1998 was a year of dramatic change for General Motors. The summer brought a major reorganization of GM's corporate structure, merging our North American and international operations into a single global automotive entity. The year concluded with the spin-off of our parts subsidiary, Delphi Automotive Systems, which accounted for over one-third of our worldwide employment and for over 14% of our philanthropic activities. 

Through it all, GM once again ranked among the world's top corporations in philanthropy. The GM Foundation, established in 1976 and funded entirely by GM, provides the focal point for administering GM's philanthropic programs. In 1998, combined worldwide contributions of GM and the GM Foundation were over $71 million. 
 

In our ongoing efforts to strengthen our philanthropic base and reach farther into the global community, we announced plans for a global volunteerism program - GM Volunteer PLU$. This innovative new program recognizes and rewards employees for the time they spend volunteering with charities in their communities. GM Volunteer PLU$ enables employees to direct a monetary gift from the GM Foundation to local charities where they regularly participate as volunteers. 

In our continuing effort to promote child passenger safety and education, GM and the United Automobile Workers (UAW) will partner with the National Association for the Advancement of Colored People (NAACP), the National Council of La Raza (NCLR) and the National SAFE KIDS Campaign to distribute child safety seats to underrepresented families. This alliance is part of GM's $5 million pledge to support the America's Promise initiative chaired by General Colin L. Powell, USA (Ret). 

GM's long-standing commitment to the United Way continued in 1998. The GM Foundation contributed $6 million and employees pledged almost $30 million to chapters throughout the United States for a total of over $36 million, making GM the largest contributor to United Way among U. S. corporations. 
We believe that if GM is to retain its position as the premier car and truck company in the world, we must continue to support our many constituencies through these vital community programs. This direct involvement in and concern for communities expresses the true spirit of GM's commitment to good corporate citizenship.

A.) G.M. : ON EDUCATION.
 

GALAXY Classroom The GALAXY Classroom ($500,000). This initiative was developed to help children at an early age build cognitive, creative and literacy skills to become lifetime learners and productive workers. GM piloted the program at 23 schools in the United States and two in Mexico, providing the opportunity to integrate high technology into the elementary classroom. The program features science curricula for first and fifth grades designed to spark students' interest in science through hands-on experiments and interactive programs that foster the development of critical thinking processes and core science concepts. It also features a fourth-grade English language arts curriculum based on themes relevant to students' lives that build self-esteem, provide a common experience for all students in the network and serve as a springboard for language arts activities.

 

GM has a long-standing commitment to education and has consistently been a leader among contributors to the educational community and the quality of the programs receiving support. GM believes quality education is vital to the future of American industry, which depends on an educated workforce to succeed in an increasingly dynamic, technologically complex and competitive environment. This is especially true for the automobile industry, which employs 6% of all engineers in the United States and conducts 12% of all corporate research and development. GM provides funding at elementary through post-doctoral level. Many of the programs receiving support are designed to create educational opportunities for minority men and minority women as they prepare for careers in engineering, science, mathematics and business.

Higher Education

GM maintains ongoing relationships with universities that are members of our Key Institution Program, comprised of schools that have been selected primarily for the quality of their engineering and business programs. The majority of our educational contributions are for science and engineering, with much of the remainder supporting business education. GM supports Key Institutions with cash grants and equipment donations. Examples of universities that receive major GM support include:

GM also provides grants that match employee contributions through the GM Higher Education Matching Contributions Program. In 1997, GM matched $1,045,000 in contributions representing more than 3,400 employee contributions directed to more than 450 accredited, degree-granting institutions.

In addition to providing grants to colleges and universities, GM provides support to students. In 1997, GM provided over 900 scholarships, totaling more than $1.9 million to outstanding engineering and business students. Participating students also gained work experience related to their studies through internships at GM facilities. GM Scholarship Programs include :

• GM Intern Scholarship Program provides financial awards to outstanding interns - primarily those enrolled in engineering and business curricula - that have completed a summer internship in an outstanding manner at a GM facility;
• GM Minority Engineering and Science Scholarships ($400,000) for outstanding minority male and female students enrolled in full-time science and engineering programs;
• GM Minority Automotive Scholarship Program for minority students interested in retail automotive careers, leading to positions as automotive dealers or dealership general managers; and,
• GM Engineering Excellence Awards Program, providing scholarships to eight United Negro College Fund's Historically Black Colleges and Universities and to the Hispanic Association of Colleges and Universities to prepare students for technical, engineering and business careers.

K-12 Education Programs

GM is a leader in support of K-12 education both in terms of financial contributions and the dedication of thousands of GM employees and retirees who work as volunteers with local schools. Examples of GM's significant K-12 initiatives include:

• GM Skilled Trades and Engineering Explore the Possibilities Program ($1.6 million). Through the program, GM skilled tradespeople and engineers link middle school teachers and their students to the world of manufacturing through GM facility visits, videotapes and lively classroom discussions. The program, which has captured the attention of the U.S. Departments of Education and Labor, the National Science Foundation, and National Research Council, along with Fortune and Business Week magazines, encourages students to continue math and science studies as they gain an inside view of careers in skilled trades and engineering. In Warren, Ohio, over 12,000 middle school students had the opportunity to see firsthand the long-term advantages of studying mathematics and science through a program being offered by Delphi Packard Electric Systems and GM's Lordstown Assembly and Metal Fabrication plants. Thirty-five school districts in the area participated in the Explore the Possibilities program, with a focus on piquing the interests of female and minority students in particular. The local GM Community Relations Committee, composed of GM executives from the local plants, coordinated the program.

• The Society of Automotive Engineers' World in Motion Program is designed to promote students' interest in science and engineering as it strengthens technical science literacy.
• DAPCEP (Detroit-Area Pre-College Engineering Program) is a middle/high school program coordinated with the Detroit Public Schools to motivate and prepare minority students for careers in engineering and science. GM engineers serve as mentors for students who construct a vehicle through the GM Paper Vehicle Project.
• The LEAD Program in Business selects academically-gifted minority students to attend summer business programs on graduate business school campuses. Students gain an understanding of basic business principles and the career opportunities available in business.
• GM has been a Cornerstone School Partner since 1992, sponsoring the education of ten kindergarten through middle school students at three campuses in Detroit. The Cornerstone program focuses on writing, reading, math, science, reasoning and moral development, and has grown in enrollment each year since its inception.

First Competition
 

GM was a charter sponsor ($500,000) of the FIRST Foundation, an organization that seeks to interest and inspire students in mathematics and science. FIRST (For Inspiration and Recognition of Science and Technology) is designed to develop a "mind sport" that rivals the enthusiasm and esprit de corps of the best athletic competition. The focus of FIRST is to use industry resources to inspire high school students to become interested in the sciences.

In April 1998, FIRST hosted nearly 200 teams in the United States and involved more than 7,000 high school students in the innovative FIRST Robotics Competition, which held its national competition at Walt Disney World's EPCOT Center in Orlando, Florida. Ten GM and Delphi teams competed in the event with the Delphi Electronics Systems/Kokomo (IN) High School Team taking First Place. Out of the four teams in the semi-finals, three were from General Motors, including the Milford Proving Ground/Huron Valley (MI) Schools Team and the GM Powertrain/Pontiac (MI) Northern High School Team.

The GM Proving Ground team was a finalist in the Chairman's Award competition for community involvement and won the "Honeywell Leadership in Control Award" for their innovative robot control system. Delphi Energy & Engine Management System/Northwestern High School in Flint, Michigan was named "Rookie All-Star" for their outstanding first year performance.

FIRST is committed to linking the world's best engineers as role models with high school students to influence their career choices while reinforcing the national goals of being a world leader in business and education. Headed by Andrew Allen, former astronaut and director of NASA's International Space Station Program, FIRST's mission is clear: Team up the resources and hands-on experience of industry's best engineers with the enthusiasm and inquisitiveness of today's high school students and the nation will begin to make inroads into improving its international competitiveness.

GM Sponsorships of Student Competitions
 

• GM sponsors the Formula SAE (Society of Automotive Engineers) competition for engineering students to conceive, design, fabricate and compete with small formula-style racing cars. The restrictions on the car frame and engine are limited so that the knowledge, creativity and imagination of the students are challenged. The cars are built with a team effort over a period of one year and are taken to a host institution for judging and comparison with about 90 other competitors from across the nation. The end result is a great experience for young engineers in a meaningful engineering project as well as the opportunity of working in a dedicated team effort.
• MATHCOUNTS is a national mathematics competition for middle school students designed to build skills, promote strategic problem-solving and sharpen analytical abilities.

Additional Educational Initiatives
 

• GM has been a major contributor to the United Negro College Fund (The College Fund/UNCF) since its inception in 1944, donating more than $1 million annually to the Fund. GM supports UNCF's major events, such as the premier of "An Evening of Stars - A Celebration of Educational Excellence," which replaced the Lou Rawls' Parade of Stars telethons of previous years. Six GM employees who graduated from UNCF member institutions were featured as part of the organization's success stories.
• GM China has been a major contributor to two technical centers at Tsinghua University in Beijing and Jiaotong University in Shanghai. In addition, it has been a lead sponsor of the Shanghai Special Olympics Adopt-A-School Program. The program involves sponsoring one of Shanghai's special education schools by providing volunteers to coach the school's children in preparation for Special Olympics activities and by providing cash donations to cover costs.
• GM contributed almost $200,000 to the Windhoek Vocational Training Centre in Namibia, Africa for the purchase of automotive training equipment and vehicles used in training. This project is a cornerstone of the Namibian government's economic empowerment policy in that it will employ about 100 black Namibians. Until 1990, black Namibians were denied technical training and economic empowerment while under white South African rule.
• In Israel, GM contributed $300,000 to the GM/Israel University Program for Technology, Research and Development in Tel Aviv.
• In Indonesia, GMBI supports the International School and also supports an environmental education and conservation group with the donation of vehicles.

• Engineering and Science Development Foundation
• Hispanic Association of Colleges & Universities
• International Foundation for Education and Self-Help
• Medical Education for South African Blacks
• National Action Council for Minorities in Engineering
• National Defense University Foundation
• National Hispanic Scholarship Fund
• Power of the Pen
• Presidential Scholars Foundation
• Society of Automotive Engineers (SAE) Vision 2000
• Society of Women Engineers
• Youth Development Fund of the Vocational Industrial Clubs of America

B.) G.M. : ON ENVIRONMENTAL AND ENERGY INITIATIVES.
 

Nature Conservancy GM and The Nature Conservancy, an international environmental organization, have entered into a partnership in which we have committed to spend up to $5 million over five years to assist in the preservation of land and water ecosystems in North America, Latin America, the Caribbean and the Asia/Pacific region.

GM supports a variety of environmental organizations whose objectives, goals and activities are aligned with the General Motors Environmental Principles. In addition, special consideration is given to organizations that are internationally recognized and support programs that have a worldwide scope, applicability and/or multinational advocacy, irrespective of national origin. GM also seeks to support organizations that advocate an approach that seeks solutions to unite economic, social and environmental goals.

GM Environmental Principles

As a responsible corporate citizen, GM is dedicated to protecting human health, natural resources and the global environment. This dedication reaches further than compliance with the law to encompass the integration of sound environmental practices into our business decisions. The following environmental principles provide guidance to GM personnel worldwide in the conduct of their daily business practices :

We are committed to actions to restore and preserve the environment.

We are committed to reducing waste and pollutants, conserving resources and recycling materials at every stage of the product life cycle.

We will continue to participate actively in educating the public regarding environmental conservation.

We will continue to pursue vigorously the development and implementation of technologies for minimizing pollutant emissions.

We will continue to work with all governmental entities for the development of technically sound and financially responsible environmental laws and regulations.

We will continually assess the impact of our plants and products on the environment and the communities in which we live and operate with a goal of continuous improvement.

• GM and The Nature Conservancy, an international environmental organization, have entered into a partnership in which we have committed to spend up to $5 million over five years to assist in the preservation of land and water ecosystems in North America, Latin America, the Caribbean and the Asia/Pacific region.
• GM supports the Global Rivers Environmental Education Network (GREEN), which seeks to improve education through a global network that promotes watershed stewardship. The program includes business, government and community partners and provides opportunities for students around the world to enhance their interest in science.
• GM has also established the General Motors Environmental Excellence Awards. These awards are intended to recognize promising students with career interests in an environmental field. The program combines academic studies with volunteer experiences addressing environmental issues.
• GM also provides support to the World Environment Center, the Foundation for Business and Sustainable Development and the World Resources Institute.

Other Environmental Initiatives

As a responsible corporate citizen, GM is committed to educating the public regarding environmental practices. Many of our local units are involved within their communities in this endeavor. Following are some of our current programs from around the globe:

• The GM Powertrain castings plant in Bedford, Indiana has been active in local and regional environmental awareness. The plant hosted an Environmental Expo that included forty information booths highlighting topics on ways to minimize waste in homes and how to recycle. Local children were educated regarding the science of wastewater treatment and through a GM-sponsored exhibit entitled "EARTHQUEST: The Challenge Begins," which was housed at the Indianapolis Children's Museum. Plant employees have volunteered to clean up litter on a local roadway and educate youth about careers that are available in the science and engineering disciplines.
• The GM Powertrain plant in Saginaw, Michigan hosted a UAW-GM Foundry Fun Fair that emphasized the importance of the environment. This event included demonstrations, tours and a 100-foot tall landfill structure ride. The program was geared to attract the youth of the community who were especially delighted with the four acres of wetlands that they toured.
• As part of Earth Day activities, Detroit-area environmental engineers visited local elementary school classrooms. Using a GM-produced video, crossword puzzles and hands-on experiments, the GM environmental professionals introduced the students to various environmental topics.
• GM environmental engineers are involved with the U.S. Army Tank - Automotive and Armaments Command (TACOM) Math and Science Summer Camp in Warren, Michigan. As part of the camp curriculum, the GM engineers teamed up with the Clinton River Watershed Council to introduce sixth and seventh grade students to environmental engineering.
• In the United Kingdom, GM's subsidiary, Vauxhall, is a corporate member of the Wildlife Trust. Vauxhall sponsors programs such as "Britain's Greenest Fleet" award, Luton Borough Council's Environmental Award, Friends of the Meadows and the Mersey Forest Education Park. Other Environmental Initiatives (continued)
• Together with the Mexican Automotive Industry Association, GM de Mexico participates in a community environmental education program that is implemented through conferences and video presentations in schools, social clubs and other public places; through radio and television programs; and through national newspapers.
• Opel Taiwan created a program called "Initiatives for the Environment" to increase community awareness and promote environmental activism in Taiwan. This includes :
• A special Earth Day television program, a family-oriented variety special with song, dance and speeches by Taiwan's most prominent environmental reformers.
• Creation of the Opel Butterfly Valley and the presentation of the Opel Environmental Award. The Opel Environmental Award is a program which gives exposure to and awards individuals for exemplary environmental projects or works here in Taiwan. Three years running it has gained the support and endorsement of the Taiwan Environmental Protection Agency (EPA). It is judged by a panel of distinguished environmentalists, government officials and industrialists. Among the judges is also a representative of the U.S. EPA. The mission of the program is to foster creative solutions for a better environment in Taiwan.
• Sponsorship of the Opel Scrap Car Towaway Hotline campaign and the Opel Acid Rain campaign.