ETHICS AND INTEGRITY
The standing committees of our Board are the Audit Committee, the Organization and Compensation Committee and the Corporate Governance and Nominating Committee, and each of which functions pursuant to a written charter adopted by the Board. The membership of these three committees qualifies under the independence and experience requirements applicable to the Company, including requirements of the New York Stock Exchange. Subject to any changes that our Board may make from time to time:
Our Audit Committee assists our Board in the oversight of the integrity of our financial statements, the effectiveness of our internal controls over financial reporting, the independence and performance of our independent auditors, the performance of our internal audit function, and our compliance with legal and regulatory requirements, including our employees’ compliance with our Code of Ethics.
Our Organization and Compensation Committee determines executive compensation, evaluates the performance of our senior executives, determines and evaluates variable compensation plans, and reviews our management succession plan, including periodically reviewing our CEO’s evaluation and recommendation of potential successors.
Our Corporate Governance and Nominating Committee advises our Board on the governance structure and conduct of our Board and has responsibility for developing and recommending to our Board appropriate corporate governance guidelines and policies. In addition, our Governance Committee identifies and recommends qualified individuals for nomination and re-nomination to our Board and recommends directors for appointment and re-appointment to Board committees.
For additional details regarding Masco’s governance structure, go to Masco - Corporate Governance.
Masco has a formal and ongoing Enterprise Risk Management (ERM) process to anticipate and manage corporate risk and, where possible, to convert potential risks into business opportunities. This is supported by risk mitigation activities with ownership and action plans, allowing us to better manage potential risks. The Audit Committee is responsible for reviewing policies related to risk, but it is the responsibility of the Chief Executive Officer and senior management to determine the appropriate level of risk.
Masco participates in and, in some cases, has assisted in the development of several major external charters and initiatives, including:
WaterSense®, ENERGY STAR®, and other voluntary EPA initiatives
Carbon Disclosure Project
Global Reporting Initiative
Sustainability Accounting Standards Board
United Nations Sustainable Development Goals
Standards for sustainable forestry practices, such as the Forest Stewardship Council and Sustainable Forestry Initiative
As of December 31, 2015, Masco employed approximately 25,000 employees in 35 countries. Of these employees, approximately 60 percent worked in the United States.
Approximately 2 percent of all of our U.S. employees are covered by a collective bargaining agreement, most at our Arrow Fastener and BrassCraft Manufacturing operations. Outside the U.S., the percentages are higher. For instance, at Hansgrohe in Germany, approximately 65 percent of employees are covered by a collective bargaining agreement. At HÜPPE, also in Germany, approximately 70 percent of industrial employees and 25 percent of salaried employees are covered by collective bargaining agreements. In our U.K. window businesses, approximately 13 percent of all employees are covered.
We partner with a global supply base to manufacture and distribute products to our customers and channel partners. Our 25,000 global suppliers provide us with raw materials, components, sub-assemblies, manufacturing services, finished goods and indirect goods and services. We spend approximately $4.5 billion with our global supply base–approximately 65 percent with suppliers in North America, 20 percent with suppliers in Asia and 15 percent with suppliers in Europe.
Many of the suppliers upon whom we rely are located in foreign countries. The differences in business practices, shipping and delivery requirements and laws and regulations, together with the limited number of suppliers, have increased the complexity of our supply chain logistics and the potential for interruptions in our production scheduling. Therefore, we have continued to seek and realize supply chain efficiencies through strategic sourcing. We also have agreements with certain significant suppliers to help ensure continued availability.
In 2015, Masco was involved with the following associations and national or international advocacy organizations, whether through memberships, governance, participation in projects or committees, funding beyond routine dues, or other strategic forms of involvement.
U.S. AND INTERNATIONAL (EXCLUDING EUROPE)
AliaRSE (promoting Mexican business ethics and environmental responsibility)
American Alliance for Water Efficiency
American Coatings Association
Architectural Manufacturers Association
Conflict Free Sourcing Initiative
Equal Employment Action Committee
Home Performance Contractors
Human Resource Policy Association
Kitchen Cabinet Manufacturers Association
Manufacturers Alliance for Productivity and Innovation (MAPI)
National Safety Council
North County Personnel Association
Plumbing Manufacturers Institute
Society for Human Resource Management
U.S. Green Building Council