2007 Corporate Social Responsibility Report

Employee Survey

We conduct our Power of Sun survey twice a year to obtain feedback from our employees on a variety of topics. This year, for the first time, one of our surveys included three questions about social and environmental responsibility:

1. It is important to me that Sun act as a socially and environmentally responsible company. (Agree/disagree)
2. I believe Sun acts as a socially and environmentally responsible company. (Agree/disagree)
3. When I say socially and environmentally responsible, I mean:_________ (open ended)

Approximately 21,000 employees (nearly 60%) responded to these questions. Some 92% either agreed (46.9%) or strongly agreed (45.4%) that it's important to them that Sun act as a socially and environmentally responsible company. Nearly 84% of employees agreed (55.2%) or strongly agreed (28.5%) that they believe Sun acts as a socially and environmentally responsible company.

We are particularly pleased with this result because our formal CSR program had only been established for three months prior to this survey being conducted in October 2006. However, the gap between the desire for Sun to be socially and environmentally responsible and the perception that Sun is responsible suggests there is room for improvement.

The responses indicate that more senior employees are more likely to think that it is important that Sun be socially and environmentally responsible and that we are responsible. Between 92% and 95% of French, German, and Japanese employees stated that social and environmental responsibility is important to them, but their responses concerning Sun being responsible were considerably lower (between 60% and 69%) than the global average (84%). We believe that this may be explained by higher expectations for corporations to be good citizens in those countries, combined with the infancy of Sun's formal CSR program.

Going forward, the Power of Sun survey will ask employees for their views about Sun's social and eco responsibility performance so that we can identify trends, better understand the results, and use them to better engage with our workforce on these topics.

The third (open-ended) question on what social and environmental responsibility means to employees yielded a range of responses from employees all around the world. Following is a sample of their views:

When I say socially and environmentally responsible, I mean:_________

  ". . . that companies are looking beyond financial numbers and are concerned about being good corporate citizens. The return on investment for this effort may be difficult to measure, but I'm sure there is a high return (both financially and personally) for this investment."

  ". . . we need to ensure that we are leaving a small footprint on this world and be aware of what type of world we are leaving to our children. Our systems need to use less power and we need to recycle. From a social aspect, we need to ensure that we are educating and giving back."

  ". . . not looking at profits as an end goal where any method is justified in achieving it."

  ". . . delivering excellent products (which are full of innovation) by working ethically, being responsible for the products, making sure that they are worthy of the price customers pay, and having a very good working relation with the clients/customers, such that more of them are attracted to do business."

  ". . . be honest. Save the planet."

  ". . . balancing the need to keep the stock price up with avoiding practices that are exploitative or environmentally questionable. Profits mean nothing if we make money by destroying the environment."

  ". . . respect for the individual, employee, and customer, and for the environment, local and global; strong moral and ethical values manifested in active involvement and support of those less fortunate; embracing and encouraging diversity within the organization."

  ". . . not just saying the words as marketing hype but actually incorporate it into our company's DNA in how to conceive/architect/design/deliver products and services."