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In 2006, Pinnacle West created a new pamphlet called "Doing the Right Thing-Contractors," which communicates our expectations of our contractors with regard to our Ethics Program and Standards of Business Practices. One section of the pamphlet states that our contractors are responsible to help protect the environment by complying with all Company environmental rules and practices, as well as all federal, state, county and municipal environmental laws and regulations. The pamphlet is distributed to key contractors in partnership with the company's contract labor vendors. This pamphlet is available for viewing by the public on our corporate Web site (click on the link above).
Pinnacle West and APS perform audits of all vendors that provide waste disposal or recycling activities and services to company facilities. This is discussed in the vendor audits of the Waste section of this report.
Supplier Diversity is a significant part of APS' business strategy locally, regionally and globally. As a major purchaser of goods and services, APS has a significant opportunity to facilitate diverse business growth and to strengthen the state and local economies in all our customer service areas. APS’ success depends on our ability to understand our diverse consumers' needs and to work effectively with customers and suppliers.
We have a strong commitment towards supporting the development of Minority and Women Owned Business Enterprises (MWBE). This includes educating and informing APS employees with purchasing authority, setting specific MWBE targets, and providing mentoring and other assistance to MWBE suppliers. While every department has responsibility to help meet our MWBE goals, we have also established an internal department, the Supplier Diversity & Development (SDD) Team, which is committed to facilitating and expanding competitive business opportunities with Minority, Women, Veteran, Service-Disabled Veterans and HUB Zone Enterprises primarily in Arizona and the Southwest.
Our efforts are driven by the diversity of the communities, in which we live and serve. We work with these diverse suppliers to provide greater value, innovative thinking and improve the availability of competitive goods and services to Pinnacle West. Our success is attributed to strategic relationships built on direct, honest and equitable communications.
Here's how to learn more about the Pinnacle West Supplier Diversity and Development Program.
As shown in the chart below, PNW set an aggressive MWBE spending target in 2006, and exceeded that target by over $5 million dollars. PNW's MWBE program is a major driver for MWBE business development in Arizona.
2006 Subcontractor Utilization
APS assures that the clause entitled: “Utilization of Small Business Concerns” will be included in all subcontracts that offer further subcontracting opportunities, and all subcontractors (except small business concerns) who receive subcontracts in excess of $500,000 ($1,000,000 for construction of any public facility) will be required to adopt a plan that complies with the requirements of this plan. We urge our prime contractors and major suppliers to support supplier diversity by providing opportunities to small business subcontractors and suppliers to the greatest extent possible.
2006 Second-Tier Spending
 APS encourages our major suppliers to incorporate the strategic advantage of utilizing MWBE’s by offering subcontracting opportunities both directly and indirectly for products and services. APS also directs them to utilize whenever possible qualified and certified MWBE’s from available existing resources. We also request that our suppliers and contractors submit quarterly reports on their MWBE utilization activities in Second Tier reports to APS.
APS Academy for the Advancement of Minority and Women-owned Enterprises (AAAME)
Since 1997, APS has solely funded, designed and administered an innovative and successful business mentoring program that has assisted more than 100 small, minority and/or women owned business to grow in Arizona. The APS Academy for the Advancement of Small, Minority and Women Owned Enterprises, also known as AAAME Is offered at no charge to its participants. The AAAME program was developed on the idea that APS could 'do more'; that APS could lead the community in providing innovative ways to assist minority and women owned business in addition to its successful Supplier Diversity Program.
AAAME is an integrated and focused business mentoring program combining business skill training, one on one mentoring, group projects, peer to peer networking and support with individualized goal setting and action plans. It utilizes many resources from the community as presenters, advisors and curriculum collaborators to provide implement able solutions and guidance to the AAAME CEOs. AAAME participants attend group meetings twice a month and advisor meetings at least once a month during their two year commitment to AAAME. As a result, many AAAME companies have experienced growth in gross revenues and net profit, an increase in employees, the ability to lease or purchase additional commercial space and many other significant goals. They have been honored through out the community for their business success and are seen as the new leaders of our community.
Follow this link or more information on AAAME.
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