Employee Opportunities

Building a Welcoming and Rewarding Culture

The best companies are open to change. They welcome different ways of thinking, encourage employees to explore new opportunities, and eliminate the internal barriers that can keep their people — and their businesses — from reaching their full potential.

As a global company, ITT has a diverse workforce population. Going forward, we are focused on creating a more inclusive culture where all employees feel valued, inspired and excited about their opportunities for professional growth. By tapping into our diverse reservoir of talent, we can strengthen ITT's performance and competitive position, and become an employer of choice.

Inclusion and Diversity Center of Excellence

In 2008, ITT enhanced its function devoted to advancing inclusion and diversity issues. It is called the Inclusion and Diversity Center of Excellence, and includes a chief inclusion and diversity officer, corporate and regional leadership positions, as well as a network of inclusion and diversity champions at all of our businesses.

These champions comprise the ITT Inclusion and Diversity Council, which meets quarterly to recommend inclusion and diversity strategies in support of ITT's business goals.

The Center of Excellence team will leverage ITT's global resources, including thought leaders and best practices, to foster world-class levels of inclusion and diversity. They will also utilize lean and Six Sigma processes — including rigorous measurements — to improve our related human resource processes and performance. In 2008, the team conducted a company-wide audit of inclusion and diversity efforts to identify best practices and establish a baseline of ITT's current inclusion and diversity landscape.

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Slating and Recruiting

ITT has set a goal of increasing the diversity of its workforce by addressing our slating and recruiting practices to ensure we are considering candidates from a broader global spectrum. We have expanded our recruiting sources to include qualified, multicultural firms that offer access to diverse candidates, colleges and universities with historical ties to ethnic groups, and, in the U.S., to networking organizations such as the Society of Women Engineers, Society for Hispanic Professional Engineers and National Society for Black Engineers. Internally, we want to use both formal and informal employee networks and affinity groups to seek talent.

Currently, our focus is on leadership positions. In 2007 and 2008, we made strong progress in this area with the appointment of women and racial and ethnic minorities to serve in several key leadership roles, including chief financial officer, chief learning officer, chief ethics and compliance officer, chief communications officer, chief inclusion and diversity officer, president of our Fluid Technology business and vice presidents of operations for our Fluid Technology and Motion & Flow Control groups.

We will continue to pursue a broader leadership talent pipeline. Going forward, we have asked each of our U.S.-based businesses, including corporate headquarters, to establish goals for placements and promotions of racial and ethnic minorities and/or non-U.S. citizens into leadership positions.

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Communication and Education

Inclusion and diversity are not always part of the standard skill set business leaders and front-line workers bring to their jobs. For that reason, training and education are vital.

In the past year, ITT leaders have taken part in inclusion and diversity workshops. Through interactive exercises, they learned how they can model the right behaviors and keep their workplaces in step with a changing marketplace — where customers and stakeholders are more comfortable with global communications and more likely to be women, racial and ethnic minorities and people with disabilities.

ITT employees receive inclusion and diversity education as part of our Ethics and Compliance training course. It was delivered to ITT sites in the past year and is part of the orientation process for new employees. In addition, the ITT employee portal includes an inclusion and diversity website, which serves as an electronic "town square" with the latest news, information on active programs and management tools.

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Building an Inclusive Culture

ITT must do more than simply assemble diverse individuals in our workplace and leadership ranks. We want to leverage the differences our people bring to the workplace to retain top talent and improve business performance. For this to happen, all ITT employees must feel that they belong to a welcoming company with a culture that recognizes — and embraces — their unique strengths.

We have begun making progress in this area by identifying best practices within ITT and exploring the best ways to leverage them across the company. Our Space Systems Division has a number of affinity group networks for women, African-Americans, Hispanics, and Gay, Lesbian, Bisexual and Transgender employees, among others, which we are now using as a blueprint to help other businesses develop similar affinity groups. Likewise, our Industrial Process business has established a robust mentoring program, which we are modeling at other sites.

In addition, key ITT strategic meetings include workshops for women leaders at our company to talk about gender-in-the-workplace issues. These sessions include male participants who benefit from hearing how their leadership actions can help the progress of their female colleagues.

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Tracking Our Progress

ITT is a data-driven company. We believe that what gets measured gets addressed, and we are bringing that approach to our inclusion and diversity efforts.

ITT businesses rate their inclusion and diversity performance using standardized self-assessment scorecards. The businesses rate themselves in key categories, such as percentage of leadership or leadership pipeline positions filled from a diverse slate of candidates, or the percentage of employees who received inclusion and diversity training in the past year. This tool has just been put into use throughout ITT. Going forward, our Inclusion and Diversity Center of Excellence and our network of inclusion and diversity champions will analyze scorecard metrics and recommend improvement strategies.

In 2008, ITT is combining several existing employee surveys into one single "Living Our Values" survey. This survey will include questions about inclusion and diversity practices at ITT and enable our company to establish an "inclusion and diversity index" to track our future progress.

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Supplier Diversity

ITT is committed to sourcing materials and services from a diverse base of global suppliers. While we are tightening our supply chain to achieve maximum efficiencies with world-class vendors who can serve multiple ITT businesses, we also realize that supplier diversity will help us remain competitive in the global marketplace.

In 2007, more than 45 percent of the materials purchased by ITT's Defense & Electronics Services business came from small businesses, companies owned by minorities, women and veterans, or located in historically underutilized business areas (Hubzones). Established mentor-protégé agreements added additional depth and flexibility to our competencies, further strengthening our strategic position.

ITT Defense is dedicated to the goals and principles that are fundamental in building and maintaining strong supplier diversity programs. Consistently exceeding the requirements set forth by the U.S. government for defense contractors is confirmation of ITT's commitment to supply chain diversity.

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A Learning Organization

ITT is developing a more robust learning organization and named a new chief learning officer in 2008 to help lead the effort. Learning organizations provide consistent, high-quality training and development opportunities to employees.

The ITT learning organization will focus on five key areas.

• We will roll out Living Our Values training to enhance understanding of our vision, values and ethical standards.
• We will introduce training to increase understanding and usage of the ITT Management System.
• We will enhance our leadership and management development training to increase awareness about what we expect from leaders at ITT.
• We will increase functional excellence by building technical competencies in all of our functions.
• We will give employees increased access to skills training and general education and training sources from inside and outside ITT.

We are currently developing an electronic learning management system that will support training and self-development activities — giving employees 24/7 online access to a wide range of courses and certification programs.

Throughout 2008-2009, ITT will be rolling out five large-scale, enterprise-wide learning initiatives. We will focus on:

• Living our values
• First-level manager excellence
• Strategic leadership
• New employee orientation
• ITT Management System and Value-Based Lean Six Sigma

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The ITT Inclusion and Diversity Commitment

We, at ITT, are committed to building a workforce that mirrors the world in which we do business. This will lead to improved creativity, innovation, decision-making and customer service, and is essential to achieving premier status.

Our concepts of inclusion and diversity embrace differences in race, religion, gender, disability, nationality, age, sexual orientation, ethnic background and more. Our culture, work practices and programs will value and support the contribution of each individual that results from diverse work and life experiences.

The ITT Management System, including our common vision and values, will allow us to leverage differences and generate innovation that results from a diverse and inclusive culture and sustain our success in the global marketplace.

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Recent Progress in the Area of Inclusion and Diversity

• ITT is supporting initiatives that recognize the contributions of women around the world. In 2007, we became the principal sponsor of the U.S. National Women's Hall of Fame induction ceremony, and also sponsored the annual Global Summit of Women. In addition, we are a corporate partner with Catalyst, an organization dedicated to helping businesses build inclusive environments and expand opportunities for women. In 2008, ITT CEO Steve Loranger served as a co-chair of Catalyst's annual awards dinner.
• As ITT expands its presence in emerging markets, we joined the Conference Board Asia-Pacific and Conference Board Europe to ensure that we are in-step with the most forward-looking business practices in countries such as China and Poland.
• Dr. Surya Mohapatra, who joined the ITT Board of Directors in 2007, brings a set of international job and life experiences to the board. As ITT expands its presence in the Asia Pacific region, his background — including a university education in India — will help the company continue executing its global growth strategies.
• Julie Zoller, a technical program director for ITT's Advanced Engineering & Sciences business, was recognized in 2007 by Science Spectrum magazine for "contributions by minorities in research science." She earned her award for achievements in the area of radio frequency spectrum management.
• ITT funds a scholarship program through the United Negro College Fund (UNCF). We are also leveraging the African-American affinity group at our Space Systems Division to review employment applications sent to our company by the UNCF, and to help establish mentors for new recruits.
• In 2008, ITT became a corporate partner with the Human Rights Campaign, America's largest civil rights organization working to achieve gay, lesbian, bisexual and transgender equality. As a company, we do not discriminate based on sexual orientation and gender identification.

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Following Fair Labor Practices

At ITT, we strive to treat all ITT workers equitably, with the respect and dignity we all deserve.

• ITT has always respected employees' right to bargain collectively within the requirements of the law, and we are partnering more closely than ever with union leaders to address labor issues at our sites.
• ITT pays its employees fair and competitive rates everywhere in the world. We provide competitive benefits packages that meet the diverse needs of our employees throughout their working careers, and at various stages of life.
• In the area of human rights, we adhere to the International Labour Organization (ILO) Declaration on Fundamental Principles and Rights at Work, which calls on countries and companies to abolish child labor. Our company has never — and will never — employ slave or child labor, and we work diligently to maintain fair labor practices around the globe.