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2011 Corporate Social Responsibility Report

EMPLOYEE HEALTH AND SAFETY

The health and safety of Lexmark employees is of paramount importance to company management. We strive to offer places of work that are free from unsafe equipment, situations and practices and monitor facilities for safety issues on an ongoing basis. All of our main locations, including Boulder, Lexington, Budapest, Cebu and Juárez have safety committees comprised of Lexmark employees. The members of these committees represent the interests of all workers.

Occupational Health and Safety Advisory Services (OHSAS) is a multidisciplinary organization with expertise in a comprehensive range of occupational health and safety skills. OHSAS 18001 is a voluntary standard that guides organizations in establishing health and safety management systems for their businesses. All Lexmark-owned and leased manufacturing facilities in Boulder, Colorado; Cebu, Philippines; Lapu-Lapu, Philippines; Lexington, KY; and Juárez, Mexico, have received OHSAS 18001 certification. To assure our facilities are ISO 14001 and OHSAS 18001 certified, Lexmark spends up to $10,000 per facility for fees related to that certification.

The effectiveness of Lexmark's Safety Program is determined by OHSAS 18001 objectives and targets as well as internal audits and top management reviews of our safety management system. These audits and reviews are conducted in conjunction with the conformance audits required as part of OHSAS recertification. We use both audits’ findings to improve our internal processes and promote best practices across our operations. Lexmark employees are involved in setting the objectives for our health and safety management systems.

All Lexmark facilities are guided by the Company’s Corporate Environmental, Health and Safety Instructions, which define the essential programs that each facility must manage in order to meet the objectives of our health and safety policies. It is mandatory to develop written programs that assure legal and regulatory compliance has been adequately addressed. Any changes to health and safety procedures are communicated to all applicable employees through bulletin boards, internal Web site postings, electronic communications, handbooks and meetings with managers.1

Lexmark has corrective and preventive-action teams that work with responsible personnel to monitor and report on progress and determine if actions are completed. Internal audit teams determine the effectiveness of actions taken to address nonconformities with the Health and Safety Management System.

All employees and contractors receive health and safety training and are encouraged to report concerns about health and safety issues. This training includes policy and is provided in stand-up classrooms, online courses and on the job, depending on which best fits the need. Training requirements are determined by health and safety program managers as well as employees' direct managers and are based on job requirements, equipment and materials used, regulations and other factors. Lexmark does not have workers who are involved in occupational activities that have a high incidence or high risk of specific diseases.

Safety performance of subcontractors is reviewed during initial contract discussions. The subcontractors must have proof that their employees are properly trained and aware of all health and safety aspects of the jobs they will perform on behalf of Lexmark.

Compliance and safety teams conduct audits and inspections on a regular basis with all aspects of the health and safety management systems covered in these activities. Findings are documented, entered into the corrective and preventive action system and tracked to ensure actions are completed in a timely fashion. Follow-up inspections verify completion and effectiveness of the actions taken. Best-practice measures are then implemented in other areas or sites.

Each Lexmark manufacturing and development facility is required to maintain an emergency preparedness plan as well as an emergency response team. One feature of emergency preparedness training is an icon on Lexmark's internal Web site that will play audio of the different tones of a fire alarm and a tornado warning.

  1. Lexmark employees are not represented by unions; therefore, there are no formal work agreements in which health and safety is addressed.