Intel's Triple Bottom Line

NexBusiness Value, In

xt Generation CSR: tegration, and Leadership

Suzanne FallenderCorporate Responsibility Office

Intel Corporation

Mills CollegeApril 9 2010April 9, 2010

Changing L

Increase in “socially respoIncrease in socially respoinvestors” and integration into financial analysisyChanging expectations amconsumers & publicconsumers & publicIncreased sophistication ocampaigns and partnershicampaigns and partnershiEmployees and new talentrecruitmentrecruitmentChanging C-Suite views

Sources: “State of Corporate Citizenship” BCCCC, http://www.bcccc.net/index.cfm

Social Investment Forum.

Copyright © 2010 Intel Corporation. All rights reserved. Intel and the Intel logoCorporation or its subsidiaries in the United States and other countries.*Other names and brands may be claimed as the property of others.

Landscape

onsibleonsible of ESG

mong

of NGO psps

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?pageId=2043

o are trademarks or registered trademarks of Intel

People, Plap

• Changing expectationsp

• Low hanging fruit h d t fi dharder to find

• Increasing focus on

Planet

Increasing focus on connection to value

• Next phase more challenging


anet, Profit

PeoplePeople

Profit


Building CorporaBuilding Corpora

Business Value

IntegValue

19.5%20.0

25.0 Laggards (bottom 10%)

Average

Leaders (top 10%)

7.57.0%7.2%

15.5%

10.6%

13.6%

10.0

15.0

0.8

4.1

0.0

5.0

Return on Invested Capital Shareholder Return Sharpe ratio (x 10)


ate Responsibilityate Responsibility

ration Leadership


CSR CultuCSR Cultu

E i i ltEngineering culture Global m

• Data driven and focused on continu• Proactive community engagement aProactive community engagement a• Global scale and impact of program• Priority on education and ability of t

h llchallengesCopyright © 2010 Intel Corporation. All rights reserved. Intel and the Intel logoCorporation or its subsidiaries in the United States and other countries.*Other names and brands may be claimed as the property of others.

ure Driversure Drivers

manufacturer Innovation leader

uous improvementand environmental managementand environmental management

mstechnology to help solve global


LaLagregregg

RRRR

InveInve


EnvironmentalEnvironmentalEnvironmental Environmental Sustainability Sustainability

argest corporate purchaser of argest corporate purchaser of een power in the U.S. according een power in the U.S. according p gp g

to the EPAto the EPA

Recycle over 70% of our wasteRecycle over 70% of our wasteRecycle over 70% of our wasteRecycle over 70% of our waste

ested over $100 million in water ested over $100 million in water conservation in past decadeconservation in past decadeconservation in past decadeconservation in past decade


Innovation &Innovation &

$1B Investe$1B Investe7+7+


& Growth Opportunities& Growth Opportunities

ed in Education Programsed in Education Programs Million Teachers Million Teachers 50+ Countries50+ Countries



Be an Asset to Our Be an Asset to Our CommunitiesCommunitiesCommunitiesCommunities

Cl t 1 illi l tCl t 1 illi l tClose to 1 million volunteer Close to 1 million volunteer hours in 2009hours in 2009


Businesss Value


CSR and Business Value

“Continuing our commitment to the hi h highest performance in all we do—from product innovation to corporate responsibility—is p ygood business.”

Paul Otellini, PresidentPaul Otellini, President and CEO


Longtransrepop

Fi t EHS First EHS report and public goals

Carbon DisclosureProject

G

‘SRI’ road shows begin

GRI

GFirst CSR report

1994 1996 1998 2000 200

report


g history of sparency and rtingg

Localization of report

GRI G3e

pglobally

RI G2

GRI G3Move to “online only” RI G2 yreport

02 2004 2006 2008 2010


Applying learnings fromApplying learnings from

We received over 80 recognitionsWe received over 80 recognitionsWe received over 80 recognitionsWe received over 80 recognitionsefforts at the local, nationaefforts at the local, nationa


m external measuresm external measures

s for our corporate responsibilitys for our corporate responsibilitys for our corporate responsibility s for our corporate responsibility al and global level in 2009al and global level in 2009


I t t d V lI t t d V lIntegrated ValuIntegrated Valu

REVENUEREVENUE OPERATIONSOPERATIONSREVENUEREVENUE OPERATIONSOPERATIONS

Growth and Cost Savings andGrowth andInnovation

Cost Savings andContinuous

Improvement

Sources: Intel information based on multiple framSources: Intel information based on multiple framCenter for Corporate Citizenship, “How Virtue CreCenter for Corporate Citizenship, “How Virtue Cre


F kF kue Frameworkue Framework

RISKRISKMANAGEMENTMANAGEMENT BRANDBRANDMANAGEMENTMANAGEMENT BRANDBRAND

License to Reputation andLicense toOperate andGovernance

Reputation andGoodwill

meworks, including McKinsey and Boston College meworks, including McKinsey and Boston College eates Value for Business and Society”, April 2009eates Value for Business and Society”, April 2009


Integrated ValuIntegrated ValuIntegrated ValuIntegrated Valu

REVENUEREVENUE

•• Market expansMarket expans

•• Product innovProduct innov

Growth andInnovation

•• New customerNew customer

Innovation

•• OperatioOperatio

•• ManagemManagem

•• EmployeEmploye


ue Frameworkue Frameworkue Frameworkue Framework

sionsion

ationation

r needsr needs

OPERATIONSOPERATIONS

Cost Savings andContinuous

Improvement

onal efficiencyonal efficiency

ment qualityment quality p

ee engagementee engagement


I t t d V lI t t d V lIntegrated ValuIntegrated Valu

RISKRISKMANAGEMENTMANAGEMENT

•• Regulatory rRegulatory r

•• Community eCommunity eMANAGEMENTMANAGEMENT

License to

Community eCommunity e

•• Supply chainSupply chain

Operate andGovernance

•• DD

•• TT

•• GG


F kF kue Frameworkue Framework

iskisk

engagementengagementengagement engagement

n responsibilityn responsibility

BRANDBRAND

Reputation andGoodwill

DifferentiationDifferentiation

Trusted partnerTrusted partnerpp

GoodwillGoodwill


Integration

Strategic alignment

• Aligned with Intel’s• Aligned with Intel s Global Strategy on a Pageg

• Board-level oversight

Integration of CSR• Integration of CSR information into Annual Report and 10-KReport and 10 K

• Linked compensation with environmental andwith environmental and CSR factors



Employee engageme

• Culture shift – integrating into• Culture shift – integrating intotheir decision-making

• Provide education and ways• Provide education and ways to participate

Programs to encourage• Programs to encourage innovation or generate projectideasideas

• Awards and recognition

L id d i l• Leverage video and social media


ent

oo

t


Business grou

Intel IT


p ownership

Supply Chain/ pp yMaterials


Leadeership

What does leadeWhat does leade

• Collaboration – problems too• Collaboration – problems too

• Industry initiatives – efficienc

• Investment – risk, change ag


ership look like?ership look like?

o complex to solve aloneo complex to solve alone

cy, consistency and impact

gent, differentiation


Ne

•a

••s

•

•a


ew leaders required

CSR is not just for CROsCSR is not just for CROs anymore….

Influencing and analyticalInfluencing and analytical kills

M ki th l tiMaking the value connection

Improving decision-making g gand quality of organization
