Magna International Inc., headquartered in Markham, Ontario, is one of the largest and most diversified manufacturers of automotive components and systems in the world. The company has annual sales approaching $4 billion and employs approximately 17,500 people in more than 80 manufacturing and product development centres throughout North America and Europe.

Magna was founded in 1957 by Frank Stronach who was trained as a tool and die maker. The company quickly grew from a one-man tool and die shop and eventually expanded into the production of automotive stamped parts following an initial order to produce metal brackets for GM sun visors.

One of the main reasons for the company's rapid growth has been Magna's strategy of building small factories in order to foster a close working relationship between managers and employees and maintain an entrepreneurial environment. Still another reason for Magna's growth was the company's decentralization of operations, with each factory as a separate profit centre.

In order to attract and maintain top-notch managers, Mr. Stronach created a special arrangement in which managers received a predetermined portion of the factory's profits. Initially, only managers participated in the profit-sharing plan. But when Magna eventually became a public company, with Mr. Stronach as the controlling shareholder, the principle of profit and equity participation was expanded to include every employee.
 

Magna's unique corporate culture helps bring together and develop a superior calibre of human and manufacturing resources.

Magna's unique corporate culture is one of the main reasons for its success. At the heart of this culture is an operating philosophy based on profit sharing between the three driving forces of the business: investors, employees, and management. This principle is enshrined in Magna's Corporate Constitution, which pre-determines the percentage of annual profits shared by each group.

A percentage of the profits allocated to employees is also used to purchase Magna stock on their behalf, making each employee a shareholder with a real stake in the success of the company. In fact, ever since the introduction of the Employee Profit and Equity Participation program in 1976, Magna has grown at the remarkable average rate of approximately 30 percent per year.

In addition to the Corporate Constitution, the company also has an Employee Charter of Rights, guaranteeing, among other matters, competitive wages, a safe and healthful working environment, and fair treatment. A key feature of the Charter of Rights is the Magna Hotline, a toll-free number which employees can call if they have any concerns or if they feel their rights have been violated.

As a corporation which focuses on innovations in both its human resources and automotive technologies, Magna International will continue to be a business pioneer and a corporate achiever for many years to come.