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1HTESH A!,. LETTERHEAD FORM G EN - 55 REV. 7-66 TO (Name and Location) C. E. Steel - Corpus Christi FROM (Name one* Location) E. H. Tiffany REF. NO. REF. NO. DATE 1/26/71 PLAINTIFF'S EXHIBIT CEL-708 Here's a new booklet "What Celanese Is Doing About Some Of The Problems Of Our Times." If we've written it as skillfully as we should, it won't need any description in this letter. We show it to you as something we are offering to various individuals and institutions who are important to us or who have expressed curiosity about us. It is available for distribution within your organi zation to the extent that you desire. The booklet will be sent to members of your organization only upon your express request which, incidentally, we solicit. EHT:bf ,U J- W & T YltH FEB t r<',/j / /f CES_______ WEI W0C_X_ WJH RCW______ 1'- RAS_ _ _ _ _ _ _ PAC_ W6K WTM_ _ _ _ _ _/PG EVK / PJV_ PatSflT AWM ENW ___ GJF_ _ WET. ___ DRN. __ RMtK >fhflV -A* ti RETURN TO LIBRARY COPY YOUR COPY ROUTE TO INTERESTED PARTIES. CENTRAL FILES COPY------ 308586 JAN 2 8 1971 JlMPSife /StsS^.S'a-M .i-Atf' -'V. ii' yi Ci?!ar.er;e Corporation. 022 fink A^oiz-fi N--.v York. ji.Y. !C0'3o, *./ r rrr <r"i i , \o? - ** n -<ir\11<--r"\oi -s` V_-2 r J". ,<i44fc3^a "*S.*v O1 & - *1 a *? .1.7 P.OKI18 OT Is: X' " ^7 "' U.i U til |i \ oc l;.. * ,(t. .* A.j,l3 x.i!. v v 7 ^r;M.-rj ly-i-% t Z''i ^ \ TX Tr, \ TiTP EDUCATION EQUAL CGTORTUNITY EMPLOYMENT ASVMCANCE TO SMALL BUSINESSES j rwrr,' ';f.` USJMG CONSUME INFORMATION AMD ASSURANCE I We are sometimes asked what a corporation like Celanese is doing, above and beyond its role as a supplier of useful prod ucts, to improve the qual ity of life for all of us. We try to answer that question in this booklet, not because we think we have done enough or cannot do more, but because we believe it is a question that deserves an answer these days. * f f. r. * \ i i-. j r COPYRIGHT 1970 CELANESE CORPORATION, 522 FIFTH AVENUE, NEW YORK, N.Y. 10036 308589 Environment Celanese is a chemical company. Its processes use enormous amounts of fuel, water and raw materials. As with virtually every chemical reaction, these processes produce a degree of waste along with a high percentage of useful, needed products. Aware of its responsibility, this corporation has a long-standing commitment to conserve the environments in which its plants operate and to control plant wastes. Celanese saw the protection of our environ ment as a necessity more than 30 years ago. We initiated treatment of solid waste in the early 1930s. We hired, in 1946, the first of a line of highly qualified environmental experts, long before most major corporations con sidered doing so. Technical studies of liquid effluent treatment began in 1947 and later, air emission studies were initiated. These studies are repeated at regular and frequent intervals and will con tinue as Celanese continues to seek ways to minimize its impact on the environment. To translate its intentions into deeds, Celanese has spent many millions of dollars, in capital expenditures and operating costs, on environmental safeguards. When its newest chemical plant was built in 1967, for example, 15 cents of every construc tion dollar went into pollution abatement costs. At the same time that the most modern abatement systems are being designed and built into new plants, the corporation is continuously updating pollution abatement systems at its existing plants. It is a job which never will be completed and one for which substantial new technology still has to be developed. Pollution control is an enormously complex technical matter. Different observers are likely 2 to come to quite different conclusions as to what should be done in particular circum stances and how therefore to allocate available funds. For instance, you can sometimes reduce water pollution by separating waste from the water and burning it. But that often causes air pollution. Which is worse? What is the best balance? As a result of questions like these, regulation varies radically from one area to another. Celanese cooperates with government officials at all levels to meet all applicable environ mental maintenance requirements and, in many cases, it exceeds them. In 1969, Celanese spent large sums (more than $1.00 per share of common stock) on pollution control programs and associated research. More importantly, Celanese is trying to engineer process improvement and control devices that will comply not only with today's standards but also with those more rigorous standards of the future which, the corporation believes, will be necessary. A current and detailed analysis of Celanese' pollution abatement efforts at all plants indicates that its performance is ahead of the chemical industry as a whole and unquestion ably beyond that of most municipalities. Not so long ago, inspectors from the State of North Carolina Department of Water and Air Resources referred to one of our waste treat ment plants as an example of model treatment facilities for handling industrial waste. And recently, a group of students from a Texas uni versity--after studying the pollution control program at one of our chemical plants in that state--marched four miles to the plant to present the manager with a citation for a job well done and a request for the continuance of our good efforts. The students recognized-- as we all must--that pollution abatement is not 3 308590 f, t ! a one-time operation but must be a continuous program. It would be fair to say that Celanese has solved many, though not all, of its problems, is hard at work on others and undoubtedly will encounter problems not yet recognized. The corporation is doing all it can to find these problems before the problems find Celanese. Education Celanese is active in a variety of educational programs directly related to the urban crisis. We fund: An 8-week secretarial training and liberal arts program, now in its fourth year, at Hampton Institute in Virginia for young black high school graduates at the end of which they receive positions at Celanese. A 12-week special training program designed to prepare disadvantaged young people--both black and white but pre dominantly black--for jobs as laboratory assistants. This program, inaugurated in our research facility in Charlotte, North Carolina, is now in progress at Greenville (South Carolina) Tech, where lab assist ants are being trained for jobs at our nearby Greer plant. An interesting new program to upgrade reading skills for black and Puerto Rican high school students in New York City using the Celanese videotape studio as an instant replay medium for exploring and focusing on the students' personal identity and reinforcing their desire to learn. We help fund: The Stevens Technical Enrichment Pro gram (also known as STEP). This is a summer program for educationally and economically disadvantaged high school students with promising educational 4 ; j potential. The program is run by Stevens Institute of Technology with the support of various industries including Celanese. The program has graduated 30 students, 25 of whom are now enrolled in college. We are also serving by: Volunteering more than 70 teaching aides in response to a student overflow at the City University of New York to ease the academic strain at Baruch College. This program is a unique attempt to coordinate activities of university administrators and corporation management in an effort to develop a workable model for increased educational cooperation. Designing an experimental curriculum to be used on the junior high school level in New York City's Clinton Program--an attempt to extend formal education beyond classroom walls. Then, as a member of the New York City Urban Coalition, Celanese has taken an active role in the Educational Task Force which is conduct ing a wide range of programs designed to aid education. These have included: Funding community groups such as the Bronx Parents Association. Providing funds and staff support for the Ruppert Renewal Committee, a group of parents and teachers who are designing a new high school complex and new com munity participation curricula. The proposed Park East High School project, to be situated at the juncture of the East Harlem and Yorkville neighborhoods in New York City, also will serve as a labo ratory for development, by the City, of a new kind of "comprehensive" high school education. Setting up a program to provide technical service (legal, architectural, accounting, planning, etc.) to newly elected school 5 008591 ; '1 > -1 boards which, in most cases, are made up largely of untrained parents. Developing a program with the Public Education Association to interest industry in direct participation in public school curricula. Celanese also produced a film for the New York Urban Coalition documenting Dr. Caleb Gattegno's techniques for teaching young children reading and arithmetic. Equal Opportunity Employment Celanese more than doubled the minority group membership in its domestic force--from 1,000 to 2,400--between 1965 and 1970. During the same time, Celanese' U.S. total employment stayed relatively constant--around 26,000. The corporation rates its progress, so far, in improving minority representation as "good." Since only a few new plants were started up during this period, the corporation's best chance for making better use of minority persons was in its existing plants. A goal was set to place minority representatives in all categories of employment and to concentrate on so-called "breakthrough" jobs in all parts of the country. This has been accomplished. In all parts of the country we employ black foremen and salesmen and black professionals--account ants, chemists and market analysts. Our secretarial training program (described in the section on Education] is considered by the Atomic Energy Commission to be a model for affirmative action. The corporation feels that reasonable progress has been made but we know there is still much to be accomplished in the field of equal opportunity employment and we expect to continue to seek creative solutions to the problem of equal opportunity for all. 6 Assistance to Small Businesses ] Celanese wants to help minority businesses get 1 going and survive. It has sponsored some firms directly, providing management help, credit and loans. For more than a year Celanese has supported Corley Originals, a black-owned firm engaged in the design and manufacture of silk screen fabrics and sportswear. Celanese contributed a team of experienced textile marketing people who counseled the owner almost daily, helped him obtain credit, introduced him to buyers from leading department and chain stores and helped the firm obtain orders. Celanese also provided $5,000 worth of support in advertising and other selling aids. The sportswear firm credits Celanese with major contributions to its continuing operation. In another instance, however, Celanese loaned $10,000 to a group of black designers who had started a small plant to manufacture and market dashiki fashions. Although con siderable financial and management resources were made available, the venture ultimately failed. The Celanese loan had to be written off. Low Income Housing Celanese believes it is on the way to making a valuable contribution in the field of housing for low income groups. Several years ago Celanese established Construction for Progress, Inc., a joint venture with American Standard, Inc. Out of this venture and its working relationship with the New York City Housing Authority has come a new concept in industry/government coop eration known as the "handshake turnkey" type of project. Under this concept, industry builds to city housing authority requirements but without 7 008592 `Aifs'. any legal contract. The project, when com pleted, is sold to the housing authority. In New York City this approach cuts through at least two years' red tape and enables the sponsor to complete construction in less than a year's time. The first such project was a 66-unit, sixstory apartment dwelling at 111th Street and First Avenue in East Harlem. Four other apartment houses are under construction in the South Bronx. A significant increase in Construction for Progress activities is planned for the near future. Recently, Celanese also co-sponsored a winning proposal in the U.S. Department of Housing and Urban Development's "Operation Breakthrough" competition. The proposal was based on a French system for industrialized housing that will be used to produce demon stration buildings on HUD sites in Memphis and Jersey City. Celanese also subscribed to the Corporation for Housing Partnership and, with the help of outside consultants, is conducting a depth analysis of the construction industry. The goal is to determine whether or not investment in other aspects of the building industry might be warranted. i J [. ' i. f j ^ * > ^ Consumer Information and Assurance From consumer activists one is apt to get the impression that industry and the consumer are adversaries. Yet, as far as Celanese is con cerned, nothing could be further from the truth. Most Celanese products are sold not to consumers but to other manufacturers. They are used as ingredients of thousands of other products. Nevertheless, those divisions of Celanese whose products are identifiable to the consumer are essentially consumer service organizations. 8 In the Celanese textile fiber operation, for example, pleasing the consumer is the "name of the game." Better ways to spin, texturize, blend, dye, finish and process fibers and fabrics to make them into more useful and satisfying end products for the consumer are studied on a day-to-day basis. Here are a few of many ways in which Celanese serves the consumer: Licensing Program--Celanese fibers have been marketed on a licensed basis since 1955. How a knitter or weaver uses Celanese fibers is a major factor in consumer satisfaction. There fore, before permitting a Celanese trademark to be used, Celanese requires samples of all finished fabrics made from its fibers which carry that trademark. At a Celanese laboratory, these samples are subjected to a wide variety of tests related to their intended use by the consumer. Only when exacting standards are met does Celanese allow the manufacturers to use the licensed trademark on identification tags, labels and the promotional support that is so important to them. Besides the many laboratory tests, Celanese conducts literally thousands of garment wear trials every year on new products to make certain they will perform as expected. If problems arise, Celanese' vast technical service organization assists the textile industry in taking corrective measures to upgrade fabric performance. Consumer Service Laboratory--In support of its licensed trademark and identification programs Celanese established a consumer service laboratory more than ten years ago. This laboratory examines the behavior of all new Celanese textile products from the point of view of the consumer. Proper washing, drying and care instructions are incorporated on all tags and labels distributed by Celanese 9 008593 each year--some 200,000,000 in all. Also, as new fabric constructions are introduced, the lab develops and details home sewing instruc tions. New fibers are evaluated to determine their usefulness in consumer products. In this consumer laboratory samples of garments advertised by Celanese are evaluated to assure the accuracy of any advertised per formance claims for die product. Technicians from this laboratory analyze any consumer complaints submitted to the company. To assure consumer satisfaction these complaints are answered personally. Consumer Research--Celanese' marketing research department helps sponsor a panel of 7,000 families who mail in the actual tags from the garments they buy each month. Another panel, maintained by Celanese, obtains comments from some 5,000 families about specific garments made from Celanese' fibers and competitors' fibers to make sure our products are giving superior performance. Consumer Information--Celanese maintains a consumer information department headed by top-notch experts in textile-related con sumer matters. This department also serves as a consumer ombudsman. The department maintains constant contact with retailers, man ufacturers of home appliances and detergents, launderers and drycleaners, government agencies, educational institutions, home econo mists in extension service, editors and others concerned with servicing the consumer. It is the function of this group to identify, as early as possible, any possible sources of customer dissatisfaction with any Celanese product for any reason whatsoever and to set the proper people to work correcting it. Celanese also employs a staff of home econ omists who provide assistance to community 10 groups interested in guidance to better buying and maintenance of textile products. Flammability--Celanese has done a great deal of work on product safety, especially as related to flammability of textiles including, within the past year, fundamental research on the chemistry of fiber combustion. We are working to establish better standards and test methods for flammability in support of the Flammable Fabrics Act. This work is going forward both independently and in coopera tion with industry and government. Celanese believes that the improvements in textile products through development of new variants of man-made fibers (such as poly esters, polyamides, acetates) and through the development of permanent press fabrics, textured yarn fabrics, bonded fabrics, anti static fibers and other fashion and functional innovations represent an outstanding contribution to better and easier living. V ; : And a Closing Word on the Subject of Our Obligations... Is a corporation's only social responsibility to increase its profits? Or does a corporation, which is licensed to do business by society, have an obligation to promote other desirable social ends? At least one famous and respected economist argues the former. He thinks a corporation misuses stockholders' money when it devotes any part of their profits to good works. But a seeminglygrowingnumberof corporate leaders disagree. They believe they must help to solve today's social problems because a cor poration flourishes only in a healthy society. 11 008594 4 We tend to share the latter view as the corporate activities reported in this booklet might suggest. But on one vitally related point we believe there is no room for disagreement or, for that matter, lack of comprehension. The money a corporation can devote to social obligations comes from a single finite source: Profit. The money a corporation must devote to essentials of corporate life like replacing worn out equipment, paying taxes, providing a return to investors and enhancing pay and promotion chances for employees-- all this comes from profit, too. Furthermore, the company's and its em ployees' income taxes, which are one result of profitable operations, are the economic basis I for government support of all essential services. This includes the funds needed for the solution of our most urgent urban and health problems. In other words, profit adequate to pay its employees, pay its taxes and finance future growth must be the primary objective of our management. Without proper profit, a corpora tion simply cannot meet its social obligations. "`Many l 'i:r v-' > - h fvr>- t he when they era vielc; d .when taker, btihs ty liltie." t 12 008595