Dell Corporate Responsibility Report 2013


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The annual report of Dell's corporate responsibility practices, goals, and progress toward achieving those goals in the areas of environmental sustainability, diversity, supply chain responsibility, community giving, and corporate governance. Learn more about Dell's corporate responsibility efforts at

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Dell Corporate Responsibility Report 2013

  1. 1. FY13 Corporate Responsibility Summary ReportTable of contents | 1Table of contents02 Letter from Michael Dell03 Our commitment04 Letter from Trisa Thompson05 FY13 Challenges and opportunities06 FY13 Progress to goals and commitments07 By the numbers11 Environment19 Communities26 People32 Supply Chain36 GovernanceFive-year-old Brooke Hester is a patient in thefirst FDA-approved personalized medicine trialfor pediatric cancer, which Dell supports bydonating technology and expertise.
  2. 2. FY13 Corporate Responsibility Summary ReportLetter from Michael Dell | 2For 29 years Dell has been helping our customers bring their dreams to life. That is thephilosophy that guides our business, but it’s also the inspiration behind our commitment tocorporate responsibility.We are working with governments, NGOs, researchers, private enterprises and our industrypeers to address important societal issues from better health care to a cleaner environment.We are doing this with our own groundbreaking innovations, and also by providing thetechnological power that fuels the big ideas of our customers, partners and team members.A great example is Project Ophelia, an ultra-compact device we developed that enables usersto transform any capable display into a thin client. These devices, which are about the size of aUSB stick, are extremely energy efficient — you can run 16 of them on the same energy it takesto run a compact fluorescent light bulb. And because of their portability and efficiency, we areexploring ways to deploy them in remote areas of the world to bring education to and expandhorizons for people with limited or no previous access to the power of technology.We’ve partnered with physicians and researchers to develop a high-performance computingsystem that speeds the analysis of pediatric cancer patients’ tumor cells and enables medicalprofessionals to collaborate virtually in real time. Dell technology and support, combinedwith the innovation and expertise of these partners, is making it possible for doctors to beginadministering personalized treatment to children within days of diagnosis instead of months.In our own operations, we are using technology and social media to mobilize our greatestphilanthropic resource — our global team. We are helping team members connect directly tocharities through an innovative online community where they can volunteer, give and engageothers in a cause. Last year the Dell team collectively logged more than 700,000 volunteerhours, almost 70 percent more than the year before and well above our goal.This report details our recent progress, achievements and steadfast commitment to put ourtechnology solutions to work where they can do the most good in the world. I’m very proudof all we’re doing, within Dell and in partnership with others, to power the possible for peopleand the planet we all share.Letter from Michael DellMichael DellChairman and CEODell Inc.
  3. 3. FY13 Corporate Responsibility Summary ReportOur commitment | 3Our multidimensional commitmentAs a global technology leader, we have a deep responsibility to serve our people, our communities and theenvironment we all share. Our actions in these areas — whether through formal initiative or everyday team membercommitment — complement one another, and come together as a holistic approach to corporate responsibility.Environment Communities PeopleDesigning for the EnvironmentReducing our ImpactGreen Packaging and ShippingCustomer UseRecyclingChildren’s Cancer CareYouth LearningDisaster ReliefSocial EntrepreneurshipCommunity ServiceWorkforce CommitmentDiversity and InclusionMarketplace RelationshipsLeadership and DevelopmentOur commitmentDell Powering the Possible is ourcommitment to put technology andexpertise to work where it can do themost good for people and the planet.Guided by our values and inspired by our purpose, we take action tostrengthen our communities, benefit the environment, and engage ourpeople in a diverse and inclusive workforce. Programs and initiativesin these three action areas fuel our efforts to power what’s possible,helping to achieve social and environmental progress.
  4. 4. FY13 Corporate Responsibility Summary ReportLetter from Trisa Thompson | 4At Dell, we are building a strong foundation for sustainability — one that allows us to succeed asa business while encouraging positive change and reducing our own environmental impact. As apurveyor of technology, we are also committed to empowering our customers to do the same.Last year, we launched our commitment to Powering the Possible, a holistic corporateresponsibility platform pledging to put our technology and expertise to work where it cando the most good for people and the planet. For the past year, we’ve been working on along-term corporate responsibility plan that builds upon that platform, encompassing ourstakeholder relationships and impacts across the entire value chain.Today we are sharing the highlights of our FY13 work across our corporate responsibilityaction areas. This report will feel lighter and shorter than previous ones, due to the factthat later this year we will publish a more comprehensive, forward-looking report. In it, wewill launch a framework of 2020 goals across our corporate responsibility focus areas: theenvironment, communities and our people. These goals will present a cohesive, ambitiousroadmap for what our company will look like by the end of this decade, and for how all partsof our value chain roll up to our larger corporate responsibility vision. We remain committed toa transparent and comprehensive reporting approach, an integral part of the rich dialogue wehave with stakeholders.We already have a strong base to build upon. We’ve developed a robust strategic givingprogram through enduring partner relationships, as well as a wide-reaching global recyclingprogram and a truly innovative support system for our team members. Though we’re defininggoals for the future, Dell continues to build on past commitments to deliver on our multiyearobjectives. For example, we achieved our long-term recycling goal — to collect 1 billionpounds of e-waste — a full year ahead of schedule.Moving forward, we have the exciting opportunity to continue working with suppliers andcustomers to make the production and use of IT more efficient, as well as to leverage thepower of IT to address other areas of our customers’ operations. We also recognize thatmeeting our corporate responsibility commitments requires strong, continuous focus in areasof challenge. Even with all the right intentions, making progress is not easy. We feel proud ofwhat we’ve achieved, but certainly acknowledge that much remains to be done, especially aseasy improvements like lighting retrofits are behind us. This is particularly evident in our supplychain, where effective supplier standards cannot be established by just one company. For thisreason, Dell recognizes that stakeholder and industry engagement promotes better standards.Powering the Possible is not just our platform, it is our inspiration. At Dell, we are committedto catalyzing the best of what we do and who we are to facilitate the progress we hope to see.We truly strive to put our technology and expertise to work where it can do the most good forpeople and the planet.Trisa ThompsonVP, Corporate ResponsibilityDell Inc.Letter from Trisa Thompson
  5. 5. FY13 Corporate Responsibility Summary ReportFY13 Challenges and opportunities | 5FY13 Challenges and opportunitiesDell is a member of the global technology industry, which has connected the world in incredible ways.Now a colleague across the world can feel as familiar as one across town. As we work more closely withpartners, suppliers and industry peers worldwide, we discover that we all want the same things — a positive workenvironment, a strong community and a healthy planet. And we know that in an increasingly flat world, we mustcollaborate to achieve these inter-related goals. However, our approaches often vary widely depending on ourcultures, our resources and the regulatory environments in which we operate.In FY13, achieving harmonization and collaboration across a diverse group of stakeholders during a time oforganizational change continued to be our greatest challenge to meeting our corporate responsibility goals.Achieving consistencyAs both a supplier and a customer in the technology industry, Dell has a robust process to understand how thechemicals and materials used inside our products and during our manufacturing processes affect humans, plantsand animals. Materials usage laws and regulations differ around the world, and suppliers’ levels of transparency andaccountability can also vary.In FY13, we continued to strengthen accountability among our supplier base, but the industry needs consistentapproaches to prioritizing materials and impacts. We will outline our planned efforts in this area — which will requirecollaboration among industry leaders, academia, nongovernmental organizations (NGOs), governments, customersand suppliers — in our upcoming 2020 goals framework.Creating global sustainability metricsSustainability measurement is still evolving. Some aspects, like the link between energy consumption and climateimpacts or the effects of electronics waste on the environment and human health, are beginning to be understood.However, to effect change, we must be able to consistently measure the full environmental impact of our productsthroughout their entire lifecycle. Understanding the interplay of system processes and measuring the right operationalimpacts will again require a collaborative approach across many industries.Driving standards across complex supply chainsDell’s suppliers and partners are a direct extension of our own impacts and responsibility. While we havecomprehensive systems to align suppliers’ standards with our own, customers are demanding more informationabout our suppliers’ activities. We are more transparent about our supply chain but recognize there is more wecan do. This includes revisiting what information we are able to share. We know customers and investors use suchinformation to make buying decisions and NGOs hold companies publicly accountable to the actions of their entiresupply chain. Our 2020 goals framework will reflect the need to work industry-wide to drive standards, metrics andconsistent reporting systems across our supply chain. Only then can we fully measure and manage the impact of ourproducts and services.Leveraging diverse groups to promote positive changeAs we work to strengthen our communities and the environment, Dell’s greatest asset is our diverse workforce, whichmirrors the marketplace we serve. Our key challenge lies in fostering an inclusive, innovative culture while successfullyintegrating new Dell team members who join the company through our acquisitions. In addition to training andmentoring, volunteerism continues to be a uniting force. We will continue encouraging team members to lend theirunique skills to our community initiatives, while also developing stronger impact measurements that show us all howwe’re making a difference.
  6. 6. FY13 Corporate Responsibility Summary ReportFY13 Progress to goals and commitments | 6AchievedFY13 Progress to goals and commitmentsAchieve our goal of offering EPEAT®-registered models (in the U.S. and Canada) forall newly launching Dell commercial end-user computing products by the close of FY13*Reduce global greenhouse gas emissions per dollar of revenue by 15% (2007-2012)Reduce worldwide facilities’ greenhouse gas emissions by 40% by 2015All newly introduced Dell personal computing products will be BFR-, CFR- and PVC-free** asthe industry identifies acceptable alternatives that lower product health and environmentalimpacts without compromising product performanceIncrease Dell electronics takeback volume totals to a worldwidecumulative 1 billion pounds of collected equipment by 2014Launch responsible recycling infrastructure and complianceprograms in Brazil, Australia, China and Africa — our FY13 focus areasPromote and foster team member volunteering to achieve 500,000 volunteer hours in FY13Provide technology access and drive learning outcomes for underservedstudents in information and communications technology skillsMove the Dell Social Innovation Challenge from an annual competition to becomethe year-round community for university-level social entrepreneurs to engage, learn and thriveUse high-performance computing, cloud technology and genomics to advance thescience of personalized medicine and identify targeted treatments for children with cancerLaunch pilot education program to train people managers on ethical leadership and decision makingIn FY13, Dell will launch its first global online education modulethat fosters appreciation of team member cultural differencesStrengthen engagement with stakeholders by formally adding an SRI Roadshowto the FY13 event plan and increase transparency around our supply chainConduct at least 50 third-party validated audits at oursupplier facilities, doubling our goal stated in FY12Launch new information lifecycle management policy and training to help team members identifyconfidential information and learn the proper steps for protecting, managing and disposing of it* Does not include Dell Wyse products (Wyse acquired after goal was set)** Dell will adopt the BFR/CFR/PVC-free definition as set forth in the iNEMI Position Statement on the Definition of ‘Low-Halogen’ Electronics (BFR/CFR/PVC-free).Plastic parts contain <1,000 ppm (0.1 percent) of bromine (if the Br source is from BFRs) and <1,000 ppm (0.1 percent) of chlorine if the Cl source is from CFRs,PVC or PVC copolymers. All printed circuit board (PCB) and substrate laminates contain bromine/chlorine totaling less than 1,500 ppm (0.15 percent), with maximumchlorine of 900 ppm (0.09 percent) and maximum bromine of 900 ppm (0.09 percent). Service parts after purchase may not be BFR/CFR/PVC-free.AchievedAchievedAchievedAchievedAchievedAchievedIn progressNot achievedNot achievedIn progressIn progressIn progressIn progressIn progressEach year, Dell provides a snapshot of the current progress to previously stated goals. With this year’ssummary report, we are highlighting various goals material to the past 12 months, including an updateon progress. A complete listing with status is available at our website.
  7. 7. FY13 Corporate Responsibility Summary ReportBy the numbers | 7Unit of measure FY11 FY12 FY13 CommentsEnvironmentBFR = Brominated Flame Retardant CO2e = CO2 equivalent GHG = Greenhouse gas MTCO2e = Metric tons CO2 equivalent PCW = Post-consumer wasteProcess hazardous airpollutants generatedMetric tons — — — Very low or noneVolatile organic compound(VOC) emissionsMetric tons 3.6 13.0 11.9 —Scope 1 GHG emissions Metric tons 33,675 38,569 38,738 Direct emissionsScope 2 GHG emissions Metric tons 390,271 395,360 407,556 Before subtraction for green electricity purchasesScope 2 net GHG emissions Metric tons 322,596 326,778 322,898 After subtraction for green electricity purchasesScope 1 + 2 net emissions Metric tons 356,322 365,347 361,636 —Scope 3 GHG emissions Metric tons 112,679 98,407 75,189 Global business air travel onlyScope 3 travel per employee CO2e/employee 1.09 0.90 0.68 —GHG emissions intensity Metric tons/million $ revenue6.89 6.99 7.84 Calculated from Scope 1 + Scope 2total GHG emissionsGHG emissions intensity (net) Metric tons/million $ revenue5.79 5.89 6.35 Calculated from Scope 1 net + Scope 2 nettotal GHG emissionsElectricity consumed (total) Million kilowatt-hours (kWh)662.7 672.8 709.7 All electricity purchased or generated on-siteGreen electricity consumed Million kWh 128.2 129.6 160.5 Green electricity purchased from suppliers orgenerated on-siteOther energy consumed Million kWh 140.1 135.3 149.3 Liquid and gas fuels used in buildings and vehiclesTotal energy consumed Million kWh 802.8 808.1 859.1 —% of Green electricity Percentage 19.3 19.3 22.6 Percentage of total electricity consumedProcess wastewater generated Cubic meters — — — No industrial wastewater from Dell operationsHazardous waste generated Metric tons — — — Not reported — very low or noneNonhazardous waste generated Metric tons 32,095 17,302 14,293 Manufacturing and fulfillment facilitiesWaste recycling and reuse rate Percentage 95.2 98.0 96.1 Manufacturing and fulfillment facilities; data includesa small amount (<4%) incinerated for energy recoveryOffice copy paper Percentage PCWrecycled content100 52 75 Now includes more sites in Europe, Middle East andAfrica (EMEA); U.S. sites still at 100%; much of AsiaPacific-Japan and all of Latin America not includedDirect marketing paper Percentage PCWrecycled content43 35 36 Total across all regions; FY12 and FY13 showall paper used for direct marketing, FY11 wascatalog onlyDell catalog fiberfrom Forest StewardshipCouncil-certified sourcesPercentage 77 86 93 FY12 and FY13 show all direct marketing paper,FY11 was catalog onlyWater consumption (total) Cubic meters(1,000s)1,952 2,262 1,979 Includes manufacturing and other locations globallywhere water usage is measured (approximately 78%of total building space)Water intensity Cubic metersper m2of buildingspace1.15 1.33 1.42 —Sustainable operationsBy the numbers********** FY12 figures adjusted to reflect more complete data
  8. 8. FY13 Corporate Responsibility Summary ReportBy the numbers | 8GHG emissions reductionthrough improved productperformance andpreconfigured systemswith Energy Smartoperational settingsMillion tons 23.88 26.88 29.80 —Packaging reduction Million pounds 6.0 5.9 5.3 —Curbside recyclability ofpackaging componentsPercentage 53.0 70.0 76.1 —Sustainable contentin cushioning andcorrugated packagingPercentage 33.3 39.8 42.0 —Expansion of free Dell-branded electronicstakeback programNumber oflocations78 79 78 FY12 overstated by oneAudits of Tier 1environmental partnersNumber ofaudits65 91 76 Consolidated the numberof partners we useWorldwide cumulativeelectronics takebackvolume totalsMillion kilograms 288.1 375.5 459.5 Equivalent to more than 1,013,000,000lbs., exceeding our 1 billion-pound goalUnit of measureUnit of measureFY11FY11FY12FY12FY13FY13CommentsCommentsProduct andpackaging stewardshipGlobal recyclingTeam member volunteers Percentage 21 41 56 —Children impacted throughgiving programsNumber ofchildrenin millions2.0 2.7 3.0 Number of childrenin millions to dateCharitable giving aspercentage of pre-tax profitPercentage 1.04 1.04 1.37 Calculated based onprior 3-year averageTotal cash contributions Millions of U.S.dollars31.0 33.4 34.5 —Total product contributions Millions of U.S.dollars4.2 10.7 9.2 —Communities
  9. 9. FY13 Corporate Responsibility Summary ReportBy the numbers | 9Tier 1 suppliersparticipating in CDPNumber ofTier 1 suppliersparticipating49 62 64 —Tier 1 suppliersattending workshopNumber ofsuppliers81 95 75 Number of suppliers, not attendeesSub-tier suppliersattending workshopNumber ofsuppliers60 15 25 Number of suppliers, not attendeesSupplier capabilitybuilding workshopsNumber ofmeetings2 2 1 Number of meetings heldSupplier stakeholderengagementsNumber ofsuppliersengaged78 80 114 Suppliers onlySupplier audits Number oftotal audits119 125 133 —Diverse supplier spending Billions of U.S.dollars3.04 2.93 3.44 Requalified for Billion Dollar RoundtableSupply ChainWomen on the board of directors Percentage 8 15 15 —Women team members Percentage 33 33 32 —Women managers Percentage 26 25 24 —People of color — board Percentage 16 15 15 —People of color — team members Percentage 29 29 29 —People of color — managers Percentage 19 20 21 —Employee ResourceGroup (ERG) participationPercentage 5 10 10 More than 10,000 teammembers are engaged inone or more ERGs globallyEmployee ResourceGroup locationsNumber oflocations49 65 95 —Human Rights CampaignCorporate Equality Index scoreScoring between1 and 100100 100 100 Maintained perfect score onmeasures regarding Dell’scommitment to an inclusiveworkplace for lesbian, gay, bisexualand transgender team membersRecordable injury/illness rate Cases per 100Full-TimeEquivalents (FTEs)0.22 0.16 0.14 Data is for calendar years 2010,2011 and 2012Days Away, Restricted, andTransferred (DART) rateCases per 100(FTEs)0.14 0.08 0.07 Data is for calendar years 2010,2011 and 2012Work-related fatalities Number 0 0 0 Data is for calendar years 2010,2011 and 2012PeopleOccupational health and safety metricsUnit of measureUnit of measureFY11FY11FY12FY12FY13FY13CommentsComments
  10. 10. FY13 Corporate Responsibility Summary ReportBy the numbers | 10Net revenue Millions ofU.S. dollars61,494 62,071 56,940 See Form 10-K reportfor more informationTeam members Number 103,000 109,400 111,300 —Corporate politicalcontributionsContributions None None None Even in jurisdictions wherepermissible, Dell does not makecorporate political contributions;learn more about our policy with the politicalcontribution evaluation criteriaused by the Center for PoliticalAccountabilityNumber of criteria 9/10 54/72 54/70 —Independent Audit Committee — Yes Yes Yes —Independent CompensationCommittee— Yes Yes Yes —Board meetings heldor scheduledNumber ofmeetings12 6 12 —Ongoing stakeholderengagementsNumber ofengagements5 5 8Code of Conduct training Percentage ofrequired teammembers whotook the training100 100 100 —Ethics Hotline Number of callsand online inquiries749 746 1,070 FY13 includes hotline and webform inquiries/cases loggedGovernanceUnit of measure FY11 FY12 FY13 Comments
  11. 11. FY13 Corporate Responsibility Summary ReportEnvironment | 11EnvironmentFrom product design to end-of-life recyclingand everything in between, we consider theenvironment at every stage of a product’s lifecycle.Our environmental programs and initiatives helpDell and our customers to reduce consumptionand minimize environmental impact.Designing for the EnvironmentWe design our products to have minimal environmentalimpact without sacrificing performance or reliability.Reducing our ImpactWe use resources responsibly, avoiding waste in all itsforms, and work with our supply chain to do the same.Green Packaging and ShippingThrough creative packaging design, innovative materials use andbetter logistics, we help businesses and homes reduce their waste.Customer UseOur technology solutions reduce the environmental impact ofcustomers’ IT while helping them achieve their sustainability goals.RecyclingOur easy, localized recycling programs help keepmore electronics out of landfills and personal stockpiles.
  12. 12. FY13 Corporate Responsibility Summary ReportEnvironment | 12FY13PerformancehighlightsEnvironmentDesigning for the EnvironmentImproving material useAt Dell, our goal is to help customers put technology to work in ways that help the planet —such as powering smart grids and efficient data centers — while minimizing the environmentalimpact of our own products and operations. To tackle these challenges, we draw upon a deeplyembedded culture of innovation and environmental stewardship, optimizing each phase of ourproducts’ lifecycles.FY13 was a year of achieving long-term goals such as collecting 1 billion pounds of e-waste andmeeting our packaging reduction commitments. It was also a year for setting higher standards inthe industry, as we were among the first to introduce EPEAT®-registered printers. From reducinggreenhouse gas emissions to building global recycling networks, the challenges we face are greatbut our commitment is even greater.Dell continued to close the recycling loop by using 7.8million pounds (3,542,556 kg) of recycled-contentplastics in flat-panel monitors and OptiPlex desktops —an increase of 6 percent over FY12.Collecting materials is only one part of the recyclingequation: it takes using recycled content to begin to closethe loop. In both our flat-panel monitors and OptiPlexdesktops, we use recycled-content plastic from sourcessuch as beverage bottles and CD cases to create the plastichousing of desktops and backing of monitors.The 7.8 million pounds of recycled-content plasticwe used last year is the equivalent of approximately93.7 million 1-liter plastic water bottles — roughly thesame in weight as 50 space shuttles.Beyond the use of recycled-content plastics, we continueto apply our stringent chemical use policy and follow theprecautionary principle. As such, we remain committedto seeking industry-wide solutions for eliminating the useof brominated flame retardants (BFRs), chlorinated flameretardants (CFRs) and polyvinyl chloride (PVC) — an effortwe continue to work toward proactively. All XPS laptopproducts, including our award-winning XPS 12, are BFR-,CFR- and PVC-free.93,720,000 bottleslined up end-to-endis 24,836 kilometers,which equals over twotimes the circumferenceof the moon.=7.8 million lbs. or93,720,000 bottlesrecycled into monitorsand OptiPlex desktopsincreasein FY13comparedto FY122X6%
  13. 13. FY13 Corporate Responsibility Summary ReportEnvironment | 13To further drive harmonization among voluntaryenvironmental standards in the industry, Dell collaboratedwith EPEAT®to create an imaging products category fortheir registry. We also began registering products withEPEAT in four new countries.Managed by the nonprofit Green Electronics Council(GEC), EPEAT provides a comprehensive, multi-stakeholderdeveloped standard for customers to compare productsbased on environmental qualities. The worldwide registryis used as an environmental procurement requirement bylarge public and private institutions.We worked with GEC and a multi-stakeholder group aspart of the Institute of Electrical and Electronic Engineers(IEEE) 1680.2 Work Group that developed a green ratingsystem for printers, scanners and copiers. We now offermany EPEAT-registered printer products in the U.S.We also offer approximately 200 other EPEAT-registeredcommercial and consumer products in the U.S. We areregistered with EPEAT in eight additional countries —including Japan, Mexico, Switzerland and the UnitedKingdom, which were added this year. Additionally, webegan collaborating with GEC and industry stakeholdersto expand EPEAT categories to include servers in futureupdates. We apply the same design standards to many ofour products that, to date, we cannot register, includingour XPS 10 and Latitude 10 tablets (classified as slates bythe U.S. Environmental Protection Agency (EPA)).This work occurred alongside our ongoingcollaboration with the EPA’s ENERGY STAR program,helping develop new standards for everything fromtablets to the data center (servers, storage andnetworking) that enable customers to easily identify themost energy-efficient products.Designing for the EnvironmentSupporting green procurement programsSixteen Dell facilities were purchasing 100 percentof their electricity needs from renewable sourcessuch as wind, water and solar by the end of FY13 —up from seven facilities in FY12. Four other facilitiespurchased at least some portion of their electricityfrom renewably generated sources. This includesour headquarters in Round Rock, Texas, which haspurchased 100 percent renewable electricity since 2007.Our global renewable electricity purchases in FY13totaled 160,451 MWh, or 22.6 percent of our totalconsumption (mostly through contracts with localutilities and some on-site generation; Dell does notpurchase renewable energy credits on the openmarket). In the U.S., we continued to qualify as a Top50 National Purchaser in the U.S. EPA’s Green PowerPartnership program, as we have since July 2008.Dell furthered its commitment to finding alternative energysources by doubling the number of facilities that purchase100 percent of their electricity from renewable sources.Reducing our ImpactCutting resource use, finding alternatives
  14. 14. FY13 Corporate Responsibility Summary ReportEnvironment | 14In terms of Dell’s own operations, FY13 was a mixedyear: business acquisitions brought increased emissions,tempered by some notable efficiencies.In FY13, year-over-year Scope 1 emissions increasedslightly, in part due to business acquisitions. Recent Dellacquisitions (including those from FY12 in their first fullyear, plus FY13 acquisitions) came with energy-intensiveresearch and development activities that have led to higherelectricity usage.Our net Scope 2 emissions decreased by 1.2 percentdue in part to additional renewable energy purchases.Reducing our ImpactManaging our emissionsWe achieved the last of our long-term packaging goals, which was tomake more than 75 percent of desktop and laptop packaging materialrecyclable at curbside or compostable.This “curb” goal (met early in FY13) was the third of our 3Cs packaginggoals. It is designed to help customers by making packaging of desktopsand laptops easier to recycle. In late FY12, we also surpassed our “cube”goal of reducing desktop and laptop packaging volume by 12.1 percent, aswell as our “content” goal of increasing the amount of recycled packagingcontent we use by 40 percent.The strategy behind these packaging goals remains in place, including theuse of innovative, renewable materials like the bamboo and mushrooms inour cushioning. In FY13, we further reduced packaging volume by replacingrigid boxes with envelopes for shipments of more than 500 items such assoftware and cables. Used in Europe, North America and Asia, the movereduced packaging weight for these shipments by 73 percent.Green Packaging and ShippingImproving packaging recyclabilityHowever, our acquisitions, combined with theincreased role of data and technology centers inour shifting business model and a year of decreasedrevenues, resulted in missing our 5-year goal of a 15percent reduction in net emissions intensity. At the endof FY13, our net emissions intensity was 10.8 percentlower than in FY08 (unadjusted basis).We continue to work toward better measurement ofScope 3 emissions in multiple categories. Our Scope 3(indirect) emissions associated with business air traveldecreased approximately 24 percent from FY12 asa result of reduced travel, made possible in part byincreased use of conference call technology.0.68 MTCO2e/employeeof total electricityconsumptionmet throughrenewableelectricitypurchasesor on-siterenewablegenerationScope 3 travel emissionsper employee reduced 24%from FY12FY12 GHG data was adjustedto reflect more complete data22.6%Scope 1+2net emissionsin MTCO2eFY13:356,322365,347*361,636FY11FY12FY13*
  15. 15. FY13 Corporate Responsibility Summary ReportEnvironment | 15Customer UseHelping customers reduce environmental impactIn FY13, Dell continued to provide customers with solutionsthat delivered results while minimizing environmental impactin the form of greater energy efficiency, reduced energy useand even qualifications for sustainable operations.In some cases, Dell end-to-end solutions radicallychange the way a customer operates, and their newfoundefficiency helps them recognize environmental savings. Forour customer Amerijet®, a Florida-based cargo shippingcompany, we delivered a new data center, complete withnew blades, storage, networking, software and more. Thissolution helped them cut facilities operational costs by 60percent while achieving a 96 percent reduction in the timeneeded to print manifests and close flights — turning theirIT into a business enabler. The improved energy efficiencyalso helped cut associated emissions. By virtualizing theirservers, Amerijet also reduced the space needed for theirIT equipment, enabling the company to grow in the futurewithout taking on a larger physical space.We also continued to deliver tools to help customersmanage their resources efficiently. Two studies fromPrincipled Technologies®conducted in September andOctober 2012 showed that Dell OpenManage PowerCenter, when used to manage a Dell PowerEdge R720server, provided more precise power limiting than the testedcompetitors. The difference between actual power usedby the Dell equipment and the power limit researchersset was 2 percent or less. The smaller gap allowsadministrators to maximize the number of serversin a data center’s total power capacity. Customerscan save money by increasing data center densityin this way. Both reports also demonstrated thatOpenManage Power Center achieved a greaterperformance per watt and supported higher workingtemperatures than the competitors. This helpedillustrate the Fresh Air capabilities of our latestgeneration of PowerEdge servers, which are warrantedto operate at higher temperatures.Dell’s acquisition of Wyse last year also provided uswith a new resource for delivering energy savings increative ways. For example, the College of BusinessAdministration at the University of Nebraska-Omahawanted to improve students’ access to technology whileachieving the college’s goal of earning Leadership inEnergy and Environmental Design (LEED) certificationfor their new building. By turning to desktopvirtualization and Dell Wyse thin clients, the universitywas able to deploy and manage twice as manycomputers with the same staff. They also used 93percent less energy than the computers they replaced,and are projected to save $125,000 over the next fiveyears. The energy savings helped the university earnGold LEED status for the building.
  16. 16. FY13 Corporate Responsibility Summary ReportEnvironment | 16Environment | 16Our global recycling optionsDell’s goal is to offer safe, responsible recycling solutions to all of our customersglobally. We were the first in the industry to ban the export of non-workingelectronics and e-waste to developing countries and we work hard to developconvenient technology recycling programs available to communities worldwide.Free Consumer RecyclingWe have partnered with shipping companies to providefree mail-back recycling of Dell-branded electronicsequipment.Asset Resale and Recycling ServicesFor our business customers, the Asset Resale andRecycling Services provide the logistical and disposalcapabilities to recover and dispose of owned and/or leasedequipment in a secure and environmentally safe way.Printer Supplies RecyclingWe make it easy for consumers and businesses torecycle toner and ink cartridges by offering free optionsfor single, bulk box or pallet returns.Dell ReconnectThrough the Dell Reconnect program (a Dell and Goodwill®partnership), customers can recycle any brand of computerequipment, in any condition, for free at one of the more than2,000 participating Goodwill locations.National Cristina FoundationThrough our longstanding partnership with the NationalCristina Foundation™, it is easy for customers to donate usedcomputers, software and peripherals.CamaraOur partnership with Camara allows customers’donated technology to be used for improvingeducation and livelihood skills in disadvantagedcommunities around the world.79 countries44 countries51 countriesU.S. & CanadaU.S. & CanadaIreland & HaitiFY13 Corporate Responsibility Summary Report
  17. 17. FY13 Corporate Responsibility Summary ReportEnvironment | 17Dell achieved our long-term recycling goal — to collect1 billion pounds of e-waste — a full year ahead of schedule.In FY13 we recycled more than 170 million pounds(77,497,028 kg) of electronics globally, putting us pastthe 1 billion pound takeback goal we set in 2008. Thiscumulative total — roughly the equivalent of 46 millionaverage desktops — would fill London’s Royal Albert Hallmore than twice over.During the past five years we’ve worked toward achievingour target by making it easy for customers to recyclewith Dell, increasing the types of items we recycle andensuring we offer recycling in markets where we sell.Each move into a new country brings unique, recycling-related infrastructure challenges, legislative requirementsand cultural norms, which we navigate by working withlocal governments and stakeholders.RecyclingReaching an electronics recycling milestonewould fill Royal Albert Hall more than twice over.The volume of the auditorium is slightly morethan 3 million cubic feet.46 million average desktops2x
  18. 18. Environment | 18FY13 Corporate Responsibility Summary ReportEnvironment: Global HighlightsAchievements & recognitionUnited States#4 on Newsweek’sGreenest Companies in the U.S.Received City of Planos 2012Environmental Excellence Awardfor our composting program inPlano, Texas, which divertedmore than 20 tons of wastefrom landfills in FY13Expanded electronics takebackrecycling programsLatin AmericaLaunched Asset Resaleand Recycling Servicein Colombia and MexicoLaunched Printer SuppliesRecycling programAdded Dell products to theEPEAT registry in MexicoCanadaLaunched Printer SuppliesRecycling programExpanded regulated recyclingservices in British Columbia,Quebec and ManitobaJapanReceived Minister of theEnvironment Award forrecycling used ink cartridgesAdded Dell products to theEPEAT registry in JapanAustraliaBecame a founding member ofAustralia and New ZealandRecycling Platform (ANZRP)arrangement and signatory to theAustralian Packaging CovenantExpanded electonics takebackrecycling programsEuropeReceived Green ITs 2012Green IT Award forManufacturer of the YearAdded Dell products to theEPEAT®registry in the UnitedKingdom and SwitzerlandExplore morerecognitions with EuroVAprintprinter industry consortiumto set more ambitiousenergy efficiency goals forprinter productsRe-launched an enhancedPrinter Supplies RecyclingprogramChinaExpanded electonics takebackrecycling programs in Dell Carry-InService Centers nationwideIndiaAward RecyclingGreen Packaging and ShippingDesigning for the Environment Reducing our Impact
  19. 19. FY13 Corporate Responsibility Summary ReportCommunities | 19Working with community and nonprofit organizations,we go beyond funding to apply technology, expertiseand volunteerism toward solving pressing socialchallenges. Together we create comprehensive,long-term programs that transformthe communities we serve.Children’s Cancer CareWe design technology solutions to help our research partners accelerate treatmentsfor pediatric cancer, and also offer support to patients’ families.Youth LearningWe work with community and nonprofit organizations to close thelearning gap for millions of youth lacking technology education access.Disaster ReliefOur technology and expertise power critical, widespread disaster response, and ourcompassion and giving bring local relief.Social EntrepreneurshipWe provide the world’s university students with mentoring, connections andfunding needed to put their ideas for solving social problems into action.Community ServiceWe empower our team members to use their unique skills and expertise to supportthe causes they are most passionate about.Communities
  20. 20. FY13 Corporate Responsibility Summary ReportCommunities | 20FY13PerformancehighlightsCommunitiesChildren’s Cancer CareTime-saving technologyWhen it comes to solving some of the world’s most pressing social issues, Dell believes we can dothe most good by leveraging our technology, resources and know-how. We’ve combined theseassets to develop thoughtful giving initiatives focused on youth learning, children’s cancer care,social entrepreneurship and disaster relief, and we have cultivated deep, long-term relationshipswith nonprofit organizations in each area.FY13 was all about amplifying our community programs using the strategies and technologysolutions we created with our partners over the past few years. From dramatically improving theprocessing time of pediatric cancer patients’ genetic data, to driving paradigm shifts in disasterrelief response, to engaging a record number of Dell team members in volunteerism, this was trulya year of transforming the way we empower communities.Using Dell high-performance computing, pediatric cancerresearchers can now compress the time it takes to analyzea patient’s molecular data from 10 days to six hours.Translational Genomics Research Institute®(TGen) is oneof our core partners in the world’s first FDA-approvedpersonalized medicine trial for pediatric cancer. Thebig data involved in such trials leads to long analysistimes as well as repeated exchanges among multipleexperts to make sense of the data. Together with TGen,the Van Andel Institute®and the Neuroblastoma andMedulloblastoma Translational Research Consortium,our goal is to accelerate cancer genome analysisand enable teams of scientists and doctors to moreeasily share and apply that molecular information topersonalize each child’s cancer treatment.This year, Dell experts worked closely with TGen todeliver a high-performance computing solution forgenomic research. By optimizing Dell hardware andsoftware applications, we’ve significantly acceleratedthe time it takes to analyze and process a patient’smolecular data.We also delivered the TGen-Dell KIDS Cloud, whichstores huge amounts of critical clinical and molecularpatient information and enables professionals acrossthe world to collaborate on targeted care strategiesusing that information. It will also allow them to accesscollective clinical experience and outcomes to refinefuture treatments.
  21. 21. FY13 Corporate Responsibility Summary ReportCommunities | 21From months toa matter of hours...Through our multimillion dollar, multiyearcommitment of technology solutions andteam member volunteerism, Dell’s Children’sCancer Care initiatives help empower clinicalresearchers and doctors around the world.Communities | 21Analyze & storeBy optimizing our high-performancecomputing, we enabled researchersto analyze and store massive amountsof genetic data more quickly than everbefore. Each patient has around 30terabytes of data — the equivalent of30 million books.Shortening time to treatmentWe developed a deeper understandingof the obstacles our children’s cancercare partners face during the processof developing treatments. We usedthese insights to strategically optimizethe hardware and software of ourdonated high-performance computingsolution. As a result, our researchpartners can now compress the time ittakes to analyze a patient’s moleculardata from 10 days to six hours.Map & matchWe also delivered a cloud solution thatmakes it much easier and faster formedical professionals to map tumorcharacterizations to the treatmentdatabase. This means children’s doctorscan then start care plans sooner.HoursMonthsTreatAnalyze& storeMap & matchRefine Diagnose & collectCloud technologyComputation & collaborationAccess &computeFY13 Corporate Responsibility Summary Report
  22. 22. FY13 Corporate Responsibility Summary ReportCommunities | 22Dell provided technology access and educationalopportunities to nonprofit partners in 15 countries,who work with more than 5 million people inunderserved communities.We expanded our Youth Learning initiatives into four newcountries — Ireland, Nigeria, the Philippines and Singapore —bringing greater technology access to a total of 15 countriesand more than 2,600 community locations worldwide.We directly reached 304,000 youths and trained morethan 11,000 educators by working with local charities todevelop technology education programs that help closethe learning gap.Also in FY13, our technology donations to theseprograms had a halo effect, as an additional 1.3million students and 4 million people in surroundingcommunities had access to the systems for theirown learning.Overall, we engaged with 68 Youth Learning partnersaround the globe, including the Girls Scouts of theUSA, Agastya International Foundation in India, andAction for Children in the United Kingdom. Thepartner programs we support range from mobilescience labs serving remote areas to information andcommunication technology skills training for childrenin need.Youth LearningPartnering to grow global learning opportunitiesThe Red Cross successfully activated DigiDOC duringHurricane Sandy, Hurricane Isaac and severaltornadoes and wildfires in 2012. During HurricaneSandy alone, the Red Cross tracked more than 2million posts.Dell technology enables DigiDOC to aggregate vastamounts of social media data and make it actionable.Responders can now use Twitter, Facebook and otherchannels to:• Dispatch vital emergency information quicklyto large audiences.• Analyze community trends, such as blockedroadways or massive clean-up efforts, and adjustservice delivery accordingly.• Provide one-on-one support to people whoare scared and suffering.Dell enabled the American Red Cross to fundamentallychange their disaster response by launching the Red CrossDigital Operations Center (DigiDOC), the world’s first socialmedia command center for humanitarian aid.We donated DigiDOC’s technology and worked with theRed Cross to create a social media training program forstaff and volunteers based on our own successful modelof engaging customers via social media.Disaster ReliefDelivering a digital lifeline
  23. 23. FY13 Corporate Responsibility Summary ReportCommunities | 23The Dell Social Innovation Challenge (DSIC) engagedmore of the world’s student social entrepreneurs byexpanding our university partner program to a totalof 817 schools globally.The DSIC continued its positive growth by providingyoung social entrepreneurs with the mentorship, training,connections and prize money needed to put their ideasinto action. In conjunction with The University of Texas atAustin, we invited university students to submit their nonprofitand for-profit innovations for solving the world’s mostpressing issues — such as environmental sustainability,poverty, education, health and women’s rights.Students from 105 countries submitted 1,570innovations. Increased marketing outreach alsoattracted more than 250,000 students, educators andinvestors to join the DSIC global online community Community members discussedstudents’ innovations, shared best practices, madevaluable business connections and advanced ideas.More than 750 Dell team members served as judgesand mentors, volunteering over 2,100 hours to helpstudents refine their projects.The DSIC’s 2012 grand prize winner, Essmart,received $50,000 to bring solar lighting, waterfiltration, clean-burning stoves and other essentialtechnologies to rural India.Social EntrepreneurshipEmpowering today’s big thinkersDell launched the Dell Education Challenge, a new competition focusedon finding solutions to today’s biggest challenges in K-12 education.To encourage student social innovators to share and advance theirideas with the global DSIC community year-round, we launched theDell Education Challenge as a spotlight challenge complementing thelarger $50,000 grand prize competition.Students from around the world submitted more than 400 projects,which addressed issues ranging from training teachers to educatingchildren living in slums.Social EntrepreneurshipExpanding opportunities for studentscountries represented bysubmitted projects; onlinecommunity grew to 250K1,570student innovationssubmittedmentoring hours served by over750 Dell team members to helpstudents refine their projects2,100105countries represented bysubmitted projects; onlinecommunity grew to 250K1,570student innovationssubmittedmentoring hours served by over750 Dell team members to helpstudents refine their projects2,100105countries represented bysubmitted projects; onlinecommunity grew to 250K1,570student innovationssubmittedmentoring hours served by over750 Dell team members to helpstudents refine their projects2,100105
  24. 24. FY13 Corporate Responsibility Summary ReportCommunities | 24Dell team members spent 707,000 hours volunteering,totally shattering our company goal of 500,000 hoursand marking a three-fold increase in volunteerismsince 2010.That increase resulted from more people pitching in —56 percent of our global team members volunteeredthis year, up from 41 percent in FY12. It also came fromdeeper regional support for volunteerism. Asia Pacific-Japan had the highest participation rate with 69 percentof team members volunteering, followed by LatinAmerica at 58 percent. Europe, Middle East and Africadoubled its participation rate over the prior year.We also grew our network of Dell Champions —local team member community service leaders ofvolunteerism — from 600 to 800 worldwide, andintroduced Regional Giving Councils, which allowleaders to share community service best practices.Additionally, we added skills-based volunteer matchingto our internal, online Powering the Possible Portal.This enables team members to find volunteeropportunities that utilize their unique skills, fromplanning events to installing equipment. The portalalso allows team members to share photos and resultsfrom volunteer events, which helps keep othersengaged in community service.Community ServiceRecord increase in volunteerismx3 increaseover 2010707,000 hours15% increasein employeeparticipation800 ambassadors=707,000volunteerhours56% teammemberparticipation800 communityservice leaders
  25. 25. Communities | 25Communities: Global HighlightsAchievements & recognitionNorth AmericaTeam members volunteered334,990 hours, the highest totalof any Dell regionEurope, Middle Eastand AfricaDoubled number ofemployee volunteerhours from 47K inFY12 to 93K in FY13United StatesNamed ComputerworldHonors Laureate forEmerging Technologyfor our support of Children’sCancer ResearchIndia#10 on FORTUNEIndias Top 50 MostAdmired CompaniesCanadaChina#7 on FORTUNE ChinasTop 100 Most ResponsibleCompaniesReceived the China CharityAward, the top governmentalhonor for charity from theMinistry of Civil AffairsIrelandReceived Chambers Ireland CSRAwards for Excellence in Communityfor volunteerism and Excellence inCommunication for support ofDaffodil DayAsia Pacific-JapanAchieved highest volunteerismrate of any Dell region, with 69%of team members participatingAfricaImpumelelo named Dell one of SouthAfricas Top Empowered CompaniesNamed one of the Top50 Socially ResponsibleCorporations in Canadaby Jantzi-SustainalyticsExplore morerecognitions Learning Community ServiceChildren’s Cancer CareAwardFY13 Corporate Responsibility Summary Report
  26. 26. FY13 Corporate Responsibility Summary ReportPeople | 26As a global company, it’s critical thatwe build strong, inclusive teams thatdraw upon diverse perspectives toeffectively collaborate on meetingour strategic goals. We continuallyinvest in worldwide programsand partnerships to attract,develop and retain talentedpeople who reflect ourdiverse marketplace.Workforce CommitmentWe believe a fully engaged workforce is a competitive advantage andwork to keep our people healthy, happy and committed to excellence.Diversity and InclusionWe focus on cultivating a diverse workforcethat is reflective of the global marketplace.Marketplace RelationshipsWe create mutually beneficial partnerships with organizationsthat advance marketplace, community and workplace diversity.Leadership and DevelopmentOur team members enjoy a vast array of programs to increaseskills in their current role and develop leadership skills for the future.People
  27. 27. FY13 Corporate Responsibility Summary ReportPeople | 27FY13PerformancehighlightsPeopleWorkforce CommitmentConnecting and collaboratingMirroring the global customer base we serve, our workforce is more diverse than ever before withnearly two-thirds of Dell team members working outside the U.S. It’s also increasingly mobile, asmore team members take advantage of our flexible work solutions. We believe that multiculturalteams with access to flexible work solutions are happier, more productive and more innovative —all traits that translate into competitive advantages for Dell.In FY13, we continued to invest in initiatives — both internal and external — that build a fullyengaged, inclusive workforce. This was a year where we creatively applied our technology towardprograms that connect team members, help them grow their careers and further our goal ofbeing an Employer of Choice. We’re extremely proud of our award-winning programs. Theinvestments we make in our team members are, and will always remain, an enduring priority at Dell.Dell increased investments in our Connected Workplace program, enabling1 in 5 global team members to work in some type of flexible capacity.We now offer Connected Workplace in 37 locations across 26 countries.Team members can choose from seven flexible work solutions includingwork-from-home and part-time work arrangements, variable daily worktimes and job sharing.The flexibility provided by Connected Workplace is a key driver of teammember engagement, as revealed by the annual Tell Dell survey. Theprogram also avoids an estimated 13 million kWh of energy, 6,785 metrictons of greenhouse gas emissions (as CO2e) and more than $14 million inannualized expenses.In addition, we expanded Dell’s global wellness initiatives in FY13. Weenhanced our services through our on-site wellness clinic locationsand began providing e-visits and online prescription refills. The GlobalEmployee Assistance Program also expanded to cover 60 countries,bringing work-life resources and tobacco cessation services to more than30,000 team members and their families.
  28. 28. FY13 Corporate Responsibility Summary ReportPeople | 28Diversity and InclusionProviding eye-opening experiencesDell’s new Appreciating Differences learning module reached more than60,000 team members.Appreciating Differences virtual training, which Dell developed andrefined using team member feedback and focus groups, encourages teammembers to challenge their perceptions of different cultures and considertheir everyday interactions with diverse colleagues.This is our first globally mandated diversity training for all Dell teammembers. We designed it to foster an environment of inclusion in which allteam members have the best possible opportunity to grow and thrive. Todate, more than 60,000 team members have taken the training, includingnew hires and team members from recently acquired companies.Dell grew Employee Resource Group(ERG) participation by 45 percentworldwide and received DiversityInc’stop award for corporate ERG programs.We now have 95 Dell ERG chaptersglobally, with more than 10,000team members engaged in one ormore groups. We added two newgroups – Planet, which focuses on theenvironment and sustainability efforts,and Virtus, which supports militaryinterests. Through our new onlineERG community, we are also makingit easier for team members to join DellERGs and form connections basedon shared ethnicity, gender, nationality, lifestyle orsexual orientation.Our ERG members connect not only for networkingand mentoring opportunities, but also to drivebusiness innovation by applying unique perspectivesto solve business challenges. For example, theTrue Ability ERG contributes to the developmentof products for customers with disabilities whileGenNext uses its youthful perspective to shape oursocial media vehicles.Citing such industry-leading activity as well as ourexecutive leaders’ support of ERGs, DiversityIncrecognized Dell as the 2012 Top Company forResource Groups.Diversity and InclusionSupporting a global workforceHispanic CommunityAsian CommunityBlack CommunityYoung ProfessionalsEnvironmentLGBT CommunityMilitary CommunityAbilities, Special NeedsGlobal Women
  29. 29. FY13 Corporate Responsibility Summary ReportPeople | 29People | 29Employee Resource Groups grow worldwideDell’s Employee Resource Groups (ERGs) connect team members who share common traits like ethnicity,gender, nationality, sexual orientation, interests, passions and hobbies. In FY13, more team membersthan ever took advantage of the valuable personal and professional development opportunities that ERGsprovide. DiversityInc recognized Dell as its 2012 Top Company for Resource Groups.45%growthsince FY1210,000team members95chapters globally45%gowt45%gowthsin14,000team members106chapters globallyxxcities14,000team members106chapters globallyxxcities1stDiversityIncs #1 company in global ERG strategy & impactDiversityInc’s#1 company in globalERG strategy & impact2 newERGs launchedFY13 Corporate Responsibility Summary Report
  30. 30. FY13 Corporate Responsibility Summary ReportPeople | 30Dell expanded support for women and under-representedgroups in the marketplace by deepening relationshipsthrough the Dell Women’s Entrepreneur Network (DWEN),Catalyst and other global and local groups.We hosted our third annual Dell Women’s EntrepreneurNetwork (DWEN) in New Delhi, India, connecting femalefounders, CEOs and leaders of high-growth companiesaround the world.We also helped create the Catalyst Research Center forCareer Pathways, which tracks never before studied trendsand demographics related to women’s careers in order tohelp researchers uncover why gender and achievementgaps exist and how they differ from country to country.This is part of Dell’s multiyear, $1 million commitmentto Catalyst, a leading nonprofit membership groupdedicated to expanding opportunities for womenin business.Additionally in FY13, we continued our supportof the Dell Thurmond Woodard Fellowship withthe United Negro College Fund, and we providedoutreach, sponsorship and in-kind donations to otherorganizations focused on the advancement of womenand minorities, including Asia Society, National UrbanLeague, Out and Equal Workplace Advocates, theHuman Rights Campaign and Tri-Caucus.Marketplace RelationshipsExpanding opportunitiesWe designed leadership trainings for entry-level leadersto executives, recognizing the importance of inspiringleaders and their role in enabling Dell’s strategy.In FY13 we launched a Foundations of Leadershipprogram for more than 1,000 new Dell leaders aswell as a new director program co-facilitated by Dellexecutives. We also introduced training for experiencedleaders and programs focused on diversity andinclusion. For executives, we launched the InspirationalLeader at Dell program.Additionally, we significantly expanded our existingLeadership Imperative learning experience to 90,000team members, up from 10,000 in FY12. This trainingseries guides team members through our businessstrategy and provides them with examples of leadersdemonstrating key behaviors required for Dell’ssuccess: collaboration, engagement and innovation.Dell introduced new leadership programs, which helped usachieve global reach and complete our development of anend-to-end learning experience at all levels.Leadership and DevelopmentDriving breakthrough thinking
  31. 31. People | 31FY13 Corporate Responsibility Summary ReportUnited States (cont.)Recognized as Platinum awardwinner of the Best Employers forHealthy Lifestyles by NationalBusiness Group on HealthHonored as DiversityInc’s 2012Top Company for Resource Groups#16 on Woman Engineermagazines Top 50 EmployersBrazil#5 on Best IT & TelecomCompanies to Work Forin Brazil by The Great Placeto Work Institute &Computerworld magazine#11 on Best BrazilianCompanies to Work Forby Época magazineUnited KingdomNamed one of The TimesTop 50 Employers for WomenReceived the AgileWorkplace Award fromOpportunity Now for DellsConnected WorkplaceGermanyRecognized as one ofGermany’s Top Employersby the CRF InstituteMalaysiaRanked #30 on Malaysias100 Leading GraduateEmployers 2012 by thecountrys universitystudentsIndia#6 on LinkedIn’sTop 10 Most In-Demand EmployersUnited StatesAchieved a perfect score onthe Human Rights Campaign’sCorporate Equality Index for 8thconsecutive yearReceived 2012 Work-Life Seal ofDistinction from WorldatWorksAlliance for Work-Life Progress#9 on’sTop 50 Organizations forMulticultural Business OpportunitiesIrelandNamed to the Top 100 BestWorkplaces list by The GreatPlace to Work InstituteMarie Moynihan, Vice PresidentGlobal Talent Acquisition, namedone of the Women’s ExecutiveNetwork’s Top 25 Most PowerfulWomenExplore morerecognitions atour websiteMarketplace Relationships Diversity and InclusionWorkforce CommitmentAwardPeople: Global HighlightsAchievements & recognition
  32. 32. FY13 Corporate Responsibility Summary ReportSupply Chain | 32Dell’s global supply chain is a highly complex and diverse network of interconnected companies that serve as anextension of both our operations and our values. We collaborate closely with our suppliers to deliver productsand services to our customers on time, every time. But we also work just as closely with them to ensure theyuphold the same social and environmental responsibility standards we set for ourselves — not just because it’sright for our business but it’s also, quite simply, the right thing to do. Like others in our industry, we face manychallenges to maintaining consistent responsibility among suppliers. For example, U.S. law requires us to tracethe source of certain materials in our products. However, many of our suppliers do not face such legislation intheir countries. As another example, we audit suppliers’ working hours, yet our suppliers are not always heldaccountable to local laws. Varying international standards make it difficult to achieve transparency to all stagesof a supply chain.To address these challenges, we continued working in FY13 with fellow industry leaders whose supply chainsoverlap with ours. By working on capability building activities such as the IDH Electronics Program, we arehelping suppliers build self-accountability for social and environmental responsibility. We also enhanced oursupplier training programs to build internal leadership and deepen our commitment to cultivating a supply chainthat reflects the diversity of our marketplace. By helping our suppliers enhance their own management systems,processes and culture, we can develop diverse, responsible organizations that collectively elevate our entire industry.Supply ChainResponsible Supplier SelectionStrengthening responsibility criteriaDell continued to improve its global supplier selectionprocess by formally adding social and environmentalresponsibility (SER)-related criteria.By asking all potential Dell suppliers questions abouttheir SER performance and policies during our supplierselection process, we can make more informedprocurement decisions.Under the new process, we would exclude potentialsuppliers during the qualification phase if they failed tomeet our SER standards, which include criteria for cleanwater and air discharges, worker health and safety, andfundamental human rights and dignity. Dell requiressuppliers to submit greenhouse gas emissions reportsto the Carbon Disclosure Project and measure and setreduction goals for water and waste.Supplier Capability BuildingDriving continuous improvementDell continued comprehensive supplierengagements designed to build internalownership and self-accountability for socialand environmental responsibility.Through these engagements, we brought supplierstogether with various subject matter experts in social orenvironmental responsibility. Additionally, we hosted SERtrainings for 90 percent of our Tier 1 suppliers and begantraining Tier 2 and Tier 3 suppliers as well. Key topicscovered included precarious work, environmental issuessuch as water and carbon emissions, and Dell requirementsrelated to conflict minerals, slavery and human trafficking.We continued to supplement this training with regularthird-party audits. We analyzed the results of theseaudits — as well as industry trends and stakeholderfeedback — to identify topics for capability-buildingtraining, webinars and case studies.
  33. 33. FY13 Corporate Responsibility Summary ReportSupply Chain | 33Human Rights in the Supply ChainCollaborating to improve standardsDell continued working toward a conflict-free supplychain by adhering to the Dodd-Frank Act and tracingthe sources of minerals we use.Under the Dodd-Frank Wall Street Reform andConsumer Protection Act, the U.S. Securities andExchange Commission requires companies topublicly disclose their use of conflict minerals thatoriginated in the Democratic Republic of the Congo oradjoining countries.In FY13, we continued following the industry standardwe helped establish in FY12, requiring all Dell suppliersto follow the Electronic Industry Citizenship Coalition-approved Conflict-Free Smelter Program auditprotocols to confirm their smelters are conflict-free.Our actions included reaching out to executives ofall our current suppliers, requiring them to committo upholding our requirements and providingdue diligence data. We published a white papersummarizing our efforts.Additionally, Dell monitors and utilizes credible voluntarystandards related to human rights. We are incorporatingthe UN Guiding Principles where appropriate intostandard business practices in normal business cyclesover the next several years.Supplier Capability BuildingEmpowering accountabilityUnitedStatesMexicoCosta RicaBrazilIrelandSpainItalyKoreaMalaysiaIndonesiaPhilippinesThailandTaiwanJapanChinaGermanySupplier locations by countryDell engaged eight of its suppliers to join the IDHElectronics Program — an industry effort to improveworking conditions and environmental performance.The IDH Electronics Program is a multi-stakeholdereffort developed by the Sustainable Trade Initiative(Initiatief Duurzame Handel, or IDH), civil societyorganizations and leading electronics companiesincluding Dell. Together with participants HP, Nokia,Philips and Apple, we are going beyond supplier auditingto address working conditions.In FY13, we worked collaboratively with our eight newparticipating suppliers within the IDH framework,which builds suppliers’ capabilities to improve worker-management communication, elevate workingconditions and reduce attrition. Our process includedassessments that defined work plans and helpedidentify next steps for each supplier.
  34. 34. FY13 Corporate Responsibility Summary ReportSupply Chain | 34Supplier DiversityDeepening our commitmentDell spent more than $3 billionwith diverse suppliers andcontinued supporting their growththrough intensive training andmentoring programs.Our investments with women- andminority-owned suppliers againqualified Dell for Billion DollarRoundtable status and represented a 16 percent increaseover our FY12 diverse supplier spend. We also conducteda complete supply chain analysis to understand our Tier 1suppliers’ diversity spending trends.To complement this investment, more than 20 SupplierDiversity Champions across all commodity and businesspartner areas regularly meet with and mentor our diversesuppliers to ensure engagement and measure progress.We encourage diverse suppliers to take advantage ofprograms we offer to all small businesses. These includeDell’s Entrepreneur in Residence, Dell Innovators CreditFund, Dell Center for Entrepreneurs and Small BusinessThink Tanks.We also supported diverse supplier capability buildingby sponsoring a social media workshop for theentrepreneurial members of the Women’s BusinessCouncil Southwest. The Women’s Business EnterpriseNational Council recognized our support of womenby naming Dell one of America’s Top Corporations forWomen’s Business Enterprises.Dell spending with diverse suppliersMillions$0500100015002000250030003500FY13FY12FY11FY10FY09
  35. 35. FY13 Corporate Responsibility Summary ReportSupply Chain | 35LaborAudit sectionHealthand safetyEnvironmentManagementsystemExcessive workinghoursYoung workersimproperly managedDisciplinary wagedeductionTop findingsWorkers exposedto hazardsInsufficient emergencypreparednessInsufficient investigationof occupational injuryand illnessIncompleteenvironmental permitsImproper handling ofhazardous materialsLegal requirementsnot trackedSocial and EnvironmentalResponsibility (SER)not definedNo effective methodto confidentially reportmisconductEthics* Percentages based on actual number of audits conducted by category; number of audits per category varies.61.7%7.4%13.6%18.1%29.5%6.7%8.6%22.9%11.1%3.7%6.7%Frequencyof findings*Suppliers have begun analyzing root causes,tracking progress toward the Electronic IndustryCitizenship Coalition 60 hrs./week requirement.Suppliers trained workers, provided protectiveequipment and implemented new engineering/administrative measures — issues covered duringDell workshops.Suppliers enhanced emergency proceduresthrough fire drills, trainings and continuousmonitoring of facilities.Suppliers have conducted industrial hygiene riskassessments, as well as occupational health andsafety management trainings for workers.Our supplier selection criteria mandates Tier 1suppliers obtain the appropriate up-to-dateenvironmental permits; the updated processnow includes Tier 2 suppliers.Suppliers established a management system forlegal requirements; Dell enhanced requirementsfor such systems within Quarterly Business Reviews.Dell shared best practices from our own proceduresto help suppliers develop mechanisms for confidentialreporting by workers.Suppliers established formal SER organizations todevelop management systems to track and maintainthe most recent requirements.Suppliers have engaged third-party serviceproviders to verify management of hazardousmaterials.Suppliers are developing job placement policiesfor young workers that include country-specificlegal requirements for regular health examinations.Dell requires suppliers to implement clear systemsto address wage management.Actions/statusSupplier audits — summary of major findingsFY13 Corporate Responsibility Summary ReportSupply Chain | 35
  36. 36. FY13 Corporate Responsibility Summary ReportGovernanceStrengthening governance around risk andcompliance through policy, process enhancementsOur 2012 Dell Code of Conduct updates broughtthe global launch of a new information lifecyclemanagement policy as well as enhancements to ourprivacy and anti-corruption policies.The information lifecycle management policy outlines anew data classification standard for all team members,with new rules for protecting, managing and disposingof Dell confidential information. When implementationis complete, we will have an extensive security labelingsystem for specific files and emails.We also review our global compliance policies ona regular basis and refresh them as needed. Ourcompliance framework, Compliance by Design,includes detailed maturity models for key risk areas.These models allow us to comprehensively assess ourprogress against our strategic goals.In FY13, we convened a Global Compliance Forum,consisting of Dell subject matter experts, risk ownersand members of our Global Ethics and ComplianceOffice. This forum, which met quarterly, allowed usto collaboratively develop compliance strategies andpriorities, achieve worldwide alignment and leveragebest practices across the enterprise.Having “one voice” in the enterprise risk managementprocess is critical in upholding the expectationsoutlined in Dell’s Code of Conduct.Dell performs annual compliance risk assessmentsto assess both identified and emerging risks. Thoseassessments are reviewed by the Global ComplianceForum and then used to provide input to the company’senterprise risk assessment.In FY13 we also developed more in-depth processesto assess and manage risks relating to the more than130,000 third parties we engage with across our business.We engaged with Dell team members at all levels tohelp them understand how these enhanced policiesand processes impact their jobs, their customers andour company. Our “Speak Up” video series introduceda creative way to engage all global team membersabout key risk topics. A Global VP Forum helpedexecutives drive awareness and accountability amongtheir teams. And the Corporate Executive Board’sCompliance and Ethics Leadership Council highlightedour new Principled Leadership ethical decision-makingtraining as a case study for better engaging middlemanagement in key decision-making concepts.As Dell’s business continues to expand and evolve around the world, our commitment to integrity remains constant.That commitment starts at the top, with transparency, accountability and strong governance practices that provideconfidence to our stakeholders — including team members, suppliers, customers and investors — that Dell operatesits business with integrity and in full compliance with all laws. Our team members uphold our integrity through theiractions as they follow the high ethics and compliance standards we’ve embedded in our culture.In FY13, we maintained our strong oversight of risk management and compliance while introducing newpolicies and training to help our team members make decisions that reflect our collective purpose, valuesand ethical principles.Governance | 36Deepening engagement with external stakeholdersFollowing our belief that good governance involvesbeing an active participant in the governancecommunity, we continued to grow our ongoingrelationships with industry organizations. Some of thegroups with which we shared best practices included theEthics Resources Center Fellows, Corporate ExecutiveBoard’s Compliance and Ethics Leadership Council,International Association of Privacy Professionals,Society of Corporate Secretaries and GovernanceProfessionals, Association of Corporate Counsel’s SECRoundtable, National Association of Corporate Directors,Ceres, Center for Political Accountability, SustainableTrade Initiative (IDH), Electronic Industry CitizenshipCoalition, Global Social Compliance Program and TheSustainability Consortium.We also continued to provide engagement opportunitiesfor stakeholders, to ensure their full understanding of ourcompliance activities and our vision for risk managementand corporate governance.
  37. 37. Join the conversation GRI Report @Dell4Good how we’re Powering the Possible by visiting the corporateresponsibility section of our website at supplement our Corporate ResponsibilityReport, we also publish a full Global ReportingInitiative (GRI) index and report at