Offshoring Panel, Tunisia 2014

Microsoft Responsible Sourcing Fundamentals and

YouthSpark Program Training to Promote Employability in MEA

Microsoft Responsible Sourcing: Key Focus Areas

Assessed Suppliers’ Ethical,

Social, and Environmental

Maturity with the Supplier

Maturity Management program.

Integrated Responsible

Sourcing requirements into

our procurement quality

management framework.

All suppliers adhere to SCC and

extreme risk suppliers adhere to

Responsible Sourcing

Requirements (RSR)

Established ROB with key

stakeholders groups, including

top suppliers and cross

industry buyers

Extended the environmental

impact with the Carbon

Disclosure Project Supply

Chain Pilot to applicable

categories

Suppliers reached over 40,000

underserved learners with the

Supplier YouthSpark

Community Technology

Center Program

42 positive external supplier

press coverage/events

associated with the Microsoft

Responsible Sourcing Program

Completed pilot with Impact

Sourcing Service Provider to

assess business and social

value of Impact Sourcing

2

Microsoft Responsible Sourcing

Customers

MS Internal Communities/NGOs

Governments

Buyers

Stockholders

Responsible Sourcing

Suppliers

• MS Values • Organizational Commitments

• MS Internal

• Nsat and Csat Survey Feedback

• Press Releases

• Investor Forums • GRI Reporting

• Investor Forums • Institutional Investor

• Buyers Forum

• Business Reviews • Requirements/

Audits • Stakeholder

Community

• Business Reviews • Audits • Reporting • Stakeholder

Community

• Program Opportunities • Sponsorships/Donations

• Program Opportunities

• Regulations • Public Announcements • Governments in CTC

• Buyers Forum

• Feedback on Impact • NGOs in CTC

Associations

• IAOP • GRI • COPC • GSC • RF

• IAOP • GRI • COPC • GSC • CDP • RF

Supplier Responsibilities start with a

Shared Vision

Engaging our stakeholders is an essential part of how we do business. By listening to their ideas and needs, we better understand their expectations and can identify emerging opportunities and challenges. They, in turn, learn more about us and how we can work together and have a shared vision of the future.

Responsible Sourcing

Legal and Regulatory Compliance Practices Comply with all Trade Controls,

Antitrust laws, U.S. boycott restrictions, and insider trading

Ensure Anti-Corruption Business Practices and Ethics Honest and Accurate Business

Records Avoid Conflicts of Interest Ensure Confidentiality, Security and

Privacy Asset and Intellectual Property Protection Protect Intellectual Property and

Legitimate Software

Labor Practices and Human Rights Free of harassment and

discrimination Only use Voluntary Labor Minimum working age Pay applicable wages under

humane conditions. Maximum working hours Health and Safety Provide a safe and healthy work

environment Supplier Diversity

Environmental Regulations and Protection Comply with environmental

laws and regulations Reduce or eliminate waste Obtain permits and

registrations Ensure Safe handling of

materials

Supplier Responsibilities have

Clear Expectations

Supplier Contractual Requirements are the key tool essential part of how we manage our business. By understanding the various risks associated with the products and services we source from different geographies, we establish progressive requirements, validation, and capacity trainings designed to continuously and improve the maturity of our suppliers.

Microsoft Responsible Sourcing

5

Supplier Maturity Management

Su

pp

lier

Ris

k A

sse

ssm

en

t

MS completes Risk Assessment using industry data from recognized international sources such as Human Rights Watch, Amnesty International, UNICEF, and the International Labor Organization and other watch lists.

Very High Risk Suppliers Complete Self Assessment Questionnaire

Sup

plie

r R

eq

uir

em

en

ts

All Suppliers are required to follow MS Supplier Code of Conduct

Very High Risk Suppliers may be contractually required to follow more rigorous requirements, including adhering to progressive Responsible Sourcing Requirements

Sup

plie

r V

alid

atio

n

Very High Risk Suppliers complete Responsible Sourcing Scorecard (ongoing)

Depending on severity of risk, MS completes on-site audits and follow-up audits, If required

Sup

plie

r Im

pro

vem

en

ts

Key capacity training opportunities are provided to suppliers..

Supplier Requirements And Aspirations Require

Continuous Improvement

Monitoring Suppliers Ethical, Social, and Environmental Maturity is an essential part of how we manage our business. By understanding the various risks associated with the products and services we source from different geographies, we establish progressive requirements, validation, and capacity trainings designed to continuously and improve the maturity of our suppliers .

Microsoft Responsible Sourcing

Supplier Responsibilities are

Validated through Scorecards

Responsible Sourcing Scorecards

6

Based on our risk assessment, some of our suppliers complete our Responsible Sourcing Scorecard developed based on standards established by the Global Reporting Initiative (GRI), an independent global organization that is a Collaborating Centre of the United Nations Environment Program. In addition to this standard, our reporting is aligned to sustainability evidence requirements established by Responsible Industry institutional investors. Our stakeholders review these standards and requirements to develop meaningful, aspirational metrics that our Suppliers will report.

Avoiding Adverse Impact

Ensuring Positive Impact

Impact Sourcing

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Definition Outsourcing that responsibly sources disadvantaged workers by aligning stakeholders resources to generate shared value. Impact Sourcing mitigates reputational risk by incorporating business practices and partners to contribute to social impact.

Social Case Innovative MS Asset: Supplier activities become a positive part of Microsoft’s Citizenship Story. Extends MS Partnerships: Impact Sourcing requires engagements with Foundations and NGOs extending Microsoft’s positive reputation.

Business Case

Innovative Risk Reduction: Impact Sourcing enables the responsible exploration of emerging labor markets. Cost Savings: Initial research found that Impact Sourcing provides service for typically 40% lower cost. High Quality: Typically, Impact Sourcing micro work focused on an element of an outsourced process leads to exceptional quality.

Supplier Community Technology Centers ( )

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• Our Objective is to empower supplier employees and their local communities through digital inclusion initiatives and innovation. The centers focus on narrowing the technology skills gap, aid global work-force development, and create social and economic opportunity by providing technology skills training.

• Our Strategy is to provide any underserved individuals an opportunity to receive technology skills training and a chance to earn a Microsoft Digital Literacy certificate.

• Our success has always been based on our partnerships. We partner with our Suppliers, NGO’s and governments to bring the benefits of technology to underserved individuals across the globe. By partnering with these organizations, Microsoft has demonstrated the benefits of collaboratively engaging stakeholders by having a positive impact communities we touch in far reaching corners of the globe. To date, the CTCs have trained over 40,000 students with 16 vendors at 26 locations in 13 countries.

Microsoft Contributes

• Coordination

• Project Management

• Curriculum

• Software

Supplier Contributes

• Physical premises

• Hardware

• Internet access

• On-site personnel

Global Procurement Group

Digital Africa

Employment Platform, BYB, S2B

4Afrika Academy

GM CONTACT CENTER OUTSOURCING

Existing Microsoft Partnerships and Engagements

What’s

YouthWorks?

Youthworks connects the youth with resources needed

to enhance and develop the skills they need to

compete within the workforce.

A full ecosystem to support workforce development

across the Middle East and Africa for job research and

professional skill enhancement and job placement.

A YouthSpark initiative to enhance professional skills and boost employment

• Personalized full-inclusive experience in 5 sections:

Plan your career – career counseling, job market info and stats

Get trained – mentor matching, IT training, entrepreneurship, CV writing, soft & language skills

Find a job – job matching tool

Entrepreneurs – Startup training, funding tools, social entrepreneurship and free lance.

Get engaged – Community-based networking platform for users to share ideas and volunteer opportunities (under development)

• Piloted in Egypt under: http://masr.ta3mal.com/

• Available in English, French and Arabic

Workforce development x3

On the ground activities: DEPTH

• Career Advisory Services

• Training

• Digital Literacy

• Entrepreneurship support

• Strong Local Partnerships: Universities, Government, Civil Society, Private Sector

Website: SCALE

• Regional platform bringing together personalized online resources:

• 400+ eLearning courses

• Language assessment + certification

• Personalized Aptitude assessment and guidance

• Mentors

Mobile function: REACH/BREADTH

• SMS / USSD service to connect the unconnected to learning and opportuntity

YouthWorks as a Partner Converger

Portal manager

• Donor agency

• NGO

• Chamber of Commerce

Content provider

• NGOs

• Universities

Job provider

• Employers

• Recruitment agencies

Career counseling

• NGOs

• Youth centers

PR

• Universities

• NGOs

2G function

• Telco

A network of partners is required to contribute to the portal in terms

of content, job placement, entrepreneur resources and others as

identified by each country team.

YouthWorks as a Partner Converger

What Microsoft has

• Youth Advisory training, content, psychometric tools

• Entrepreneurship Train-the-Trainer and resources

• Outreach and Youth mobilization

• Language learning and assessment

• eLearning

What partners have

• Advisors and Career Centers

• Jobs and Internships

• Centers for digital connectivity

• Local entrepreneurship support initiatives

• Local skills development initiatives

• Locally relevant content

• Student/ Youth network

Website screenshots

www.tounesta3mal.com

Pillar #1: Career planning

Pillar #2: Learn Online

Pillar #3: Job placement

Pillar #4: Work4Yourself (entrepreneurs)

Mobiworks – 2G Solution for Employment

YouthWorks Platform in Tunisia in Numbers

Number of online advising sessions via Test Tamheed : 280

Number of users on the platform: 5,000

Number of online coaching sessions concerning Entrepreneurship : 100 +

Number of MobiWorks users registered: 290,434

Number of users who received job opportunities through 2G: 176,606.

Number of Events attended since the launch till now: 26

Number of people trained on BYB: 969 in over 5 regions

Number of people coached through career & entrepreneurship workshops: 7,240

Un nouveau concept dans le cadre de l’incitation

des jeunes à l’entreprenariat et à l’emploi

Ce programme est une application téléphonique

qui permettra d’évaluer les connaissances des jeunes

concernant l’emploi et l’entreprenariat.

C’est un moyen qui servira à encourager les jeunes

à découvrir leurs centres d’intérêt

sur le plan personnel et professionnel.

Le mobile au service de l’emploi

Le mobile au service de l’emploi

Plusieurs moyens seront mis en place pour aider l’utilisateur à découvrir sa vocation:

Des quizz

Des alertes SMS

Des tests psychotechniques

Ce programme comporte plusieurs axes :

L’entreprenariat

Les centres d’intérêt

Les stages et les formations

Les possibilités de financement

Les réponses aux différentes questions de l’application aideront les utilisateurs

à avoir des informations fiables et mises à jour concernant le monde professionnel.

Le programme fournit aussi des conseils orientés emploi.

Ce contenu a été développé par des experts en formation

ayant une expérience solide dans le domaine de l’orientation et de l’emploi.

Le contenu est conçu de manière à être à la fois constructif et amusant.

L’application est facile à utiliser, valable pour

toutes les tranches d’âge, soit sur un appareil téléphonique

basique ou sur un smart phone.

Le mobile au service de l’emploi