Presentation 9Apr2010 at Lokey Graduate School of Business, Center For Socially Responsible Business conference "Three Ps: People, Planet, Profit." Suzanne Fallender, Director, CSR Strategy & Communications, Intel View the video:http://vimeo.com/11330604

1. Nex Generation CSR:
xt
Business Value, Integration, and Leadership
Suzanne Fallender
Corporate Responsibility Office
Intel Corporation
Mills College
April 9 2010
9,

2. Changing L
Landscape
Increase in “socially respo
socially onsible
investors” and integration of ESG
into financial analysis
y
Changing expectations am
mong
consumers & public
Increased sophistication o NGO
of
campaigns and partnerships
Employees and new talent
t
recruitment
Changing C-Suite views
Sources: “State of Corporate Citizenship” BCCCC, http://www.bcccc.net/index.cfm?pageId=2043
Social Investment Forum.
Copyright © 2010 Intel Corporation. All rights reserved. Intel and the Intel logo are trademarks or registered trademarks of Intel
o
Corporation or its subsidiaries in the United States and other countries.
*Other names and brands may be claimed as the property of others.

3. People, Pla
p anet, Profit
People
• Changing
p
expectations
• Low hanging fruit
harder to find
h d t fi d
• Increasing focus on
connection to value Planet Profit
• Next phase more
challenging
Copyright © 2010 Intel Corporation. All rights reserved. Intel and the Intel logo are trademarks or registered trademarks of Intel
o
Corporation or its subsidiaries in the United States and other countries.
*Other names and brands may be claimed as the property of others.

4. Building Corpora Responsibility
ate
Business Integration Leadership
Value
25.0 Laggards (bottom 10%)
Average
19.5% Leaders (top 10%)
20.0
15.5%
15.0
13.6%
10.6%
10.0
7.5
7.2% 7.0%
4.1
5.0
0.8
0.0
Return on Invested Capital Shareholder Return Sharpe ratio (x 10)
Copyright © 2010 Intel Corporation. All rights reserved. Intel and the Intel logo are trademarks or registered trademarks of Intel
o
Corporation or its subsidiaries in the United States and other countries.
*Other names and brands may be claimed as the property of others.

5. CSR Cultu Drivers
ure
Engineering culture
E i i lt Global m
manufacturer Innovation leader
• Data driven and focused on continu uous improvement
• Proactive community engagement a environmental management
and
• Global scale and impact of program ms
• Priority on education and ability of t
technology to help solve global
challenges
h ll
Copyright © 2010 Intel Corporation. All rights reserved. Intel and the Intel logo are trademarks or registered trademarks of Intel
o
Corporation or its subsidiaries in the United States and other countries.
*Other names and brands may be claimed as the property of others.

6. Environmental
Sustainability
Laargest corporate purchaser of
gre p
g een power in the U.S. accordingg
to the EPA
Recycle over 70% of our waste
R
Inve
ested over $100 million in water
conservation in past decade
Copyright © 2010 Intel Corporation. All rights reserved. Intel and the Intel logo are trademarks or registered trademarks of Intel
o
Corporation or its subsidiaries in the United States and other countries.
*Other names and brands may be claimed as the property of others.

7. Innovation & Growth Opportunities
$1B Investe in Education Programs
ed
7+ Million Teachers
50+ Countries
Copyright © 2010 Intel Corporation. All rights reserved. Intel and the Intel logo are trademarks or registered trademarks of Intel
o
Corporation or its subsidiaries in the United States and other countries.
*Other names and brands may be claimed as the property of others.

8. Be an Asset to Our
Communities
Close to 1 million volunteer
Cl t illi l t
hours in 2009
Copyright © 2010 Intel Corporation. All rights reserved. Intel and the Intel logo are trademarks or registered trademarks of Intel
o
Corporation or its subsidiaries in the United States and other countries.
*Other names and brands may be claimed as the property of others.

9. Business Value
s

10. CSR and Business Value
“Continuing our
commitment to the
highest
hi h
performance in all
we do—from
product innovation
to corporate
responsibility—is
p y
good business.”
Paul Otellini, President
and CEO
Copyright © 2010 Intel Corporation. All rights reserved. Intel and the Intel logo are trademarks or registered trademarks of Intel
o
Corporation or its subsidiaries in the United States and other countries.
*Other names and brands may be claimed as the property of others.

11. Long history of
g
trans
sparency and
reporting
p g
Localization
p
of report
First
Fi t EHS globally
report and Carbon
public goals e
Disclosure
Project
‘SRI’ road
GRI G3
shows Move to
begin “online
y
only”
GRI G2 report
First
GRI CSR
report
1994 1996 1998 2000 200
02 2004 2006 2008 2010
Copyright © 2010 Intel Corporation. All rights reserved. Intel and the Intel logo are trademarks or registered trademarks of Intel
o
Corporation or its subsidiaries in the United States and other countries.
*Other names and brands may be claimed as the property of others.

12. Applying learnings from external measures
m
We received over 80 recognitions for our corporate responsibility
s
efforts at the local, nationa and global level in 2009
al
Copyright © 2010 Intel Corporation. All rights reserved. Intel and the Intel logo are trademarks or registered trademarks of Intel
o
Corporation or its subsidiaries in the United States and other countries.
*Other names and brands may be claimed as the property of others.

13. Integrated Valu F
I t t d V lue Framework
k
RISK
REVENUE OPERATIONS MANAGEMENT BRAND
Growth and Cost Savings and License to Reputation and
Innovation Continuous Operate and Goodwill
Improvement Governance
Sources: Intel information based on multiple fram
meworks, including McKinsey and Boston College
Center for Corporate Citizenship, “How Virtue Cre
eates Value for Business and Society”, April 2009
Copyright © 2010 Intel Corporation. All rights reserved. Intel and the Intel logo are trademarks or registered trademarks of Intel
o
Corporation or its subsidiaries in the United States and other countries.
*Other names and brands may be claimed as the property of others.

14. Integrated Valu Framework
ue
• Market expans
sion
REVENUE • Product innovation
• New customer needs
r
Growth and
Innovation
OPERATIONS
• Operatio
onal efficiency
Cost Savings and
• Managem
ment quality Continuous
Improvement
p
• Employe engagement
ee
Copyright © 2010 Intel Corporation. All rights reserved. Intel and the Intel logo are trademarks or registered trademarks of Intel
o
Corporation or its subsidiaries in the United States and other countries.
*Other names and brands may be claimed as the property of others.

15. Integrated Valu F
I t t d V lue Framework
k
• Regulatory risk
RISK
MANAGEMENT • Community e
engagement
• Supply chain responsibility
n
License to
Operate and
Governance BRAND
•D
Differentiation Reputation and
Goodwill
•T
Trusted partner
p
•G
Goodwill
Copyright © 2010 Intel Corporation. All rights reserved. Intel and the Intel logo are trademarks or registered trademarks of Intel
o
Corporation or its subsidiaries in the United States and other countries.
*Other names and brands may be claimed as the property of others.

16. Integration

17. Strategic alignment
• Aligned with Intel’s
Intel s
Global Strategy on a
g
Page
• Board-level oversight
• Integration of CSR
information into Annual
Report and 10-K
10 K
• Linked compensation
with environmental and
CSR factors
Copyright © 2010 Intel Corporation. All rights reserved. Intel and the Intel logo are trademarks or registered trademarks of Intel
o
Corporation or its subsidiaries in the United States and other countries.
*Other names and brands may be claimed as the property of others.

18. Employee engageme
ent
• Culture shift – integrating into
o
their decision-making
• Provide education and ways
to participate
• Programs to encourage
innovation or generate project
t
ideas
• Awards and recognition
•L
Leverage video and social
id d i l
media
Copyright © 2010 Intel Corporation. All rights reserved. Intel and the Intel logo are trademarks or registered trademarks of Intel
o
Corporation or its subsidiaries in the United States and other countries.
*Other names and brands may be claimed as the property of others.

19. Business group ownership
Intel IT
Supply Chain/
pp y
Materials
Copyright © 2010 Intel Corporation. All rights reserved. Intel and the Intel logo are trademarks or registered trademarks of Intel
o
Corporation or its subsidiaries in the United States and other countries.
*Other names and brands may be claimed as the property of others.

20. Leadership
e

21. What does leade
ership look like?
• Collaboration – problems too complex to solve alone
o
• Industry initiatives – efficienc consistency and impact
cy,
• Investment – risk, change ag
gent, differentiation
Copyright © 2010 Intel Corporation. All rights reserved. Intel and the Intel logo are trademarks or registered trademarks of Intel
o
Corporation or its subsidiaries in the United States and other countries.
*Other names and brands may be claimed as the property of others.

22. Ne leaders required
ew
• CSR is not just for CROs
anymore….
a
• Influencing and analytical
skills
• M ki th value connection
Making the l ti
• Improving decision-making
g g
and
a quality of organization
Copyright © 2010 Intel Corporation. All rights reserved. Intel and the Intel logo are trademarks or registered trademarks of Intel
o
Corporation or its subsidiaries in the United States and other countries.
*Other names and brands may be claimed as the property of others.