tyson foods 2007 Sustainability Report

sustainability It’s In our nature

Tyson Foods, Inc. 2007 susTaInabIlITy RepoRT

TABLE OF CONTENTS

From our ceo . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
about This Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Maintaining a proud Workplace . . . . . . . . . . . . . . . . . . 9
• ethics and Governance: doing What’s Right
• people: Respecting our Team Members
building Trust every day . . . . . . . . . . . . . . . . . . . . . . . . . 21
• Food safety: Maintaining consumer Trust
• animal Well-being: Treating animals Right
• environmental, Health, and safety: Making a difference
• International: sharing with the World
creating Meaningful change . . . . . . . . . . . . . . . . . . . . 45
• Research and development: Focusing on the Future
• shareholders: creating long-Term shareholder Value
• supply chain: partnering with suppliers
• community: Touching lives and Meeting needs
contact Information . . . . . . . . . . . . . . . . . . . . . . . . . . . 63

Sustainability Mission Statement
“Tyson Foods, Inc., recognizes the importance of being a responsible corporate citizen. Our Core Values –
which define who we are, what we do, and how we do it – are the foundation of corporate sustainability at
Tyson. We are committed to making our company sustainable – economically, environmentally, and socially.
Our progress in this endeavor will be measured by how we develop and market our products, how we care for
the animals, land, and environment entrusted to us, and how we treat people, including our Team Members,
consumers, suppliers, and the communities in which we live and operate.”
John Tyson
Chairman, Tyson Foods, Inc.

From Our CEO
use by 15 percent. To ensure continual
There are many different definitions of sustainability.
improvement, during fiscal year 2008, we will
Some say it means “meeting the needs of the
establish and begin implementing initiatives
present without compromising the future.” Others
for improving our water conservation efforts.
say it is “extending the Golden Rule through
time,” or “leaving the world better than you • Our new Tyson Renewable Products unit is
found it.” I believe sustainability is simply doing pursuing ways to convert by-products such
the right thing, whether it involves protecting as animal fat into alternative energy. Through
natural resources, creating alternative energy, or announced alliances with other companies,
feeding the hungry. we currently plan to produce up to 250
million gallons of biofuel a year from animal
Sustainability at Tyson Foods is a natural outgrowth
fat within the next three to four years.
of our Core Values, which call on us to “serve as
stewards of the animals, land, and environment” • The continued escalation of grain prices, “I believe the Team Members of
and “operate with integrity and trust.” It involves driven largely by government mandates for Tyson Foods will continue to succeed
taking both ethical and social responsibility, but in our sustainability efforts because
corn-based ethanol, has resulted in higher
it can also have economic implications if you so much of it is part of who we are
input costs for the food industry, as well as
and how we operate our business.”
choose to ignore it. higher consumer food prices. Tyson Foods
Richard L. Bond
will continue efforts to effectively manage
There are three major aspects of our sustainability
president and CEO of Tyson Foods
these additional input costs and will also
efforts, which we refer to as our “triple bottom
continue advocating changes in government
line.” They include our economic, social, and
policy on the use of corn for ethanol.
environmental performance. While we are
obviously focused on the economics of our • Tyson Foods is a leader in the fight against
business, we also pay attention to our social and hunger. In 2006, the company committed
environmental responsibilities. This includes ethics, to donate 10 million pounds of protein over
worker dignity and respect, food and worker three years to America’s Second Harvest –
safety, animal well-being, and community relations. The Nation’s Food Bank Network. We are
already on track to exceed this goal well
We have staff members specifically assigned
ahead of schedule.
to ensure we are properly addressing these
important areas. Because sustainability touches I believe the Team Members of Tyson Foods will
virtually every aspect of our operations, however, continue to succeed in our sustainability efforts
we strive to make it the responsibility of every because so much of it is part of who we are and
Tyson Team Member. We have also set the how we operate our business. We’re proud of
following sustainability goals for the company: what we have already accomplished, and we are
committed to doing even better.
• As a company, we use approximately 28
billion gallons of water each year to produce
safe and healthy food products for our
customers. Our goal is to conserve this
important natural resource, and over the Richard L. Bond
past two years we have reduced water President and Chief Executive Officer of Tyson Foods

about This Report

4

With the release of It’s In Our Nature, our second biennial sustainability report, we continue to demonstrate that
sustainability is a fundamental element of Tyson Foods’ culture. This report provides facts and data illustrating that
sustainability is an inherent part of who we are as individuals and as a company.
Simply said, it is in our nature to care about important issues such as hunger relief, environmental protection, resource
conservation, food safety, animal well-being, ethical business practices, the safety and health of our Team Members,
and community support.
Tyson Foods published its first sustainability report, Living Our Core Values, in 2005. Both reports can be viewed
at www.tyson.com.

Report period and scope • Animal Well-Being: Treating Animals Right
• Environmental, Health, and Safety:
The data in this report, including financial
Making a Difference
information, covers fiscal reporting years 2006
(October 2, 2005 - September 30, 2006) and 2007 • International: Sharing with the World
(October 1, 2006 - September 29, 2007). Financial
Creating Meaningful Change
information is given in U.S. dollars. Unless
• Research and Development:
otherwise noted, this report covers all U.S.-based
Focusing on the Future
operations, with additional information provided
• Shareholders: Creating Long-Term
on select international operations, subsidiaries,
Shareholder Value
and joint-ventures. The scope of the report does
not include data from independent producers, • Supply Chain: Partnering with Suppliers
external organizations, or activities over which
• Community: Touching Lives and
the company has limited control or influence.
Meeting Needs
Report content
Key stakeholders
Tyson Foods collaborated with both internal and
This report is designed to provide information
external sources to determine the topics in
about our company’s sustainability efforts to
this report. These sources included company
individuals and organizations interested in Tyson
objectives and strategies; roundtable discussions
Foods’ economic, social, and environmental
with the company’s senior management team;
performance. We expect this report to be used
focused discussions and workgroups with
by the following stakeholders:
key business units; customer and consumer
• Team Members
feedback; comments specific to Tyson Foods’
previous Sustainability Report; and the Global • Shareholders and potential investors
Reporting Initiative (GRI) G3 Reporting Guidelines. • The Board of Directors
Based on our assessment, we determined that • Independent producers
the topics of greatest importance to our
• Communities near our operations
company and its stakeholders can be
• Customers and consumers of our products
categorized as follows:
• Multicultural organizations
Maintaining a Proud Workplace
• Nongovernmental organizations
• Ethics and Governance: Doing What’s Right
• Local, state, and federal governments
• People: Respecting Our Team Members
• Suppliers
Building Trust Everyday
• Food Safety: Maintaining Consumer Trust • Joint ventures and alliances

5

coMpany pRoFIle animals, land, and environment entrusted to us.
Our vision is to be the world’s first choice for
Tyson Foods, Inc. [NYSE: TSN], founded in 1935
protein solutions while maximizing shareholder
with headquarters in Springdale, Arkansas, is the
value, living our Core Values, and fostering a fun
world’s largest processor and marketer of chicken,
place to work. Our mission is to produce and
beef, and pork, the second-largest food production
market trusted quality food products that fit
company in the Fortune 500, and a member of
today’s changing lifestyles and to attract, motivate,
the S&P 500. Our company produces a wide
and retain the best people in the food industry.
variety of protein-based and prepared food
products and is the recognized market leader As the largest protein company, Tyson Foods
in the retail and food service markets it serves. produces nearly one out of every four pounds
Tyson Foods provides products and service to of chicken, beef, and pork consumed in America.
customers throughout the United States and We are the only company selling all three proteins
more than 80 countries. Our company has through all major distribution channels. We lead
approximately 104,000 Team Members employed domestic beef production with a 25-percent
at more than 300 facilities and offices in the market share*. We also hold the number two
United States and around the world. Through position in chicken and pork production with
our Core Values, Code of Conduct, and Team a 24-percent and 17-percent market share*,
Member Bill of Rights, Tyson Foods strives to respectively.
operate with integrity and trust and is committed
*Chicken market share is based on average weekly
to creating value for our shareholders, customers, slaughter. Beef and pork market share is based on
and Team Members. Tyson Foods also strives reported processing numbers.
to be faith-friendly, provide a safe work
environment, and serve as stewards of the

Tyson Foods production Facilities

International

6

coMpany sTRaTeGy We also pay close attention to costs and the
efficiency of our operations. In the fall of 2007,
With our talented, diverse, and high-performing
Tyson Foods undertook an initiative to examine
team, we will drive performance in a winning, highly
every aspect of the business to ensure best
accountable culture reflective of our Core Values.
practices are shared throughout the company.
We will:
The result of this process will be an optimization
• create innovative and insight-driven food of resources that align production, customer
solutions: Discover and sell market-leading needs, and efficiencies.
products and services to grow Tyson Foods’
Toward our goal of international expansion, we
brand equity and help our customers
entered into a joint venture in 2007, creating the
succeed through our commitment to joint
first vertically integrated beef operation in
value creation
Argentina. Tyson Foods is pursuing additional
• optimize commodity business models: opportunities in South America as well as Asia.
Emphasize cost focus in operations, manage
The newest aspect of our corporate strategy is to
margins, and maximize revenue by
revolutionize the conversion of raw materials into
capitalizing on scale, yield, pricing, product
high-margin initiatives. Renewable energy is an
mix, and services
important aspect of this strategy, and we have
• build a multi-national enterprise: Accelerate created a new division to support this effort.
expansion in cost-competitive regions and The Tyson Renewable Products group is in
markets with the greatest growth potential a strategic partnership with ConocoPhillips to
as well as increase and diversify U.S. exports produce renewable diesel fuel from beef, pork,
and chicken fat. The companies anticipate
• Revolutionize conversion of raw materials
production of 175 million gallons of renewable
and by-products into high-margin initiatives:
diesel fuel per year by 2009.
Commercialize opportunities outside the
The new Any’tizers™ snacks
core business, such as creating renewable We also entered into a joint venture with
packaging
energy from fat and developing other Syntroleum Corporation, a synthetic fuels
technologically advanced platforms from technology company. The partnership, named
2007 sales by segment
materials such as feathers and other animal Dynamic Fuels LLC, will target the renewable
$26.9 billion
by-products diesel, jet, and military fuels markets. When the
first standalone production facility is completed
With the opening of the Tyson Discovery Center™
10%
in 2010, the companies anticipate production of
in fiscal year 2007, Tyson Foods significantly prepared
Foods
75 million gallons of synthetic fuels annually.
increased its efforts to create innovative and 47%
12% beef
insight-driven food solutions. This state-of-the- Tyson Foods will also continue efforts to mitigate pork
art research and development facility enhances the impact of higher grain prices, which have
our ability to create new foods and bring them to largely been caused by the use of corn for
31%
the marketplace quickly. This year we introduced ethanol production. Grain is a significant input
chicken
100% All Natural Chicken for our Foodservice cost in the livestock and meat industry,
customers. In the consumer products channel, we representing almost half the cost of raising a
launched Any’tizers™ snacks. chicken. Because of the impact of increased grain
costs on our company as well as our customers
and consumers, the company will continue to
push for changes in government policy on
ethanol production.

7

Retail brands Wholly-owned subsidiary
Foodservice brands
Corn King® Cobb-Vantress, Inc., a Tyson Foods wholly owned
Tyson®
subsidiary, is the world’s leading supplier of broiler
A leading national brand of value-priced bacon, ham
IBP®
breeding stock and technical expertise for the
and deli meats.
Bonici Italian®
chicken-meat industry. Cobb-Vantress works with
Russer®
Mexican Original® customers in more than 90 countries to provide
A brand of deli meats and cheeses for both self-
for the growing demand for chicken, helping
Wright Brand® serve and service deli departments.
them to increase production efficiency and
Star Ranch Natural Angus Beef™ Weaver® improve overall returns. Care for the welfare of
The Northeast’s leading brand of quality frozen fully the chickens and for the needs of the customers
cooked chicken products. is central to Cobb-Vantress’ business philosophy.
Wilson™
A brand of ham and deli meats.
Wright Brand™
The Southwest’s largest supplier of high-quality
bacon and hams.

cobb-Vantress distributors

8

MAiNTAiNiNg A PrOud
WOrkPLACE
ethics and Governance . . . . . . . . . . 10
Doing What’s Right

people . . . . . . . . . . . . . . . . . . . . . . . . . 14
Respecting Our Team Members

ethics and Governance
Doing What’s Right

10

We strive to conduct our business in an ethical, honest manner and in full compliance with all applicable laws and
regulations. We believe integrity is a fundamental element in our relationships with our many stakeholders. Our
commitment to operating with respect, trust, accountability, and honor is modeled daily by our Team Members.
In 2007, Tyson Foods introduced a revised Code of Conduct and developed a Code of Conduct/Ethics DVD to address
the training needs of our hourly Team Members. In addition, computer-based ethics and Code of Conduct training
courses were implemented for all management and management-support Team Members. Tyson Foods also created the
Office of Compliance in 2006 to facilitate our compliance program.

ouR code oF conducT Team Members must successfully complete a
test to obtain credit for the course. Newly hired
The Code of Conduct sets forth ethical standards
or promoted management and management-
that apply to the Board of Directors, all Team
support Team Members are required to complete
Members, business divisions, and subsidiaries of
the Code of Conduct course to ensure their
Tyson Foods. Team Members from across the
awareness of the company’s ethical standards set
company assisted in the 2007 revision of the
forth in the Code.
Code of Conduct. The Compliance Coordination
Committee, the Executive Compliance Committee,
and the Board of Directors approved these revisions.
In conjunction with the release of the revised
Code of Conduct, a computer-based training
course for management and management support
was implemented. The course ensures Team
Member’s awareness of the company’s Code of
Conduct requirements with respect to integrity For additional information, visit
and honor in key business areas, such as: our Web site at www.tyson.com.
Many resources about our
• Food safety
corporate governance program
• Animal well-being are available there, including our
Corporate Governance Principles,
• Environmental management
committee structures, charters,
• Conflicts of interest and Code of Conduct.
• Safety and health
• International business practices

11

ManaGInG eTHIcal conceRns
eTHIcs TRaInInG
It’s understood that the written Code of Conduct
All Tyson Foods Team Members, including the
cannot provide guidance on every situation Team
Board of Directors, annually attend approximately
Members may face during their business activities.
one hour of Ethics and Code of Conduct training.
When the Code of Conduct is not enough, the
This training provides information on various ‘real
Tyson Help Line is available.
life’ ethical scenarios. Team Members are taught
to make good decisions within the framework of In 2007, Tyson Foods implemented a new Help
“Doing What’s Right.” They are instructed to ask Line tracking system. This system allows Help
themselves the following questions when they are Line personnel to more accurately analyze calls
uncertain about the proper course of action in a for the purpose of investigation and follow-up.
difficult situation: In addition, the nature of each call to the Help
Line is evaluated. Results, trends, and statistics
• Does it comply with Tyson Foods’
are reported quarterly to the appropriate Board
Core Values?
ouR coRe Values
of Directors committee.
We are a company of people • Is it the right thing to do?
engaged in the production of
The Help Line may be used anonymously to
• Were others treated the way I want
food, seeking to pursue truth
and integrity, and committed to report any suspected violation of the law,
to be treated?
creating value for our shareholders,
applicable regulations, company policies, or
• Would Tyson Foods or I be embarrassed if
our customers, and our people in
provisions of the Code of Conduct. The Help
the process. this action were reported in the newspaper?
Who We are Line is accessible to callers from the United
• We strive to be a company of • Is it legal?
States, Canada, Mexico, and China 24-hours
diverse people working together
to produce food. a day, and offers assistance in more than
• We strive to be honorable
150 languages.
people.
• We strive to be a faith-friendly
company.
What We do
• We feed our families, the nation,
and the world
with trusted food products.
• We serve as stewards of the
animals, land, and environment
entrusted to us.
• We strive to provide a safe work
environment for
our Team Members.
How We do It
• We strive to earn consistent
and satisfactory profits for our
shareholders and to invest in our
people, products, and processes.
• We strive to operate with
integrity and trust in all we do.
• We strive to honor God and
be respectful of each other,
our customers, and other
stakeholders.

12

GoVeRnance
coMplIance
Tyson Foods is committed to best practices in
In 2006, the company created the Office of
corporate governance. We believe maintaining
Compliance and performed a Compliance Risk
qualified independent directors on the Board of
Assessment. The assessment, which will be
Directors is an integral part of effective governance.
updated periodically, was developed to:
Since 1998, the percentage of independent directors
• Create an inventory of Tyson Foods’
has increased, while the overall size of the board
compliance risks
has decreased. Of ten directors currently serving,
• Measure the likelihood and significance of a
six are independent. In 2006, the functions of
compliance violation specific to that risk
Chairman and Chief Executive Officer were
• Gauge the effectiveness of management’s separated. John Tyson serves as Chairman while
efforts to manage the risk Dick Bond is the President and Chief Executive
Officer. Tyson Foods values the diverse thoughts,
• Offer suggestions for improvement
backgrounds, skills, and characteristics of our
A Compliance Coordination Committee was
directors. Tyson Foods has four working
also established during 2006. The committee is a
committees of the Board – Audit, Compensation,
cross-functional management team representing
Governance, and Nominating – each of which is
key compliance business processes. Its mission is
comprised of independent directors. Currently,
to enhance our ability to collaborate on compliance
we have four minority directors on our board.
best practices. The committee will help foster
Furthermore, our directors bring broad-based
effective and efficient communication across
experience related not only to food production
compliance risk areas.
but also investments, health care, and marketing.
The Compliance Coordination Committee
provides information on compliance risks and
key business drivers to the Executive Compliance
Committee, a committee of senior leaders at the
company. The Executive Compliance Committee
sets the tone and direction of the company’s
compliance program.

13

people
Respecting Our Team Members

14

At Tyson Foods, we know our employees, whom we call Team Members, drive our continued success and provide the
unique contributions required to build a sustainable company. We strive to celebrate those unique contributions and
provide personal and professional opportunities for growth for each Team Member. We seek to recruit a highly skilled
and motivated workforce, offer competitive compensation and benefits, and above all, treat our Team Members with
dignity and respect.
In 2006 and 2007, Tyson Foods launched the Pipeline Management Process. Focused primarily in our plants, this process
helps prepare a diverse talent base for future management opportunities at every level of our company. In addition, our
Professional Recruitment department re-engineered our recruiting process to develop proactive talent-management plans
for each business unit. Furthermore, Tyson Foods unveiled a new strategy for communicating its diversity and inclusion
efforts, expanded its health benefit plans, and designed a new reward and recognition program for Team Members.

one person, one Team, one Goal
ManaGInG InclusIon - ValuInG dIVeRsITy
Our Core Values state, “We strive to be a
Inclusion, diversity, and engagement are the
company of diverse people working together to
cornerstones that have supported the sustained
produce food.” Diversity, however, is about more
success of our company. We believe these
than a person’s outward appearance; it’s about the
cornerstones:
individual and collective thoughts, backgrounds,
• Increase innovation
and talents of our 104,000 Team Members.
• Enhance customer and investor confidence
Our strategy, “One Person, One Team, One Goal,”
• Help maintain a competitive advantage
supports our Core Values, Code of Conduct, and
• Attract and retain the best of all groups Team Member Bill of Rights. This concept moves
each Team Member closer to realizing the truth
• Support our success and growth in
behind the personal statement, “At Tyson Foods,
the future
I have the opportunity to be part of a winning
Tyson Foods is committed to building and
team, and grow personally and professionally,
maintaining a culture that fosters inclusion and
while being myself.”
diversity. We will do this by increasing our
awareness about how our own thinking, actions,
and backgrounds impact those around us. We
will also continue to educate our leaders on
how to effectively champion and energize a
multi-cultural workforce.

15

HIRInG THe besT
Inclusion and diversity Initiatives
Hiring the right people is a part of Tyson Foods’
Tyson Foods has developed and implemented key
success. A robust hiring process helps ensure
activities supporting its inclusion and diversity
compliance with federal, state, and local hiring
business strategies. Our company established
practices. Moreover, it helps us ensure the skills
an Executive Diversity Business Council in March
and experiences of our Team Members are properly
2005. This council develops and leads initiatives
aligned with our business needs and that we have
that foster inclusion and participation of all Team
a talent pipeline for future leadership opportunities.
Members. Led by our President and CEO Dick
Bond, the goal of this council is to ensure all Team
Improving our Recruiting process
Members are treated with dignity and respect.
Our Professional Recruitment department
Involvement is a key factor for Team Member
redesigned the recruitment process in 2006.
retention. Tyson Foods established three Business
By partnering with our internal customers such
Resource Groups for this reason. The Women’s,
as hiring managers, we were able to develop
Multicultural, and Men’s Business Resource Groups
proactive talent management plans for each
help ensure all Team Members feel connected to
of our business units. The changes resulted in
our company’s overall business strategy. Not only
significant time and cost savings and provided
do these groups help foster engagement in our
these additional benefits:
company, they also aid our Team Members’
• A comprehensive talent acquisition plan
understanding of how they can more effectively
and recruiting strategy for each available
support our business strategy. Business Resource
position
Groups also provide an avenue for Team Members
to network and to develop further their professional • An automated applicant tracking system
knowledge and skills. to better utilize Internet recruiting sites
Tyson Foods has established an Organizational • An enhanced employment record-keeping
Effectiveness Assessment. The purpose of the process
assessment is to solicit Team Member feedback
• Expanded search capabilities for both
regarding Tyson Foods’ effectiveness in fulfilling
candidates and recruiters
its business strategy and mission. The assessment
Focusing on college Recruitment
focuses on key business elements such as:
We hire a number of Team Members from
• Innovation and operational excellence
college campuses. Our Executive Diversity
• Inclusion
Business Council directly supports five colleges
• Decision-making
and universities throughout the country. We
• Customer focus also support the Historically Black College
Classics program, and our partnership with the
• World-class talent development
Junior Military Officer recruiting program is a
Team Members looking for advancement will have
significant source of diverse candidates for all
a new opportunity as the Pipeline Management
areas of our business.
Process (PMP) is implemented throughout most of
We sponsor a recruiting room in the Career
the company. Primarily focused in the plants, the
Placement Office at the University of Arkansas.
PMP provides a system to identify Team Members
Here we conduct mock interviews to help
from first-level supervisors to upper management
Team Members throughtout the prepare students for job interviews. In addition,
as candidates for development potential and
company may become candidates
leaders from Tyson Foods participate in classroom
possible advancement opportunities.
for the PMP program.
teaching opportunities through case studies,
projects, and lectures.

16

payInG a coMpeTITIVe WaGe
Regional Recruiting
Tyson Foods offers its Team Members one of
Finding a qualified supply of labor is an ongoing
the best benefits packages in our industry. Our
challenge for the company. With a renewed focus
compensation package is competitive and affords
on our Regional Recruiting program, we have been
our Team Members the opportunity to acquire a
able to make significant achievements in staffing
stake in the future of our company. Our health-
hard to fill positions and locations. The Regional
care benefits focus on all aspects of lifestyle
Recruiting program identifies qualified individuals,
changes, good health, disease prevention, and
usually from large cities, who are willing to relocate
education. These programs not only ensure our
to rural areas where our plants are located. The
Team Members are properly compensated for
company provides relocation assistance, job skills
their workplace contributions, they also support
training, and benefits coverage. As an example of
the broad-ranged health and well-being needs of
this program’s success, our Louisa County and
our Team Members.
Storm Lake, Iowa, plants achieved full capacity
through this program.
compensation benefits
ensuRInG eMployMenT coMplIance and We conduct wage surveys and review cost of
elIGIbIlITy living indicators and community norms regularly.
At $10.83 per hour, our average hourly rate is
Tyson Foods is committed to equal opportunity
substantially higher than the national minimum
in all aspects of employment. Our company
wage. Team Members are given the opportunity
maintains a strict policy prohibiting any kind of
to have a financial interest in our continued
unlawful harassment or discrimination, such as
success through our stock purchase plan. The
that involving race, sex, religion, color, age,
plan allows Team Members to contribute up to
national origin, veteran’s or disability status, or
20 percent of their pay to stock purchase. After a
sexual orientation. This policy applies to anyone
year of service, the company will match a portion
in the workplace including managers, supervisors,
of the first 10 percent contributed.
co-workers, vendors, clients, or customers of
Tyson Foods. Tyson Foods requires 100 percent of Tyson Foods’ Retirement Savings Plan helps our
its Team Members annually to attend approximately Team Members fulfill one of their most important
Thanks to Tyson Foods’ policy
one hour of anti-harassment and anti-discrimination goals – financial security. In addition to the in support of the U.S. military,
training. The company considers harassment, company match and payroll-deduction features, Team Member David Rook did
discrimination, and retaliation to be serious issues we now offer three new plan benefits to help our not suffer financially when he
and has invested considerable resources to prevent was called to serve with his
Team Members manage their investments:
National Guard unit in Iraq. The
their occurrence.
• Three age-based investment funds that policy provides differential pay
Tyson Foods is also committed to ensuring offer a moderate-risk portfolio appropriate for all Team Members called to
all its hiring locations consistently follow the active military duty.
to an individual Team Member’s age
Tyson Foods Employment Eligibility Policy “I’m thankful for the company’s
• An InvestForward program that automatically
and maintain compliance with the Immigration position on differential pay. Our
places a Team Member in the appropriate
Reform and Control Act (IRCA) of 1986 and family would have faced financial
age-based fund and manages annual trouble without it,”
Form I-9 regulations. We will not tolerate any
rebalancing David Rook
person knowingly hiring or allowing anyone to
complex safety manager,
• GuidancePlus, an online tool, which
continue working if he or she is not authorized
warehousing/distribution
helps Team Members set retirement goals
for employment. The company has therefore
Springdale, Arkansas
and determine if their contribution level is
established procedures to ensure its compliance
Served in Iraq July, 2005 to
sufficient for meeting these goals
with all federal and state laws regarding the November, 2006
verification of employment authorization.
Strict training, certification, record keeping
guidelines, and third-party verification processes
are used regarding I-9 forms. The company also
participates in the Department of Homeland
Security’s E-Verify Employment Eligibility
Verification Program.

17

Talent Review and succession planning
Health care
A Talent Review and Succession Planning
Tyson Foods understands the importance of
initiative in each business unit and shared services
having access to affordable and comprehensive
department provides a way to identify our human
health care coverage. We require that all Team
resource needs as they relate to our business
Members have health care coverage through
strategy and to offer the right development
either the company-sponsored health plan or
resources to meet those needs.
through a spouse’s employer’s plan. Therefore, 100
percent of the company’s eligible Team Members
Individual development plans
have health care coverage.
In addition to the approximately 15 percent of
Our goal is to partner with our Team Members to
our Team Members who are required to receive
help them become better health care consumers
regular performance and career-development
and to make better lifestyle choices. Several
reviews, many of our Team Members use an
enhancements became effective in January 2008:
Individual Development Plan (IDP) to create a
• Tobacco Cessation Program road map to reach career objectives. An IDP is
used to strengthen areas identified for growth
• Life and AD&D Insurance option for Team
and to “fine tune” already well developed skill
Members not enrolled in the Tyson Foods
sets. Team Members are encouraged to share
Group Health Plan
their IDP with a supervisor or mentor who may
• Option for additional Voluntary Life
be able to help them achieve their goals more
Insurance coverage
completely and quickly. Team Members are also
• Option for additional Voluntary AD&D
encouraged to take advantage of the many
coverage
resources Tyson Foods provides that can aid
• Discount on Diabetic Test Strips in their professional development.
• Generic Medication Incentive
leadership college in springdale, arkansas
• Disease Management Program
Tyson Foods Leadership College is open to all
• Free Personal Health Risk Assessment management and management-support Team
Members. It provides a curriculum focused
• Health Matters Condition Management
“My wife stays at home with our
on developing six core-leadership attributes:
Program
two children, and with one income,
business acumen, leadership, strategic agility,
the education assistance has been a
TeaM MeMbeR TRaInInG and deVelopMenT
highly valued benefit for us. Tyson communication, developing self and others, and
Foods’ commitment to professional The goal of Tyson Foods’ Leadership and understanding Tyson Foods.
growth and development and work-
Professional Growth department is to create an
family balance is a value that is hard educational assistance program
integrated talent-management process that
to replace. I’m in the last semester
During the 2007 fiscal year, 267 Team Members
identifies, develops, deploys, and retains leaders
of a three-year master’s degree in
took advantage of the company’s Educational
public administration. That degree within our organization. The department provides a
has opened my eyes to a different Assistance Program, with the company’s overall
variety of services and programs to help prepare our
perspective on how Tyson Foods investment totaling just over $523,000. The
Team Members for future leadership challenges.
relates to government and how laws
Educational Assistance Program encourages
and politics play into our everyday
and enables Team Members to increase their
business.”
knowledge, develop skills, and further their
Mike Chapman
education. The company will reimburse eligible
manager of process safety
Team Members 75 percent of the cost of tuition,
management and risk management
programs services books, and fees, up to $3,500 maximum for a
calendar year for qualified classes.

18

Tyson Foods’ chaplain services
leaders into champions
Initiated in 2000, the program provides
Leaders into Champions (LINC) is a two-year
compassionate pastoral care and ministry to
intensive development opportunity designed
Team Members and their families, regardless of
to empower our high-potential leaders as
their religious affiliation or beliefs. More than 120
organizational and industry champions who
chaplains representing 31 different faith group
contribute significantly to the performance
affiliations support the program. Team Members
and profitability of Tyson Foods and expand
talk in confidence with chaplains about many
the company’s depth of influence and leadership
issues including good times or stress concerns.
within the industry.
Our chaplains also provide premarital counseling,
Team Members nominated into the program
conduct weddings, celebrate when new babies
participate in a rigorous selection process. The
are born, and conduct funerals for our Team
first year of the program focuses on the Team
Members and their families. Chaplains also provide
Member’s own personal-development planning,
cultural support and help integrate new workers
peer-to-peer development sessions, coaching
who may be struggling to adapt to new and
from a mentor, and monthly learning sessions led
different cultures.
by a senior leader of the company. In year two,
LINC members may participate in a number of outplacement assistance
different developmental experiences including
Like many organizations in today’s marketplace,
job rotation, action learning teams, or special
Tyson Foods has faced economic and financial
project assignments.
pressure. From ideas submitted by our Team
caRInG FoR ouR TeaM MeMbeRs Members, our 2006 Cost Management Initiative
(CMI) realized over $265 million in cost reductions
Tyson Foods cares about its Team Members.
and savings. Unfortunately, some Team Members’
We recognize that our Team Members may
positions were eliminated as part of this
experience personal problems such as health
streamlining. For those affected, the company
concerns, marital and family issues, grief and
provided an enhanced severance package and
death, substance abuse, or job and financial
outplacement assistance. Our outplacement
concerns. If unresolved, these issues may
assistance efforts included:
affect emotional health. It is our goal to
• Resume writing and interviewing skills
provide a confidential resource for our Team
training
Members to help address these issues.
• Counseling services from the Chaplaincy
Program
• On-site employment interviews with
local companies

Tyson Foods was honored to receive
the 2007 International Spirit at Work
Award from the International Center
for Spirit at Work, a worldwide non-
profit organization for people who
are integrating spiritual values into
the workplace. Tyson Foods was one
of seven organizations that received
the award.

19

ReWaRdInG and RecoGnIZInG
communication with Team Members
ouR TeaM MeMbeRs
Tyson Foods’ culture is built on open and frequent
In 2006, Tyson Foods formed a task force to
communication. We engage in several different
explore the types of reward and recognition our
types of communication to ensure our Team
Team Members value. The goal was to design a
Members have access to important information.
reward and recognition program that:
As an example, each month a different business
leader from our company hosts a “Brown Bag • Encourages extraordinary behaviors that
Luncheon”, which is also viewable online. In create positive business results
addition, our Executive Leadership Team routinely
• Drives the goals and strategies of the
produces video messages updating Team Members
organization
on recent initiatives and projects. We have also
• Is a catalyst to transform our culture and
Team Members participate in a round established:
table discussion. enhance Team Member involvement
• Tyson Help Line for Team Members to report
Internal feedback from the task force overwhelmingly
concerns or complaints regarding employment,
indicated business units and departments wanted
workplace issues, discrimination, or harassment
the flexibility to create their own programs specific
• Feedback Forum where Team Members can
to their functions. They wanted their programs
submit anonymous questions and have them
to be sincere and simple, meaningful, adaptable,
answered on our company intranet
relevant, and timely. As a result of this effort,
many departments have put together their own
task forces and created unique reward and
recognition programs.
• Our Human Resources department
created the Think PIC award which is
presented quarterly and recognizes Team
Members who go above and beyond the
qualities of being proactive, innovative,
and customer focused.
• The Information Systems department’s
Captain Reboot award incorporates humor,
spot awards, and team communication to
recognize great service and enhance the
department’s culture.
• The Tyson International Great Efforts
and Results (TIGER) award recognizes
a Team Member’s above-and-beyond
contribution to the success of the
International team. The award recognizes
the way the Team Member accomplished
their success using collaboration, customer
service, and other key leadership attributes.

20

BuiLdiNg TruST EvEry dAy

Food safety . . . . . . . . . . . . . . . . . . . . .22
Maintaining Consumer Trust

animal Well-being . . . . . . . . . . . . . . .28
Treating Animals Right

environmental, Health,
and safety . . . . . . . . . . . . . . . . . . . . . . 32
Making a Difference

International . . . . . . . . . . . . . . . . . . . .42
Sharing with the World

Food safety
Maintaining Consumer Trust

22

As an industry leader, Tyson Foods has been committed to providing safe, quality foods people can trust for more than 70
years. We have a history of developing innovative and effective food safety systems. These systems have been recognized
as gold standards in the industry and as state of the art by government regulators. These innovations are essential in
maintaining the confidence customers and consumers have in the Tyson Foods brand. Our commitment to innovation helps
ensure each product leaving a Tyson Foods plant meets or exceeds customers’ and consumers’ expectations.
Tyson Foods participates in a number of national food safety and quality programs, as well as its own programs each year.
The company’s foodWISE® program helps educate our customers and consumers on our general food safety practices.
In 2006 and 2007, we heard from approximately 250,000 customers through our IN TOUCH WITH TYSON program. Our
consumer input is invaluable in helping us develop safe, quality food consumers want. In 2006, we converted our marinated
fresh chicken to 100% All Natural™.

QualITy aT THe FaRM • We produce chicken feed at our 33 U.S.-based
Food and Drug Administration registered
We take steps at every level to make sure each
feed mills. We use ingredients from suppliers
product meets the company’s rigorous safety and
that are members of the Animal Protein
quality criteria. In fact, everything in our business
Producers Industry. Our feed typically consists
is designed with these two factors in mind,
of grain, vegetable proteins, and other natural
beginning at the farm and continuing all the way
ingredients. These ingredients are tested by
to the dinner table.
our Quality Assurance laboratories to ensure
A solid commitment to protecting animal health
safety, quality, and nutritional value. Steroids
provides a foundation for the quality of meat
and growth hormones are never used in any
produced. Below are examples of how this
of our chicken feed, as prescribed by the
commitment is fulfilled.
federal government.
• Soil and water quality tests are performed
• Before being transported to a processing
at all company-owned and independent
facility, we test every flock of chickens to
poultry farms before houses are built. Each
ensure they are pesticide free. Pesticides that
chick receives an immunization regimen to
could leave a residue in and around poultry
prevent illness at the farm and each flock of
houses are prohibited. In addition, we check
chickens is regularly evaluated for healthiness.
every flock of chickens to ensure good health.
• Strict biosecurity measures are implemented This includes our decision in the fall of 2005
to prevent the spread of disease among to expand on-farm avian influenza testing to
farms and animals. We perform thousands include pre-screening all flocks prior to
of tests each week to confirm the health of transport to processing facilities.
our animals.

23

ensuRInG saFe, QualITy Food aT We also partnered with Texas A&M University to
ouR FacIlITIes offer two of the few industry-sponsored training
programs approved by the International HACCP
From our laboratories, to our product and process
Alliance. These programs include case studies and
monitoring programs, to our Hazard Analysis and
small working-group sessions that provide a working
Critical Control Point (HACCP)-verification processes,
knowledge of HACCP.
our dedication to safe, quality food is evident in
We also offer certification support training for our
the programs and controls we have to protect
Team Members. This support helps them prepare
our products.
for certifications from organizations such as the
Food safety and Quality assurance Team American Society for Quality’s Certified Quality
Engineers and Auditors and the National Restaurant
Our Food Safety and Quality Assurance (FSQA)
Association’s Educational Foundation.
Team consists of approximately 2,500 FSQA Tyson
Foods professionals. This team partners with
Food safety laboratories and Research
operational units to ensure the safety and quality
Our Food Safety and Laboratory Services
of every product. FSQA Team Members monitor
Network is recognized throughout the industry
the execution of our food safety and quality
as a research leader in serological testing, food
assurance programs including:
chemistry, microbiological testing, food safety
• Food safety and sanitation
research, and environmental water testing. Our
• Policy adherence and regulatory compliance accreditations include:
• Laboratory services and statistical support • U.S. Department of Agriculture (USDA)-Food
Saftey and Inspection Services (FSIS) Food
• Product and process performance
Chemistry
• Good Manufacturing Practices
• USDA-FSIS Pesticide Analysis
• Food safety and quality training
• USDA-Agricultural Marketing Service Russian
The safety of our products is closely monitored
Export/Chemistry and Microbiological Testing
by a company Food Safety Team located at
• National Poultry Improvement Plan for Testing
each facility. These multi-departmental teams
Avian Influenza, Mycoplasma synoviae, and
systematically evaluate key aspects of the
Mycoplasma gallisepticum
production processes to prevent potential food
safety issues. The Food Safety Team then works • USDA-Animal and Plant Health Inspection
with the facility to develop, implement, and Service for Salmonella Analysis
monitor controls and procedures to drive
continuous improvement.
A key success factor for continuous improvement
is training. Our Team Members participate in
ongoing food safety and quality-assurance
training. For example, in partnership with the
University of Arkansas, we developed the Food
Safety Training and Education Initiative. This
initiative provides courses on key food safety
Tyson Laboratory Services Network
topics such as:
includes 18 company-owned and
operated laboratories throughout • Food safety management
the United States.
• HACCP
• Food processing and statistical process
control

24

statistical support
Our award-winning laboratory network is composed
of 18 company-owned and operated laboratories Our Statistics Group provides Statistical Process
across the country, including a 25,000 square-foot, Control (SPC) training and support to the company,
state-of-the-art food testing and research laboratory its subsidiaries, and the food industry as a whole.
at our World Headquarters in Springdale, Arkansas. This group also supports our continual improvement
The Springdale laboratory is dual certified under efforts, partners with our sales teams and customers
the International Organization for Standardization to address potential quality issues and functions
(ISO) quality management system standard ISO as an industry resource for research projects that
9001:2000 and the ISO/International Electrotechnical provide statistically valid experiment results to
Commission (IEC) 17025 standard for the competence USDA. The group partnered with our facilities to
of testing and calibration laboratories. In addition, establish SPC programs to:
seven other company-owned regional and
• Reduce processing errors and waste
corporate laboratories are certified under the
• Control and validate critical HACCP limits
same ISO/IEC 17025 standard.
• Maximize finished product quality
The company also has 58 plant-based Quality
Assurance laboratories. All tests conducted in
Food deFense
these laboratories are thoroughly detailed in
Tyson Foods takes extraordinary measures for
the company’s Laboratory Manual. A 3½ day
protection against deliberate acts of food product
microbiology and chemistry course is offered
tampering. We require all facilities and co-packers
quarterly for management personnel and laboratory
to conduct vulnerability assessments. From this
technicians located in our processing and rendering
assessment, each facility then develops and
plants. Regularly scheduled audits of these
maintains a site-specific food defense plan.
laboratories underline our continuing commitment
This plan identifies the measures that will be
to quality.
implemented to avoid risk involving deliberate
Our commitment to food safety is not a point of
product tampering. We also require that each
competition between manufacturers. We openly
facility develop a response strategy in the event a
share our food safety research and technologies
threat to the food products they produce is made
with peers and colleagues. With the support of
or detected.
our Laboratory Services Group, we partner with
government, academia, trade associations, and
other industry members to sponsor food safety
research. Tyson Foods has made substantial
contributions to research covering E.coli O157:H7,
Salmonella, Avian Influenza, Listeria monocytongenes,
Campylobacter, and other public health issues
and initiatives aimed at improving food safety.
The Tyson Foods Laboratory Services Group is
also focused on our future food-safety and
business needs. Whether it’s marshaling resources
to develop rapid methods for new analytes, such
as melamine, or redeploying resources in support
of our new business ventures, such as renewable
diesel fuel, the Laboratory Services Group is
available to provide the resources needed to
support our food-safety and quality promises.

25

coMMunIcaTInG WITH consuMeRs
Internal and external Food safety audits and
and cusToMeRs
Inspections
Even after our products leave our direct control,
Our facilities receive routine internal quality
our quality assurance service continues. We are
assurance and food-safety assessments. These
committed to educating consumers about the
assessments are conducted by quality control
importance of safe food handling and healthy
managers. They focus on:
eating. We listen to our customers and their
• Critical food-safety elements
feedback about the products we produce.
• Sanitation performance
educating our consumers
• Company policy adherence
Tyson Foods’ foodWISE® program helps educate
• Regulatory compliance
our customers and consumers on the comprehensive
New Trimmed & Ready™ packaging.
Each facility is audited in accordance with the
food safety practices in all areas of our business.
company’s Comprehensive Food Safety Audit
This program provides tips to bring food-safety
Program. These internal audits are composed of
techniques into the home. The program encompasses
audit Team Members who are independent of
items such as tips for buying meat, food and meat
the location being audited.
handling techniques, Team Member training, food
Our facilities receive periodic independent safety at our plants, and the company’s laboratory
third-party audits of their food-safety systems. practices. Information about the foodWISE®
These reviews, conducted by or on behalf of program is communicated through consumer
our customers, are performed by nationally events, product packaging, and our Web site
recognized independent auditing firms. (www.tyson.com).
Government agencies also provide independent
eating Healthy
inspection reviews of our production facilities.
In 2004, we were one of the first companies in
For example, the USDA-FSIS engages in on-site
the industry to remove added trans fats from our
inspection of all of our meat and poultry plants.
breaded poultry products. In 2006, we converted
Furthermore, Tyson Foods has four non-USDA
our marinated fresh chicken to 100% All Natural™,
facilities which are regulated by the Food and
which means it is minimally processed and
Drug Administration (FDA). FDA inspectors perform
contains no artificial ingredients. We are proud to
routine inspections at each of these facilities.
have the resources residing in our Tyson Discovery
Center that enables us to offer products and
benefits our consumers and customers deserve.
While our marinated chicken wing sections do
have a higher sodium level than non-marinated,
we are providing the benefit of tenderness and
juiciness to consumers at approximately half the
sodium level of competitive products.

26

tyson foods 2007 Sustainability Report

tyson foods 2007 Sustainability Report

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