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Corporate Social Responsibility of MicrosoftCompany

1

OF

MICROSOFT COMPANY

1.INTRODUCTION

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Corporate social responsibility(CSR, also called corporate conscience, corporate

citizensip, social per!or"ance, or s#stainable responsible b#siness$ Responsible

%#siness) is a form of corporateself-regulationintegrated into abusiness model. CSR policy

functions as a built-in, self-regulating mechanism whereby a business monitors and ensuresits active compliance with the spirit of the law, ethical standards, and international norms. n

some models, a firm!s implementation of CSR goes beyond compliance and engages in

"actions that appear to further some social good, beyond the interests of the firm and that

which is re#uired by law." CSR is a process with the aim to embrace responsibility for the

company!s actions and encourage a positive impact through its activities on the environment,

consumers, employees, communities,sta$eholdersand all other members of thepublic

sphere who may also be considered as sta$eholders.

%he term "corporate social responsibility" became popular in the &'s and has remained a

term used indiscriminately by many to cover legal and moral responsibility more narrowlyconstrued.

*roponents argue that corporations ma$e more long term profits by operating with a

perspective, while critics argue that CSR distracts from the economic role of businesses.

Mc+illiams and Siegel!s article () published in Strategic Management ournal, cited by

over & academics, compared eistingeconometricstudies of the relationship between

social and financial performance. %hey concluded that the contradictory results of previous

studies reporting positive, negative, and neutral financial impact, were due to

flawed empirical analysis. Mc+illiams and Siegel demonstrated that when the model is

properly specified/ that is, when you control for investment inResearch and 0evelopment, animportant determinant of financial performance, CSR has a neutral impact on financial

outcomes.

n his widely cited boo$ entitled Misguided 1irtue2 3alse 4otions of Corporate Social

Responsibility (&) 0avid 5enderson argued forcefully against the way in which CSR

bro$e from traditional corporate value-setting. 5e #uestioned the "lofty" and sometimes

"unrealistic epectations" in CSR.

Some argue that CSR is merely window-dressing, or an attempt to pre-empt the role of

governments as a watchdog over powerful multinational corporations. *olitical sociologistsbecame interested in CSR in the contet of theories of globali6ation, neo-liberalism, and late

capitalism. 7dopting a critical approach, sociologists emphasi6e CSR as a form of capitalist

legitimacy and in particular point out that what has begun as a social movement against

uninhibited corporate power has been co-opted by and transformed by corporations into a

!business model! and a !ris$ management! device, often with #uestionable results.

CSR is titled to aid an organi6ation!s mission as well as a guide to what the company stands

for and will uphold to its consumers. 0evelopmentbusiness ethics is one of the formsof applied ethicsthat eamines ethical principles and moral or ethical problems that can arise
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in a business environment. S8 is the recogni6ed international standard for CSR.

*ublic sector organi6ations (the 9nited 4ations for eample) adhere to the triple bottom

line(%:;). t is widely accepted that CSR adheres to similar principles but with no formal

act of legislation. %he 94 has developed the *rinciples for Responsible nvestment asguidelines for investing entities.

&.APPROAC'(S
http://en.wikipedia.org/wiki/ISO_26000http://en.wikipedia.org/wiki/Triple_bottom_linehttp://en.wikipedia.org/wiki/Triple_bottom_linehttp://en.wikipedia.org/wiki/UNhttp://en.wikipedia.org/wiki/Principles_for_Responsible_Investmenthttp://en.wikipedia.org/wiki/ISO_26000http://en.wikipedia.org/wiki/Triple_bottom_linehttp://en.wikipedia.org/wiki/Triple_bottom_linehttp://en.wikipedia.org/wiki/UNhttp://en.wikipedia.org/wiki/Principles_for_Responsible_Investment

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Some commentators have identified a difference between the Canadian (Montreal school of

CSR), the Continental

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7nother approach to CSR is to incorporate the CSR strategy directly into the business

strategy of an organi6ation. 3or instance, procurement of 3air %radetea and coffee has been

adopted by various businesses including=*M>.ts CSR manager commented, "3airtrade fits

very strongly into our commitment to our communities.?

7nother approach is garnering increasing corporate responsibility interest. %his is

called Creating Shared 1alue, or CS1. %he shared value model is based on the idea that

corporate success and social welfare are interdependent. 7 business needs a healthy, educated

wor$force, sustainable resources and adept government to compete effectively. 3or society to

thrive, profitable and competitive businesses must be developed and supported to create

income, wealth, ta revenues, and opportunities for philanthropy. CS1 received global

attention in the 5arvard :usiness Review article Strategy @ Society2 %he ;in$ between

Competitive 7dvantage and Corporate Social Responsibility by Michael Social mpact 7dvisors. %he article provides

insights and relevant eamples of companies that have developed deep lin$ages between their

business strategies and corporate social responsibility. Many approaches to CSR pit

businesses against society, emphasi6ing the costs and limitations of compliance with

eternally imposed social and environmental standards. CS1 ac$nowledges trade-offs

between short-term profitability and social or environmental goals, but focuses more on the

opportunities for competitive advantage from building a social value proposition into

corporate strategy. CS1 has a limitation in that it gives the impression that only two

sta$eholders are important - shareholders and consumers A and belies the multi-sta$eholder

approach of most CSR advocates.

Many companies use the strategy of benchmar$ing to compete within their respective

industries in CSR policy, implementation, and effectiveness. :enchmar$ing involves

reviewing competitor CSR initiatives, as well as measuring and evaluating the impact that

those policies have on society and the environment, and how customers perceive competitor

CSR strategy. 7fter a comprehensive study of competitor strategy and an internal policy

review performed, a comparison can be drawn and a strategy developed for competition with

CSR initiatives.
http://en.wikipedia.org/wiki/Fair_Tradehttp://en.wikipedia.org/wiki/KPMGhttp://en.wikipedia.org/wiki/Creating_Shared_Valuehttp://en.wikipedia.org/wiki/Fair_Tradehttp://en.wikipedia.org/wiki/KPMGhttp://en.wikipedia.org/wiki/Creating_Shared_Value

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).COST*%(N(FITS ANA+YSIS ,IT' A

R(SOURS(S %AS(D -I(,

n competitive mar$ets the cost-benefit analysis regarding positive financial outcomes upon

implementing a CSR-based strategy, can be eamined with a lens of the resource-based-view

(R:1) of sustainable competitive advantage. 7ccording to :arneyBs (&'') "formulation of

the R:1, sustainable competitive advantage re#uires that resources be valuable (1), rare (R),

inimitable () and non-substitutable (S)." 7 firm can conduct a cost benefit analysis through a

R:1-based lens to determine the optimal and appropriate level of investment in CSR, as it

would with any other investments. 7 firm introducing a CSR-based strategy might only

sustain high returns on their investment if their CSR-based strategy were inimitable () by

their competitors. n competitive mar$ets, a firm introducing a CSR-based strategy might

only sustain high returns on their investment and there may only be a short-lived strategic

competitive advantage to implementing CSR as their competitors may adopt similar

strategies. %here is however, a long-term advantage in that competitors may also imitate

CSR-based strategies in a socially responsible way.

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partners, across the industry and with universities is crucial to successfully managing social

responsibility in supply chains.

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.POT(NTIA+ %USIN(SS %(N(FITS

%he scale and nature of the benefits of CSR for an organi6ation can vary depending on the

nature of the enterprise, and are difficult to #uantify, though there is a large body of literature

ehorting business to adopt measures beyond financial ones (e.g.,0eming!s 3ourteen

*oints,balanced scorecards). 8rlit6$y, Schmidt, and Ryne found a correlation between

socialFenvironmental performance and financial performance. 5owever, businesses may not

be loo$ing at short-run financial returns when developing their CSR strategy. ntel employs a

G-year CSR planning cycle.

%he definition of CSR used within an organi6ation can vary from the strict "sta$eholder

impacts" definition used by many CSR advocates and will often include charitable

effortsandvolunteering. CSR may be based within thehuman resources,business

developmentorpublic relationsdepartments of an organisatio4 or may be given a separate

unit reporting to theC

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#uantitative method that captures what is significantly at issue and no agreed-upon way to

represent #ualitative measures.

'#"an reso#rces

7 CSR program can be an aid to recruitmentand retention, particularly within the

competitive graduatestudent mar$et. *otential recruits often as$ about a firm!s CSR policy

during an interview, and having a comprehensive policy can give an advantage. CSR can also

help improve the perception of a company among its staff, particularly when staff can

become involved throughpayroll giving, fundraisingactivities or community volunteering.

CSR has been found to encourage customer orientation among frontline employees.

Ris/ "ana0e"ent

Managing ris$is a central part of many corporate strategies. Reputations that ta$e decades to

build up can be ruined in hours through incidents such as corruption scandals or

environmental accidents.%hese can also draw unwanted attention from regulators, courts,

governments and media. :uilding a genuine culture of !doing the right thing! within a

corporation can offset these ris$s.

%ran i!!erentiation

n crowded mar$etplaces, companies strive for a uni#ue selling propositionthat can separate

them from the competition in the minds of consumers. CSR can play a role in building

customer loyalty based on distinctive ethical values.Several maHorbrands, such as %he Co-

operative >roup, %he :ody Shopand 7merican 7pparelare built on ethical values. :usiness

service organi6ations can benefit too from building a reputation for integrity and best

practice.

(n0a0e"ent planet

7n engagement plan will assist in reaching a desired audience. 7 corporate social

responsibility team, or individual is needed to effectively plan the goalsandobHectivesof the

organi6ation. 0etermining abudgetshould be of high priority. %he function of corporate

social responsibility planning2

&. %o add discussion and analysis of a new set of ris$s into corporate decision-ma$ing.
http://en.wikipedia.org/wiki/Recruitmenthttp://en.wikipedia.org/wiki/Employee_retentionhttp://en.wikipedia.org/wiki/Graduate_schoolhttp://en.wikipedia.org/wiki/Payroll_givinghttp://en.wikipedia.org/wiki/Fundraisinghttp://en.wikipedia.org/wiki/Riskhttp://en.wikipedia.org/wiki/Unique_selling_propositionhttp://en.wikipedia.org/wiki/Brandshttp://en.wikipedia.org/wiki/The_Co-operative_Grouphttp://en.wikipedia.org/wiki/The_Co-operative_Grouphttp://en.wikipedia.org/wiki/The_Body_Shophttp://en.wikipedia.org/wiki/The_Body_Shophttp://en.wikipedia.org/wiki/American_Apparelhttp://en.wikipedia.org/wiki/Goalhttp://en.wikipedia.org/wiki/Objective_(goal)http://en.wikipedia.org/wiki/Objective_(goal)http://en.wikipedia.org/wiki/Budgethttp://en.wikipedia.org/wiki/Recruitmenthttp://en.wikipedia.org/wiki/Employee_retentionhttp://en.wikipedia.org/wiki/Graduate_schoolhttp://en.wikipedia.org/wiki/Payroll_givinghttp://en.wikipedia.org/wiki/Fundraisinghttp://en.wikipedia.org/wiki/Riskhttp://en.wikipedia.org/wiki/Unique_selling_propositionhttp://en.wikipedia.org/wiki/Brandshttp://en.wikipedia.org/wiki/The_Co-operative_Grouphttp://en.wikipedia.org/wiki/The_Co-operative_Grouphttp://en.wikipedia.org/wiki/The_Body_Shophttp://en.wikipedia.org/wiki/American_Apparelhttp://en.wikipedia.org/wiki/Goalhttp://en.wikipedia.org/wiki/Objective_(goal)http://en.wikipedia.org/wiki/Budget

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. %o represent issues within the corporation that watchdogs, 4>8s and advocates represent

within society.

E. %o assess the future. 7n organi6ations long term and short term future needs to be thought

of.

D. %o help prioriti6e consideration of socially and environmentally friendly proHects that

might otherwise lac$ a corporate advocate.

G. %o $eep corporations aware of potential maHor societal impacts even when a negative

impact may not be immediate, and thus lessen liability.

. %o positively influence decision ma$ing where societal impacts are maimi6ed, whilst

ensuring efforts are within a givenbudget.

De2elopin0 an en0a0e"ent plan

Commit to coming up with and improving on your companies goals. CSR commitments

communicate the nature and direction of the firm!s social and environmental activities and,

will help others understand how the organi6ation is li$ely to behave in a particular situation

&. 0o a scan of CSR commitments

. 5old discussions with maHor sta$eholders

E. Create a wor$ing group to develop the commitments

D. *repare a preliminary draft

G. Consult with affected sta$eholders

. Revise and publish the commitments

I. Consider what is feasible within thebudget

J %o ensure employee buy-in, include employees in the process of developing the vision and

values. %o spar$ the process, create a CSR wor$ing group or hold a contest for the best

suggestions, encouraging employees and their representatives to put some thought into their

submissions.

J 5ost a visioning session and as$ participants to thin$ about what the firm could loo$ li$e in

the future as a CSR leader.

J Review the CSR priorities to determine which codes of ethicsor conduct fit best with the

firm!s goals.
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Consultantsare recommended when planning for CSR activities involving small, medium

and large si6ed corporations. 7ll levels of management should be on board, and the support

of high ran$ing corporate officials should be given.

+icense to operate

Corporations are $een to avoid interference in their business through taationor regulations.

:y ta$ing substantive voluntary steps, they can persuade governments and the wider public

that they are ta$ing issues such ashealth and safety, diversity, or the environment seriously as

good corporate citi6ens with respect to labour standards and impacts on the environment.

S#pplier relations

:usinesses are constantly relying on suppliers to reduce overall costs, while improving

the #ualityof their goods or services. Many 4orth 7merican companies have downgraded the

volume of suppliers they do business with, and award contracts to a select few, in order to

lower operating costs. :y establishing a strong supply chain, companies are able to push for

continuous #uality improvements, and price reductions. %he long-term benefits of the listed

above create a better value for sta$eholders.

Some multi-national companies li$e >eneral Motorscan shift suppliers, if a lower offer is

made by the competition. 7s a result, competitiveness, and greater profits are created, in turn

contributing to a stronger mar$et

%he strategic use of supplier relations can benefit single, double and triplebottom-lines.

Corporations ecelling in supply relationsinclude +al-Mart,3ord,>eneral

Motors, %oyotaand4estle. 7ll companies listed above have gained tangeable results through

the practice of ensuring sound supply chains, and sourcing materials from ethicalsources.

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3.Co""on Types o! Corporate Social

Responsibility Actions

%here are many aspects of corporate social responsibility/ whether a company decides to

develop one area of CSR, or multiple, the end result is a more profitable company

eperiencing a higher level of employee engagement. %he following is a list of common ways

corporate social responsibility is implemented by organi6ations.

(n2iron"ental S#stainability4

7reas include recycling, waste management, water

management, using renewable energy sources, utili6ing reusable resources, creating!greener! supply chains, using digital technology instead of hard copies, developing

buildings according to ;eadership in

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involvement and engagement/ since these programs began the company has seen

higher profits and greater employee engagement.

(tical Mar/etin0 Practices4

Companies that ethically mar$et to consumers are

placing a higher value on their customers and respecting them as people who are ends

in themselves. %hey do not try to manipulate or falsely advertise to potential

consumers. %his is important for companies that want to be viewed as ethical.

5.CRITISISMS AND CONC(RNS

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Critics of CSR as well as proponents debate a number of concerns related to it. %hese include

CSR!s relationship to the fundamental purpose and nature of business and #uestionable

motives for engaging in CSR, including concerns about insincerity and hypocrisy.

Nat#re o! b#siness

Milton 3riedmanand others have argued that a corporation!s purpose is to maimi6e returns

to its shareholders, and that since only people can have social responsibilities, corporations

are only responsible to their shareholders and not to society as a whole. 7lthough they accept

that corporations should obey the laws of the countries within which they wor$, they assert

that corporations have no other obligation to society. Some people perceive CSR as

incongruent with the very nature and purpose of business, and indeed a hindrance to free

trade. %hose who assert that CSR is contrasting with capitalismand are in favor of the free

mar$etargue that improvements in health, longevityandFor infant mortalityhave beencreated by economic growthattributed tofree enterprise.DDN

Critics of this argument perceive the free mar$et as opposed to the well-being of society and

a hindrance to human freedom. %hey claim that the type of capitalism practiced in many

developing countries is a form of economic andcultural imperialism, noting that these

countries usually have fewer labour protections, and thus their citi6ens are at a higher ris$ of

eploitation by multinational corporations.

7 wide variety of individuals and organi6ations operate in between these poles. 3or eample,

the R

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7nother concern is that sometimes companies claim to promote CSR and be committed

tosustainable developmentbut simultaneously engage in harmful business practices. 3or

eample, since the &'Is, theMc0onald!s Corporation!s association with Ronald Mc0onald

5ousehas been viewed as CSR and relationship mar$eting. More recently, as CSR hasbecome mainstream, the company has beefed up its CSR programs related to its labor,

environmental and other practices .7ll the same, inMc0onald!s Restaurants v Morris @

Steel, ;ord ustices *ill, May and =eane ruled that it was fair comment to say that

Mc0onald!s employees worldwide !do badly in terms of pay and conditions! and true that !if

one eats enough Mc0onald!s food, one!s diet may well become high in fat etc., with the very

real ris$ of heart disease.!

Royal 0utch Shellhas a much-publici6ed CSR policy and was a pioneer in triple bottom

linereporting, but this did not prevent the D scandal concerning its misreporting of oil

reserves,which seriously damaged its reputation and led to charges of hypocrisy. Since then,the Shell 3oundation has become involved in many proHects across the world, including a

partnership withMar$s and Spencer(9=) in three flower and fruit growing communities

across 7frica.

Critics concerned with corporate hypocrisy and insincerity generally suggest that better

governmental and international regulation and enforcement, rather than voluntary measures,

are necessary to ensure that companies behave in a socially responsible manner. 7 maHor area

of necessary international regulation is the reduction of the capacity of corporations to sue

states under investor state dispute settlementprovisions in trade or investment treaties if

otherwise necessary public health or environment protection legislation has impededcorporate investments. 8thers, such as *atricia +erhane, argue that CSR should be

considered more as a corporate moral responsibility, and limit the reach of CSR by focusing

more on direct impacts of the organi6ation as viewed through a systems perspective to

identify sta$eholders. 3or a commonly overloo$ed motive for CSR, see also Corporate Social

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%he rise in popularity of ethical consumerismover the last two decades can be lin$ed to the

rise of CSR. 7s global population increases, so does the pressure on limited natural resources

re#uired to meet rising consumer demand (>race and Cohen G, &DI). ndustriali6ation, in

many developing countries, is booming as a result of both technology and globali6ation.Consumers are becoming more aware of the environmental and social implications of their

day-to-day consumer decisions and are therefore beginning to ma$e purchasing decisions

related to their environmental and ethical concerns. 5owever, this practice is far from

consistent or universal.

6lobalization an "ar/et !orces

7s corporations pursue growth throughglobali6ation, they have encountered new challenges

that impose limits to their growth and potential profits. >overnment regulations, tariffs,

environmental restrictions and varying standards of what constitutes "labor eploitation" are

problems that can cost organi6ations millions of dollars. Some view ethical issues as simply a

costly hindrance, while some companies use CSR methodologies as a strategic tactic to gain

public support for their presence in global mar$ets, helping them sustain a competitive

advantage by using their social contributions to provide a subconscious level of advertising.

(3ry, =eim, Meiners &', &G) >lobal competition places a particular pressure on

multinational corporations to eamine not only their own labor practices, but those of their

entire supply chain, from a CSR perspective. that all government is controlling.

Social a7areness an e#cation

%he role among corporate sta$eholders is to wor$ collectively to pressure corporations that

are changing. Shareholders and investors themselves, through socially responsible

investingare eerting pressure on corporations to behave responsibly. %he etension of SR

bodies driving corporations to include an element of Oethical investmentB into their corporate

agendaBs generates socially embedded issues. %he main issue correlates to the development

and overall idea of Oethical investingB or SR, a concept that is constructed as a general social

perspective.GDN%he problem becomes defining what is classified as Oethical investingB. %he

ethics or values of one SR body will li$ely different from the net since ethical opinions are

inherently paradoical. 3or eample, some religious investors in the 9S have withdrawn

investment from companies that fail to fulfill their ethical epectations. %he4on-

governmental organi6ationsare also ta$ing an increasing role, leveraging the power of the

media and the nternet to increase their scrutiny and collective activism around corporate

behavior. %hrough education and dialogue, the development of community awareness in

holding businesses responsible for their actions is growing.GGNn recent yearswhenPN, the

traditional conception of CSR is being challenged by the more community-

conscious Creating Shared 1alueconcept (CS1), and several companies are refining theircollaboration with sta$eholders accordingly.
http://en.wikipedia.org/wiki/Ethical_consumerismhttp://en.wikipedia.org/wiki/Globalizationhttp://en.wikipedia.org/wiki/Globalizationhttp://en.wikipedia.org/wiki/Tariffhttp://en.wikipedia.org/wiki/Socially_responsible_investinghttp://en.wikipedia.org/wiki/Socially_responsible_investinghttp://en.wikipedia.org/wiki/Corporate_social_responsibility#cite_note-responsibility945-54http://en.wikipedia.org/wiki/Corporate_social_responsibility#cite_note-responsibility945-54http://en.wikipedia.org/wiki/Non-governmental_organizationhttp://en.wikipedia.org/wiki/Non-governmental_organizationhttp://en.wikipedia.org/wiki/Corporate_social_responsibility#cite_note-55http://en.wikipedia.org/wiki/Wikipedia:Manual_of_Style/Dates_and_numbers#Chronological_itemshttp://en.wikipedia.org/wiki/Wikipedia:Manual_of_Style/Dates_and_numbers#Chronological_itemshttp://en.wikipedia.org/wiki/Wikipedia:Manual_of_Style/Dates_and_numbers#Chronological_itemshttp://en.wikipedia.org/wiki/Creating_Shared_Valuehttp://en.wikipedia.org/wiki/Ethical_consumerismhttp://en.wikipedia.org/wiki/Globalizationhttp://en.wikipedia.org/wiki/Tariffhttp://en.wikipedia.org/wiki/Socially_responsible_investinghttp://en.wikipedia.org/wiki/Socially_responsible_investinghttp://en.wikipedia.org/wiki/Corporate_social_responsibility#cite_note-responsibility945-54http://en.wikipedia.org/wiki/Non-governmental_organizationhttp://en.wikipedia.org/wiki/Non-governmental_organizationhttp://en.wikipedia.org/wiki/Corporate_social_responsibility#cite_note-55http://en.wikipedia.org/wiki/Wikipedia:Manual_of_Style/Dates_and_numbers#Chronological_itemshttp://en.wikipedia.org/wiki/Creating_Shared_Value

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(tics trainin0

%he rise of ethics training inside corporations, some of it re#uired by government regulation,is another driver credited with changing the behavior and culture of corporations. %he aim of

such training is to help employees ma$e ethical decisions when the answers are unclear.

%ullberg believes that humans are built with the capacity to cheat and manipulate, a view

ta$en from %rivers (&'I&, &'G), hence the need for learning normative values and rules in

human behavior. %he most direct benefit is reducing the li$elihood of "dirty hands" (>race

and Cohen G), fines and damaged reputations for breaching laws or moral norms.

8rgani6ations also see secondary benefit in increasing employee loyalty and pride in the

organi6ation Caterpillarand :est :uyare eamples of organi6ations that have ta$en such

steps.

ncreasingly, companies are becoming interested in processes that can add visibility to their

CSR :ranco and Rodrigues (I) describe the sta$eholder perspective of CSR as the

inclusion of all groups or constituents (rather than Hust shareholders) in managerial decision

ma$ing related to the organi6ationBs portfolio of socially responsible activities. %his

normative model implies that the CSR collaborations are positively accepted when they are in

the interests of sta$eholders and may have no effect or be detrimental to the organi6ation if

they are not directly related to sta$eholder interests. %he sta$eholder perspective suffers from

a wheel and spo$e networ$ metaphor that does not ac$nowledge the compleity of networ$

interactions that can occur in cross sector partnerships. t also relegates communication to amaintenance function, similar to the echange perspective.

In#stries consiere 2oi o! CSR

Several industries are often absent from CSR research. %he absence is due to

the presumption that these particular industries fail to achieve ethical considerations of their

consumers. %ypical industries include tobacco and alcohol producers ("sin industry"

manufacturers), as well as defense firms
http://en.wikipedia.org/wiki/Caterpillar_Inc.http://en.wikipedia.org/wiki/Best_Buyhttp://en.wikipedia.org/wiki/Caterpillar_Inc.http://en.wikipedia.org/wiki/Best_Buy

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8.COMPANY ADOPTIN6 CORPORAT(

SOCIA+ R(SPONSI%I+ITY

oogle I.I&

D :M+ I.&D

G 0aimler (Mercedes-:en6) I.G

Sony '.D'

I ntel '.E

1ol$swagen '.'

' 7pple '.&

& 4estl '.

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words microcomputer and software, as recounted in a&''G 3ortune maga6ine article. n

7ugust &'II the company formed an agreement with 7SC Maga6ine in apan, resulting in

its first international office, "7SC Microsoft". %he company moved to a new home

in:ellevue, +ashingtonin anuary &'I'.Microsoft entered the 8S business in &' with its own version of 9ni, called eni.

5owever, it was MS-08S that solidified the company!s dominance. 7fter negotiations

with0igital Researchfailed, :Mawarded a contract to Microsoft in 4ovember &' to

provide a version of the C*FM8S, which was set to be used in the upcoming:M *ersonal

Computer(:M *C). 3or this deal, Microsoft purchased a C*FM clone called-

08SfromSeattle Computer *roducts, branding it as MS-08S, which :M rebranded to*C

08S. 3ollowing the release of the :M *C in 7ugust &'&, Microsoft retained ownership of

MS-08S. Since :M copyrighted the :M *C :8S, other companies had to reverse

engineer it in order for non-:M hardware to run as :M *C compatibles, but no suchrestriction applied to the operating systems. 0ue to various factors, such as MS-08S!s

available software selection, Microsoft eventually became the leading *C operating systems

vendor. %he company epanded into new mar$ets with the release of the Microsoft Mouse in

&'E, as well as a publishing division named Microsoft *ress. *aul 7llen resigned from

Microsoft in 3ebruary after developing 5odg$in!s disease.

1==4 ,ino7s an O!!ice

+hile Hointly developing a new 8S with :M in &'D, 8SF, Microsoft released Microsoft

+indows, a graphical etension for MS-08S, on 4ovember , &'G. Microsoft moved its

head#uarters to Redmond on 3ebruary , &', and on March &E the company wentpublic/

the ensuing rise in the stoc$ would ma$e an estimated four billionaires and &,

millionaires from Microsoft employees. 0ue to the partnership with :M, in &'' the 3ederal

%rade Commissionset its eye on Microsoft for possible collusion/ it mar$ed the beginning of

over a decade of legal clashes with the 9.S. >overnment. Microsoft announced the release of

its version of 8SF to original e#uipment manufacturers(8

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8n uly I, &''D, the 9.S. 0epartment of ustice, 7ntitrust 0ivision filed a Competitive

mpact Statement that said, in part2 ":eginning in &', and continuing until uly &G, &''D,

Microsoft induced many 8

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replacing it with the new +indows *hone8S/ along with a new strategy in the smart phone

industry that has Microsoft wor$ing more closely with smart phone manufacturers, such

as4o$ia, and to provide a consistent user eperience across all smart phones using

Microsoft!s +indows *hone 8S. t used a new user interface design language, codenamed"Metro", which prominently used simple shapes, typography and iconography, and the

concept of minimalism.

Microsoft is a founding member of the 8pen 4etwor$ing 3oundationstarted on March E,

&&. 8ther founding companies include >oogle,5* 4etwor$ing,Lahoo,1eri6on, 0eutsche

%ele$omand &I other companies. %he nonprofit organi6ation is focused on providing support

for a newcloud computinginitiative called Software-0efined 4etwor$ing. %he initiative is

meant to speed innovation through simple software changes in telecommunications networ$s,

wireless networ$s, data centers and other networ$ing areas.

3ollowing the release of +indows *hone,Microsoft underwent a gradual rebrandingof itsproduct range throughout && and &Athe corporation!s logos, products, services, and

websites adopted the principles and concepts of theMetro design language. Microsoft

previewed +indows , an operating system designed to power both personal computers

andtablet computers, in %aipei in une &&. 7 developer preview was released on September

&E, and was replaced by a consumer preview on 3ebruary ', &. 8n May E&, &, the

preview version was released.

8n une &, &, Microsoft announced the Microsoft Surface, the first computer in the

company!s history to have its hardware made by Microsoft. 8n une G, Microsoft announced

that it was paying 9ST&. billion to buy the social networ$Lammer. 8n uly E&, &,Microsoft launched the8utloo$.comwebmail serviceto compete with >mail. 8n September

D, &, Microsoft released +indows Server &. 8n 8ctober &, Microsoft announced its

intention to launch a news operation, part of a new-loo$ MS4, at the time of the +indows

launch that was later in the month. 8n 8ctober , &, Microsoft launched +indows and

the Microsoft Surface.%hree days later,+indows *hone was launched. %o cope with the

potential for an increase in demand for products and services, Microsoft opened a number of

"holiday stores" across the 9.S. to complement the increasing number of "bric$s-and-mortar"

Microsoft Stores that opened in &.

8n March ', &E, Microsoft launched a *atent %rac$er. %he =inectsensor device wasupgraded for the &E release of the eighth-generation bo 8neand its capabilities were

revealed in May &E. %he new =inect uses an ultra-wide &p camera, it can function in

the dar$ due to an infrared sensor, it employs higher-end processing power and new software,

it can distinguish between fine movements (such as a thumb movements), and the device can

determine a user!s heart rate by loo$ing at hisFher face. Microsoft filed a patent application in

&& that suggests that the corporation may use the =inect camera system to monitor the

behavior of television viewers as part of a plan to ma$e the viewing eperience more active.

8n uly &', &E, Microsoft stoc$s suffered its biggest one-day percentage sell-off since the

year after its fourth-#uarter report raised concerns among the investors on the poorshowings of both +indows and the Surface tablet/ with more than && percentage points
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declining Microsoft suffered a loss of more than 9S0 Ebillion. 3or the & fiscal year,

Microsoft had five product divisions2 +indows 0ivision, Server and %ools, 8nline Services

0ivision, Microsoft :usiness 0ivision, and

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develops enterprise resource planning(*, and Microsoft 0ynamics S;.%hey are targeted at varying

company types and countries, and limited to organi6ations with under I,G employees. 7lsoincluded under the 0ynamics brand is the customer relationship

management softwareMicrosoft 0ynamics CRM,part of the76ure Services *latform.

(ntertain"ent an De2ices Di2ision

%he

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wor$ anytime they wish. %he company is also $nown for its hiring process, mimic$ed in

other organi6ations and dubbed the "Microsoft interview", which is notorious for off-the-wall

#uestions such as "+hy is a manhole coverroundP".

Microsoft is an outspo$en opponent of the cap on5&: visas, which allow companies in the9.S. to employ certain foreign wor$ers. :ill >ates claims the cap on 5&: visas ma$es it

difficult to hire employees for the company, stating "!d certainly get rid of the 5&: cap" in

G. Critics of 5&: visas argue that relaing the limits would result in increased

unemployment for 9.S. citi6ens due to 5&: wor$ers wor$ing for lower salaries. %he 5uman

Rights CampaignCorporate :%(lesbian, gay, biseual and transseual) employees,

rated Microsoft as IQ from to D and as &Q from G to & after they

allowed gender epression.

Criticis"

Main article2 Criticism of Microsoft

:ad 1istaand 0efective by 0esigngroups protest against +indows 1ista

Criticism of Microsoft has followed the company!s eistence because of various aspects of its

products and business practices.

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highly publici6ed anti-trustcase. 7dditionally, Microsoft!s oogleand others) for its

involvement in censorship in the *eople!s Republic of China.Microsoft has also come undercriticism foroutsourcing Hobsto China and %here were reports of poor wor$ing conditions at

a factory in southern Chinathat ma$es some of Microsoft!s products.

Corporate a!!airs

%he company is run by aboard of directorsmade up of mostly company outsiders, as is

customary for publicly traded companies. Members of the board of directors as of 3ebruary

&D are2 ohn +. %hompson, Steve :allmer,0ina 0ublon, :ill >ates,Maria

=lawe,Stephen ;uc6o, 0avid Mar#uardt, Mason Morfit, Satya 4adella, Charles 4os$i,and5elmut *an$e. :oard members are elected every year at the annual shareholders! meeting

using a maHority vote system. %here are five committees within the board which oversee more

specific matters. %hese committees include the 7udit Committee, which handles accounting

issues with the company including auditing and reporting/ the Compensation Committee,

which approves compensation for the Covernance and 4ominating Committee, which handles various corporate matters including

nomination of the board/ and the 7ntitrust Compliance Committee, which attempts to prevent

company practices from violatingantitrustlaws.

3ive year history graph of47S07X2 MS3%stoc$ on uly &I, &E

+hen Microsoft went public and launched its initial public offering (*8)in &', the

opening stoc$price was T&/ after the trading day, the price closed at TI.IG. 7s of uly

&, with the company!s nine stoc$ splits, any *8shareswould be multiplied by / if

one was to buy the *8 today given the splits and other factors, it would cost about ' cents.

%he stoc$ price pea$ed in &''' at around T&&' (T.' adHusting for splits). %he companybegan to offer a dividendon anuary &, E, starting at eight cents per share for the fiscal
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year followed by a dividend of siteen cents per share the subse#uent year, switching from

yearly to #uarterly dividends in G with eight cents a share per #uarter and a special one-

time payoutof three dollars per share for the second #uarter of the fiscal year. 'N''N%hough

the company had subse#uent increases in dividend payouts, the price of Microsoft!s stoc$remained steady for years.

8ne of Microsoft!s business tactics, described by an eecutive as "embrace, etend and

etinguish," initially embraces a competing standard or product, then etends it to produce

their own version which is then incompatible with the standard, which in time etinguishes

competition that does not or cannot use Microsoft!s new version. &&N1arious companies and

governments sue Microsoft over this set of tactics, resulting in billions of dollars in rulings

against the company. Microsoft claims that the original strategy is not anti-competitive, but

rather an eercise of its discretion to implement features it believes customers want.

Financial

Standard and *oor!sandMoody!shave both given a 777 rating to Microsoft, whose assets

were valued at TD& billion as compared to only T.G billion in unsecured debt. Conse#uently,

in 3ebruary && Microsoft released a corporate bond amounting to T.G billion with

relatively low borrowing rates compared togovernment bonds.

3or the first time in years 7pple nc.surpassed Microsoft in X& && #uarterly profits and

revenues due to a slowdown in *C sales and continuing huge losses in Microsoft!s 8nline

Services 0ivision (which contains its search engine:ing). Microsoft profits were TG. billion,

while 7pple nc. profits were T billion, on revenues of T&D.G billion and TD.I billion

respectively.

Microsoft!s 8nline Services 0ivision has been continuously loss-ma$ing since and in

X& && it lost TI million. %his follows a loss of T.G billion for the year &.

8n uly , &, Microsoft posted its first #uarterly loss ever, despite earning record

revenues for the #uarter and fiscal year, with a net loss of TD' million due to a write

downrelated to the advertising company a Xuantive, which had been ac#uired for T.

billion bac$ in I.

7s of anuary &D, Microsoft!s mar$et capitali6ation stands at TE&D:, ma$ing it the th

largest company in the world by mar$et capitali6ation.

(n2iron"ent

n &&, >reenpeacereleased a report rating the top ten big brands in cloud computing on

their sources of electricity for their data centers. 7t the time, data centers consumed up to Q

of all global electricity and this amount was proHected to increase.*hil Radford of

>reenpeace said "we are concerned that this new eplosion in electricity use could loc$ us

into old, polluting energy sources instead of the clean energy available today," and called on

"7ma6on, Microsoft and other leaders of the information-technology industry must embrace
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clean energy to power their cloud-based data centers." n &E, Microsoft agreed to buy

power generated by a %eas wind proHect to power one of its data centers.

Microsoft is ran$ed on the &Ith place in >reen peace!s >uide to >reener

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7dvertising and Strategy. *enn created a series of negative ads targeting one of Microsoft!s

chief competitors, >oogle.%he ads, called "Scroogled", attempt to ma$e the case that >oogle

is "screwing" consumers with search results rigged to favor >oogle!s paid advertisers,

that >mailviolates the privacy of its users to place ad results related to the content of theiremails and shopping results which favor >oogle products. %ech publications li$e %ech

Crunch have been highly critical of the ad campaign, while >oogle employees have

embraced it.

Cooperation 7it te Unite States 6o2ern"ent

Microsoft provides information about reported bugs in their software to intelligence agencies

of the 9nited States government, prior to the public release of the fi. 7 Microsoft

spo$esperson has stated that the corporation runs several programs that facilitate the sharing

of such information with the 9.S. government.

3ollowing media reports about*RSM, 4S7!s massive electronicsurveillance program, in

May &E, several technology companies were identified as participants, including

Microsoft. Microsoft Hoined the *RSM program in 3ebruary &&. 5owever, in une &E,

an official statement from Microsoft read2

+e provide customer data only when we receive a legally binding order or subpoena to do so,

and never on a voluntary basis. n addition we only ever comply with orders for re#uests

about specific accounts or identifiers. f the government has a broader voluntary national

security program to gather customer data, we don!t participate in it.

0uring the first si months in &E, Microsoft had received re#uests that affected between&G, and &G,''' accounts.

MICROSOFT IN INDIA
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Microsoft ndia *rivate ;imited head#uartered in 5yderabad, ndia is a subsidiary of 9S

software giant Microsoft Corporation. %he company first entered the ndian mar$etin &''

and has since wor$ed closely with thendian government,the% industry, academia and the

local developer community to usher in some of the early successes in the % mar$et.Microsoft currently has offices in the &E cities.

7hmedabad, :angalore,Chandigarh,Chennai,Coimbatore, 5yderabad,ndore, aipur,=ochi

, =ol$ata, Mumbai,4ew 0elhi, and *une. ncreasingly, the company has become a $ey %

partner of the ndian government and industry, supporting and fueling the growth of the local

% industry through its partner enablement programs. Since its entry into ndia, Microsoft has

focused on three $ey obHectives2

%o become a $ey % partner of the ndian government and the local % industry

%o support and fuel growth of the local % industry through its partner enablementprograms

%o use the Microsoft 9nlimited *otential program to enhance education, Hobs and

opportunities and foster innovation through relevant, affordable access to computing.

Microsoft in ndia employs about G, people and has si business units representing the

complete Microsoft product portfolio.
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=.MICROSOFT IN CSR

Microsoft citi6enship mission is to serve globally the needs of communities and fulfill

responsibilities to public. >ood corporate citi6enship plays a vital role in mission to help

people and business reali6e their full potential. Microsoft is inspired every day by employeesB

passion for their communities. 7nd honor their commitments by driving social change with

hundreds of non-profit partners around the world.

,or/in0 responsibly

>ood corporate citi6enship starts at home. %o meet microsoft responsibilities as a global

company, Microsoft is continually wor$ing to create a respectful and rewarding wor$

environment for itBs nearly &, employees. %hey are also pioneering new ways of

reducing environmental impact. %his year, they introduced an internal carbon fee that helped

them meet our 3L&E goal of carbon neutrality. n addition, they are continually strengthening

epectations for our hardware production suppliers to improve the wor$ing conditions and

environmental performance of electronics factories around the world. %hey recogni6e theimportant responsibility they have to respect human rights, and we wor$ to bring the power

of technology to bear to promote respect for human rights throughout the world. %hrough the

Microsoft %echnology and 5uman Rights Center, they are wor$ing internally to promote the

integration of human rights into the companyBs culture, business operations, and strategies.

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Ser2in0 co""#nities

%hey are active members of the communities everywhere they do business.

7t the heart of our efforts is the passion of their employees, who generously donate their

time and money to causes around the world. %his year, the Eth year of our employee giving

campaign, we met an eciting milestone A T& billion in employee contributions and

Microsoft matching gifts to more than E&, nonprofits since &'E.

;aunched in September &, our Microsoft LouthSpar$ initiative is also a maHor focus of

our community wor$. %hrough partnerships with governments, nonprofits, and businesses,

we are wor$ing to empower young people to imagine and reali6e their full potential by

connecting them with greater education, employment, and entrepreneurship opportunities.3urthermore, we donate, on average, T million a day in software to more than I,

nonprofits around the world A one of many ways our technology and resources help

nonprofit organi6ations serve individuals and communities in need.

Citizensip 0o2ernance

%he Regulatory and *ublic *olicy Committee of our board of directors oversees the

companyBs policies and programs that relate to public policy and corporate citi6enship. %he

committeeBs oversight includes public issues of significance to Microsoft and our

sta$eholders that may affect MicrosoftBs operations, performance, or reputation. 8ur

Citi6enship and *ublic 7ffairs team has day-today responsibility for all citi6enship related

wor$, including sta$eholder engagement. 7s part of our ;egal and Corporate 7ffairs >roup,

the E-plusperson team develops and coordinates our global strategy, supports our local

citi6enship teams worldwide, and partners with eternal sta$eholders to fulfill our citi6enship

mission. More broadly, citi6enship at Microsoft relies on the combined efforts of all our

employees, including colleagues in do6ens of other leadership roles, business and operational

groups, and global subsidiaries.

%ogether, they help us identify the societal challenges where Microsoft can add the greatest

value, develop and implement new strategies and programs, and monitor our progress.

Settin0 priorities an sta/eoler en0a0e"ent

+e regularly communicate with thousands of sta$eholders, including global human rights

eperts, environmental nongovernmental organi6ations (4>8s), and parents concerned about

their childrenBs safety and education. %hose conversations help inform and guide our

citi6enship strategies and programs. 8ur sta$eholder engagement ta$es several forms.

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lobal nitiative, 4et mpact, and the +orld

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familiar Microsoft 8ffice format. +e will launch the full 8ffice EG for 4onprofits program

in 3L&D.

Sarin0 /no7le0e to eepen i"pact

%o complement our technology donations, we help nonprofits and other organi6ations better

understand how technology can advance their wor$.

J %rained nonprofits around the world on how to use technology and software to increase

organi6ational effectiveness by hosting GE 4>8 Connection 0ays in E countries for more

than E,G 4>8s and G,IG individuals.

J *artnered with %ech Soup >lobal to host nine technology-focused webinars for the

nonprofit community. %he webinars A which provided demos and training on Microsoft

products, including +indows , 8ffice &E, 8ne4ote, and *ublisher A garnered &,G day-

of participants and &,GE online views.

J +or$ed with 7idmatri to develop tools using the +indows 76ure cloud platform that ma$e

it easier for governments and organi6ations to communicate disaster relief needs and get aid

to the communities and people who need it most.

+e also supported 7idmatri in 3L&E with an investment of T&IG,.

J 5elped develop services and support for nonprofits adopting Microsoft 8ffice EG through

a TG, grant to %ech mpact, an organi6ation committed to helping nonprofits reali6e their

potential through technology.

("ployee 0i2in0

Communities and charities around the world depend on the engagement and support of

individuals. +hether volunteering time or donating money or software, our employees are

passionate about giving bac$ to their communities and improving peopleBs lives. +e support

our employees by matching their contributions of time and money, enhancing their impact.

'#"anitarian response

+hen disaster stri$es, every minute counts. Relief agencies rely on #uic$, accurate

communications to help people and businesses get bac$ to normal as #uic$ly as possible. 8ur

technology helps organi6ations $eep vital information flowing during emergencies.

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+hen 5urricane Sandy hit the 9.S. mainland in 8ctober & A destroying thousands of

homes and leaving millions without power A the Microsoft 0isaster Response team was

ready.

7s the hurricane was still gathering momentum over the 7tlantic 8cean, the team deployed

Microsoft ReadyReach, a cloud-based information portal that uses +indows 76ure to help

emergency-management agencies and relief wor$ers rapidly coordinate response efforts. n

addition to offering cloud-based maps that show the impact of a disaster in real time, the

portal ma$es use of social media to communicate information to meet disaster victims about

shelters, aid, and safe driving routes. t also ma$es it easier for people to connect with

humanitarian relief agencies in the area in need of money, food, or volunteers. %he portal

received a record E,I views during 5urricane Sandy. %he Ready Reach response portal is

one of many ways the Microsoft 0isaster Response team uses technology to $eep vital

information flowing during emergencies A both individually and in tandem with leadinghumanitarian response organi6ations and technology partners. Microsoft also provided a safe

location for people to store their family emergency response plans or insurance policies

through S$y 0rive for +indows or Mac A accessible from any *C or smartphone. n

addition, in partnership with 7idmatri, the team launched the 4otes from the >round

program in late

&. %his web portal delivers eyewitness responder stories to readers via photos, videos, and

messages, helping increase awareness of conditions on the ground and rally community

support.

Accessibility

%odayBs rapid advances in technology give people the opportunities to connect, engage, and

contribute more fully to society. 8ur technologies inspire people of all ages and abilities to

ma$e the most of their potential A eliminating barriers, improving lives, and strengthening

communities.

(@panin0 opport#nity !or people 7it isabilities

3or people with disabilities or hearing and vision impairments, accessible technologies can

eliminate obstacles and broaden opportunities. +e strive to build accessibility into many of

our products and services, provide resources that open new doors, and partner with others to

discover ways of using technology to improve lives.

J %oo$ a leadership role on accessibility by supporting the formation of the nternational

7ssociation of 7ccessibility *rofessionals. %his group will provide the strategic leadership,

international perspective, and operational focus needed to globally elevate the accessibility

profession and build a worldwide infrastructure for accessible technology development.

J +or$ed with 94 5uman Rights to strengthen provisions in the nternational Convention on

the Rights of *ersons with 0isabilities. Supported by a study conducted in collaboration with

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Middlese 9niversity and others, the new provisions also suggest ways that the 9nited

4ations could improve its own accessibility.

J 5elped address the needs of people with autism by sponsoring and hosting 5ac$ 7utism in

March &E. Supported by the :ing 3und, the hac$athon brought people together A thin$ers,

hac$ers, designers A to develop scenario-specific prototypes to help advance $nowledge and

develop solutions.

J Created a set of Microsoft 8ffice templates for families to use after a child has been

diagnosed with autism, in conHunction with 7utism Spea$s.

%he templates were one of many Microsoft initiatives in support of autism-related causes this

year.

J *rovided assistance to customers with disabilities or who need support with accessibilityfeatures on assistive technologies A such as screen readers, screen magnifiers, or speech-

recognition commands

A by opening the Microsoft 7ccessibility

Support 0es$. 3ree of charge, the support des$ offers speciali6ed assistance from trained

agents.

J mproved the accessibility of the bo 1ideo service by adding closed-captioning support

for bo 1ideo across bo and +indows devices.

J

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J ;aunched a new

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J Reduced resource use with data centers that use half the energy and between & to E percent

of the water re#uired to cool traditional data centers. +eBre also tightly integrating resilient

software across our cloud services to better manage the data centers, networ$s, and services

hosted within them A helping reduce energy consumption and ma$ing them increasinglyfleible and reliable.

J Reali6ed energy savings for our data center in 0ublin, reland, by implementing adiabatic

cooling, which reduces our energy costs per megawatt by up to E percent. +eBre also

retrofitting eisting data centers to be more efficient with harder-wor$ing, lower-energy

servers, compressor energy reduction, custom light-emitting diode (;

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J nvested TG.G million in a demonstration proHect to power a data center in Cheyenne,

+yoming, using biogas from a wastewater treatment facility, providing ultra-clean, carbon-

neutral electricity. =nown as the 0ata *lant, it will be completely independent of the grid and

will sustainably power cloud services.

J 5elped %ur$ey put nearly DG, megawatt hours of clean electricity bac$ into its national

power grid by investing in the &&' wind turbines of the Soma +ind 3arm in the Manisa and

:ali$esir provinces.

J Reduced, reused, or recycled '' percent of the waste from our Redmond dining facilities by

switching to compostable tableware, administering aggressive recycling programs, and

adapting our menu to get the most from each item of food served.

%e acco#ntable4 5olding ourselves to a new standard

7 critical aspect of addressing climate change is holding ourselves accountable. 3or the first

time ever, weBve integrated carbon use into the financial decision ma$ing of the company.

8ur internal carbon fee builds a more responsible corporate culture while giving us a new

perspective on the eternal costs of our emissions.

J 5eld every business group at Microsoft responsible for their emissions with our internal

carbon fee A the cornerstone of our commitment to carbon neutrality. 9sing technologies to

measure the impact of our operations, we charge our business groups according to their actual

carbon impact, from electricity use to air travel. %his adds discipline to our business decisions

and helps guide the resource choices made both at our corporate head#uarters and throughour local subsidiaries.

J Created an internal investment fund for our carbon fee payments. %he fund will be used to

support a variety of energy-efficiency and carbon- offset proHects, helping us reduce net

emissions and meet our carbon neutrality goal.

J mproved transparency by measuring emissions with advanced trac$ing software. +e rolled

out the cloud-based Carbon Systems

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Much li$e the cloud has revolutioni6ed business efficiency, weBve transformed how efficient

cloud storage can be. %hrough our online products and solutions, weBre helping Microsoft

users worldwide reduce their own energy consumption.

J Reduced our customersB environmental impact by hosting Microsoft cloud services in our

advanced, highly efficient data centers. Small and medium-si6e businesses that use Microsoft

cloud services can reduce their energy use and associated carbon emissions by up to '

percent compared with on-premises delivery.

J Cut *C energy consumption while driving better performance through power management

features built into our hardware and +indows .

J

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J Reduced standby power use for the bo E by a factor of & since its launch in G.

4ow using less than three-tenths of a watt, the efficiencies have resulted in a percent

reduction in energy use.

J Created a public website and hosted events and programs to foster community $nowledge in

life cycle sustainability, particularly the environmental choices related to buying, using, and

disposing of electronics.

J

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Research 1irtual nstitute.

1:. S,OT ANA+YSIS OF MICROSOFT

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1rofit ( /2$3) illion -+./+0

Employees 34,... -+./+0

Main Competitors5pple Inc$, Google Inc$, %amsung Electronics Co$, Ltd$, International Busines

Machines Corporation and many others$

Microsoft Corporation is one of the est6known software companies in the world$ 7he

corporate is famous for its indows and &ffice software$ In addition to software

products the usiness manufactures and develops consumer electronics such as

talets and game system$

%&7

Microsoft %&7 analysis +./*

%trengths eaknesses

Brand loyalty

Brand reputation

Easy to use software

%trong distriution channels

'oust financial performance

5c"uisition of %kype

1oor ac"uisitions and investments

8ependence on hardware manufacturers

Criticism over security flaws

Mature 1C markets

%low to innovate

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&pportunities 7hreats

Cloud ased services

Moile advertising

Moile device industry

Growth through ac"uisitions

Intense competition in software products

Changing consumer needs and haits

&pen source pro9ects

1otential lawsuits

%trengths

1. Brand loyalty.&ver the years, Microsoft has een the leading &% and software

provider, which resulted in more than 3.: market share for 1C &%$ Most of us grew up

using its easy to use &%, are familiar with it and will keep using it$ ;ew other rands arecapale to compete with Microsoft for this reason$ Even open source &%, which are

completely free and well suited to use for common user, find it hard to attract users$

2. Brand reputation.5ccording to Interrand, Microsoft illion$ ;ores listed the corporate as the )th

most reputale usiness in the world$ Brand reputation leads to higher sales and greater

market share$

3. Easy to use softare.indows &% and &ffice software products are so popular not

9ust ecause Microsoft has great monopolistic power, strong distriution channels and good

rand reputation ut also ecause its products are of great "uality and really easy to use$

4. !trong distribution c"annels.7he company works with all the ma9or computer

hardware producers such as Lenovo, 8ell, 7oshia and %amsung and ma9or computer

retailers to make sure computers would e sold with already pre6installed indows software$

7he company also invested in 8ell and Nokia to tighten its relationships with these

companies$

5. #obust financial performance.Microsoft grew its revenues y +.: from +..> to

+./+ and holds more than (2* illion of cash and cash e"uivalents that can e used for

ac"uisitions and sustantial investments into '?8$

6. $c%uisition of !&ype.ith nearly *.. million users, %kype is a significant oost to

Microsoft

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eaknesses

/$ 'oor ac%uisitions and in(estments.;ew of Microsoft

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7hreats

/$ -ntense competition in softare products.Microsoft is more than ever on the

pressure to introduce successful &% oth in 1C and moile markets as such competitors like

Google and 5pple have already estalished positions$

+$ *"anging consumer needs and "abits.Customers shift from uying laptops and

standalone 1Cs to uying smartphones and talets, the markets, where Microsoft has only a

modest market share and may never estalish itself$

*$ pen source pro/ects.Many new open source pro9ects are coming to the market

and some of them ecame "uite successful, such as new Linu@ &% and &pen %ource &ffice$

&pen source pro9ects are free and so they can ecome an alternative to e@pensive

Microsoft

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rom Sotware an +BS 6ut +*crosot *s wor=*ng on other segments such as lou/ Secur*ty/

nterta*nment an smart )hone.

Key Risk: I see +*crosot com)et*ng w*th )layers such as 8oogle/ 9))le/ 9ma?on/ an Sony. ach

one has come u) w*th un*@ue )rouct an )os*t*on*ng an well esta6l*she 6ran. Aow +*crosot *s

l*ttle 6eh*n *n the race an thus they have to tw*n challenge get the )rouct strategy r*ght an

get the mar=et share.

11.CONC+USION

t is now recogni6ed that poverty reduction and sustainable development will not be achieved

through government action alone.

*olicy ma$ers are paying increasing attention to the potential contribution of the private

sector to such policy obHectives.

%he concept of CSR is sometimes used as shorthand for businessesB contribution to

sustainable development. 7 number of core development issues are already central to the

international CRS agenda.

%hey include labour standards, human rights, education, health, child labour, poverty

reduction, conflict and environmental impacts.

CSR is often associated with large companies and particularly with multinational and global

enterprises. %he international CSR agenda is dominated by 88Bs, investors,

consumers, business and business associations.

CSR has even on occasion attracted criticism for being insensitive to local priorities and the

basic livelihood needs of people in developing countries, particularly where CSR codes of

conduct are perceived as barriers to mar$et access for some producers.

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