2012 Report on Global Citizenship

Aim for Zero Injuries

Xerox is committed to creating a healthy work environment for our employees.

Zero Injury Program
We strive toward a goal of zero injuries, with continual improvement in safety performance in both injury frequency and severity. Reporting and monitoring of injury frequency rates occurs for different geographies and organizations. The reporting of work-related injuries, illnesses and fatalities is based on the same criteria for all operations, worldwide, regardless of the geography in which they reside. In 2011, there was a small reduction in the frequency of injuries (1%) when compared to 2010 performance. Since 1996 there has been significant overall improvement, including a 56% reduction in total recordable injury rate and 48% reduction in day away from work case injury rate. Xerox experienced no work-related fatalities in 2011.

The basis of Xerox safety management is the integration of safety into business processes and a commitment to make safety a core value of each operation. With our acquisition of ACS, a number of ACS' safety management processes have been transitioned into Xerox's corporate wide processes, including injury recordkeeping, accident investigation, fire and property inspections, and emergency preparedness. This integration has standardized our safety processes and helped characterize the injury causals and mitigation plans.

Each calendar year, every operation's performance is reviewed and targets are set based on the nature of the operation and injury performance levels and trends. The overall 2011 corporate injury rate target was established to focus the operations on resuming the exceptional performance in 2009.

In 2011, several operations demonstrated very good performance. Most notably, our U.S. managed print services business had a 13% reduction in recordable injuries and a 12% reduction is day away from work case injuries. Our European operations had an 11% reduction in day away from work case injuries and Developing Markets Operations had 4% reduction in recordable injuries. Although performance in the U.S. did not meet our ambitious goals, the recordable injuries were reduced by 6% overall. However, our U.S. days away from work injuries increased by 9%.

Priority Focus Areas
We continue to prioritize safety improvement efforts in those areas that have the greatest opportunity both in terms of injury rate and population. In particular, some of our technology operations have unique challenges in hazard recognition and control. Technicians travel to customer accounts and work in a large variety of customer facilities; often times, they don't visit a Xerox facility in the course of their job. Slips/trips/falls, ergonomics and motor vehicle accidents are focus areas to improve technicians' safety, as well as improving overall health and safety awareness. In 2011, a health/safety/wellness communications program was fully implemented to our technician workforce. This included weekly messages on safety/health/wellness topics to help our people recognize the behaviors needed for their safety during traditional technician work, in addition to on and off the job practices to improve their overall health and wellness.

Motor Vehicle Safety
With our technicians and sales representatives depending on their vehicles to get their jobs done, motor vehicle safety is a key component of our safety initiatives. We have a company car program that specifies motor vehicle safety requirements of drivers, and accident prevention and reporting processes. We also review employee-driving records on a regular basis and deliver remedial safety training to improve awareness and competency.

A comprehensive safety review is conducted on any vehicle prior to it being accepted as part of the Xerox fleet. Company vehicles have safety features such as daytime running lights and safety barriers between the driver's seat and storage areas. We also continually benchmark with other companies that manage fleet vehicles to identify best practices to help improve our motor vehicle safety record.

Ergonomics
Musculoskeletal disorders continue to represent about one-half of our work-related injuries and illnesses, which is why we have strong processes to reduce ergonomic stresses in the workplace. Since 1992, we have achieved a 50% decline in reported musculoskeletal disorders within our U.S. operations. We address potential ergonomic issues in a variety of ways, always keeping in mind that the most effective way to prevent ergonomic injuries is to minimize the risk factors up-front when the job is designed.

Emergency Preparedness
Xerox's emergency preparedness and response program helps protect the safety of our employees, the surrounding communities and the environment. It requires all of our operations worldwide to develop documented plans for responding to fires, chemical releases, natural disasters and other potential incidents. Mandatory management reviews, scheduled routinely, as well as drills and corporate audits, verify that plans will be effective in protecting our people and our business during emergencies. In addition, Business Resumption Plans are in place and drills are conducted annually to ensure effective processes are in place to restore business operations post-incident.

Our plans strive to strike a balance between being detailed enough to address specific issues and being flexible enough to allow us to effectively deal with the uniqueness of any particular event. Our planning has been tested by a variety events including power outages, hurricanes and flooding. It is evident our plans have been successful in mitigating the consequences of these events.

As part of our emergency planning process, prospective facilities that will be occupied by Xerox employees undergo a comprehensive review of fire and life safety attributes. Upgrades are implemented as necessary to establish and maintain the safety of building occupants. Depending on the size and type of operation and proximity to hazardous operations (i.e. nuclear power plant, chemical plant, etc.), "shelter-in-place" plans have been developed and drills are conducted in addition to the traditional evacuation plans and drills.

Monitoring Workplace Exposures
To protect employees from unsafe exposures to chemicals, noises and radiation, we define strict exposure limits for worldwide manufacturing, research and service operations. They reflect the most stringent regulatory requirements or industry standards. For some materials – including toners, solvents and certain metals – Xerox has established limits well below the strictest regulations and standards.

Industrial hygiene (IH) and safety professionals monitor and characterize workplace exposures through implementation of the Xerox Exposure Assessment Process and execution of Annual IH Sampling Plans. Exposures are minimized and controlled through use of engineering controls, safe job procedures and use of personal protective equipment. Of the workplace exposures monitored in 2011, approximately 97% were within Xerox limits, and all were well within regulatory limits.