Paul S. Otellini

In addition to the traditional responsibilities of making quality products that meet the needs of our customers, there are new expectations such as modeling uncompromising integrity, being an asset in our communities, sharing knowledge with developing economies and continually improving environmental performance. In this environment of increased corporate scrutiny, we continue to rely on our corporate bedrock—our six key Intel values—to give us a clear means of establishing our priorities and goals. The words we use today have evolved. We now talk more about transparency, disclosure and accountability, but we still focus on doing what we believe is right, and learning in the process. And that is what we have done for the last 35 years.

We are leaders in many areas: we have strong records in the environmental arena, in employee benefits and in corporate governance, among others. It is our objective in these areas, as we do elsewhere in the company, to deliver continuous improvement and world-class results. We have established reporting and monitoring systems to ensure that we review our actions and results with our values firmly in mind.

In the social performance arena, we are active in our local communities. Whether it is through classroom visits to introduce students to the excitement of technology or serving on the board of directors of a local community-based organization, Intel employees are engaged in making our communities better places to live, work and play. Our employees are the key to our success. We provide them with development opportunities, challenging work and great benefits. We focus on how our employees are treated in the workplace, how open and honest we are in communicating with them, how comfortable people feel about challenging "the way things are done" to get to a better way, as well as why people leave the company and what we can learn from that.

To keep growing, we have to learn from what has worked and what hasn't worked. We regularly survey our employees about their experiences in our workplace. We describe one of those corporate surveys in this report. Our employees don't hesitate to tell us what they think is positive and not so positive. We've been doing these surveys since 1986, and we learn something new every time. For example, our employees have told us in the last several years that it is a challenge to maintain a good work/life balance at Intel. As a result, we have focused on programs to improve that balance.

In this Social Programs & Performance section, you will learn more about our work environment, as well as our community outreach initiatives and the programs we sponsor around the world to improve education. Hopefully, this snapshot will give you a better idea of who we are and how we conduct our business.

Paul S. Otellini President and Chief Operating Officer