ETHICS AND INTEGRITY

Maintaining the highest standard of ethics in the conduct of our business is our corporate policy and has always been an integral part of Masco Corporation’s culture. Our reputation for ethical business practices is one of our most valued assets.

Ethics posters

WE HAVE A CODE OF BUSINESS ETHICS (THE “CODE OF ETHICS”):

Masco’s Legal and Ethical Compliance Program consists of a number of elements designed to help our employees, officers and directors understand, implement and consistently reinforce our commitment to ethical business practices. Our program includes the Masco Code of Business Ethics (the “Code of Ethics”), the Masco Ethics Hotline, and ethics training. The Code of Ethics requires that all Masco employees, officers and directors respect and comply with the laws, rules and regulations of all jurisdictions that are applicable to a Masco company and our corporate policies. We have policies that address anti-bribery/anti-corruption, antitrust, conflicts of interest, environmental, health and safety, financial reporting, “insider trading,” data privacy and other areas of concern. We communicate our program through multiple channels, and our Code of Ethics, policies and training materials are translated into foreign languages. Our employees are encouraged to report violations of the law or our policies using an anonymous hotline. We will not retaliate against reports made in good faith. Our Code of Ethics is available on our website at masco.com/about/corporate-governance/.

GOVERNANCE

STRUCTURE

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.

PRECAUTIONARY PRINCIPLE

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.

ENDORSEMENTS

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

  • ISO 14001

  • OHSAS 18001

  • 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

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PROFILE

ORGANIZATION

Headquartered in Taylor, Michigan, Masco Corporation is a publicly-traded company incorporated in the state of Delaware. Our common stock is traded on the New York Stock Exchange (NYSE) under the symbol MAS.

BRANDS, PRODUCTS AND MARKETS

We are a global leader in the design, manufacture, marketing and distribution of branded home improvement and building products. These products are sold for home improvement and new home construction through home center retailers, mass merchandisers, hardware stores, homebuilders, distributors and other outlets for consumers and contractors and direct to the consumer. Our portfolio of industry-leading brands includes KRAFTMAID® and MERILLAT® cabinets; DELTA®,PEERLESS®, and HANSGROHE® faucets, bath and shower fixtures; HOT SPRING® and CALDERA® spas; BEHR® paint, primer and stain; KILZ® primer; LIBERTY® and BRAINERD® decorative hardware; and MILGARD® windows and doors. We leverage our powerful brands across product categories, sales channels and geographies to create value for our customers and shareholders.

Cabinetry products
CABINETRY PRODUCTS: We are one of the largest manufacturers of kitchen and bath cabinetry in the world. This segment includes kitchen, bath, storage, home office and home entertainment assembled cabinetry. (2015 net sales: $1.0 billion, 14 percent of Masco’s total net sales)
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Plumbing products
PLUMBING PRODUCTS: We are a world leader in plumbing products, with access to broad distribution channels worldwide. We offer a wide variety of products, including faucets, plumbing fittings and valves, showerheads and handheld showers, bathing units and shower enclosures, toilets, spas and exercise pools. (2015 net sales: $3.3 billion, 47 percent of Masco’s total net sales)
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Decorative architecture
DECORATIVE ARCHITECTURAL PRODUCTS: We are one of the largest suppliers of architectural coatings, including paint, primers, specialty paint products, stains and waterproofing products. This segment also includes cabinet, door, window and other hardware. (2015 net sales: $2.0 billion, 28 percent of Masco’s total net sales.)
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Windows speciality
WINDOWS AND OTHER SPECIALTY PRODUCTS: We are one of the leading manufacturers of vinyl, fiberglass and aluminum windows and patio doors, principally in the western United States. We also sell vinyl windows, composite and panel doors and related products and components in the United Kingdom. This segment also includes heavy duty staple guns, hammer tackers, glue guns and rivet tools as well as the staples, glue and rivets. (2015 net sales: $0.8 billion, 11 percent of total Masco’s net sales)
Window speciality logos

SIGNIFICANT CHANGES

On June 30, 2015, we completed the spin off of our Installation and Other Services businesses into an independent, publicly-traded company, TopBuild Corp., through a tax-free distribution to our shareholders. As a result of the spin off, our business has become less dependent on new home construction, and is, therefore, less cyclical, and a greater portion of our sales are derived from international markets. Additionally, as a result of the spin off, Masco’s workforce was reduced from approximately 32,000 to 25,000 employees.

SCALE

OPERATIONS

As of December 31, 2015, our principal properties consisted of 46 manufacturing facilities and 27 distribution and warehouse facilities in North America and 20 manufacturing facilities and 23 distribution and warehouse facilities outside of North America. Most of our international facilities are located in China, Germany and the United Kingdom. The total manufacturing area of Masco facilities in 2015 was approximately 1,050,000 m2.

We have significant manufacturing operations in the following countries:

  • Canada

  • China

  • France

  • Germany

  • Mexico

  • Turkey

  • United Kingdom

  • United States

WORKFORCE

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.

Employees infographic

COLLECTIVE BARGAINING

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.

SUPPLY CHAIN

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.

MEMBERSHIPS

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

  • Employers Group

  • 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

EUROPE
  • Association of German Engineers (VDI)

  • Association for Occupational Safety (VSW)

  • Association for Solar Energy (DGNB)

  • Alliance for Sustainability (Allianz pro Nachhaltigkeit)

  • Bathroom Manufacturers Association

  • British Fenestration Rating Council

  • British Plastics Federation

  • Furniture Industry Research Association

  • German Association for Personnel Management

  • German Sustainable Building Council

  • Glass and Glazing Federation

  • Industry Design Forum (Industrie Design Forum)

  • Institute for Building and Environment (IBU)

  • International Controller Association (ICV)

  • Royal Society for the Prevention of Accidents