At The McGraw-Hill Companies, we constantly strive for a workplace that is inclusive and values each individual, their experience, perspective and contribution to our success. The high value that we place on diversity is critical to attracting and retaining the best talent, creating an engaged workforce, meeting the requirements of our customers worldwide and delivering outstanding value to our shareholders. When our diverse employees strive to achieve their full potential for leadership and innovation, we are better able to foster economic growth and allow individuals, markets and societies to reach their full potential. Our goal is to be an employer of choice and a diversity leader and we measure our success by the engagement of our employees, the satisfaction of our customers and shareholders, and our relationships with the communities in which we work.

Currently, women and people of color represent more than 60 percent of The McGraw-Hill Companies' U.S. employee population. We support our diverse talent through a variety of programs and services, domestically and across the globe. Our 2005 "100 Best Companies" award from Working Mother magazine is an example of the recent success we have had in creating an environment that is supportive of all our employees.

Through grassroots-driven Employee Resource Groups (ERGs) and business-focused Diversity Councils, we recognize and support diversity in the workplace. The Hispanic Heritage Network (HHN), Women's Initiative for Networking and Success (WINS), Black Employees at McGraw-Hill (BEAM), and the Gay, Lesbian, Bisexual and Transgender (GLBT) Employee Resource Group enable employees to connect and discuss a shared set of interests, experiences and perspectives. ERGs have also been vital in fostering a mentoring culture throughout The McGraw-Hill Companies — the McGraw-Hill Mentoring Program was conceived of and piloted through WINS and HHN has recently launched a mentoring program focused on serving the needs of our Hispanic employees.

Our Diversity Councils provide a structured connection through which to address diversity-related issues affecting our individual business units or The McGraw-Hill Companies as a whole. Through these groups, we bridge the workplace to the marketplace by celebrating our cultural differences and understanding how those differences impact our ability to exceed our customers' needs.

Participation in community-based diversity recognition events, such as the Harlem YMCA Black Achievers in Industry Award, National Hispanic Corporate Achievers and YWCA Women Achievers Awards, helps us to highlight the successes of our diverse executives. Further, through mentoring and internship alliances with many community-based organizations, including INROADS and The Robert Toigo Foundation, we are able to support the diverse communities in which we work and attract top talent.

Our diverse employees make it possible to understand, develop and market products to meet the unique needs of our global customers. This is especially important as the proportion of people of color and non-U.S. born citizens residing in the U.S. grows steadily. Changing demographics also mean we must be able to meet the needs of our international customers in an increasingly competitive global marketplace.

We are constantly working to identify better solutions and develop business models that meet the needs of our diverse customers. McGraw-Hill Education's National Urban Markets initiative is devoted to partnering with educators and communities to understand the unique needs of urban districts and develop better solutions for them; McGraw-Hill Broadcasting Group's expansion into Spanish-language television through its Azteca America affiliates has enabled us to better serve the fastest growing minority group in the U.S.; and Standard & Poor's expansion into Asia has made India home to our second largest employee population outside of the U.S. and helped us to better serve our growing and changing markets across the globe.

Another way we're addressing diversity is through our Supplier Diversity Program, where we continue to develop successful business relationships with minority and women-owned businesses that can furnish quality services and commodities at a competitive price in order to meet the needs of the Corporation.

In 1964, the McGraw-Hill Companies' commitment to diversity in the workplace became even more focused with the signing of the Plan for Progress, a joint agreement created in response to former U.S. President Lyndon B. Johnson's equal employment opportunity executive order and signed by The McGraw-Hill Companies' former president Donald McGraw and President Johnson.

Today, our goal is to be a diversity leader — known for our inclusive workplace; able to attract, retain and develop the best talent; understood as a valuable partner for both the communities in which we work and the suppliers with whom we work; and recognized for the outstanding value we provide to both our customers and our shareholders.

We measure our success in creating and managing a diverse workplace in several ways:

• We track the representation of women and people of color at every level throughout The McGraw-Hill Companies.
• We survey our employees to understand their level of "engagement" with their work and to better understand their needs and experiences.
• We monitor and encourage the growth of our Employee Resource Groups, Diversity Councils, and other diversity-related programs.
• We gauge our success through benchmarking against recognition vehicles such as Working Mother magazine's 100 Best Companies List, Human Rights Campaign's Corporate Equality Index, the Catalyst Award, Hispanic Association on Corporate Responsibility's Corporate Governance study and others.

All of these efforts help us to ensure that our workplace is one where our employees can reach their full potential, support our strategy of geographic expansion and acceleration of international market growth and enable us to return greater value to our shareholders.