Citizenship Report Customers Partners + Developers Community Environment Employees

2003

Your potential. Our passion.™ Chairman / CEO Introduction p. 01 Company Overview p. 02

Part 1: Partnering with Customers p. 06

Part 2: Responsible Leadership p. 14

Part 3: Strengthening Communities p. 20

Part 4: Managing Environmental Impact p. 26

Part 5: Employees p. 30

Additional copies of this report can be ordered by sending e-mail to csr@microsoft.com. An online version is also available for download at www.microsoft.com/mscorp/citizenship. Chairman/CEO Introduction Microsoft Citizenship Report Page 01

We see this report as an opportunity to share how we view our roles and responsibilities as a global industry leader and corporate citizen, and to enhance our could not otherwise reap the benefits communication with our many stakeholders about the of technology. We also aim to do even more to deliver the best value for ways we fulfill them. In this overview, you may discover our customers and partners; to in- things you never knew about Microsoft—from how we crease our transparency as a company; to make the Internet a safe and trust- create innovative new technologies to how we empower worthy environment for everyone; to people who have disabilities, and from how we support limit our environmental impact and and advance open technology standards to how we conserve natural resources; and to provide an outstanding work environ- strengthen communities worldwide. ment for our employees.

We are unceasingly optimistic about Microsoft’s mission is to enable peo- and healthy by communicating the future of technology and the posi- ple and businesses throughout the openly about our business practices, tive things it can do for people world- world to realize their full potential. being transparent about our perform- wide. And while we’re proud of what It is grounded in six core values that ance, and remaining accountable we’ve accomplished, we’re even more are the foundation of our business, for our conduct. excited about the opportunities that and expresses our conviction that As Microsoft has grown as a company, lie ahead for our company and, in part- it takes more than great products to we have learned a lot about what nership with others, for the global make a great company. We believe it takes to build trust and keep it, to community. that our mission, although ambitious, earn respect and return it, and to is achievable. But we also know that create the kind of business environ- we can’t do it alone. ment that inspires successful partner- Our business is built on relationships and collaboration. We know ships—with our customers, partners, that our decisions have significant investors, and employees, and with ramifications for other companies, and the many countries and communities for people and communities world- around the world where we live and wide. We take that responsibility very work. These relationships are cru- seriously. cial to us, and they depend on the Global citizenship, like the rest of our choices we make and the actions we business, is a work in progress. This take every day—as a company and overview simply provides a snapshot as individuals. We are committed to of where we stand today, because keeping those relationships strong Steven A. Ballmer Bill Gates every program and activity highlighted Chief Executive Officer Chairman and Chief here is active and ongoing. We look Software Architect forward to continuing to make a lasting difference in the lives we touch and the communities where we do business, and to empowering more people who—because of age, geography, phys- ical disability, or economic barriers— Page 02 Microsoft Citizenship Report Company Overview

Company Overview

Microsoft is still a young, innovative company in an extremely dynamic industry. We’ve come a long way in a short time, but the global business environment in which we operate is evolving rapidly, too. Companies worldwide are being challenged in new ways—not only to offer better products and services, but also to enhance their corporate governance and provide greater transparency in how they conduct their business. At Microsoft, we have made changes in our organization that are designed to provide better customer service, create more opportunities for partners, and enhance our contributions as a responsible industry leader.

The Journey So Far on the first “personal computer,” the

MITS Altair 8800. Microsoft® BASIC, In 1975, most people had never heard and the many software programs of personal computers. You couldn’t that soon followed from our develop- even buy one—unless you wanted to ers and partners, helped spark a buy a kit and build it yourself. Collab- worldwide technology revolution that orating with co-workers meant poring has transformed the way people live, over photocopies or, worse, carbon work, learn, and are entertained. copies of documents. And for communication, we relied entirely on tele- Bill’s and Paul’s early vision of a com- phones or the mail. puter on every desk and in every home seemed like a fantasy to most Microsoft co-founders Bill Gates and people when the two friends founded Paul Allen saw the potential to turn what was then called Micro-Soft. a hobbyist’s toy into something more. Today, it’s almost a reality. More than They wrote a version of the BASIC 1 billion personal computers have software language that would work now been sold around the world, along with billions of other digital devices, all able to share information in amazing ways. Company Overview Microsoft Citizenship Report Page 03

What fueled this revolution was the on the environment, we recycle and n Self-critical, questioning, and belief that software—if made afford- reuse many materials to conserve committed to personal excellence able and accessible to more people— natural resources. We work hard to and self-improvement would remove barriers and transform maintain a positive work environment n Accountable for commitments, results, technology into an extraordinary for our employees and vendors. And, and quality to customers, share- tool that would empower millions of underlying it all, we create innovative holders, partners, and employees people around the world. software that helps change the world by empowering people to transform Our Mission Today, Microsoft employs more than their lives and open the door to their 54,000 people in over 80 countries. Our mission grew out of our core individual dreams. From programming languages and values and remains closely aligned operating systems to Internet services Our Core Values with them. It is to enable people and and games, we’ve created just about businesses throughout the world to Six core values guide Microsoft and every kind of computer program realize their full potential. serve as the foundation for everything imaginable. And we’ve never lost our we do. More than a corporate philos- Organized for Service passion for developing great software ophy, our values are as fundamental that enables people and businesses We have organized Microsoft around to our business as an operating system throughout the world to realize their seven core business groups, because is to a personal computer. They are: full potential. we believe this structure offers us n Integrity and honesty the best opportunity to serve our cus- As Microsoft has grown, so have our n tomers—and to provide our investors responsibilities as a global industry Passion for customers, partners, and partners with a clearer view of leader. Those responsibilities require and technology how we operate our business and gov- us not only to compete, but also n Open and respectful with others, ern the company. Those business to collaborate. We make investments and dedicated to making them better groups are: that help build the communities where n Willingness to take on big we do business, and create oppor- n Windows® Client, including the challenges and see them through tunities for people who are disadvan- Microsoft Windows XP, Windows taged. To ensure that the way we 2000, and Windows Embedded operate our business limits our impact operating systems Page 04 Microsoft Citizenship Report Company Overview

n Information Worker, including Just as we constantly update and prehensive education and compli- Microsoft Office, Microsoft Publisher, improve our products, we want to con- ance assurance program at Microsoft,

Microsoft Visio®, Microsoft Project, tinually evolve our company to ensure which addresses employment law, and other stand-alone desktop that we are always in the best position anti-discrimination statutes, privacy, applications to create innovative new technolo- civil rights, securities, international gies—and to provide outstanding serv- trade interactions, competition law, n Business Solutions, encompassing ice to our customers. and many other areas. Great Plains® and Navision® business

™ process applications, and bCentral Business Operations Employees who need guidance about business services a business practice or compliance Responsible corporate citizenship n Server Platforms, including the issue, or who wish to report a compli- is defined by good behavior, not good Microsoft Windows Server™ System ance concern, can call the Business intentions. At Microsoft, we’re proud integrated server software, software Conduct Line at (877) 320-6738 of the way we operate every aspect developer tools, and MSDN® or contact the director of compliance of our business, and maintaining that directly. Employees outside the n Mobile and Embedded Devices, high standard is the responsibility of United States can call the Business including the Pocket PC, the Mobile every Microsoft employee, contractor, Conduct Line collect by accessing an Explorer microbrowser, and and vendor. That’s why we have codes international operator and asking to the Smartphone software platform of conduct, environmental policies, place a collect call to (704) 540-0139. and other guidelines that spell out ex- n MSN®, including the MSN network, Partners, customers, or others out- actly what we expect from the people MSN Internet Access, MSN TV, side the company who have concerns who work at, and with, Microsoft. MSN Hotmail®, and other Web-based about compliance or Microsoft services Office of Legal Compliance business practices may report their concerns to the Office of Legal n Home & Entertainment, including We created the Office of Legal Com- Compliance by calling the Microsoft Xbox®, consumer hardware pliance at Microsoft as a resource Business Conduct Line, e-mailing and software, online games, and to enhance ethical business practices [email protected] or our TV platform and our ability to comply with a wide range of legal obligations, and to help [email protected], our employees and vendors under- or sending a confidential fax to stand their responsibilities under the the director of compliance at law. We have established a com- (425) 705-2985. For more information, please visit www.microsoft.com/ mscorp/legal/buscond/. Company Overview Microsoft Citizenship Report Page 05

Codes of Conduct are uniquely empowered to ensure ethnic diversity, and our equal Microsoft’s Standards of Business that all stakeholders’ interests are opportunity employment policies. Conduct apply to all our employees, appropriately balanced, protected, Partners, customers, or others and set clear guidelines for them and preserved. The Finance Code of outside the company who have con- to follow when they are conducting Professional Conduct sets out prin- cerns about Microsoft’s procurement business on behalf of the company. ciples and rules regarding individual practices should contact the director Every employee receives training to and peer responsibilities, as well as of compliance. For information on acquaint them with these standards responsibilities to fellow employees, our procurement practices and poli- and the company’s high expectations. the public, and other stakeholders. cies, please visit www.microsoft.com/ If you have a concern regarding a mscorp/procurement/process/ We also have codes of professional questionable accounting or auditing contracting.asp. conduct that apply specifically to em- matter and wish to submit the con- ployees who are engaged in certain cern confidentially or anonymously, types of business activities. For exam- you may do so by sending an e-mail, ple, the Procurement Code of Profes- calling the Business Conduct Line, or sional Conduct applies to anyone at sending a letter or fax to the director Microsoft who is involved in procure- of compliance as outlined above. ment or supply-chain management activities, such as negotiating con- Vendor Code of Conduct tracts, managing vendor relationships, As part of our commitment to pro- and monitoring service delivery. vide a positive work environment at Microsoft, we require our vendors Another code of professional conduct and their representatives to adhere applies to employees who work in to the same professional standards Microsoft Finance and manage the of behavior that we expect from our company’s financial affairs worldwide. employees. The Microsoft Vendor Employees of our finance organization Code of Conduct covers everything hold an important and elevated role from harassment to the use of e-mail in corporate governance, because they and online resources, and makes it clear that we expect our vendors to share our support of cultural and Partnering with Our Customers, Investing in Their Future

At Microsoft, we’re motivated and inspired every Part 1 day by how our customers use our software—finding creative solutions to business problems, developing breakthrough ideas, and staying connected to the people and information that are most important to them. Partnering with Customers Microsoft Citizenship Report Page 07

“ Microsoft is 100 percent committed to delivering new opportunities for our partners and enabling them to realize

We are focused on delivering great their potential. Our $500 million investment in partner value to our customers and giving programs and services underscores our commitment to them an outstanding customer experience, based on exceptional service partner satisfaction, and our focus on delivering the stron- and state-of-the-art technical support. gest technology platform through Microsoft .NET and Our ability to achieve this depends on XML Web services.” how we interact and engage with our customers, how we team up with part- Steve Ballmer, CEO, Microsoft Corporation ners to deliver great solutions, and how well our business groups collab- to help employees access customer orate to provide software and solutions satisfaction data and see for them- that help our customers realize their selves what feedback our customers potential. have on our products, services, and business policies. The key is to continually strengthen our relationships with customers— The Microsoft Customer Satisfaction from individual home users to the Dashboard is unique in our industry largest multinational corporations— and an important breakthrough for and to ensure that their voices are our company, but it is only one part heard and heeded in every aspect of of our larger vision to bring the our business. voices of our customers directly into Microsoft. In all of our contacts with Listening to Our Customers customers—from sales and support Every year at Microsoft we conduct services to focus groups and usability a comprehensive survey called the studies—we strive to strengthen the Microsoft Worldwide Customer and connection between our customers Partner Satisfaction Study. Our and employees. Our goal is make sure most recent study resulted in more the feedback we hear from customers than 30,000 completed customer is factored into all of our products and partner interviews in 70 locations and programs, and into the business around the world. As part of our decisions we make every day. commitment to be a highly customer- focused company, we make this information available to Microsoft employees worldwide through the Microsoft Customer Satisfaction Dash- board—a simple but powerful tool Page 08 Microsoft Citizenship Report Partnering with Customers

Supporting Our Customers Our support Web sites receive more than 200 million customer visits Microsoft Product Support Services annually, and provide a rich set of self- (PSS) provides worldwide customer help tools and content tailored to service and technical support for specific customer segments and needs. Microsoft customers—from individual consumers to the largest multina- Customer Feedback tional corporations. Support offerings Another way we are supporting cus- include a vast array of self-help, assist- tomers is by using feedback to im- ed support, and managed support prove customer experiences with our services to meet our customers’ needs. new error reporting tools. This lets We deploy approximately 9,000 customers choose to send us an error support professionals around the report whenever anything goes wrong world as part of our ongoing effort to with a Microsoft application or oper- reach more customers and keep our ating system, which helps us gather support teams close to them. PSS pro- real-world data about the causes of vides continuous technical support customers’ problems. Error reporting and customer service for more than is now built into Office, Windows, 170 different products—24 hours and most of our other major products. a day, 365 days a year—and handles more than 6 million support cases One thing we’ve learned from these every year via telephone, Web, and error reports is that about 20 percent on-site contact. of software bugs cause 80 percent of all errors. Even more incredible, 1 percent of the bugs cause half of all errors. Knowing this allows us to prioritize debugging work on our software to achieve the biggest improvements for customers in the least time. Partnering with Customers Microsoft Citizenship Report Page 09

Error reports help identify bugs not or as common as the inevitable chang- “Microsoft Assistive Technology only in our own software, but also es in vision, hearing, and dexterity Vendor Program,” which includes an in Windows-based applications made that come with age, they can have pro- online catalog that makes it easy by independent hardware and soft- found effects on a person’s ability to for customers to locate and purchase ware vendors. About 450 companies live and work productively. Windows-compatible assistive tech- have accessed our shared database nology products. To access the Assis- At Microsoft, our dedication to acces- for error reports related to their prod- tive Technology Vendor Program sibility reaches back as far as 1988 and ucts, and are using that information online catalog, please visit the launch of Windows 2.0. It contin- to make dramatic improvements. www.microsoft.com/enable/at/ ues today with the unique accessibility We’ve also created software that en- search.asp. features built into Office XP and ables corporate customers to redirect Windows XP. Since our initial involve- We also support many nonprofit or- error reports to their own servers, ment with accessibility issues, we have ganizations that work to increase so that administrators can find and continued our dedication to improv- education, training, and employment resolve the problems that are having ing the accessibility of our products opportunities for people with disa- the greatest effect on their systems. and creating new and better technolo- bilities. For example, we teamed with Our Commitment to Accessibility gies that everyone can use. Many the American Association of People technology features that were original- with Disabilities (AAPD) to establish One example of Microsoft listening ly designed to assist people with dis- the Federal Internship Program. In and responding to customers is our abilities—such as adjustable font sizes 2003 and 2004, this program will pro- longstanding commitment to develop- and audible alerts—can help others vide paid, IT-focused summer intern- ing accessible technology that creates tailor their work environment to their ships at U.S. government agencies for new opportunities for people with particular preferences and needs. 25 college students with disabilities. disabilities. Microsoft is continually A $325,000 grant from Microsoft will exploring and evolving accessibility Our Accessible Technology Group provide each student with a stipend, solutions that are integrated with (ATG) has approximately 40 people free accessible housing and transpor- our products. working with product developers, tation, and any special worksite accom- assistive technology companies, and According to the United Nations, modations that may be necessary. disability advocates to help ensure 10 percent of the world’s population— that people with disabilities can use more than 600 million people—have software developed by Microsoft and some kind of disability. Whether those other companies. The overall mission disabilities are as serious as amputa- of ATG is to make accessibility an tion, blindness, deafness, or paralysis, integral part of all Microsoft platforms, products, programs, and services. In addition, ATG increases awareness of what is possible today with accessible technology. ATG also manages the Page 10 Microsoft Citizenship Report Partnering with Customers

“ In less than 10 years technology will virtually eliminate most limitations people with disabilities face in the workplace and the classroom.”

Steve Ballmer, CEO, Microsoft Corporation

Microsoft is also working on accessi- n The Disability Rights Advocates bility issues with the U.S. government “Eagle” Award, for spearheading and other technology industry lead- the “Able to Work” Program, which ers. For example, Section 508 of the endeavors to employ increasing Rehabilitation Act, which took effect numbers of people with disabilities in June 2001, requires all federal agen- The real value of accessibility is re- cies to ensure that any electronic or flected in the way thousands of people information technology they develop, with disabilities have used technology procure, maintain, or use is accessible to change their lives for the better— to people with disabilities. Microsoft is one of the clearest examples of how Case studies and other fully engaged in Section 508, working technology can empower people to information are available at: closely with federal IT managers and www.microsoft.com/enable realize their potential. For example: industry leaders to help government agencies comply with the new regu- n Glenn Higgins has been quadriplegic lations, and providing the tools other since he was 17, when he was injured companies need to develop accessible in a wrestling accident. Today, 37 technologies that meet the federal years later, he holds a Ph.D. in neuro- standards. psychology and serves as vice president and medical director for We have received numerous awards UnumProvident, a $9.6 billion provid- for the accessibility of Microsoft prod- er of disability insurance. Dr. Higgins ucts and our work on accessibility succeeds in his high-level job through issues, including: a combination of talent, hard work,

n The World Blind Union’s Louis Braille and technology. His tools include Gold Medal, for Microsoft Canada’s a personal computer equipped with contribution to helping develop a speech-recognition software and a digital library system for the Canadian puff-stick, which resembles a drinking National Institute for the Blind straw but operates like a mouse when he blows into it. n WE Magazine’s Golden Ladder Award, for hiring and accommodating people with disabilities, and for our continued commitment to creating accessible technologies

n The Ron Mace “Designing for the 21st Century” Award, for making Windows and our other software accessible to the broadest range of customers, including people with disabilities Partnering with Customers Microsoft Citizenship Report Page 11

n Sebastiaan Hermans is training to In 2002, we set out to build a Trust- be a judge in the Netherlands court worthy Computing environment for system. The intense six-year program our customers, to make computing as of study and supervised practice reliable as possible. To meet our goal requires an enormous amount of of creating products that combine reading, writing, and note-taking. the best of innovation and predictabil- Hermans, who was visually impaired ity, we are focusing on four specific at an early age, keeps up with the areas: security, privacy, reliability, and rigorous demands of his training by business integrity. This is a long-term using a screen reader that combines effort, but we have already made speech, Braille integrated magnifica- significant progress. Our continued identified during the Windows section, a variety of other assistive work on security serves as an example urity push were found during threat technologies, and compatible soft- of our commitment to this initiative. analysis. We have now carried out ware from Microsoft. major security pushes in all of our key Based on discussions with customers product groups. n Rick Burgos is a good listener— and our own internal reviews, it was even though he has an 80-percent clear that we needed to create a frame- In the past, a product feature was typi- hearing loss. As an advisory support work that would support the kind cally enabled by default if there was specialist in a global customer of innovation, state-of-the-art process- any possibility that a customer might support center for a major computer es, and cultural shifts necessary to want to use it. Today, the most secure manufacturer, listening is a crucial make a fundamental advance in the option is usually the product default part of his job. He facilitates this with security of our software products. In setting, which means that most fea- a range of Microsoft products, plus the past year we have created new tures are now turned off by default to a wireless microphone, amplifier, and product-design methodologies, coding help prevent them from being used headset. practices, test procedures, security- as a potential back door for attackers. incident handling, and product-sup- To help customers deploy and main- Trustworthy Computing port processes that meet the objectives tain our products securely, we have The Internet has become an increas- of this security framework. also updated and expanded our secu- ingly powerful tool for business and rity tools. In early 2002 we took the unprece- communication, but it has also created dented step of stopping the develop- new security risks that can threaten ment work of some 8,500 Windows the confidentiality, integrity, and avail- engineers while the company conduct- ability of data and systems. ed 10 weeks of intensive security As a leader in the computing industry, training, analyzed the Windows code Microsoft has a responsibility to help base, and instituted a threat-modeling its customers address these concerns. process that taught program managers, architects, and testers to think like software attackers. Half of all the bugs Page 12 Microsoft Citizenship Report Partnering with Customers

Microsoft and Public Policy

Some problems that affect our customers are simply too big or too complex for one company to solve alone. Because of Microsoft’s position as a global technology and business leader, we are increasingly involved in alliances with industry colleagues and government agencies that are attempt- Protecting Your Privacy the Safe Harbor principles published ing to find solutions to some of the by the U.S. Department of Commerce. most difficult challenges facing busi- At Microsoft, we are committed to nesses and consumers today. helping you protect your privacy and Microsoft adheres to two overarching personal information, and to develop- privacy principles: Identity Theft ing technologies that enhance the n Microsoft will not transfer your Identity theft occurs when criminals safety and security of your computing personal information to third parties illegally gain access to a consumer’s experience. In June 2003, Computer- without your consent. personal information, make unauthor- world ranked Microsoft as one of the ized purchases in their name, or n We believe that you should be able top 10 privacy leaders among Fortune divert funds from their bank accounts. to exercise control over how your 100 companies, which the magazine In addition to causing financial and personal information will be used. We defined as “companies that have taken emotional trauma, identity theft may also believe that you should be able the most steps indicating a long-term, have a chilling effect on electronic to access the personal information strategic commitment to data privacy.” commerce if consumers grow fearful you have provided, so that you can that their identities may be stolen dur- Microsoft offers a wide variety of prod- update, correct, or amend the data. ing online transactions. Microsoft is ucts, Web sites, and services. Many working with other industry leaders, of these have their own privacy state- Keeping Your Personal legislators, and law enforcement ments that describe exactly how Information Secure officials to prevent and prosecute they collect and use information. We Microsoft is committed to keeping identity theft. strongly encourage you to review the your personal information secure. specific privacy statements that apply We use a variety of advanced security to your interaction with our company. technologies and procedures to help protect your personal information As a sign of our commitment to help- from unauthorized access, use, or dis- ing protect consumer privacy, Micro- closure. For example, we store the soft is a participant in the Safe Harbor personal information you provide on Agreement between the United States computer servers located in controlled and the European Union, and follows facilities. When we transmit sensitive personal information (such as a credit card number) over the Internet, we shield it with advanced encryption, such as the Secure Sockets Layer (SSL) protocol. Partnering with Customers Microsoft Citizenship Report Page 13

“ Microsoft has a responsibility, as a corporate citizen, to participate in the global dialogue on public policy issues.”

Spam Pamela Passman, Deputy General Counsel, Corporate and Regulatory Affairs, Microsoft Corporation Unsolicited commercial e-mail, or spam, is a growing problem. Sever- Since its inception, the world’s infor- leader in developing new digital rights al billion junk e-mails—many of them mation technology sector has relied management (DRM) technologies deceptive or pornographic—are sent on strong intellectual property protec- that can be used to deliver digital con- over the Internet every day, frustrating tion as the basis for creating sustain- tent and safeguard it against unau- consumers and law enforcement offi- able and innovative businesses. The IT thorized use. Typically, DRM encrypts cials alike. Thanks to technology such industry’s reliance on such protection digital content and limits access to as MSN 8 from Microsoft, the spam is not unique. In fact, the industry people who have acquired a proper that lands in inboxes today is a frac- shares a lot in common with other re- license to play that content. In addition tion of all that is sent. At MSN, mes- search-intensive industries, such as to creating our own DRM system for sages are filtered twice, first by filters the consumer electronics, automotive, Windows Media® Player and integrat- on e-mail servers and then again as pharmaceutical, and biotechnology ing those features into Windows subscribers use MSN 8 software. The industries. The fact that the IT indus- Server 2003 and the new version of MSN 8 filter becomes more effective try creates digital goods, which are Office, Microsoft is working with other as it learns the characteristics of mail more susceptible to copying, makes industry leaders to promote a more that a subscriber designates as junk. intellectual property laws particularly secure online environment that will important in this sector. encourage content owners to make Intellectual Property more available and provide consum- Around the world, copyright and pat- International treaties and national ers with exciting new choices. ent laws play a central role in fostering laws generally provide a solid founda- a diversity of cultural resources, and tion for the protection of intellectual in promoting technological advances property. High levels of piracy contin- and economic growth. These laws are ue to exist in many areas, however, more important than ever in a global because those laws are not adequately economy. enforced. The software industry alone loses $11 billion annually to piracy. Microsoft works with industry and governments worldwide to promote understanding of the importance of intellectual property laws and their improved enforcement.

Digital Rights Management Consumers are eager to access entertainment products and other digital content over the Internet, but produc- ers of that content are understandably concerned about its susceptibility to piracy. Microsoft continues to be a Responsible Leadership

As a global industry leader, Microsoft recognizes its Part 2 responsibility to set and maintain exceptionally high standards of product quality and support, and to deliver excellent customer service. Our customers and partners expect this of us, and we demand it of ourselves. Responsible Leadership Microsoft Citizenship Report Page 15

“ At the end of the day, our job is not done unless we have provided great opportunities for others to build

We’re finding new and creative ways world-class software, and helped make them successful to support industry cooperation, in building it.” especially around technology stan- Eric Rudder, Senior Vice President, Servers and Tools, Microsoft Corporation dards like XML (eXtensible Markup Language), which has become the new lingua franca for how computers We’re doing more industry outreach, The success of Windows is due in talk to each other. And we’re collabo- forming more alliances, and work- no small part to the creativity and in- rating more closely than ever with ing more closely with governments. novation of developers who write others in our industry, including our Emerging problems like security and programs that run on the Windows competitors, to enhance those stan- identity theft are too big and complex platform. Our ability to attract devel- dards so that everyone can use them for either industry or government to opers can be attributed largely to to create innovative, easy-to-use soft- solve alone. We need more public/ our decision to make our application ware. For example, last year Microsoft private alliances to address these chal- programming interfaces (APIs) avail- and a broad coalition of other indus- lenges, which will help the technology able to all developers, even potential try leaders formed the Web Services industry to continue to drive global competitors. Our open-API model Interoperability (WS-I) Organization economic growth. allows developers to call features of to promote Web services interopera- the Windows operating system into It comes down to this: Microsoft is bility across a variety of platforms, their own programs, which elimi- totally committed to working with our operating systems, and programming nates the need to create those features partners and developers to provide languages. To learn more about WS-I, from scratch, saves time and money, innovative technologies that will con- please visit www.ws-i.org. and makes their applications run tinue to empower people worldwide efficiently. As part of our renewed commitment and transform the way we live, work, to our customers, partners, and devel- and learn. As a result of these APIs, plus the opers, we have built new leadership tools and support we provide, more Creating New Opportunity teams for each of our businesses and developers—approximately 7 million for Developers and Partners increased leadership accountability worldwide—write software for the throughout our company, while also Developers are the foundation of our Windows platform, which in turn expanding and nurturing our next business—our most critical audience makes it the most compelling plat- generation of leaders. Along with cre- and our greatest asset. form for users. Today, using XML and ating this new management structure Microsoft .NET technologies, we’re at Microsoft, we reaffirmed our core Microsoft has always had a healthy, making it just as easy for developers values and made living up to them a interdependent relationship with soft- to write rich, interconnected Web part of every employee’s performance ware developers. Our first products services as it is to write traditional ap- review. were PC programming languages, so plications and Web sites—a change we have deep roots in the developer that is creating exciting new opportu- community. From the beginning, the nities for developers. idea behind the Microsoft business model has been that we ensure our own success by attracting developers to our platform and doing whatever we can to help them succeed. Page 16 Microsoft Citizenship Report Responsible Leadership

Microsoft also has a longstanding, need to look at how our technology Microsoft and Innovation unwavering commitment to our part- can enable businesses to become We live in an age where changes ners. Our products and solutions more agile. How we enable business in computer technology are leading to have always been sold and deployed agility will vary dramatically from increasingly dramatic innovations through partner channels, and we one customer to another, and deter- in the way we use computers and how have never strayed from our promise mining individual business needs is technology enhances our daily lives. to enable our partners to develop, where our partners play a critical Breakthroughs in computing have led sell, and support great technology role. Microsoft can only succeed in this to exponential growth in processing solutions. if our partners are successful, too. power, graphics, storage, networking, Microsoft partners with roughly To ensure this, we must provide the and other areas, with capacity often 750,000 companies worldwide, and tools, training, and resources part- doubling or quadrupling in a few more than 350,000 of those are ners need, and keep communication months to a year. These technological outside the United States. This affil- flowing consistently in both direc- advances have made possible a pro- iation helps our partners increase tions. Microsoft is developing innova- liferation of new devices—digital cam- revenues, lower costs, bring new prod- tive new programs to help our part- eras, Tablet PCs, Pocket PCs, and ucts to market faster, and improve ners succeed, and we’re making major Smartphones—that offer new ways for their recognition in the marketplace end-to-end investments inside the us to stay connected. by linking their own products with company to create a framework that In 1991, Microsoft recognized the the Microsoft brand. According to In- will enable our partner ecosystem to approaching technology revolution ternational Data Corporation (IDC) remain strong and vibrant. and saw an opportunity to lead it. data and Microsoft revenue figures, for Microsoft made a strong commitment every $1 Microsoft earned in 2001, to basic computer science research our partners generated $8 in revenue. by establishing the first software- A strong partner model will be even company research lab, and the compa- more critical in the times ahead. To ny continues to invest heavily in realize new growth opportunities, we research. In fiscal year 2003, Microsoft invested $4.7 billion in research and development (R&D). Responsible Leadership Microsoft Citizenship Report Page 17

Today, Microsoft Research (MSR) Industry Leadership through Innovation is responsible for new technologies MSR is a world-class research organ- that have found their way into numer- ization dedicated to fostering software ous products, but its primary focus innovation, inventing the next gener- is on finding answers to some of com- ation of computing technologies, and puter science’s most vexing questions. finding answers to the greatest chal- How can computers be made to un- lenges in computing. At its research derstand the nuances and diversity of labs in Europe, Asia, and North America, human speech? What does it mean MSR employs 700 researchers in 55 to recognize a face, and how can a ma- distinct areas of computer science, from chine be trained to do it? What new artificial intelligence to data mining. tools can be created to revolutionize Thanks to MSR breakthroughs in areas the software development process? such as programming, multimedia, As the pace of technological change and database management, Microsoft accelerates, companies face a growing is viewed as a leader in the research dilemma. Product life cycles are community. Several Microsoft re- shrinking as never before—more than searchers are members of the National half the revenues of America’s lead- Academy of Engineering, some have ing technology companies now come received an Academy Award for tech- from products developed during the nical achievement, and in Britain one previous five years, up from about a of our researchers was honored with third in 1992. This creates enormous a knighthood. Other prestigious hon- pressure for rapid returns from ors received by our researchers include: product development, and can make n Turing Award of the Association long-term research seem secondary to for Computing Machinery research that will pay off in the next business quarter. n National Medal of Technology

n Kyoto Prize in Advanced Technology But if companies are to thrive beyond the next quarter and really help n Fields Medal of the International shape the future, they must constantly Mathematical Union replenish their long-term reserves of The quality of the work being done by intellectual capital. Research has never Microsoft researchers is evident from been more important. their presence at many leading research conferences. For example, MSR accounted for 13 percent of peer- reviewed papers presented at the CHI Page 18 Microsoft Citizenship Report Responsible Leadership

2001 Conference on Human n Smart Personal Objects Technology Factors in Computing Systems, and (SPOT)—Smart technology that 30 percent of papers at the 2001 makes everyday devices such as Programming Language Design and watches, key chains, and alarm clocks Implementation conference on more useful by enabling them to programming languages. Microsoft deliver a wide range of personalized researchers have also contributed information, such as news, traffic thousands of articles to prominent reports, stock quotes, weather infor- technical journals. mation, and instant messages

Making Dreams Real Microsoft Research University Relations At its heart, MSR has two goals: driving innovations that can change Microsoft Research University Rela- the industry in areas such as natural tions is committed to supporting all language research and programmer aspects of the worldwide university productivity, and transferring those computing environment. Its mission is innovations from the lab into the to build world-class relationships with hands of users. Today, MSR’s work key universities, government agencies, can be found in virtually every and industry partners that enhance Microsoft product. For example: the teaching and learning experience, inspire innovation, and establish n Tablet PC—Handwriting-recognition Microsoft as a leading technology part- technology that converts handwriting ner for higher education. to digital text, digital ink technology that enables users to write on the We take our responsibility to the in- Tablet as they would on paper, and ternational academic community very ClearType® font technology that seriously. We contribute more than makes it easier to read on-screen text $75 million a year in cash and soft-

n MSN 8—Spam control filters that ware to academic institutions around offer a vast improvement over pre- the world, and we’re making more vious versions and enable the software available for teaching and re- industry’s best tools to combat spam search. For example, last year we announced an academic version of n Windows XP—Advanced multi- Visual Studio® .NET to make it easy for media technologies that enable more university faculty and students to be- secure, reliable streaming transmis- gin using Microsoft .NET technologies sions and audio quality, improved search capabilities, and encryption and anti-piracy tools that make Windows XP the most secure Microsoft operating system to date Responsible Leadership Microsoft Citizenship Report Page 19

in the classroom. We also partner reached on specific issues and uni- We’re Just Getting Started globally with academic institutions on form technical specifications can be This first decade of the21 st century, curriculum development. established. The open standards a time Bill Gates has called the “Digital process is neutral concerning software Each year, we host faculty summits Decade,” holds immense promise. development, welcoming all and at Microsoft, bringing together favoring none in its quest for the best We believe that computers powered hundreds of faculty members from interoperability solutions. by advanced software will make all over the world. It’s a chance Internet-based computing and com- for us to hear what’s going on across Microsoft participates actively as munications easier, more personal- the academic research community, a member of numerous international ized, and more productive for to learn how we can help and parti- standards organizations, and frequent- individuals and businesses around the cipate, and to show educators and ly contributes directly to the develop- world. We envision smart software researchers what we’re working on. ment of individual standards. Among continuing to weave technology into the most familiar standards bodies Supporting Open Standards the fabric of our everyday lives—keep- with which we work are the Internet ing us connected to the people and As an industry leader, Microsoft Engineering Task Force (IETF), the information that are meaningful to us. is committed to working with other World Wide Web Consortium (W3C), And we know that we will continue companies and independent stand- and the European Telecommunica- to be motivated and inspired by how ards bodies to develop open tions Standards Institute (ETSI). innovative software empowers people technology standards that enable in- Microsoft has been instrumental in worldwide to change their lives. teroperability. The fundamental creating, supporting, and promoting purpose of open standards is to pro- Our dedication to constant innova- open standards such as XML, SOAP mote interoperability across diverse tion is reflected in our ongoing (Simple Object Access Protocol), and hardware and software products, commitment to research and develop- UDDI (Universal Description, Discov- and to spark competition and inno- ment. Over the past 10 years, we have ery, and Integration). Each of these vation among vendors who want invested more than $23 billion in plays a key role in lowering the cost to differentiate their implementations researching and developing innovative and complexity of sharing data over of the standards. solutions to the technology problems networks and across applications. of today and tomorrow—in solving Open standards are established Commercial software developers, who the hard problems our customers are through a consensus-based process. rely on the sale of software licenses asking us to solve. It’s our belief that The main function of an independent for most of their revenue, devote sub- the true measure of our success is not standards body is to provide the stantial resources to developing soft- in the power of our software, but in forum in which consensus can be ware that is standards-compliant and the potential it unleashes in the people interoperable. The reason is simple: who use it. the extent to which software inter- operates with various hardware devices and other software influences customer demand for that product. Strengthening Communities Worldwide

At Microsoft, we know that amazing things happen when Part 3 people have access to the right resources to help them pursue their dreams. We’ve seen it again and again as our company, our software, and our employees have made a lasting difference in hundreds of communities and thousands of lives around the world. Strengthening Communities Microsoft Citizenship Report Page 21

“ The Club Tech program with Microsoft is making possible the most significant innovations, improvements,

Microsoft is a neighbor in more than and programs in our history.”

80 countries and in nearly every Roxanne Spillett, President, Boys & Girls Clubs of America U.S. state and territory. Being good neighbors and contributing to the Microsoft Global communities where we live and work Community Affairs is a fundamental part of the Microsoft Mobile Lebanese Library culture. In fiscal year 2002 alone, In 1983, Microsoft established one Microsoft gave nearly $40 million in of the first corporate giving programs cash and $207 million in software in the high-tech industry. Today, we to more than 5,000 nonprofit organi- have been recognized as one of the top zations that work to improve lives, contributors in the technology sector, build technology skills, and strengthen and one of the five largest contributors communities worldwide. among all businesses in the United States. At Microsoft, we aim our giving Part of our ongoing commitment programs at the heart of serious to the many communities where we challenges. do business is to partner with non- Following the successful establishment profit organizations that work with n In the United States, we have worked of a Microsoft Electronic Library (MEL) underserved people and commu- in partnership with Boys & Girls Clubs in Jordan, Microsoft Lebanon went one nities—sharing resources, innovative of America to develop Club Tech. step further and created a mobile MEL, technology and ideas that can help Together we are bringing technology an electronic library in a bus. The mobile counter the world’s most serious access and skills to children at all MEL can be driven throughout rural Lebanon, bringing computer access and problems, awaken people to their 2,600 clubs in communities through- information to a broad group of people. own potential, and empower them to out the United States, and at U.S. gov- This new MEL not only provides technol- achieve it. ernment facilities in other countries. ogy access, it also serves as a mobile classroom and learning center, as well as n Along with contributions to many a way to promote computer awareness individual organizations, we pro- in remote communities. The bus targets vided the primary support to create particularly underserved communities within Lebanon, and focuses on providing NPower, a national U.S. network of access and skills training for those who community-based groups that may not have regular access to technology. works with nonprofits to develop affordable technology solutions. For instance, one NPower project uses the Internet to link a community’s resources for the deaf, so that each request can be quickly matched to an available interpreter. As a result, information once placed on index cards is now accessible to all staff at any time. Page 22 Microsoft Citizenship Report Strengthening Communities

“ Mercy Corps works in places that are often technologically primitive. Software from Microsoft provides Mercy Corps

with the critical building blocks from which field staff Our goal is to truly empower people can develop innovative technical solutions to local problems. and communities, by making sure they have the tools, skills, and resourc- That means we can help more people more effectively es to overcome not only today’s chal- and efficiently.” lenges, but also those that will arise in the future. Peter Dickinson, Director of Information Technology, Mercy Corps Microsoft Employee Giving

n Microsoft works closely with inter- In the United States, Microsoft matches national organizations such as each employee’s donation dollar-for- A Hand Up the World Food Programme, Save dollar up to $12,000 annually, which the Children, and Mercy Corps to gives them the opportunity to direct provide technology-based develop- corporate contributions to thousands A few years ago, Sheila Williams was rais- ment assistance through the HEART of nonprofit organizations. In fiscal ing three young sons as a single mother (Humanitarian Empowerment and trying to make ends meet by working year 2002, Microsoft employee dona- and Response through Technology) part-time in a low-wage customer service tions and matching corporate funds job. Determined to break out of poverty, program. More and more, global totaled more than $28.5 million in Sheila registered for classes at Metropolitan organizations rely on technology cash in the United States alone. Community College (MCC) in Omaha, to improve the effectiveness of Nebraska. their humanitarian efforts around At Microsoft, we’ve always believed At MCC, she heard about a program called the world. in sharing our success. Our giving Working Connections, an alliance between Microsoft and the American Association n eElder in Japan is a program that efforts—as a company and as individu- of Community Colleges that addresses the offers thousands of often isolated als—are part of how we help support acute shortage of information technology senior citizens an opportunity to and strengthen our communities (IT) workers by helping people from disad- every day. vantaged backgrounds and underserved use technology and learn IT skills, populations prepare for IT jobs. Sheila took making them part of the digital age. the training and landed a job as a customer service analyst for an Internet company n In the Czech Republic, Microsoft in Omaha, at a starting salary that doubled is supporting a program designed to her previous income. provide people with disabilities IT training that is tailored to their individual needs, helping them to secure jobs in the high-tech industry. Strengthening Communities Microsoft Citizenship Report Page 23

Unlimited Potential achieves its goal in three ways: First, we support existing learning Technology is a potent force that can centers—such as libraries, schools, empower millions of people to reach and community centers—where their goals and realize their dreams— people already gather to gain skills, but for many people around the world, share information, and use technol- the “Digital Divide” keeps that power ogy. Second, we offer those locations out of reach. In many developing ongoing access to a rich set of resourc- countries, for example, less than 1 per- es that can help them become sus- cent of the population has Internet ac- tainable technology-enabled centers cess. In some of the poorest countries, of lifelong learning and collaboration. the cost of establishing an Internet Finally, through a program of cash connection could feed a family for a awards and recognition, we support year. Access to technology is only part scalable technology solutions that pro- of the answer, however. It is equally vide social benefits in communities critical to provide IT skills training worldwide. and guidance to help people discover what technology can do for them, and By focusing our resources on Microsoft what they can do with technology. UP, we hope to empower many of the world’s disadvantaged people to In 2003, Microsoft refocused its help themselves, strengthen their giving initiatives to promote computer communities, and improve their local literacy and foster lifelong learning economies. among underserved young people and adults worldwide. Our goal with this program, called Unlimited Potential (UP), is to go beyond merely providing access to technology, by combining enhanced access with much-needed curriculum and the development of IT skills that people need to transform technology into powerful tools for change. UP Page 24 Microsoft Citizenship Report Strengthening Communities

Partners in Learning n Partners in Learning Fresh Start for Donated PCs—Computers that are By partnering with governments donated to schools often lack original around the world, Microsoft is offer- documentation for the installed oper- ing a spectrum of education resourc- ating system. To remove licensing es—tools, programs, and practices— barriers that prevent schools from to empower students and teachers to using donated computers, Fresh Start realize their full potential. The essen- will provide primary and secondary tial premise of this ambitious five-year schools with a licensed copy of undertaking is simple, yet compel- Windows 98 and/or Windows 2000 ling: education changes lives, families, for donated machines when original communities and, ultimately, nations. documentation is not available. Microsoft is focusing global resources—people, partnerships, services, phi- n Partners in Learning: School Agree- lanthropy, and products—to increase ment—Microsoft School Agreement access to technology and technology Subscription makes Microsoft’s core education. educational tools more affordable to primary and secondary schools in all The Partners in Learning initiative countries worldwide through deeply includes three distinct yet integrated discounted pricing. Schools with the core programs, each of which can be greatest economic needs can acquire implemented in the participating Windows XP Professional Upgrade countries based on economic and edu- and OfficeXP Professional at dramati- cational objectives as well as cultural cally lower pricing. preferences. The programs are: n Partners in Learning Grants— Learning grants provide cash investments over five years to help schools take advantage of their technology investments—by developing school leader and teacher skills, student cer- tification, courseware, content, and research. Funding will support the establishment of local Microsoft IT Academy Centers through alliances Strengthening Communities Microsoft Citizenship Report Page 25

with local community organizations, The MAR program donates software education institutions, and training licenses through nonprofit refur- providers. The Centers will train bishers, enabling schools and charities educators, build communities, and to take full advantage of personal deliver locally tailored curriculum computers they receive from donors. and certifications. In addition, learn- Before Microsoft established the ing grants will provide incentives program, many of those donated for teacher and student participation, machines lacked installed operating recognition programs for schools, systems. and digital literacy assessments to encourage and reward participation.

Microsoft Authorized Recycling

Through a program called Microsoft Authorized Recycling (MAR), we help facilitate the refurbishing and recycling of thousands of PCs every year so that they can be donated to K–12 schools and nonprofit organizations. U.S. corporations and the federal government retire more than 13 million personal computers annually— a number that is growing rapidly. Approximately 20 percent (or 2.5 million) of these machines are donated to schools and charity organizations. Managing Environmental Impact

Microsoft respects the environment and protects our natural Part 4 resources. We comply with all laws and regulations regarding the use and preservation of our land, air, and water. And we have specific policies and procedures that conserve environmental resources at our facilities and in our purchasing activities, supplier operations, and products. Managing Environmental Impact Microsoft Citizenship Report Page 27

When new construction threatened to encroach on an area of wetlands, Microsoft responded by enhancing the site Recycling and Conservation and making it publicly accessible as a habitat interpretive at Our Facilities center. After initial restoration, the company donated Microsoft has several programs in part of the wetlands to the city of Redmond as an interpre- place at our facilities that allow us tive park, which local schoolchildren now use as part of to significantly reduce waste and conserve resources. Examples include: their environmental curriculum. n Each day at our corporate campus in Redmond, Washington, we recycle n We work with a contractor to recycle an average of 24 tons of material: our old PCs, monitors, servers, and glass, plastic, aluminum, cardboard, other surplus technology from our paper, organic waste, wood pallets, office facilities. This ensures that our and copper wire cabling. To date, surplus equipment is recovered or paper and cardboard recycling at recycled at an environmentally com- Microsoft has saved more than pliant facility. Approximately 90,000 26,000 trees. technology assets are processed each year, representing 2,100 tons of n Recycling containers for paper, equipment sold or demanufactured aluminum cans, and polystyrene are that did not end up in landfills— conveniently located for employees enough to fill more than1,000 semi- throughout our facilities. As a result trailer trucks. of this and other programs, we’re able to recycle 36 percent of our solid n An advanced irrigation management waste. In fiscal year2001 , employees system at our corporate campus at our Seattle-area facilities alone automatically senses weather condi- reduced waste by more than 70 per- tions and replenishes the right cent, recycling and reusing more than amount of water, which saves approx- 7,060 tons of material that other- imately 11 million gallons of water wise would have ended up as landfill. annually. This conservation activity supports other uses for water resources in our area, such as water for salmon Microsoft respects the environmentin our local and rivers. protects our natural resources. We comply with all laws and regulations regarding the use and preservation of our land, air and water. And we have specific policies and procedures that conserve environmental resources at our facilities and in our purchasing activities, supplier operations, and products. Page 28 Microsoft Citizenship Report Managing Environmental Impact

n Microsoft has made energy conserva- Purchasing, Packaging, tion a priority, both in new construc- and Products tion and in renovations of existing At Microsoft, we follow strict policies buildings, investing in construction to ensure that we remain in full methods that provide long-term compliance with international environ- energy savings. Conservation meth- mental regulations and the environ- ods implemented recently during mental requirements of each country construction of buildings on our cor- where we do business. All Microsoft porate campus—from efficient light- divisions have specific responsibilities ing that consumes 40 percent less for compliance, as do our vendors. energy to adjustable-speed motors for our heating, ventilation, and air- We extend our environmental efforts conditioning systems—will result in by the use of recycled office products, electric energy savings of 2.5 million as well as recycled paper in Microsoft kWh each year. Over the past two brochures, software manuals, and years, we have reduced per-employee other publications. We also purchase energy consumption at our Seattle- and use many new products that area facilities by nearly 10 percent. contain recycled content. Our environmental principles are an important component of our buying decisions, and we believe the same is true for our customers.

Packaging for our hardware and software products is also designed to reduce environmental impact, including the elimination of plastic shrink-wrap Managing Environmental Impact Microsoft Citizenship Report Page 29

“ As a global corporate citizen, Microsoft recognizes its environmental responsibility. Through our business operations, products, and partnerships we are continuing to work to help promote long-term sustainability of the global environment.”

Joe Johnson, Environmental Regulatory Manager, Microsoft Corporation

from Microsoft packages and software manuals, promoting the use of com- pact discs (CDs) for computer programs, and using online paperless manuals. We also prohibit the use of old-growth trees in our packaging.

We design our products, both software and hardware, to comply with worldwide environmental regulations. For example, we use no heavy metals, such as lead and cadmium, in the packaging or plastics of any Microsoft products. Our hardware products are designed with consideration of the environment in mind, and we restrict the use of toxic substances in manufacturing operations. Microsoft contracts out for manufacturing throughout the world, and we encourage our vendors to follow good environmental practices. Employees

We employ more than 54,000 people in over 80 coun- Part 5 tries. Our employees come from diverse backgrounds, but they share a common passion for exploring new ideas, overcoming challenges, and creating innovative software that can empower people to change their lives. Employees Microsoft Citizenship Report Page 31

Our mission—to enable people and businesses throughout the world to realize their full potential—begins by enabling our own employees to realize their potential. Our ability to achieve our corporate mission depends on the individual decisions and actions of every Microsoft employee around the world, each of whom shares Microsoft’s core values Microsoft Employee and lives them every day. Development and Support Equal Employment, Employment at Microsoft We strive to provide our employees Anti-harassment, and with the skills, tools, and experiences Anti-discrimination Policies that will enable them to unleash Current Employment Headcount (as of July 1, 2003): 54,923 Microsoft is committed to a policy of their talents and capabilities. Profes- providing equal employment oppor- sional development is an ongoing part Organization: tunity to all qualified employees and of every employee’s experience at Business Group 23,182 applicants. This commitment is reflect- Microsoft. It includes mentoring, train- Sales & Marketing Support Group 25,038 ed in all aspects of our daily opera- ing, online tools and resources, and tions. We do not discriminate on the special programs to develop managers Operations Group 6,703 basis of race, color, sex, sexual orienta- and our next generation of leaders. tion, religion, national origin, marital We also recognize the importance n status, age, disability, or veteran status Diversity Recruitment—We are com- of personal and family support in our in any personnel practice, including mitted to creating a workforce that employees’ lives, and we offer oppor- recruitment, hiring, training, compen- reflects the global marketplace. In the tunities for employees and their sation, promotion, and discipline. past six years, we have spent more families to socialize and enjoy a wide than $125 million to reach this goal. We prohibit harassment, discrimina- variety of community events. We Our recruiting efforts, in partnership tion, retaliation, or intimidation on the designed our benefits plan to keep with 33 historically diverse colleges, basis of race, color, sex, sexual orienta- our employees healthy, happy, and encourage underrepresented minori- tion, religion, national origin, marital moving ahead in their careers. We ties and women to become the next status, age, disability, or veteran status provide a range of healthcare options, generation of technology leaders. toward another employee or any other personal and professional resources, Since 1997, Microsoft has given cash person (including an agency tempo- and financial incentives. and software in support of organ- rary, independent contractor, vendor, izations such as the United Negro Our Commitment to Diversity or supplier). College Fund, Native American Microsoft has established a number Colleges and Universities, Hispanic of initiatives to ensure that diversity is Scholarship Fund, American an integral and valued part of our Association of People with Disabilities, company at every level, and to dem- onstrate this commitment locally, nationally, and globally. For example: Page 32 Microsoft Citizenship Report Employees

“ Diversity is important not only because it enriches the workplace and enhances the lives of our employees, but also because it enables Microsoft to better serve the needs of customers and communities.”

Steve Ballmer, CEO, Microsoft Corporation

and others that serve diverse popu- or use technology to increase employ- lations. We awarded scholarships ment opportunities for people with totaling $540,000 to students tradi- disabilities. tionally underrepresented in comput- n Diversity Education Programs— er science and related disciplines in Microsoft’s diversity education pro- the 2002–2003 academic year, and grams provide our workforce with supported more than 19 premier the tools and resources they need to recruitment events geared for candi- ensure we take advantage of our dates who were African American, employees’ differing backgrounds, Hispanic, Native American, women, or work styles, and viewpoints. people with disabilities. n Minority- and Women-Owned n Diversity Outreach—Over the past Businesses—Microsoft sponsors a five years our efforts, in partnership variety of programs designed to help with universities such as Xavier, minority- and women-owned busi- Howard, Texas at El Paso, the nesses succeed. Since its inception, University of Puerto Rico, and other the national award-winning Build education-oriented organizations, Your Business Tour has provided, at have ensured that women, students no cost, educational technology with disabilities, and students of color seminars to the owners of more than have access to experiences and 10,000 minority- and women-owned opportunities that yield personal and small businesses, while our supplier professional growth. Through an diversity effort is designed to encour- investment of more than $3.5 million, age greater minority participation we have participated in conferences in the IT industry, through both and career fairs, facilitated workshops, increased procurement and direct and supported the annual events investment. of our partner minority and women’s professional organizations. At Microsoft, our commitment to diversity goes beyond recruiting and n Support for Disability—In addition employing a diverse workforce. It’s to our recruiting efforts, Microsoft a vital component of our ongoing has contributed $5.5 million to organ- mission: to enable people and izations that support people with businesses throughout the world to disabilities. We wholeheartedly sup- realize their full potential. port the spirit of the Americans with Disabilities Act, providing grants to programs that address the technology needs of the disability community, Microsoft Corporation Microsoft Europe, One Microsoft Way Middle East & Africa Redmond, WA 98052-6399 Coeur Défense, Tour B - 37e étage USA 100, Esplanade du Général de Gaulle Phone: 425.882.8080 92932 Paris La Defense Cedex www.microsoft.com France Phone: 33.01.70.99.10.67 Microsoft Asia Pacific www.microsoft.com/emea 5 Temasek Boulevard #09-03 Suntec City Tower 5 Microsoft Canada Singapore 038985 1950 Meadowvale Boulevard Phone: 65.6337.6088 Mississauga, Ontario www.microsoft.com/asia L5N 8L9 Canada Microsoft Greater China Phone: 905.568.0434 19/F, Millennium Tower www.microsoft.com/canada 38 Xiaoyun Road Chaoyang Beijing 100027 P.R. China Phone: 86.10.8453.8989

Microsoft Japan Odakyu Southern Tower 2-2-1 Yoyogi Shibuya-ku, Tokyo 151-8583 Japan Phone: 81.3.5454.8000 www.microsoft.com/japan

Microsoft Latin America 899 West Cypress Creek Road Suite 400 Fort Lauderdale, FL 33309 USA Phone: 954.489.4800 www.microsoft.com/latam

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