2008 Corporate Social Responsibility Report

CSR Report: Introduction

To Our Valued Stakeholders:

Sun's vigorous pursuit of growth and profit is critical to our long-term business survival. But a sustainable business is dependent on sustainable communities and a sustainable planet – and Sun recognizes our responsibility to do what we can to ensure all three.

The environmental challenges facing our world today are significant. From global warming to water availability to air quality, no person, community, or nation is immune. Moreover, our society also grapples with globalization's impact on people and communities: how to enable access to opportunity and information while protecting human dignity. No business will survive in our global economy without acknowledging—and addressing&mdash these challenges.

At Sun, we readily embrace our role as a global technology provider and enabler and the opportunities—and responsibilities—that go along with that. We also know we have a duty to our stockholders to deliver solid business results, both in the short and long term. It's with this in mind that we remain focused on innovating and developing products that meet our customers' business needs without sacrificing the well-being of our planet; continue to create a workplace that rewards dedication, encourages aspiration, and provides inspiration; remain committed to ensuring an open, accessible, secure network; and hold ourselves to the highest standards of business conduct.

In April 2008, the Corporate Governance and Nominating Committee of Sun's Board of Directors amended its charter to include oversight of Sun's corporate social responsibility initiatives. We did this because, as Board members, we acknowledge that Sun's road to sustainability presents both business risks and business opportunities, and, as citizens, we want and expect Sun to do the right thing. We believe it's in the best interests of Sun and its stockholders to pursue a sustainability strategy that aims for the spot where these three business realities come together.

This report, Sun's third, is an important demonstration of our effort to continually challenge ourselves to be more transparent, more efficient, and more cognizant of our impact on society and the environment. In other words, Sun's 2008 CSR report aims to provide a snapshot of how we are progressing on this long-term journey toward sustainability.

On behalf of the Corporate Governance and Nominating Committee of Sun's Board of Directors,

James L. Barksdale, Chairman
Patricia E. Mitchell
James H. Greene, Jr.