Charles G. Koch

Message from Charles Koch

At Koch Industries, Inc., we believe that for a business to survive and prosper, it must develop and use its capabilities to create real, sustainable, superior value for its customers and society. This belief helped shape our Sustainability Vision, which reflects our MBM^® Guiding Principles.

Koch companies create value by using resources more efficiently; protecting the environment and the safety and health of our workers and others; consistently applying good science; and, employing Market-Based Management^®. Value creation involves making people’s lives better and it contributes to prosperity in society.

Each Koch company maintains a continual focus on improving operations and we require employees to be unwavering in their commitment to our Guiding Principles. We place integrity first and strive for 10,000 percent compliance, with 100 percent of employees fully complying 100 percent of the time. When we fall short, we seek to identify why our efforts failed, determine how we can improve, learn from our experience and take steps to avoid falling short in the future.

This report describes Koch companies’ efforts in 2006 to achieve 10,000 percent compliance and go beyond compliance to create real, long-term value. From habitat preservation to river cleanups, emission reduction to recycling, Koch companies focus on projects that educate, protect the environment and improve the quality of life for us all.

Charles G. Koch
Chairman and Chief Executive Officer
Koch Industries, Inc.
August 2007