More than 60 years ago, Texas Instruments employees placed their personal imprint on the ethics of the company. They chose to conduct themselves to the highest standards of personal integrity, and they demanded the same of others. Today, those principles and values still permeate all of TI's actions and decisions.

As TI grew, management recognized a need to formalize and communicate company standards. In 1961, TI published its first written code of ethics, a booklet titled "Ethics in the Business of TI." Though it has been revised several times to reflect changes in the business environment, the basic message contained in that first booklet has never changed, nor has TI's emphasis on maintaining a track record of ethics and integrity.

About 20 years ago, an increasing number of difficult issues, challenges and close calls in modern business were recognized, but clear choices of action did not always exist. Employees and their business associates needed to better understand TI's expectations and where they could go for help if they had a question or a concern. TI believes maintaining the highest ethical standards requires a partnership between employees and employers. The employer proactively supports employees by communicating values and giving individual guidance, while empowered employees participate actively in problem-solving. In 1987, TI decided to actively support employees by establishing a TI Ethics Office and appointing a TI Ethics Director.

The TI Ethics Office has three primary functions:

• To ensure that business policies and practices continue to be aligned with ethical principles;
• To clearly communicate ethical expectations; and
• To provide multiple channels for feedback through which people can ask questions, voice concerns and seek resolution to ethical issues.

A reputation and track record for ethics and integrity is vital for establishing the trust that is the basis for all successful business relationships. All people associated with TI—employees, customers, suppliers, governments and communities—need to understand and appreciate the importance of these principles.

TI has strong documented requirements for ethical business practices:

• TI Standard Policies and Procedures
• The TI Commitment
• "The Values and Ethics of TI" booklet

The direction is clear, and the message is firmly and credibly supported by our highest levels of management and by our Board of Directors.