MGM GRAND DETROIT REPORTS DIVERSITY PROGRESS
DETROIT – June 3, 2008 - MGM MIRAGE executives today presented for the first time the company's Annual Diversity Report at its MGM Grand Detroit property. Since 2002, MGM MIRAGE reports its diversity performance annually to demonstrate transparency and accountability in this area.
"The most significant value - and the strongest impact - that our Diversity Initiative has on our business, rests in the role it plays in fostering a work culture of peak performance, teamwork and innovation," said MGM MIRAGE Chairman and CEO Terry Lanni.
At today's presentation, company executives focused on the impact the company's diversity initiative has had on helping revitalize Detroit's economy. Of the 3,000 MGM Grand Detroit employees, more than 50 percent are Detroit residents and the property's minority employee representation totals 70 percent. By ethnicity, the workforce is comprised of 54.6 percent African American, 5.7 percent Asian, 5.4 percent Hispanic and 0.6 percent Native American.
The company also reported significant participation by minority, women and disadvantaged business enterprises (MWDBEs) in construction and procurement in 2007. Of the $216 million that was spent on construction, more than $101 million, or 47.1%, was spent with MWDBEs. The property spent over $34 million, or 19% of its total procurement budget, with MWDBEs and $58 million, or 34% of its total operating budget, with Detroit-based businesses.
The report also highlighted numerous examples of how MGM Grand Detroit team members have contributed to the greater Detroit community. The property has financially supported more than 200 community and civic organizations that provide social services and support the arts. Additionally, property employees have devoted considerable time to community service and have served on more than 30 community and civic boards.
Immediately following the presentation, prospective vendors and suppliers were invited to the Diversity Business Expo which included booths staffed by company executives from MGM Grand Detroit in departments such as engineering, housekeeping and food and beverage. More than 400 suppliers, contractors, and business leaders from around the U.S. registered to participate in the Expo.
Summarized below are the company-wide diversity results for 2007:
The MGM MIRAGE domestic workforce continues to grow in its diversity. In 2007, the company's minority employee representation totaled more than half of the workforce at 60.8 percent. Women comprised just over half of employees at 50.9 percent. By ethnicity, the workforce was comprised of: 29.3 percent Hispanic; 14.6 percent Asian; 12.4 percent African American; and 0.5 percent Native American. As for minority managers and above: 11.8 percent were Hispanic; 8.3 percent were Asian; 10.0 percent were African American; and 0.5 percent were Native American.
Additionally, a notable milestone in 2007 was the graduation of the company's 5,000th employee from Diversity Champion Training, the company's in-house leadership training program. Diversity Champions are driving a culture of high performance by initiating numerous diversity-related programs and activities at each of the company's properties.
MGM MIRAGE reports success in broadening the base of MWDBEs with which it works. In 2007, the number of registered MWDBEs in the MGM MIRAGE Supplier Diversity program expanded significantly.
For purchasing in 2007, the company spent $1.7 billion in biddable goods and services. Of this amount, a total of $254 million in biddable goods and services was spent with minority enterprises. This reflects an increase of $104 million and 69.3 percent from $150 million in 2006.
Spending was distributed as follows with respect to the ethnicity of minority-owned enterprises: 30.6 percent was spent with African American enterprises; 27.8 percent was spent with Asian enterprises; 26.9 percent was spent with Hispanic-owned enterprises; and 14.8 percent was spent with Native American enterprises.
The company also reports its spend with women-owned businesses. In 2007, a total of $101 million in biddable goods and services was spent with women-owned companies. This reflects an increase of $67 million from $34 million in 2006.
MGM MIRAGE's outreach spans the nation to ensure that MWDBEs have opportunities to contract with its myriad of development and capital improvement projects. As a result, in 2007, of the total construction expenditures which totaled $2.1 billion, $362 million was spent with MWDBEs and $73 million was spent with women-owned businesses. Comparatively, in 2006, $276 million was spent with MWDBEs and $71 million was spent with women-owned businesses.
By ethnicity of minority-owned businesses the amounts spent equaled: 55.7 percent spent with African American businesses; 24.1 percent spent with Hispanic-owned firms; 12.2 percent spent with Asian-owned companies; and 8.0 percent spent with Native American-owned firms.
MGM MIRAGE takes a leadership role in corporate citizenship through its corporate philanthropy and Voice Foundation, the company's nonprofit, philanthropic entity that collects and disburses employee donations. In 2007, corporate charitable diversity-related contributions totaled $3.3 million.
Through the Voice Foundation, grants to nonprofits serving diverse communities and organizations totaled $2.5 million or 84 percent of total grants awarded. Since its inception, the Voice Foundation has dispersed more than $24 million in employee donations to charities in places where MGM MIRAGE does business.
About MGM MIRAGE:
MGM MIRAGE (NYSE: MGM), one of the world's leading and most respected development companies with significant holdings in gaming, hospitality and entertainment, owns and operates 17 properties located in Nevada, Mississippi and Michigan, and has 50% investments in four other properties in Nevada, New Jersey, Illinois and Macau. MGM MIRAGE is developing major casino and non-casino resorts, separately and with partners in Las Vegas, Atlantic City, the People's Republic of China and Abu Dhabi, U.A.E. MGM MIRAGE supports responsible gaming and has implemented the American Gaming Association's Code of Conduct for Responsible Gaming at its properties. MGM MIRAGE has received numerous awards and recognitions for its industry-leading Diversity Initiative and its community philanthropy programs. For more information about MGM MIRAGE, please visit the company's website at http://www.mgmmirage.com.
This news release contains forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, including statements about future financial and operating results. These statements are based on management's current expectations and beliefs and are subject to a number of risks, uncertainties and assumptions that could cause actual results to differ materially from those described in the forward-looking statements. The pertinent risk factors for each company can be found in its Form 10-K on file with the SEC.
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For More Information:
Debra Nelson, Vice President - Corporate Diversity
Communications & Community Affairs, MGM MIRAGE:
702.650.7421 or email@example.com
Sheila Douglas, Media Relations, The Caraway Group:
202.378.0236 or firstname.lastname@example.org