M 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 [email protected]. 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 indus- try 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 relation- ships 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 busi- ness, 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 commu- nication, 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.