General standard disclosure
| Strategy & AnalysisExpand | |||
|---|---|---|---|
| G4-1 | CEO statement | Chairman’s message | |
| Organizational ProfileExpand | |||
| G4-3 | Name of organization | HARMAN International Industries, Incorporated | About HARMAN |
| G4-4 | Primary brands, products, and services | We 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. | About HARMAN 2016 Form 10-K |
| G4-5 | Location of organization headquarters | Our headquarters is located at 400 Atlantic Street, Suite 1500, Stamford, CT 06901 USA | |
| G4-6 | Countries where organization operates and names of countries where there are significant operations | Our 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 |
| G4-7 | Nature of ownership | HARMAN 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 |
| G4-8 | Markets served | We 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 |
| G4-9 | Scale of the organization | Net 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 (harman.com) 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 | About HARMAN 2016 Form 10-K |
| G4-10 | Employee breakdown | At 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 |
| G4-11 | Percentage of total employees covered by collective bargaining agreements | People - Health and safety | |
| G4-12 | Organization’s supply chain | The 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 |
| G4-13 | Significant change in operation during the reporting period | Report Structure 2016 Form 10-K | Report structure and purpose 2016 Form 10-K |
| G4-14 | Whether/how precautionary approach is addressed | Elements 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 |
| G4-15 | Externally developed economic, environmental, and social charters, principles, or other initiatives to which the organization subscribes/endorses | HARMAN 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 |
| G4-16 | List memberships in associations and national or international advocacy organizations | HARMAN 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 | |||
| G4-17 | Entities included in the organization’s consolidated financial statements | SEC Form 10-K for period ending June 30, 2016. | 2016 Form 10-K |
| G4-18 | Process for defining report content and Aspect Boundaries | Materiality process | |
| G4-19 | Material Aspects identified in the process for defining report content | Indicators 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 |
| G4-20 | Aspect Boundary within the organization for each material aspect | Materiality process | |
| G4-21 | Aspect Boundary outside the organization for each material aspect | Materiality process | |
| G4-22 | Effect of any restatements of information provided in previous reports | The 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 |
| G4-23 | Significant changes from previous reporting periods in Scope and Aspect Boundaries | The 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 | |||
| G4-24 | List of stakeholder groups engaged by organization | Stakeholder engagement | |
| G4-25 | Basis for identification and selection of stakeholders with whom to engage | The 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 |
| G4-26 | Organization’s approach to stakeholder engagement | Stakeholder engagement | |
| G4-27 | Key topics and concerns raised through stakeholder engagement and how organization has responded | Stakeholder engagement | |
| Report ProfileExpand | |||
| G4-28 | Reporting period for information provided | FY2012 – FY2016 | Report structure and purpose |
| G4-29 | Date of most recent previous report | December 2014 | Report structure and purpose |
| G4-30 | Reporting cycle | Biennial | Report structure and purpose |
| G4-31 | Contact point for questions regarding the report or its contents | Caroline Moore Senior Manager – Corporate Social Responsibility | Report structure and purpose |
| G4-32 | GRI Content Index | Core "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 |
| G4-33 | Organization’s policy and current practice with regard to external assurance for report | At this time, HARMAN is not seeking external assurance for this report. | Report structure and purpose |
| GovernanceExpand | |||
| G4-34 | Governance structure of the organization, including committees of the highest governance body | HARMAN:
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 | |||
| G4-56 | Describe organization’s values, principles, standards and norms of behavior | As 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 |