About This Report

Management Approach Disclosures

The following disclosures provide a brief overview of how National Instruments manages its performance under each Global Reporting Initiative (GRI) indicator category.

To manage the performance of the supply chain, NI requires suppliers to comply with the NI Supplier Code of Conduct for the fair treatment of workers, a healthy and safe work environment, the protection of the environment, and outstanding business ethics. In addition, all new suppliers must complete an NI supplier assessment survey. If the survey process identifies issues, NI conducts regular follow-up with the supplier. For existing key suppliers, NI monitors issues and reviews performance scorecards quarterly to ensure continuous improvement.

Economic
Environmental
Labor Practices and Decent Work
Human Rights
Society
Product Responsibility

Economic

The management approach taken by NI regarding its economic performance, market presence, and indirect economic impacts stems heavily from the company's commitment to upholding solid principles of corporate governance and accountability to all its stakeholders. The company has set long-term goals of investing 16 percent of its total revenue back into R&D while maintaining an 18 percent operating income and 14 percent net income. To view the company's 2010 results, refer to the Annual Report.

NI uses quarterly business discussions and other employee communication tools to raise internal awareness of economic goals and performance. Should issues arise related to the company's economic performance, the NI Board of Directors would address them.

For more information regarding the company's approach to managing economic performance, download Form 10-K of the Annual Report.

Environmental

Refer to the Minimize Our Environmental Impact section of this report for an overview of NI environmental performance including 2010 successes and challenges as well as 2011 commitments. For information about the NI approach to managing issues related to its products and services, including environmental compliance, refer to the Product Responsibility section of this page.

Aspect	Goals and Performance	Policy	Organizational Responsibility	Training and Awareness	Monitoring and Follow-Up
Materials	Product Design Reduction of Hazardous Substances	NI Environmental Policy NI Supplier Code of Conduct	Vice president, Manufacturing	All NI hardware engineers follow the NI hardware engineering process, which raises awareness of materials issues.	On a quarterly basis, R&D leadership receives a report of conversions to address the European Union Restriction of the Use of Certain Hazardous Substances (RoHS) directive.
Energy, water, emissions, effluents, and waste	Reducing Energy Usage Reducing Natural Gas Usage, Water Usage, and Emissions Recycling and Waste Reduction	NI Environmental Policy Conserving Resources	Vice president, Manufacturing	NI Green Team	NI reviews performance on a quarterly basis and then examines any abnormal fluctuations.
Compliance, as it relates to overall environmental performance	Supplier Responsibility, Environmental Management, and Manufacturing Operations	NI Environmental Policy	Vice president, Manufacturing	Employees responsible for maintaining the NI environmental management system have access to process training.	Supplier Responsibility, Environmental Management, and Manufacturing Operations

For biodiversity and transportation issues, NI does not have a formal policy, nor does it set goals or offer training. Should these issues arise, the vice president of Manufacturing would address them.

Labor Practices and Decent Work

Refer to the People and Culture section of this report for an overview of NI performance with regard to labor practices including 2010 successes and challenges as well as 2011 commitments.

Aspect	Goals and Performance	Policy	Organizational Responsibility	Training and Awareness	Monitoring and Follow-Up
Employment	Recruiting Employees Retaining Employees	Hire and Retain the Best and Brightest	Vice president, Worldwide Human Resources	At NI corporate headquarters, the new employee training program covers this aspect. At branch offices, the branch leadership is responsible for training and raising awareness.	The NI Human Resources department monitors these issues.
Occupational health and safety	Health, Wellness, and Safety Supplier Responsibility, Environmental Management, and Manufacturing Operations	Health, Wellness, and Safety Supplier Responsibility, Environmental Management, and Manufacturing Operations	Vice president, Manufacturing	At NI manufacturing facilities, employees receive training on an ongoing basis related to occupational health and safety.	NI is working toward full compliance with the OHSAS 18001 standard, which helps companies control occupational health and safety risks.
Training and education	Provide Superior Employee Development	Provide Superior Employee Development	Vice president, Worldwide Human Resources	Provide Superior Employee Development	The NI Human Resources department monitors these issues.
Diversity and equal opportunity	Diversity and Inclusion	Diversity and Inclusion	Vice president, Worldwide Human Resources	At NI corporate headquarters, the new employee training program covers this aspect. At branch offices, the branch leadership is responsible for training and raising awareness.	The NI Human Resources department monitors these issues.

For labor/management relations issues, NI does not have a formal policy, nor does it set goals or offer training. Should these issues arise, the vice president of Worldwide Human Resources would address them.

Human Rights

In the countries where NI has offices, the company follows applicable legislative standards and is a responsible employer. For information about the NI approach to managing nondiscrimination issues, refer to the Labor Practices and Decent Work section of this page.

NI does not have a formal policy, nor does it set goals or offer training, for the following aspects related to human rights: investment and procurement practices; freedom of association and collective bargaining; complaints and grievance practices; security practices; and indigenous rights. NI does have a policy but does not set goals or offer training for the following aspects:

• Abolition of child labor: Indicator HR6 in the GRI Index
• Prevention of forced and compulsory labor: Indicator HR7 in the GRI Index

Should human rights issues arise in the area of employment, the vice president of Worldwide Human Resources would address them in accordance with applicable legislative standards. The NI Board of Directors would address all other human rights issues.

Society

Refer to the World-Class Community Engagement section of this report for an overview of how NI and its employees serve the communities in which they work and live, including 2010 successes and challenges as well as 2011 commitments.

Aspect	Goals and Performance	Policy	Organizational Responsibility	Training and Awareness	Monitoring and Follow-Up
Corruption	Work Environment	NI Code of Ethics	Audit Committee of the NI Board of Directors	Work Environment	Refer to the charter for the Audit Committee of the NI Board of Directors.

NI does not have a formal policy, nor does it set goals or offer training, for the following aspects related to the impact NI has on the communities in which it operates: community, public policy, and compliance. NI does have the following policy related to anticompetitive behavior but does not set goals or offer training: National Instruments Corporation Compliance with Antitrust Laws. Should issues arise in the areas of community, compliance, or anticompetitive behavior, the NI Board of Directors would address them.

Product Responsibility

Refer to the Minimize Our Environmental Impact section of this report for an overview of NI performance with regard to product responsibility including 2010 successes and challenges as well as 2011 commitments.

Aspect	Goals and Performance	Policy	Organizational Responsibility	Training and Awareness	Monitoring and Follow-Up
Customer health and safety	NI does not set goals related to this aspect.	Indicator PR1 in the GRI Index	Vice president, Manufacturing	No training or awareness efforts exist.	Should these issues arise, NI would rely on its customer quality escalation process.
Product and service labeling	Product Design Product Take-Back and Recycling	NI Environmental Policy	Vice president, Manufacturing	All NI hardware engineers follow the NI hardware engineering process, which raises awareness of labeling issues.	Regular quality checks during the NI manufacturing process ensure proper labeling.
Customer privacy	NI does not set goals related to this aspect.	NI Privacy Statement	Senior vice president, Sales and Marketing	At NI corporate headquarters, sales and marketing staff receive training on the company's e-mail privacy policy. At branch offices, marketing staff receive this training.	NI continually gathers feedback through customer surveys and comment forms and follows up on issues that arise.
Compliance	Product Design Product Take-Back and Recycling	NI Environmental Policy	Vice president, Manufacturing	Employees involved in the manufacturing process have access to process training.	The NI Compliance Engineering department monitors these issues. NI has processes in place to make sure all components that go into its products are compliant. In addition, on a quarterly basis, R&D leadership receives a report of conversions to address the European Union Restriction of the Use of Certain Hazardous Substances (RoHS) directive.

For marketing communications issues, NI does not have a formal policy, nor does it set goals or offer training. Should these issues arise, the senior vice president of Sales and Marketing would address them.