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Alcoa began under the name of the pittsburgh Reduction Company in 1888, changing its name to the Aluminum Company of America (Alcoa) in 1907. The company was originally founded on a $20,000 investment to capitalize on Charles Martin Hall’s invention to smelt bauxite ore into the metal known as aluminum. Within a few years, Alcoa had developed into a model of large-scale vertical integration with control over all the inputs to aluminum production.
Since its inception, Alcoa had a very strong values-based culture. Employees learned early in their careers tha t every decision they made and everything they did must be alignedwith their company’s values. In 1985, Fred Fetterolf, then president, decided the company needed to document the values that all employeesmust live by: Integrity; Environment, Health, and Safty; Customer; Accountability; Excellence; People; and Profitability.
In the 1990s Alcoe CEO, Paul O’Neill, communicated his unswerving belief in the importance of health and safty–one of the company’s core values. As in the case with many organizations, Alcoe had imAlcoa began under the name of the Pittsburgh Reduction Company in1888, changing its name to the Aluminum Company of America (Alcoa) in 1907. The company was originally founded on a $20,000 investment to capitalize on Charles Martin Hall’s invention to smelt bauxite ore into the metal known as aluminum. Within a few years, Alcoa had developed into a model of large-scale vertical integration with control over all the inputs to aluminum production.
Since its inception, Alcoa had a very strong values-based culture. Employees learned early in their careers that every decision they made and everything they did must be alignedwith their company’s values. In 1985, Fred Fetterolf, then president, decided the company needed to document the values that all employeesmust live by: Integrity; Environment, Health, and Safty; Customer; Accountability; Excellence; People; and Profitability.
In the 1990s Alcoe CEO, Paul O’Neill, communicated his unswerving belief in the importance of health and safty–one of the company’s core values. As in the case with many organizations, Alcoe had
plemented a global ethics and compliance program, and the focus on health and safty was interwoven through the company’s program. The Alcoe program included all the basic elements specified in the U.S. Federal Sentencing Guidelines and Sarbanes-Oxley Act. Alcoe had an ethics and compliance officer who reported to the company’s CEO and board of directors, a global code of conduct, continuous ethics and compliance training for all employees, and a global helpline reporting system, to name just a few. Overall, the company emphasized that the program’s tools must be understandable by all employees, must support the company’s strong value system, and must be continually reinforced by management.
For example, in addition of continuous safty training and education programs, it was the norm at Alcoe to start all business meetings with an identification of exits, the evacuation plans in the event of an emergency, and other safty procedures. Although spacific safty procedures differ among Alcoe’s various businesses, corporate headquarters required all of its units to meet the same overall goal: zero work-related injuries and illnesses. Some managers felt that this was an unreachable target, saying that ”accidents are inevitable.” But the company has come close. In 2009, Alcoe’s lost workday was 0.118. (This number represent the number of injuries and illnesses resulting in one or more days away from work per 100 full-time workers.) In the 12-month period ending April 30, 2009,
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