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Business and Community Development: Aligning Corporate Performance with Community
Economic Development to Achieve Win-Win Impacts, is a first-of-its-kind report on how companies use business and community development initiatives as a strategy for their community involvement.
Based on interviews with more than 70 companies and additional data collected from over 40 businesses, the report offers managers and business leaders guidance and a framework for putting a business and community development strategy into practice, from broad strokes to organizationwide implementation.
The cornerstones of the research and its findings are in-depth case studies of five corporations that have successfully integrated a strategic approach to business and community economic development. The companies and the main initiatives investigated are:
• Advanced Micro Devices (AMD )—AMD has helped drive a win-win workforce development initiative that prepares students from low-income communities for work in high-tech semiconductor manufacturing.
• J.P. Morgan Chase (formerly The Chase Manhattan Bank)—Chase has created an organizational structure to drive BCD across the organization. It has designed new lending services and products, allowing for alternative financing for affordable housing, small businesses, and communitybased supermarket development.
• Cisco Systems —Cisco has created the Networking Academy Program, which trains and certifies youth and adults from low-income communities to install, service, operate, and maintain network routers.
• SAFECO Insurance Company —SAFECO created the Diversity Marketing Initiative, designed to build new markets in untapped urban areas.
• Texas Instruments (TI) —TI has created a minority- and women-owned business development program designed to diversify its supplier network.
The case study presented in the following pages provides an in-depth look at how Texas Instruments integrated a strategic approach to business and community economic development. Individual case studies for each of the five companies above are available from The Center’s web site at www.bc.edu/corporatecitizenship.
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Texas Instruments (TI) is a global semiconductor company that employs over
40,000 people worldwide, with operations in more than 25 countries in North and South America, Asia, and Europe. Nearly 30 percent (over 10,000) of the company’s employees are located in the headquarters location of Dallas, Texas.
TI has demonstrated clear leadership in the Dallas area not only in minorityand women-owned business development, but also in community support and business development through philanthropic, volunteer, and venture capital activities. This experience has served the company well in the development of a model minority/women business development program (M/WBD). TI became involved in M/WBD in the early 1980s as a defense contractor. As part of the
US Federal Acquisitions Requirement (DESG), the federal government established a goal for defense contractors to purchase 5 percent of their procurement from minority/women-owned businesses. TI adopted and exceeded this goal and in 1985, TI became the first company the federal government recognized for achieving the 5 percent goal.
By 1989, TI was no longer in the defense business, (it was sold to Raytheon in
1996), and thus no longer tied to the federal requirements. However, a new challenge emerged that caused TI to revisit its experience with minority and women business development. A lack of economic parity for the minority community in the Dallas, Texas area — where 30 percent of TI’s employees work and live — had resulted in tension and unrest in the city. The situation presented a real business threat to TI and other area businesses. If the threat was ignored, the community infrastructure and quality of life would suffer, and along with it, TI’s ability to retain and attract a skilled and dependable workforce and supplier base in the Dallas area.
With a strong conviction that area businesses should be part of developing a solution, TI revived and expanded its former M/WBD program to serve the
Dallas area specifically, and to include sourcing of product throughout all commercial operations company-wide.
This local M/WBD focus was further enhanced with community philanthropic t h e c e n t e r f o r c o r p o r a t e c i t i z e n s h i p a t b o s t o n c o l l e g e

Texas Instruments investments targeting specific geographic regions of the city that had not experienced the venture development opportunities of other regions. These enhancements increased the M/WBD program’s impact on the company and the community.
TI took the first initiative to address the problem by refocusing its procurement efforts on the development of minority- and women-owned businesses in the
Dallas area. The opportunity to “grow their own” suppliers locally meant that TI would benefit by having additional supplier options and competitive pricing.
The local focus on Dallas also assisted the company in gaining internal buy-in of the M/WBD program among employees, most of whom reside in Dallas.
With its long heritage of community involvement, TI designed a program that would also benefit the community. The program was shaped to increase economic opportunities for local minority groups and expand the supplier and service businesses in the area, thereby strengthening Dallas’ business infrastructure. The results would be additional business dollars being spent locally, thereby enhancing economic development in the community.
TI became involved in minority/women business development in the early
1980s. As a defense contractor, TI responded to encouragement from the federal government to buy more from minority- and women-owned businesses.
Later, as part of the Federal Acquisitions Requirement, the federal government established a goal for defense contractors to purchase 5 percent of their procurement from minority/women-owned businesses. TI adopted and exceeded this goal. In 1985, TI became the first company in the United States the federal government recognized for achieving the 5 percent goal.
In 1989, TI’s CEO, President and Chairman Jerry Junkins moved the company to the next stage of involvement. He decided to expand the company’s minority supplier program beyond the mandates of the federal government by establishing the Minority/Women-Owned Business Development program. He set a t h e c e n t e r f o r c o r p o r a t e c i t i z e n s h i p a t b o s t o n c o l l e g e
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4 company-wide goal to purchase 5 percent of all of its procurements from minority/women-owned businesses for all of TI’s businesses.
In the late 1980s and early 1990s there was significant racial tension and a growing concern about the inequitable distribution of economic opportunity for ethnic minorities in Dallas. The bad press from this climate threatened to affect
TI’s existing and potential employees in the area, lowering the quality of life in
Dallas, affecting the morale of TI staff, and preventing TI from attracting and retaining employees.
Junkins, also the chairman of Dallas Citizens Council, was deeply involved in addressing these serious community issues. And as the leader of one of Dallas’ largest employers, Junkins felt it was important for TI to demonstrate to other companies the importance of businesses working to improve the racial climate in the city. So, in the early 1990s, TI transformed the M/WBD program yet again, making it an important economic development tool. The company sharpened the focus of the program by working to nurture and develop minority/women suppliers in the communities where TI had facilities and where its employees lived.
A successful M/WBD program doesn’t just “happen.” TI’s success has been built upon a long history of community involvement, strong leadership, and innovative staff who have clear goals and organizational support for meeting them. Each of the core features of the TI initiative are described as follows.
TI’s Minority/Women Business Development program is located in the
Procurement and Logistic Group, which is responsible for all corporate purchases of commodity and contract services. The M/WBD director reports directly to the vice president, procurement and logistics. There are seven positions within the M/WBD organization, and this team manages all aspects of the
M/WBD program and is charged with the program’s direction and success.
According to the M/WBD Program Policy Statement, the program’s goals are to: t h e c e n t e r f o r c o r p o r a t e c i t i z e n s h i p a t b o s t o n c o l l e g e

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• Identify, assist, and develop minority and women suppliers to become qualified suppliers to TI.
• Encourage purchases from minority and women suppliers, particularly in communities where TI has a presence.
• Conduct formal and timely reviews of progress against its own minority and women procurement goals.
The team coordinates and assists in all domestic minority and women procurement. The team is the first point of contact for all minority- and women-owned businesses seeking advice and guidance. Members of the team perform a variety of roles including those in the box to the right.
• Identifying suppliers
• Relationship building
• Coordinating with individual
A primary task of each team member is relationship building. Team members must develop relationships with internal stakeholders (purchasing agents, management, operations, etc.) and with minority suppliers.
They must also facilitate the development of a productive working rela-
•
•
•
• suppliers
Handling program inquiries
Working with TI purchasing agent on M/WBD matters
Working with M/WBE suppliers to seek growth opportunities
Mentoring and coaching suptionship between internal stakeholders and each minority business. “On any given day, the team may be working five to 10 issues involving
• pliers
Providing support to ethnic chambers of commerce existing supplier relationships that require some kind of constructive action to sustain the business,” says Stouffer.
“…[I]n every case there is a very real risk of permanent disruption of the business relationship.” Communication, diplomatic and negotiation skills are vital to issue resolution and to the ultimate success of the team.
• Setting goals and strategies
• Conducting trade shows
• Record keeping
• Being involved with external organizations
• Promoting M/WBD & minority suppliers
• Interacting with the community
• Providing training and assistance to internal corporate staff t h e c e n t e r f o r c o r p o r a t e c i t i z e n s h i p a t b o s t o n c o l l e g e
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This mediating role played by the M/WBD staff is critical to the program’s success. Without it, the program director says, issues can get divisive and even result in a supplier being terminated. Traditionally, TI purchasing agents held an established list of dependable suppliers with whom they were accustomed to doing business. These agents were reluctant to accept new suppliers, especially if it would require extra time to mentor or negotiate purchases. At the same time, the minority suppliers needed assistance in understanding the mechanics of working inside a large organization like TI. In addition, TI holds all of its suppliers to tough performance standards and requires that new suppliers learn about the company’s quality standards.
M/WBD staff recognized their efforts could be sabotaged because of possible misunderstandings or conflicts between purchasing agents and potential minority suppliers. They also anticipated the possible resistance because of the extra time needed to mentor a supplier on internal operations, specifications, processes, and TI’s high quality standards that all suppliers and employees are expected to meet. M/WBD staff responded by taking on the responsibility of assisting the purchasing agents in initial negotiations with new minority suppliers to ensure a win-win for the supplier and TI. Once the suppliers were established, mediation was usually no longer needed. Ideally, purchasing agents learn how to initiate and support this work, requiring a smaller M/WBD dedicated staff.
How has TI made it “happen?” The following key organizational strategies have contributed to the success of the TI model, taking it from an organizational goal to a reality in practice.
1) CEO Commitment and Involvement; Dedicated Program Leadership
Nearly every person interviewed acknowledged the strong support and direct involvement of the company’s CEOs in the M/WBD program as a strong factor in the program’s success. From the program’s beginning, TI’s previous CEO,
Jerry Junkins, and current CEO, Tom Engibous, have been champions and primary drivers for the program. Both CEOs demonstrated this support internally by defining clear expectations for the program’s success. Externally they t h e c e n t e r f o r c o r p o r a t e c i t i z e n s h i p a t b o s t o n c o l l e g e

Texas Instruments endorsed the program by voicing program support publicly and by getting involved in the program on a personal level.
TI managers, community leaders and minority suppliers all mentioned the positive impact of the CEO’s leadership. Suppliers mentioned occasions when they met the CEO at community events involving minority suppliers. One minority supplier was greatly impressed by Tom Engibous’ personal interest in his business, which Engibous showed in his active mentor relationship with this businessman.
The strong leadership of the M/WBD program’s director, Richard Stouffer, was also critical. His personal commitment and enthusiastic championing of the program combined with his knowledge and long-time experience in procurement and M/WBD has been a very significant driving force in the program’s overall success.
2) Goals and Accountability
Since the beginning, TI’s M/WBD Program has been goal-driven. Initially, the goal was based upon the federal acquisitions recommendation that minority purchases equal 5 percent of the company’s defense business procurements.
The company has now established 5 percent goals for total procurement dollars to be spent with minority suppliers and these apply both nationally and to the
Dallas area.
Directors responsible for procurement establish the goal for the M/WBD program. Each director is challenged to set procurement objectives for their assigned commodity or service area. These individual goals are then totaled to establish the basis for a corporate goal. The director of M/WBD, in consultation with senior management, then establishes the corporate goal utilizing the expectations presented by each director plus management’s “stretch” initiative.
Procurement and logistics directors and employees are held accountable for achieving the individual goals established for each commodity or service procurement area. It is a team effort involving both the M/WBD staff and the employees responsible for purchasing each commodity. Richard Stouffer emphasizes that “[i]t is the full department’s responsibility to accomplish the t h e c e n t e r f o r c o r p o r a t e c i t i z e n s h i p a t b o s t o n c o l l e g e
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8 goal.” The company has also established and published goals each year as part of the covenant agreement for the Dallas Together Forum. In support of the forum, the company also establishes goals for percentage of ethnic minority new hires and percentage of professional and managerial positions and board seats filled.
3) Business–Driven Program
Minority/Women Business Development is currently and has always been located in procurement and logistics, tied directly to the company’s procurement function with shared goals, reward and recognition processes. The director of
M/WBD has a peer relationship with other directors within the organization who have supervisory responsibility for all procurement operations for the company. M/WBD staff work directly with the purchasing organization in securing the large volume of supplies and services needed for TI’s operations. This ensures immediate access for collaborative decisions for potential minority development opportunities.
Another factor in maintaining a business-driven agenda is quality. TI is also very clear internally and externally that the M/WBD suppliers are held to the same strict quality standards as other suppliers.
4) Public Recognition of Suppliers and Employees
For the past nine years, TI has conducted the annual Minority/Women Business
Development Awards Banquet. Hundreds attend the banquet each year, including TI’s managers and procurement professionals, community leaders, elected officials and minority business and women business suppliers. The banquet provides the opportunity to increase the visibility of the M/WBD program, but its primary objective is to recognize the accomplishments of TI’s procurement employees in developing minority business. Several minority suppliers mentioned the value of this event as a way of learning about the program and a networking opportunity.
5) Financial Incentives for TI Employees
In addition to the annual awards banquet, TI established the Contract Bonus
Plan to provide financial rewards for procurement and logistics employees who t h e c e n t e r f o r c o r p o r a t e c i t i z e n s h i p a t b o s t o n c o l l e g e

Texas Instruments achieve outstanding performance in developing and securing minority business. The plan provides each director in procurement and logistics up to
$3,000 to use as a cash reward for exceptional employee performance. The
Contract Bonus Plan has been highly successful in promoting the development of minority and women business procurements with TI.
M/WBD also supports a contract bonus plan for its supplier sourcing employees, based on a cross-functional team effort to promote minority business development. The process begins with the selection of 20 minority suppliers who have the greatest potential for increased business development for commodities or services. M/WBD staff select these suppliers based upon supplier feedback, the staff’s knowledge of services, and overall capability. Then, strategy teams for each supplier are established — typically consisting of the purchasing agents, M/WBD staff, operations personnel and the supplier. The team identifies potential services the supplier may be able to provide or expand, and then defines the obstacles that may restrict the supplier from providing the selected service or commodity. A plan is developed and implemented to best ensure supplier success.
The Contract Bonus Plan has been highly successful. In one year, the selected suppliers increased their business with TI 40 percent over the previous year.
These companies accounted for the majority of the minority- and womenowned business for the company.
6) Mentoring and Training of Minority Suppliers
Supplier mentoring and training is an essential feature of the M/WBD program. The mentoring process includes formal workshops as well as informal one-on-one coaching by employee volunteers, including TI’s senior executives.
TI mentors coach a supplier in the business practices, corporate interface, and personal management practices through workshops, personal coaching, informal advice and general exposure to corporate processes.
TI has partnered with the Bill Priest Institute at the Dallas Community College to provide mentoring resources for minority businesses. TI was also instrumental in establishing the Protégé Program at the Dallas Black Chamber of
Commerce, where minority business owners are taught better business skills.
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The company also provides scholarships for a comprehensive degree program at the University of Texas at Austin that minority business owners are encouraged to attend.
The mentoring process is driven by the minority supplier’s need to develop or maintain business. The volunteers that provide mentoring may be purchasing agents, facilities project engineers, facility management or members of senior management. Much of the mentoring is network-based, helping minority business owners understand the large corporate environment.
TI has also contracted with business consultants to assist minority companies in specific areas, such as financial planning. Additionally, TI employees with specific skills may sometimes assist a minority business in technical areas, for example, computer systems application.
Mentoring is a balancing act. There is a dilemma within TI on how much should be done. Though the staff wishes to maintain a low profile when it comes to mentoring, informal mentoring was one of the most frequently mentioned features by minority suppliers of TI’s support for minority business. Not only did minority suppliers express appreciation for the assistance offered in their business development; they treasured the relationships established with individuals at TI.
7) Broad-based Community Support through TI Philanthropy
Another factor contributing to success has been the close linkage of the M/WBD program with TI’s philanthropic activities. TI has a long heritage of community support. Many of the company’s philanthropic activities have supported community development initiatives in South Dallas and low-income communities. As stated by Win Skiles, senior vice president of public affairs, “We’ve tied our philanthropic dollar to the minority-contracting dollar to try and build educational opportunity in the southern sector. Our philanthropic dollar has complemented the program. It was a factor in these decisions.”
8) Leadership and Volunteerism
Corporate giving and community grants are not TI’s only community investment. Following are some examples of the company’s community volunteerism t h e c e n t e r f o r c o r p o r a t e c i t i z e n s h i p a t b o s t o n c o l l e g e

Texas Instruments activities focused on minority- and women-owned business development and low-income community development:
• Chamber Membership: TI has been an active participant in area chambers of commerce including the Greater Dallas Chamber of Commerce, Dallas Black
Chamber of Commerce, Greater Dallas Hispanic Chamber of Commerce,
American Indian Chamber of Commerce of Texas, the Greater Dallas Asian
American Chamber of Commerce, and the North Texas Women’s Business
Council.
• The Dallas Plan: By 2000 create Dallas as one of the nation’s best cities — includes Southern Sector development.
• Julia C. Frazier Elementary: Inner-city school mentoring program.
• Executive Resource Model: TI business executives mentor school principals
— expanded to network of inner-city schools.
9) Venture Capital Fund to Revitalize Low-Income Communities in Texas
In addition to the M/WBD Program and philanthropic investment, TI has joined with other businesses in Dallas to create the North Texas Opportunity Fund
(NTOF). NTOF is a private equity firm established to provide equity capital and entrepreneurial assistance to small and mid-sized businesses that are located in or are willing to expand operations in under-served north Texas regional markets, particularly in southern Dallas.
The goal of NTOF is to promote the revitalization of low-income communities, support women- and minority-owned business development, and demonstrate the success of this investment in order to encourage others to invest. Southern
Dallas represents half of the population and half of the land mass for the city, but only 16 percent of the tax base. NTOF seeks to raise over $25 million in capital. As a limited partner, TI has committed to invest $3 million. Closing on the first loans occurred in 2000. TI has been a key leader in the development of the
North Texas Opportunity Fund.
TI’s commitment to economic development in the greater Dallas community includes a comprehensive business strategy that combines a focused purchasing program, corporate philanthropy and employee volunteers, with a sophisticated equity loan program. The loan program promotes the expansion of small and t h e c e n t e r f o r c o r p o r a t e c i t i z e n s h i p a t b o s t o n c o l l e g e
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Survival during a period of major change is testament that a program is truly integrated into a company’s business strategy. TI’s program passed this test when in the same year the company’s CEO died and the company sold its defense business to Raytheon.
The two events meant that the M/WBD program lost its most visible and important champion as well as the business that was a major source of contracts and the impetus for the program. Management changes added to the unsteady climate at TI, as the company refocused on the remaining businesses in its Dallas operation.
These changes presented many serious challenges to to M/WBD. The defense business had offered a broader choice of opportunities for minority contractors than the semiconductor industry. And, without the defense business, TI needed fewer goods and services from all of its suppliers, minority-suppliers included
The program seemed on even shakier ground when reduced opportunities for suppliers raised questions about TI’s commitment to M/WBD — especially with the disappearance of mandatory regulations to force the matter. A dearth in communication from TI during the company’s difficult transition added to suppliers’ suspicions and fears. Clearly, TI needed a plan to strengthen its commitment and to re-establish internal and external buy-in amidst the change.
Commitment to the M/WBD strategy turned the situation around. It started with a "back to basics" aproach: getting the new CEO hands-on and more visible; re-educating internal stakeholders on business reasons for the program; and training procurement agents and minority suppliers to work together effectively. TI also added two additional staff to the program and gave the director full-time dedication to the post to demonstrate commitment.
TI took bolder, more innovative steps to grow suppliers, like helping them form business relationships to gain new capabilities that would help them expand. TI also required its existing suppliers to identify and utilize minority businesses as a means of growing the supplier base at a faster rate. TI initiated new business events to give the program a spark. "Trade Fairs" where minority suppliers could demonstrate their services to TI employees provided networking opportunities. And in partnership with the Minority Business Development
Board, TI initiated a forum called "The Big Deal." The forum gave area businesses a place to share best practices and success stories related to minority- and women-owned business development, encouraging other businesses to develop their own M/WBD programs.
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Texas Instruments mid-sized businesses that are located in or are willing to expand operations in under-served north Texas regional markets, particularly in southern Dallas.
10) Continuous Improvement, Innovation
The M/WBD program has succeeded because of its long-term commitment (a given for successful BCD), and a pledge to continuous improvement and innovation. TI has evolved its program in concert with internal and external changes, and continues to focus senior management attention on ongoing review and analysis.
Changes in business structure and continuing changes in available suppliers required TI to be proactive and innovative in developing minority suppliers.
This innovation not only involved internal education and training, but also creative strategies to attract new minority businesses and expand existing businesses to meet TI’s new procurement needs. TI’s innovation has resulted in new business development, stronger supplier links, and an improved supplier structure in the Dallas area.
11) Building and Strengthening Community Ties
As TI focused on an economic development program in the Dallas area, they worked with existing community organizations and helped to create new ones.
TI executives also played a critical leadership role in encouraging other companies to become involved in community and economic development.
While community leaders and minority suppliers recognize TI as the primary driver for the Minority/Women Development program, they acknowledge other community organizations for playing a significant role in the program’s success, most notably, local chambers of commerce and business councils. The Dallas-Fort
Worth Minority/Women Business Development Council assisted in the formulation of strategies for program development. The Chambers played several important roles in support of the M/WBD program — identifying potential minority vendors, offering training opportunities, and providing networking opportunities. TI maintains a close association with the area chambers of commerce and many TI managers serve in leadership roles in these organizations.
Chambers are also an important resource in the development and training of t h e c e n t e r f o r c o r p o r a t e c i t i z e n s h i p a t b o s t o n c o l l e g e
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As TI concentrated its M/WBD efforts on economic development in the communities where its employees worked and lived, it became more involved in city-wide efforts to encourage other companies to become involved in community and economic development. This led to the formation of the Dallas Together Forum in 1993. With TI as a key leader, concerned city, business, and community leaders came together to address racial and economic inequality issues. minority suppliers through both formal and informal processes.
They also provide networking opportunities for minority suppliers and for area businesses. Nearly every minority supplier interviewed mentioned an occasion where they either became aware of a business opportunity or made a critical contact as a result of a chamber meeting or function.
Participating businesses voluntarily commit to participate in the
"Private Sector Covenant for Workplace Diversity and Minority
Economic Opportunity" by annually establishing performance goals to promote economic opportunities for minorities within their companies. Each year the forum publishes and distributes these goals and the results.
TI employees involved in chamber activities frequently play a leadership role related directly to minori-
The forum’s leadership is multi-ethnic with African-American,
Hispanic, Asian, and white business leader representation.
Hundreds of businesses in the Dallas area are involved in the forum. As a minimum, participating organizations establish goals and report dollar amounts of purchases from ethnic minority firms; percentages of ethnic minority new hires; and percentages of ethnic minority professional/management/board positions newly filled.
ty business development. This provides visibility and accessibility, a critical element of the M/WBD program’s success. Their presence provides the opportunity for minority suppliers to develop personal relationships with TI employees. These relationships help the suppliers learn how to work inside a large organization.
TI’s executives understood the importance of the economic development of
Dallas’ minority communities to TI’s future. The ethnic and minority population in Texas is very diverse, and TI recognizes it as a rich source of suppliers, employees and customers that bring opportunity for business development. The program has provided great benefit to TI, not only in the development of a stronger supplier base, but also by establishing strong community relationships and enhancing the company’s reputation as a socially responsible corporate citizen. The program is providing a competitive advantage through lower operating t h e c e n t e r f o r c o r p o r a t e c i t i z e n s h i p a t b o s t o n c o l l e g e

Texas Instruments costs, increased production flexibility, enhanced employee recruitment and retention, improved community infrastructure, and expanded minority resources and market potential. The community, too, has seen improvements in infrastructure, economic development, minority community leadership, racial relations, and supplier-related employment growth.
TI’s M/WBD model has been adopted and implemented by a wide range of area businesses. Through its flexibility, foresight, and conviction—tested amidst external and internal change—Texas Instruments has achieved a model for business and community development that contributes to both business and community success.
TI managers and community leaders identify three primary reasons for TI’s active support of the Minority/Women Business Development Program.
M/WBD:
1) Strengthens the company’s competitive position
TI’s management clearly recognizes a relationship between a healthy community and the company’s ability to compete and be successful.
2) Creates a diverse and robust supply chain and reduces costs
The success of the company rests with its ability to secure quality commodities and services at competitive prices. By working to develop minority- and women-owned businesses in the local community, TI benefits by increasing the available suppliers that compete for TI’s business. Not only are purchasing costs reduced, the new business opportunities and favorable impact of small-business growth on the local economy reduces the corporate and personal taxes.
3) Builds a healthy community
In the US, minority groups and women are the fastest growing segments of the workforce. Ethnic minorities represent a significant customer base and employee resource for business. This is particularly true in Texas where ethnic minorities represent approximately 41 percent of the population, versus
26 percent for the entire US. TI views minority- and women-owned businesses as an under-utilized resource.
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The company recognizes the import h e c e n t e r f o r c o r p o r a t e c i t i z e n s h i p a t b o s t o n c o l l e g e
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16 tance of equal distribution of economic opportunity or economic parity.
TI managers, local community leaders, and business owners report a strengthened local community, enhanced reputation, reduced costs, and enhanced quality of life for employees as benefits of TI’s M/WBD Program. The company also receives many benefits from building a stronger local economy, including expansion of the tax base which reduces both personal and corporate tax rates. A better quality of life increases the attractiveness of Dallas for potential TI employees, and existing employees have gained a new sense of pride in the company.
While there has been a downward trend in the total procurement dollars nationally, that trend has been reversed in the Dallas area. There, minority- and women-owned business purchases increased from $45 million in 1998 to $56 million in 1999. TI alone has purchased $624 million through minority- and women-owned businesses in the past five years.
With the continued success of its M/WBD Program, the Texas Instruments case demonstrates that a company can move from a “defensive” position of government compliance to an active one in which directed efforts to invest in the community yields real business opportunities. With foresight, clear and dedicated leadership, innovation, high standards, and the flexibility to respond to internal and external changes, TI demonstrates a new mindset in business and community development. TI drives its program with a strong organization within the business that maintains a clear and specific vision to build infrastructure that will help business and the community thrive. TI maintains strong relationships with the community it serves, which understands and is working toward the same vision. With equal intentions and expectations, they work together to build business and community. As a testament to its success, over 100 businesses have already followed TI’s example, using its framework as a model for business and community development.
The full 50-page case study is available through the Center for Corporate Citizenship.
2 op.cit. Texas Instruments web page.
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About The Center
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E-MAIL: ccc@bc.edu • www.bc.edu/corporatecitizenship