Company Profile

Citizenship Challenges and Opportunities

Using a wide range of tools and processes, National Instruments engages with its key stakeholders to identify the issues that impact its citizenship performance. To learn about the company's 2010 performance and 2011 commitments on these issues, visit the sections linked from the following table. The 2010 Performance Summary provides an overview of all 2010 commitments and results.

Area	Challenges and Opportunities
Economic	Achieving growth and profitability Investing in R&D to develop innovative products and technologies Cultivating industry diversity
Environmental	Optimizing the product life cycle Modular products that require less power Packaging Reduction of hazardous substances Supplier responsibility Manufacturing operations Product take-back and recycling Conserving resources Energy Natural gas Water Emissions Habitats Recycling Waste reduction Empowering employees to drive change
Social	Transforming education , especially science, technology, engineering, and math (STEM) education, through programs that promote: Technical literacy Technology access Project-based learning Competition Mentoring Early education Developing tools for teaching Preserving the competitive advantage of NI culture and employees through: Recruiting and retention Diversity and inclusion Health, wellness, and safety Compensation and benefits Work environment Training and development Empowering customers to improve the world through: Bridge and infrastructure monitoring Green engineering Supporting engineers in developing countries Engaging in communities through: Employee and corporate philanthropy Employee volunteerism , including board membership Corporate advocacy

 

NI evaluates and prioritizes citizenship issues based on their importance to key stakeholders, as well as their impact on long-term and short-term business success. The company relies on multiple engagement tools , including discussion forums, surveys, direct field sales feedback, and customer and supplier conferences, to gather feedback on issues important to its stakeholders. The NI Board of Directors and NI Citizenship Executive Steering Team then help prioritize the company's efforts. NI identified the following top citizenship challenges and opportunities for 2010:

• Technical Literacy – As a worldwide technology leader and partner to some of the most recognized academic organizations, NI, along with its customers, is in a unique position to make a significant impact on the world by helping educators transform science, technology, engineering, and math (STEM) education and ultimately ensure that every student is prepared to enter – and contribute to – a technically literate society. NI sees this as core to its citizenship mission, significantly impacting all the company stakeholders and woven throughout NI citizenship efforts.
• Economic Stability – NI prides itself on being a stable company and employer, having a record of 32 years of growth in its 34-year history. In the five years between Q4 2005 and Q4 2010, NI revenue has increased 57 percent and nonGAAP net income has increased 84 percent. Since the end of 2005, NI has generated $646 million in cash from operating activities. Throughout 2010, NI maintained its commitments to each of its four stakeholders by strategically investing in R&D and field sales to support long-term revenue growth, while driving fiscal year 2010 nonGAAP operating margin to 17.3 percent.
• Health and Well-Being – Health care costs continue to increase rapidly in the United States, making health and wellness a key focus for both employees and NI. The company takes a proactive approach in partnership with employees to help them achieve healthier lifestyles through wellness and prevention. Some of the programs added in 2010 include Healthy Eating Every Day (HEED), a 20-week course designed to change eating habits and behaviors; smoking cessation; and a walking club. Employees also established the NI Nutrition Committee to assist the company with offering better nutritional options in vending and food services. Additionally, in 2010 more than 50 percent of employees at the corporate headquarters voluntarily used the new NI Health Center. In 2011 the company will continue to try to positively impact the rising cost of health care by offering primary care at the NI Health Center to employees’ spouses.
• Grand Challenges for Engineering – The National Academy of Engineering Committee on Grand Challenges for Engineering identified 14 areas awaiting engineering solutions in the 21st century. These include the most significant issues the world is facing today, such as the need for new medical treatments, access to clean water, and the creation of sustainable energy sources. NI customers are often on the front lines of pioneering solutions for these challenges, and NI is committed to equipping them with innovative tools and approaches to most efficiently and effectively solve them.

Managing Citizenship Performance
NI citizenship is part of the company's 100-year plan . These efforts impact all stakeholders and are aligned with the company's business and operational goals. To drive performance in these areas, NI relies on its Board of Directors, an executive steering team, a cross-functional committee, and NI employees.

A cross-functional committee oversees corporate citizenship activities across all four pillars of NI citizenship and measures performance throughout the company. In addition, NI employees play an integral role in achieving citizenship goals that range from developing innovative products that improve the world to identifying opportunities to reduce energy use at company facilities. Cross-functional employee teams, such as NI GRAD and the NI Green Team, are crucial for driving success on various aspects of the company's citizenship mission. In 2010, NI corporate headquarters added a component to its training program for new employees to further engage them in NI citizenship efforts.

NI executive leadership reviews citizenship performance and goals throughout the year. The Audit Committee of the NI Board of Directors oversees the company's performance in accounting and financial reporting, as well as compliance with the NI Code of Ethics and financial, environmental, and equal employment opportunity regulations.