partners in innovation 2006 CITIZENSHIP REPO R T about this report ScOPE CUrrENCY In the 2006 Microsoft Global Citizenship Report, All money figures in this report are in we discuss our key citizenship initiatives and U.S. dollars unless otherwise noted. activities worldwide, highlight some of our more significant accomplishments in fiscal year TERMINOLOGY 2006, and share our goals for fiscal year 2007. The terms “Global Citizenship” and “Corporate Citizenship,” which are used throughout REPORTING PERIOD this report, are interchangeable with This report focuses on Microsoft’s fiscal similar terms such as “Corporate Social year 2006 (which began July 1, 2005, Responsibility” and “Corporate Sustainability.” and ended June 30, 2006). All data is for that period unless otherwise noted. GLOBAL REPORTING INITIATIVE (GRI) The function of the GRI performance REPORT STRUCTURE indicators is to make it easier to compare This report is organized to reflect the organizational reports on the basis of economic, structure of our Global Citizenship Initiative environmental, and social impacts. In the and related activities, because we want our online portion of this report, we have included stakeholders — employees, customers, partners, references to applicable GRI indicators to assist shareholders, and others—to be able to stakeholders in their review and assessment compare our program goals and objectives of our Global Citizenship Initiative. with our results. The report is a combination of this print volume, which highlights and More information provides an overview of some key issues, and about the GRI performance indicators is a more detailed online publication that we will available at www.globalreporting.org. update annually. In addition, both the print and online components of the report provide key links to more detailed information on Microsoft.com, Microsoft’s corporate Web site. table of contents Executive Welcome .................................................. 2 Global Citizenship at Microsoft ................................ 3 Security and Internet Safety ...................................... 9 Knowledge Economy ............................................... 19 Responsible Business Practices ................................ 41 Our Company ......................................................... 54 Looking Ahead ....................................................... 56 Awards .................................................................... 57 “We know that the most significant problems facing our planet cannot be solved without the close cooperation of the private sector. Microsoft is not only a leader in responsible business practices, but also works with us to ensure that other businesses will rise to a similar standard.” — RICH LEIMSIDER, THE ASPEN INSTITUTE partners in innovation — Microsoft 2006 Global Citizenship Report executive welcome icrosoft’s mission is to enable people Our innovative technology and partnerships and industry on important technology issues and businesses throughout the world are also helping meet some of society’s toughest such as interoperability and security. to realize their full potential. One challenges: assisting law enforcement in the M We are constantly expanding our understanding way we fulfill our mission is by developing fight against online predators with the Child innovative software that transforms the Exploitation Tracking System; helping industry of what we must do to be a responsible leader way people work, learn, and communicate. and government to protect individual privacy and a good corporate citizen, and we are Another way is by using our resources and and fight spammers and identity thieves; and always seeking new ways to put partnerships expertise to help expand social and economic enabling people with disabilities to develop and innovation to work to really make a opportunities in communities around the world. job skills and live fuller lives through advanced difference. Our global citizenship efforts tools that make technologies more accessible. represent our mission and values in action, Our company’s greatest strengths are and they underscore how creativity and a our employees’ passion, creativity, and From the beginning, our community investments spirit of innovation can make a difference, not dedication, and our strong partnerships with have been inspired by our employees, and it’s only in the products we create, but in the way thousands of private, public, and community their passion and commitment that continue to we give back to communities worldwide. organizations. Our people and partnerships drive Microsoft’s efforts to help people in need. propel innovation at Microsoft, and they also This is especially true when disaster strikes. Our By working together with our many partners to guide our worldwide citizenship efforts. employees are often on the front lines, giving solve challenging problems, we are optimistic help wherever it’s needed and devising unique that Microsoft can continue to help make A few years ago, we set a goal that, by the end of ways to use technology to aid relief efforts. positive and lasting contributions to society. this decade, we would help bring the benefits of technology to one-quarter of a billion Another important measure of a company’s underserved people worldwide. We recognize commitment to corporate citizenship is the way it that we cannot do this alone. That’s why our two conducts business and works productively with Bill Gates Steven A. Ballmer flagship digital inclusion programs, Partners all its stakeholders. At Microsoft, everything Chairman Chief Executive Officer in Learning and Unlimited Potential, build on we do is guided by corporate values, codes the strength of partnerships with governments, of conduct, and company policies that, for schools, NGOs, and community organizations. example, ensure diversity and fair business Working together, we are bringing valuable practices among vendors and suppliers, provide technology skills to teachers, students, and for good stewardship of the environment in others — more than 135 million people so far, the way we create and package our products, putting us more than halfway to our goal. and support collaboration with governments global citizenship at microsoft Par TNE R S IN INNOV ATION partners in innovation — Microsoft 2006 Global Citizenship Report global citizenship at microsoft t Microsoft, we bring the same spirit they work to bring the benefits of technology THE GLObal CITIZENSHIP INITIATIVE of innovation to global citizenship to one-quarter of a billion underserved As a global company, we recognize that Athat we have always applied to our people globally by the end of this decade. every country and community where we do business. Our Global Citizenship Initiative business has its own set of social, economic, combines innovative technology, partnerships, and environmental challenges. With that and programs to create economic, educational, “Technology is an extremely powerful tool, a grand in mind, we strive to nurture a spirit of and social opportunities in local communities enabler of human imagination, innovation, creativity, innovation throughout our company that worldwide, and to help foster a more secure and productivity. Creating innovation with real provides our employees and partners with computing experience for people everywhere. impact, listening carefully to what our customers the tools — and inspiration — to meet those want, and creating amazing products that are challenges and turn them into opportunities. Our mission is to enable people and businesses going to benefit as many other people on the planet throughout the world to realize their full The importance and integral nature of global as possible — that’s really the reason Microsoft potential. For more than 30 years, we have citizenship at Microsoft were underscored exists. Innovation is the lifeblood of our business.” built our company on that principle, providing by Kevin Turner, Microsoft Chief Operating innovative software and services that help — STEVE BallMER, CEO MICROSOFT Officer, at an internal meeting with employees: people do more with technology, and creating “Good citizenship is just good business. It’s innovative partnerships that extend those the right thing to do. It’s who we are as a We are proud of our achievements as an benefits to millions of people we never company. It’s our commitment to communities industry leader, a global citizen, and an could have reached by working alone. around the world. It’s really that simple.” active partner to thousands of governments, Innovation is an integral part of our business. It businesses, and community organizations Although our Citizenship programs are characterizes our technology platform, which around the world — but our work is just diverse and tailored to the specific needs of the enhances personal productivity and business beginning. Our success in business has given people and communities they serve, they are performance while supporting accessibility that us the opportunity, and the responsibility, all organized around one of the three central makes it easier for people with all abilities to to use our resources and influence to help themes of our Global Citizenship Initiative: see, hear, and use computers. Innovation also change the world, to make it a better and more defines our partnerships. These partnerships rewarding place for people everywhere. strengthen communities worldwide by We look forward to the challenges — and