Results | Looking ahead
It is vital that TI engages with company stakeholders to understand their perceptions and concerns of the company and in turn better understand our impacts and opportunities. This feedback helps inform our organizational initiatives, long-term sustainability and ongoing efforts to increase shareholder value.
In 2013, we continued informal efforts to engage internal and external stakeholders through enhanced communications and surveys to better understand their questions and concerns, and to share our performance results. We learned that the most prevalent social and environmental questions and concerns during the year were in regards to:
We also formally reached out to key stakeholder groups, through a third party, to conduct a Relevant Opportunities Assessment. Results will help us prioritize critical environmental, social and governance issues. The assessment is expected to conclude in 2014.
In 2013, TI engaged with its stakeholders in a variety of ways. Here are some of our top engagement initiatives with internal and external groups, including employees, shareholders, customers, suppliers, educators, trade associations and policymakers, as well as communities.
- Launched a new employee portal to provide one location for employees to access internal tools and resources. It has increased the usage of employee tools and improved collaboration.
- We also:
- Reintroduced our Innovators in Action awards program to recognize employees who have developed innovative products or processes that differentiate TI and add value for our customers.
- Created an innovation center at our headquarters to showcase employees' technological advancements. It contains digital screens in kiosks that display messages and videos about various product innovations.
- Launched our first DIY with TI event, which is a signature program highlighting TIers who create home inventions using TI parts and continued TI in It, which profiles consumer technologies enabled by our products.
- Refined our blogging strategy to develop more content on TI's strategic areas of focus, create a brand persona, and establish voice guidelines.
- Continued educating employees about community needs globally so they could give their time, expertise or money to support worthy causes. For example, we briefed more than 700 Silicon Valley, California, employees about poverty and other community needs through a United Way campaign education program.
- Created 107 new user groups on our intranet to drive employee collaboration across TI.
- Introduced investors to TI's capital-management strategy, which codified some past practices and reaffirmed the company's belief that these practices are sustainable well into the future.
- Educated shareholders and prospective investors about how TI is among a unique class of companies that can grow, generate cash and return it to shareholders. For example, we stated in early 2013 that we expected to consistently convert 20 to 25 percent of our revenue into free cash flow and return all of it, minus debt repayment, to investors in the form of dividends and stock repurchases. (We updated this range to 20 to 30 percent in early 2014.)
- Engaged with shareholders and prospective investors about continuing our strategic journey as an analog and embedded processing company, and the benefits to be gained as TI realizes differentiated positions and delivers sustainable revenue growth and returns.
- Introduced a new market segmentation that was more descriptive of the markets TI sells into, enhancing investors' understanding of our businesses.
- Continued to use the TI Customer Expert Advisory Panel for both product-specific, technical support and customer-satisfaction research projects. In 2013, we recruited customers across regions, application areas and engineer types to replace inactive panel members and ensure adequate representation in all segments. At year-end, the panel had more than 5,000 active members in 92 countries who spoke 14 languages, a participation rate that is setting new standards for panels in the business-to-business sector.
- Delivered in-person and online training to more than 900,000 customers in Asia alone.
- Helped customers improve their product selection and design-in process efficiency on TI.com by providing a personalized activity bar that tracks their most recent activities on the site. Customers used this activity bar over 700,000 times in 2013 to quickly return to the products and tools that they viewed on previous visits.
- Connected more design engineers with TI technical support through the Engineer-to-Engineer (E2E) Community and DEYISupport China Community.
- Leveraged social media to increase customer engagement. The number of registered users to these communities grew by 40 percent during 2013.
- Expanded the E2E Community's search and navigation capability to make it easier for users to quickly find answers to their questions, engage with other engineers, and link to technical content such as application notes, user guides and articles.
- Launched three new blogs – On Board with Bonnie, Fully Charged and TI Precision Designs – and increased overall blog views by more than 200 percent.
- Helped more than 10,000 customers per month through TI's global Customer Support Centers by responding to phone, email and instant-message inquiries about TI products.
- Posted TI's General Quality Guidelines online for easy access.
- Hosted two Electronics Industry Citizenship Coalition (EICC)-validated audits, which assessed conformance to the EICC Code of Conduct, as well as compliance with local laws and regulations. The audits allow us to provide immediate insight on our factory performance to customers who are members of (and request the audits through) the EICC. The audits found no major nonconformances.
- Informed suppliers about changes related to TI's use of the EICC Code of Conduct as a source of guidance and the creation of TI's new Supplier Code of Conduct.
- Educated select suppliers on how to use an EICC-developed tool to identify if the tin, tungsten, tantalum and gold that they process originated from conflict-free sources.
- Continued hosting TI Supplier Days to reinforce company standards and explain to prospective vendors how to do business with us.
- Partnered with chambers of commerce in Dallas, Texas, to promote the use of minority- and women-owned business enterprises.
- Collaborated with about 2,000 science, technology, engineering and math (STEM) leaders and visionaries in business, education and government to share ideas at the U.S. News STEM Solutions National Leadership Conference.
- Continued to leverage Education Technology spokeswoman and actress Mayim Bialik to promote the importance of STEM education through media outreach and school visits.
- Collaborated with education experts, four-year institutions and consortiums to increase the graduation rate of engineers.
- Launched TIcommoncore.com to provide educators with free resources, classroom-ready activities for TI-Nspire CX and TI-84 Plus calculators, and professional development programs to ensure the successful implementation of Common Core state standards for math.
- Engaged with leaders and engineering chapters at various universities to collaborate on programming and events, and to advertise job opportunities for new college graduates.
Trade associations and policymakers
- Continued working with the Semiconductor Industry Association, Informational Technology Industry Council and others to advance a number of policy priorities.
- Met with U.S. policymakers and encouraged support for:
- Comprehensive immigration reform that includes provisions for high-skilled professionals important to TI.
- A stable supply of helium for use in semiconductor manufacturing.
- Sound export control regulations affecting semiconductors.
- Accelerated deployment of energy-efficient and clean energy technologies.
- Increased awareness about the importance of electronics in automotive safety innovation.
- Conducted a 360-degree assessment in 2012 with our nonprofit partners and subsequently implemented improvements such as common guidelines and grant processes across giving sources.
- Continued to partner with neighbors and civic organizations to strengthen the communities where our employees live and work.
- Surveyed about 1,200 community partners and employees to assess their awareness and perceptions of TI's Corporate Citizenship programs, and readership of the Citizenship Report and Citizenship News e-newsletters. We plan to refine these tools based on their feedback.
Our engagement plans in 2014 are to:
- Launch a new TI Corporate Citizenship website and blog to provide timely information and make it easier to engage with stakeholders about TI's social and environmental policies, practices and programs. The site will also provide additional information about TI's commitment to education and our global communities.
- Finalize our first Relevant Opportunities Assessment; a formal stakeholder engagement project, initiated in late 2013 to help us better understand social, environmental and governance issues of greatest importance to the communities we impact. We expect to use the assessment results to focus our reporting efforts, prioritize issues to which we should allocate time and resources, and drive continued performance improvement.
- Launch a new official corporate blog, Think.Innovate, which will contain strategic and timely content about business issues relevant to TI and the semiconductor industry.
- Survey employees about their community interests and barriers to volunteering, and assess the ease of use of internal community engagement and volunteer-matching websites.
- Evolve our innovation award program to create one company-level award, the Jack Kilby Award of Ingenuity, recognizing game-changing and breakthrough innovations and the employees who facilitate revolutionary technology.
- Celebrate the first annual Jack Kilby Day in honor of the creation of the integrated circuit, during which we will showcase ongoing innovation at TI. We also plan to launch a video and blog series to allow employee innovators to explain how they came up with their creations.
- Evaluate new email and video communications tools for internal and external engagement.
- Expand digital signage on TI campuses in Germany, California and at manufacturing sites.
- Continue to engage shareholders on TI's strategy and performance, and issues of importance to them.
- Work with the TI Customer Expert Advisory Panel to assess future semiconductor needs by industry segment. This effort will include more project-specific research to better understand unmet customer needs and improve technical support. We also intend to recruit panelists from the industrial, automotive and smart grid markets to better understand their needs.
- Provide in-person and online training and technical support globally and launch www.ti.com/training, which further expands our ability to deliver trainings to customers anytime and anywhere.
- Host two additional EICC-validated audits, which will assess environmental, safety and health; ethics; labor; and management system performance. The information will be shared with customers who are members of, and request it through, the EICC.
- Continue to engage suppliers about TI's expectations for compliance and performance.
- Continue training educators on STEM curriculums, Common Core assessment standards and technology to improve learning in the classroom.
- Meet with various education leaders to share ideas and best practices to encourage more students to pursue STEM careers.
Trade associations and policymakers
- Develop new and deepen existing relationships with policymakers around the world, particularly in regions where we operate.
- Advocate for policies that will ensure TI's competitiveness, including immigration and tax reform, research and development funding, and other priorities.
- Continue to engage with neighbors, chambers of commerce, and other business and civic leaders in North Texas to address any concerns, and to support the continued strength and well-being of our communities.
- Promote TI's legacy of innovation and current technological advances to customers, potential new hires, educators, students, policymakers and other external stakeholders.