R. David Hoover, chairman, president and chief executive officer, discusses the relevance of sustainability to Ball Corporation and its strategy in a letter published in the sustainability report. He considers sustainability to be a systematic way to create economic, environmental, and social value. Ball Corporation, in business for 128 years, has been engaged in sustainable development for many years but has committed to the process in a more formal way by publishing its first sustainability report. In the past, the company reduced the amount of material used in its products; reduced its energy consumption, emissions, and waste; increased its use of recycled materials; and promoted recycling programs. In addition, Ball Corporation has created products that provide more environmentally friendly packaging than its existing packages. Its work in the aerospace industry has resulted in the production of satellites and instruments that monitor climate change on Earth. The company’s first sustainability report allows it to establish a baseline against which it can measure performance and progress. Ball Corporation’s goals and challenges were derived internally and in consultation with its stakeholders. The main focus of its sustainability effort is on Ball Corporation’s own production along with all those in the packaging supply chain. The sustainability report is a way to address sustainability of packaging and how the company can work toward sustainable development with its own products and processes.

Ball Corporation reveals that it faces challenges and associated opportunities in metal usage and recycling, plastics usage and recycling, energy consumption, water consumption, sustainability packaging, climate change and carbon footprint, sustainability related legislation, and demographic changes. The report presents these challenges and opportunities in each topic area.

In its metal usage and recycling, one of the challenges is to reduce the weight of the cans that are already near-optimum limits. Another challenge is to increase recycling and to develop recycling systems in foreign locations where these systems are not available. The opportunities will enable the organization to save material costs, lower its carbon footprint, lower its supply chain costs, meet the needs of its customers and consumers, and improve its reputation.

In the plastic use and recycling, Ball Corporation faces challenges related to the production of plastic bottles. One of its main concerns is the increasing pressure to reduce petroleum-based water bottles. Costs to produce bottles are increasing and fewer bottles are being recycled. The trend by consumers has been to discard the bottles rather than to recycle them. Opportunities for the company in this area are to reduce the content of plastic in the bottles produced and to make them lighter in weight. This action would lower the company’s dependence on petroleum, save costs, raise competitiveness, and address customer and consumer needs.

Energy consumption is a challenge because of increasing energy costs. A major concern is finding the most efficient methods to reduce energy use. A related challenge that the company confronts is the substantial capital investment required for energy saving initiatives. However, these efforts would provide the company with cost savings and would reduce its greenhouse gas (GHG) emissions.

Water consumption reduction is challenge because it is likely to result in an increase in the application of cleaning chemicals. The opportunity to reduce water consumption can reduce costs. Alternatives to water use in the production process will reduce the company’s dependence on a scarce resource.

The manufacture of sustainable packaging presents a risk and an opportunity to Ball Corporation. Because of changes in retailer and consumer demands for packaging, the change in preferences could lead to a loss in market share. At the same time the company has the opportunity to showcase the environmental benefits of their packages such as the recycled content, recyclability, and reduced weight.

The effects of climate change and the company’s carbon footprint present a challenge for the company in how the public and government perceive the company’s role. Ball Corporation views this as an opportunity to illustrate the environmental attributes of their packages and to improve the collection of their packages and to recycle them.

Sustainability-related legislation is perceived to be a risk if it results in irrational packaging laws that will affect stable or increasing markets. The loss of market share for Ball Corporation is a risk of such legislation. Ball Corporation could turn this into an opportunity to influence packaging laws that are based on sound scientific ideas. This may in turn increase its market share.

Demographic changes may affect the pool of qualified applicants for positions in the company. If qualified applicants cannot be found, there is a risk of having lower qualified employees. The company sees these challenges as the opportunity to maintain a high level of expertise among employees, increase diversity in the work place, and increase conversations with workers of different cultures and generations.

Ball Corporation

The main divisions of Ball Corporation are Ball Metal Beverage Packaging (Americas and Asia), Ball Aerospace & Technologies Corporation, Ball Packaging Europe, Ball Metal Food & Household Products Packaging Division (Americas), and Ball Plastic Packaging Division (Americas). Their joint ventures that are in the United States, Brazil, and China are treated as equity investments. The one in the United States is the Rocky Mountain Metal Container LLC in Golden, Colorado. It is a 50/50 joint venture between Ball Corporation and Coors Brewing Company. Another 50/50 joint venture, Latapack-Ball Embalagens Ltd. in Brazil, manufactures aluminum cans and can ends. The joint venture in China is a minority interest position in two plants (Sanshui and Qingdao) that also manufacture aluminum cans and ends.

Ball Corporation’s headquarters location is Broomfield, Colorado.

Ball Corporation operates production facilities in 11 countries. These countries are the United States, Canada, Germany, the United Kingdom, France, the Netherlands, Poland, Serbia, Brazil, Argentina, and China.

Ball Corporation is incorporated in the state of Indiana in the United States as a publicly traded company. Its stock is listed on the New York Stock Exchange under the ticker symbol BLL. Institutional shareholders hold more than 81% of Ball Corporation’s stock while individual shareholders own about 10%. Ball Corporation directors and employees, primarily through the company’s compensation and benefit plans, own the remainder.

Ball Corporation discloses a sample of its awards for performance, innovation, environmental management, and other awards. Table A-4 lists one example from each of their operating regions.

Calendar year 2006–2007

None

Ball Corporation plans to publish the next report in 2010.

Ball Corporation reports that it plans to use its sustainability report as a means to determine what topics are important to its stakeholders. The company requested that specific representatives of customers, regulators, employees, and other groups evaluate the first drafts of the report. Multiple meetings with these groups in the United States and Europe over a 4-month period revealed a number of concerns that had not been addressed in the report. For example, the company learned that although it had presented a comprehensive set of issues, it needed to determine more specific goals for the future. According to stakeholders, the report had not communicated clearly how Ball Corporation viewed sustainability and how it intended to achieve it. The results of this dialogue with stakeholders were major revisions to the report and the opening of future collaborations with stakeholders for future reports.

Ball Corporation identifies its stakeholders as employees, customers, suppliers, investors, unions and work councils, shareholders, media, policy makers, regulators, nongovernmental organizations, industry associations, and local communities.

The company declares that it is applying the GRI Reporting Framework at Application Level B.

Ball Corporation used the Technical Protocol reporting boundaries of the GRI Reporting Framework to prepare the report. The report includes operations owned by Ball Corporation and its joint ventures (Ball Corporation as majority owner).

The economic, environmental, and health and safety components of the report are the only ones that include Ball Corporation’s Argentina locations. These locations had not been fully integrated into the operations because they were acquired in 2006.

The report covers all Ball Corporation-owned operations and joint ventures where they hold majority interest.

Ball Corporation collected its report information from the available data in its majority-owned operations.

Not applicable because this is the first report.

Not applicable because this is the first report.

This is presented in the body of the sustainability report.

Ball Corporation did not have an external third party conduct an assurance report. Instead, the company selected groups of major stakeholders to evaluate the report. Six separate report meetings (two customer meetings, two employee meetings, one Colorado Environmental Leadership and the Colorado Department of Health and the Environment meeting, and one Sustainable Packaging Coalition meeting) were held. Selected stakeholder groups reviewed the content and submitted comments. After discussing the comments, the company responded and revised their report.

Ball Corporation has four high-level committees—audit, human resources, nominating and corporate governance, and finance. The composition and mandate of these committees are described on the company’s Web site: http://phx.corporateir.net/phoenix.zhtml?c=115234&p=irol-govCommComp.

There are ten members of the board of directors. Nine members of the board of directors elected R. David Hoover to the position of chairman of the board. He holds also the titles of president and chief executive officer. The report states that his 40 years of experience with Ball Corporation in the packaging industry make him appropriate for the job.

Nine of 10 board members are independent or nonexecutive members. Ball Corporation follows the independence requirements of the Listing Company Manual of the NYSE.

Communications with the board, its individual directors, or its committees may be sent in writing to the corporate secretary or the chairman of the board. The address for mailing is the Corporate Secretary, Ball Corporation, P.O. Box 5000, Broomfield, Colorado 80038-5000 or by fax to 303-460-2127.

Ball Corporation’s executives are rewarded on performance. Base salary, annual economic value-added incentive compensation, long-term incentive compensation (cash and equity), and benefits make up the total target compensation. The largest component of executive pay is based on shareholder returns, along with corporate, operating unit, and individual economic value-added performance (both in the short and long-term). The portion of executive pay that is based on economic value added targeted performance is between 75% and 80% of the performance-based award. The company has not used social or environmental performance to determine compensation.

To address this disclosure, Ball Corporation’s report refers to its handbook on business ethics. In this handbook, specific conflicts of interest situations are described. These include being the owner of an organization that engages in business with Ball Corporation and having influence over Ball Corporation’s decision to conduct business with the organization. Association with a competitor as a consultant, employee, substantial shareholder, or control group constitutes a conflict of interest. Being an employee of another company is also considered a conflict. A conflict exists if the integrity or reputation of Ball Corporation is affected negatively by a relationship with an outside customer, supplier, or other company. It is improper to use the corporation’s confidential information for the personal benefit of employees, their friends, or their relatives. Federal laws must be followed in the employment of former government employees. This includes military and civil service workers.

The Nominating/Corporate Governance Committee helps the board determine who is qualified to become a board member. This committee uses specific standards for assessing the qualifications of nominees and recommends nominees to be the presented at the annual shareholders’ meeting.

The documents listed below apply to the entire corporation.

“Our Core Values” forms the basis for its sustainability strategy. “Business Ethics Handbook” is intended to prevent corruption and bribery. “Code of Conduct” lists the rules regarding responsibilities and appropriate practices for Ball Corporation employees. The “Environmental Policy” specifies the company’s commitment to decreasing its effect on the environment. “Child and Forced Labor” presents its policy regarding age limits for employment and forced labor.

In 2007, the Nominating/Corporate Governance Committee assumed responsibility for the sustainability practices of Ball Corporation. The report references the committee charters for the details at the following Web site: http://phx.corporate-ir.net/phoenix.zhtml?c=115234&p=irol-govHighlights

Ball Corporation did not evaluate the board in this regard for the period covered by the report.

The company supports the application of this approach in their risk management. This involves assessing their products and processes for potential negative effects. The report lists several examples of these efforts such as reducing the weight of packaging products, increasing recycling, reducing energy consumption and carbon dioxide (CO₂) emissions, reducing water consumption, and controlling health and safety risks in the supply chain.

Ball Corporation is a member of many associations and advocacy organizations on local, regional, national and international levels. One example from each region is listed in Table A-6 for illustration.

Depending on the relationship with stakeholders, Ball Corporation uses different methods to engage them.

Customers—The company is in contact with their customers every day in one way or another through sales, marketing, plant and quality personnel, top-to-top meetings, and general strategy and best practice sharing networks. Discussions cover quality, performance, contracts, logistics, innovations, and raw material projections.

Employees—On an individual basis, direct supervisors perform annual reviews with employees. For group-wide engagement, senior management conducts town hall meetings at corporate offices (and teleconferenced to other sites). Employees can submit questions to top management in this forum. In addition, management information bulletins, company intranet, and an employee magazine are used to engage employees.

Trade unions—Ball Corporation states that their relationship with trade unions in all regions is very good. The plant managers and union representatives have contact on a regular basis to discuss medical benefits, retiree health plans, and pensions. Twenty plants in Ball Packaging in North American are considered bargaining unit members. Discussions do not usually reach arbitration, and the last strike was 10 years ago at a newly acquired facility.

Shareholders—Shareholders are given information through the Annual Report and Form 10-K, news releases, the company’s Web site (http://www.ball.com), and quarterly earnings conference calls.

Investors—Institutional investors are contacted for regular discussions with the director, investor relations, and senior management. Company executives also make visits to institutional shareholders. Live Web casts (at http://www.ball.com) of conference calls are used for discussing quarterly earnings. Annual Report and Form 10-K provides information about strategy and performance.

Suppliers—Regular contact is made with major suppliers on a wide variety of issues. In 2008, Ball Corporation began a process to systematically discuss sustainability with their suppliers.

Communities—Ball Corporation communicates with the communities where they operate by plant tours, open houses, charitable contributions, employee volunteers, and cooperation with local governments.

Government and regulators—Ball Corporation monitors and keeps involved in public policy discussions in areas that will affect the regulation of their products. For example, in 2002 Germany imposed a deposit on one-way beverage cans. The result was a drastically reduced market for cans.

Ball Corporation refers to the information in section regarding how stakeholders are engaged in this document.

Ball Corporation refers to the information in section regarding how stakeholders are engaged in this document.

Ball Corporation refers to the information in the section regarding how stakeholders are engaged in this document.

Risk—More government intervention is expected. This development will cause an increase in operational and compliance costs.

Opportunity—The company has more incentive to decrease energy use.

Risk—Prices for essential raw materials, water, and energy are expected to rise.

Opportunity—There is an increased incentive to support recycling of metal and plastic packaging products. There are increased opportunities to decrease water and energy consumption.

Risk—Insurance costs will increase because of increased management risks.

Opportunity—The aerospace unit could generate more revenues and opportunities by studying changing weather patterns.

Risk—Consumer preferences for packaging (metal, plastic, and glass) could shift.

Opportunities—This increases the incentive to increase the use of renewable energy, develop new sustainable packages, and support customer’s sustainability initiatives.

The company pension plans include substantially all U.S., Canadian, and European employees that qualify. North American hourly employees are entitled to benefits based on fixed rates for each year of service. In Germany and the United Kingdom, pension benefits are based on employee (salaried and hourly) compensation and years of service. Ball Corporation keeps book reserves for its German pension funds although the usual practice for German corporations is to cover pension liabilities by unfunded book provisions. The annual additions to the reserves are usually tax deductible. The company’s policy is to fund the plans (except for German plans) on a current basis up to amounts that satisfy legal funding requirements and are legally tax deductible. The pension assets under Ball Corporation’s control as of December 31, 2007, had a fair market value of $1,068.7 million ($395.9 million were unfunded). The majority of the unfunded plans were German ($328.5 million). The company’s financial statement footnotes were referenced for further information. The defined benefit pension obligations in France and Austria were described as immaterial. U.S. employees have the opportunity to have a 401(k) savings plan that Ball Corporation matches up to a certain portion of employees’ contributions.

Ball Corporation lists four material locations and compares the wages paid to minimum wages at the four locations—North American Packaging, Ball Packaging Europe, Ball Asia Pacific Ltd., and Ball Aerospace & Technology Corporation.

North American Packaging: The standard entry-level wage of all divisions is greater than local minimum wage by at least 64%.

Ball Packaging Europe: The standard pay custom in Europe is to pay employees an amount equivalent to wages in the local markets where the company operates. In all the unionized facilities, the lowest job classes have salary pay agreements that are above minimum wage levels (required by law). In nonunionized plants in Serbia and Poland, Ball Corporation has company pay schemes, which provide an average payment for each job class between the median and third quartile of the market. Various regional differences occur because minimum wage varies by location.

Ball Asia Pacific Ltd.: All subsidiaries pay above local minimum wage by 3% to 34%.

Ball Aerospace & Technologies Corporation: The standard entry-level wage is at least 82% above the local minimum wage.

Many of Ball Corporation’s raw materials cannot be purchased locally because the materials are produced in just a few places around the world. For metal packaging, these materials are aluminum and tinplate. For plastic packaging, polyethylene terephthalate (PET), high-density polyethylene (HDPE), and polypropylene resins are the raw materials.

Ball Corporation works with vendors and suppliers in many of the local communities. In this effort, the company has two dedicated programs that support minority subcontractors. These are the Small Business Program in Aerospace and the Supplier Diversity Program for the North American Packaging businesses. The company reports expenditures and percent of total expenditures for these groups. Tables A-10 and A-11 show dollars spent with small businesses and small disadvantaged businesses.

Ball Corporation states that it seeks the best candidates for its jobs. In an attempt to find candidates in local communities, the company advertises in local venues. Their experience has been that the best candidates are obtained by online advertisements and come from outside the local community. The company reported its success with hiring senior managers from local communities. Local is defined as both external and internal hires that do not need to be moved. Table A-12 shows how often Ball Corporation hires senior management locally.

Not Reported

Not Reported

Ball Corporation reports that in North America, aluminum cans collection is 52%. The cans contain on average 41% of postconsumer recycled material. Steel cans collection is a 63% and contains on average 22% of postconsumer recycled material. In Europe, the recycling rate for aluminum cans is 58% and rate for steel cans is 66%. Aluminum cans are manufactured from aluminum produced with 50% recycled material. Steel cans are made from steel produced with 56% recycled material. In China, the recycling rate of aluminum cans is estimated to be 90%. In 2006, the United States PET bottles were recycled at a rate of 24%. The company uses an average of 5% recycled PET.

To conserve energy, Ball Corporation invested in 60 energy reduction projects between 2005 and 2006 in its packaging operations in North American and Europe. The result was a decrease of 590,000 gigajoules or the equivalent of 18,000 autos taken off the road yearly.

Strengthen Environmental Management Systems

Ball Corporation reports that one last European plant will be certified to the ISO 14001 standard in 2008. By 2010 any plants not already certified in North American Packaging and in China Implement will be certified.

Increase Energy Efficiency; Reduce Greenhouse Gas Emissions

The company plans to reduce GHG emissions globally by 16% in 10 years from its 2002 levels. By 2010, it plans to have completed implementing its energy management system in its European plants.

Reduce Pollutant Emissions and Optimize Resource Use

The company states its intention to formalize a plan to further reduce global volatile organic compounds emissions by 2010. A more efficient coating process will be installed in 2008 to reduce hazardous waste by 150,000 pounds in North American food and household products packaging plants. A survey of all North American Packaging plants is planned to establish the type and quantity of waste produced and to direct waste streams into recycling streams by 2009. Water use will be analyzed in packaging facilities to detect inefficiencies by 2009. In the aerospace division, the company plans to evaluate the suitability of recycling isopropyl alcohol to be used as a product in the printing industry.

Not Reported

Ball North American Packaging hired a consultant to assess which water sources were affected by water withdrawal in the packaging facilities. The results indicated that there was no effect from Ball North American Packaging’s activities.

Not Reported

Not Reported

Not Reported

Not Reported

Not Reported

CO₂ is the main source of Ball Corporation’s GHG emission. Most of these CO₂ emissions come from the burning of natural gas in curing ovens. Indirect CO₂ emissions are produced in the generation of electricity within the business to power mechanical operations. For its corporate-wide emissions, the company uses the Climate Leaders GHG Inventory Guidance. The standard for this guidance comes from GHG Protocol Corporate Accounting and Reporting Standard developed by the World Resources Institute and the World Business Council for Sustainable Development.

Not reported

Between 2005 and 2007, Ball Corporation improved its global energy efficiency by 7%. This reduced its CO₂ emissions by the same amount relative to its production. In Europe, chilled water systems were replaced with standardized cooling towers and small decentralized chillers. The cost of the investment 650,000 euros resulted in a total savings in electricity of 14 million kilowatt hours (Mio. KWh) per year. This annual savings is equivalent to 7,000 tons of CO₂.

Ball Corporation states that the ozone depleting substances released by its facilities are immaterial and are not tracked. Electrical part cleaners or Freon from air-conditioning systems are the substances in use and are small in quantity.

Ball Corporation’s ozone depleting substances and amounts are listed in Table A-19.

• The organization should report its total water discharge by quality and destination (core indicator).

Ball Corporation reports that 90% of its total water withdrawal results in water discharge. The company measures on a regular basis the total amount of pollutants discharged from its facilities North America and Europe. Biological Oxygen Demand (BOD) is reported for 3 years. BOD, a measure of water quality, determines how quickly biological organisms use oxygen in a body of water. Pristine rivers have a BOD below 1 mg/l while efficiently treated sewage from a municipality is about 20 mg/l.

The measure of dry weight particles, total suspended solids (TSS), represents the weight of particles trapped by a filter with a specified pore size. It is a measure of the quantity of solids in the water. To treat certain solid pollutants such as aluminum (Al), manganese (Mn), fluorine (F), phosphorus (P), oils, or caustic water, aluminum can plants pretreat wastewater solids before discharging the water to a publicly owned treatment works (POTW). Table A-20 displays Ball Corporation’s water quality discharge.

Ball Corporation reports that the year 2007 will be used as a basis for monitoring waste data because data from the prior years are incomplete.

Fuel blending is a process that takes used industrial materials and blends them together to create fuel. This fuel is used as an alternative to virgin fuels. For example, spent paints, coatings, solvents, oils, and greases can be blended for this purpose.

Wastewater treatment (WWT) is a process that treats water used in the manufacturing process to meet discharge standards. Ball Corporation’s process involves oil removal and separation, pH adjustment, and metals removal. Once the water meets the company’s standards, it is discharged to the local sewer system.

Ball Corporation has replaced its solvent-based cleaning processes with aqueous processes in order to reduce its environmental impact. The company has stopped using toxic organic compounds.

The company recycles all the metals and plastics scrap created from its manufacturing operations. These values are not in the totals.

Ball Corporation’s primary materials used consist of solid substrates (aluminum, steel, plastics, or resins), lubricants, water, and solvent-based coatings and solvents. To reduce the chances of spills, bulk deliveries are made when possible for most of the company’s materials. The company reports that it has installed procedures and engineered controls to prevent or mitigate any spills.

Not Reported

Not Reported

Not Reported

Not Reported

Not Reported

Not Reported

Not Reported

Ball Corporations reports that the values are averages for the years presented and that it does not have many part-time or temporary workers. Employee totals are presented in Table A-24.

Ball Corporation reports that none of its worldwide businesses hires a significant number of temporary or part-time workers. In North America, the full-time benefits are paid holidays, vacation, and sick leave. Insurance coverage includes medical and dental, COBRA, life, accident death and dismemberment, long-term disability, travel, worker’s compensation, and salary continuation. Other benefits are matching gifts, flexible spending accounts, 401(k) Employee Stock Purchase Plan, education assistance, J. W. Fisher Scholarship for eligible employee children, service awards, severance pay, pension plan, and retiree medical benefits.

At Ball Packaging Europe, the benefits differ by country. The company’s approach is to offer benefits that are, at a minimum, on par with the market in these countries. Some amount of all employees’ salaries is based on an incentive plan. Financial performance is the basis for management incentives. Financial and operational performance forms the basis for nonmanagement employees’ incentive plan. Pension plans can be different for full-time and part-time workers. Some plans have a length of employment requirement before employee eligibility is allowed.

Ball Asia Pacific Ltd. provides benefits to its regular employees. These benefits are meal allowance, production incentive, housing fund, birthday gift, single-child gift, marriage gift, funeral allowance, union fee, and participation in union-organized recreation.

North America

In North America, Ball Corporation complies with the federal WARN Act that requires a minimum 60-day notice for impending layoffs. If state laws or regulations apply, the company complies with them. When possible, the company makes earlier notification. In some instances, collective bargaining agreements require a minimum 90-day notice period. The WARN Act is U.S. law and does not apply in Canada; Ball Corporation follows Canadian laws for operations in Canada.

Ball Packaging Europe

Notice periods apply to nonmanagement and are resolved in collective agreements. In Germany, the minimum notice periods vary from four weeks to seven months and are based on seniority. In France, notice periods vary from two months to one year and depend on work categories. In the Netherlands, notice periods vary from one to two months depending on work category. In the United Kingdom, minimum notice periods vary from 30 days to 12 weeks and are based on the reasons for the changes. In Serbia, minimum notice periods vary from one to three months depending on work category. In Poland, notice periods can vary from three days to three months and are based on worker seniority.

Ball Asia Pacific Ltd

Although it is not legally required, the company usually provides 30-days advance notice for material operational changes.

Ball Corporation reports that 3.5% of the global workforce is represented in formal joint management and worker health and safety committees.

All of Ball Corporation’s facilities have employees that are trained regarding influenza pandemic planning and blood-borne pathogens handling to prevent the spread of hepatitis, HIV, and AIDS. The company provides training for employees. The training covers prevention and emergency response and clean-up actions for affected workers.

Ball Corporation’s formal agreements with trade unions include topics such as first aid facilities, employee committees, and safety gear.

Ball Corporation has not tracked training hours across the company but has plans for tracking in the future. Employees are required to take training at the beginning of their employment and throughout their tenure at the company.

Ball Corporation lists examples of their mandatory and voluntary training programs by region.

North American Packaging

Ball Corporation provides Fundamentals of Leadership and Advanced Leadership training, online courses for all employees, tuition reimbursement for degree-related programs, and succession planning.

Ball Packaging Europe

In Europe, the company provides training in Fundamentals of Leadership, Advanced Leadership, and English language. It has an Employee Development Process (EDP) to investigate annual training and development needs of employees at the management level. Performance reviews are conducted annually for all employees. Numerous online courses are available to all employees.

Ball Asia Pacific Ltd.

The company sponsors a program for employees to provide the incentive for participation in external job-related programs. These programs include English Skills, Labor Relations, ISO 9001 Internal Auditor, and Supervisory Skills. In addition, internal training courses are provided for job enhancement, job skills, and safety awareness—forklift operation, fire prevention, and standard operating procedures.

Ball Aerospace & Technologies Corp.

All new managers and supervisors are required to have an initial 24-hour “Foundations of Ball Aerospace Management” course. In addition, the company provides a 24-hour course to help leaders communicate and work together to achieve results. There are numerous online courses available for all employees. There is a college education assistance program for employees to obtain undergraduate and graduate degrees. Training budgets are available for external seminars and workshops to improve job skills.

Ball Corporation notes its collective bargaining agreements preclude the company from engaging in performance reviews for hourly workers in union plants. The numbers in Table A-30 represent the percentages of eligible workers among salary and nonunion hourly workers that receive regular reviews.

Ball Corporation stated that it had three material investment agreements that fit this category. Two of them dated in 2006 put the company in ownership in another business. Both investment agreements contain provisions for complying with laws in general and dealing with labor relations. The third investment did not contain a specific human rights clause, but it did indicate that Ball Corporation’s terms and conditions of expectations of performance with regard to the Fair Labor Standards Act and the Equal Employment Opportunity Commission did apply. The same terms and conditions apply to all the company’s purchases. In addition, Ball Corporation’s key operating subsidiaries have contracts with contractors that account for around one-third of Ball Corporation’s total revenue. These contracts have a basic human rights clause.

Ball Corporation produces all its products in-house and does not outsource. The company states that it does not undergo screening on human rights because of long-term relationships with many major suppliers.

Not Reported

Ball Corporation reports incidents of discrimination and the action taken by its four regional groups.

North American Packaging

In 2007, eight formal Equal Employment Opportunity (EEOC) charges were filed. Three charges were still open, two charges were closed, and three persons issued a right to sue. Among the three that issued a right to sue, one person filed a private lawsuit.

Ball Packaging Europe

One discrimination charge was filed against Ball Packaging Europe. The charge was proven and settled. The case involved a woman who left the Rugby, United Kingdom, plant, and later discovered that a man was hired as her replacement with a higher salary. The Ball Packaging Europe settled for an insignificant amount.

Ball Asia Pacific Ltd.

Ball Asia Pacific Ltd. reported that it had no incidents or records of discrimination.

Ball Aerospace & Technologies Corp.

In 2007, one formal EEOC charge was filed against Ball Aerospace & Technologies Corp. The charge was dismissed after no probable cause was found. No private lawsuit was filed.

Ball Corporation reports that it does not have risks in this area. The company trains its managers, supervisors, and workers to support of the right to freedom of association and collective bargaining.

Ball Corporation’s corporate policy forbids child and forced labor. The company reports that none of its operations is at risk. Its approach is to pay careful attention to these issues with its global policies and programs along with regular audits. At the Ball Asia Pacific Ltd. office, management and third-party professional bodies collaborate to launch Corporate Social Responsibility audits for customers.

Ball Corporation refers to its discussion about child labor.

Not Reported

Ball Corporation reports that it had no incidents or violations of the rights of indigenous people.

Ball Corporation reports that its impact on communities is through employment, local philanthropy, and environmental effects.

The company’s impact on communities can be found in its employment opportunities. Ball Corporation states that it provides competitive compensation and benefits packages to employees and opportunities for personal and career advancement. Tuition reimbursement and succession development plans are part of the career development offered. The company perceives that this is a successful approach that attracts and retains skilled employees.

Employees give to their communities by contributing in multiple ways to causes in local communities and volunteering for many organizations. In Europe, social commitment of 5,000 euros annually per facility is budgeted. In 2006 and 2007 activities included initiating projects for medical treatment, cleaning public places and parks, and supporting two Indian schools damaged by a tsunami in 2004. In the United States in 2007, Ball Corporation and its employees donated $312,000 through its matching gifts program to eligible colleges, universities, and other institutions of higher learning. Nonprofit organizations in North America were given nearly $800,000 in 2006–2007 through the company’s matching gifts program. The United Way received over $900,000 from corporate and packaging employees in Colorado. The company on a dollar for dollar basis matched this sum in 2006–2007. In Colorado, Ball Corporation employees volunteer to rebuild homes, staff local food banks, and facilitate Junior Achievement (nonprofit organization teaching business practices to elementary, middle, and high school students) in its goals.

Ball Corporation reports that all of its business units are evaluated regularly for corruption related risks. This includes domestic and foreign units. In its U.S. units, the law and internal audit departments assess the units’ risks. To maintain compliance with the Foreign Corrupt Practices Act, internal auditors and a third-party auditing firm regularly audit the company’s international units.

All domestic and foreign employees receive material regarding Ball Corporation’s anticorruption policies and procedures. At the start of their employment, all employees certify that they have read, understood, and will follow Ball Corporation’s Antitrust Guidelines, Antiboycott Compliance, and Foreign Corrupt Practices policies. Managers and employees with higher rank must recertify that they regularly comply with this policy. The percentages of these employees that recertified this action were 22% in 2005, 31% in 2006, and 21% in 2007. The company distributes to all employees its updated Business Ethics Booklet along with a reminder to reacquaint themselves with materials.

Ball Corporation provides a telephone number that employees are encouraged to call with perceived violations of any laws or internal policies.

In 2005, two possible occurrences of corruption were reported and investigated by the law department. Both occurrences were resolved, and no additional action was taken. In 2006, six possible occurrences of corruption were reported. After thorough investigation, it was determined that two required no additional action. Four reports resulted in the termination of three employees and formal reprimand of a fourth. In 2007, there were four reports of possible occurrences of corruption. After a thorough investigation by the law department, three cases ended in formal disciplinary action.

Ball Corporation disclosed that it participates in public policy development and lobbying by being a member of different organizations such as the National Association of Manufacturing and the Can Manufacturers Institute. In addition, the company’s environmental health and safety department engages with different regulatory boards and commissions. The company corresponds with legislators on policy or legislation recommendations.

Ball Corporation reported that it has a political action committee (PAC) that donates financially to United States candidates running for federal offices. The PAC donated $11,000 in 2005, $73,600 in 2006, and $18,896 in 2007.

Ball Corporation reports that it has not been involved in any legal actions within the reporting period involving anticompetitive behavior, antitrust practices, or monopoly practices. This includes both domestic and international operations.

Ball Corporation reported that it had no material administrative or judicial fines or sanctions levied against it for not complying with laws and regulations. This includes its domestic and international operations.

Ball Corporation reports that it adheres to procedures and test protocols for materials used to produce its containers.

Before the company receives any of its raw materials, it requires regulatory compliance documents and certified data that confirm the status of the raw material compliance with the various regulatory requirements. These regulations are from the U.S. Food and Drug Administration (FDA) regulations, the European Union’s health and consumer protection laws, General Administration of Quality Supervision, Inspection and Quarantine of the Peoples Republic China regulations, and Health Canada standards.

In its commercial production of its products, the company conducts constant testing to ensure that the products meet end use requirements. Ball Corporation studies on a continual basis the food and beverages that are packaged by its containers in order to use the appropriate materials. The packaged product is also tested before it reaches the public market. This involves organoleptic (taste, smell, color) testing and shelf life studies ensure the integrity of the product.

Ball Corporation reported that it had no incidents of noncompliance during the reporting period, either domestically or internationally, related to the health and safety of its products and services during their life cycle.

Ball Corporation makes products that are not sold directly to the general public. Consumer goods companies purchase its packaging products. The consumer companies decide what product information and labeling are necessary for the end user. In addition, Ball Aerospace provides advanced-technology products for governmental and commercial users.

Ball Corporation has not had any incidents of noncompliance within the reporting period, either domestically or internationally, with regard to regulations and voluntary product and service information and labeling.

In 2007, Ball Corporation conducted its latest customer satisfaction survey. The results indicated that the company scored 85.3 on the Customer Satisfaction Index (CSI). This index shows how well an organization is addressing its needs and expectations. In addition, more than 76% of customers in the 20 countries that Ball Corporation does business in responded that their needs were met completely or nearly completely. The company conducted surveys in China in 2005, 2006, and 2007. The company reported that China survey responses indicated high customer satisfaction.

Ball Corporation does not have any specific programs for adherence to laws, standards, and voluntary codes related to marketing communications. The company reports that this issue is addressed in its policy for business ethics.

Ball Corporation reported that it did not have any incidents of noncompliance during the reporting period either in its domestic or international operations.

Ball Corporation reported that it had not received any substantiated complaints during the reporting period.

Ball Corporation reported that it had not had any administrative or judicial sanctions levied against it within the reporting period, either in its domestic or international operations.