As a global company, Texas Instruments is committed to uphold its corporate citizenship and conduct its business around the world with a high degree of ethical standards. Going back to our founders more than 75 years ago, our company values of commitment, integrity and innovation affect every aspect of our business activities. We respect the people in our workforce, those working for our business partners, and the ones in the countries and communities where we operate. It’s who we are – and also the right thing to do.

What is your policy on Corporate Social Responsibility (CSR)?
TI has always practiced high ethical standards and has strong values in place to ensure the outstanding reputation of the company. The standards by which we are governed today were set in motion by our founders more than 75 years ago – that is to conduct business with integrity, commitment and innovation. It’s who we are, and that won’t change.

In accordance with this, we do have policies that address the various components of what makes us a good corporate citizen.

Why do you do it? Isn’t it expensive to the bottom line?
On the contrary. It’s the right thing to do and has always been a part of TI’s culture – to know what’s right and do what’s right. It also gives us a competitive advantage as our customers know our reputation and trust us to be responsible corporate citizens. Our employees know our reputation and have a loyalty to TI because of that. Our turnover rates remain low in our peer group, which keeps our recruiting costs low. And, in the long run, we believe we avoid huge expenses that other companies may incur when they cut corners and adversely affect consumers or the environment.

Can you give some examples of some of the things you do toward CSR?

• Betterment of the community – philanthropic support of health and human services, arts and culture, business associations, education, in our plant site communities, with the goal to make them better places to live and work
• Employee welfare and development – on-site training on regular basis on safety, ethics, business practices, also training on personal and professional development, parenting classes, help with eldercare, personal issues.
• Supplier influence – At a minimum, we expect our suppliers to abide by the laws of the countries where they operate. If we become aware of business practices that are offensive or unacceptable to us, we would take appropriate action to rectify the situation or possibly terminate our arrangement. Additionally, TI will not do business with any entity or person where TI believes that payoffs or similar improper or unethical practices are involved. Our suppliers must also guarantee in writing that they employ workers on the basis of their ability to do the job and not on personal characteristics or beliefs, that their products are not produced, manufactured, mined or assembled with the use of forced, prison or indentured labor, and that their working operations are safe, healthy and fair.
• Environment – Our goal is to have zero wasted resources - to recycle everything from water, to paper, to scrap wafers in order to preserve natural resources. We work constructively with governments, the scientific community, industry and public interest groups to promote sound ESH laws and practices. ESH is also a component of our supplier evaluation methodology.
• Global economic development – TI participates through investment and philanthropy in our plant site communities. Also, we support the needs of communities through donations. For example, when Hurricanes Katrina and Rita struck, TI made pledges of $750,000 to the Dallas and Houston chapters of the American Red Cross and Salvation Army and also established a matching gift program for employees. TIers around the world donated $580,537 and the company matched $500,000 bringing the total contribution to more than $1.83 million. TI employees from around the world pledged more than $460,000 for the American Red Cross to directly aid victims of a devastating tsunami that struck Asia in 2004. The company matched those pledges along with making another $500,000 donation, also to the American Red Cross.
• Privacy – Our policies balance our workers’ privacy needs, taking into consideration concerns for their safety and security.
• Education – TI is involved in improving education at a variety of levels. We provide direct funding to educational institutions as well as take a leadership role in developing measurable and replicable programs. Examples include programs to encourage more minorities and women, advanced engineering programs in high school, university partnerships around the world, and various other monetary contributions as well as high technology equipment donations and teaching tools.

How do you ensure that CSR at TI is sustained?
TI has been and will continue to be a leader when it comes to social responsibility. It’s who we are and nothing will change that. Not only is it important for TI’s reputation, it is a critical element of our business success.

How do you report your CSR activities?
Primarily on the web through our corporate citizenship pages. There are also mentions in our annual report. We do issue a report on our ESH activities worldwide that is produced in 10 languages and updated periodically. Additionally, we will be issuing our first Corporate Social Responsibility report in the summer of 2007.

How do you encourage your subsidiaries to be socially responsible?
Corporate citizenship is part of our organizational make-up. It is an integral part of TI’s heritage. Our policies are regularly and clearly communicated and are consistent around the globe. We have a process in place that allows our employees to anonymously report any problems or issues of concern to them individually as well as to the company at large. In any acquisition, corporate culture is one of the factors we use in evaluating potential purchases. We also include our ethics and social responsibility beliefs and policies in the integration process.

What about contractors and suppliers?
Before we agree to use any contractor or supplier, their business practices are evaluated in a number of areas. At a minimum, we expect them to abide by the laws of the countries where they operate. If we become aware of business practices that are offensive or unacceptable to us, we would take appropriate action to rectify the situation or possibly terminate our arrangement.

Do you support one standard over another?
We believe that the basic message of the various proposed CSR standards is similar and provides a useful reference point for companies to evaluate their own conduct and standards. Although we are very much in favor of companies being socially responsible, we do not advocate any exclusive set of CSR standards over another. Our history and experience in this area have established a firm foundation of values and ethics that cover the same broad concerns that are addressed by these various evolving codes.

How do you feel about an ISO standard on CSR being proposed by the American National Standards Institute?
We are very much in favor of companies being socially responsible, but are not advocating any one set of standards over another. TI remains committed to uphold our corporate citizenship and conduct our business with a high degree of ethical standards. We believe that we’d have little trouble with compliance should a standard be implemented.

Where do I go for more information?
Our web site at: www.ti.com/corp/docs/csr/index.shtml or contact David Reid, d-reid@ti.com