INTRODUCTION
Letter from Don James
Chairman & CEO


COMMUNITY INVOLVEMENT
Overview
Good Neighbors
Corporate Citizenship
Employee Volunteers

PROTECTING NATURAL RESOURCES
Wildlife Habitats
Land Reclamation
Recycling
Improving Product Quality

LEADERSHIP IN SOCIAL RESPONSIBILITY
Leadership Roles
SHE Staff
Measuring Our Success

FOCUS ON SAFETY, HEALTH,
AND THE ENVIRONMENT

Construction Materials -
Occupational Health
Construction Materials -
Safety
Construction Materials -
Protecting Resources
Chemicals - Occupational
Health
Chemicals- Safety
Chemicals -Protecting
Air, Land & Water
Audits

SAFETY, HEALTH, AND
ENVIRONMENTAL POLICY

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Auditing our safety and health practices is an excellent way to verify how well we are doing. We show our commitment by having professional safety, health and environmental staff at each Vulcan division and by using extensive audit processes. Data from injury and accident analyses help identify, define and target areas for improvement and measure how effectively each operating division controls safety hazards.

Inspectors

Periodic inspections monitor our sites both for regulatory compliance and for potentially adverse impacts on the environment. Frequent, and in some cases daily, inspections verify that environmental controls work properly and workers follow required safety and health procedures. Division staff conduct annual compliance audits, and headquarters staff periodically review division-level audits and facility inspection processes.

Audits

In 1995, the Company changed its audit strategy for the Construction Materials Group. The traditional model led to a good compliance record. However, we wanted an even more comprehensive, risk management -based system. Division safety, health and environmental managers are now responsible for traditional compliance auditing. Headquarters staff audit the management systems -that is, how well policies and controls are understood, enforced and followed up, and how well resources are used to control hazards. We seek to measure and improve our way of doing things, rather than merely fixing symptoms.

Feedback / Tracking Indicators

Along with audits, we use a range of other measures to rate our performance. Feedback from the public, community advisory panels and our shareholders evaluates our actions in a personal way, and we value this input. Another method is tracking indicators. We regularly gather standard data so we an compare our performance to previous years and to others in the industry. Federally required safety statistics are a prominent example.

Industry Benchmarks

Industry benchmarks provide another means to measure success. Both the American Chemistry Council and the NSSGA have established safety, health and environmental standards and guidelines for their members, along with programs to address particular issues. Results help us determine the efforts of other companies and where we stand in comparison. Gathering data informally from public sources also gives us a sense of the accomplishments of others. The Chemicals Group participated in a 1998 management systems verification through the American Chemistry Council. An independent committee of industry experts and community leaders concluded we had made Responsible Care -the chemical industry's stewardship initiative -a reality in the workplace and in the communities where we operate.

Trade associations, governmental groups and private organizations recognize achievements in pollution prevention, beautification, energy conservation and environmental excellence. Vulcan operations regularly receive awards in these areas; we appreciate each one because it means our commitment to socially responsible action, as a Company and as individuals, is working.

All these measures help us evaluate whether we are meeting internal and external objectives. They also help us track improvements over time.

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