FIND BUSINESSES
YOU CAN TRUST
The Better Business Bureau®
of Chicago and Northern Illinois, Inc.
2008 Annual Report
2008 Executive Committee
To Our Accredited Businesses:
As you know, 2008 was a year that presented many challenges to business. I
am very pleased to report that in spite of some of the most trying economic
conditions we’ve seen in decades, business participation in our varied activities has been very good and our business recruitment efforts held steady.
Chair
Charles Gavzer
C arnivale, Stretch Run
& OTB
President & CEO
Steve J. Bernas
Better Business
Bureau
Immediate Past Chair
Doris K. Christopher
The Pampered Chef, Ltd.
Vice Chair
Gerald M. Cole
Waste Gasification
Systems, Inc.
Vice Chair
Roy Spencer
Perma-Seal Basement
Systems, Inc.
Vice Chair
Dan B. Stone
Alberto-Culver
Company
Treasurer
C arl G. Jacobson
GE North American
Lending
Secretary
Michael E. Stanczak
L ehigh Hanson
General Counsel
John A. Janicik,
Partner
Mayer Brown LLP
The BBB Highlights of 2008 include:
• Instances of service to consumers and businesses increased 63% to 5.6
million compared to 2007. More than ever, people rely on the BBB for
guidance when choosing “trustworthy” companies.
• Our education efforts reminding people to “check it out first” are showing
amazing results. Information available on businesses was accessed by many
more people than last year, yet we processed only 879 more complaints in
2008 than in 2007. Of those complaints over 79% were settled within the
calendar year.
• The Torch Award for Marketplace Ethics Award program, in its 12th year,
received a record number of nominations – more than 1,700 from a wide
variety of businesses.
• We implemented a very successful online advertising program using Google
ad words to direct searchers for various products and services to BBB
Accredited Businesses.
• To spotlight the benefits of BBB accreditation, we’ve added a sales and
marketing representative who is dedicated to the fast-growing Naperville/
Aurora/Joliet area.
• Preparations have been completed for the eventual implementation of a new,
mandated ratings system using letter grades (A-F) to rate all businesses.
• The Consumer Resource Guide, published in spring and fall, continues to
be very popular as a directory of our Accredited Businesses for consumers
and businesses alike to find businesses you can trust.
• Your BBB is proud to be taking care of those who guard us through our
BBB Military Line. We make quarterly presentations about our services to
Navy personnel at Naval Station Great Lakes.
• Our successful biannual Shredder Days events run in cooperation with
local, state and federal consumer affairs and law enforcement agencies have
been a huge success.
• The BBB message and our services are highlighted on a one-to-one basis
at a variety of events throughout the year ranging from the Chicago Auto
Show and appearances at various civic functions to several Chicagoland
Home Shows and presentations to employees of Accredited Businesses.
• The BBB assists donors in making sound giving decisions and to foster
public confidence in charitable organizations. We support that work by
reviewing charities in Chicago and Northern Illinois and publishing charity
reports twice a year.
• Promoting the work and services of the BBB continues aggressively as our
BBB is ranked the #1 in the country for media coverage for the second year
in a row.
• Selective and targeted billboard, radio and newspaper advertising campaigns continue to inform consumers and businesses about the BBB.
• Our Ethics For Business Success training program has been expanded to
include a new online version to increase its usability.
• Our Integrity Classic Golf Outing continues to be a capacity-crowd success
for Accredited Businesses.
These programs and activities, as well as the thousands of everyday little
things that make the BBB a valued resource for consumers and businesses,
are due to the support of our Accredited Businesses, dedicated Board of
Directors and office Staff.
President & CEO
2 Better Business Bureau
Chair
2008 Annual dinner Meeting
Arbitrator of the Year
Selected as BBB Arbitrator of the Year was Kevin Wendorf
(left) for his ongoing efforts on behalf of the Alternative
Dispute Resolution program. Trophy was presented by BBB
President & CEO Steve Bernas.
BBB Torchbearer Award
The highest individual award that the BBB of Chicago
and Northern Illinois can bestow is the Torchbearer of the
Year. BBB Chair Chuck Gavzer (left) recognized Howard
Medley for his years of dedicated and unwavering support
for the organization and its mission. BBB President &
CEO Steve J. Bernas is shown on the right.
Diogenes Award for Excellence in Media
The Diogenes Award for Excellence in Media was presented to Lisa Parker of NBC5 Target 5. The award was
accepted by NBC5 President & General Manager Larry
Wert (left) from BBB President & CEO Steve J.Bernas.
The 81st Annual Dinner Meeting featuring Mike Ditka
was sold out, and the Grand Ballroom of the Hilton
Hotel on Michigan Avenue was filled to capacity.
Seventy-five years of support for the BBB was recognized
at the 81st Annual Dinner Meeting with a trophy presentation on behalf of the BBB by NBC5 News Anchor
Anna Davlantes to BBB Secretary Mike Stanczak who is
Regional President of Lehigh Hanson.
Accepting the congratulations for Walgreens 75 years of
support for the BBB from Event Master of Ceremonies
Anna Dalvantes was John Gremer, Walgreens Director,
Community Affairs at the Annual Dinner Meeting.
2008 Annual Report 3
2008 Torch Awards for marketplace ethics
IBM GLOBAL SERVICES: 7500+
The 12th Annual Torch Awards for Marketplace Ethics
was held at the Holiday Mart Inn Plaza on December 4
with six companies recognized with Torch Awards and
three companies recognized with Honorable Mentions.
SEARS HOLDINGS CORPORATION: 7500+
Torch Award for Marketplace Ethics Award in Category I of
7,500+ employees was presented by BBB President & CEO
Steve J. Bernas (left) to A. F. (Duffy) Gaynor, Vice PresidentIBM Global Services & Senior Location Executive joined by
BBB Chair Chuck Gavzer at the December 4th event at the
Holiday Inn Mart Plaza.
EMPIRE TODAY LLC: 1000-7499
BBB President & CEO Steve J. Bernas (left) presents
the prestigious Torch Award For Marketplace Ethics in
Category I to Sears Vice President of Product Management,
John Pigott and is joined by BBB Board of Directors Chair
Chuck Gavzer.
LUNA CARPET & BLINDS INC.: 100-999
BBB President & CEO Steve J. Bernas (left), Vice President
of Customer Operations for Empire, Bridget Moscatello
and BBB Chair Chuck Gavzer present Empire Today, LLC
with the prestigious Torch Award for Marketplace Ethics in
Category II on December 4th, 2008.
PROMOWORKS: 100-999
Steve J. Bernas, BBB president & CEO (left), awards Steve
DeZara of Luna Carpet & Blinds, Inc. in Category III of
the Torch Awards for Marketplace Ethics. They are joined by
BBB Board Chair Chuck Gavzer.
4 Better Business Bureau
BBB President & CEO, Steve J. Bernas (left), CEO Mike
Kent of PromoWorks, and BBB Chair Chuck Gavzer
display the Category III Torch Award trophy.
2008 torch awards & INTEGRITY golf CLASSIC
LIFE CARE INNOVATONS: 10-99
Steve J. Bernas, BBB president & CEO (left), welcomes
Category IV Winner Shay Jacobson, president of Life Care
Innovations along with Chuck Gavzer, BBB Chairman at
the 12th Annual Torch Awards for Marketplace Ethics.
HONORABLE MENTION
MEGA HOME IMPROVEMENT: 10-99
HONORABLE MENTION
S&C ELECTRIC COMPANY: 1000-7499
Steve J. Bernas, BBB president & CEO (left), Tim
Qualheim, S&C Electric Company regional vice president
from the West Central sales region and Chuck Gavzer,
BBB chairman display the Honorable Mention award for
Category II of 1,000-7,499 employees.
HONORABLE MENTION
EXTERIOR DESIGN, INC.: 1-9
Steve J. Bernas, BBB president & CEO (left), Mega Home
Improvement Co-Founder & CEO Joe H. Hogel, CoFounder & COO Steve Hogel and BBB Chair Chuck
Gavzer display the Honorable Mention award for Category
IV of 10-99 employees.
2008 Annual Integrity Golf Classic
Steve J. Bernas, BBB president & CEO (left), President
Dale Meader, Vice President John Gallagher from Exterior
Design Inc. and BBB Chair Chuck Gavzer display the
Honorable Mention award for Category V of 1-9 employees
at the 2008 Torch Awards.
2008 Annual Integrity Golf Classic
This year’s participants prepared for a full day of golfing
under beautiful weather on the Biltmore Country Club
driving range prior to tee off.
Tom Joyce (left) and BBB President Steve Bernas accompanied the foursome from Access One, Jeff Sobek, Alison
Balthazor, Rick Myers, and Brian Barkley on the beautiful
Biltmore Country Club course.
2008 Annual Report 5
Programs & Events
Chairing the Ethics and Standards Committee, Jerry
Cole outlines the hearing and process for BBB Board
Members – President and CEO Steve J. Bernas (right),
Joan Koebernick (far right) and Nicholas Dacanay (left)
and they are flanked by Board Members Jerry Stock and
Dale Mueller.
The steering committee, Tom Joyce (left), Steve J.
Bernas, and Jerry Cole, were among the attendees at
a preliminary meeting for the launching of the new
BBB Trust Foundation. This foundation will work in
conjunction with the BBB to promote educational
issues that support and maintain an ethical marketplace for businesses and consumers.
BBB Chair Chuck Gavzer opens the
Strategic Planning session with a detailed
review of the goals and objectives of the
meeting and how the ideas generated will
be utilized.
6 Better Business Bureau
Torch Awards judges, Dr. Bill O’Hara from Culture
Connect, Dr. John Boatright from Loyola University,
Dr. Pat Wehrane from DePaul University, Dr. Sandra
Williams from University of Illinois at Urbana/
Champaign and Hotelier Vickie White, meet to select the
Torch Award for Marketplace for ethics winners. There
were a record number of entries this year, more than
double from 2007.
Manager of Investigations Amy Wagenblast works at the
BBB booth at the Chicago Auto Show 2008.
Board members listen to the reports
of the breakout sessions prior
to the wrap-up of the Strategic
Planning meeting.
BBB Vice-Chair Jerry Cole reviews the results
from the 2007 Strategic Planning Meeting in
the May 13, 2008 meeting to help focus on the
importance of the planning process.
Programs & Events
The Shred Day Event took place on September 20 at the
West Suburban Bank in Downers Grove, IL. Participants
from many communities were assisted by the BBB and West
Suburban Bank.
BBB representative, Tom Joyce headed to University of
Illinois-Champaign/Urbana to speak about the BBB’s
Ethics for Business Success program and how to develop business planning tools. He was joined by the
University’s graduate students Dennis Yap (left), Carlye
Siegel, Jill Dressen, and Professor Dr. Sandra Williams.
Opening the quarterly Board of
Directors business meeting on
June 12 was Chair Chuck Gavzer.
Thanks to our host Board Member
Jim Gnoffo from AAA Chicago.
Steve J. Bernas, president & CEO of the Better Business
Bureau of Chicago and Northern Illinois along with the
author of The Fixer column from the Sun-Times newspaper, Stephanie Zimmermann, picked the winners of
many raffles for free shredders throughout the day.
Tom Joyce (center), from the BBB, visits Great Lakes, IL
on September 30 to speak at the Navy Base and provide
information about consumer protection and tips from
the BBB.
Attending the Board of Directors meeting were Chris Kentra (left), Allen
Rodriguez (center), and Cathy Bushman
(right).
BBB President & CEO Steve J. Bernas makes
his report on the myriad of activities that support best practices in the marketplace and BBB
services delivered to businesses and the public.
2008 Annual Report 7
Financial Highlights—years ending August 31
2008
$ 1,745,277
265,597
3,946,243
3,684,616
1,479,680
1,479,680
Assets
Liabilities
Revenue
Expenses
Unrestricted Net Assets
Total Net Assets
Statement
of
2007
$ 1,511,476
258,422
3,643,612
3,298,355
1,253,054
1,253,054
Activities
(Fiscal
2006
$ 1,234,816
327,019
3,289,432
2,896,938
907,797
907,797
years ending
2005
$837,330
322,030
2,921,908
2,711,734
515,303
515,303
2004
$583,174
203,051
2,425,131
2,417,583
305,129
305,129
August 31, 2008
and
2008
2007
$2,284,344
1,270,422
23,677
76,621
166,200
46,475
78,864
3,946,243
$2,143,266
1,108,135
6,025
26,760
79,073
141,075
82,520
56,758
3,643,612
1,233,059
32,354
136,228
175,418
1,068,579
17,287
126,928
170,281
1,577,059
1,383,075
188,322
34,545
22,394
61,067
26,930
48,206
88,527
11,778
481,769
175,728
47,559
29,272
61,189
24,413
31,786
92,770
15,978
478,695
Operations and Development:
Commission expense
Staff commissions
Annual dinner expense
Golf Invitational Expense
Dues and subscriptions
Computer expense
Meetings, conferences and travel
Publicity and promotions expense
Computer processing
Total Operations and Development
323,460
438,490
110,186
21,261
35,252
53,302
21,540
208,195
79,056
1,290,742
359,283
384,354
78,508
41,779
31,775
43,112
13,958
104,637
84,807
1,142,213
Direct Membership Program Expenses
335,046
294,372
3,684,616
3,298,355
261,627
345,257
(32,501)
(2,500)
(35,001)
—
—
—
226,626
345,257
1,253,054
1,479,680
907,797
1,253,054
Revenue
Membership dues
Membership programs
Telephone program
Industry programs
Processing fees
Annual dinner meeting
Special Events
Other income
Total Revenue
Expenses
Personnel
Salaries
Retirement plan contribution
Payroll taxes
Life and health insurance
Total Personnel Expense
Office and Supplies
Office leases
Telephone
Depreciation
Professional services
Printing and stationery
Postage
General supplies
Taxes, insurance and interest
Total Office and Supplies Expense
Total Expenses
Net Operating Revenue
Other Revenue (Expense)
Unrealized loss on investments
Realized loss on disposal of vehicle
Increase in Unrestricted Net Assets
Net Assests
Beginning of year
End of year
8 Better Business Bureau
8 Better Business Bureau
2007)
Year in Highlights
2008
2007
2006
2005
2004
832
Advertisements Revised
55,829
Complaints Closed
79%
Complaints Settled %
125
Arbitrations
4,629,813
Internet Visits
135,031
Total Phone Calls
809,896
BBB Educational Programs*
5,634,988
Total Instances of Service
891
56,179
77%
129
3,250,277
143,568
—
3,451,044
675
47,623
79%
135
2,952,616
167,720
—
3,001,049
511
41,375
76%
109
2,473,444
168,179
—
2,683,618
622
40,994
79%
102
2,044,896
210,935
—
2,450,091
* Educational Programs are a new line item in 2008.
Total Instances
6,000,000
6,000,000
of
Total Complaints Closed
Service
5,634,988
60,000
60,000
5,000,000
56,179
47,623
50,000
50,000
5,000,000
3,451,044
4,000,000
4,000,000
3,001,049
3,000,000
3,000,000
1,000,000
1,000,000
10,000
10,000
2007
2006
40,994
30,000
30,000
20,000
20,000
2008
41,375
40,000
40,000
2,683,618
2,450,091
2,000,000
2,000,000
00
55,829
2005
2004
00
2008
2007
2006
2005
2004
Top Industries Inquiry Activity (January 1–December 31, 2008)
Industry
Roofing Contractors
Movers
Construction & Remodeling Services
Contractors-General
Heating & Air Conditioning
Auto Dealers-New Cars
Work-At-Home Companies
Windows - Installation/Service
Credit & Debt Counseling
Plumbing Contractors
# of Inquiries
69,828
67,359
63,221
55,067
48,396
38,084
36,859
34,435
34,284
33,044
Top Industries Complaint Activity (January 1–December 31, 2008)
Industry
% of Settled Complaints
# of Complaints
Department Stores
6250
99.98
Financial Services
3476
99.05
Auto Dealers-New Cars
1166
84.99
Collection Agencies
1160
95.00
Insurance Companies
901
88.79
Travel Agencies & Bureaus
718
83.84
Television—Cable, CATV & Satellite
711
92.69
Airlines
697
80.49
Natural Gas Companies
690
90.43
Movers
631
85.74
2008 Annual Report 9
2008 BBB Staff
Senior Staff
(Left to right) Eric Pinto, Director of Business Relations; Marcy
Wilk, Executive Assistant to the President
Alternative Dispute Resolution Division
Standing: Irving S. Capitel, J.D., Senior Counsel, Alternative
Dispute Resolution; Seated (left to right): Roxanne Calibraro
Director, Alternative Dispute Resolution Division; Patricia Kelly,
J.D., Senior Counsel
Accreditation Services
Standing (left to right): Bob Monita, Business Relations
Representative; Agnes Sutor, Assistant Director, Business Relations;
Nadine Sliwa, Business Relations Representative; Seated (left to
right): Dale Drenthe, Business Relations Representative; Bert Adams,
Business Relations Representative
10 Better Business Bureau
Marketing Programs
Tom Joyce, Director of Marketing and
Communications
Marketing Programs
Michael Bruening (left), Marketing Consultant; Diana Wolek,
Marketing Specialist; Nina Castle, Manager of Charitable
Solicitation Program; Renata Duque, Marketing Specialist
Operations—Inquiry Services
Standing (left to right): Robbi Jones, Training Supervisor; Harriet
Lee, Clerical Associate; Vernice Brantley, Clerical Associate;
Forestine Jeffries, Clerical Associate; Seated (left to right): Fran
Pryor, Receptionist; Terence Henderson, Mailroom Clerk
2008 BBB Staff
Operations
(Left to right) Maria DeCourtenay, Director of Operations; Amy
Wagenblast, Manager of Investigations; Jeannette Hernandez, Ad
Review Specialist; Brad Rhodes, Assistant Manager of Investigations;
Courtney Bobinsky, Operations Associate; Carmen Nunez,
Administrative Assistant. Not pictured: Lucy Jodlowska, Investigations
Rockford Staff
Standing (left to right): Steve Young, Business Relations Specialist;
Leonard Reddic, Business Relations Specialist; Jim Canfield,
Business Relations Specialist; Dennis Horton, Director Rockford
Office. Seated (left to right): Mary Ann Wixom, Operations
Assistant; Marge Weir, Business Relations Specialist; Karen Zander,
Business Relations Retention; Jennifer Daughtry, Business Relations
Retention. Not pictured: Ranona Quevedo, Business Relations
Specialist; Christine Pixler, Business Relations Specialist
Operations-Complaint Services
Standing (left to right): Dorienne Fulks, Assistant-Computer Services;
Nita Virghes, Assistant Manager–Direct Retail Services; Diana
Mendez, Assistant Manager–Home/Transportation; Rhonda Drew,
Dispute Resolution Specialist–Automotive Services. Seated (left to
right): Denise Hines, Manager–Intake Services; Lillian Allen, Dispute
Resolution Specialist–Personal Services. Not pictured: Nicole Tooks,
Assistant Manager–Financial Services
Business Relations Representatives
Standing (left to right): Robert Bergman, Doneca Smith, Vicki
Delak, Kay Kroll; Seated (left to right): Cheli Bay, Jackie Goldstein
and Brittany Allickson
College Interns
Standing (left to right): Jasmin Sepulveda; Stacy Szpejnowski; Erica
Zuniga; Seated (left to right): Roxanne Mercado; Crystal Flores
Consultants
(Left to right)Eddie Johnson; Edwynne Perkins
2008 Annual Report 11
2008 Board of Directors
Irv Abrams
Walgreens
Rick Dow
Midas International Corporation
Billy Abt
ABT Electronics
Mark Doyle
All My Sons Moving & Storage, Inc.
Theodore J. Aldrich
Delaware Place Bank
Paul Fisher
Danley Garage World
Jack Arslanian
MiniMoves, Inc.
Russell T. (Wicker) Freeman
Coyne American Institute
Ed Bachler
Nombach Home Exteriors
Ed Garcia
Wireless Central LLC
Brian K. Barkley
Access One, Inc.
A. F. (Duffy) Gaynor
IBM Corporation
John Belli
Tru-Link Fence a Div of Peerless Enterprises
Robert P. Fleck
Chicago Tribune
Shirley Bicknell
Sears Holdings Corporation
Ed Garcia
Wireless Central LLC
Jerry N. Boudreau
TransUnion LLC
Russell T. (Wicker) Freeman
Coyne American Institute, Inc.
Patricia Davis Brooks
Apple Vacations
A. F. (Duffy) Gaynor
IBM Corporation
Roland Burris
Burris & Lebed Consulting LLC
Dayle Gillett
The Inland Real Estate Group, Inc.
Cathy Bushman
Tiffany & Company
James Gnoffo
AAA Chicago
Lawrence J. Carney
American Home Heating, Inc.
Patricia Golden
NBC5 Chicago
Eli Carrillo
Protecta Home Loans, Inc.
Edward E. Gordon
Imperial Consulting Corporation
Charles S. Childs, Jr.
A.A. Rayner & Sons
Thomas D. Graham
Airoom Architects & Builders
Jerry H. Cizek III
Chicago Automobile Trade Association
Peter Grande
State Farm Insurance
James Coleman
Combined Insurance Company
David P. Gutman
Momentum Advantage Partners LLC
Ilene Collins
The Apartment People Ltd
Richard Hynes
Hynes Associates Architecture & Interiors
Douglas Cook
Feldco
Herbert F. (Corky) Imhoff, Jr.
General Employment Enterprises, Inc.
Nicholas Dacanay
Williams Lea, Inc.
Joann Jackson
Integrated Project Management Co., Inc.
Jeffrey Dann
RJ2 & Associates, Inc.
Victor Jacobellis
Rose Productions
David E. Darbutt
Automated Data Processing (ADP)
Robert F. Kastenholz
Bank of America
Steve DeZara
Luna Carpet & Blinds, Inc.
David Kelly
R.H. Donnelley
Christopher E. Kentra
Meckler, Bulger Tilson Marick
& Pearson LLT
Alex Kolosiwsky
BFS Retail & Commercial Operations, Inc.
John Kozakis
American Airlines, Inc.
John Kroen
DeVry, Inc.
Gary Lang
Gary Lang Auto Group
Edith Leonian
Concession Services, Inc.
Marvin Lieberman
Archway Construction Company, Inc
Mark A. Lies II, Esq.
Seyfarth Shaw, LLP
David W. Maher
Public Interest Registry
Robert Marcocchio
Assurance Agency, Ltd.
Dan McLaughlin
Plumbing Council of Chicagoland
Howard Medley
Medley’s Moving & Self Storage
Harold (Sandy) Menger
Pave Man, Inc.
Matthew Messinger
Carlos M. Minetti
Discover Financial Services
Raymond D. Minkus
Minkus & Pearlman Public Relations, Inc.
Kevin Mize
O’Hare Auto Group
John Moran
KPMG, LLP
Kevin Peterson
AT&T
Seymour Persky
Parliament Enterprises, Ltd.
Taras R. Proczko
Hartmarx Corporation
Desmond Roberts
Advantage Chevrolet
Allen Rodriguez
Charter One Bank
David Ruiz
Chicago Sun-Times
Mark Scarpelli
Raymond Chevrolet/Olds, Inc.
David J. Schroer
Hallberg Commercial Insurors, Inc.
Thomas J. Seeberg
Marsh USA Inc.
John Smith
Tower Travel Management Corporation
Vincent J. Sollecito
ABC 7 Chicago
David Sparks
Sparks Consulting, LLC
Jerry S. Stock
U.S. Waterproofing
Kimberly A. Svoboda
CDW
Cecil Treadway
Treadway Enterprises, Inc.
John Wells
Hilton Chicago
Marty Wilke
WGN-TV (CW9)
Robert Mudd
The Mudd Group
Dale Mueller
Chicagoland Aamco Dealers
Lisa Olmstead
ComEd – An Exelon Company
Chicago and Northern Illinois, Inc.
330 North Wabash Avenue
Bruce O’Neal
Matthews Roofing Company, Inc.
James W. Wicklander
Lake County Press, Inc.
Bridget Moscatello
Empire Today LLC
Better Business Bureau of
George Olsen
Grant’s Appliances, Electronics & More
Jerry Zienty
Jerome A. Zienty & Associates, P.C.
Janice Zimmermann
Harris N.A.
Rockford Regional Office
810 East State Street
Rockford, Illinois 61104
Suite 2006
815.963.bbb2(2222)
Chicago, Illinois 60611-7621
8:00 am– 5:00 pm
312.832.0500
(Monday -Friday)
24 hours, 7 days a week
www.bbb.org