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Good jobs and compensation packages make employed workers a positive economic force throughout the world, and UPS is one of the world’s largest private employers. Our global workforce of 397,123 people includes 76,885 people located outside the United States. In 2012, our expense for full-time and part-time employees was US$33.1 billion in wages and benefits. While our global compensation and benefit programs vary based upon the competitive market and local regulation, our broad performance goal is to compensate our workers well so that they will view UPS as an employer of choice. (Further information on this topic is provided in “Workplace—Goals and Performance”). Our investment in UPS employees generally includes competitive wages and salaries, training, health care, savings plans, and incentive programs.
Note that UPS pays the same standard entry-level hourly wage to both genders at our significant locations of operation. We take this approach due to our business policies, our compensation policies, and our contractual agreements with unions.
In 2012, UPS distributed US$2.1 billion in dividends to UPS shareholders. We keep our balance sheet strong and we use conservative financial projections in our planning. Combined with disciplined cash management, these attributes have enabled us to increase or maintain our dividend per share for more than 40 years.
The taxes that UPS pays to local and national governments around the world help fund schools, community infrastructure, and services. In 2012, UPS paid US$3.9 billion in taxes worldwide.
The UPS Foundation
Financial support for The UPS Foundation, our philanthropic arm, comes entirely from the profits we earn in our business. In 2012, we contributed US$97.5 million to the Foundation, which substantially directs all the funding it receives to grant recipients within the following 12 months.
UPS has an indirect economic impact on its markets by making it easier for small and diverse businesses everywhere to participate in the global economy. We achieve this result by providing local businesses with two vital resources. The first is local procurement contracts. The second is local support for regional and international transport and logistics, which is especially vital to businesses seeking access to the global marketplace.
UPS has had a formal supplier diversity process in place since 1992. As part of that process, we promise diverse suppliers that we have designated procurement professionals in our corporate, regional, and local offices to help them understand our requirements and qualify to meet them. In 2012, we spent approximately US$850 million in procurement with diverse businesses. In a majority of cases, these businesses are locally based suppliers because of the highly distributed nature of our business.
UPS’s requests for proposals (RFPs) from Tier 1 suppliers include requests for information about their sustainability policies, practices, and performance. Based on our own experience—and as a supplier to companies of all kinds— we know that adopting sustainable business processes takes time and is best achieved through collaborations, partnerships, and successful business relationships as much as it does from philosophy or technology. We therefore look for opportunities to encourage suppliers to advance their sustainability by awarding them our business.
Support for Entrepreneurs
Our 70,900 points of retail presence around the world provide small and diverse businesses with local, one-stop access to our global network, including the products, services, and tools they need for shipping locally and internationally. This latter form of support is particularly important for small and diverse businesses, which make up a majority of the world’s importers and exporters. In emerging economies, such businesses may find little support from underdeveloped commercial logistics infrastructures. In developed countries, they may face far more complex and time-consuming export/ import processes due to increased security concerns and government regulation of global commerce.
UPS also offers entrepreneurs the opportunity to own a franchise of The UPS Store®, which has more than 4,700 locations around the world. In the U.S., our financing subsidiary, UPS Capital®, helps small and diverse businesses finance trade and get access to government-backed loan programs.
Additional Economic Indicators
Our procedures for local hiring are substantially the same everywhere in the world, with appropriate recognition for local laws and customs. This is because of the nature of our business, which is the operation of a single, seamlessly integrated logistics network that can make a promise to a customer in one country and keep it in more than 220 others. Therefore the skills we require, and the work our employees must do, are strongly consistent across geography and culture. The proportion of people, including managers, that we hire in-country is exceptionally high. Among fulltime management employees, more than 99 percent of our people are working in their home country (only 202 expatriates out of 45,527 full-time management employees).
Infrastructure investments and services provided primarily for public benefit are discussed in “Community Safety”.