 by year-end. Employee turn-over is stable at only 5%. The company has very good cooperation with trade unions and has not been involved in any disputes with unions. Management conducts regular employee-management communication meetings at each site. 3M acquired the Viscoplast facility in 2001 and the Interchemall facility in May, 2007 and has successfully integrated both facilities into the operations of 3M Poland. ¶4. Provision of a Safe and Healthy Workplace: The company develops and implements an annual Environmental Health and Safety (EHS) Plan and established a Safety Leader Competition. 3M employees are involved in the EHS Plan so that 24 social work inspectors have been trained and are active in production areas and 12 Pre-Medical Rescue Teams are in place. 3M also reduced the number of high-risk work stations to 2% of the total to better protect workers. The EHS Plan is continually reviewed and improved and has enabled 3M to achieve a Machine Safety Factor of 90%, implement 7 ergonomics projects. For its efforts, 3M received the Polish National Work Inspection Award for implementation of EU EHS directives. The Pre-Medical Rescue Team won 19th place in the National Facility Rescue Team Competition called "Safe Company 2006". ¶5. Responsible Environmental Stewardship and Practices: Since 1991, 3M Poland has invested $3.3 million in environmental protection at its facilities. The company was ISO14001:2004 certified in 2001 and recertified in 2006. In addition, it has completed 8 projects to date in its Pollution Prevention Pays Program. 100% of asbestos removal is accomplished under the Asbestos Free Facility Program. Recently, 3M modernized the sewage system, water supply system and rain water treatment system. ¶6. Contribution to the Overall Growth and Development of the Local Economy: 3M Poland's 2006 sales reached $118.7 million, of which approximately $68.7 million of products were exported. The company's five largest Polish customers are the Ministry of Transport, the National Road Authority, TPSA (Polish Telecom),KGHM Polska Miedz (Copper Mine),and Warsaw City Road Authorities. 3M estimates that it has invested over $100 million in Poland in 2005 through 2007, significant investments for the towns of Kastowiec and Wroclaw. ¶7. Compatibility, and if appropriate, contribution to local science and technology policies: In 1998 3M Poland opened a Customer Center in Kajetany, near Warsaw. The Center includes presentation rooms and facilities where product application is demonstrated, training courses are held, and new applications for Polish industry are prepared and tested. 3M Poland also actively provides information and technology to the government of Poland as well as of neighboring countries. For example, it organized a workshop for the International Labor Inspections Association with representatives of the Serbian and Ukrainian Ministries of Labor. 3M also organized and participated in workshops and initiatives of the Polish National Road Safety Council such as Global Road Safety Week. 3M partnered with Minister of Transport Polaczek and the Institute of WARSAW 00001423 002.2 OF 002 Transportation on an exhibit "Road Safety is No Accident" in Poland's parliament. The exhibit was designed to make members of parliament and local government representatives aware of the critical need to ensure safety and security of children. The company also organizes regular seminars for the medical, telecommunications, occupational health and safety, electrical energy and industrial sectors, on new technology and applications. ¶8. Compliance with U.S., international, and local laws and standards, especially in regards to anti-bribery, transparency, and human rights and labor: 3M Poland is proud of its reputation as an ethical producer and employer. The company was recently awarded Superbrand status in Poland's business-to-business market for 2007 in a tough competition among 1,400 companies. In 2005, the American Chamber of Commerce named 3M Poland its "Investor of the Year". In 2002, the company received the "Fair Play Enterprise" statuette and in 2000, 3M was named "Company of the Year" by the Polish Business Club. A testament to the company's image as a good corporate citizen is the fact that its CEO and members of the Board of Directors met with the President of Poland - an honor reserved for company executives whose reputation is considered spotless by the ruling Law and Justice party. ASHE