CEO Letter

Dear Stakeholders:

Since our earliest days, Xerox has embarked on a never-ending journey to demonstrate that good business and good citizenship are not only compatible, but synergistic.

Consider this… 75 years ago, a patent attorney named Chester Carlson invented xerography. After spending countless hours in the New York Public Library hand-writing copies of materials he needed, he was determined to find a way “to make office work a little more productive and a little less tedious.”

Along came Joseph C. Wilson who bet his family’s business on Carlson’s invention. As our company’s founder and the first chairman of Xerox, he was a man of deep social consciousness long before the phrase was part of the language of business. He communicated a set of core values in 1960 – less than a year after we launched the modern-day Xerox – that focused on our customers, our people, excellence, innovation and behaving responsibly as a corporate citizen.

While just about everything in our industry has changed and changed again since then, these two men have a strong influence on Xerox today. We continue to innovate new ways to simplify complex and tedious tasks... and the values first shared in the 60's continue to be the bedrock of our company.

Today, we still live our beliefs and our values through our actions. We know that being a good corporate citizen is integral to our innovation and top-line performance.

That thinking has taken us to some interesting places and produced some significant results. We’ve evolved from the well-established copier company to the world’s leading enterprise for business process and document management.

Through the broader business we’re building, I’m more convinced than ever in the power of this company to help build a better, more sustainable world.

In our 2013 Global Citizenship Report, you’ll find rich and concrete evidence of our progress.

  • You’ll read about our equipment and supplies return, reuse and re-manufacturing program and how we’ve diverted more than 2.2 billion pounds of waste from landfills worldwide.
  • You’ll learn why we continue to be recognized as having one of the most diverse workforces in the world, and why we are often viewed as one of the best places to work, to grow and to contribute.
  • You’ll see how our researchers are helping cities in the U.S., Latin America and Europe improve traffic flow and relieve traffic congestion. That means less fuel and less pollution.
  • You’ll find out about our efforts to broaden and expand the number of young people entering the fields of science, technology, engineering and mathematics – the STEM disciplines. Investments in innovation and in STEM have shaped our company for decades and will influence our future.
  • You’ll learn about how much of our business today is centered on helping our customers reduce their reliance on paper through software and service-based solutions that take paper out of the mix and digitally move transactions, like health insurance claims and loan applications into faster, simpler, more accurate and more sustainable workflows.

Our commitment to sustainability doesn’t stop there. This report is also filled with numbers. In our big data world, numbers speak volumes about results. They influence your business decisions and they influence the way we run our business. Just about every Request For Proposal we see these days wants to know how we’re making the world a better place – from our environmental stewardship and sustainability to ethical governance and community involvement. And in just about every case we can come up with a triple-bottom-line benefit – good for our customers, good for Xerox and good for the planet.

Across industries and around the globe, businesses and governments are recognizing the value proposition of today’s Xerox. We have people who are passionate about making our communities better than they are… a corporate culture that is committed to diversity and continuous improvement… and an innovation community that’s harnessing the potential of services and technologies for the promise of a better world.

Chester Carlson was on to something 75 years ago. And, today at Xerox, we continue to believe our purpose is to simplify how work gets done. When we do just that in smart, sustainable ways, our hope is that the world works a little better… for the next 75 years and beyond.

I think Chester Carlson and Joe Wilson would like the evolution of the company they founded. Take a look inside and see for yourself. Then, let us know what you think. Feedback from our stakeholders keeps us grounded and on a steady path for improvement. Feel free to email us at citizenship@xerox.com with your thoughts.

Thanks for your interest.



Ursula M. Burns
Chairman and Chief Executive Officer

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Our Progress

Across industries and around the globe, businesses and governments are recognizing the value proposition of today’s Xerox. We have people who are passionate about making our communities better than they are… a corporate culture that is committed to diversity and continuous improvement… and an innovation community that’s harnessing the potential of services and technologies for the promise of a better world.

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  • Sustaining Business

    Independence of the Board

    Based on standards for independence developed by the New York Stock Exchange, the Xerox Board of Directors is currently 90% independent...
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  • Evolving the Workplace

    Employee Satisfaction

    75% of surveyed employees responded favorably to the statement "My work gives me a feeling of personal accomplishment" on our proprietary Voice of the Employee Survey...
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  • Evolving the Workplace

    Employee Inquiries

    The Sentinel Customer Satisfaction Assurance System™, a Xerox proprietary Web-based polling/routing/reporting system...
    See More

  • Evolving the Workplace

    Diversity: Women in Management

    We gain a competitive advantage as we continue to draw on the experience and creativity of a well-balanced, diverse work force.
    See More

  • Evolving the Workplace

    Diversity: Minorities in Management

    Minorities represent 37.5% of employees and 13.2% of the executive and senior level managers in the U.S. Diversity reporting is not tracked in most other countries.
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  • Evolving the Workplace

    Recordable Injury Rate

    We strive toward a goal of zero injuries, with continual improvement in safety performance in both injury frequency and severity.
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  • Evolving the Workplace

    Days Away from Work Case Rate

    We strive to prevent all injuries and illnesses and place special emphasize on the elimination of serious incidents...
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  • Serving Customers

    Equipment Market Share

    Xerox is the leader in equipment revenue market share for the 13th straight quarter (4Q2012). We offer the industry's broadest portfolio...
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  • Serving Customers

    Patents Awarded to Xerox*

    The Xerox group garnered over 1,215 patents total. Xerox was granted 686 U.S. patents and our joint venture in Japan, Fuji Xerox Co. Ltd.,...
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  • Serving Customers

    Customer Service

    Service and support for Xerox products earned five consecutive industry certifications from 2006-2010.
    See More

  • Serving Customers

    Market Leadership

    The Xerox commitment to our customers has gained worldwide recognition. Independent Industry analysts rate our products and services...
    See More

  • Caring for Communities

    Xerox Foundation Giving

    In 2012, 2,676 non-profit organizations, colleges and universities received direct financial support from the Xerox Foundation through grants...
    See More

  • Caring for Communities

    Employees in Community Activities

    The Xerox Community Involvement Program marries the voluntary spirit of our employees with Xerox funding to participate...
    See More

  • Preserving the Planet

    Recycle Rate

    Facilities in Wilsonville, Oregon and Venray, the Netherlands joined the Emulsion / Aggregation Toner manufacturing operation in Webster, New York achieving "zero waste to landfills...
    See More

  • Preserving the Planet

    Water Consumption

    As part of our commitment to conserve resources, we monitor water consumption across our manufacturing, distribution and R&D facilities worldwide. Water consumption decreased 35% over baseline year of 2009...
    See More

  • Preserving the Planet

    Greenhouse Gas Emissions

    Since 2002 scope 1 and 2 greenhouse gas emissions are down 42% in our Document Technology business. The reductions are the result of improved energy efficiency, new technologies and improved energy management practices...
    See More

  • Preserving the Planet

    Achieving ENERGY STAR® Rating

    In 2012, 100% of all of our new eligible products met the current ENERGY STAR (July 2009) requirements. Continued success in cutting the power consumption of our laser-based printing products has been achieved by adjustments in the fuser design...
    See More

  • Preserving the Planet

    Landfill Avoidance Rate

    The Xerox Green World Alliance reuse/recycle program for imaging supplies is central to our commitment to waste-free products. We currently have more than 35 countries participating in the Xerox Green World Alliance...
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  • Preserving the Planet

    Scope 3 GHG Emissions

    We are in the process of expanding Greenhouse Gas tracking to include Scope 3 emissions, beginning with employee business travel. We measured these 2012 Scope 3 emissions at 11,000 metric tonnes of CO2e, down 8% from 2011...
    See More

  • Preserving the Planet

    Energy Use Reduction

    We are proud to announce that through the teamwork of Xerox people worldwide we have achieved and surpassed our goals for the Xerox “Energy Challenge 2012” program...
    See More

100% rating on the 2011 Corporate Equality Index and Best Places to Work

Evolving the Workplace | Be Diverse

Xerox achieved a 100% rating on the 2011 Corporate Equality Index and Best Places to Work Survey administered by the Human Rights Campaign Foundation. The rating evaluates businesses that support equality for lesbian, gay, bisexual and transgender employees. We received a perfect score in four out of four years.

Read more about our rankings for sustainability, diversity, governance and ethics.

Learn more about diversity at Xerox.

Xerox's Midas+Live works with Electronic Medical Records to improve healthcare

Serving Customers | Satisfying Customers

Hospitals and other healthcare organizations have one mission: improving the quality of patient care. Xerox solutions are helping more than 1,500 healthcare providers make better use of the data they amass on a daily basis – from identifying and treating chronic disease, to eliminating a patient's return trip to the hospital, to predicting and preventing medical complications. In the past, hospitals analyzed data after patients were discharged or events occurred. Our Midas+ Live changes all that. It works with a hospital's Electronic Medical Record (EMR) system, and alerts caregivers when any of thousands of possible changes in a patient's condition happen simultaneously – such as an increase in temperature or low blood pressure, combined with various lab and radiology results. This information can then be used to inform the caregiver prior to a decline in the patient's condition. We're also helping medical professionals identify hospital-acquired infections more quickly, through text mining technology developed at the Xerox Research Centre Europe. This technology can analyze information in patient records – such as symptoms, drugs and types of bacteria found. If there's risk potential, the system alerts caregivers, so they can take action to help the patient and stop the infection from spreading.

Learn more on what we are doing to improve patient care

Meet Sakena Hillman, one of our 2013 Social Service Leave Takers

Caring for Communities | Volunteer Programs

Sakena Hillman is one of 11 Xerox Employees who donate a year of their time to the causes they believe in. Sakena is working with Teen Living Programs in Chicago to develop workshops and support programs that teach teens the skills and knowledge they need to become independent.

See a list of all 2013 Social Service Leave participants.

Learn about the Xerox 2011 Social Service Leave participants.

Meeting a benchmark of social responsibility

Sustaining Business | Human Rights

For the fourth consecutive year, Xerox has met the FTSE4Good criteria for corporate responsibility, social and stakeholder engagement, human rights and environmental actions. Created in 2001, the FTSE4Good Index is a series of benchmarks for socially responsible investors who want to measure performance using globally recognized standards.

Read more about our rankings for sustainability, diversity, governance and ethics.

The Xerox Board of Directors: Maintaining independence

Sustaining Business

Based on standards for independence developed by the New York Stock Exchange, the Xerox Board of Directors is currently 90% independent. It includes one non-independent director: Xerox Chairman and CEO Ursula M. Burns. Learn more about the Board’s independence and our governance policies: www.xerox.com/governance.

2009201020112012
80%88%90%90%
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Voice of employee survey

Evolving the Workplace

Our proprietary Voice of the Employee Survey allows managers to create a personal pulse survey to assess their employees’ satisfaction on their job, workgroup, manager, and on Xerox as a whole.

Since 2009, we have surveyed 100% of our global population of 48 countries and in 25 languages. Each manager receives a personalized report to assist in developing action plans where needed. In addition, we capture global trend data and employee ideas.

The Voice of the Employee survey will be globally implemented again in 2013, and every two years thereafter.

See more detailed information on employee satisfaction surveys.

2009201020112012
77%*
*North American data only.
72%**
**Global data based on 72,000 survey results. The North American percentage agreement is 82%.
74%75%***
***Data based on over 14,000 survey results from three geographies in the Xerox Technology line of business: Xerox Europe, Xerox Canada and Developing Markets.
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Addressing employee inquiries

Evolving the Workplace

The Sentinel Customer Satisfaction Assurance System™, a Xerox proprietary Web-based polling/routing/reporting system, links employee inquiries or comments through the intranet with appropriate Xerox contacts to identify and track any comment, suggestion or unresolved problem for action.

The decline in inquiries from 2011 to 2012 is due to the overall resolution of systemic issues in the system and the ability for employees to provide comments/suggestions or raise a technical issue, which are routed to another system for resolution.

2009201020112012
4,106 inquiries received and routed for resolution 6,698 inquiries received and routed for resolution3,291 inquiries received and routed for resolution2,745 inquiries received and routed for resolution
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Employee Diversity – Women employees

Evolving the Workplace

We gain a competitive advantage as we continue to draw on the experience and creativity of a well-balanced, diverse workforce. That means we’re better able to understand and meet the changing demands for our products and services. Simply stated, a balanced work force makes good business sense.

52.3% of employees in U.S. are women, and women represent 26% of the executive and senior level managers in the U.S. Diversity reporting is not tracked in most other countries.

The decline from 2011 is due to the inclusion of our Services business.

Learn more about diversity at Xerox.

Learn more about Xerox Diversity: Different ideas. Diverse people. Dramatic results.

2009201020112012
31.8% 49.7%49.8% (U.S. only)40.8% (U.S. only)
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Employee Diversity – Minority employees

Evolving the Workplace

Employees with different ways of thinking – and different ways of perceiving our world – are employees who create innovative solutions. In a business like ours, whose lifeblood is fresh ideas, this variety of perspectives is a priceless resource – and a key to achieving critical business results.

Minorities represent 39.4% of employees and 13.6% of the executive and senior level managers in the U.S. Diversity reporting is not tracked in most other countries.

The decline from 2011 is due to the inclusion of our Services business.

Learn more about diversity at Xerox.

Learn more about Xerox Diversity: Different ideas. Diverse people. Dramatic results.

2009201020112012
20.2%22.7%37.5% (U.S. only)23.4% (U.S. only)
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Monitoring the safety of our employees

Evolving the Workplace

Improved injury reporting from our worldwide operations and the redistribution of our employee work assignments have resulted in increased injury rates.

In 2011, a safety improvement project was initiated to improve employee safety awareness and management inspection of safe work practices. We also further expanded our health/safety/wellness communications to our technician workforce.

See more detailed information on our recordable injury rates.

2009201020112012
Down 7% from 2008 Up 18% from 2009Down 1% from 2010Up 5% from 2011
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Preventing injuries and illnesses

Evolving the Workplace

Improved injury reporting from our worldwide operations and the redistribution of our employee work assignments have resulted in increased injury rates.

In 2011, a safety improvement project was initiated to improve employee safety awareness and management inspection of safe work practices. We also further expanded our health/safety/wellness communications to our technician workforce.

See more detailed information on work injury rates at Xerox.

2009201020112012
Down 4% from 2008 Up 4% from 2009Up 6% from 2010Up 13 % from 2011
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Topping the competition

Serving Customers

Xerox is the leader in equipment revenue market share for the 13th straight quarter (4Q2012). We offer the industry’s broadest portfolio of document technology and services for businesses of any size, in any industry, anywhere around the world.

Learn more about Xerox products.

2009201020112012
#1 in Q4#1#1#1
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Innovating for the future

Serving Customers

Xerox was granted 1,215 U.S. patents in 2012 ranking the company as one of the world’s top innovators. Our joint venture in Japan, Fuji Xerox Co. Ltd., received 686 U.S. patents. The Xerox group garnered 1,900 patents total.

Xerox and Fuji Xerox collectively invest about $1.5 billion annually in research, development and engineering.

*Total patents earned along with Fuji Xerox Group.

Learn more about innovation at Xerox.

View more information on our patent filings.

2009201020112012
1,1311,6051,6181,900
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Measuring customer satisfaction

Serving Customers

Service and support for Xerox products earned five consecutive industry certifications from 2006-2010 under the J.D. Power and Associates Certified Technology Service and SupportSM program. All forms of customer support – phone, on-line, on-site – were evaluated by independent service industry experts who recognized our support services as among the best in class. These certification reviews have ensured we maintain process excellence in technical service delivery.

In 2011, we chose to invest in a new customer satisfaction process to ensure a stronger focus on understanding and fulfilling customer needs and expectations. The new process solicits feedback from our technology customers around the globe and provides detailed insights that help us identify systemic issues and make the necessary changes that ensure strong customer satisfaction. Improved closed-loop follow-up processes also enable faster responses to individual problems.

2009201020112012
Achieved certification in the J.D. Power and Associates program for Certified Technology Service and Support.Achieved certification in the J.D. Power and Associates program for Certified Technology Service and Support.In 2011, we chose to invest in a new customer satisfaction process to ensure a stronger focus on understanding and fulfilling customer needs and expectations. In 2012, we continued our investment in a new customer satisfaction process to ensure our award-winning service and customer-centric approach builds customer loyalty and trust. It’s a core competency and a competitive advantage for Xerox.
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Industry analysts rate Xerox products and services as market leaders

Serving Customers

The Xerox commitment to our customers has gained worldwide recognition. Independent industry analysts rate our products and services as leaders in multiple categories.

Helping customers better manage their print environment led Xerox to achieve the grand slam in Managed Print Services recognition by being named by the top analyst companies IDC, Gartner, Forrester and Quocirca as an industry leader.

Read more about recognition from IDC.

Read more about Gartner's Magic Quadrant.

2009201020112012
Gartner, Inc.: Leaders Quadrant in the Magic Quadrant for Managed Print Services Worldwide, CRM Contact Center BPO for North America, and Comprehensive Human Resources Business Process Outsourcing.
Gartner, Inc.: Leaders Quadrant in the 2010 Magic Quadrant for Managed Print Services Worldwide, MFPs and Printers, and Finance & Accounting Business Process Outsourcing. Visionaries Quadrant for Enterprise Content Management (ECM).

IDC: A leader in Worldwide and U.S. Outsourced Print and Document Services Forecast and Analysis and in IDC’s 2010 MPS MarketScape report.
Gartner, Inc.: Leaders Quadrant in the 2011 Magic Quadrant for Managed Print Services Worldwide. Global leader in the Comprehensive Finance and Accounting Business Process Outsourcing arena; noted our leadership for Help Desktop Outsourcing Services in North America.

IDC: a market Leader for managed print services in IDC’s 2011 MarketScape report.
Gartner, Inc.: Leaders Quadrant for Managed Print Services; Comprehensive Finance and Accounting BPO, Global; Customer Management Contact Center BPO, Worldwide; Help Desk Outsourcing, North America; Desktop Outsourcing Services, North America. Challenger in Data Center Outsourcing and Infrastructure Utility Services, North America. Niche Player for e-Discovery Software.

IDC: Major Player for managed print services and Comprehensive HRO in MarketScape.

Forrester: Leader in Managed Print Services in The Forrester Wave.
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The Xerox Foundation

Caring for Communities

In 2012, 2,676 non-profit organizations, colleges and universities received direct financial support from the Xerox Foundation through grants, matching gifts or community involvement activities. We focus our investments in the following areas:

  • Education and workforce preparedness
  • Science and technology
  • Environmental affairs
  • Employee and community affairs
  • National and cultural affairs

Learn more about the Xerox Foundation.

See more detailed information on Xerox Foundation giving.

2009201020112012
$12.0 million$12.5 million$13.5 million$13.5 million
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The Xerox Community Involvement Program

Caring for Communities

The Xerox Community Involvement Program marries the voluntary spirit of our employees with Xerox funding to participate in the betterment of the communities where we live and work. In addition to our community involvement funding, in 2012, 11 Xerox employees were awarded Xerox social service leave fully-paid sabbaticals, dedicating their time to organizations in need of their business acumen.

Learn more about the Xerox Foundation.

See more detailed information on community involvement programs.

2009201020112012
8,650 Employees

648 Projects

$978,018
10,137 Employees

712 Projects

$1,009,584
12,291 Employees

751 Projects

$1,000,000+
12,713 Employees

713 Projects

$2,180,629
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Our goal: Zero waste to landfills

Preserving the Planet

In 2012, our facilities in Dundalk, Ireland, joined the Emulsion Aggregation Toner manufacturing operation in Webster, New York, and the Wilsonville, Oregon, and Venray, Netherlands, facilities achieving zero waste to landfill.

See more detailed information on Xerox recycling.

2009201020112012
91%89%91%93%
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Conserving water

Preserving the Planet

As part of our commitment to conserve resources, we monitor water consumption across our manufacturing, distribution and R&D facilities worldwide. Water consumption decreased 35% over baseline year of 2009.

See more detailed information on water consumption.

2009201020112012
Down 7% from 2008Down 7% from 2009Down 15% from 2010Down 17% from 2011
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Reducing greenhouse gas emissions

Preserving the Planet

Since 2002 scope 1 and 2 greenhouse gas emissions are down 42% in our Document Technology business. The reductions are the result of improved energy efficiency, new technologies and improved energy management practices.

See more detailed information on greenhouse gas emissions.

2009201020112012
Down 11% from 2008Down 3% from 2009Down 9% from 2010
Down 36% from 2002
Down 9% from 2011
Down 42% from 2002
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New products achieve the ENERGY STAR® rating

Preserving the Planet

In 2012, 100% of all our new eligible products met the current ENERGY STAR (July 2009) requirements. Continued success in cutting the power consumption of our laser-based printing products has been achieved by adjustments in the fuser design, changes to the properties of the toner, more-efficient electronic controls and the workings of the xerographic system as a whole.

See more detailed information on Energy Star ratings for Xerox Products.

2009201020112012
92%100%100%100%
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End-of-Life Managment

Preserving the Planet

Our approach to managing products at end-of-life translates into significant environmental and financial benefits. Globally, our combined returns programs (equipment remanufacture in conjunction with parts and consumables reuse and recycling) prevented over 42,000 metric tons of waste from entering landfills in 2012 alone.

Learn more about the Xerox Green World Alliance.

2009201020112012
98%97%98%99.3%
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Reducing emissions by reducing employee air travel

Preserving the Planet

We are in the process of expanding greenhouse gas (GHG) tracking to include Scope 3 emissions, beginning with employee business travel. We measured these 2012 Scope 3 emissions at 11,000 metric tonnes of CO2e, down 8% from 2011. A decrease in employee air travel has been achieved through the increased use of videoconferencing and other technology.

We are making progress with our Scope 3 emissions assessments. Our calculations are made according to the WRI Scope 3 Accounting Standard. We will continue to use the information to prioritize our GHG emission reduction opportunities and as part of our carbon impact assessments.

See more detailed information on C02e reduction.

2009201020112012
121412, down 14% from 201011, down 8% from 2011
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Energy Use Reduction

Preserving the Planet

We are proud to announce that through the teamwork of Xerox people worldwide we have achieved and surpassed our goals for the Xerox “Energy Challenge 2012” program. In 2003, we established a program and made a public commitment to reduce greenhouse gas (GHG) emissions by joining the U.S. EPA Climate Leaders program and launching an internal program known as “Energy Challenge 2012.” We adopted a goal of reducing by 10% our absolute GHG emissions across all company operations, by 2012, from a 2002 baseline.

We met this target six years ahead of schedule and in 2007 we set a new and challenging goal to reduce our GHG emissions by 25% by 2012, from the 2002 baseline.

At the conclusion of the corporate Energy Challenge 2012 program, we successfully reduced emissions by 42%, or 210,000 tons of carbon dioxide equivalents (CO2e) while saving energy – consumption was down 33% compared with 2002.

2009201020112012
21%22%27%33%
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