Supply Chain Imperative, the How to Ensure Ethical Behavior in Your Global Suppliers - PDF

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Supply Chain Imperative, the How to Ensure Ethical Behavior in Your Global Suppliers - PDF Powered By Docstoc
                       ABOut tHiS repOrt
this report contains information regarding the supplier diversity efforts of
Southern Company and its operating companies which include Alabama power,
Georgia power, Gulf power and Mississippi power.

Supplier diversity establishes mutually beneficial business relationships with
diverse businesses. Our supplier diversity efforts help grow the communities we
serve, ensure compliance with government regulations and increase the financial
well-being of our company.

Supplier diversity adds quality and greater flexibility to our company’s supply chain.
Most importantly, supplier diversity is a critical business imperative that ensures our
company’s suppliers mirror our customer base and our workforce. Southern Company’s
continued support of supplier diversity has been recognized across the Southeast,
garnering several awards for its operating companies and their employees.

in the following pages, we highlight four businesses who exemplify our commitment
to supplier diversity and their outstanding relationships with our operating companies.
you will also find financial information outlining Southern Company’s monetary
commitment to supplier diversity. For more information on Southern Company’s
supplier diversity efforts, visit


Southern Company offers several programs to help us actively seek diverse
businesses that offer quality goods and professional services. the programs provide
suppliers with solid business opportunities to maximize participation in the
procurement process.

Mentor Program
Our mentor program helps build relationships between Southern Company
employees with buying authority and our minority and female suppliers.

Second Tier Program
Southern Company encourages prime suppliers to extend subcontracting opportunities
to diverse firms.

Dartmouth Tuck Business School
Southern Company’s commitment to its suppliers includes sponsorship in Dartmouth’s
tuck Business School. each year, a supplier is chosen to attend one of three classes
given at the school - “Growing the Minority-Owned Business to Scale,” “Building a
High performing Minority Business” or the “tuck Global leader program for Women.”
With 4.3 million customers and more than 41,000 megawatts of generating capacity,
Atlanta-based Southern Company (NySe: SO) is the premier energy company serving
the Southeast, one of America’s fastest-growing regions. A leading u.S. producer of
electricity, Southern Company owns electric utilities in four states and a growing com-
petitive generation company, as well as fiber optics and wireless communications.
Southern Company brands are known for excellent customer service, high reliability
and retail electric prices that are significantly below the national average. Southern
Company has been listed as one of the top ranking u.S. electric service providers
in customer satisfaction for eight consecutive years by the American Customer
Satisfaction index.

                            SOutHerN Style
Southern Style guides the way our more than 25,000 employees conduct business. it
encompasses our pledge to earn unquestionable trust, our dedication to superior performance,
and our total commitment to the success of everyone touched by our business. We look for
suppliers who possess the Southern Style attributes we require of all our employees.

Unquestionable Trust
Honesty, respect, fairness and integrity drive our behavior. We keep our promises, and ethical
behavior is our standard.

Superior Performance
We are dedicated to superior performance throughout our business. Our priorities are safety
first, teamwork, diversity and continuous improvement through strong leadership.

Total Commitment
We are committed to the success of our employees, customers and shareholders and to
citizenship and stewardship in all our actions.


    Southern Company is committed to the development of diverse businesses, including those that

    are small-, minority- and female-owned. through the supplier diversity program, we seek to

    establish mutually beneficial business relationships that widen the pool of suppliers of quality

    materials and services. As a result, we are helping firms contribute to the economic growth and

    prosperity of the communities our operating companies serve.

              Anthony James                                                                       Bryan Fletcher
              executive vice president, Southern Company                                          vice president,
              and president, Shared Services Group                                                Supply Chain Management

Supplier DiverSity
At Southern Company, we strongly believe that everyone should have the opportunity to experience
success and achieve his or her dreams.

With this in mind, we’ve made supplier diversity one of Southern Company’s top objectives. this means
all our suppliers are seen as vital partners in our work to meet the needs of the 21st century.
Supplier diversity is more than a program to meet goals. providing opportunities for diverse suppliers
maximizes the value of our supply chain and allows our suppliers to develop long-term relationships
with us. On a larger scale, strengthening these businesses contributes to the overall economic growth
of our communities.

Supplier diversity makes good business sense for Southern Company for a variety of reasons. But,
above all, it’s the right thing to do to give back to the communities we serve by helping local businesses
find opportunities to grow.

Raeford Land Clearing
Owner: Vickley Raeford
Location: Marietta, GA
Business: Landscaping company specializing
in construction site clean-up, small demolition
projects, detention pond clearing, dump and
trash site removal, easement clearing and
mowing, fence line and underbrush clearing,
herbicide application, right-of-way mowing,
rubbish removal, substation mowing and
light grading.

    lAND CleAriNG
Growing up in rural Mississippi gave Vickley Raeford ambition and a love for the outdoors – two things she
needed when tackling the challenge of owning her own company. As the president of Raeford Land Clearing
in Marietta, Georgia, Raeford serves as instructor, field hand and bookkeeper for her 22 employees, while
continuing to roll up her sleeves and jump in wherever she’s needed.

“There’s nothing I enjoy more than being out in the woods or on a tractor mowing around substations,”
she says pulling off a pair of work gloves. Raeford’s business specializes in brush removal and right-of-way
maintenance for clients such as Georgia Power.

Carving out her niche in a non-traditional field hasn’t been easy, but Raeford has taken advantage of every
opportunity thrown her way, including a chance to be part of Georgia Power’s Professional Development
Program and the company’s sponsorship of her in Dartmouth University’s Tuck School of Business.

“The school gave me all the tools I need to be successful as a small business,” she says, citing classes
she attended in planning a budget and on whether it was more feasible to rent or purchase equipment. “It
gave me the confidence to realize my potential and go after jobs that before I might have
thought were beyond my reach.”

Her business relationship with Georgia Power has not only
helped her grow her business, but has also benefited
Georgia Power by helping broaden the company’s
supplier base.

“Having the support of Southern Company has been a
blessing and boon to my business,”Raeford adds. “The
opportunities that have come my way have been incred-
ible. It’s given me everything I’ve needed to get out there
and sell my company. Because if I don’t do it, who else will?”

Gulf Coast Electric
Motor Service
Owner: Tico Rodriguez
Location: Pensacola, FL
Business: Electric motor services
company specializing in motor
replacement and repair,
fabrication and machine work
and work on bearings and seals,
belts, pulleys, transformers, switch-
gears, fans, blowers and pumps.

GulF COASt eleCtriC
         MOtOr ServiCe
Tico Rodriguez’s former boss was skeptical when Rodriguez said he wanted to quit and start his own business.

“You’ll never succeed,” Tico Rodriguez remembers the man telling him. An immigrant from Cuba by way of
Mexico, Tico Rodriguez had experience farming in both countries. He had no formal training in mechanics,
but after four years working in a motor shop in America, he quit and opened Gulf Coast Electric Motor Service
in a cramped garage.

More than 25 years later, his fledgling business has grown to fill more than 23,000-square-feet of space. Al-
though “retired,” the family-focused Tico Rodriguez shows up to the office every day where his three sons
– Higinio, Moises and Victor – and a grandson, continue the Rodriguez legacy, expanding his Florida-based
business to serve customers in Alabama and Mississippi.

“This job is his hobby,” Higinio and Moises Rodriguez agree. “This is his golf course. He doesn’t fish or hunt.
This is what he does.”

Tico Rodriguez smiles when he calls his business “a part of his family.”

His success, he says, comes from treating his customers as family as well, being as “up front and honest”
with his clients as he would his own sons. And his business has grown in part thanks to the interest
Southern Company has shown the supplier, based on the relationships Tico Rodriguez has forged with its

“We’ve got good relationships with everyone we’ve ever
dealt with at Southern Company,” Tico Rodriguez says.
“We need them, and they need us too.”

In fact, Victor Rodriguez has been selected to attend the
Dartmouth University Tuck School of Business as the first
student to be sponsored by Southern Company.

“We’ve grown tremendously since my dad first began,”
Victor Rodriguez says. “I’m excited about attending the Tuck School.
I’m going to try to soak up everything I can and bring some great ideas
back here to help us become even more successful.”

Vulcan Insulation Co. LLC
Owner: Sandra R. Killion
CEO: Phyllis Paramore
Location: Birmingham, AL
Business: Industrial insulation contrac-
tors, specializing in thermal insulation
and asbestos abatement.

As women who own and operate an industrial insulation company, Sandra Killion and Phyllis Paramore have
rarely felt out of their element.

When Killion established the company as woman-owned after purchasing the contracting arm of an existing
company, she wanted a woman to be the first CEO of the new business – but not just as a figurehead to
meet a quota.

“I wanted someone who was professional and not just a placeholder,” Killion says. “We needed someone
with experience who knew the industry.”

Paramore’s track record certainly fit the bill. Her extensive background in the construction field gives her first-
hand knowledge of the industry. And the things that make all small businesses successful – a proven safety
record and an ability to create strong relationships with customers – cut across gender lines.

“We place a lot of time and attention on our safety program,” Killion says. “Being female-owned and –operated
may get you in the door, but the knowledge of the industry and your commitment to customer service and
safety is what’s important, regardless of your gender.”

“What we feel makes us stand apart from similar companies is what we bring to the table. We are extremely
focused on safety, every day, and we hire the best craftsmen in the business. Those are
the services we sell,” Paramore says.

Those services and a shared commitment to safety appeal to
customers like Alabama Power, who use the company
for insulation needs in its plants, and have chosen
the company to participate in its mentoring
program. An Alabama Power employee will serve
as a mentor to Killion and Paramore and help them
set some goals and objectives for the one-year

“We want to increase our business and this is one way that
we can do that,” Paramore says. “It’s great to have this kind
of outside business support from Southern Company. It shows
they are willing to not just have vendors, but also to forge true bonds
with their suppliers.”

Commercial Interiors Inc.
Owner: Donna Heath
Location: Gulfport, MS
Business: Interior design company
specializing in commercial and
corporate interior design.

As a small business owner on the Gulf Coast, Donna Heath has encountered many situations. But nothing
prepared her for Hurricane Katrina and its aftermath.

Heath, the owner of Commercial Interiors Inc., specializes in decorating and redesigning conference
centers and corporate office space. After the storm, she was called upon to help numerous clients,
including Mississippi Power, restore their offices.

It is her company’s size, and her employees’ personal relationships with customers, that are advantages
when building relationships with clients, she says.

“The working conditions after Katrina were tough,” Heath says. “During our restoration work at Mississippi
Power’s corporate office, we found many items that were personal to employees. My employees made sure
that those things were returned back to them. We know that was important and it is our personal touch that
makes us the preferred choice over larger, restoration-oriented companies. Every client has to gain trust in
your abilities and we make sure that happens with each and every one of them.”

Heath’s relationship with Mississippi Power extends to the company’s design team, who were instrumental in
the restoration efforts. They provided restoration guidelines and assistance while also helping Heath’s company
grow through additional projects.

“Southern Company has helped me so much in my professional endeavors and, by supporting
a small business such as mine, they continually give back to the communities
they serve,” she says.

After the hurricane, Heath expanded her business to provide some residential
design services as well as home décor to meet the needs of her community.

“People here needed resources from a hometown company they could
trust so out of that necessity and the relationships we’ve made over the
years, we are able to help people as they rebuild,” she says.

pArtNeriNG WitH MiNOrity-
                                     Dollars in Millions




     in 200, Southern Company’s     $200
     total diverse spend was $450
     million. Southern Company’s

     percentage of procurement       $      0
     spend with women- and                                         2002   2003   2004 2005 2006
     minority-owned businesses in

     200 was 13 percent. Of this,
                                     total Minority expenditures
     4 percent was spent with
                                     total Female expenditures
     minority-owned businesses

     and  percent was spent with

     women-owned businesses.

                                     Supplier DiverSity expeNDitureS
                                       AS A perCeNt OF tOtAl expeNDitureS







                                                            2002      2003   2004    2005   2006


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