Stakeholder Engagement Community Engagement

Government Affairs

Stakeholder Engagement

Stakeholders Tools and Processes Benefits Employees Wide-ranging mechanisms for employees worldwide, including Circuit News, Letters to the Editor, Business Update Meetings, Executive Open Forums, Write To Know anonymous Q&A, Open Door process and employee support groups Multiple processes support direct communication up and down the organization and promote an environment of diversity and inclusion. Customers Customer Excellence Program Objective customer feedback drives improvement and empowers employees to have a positive impact on customers and receive an additional day of pay twice a year based on customer satisfaction. Suppliers Supplier communications hub https://supplier.intel.com Annual Supplier Days Supplier newsletter Consistent expectations, positive interactions regarding new priorities and improved tracking tools for Intel suppliers. Improved interaction with stakeholders in development of Supplier Code of Conduct. Communities Community Advisory Panels and Perception Surveys Community web pages with feedback options Extensive working relationships with educators and educational institutions worldwide www.intel.com/community Framework for community relations programs worldwide. Align tools and evaluation methods with community priorities. Provide local communities with a broad range of resources. Investors Proactive meetings with social-oriented fund managers and analysts Timely interaction with investors and research firms Feedback and benchmark data from firms drive improved performance. Detailed, firsthand investor insight on emerging issues. Governments and Policy Makers Active engagement in policy and legislative efforts worldwide Intel Government Affairs and Public Affairs work together to build Intel's credibility and win the trust of policy makers Fosters credible and trustworthy relationships. Strengthens regard for Intel as a valued corporate citizen. Creates a supportive public policy environment. Non-governmental Organizations Issues meetings, formal dialogues and projects, and multisector efforts Promote mutual understanding on critical issues. Discussions in 2004 included resource use, supplier expectations, globalization, executive compensation and more.

Community engagement
Intel and the Community—New Mexico. In 2004, the Corrales Air Quality Study came to a conclusion after two years of work. The study sought to determine whether an air quality problem existed in the Corrales area adjacent to the Intel plant, whether any problems could be attributed to Intel operations, and finally, whether air pollution could be contributing to health problems. The study task force included the New Mexico Environmental Department, the New Mexico Department of Health, local residents, citizen activists, Intel and local business owners. The results were published and briefly concluded: "This health risk assessment did not find evidence that any of the modeled or measured chemicals are associated with increased acute or chronic health risks.... However, uncertainties associated with the limited nature of available monitoring and modeling data do exist."

The full study, results and conclusions can be found at
www.nmenv.state.nm.us/aqb/projects/Corrales

The final report included recommendations from various stakeholders on the task force, including Intel. Task force members unanimously supported 12 recommendations, including the establishment of a forum to focus on environmental improvements at Intel, more communication about site operations and continued improvement in regulatory oversight of the facility.

Following the study, Intel reconstituted the site's Community Advisory Panel (CAP) with advice collected from a formal community survey. We purposely invited the strongest citizen activist organizations to be members of our CAP. Although some activists and critics are participating, two of Intel's strongest critics have declined the standing invitation.

Following the recommendations of the task force study, a Community Environmental Working Group was established. We invited the same citizen organizations to become members of this group as well. The Working Group's meetings are held monthly and are open to the public. Meeting summaries are published in local newspapers.

John Bartlit, chair of New Mexico Citizens for Clean Air & Water and acting chair of the Community Environmental Working Group, gave us his assessment of the group's first months of activity, and of how Intel can improve its environmental standing in New Mexico in 2005:

"In the first five monthly meetings, a new means of public interaction uncovered four new possibilities to help ease Intel's air emissions. In late summer 2004, the Working Group took to the task of environmental improvement. The Working Group includes long-time 'green' activists, local critics of Intel, other community voices and two from Intel. A green activist acts as chair. The hope is to replace the old ways of interacting with new ones that yield continuously better results for all concerned, a mindset that Intel uses well for improving chips. The Working Group's 'principles of progress' include:

	Focus on any chance to make environmental gains, not on judging health effects or whose position is more perfect.
	Regularly measure, record and publicly report on trends, as in air emissions.
	Publicly report in new ways that cut the 'spin'; all sides use too much spin on public issues.
	Give credit for improvement everywhere it is due: critic, regulator, Intel engineer or fiscal officer.

Intel can do two things to maintain credibility in these forums: 1) give credit when due to local stakeholders; and 2) disclose research and report progress on implementing new wafer cleaning technologies, such as super-critical CO²."

Government affairs
Respected and credible voice. Intel operates a worldwide Government Affairs organization to foster and maintain relationships with government leaders. We strive to be helpful as governments develop public policy in areas where we have competence. Additionally, we work to promote collaboration in the marketplace by hosting government officials from around the world at our sites. In compliance with applicable lobbying laws, we participate in lobbying in many of our site communities on issues that are important to our company and our industry. State lobbying expenditure reports are available within each state's appropriate oversight organization. Intel files reports detailing federal lobbying expenditures and activities at
http://query.nictusa.com/cgi-bin/dcdev/forms/C00125641

Public policy priorities. Intel engages with governments on wide-ranging policies that affect our business, our employees and our customers around the world. A summary of our key positions follows.

Free trade. Intel works with governments around the world to reduce barriers to trade and encourage the flow of goods and services across borders. We advocate multilateral, regional and bilateral trade agreements to accomplish these goals.

Wired and wireless broadband deployment. We believe that broadband services are key to growth in the technology sector and will play an important role in economic expansion. Information access can be a major catalyst for the economy, bringing the social benefits of technology to healthcare and education, and providing accessible government to rural and developing areas around the world.

Digital rights management. Intel respects intellectual property rights and opposes piracy. We continue to work with content owners to help protect their property, while allowing consumers to enjoy digital content. Intel believes that combating piracy requires a combination of technical solutions, new business models, enforcement of existing laws and consumer education.

Education. We believe that education plays a vital role in the growth of a global, knowledge-based economy. We support initiatives that promote math, science and engineering; increased investment in education that demonstrates positive results; and the development and support of high-quality teachers.

Environment. We take a proactive approach to working with government agencies worldwide, helping to craft environmental policy that advances sustainability while preserving our ability to innovate and operate.

In response to government initiatives worldwide, high-tech companies are now addressing the elimination of lead from electronic products. Intel's approach has been to invest in developing lead-free technologies while working closely with governments to address applications for which lead-free technology is not yet available. We support harmonization to ensure that these requirements are implemented in a consistent manner globally.

Political contributions. Intel Political Action Committee (IPAC). IPAC was created in 1980 to allow employees to support candidates whose legislative goals coincide with Intel's public policy priorities. An IPAC Steering Committee meets periodically to review and evaluate candidate requests.

U.S. Congressional and State legislative candidates are eligible to receive IPAC contributions. Candidates are evaluated according to their voting record on Intel's public policy priorities, support and concern for Intel Values, and presence and engagement in Intel communities. The committee also considers individual Intel employee recommendations.

IPAC does not contribute to presidential campaigns, past campaign debt or political parties. Intel discloses IPAC contributions made and received in reports filed with the U.S. Federal Election Commission at
http://query.nictusa.com/cgi-bin/dcdev/forms/C00125641