Texas Instruments

2012 Corporate Citizenship Report

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Minority/women business development

Policy statement | Management commitment | Doing business with TI

Minority- and women-owned business enterprises (MWBEs) have delivered innovative products and services to TI for more than 20 years. We benefit by receiving creative, diverse and cost-effective solutions to our business problems. Just as importantly, we are able to fuel local business development, contribute to economic growth, and create jobs – ultimately enhancing the communities in which we work.

Our objective is to provide procurement opportunities to certified MWBEs so that they can successfully compete for our business. A certified MWBE has been verified by a third party that the business is majority-owned, by a U.S. ethnic minority or a woman. Requiring certification gives our company more confidence and accuracy in our annual spending totals with MWBEs while suppliers benefit from their relationships with certification agencies.

Although we do not have supplier diversity initiatives tailored to other specific groups (such as veterans or gay and lesbian professionals), our sourcing strategy is completely inclusive. It encompasses all qualified professionals and companies that have a relevant product or service to offer TI.

Currently, our MWBE development efforts are primarily focused in North Texas, where our headquarters and major manufacturing facilities are located. However, we work to source diverse suppliers at other U.S. and global business sites where possible.

Policy statement

Texas Instruments, in keeping with good business practices and the responsibilities of a good corporate citizen, is committed to providing procurement opportunities to certified minority- and women-owned business enterprises (MWBEs).

Our objective is to use an inclusive sourcing model that seeks out and enables certified MWBEs to qualify and successfully compete for our business. When these opportunities do not exist, we encourage our nondiverse supply base (referenced as prime suppliers) to build inclusive supply chains.

We began requiring the certification of MWBEs seeking business opportunities with our company on Jan. 1, 2008. A certified MWBE means that a third-party agency verified that it is at least 51 percent owned, controlled and independently operated by a U.S. citizen who is an ethnic minority or woman.

Prime suppliers participating in TI's sub-tier initiative are required to report spending with certified MWBEs quarterly. Procurement managers work with prime suppliers to determine feasible MWBE spend goals and monitor progress toward those goals. This initiative serves to enhance our efforts to increase meaningful opportunities for MWBEs to participate in our supply chain.

Management commitment

"This [minority/women business development] is about business. This is about how to best serve our customers and meet shareholder expectations. This is about being a leader, be it in our industry, in the businesses that we operate, or in the community. This is not just a feel-good or goodwill program. This is about competing."
– Rich Templeton, chairman, president and chief executive officer

"The community and the supply base within TI are critical to business success. Having close connections to both allows companies like TI to grow and compete better. Minority/women business development is a priority to us for these reasons. Without it, we cannot be successful."
– Rob Simpson, vice president, Worldwide Procurement and Logistics

Doing business with TI

Suppliers wanting to do business with TI must be committed to excellence; they must be willing to grow with us and take appropriate risks. Additionally, to be competitive, they must know their competition and strive for continuous improvement.

To maintain a competitive advantage, we seek to find the best possible supplier for every need. Foremost, we seek suppliers that provide a value-added product or service. Suppliers must understand our business and our supply needs. We expect them to proactively solicit feedback and find ways to improve their business base, not only with our company but with other customers as well.

Our Supplier Development Initiative develops promising minority- and women-owned enterprises so they can do more business with TI and contribute meaningfully to the regional economy. Our procurement directors hand-pick vendors and match them with a procurement mentor and a business-unit mentor, who works with them for 12 months.

Together, they create plans to remove potential growth barriers - from not understanding our culture or expectations, to not knowing what other departments could benefit from particular services or products. Each quarter, participants in the initiative come together to hear about our business results and strategic direction, and to learn more about our procurement needs.

Members of the Minority/Women Business Development team can provide information on current business opportunities and connect potential suppliers with procurement professionals in their respective areas of interest. Our list of approved certification agencies are:

Dallas/Fort Worth Minority Supplier Development Council, Inc.
2710 North Stemmons Freeway, Suite 900
Dallas, TX 75207-2212
Fax 214-637-2241

National Minority Supplier Development Council, Inc. (NMSDC)
1040 Avenue of the Americas, Second Floor
New York, NY 10018
Fax 212-719-9611

North Central Texas Regional Certification Agency (NCTRA)
616 Six Flags Drive, Suite 416
Arlington, TX 76011
Fax 817-640-6315

U.S. Pan Asian American Chamber of Commerce - Southwest
202 E. Border Street, Suite 144
Arlington, TX 76010

Women's Business Council – Southwest (WBCS)
2201 N. Collins, Suite 158
Arlington, TX 76011
Fax 817-299-0949

Women's Business Enterprise National Council (WBENC)
1120 Connecticut Ave., NW, Suite 950
Washington, DC 20036
202-872-5515, ext. 20
Fax 202-872-5505

Requirements for doing business with TI
Minority- and women-owned business enterprises doing business with TI must be minority- or women-owned, and at least 51 percent owned, controlled and managed by U.S. citizens who are among one or more social and economic minority groups:

  1. Asian-Pacific Americans - U.S. citizens with origins from Japan, China, the Philippines, Vietnam, Lorea, Samoa, Guam, the U.S. Trust Territory of the Pacific Islands (Republic of Palau), the Northern Mariana Islands, Laos, Kampuchea (Cambodia), Taiwan, Burma, Thailand, Malaysia, Indonesia, Singapore, Brunei, Republic of the Marshall Islands or the Federated States of Micronesia.
  2. African-Americans - U.S. citizens.
  3. Historical black colleges and universities/minority institutes.
  4. Subcontinent Asians (Asian-Indian Americans) - U.S. citizens with origins from India, Pakistan, Bangladesh, Sri Lanka, Bhutan or Nepal.
  5. Combined ethnic group ownership - two or more minority groups.
  6. Hispanic-Americans - U.S. citizens with origins from South America, Central America, Mexico, Cuba, the Dominican Republic, Puerto Rico, Spain or Portugal.
  7. Native Americans - American Indians, Eskimos, Aleuts or native Hawaiians, including Indian tribes or native Hawaiian organizations.
  8. Women.

Confirming business certification status
MWBEs need to confirm their business certification status by sending copies of certifications and subsequent renewals to Texas Instruments, P.O. Box 650311, MS 3935, Dallas, TX 75265.

Questions concerning minority/women business development at TI should be directed to:
Texas Instruments
Minority/Women Business Development Office
P.O. Box 650311, MS 3935
Dallas, TX 75265