Johnson Controls Honored as Corporation of the Year for Successful Efforts in Supplier Diversity

Company’s ‘winning’ business strategy earns top recognition from Michigan advocacy group

PLYMOUTH, MICHIGAN, U.S.A. (October 4, 2001) – Officials at Johnson Controls say the company’s ongoing work to support diverse businesses is a winning strategy that benefits its customers and the community. For its outstanding efforts in developing diverse suppliers, Johnson Controls has been named "Corporation of the Year" for 2001 by the Michigan Minority Business Development Council (MMBDC).

Representatives from MMBDC presented Johnson Controls with the Corporation of the Year Award at the group's annual recognition dinner earlier this week. The event, attended by more than 3,000 people, was held at Cobo Center in Detroit.

Johnson Controls – a major, global manufacturer of vehicle interior systems, batteries and building controls – has operated an innovative program to recruit and develop diverse suppliers since the early 1990s. In fiscal-year 2001, the company purchased approximately $505 million in goods and services from diverse firms, a figure that's estimated to expand to $1 billion by the year 2003.

MMBDC, a voluntary organization with more than 2,000 members, works to create links between major corporations and minority businesses.

This year marks the fifth time in the past six years in which Johnson Controls has gained Corporation of the Year recognition from MMBDC.

"Embracing diversity – and the positive results it generates – are key elements of our corporate mission, our values and our business strategy," said John Barth, president and chief operating officer for Johnson Controls. "We have made strong commitments to diversity and developing a diverse supply base, and we are acting on these commitments."

At the event, MMBDC gave special recognition to individuals and companies for their outstanding support of diverse businesses. Johnson Controls was honored with the 2001 Corporation of the Year Award in the "Industrial Purchasing Sector, Tier-One Supplier" category.

Chuck Harvey, Johnson Controls’ group vice president of human resources, also was recognized with a 2001 Commitment Award, in appreciation for his vision, support, and continued commitment to the growth and development of the MMBDC.

Here are highlights of Johnson Controls' recent activities and achievements in support of diverse suppliers and minority-owned firms:

The company...

Has integrated "diversity business development" as a key component of its strategic business plan.  Purchases from diverse suppliers, including those owned by minorities and women, are targeted to grow each year.  Increased its level of purchasing from diverse suppliers by nearly 8 percent between 2000 and 2001, from $465 million to $505 million.  Requires its vendors to develop and implement their own diversity business development programs.  Has pledged to include diverse suppliers in divestitures, lead supplier arrangements, joint ventures and strategic alliances.  Has created successful partnerships in support of diverse businesses. For example, Johnson Controls is a joint-venture partner in Bridgewater Interiors, LLC of Detroit, a minority-owned firm with a $900 million contract to supply complete seat systems for Cadillac DeVille vehicles.  Sponsors educational fellowships for officials from minority-owned companies. Each year since 1998, Johnson Controls has funded fellowships that enable executives to attend continuing-education programs at the graduate business school of Dartmouth College in Hanover, New Hampshire. Johnson Controls also has funded fellowships for minority executives at the University of Wisconsin – Madison.  

Convenes trade shows and other events to promote purchases of goods and services from diverse firms.  Provides ongoing mentoring and training for customers and diverse suppliers throughout the United States.  Has provided significant support to the leadership and mission of MMBDC.

"At Johnson Controls, the diversity supplier development concept has been translated into an effective plan of action that creates sustained business impacts and advantages all around," said Larry Alles, the company’s vice president and general manager of purchasing - worldwide. "We’re honored to lead in this area."

Johnson Controls, Inc. is a global leader in automotive systems and facility management and control. In the automotive market, it is a major supplier of seating and interior systems, and batteries. For non-residential facilities, Johnson Controls provides building control systems and services, energy management and integrated facility management. Johnson Controls, founded in 1885, has headquarters in Milwaukee, Wisconsin (U.S.A.). Its sales for 2000 totaled US$17.2 billion.

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