Guidingprinciples English

8/12/2019 Guidingprinciples English

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OUR GUIDING PRINCIPLES


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Our PurposeFor some 50 years, the Green Bulletin seriesdescribed the way John Deere conductedbusiness and put its values into practice.

The bulletins served as guides for the judgments and decisions made in pursuit ofour long-standing mission, or higher purpose,of serving those linked to the land.

Deeres values have established an enduringfoundation for the companys success.As we move into the future, we must ensurethese values remain vital and relevant andthat they continue to inspire our actions.

With this document, we are introducinga more contemporary, accessible format forthe concepts embodied in the greenbulletins. It presents our guiding principlesin a more concise, conversational style.

This document complements our corporatecode of conduct, corporate ethics policy andsupplier code of conduct. They spell out ourpractices and policies in more detail but aregrounded in the principles discussed here.

Together with the entire managementteam, I am pleased to introduce Our GuidingPrinciples, a compendium of insightful,and often inspirational, messages derivedfrom John Deere green bulletins issuedover the last half-century.

September 2012

Samuel R. AllenChairman and CEO

We are committed to serving those linked to the land, therebyhelping to improve living standards for people everywhere.

Our business aims to consistently deliver superior value to allwith an interest in its success. Ful lling our purpose requiresexceptional operating performance, disciplined growth andaligned, high-performance teamwork.

We create mutual advantage in the following ways:

Forging last ing relationships with customers by helping thembe more satis ed, pro table and ef cient;

Building a dynamic, inclusive business in which employeecontributions are recognized, respected and rewarded;

Delivering consistent value to shareholders;

Building mutually bene cial relationships with suppliers,independent dealers and other distribution channel members;

Making a meaningful contribution to the communitiesin which we operate and to society at large.

Our purpose guides us as we continue the journey our founderbegan in 1837. That journey, we believe, leads to a future thatholds great promise and opportunity.


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To be a more fully integrated and mutually supportiveenterprise, John Deeres businesses work together to producethe best outcomes for the company as a whole.

This approach requires leveraging resources and processes, sharingcustomer and market knowledge, and collaborating throughoutthe supply and distribution chain. In support of this concept,Deeres compensation programs are designed to recognizeachievement on a company-wide basis.

Wherever feasible, uniform processes and approaches enable workto be done ef ciently across the enterprise. As a rule, commonsystems and tools lead to the best use of resources, moreconsistent solutions, faster execution and a shared corporateculture. In some cases, policies and practices may be adapted toconform with local customs and requirements. This is acceptableprovided that such practices are consistent with our core valuesand meet legal requirements.

Staff organizations are expected to work in partner-like fashionwith business units to develop a rich appreciation of theirobjectives and priorities. In this way, employees can extend theefforts of the business units by developing ef cient, consistentsolutions that help the company achieve its goals.

We believe that functioning as a mutually supportive, integratedenterprise is the best way to ensure exceptional performanceand meet the exacting standards of our customers and otherconstituents.

The Way We Work Together


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COMM

QUALITY

Our Core Values Business Conduct John Deeres reputation is based on the core values of integrity,quality, commitment and innovation. These values haveshaped our character as an enterprise and made John Deerea special kind of company.

INTEGRITY means telling the truth, keeping our word and treatingothers with fairness and respect. It is demonstrated throughhonest relationships, decisions that consider the balanced interestsof stakeholders, and unquestioned commitment to ethical andlegal behavior. Integrity is one of our most cherished assets.It must not be compromised.

QUALITY means delivering value to customers, employees,shareholders and others. Quality is exhibited in many ways by selling and supporting products and services that delightcustomers, establishing a work environment in which employeesthrive, delivering nancial results that meet investor expectations,and maintaining sound relationships to the bene t of ourstakeholders.

COMMITMENT means doing our best to meet stakeholderexpectations in a predictable, consistent way over time.We recognize that our customers, as well as employees andinvestors, have many options in choosing a company withwhich to be associated. Our opportunity to serve shouldbe viewed as a privilege that is not to be taken for granted.INNOVATION means inventing, designing and developingbreakthrough products and services that have high appeal inthe marketplace and strengthen customer preference for theJohn Deere brand. Innovation extends to using the latesttechnology to establish world-class manufacturing processesand applying the most advanced information technology toolsand practices throughout the company.

Our core values unite us as members of the Deere communityand differentiate us from many other companies. These values,moreover, have sustained the loyalty of generations of customersand proved to be a powerful source of inspiration for thousandsof supremely talented employees over the better part of twocenturies.

Carrying on the legacy rooted in our core values is essential toserving customers and achieving our business goals, presentand future.

Our company operates by standards grounded in our core values.These values form a consistent framework that guides ouractions and has earned the company a preeminent reputationfor forthright and ethical conduct.

This creates a competitive advantage for the company, one allemployees are responsible for upholding.

While ethical standards are an integral part of our culture,additional measures ensure consistency and compliance. Ongoingmonitoring, self-assessment and self-correction help make certainthat our standards are consistently applied and enforced.

Compliance extends beyond our own internal assessments andactions. Governments around the world have enacted legislation toregulate business conduct. We accept these additional complianceresponsibilities as a normal business requirement, capturedby the concept of responsible corporate governance. Legal andregulatory compliance is an essential responsibility shared byeach employee.

Deeres Code of Business Conduct serves as the primary resourcfor matters related to governance and compliance.

Under all circumstances, the company remains rmly committedto the values and business ethics that de ne who we are. Toemployees, this dedication is a source of pride, honor and purposeTo all with an interest in John Deeres long-term success, it is asource of reassurance and trust.

INTEGRITY


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INNOVATION

TMENT

Our Key ConstituenciesEMPLOYEES

John Deere strives to provide a meaningful employmentexperience based, above all else, on respect for the individual.

John Deere employees are expected to operate ethically andlegally, regardless of their role in the company or where theyare located.

Employees value af liation with the company and each other.They take pride in their work and value learning from oneanother. They share a deep interest in matters affecting

the company and an intense commitment to its success.Our employees hold many values in common. However, theyappreciate different perspectives and fully embrace theopportunity to work with those of diverse backgrounds.

Deere provides employees with relevant and challenging workassignments. The company offers professional developmentand growth opportunities to help employees meet their careerobjectives. Together, we create supportive, dynamic workingrelationships that promote the recognition of individual andteam accomplishments.

Deeres success is critically dependent on attracting, developing,and rewarding highly quali ed employees. Doing so is one ofour highest, most vital priorities.CUSTOMERS

Our customers expect the best return on their investmentin the form of advanced product features, peerless qualityand enduring value.

John Deeres success is based on a fundamental commitmentto meeting customer expectations in every transaction. As wereach out to new customers in new markets, we strive for successin that same way.

Customer commitment also extends to providing exceptionalafter-sales service. Dealers use innovative systems, training andcompany support to help customers maximize the value of theirinvestment in John Deere equipment and solutions. Aftermarketsupport remains a hallmark of the John Deere Experience.

Customers deserve consistently high levels of innovation, qualityand value and nothing less.

All of us associated with the company are committed to meetingthese standards. We understand customer loyalty is sustainableonly to the extent that those who buy our products receive valuethat exceeds their investment or is greater than the value availablefrom competitors.

Adherence to this business model is essential to forming pro table,enduring relationships with our customers and achieving ourbusiness goals throughout the world.

SUPPLIERS & DEALERS

John Deeres success rests in large part on relationshipswith quali ed, committed suppliers, logistics providers andindependent dealers.

Their expert knowledge and professional support are essential tohelping the company produce, distribute and market its advancedlines of equipment and ensuring that customers bene t fromreliable service and aftermarket support. These distributionchannel members share our vision, values and deep commitmentto helping our customers be more productive and pro table.

Third-party suppliers provide much of the parts, components andtechnology found in our products. Their role in supplying qualitygoods, and delivering them to our factories or other facilitiesin a timely, dependable manner, is vitally important to our succesIndependent dealers are responsible for selling John Deereproducts and representing our brand to retail customers. Thecompany is renowned for its experienced dealers and their experproduct knowledge and aftermarket support.

Strong relationships with our suppliers and dealers help create asigni cant competitive advantage for Deere, one that is spreadingrapidly throughout the world and is indispensable to expandingour global market position.

SHAREHOLDERS

Exceptional nancial performance, sustained over a long period of time, delivers value for shareholders and motivatestheir continued investment.

Strong performance enables Deere to raise capital reliably,ef ciently and effectively. In turn, this capital allows us to improour operations and develop the products, services and solutionsthat customers require. Exceptional nancial performance,moreover, helps at tract, develop and retain talented employeeswhose contributions are vital to our ongoing success.

In delivering superior nancial returns, John Deere operatesby a code of conduct and social responsibility that enhances thecompanys reputation and further improves its appeal to theinvestment community.


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Deeres foremost responsibility is to operate a successfulbusiness, one that delivers quality products, a meaningfulemployee experience and superior investor returns.

Business success, in turn, provides the means for being a productivemember of society and ful lling our higher purpose as an enterprise.That purpose is to support higher living standards for peopleeverywhere through our commitment to those linked to the land.

Community and professional leadership is encouraged by thecompany. Employees around the world contribute their time andtalents in varied and substantial ways to improve the conditionof their communities. Our global volunteerism policy encouragesemployees to share in this manner.

The company also strives to contribute to the broader community.We provide nancial resources in support of strategic initiativesand services that bene t people throughout the world. Further,we engage in partnerships with public and private organizationsthat share our interest in community bet terment. In other cases,we provide active leadership to community growth anddevelopment endeavors.

Our commitment to public responsibility also is shown in how weconduct day-to-day business. Decisions about matters such asproduct design, factory operations and new business opportunitiesare made in the context of our long tradition of managingenvironmentally responsible, safe operations that make a positiveimpact on their local communities.

Responsible corporate citizenship is a cornerstone of John Deeressuccess. In conjunction with our record of honest dealing withcustomers and other constituents, it results in many formidableadvantages for the company.

Deere aspires to establish and maintain a workplace thatappeals to those of widely differing backgrounds, beliefsand experiences. Such differences add to our competitivestrengths and create our personality as an enterprise.

Deeres commitment to diversity is consistent with our valuesas a company, which stress integrity and mutual respect.Further, as Deere expands throughout the world and introducesnew products for new markets, an appreciation of diversityis increasingly essential to attracting committed employees,loyal customers and quality business partners.

In Deeres view, diversity goes far beyond demographicboundaries, encompassing qualities that make individuals unique.Thus, race, gender, background and age are only a few of thecharacteristics that de ne our employees and other stakeholders.It is also important to bring together employees with differentperspectives, knowledge, experiences and styles. Deere iscommitted to practices and policies that promote diversity inthe broadest sense.

In pursuit of our s trategic objectives, it is essential that we

nurture and sustain a corporate environment that promotesmutual respect, acceptance, cooperation and productivit yamong people of all backgrounds. This will help ensure thatDeere is successful in developing extraordinary talent andachieving a deeper, richer understanding of a growing globalcustomer base.

Social Responsibility Diversity & Inclusion


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Our company is highly regarded for policies and practices thatadvocate the well being of our planet and its people.

Operating processes at our facilities re ect a commitment toenvironmental protection. Energy-ef cient systems sustain air andwater quality while eliminating or reducing the waste generatedby our operations. When investing in new products, approachesor technologies, we grant preference to those with the mostfavorable environmental impact.

We promote the prudent use of natural resources while limiting,if not preventing, unfavorable impacts. Deere devotes signi cantresources to designing products that meet customer needseffectively and ef ciently while minimizing environmentaldisruption and sustaining natural resources.

Because effective product design results in improved consumersafety, John Deere products are equipped with features to reducethe risks of injury, illness and fatigue. Similarly, as productknowledge is another key to safety, we are committed to helpingour customers learn the most effective and safest ways tooperate our products. We also work with policy makers to help

formulate regulations that protect users.With respect to the well-being of our employees, continuousimprovement programs aim to create injury-free, healthyworkplaces.

Around the world, we work to fully comply with legal andregulatory requirements, often targeting performance morestringent than the law requires.

With the support of all John Deere employees and otherstakeholders, the company is committed to extending itsleadership in safety, health and environmental stewardship.

Throughout our companys history, generations ofemployees performing their work with care and passion havemade the John Deere brand a universal mark of value.

The John Deere brand commands widespread respect and is avital company asset. Our brand is a promise a promise to serveour customers and a growing world, and a promise to understandand respond to customer needs by designing and deliveringadvanced products and services. All this is meant to help ourcustomers be smarter in how they use the land.

Our promise sets us apart from the competition and helps usearn a premium position in the markets where we do business.Its how we communicate our vision to the world in a clear,consistent fashion.

As stewards of the brand, whether employees, independentdealers or suppliers, all of us are responsible for sustaining thepositive reputation John Deere seeks in the markets andcommunities we serve.

Environment, Health & Safety John Deere Brand


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Guidingprinciples English