HARMAN reports on our sustainability performance using the Global Reporting Initiative G4 reporting guidelines, which strive for transparency and comparability in corporate sustainability reporting.

General standard disclosure

Strategy & AnalysisExpand
G4-1CEO statementChairman’s message
Organizational ProfileExpand
G4-3Name of organizationHARMAN International Industries, IncorporatedAbout HARMAN
G4-4Primary brands, products, and servicesWe believe we are a leader in the design and engineering of connected products and solutions for automakers, consumers and enterprises worldwide, including connected car systems, audio and visual products, enterprise automation solutions and connected services. We have developed, both internally and through a series of strategic acquisitions, a broad range of product offerings sold under renowned brand names in our principal markets. Our AKG®, AMX®, Crown®, Harman Kardon®, Infinity®, JBL®, JBL Professional, Lexicon®, Mark Levinson®, Martin®, Revel®, Soundcraft® and Studer® brand names are well known worldwide for premium quality and performance. Our software solutions power mobile devices and systems that are designed to be connected, integrated, personalized and adaptive across all platforms, from work and home, to car and mobile.

We report our business on the basis of four segments. Our Connected Car, Lifestyle Audio, Professional Solutions and Connected Services segments are based on our strategic approach to the markets and customers we serve. Other primarily includes compensation, benefit and occupancy costs for corporate employees, net of reporting segment allocations, expenses associated with new technology innovation and our corporate brand identity campaign.
2016 Form 10-K
G4-5Location of organization headquartersOur headquarters is located at 400 Atlantic Street, Suite 1500, Stamford, CT 06901 USA
G4-6Countries where organization operates and names of countries where there are significant operationsOur products are sold worldwide, with the largest markets located in the United States and Germany. In the United States, our primary manufacturing facilities are located in Kentucky, Indiana and Washington. Outside of the United States, we have manufacturing facilities in Austria, Brazil, China, Hungary, India, Germany, Mexico and the Netherlands. To reflect the One HARMAN system, we also included our non-manufacturing legacy Symphony Teleca locations.Operations
2016 Form 10-K
G4-7Nature of ownershipHARMAN is a publicly traded company. Our common stock is listed on the New York Stock Exchange and is reported on the New York Stock Exchange Composite Tape under the symbol HAR.2016 Form 10-K
G4-8Markets servedWe believe opportunities exist to grow our business in all of our business segments in emerging markets such as Brazil, Russia, India and China (“BRIC”).About HARMAN
2016 Form 10-K
G4-9Scale of the organizationNet sales: FY2016 net sales were $6.9 billion compared to $6.16 billion in FY2015, an increase of 12 percent. Excluding the impact of foreign currency translation and acquisitions, net sales increased nine percent compared to the prior year.

HARMAN ( designs and engineers connected products and solutions for automakers, consumers, and enterprises worldwide, including connected car systems, audio and visual products, enterprise automation solutions; and connected services. With leading brands including AKG®, Harman Kardon®, Infinity®, JBL®, Lexicon®, Mark Levinson® and Revel®, HARMAN is admired by audiophiles, musicians and the entertainment venues where they perform around the world. More than 25 million automobiles on the road today are equipped with HARMAN audio and connected car systems. The Company’s software services power billions of mobile devices and systems that are connected, integrated and secure across all platforms, from work and home to car and mobile. HARMAN has a workforce of approximately 29,000 people across the Americas, Europe, and Asia and reported sales of $6.9 billion during the 12 months ended June 30, 2016. The Company’s shares are traded on the New York Stock Exchange under the symbol NYSE:HAR
2016 Form 10-K
G4-10Employee breakdownAt June 30, 2016, we had approximately 26,000 full-time employees (29,000 total), including approximately 7,300 employees located in North America and approximately 18,700 employees located outside of North America.People - Employees
2016 Form 10-K
Key data summary
G4-11Percentage of total employees covered by collective bargaining agreementsPeople - Health and safety
G4-12Organization’s supply chainThe Company’s Standard Terms and Conditions require its suppliers to agree to the Company’s Supplier Code of Conduct (the “Code of Conduct”), which conforms with SA8000’s guidance and includes Labor Standards and is also available on the Company website. The Standard Terms and Conditions and the Code of Conduct are incorporated into any supplier contract with the Company.

HARMAN’s Supply Chain includes involvment from various teams, including Sales & Distribution, Production Planning, Material Management, and Electronic Data Interchange (EDI). Our Sales and Distribution team receives orders, ships finish goods to customers, and completes the processing of an order. Our Production Planning team calculates requirements and creates the order, ensuring production requirements are met. Material Management involves updating our system or generating scheduling agreement lines, planning and checking inventory, and processing supplier-sent information. Lastly, our Electronic Data Interchange mapping creates sales orders and schedule lines and ensures outbound shipment information is sent properly in accordance with sales and distribution.

An overview of our supply chain begins with a customer request, which is received using EDI and mapped to HARMAN SAP. Requirements for production and purchased materials are generated and transmitted to proper suppliers. Once suppliers receive raw materials and complete production, supplier finished goods are shipped to HARMAN, who then produces the finished goods for the customer, packages the product according to sales specifications, then HARMAN ships the final product to the customer.
Operations - Supply chain
G4-13Significant change in operation during the reporting periodReport Structure
2016 Form 10-K
Report structure and purpose
2016 Form 10-K
G4-14Whether/how precautionary approach is addressedElements of the precautionary approach have been integrated into the organization’s approach to risk management. New products and capital investments are reviewed for potential impacts to the environment and potential risks are identified and addressed accordingly.Why it matters - Governance and leadership
G4-15Externally developed economic, environmental, and social charters, principles, or other initiatives to which the organization subscribes/endorsesHARMAN has structured its sustainability strategy around the CERES principles and roadmap. In FY2016, HARMAN refreshed the Materiality Assessment using the GRI G4 guidelines as a base for the evaluation.

The Chief Executive Officer at HARMAN has made a commitment to the United Nations Global Compact. Participation in the Global Compact is a widely visible commitment to the implementation, disclosure and promotion of its ten universal principles.

HARMAN has certified key production facilities to ISO 14001, the global environmental management standard.
Chairman’s message
Materiality process
Cross references and stated omissions
Why it matters - Compliance
G4-16List memberships in associations and national or international advocacy organizationsHARMAN participates in a number of technical and professional memberships around the world, as a company and as individual employees.

CTE engagement with lobbyists (research into waste, energy requirements for consumer products)
Committee Encouraging Corporate Philanthropy
Business Roundtable
US India Business Council (USIBC)
Why it matters - Governance and leadership
Identified Material Aspects and BoundariesExpand
G4-17Entities included in the organization’s consolidated financial statementsSEC Form 10-K for period ending June 30, 2016.2016 Form 10-K
G4-18Process for defining report content and Aspect BoundariesMateriality process
G4-19Material Aspects identified in the process for defining report contentIndicators identified as "material" to HARMAN are detailed in our Cross References and Stated Omissions and Materiality Process. We also present additional indicators not identified as "material" in the 2016 Materiality Assessment refresh in this report. This includes environmental data and initiatives, community and social outreach, and product innovations and other aspects that characterize our business. We believe these indicators are important to our internal operations and business as well as to our stakeholders.Materiality process
Cross references and stated omissions
G4-20Aspect Boundary within the organization for each material aspectMateriality process
G4-21Aspect Boundary outside the organization for each material aspectMateriality process
G4-22Effect of any restatements of information provided in previous reportsThe Key Data Summary Table reflects an expanded scope of facilities from that reported in the FY2011 and FY2014 reports.Report structure and purpose
Key data summary table
G4-23Significant changes from previous reporting periods in Scope and Aspect BoundariesThe Key Data Summary Table reflects an expanded scope of facilities from that reported in the FY2011 and FY2014 reports.Report structure and purpose
Key data summary table
Stakeholder EngagementExpand
G4-24List of stakeholder groups engaged by organizationStakeholder engagement
G4-25Basis for identification and selection of stakeholders with whom to engageThe initial basis for determining stakeholder engagement was developed in 2011 as part of the CERES Roadmap process. In FY2016, HARMAN refreshed the Materiality Assessment using the GRI G4 guidelines as a base for the evaluation.Stakeholder engagement
G4-26Organization’s approach to stakeholder engagementStakeholder engagement
G4-27Key topics and concerns raised through stakeholder engagement and how organization has respondedStakeholder engagement
Report ProfileExpand
G4-28Reporting period for information providedFY2012 – FY2016Report structure and purpose
G4-29Date of most recent previous reportDecember 2014Report structure and purpose
G4-30Reporting cycleBiennialReport structure and purpose
G4-31Contact point for questions regarding the report or its contentsCaroline Moore
Senior Manager – Corporate Social Responsibility
Report structure and purpose
G4-32GRI Content IndexCore "in accordance" report with GRI G4 standards with omissions identified. We also present additional information not specific to GRI or specifically identified in our 2016 Materiality Assessment. This includes environmental data and initiatives, community and social outreach, and product innovations and other aspects that characterize our business.Report structure and purpose
G4-33Organization’s policy and current practice with regard to external assurance for reportAt this time, HARMAN is not seeking external assurance for this report.Report structure and purpose
G4-34Governance structure of the organization, including committees of the highest governance bodyHARMAN:
  • has more than 45 percent of the Board as independent non-executives
  • Board of Directors made up of 27 percent women
  • has an audit committee, the majority of whose members are independent non-executives
  • discloses the remuneration of company directors - available in the annual proxy statement
The Board of Directors is elected by the stockholders to oversee management and to ensure that the long-term interests of the stockholders are being served. The Board reviews and approves the corporate strategy. The Corporation’s day-to-day business is conducted by its officers and employees under the direction of the Chief Executive Officer with oversight and counsel from the Board.

Dinesh C. Paliwal - Chairman, President, and Chief Executive Officer
Ann McLaughlin Korologos - Chairman, Rand Corporation Board of Trustees
Adriane M. Brown - President and Chief Operating Officer, Intellectual Ventures
John W. Diercksen - Former Executive Vice President, Verizon Communications
Edward H. Meyer - President, Grey Global Group
Rob Nail - CEO and Associate Founder - Singularity University
Avi Reichental - Founder, Chairman and CEO, XponentialWorks
Kenneth M. Reiss - Former Partner, Ernst & Young
Hellene Runtagh - Former President and CEO, Barwind Group
Frank Sklarsky - Executive Vice President and Chief Financial Officer of PPG Industries, Inc.
Gary Steel - Former Member of the Group Executive Committee ABB Ltd.
Why it matters - Governance and leadership
HARMAN Board of Directors
Ethics & IntegrityExpand
G4-56Describe organization’s values, principles, standards and norms of behaviorAs part of its corporate Code of Ethics, it is the policy of HARMAN that each of its employees, including senior officers and Board shall be accountable for, among others, complying with federal, state, and local laws applicable to HARMAN as well as those of private and public regulatory agencies. HARMAN’s Code of Ethics further requires its employees to proactively promote ethical behavior among subordinates and peers, and to promptly report of any violations internally.Why it matters - Governance and leadership
Operations - Compliance and standards