Innovation that goes the distance. - · PDF fileInnovation has become a key component of our...

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Innovation that goes the distance. Goodyear Corporate Responsibility Report

Transcript of Innovation that goes the distance. - · PDF fileInnovation has become a key component of our...

Innovation that goes the distance.

Goodyear Corporate Responsibility Report

Robert J. KeeganChairman of the Board, Chief Executive Offi cer, President

Innovation....

Innovation has become a key component of our DNA at Goodyear. It is intended to improve a product,

process, or service to a point where it has greater value to our customers.

Innovation is critical to business, engineering and technology, all of which are positive infl uencers of the

global economy. We at Goodyear believe so strongly in the value of innovation that it is prominent in our

Guiding Principles.

As you review Goodyear’s accomplishments for the past year in the areas of corporate social responsibility,

note the impact of innovation success achieved by our associates.

Whether it was a computer portal to make research easier and faster; ideas and solutions to benefi t the

environment; processes to improve product quality and workplace safety; or products and services

helping you reach your destination safely – innovation powered Goodyear toward improved performance

and competitive advantage.

Goodyear’s future is inextricably linked to innovation. Consumers demand it, our customers and dealers

depend on it, and Goodyear associates deliver it. We truly believe that as a company, you either innovate

or you die. We are proud innovators, and I am proud to lead this company.

TABLE OF CONTENTS

Letter From The Chairman . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Goodyear At A Glance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Company Profi le Goodyear Guiding Principles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Seven Strategic Drivers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Financial Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Corporate Obligation Quality . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Goodyear Quality Policy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Continuous Improvement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

Environment Goodyear Environmental, Health and Safety Policy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Zero Waste To Landfi lls . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Environmental Success Stories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 Reducing the Use of Solvents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 Energy Effi ciency . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 Manufacturing Effi ciency . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 Water . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

Health, Industrial Hygiene And Safety Safety . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 Workplace Violence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 Fire Protection. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

Social Responsibility Asia Pacifi c . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 European Union . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 Eastern Europe, Middle East & Africa. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 Latin America. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 North America. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23

Product Innovation Consumer Tires . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 Commercial Truck . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 Motorcycle . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 The Innovators . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31

Goodyear At A Glance

Goodyear is one of the world’s largest tire companies. Together with its U.S. and international subsidiaries and joint ventures, Goodyear develops, manufactures, markets and sells tires for most applications. It also manufactures and sells rubber-related chemicals.

Goodyear is one of the world’s largest operators of commercial truck service and retreading centers. In addition, it operates more than 1,800 tire and auto service center outlets, where it off ers its products for retail sale and provides automotive repair and other services.

Goodyear manufactures its products in more than 60 facilities in 26 countries, with marketing operations in almost every country around the world.

Goodyear Guiding Principles

Focus intensively on our markets. We strive to help our customers build their businesses. This includes selling products and services to customers and helping customers sell their products.

Product and service quality will never be compromised.

Aggressively innovate across all activities of our business.

Promote and reward team behavior, team performance and team success.

Face reality. Be honest about our obstacles so we can develop decisive and courageous solutions.

Embrace action and reward creative risk taking.

Embrace change. Understand the past to take advantage of the future. Look forward without being held back by our past.

Keep the promises that we make to our customers. Whether internal or external customers, we must take our commitments seriously.

Play to win. To win in business, we must play with the passion and intensity that winning requires.

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Company Profi le

The Goodyear Tire & Rubber Company Headquarters, Akron, Ohio.

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Seven Strategic Drivers

Leadership: Business units continually evaluate both organizational structure and management talent to strengthen overall leadership, experience and expertise so the right people are in the right positions throughout the company.

Focus On Cash: Improved margins, more focused capital expenditures and insistence that cash expectation drives decisions and other actions improve the company’s business fl exibility.

Lower Cost Structure: Productivity gains and cost reductions – including a tight rein on expenses – improve the company’s competitive position.

Leveraged Distribution: A renewed focus on helping dealers build their businesses means that Goodyear makes the most of its industry-leading distribution network.

Build Brand Strength: Stronger focus on the customer appeal of Goodyear’s key brands leads to the right tire for the right customer at the right time and at the right price.

Product Leadership: Innovative and exciting products that are designed well, built consistently and marketed aggressively to deliver relevant technology and consumer confi dence.

Advantaged Supply Chain: A streamlined ordering process, improved accuracy and a revamped organization, creating a competitive advantage through improved customer focus and lower operating costs.

Quality

In today’s culture, although the phrase “you’re being audited” can have a negative meaning, Goodyear’s innovative Product and Process Quality Audit (PPQA) is an opportunity to show how well the company’s rigorous standards are being upheld.

Audits are conducted for health and safety, product quality and the environment. Goodyear’s manufacturing plants undergo numerous audits from several sources, including independent third parties based on ISO standards, original equipment customers for products specifi c to that customer and Goodyear’s own global quality audit team. In each case, these audits serve a vital purpose, fulfi lling objectives that refl ect the business axiom “What gets measured, gets managed.”

Financial Data(Dollars in millions, except per share amounts) Year ended December 31

2007 2006Net Sales $19,644 $18,751

Total Segment Operating Income 1,230 712

Income (Loss) from Continuing Operations 139 (373)

– Per diluted share 0.65 (2.11)

Net Income (Loss) 602 (330)

– Per diluted share 2.65 (1.86)

Total Assets $17,191 $17,029

Total Debt* 4,725 7,210

Total Shareholders’ Equity (Defi cit) 2,850 (758)

Debt to Debt and Equity 62.4% 111.7%

Weighted Average Shares Outstanding - basic 201 177

Weighted Average Shares Outstanding - diluted 232 177

Number of Associates 71,864 77,476

Corporate Obligation

* Total debt includes notes payable and overdrafts, long-term debt and capital leases due within one year and long-term debt and capital leases.

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Included with Goodyear’s Global Quality Initiative (GQI), a PPQA checks each step in the production process, ensuring the process and the fi nal product meet the company’s standards. Maintaining corporate standards ensures all global locations are measured against standards which validate

the integrity of Goodyear’s manufacturing processes around the world. Intentionally designed not to focus on technology or automation, since some manufacturing facilities have more modern equipment than others, Goodyear’s PPQA audits are tied to systems and execution – the activities and processes everybody does – to verify how well they are done.

Goodyear’s GQI was initiated in 2003, and today, customers and dealers throughout the world acknowledge Goodyear’s improved product uniformity and commitment to quality. Total spending on GQI had exceeded $210 million by the end of 2007. Beginning in 2008, Goodyear expects to accelerate its GQI spending to an annual level of approximately $60 million. Capital investments in each strategic business unit

are designed to ensure that all of the company’s manufacturing facilities have state-of-the-art process control and fi nished-product screening capability that will continue delivering a quality product consistent with a premium brand name.

Goodyear Quality Policy

We will achieve business excellence by: • Listening to our customers and meeting their needs. • Designing and producing superior products that provide value. • Managing processes to ensure consistent quality performance. • Providing service excellence. • Encouraging and expecting the creative involvement of every

associate in continuous improvement activities. • Adequately auditing quality system performance.

Continuous Improvement

Although Goodyear has built its reputation on providing high-quality, high value-added tires, its engines are getting a great deal of industry recognition as well, particularly when these engines power the capability of bringing new products from concept to market.

When Goodyear’s Eagle® F1 All Season tire was made available in July 2007 at U.S. retail locations, there were no gaps in the product lineup. Retailers had all sizes in stock, ready for sale, and the product was introduced to every customer at the same time.

One of the contributing factors was the strength of the company’s new product engine, which is the length of time required for Goodyear to take a new product from concept to market introduction.

Goodyear’s new product engine, which has earned industry recognition, provides the company with an opportunity to use speed as a competitive advantage, not only to introduce new products, but also to ensure availability. Since 2003, Goodyear has introduced over 80 new products, which is doubling market potential and creating the expectation that each year will bring at least one addition to every brand portfolio.

A matrix organization is at the heart of Goodyear’s new product engine. Matrix organizations require functions such as tire engineering, materials development, testing and Q-tech to develop people, processes and standards. Process improvement activities, following lean concepts, have reduced overall cycle time. In 2007, at Goodyear’s technical center operations in Akron and Luxembourg, on-time project performance was improved dramatically.

Corporate Obligation

Goodyear Eagle® F1 All Season

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Cross-functional integration allows project managers, who are responsible for integrating all RDE&Q functions, to fully develop and release a new product. This gives all functions the same goals, plans and milestones, focusing on innovating products instead of design processes, and putting the enterprise goal clearly in front of those who support it.

Researching new materials for tires can be extremely challenging. Goodyear RDE&Q’s Materials iPortal makes it easier and faster to fi nd information and processes needed to develop compounds quickly by making vital technical information accessible to compounders. This also serves to increase awareness within the organization about raw material pricing, global oil supply and innovation. iPortal’s name draws from its purpose: take iNFORMATION and use iNGENUITY to turn iDEAS into iNNOVATION.

North American Tire’s plant in Napanee, Ontario implemented a new visual management tool to help in the facility’s lean transformation. Throughout the facility, electronic status boards have cropped up for the plant’s value streams. Covering key manufacturing processes, the two-sided boards display information on machine effi ciency, machine status, inventory status, kanban status and work pace.

Goodyear Environmental, Health and Safety Policy

Goodyear is committed to protecting the environment, as well as the health and safety of our associates, our customers and the communities in which we operate. As a global, socially-responsible corporate citizen, we shall conduct our business in accordance with the highest applicable legal and ethical standards and strive to contribute to economic development and environmental protection, while seeking to improve the quality of life for our associates, families, communities and society in general. We want our associates to have a work environment where they feel safe and secure.

To accomplish this, we shall: • Comply with all applicable environmental, health and safety laws

and regulations as well as Goodyear’s global EHS standards. • Establish environmental, health and safety management systems

based on recognized standards, and set company-wide goals and objectives that seek to obtain continuous improvement.

• Integrate environmental, health and safety considerations into all continuous improvement eff orts and key business decisions, including the design, production, distribution and support of our products and services.

• Work with suppliers and customers to promote responsible use of our products.

• Reduce environmental impact and conserve natural resources by minimizing waste and emissions, reusing and recycling materials and responsibly managing energy use.

• Encourage and educate all associates to take personal accountability for protecting the environment and maintaining a safe and healthy workplace.

Meeting these objectives is a primary management goal and the individual and collective responsibility of all Goodyear associates worldwide. We will periodically review this policy, communicate it to associates and make it available to all stakeholders.

Zero Waste To Landfi lls

In 2006, Goodyear made a commitment to eliminate all waste disposed in landfi lls. Manufacturing operations around the world embraced this challenge.

Goodyear undertook this initiative by beginning with a closer look at how its products are made. If waste could not be eliminated in the manufacturing process itself, operations focused on reusing excess materials. Plants found ways to recycle materials or use waste materials for fuel or energy. As a fi nal preference, remaining wastes were incinerated to reduce volume, leaving only small amounts of ash for fi nal disposal.

Corporate Obligation

Environment

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In mid-year, Goodyear’s chemical operations became the fi rst to achieve total zero waste to landfi ll and, at the end of the year, all manufacturing plants in North America, Western Europe and Latin America joined an elite list of facilities committed to protecting the environment and maintaining their achievements. By the end of 2007, 55 of 58 manufacturing facilities had met the goal. Remaining operations are expected to achieve the goal in 2008.

Goodyear is committed to maintaining its achievement through constant attention to waste, using lean principles to identify additional opportunities to avoid waste generation. As markets for waste continue to develop, and with greater recognition of waste as a useful resource, Goodyear anticipates optimizing the cost of waste management in future years.

Environmental Success Stories

Goodyear Luxembourg sponsored an on-site exhibit in conjunction with World Environmental Day. The exhibit off ered a full week of information to raise awareness of environmental issues, especially waste management concerns such as waste segregation and recycling. Initially organized just

for the tire plant, the exhibit was extended to Goodyear’s European regional offi ces. With a local recycling center and a recycling consultant company to sponsor exhibits, the exhibits educated associates about the environment and Goodyear’s global environmental goals.

Chemical plants in Bayport, Beaumont and Houston, Texas and Niagara Falls, New York recycled 6 million pounds of waste that previously would have been sent to landfi lls.

Of that amount, more than 2 million pounds of waste rubber were reused as an alternative fuel, 350 tons of wood were converted to mulch for landscaping and almost 1 million pounds of bio-solids were blended into road and rail base material for the Texas Department of Transportation.

Frequently during tire retreading, organic solvents are emitted into the atmosphere. To solve this problem, Goodyear developed an innovative idea: using a cushion with built-in tack, eliminating solvents and cement. Australia, Brazil, Mexico and the United States have granted patents on this innovation. Goodyear’s innovation was acknowledged by the U.S. Environmental Protection Agency as an environmentally-responsive manufacturing solution. Tire retreading operations in the U.S., Israel and The Netherlands use the process to retread all aircraft tires. Work is ongoing to convert operations in Brazil, Thailand and Australia.

For many years, Goodyear’s tire plant in Americana, Brazil has reached out to families during its annual “Vacation In The Square,” a community event where families and children receive current information about waste recycling and other ways to tread lightly on the environment. Plant associates also participate in local environmental exhibitions, where tips are shared on environmental management. In addition, the Americana plant achieved zero waste to landfi ll early in 2007 and, in the process, reduced the number of outside waste service providers from four to one, saving energy as well as cost.

In Lima, Peru, the delivery of carbon black, a prime raw material in tire manufacturing, has moved from small bags to bulk containers, reducing the volume of waste packaging. Even bulk bags, however, have a limited life and inevitably must be discarded. The tire plant worked out an arrangement with its carbon black supplier to take back the sturdy bags. As of late 2007, the plant estimated more than 16 tons of bulk bags had already been diverted from landfi lls.

Environment

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Reducing the Use of Solvents

Goodyear believes eff ective management of raw materials, including the identifi cation of new materials that off er the high-quality product attributes customers require, will make it possible to eliminate organic solvents in tire

manufacturing within the next few years.

Initiating a “Best in Class” solvent reduction program in 2006, and sharing its success among all manufacturing plants and types of tires, Goodyear’s process builds on the foundation laid by its six sigma and lean processes. During 2007, Goodyear reduced solvent usage an additional 23 percent.

Aircraft and truck tire retreading has historically been a signifi cant source of solvent emissions. Beginning at its plant in Stockbridge, Georgia, U.S.,

Goodyear developed a process to eliminate cement use while maintaining equivalent product performance and better use of raw materials.

Energy Effi ciency

In 2007, Goodyear continued eff orts to improve energy effi ciency in all regions and to allocate energy-related capital funds. Energy-related key performance indicators are included with monthly management operations reviews.

Manufacturing Effi ciency

Goodyear’s manufacturing effi ciency was steady after adjusting for production diff erences. As measured by energy use (BTU) per pound of fi nished product, an overall 25 percent improvement has been made since 1990.

Water

Goodyear plants primarily use water for cooling materials and equipment. Other uses include steam generation, cleaning and sanitary service. Some ways that help operations to conserve water include capturing and returning process water and steam condensate, using water recycling methods and equipment (such as cooling towers) and cooling with air instead of water in appropriate applications.

Goodyear achieved dramatic water reduction, starting in late 2006 and reaching full realization in 2007. Much of the improvement is due to a modernization of Goodyear’s Akron powerhouse. The reduction was the direct result of replacing river and well water cooling systems with recirculating systems, along with reductions in cooling requirements for new equipment.

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Environment

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Manufacturing Water per Ton (Indexed)

Manufacturing BTU per Pound (Indexed)

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Safety

After beginning its “No One Gets Hurt” workplace safety initiative in 2005, Goodyear aggressively and relentlessly sought to reach an ambitious goal by the end of 2007: a world-class global OSHA-recordable incident rate of 1.0. Although Goodyear is pleased that 2007 brought another year of double-digit improvement – 21 percent over 2006 – the company fell short of reaching its goal.

Still, Goodyear saw a number of successful safety accomplishments throughout the year, as the company: • Reached a global OSHA incident rate of

1.78 in January, the fi rst month when all business units and operations collectively achieved an incident rate below 2.0.

• Celebrated 3,000 days with zero lost-time incidents at our facility in Taiwan.

• Expanded PTAS (Psychological Techniques Applied to Safety), a safety initiative focusing on behaviors that lead toincidents. PTAS was implemented in every region outside of the U.S. Goodyear Latin America has used PTAS since 1991, and leads the company in the fewest number of OSHA-recordable incidents.

• Launched a global ergonomics initiative to address issues such as lifting, pushing, pulling and repetitive motions.

• Spent more than $25 million in capital projects, transforming physical work environments to reduce the potential for injury.

Moving forward, Goodyear plans to promote safety initiatives regarding human and physical elements that will help eliminate the risk of fi res in Goodyear plants, along with initiatives focusing on wellness and housekeeping. Safety audits are planned to ensure that once an issue is resolved, it never becomes an issue again.

Goodyear also plans to build on its ergonomics initiative as a solution to workplace injuries. Ergonomics is the science of fi tting the machine to the user and optimizing workplace conditions so associates can safely use equipment necessary for work. Leveraging its long-held relationship with Humantech, the world’s foremost authority on ergonomics, collecting data through photographs, video and other documentation, and reviewing existing equipment and workstation setups, Goodyear reviewed numerous operations. Tools, equipment and workstation setups were examined in order to determine, recommend and implement ergonomic improvements. While there is no single approach to making ergonomic improvements, Goodyear and Humantech are working with safety- and ergonomically-trained engineers to upgrade work conditions.

When our associates think of Goodyear, it is important they think of a safe workplace. Goodyear believes it is important to work continuously so all will realize that, at Goodyear, safety is a core behavior.

To meet an internal customer demand for a unique process to fi nd and eliminate safety issues, Goodyear’s global health and safety organization followed continuous improvement philosophies, creating Kaizen events that focused solely on identifying and eliminating safety issues. A Kaizen event is any action intended to improve an existing work process. Kaizen events typically gather together the operators, managers and owners of a process to map the current process, make improvements and solicit buy-in from those who use the process. Targeted areas include ergonomics, equipment safety and workplace organization that contribute to at-risk actions or conditions and workfl ow issues contributing to safety incidents or hazards.

Goals are to lower incident rates, eliminate at-risk actions, improve compliance with equipment safety requirements and enhance workfl ow and productivity through improved organization.

Health, Industrial Hygiene and Safety

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Workplace Violence

Workplace violence has become a signifi cant issue in recent years, and it has not been limited to a single type of workplace or to physical assaults on people or equipment. Goodyear supports a zero tolerance position on workplace violence, including threatening or intimidating behavior, unwanted sexual attention, harassment, verbal abuse, racial discrimination or other actions and conduct which may contribute to creating a hostile work environment.

Goodyear associates who have concerns about the potential for workplace violence are encouraged to talk with their supervisor or other member of management and to visit Goodyear’s Internet Web site where detailed information can be found on warning signs, prevention, what to do and who to call. Associates who are not comfortable speaking with a manager are encouraged to contact a neutral third-party provider of hotline services which Goodyear uses to help maintain a safe and secure workplace.

Fire Protection

Industrial fi res are not considered an abnormal occurrence, particularly in an industry utilizing combustible materials, fl ammable liquids, power-generated equipment or hydraulic machinery.

In 2007, Goodyear moved to upgrade fi re protection systems in its plants throughout the world as part of its goal to attain the insurance industry’s Highly Protected Risk (HPR) designation in all of its production facilities. An HPR designation is considered to be a best-in-class status for manufacturing operations, and would place the company among the best-protected industrial facilities.

While upgrades include designing and installing new and improved water supplies, automatic sprinkler systems, fi re alarm systems and fi re-rated walls and doors, an HPR designation conveys more than just the installation of proper systems. It also includes a human factor.

Human elements include fi re protection system impairment reporting, good housekeeping, no smoking or controlled smoking, proper maintenance of fi re protection systems, good and safe conduct of hot work operations, such as cutting, welding, or grinding, compliance with recommendations from loss control reports, prompt reporting of fi re incidents and a well-trained and organized emergency organization that interacts with local municipal emergency response groups.

Goodyear plans to have the human element of its HPR philosophy completely incorporated into all plant locations by the end of 2008, and, by 2010, plans to spend $60 million to $80 million to attain best-in-class status.

Health, Industrial Hygiene and Safety

Tire Infl ation Talking Points • Research reveals that motorists

rank tires as the second-most important safety feature on vehicles next to brakes, yet only a third of consumers properly check their tire infl ation pressure.

• Improper air pressure in tires can lead to a multitude of problems, including uneven and accelerated tire wear, structural damage and even poor gas mileage.

• Checking tires for proper infl ation and tread condition is one of the most critical – and easiest – maintenance procedures for a consumer. It doesn’t take much time or sophisticated equipment. Drivers can check their tires themselves, or any Goodyear retail outlet is pleased to provide the service.

• According to recent research by the Rubber Manufacturers Association (RMA), not only do most drivers ignore their tires, most simply do not know enough about how to care for their tires. The survey found about two out of three drivers don’t even know where to fi nd the recommended proper tire infl ation pressure for their vehicles’ tires .

• Goodyear recommends motorists check tire infl ation monthly or before a long trip. Tires should be infl ated to the vehicle manufacturer’s recommendations printed on the

Tire Infl ation Talking Points Continued...

vehicle door placard or in the owner’s manual, not the maximum limit stamped on a tire sidewall.

• Proper maintenance of vehicles and tires translates into increased automotive safety, optimum driving performance and signifi cant cost savings, including better fuel mileage.

• What Goodyear has done to educate consumers:

• A consumer booklet, The Complete Tire Safety Guide, printed

by Goodyear, is available from many Goodyear retailers across the country. The guide teaches

consumers about the oft-neglected practice of tire maintenance.

• Goodyear outlets also distribute the RMA’s Be Tire Smart, Play Your PART consumer booklets. These guides stress the importance of infl ation pressure, wheel alignment, tire rotation and

visual checks of tire tread. • On www.goodyeartires.com, visitors

will fi nd extensive information on tire care, product selection and more.

Continued on page 19 Continued on page 20

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Social Responsibility

In 2007, Goodyear’s strategic charitable eff orts were fi ne-tuned to refl ect the company’s internal corporate values. Primarycommunity activities focused on safety innovation, translating a variety of initiatives to help keep citizens safe and secure in communities where Goodyear associates live, work and play. Based on global community needs, Goodyear’s safety innovation footprint takes on diff erent forms.

ASIA PACIFICWomen With Drive – Goodyear Autocare locations in the Asia Pacifi c region held car care events throughout 2007 in which women were taught care and service techniques to keep them safe on the road. They learned how a vehicle operates, ways to keep it dependable, how to check the tires, diff erences in oil quality and how to handle the most common motoring emergencies.

Test Coin Kits – Goodyear Malaysia and the Deputy Prime Minister’s Offi ce teamed up for a safety campaign supporting Malaysia’s National Youth Foundation. Approximately 50,000 Goodyear tire health check Test Coin Kits were distributed at various toll plazas around the country. The kits contained information to encourage safe driving and good tire maintenance. The kits also were part of

Goodyear’s Take You Home Safely campaign and will continue to be distributed in 2008.

EUROPEAN UNIONFirst With People – Goodyear Dunlop U.K. developed a community relations program that annually selects a local

charity partner. Birmingham Children’s Hospital was selected as the 2007 Charity of the Year. Goodyear Dunlop U.K. helped build a program to engage all associates in fundraising and community activities. In 2007, the company assisted in raising £60,000 ($122,000 USD) for an advanced burn unit at the hospital.

Slap Wrap Program – Goodyear U.K. reinforces road safety with free refl ective Slap Wraps to help motorists see youngsters and to remind children to think about safety. During winter months, with

shorter daylight hours, local roads are generally more dangerous between 3 p.m. and 6 p.m., when children are walking or cycling home from school. It is estimated that 80 percent of road incidents involving children occur during this time. In helping to

promote safety messages from the U.K.’s Department for Transport, particularly the Green Cross Code, Goodyear’s Slap Wrap campaign eff ectively reinforces the company’s dedication to all aspects of road safety.

EASTERN EUROPE, MIDDLE EAST & AFRICANelson Mandela Business Coalition – HIV/AIDS, a global health problem with devastating consequences, is extremely important to Goodyear. The company’s South Africa facilities continue to remain involved in providing assistance and support to citizens suff ering from the eff ects of the disease. Providing safe health practices to improve the quality of lives is aligned with Goodyear’s community focus.

Tire Infl ation Talking Points Continued...

Through a link, visitors can request a copy of A Guide to Tire Safety.

• With their lighted message boards, Goodyear’s famous blimps continue to spread the tire care message, urging consumers to check tire pressure and tread wear.

• At Goodyear-owned outlets, consumers can enjoy the company’s Free Aircampaign, which includes having tires checked for free, including an inspection of tread condition and tire infl ation.

• Many motorists can save about $1.50 every time they fi ll up, simply by keeping their tires properly infl ated.

• With many Americans planning long distance driving trips, and the price of gas likely to remain high, motorists all over the country will be looking for ways to make vehicle fuel mileage work in their favor. One of the fastest, easiest and least expensive ways to improve a vehicle’s gas mileage is through proper tire infl ation.

• When gas prices are high, it’s easy to see why tire maintenance is

Tire Infl ation Talking Points Continued...

so important. An underinfl ated tire doesn’t roll as smoothly or as easily. This increased rolling resistance requires more energy, which robs the vehicle of fuel effi ciency. In other words, a fl atter tire uses more gas.

Consider these fi gures: • According

to the U.S. Department of Energy, underinfl ated tires alone cost the country more than 3.5 million gallons of gasoline each day. According to those fi gures, that could amount to nearly 392 million gallons over four months, or the equivalent of more than 20.2 million barrels of crude oil. At a projected average of $3 per gallon, motorists could pay more than $1.1 billion dollars in unnecessary fuel costs.

• The National Highway Traffi c Safety Administration says that one in every three cars in the U.S. has at least one underinfl ated tire.

That means more than 44 million people in the U.S. are driving with underinfl ated tires.

Continued on page 21 Continued on page 22

Social Responsibility

22 23

Goodyear has played a leading role in the establishment of the Nelson Mandela Business Coalition Against HIV/AIDS, forging partnerships with neighboring businesses, the community, government and non-governmental organizations to help prevent the spread of the disease and manage its eff ects.

LATIN AMERICADriving School – In Mexico, Goodyear has partnered with its local retail dealers and the NASCAR® Corona Series to promote safe driving habits, especially among young drivers. Safe driving workshops are organized by volunteers from local dealers in cities visited by the NASCAR® Corona Series. Three-hour courses taught by Corona Series drivers cover topics such as responding to emergencies, proper sitting position, driving, turning and braking techniques.

Medical Day – Goodyear Venezuela associates partnered with the local Rotary Club and medical laboratories in the area to distribute basic medical kits and provide medical services including pediatric consultations, vaccinations and laboratory analyses.

NORTH AMERICAChild Safety Seat Program – Goodyear’s Akron, Ohio, headquarters partnered with the Safe Kids Summit County Coalition, Akron Children’s Hospital and the Akron American Automobile Association to provide support for the Safe Kids Child Safety Seat Inspection program. Fifteen outreach agencies assisted qualifying families who were provided with free child safety seats and training on how to properly install the seat and securely fasten children. Through the program’s community outreach, program coordinators learned that up to 85 percent of child safety seats inspected by the coalition were improperly installed. The Child Safety Seat program drives home Goodyear’s focus on helping citizens get to their destinations safely.

Highway Hero – Founded in 1983, Goodyear’s Highway Hero Program continues to be a fl agship program that recognizes professional truck drivers and highway safety. It acknowledges the often unnoticed, life-saving rescues and roadside assistance they provide as their jobs take them across North America, Latin America and Asia-Pacifi c highways. In North America, truck industry journalists select nominees and one driver annually receives the title of Goodyear Highway Hero. The winner is presented with a $10,000 U.S.

Savings Bond and a specially-designed Goodyear Highway Hero ring.

Goodyear is also engaging the public in safe transportation by sponsoring public service announcements on radio stations globally. The messages promote pedestrian safety during school days, encourage drivers to drive defensively, discourage the use of cell phones while driving and highlight the need for tire safety during all seasons.

Social Responsibility

Tire Infl ation Talking Points Continued...

• The average consumer could improve their gas mileage by 3.3 percent by simply keeping their tires infl ated to the proper pressure. For the average driver in the U.S. – with a 15-gallon fuel tank – that’s a savings of about $1.50 on every fi ll up.

• In fact, further data reveals that 75 percent of U.S. drivers are likely to wash their cars each month, while only 14 percent properly check their tire pressure.

• With the free air pump disappearing from gas stations across the country, consumers have to look harder for a place to infl ate their tires and likely end up paying for it at a coin-operated pump. A consumer’s best bet is to fi nd a knowledgeable tire professional to help them get the most fuel effi ciency out of their tires.

Many motorists can save about $1.50

every time they fi ll up, simply by keeping

their tires properly infl ated.

Lighting a candle for a better future….From the left, back are Khayalethu Koliti (General Motors South Africa), Zolani Tshanga, Mxolisi Gitywa and in front Johnatan Uithaler and Ray de Silva – all employees of Goodyear South Africa.

NASCAR ® is a registered trademark of the National Association for Stock Car Auto Racing, Inc.

Goodyear associates around the world continue to donate time, items and money to worthy causes that improve the quality of life. Donations

of blood through the Red Cross are one of the main avenues of support to improve the health of our neighbors. Originally launched at the company’s headquarters, the Goodyear Good Deed Associate Volunteer Program provides opportunities for associates to donate cell phones, frequent fl yer miles, toys, food, time and expertise. Associates join volunteers in activities such as building homes and working to improve reading scores at

elementary schools. Participation in fundraisers provides research dollars for diseases, including diabetes, children’s illnesses, heart disease, cancer and multiple sclerosis.

Goodyear continued its Free Air campaign to promote proper tire care, in which consumers can visit any Goodyear-owned retail store for a free tread check and tire inflation. No appointment is necessary, and the tires can be any brand, purchased at any store.

Goodyear anticipates its community focus on safety innovation will continue to grow as it emphasizes safe transportation and safety for children and families. Whether through innovation or initiatives that have proved their ongoing value, Goodyear remains committed to providing opportunities for healthy living, educational advancement and growth in the civic and cultural arenas of the communities where associates live and work.

Ethical Business Practices

Seeking innovative ways to reinforce how ethical behavior is embedded in daily activities, Goodyear’s Corporate Compliance and Ethics department created an ethical awareness campaign in the company’s North American retail stores and manufacturing locations. Covering topics from Goodyear’s Business Conduct Manual, each location receives posters, bulletins and talking points so managers can lead quarterly discussions on each issue.

All associates are given a copy of the Goodyear Business Conduct Manual, which defi nes the behaviors necessary to support Goodyear’s high standards and reiterates the fact that all employees are required to comply with all applicable laws and practices. Goodyear expects every associate to know and understand the company’s ethics policy, and every associate must agree to act in accordance with it. Salaried associates are required to certify they have read the Goodyear Business Conduct Manual. Recertifi cation, required on a regular basis, is a condition of employment.

Suppliers, contractors and other persons and organizations doing business with Goodyear are directed to the Business Conduct Manual on the company’s Web site so they can read and be aware of its obligations and requirements. A copy of the Business Conduct Manual is available on:http://www.goodyear.com/investor/pdf/business_conduct_manual.pdf

Additionally, associates are encouraged to report any actual, suspected or potential misconduct to either management or the corporation’s ethics hotline. Available toll-free 24 hours a day, 7 days a week from anywhere in the world, associates can report anonymously or provide their name and contact information. Every allegation is investigated and Goodyear strictly prohibits any retaliation for reports of violations made in good faith.

Responsible for compliance, ethics and privacy issues on a global basis, Goodyear’s Corporate Compliance and Ethics department provides regular board of director updates on ethics and compliance activities, and committee members take an active role in reviewing the activities and processes designed to uphold Goodyear’s commitment to ethical behavior.

Goodyear’s leadership team is committed to ensuring business is conducted in a way that promotes ethical behavior and legal compliance, creates a work environment that fosters mutual respect, openness, individual integrity and remains steadfast in eff orts to maintain the good name of Goodyear.

24 25

Social Responsibility

Human Resources

Engineering Career Day for Young Women

Since 2001, Goodyear has been hosting an annual Engineering Career Day for Young Women. Its purpose is to inform young people in grades 6 through 12 about opportunities and careers in various engineering disciplines. Approximately 300 students, parents and teachers attend the event, which includes videos, hands-on activities, panel discussions and an information fair.

INROADS

As with other employers, Goodyear participates with INROADS, a non-profi t organization that trains and develops talented minority youth for professional careers in business and industry. Goodyear hired two INROADS candidates in 2007 for its RDE&Q organization. Work is underway to expand the company’s support signifi cantly in 2008 by off ering positions to a greater number of candidates and for various organizations, including Finance and Information Technology, as well as the company’s technical organization.

Formula SAE

Formula Society of Automotive Engineers (FSAE) Series competitions challenge teams of university undergraduate and graduate students to conceive, design, build and compete with small, formula-style, autocross race cars. Teams typically spend eight to twelve months designing, building, testing and preparing vehicles for competition. FSAE’s East event attracts approximately 130 teams from universities throughout the world and has received corporate-wide support from Goodyear since 1999. In 2007, Goodyear participated for the fi rst time in the FSAE West competition in Fontana, California, which had 82 registered teams. Goodyear also held its fi rst FSAE Shoot-Out competition this year, hosting students from 14 colleges and universities at its test track in Akron.

Teams competed in various events, including skidpad, acceleration and endurance. They also were given an opportunity to meet with company representatives to discuss employment opportunities.

ACESS Scholarship

The Akron Council of Engineering and Scientifi c Societies (ACESS) works to enhance the technical environment in the Greater Akron area through coordination and cooperation with technical societies, industry and academia. In 2007, Goodyear provided two $1,500 scholarships to diversity-based students. One recipient was an engineering student at the University of Akron, while another was a student majoring in computer science at Kent State University in Kent, Ohio. In addition, a former ACESS Scholarship recipient was hired by the company following graduation.

Employment Practices

As a global corporate citizen, Goodyear takes its corporate responsibilities seriously and strives to achieve and maintain compliance with applicable international, federal, state and local laws in all its facilities. Goodyear regularly submits compliance audits of its employment practices to the U.S. Department of Labor to help ensure that its practices, systems and processes are aligned with all applicable rules and regulations.

Global Human Rights

Goodyear’s policy on global human rights is part of our commitment to ethically and socially responsible business practices. Spanning our global operations, Goodyear has a zero tolerance policy and is committed to maintaining an inclusive workplace, free of harassment based on a person’s status, such as gender, race, age, creed, religion, disability, ancestry, national origin, sexual orientation or other characteristics protected by law.

26 27

Social Responsibility

Goodyear’s voluntary employment commitment specifi cally prohibits all forms of prison labor, indentured labor, slave labor or other forms of compulsory labor, and Goodyear does not engage in or condone the unlawful employment or exploitation of children in the workplace.

Goodyear recognizes and respects associates’ rights and freedom to join organizations of their own choosing or to refrain from joining organizations. No associate shall be subject to dismissal, discrimination, harassment, intimidation or retaliation due to membership in a lawful workers’ association or union.

Goodyear’s global human rights policy may be accessed at: http://www.goodyear.com/corporate/about/policy_human_rights.html

Product Innovation

Consumer Tires

• Goodyear Eagle® ResponsEdge™ – Top-rated tire in the “Grand Touring All-Season” category in tirerack.com’s consumer survey results, Dec. 2007

• Goodyear Eagle® F1 All Season – First consumer tire off ered with both sidewalls reinforced with carbon fi ber

• Goodyear Eagle® F1 Asymmetric – Awarded Popular Mechanics “Editors Choice Award,” Nov. 2007– Declared “Best Tire” by U.K.’s Autocar magazine, winning front-wheel drive

and rear-wheel drive competition– Named “Dominant Tire” by Evo magazine, fi nishing fi rst in wet and

dry competition– Received “Very Recommendable” rating (highest possible recommendation)

from Sport Auto, Powercar and Auto Zeitung magazines, Germany

• Goodyear Duragrip

• Goodyear UltraGrip® Extreme

• Goodyear Cargo Vector™ 2

• Goodyear and NASCAR® signed a fi ve-year extension of the Goodyear exclusive tire supply agreement on Feb. 3, making Goodyear the exclusive supplier of race tires to NASCAR’s top three racing series through 2012

• Dunlop SP Sport® 7000 all-season performance tire, original equipment on redesigned 2008 Honda Accord

• Dunlop SP Sport® 600 asymmetric ultra high-performance tire, original equipment on redesigned 2008 Subaru WRX STI sports car

• Dunlop® SP Sport Maxx® GT

• Dunlop® Grandtrek® Touring A/S

• Dunlop® SP Sport® FastResponse

• Dunlop® SP Winter Response

• Fulda EcoControl

28 29

Social Responsibility

Goodyear Eagle® F1 Asymmetric

Goodyear Eagle® F1 All Season

Dunlop® SP Winter Response

Product Innovation

NASCAR ® is a registered trademark of the National Association for Stock Car Auto Racing, Inc.

Commercial / Truck

• Goodyear Unisteel® G949 RSA™ commercial light truck tire featuring Armor Max™ Technology for regional highway and city street use

• Goodyear Unisteel® G947 RSS™ commercial light truck tire featuring Armor Max™ Technology for regional severe service

• Goodyear Unisteel® G933 RSD™ commercial light truck drive tire featuring Armor Max™ Technology for urban streets and interstate applications

• Goodyear Unisteel® G971™ commercial light truck off -road tire featuring Armor Max™ Technology for logging, heavy construction and mining sites

• Goodyear Marathon® LHS II

• Goodyear Marathon® LHD II

• Goodyear Marathon® RHD

• Dunlop® SP 384™

Motorcycle

• 2007 Dunlop® Sportmax Roadsmart

30 31

Goodyear Unisteel® G949 RSA™

Dunlop® SP 384™

Product Innovation

The Innovators

While developing Goodyear’s 2007 Corporate Responsibility Report, associates around the world were asked to provide examples of product or process improvements which they considered innovative. We thank all associates for their contributions, including:

Charlie Blackledge, U.S., for a safety Rapid Improvement Activity (RIA) process, the application of lean initiatives to improve workplace safety.

João Antonio Silveira Braidotti, Brazil, for a number of projects related to environmental improvements, including zero waste to landfi ll, “Vacation In The Square” and Ecoshow participation.

Steve Cronin, U.S., for creation of the Materials iPortal, to facilitate the development of compounds.

Norbert Majerus and Jeff Mathews, U.S. and Luxembourg, respectively, for joint information on a lean pull system to improve development time for new products.

Ramen Majumdar, U.S., for a process improvement to help eliminate solvents and cements in tire retreading.

Alexander Bardales Rosales, Peru, for an improvement in recycling and reusing carbon black containers.

Céline Schorp, Luxembourg, for coordination of the region’s Global Environmental Days.

Ray Smiley, Sr., U.S., for developing alternate solutions to disposition waste from chemical plants.

This report is printed on 100% post-consumer recycled process chlorine-free paper. Printed with soy ink.

www.goodyear.com/corporate/about/responsibility

©2008 The Goodyear Tire & Rubber Company. All rights reserved. 03/08-031171