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Our Long-Term Commitment

CORPORATE

SOCIAL

RESPONSIBILITY

Pictured on the cover is Graybar’s Tucson, Ariz. branch, the Company’s first facility to achieve LEED Gold certification.

Graybar is a leader in the distribution of high quality electrical, communications and data networking products, and specializes in related supply chain management and logistics services. Through its network of more than 250 North American distribution facilities, it stocks and sells products from thousands of manufacturers, helping its customers power, network and secure their facilities with speed, intelligence and efficiency.

Our Values

Graybar employees work to protect and enhance the Company’s reputation by demonstrating our core values every day. PAGE 2

Environmental Sustainability

At Graybar, we are committed to environmental sustainability, both in the way we run our business and in the solutions we provide our customers. PAGE 4

The Communities We Serve

Graybar strives to forge connections that will have a positive influence in the communities where we do business. PAGE 8

Our People

As one of the largest employee-owned companies in North America, our employees take great pride in serving our customers and leading by example. PAGE 10

A

LETTER

FROM

OUR

CHAIRMAN,

PRESIDENT

AND

CEO

At Graybar, we believe being a good corporate citizen is simply the right thing to do.

Through our efforts, we can encourage and inspire success in our work and our communities.

As employee owners, we make decisions with a long-term view in mind. We have a unique and personal responsibility:

To each other and to the Company.

To our customers.

To our communities where we live and work.

Holding ourselves accountable for delivering results in these three areas is something Graybar takes seriously – whether we’re working with our customers and suppliers to contribute to a sustainable society or providing an atmosphere in which our employees learn, grow and prosper.

By aligning our corporate social responsibility efforts with our core values, we can create a better future for our company, our communities and our planet.

We also want to have a positive impact locally – making connections with those in every city where we have employ- ees and operations – and giving back in meaningful ways based on local needs.

Ultimately, we strive to make Graybar a place where people want to work, a company with which people want to do busi- ness, and a corporate citizen that helps our communities thrive.

And while these efforts are not new for Graybar, we’re excited to bring everything we’ve been doing together in this sum- mary. As part of our long-term view, we plan to share new information and results on a regular basis and continually refine our goals to support changing business conditions.

We hope this information will help you understand how corporate responsibility and sustainability fit into our company vision, culture, priorities, future goals

and our day-to-day life at Graybar.

Given increased pressures on natural resources and the need to protect the environment, Graybar will continue to provide valuable solutions to our customers by innovating with energy-efficient and sustainable products.

innovating with energy-efficient and sustainable products. KATHLEEN M. MAZZARELLA Chairman, President and Chief
innovating with energy-efficient and sustainable products. KATHLEEN M. MAZZARELLA Chairman, President and Chief

KATHLEEN M. MAZZARELLA

Chairman, President and Chief Executive Officer

MAZZARELLA Chairman, President and Chief Executive Officer We’re a values-driven company. While many businesses have

We’re a values-driven company. While many businesses have “core values,” Graybar’s values go beyond just words. Each represents who we are as a company and influences the way we work every day.

For more information about our corporate responsibility efforts, we encourage you to visit us online at graybar.com/corporate-responsibility.

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Graybar Principles

Strategic Purpose

As an employee-owned Company, Graybar strives to be a profitable, progressive business that provides employees with long-term career opportunities and the financial means to achieve a high quality of life, both while working and into retirement.

Values

INTEGRITY

EMPLOYEE OWNERSHIP

We tell the truth, do what is right and treat others with fairness and respect.

We take pride in our Company and demonstrate loyalty to the Company and to one another.

We adhere to high standards of ethics and business conduct.

We strive to be the best in all we do.

We take responsibility for our actions.

We win by working together toward common goals.

We behave in a way that protects and enhances Graybar’s reputation in the communities we serve.

We tie our personal success to Graybar’s success.

We tie our personal success to Graybar’s success. LONG-TERM VIEW We believe that long-term success is

LONG-TERM VIEW

We believe that long-term success is more important that short-term gains.

We cultivate loyal relationships that stand the test of time.

We invest in our employees, recognize their achievements and give them opportunities to build successful careers.

We work to keep Graybar strong

and healthy for future generations.

Mission

Graybar is the vital link in the supply chain, adding value for our customers and suppliers with innovative solutions and services.

CUSTOMER FOCUS

We are committed to satisfying our customers.

We deliver consistent, reliable and quality service.

We anticipate our customers’ needs and provide solutions that work.

We add value in the supply chain through innovation and continuous improvement.

Vision

FOR OUR

FOR OUR

FOR OUR

FOR OUR

FOR OUR

CUSTOMERS’

SUPPLIERS’

EMPLOYEES’

SHAREHOLDERS’

COMMUNITIES’

ADVANTAGE

ADVANTAGE

ADVANTAGE

ADVANTAGE

ADVANTAGE

We will be a valued resource for our customers by understanding and anticipating their needs while providing the best quality products and services.

We will be our suppliers’ preferred path for bringing their products and solutions to the marketplace, delivering value to our mutual customers and driving profitable growth for our respective companies.

We will challenge our employees to learn, grow and prosper in a culture that respects each individual and recognizes employees who care for our customers and contribute to Graybar’s success.

We will achieve results that provide our shareholders with a positive return on their investment, reinforce the culture and values of employee ownership and inspire a deep sense of pride in the Company.

Graybar will be an active corporate citizen by contributing to the communities where we do business, encouraging community involvement among our employees and demonstrating a commitment to environmental sustainability.

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FOUNDED IN 1869 BY INVENTOR ELISHA GRAY AND ENTREPRENEUR ENOS BARTON
FOUNDED IN
1869
BY INVENTOR ELISHA GRAY AND
ENTREPRENEUR ENOS BARTON
No. 465 ON THE 2014 FORTUNE 500 RANKING OF AMERICA’S LARGEST COMPANIES
No. 465
ON THE 2014 FORTUNE 500 RANKING
OF AMERICA’S LARGEST COMPANIES
WINNER OF TED MAGAZINE’S Greenest of the Green AWARD (2013)
WINNER OF TED MAGAZINE’S
Greenest of
the Green
AWARD (2013)
ONE OF THE LARGEST employee- owned COMPANIES IN NORTH AMERICA SINCE 1929
ONE OF THE LARGEST
employee-
owned
COMPANIES IN NORTH AMERICA
SINCE 1929
NAMED TO WORKPLACE DYNAMICS 150 Top National Workplaces LIST (2013)
NAMED TO WORKPLACE DYNAMICS
150 Top National
Workplaces
LIST (2013)
A NETWORK OF MORE THAN 250 NORTH AMERICAN DISTRIBUTION FACILITIES
A NETWORK OF MORE THAN
250
NORTH AMERICAN DISTRIBUTION FACILITIES
$12.9 million 2013 COST SAVINGS AND GROSS MARGIN IMPROVEMENT FOR THE COMPANY DUE TO CONTINUOUS
$12.9
million
2013 COST SAVINGS AND GROSS MARGIN
IMPROVEMENT FOR THE COMPANY DUE TO
CONTINUOUS IMPROVEMENT PROJECTS
INCORPORATED AS GRAYBAR ELECTRIC COMPANY, INC. ON DEC. 11, 1925
INCORPORATED AS
GRAYBAR ELECTRIC COMPANY, INC.
ON DEC. 11,
1925
RECIPIENT OF A Hero of the Planet AWARD FROM THE ST. LOUIS BUSINESS JOURNAL (2012)
RECIPIENT OF A
Hero of
the Planet
AWARD FROM THE ST. LOUIS
BUSINESS JOURNAL (2012)

Strategy

Our strategy is to sustain Graybar as an independent and employee-owned Company, while achieving the results that position us as an industry leader and allow us to work to the advantage of those we serve.

PROFITABLE GROWTH

We strive to achieve growth in sales, gross margin, and market share that can be sustained for the long-term health of the business.

IMPROVING PERFORMANCE

We continually work to improve our Company and make the best use of our resources to better serve our customers, suppliers, employees, shareholders, and the community.

WINNING WITH PEOPLE

We strive to create a performance- driven environment where employees can grow and prosper in a culture of recognition as they use their talents to contribute to Graybar’s success.

GRAYBAR

INNOVATING THROUGH

TECHNOLOGY

We use technology to enhance communication, improve efficiency and make it easier for customers and suppliers to do business with Graybar.

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Building a Better Tomorrow Through Sustainable Solutions

Given Graybar’s roots in science, technology and electricity, it’s not surprising that we have integrated sustainable philosophies into our business practices. We set our sights on long-term goals that make the Company stronger and healthier for future generations, instead of chasing short-term gains or passing fads.

Because we are an employee-owned company, every effort must support the financial health of the business. Making smart financial decisions is part of our commitment as employee owners, and positions us as a solid company our customers can count on for years to come.

This same attitude toward choosing financially beneficial environmental investments also guides how we help custom- ers prioritize their sustainability goals.

Graybar’s sustainability commitments cover three areas:

• Responsible stewardship of our resources

• Reducing our impact on the environment

• Providing sustainable solutions in the marketplace

A two-tier team spearheads Graybar’s internal sustainability approach.

The Sustainability Committee, comprised of senior leaders from various departments, evaluates ideas, sets overall policy and directs the deployment of sustainable initiatives companywide.

Graybar’s Green Team includes a cross-section of employees from various departments and disci- plines, including operations, sales and marketing, supply chain management and human resources. The Green Team conducts research, develops sustainable recommendations and shares inno- vative ideas with the Company’s Sustainability Committee. Members of this team take an active role in implementing sustainability programs within the Company.

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IMPROVING ENERGY EFFICIENCY

• Graybar began retrofitting its own district and branch facilities with more energy-efficient lighting in 2006. Locations were required to analyze potential savings and identify federal rebates to support the transition.

• We have since retrofitted more than 180 locations. Combined with our other energy-saving initiatives, this has resulted in a 24 percent decrease in energy usage since 2006.

• Graybar is also aligning locations with the ENERGY STAR ® program. ENERGY STAR provides a framework that enables Graybar to compare the energy efficiency potential of existing properties against similar spaces across the nation, then establishes

against similar spaces across the nation, then establishes action plans and tracks success. Graybar is committed

action plans and tracks success.

nation, then establishes action plans and tracks success. Graybar is committed to environmental sustainability, both
nation, then establishes action plans and tracks success. Graybar is committed to environmental sustainability, both
Graybar is committed to environmental sustainability, both in the way we run our business and
Graybar is committed to environmental
sustainability, both in the way we run
our business and in the solutions we
provide our customers.
to environmental sustainability, both in the way we run our business and in the solutions we
Graybar’s Tucson Branch is the first in Company history to be built to Leadership in

Graybar’s Tucson Branch is the first in Company history to be built to Leadership in Energy and Environmental Design standards (LEED ® ). This 55,000 square-foot, state-of-the-art facility was LEED Gold certified in September 2012 and serves as a way to showcase intelligent energy solutions to our customers.

• The following Graybar locations have earned ENERGY STAR certification: Austell, Ga.; Belleville, Mich.; Billings, Mont.; Columbia, S.C.; Duluth, Minn.; Fresno, Calif.; Green Bay, Wis.; Jefferson City, Mo.; Joliet, Ill.; Norcross, Ga.; Pittsburgh, Pa.; Portland, Ore.; Providence, R.I.; San Diego, Calif.; Seattle, Wash.; Stafford, Texas; Taunton, Mass.; Tucson, Ariz.; Youngstown, Ohio, and the Company’s Corporate headquarters in St. Louis, Mo. We plan to certify additional locations in the future.

• Data centers also consume a considerable amount of energy to operate and keep equipment cool. Graybar’s IT team configured our data center to improve air- flow and energy efficiency. This reconfiguration also enhances equipment performance and reliability.

IMPROVING DISTRIBUTION Since we deliver products to more than 130,000 customers across North America, reducing mileage and engine idling time can lower emissions and fuel consumption.

Graybar began using an integrated distribution and pack- age tracking software system in 2008. The software helps drivers map out more efficient distribution routes, which also improves on-time delivery.

Graybar continually integrates more fuel-efficient vehicles into its sales fleet as they become available. This helps us save fuel and reduce our impact on the environment.

DECREASING WASTE Graybar reinforces the role that each employee plays in our sustainability efforts through programs specifically aimed at reducing waste.

• In 2011, our corporate employees piloted a single- stream recycling program, which diverts approximately 65 percent of our trash from landfills each year.

• We continue to challenge all our locations to implement waste-reduction programs for their facilities.

• Employees are also doing simple things to reduce waste every day. For example, nearly

SINCE 2006, GRAYBAR HAS RETROFITTED MORE THAN

180 locations.

all Graybar employees have their paychecks deposited electronically, which cuts paper waste and saves employees’ time. It also requires no physical delivery and is more secure.

“We’ve tried to approach sustainability in a way that’s true to who we are,” said Larry Giglio, Senior Vice President, Operations. “As a historic, employee-owned company, the things we introduce into the business must be beneficial for the long term. By making ourselves stronger, we can better help others, and drive change on a broader scale.”

BREAKING NEW GROUND When possible, building new, company-owned locations gives Graybar the opportunity to integrate more extensive green practices.

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According to the Energy Savings Cost Council, energy-efficient lighting upgrades represent an average return of
According to the Energy Savings Cost Council, energy-efficient lighting upgrades represent an average return of
According to the Energy Savings
Cost Council, energy-efficient lighting
upgrades represent an average return
of 45 percent and a payback in as little
as two years.
“We are proud of the strides we have taken as
a company in the area of sustainability, and
are committed to growing our business and work-
ing to the customers’ advantage through Graybar
PowerSmart.”

– BILL MANSFIELD, SENIOR VICE PRESIDENT, SALES AND MARKETING

In May 2012, we opened a new facility in Tucson, Ariz. Graybar constructed the building using internationally recognized Leadership in Energy and Environmental Design (LEED ® ) standards, developed by the U.S. Green Building Council. The property was awarded LEED Gold certification, and enables us to showcase many of our energy-efficient products.

us to showcase many of our energy-efficient products. The facility includes a number of technologically advanced

The facility includes a number of technologically advanced products distributed by Graybar, including:

• 100 percent motion-activated warehouse lighting, with efficient, high-output fluorescent lamps to reduce energy.

• Energy-efficient and long-lasting LED lighting for parking and office areas.

100 percent

MOTION-ACTIVATED WAREHOUSE LIGHTING AT OUR LEED FACILITY IN TUCSON, ARIZ.

• A programmable, facility-wide lighting control and task system, which boosts energy efficiency and employee productivity.

• Lighting sensors to make the most use of daylight.

• A solar power-generation system, which typically meets 88 percent of the building’s power needs.

• Real-time solar energy production monitors, which track and reroute energy based on need.

• Three electric vehicle charging stations.

All of these products and solutions are also offered to customers by Graybar.

BUILDING A BRIGHTER FUTURE FOR CUSTOMERS Given Graybar’s internal initiatives – and extensive energy- efficient solutions – our Company is uniquely positioned to provide customers with effective ways to reduce their costs and increase the long-term sustainability of their facilities.

We work to our customers’ advantage with the Graybar PowerSmart ® platform, saving energy, time and money for companies operating existing facilities such as health care, retail, office and hospitality spaces.

Graybar PowerSmart teams specialize in developing custom- ized plans to yield energy savings and return on investment. One of the primary benefits of Graybar PowerSmart is that the platform is scalable – customers can implement immediate technologies, while preparing for future upgrades.

can implement immediate technologies, while preparing for future upgrades. 6 GRAYBAR CORPORATE SOCIAL RESPONSIBILITY

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The Green Challenge

Graybar has participated in the St. Louis Regional Chamber’s Green Business Challenge program, in conjunction with the Missouri Botanical Garden, since 2010. The St. Louis challenge is a part of a national pilot to improve sustainability, which also includes Denver, Colo., Portland, Ore., and Silicon Valley, Calif.

Denver, Colo., Portland, Ore., and Silicon Valley, Calif. Graybar adapted the Green Business Challenge and introduced
Denver, Colo., Portland, Ore., and Silicon Valley, Calif. Graybar adapted the Green Business Challenge and introduced

Graybar adapted the Green Business Challenge and introduced our own inter- nal “Graybar Green Challenge” in 2013. Through this program, locations earn points for a wide variety of local sustainability initiatives.

for a wide variety of local sustainability initiatives. Efforts focus on conducting sustainable outreach and
for a wide variety of local sustainability initiatives. Efforts focus on conducting sustainable outreach and
for a wide variety of local sustainability initiatives. Efforts focus on conducting sustainable outreach and
for a wide variety of local sustainability initiatives. Efforts focus on conducting sustainable outreach and
for a wide variety of local sustainability initiatives. Efforts focus on conducting sustainable outreach and
for a wide variety of local sustainability initiatives. Efforts focus on conducting sustainable outreach and
for a wide variety of local sustainability initiatives. Efforts focus on conducting sustainable outreach and
for a wide variety of local sustainability initiatives. Efforts focus on conducting sustainable outreach and
for a wide variety of local sustainability initiatives. Efforts focus on conducting sustainable outreach and
for a wide variety of local sustainability initiatives. Efforts focus on conducting sustainable outreach and

Efforts focus on conducting sustainable outreach and education, reducing waste and water consump- tion, and boosting energy efficiency. In addition, the program establishes expectations for the purchase of ENERGY STAR appliances over other options, performing Graybar PowerSmart assessments, expanding recycling programs and more. In its first year, we’re proud to have achieved 100 percent participation, with 43 locations reaching the goal of 80 percent of the total points.

reaching the goal of 80 percent of the total points. 2012 Award Winner St. Louis Business

2012

Award

Winner

St. Louis Business Journal

total points. 2012 Award Winner St. Louis Business Journal 2013 Award Winner “Greenest of the Green”

2013

Award

Winner

“Greenest of the Green” tED Magazine

“When we think about stewardship of resources, we consider both the environmental and the economic impact. We look for opportunities to help customers improve their facilities in a way that reduces overall energy consumption and supports their business objectives. We expect energy and sustainability to be important priorities moving forward, and Graybar PowerSmart can give our customers the per- formance they need, while also helping them save energy.”

– BILL MANSFIELD, SENIOR VICE PRESIDENT, SALES AND MARKETING

Commitment to Responsibly Sourced Materials

Graybar is committed to providing custom- ers with responsibly sourced products. We encourage our suppliers to source materials that are free from conflict minerals originat- ing in the countries covered by our Conflict Mineral Policy and, where appropriate, will work with our customers to obtain conflict free sources of the products they need. For specifics on our statement, visit graybar.com/ corporate-responsibility.

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Building a Brighter Future Where We Live and Work

Businesses thrive in vibrant and healthy communities. That’s why at Graybar, we strive to do our part to strengthen neighboring areas through meaningful charitable contributions and volunteerism. We align our philanthropic efforts with the interests of our employees, customers and suppliers, as well as the needs of people near our districts and branches.

Through our foundation and corporate giving programs, we actively contribute to more than 75 charities
Through our foundation and corporate giving programs, we
actively contribute to more than 75 charities and non-profits
nationwide.
“We’re a local business, so most of our community engage-
ment takes place at a local level,” said Beverly Propst, Senior
Vice President, Human Resources. “We prefer to support orga-
nizations where our employees are already involved. When
employees ask us to support these organizations, we try to
say ‘yes’ whenever possible.”
Supporting education has always been a priority at Graybar,
since it helps us build a better workforce for tomorrow and
aligns with our own internal training programs. When employ-
ees donate to higher learning institutions – including their
alma mater – we match their commitment.
In 2011, Graybar created Graybar CARES (Community,
Awareness, Responsibility, Education and Service) as a

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platform for employees, customers and suppliers to work together and give back to our communities. We recognize employee efforts and share events taking place across the country through the Outlook, our quarterly employee magazine, social media and external news releases. Through Graybar CARES efforts, more than $260,000 was raised in 2013. Early in 2014, Graybar raised more than $116,000 for charity.

TAKING CARE OF OUR OWN As an employee-owned company, we also believe it’s import- ant to support our fellow Graybar employees in times of unexpected hardship.

The Graybar Family Foundation, an independently run, non- profit organization, provides confidential, immediate support to Graybar employees who have a sudden need for reasons beyond their control, such as damage from a natural disaster or a medical emergency.

Many employees and retirees choose to make donations to the Graybar Family Foundation in honor of special occa- sions, in memory of family members or simply to support the mission of the organization. Customers and suppliers are also encouraged to donate.

For the 2013 spring training conference, Graybar districts, delegates and suppliers took part in the Graybar CARES fundraising and teambuilding challenge to help raise money for their respective charities. The Company raised a total of $144,000 with the California District coming out on top. Graybar awarded the district with an additional $5,000 to donate to their charity of choice, Homes for Our Troops, which builds homes adapted for disabled veterans.

Graybar employees, such as this group from the Fargo, N.D. Branch, work together to support
Graybar employees, such as this group from the Fargo, N.D. Branch, work together to support
Graybar employees, such as this group from the Fargo, N.D. Branch, work together to support
Graybar employees, such as this group from the Fargo, N.D. Branch, work together to support

Graybar employees, such as this group from the Fargo, N.D. Branch, work together to support their local communities.

Branch, work together to support their local communities. Our corporate office, as well as our branches

Our corporate office, as well as our branches and districts across the country have supported the United Way for more than 25 years.

have supported the United Way for more than 25 years. When an EF4 tornado struck Washington,
have supported the United Way for more than 25 years. When an EF4 tornado struck Washington,
have supported the United Way for more than 25 years. When an EF4 tornado struck Washington,

When an EF4 tornado struck Washington, Ill., employees from the East Peoria Branch – just ten miles away – donated food, toiletries and supplies to help those in need.

donated food, toiletries and supplies to help those in need. Employees from the Raleigh, N.C. Branch

Employees from the Raleigh, N.C. Branch volunteered with Habitat for Humanity. They built a home for one of their fellow employees and his family.

a home for one of their fellow employees and his family. When Hurricane Sandy hit the

When Hurricane Sandy hit the northeastern part of the United States and left a path of destruction in its wake, several branches took action by holding fundraisers to assist impacted employees. “In the face of a disaster, our main priority is ensuring the safety of our employees and our customers,” said Steven Horst, Vice President, Service and Administration. “As you would expect, Graybar employees stepped up to help others in their time of need. We see ourselves as a second family to one another.”

need. We see ourselves as a second family to one another.” Graybar and its employees take

Graybar and its employees take great pride in supporting a variety of charities and organizations. You may even find us participating in events like the Susan G. Komen Race for the Cure.

Employees in Bel- Ridge, Mo., celebrated Graybar’s Employee Ownership Day by coordinating a contest between various departments to sup- port the St. Louis Area Foodbank. In total, they collected and donated more than 2,600 pounds of food and nearly $1,000.

donated more than 2,600 pounds of food and nearly $1,000. San Antonio employ- ees volunteer at
donated more than 2,600 pounds of food and nearly $1,000. San Antonio employ- ees volunteer at

San Antonio employ- ees volunteer at Fisher House, a home away from home for families of military members undergoing medical treatment.

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A Foundation of Ownership

As one of the largest employee-owned companies in North America, Graybar has a distinct perspective on financial stewardship and how we do business. We’re proud to be employee-owned for more than 80 years and we place great value on our employee owners. But for us, employee ownership is about more than owning stock – it’s a mindset that shapes the way we work every day.

We’re compelled to be accountable and take responsibility for our results, because as employee owners, we all benefit when the Company does well. For this reason, Graybar’s employees serve as the key ingredient to the Company’s long-term success.

To help our employees understand how they can make a dif- ference, we strive to communicate openly and transparently about the state of our business. We stay connected through all-employee web conferences, monthly branch meetings, an employee web portal and employee surveys. Through these channels, we discuss our goals, achievements and challenges, and collaborate on how we can meet the chang- ing needs of our customers with innovative services and solutions.

By holding ourselves and each other accountable, combined with a workplace that strives for financial and personal success for employees, we create an environment in which

we can better serve our customers.

THE GRAYBAR ADVANTAGE We want Graybar to be recognized as a great place to work. To continue achieving that goal means serving as a profitable, progressive business that provides employees with long-term career growth and financial opportunities to achieve a high quality of life – both while working and into retirement. We do this through offering employee benefit programs and an employee stock purchase plan that helps employees plan well, invest well and live well.

Employee ownership is an exclusive privilege available only to eligible Graybar employees and retirees. Each year, eligible employees can choose to purchase Graybar stock. The share price of Graybar stock has not fluctuated. Since 1941, Graybar has paid a cash dividend of at least 10 percent annually, and stock dividends have been issued 31 times. From 2009 to 2013, our shareholders earned an extraordinary 24.1 percent annual return on their investment.

Thanks to our ownership culture and career development programs, Graybar’s retention rate is well above the wholesale distribution industry. In fact, 49 percent of our employees have more than 10 years with the Company.

In fact, 49 percent of our employees have more than 10 years with the Company. 10

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When Graybar employees purchased the Company from Western Electric in 1929, we made history as

When Graybar employees purchased the Company from Western Electric in 1929, we made history as one of the first large, employee-owned corporations in the U.S. Although our business has evolved immensely over the years, Graybar remains rooted in timeless core values that shape everyday life at the Company.

• Integrity

• Employee Ownership

• Long-Term View

• Customer Focus

Graybar also provides employees with a profit sharing and savings plan, into which the Company has contributed a five-year average of 11.7 percent of employees’ salaries. Employees are not required to make contributions to the plan, and they can choose from several investment funds. This plan gives employees a way to share in the success of the Company and save for their retirement. The Company also provides a defined benefit pension plan.

In addition to planning and investing for financial success, Graybar is introducing a new focus on wellness in 2014 to improve employees’ quality of life. We plan to provide education on health- and wellness-related topics, including nutrition, stress management and early detection and prevention of illnesses.

GROWING WITH GRAYBAR To support long-term career growth, Graybar has an extensive track record of hiring talented employees, investing in indus- try-leading employee development programs, and providing opportunities for employees to explore new and challenging roles throughout the Company. We have earned positive rec- ognition for our efforts to recruit military veterans and college graduates while expanding our program for internships.

Graybar provides employees with training that equips them to succeed in their jobs today, while preparing them for the future. Each employee is required to complete a core cur- riculum for their current role, while having access to a large library of courses from which they can expand their knowl- edge. Graybar Pathways – the Company’s talent management

system – helps employees track their progress along with their development and performance goals. In 2013, our employees completed more than 78,000 hours of training on topics ranging from products and technology to company procedures and professional skills.

Taking training to the next level, Graybar worked with Rutgers, the State University of New Jersey, in 2004 to develop

the State University of New Jersey, in 2004 to develop a unique leadership develop- ment program,

a unique leadership develop- ment program, called the Rutgers-Graybar Supply Chain Management Program. Nearly 100 high-potential employees from across the Company have participated

in the program. Together, they

explore new and innovative approaches to help us transform and improve our business. Most of the graduates continue to work for the Company and several have been promoted

since completing this program. This program earned the Gold Learning in Practice Excellence in Academic Partnerships Award from Chief Learning Officer

magazine in 2013.

78,000 hours

OF TRAINING WERE COMPLETED BY GRAYBAR EMPLOYEES IN 2013.

Graybar also developed a lead- ership training program in 2011

with The Ohio State University. This program has already given more than 100 Graybar branch management employees the opportunity to converge and learn new skills to use in leading their respective branches.

Additional classes are planned for 2014 and beyond.

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In addition to online opportunities, Graybar holds two national training conferences each year, along with
In addition to online opportunities, Graybar holds two national training conferences each year, along with

In addition to online opportunities, Graybar holds two national training conferences each year, along with other sales and management training meetings. When the bi-annual conferences started in 1993, they were a first for the industry.

started in 1993, they were a first for the industry. Because we know recognizing employees’ achievements
started in 1993, they were a first for the industry. Because we know recognizing employees’ achievements
started in 1993, they were a first for the industry. Because we know recognizing employees’ achievements
started in 1993, they were a first for the industry. Because we know recognizing employees’ achievements

Because we know recognizing employees’ achievements is also vital to effectiveness and retention, we acknowledge employees in a variety of ways. We celebrate employees’ milestone anniversaries through our service awards pro- gram, and our Cause for Applause program gives employ- ees and managers a platform for recognizing outstanding performance. In 2013, more than 29,000 Cause for Applause recognitions were sent.

A SAFE PLACE TO WORK Part of maintaining our position as a great place to work means operating with employee safety in mind. Our team is committed to providing a workplace free of hazards, reducing accidents and injuries while enhancing our productivity for customers.

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To track progress, we share monthly reports on safety data – a practice that’s been in place for more than 18 years. In addition to internal year-over-year benchmarks, we measure Graybar against the industry by comparing recorded work- place injuries through the Occupational Safety and Health Administration (OSHA). In terms of safety, we’re proud to be in the top 10 percent of companies in the wholesale and distribution industry.

We constantly look for ways to improve our safety perfor- mance through education, process improvements and the use of tools and technology. Some of the areas we focus on include: proper handling of hazardous materials, defensive driving for our truck drivers, safe lifting in the warehouses and the use of personal protective equipment.

Graybar’s Commitment …

to sustainability is an expression of our company’s core values, particularly our long-term view. We believe long-term success is more important than short-term gains; this belief influences all aspects of our business. We strive to keep our Company strong and healthy for future generations. In doing so, we look for ways preserve the environment. Our sustainability commitment encompasses:

RESPONSIBLE STEWARDSHIP OF RESOURCESthe environment. Our sustainability commitment encompasses: REDUCING IMPACT ON THE ENVIRONMENT PROVIDING SUSTAINABLE

REDUCING IMPACT ON THE ENVIRONMENTcommitment encompasses: RESPONSIBLE STEWARDSHIP OF RESOURCES PROVIDING SUSTAINABLE SOLUTIONS IN THE MARKETPLACE It’s

STEWARDSHIP OF RESOURCES REDUCING IMPACT ON THE ENVIRONMENT PROVIDING SUSTAINABLE SOLUTIONS IN THE MARKETPLACE It’s

PROVIDING SUSTAINABLE SOLUTIONS IN THE MARKETPLACE

It’s what being a good corporate citizen is all about and another example of how Graybar works to your advantage.

Graybar Electric Company, Inc. • 34 North Meramec Avenue • St. Louis, Missouri 63105
Graybar Electric Company, Inc. • 34 North Meramec Avenue • St. Louis, Missouri 63105

Graybar Electric Company, Inc. • 34 North Meramec Avenue • St. Louis, Missouri 63105 graybar.com/corporate-responsibility

Electric Company, Inc. • 34 North Meramec Avenue • St. Louis, Missouri 63105 graybar.com/corporate-responsibility