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2011 Corporate Social Responsibility Report

HUMAN RIGHTS

Lexmark upholds the human rights of its employees and treats them with dignity and respect as understood by the international community. We follow well-regarded guidelines, such as the Universal Declaration of Human Rights (UDHR), Social Accountability International (SAI) and the Ethical Trading Initiative (ETI).

Workforce Policies

Lexmark is committed to providing a work environment free from harassment or discrimination based on race, color, religion, gender, sexual orientation, gender identity, national origin, age, disability, veteran status, or for any other unlawful reason. This policy is driven by Lexmark's respect for the dignity of the individual and commitment to treating all persons equitably. We investigate all credible complaints of discrimination brought to the attention of management and deal with them in an expedient and non-retaliatory manner. For example, in the U.S., employees who are found to have engaged in harassment or discrimination according to the terms of this policy, or to have misused their positions of authority in this regard, are subject to immediate disciplinary measures, up to and including dismissal.

Lexmark International, Inc. upholds the human rights of its employees and treats them with dignity and respect as understood by the international community. Lexmark closely monitors its operations to ensure that adherence to accepted standards regarding freely chosen employment, child labor, discrimination, harsh or inhumane treatment, minimum wage and freedom of association. Lexmark International, Inc. has not been cited for any human rights violations.

Lexmark adheres to the conventions of the International Labour Organization (ILO) that aim to promote workers' rights, fair employment opportunities and unimpeded channels of communication among employees. Lexmark honors its employees’ free choices and complies with all state and federal workplace laws and guidelines, including those associated with labor-organizing activities. Lexmark has not identified any operations where employee rights to exercise freedom of association of collective bargaining may be at risk.

Other ILO and United Nations Global Compact (UNGC) initiatives include the abolition of forced labor, the freedom of association and the prohibition of child labor. These initiatives are discussed in Lexmark's Supplier Code of Conduct to which Lexmark and applicable Lexmark suppliers are bound. The Supplier Code of Conduct also discusses Lexmark’s policy on Freely Chosen Employment. The Company has not found any of its operations to have significant risk for incidents of forced or compulsory labor or child labor or young workers exposed to hazardous work.

No Lexmark employees are represented by collective bargaining units. Works Councils are established at certain of Lexmark's European locations which, on behalf of employees, require employers to provide company information for review and to engage in consultation on certain company decisions. Information on the European Works Councils (EWCs) is available at http://www.etuc.org/r/57

All of Lexmark's security personnel – including contracted security personnel–have been trained in the organization's policies on, or specific procedures for, human rights issues and their application to security.

In our experience, open communication and direct engagement between workers and management are key factors in resolving any workplace issues. Whenever possible, Lexmark provides employees several weeks notice of significant operational changes that could substantially affect them.

Lexmark has not identified any incidents involving indigenous rights among the organization's own employees or in communities near existing operations that are likely to be affected by planned or proposed future operations.

EQUAL EMPLOYMENT OPPORTUNITY (EEO)

Lexmark is committed to equal opportunity in all areas of our operations. All Lexmark business activities and employment-related activities are administered without regard to race, color, religion, gender, sexual orientation, gender identity, national origin, disability, age or veteran status.

Lexmark does not have a global policy for granting preference to local residents when hiring in significant locations of operation. However, most employees at each location are local hires and have continuing education opportunities to develop skills for job advancement. We also have a geographic transfer training program that gives employees the opportunity to transfer locations for a few weeks or for as long as a few years.

Lexmark currently requires training on the human rights aspects of EEO and Affirmative Action which is part of the 40 average hours of training per manager. Starting in 2011, all new Lexmark employees were required to review the supplier code of conduct, which addresses EEO and aspects of human rights relevant to operations.

We investigate all credible complaints of discrimination brought to the attention of management and deal with them in an expedient and non-retaliatory manner.

In the interest of privacy and respect for legal limitations, Lexmark cannot disclose information about specific cases. Actions taken in response to incidents include reviewing the incident as well as the development and implementation of remedial plans.