November 2010 Business Magazine by MBA Business Magazine

JANUARY 2011 Special Advertising Offer Happy Anniversary!

Is your company marking a milestone anniversary in 2011 that you want to celebrate? Well, there’s no better time than now! Advertise in the January edition of the Business Magazine and have your company stand out in this special section featuring Association member companies’ major anniversaries — from 20 and 25 years, up to 200 years or more. For details, contact Lori Maus Joint at 814/833-3200, 800/815-2660 or ljoint@mbausa.org. • Readership: 15,000 business owners, CEOs and top executives • Distribution: 27 counties in Pennsylvania, northeast Ohio and western New York • Digital edition: Included in the digital version at no extra cost with direct link to your company’s Web site!

ADVERTISING OPTIONS Anniversary Showcase Page Listing: ONLY $200 Includes company name, address, phone number, Web site, logo and 10 words or less of copy Full-Page Ad: $1,350 8-1/2” (w) x 11-1/4” (h) Trim: 8-1/4” (w) x 10-7/8” (h) Half-Page Ad: $750 Horizontal: 7-1/4” (w) x 4-7/8 “(h) Quarter-Page Ad: $500 4” (w) x 5-1/4” (h) 1/8-Page Ad: $200 3.5” (w) x 2” (h)

ADVERTISING ORDER INFORMATION Ad space deadline: WEDNESDAY, December 1, 2010 Ad materials deadline: FRIDAY, December 10, 2010 Advertising Contact: Lori Maus Joint • ljoint@mbausa.org • 814/833-3200 • 800/815-2660 Manufacturer & Business Association • 2171 West 38th Street • Erie, PA 16508

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THE ROOST

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Blue Ocean Strategy Center AREA OPEN PLAY SAVANNAH

CENTER

EDITORIAL > 7 / Health Matters

How to manage attention-deficit/ LOG hyperactivity disorder in the workplace. LOUNGE

THE HIDEOUT

JAMES SCHUSTER, MD MBA THE THICKET

9 / Legal Brief

STORAGE Why you should revisit your business SHED succession plan.

S. CRAIG SHAMBURG

13 / Charitable Giving WOODS REAT

RET ROCKFERN How structured corporate giving REST programs can bring an array of benefits.

TRENTON L. MASON

15 / Financial Adviser

Examining some important new tax measures that could affect your business. WILLIAM G. FINNECY, CPA

FEATURES > TREES TUNNEL OF

3 / Spotlight

SANDY

Sales Manager Robert Borgia of AccuSpec Electronics addresses some of the strategies BEACH THE developments and recent that have enabled this Erie-based electronic manufacturing service company and its team of 150 employees to double its sales and profitability MPOST CO within a three-year period.

10 / SafeNet’s Big Backyard Children’s Garden SafeNet representatives and Roar on the Shore® organizers share how a major charitable contribution from this year’s motorcycle rally has ensured that the Big Backyard Children’s Garden will finally be in full bloom by next spring.

21 / On the Hill Association President Ralph Pontillo explains how the U.S. government has failed capitalism — the true building block of economic growth.

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TAKE OUR ONLINE POLL!

INSERT / Training Catalog

Learn about the Association’s upcoming professional development and computer training courses in our new quarterly Training Catalog!

16 / SPECIAL SECTION >

In a challenging economy, small businesses are looking for creative ways to celebrate with their clients and employees this holiday season. View our special 2010 Corporate Gift Giving & Event Planning Guide now!

DEPARTMENTS > 5 / Business Buzz 18 / HR Connection

22 / Legal Q&A 25 / People Buzz

In your opinion, what trait do you value most in a leader? • Honesty/Integrity • Visionary • Competent • Sincere/Humble • Inspiring Respond now on the Business Magazine Web page found at www.mbausa.org. Results will be featured in our February 2011 Most Admired CEOs issue.

BUSINESS M A G A Z I N E Manufacturer & Business Association

VOLUME XXIII, NUMBER 11

2010 Roar速 Charity Plants the Seeds That Will Aid Victims of Domestic Abuse Page 10

Blue Ocean Strategy Center

Domestic Violence Safety Network

NOVEMBER 2010

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S PORCH SWING EXTRA CHAIRS

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November 2010 CORKSCREW

WILLOW

STACK TO FLIP AND FLAT STONES

THE ROOST

LAN THE MEADOW

DRIFTWOOD DEN

Blue Ocean Strategy Center AREA OPEN PLAY SAVANNAH

CENTER

EDITORIAL > 7 / Health Matters

How to manage attention-deficit/ LOG hyperactivity disorder in the workplace. LOUNGE

THE HIDEOUT

JAMES SCHUSTER, MD MBA THE THICKET

9 / Legal Brief

STORAGE Why you should revisit your business SHED succession plan.

S. CRAIG SHAMBURG

13 / Charitable Giving WOODS REAT

RET ROCKFERN How structured corporate giving REST programs can bring an array of benefits.

TRENTON L. MASON

15 / Financial Adviser

Examining some important new tax measures that could affect your business. WILLIAM G. FINNECY, CPA

FEATURES > TREES TUNNEL OF

3 / Spotlight

SANDY

21 / On the Hill Association President Ralph Pontillo explains how the U.S. government has failed capitalism — the true building block of economic growth.

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MAINTENANC ALLOWS FOR FLUSH CURB

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TAKE OUR ONLINE POLL!

INSERT / Training Catalog

Learn about the Association’s upcoming professional development and computer training courses in our new quarterly Training Catalog!

16 / SPECIAL SECTION >

DEPARTMENTS > 5 / Business Buzz 18 / HR Connection

22 / Legal Q&A 25 / People Buzz

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SPOTLIGHT > by Karen Torres Founded in 1989 and recognized as Erie County’s Employer of the Year in 2009, AccuSpec Electronics, LLC, headquartered at 8140 Hawthorne Drive in Erie, Pennsylvania, is an enterprising electronic manufacturing services company serving the industrial, medical, military and aerospace markets for customers outsourcing either all or part of their electronic assemblies. To learn more about this dynamic manufacturing facility, the Business Magazine recently asked Sales Manager Robert Borgia to explain some of the strategies and recent developments that have enabled AccuSpec, and its team of 150 employees, to double its sales and profitability within a three-year period.

AccuSpec is recognized as the largest electronic contract manufacturer in northwestern Pennsylvania serving customers throughout North America. Please explain AccuSpec’s full range of “cradle to grave” manufacturing services. AccuSpec offers design-for-manufacturing services, wire/cable assembly, coating/ potting, SMT/Thu-hole PC board assembly, and chassis/system integration in a full turnkey environment. We also offer repair and maintenance support as well as product support from “cradle to grave.” Who is your customer base and where are these companies primarily located? AccuSpec’s customer base ranges from Fortune 500 companies to smaller industrial companies and occasionally business startups. We serve companies in the following markets: transportation, medical products, industrial controls, safety equipment, military and aerospace. Approximately 90 percent of our customer base is located within a 500-mile radius of Erie, Pennsylvania. However, we are engaged in providing electronic assemblies to several companies in California and Nevada. One of the keys to AccuSpec’s operational success is its adoption of a more dynamic manufacturing system. Please explain the reasons for this aggressive strategy shift. To thrive in an increasingly competitive marketplace, AccuSpec needed a more dynamic manufacturing system providing improvements in customer management tools, materials management processes, job and shop floor control, bill of material management and sourcing of alternate parts. In addition, we sought to provide rapid prototypes services, use of KanBan programs, and an integrated electronic interface with our key vendors to achieve just-in-time delivery while maintaining low inventory levels. Our new system allowed us to accomplish this and more. How critical was the selection of a new ERP (enterprise resource planning) system to your operation? The system was crucial not only to our growth but also to our pro-active approach in supporting our customers’ needs and demands. Our leading edge Advanced Planning System engine ensures consistent and timely material flow, and our Demand Pull-based programs offer flexible coverage for our customers. What have been the results/benefits of implementing this system? Speed, flexibility, and total cost were the key elements to provide complete turnkey services to our customers. System software allows us the ability to monitor inventory turns, perform estimated annual usage calculations, alternate sources of supply and determine supplier performance, to name a few. These elements coupled with supply agreements, world-class supplier partnerships and auto-replenishment programs allow us to be a leader in supply chain and materials management. It also provides customer on-time delivery and quality management tracking to ensure customer satisfaction. How would you describe AccuSpec’s positioning today and opportunity to grow its market share in the near future? With the implementation of state-of-the-art equipment, rigorous training programs for all production employees and a world-class environment to produce quality products, we are at the threshold of attracting sophisticated customers with high expectations at a competitive price. An excellent example of this is the recent orders we have booked for assemblies that were previously manufactured in Mexico and China. Is there anything you would like to add? AccuSpec is both ISO 9001:2008 certified as well as ISO 13485:2008 for medical products. We utilize statistical process control and defects per million opportunities (a Six Sigma calculation) to conduct a root cause analysis. We also offer no charge for design-formanufacturability assistance, and during the quote process, we will identify valid low-cost alternatives to assist in driving future cost savings.

VOL. X XIV, NO. 11 NOVEMBER 2010 Manufacturer & Business Association Board of Governors

Editor in Chief

Executive Editor

Managing Editor & Senior Writer

Yvonne Atkinson-Mishrell John Cline Dale Deist Timothy Hunter Dan Ignasiak Mark C. Kulyk John B. Pellegrino Sr., P.E. Dennis Prischak Robert S. Pursell Lorenzo Simonelli Sue Sutto Phil Tredway Ralph Pontillo rpontillo@mbausa.org John Krahe jkrahe@mbausa.org Karen Torres ktorres@mbausa.org

Contributing Writers

Jessica Crocker William G. Finnecy Trenton Mason Ralph Pontillo S. Craig Shamburg James Schuster

Illustration & Photography

SafeNet Lechner & Benson Advertising Design iStockPhoto.com AccuSpec

Advertising Sales

Design, Production & Printing

Lori Maus Joint 814/833-3200 or 800/815-2660 ljoint@mbausa.org Printing Concepts Inc. printcon@erie.net

ON THE COVER: Learn how this year's Roar on the Shore® charity, SafeNet's Big Backyard Children's Garden, has planted the seeds that will aid victims of domestic violence thanks to an outpouring of support from rallygoers and the business community. See story on Page 10.

Mission Statement The Manufacturer & Business Association is dedicated to providing information and services to its members that will assist them in the pursuit of their business and community interests. – Board of Governors Manufacturer & Business Association 2171 West 38th Street Erie, Pa. 16508 814/833-3200 or 800/815-2660 www.mbausa.org © Copyright 2010 by the Manufacturer & Business Association. All rights reserved. Reproduction or use of editorial, pictorial or advertisements created for use in the Business Magazine, in any manner, without written permission from the publisher, is prohibited. Unsolicited manuscripts cannot be returned unless accompanied by a properly addressed envelope bearing sufficient postage. The magazine accepts no responsibility for unsolicited manuscripts or artwork. The Business Magazine and Manufacturer & Business Association do not specifically endorse any of the products or practices described in the magazine. The Business Magazine is published monthly by the Manufacturer & Business Association, 2171 West 38th Street, Erie, Pa. 16508. Phone: 814/833-3200 or 800/815-2660.

November 2010 > www.mbausa.org > 3

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Business Buzz

DEPARTMENTS > Contact: Jessica Crocker

design and layout services, aftermarket DYNAMIC MANUFACTURING ACQUIRES ISO 9001 CERTIFICATION services, electromechanical assembly and cable assembly. Dynamic Manufacturing has acquired ISO 9001 certification of its quality For details, visit the companyâ&#x20AC;&#x2122;s Web management system from Bureau site at www.dynamicmanufacturing. 7FSJUBT B HMPCBMMZ renowned thirdparty auditing ERIE SALES CLUB HOLDS INAUGURAL MEETING firm. ISO 9001 is Recently, nearly 30 local an internationally sales professionals attended recognized the first-ever Erie Sales Club standard for quality meeting at Knowledge Park, management located near the Penn Statesystems. Erie campus. The Erie Sales Club is a free education and A Matric Group networking resource for sales company located representatives and sales From left: Dan Omniewski, in Seneca, REALTOR; Marsha Marsh, REALTOR managers in northwest Pennsylvania, and owner, Marsha Marsh Real Pennsylvania. The clubâ&#x20AC;&#x2122;s next Estate Services; Jim Roddy, Dynamic quarterly meeting will president, Jameson Publishing; Manufacturing be from 7 a.m. to 8:30 a.m. Derek Van, sales coach, Jameson provides electronic Publishing; and Christie Mahany, Wednesday, November 10. manufacturing REALTOR. services, electronFor details, visit www.ErieSalesClub.com. ics engineering

ERIEZ ANNOUNCES HYDROFLOW ACQUISITION Erie-based Eriez, a world authority in magnetic, vibratory and inspection applications, has acquired Ohiobased Hydroflow Filtration Systems and the Systems Equipment Division (SED) of fluid recycling products. As a result, Hydroflow systems and SED products will be sold under the Eriez name. Hydroflow Filtration Systems and SED Fluid Recycling Equipment provide a complete line of standard and custom design filtration and fluid recycling products to the metalworking industry. According to Eriez President and CEO Tim Shuttleworth, the company will retain key Hydroflow employees, who will work in the newly established EriezHydroflow office in the Maumee/ Toledo area. For details,visit www.eriez.com.

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,YPL 6MĂ&#x201E; JLZ 1HTLZ[VÛ 6MĂ&#x201E; JLZ :[H[L :[YLL[ :\P[L 7PUL :[YLL[ :\P[L ,YPL 6MĂ&#x201E; JLZ 1HTLZ[VÛ 6MĂ&#x201E; JLZ ,YPL 7LUUZ`S]HUPH 1HTLZ[VÛ 5@ :[H[L :[YLL[ :\P[L 7PUL :[YLL[ :\P[L *LY[PĂ&#x201E; LK 7\ISPJ (JJV\U[HU[Z ,YPL 7LUUZ`S]HUPH 1HTLZ[VÛ 5@ The McGladrey Alliance is a premier affiliation of independent accounting and consulting firms. The McGladrey Alliance member firms maintain their name, autonomy and independence delivery of services and maintenance of client *LY[PĂ&#x201E; LK 7\ISPJ (JJV\U[HU[Z and are responsible for their own client fee arrangements,

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relationships. The McGladrey Alliance is a business of RSM McGladrey, Inc., a leading professional services firm providing tax and consulting services. McGladrey is the brand under which RSM McGladrey, Inc. and McGladrey & Pullen, LLP serve clientsâ&#x20AC;&#x2122; business needs. McGladrey, the McGladrey logo and the McGladrey Alliance signatures are used under license by RSM McGladrey, Inc. and McGladrey & Pullen, LLP. The McGladrey Alliance is a premier affiliation of independent accounting and consulting firms. The McGladrey Alliance member firms maintain their name, autonomy and independence and are responsible for their own client fee arrangements, delivery of services and maintenance of client relationships. The McGladrey Alliance is a business of RSM McGladrey, Inc., a leading professional services firm providing tax and consulting services. McGladrey is the brand under which RSM McGladrey, Inc. and McGladrey & Pullen, LLP serve clientsâ&#x20AC;&#x2122; business needs. McGladrey, the McGladrey logo and the McGladrey Alliance signatures are used under license by RSM McGladrey, Inc. and McGladrey & Pullen, LLP.

Health Matters

EDITORIAL > by James Schuster, MD MBA

Managing ADHD in the Workplace Attention-deficit/hyperactivity disorder â&#x20AC;&#x201C; more commonly known as ADHD â&#x20AC;&#x201C; is a well-known affliction with school-age children, but many times, its existence in adults is overlooked. Itâ&#x20AC;&#x2122;s important to know that ADHD in adults is not a rare condition. Approximately 3 percent to 5 percent of adults have it to some degree and, in general, men are more likely to be affected than women. It is a disorder that some people are able to grow out of as they mature, but for some, the condition remains well into adulthood. Two-thirds of all adults who had ADHD as a child still have it as adults. What is ADHD? ADHD is a neurobiological disorder characterized by inappropriate impulsivity, inattention, and, possibly hyperactivity. Because hyperactivity diminishes as people mature, it was believed that the condition affected only adolescents. However, many symptoms continue into adulthood. Symptoms include: inattentiveness, problems with self-control and sense of responsibility, time management and organization difficulties, restlessness and impulsiveness. Adults with ADHD also have problems with relationships with others, including spouses. Impact in the Workplace The impact of adults with ADHD can show up in the workplace. Often, employees who are affected by it have trouble concentrating on a task, or have trouble completing tasks. Employees also may have trouble establishing relationships with coworkers or may say inappropriate things without thinking it through.

Diagnosing ADHD One difficulty in treating ADHD in adults comes in diagnosing it. It is not a condition that many primary care physicians deal with often, or think much about. As a consequence, they may be reluctant to diagnose it. Individuals who wonder about whether they have ADHD might fill out various types of questionnaires or by studying a list of symptoms. A good Internet site for information about ADHD resources in local areas is the Children and Adults with ADHD organization, www.chadd.org. If you suspect you may have ADHD, you should talk with your physician or a psychologist about your condition. Because adults who have ADHD may not know that they have it, they may think of themselves as lazy or have low self-esteem. If they are properly diagnosed, they may find relief in knowing that there is a reason for their actions and that help may be possible. It can often make a very significant difference in their personal and professional lives. On the worksite, an employer who is concerned about an employeeâ&#x20AC;&#x2122;s possible ADHD condition might consider referring the employee to an EAP (employee assistance program) representative. EAPs have experience with ADHD and can detect symptoms and recommend a more extensive examination in order to get a more accurate diagnosis. Treating ADHD A multi-disciplinary approach to treatment is most effective with adults. Treatments could include: t #FIBWJPSBM UIFSBQZ t .FEJDBUJPO

t 4VQQPSU BOE FEVDBUJPO JODMVEJOH marital and individual support groups t 4LJMM USBJOJOH Stimulants are the most common medications used in ADHD treatment in adults because they have shown to help with focus and reduction of hyperactivity. Since they are shortacting (less than 12 hours a day) and are controlled substances, their use requires close collaboration between the employee and his or her physician. A Team Approach A comprehensive, team approach to ADHD is considered the best treatment for adults. The team would consist of the person with the condition, health-care professionals, a spouse or significant other, and other persons in the adultâ&#x20AC;&#x2122;s immediate GBNJMZ 7PDBUJPOBM UIFSBQZ DBO IFMQ in terms of learning how to structure their environment. Short or long-term psychotherapy also can help. For more information about ADHD, visit www.upmchealthplan.com. James Schuster, MD MBA, is chief medical officer for Community Care, a behavioral health organization, which is part of the integrated partner companies of the UPMC Insurance Services Division â&#x20AC;&#x201C; which also includes UPMC Health Plan, LifeSolutions, UPMC for You (Medical Assistance), and E-Benefits â&#x20AC;&#x201C; and which offer a full range of insurance programs and products.

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Legal Brief

EDITORIAL > by S. Craig Shamburg

Revisiting Your Business Succession Plan January 1, 2010 marked the end of the U.S. Estate and GenerationSkipping Transfer Taxes ("Estate Tax"), at least for a year. It was believed that the Estate Tax would return at some point during 2010 at the levels in effect for 2009. However, as of the writing of this article, new Estate Tax legislation has not been enacted. With the absence of new legislation, the Estate Tax is scheduled to return in 2011 with the tax system that was in place in 2001. Thus, the federal exemption amount (meaning the amount that can be passed to your children or other non-spousal heirs free of Estate Tax) will be $1 million, and the top marginal tax rate will be 55 percent. Therefore, if you are a small-business owner with an estate worth more than $1 million, you may want to revisit your business succession plan. Any succession plan typically starts by obtaining an accurate value of your business. This will give you some basis to calculate the potential Estate Tax your family may owe. Once you determine the value, you may consider some of the following components typically involved in a succession plan:

Gifting

You and your spouse are currently permitted to each make tax-free gifts of up to $13,000 per year, per person. Therefore, gifting fractional interests of your business may be an efficient way to transfer ownership of the company while still maintaining control over operations. This plan also may allow you to take advantage of discounts on the value of the interests transferred including discounts for lack of control and marketability.

Grantor Trusts

A grantor trust is a trust in which you transfer assets, including small-business stock, into the trust and maintain a stream of income, whether through annuity payments or interest payments, for a set term. The assets transferred into the grantor trust are valued on the date of transfer for Estate and Gift Tax purposes. Therefore, any appreciation or income earned on the assets during the trust term are kept out of your estate and passed on to the beneficiaries free of Estate Tax.

Buy/Sell Agreement

Every small business with multiple owners should consider entering into a buy/sell agreement. In practice, there are typically two types of buy/sell agreements: cross-purchase agreements and redemption agreements. A crosspurchase agreement is one in which the other business owners agree to purchase the interest of a deceased owner after death. A redemption agreement, on the other hand, is one in which the company agrees to purchase the deceased ownerâ&#x20AC;&#x2122;s interest after death. Either agreement can be effective at setting the value of the business within your estate, and ensuring a fair price to your heirs.

Life Insurance

Life insurance plays an integral role in most succession plans. In conjunction with a buy/sell agreement, adequate life insurance can ensure that your particular succession plan can be implemented without financial hardship. In the context of a cross-purchase agreement your co-owners should

own adequate life insurance on your life, so that upon your death they have adequate funds to purchase your interest in the company from your heirs. Similarly, if you decide a redemption agreement makes more sense for your particular enterprise, the company should have adequate insurance to purchase your stake in the business from your estate. Life insurance also can be a useful tool to provide the liquidity necessary to pay any Estate Tax and Pennsylvania Inheritance Tax as a result of your death, or to equalize distributions to children that may not inherit the business. Moreover, you may want to consider purchasing the life insurance through an Irrevocable Life Insurance Trust (ILIT). An ILIT has the ability of removing the proceeds of the life insurance from your taxable estate, thereby reducing any Estate Tax due on your death. For more information about these strategies, contact S. Craig Shamburg at MacDonald, Illig, Jones & Britton LLP at 814/870-7716 or cshamburg@mijb.com.

S. Craig Shamburg is an associate at the law firm of MacDonald, Illig, Jones & Britton LLP. A graduate of the Pennsylvania State University and the University of Dayton School of Law, he practices in the areas of estate planning, estate and trust administration, tax and business law.

November 2010 > www.mbausa.org > 9

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Shown here is a sketch of the Big Backyard Children’s Garden by Dahlkemper Landscape Architects and Contractors.

2010 Roar® Charity Plants the Seeds That Will Aid Victims of Domestic Abuse There is something to be said for the simple joys of a garden — a place where a child can play and imagine, be messy, create, build and explore. But for children who have been exposed to yelling and hitting, and the many faces of domestic violence, a garden can be another world — a safe and secure sanctuary from the storm of emotional and physical abuse. In Erie, Pennsylvania, that refuge is the Big Backyard Children’s Garden, a green space that occupies a 189-by-169-foot area off East 9th between Holland and German streets. The site is the final phase in a $2-million capital campaign for SafeNet, a 35-year-old not-forprofit organization that serves nearly 3,000 victims of domestic violence each year. The first two phases of the project allowed the agency to expand and renovate its existing Hospitality 10 < www.mbausa.org < November 2010

House Shelter and construct additional housing nearby — providing nearly 300 women and 300 children a safe place to stay and access additional services, including legal, medical, relocation and housing assistance, annually.

Contractors — was to create “a beautiful outdoor space with play areas and a tranquil garden where women and children can think, relax, play and safely spend time together in the sun and the fresh air.”

“We got an unwanted, in a way, expansion, because domestic violence is a problem that is not going away,” explains SafeNet Executive Director Linda Lyons King. “And what we ended up with is a very little backyard and no place for the kids to play.”

SafeNet Board President Shirley describes the area as a “portal into a dimension that is serene, calm and without abuse, without the yelling screaming.”

Fortunately, once lots to the north of the property became available for purchase, SafeNet began to cultivate the idea for the Big Backyard. The design — the collaboration of SafeNet, internationally known environmental education expert Ken Finch, and Dan Dahlkemper of Eriebased Dahlkemper Landscape Architects and

Williams different tranquil, and the

“What we’re also trying to do here is stop the cycle of violence that is perpetuated,” adds King, “by providing a space for children to nurture their creative spirit and become caretakers of nature.”

A Garden Grows

Thanks to private donors, and a $75,000 contribution from this year’s Roar on the Shore®, the Big Backyard Children’s Garden will finally

SafeNet, located at 1702 French Street in Erie, Pennsylvania, is dedicated to ending interpersonal violence and providing sanctuary to women and children who have lived with domestic violence. In addition to shelter, the organization provides support, education and advocacy and promotes changes in legislation and social policies on domestic violence. Did You Know? t 0OF JO GPVS XPNFO QFSDFOU IBT FYQFSJFODFE domestic violence in her lifetime. t *O B OBUJPOBM TVSWFZ PG "NFSJDBO GBNJMJFT QFSDFOU of the men who frequently assaulted their wives also frequently abused their children. Domestic Violence Safety Network

t 0O BWFSBHF CFUXFFO BOE DIJMESFO VOEFS age 12 were residents of households experiencing JOUJNBUF QBSUOFS WJPMFODF JO QFSDFOU PG JODJEFOUT

be in full bloom by next spring. The annual motorcycle rally is estimated to draw more than 60,000 bikers and bike enthusiasts to Erie, Pennsylvania, to raise funds for a worthwhile charitable cause. â&#x20AC;&#x153;What started out as an idea for a much-needed resource for these children was put onto the fast track once RoarÂŽ and its supporters got involved,â&#x20AC;? says Richard Knight, chairman of the 2010 Roar on the Shore Board. â&#x20AC;&#x153;And now, we are helping to see this vision realized.â&#x20AC;? The once-vacant lot willl soon be transformed into a beautifully landscaped activity and environmental education area â&#x20AC;&#x201C; truly a one-of-akind outdoor space in the heart of the inner city. Throughout the Big Backyard will be flowering trees and plants for children to enjoy. There also are plans for several activity areas including: a climbing/crawling area; a messy materials area for kids to use their imagination and experiment; and, a building area equipped with building blocks, giving children the chance to strengthen their visual space, mathematical and abstract thinking abilities.

involving female victims and 25 percent of incidents involving male victims. t 4UVEJFT TVHHFTU UIBU CFUXFFO NJMMJPO UP NJMMJPO children witness some form of domestic violence annually. t 5IF DPTU PG EPNFTUJD WJPMFODF FYDFFET CJMMJPO FBDI ZFBS CJMMJPO PG XIJDI JT GPS EJSFDU NFEJDBM and mental health services. t 7JDUJNT PG EPNFTUJD WJPMFODF MPTU NJMMJPO EBZT PG QBJE work because of the violence perpetrated against them by current husbands, boyfriends and dates. This loss is the equivalent of more than 32,000 fulltime jobs and almost 5.6 million days of household productivity as a result of domestic violence. Sources: National Coalition Against Domestic Violence and Domestic Violence Resource Center

millions of riders who contribute significantly to the multitude of charity events held each year.

percent of SafeNetâ&#x20AC;&#x2122;s clients are children, and 95 percent of them are age 12 and younger.

Organizers say thatâ&#x20AC;&#x2122;s why the selection of the RoarÂŽ beneficiary is so important. Previous RoarÂŽ rallies have raised more than $175,000 for various charities, including the John Kanzius Cancer Research Fund, Shriners Hospitals for Children â&#x20AC;&#x201D; Erie, and 2009â&#x20AC;&#x2122;s beneficiary, Operation Iraqi Freedom and Operation Enduring Freedom veterans and their families.

â&#x20AC;&#x153;I remember visiting the site probably three or four years ago, and talking to them (SafeNet) about the concept and that they were in the beginnings of the fundraising stages,â&#x20AC;? he says. â&#x20AC;&#x153;This has allowed that to move to a conclusion much more quickly.â&#x20AC;?

â&#x20AC;&#x153;SafeNetâ&#x20AC;&#x2122;s Big Backyard Childrenâ&#x20AC;&#x2122;s Garden was a perfect match to the Roar on the ShoreÂŽ philosophy of community service,â&#x20AC;? states Knight. â&#x20AC;&#x153;Children are the most precious and vulnerable members of our society. It is a moral imperative that we care for, protect and nurture them so they have a chance to thrive. They represent our future and our best hope for ending the vicious cycle of abuse and domestic violence.â&#x20AC;? Joe Sinnott, Erie mayor and Roar Board member, said the decision to select SafeNetâ&#x20AC;&#x2122;s project for the rallyâ&#x20AC;&#x2122;s charitable contribution was critical because of the support it provides the community, especially the youth. Nearly 50

â&#x20AC;&#x153;Otherwise,â&#x20AC;? he adds, â&#x20AC;&#x153;it might have been another year or two, or perhaps even more before the funds were raised to make this a reality.â&#x20AC;?

Outpouring of Support

The Big Backyard Childrenâ&#x20AC;&#x2122;s Garden is a project that has required support from the entire community and support in many different ways. Not only did bikers turn out to support the project, but also more than 50 businesses through sponsorships and donations. â&#x20AC;&#x153;For those of us fortunate enough to have parents who provided a loving and caring environment, the backyard was a safe place to wish, play, learn, dream and grow,â&#x20AC;? states RoarÂŽ >

Other special features will include a nature art area that will be outfitted with pencils, paper, clay and paints, which will encourage children to develop close observational skills; a music and movements stage for music and dance; a gardening area; a gathering area for group activities; a dirt digging area; a tricycle track for three-wheeling; and, a teen space for older children to gather and talk. â&#x20AC;&#x153;Children need a place where they can be safe and play â&#x20AC;&#x201D; and just be kids,â&#x20AC;? adds Dan Ignasiak, president of SEPCO-Erie and chairman of the Manufacturer & Business Association (MBA) Board of Governors, which presents the RoarÂŽ rally, along with various business sponsors and the City of Erie. â&#x20AC;&#x153;We are proud to help SafeNet create this much-needed sanctuary for these children and make a difference in their lives.â&#x20AC;?

Right Project, Right Time

Hardly a day goes by without reading about various events that are organized, promoted and supported by the tens of thousands of motorcycle groups of every kind, along with

The Big Backyard is a landscaped activity and environmental education area for SafeNetâ&#x20AC;&#x2122;s clients to enjoy. Nearly half of those clients are children, with the majority age 12 and younger.

November 2010 > www.mbausa.org > 11

Fundraising Co-Chairs Seth and Bev Tuttle. “We can’t thank the businesses enough who gave so generously to help build the garden.” King, Williams and the SafeNet Board of Directors were overwhelmed by the outpouring of support from rallygoers, the City, business community, and especially the MBA and the Roar Board in helping make the Big Backyard a reality. King says she’s never seen anything like it in all her years of fundraising. “As a nonprofit, we’re used to doing things slowly dollar by dollar.” “They are achievers ... miracle workers,” adds Williams.

Building Dreams, Nurturing Community

Much like the Big Backyard that it is helping to build, Roar on the Shore® continues to yield amazing results for charity and the region at large. Organizers estimate that the economic impact of the three-day event is nearly $18 million to $21 million — a much-needed boost for the area. “It’s an important event for the community for a couple of reasons... it brings money into our hotels, our restaurants, and many different venues,” notes Sinnott. “But there’s also an ancillary effect, and that is, it brings a lot of people to our community for the first time. And in doing so it allows people to see this community, which will, in turn, bring others here.” The mayor says there wasn’t a day that passed when he didn’t meet visitors from outside the

region who were impressed by the area, the rally, and knowing that their donations were going toward a good cause. For SafeNet, “it’s allowed something that they’ve felt very strongly about to come to fruition,” he explains. “I think that’s an important thing for the organization and for their mission. I think it’s an important thing for the community as a whole, in seeing that we can make an impact, and I think that also it will allow people to see that the things that they come to support actually do make a difference.”

Thousands of rallygoers attended 2010’s Roar on the Shore® motorcycle rally in Erie to help raise money for the Big Backyard Children’s Garden project. Next year’s Roar® is scheduled for July 14, 15 and 16. Attendance is expected to be upwards of 60,000 people.

For now, those people don’t have to look any further than the Big Backyard, where, by supporting Roar on the Shore®, they’ve planted the seeds that will aid hundreds of victims of domestic abuse. “That is exactly what we are doing,” adds Williams, “saving the souls in our community.” To learn more about SafeNet or Roar on the Shore®, visit www.safeneterie.org or www.roarontheshore.com.

The Manufacturer & Business Association, Roar on the Shore® and SafeNet would like to thank the following companies and groups for their financial and in-kind donations that made the Big Backyard Children’s Garden possible:

Blue Ocean Strategy Center

Domestic Violence Safety Network

Dahlkemper Landscape Architects & Contractors Mayer Brothers Construction Co. Johnston's Evergreen Nursery Contemporary Landscape Designs Mele Plumbing & Heating American Gutter Systems Clarence Kearney DJ Bill Page Gery Nietupski Niethamer & Owens Times-News

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EDITORIAL > by Trenton L. Mason

Charitable Giving To Give or Not to Give

Structured corporate giving programs bring an array of benefits Famous anthropologist Margaret Mead once said: “Never doubt that a small group of thoughtful, committed citizens can change the world. Indeed, it is the only thing that ever has.” This quote seems particularly meaningful in light of recent economic hardships. Now is a perfect time for thoughtful companies large and small to commit to making a positive impact in their communities! Please consider these guidelines: Structure matters – Work hard up front to plan who and how you will help. Do you want to get involved in multiple causes or just one or two? Will you focus on giving to national charities or keep it local? Perhaps more than anything else, it is imperative that givers seek to understand the “why” behind their plans. Commit to putting your ideas on paper. Even the most remedial of plans can be effective. 7JTJCMF TUSVDUVSF QSFDMVEFT TVDDFTT because it encourages early scrutiny based on your corporate culture and thus can eventually foster greater buyin from the entire team. Policy helps – Writing out a formal giving policy will help your staff visualize where you are driving the program. Policies help employees by providing a point of reference as to the objectives and structure of your giving plan. Don’t be afraid to spell out any expectations for volunteerism you have for your staff. Even if they don’t agree with all the logic behind your company’s program, they will appreciate seeing that management has a road map and is providing clear communication on the subject. Authenticity is key – Some say, “the more you give the more you get.” While this may be true, it is extremely important to remember that as good corporate citizens we should do

everything in our power to avoid failing into this tempting business proposition. We may make money when we do good things, but we should never do good things just to make money. In many ways, community giving places us squarely on the stage of public opinion. We become very transparent and it is fitting that our true motives are brought very close to the surface. If you are authentic in your desires, people will appreciate that and they likely will want to have more contact with you and/or your company. Put PR in its proper place – A popular business book recently drove home the point that we are living in the age of PR. Essentially, smart companies know that it is better to connect with consumers through programs that get them involved in their communities in a genuine way. Public relations builds a brand’s identity, while advertising maintains corporate messaging. Ask yourself: “What can be done to create high-impact giving that makes people talk and want to get involved?” Go beyond the check – Most charities (especially local ones) are grateful for any support. But what they tend to prize more than anything is the knowledge that a partnership with your company will bring intangibles. Can you bring a full crew of volunteers to an event on behalf of a local organization or donate employees’ time to help plan and execute a program that is vital to the charity? If you can go beyond the standard check writing, your giving will be magnified tenfold. Those will become the times that staffers remember most fondly; you will build the relationships that last a lifetime. Don’t be shy – Ideally, we would all prefer to give irrespective of fanfare. The reality is that many of us are using corporate funds to jumpstart worthy

initiatives. Simultaneously, we find ourselves actively soliciting help from our consumers. More often than not, this necessitates accountability. People want to know what was raised, donated, or achieved. Only you will know if it is better as a corporate giver to do so quietly and without fanfare. Other times, you may want public attention so that more people will want to help with future initiatives. Go with what feels right and don’t be shy about your decisions! Like so many business initiatives, you will make some mistakes, but you will improve. Even more importantly, you will be helping people and connecting with your community in a meaningful and lasting way. There really is a lot to love about that! For more information about charitable giving as a corporate strategy, please contact Trenton Mason at the Erie General Electric Federal Credit Union at 814/464-8265 or tmason@egefcu.org

Trenton L. Mason is the chief marketing officer for the Erie General Electric Federal Credit Union. He has an extensive background in organizational leadership and marketing and has worked with a variety of organizations nationwide. He is responsible for the Credit Union’s Sales and Advertising Division and oversees its Charitable Giving and PR programs. In the last two years alone, the GE Credit Union (a not-for-profit financial cooperative) has raised close to $150,000 for more than 35 local charities.

November 2010 > www.mbausa.org > 13

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EDITORIAL > by William G. Finnecy, CPA

Financial Adviser Important New Business Tax Updates A number of important new tax measures went into effect this past summer that may affect businesses in northwestern Pennsylvania, especially in connection with tax breaks for new hires — small-business health-care credits. Here are some examples: Guidance addresses tax breaks for hiring new employees. Employers are exempted from paying the employer 6.2-percent share of Social Security (OASDI) employment taxes on wages paid in 2010 to newly hired qualified individuals. These are workers who: 1) begin employment with the employer after February 3, 2010 and before January 1, 2011; 2) certify by signed affidavit, under penalties of perjury, that they haven't been employed for more than 40 hours during the 60-day period ending on the date the individual begins employment with the qualified employer; 3) do not replace other employees of the employer (unless those employees left voluntarily or for cause); and, 4) are not related to the employer under special definitions. The payroll tax relief applies only for wages paid from March 19, 2010 through year-end 2010. Employers may qualify for an upto-$1,000 tax credit for retaining qualified individuals. The workers must be employed for a period of not less than 52 consecutive weeks, and their wages for such employment during the last 26 weeks of the period must equal at least 80 percent of the wages for the first 26 weeks of the period. The Internal Revenue Service (IRS) has issued guidance on these tax breaks in the form of frequently asked questions. They carry valuable information on

subjects such as the scope of the exemption, how it interacts with other tax breaks, and when an employer must receive the employee’s certification of former unemployment status. Detailed guidance released on new small business health-care credit. The IRS has issued detailed guidance on the small employer health insurance credit created by the recently enacted health-reform legislation. Under the new law, effective for tax years beginning after December 31, 2009, an eligible small employer (ESE) may claim a tax credit for non-elective contributions to purchase health insurance for its employees. An ESE is an employer with no more than 25 full-time equivalent employees (FTEs) employed during its tax year, and whose employees have annual full-time equivalent wages that average no more than $50,000. However, the full credit is available only to an employer with 10 or fewer FTEs and whose employees have average annual full-time equivalent wages from the employer of not more than $25,000. Guidance for new under-age-27 rule for health coverage. The IRS has issued guidance on the tax treatment of health coverage for children under age 27. The new rule, which went into effect March 30, 2010, applies broadly to employerprovided coverage or reimbursements, cafeteria plans, flexible spending arrangements, health reimbursement arrangements, voluntary employees’ beneficiary associations and the abovethe-line deduction for a self-employed individual’s medical care insurance costs.

Availability of FICA exception for medical residents. The Supreme Court has agreed to review a 2009 decision of the Court of Appeals for the Eighth Circuit, which upheld the validity of regulations that generally prevent medical residents from qualifying for the FICA student exception. Under these regulations, an employee who is a medical resident and works 40 hours or more for a school, college or university is not eligible for the exception. The court’s decision will have important ramifications for many teaching hospitals and their residents. Temporary regulations fill in statutory gaps on new indoor tanning tax. The IRS has issued temporary regulations on the healthreform legislation’s new 10-percent excise tax on indoor tanning services provided on or after July 1, 2010. The regulations address practical considerations that may not have been contemplated when the law was drafted. For an expanded version of this article, visit www.malinbergquist.com/ tax3q2010.htm.

William G. Finnecy, CPA, is a tax partner with Malin Bergquist, Erie’s fastest-growing public accounting firm. Contact him at wfinnecy@ malinbergquist.com or at 814/454-4008.

November 2010 > www.mbausa.org > 15

Gift & Event Planning Guide In a challenging economy, small businesses are looking for creative ways to celebrate with their clients and employees this holiday season. Here are a few places to consider for your seasonal celebrations.

Flexible Space. Affordable Price. Conference Â Center

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SMALL BUSINESSES GIVING BACK TO CHARITIES IN A BIG WAY Donating to charities is not just The aggregate cost of employer-sp onsored health something your business can do to cove rage will need to be calculated and help the community, but it also can reported on each employeeâ&#x20AC;&#x2122;s annual Form W-2 help your bottom line. A recent study for taxable years beginning after December 31, 201 found that for every dollar given to 0. This reporting is a charitable organizations, two to three way to track the value of the coverage for an excise tax dollars are returned in sales. (coming in 2018) on the cost of emp loyer-sponsored According to a survey commissioned medical coverage that exceeds cert ain thresholds. The Patty Smith is the by the Better Business Bureau Wise cost will not be included in the emp director of Em loyeeâ&#x20AC;&#x2122;s taxable ployee Giving Alliance, more than 91 percent Benefit Service inco me. This app lies to both insured and self-insured s at of small businesses in the United States the Manufactu plans and begins with the 2011 W-2 rer & support charitable organizations. While issued on January Business Associatio n. 2012. For more information, contact 85 percent of those surveyed had me at psmith@ donated money, research shows that mbausa.org, 800/815-2660 or 814 /833-3200. small-business giving is not confined to writing checks. Nearly two-thirds (63 percent) of small-business owners/ managers had supported charities through in-kind contributions of Heidrick & Struggles and Stanford grooming an executive for products or services. Universityâ&#x20AC;&#x2122;s Rock Center for Corporate this position. Governance. Among the key findings: t " GVMM QFSDFOU PG SFTQPOEFOUT CEO SUCCESSION PLANNING t 4JYUZ OJOF QFSDFOU PG SFTQPOEFOUT cited that they have â&#x20AC;&#x153;zeroâ&#x20AC;? viable SURVEY REVEALS SERIOUS GAPS think that a CEO successor needs internal candidates. More than half of companies today to be â&#x20AC;&#x153;ready nowâ&#x20AC;? to step into cannot immediately name a successor t 0O BWFSBHF CPBSET TQFOE the shoes of the departing CEO; to their CEO should the need arise, only two hours a year on CEO however, only 54 percent are according to research conducted by succession planning.

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DEPARTMENTS > Contact: John Onorato

Why Passing the Torch Should Be An Integral Part of Your Business Plan What would your organization do if there were a sudden loss of key personnel? Without a well-designed succession plan, your company may not be able to cope with the loss. Succession planning is a tool companies use to provide for the future by investing in current employees to take over for key positions in the event of retirement, death, or other departure of critical management team members. The goal of succession planning is to identify key positions within the organization and identify employees who can be “groomed” to fill those positions if there are no designated successors already in place. To develop a succession plan, employers must first perform an assessment to determine: t 8IJDI QPTJUJPOT BSF TUSBUFHJDBMMZ “key” positions in the

organization; t 8IBU JT DVSSFOUMZ BWBJMBCMF JO their work force in terms of high potential employees who may be able to step into these positions with training and development; and t 8IBU HBQT UIFSF BSF JG BOZ in employee potential and future needs. This assessment must take into account where the company wants to be five or 10 years down the road relative to what areas will be expanding and what skills will be necessary for future growth. With this information, a plan can be developed. The current required skills of key employees can be identified, and training and development plans can be set up to develop potential individuals.

It should include frequent performance appraisals to track how the individual is meeting stated goals, including what additional training, experience, or education has been accomplished, and an ongoing assessment of the individual’s readiness and potential. For more information, contact me at 814/833-3200, 800/815-2660 or sbruce@ mbausa.org. Stacey Bruce is a PHR-certified HR generalist and Human Resource supervisor at the Manufacturer & Business Association.

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814-833-5433 www.LSinsure.com Loesel-Schaaf Insurance Agency, Inc. is an authorized agent for the MBA Eastern Alliance program. November 2010 > www.mbausa.org > 19

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OntheHill

DEPARTMENTS > Contact: Sheila Sterrett

Capitalism Has Not Failed the United States; The U.S. Government Has Failed Capitalism When then-candidate Barack Obama declared, “We are five days away from fundamentally transforming the United States of America,” the majority of Americans were unaware of what he truly meant. Today it is quite apparent. This administration, along with House Leader Nancy Pelosi and Senate Majority Leader Harry Reid, has moved quickly to transform the American free-enterprise system into a state-controlled economy. President Obama professes his support for the free-enterprise system but continues to advance the argument that our economic problems are, in large part, caused by the failure of capitalism. In his view, capitalism inspires and rewards greed and benefits the rich at the expense of the poor. He has said on numerous occasions that to achieve social justice, we must redistribute wealth. Obama, Pelosi and Reid, along with other members of Congress, argue that capitalism is a zero-sum game, which, according to Webster’s definition, is “a situation in which a gain by one side entails a corresponding loss for the other side.” This argument fits nicely into Obama’s call for the redistribution of wealth and increased government intervention in regulation of the private sector. The truth is that capitalism has worked brilliantly and is the envy of the world. It has provided our nation with a higher standard of living for more citizens than any other system on earth. It is the economic system that made America a world leader and provides us with the ability to protect and secure our nation from oppression. Capitalism is not based on greed and is not a zero-sum game. By definition, capitalism is “an economic system characterized CZ 13*7"5& PS $03103"5& 08/&34)*1 PG DBQJUBM HPPET CZ JOWFTUNFOUT UIBU BSF EFUFSNJOFE CZ 13*7"5& %&$*4*0/ and prices, production and the distribution of goods that are determined mainly by COMPETITION in a FREE market.” What it boils down to is this: Your ability to succeed in the free market (consumer driven) is predicated on your ability to fund your idea (capital) and produce and distribute a product or a service that people freely choose based on need or want. If you fail, you will lose your capital (money); if you succeed, the rewards (money) are significant. The free market keeps business honest. It is the consumer who determines the winners and losers, not government or the business itself. This is the basic principle of capitalism. It rewards good behavior and punishes bad behavior. It is precisely these checks and balances that protect us from despicable people like Bernie Madoff and Kenneth Lay. Critics miss the point when they argue that capitalists like

Madoff and Lay serve as confirmation that capitalism is driven by greed to benefit few at the expense of many. I would argue that they are perfect examples of how brilliantly the system works. Madoff and Lay failed because they attempted to cheat capitalism by operating outside the system’s rules. They weren’t capitalists; they were thieves. That is an argument for getting rid of them – not the system. Capitalism has not failed the United States; our government has failed capitalism. This was never more evident than when President George W. Bush announced to America that he had “abandoned free-market principles to save the free-market system.” Notice how politicians never blame government for the problem. What Bush should have said was, “I am going to suspend government so that the free-enterprise system can save government.” At the very heart of the financial meltdown is the government. In truth, it was government that drove subprime mortgage lending (Fannie Mae and Freddie Mac) and caused the massive disruption in the financial markets. Again, the free-enterprise system didn’t fail; it was government that disrupted the system, encouraging – and, in some cases, forcing – financial markets to operate outside of sound financial practices and basic principles of the free-market economy. Under Obama’s “too big to fail” theory, the government disrupted the free market yet again by rewarding bad behavior with more money (bailouts) for Wall Street. When it failed, he blamed the “greed” of capitalism for the entire mess and now demands more government intervention and oversight of the private market. The policies of Obama, Pelosi and Reid have transformed the American economic system. They have slowed the American economy, increased unemployment and poverty levels, and have dramatically increased the massive debt owed to foreign interests. In the first 19 months of the Obama administration, the federal debt held by the public increased by $2.5260 trillion, which is more than the cumulative total of the national debt amassed under all U.S. presidents from George Washington through Ronald Reagan. This fundamental transformation has disastrous and significant implications for our country and our standard of living – both today and for generations to come. Ronald Reagan got it right: “The government is not the solution to our problems; government is the problem.” — Ralph Pontillo, president of the Manufacturer & Business Association and Editor in Chief of the Business Magazine November 2010 > www.mbausa.org > 21

Legal Q&A WE ARE PLANNING ON GIVING OUT GIFT CARDS TO OUR EMPLOYEES FOR THE HOLIDAYS. ARE THERE ANY TAX CONSEQUENCES FOR THEM OR ME? According to the Internal Revenue Code, all gifts of cash, or items that are “easily exchangeable for cash” must be considered part of an employee’s income and will be subject to payroll taxes. It does not matter if you call it a gift or a bonus — you must include the amount in your employees’ taxable earnings. Unfortunately, this means that the Internal Revenue Service (IRS) looks at gift cards the same as cash, and they are taxable for you and your employees. Some employers work with their payroll specialists to

make sure employees receive the full benefit of holiday bonuses or gifts by making sure the check is for the bonus, plus any taxes. I WANT TO GIVE MY EMPLOYEES A TURKEY FOR AN END-OF-THE-YEAR GIFT. IS THIS A BETTER OPTION THAN GIVING CASH? You are in luck. The IRS considers gifts such as fruit baskets, hams or turkeys and small electronics as “de-minimis“ and, as such, are not subject to taxes. The IRS stresses, however, that these gifts must be of a “low fair-market value,” but does not provide any clear rules on what that monetary limit is. Cash gifts do not qualify for the de-minimis exemption regardless of its value.

WHAT IS A SAFE WAY TO GIVE MY EMPLOYEES A HOLIDAY GIFT WITHOUT IT BEING CONSIDERED ADDITIONAL COMPENSATION? You can get around some of the IRS taxable gift rules for employees by having a company holiday party. If you were thinking of giving your employees gift certificates to a restaurant, host a party at the restaurant instead. This will allow you to write off all expenses of the party and is not taxable. The only rule for holiday parties is that they are “reasonable“ in value. Have a legal question? Get answers! Contact the Association's Legal Hotline at 814/833-3200 or 800/815-2660.

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DEPARTMENTS > Contact: John Onorato

Avoiding a Legal Hangover: How to Limit Potential Liability at Your Company Party The end of the year is fast approaching and many companies are finalizing their plans for the annual holiday party. A common question companies ask is: What can we do to minimize the companyâ&#x20AC;&#x2122;s potential liability? The most obvious answer is to manage alcohol consumption to mitigate liability and reduce the risk of accidents. Here are some tips for avoiding a legal hangover: t *OWJUF FNQMPZFFT TQPVTFT BOE significant others. It makes sense to have someone there to help keep an eye on your employees and, if necessary, get them home safely. t %P OPU IBWF BO iPQFO CBS w Instead, consider having a cash bar or use a ticket system to limit the number of drinks served.

t $POTJEFS IJSJOH QSPGFTTJPOBM bartenders if they are not already part of your event. Ensure that bartenders require positive identification from guests who do not appear to be substantially over 21 years old. t "WPJE TFSWJOH MPUT PG TBMUZ greasy or sweet foods that tend to make people thirsty. Serve foods rich in starch and protein that stay in the stomach longer and slow down the absorption of alcohol in the bloodstream. t &OGPSDF ZPVS DPNQBOZ QPMJDJFT Inform employees that your companyâ&#x20AC;&#x2122;s normal workplace standards of conduct apply at the party and misconduct, during or after the party, can result in disciplinary action.

t %P OPU MFU DP XPSLFST ESJWF drunk. Have a designated driver or call a cab for someone who should not be driving. For more information on how to minimize potential liability issues at your company event, please register for our upcoming Webinar at 11:30 a.m. Friday, November 19 at www.mbausa.org.

Tammy Lamary is Labor & Employment Counsel for the Manufacturer & Business Associationâ&#x20AC;&#x2122;s Legal Services Division.

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Change has hit. Hit back. To move forward in today’s market, you need to take decisive action. Growth is slower and more erratic and market reactions faster and more extreme. Now, more than ever, you need a plan that’s designed to take advantage of every opportunity to capture gains and mitigate risk. We have helped many investors with an honest assessment of their current portfolio and plan. May we help you?

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People Buzz

EDITORIAL > Contact: Karen Torres

planning and administration, family law and real estate.

KNOX ATTORNEY JOINS NATIONAL ASSOCIATION Leigh Ann Orton, an associate at Knox McLaughlin Gornall & Sennett, P.C., has been accepted as a member of the National Academy of Elder Law Attorneys (NAELA). NAELA was formed in 1987 with a mission to “establish NAELA members as the premier providers of legal advocacy, guidance and services to enhance the lives of people with special needs and people as they age.” She joins Jerome C. Wegley, Nadia A. Havard and Thomas C. Hoffman II who also are members of NAELA and focus on issues pertaining to the elderly. Attorney Orton practices out of the firm’s North East, Pennsylvania office. Her focus also includes estate

SKORY NAMED PENELEC REGIONAL PRESIDENT FirstEnergy Corp. announced that John E. Skory has been promoted to regional president of the Pennsylvania Electric Company (Penelec), headquartered in Erie. Penelec serves approximately 590,000 customers within a 17,600-square-mile area of western and central Pennsylvania. Skory replaces James R. Napier Jr., who joined the leadership team for the company’s Utility Support group in Akron, Ohio. A Cleveland native, Skory has been with the company for 34 years, most recently serving with the FirstEnergy – Allegheny Energy merger integration team.

EDC HIRES NEW VICE PRESIDENT OF FINANCE, CFO Erie native Mark Zaksheske has joined the Economic Development Corporation (EDC) of Erie County as the vice president of Finance and chief financial officer. In this position, he is responsible for managing all financial and accounting functions, and financial programs and services including raising capital and grant activity oversight. Zaksheske has an extensive financial background in auditing, finance, manufacturing, real estate and business consulting with companies in the state of Illinois. He recently was employed by IPA in Buffalo Grove, Illinois, as a senior business consultant.

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