Empowering every person and every organization to achieve more requires careful attention to the impact of our business practices, policies, and community investments.
We see the big picture
The Microsoft Technology and Corporate Responsibility (TCR) team, in collaboration with leaders across business and operations, drives companywide approaches to corporate social responsibility issues. The head of TCR reports directly to Microsoft President and Chief Legal Officer, Brad Smith, who sits on our Senior Leadership Team and reports directly to CEO, Satya Nadella. We work together to earn the trust and confidence of the public, our customers, partners, employees, and shareholders.
The charter for the Regulatory and Public Policy Committee of our Board of Directors includes the responsibility to "review and provide guidance to the board and management about the company's policies and programs that relate to corporate social responsibility, including accessibility, environmental sustainability, ethical business practices, human rights, philanthropy, privacy and cybersecurity, and responsible sourcing.
At Microsoft, our focus on corporate social responsibility fosters sustained long term business success. Our corporate governance framework, policies, and practices are described in detail in our annual proxy statement and the corporate governance section of our Investor Relations website.
Details about our Ethics and Compliance policies and programs include our Standards of Business Conduct, which applies to Microsoft employees, executive officers, our Board of Directors, and Microsoft subsidiaries and controlled affiliates (where Microsoft directly or indirectly owns more than 50 percent of the voting control). Channels are provided to ensure that concerns can be raised and subsequently addressed. All Microsoft employees must complete an annual Standards of Business Conduct training course, available in 18 languages. In FY18, as in previous years, course completion was more than 99 percent. In addition, mandatory trainings address the compliance risks of specific roles and business functions, while a variety of additional guidance options ensure awareness of our policies and our expectations for ethical behavior.
Working together with stakeholders
We know that the decisions we make affect our employees, customers, partners, shareholders, suppliers, and communities and we take their voices into account. Microsoft receives input from millions of people each year—from individual customers to policymakers and global human rights specialists. We bring outside perspectives into the company and inform our business decisions through a variety of feedback channels. We go beyond formal channels, proactively engaging with key stakeholders, advocacy groups, industry experts, CSR rating agencies, CSR-focused investors, and many others. We also share our learnings and practices thereby generating industry dialogue, informing public debate, and advancing greater progress.
Aligning our values
Microsoft works to align our CSR commitments and CSR reporting to global standards. We base our CSR reporting on the Global Reporting Initiative (GRI) Sustainability Reporting Standards. In 2006, we began endorsing the United Nations Global Compact and we file an annual Communication on Progress implementing the 10 UNGC principles. In addition, we were among the first companies to align our human rights work with the UN Guiding Principles on Business and Human Rights and to adopt the UN Guiding Principles Reporting Framework. We’re actively engaged in supporting the UN Sustainable Development Goals and publicly report how Microsoft contributes to the global effort to achieve the SDGs.
Driving positive business and societal impact
We apply the Global Reporting Initiative (GRI) Sustainability Reporting Standards to our CSR materiality assessment to define our most significant CSR issues. Using this approach, we’ve identified the top issues. Our CSR materiality assessment reflects input gathered from our stakeholder engagement processes, consultation with Business for Social Responsibility, other external experts, and consideration of the impact of our core businesses.
Based on this analysis, the top issues include:
- Applying technology for environmental and social good
- Climate change and energy
- Data privacy and security
- Empowering communities
- Ethical business practices
- Human capital
- Human rights
- Responsible sourcing and device lifecycle impacts