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Four Businesses Honored with Prestigious International Award for Outstanding Marketplace Ethics

9/23/2002

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Arlington, VA, September 23, 2002 - The Council of Better Business Bureaus today announced the winners of the 2002 Better Business Bureaus' International Torch Award for Marketplace Ethics. The businesses selected to receive this year's prestigious award are: Niagara Mohawk, Syracuse, NY; CMC Properties, Cincinnati, OH; Studio 904 Inc., Seattle WA; and, Blue Star Learning, San Diego, CA.

Canadale Nurseries of St. Thomas, Ontario, Canada; Gentle Giant Moving Company, Inc., Somerville, MA; Loegering, Casselton, ND; and, Siewers Lumber and Millwork, Richmond, VA - received honorable mention distinction.

"The Better Business Bureau system established the Torch Award in 1996 to promote ethical business practices and to heighten public appreciation for the many fine businesses that serve our marketplace. The significance of those two goals is more evident today than ever before. With corporate integrity under the spotlight and with so many people questioning the motives and methods of business leaders, it's easy to focus on the negative examples. Our award highlights the positives, bringing recognition to businesses that adhere to high standards of behavior in good times and bad, that do well by doing right, and that serve their customers, employees, investors, competitors and the communities in which they do business with integrity," said Ken Hunter, president and CEO of the Council of Better Business Bureaus.

A blue-ribbon panel of business and ethics experts judged this year's competition, which was particularly noteworthy for the number of companies selected to be honored, 28 in all; the breadth of industries represented, and the geographic scope of the competition. Honorees hail from 18 states and the province of Ontario.

The special awards ceremony was held in Minneapolis in conjunction with the International Assembly of Better Business Bureaus.

About the Winners:

Category I, more than 1,000 employees: Niagara Mohawk, Syracuse, New York
Founded more than 50 years ago, this electricity and natural gas delivery company has long enjoyed a relationship with its customers based on trust. When Niagara Mohawk confronted an ethical lapse in 1996, it acted to preserve that trust. Following a detailed review of its practices/procedures, and with the CEO's strong support, NM embarked on a multi-faceted campaign to strengthen its ethical culture. Today an Ethics and Compliance Office manages a corporate-wide program, which includes a Code of Conduct detailing employee responsibilities and how to avoid conflicts of interests with vendors/suppliers; top-down communication of five core values; and, formal employee training and surveys on ethics. In today's deregulated environment, NM competes for business based on the price and quality of its products and services, without disparaging competitors. Employees are trained to protect the environment, and Community Action Teams coordinate projects to serve the communities in which employees live. In 2001, Niagara Mohawk was awarded the local Torch Award from the BBB in Buffalo.

Category II, 100 - 999 employees: CMC Properties, Cincinnati, Ohio
Founded in the mid 1960's, this highly respected professional management company attributes its success to frugality, keeping things simple and hiring nice people. To CMC, the real estate business is about bodies and souls, not bricks and mortar. It proactively seeks unfiltered feedback from customers, permitting it to consistently exceed their expectations. Under CMC's money-back guarantee, any tenant signing a lease is permitted 30 days from the initial move-in to change their mind. Former tenants receive security deposit refunds within two weeks or less of moving out. Employees are treated well, a fact that's reflected in a 12-year average tenure for property managers. CMC pledges in writing to treat subcontractors respectfully, pay them quickly and not waste their time. CMC has implemented numerous programs to serve surrounding communities, and works to elevate ethical standards within the multifamily housing industry. In 2001, CMC Properties was awarded the local Torch Award from the Cincinnati BBB.

Category III, 11 - 99 employees: Studio 904, Inc., Seattle, Washington
Founded 25 years ago, Studio 904 has achieved success through a commitment to innovation, quality and value. Its "No Tipping" philosophy permits stylists to offer customers the very best of employee talents. Customers appreciate the salon's honest, up-front pricing menu and money-back guarantee. Unique for its industry, it has salaried employees (at twice the industry norm), offers a team-based profit sharing program and provides training, education and career development for all employees. A majority of employees are minorities, immigrants and from a disadvantaged background. The business gives back to its industry and surrounding community, donating five percent of sales from its customer hair care products each month to community organizations. It selects suppliers that embrace its quality standards and unique mission of caring for employees and the community. In 2001, Studio 904 was awarded the Business of the Year award by the BBB serving Oregon and Western Washington.

Category IV, 1 - 10 employees: Blue Star Learning, San Diego, California In little more than a decade, Blue Star has grown into an award-winning full service technical training company. Its concept-based training serves companies around the globe. Unique to its industry, Blue Star offers students free retakes of the same course for life. Employee benefits include free technical training and a profit-sharing plan. Professionals who contract with Blue Star to teach classes are paid promptly, usually on the day the class ends, and may audit classes free of charge. Its low-key but helpful marketing approach has led to a 30% average yearly growth rate. Blue Star is highly respected throughout the computer industry and contributes its talents to its professional association. It donates computers and sponsors not-for-profit workshops to train local teenagers. In 2001, Blue Star Learning won the local Torch Award from the BBB of San Diego.

In addition to the four winners and four honorable mentions, 20 businesses were selected as finalists in the 2002 international competition: AFLAC Incorporated (Columbus, GA); Amarillo National Bank (Amarillo, TX); Anthony's Seafood Group (San Diego, CA); Career Solutions Group, Inc. (Indianapolis, IN); DeAngelo's Pizzeria Company (Baton Rouge, LA); First American Bank, SSB (Wichita Falls, TX); Gem Shop (Rockton, IL); Hampton Enterprises, Inc. (Lincoln, NE); Hillmer's Luggage, Leather & Gifts (Topeka, KS); I.Keating Furniture World, Inc. (Minot, ND); Kemper Insurance Companies (Long Grove, IL); Kornmeyer's (Baton Rouge, LA); National Energy Conservation Corp. (Olney, MD); New Belgium Brewing Company, Inc. (Fort Collins, CO); Optum (Golden Valley, MN); Presentation Solutions, Inc. (Buckner, KY); Sun Life Financial (Wellesley, MA); The Sheakley Group of Companies (Cincinnati, OH); Woodruff Contracting Company, L.L.C. (Columbus, GA); and W.W. Heating & Air Conditioning, Inc. (North Lima, OH).

About the Award:

Local Competitions: An estimated 2,800 businesses were nominated to enter local BBB-sponsored Torch Award competitions this past year. The local winners are forwarded for consideration among other business entries in the international competition. The Judges: Ronald Miller, formerly president of the BBB of Central Ohio; Laura Nash, senior research fellow, Harvard Business School; Paul Tschirhart, Sher & Blackwell; Mark Winzenread, chief financial officer & ethics officer, Walker Information, Inc. (winner of the 2001 National Torch Award); and John Yost, professor, Bradley University.

Award Criteria: Include a demonstration of ethical practices in the marketplace; high standards of behavior toward customers, employees, suppliers, shareholders and communities; truthful and accurate advertising and sales practices; ethical reputation among industry peers and in communities in which they do business; long-term value of ethics policies to shareholders, customers and employees; and programs to assist employees in carrying out ethics policies.

For the complete list of winners dating to 1996, visit the BBB central web site at www.bbb.org/BizEthics/winners.asp

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