Our business is conducted under the direction of our Chairman, President and Chief Executive Officer with the oversight of our Board of Directors, including a Lead Independent Director. Our Board of Directors is elected by our stockholders to oversee the management of our business and to assure that the long- term interests of our stockholders are being served. Other than our Chairman, President and Chief Executive Officer, all Board members who served during our 2017 fiscal year were independent under the Board’s independence standards.
Our Board of Directors has adopted Corporate Governance Principles that provide the framework within which we conduct our business and pursue our strategic goals. In addition, all of our Board members and employees are expected to follow the highest ethical standards when representing KB Home’s interests and must abide by our Ethics Policy. We also maintain an Ethics Policy hotline (800-304-0657) and reporting website (kbhome.ethicspoint.com), administered by an independent third-party to ensure maximum possible confidentiality and neutrality. Our Corporate Governance Principles and Ethics Policy are available on our website at http://investor.kbhome.com/corporate-governance.cfm. Print copies of our Corporate Governance Principles and Ethics Policy are available without charge through written requests to our Corporate Secretary. In addition, comments or questions for the KB Home Board of Directors or any individual Board member can be directed in care of our Corporate Secretary at KB Home, 10990 Wilshire Blvd., Los Angeles, CA 90024.
Maintaining our sustainability commitment requires more than simply establishing an environmental initiative. It involves ongoing consensus building and close collaboration across the organization to leverage the combined experience, creativity and dedication of the entire KB Home team. In a business that depends as heavily as ours does on a network of business and trade partners at both the national and local levels as well as the support of community partners and other non-governmental organizations, it is essential to create consensus within our larger network of key stakeholders.
We work closely with a variety of stakeholders at the national and divisional levels, including:
In addition to informal stakeholder engagement, we regularly receive input from stakeholders through our National Advisory Board, which is described in further detail here.
We believe that actively participating in the public policy-making process is an important aspect of being a responsible member of the communities in which we build and necessary to appropriately pursuing our business goals. To this end, we engage with public officials and other policy makers at all levels of government in discussions about issues that affect homeownership.
We make contributions to candidates for public office, irrespective of political party affiliation, and to certain ballot initiatives. We support candidates who understand the homebuilding process and champion the broadening of homeownership opportunities. We support ballot initiatives that enhance community development and services—primarily bond measures for schools, parks, transportation, water and environmental protection.
We are committed to complying with all laws that apply to the making and public reporting of political campaign contributions. Contributions to federal campaigns are made only by the KB Home American Dream Political Action Committee. We contribute to state and local campaigns as permitted by applicable law.
Our senior executive for government and public affairs oversees our participation in the public policy-making process.
There is an internal management approval process in place for political campaign contributions and a reporting process to our Board of Directors’ Nominating and Corporate Governance Committee.
In 2017, the KB Home American Dream Political Action Committee contributed $2,500 to candidates for Congressional offices and campaign committees. These contributions were reported to the Federal Election Commission and can be found on its website at www.fec.gov.
In 2017, we contributed $400,747 to campaigns for state and local offices in California and Nevada. The California contributions can be found on the California Secretary of State’s website at cal-access.ss.ca.gov.
We are also members of various trade associations in our markets, primarily to establish business connections with local building industry companies. From time to time, we obtain services from these trade associations, including local marketing studies, signage and advertising placements, and continuing education or training classes. Some of these trade associations automatically allocate a portion of the fees we pay for membership dues and services to use for their own independent political activities, and we do not monitor or control how these automatic allocations are used. To the extent we are informed of such automatic allocations by trade associations to which we pay fees of more than $50,000 in a fiscal year, we will publicly report the total amount automatically allocated. In our 2017 fiscal year, there were six such trade associations—Building Industry Association of Southern California, Home Builders Association of Central Arizona, Home Builders Association of Metro Denver, Leading Builders of America, North State Building Industry Association and Southern Nevada Home Builders Association. Based solely on their reports to us, these six trade associations automatically allocated an aggregate total of $152,875.
We have a number of governance structures that are specifically tasked with driving our sustainability strategies and actions throughout our entire organization:
Inquiries regarding our sustainability initiatives can be directed to email@example.com.
KB Home has been publishing carbon footprint measurement information since the release of our inaugural 2007 Sustainability Report, and we intend to continue to report on it as a normal course of business.