| www.sun.com |
|
| Share Price (3/15/07): | $6.22 |
| OVERVIEW: | |
| Market Value (3/15/07): | $22.4 BIL |
| Revenue (2006): | $13.1 BIL |
| Employees: | 38,000 |
| Return on Equity 2006: | -13.3% |
| HIP PRACTICES: | |
| Vision: | Vision in 1990s, "network IS the computer," yielded Sun's "anywhere, anytime work, using any device." Incorporated energy and environmental concerns into product design. New mantra is "the participation age"- getting people outside of the developed world online, bringing positive social change, and freeing people up for more productive lives. Sun Microsystems pledges to reduce total U.S. GHG emissions by 20 percent from 2002 to 2012. |
| Metrics: | Hard target for CO2 emissions reduction via participation in Semiconductor Industry Association PFC and carbon emission reduction efforts - Target reduction of CO2 emissions by 20% from 2002 levels to 2012. More than half of all staff in Openwork program (telecommuting), but few formal measures integrated into business strategy so far. |
| Financials: | Energy efficient t1000 and t2000 servers generated $100 million revenue in 6 months (fastest growing product at Sun ever), plus customer benefit of utility-funded rebates in California. One-sixth less real estate assets and office expense due to OpenWork/telecommuting. Data center energy savings essentially fund equipment upgrades. |
| Accountability: | Board accountability on earth (CO2) goal. Unclear on diversity goals, other equality, health or wealth goals. New VP of Eco Responsibility. |
| Decision-Making: | All new product designs integrate eco-performance, with benefit of energy savings for customer. |
| HIP OUTCOMES: | |
| Health: |
Through Sun's Open Work program, 14,000+ staff globally work from home or in a flexible office up to two days a week, and about 12,800 (close to half of employees) do so between three and five days a week--increasing retention and reducing turnover, especially for families. |
| Wealth: |
Sun consistently provides computer code to be "open-sourced," enabling new entrepreneurs to build on that foundation to generate revenue, income and jobs. Energy rebate for California buyers of Sun servers, putting more money in the pockets of customers. Average employee compensation is $59,000, with generous investment matching and broad stock-option participation. |
| Earth: |
eWaste global "take-back" program to reclaim 95% of customer equipment. (Compare to 65% European regulated standard.) the average Open Worker saves 1.17 tons of CO2 emissions through reduced commuting. |
| Equality: |
Open Work telecommuting covers 50%+ of staff; 72% with high "happiness". 3527 schools in Italy now have free access to computing software through open-source StarOffice software. Created Orca open-source screen magnifier to expand access by the blind and low-vision community. Diversity of leadership is lagging: no women of 12 executive officers. one woman of 17 exec team on website, Board has 2 women of 10 directors. |
| WHAT'S NEXT: | |
| Practices: | What Sun-like decision-making and accountability systems can help the company get a more solid handle on its progress towards its goals for "participation" by all citizens? |
| Outcomes: | Can Openwork deliver ongoing competitive advantage in worldwide recruiting? |
| OTHER RATINGS: | |
| KLD: Companies are rated from negative (0) to positive (6) in seven areas. | Community: 4.5 Governance: 3.4 Diversity: 4.2 Employees: 2.8 Environment: 4.4 Human Rights: 3.4 Product: 3.6 Included in KLD Indices for: Domini 400, Broad Market Social Index, Large Cap Social Index |
| Calvert Rating: Companies are rated on a scale of 1 (substantially below Calvert standards) to 5 (superior). | Not published. |
| RESOURCES: | |
| Sustainability or CSR Report: | Corporate Social Responsibility |
| Annual Report: | SEC Filings |
--Sara Olsen and Alex C. Pasquariello
