INTRODUCTION TO CSR

Corporate social responsibility (CSR) is also known by a number of other names. These

include corporate responsibility, corporate accountability, corporate ethics, corporate citizenship

or stewardship, responsible entrepreneurship, and “triple bottom line,” to name just a few. As

CSR issues become increasingly integrated into modern business practices, there is a trend

towards referring to it as “responsible competitiveness” or “corporate sustainability.”

A key point to note is that CSR is an evolving concept that currently does not have a

universally accepted definition. Generally, CSR is understood to be the way firms integrate

social, environmental and economic concerns into their values, culture, decision making, strategy

and operations in a transparent and accountable manner and thereby establish better practices

within the firm, create wealth and improve society. As issues of sustainable development become

more important, the question of how the business sector addresses them is also becoming an

element of CSR.

The World Business Council for Sustainable Development has described CSR as the

business contribution to sustainable economic development. Building on a base of compliance

with legislation and regulations, CSR typically includes “beyond law” commitments and

activities pertaining to:

• Corporate governance and ethics;

• Health and safety;

• Environmental stewardship;

• Human rights (including core labour rights);

• Sustainable development;

• Conditions of work (including safety and health, hours of work, wages);

• Industrial relations;

• Community involvement, development and investment;

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• Involvement of and respect for diverse cultures and disadvantaged peoples;

• Corporate philanthropy and employee volunteering;

• Customer satisfaction and adherence to principles of fair competition;

• Anti-bribery and anti-corruption measures;

• Accountability, transparency and performance reporting; and

• Supplier relations, for both domestic and international supply chains.

Generally, CSR is understood to be the way firms integrate social, environmental and

economic concerns into their values, culture, decision making, strategy and operations in a

transparent and accountable manner, and thereby establish better practices within the firm, create

wealth and improve society.

These elements of CSR are frequently interconnected and interdependent, and apply to

firms wherever they operate in the world.

It is also important to bear in mind that there are two separate drivers for CSR. One

relates to public policy. Because the impacts of the business sector are so large, and with a

potential to be either positive or negative, it is natural that governments and wider society take a

close interest in what business does. This means that the expectations on businesses are rising;

governments will be looking for ways to increase the positive contribution of business. The

second driver is the business driver. Here, CSR considerations can be seen as both costs (e.g., of

introducing new approaches) or benefits (e.g., of improving brand value, or introducing products

that meet sustainability demands). The remainder of this guide addresses the second of these

drivers.

Since businesses play a pivotal role both in job and wealth creation in society and in the

efficient use of natural capital, CSR is a central management concern. It positions companies to

both proactively manage risks and take advantage of opportunities, especially with respect to

their corporate reputation and the broad engagement of stakeholders.

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The latter can include shareholders, employees, customers, communities, suppliers,

governments, non-governmental organizations, international organizations and others affected by

a company’s activities engagement).

Above all, CSR is about sensitivity to context - both societal and environmental - and

related performance. It is about moving beyond declared intentions to effective and observable

actions and measurable societal impacts. Performance reporting is all part of transparent,

accountable - and, hence, credible - corporate behaviour. There is considerable potential for

problems if stakeholders perceive that a firm is engaging in a public relations exercise and

cannot demonstrate concrete actions that lead to real social and environmental benefits.

“Social responsibility (is the) responsibility of an organisation for the impacts of its decisions

and activities on society and the environment through transparent and ethical behaviour that

is consistent with sustainable development and the welfare of society; takes into account the

expectations of stakeholders; is in compliance with applicable law and consistent with

international norms of behaviour; and is integrated throughout the organisation.”

Working definition, ISO 26000 Working Group on Social Responsibility, Sydney,

February 2007

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EMERGENCE OF CSR AS A PUBLIC AND BUSINESS

CONCERN

1950s Social

responsibility

of

businessmen

The obligations of businessmen to pursue policies,

to make decisions or to follow lines of action which

are desirable in terms of the objectives and values of

society

Bowen (1953)

Some socially responsible business decisions can be

justified by the long-run economic gain of the firm,

thus paying back for its socially responsible

behaviour.

Davis (1960)

Private contribution to society’s economic and

human resources and a willingness on the part of

business to see that those resources were utilized for

broad social ends

Frederick (1960)

1960s–1970s Stakeholder

approach

Instead of striving only for larger returns to its

shareholders, a responsible enterprise takes into

account the interests of employees, suppliers,

dealers, local communities and the nation as a

whole.

Johnson (1971)

Three

dimensional

model

The concept consists of corporate responsibilities

(i.e., economic, legal, ethical and philanthropic),

social issues of business (e.g., labour standards,

human rights, environment protection and

anticorruption) and corporate actions (e.g., reactive,

defensive, accommodative and proactive).

Carroll (1979)

1980s-1990s Three-

dimensional

model of

principles,

Integration of the principles of corporate

responsibility, the policies of social issue

management and the process of action into an

evolving system.

Wartick and

Cochran (1985)

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policies and

processes

Institutional

framework

and

extended

corporate

actions

Four types of corporate responsibilities (i.e.,

economic, legal, ethical and philanthropic) were

linked to three institutional levels (i.e., legal,

organizational and individual), while corporate

actions are extended to assessment, stockholder

management and implementation management.

Wood (1991)

2000s Three-

domains

approach

Three domains of corporate responsibilities:

economic, legal and ethical.

Schwartz and

Carroll (2003)

New concept A process to integrate social, environmental, ethical,

human rights and consumer concerns into business

operations and core strategy in close corporation

with the stakeholders

European

Commission

(2011)

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IMPORTANCE OF CSR

Many factors and influences have led to increasing attention being devoted to the role of

companies and CSR. These include:

1. SUSTAINABLE DEVELOPMENT:

United Nations (UN) studies and many others have underlined the fact that humankind

is using natural resources at a faster rate than they are being replaced. If this continues, future

generations will not have the resources they need for their development. In this sense, much

of current development is unsustainable—it can’t be continued for both practical and moral

reasons. Related issues include the need for greater attention to poverty alleviation and

respect for human rights. CSR is an entry point for understanding sustainable development

issues and responding to them in a firm’s business strategy.

2. GLOBALIZATION:

With its attendant focus on cross-border trade, multinational enterprises and global

supply chains—economic globalization is increasingly raising CSR concerns related to

human resource management practices, environmental protection, and health and safety,

among other things. CSR can play a vital role in detecting how business impacts labour

conditions, local communities and economies, and what steps can be taken to ensure business

helps to maintain and build the public good. This can be especially important for export-

oriented firms in emerging economies.

3. GOVERNANCE:

Governments and intergovernmental bodies, such as the UN, the Organisation for

Economic Co-operation and Development (OECD) and the International Labour

Organization (ILO) have developed various compacts, declarations, guidelines, principles

and other instruments that outline norms for what they consider to be acceptable business

conduct. CSR instruments often reflect internationally-agreed goals and laws regarding

human rights, the environment and anti-corruption.

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4. CORPORATE SECTOR IMPACT:

The sheer size and number of corporations, and their potential to impact political, social

and environmental systems relative to governments and civil society, raise questions about

influence and accountability. Even small and medium size enterprises (SMEs), which

collectively represent the largest single employer, have a significant impact. Companies are

global ambassadors of change and values.

5. COMMUNICATIONS:

Advances in communications technology, such as the Internet and mobile phones, are

making it easier to track and discuss corporate activities. Internally, this can facilitate

management, reporting and change. Externally, NGOs, the media and others can quickly

assess and profile business practices they view as either problematic or exemplary. In the

CSR context, modern communications technology offers opportunities to improve dialogue

and partnerships.

6. FINANCE:

Consumers and investors are showing increasing interest in supporting responsible

business practices and are demanding more information on how companies are addressing

risks and opportunities related to social and environmental issues. A sound CSR approach

can help build share value, lower the cost of capital, and ensure better responsiveness to

markets.

7. ETHICS:

A number of serious and high-profile breaches of corporate ethics resulting in damage to

employees, shareholders, communities or the environment-as well as share price-have

contributed to elevated public mistrust of corporations. A CSR approach can help improve

corporate governance, transparency, accountability and ethics.

8. CONSISTENCY AND COMMUNITY:

Citizens in many countries are making it clear that corporations should meet the same high

standards of social and environmental care, no matter where they operate. In the CSR

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context, firms can help build a sense of community and shared approach to common

problems.

9. LEADERSHIP:

At the same time, there is increasing awareness of the limits of government legislative and

regulatory initiatives to effectively capture all the issues that CSR address. CSR can offer the

flexibility and incentive for firms to act in advance of regulations, or in areas where

regulations seem unlikely.

10.BUSINESS TOOL:

Businesses are recognizing that adopting an effective approach to CSR can reduce the risk of

business disruptions, open up new opportunities, drive innovation, enhance brand and

company reputation and even improve efficiency.

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BENEFITS OF CORPORATE SOCIAL RESPONSIBILITY

Key potential benefits for firms implementing CSR include:

1. BETTER ANTICIPATION AND MANAGEMENT OF AN EVER-

EXPANDING SPECTRUM OF RISK:

Effectively managing governance, legal, social, environmental, economic and

other risks in an increasingly complex market environment, with greater oversight and

stakeholder scrutiny of corporate activities, can improve the security of supply and

overall market stability. Considering the interests of parties concerned about a firm’s

impact is one way of better anticipating and managing risk.

2. IMPROVED REPUTATION MANAGEMENT:

Organizations that perform well with regard to CSR can build their reputation,

while those that perform poorly can damage brand and company value when exposed.

Reputation, or brand equity, is founded on values such as trust, credibility, reliability,

quality and consistency. Even for firms that do not have direct retail exposure through

brands, their reputation for addressing CSR issues as a supply chain partner - both good

and bad - can be crucial commercially.

3. ENHANCED ABILITY TO RECRUIT, DEVELOP AND RETAIN

STAFF.

This can be the direct result of pride in the company’s products and practices, or

of introducing improved human resources practices, such as “family-friendly” policies. It

can also be the indirect result of programs and activities that improve employee morale

and loyalty. Employees are not only front-line sources of ideas for improved

performance, but are champions of a company for which they are proud to work.

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4. IMPROVED INNOVATION, COMPETITIVENESS AND MARKET

POSITIONING.

CSR is as much about seizing opportunity as avoiding risk. Drawing feedback

from diverse stakeholders can be a rich source of ideas for new products, processes and

markets, resulting in competitive advantages.

The history of good business has always been one of being alert to trends,

innovation, and responding to markets. Increasingly, mainstream advertising features the

environmental or social benefits of products (e.g., hybrid cars, unleaded petrol, ethically

produced coffee, wind turbines, etc.).

5. ENHANCED OPERATIONAL EFFICIENCIES AND COST

SAVINGS.

These flow in particular from improved efficiencies identified through a

systematic approach to management that includes continuous improvement. For example,

assessing the environmental and energy aspects of an operation can reveal opportunities

for turning waste streams into revenue streams and for system-wide reductions in energy

use, and costs.

6. IMPROVED ABILITY TO ATTRACT AND BUILD EFFECTIVE

AND EFFICIENT SUPPLY CHAIN RELATIONSHIPS.

A firm is vulnerable to the weakest link in its supply chain. Like-minded

companies can form profitable long-term business relationships by improving standards,

and thereby reducing risks. Larger firms can stimulate smaller firms with whom they do

business to implement a CSR approach. For example, some large apparel retailers require

their suppliers to comply with worker codes and standards.

7. ENHANCED ABILITY TO ADDRESS CHANGE.

A company with its “ear to the ground” through regular stakeholder dialogue is in

a better position to anticipate and respond to regulatory, economic, social and

environmental changes that may occur. Increasingly, firms use CSR as a “radar” to detect

evolving trends in the market.

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8. MORE ROBUST “SOCIAL LICENCE” TO OPERATE IN THE

COMMUNITY:

Improved citizen and stakeholder understanding of the firm and its objectives and

activities translate into improved stakeholder relations. This, in turn, may evolve into

more robust and enduring public, private and civil society alliances (all of which relate

closely to CSR reputation, discussed above). CSR can help build “social capital.”

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LIMITATIONS OF CORPORATE SOCIAL RESPONSIBILITY

Most corporations, especially multinational corporations (MNCs) have already adopted

CSR policy despite the fact that there are still debates over the concept. Under globalization,

states power has weakened where as the power and influence MNCs have significantly

strengthened, making them become more state-like. This expansion of role played by MNCs in

society has urged the rise of concern groups to pressurize on them to take up more social

responsibility. If CSR policy is adopted so widely by different corporations, the question to be

asked here is ‘why are there still exploitations?’

1. LIMITATIONS OF JURISDICTIONS

Under globalization, many corporations have outsourced their products manufacturing

process to other countries, mainly developing countries. In those countries, domestic legislations

do not usually provide sufficient protection on labour, such as minimum wage or guidelines on

health and safety in the workplace. Even countries like China, which does have a well drafted

labour protection legislation, labour exploitation issues still exist because of weak enforcement

of the law.

2. NO DIRECT RESPONSIBILITY IMPOSED ON THE PURCHASING

FIRMS

Even if the domestic law is well enforced, the purchasing MNCs are not legally

responsible for any of the charges. Ultimately, it is the domestic factory or firm will be held

responsible. Since there almost no punitive measures on the MNCs, the law and enforcement

system fail to function here. Since it is not an obligatory commitment for the MNCs to provide

fair and safe labour treatment, whether a MNC will give equal treatments to factory workers will

largely depend on how socially responsible they are. Although acquiring state-like

characteristics, businesses are nonetheless still profit-driven actors.

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3. DIFFICULTIES IN AUDITING

In order to comply with higher standard of CSR, some firms have undergone active

research and auditing on the firms they hired in their supply chain. Discrepancies between reality

and audit results do exist. One very crucial difficulty in auditing is that the factory can always

hide the bad things since they know what they look for. Workers could also be under pressure

and not tell the truth. Since difficulties exist while carrying out active auditing, its effectiveness

and reliability is therefore questionable.

4. STAKEHOLDER PRIORITIES

Increasingly, corporations are motivated to become more socially responsible because

their most important stakeholders expect them to understand and address the social and

community issues that are relevant to them. This normative model implies that the CSR

collaborations are positively accepted when they are in the interests of stakeholders and may

have no effect or be detrimental to the organization if they are not directly related to stakeholder

interests. The stakeholder perspective suffers from a wheel and spoke network metaphor that

does not acknowledge the complexity of network interactions that can occur in cross sector

partnerships. It also relegates communication to a maintenance function, similar to the exchange

perspective.

5. INDUSTRIES CONSIDERED VOID OF CSR

Several industries are often absent from CSR research. The absence is due to

the presumption that these particular industries fail to achieve ethical considerations of their

consumers. Typical industries include tobacco and alcohol producers ("sin industry"

manufacturers), as well as defense firms.

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MICROSOFT CORPORATION

1. INTRODUCTION:

Headquartered in Redmond, Washington, Microsoft is a multinational computer software,

services and solutions company for consumers and businesses. Founded by William (Bill) H.

Gates III in 1975 and co-founder Paul Allen, Microsoft is known globally for its Microsoft

Windows operating system and Microsoft Office suite of products, including Internet Explorer,

Excel, PowerPoint and Word programs. Moving into consumer electronics, Microsoft also offers

the Xbox and Xbox 360 video game consoles and the Zune mp3 music device.

2. THE FACTS:

Consistently ranked by Fortune magazine as one the "World's Most Admired Companies"

and among the top 50 largest companies in the United States, Microsoft's revenue reached US$

86.83 billion in 2014, leading to a net income of US$ 22.07 billion. In 2014 Microsoft’s net

income was estimated at US$ 22.07 billion. Operating globally, some 128,076 (June 2014)

employees work in 105 countries. Microsoft conducted its initial public stock offering (IPO) in

1986.

The name "Microsoft" is synonymous with computers in popular culture; however, this

ubiquity came at a price. The company faces criticism in the United States and abroad for anti-

trust tactics, accused of monopolistic business practices.

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3. HISTORY:

Microsoft capitalized on the need for an operating system for the blossoming personal

computer industry. Gates developed the BASIC programming language in the late 1970s, but the

DOS operating system created for the IBM personal computer in the early 1980s solidified

Microsoft's position. Teaming with IBM on additional projects, Gates and his team also

developed a series of languages for new IBM systems: BASIC, FORTRAN, COBOL, and

Pascal. As IBM computers grew faster and more efficient in the late 1980s, Microsoft continued

to upgrade the now renamed MS-DOS, while also marketing the system to other manufacturers.

After the company's IPO in 1986, it received the funds necessary to increase research and

development, which led to the introduction of Microsoft Office, a software bundle created to

improve business productivity, including Word and Excel. Microsoft Office soon became the

market leader, far surpassing its closest competitors.

The explosion of the Internet in the 1990s initially caught Microsoft off guard. However,

it soon recovered with Internet Explorer (released in 1995), a web portal that gave users a

starting point for Internet activities. Internet Explorer became the de facto web homepage.

Microsoft also launched other web ventures, including Microsoft Network (MSN). In 1996, the

company teamed with NBC to create the MSNBC cable news network.

In 1998, Steve Ballmer replaced Gates as president, with Gates remaining CEO and

Chairman of the Board. Microsoft then released the Windows 98 operating system, which

included web-based upgrades. In 2001, Microsoft XP appeared, tying together features of its

consumer and business programs. In 2007, the company released Windows Vista.

Not content with relying solely on its operating systems for revenue, Microsoft branched

into other industries, including mp3 devices, mobile operating systems, computer peripherals,

web products for the television, electronic publishing, computer games, and computer gaming

consoles. In 2001, it released the Xbox console and the Xbox 360 in 2005.

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4. BILL GATES:

One of the most recognizable and richest men in the world, Bill Gates co-founded

Microsoft and built it into one of the most important corporations in business history. While

running day-to-day operations at Microsoft, Gates served as CEO and chief software architect.

He turned daily management over to Steve Ballmer in 2000. In June 2006, he stepped down as a

full-time employee, remaining Chairman of the Board of Directors. Gates transitioned to running

the Bill & Melinda Gates Foundation, founded in 2000. Central to the organization's mission is

alleviating disease and poverty globally and on education programs for children.

5. THE WORLD'S OPERATING SYSTEM:

Microsoft Windows is the company's flagship product and accounts for most of its

revenue. The Windows operating system is almost ubiquitous with computers. According to a

Gartner Inc. report quoted in The Wall Street Journal, Microsoft holds a 96.6 percent market

share. Open source and the Android operating system created by Google are expected to take

away a small percentage of this lead in the future, but only 2 to 3 percentage points.

6. POTENTIAL:

Similar to companies worldwide, Microsoft is adapting to the new economic times. The

company announced a 6 percent drop in revenue ($13.65 billion) in its third quarter of 2009 from

the year earlier. Also in 2009, Microsoft laid off employees (5,000) for the first time in company

history.

Despite the gloomy economic picture, Microsoft is poised to capitalize on its history of

significant investment in research and development (totaling $8.2 billion in 2008). Most

important is the 2010 launch of the Windows 7 operating system.

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7. LATEST NEWS:

JOHN W. THOMPSON REPLACES BILL GATES AS CHAIRMAN OF MICROSOFT BOARD

John W. Thompson, CEO of Virtual Instruments and former CEO of Symantec Corp, was named

chairman of Microsoft’s board of directors, on 4th February, 2014

Thompson has served as an independent director on the board of Microsoft and also brings his

experience as a former vice-president at IBM to his current post.

MICROSOFT ANNOUNCES NEW CEO

Full Name: Satya Nadella

Birthplace : Hyderabad, India

Born : 1967

Residence: Bellevue, Washington

Education: BS, MSCS, MBA

Hobbies: Cricket, Poetry

Microsoft Corp. announced on 4th February, 2014 that its Board of Directors has appointed

Satya Nadella as Chief Executive Officer and member of the Board of Directors effective

immediately. Nadella previously held the position of Executive Vice President of Microsoft’s

Cloud and Enterprise group.

“During this time of transformation, there is no better person to lead Microsoft

than Satya Nadella,” said Bill Gates, Microsoft’s Founder and Member of the Board of

Directors. “Satya is a proven leader with hard-core engineering skills, business vision and the

ability to bring people together. His vision for how technology will be used and experienced

around the world is exactly what Microsoft needs as the company enters its next chapter of

expanded product innovation and growth.” 

As Satya Nadella becomes the third CEO of Microsoft, he brings a relentless drive for

innovation and a spirit of collaboration to his new role. He joined Microsoft 22 years ago

because he saw how clearly Microsoft empowers people to do magical things and ultimately

make the world a better place. Many companies, he says, “aspire to change the world. But very

few have all the elements required: talent, resources and perseverance. Microsoft has proven that

it has all three in abundance.”

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CORPORATE SOCIAL RESPONSIBILITY AT MICROSOFT

CORPORATION

Good corporate citizenship starts at home. To meet the responsibilities as a global

company, they’re continually working to create a respectful and rewarding work environment for

the nearly 100,000 employees. They’re also pioneering new ways of reducing the environmental

impact.

This year, they introduced an internal carbon fee that helped us meet the FY13 goal of

carbon neutrality. In addition, they’re continually strengthening expectations for the hardware

production suppliers to improve the working conditions and environmental performance of

electronics factories around the world. They recognize the important responsibility they have to

respect human rights, and they work to bring the power of technology to bear to promote respect

for human rights throughout the world.

Through the Microsoft Technology and Human Rights Center, they’re working internally

to promote the integration of human rights into the company’s culture, business operations, and

strategies. Externally, they’re seeking to advance public understanding of the role business can

play in driving respect for human rights.

Since the release of the first product in 1975, they’ve demonstrated the promise of

computing to change the world. But as they’ve grown as a company, so have the world’s social

and economic challenges. They’re responding by applying the technology, ingenuity, and

collaborative spirit to help solve these critical challenges and create fulfilling and exciting

opportunities for people everywhere. They focus the commitment to corporate citizenship in two

ways: working responsibly in the own business and serving the communities around the world.

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“MICROSOFT YOUTH SPARK”

Today’s youth aspire to make a better future — for themselves and the world around

them. Microsoft Youth Spark empowers hundreds of millions of future achievers to imagine,

explore, and realize their potential by connecting them with greater opportunities for education,

employment, and entrepreneurship.

Young people face a world that’s rapidly changing. As economies shift, industries

emerge, and technology sets the pace, the gap between those who have access, skills, and

opportunities and those who don’t is glaring. We believe technology can help bridge this

opportunity divide and secure the future of young people and the global economy. That’s why

we’re empowering youth by increasing access to technology and equipping them with the tools

and skills they need to succeed. Through our partnerships, programs, and initiatives, we’re

inspiring youth to imagine and build a better future for themselves and their communities

Empowering youth through technology and education

For young people to succeed in today’s economy — and help build the economy of the

future — they need direct access to both technology and relevant skills, along with support from

teachers, leaders, governments, and nonprofits. They’re connecting youth with the resources they

need to make a real impact for a better tomorrow.

Helped youth gain new skills, education, and training by providing Youth Spark grants to

nonprofits worldwide. As part of the commitment to create opportunities for 300 million

youth globally over the next three years, they launched partnerships with the European Youth

Forum; the China Foundation for Youth Employment and Entrepreneurship; Trust for the

Americas; and the African Centre for Women and ICT, among many other youth-focused

nonprofits. In FY13, they awarded grants to a total of 186 nonprofit organizations in 62

countries.

Accelerated learning and collaboration among students and teachers worldwide through

Office 365 for Education, which provides access to Word, PowerPoint, and Excel, and a

range of communications tools, including email, instant messaging, group video, and voice

chat.

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Fostered shared learning experiences around the world while building global communities

for students to meet new people, speak to experts, and share ideas through Skype in the

Classroom. Nearly 2 million students worldwide have benefited from the program.

Microsoft is helping transform education by equipping teachers and preparing youth with the

technology skills they need to succeed.

Empowered educators with technology to enhance learning in their classrooms through

Partners in Learning. The Partners in Learning Network added 788,000 educators from 134

countries and reached 10 million students in FY13.

Addressed the urgent need to improve computer science education during K–12 years by

placing Microsoft employees into high schools across the United States as part of the

Technology Education and Literacy in Schools (TEALS) program. In the 2012–2013 school

year, 1,500 students from 35 schools in seven states gained access to computer science

courses to help inspire and prepare them for university study.

Gave educators resources training, and software to help them teach computing and technical

classes through the Faculty Connection program, which reached 5.4 million students in

FY13. They’re inspiring young people to imagine what’s possible for their futures through

programs that develop new skills, engage leaders, and ignite imaginations.

Created the global Innovate for Good online community, which encourages and enables

youth to collaborate, inspire, & support each other’s groundbreaking ideas for social change.

Launched in 2012, program brought together more than 2,200 members in 76 countries in its

first year through local events & online engagement tools.

Championed technology and technology-focused careers for high school girls as part of the

Digi Girlz program, which fosters connections with Microsoft employees through hands-on

computer and technology workshops.

Advanced the teaching and learning of technical skills during the critical high school and

college years through Dream Spark, which offered more than 12 million students and

educators free access to Microsoft designer and developer tools.

Microsoft Helps the Environment, Contributes to ‘PAPERLESS’ Schools

In 2003, Microsoft Corporation joined forces with the School District of Philadelphia in an

attempt to help out the environment by creating America's first 'paperless' school. It was

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called 'School of the Future'. As a result, they have inspired other schools across the U.S. to

do the same.

“DONATING SOFTWARE & SERVICES TO NONPROFITS

WORLDWIDE”

With the right software, nonprofits can provide faster, better service and operate more

efficiently. They donate hundreds of millions of dollars in software each year through the

Technology for Good program.

• Increased software donations to 13 percent more nonprofits in FY13, empowering 70,286

organizations globally. They now have software donation programs in 117 countries around the

world.

• Provided $795 million worth of software to nonprofits around the world — including matched

donations through the employee giving program.

• Gave nonprofits and educational institutions access to half a million refurbished Windows

devices by enabling manufacturers to affordably and legally license refurbished PCs through the

Microsoft Registered Refurbisher program.

• Enrolled 670 additional nonprofits in the refurbished PC program, which makes restored

hardware available to nonprofits at an affordable price. This year, they expanded the program to

include Windows Multi Point Servers, which allow organizations to run multiple workstations

through a single central computer.

• Funded the International Computer Refurbishers Summit, which provides training and

knowledge- sharing opportunities on how to refurbish used electronics for the benefit of both

nonprofit and commercial interests. The summit helps build community capacity by giving

participants new insights and workshop skills.

• Made it easier for people to connect to friends and family during disasters through the Help

Bridge mobile app. Supported by Windows Azure, the app also helps people quickly identify

disaster relief organizations that need financial and volunteer support.

• Launched the Windows 8 Apps for Social Good contest, which encourages developers to create

apps that have a positive impact on the world around them. FY13 winners included an app that

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helps users locate medicine at a reduced cost, and an app that combats obesity by informing

users how to prepare nutritious, healthy meals at home.

• Encouraged students to develop solutions to real social issues with the Imagine Cup Grant

program — a three-year, $3 million competitive program that awards cash, software, and access

to a select number of Imagine Cup worldwide finalists. Team Graph masters, one of this year’s

winners, created a traffic navigation system that reduces vehicle carbon emissions, fuel costs,

and traffic jams by intelligently routing vehicles based on traffic and weather conditions.

EMPLOYEE GIVING

Employee giving is a cornerstone of the citizenship efforts and an integral part of

Microsoft culture. In 2013, they celebrated the 30th annual giving campaign and surpassed $1

billion in contributions to more than 31,000 nonprofits around the world. The success of the

employee giving campaign reflects the respect and appreciation for the employees and the

dedication to serving the communities where they live and work.

Employee giving occurs year-round at Microsoft. They have a special push each October,

when they hold a range of campaign kickoff events, such as a 5K run, an online auction, and

more than 300 other employee-led activities. In the United States, they match nonprofit

donations and volunteering up to $12,000 per employee each year.

• Contributed $105 million through the employee giving and company match program in

calendar year 2012 — an increase of 4.4 percent from 2011.

• Donated more than $7.1 million in calendar year 2012 through the $17-per-hthe volunteer

matching gift program — part of the $105 million employee giving total. Since the program

began in 2006, employees have volunteered more than 2 million hours, which they’ve matched

with more than $34 million.

• Reached a new high of 64 percent participation in the employee giving campaign among the

U.S. employees in calendar year 2012 — with 37 percent volunteering more than 60 hours or

donating more than $1,000.

• Provided employees outside of the United States at least three paid days off to volunteer.

• Committed $4 million through employee contributions and company matching to the American

Red Cross and Mayors Fund in the United States, in the wake of Hurricane Sandy.

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Compensation and benefits

They attract the world’s best talent through competitive compensation, benefits, and

rewards, all of which contribute to a world-class work environment that motivates great people

to do great work. Many of the benefits programs are managed at a local level to ensure they are

competitive locally and meet the varying interests and needs of the employees around the world.

• Rewarded approximately 95 percent of eligible employees with performance-based bonuses

and stock awards.

• Promoted healthy eating with the farm-to fork initiative and made-from-scratch food options in

campus cafes.

• Contributed up to $3,750 per employee to health savings accounts, which provide employees

with tax-advantaged savings for current or future health care needs.

• Invested in employee retirement readiness by matching contributions to 401(k) plans at up to 3

percent of employee pay. In FY13, 87 percent of the employees participated in the 401(k) plan.

• Continued to provide U.S. health care benefits that rank among the best in the industry

furthering the long-standing commitment of providing the highest-quality care for the employees

and their families.

• Launched a major campaign to educate employees and their families on how to take advantage

of Microsoft’s new health plan and supporting benefits. The campaign included video shorts, in-

person and online benefits briefings, and an interactive online decision guide.

• Expanded the U.S. Stay Fit benefit to support a wider range of fitness goals. The benefit offers

a reimbursement of up to $800 per year for a large variety of fitness-related expenses, including

workout or recreational sports equipment, personal training, fitness classes, or fitness center

memberships.

• Attracted 8,500 participants to Campus Jam 2013, an annual event at the Redmond campus that

showcases Microsoft’s wellness benefits, with an emphasis on making fitness fun. This year’s

activities included a 5K campus fun run that attracted 21 percent more runners than last year,

wellness seminars, sports clinics, and a variety of other activities and events for employees and

families.

• Opened the Living Well Health Center at the Redmond campus, a full-service health center

designed specifically for Microsoft employees that emphasizes convenience, privacy, and

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comfort. The Living Well Health Center provides employees with preventive care, acute care,

physical therapy, chiropractic care, wellness coaching, and a full-service pharmacy.

• Encouraged employees to be more active throughout the day with the Move It! Physical

activity challenge, a one-month competition across the United States that awards prizes for

activities such as taking the stairs, working out, or playing with ythe kids. Approximately 12,000

U.S. employees registered for the challenge in FY13.

HUMANITARIAN RESPONSE

When disaster strikes, every minute counts. Relief agencies rely on quick, accurate

communications to help people and businesses get back to normal as quickly as possible. The

technology helps organizations keep vital information flowing during emergencies.

When Hurricane Sandy hit the U.S. mainland in October 2012 — destroying thousands of

homes and leaving millions without power — the Microsoft Disaster Response team was ready.

As the hurricane was still gathering momentum over the Atlantic Ocean, the team

deployed Microsoft Ready Reach, a cloud-based information portal that uses Windows Azure to

help emergency-management agencies and relief workers rapidly coordinate response efforts.

In addition to offering cloud-based maps that show the impact of a disaster in real time,

the portal makes use of social media to communicate information to disaster victims about

shelters, aid, and safe driving routes. It also makes it easier for people to connect with

humanitarian relief agencies in the area in need of money, food, or volunteers. The portal

received a record 32,766 views during Hurricane Sandy.

The Ready Reach response portal is one of many ways the Microsoft Disaster Response

team uses technology to keep vital information flowing during emergencies — both individually

and in tandem with leading humanitarian response organizations and technology partners.

Microsoft also provided a safe location for people to store their family emergency

response plans or insurance policies through Sky Drive for Windows or Mac — accessible from

any PC or smart phone.

In addition, in partnership with Aid matrix, the team launched the Notes from the Ground

program in late 2012. This portal delivers eyewitness responder stories to readers via photos,

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videos, and messages, helping increase awareness of conditions on the ground and rally

community support.

Responding To Disasters

The Microsoft Disaster Response program improves disaster preparedness and response through

the delivery of technology and expertise for citizens, lead responders, and businesses.

Current responses: Access Microsoft’s Ready Reach response portal in the event of a current

large-scale natural disaster. Here you will find situational information and resources to help keep

you safe, enable you to connect with others, and provide details for ways you can help.

Past responses: Over the last few decades, Microsoft has provided support for more than 200

natural disasters. Following represent a few of our response efforts over the years.

2013 Philippines Typhoon Haiyan (known locally as Yolanda)

On November 8, 2013, one of the strongest storms to ever make landfall struck the Visayas

region of the Philippines displacing over 4 million people. In response, Microsoft collaborated

across the technology industry to deploy TV White Space radios in the Philippines to enable

Internet connectivity for impacted citizens. Microsoft also played a key role in the deployment of

3 emergency.lu connectivity kits with Skype low bandwidth, enabling communications for 5,000

humanitarian aid workers. Altogether, between cash and in-kind donations, Microsoft provided

$1.1 million in relief support.

2012 East Coast USA storms

Hurricane Sandy made landfall along the U.S. East Coast with heavy winds, driving rain, and a

storm surge. This was followed by power outages and flooding. Microsoft provided support and

services for first responders, nonprofit relief agencies, customers and partners, and citizens in the

areas impacted by the East Coast USA storms, and committed cash and in-kind donations of

software, hardware and services to support relief efforts, altogether totaling $2.5 million. In

addition, Microsoft’s employees, including corporate match, donated more than $1.5 million to

relief efforts.

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2011 Japan Earthquake

After a massive earthquake and tsunami hit Japan and caused a nuclear crisis in March 2011,

disaster relief teams, government officials, and Japanese citizens struggled to share basic

information and communicate with one another. In response, Microsoft created and used cloud

solutions to help connect relief organizations, governments, businesses, and the public during the

aftermath. Windows Azure cloud services were used to create websites for disaster relief efforts,

including the website for MEXT (the Japanese Government's Ministry of Education, Culture,

Sports, Science, and Technology), a major government information portal. Additionally, the

MSN East Japan Earthquake Information website conveyed crucial news and information for

evacuees and volunteers, as well as useful safety information such as an interactive map of

radioactivity levels and a map of planned blackouts.

2010 Haiti Earthquake

On January 12, 2010, a 7.0-magnitude earthquake struck near the Haitian capital Port-au-Prince.

Microsoft worked closely with partners TM Software and IDV to support the United Nations

Office for the Coordination of Humanitarian Affairs (OCHA) through the deployment, support

and hosting of OneResponse in Haiti — the collaboration portal for information exchange and

situational awareness to coordinate the international relief efforts of the humanitarian

community. Additionally, through Microsoft's support, nonprofit partner, NetHope, was able to

set up an immediate response, with specific focus on establishing temporary telecommunications

infrastructure to allow humanitarian agencies to communicate and provide relief to those

affected.

2008 China Earthquake

Within hours of the May 2008 earthquake in the Chan's Sichuan Province, Microsoft began

working on relief and recovery efforts. The company and its employees collectively donated

US$1.4 million over two years to help rebuild schools and restore education programs in affected

communities. When the outpouring of online donations to the Chinese Red Cross Foundation

caused its Web site to crash, engineers from the Microsoft China Technology Center helped

launch a new site that could process more than 10,000 transactions per day. Microsoft employees

in the region also helped provide technical assistance to affected customers and partners, restore

local telecommunications service, and post online news reports from areas hit by the quake.

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2005 Hurricane Katrina

Following the devastating impact of Hurricanes Katrina and Rita, Microsoft worked with the

American Red Cross to create the Safe and Well Web site, and its employees committed more

than $11 million (U.S.) in cash contributions and technology solutions to the Hurricane Katrina

and Hurricane Rita relief response. Several months after the initial crisis, Microsoft made

additional investments of $1 million to organizations involved in rebuilding the region and

assisting displaced families.

ACCESSIBILITY

Today’s rapid advances in technology give people the opportunities to connect, engage,

and contribute more fully to society. The technologies inspire people of all ages and abilities to

make the most of their potential — eliminating barriers, improving lives, and strengthening

communities.

Technology empowers people — including seniors, people with disabilities, and youth —

to participate at the centers of social and political life. They embed accessibility features into our

web services, software, and hardware, and they partner with others to advance important causes,

helping the customers do more with their talents and interests.

Expanding opportunity for people with disabilities

For people with disabilities or hearing and vision impairments, accessible technologies

can eliminate obstacles and broaden opportunities. They strive to build accessibility into many of

the products and services, provide resources that open new doors, and partner with others to

discover ways of using technology to improve lives.

• Took a leadership role on accessibility by supporting the formation of the International

Association of Accessibility Professionals. This group will provide the strategic leadership,

international perspective, and operational focus needed to globally elevate the accessibility

profession and build a worldwide infrastructure for accessible technology development.

• Worked with UN Human Rights to strengthen provisions in the International Convention on the

Rights of Persons with Disabilities. Supported by a study conducted in collaboration with

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Middlesex University and others, the new provisions also suggest ways that the United Nations

could improve its own accessibility.

• Helped address the needs of people with autism by sponsoring and hosting Hack Autism in

March 2013. Supported by the Bing Fund, the hackathon brought people together — thinkers,

hackers, designers — to develop scenario-specific prototypes to help advance knowledge and

develop solutions.

• Created a set of Microsoft Office templates for families to use after a child has been diagnosed

with autism, in conjunction with Autism Speaks. The templates theyre one of many Microsoft

initiatives in support of autism-related causes this year.

• Provided assistance to customers with disabilities or who need support with accessibility

features on assistive technologies — such as screen readers, screen magnifiers, or speech-

recognition commands — by opening the Microsoft Accessibility

Support Desk. Free of charge, the support desk offers specialized assistance from trained agents.

Sounds that unlock the world

Amos Miller was thrilled. As a managing architect for Microsoft Consulting Services

(MCS) in the United Kingdom, Miller — who is blind — had just confirmed that his proof-of-

concept innovations for people with visual impairments had succeeded.

He had conceived a whole new way to interact with his surroundings. Miller’s 3-D

Soundscape helps people with visual impairments overcome their anxiety and move about on

their own by emitting audio beacons from destinations around town. Rather than a voice saying

“Starbucks 20 steps ahead on the left,” the 3-D Soundscape sends an audio cue from the actual

location to create a more meaningful 360-degree world.

Miller’s team also designed the Windows 8 UX app, which allows people to use voice

and natural gestures such as swiping, tapping, and scrolling to understand and interact with

information appearing on their screen — without using their eyes.

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Improving wellness for seniors

Older adults can live more independent and productive lives with the help of innovative

technologies. They partner with community groups and local governments to promote the use of

technologies that reduce social isolation, increase wellness, and enhance the quality of life for

seniors.

• Broadened the effort to help seniors get fit, socialize, and manage their personal health online

with the Exergamers Wellness Club. The program — which employs Microsoft Kinect for Xbox

360, Xbox LIVE, and Microsoft Health Vault — is now offered to senior centers throughout Los

Angeles. Participants can take part in friendly video-game competitions while also uploading and

tracking important health data, such as blood pressure and glucose readings, through their online

profiles.

• Launched a new Exergamers program in New York City in collaboration with New York City’s

Department for the Aging and Department of Information Technology & Telecommunications.

The fitness program is part of the city’s Innovative Senior Center project, a citywide effort to

encourage better fitness and wellness among New York City’s older adults.

• Received an innovation award for senior programming from the National Association of Area

Agencies on Aging (n4a), the leading voice on aging issues. The award recognized the success

with the Exergamers Wellness Club, which they developed in collaboration with the City of Los

Angeles Department of Aging.

Environmental sustainability

Technology can help create a more sustainable future. This year, they modeled a way forward by

making the operations leaner and more energy efficient — helping us meet the FY13 goal of

carbon neutrality — and reducing the environmental impact of the services and devices.

Making the operations carbon neutral

Climate change presents serious global challenges that require bold responses. With the

commitment to carbon neutrality, they’re taking accountability for the impact of the operations

by embedding sustainability into all of the business decisions. The approach to carbon neutrality

has three pillars.

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Be lean

They’re setting targets to improve energy efficiency in the data centers, labs, and offices, as well

as reduce the use of air travel.

Be green

They’re purchasing more renewable energy and establishing goals to reduce the waste and water

use.

Be accountable

They’re measuring the carbon impact of the operations and charging the business groups a fee

for their associated carbon dioxide (CO2) emissions.

Developing technologies to reduce environmental impact

Information technology accounts for up to 4 percent of electricity consumed globally. To keep

such power use in line, they’re building new efficiencies into the products and services to help

the customers reduce their environmental impact. And as the customers and collaborators put

their energies into using the products, they’re advancing the conversation about conservation and

climate change mitigation.

Improving energy efficiency in products and services

Much like the cloud has revolutionized business efficiency, they’ve transformed how efficient

cloud storage can be. Through the online products and solutions, they’re helping Microsoft users

worldwide reduce their own energy consumption.

• Reduced the customers’ environmental impact by hosting Microsoft cloud services in the

advanced, highly efficient data centers. Small and medium-size businesses that use Microsoft

cloud services can reduce their energy use and associated carbon emissions by up to 90 percent

compared with on-premises delivery.

• Cut PC energy consumption while driving better performance through power management

features built into the hardware and Windows 8.

• Equipped IT managers to better discover, track, and implement potential energy efficiencies

with centrally managed tools such as Microsoft’s System Center Configuration Manager.

• Helped customers avoid emissions from shipping and packaging through the Digital by Choice

program, which offers digital software distribution and dematerializes CD and DVD production.

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• Redesigned the products for improved environmental performance. Windows 8, for example,

makes power management seamless and efficient across multiple devices, including laptops, net

books, desktops, or tablets. They also expanded on the significant battery-life improvements

made in Windows 7 and further developed them in Windows 8, such as giving PCs and laptops

the ability to instantly switch bettheyen low- and high power modes.

• Created a public website and hosted events and programs to foster community knowledge in

life cycle sustainability, particularly the environmental choices related to buying, using, and

disposing of electronics.

• Reduced standby power use for the Xbox 360 by a factor of 10 since its launch in 2005. Now

using less than three-tenths of a watt, the efficiencies have resulted in a 60 percent reduction in

energy use.

Informing discussions of climate change

Climate change mitigation requires action and understanding. We’re helping collect, study, and

manage research into the impact of climate change to support conservation strategies and inform

public policy

• Mapped out threats to endangered wildlife in partnership with the International Union for

Conservation of Nature and Natural Resthece’s Red List of Threatened Species. The dedicated

team of CEES environmental scientists developed software built on SQL Server 2012 and Bing

Maps to strengthen research and create a repository of evidence for threats to species.

• Helped preserve threatened plant and animal species in Latin America through Live ANDES, a

data collection and processing tool developed by Microsoft Research in collaboration with the

Pontifical Catholic University of Chile and the Latin American and Caribbean Collaborative ICT

Research Virtual Institute.

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HUMAN RIGHTS

Rapid advances in technology create new ways for people to exercise their human rights,

yet also introduce new human rights risks. As a global technology company, they are committed

to helping people express and protect their fundamental liberties around the world.

The power of technology to promote human rights

While technology itself doesn’t take sides, technology providers can play a powerful role

in promoting human rights and helping people understand the risks and rewards of using

technology. We believe companies such as Microsoft have a responsibility to uphold universally

accepted standards of human rights and protect people’s privacy — starting with the design and

manufacturing of our products.

Our Global Human Rights Statement is a powerful beacon for our business — a

foundational influence for relevant policies and practices. The statement lays out a common set

of human rights principles and helps guide key business decisions in critical areas, such as

privacy, security, freedom of expression, labor rights, equality, diversity, and access to

education.

They believe technology should help people achieve their full potential in accordance

with fundamental human rights. In January 2013, they launched the Microsoft Technology and

Human Rights Center at the World Economic Forum 2013 Annual Meeting in Davos,

Switzerland. A cornerstone of the human rights activities, the center will help us further integrate

human rights into the culture and throughout the operations. They’ll also work through the center

to advance public understanding of the human rights impacts of information and communications

technology (ICT). The FY13 actions in this area encompassed two main categories: anti-human

trafficking and online safety

• Supported the global fight against human trafficking and helped empower young women to

become leaders in computer science by sponsoring the International Women’s Hackathon. The

crowd sourcing event, which involved 395 women on 11 university campuses worldwide, was

aimed at developing technical solutions to advance the missions of three nonprofits: FAIR Girls,

Rights4Girls, and The Hindsight Group.

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• Advocated increased adoption of anti-child pornography tools like Microsoft PhotoDNA, an

image-matching technology used by leading companies, nongovernmental agencies (NGOs), and

law enforcement agencies to help stop the redistribution of the worst-known images of child

sexual exploitation online.

• Partnered with several organizations to combat human trafficking through the Internet,

including the White House Office of Science and Technology Policy, the White House Council

on Women and Girls, several U.S. state attorneys general, the UN Global Initiative to Fight

Human Trafficking, and local police agencies.

-- Informed California’s report “The State of Human Trafficking in California 2012,” in

partnership with the office of California Attorney General Kamala Harris. Released in November

2012, the report includes information on how organizations can use technology to investigate and

prosecute traffickers and assist victims.

-- Helped fight child exploitation by participating in the Thorn Foundation Technology Task

Force, a cross-industry collaboration that focuses on the role technology plays in crimes

involving child sex trafficking. This year, the contributions included helping establish industry

best practices and guidance on how to address the problem of online predators.

Online safety

• Championed the importance of online safety within the ICT industry by naming the industry’s

first chief online safety officer in March 2013.

• Raised awareness of safer online practices and educated consumers and families about

trustworthy online activities by leading or participating in online safety conferences, events, and

activities in Australia, Cameroon, Egypt, Ireland, the United Kingdom, and several cities across

the United States.

• Took steps to combat online bullying by conducting a worldwide study of negative online

behaviors among youth in 25 countries. The study, which revealed that 54 percent of youth are

worried they will be bullied online, was released in the summer of 2012, in tandem with new

anti-bullying educational materials for parents, educators, and young people.

• Promoted a safer online environment for children by participating in the European Union’s

CEO Coalition for Child Online Safety.

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Privacy

• Upheld our ongoing commitment to customer privacy by enabling Do Not Track in Internet

Explorer 10. Do Not Track gives customers more control over how their online activities are

recorded and used.

• Increased public awareness of potential online privacy risks and educated customers about how

they can use Microsoft technologies to help mitigate these risks through an international

education campaign. We also released the online tool Your Privacy Type to help customers

better understand their privacy type and align it with their online behavior.

Making a difference together

We know that together with our industry partners, we can provide specialized

technologies that address specific complex needs. Microsoft has a long history of working with

leading humanitarian response organizations and information and communications technology

(ICT) partners to develop joint solutions. Together, Microsoft and responders can increase the

ability for communities to prepare, respond, and recover.

Teaming with humanitarian organizations:

 

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SUPPORTING WOMEN’S EMPOWERMENT AND HEALTH

Women working in factories face a number of personal health risks and challenges,

which are often aggravated by gender inequities that impact their lives at home and in their

communities. Not being able to practice preventive general and reproductive health — whether

due to lack of awareness or reluctance to seek health services — negatively impacts the personal

well-being of women, as well as their ability to thrive as employees.

BSR’s HER project (Health Enables Returns) works to address this challenge through

factory-based women’s health education, using a peer education methodology that also drives

empowerment and leadership development. Across nine countries in Asia and Africa, HER

project motivates factory workers to become health ambassadors to their coworkers, their

families, and within their communities, training individuals on issues like safe sex and

HIV/AIDS, nutrition, cervical cancer and breast cancer, and general health and hygiene. The

HER project also works to demonstrate the business benefits of these program activities to

promote long-term factory investments in women’s health.

Microsoft and two key suppliers have participated in the HER project over the past three

years. The collaboration has helped reach more than 5,000 women working in southern China, as

well as sensitizing 6,000 male workers to these issues. Follow-up surveys indicate the program

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has raised awareness of important health issues, but more important, the program has promoted

adoption of healthier behaviors.

Microsoft is one of only two electronics companies participating in the HERproject (out

of 24 company partners). The company’s involvement is an important factor in driving increased

attention to and support for women’s health and well-being — and women’s empowerment more

broadly — within the electronics industry.

• Increased average worker satisfaction with work conditions from 60 percent in the FY11

survey to 76 percent in FY13. Worker satisfaction with workplace health and safety increased

from 62 to 77 percent.

• Improved satisfaction with working hours, with 60 percent of workers stating their working

hours are reasonable, and an average of 18 percent desiring to work even longer hours. Survey

results in FY13 showed marked improvement from FY11, when less than half of survey

participants stated their working hours were reasonable.

• Conducted in-depth environmental health and safety assessments at all Tier 1 and some high

risk Tier 2 suppliers, helping us proactively identify areas of high risk within our supplier

facilities, such as electroplating and soldering operations and the handling of hazardous

chemicals. We then helped our suppliers implement best practices to mitigate health and safety

risks by providing safety guidelines, and suggested metrics for monitoring performance and

training on recommended practices

Although good progress has been made, the survey results also identified areas for

improvement, including compensation; dining conditions related to food variety, taste, and price;

enhanced communications between factory management and workers; and more educational

opportunities for career development and personal improvement.

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RESPONSIBLE SOURCING

They ask their suppliers to uphold the high standards of citizenship to which we hold

ourselves. By setting clear expectations in our Supplier Code of Conduct, taking steps to ensure

those expectations are met, and sharing best practices with their suppliers, they’re working to

advance the health, safety, and well-being of our suppliers’ workers.

They have two internal teams devoted to administering our supply chain.

• Their Global Procurement Group oversees our non-hardware suppliers, which number more

than 60,000. This group runs such responsible sourcing initiatives as their supplier diversity

program, ethics training, and anti-corruption screening programs. In FY13, the group created a

new management function solely dedicated to responsible sourcing.

• Their Manufacturing, Supply Chain, and Information Services Group manage their hardware

and packaging supply chain. For the last eight years, this group has run a Social and

Environmental Accountability (SEA) program to ensure that their hardware and packaging

suppliers abide by our SCC and additional program- specific requirements. The SEA program

also helps hardware and packaging suppliers enhance their capabilities in areas such as waste

management and worker-management communications.

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CITIZENSHIP AWARDS

Honors and Accolades

Organizations around the world consistently recognize Microsoft as one of the leading global

corporate citizens.

Global

2014 CR’s 100 Best Corporate Citizens, Corporate Responsibility Magazine (Microsoft

named among top 5)

2014 Human Rights Campaign's (HRC) Corporate Equality Index – 100% rating for 9th

consecutive year

2013 World’s Best Multinational Workplaces by the Great Place to Work Institute

2013 World’s Most Ethical Companies, The Ethisphere Institute, New York

2013 NYSE Euronext Vigeo US 50 Index (50 most advanced U.S. companies on

Environmental, Social, and Governance performance)

The Reputation Institute, one of the world’s leading reputation management consultant firms,

released its 2012 CSR Rep Trak™ 100 report naming the companies with the best

reputations for corporate social responsibility around the world. Microsoft was ranked first in

the category of Governance and also received the top ranking overall

Ranked on CR Magazine’s list of 100 Best Corporate Citizens, selected from all companies

in the Russell 1000 Index.

Received a 7.5 out of 10 global market rating from Governance Metrics International for

practices and performance (as of June 19, 2013).

2011 Named on The World’s Most Ethical Companies list, The Ethisphere Institute, New

York

Africa

2011 Microsoft shared the prize for Best Corporate Social Responsibility with Olam/Nigeria

at the fourth annual African Business Awards. Microsoft won the award for their work in the

areas of Youth Employability

Australia

2012 Awarded 2012 EOWA Employer of Choice for Women Citation

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Austria

2012 Great Place to Work - Austria (Received special award for “Balance between Work &

Family”)

Brazil

2010 1st place in Software Category: “The most admirable companies of Brazil” - Carta

Capital Magazine

Canada

2012 #21 of the top 25 Best Places to Work for Women in Canada

China

March 2011 Microsoft China is one of 5 multinational companies selected for the “Most

Respected Company 10-year Achievement Award”, another influential award jointly

published by Economic Observer and Beijing University.

Greece

Parliament award for Greek 2008 Imagine winner; 'Excellence in International Student

Competition' awards

Gulf - Dubai

2010 Microsoft Gulf received the Arab Corporate Social Responsibility project of the Year

from the Union of Arab ICT Association (IJMA3) in recognition of its commitment to

empowering women through technology across the Mena region.

Hong Kong

2011 MS Hong Kong received the "Class of Good" Wastewi$e Label

India

2012 Microsoft India received the Environment Management Award at The Green IT

Initiative and IT Excellence Awards

United States

2012 Ranked 8th in "Top 50 Employer" in Woman Engineer Magazine

2012 Ranked 7th in 22nd Annual “Top 50 Employers” in Minority Engineer Magazine. And

many more………

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CONCLUSION

In conclusion, Microsoft will go down in history as one of the most innovative

companies that have changed the way people go about their daily lives. Microsoft has come a

long way from the days of settling lawsuits with numerous companies to being the powerful

software giant in the world today. With technology comes innovation, and Microsoft has proven

that it can be technological innovative with all of the great products that we have seen from them

over the years.

Their citizenship mission is to globally serve the needs of communities and fulfill our

responsibilities to the public. At Microsoft, they are committed to applying our technology,

ingenuity, and collaborative spirit to help solve critical social and environmental challenges and

create fulfilling opportunities for people around the world. In FY13, they made substantial

strides in meeting their citizenship responsibilities and goals, in partnership with their

employees, suppliers, and other stakeholder groups.

Given the company’s strategies, core competencies, dynamics, and innovative

breakthroughs, it is no wonder why Microsoft has lasted this long, and will be around for many

more years to come.

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BIBLIOGRAPHY

M. Com Part 1 Strategic Management by Manan Prakashan Publications.

http://www.microsoft.com/en-us/news/press/2014/feb14/02-04newspr.aspx

http://givingbetter.org

http://greengopost.com

http://corporatewatch.org

http://samhita.org/developing-csr-strategy-and-implementing-programs/

http://www.microsoft.com/en-us/student/deals.aspx#fbid=duH5pY-FNc2

http://www.microsoftstore.com/store/msin/en_GB/home

http://www.csrwire.com/members/12868-Microsoft-Corporation

http://projectcsr.wordpress.com/2011/03/23/microsofts-corporate-citizenship/

http://causecapitalism.com/tag/corporate-social-responsibility/

"It takes more than great products to make a great company."

– Bill Gates

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