Ethics and Integrity

Our commitment to business ethics represents more than a declaration to do the right thing. It has become an integral part of the way we do business. In 2001, we established a Business Ethics and Compliance Program to make sure Xerox employees and all those working on behalf of the company follow the highest ethical standards. The program aims to prevent, detect and address potential violations of Xerox's Code of Business Ethics and its policies, laws and regulations.

Our efforts have been recognized outside the company. Ethisphere Magazine named Xerox one of the "World's Most Ethical Companies" for the eighth consecutive year in 2014.

Business Ethics and Compliance Program
To oversee all ethics-related activities, Xerox established a Chief Ethics Officer who reports to senior management and the Board of Directors. In addition, the Xerox Ethics and Compliance Governance Board was formed to integrate the Business Ethics and Compliance Program into worldwide business operations. The Ethics and Compliance Governance Board represents business and corporate organizations in Xerox and its subsidiaries, and participates in quarterly meetings chaired by our Business Ethics Office. Each board member has the following duties within his/her area of responsibility:

  • To establish a business ethics and compliance network;
  • to implement ethics training and education programs;
  • to ensure consistent enforcement of discipline policy;
  • to ensure that organization-specific policies are consistent with existing laws, the Xerox Code of Business Conduct and other company policies;
  • to oversee and make recommendations for changes to Xerox policies, including the Business Ethics and Compliance Office Charter;
  • to evaluate ethics and business conduct issues and trends to proactively address potential problems; and
  • to attest annually that organizational ethics and compliance programs are effective and all employees have completed required business conduct training and acknowledgements.

Code of Business Conduct
Our Code of Business Conduct serves as the foundation of our ethics and compliance program. It embodies and reinforces our commitment to integrity and helps our people resolve ethics and compliance concerns consistent with our core values and legal and policy controls. Our Code of Business Conduct is available in 15 languages and accessible on our internal and external Websites. The Code is aligned to our core values and covers policies and guidance on key topics, including sales and marketing activities, controllership, insider trading, bribery, nondiscriminatory employment practices, privacy rights, human rights and environmental stewardship. The Code also specifies employees' obligations to report suspected ethical violations and reinforces our strong "no retaliation policy."

In addition to our global Code of Business Conduct, we have a supplemental code of conduct for finance employees and a specific code of conduct for the Board of Directors. As a member of the Electronic Industry Citizenship Coalition, Xerox uses the Electronic Industry Code of Conduct (EICC) as our supplier code of conduct.

Key Components
At the start of every year, our CEO distributes a message on business ethics to all employees. All employees must complete ethics training annually and acknowledge that they have read the Code of Business Conduct. At the same time, officers and senior managers must certify that they are in compliance with our Code of Business Conduct and have processes in place to support the company's Business Ethics and Compliance Program.

We promote awareness of our ethics and compliance program on our Ethics & Policies Website and our intranet. Periodically, we send ethics surveys to employees in several countries to gauge the state of the company's ethical culture and help us focus on areas for improvement.

We provide a variety of channels for employees, suppliers and customers to report suspected ethical violations, including phone, Web, email and postal mail. Our Ethics Helpline is available globally 24 hours a day, seven days a week in multiple languages, via toll-free telephone numbers (see www.xerox.com/ethics ) and our Web reporting tool (www.xeroxethicshelpline.com), which supports multiple languages. We’ve contracted with an independent third party that specializes in helpline reporting with immediate electronic transfer of all reports to our Business Ethics and Compliance Office for case management.

For some cases, the Business Ethics and Compliance Office provides guidance and takes immediate action; for others, including allegations of wrongdoing, an ethics investigation is required. The Office follows a formal, consistent method for assessing alleged violations and complaints and directs them to the appropriate functional areas for investigation, resolution and closure. Our Business Ethics and Compliance Office Charter includes a "Worldwide Assignment of Responsibility Matrix for Handling Potential Ethics Violations and Associated Penalty Guidelines." The matrix includes a wide range of possible ethics and compliance violations within each category of our Code of Business Conduct. Ethics allegation matters that are substantiated, in whole or in part, result in some sort of disciplinary action — either counseling, training, warning letter, job reassignment, financial penalty or, in some cases, dismissal from the company. In addition to disciplinary action, resolution of many cases also may involve changes in processes or policies to prevent future occurrences.

Our Business Ethics and Compliance Office tracks all cases from initial reporting to closure. Additionally, the Office reports quarterly case activity and trends to the Business Ethics & Compliance Governance Board and the Audit Committee of the Board of Directors, including the number of matters reported, case categories, outcomes and disciplinary action.

See www.xerox.com/ethics for additional information regarding Xerox's Business Ethics and Compliance Program.

Xerox Global Business Ethics in 2014

Anti-Corruption
Xerox operates an active and comprehensive anti-bribery and anti-corruption program that complies with all related laws and regulations. We have developed a global compliance program, supported by policy and training, to ensure zero tolerance for the giving or offering of a bribe of any amount or value, including so-called “facilitation payments.” The program also includes risk assessment of third-party intermediaries, followed by the application of appropriate due diligence, training and certification prior to engagement. We are committed to enhancing the program continually.

The risk of banknote counterfeiting has increased with the quality of digital imaging tools and color printing technology. In response, we have joined other companies, the U.S. Secret Service and the Central Bank Counterfeit Deterrence Group (a consortium of 32 central banks and note printing authorities) to assess threats to currency and support the use of anti-counterfeiting technologies. Technology to deter the use of digital equipment for counterfeiting banknotes is being standardized. Xerox sales and service employees are trained to respond to inquiries about our anti-counterfeiting efforts.

Black Market Supplies
Every year, the global imaging industry — and the customers who use its products and services — suffer the loss of millions of dollars due to counterfeiting or theft of supplies. We continually remind our customers that counterfeit supplies can result in poor equipment performance, low supply yields, inferior print quality, toner leakage, increased failure rates and equipment downtime – all of which can cost time and money. To avoid this risk, we advise our customers to purchase solely from Xerox Authorized resellers. We work closely with our procurement department to call attention to “blending” of supplies – the mixing of counterfeit with original materials to achieve lower pricing and make detection of counterfeit items more difficult.

Theft of customer supplies represents an increasingly costly problem for Xerox and its customers. It is difficult to prevent because Web-based sales channels make it easy to purchase stolen products and to sell them once they are stolen. We continue to invest in technology and resources to bring the problem to the attention of customers and to identify their obligation to maintain the security of supplies (contracted and purchases). Through engagement and support of our customers and local law enforcement agencies, we also provide tracing of stolen goods to identify and close the sources of theft.

Xerox is leading the charge against counterfeiting and other black-market activities, independently and in collaboration with other original equipment manufacturers (OEMs). To combat acts of piracy and fraud, our security team routinely works with the U.S. Federal Bureau of Investigation, attorney generals' offices, the Postal Inspector's office and other global law enforcement agencies. In addition, we are a member of the Imaging Supplies Coalition (ISC), a trade association that serves to heighten customer awareness of black market activities. Wholesalers, dealers and consumers may submit questionable goods to the ISC for authentication by the manufacturer. For more information, visit www.isc-inc.org.

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Our Progress in 2013

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Xerox Global Business Ethics in 2014

For the Eighth year, Ethisphere Institute values our strong ethics.

Sustaining Business | Ethics and Integrity

Xerox was named one of Ethisphere Institute’s 2014 World’s Most Ethical Companies under the business services category. Cited for upholding the highest of ethical principles, Xerox has been included on the list since it was first published eight years ago.

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 approximately 90 percent 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.

2010201120122013
88%90%90%90%

Voice of employee survey

Evolving the Workplace

Our proprietary Voice of the Employee Survey allows managers to assess their employees' satisfaction with their job, work group, manager and Xerox as a whole.

Since 2009, we have surveyed 100% of our global population across 49 countries and in 26 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.

We received 68,500 responses to our 2013 Voice of the Employee survey. We will administer the survey again in 2015.

See more detailed information on employee satisfaction surveys.

2010201120122013
72%74%75%*73%

*In 2012, the survey was distributed to around 14,000 employees in Europe, Canada and our developing markets. All other years reflect a larger global population.

Addressing employee inquiries

Evolving the Workplace

The Sentinel Customer Satisfaction Assurance Systemtm, 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 chart below displays the number of employee inquiries we received and routed for resolution. The decline in inquiries in recent years is due to the overall resolution of systemic issues and the ability for employees to provide comments/suggestions or raise a technical issue.

2010201120122013
6,6983,2912,7452,185

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 workforce makes good business sense.

In the U.S., 53.2 percent of employees are women, and women represent 27 percent of executive and senior-level managers. Diversity reporting is not tracked in most other countries.

The chart below displays the percentage of executive and senior-level managers who were women over the past four years in the U.S.

Learn more about diversity at Xerox.

2010201120122013
23.8%25.0% 26.0% 27.2%

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 40.3 percent of employees and 12 percent of executive and senior-level managers in the U.S. Diversity reporting is not tracked in most other countries.

The chart below displays the percentage of minority employees in our U.S. workforce over the past four years.

Learn more about diversity at Xerox.

2010201120122013
37.5%37.5%39.4%40.3%

Monitoring the safety of our employees

Evolving the Workplace

The health of our business depends on the health and safety of our workforce. In 2013, an ongoing project to improve employee safety awareness and inspection of safe work practices resulted in a declining frequency of injuries.

See more detailed information on our recordable injury rates.

2010201120122013
Up 18% from 2009Down 1% from 2010Up 5% from 2011Down 3% from 2012

Preventing Injuries and Illnesses

Evolving the Workplace

The health of our business depends on the health and safety of our workforce. In 2013, an ongoing project to improve employee safety awareness and inspection of safe work practices resulted in a declining frequency of days away from work cases.

See more detailed information on work injury rates at Xerox.

2010201120122013
Up 4% from 2009Up 6% from 2010Up 13 % from 2011Down 12% from 2012

Topping the competition

Serving Customers

Xerox is the leader in equipment revenue market share*. We offer the industry's broadest portfolio of document technology and services for businesses of any size, in any industry, anywhere around the world.

*Equipment revenue (shipment value) in the hardcopy peripheral industry. Source: IDC WW Quarterly HCP Tracker, Final Historical 1Q14.

Learn more about Xerox products.

2010201120122013
#1#1#1#1

Innovating for the future

Serving Customers

Xerox was granted 1,168 U.S. patents in 2013, ranking the company as one of the world's top innovators. Our joint venture in Japan, Fuji Xerox Co. Ltd., received 800 U.S. patents. The Xerox group garnered 1,968 patents total.

Xerox and Fuji Xerox collectively invest about $1.3 billion annually in research, development and engineering.

*Total patents earned along with Fuji Xerox Group.

Learn more about innovation at Xerox.

See more information on our patent filings.

2010201120122013
1,6051,6181,9001,968

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, online, 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.

2010201120122013
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. In 2013, we further developed our new customer satisfaction process and saw positive results, both in the feedback from our customers and in the internal measures we use to assess the quality of what we are delivering to the marketplace.

Industry Analysts Recognize Xerox As A Market Leader

Serving Customers

Our commitment to our customers has gained worldwide recognition.

Xerox has been named a leader in the Gartner Magic Quadrant for Managed Print Services for six consecutive years (most recently Oct. 21, 2013) and a leader in the Gartner Magic Quadrant for Customer Management Contact Center BPO for two consecutive years (most recently Dec. 24, 2013).1

Many independent industry analysts rate Xerox services and products as leaders in multiple categories. Selected awards are displayed in the chart.

1Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner's research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.

2010201120122013
IDC: an IDC MarketScape leader for Worldwide Managed Print Services.

Quocirca: Market leader for MPS Landscape.
IDC: an IDC MarketScape leader for Worldwide Managed Print Services.

Quocirca: Market leader for MPS Landscape.

Everest Group: PEAK Matrix Assessment leader for Benefits Administration Outsourcing.
IDC: an IDC MarketScape leader for U.S. Shared, Networked MFPs for the Distributed Office; EMEA Managed Print Services.

Forrester Research, Inc.: cited as a leader in The Forrester Wave™: Managed Print Services, Q2 2012.

Quocirca: Market leader for MPS Landscape.
IDC: an IDC MarketScape leader for Worldwide Managed Print and Document Services; U.S. Smart Multifunction Peripherals.

Quocirca: Market leader for MPS Landscape.

HfS Research BluePrint: Winner's Circle for Healthcare Payer BPO Services.

Everest Group: PEAK Matrix Assessment leader for Benefits Administration Outsourcing; Contact Center Outsourcing.

NelsonHall NEAT: Leader in Benefits Administration Services.

Xerox Foundation

Caring for Communities

In 2013, more than 2,500 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
  • Employee and community affairs
  • National and cultural affairs

Learn more about the Xerox Foundation.

See more detailed information on Xerox Foundation giving.

2010201120122013
$12.5 million$13.5 million$13.5 million$13.5 million

The Xerox Community Involvement Program

Caring for Communities

The Xerox Community Involvement Program links the voluntary spirit of our employees to get involved in the communities where we live and work. Since 1974 when the program began, more than 500,000 Xerox people have been involved in regional, community-focused projects.

Learn more about the Xerox Foundation.

See more detailed information on community involvement programs.

2010201120122013
10,000 Employees

700 Projects
12,000 Employees

750 Projects
12,500 Employees

700 Projects
13,000 Employees

800 Projects

Our goal: Zero waste to landfills

Preserving the Planet

To pave the way for our ultimate goal of zero waste to landfills, we aimed to achieve a 50 percent reduction in landfill rate between 2009 and 2015. We reached this target three years early, and in 2013 we surpassed it.

See more detailed information on Xerox recycling.

2010201120122013
Down 25%
from 2009
Down 25%
from 2009
Down 50%
from 2009
Down 60%
from 2009

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. Since 2009, water consumption has decreased by 35 percent.

See more detailed information on water consumption.

2010201120122013
Down 7% from 2009Down 21% from 2009Down 35% from 2009Down 35% from 2009

Reducing greenhouse gas emissions

Preserving the Planet

Since 2009, Scope 1 (direct) and 2 (indirect) greenhouse gas emissions are down 24 percent 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.

2010201120122013
No change from 2009Down 8% from 2009Down 13% from 2009Down 24% from 2009

New products achieve the ENERGY STAR® rating

Preserving the Planet

In 2013, 100 percent of our new eligible products met the current ENERGY STAR (July 2009) requirements. We've continuously reduced power consumption of our laser-based printing products by adjusting fuser design, changing properties of toner, implementing more efficient electronic controls and improving the xerographic system as a whole.

See more detailed information on ENERGY STAR® ratings for Xerox Products.

2010201120122013
100%100%100%100%

End-of-Life Management

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 33,000 metric tons of waste from entering landfills in 2013 alone.

Learn more about the Xerox Green World Alliance.

2010201120122013
97%98%99.3%99.1%

Reducing emissions by reducing employee air travel

Preserving the Planet

Business travel plays a big role in contributing to greenhouse gas emissions. In recent years, we've promoted videoconferencing and other technology as environmentally friendly alternatives to air travel. Thanks to these efforts, we've reduced emissions due to air travel by 20 percent per employee every year since 2010.

See more detailed information on carbon dioxide equivalents (C02e).

2010201120122013
Baseline yearDown 20% per employee from 2010Down 20% per employee from 2010Down 20% per employee from 2010

Energy Use Reduction

Preserving the Planet

Following achievement of our "Energy Challenge 2012," we adopted a new goal of reducing greenhouse gas emissions by 10 percent across all company operations by 2017. In 2013, we attained a 6 percent reduction – more than half of our five-year goal.

To allow for consistent reporting, the chart below depicts achievement against the original 2002 baseline.

See more detailed information on energy use reduction.

2010201120122013
Down 21% from 2002Down 27% from 2002Down 33% from 2002Down 39% from 2002