2012 Report on Global Citizenship

Environment
Xerox is a member of the U.S. Environmental Protection Agency's Climate Leaders Program and the Business Roundtable's Climate RESOLVE program. Both are voluntary initiatives to help companies develop long-term strategies for climate change. We also helped create and design the ENERGY STAR® program for imaging equipment, which is intended to ensure maximum energy efficiency in imaging products.

We promoted and participated in the creation of the European voluntary agreement to improve the environmental performance of imaging equipment, which commits producers to comply with strict environmental requirements in the design of their products above and beyond legal requirements.

We are actively engaged with European regulators in the creation of an EU ecolabel for imaging equipment and supplies and in the harmonization of public purchasing requirements for such equipment. We also act as the interface between DIGITALEUROPE and the European Commission on matters related to the EU's ENERGY STAR program.

Retirement Policy
We believe policy makers should foster a legal and economic framework that encourages employers to maintain and increase the number of workers who have access to employer-provided retirement security. We take our commitment to our employees, both current and retired, very seriously and will work with the U.S. Congress and the Administration to formulate policies that allow us to meet those commitments.

Free Trade
We support open markets and free trade. International trade is a powerful engine of global economic growth; economic growth, in turn, fosters job growth and improved living conditions and opportunities around the world. We support government-to-government negotiations aimed at liberalizing trading rules and opening markets, both on a bilateral and multinational basis. More open markets are critical both for our technology and particularly for our services, where we face numerous barriers worldwide. We believe that all participants must be responsible citizens of the countries in which they do business.

Intellectual Property
As a participant in the Coalition Against Counterfeiting and Piracy, we plays an active role in combating theft of intellectual property by counterfeiters that manufacture "knock-off" products. The coalition is a strong advocate of stronger laws against dealing in counterfeit goods and has developed best-practice guidelines that help companies protect their supply chains.

Competitiveness
Through our support of the Change the Equation initiative, which directs more resources to science, technology, engineering and mathematics (STEM) education, we focus on improving the nation's ability to compete on the global stage.

Corporate Taxation
We are working in support of U.S. corporate tax reform. The U.S. has the highest tax rates among large, industrialized nations. Corporate tax reform is needed if U.S. companies are to be fully competitive in overseas markets where 95% of the world's population lives.

State Legislation
Xerox promotes policy positions that make IT more effective in supporting State and Local Government missions, improve government technology acquisition processes, maximize the positive financial impact of IT investments, and create better outcomes for Americans served by State and Local Government agencies and programs. Our Office of Global Government Affairs has established a network of state and local government consultants whose responsibilities include monitoring legislation and policies that would impact our various government lines of business. Examples of our government business include annual budgets, regulation of credit card fees, health insurance exchanges, statewide and work zone speed enforcement and electronic toll collections.

Healthcare Reform
Comprehensive healthcare reform is essential for the long-term vitality of the U.S. economy. While the healthcare law passed in 2010 has some positive elements, significant reform continues to be needed to create a sustainable, high-quality system that is more accessible, less costly and more patient-centered. We support every citizen having access to quality and affordable health coverage, which is why any reform solution must address the core issues of the growing cost of healthcare. We believe in maintaining the Employee Retirement Income Security Act (ERISA), which provides employers with the ability to offer consistent benefits to employees.

As a board member of the following professional organizations and coalitions, Xerox has taken a leadership role in the employer community on efforts to reform the U.S. healthcare system:

• Corporate Health Care Coalition (CHCC): CHCC is a coalition of large, multi-state, self-insured companies focused on the implementation of the Affordable Care Act.
• National Coalition on Benefits (NCB): The NCB consists of 175 companies and trade associations. It is dedicated to working with Congress to maintain employers' ability to provide uniform health and retirement benefits to employees and retirees across state and local lines and to ensure that federal health reform initiatives preserve ERISA benefits.
• American Benefits Council (ABC): ABC is a trade association whose corporate members either sponsor directly, administer or service retirement, health and stock compensation plans covering more than 100 million Americans. It is staffed by a team of professionals in the benefits field with expertise in investments, retirement, health insurance, accounting, actuarial science, banking, law, and benefits that represent plan sponsors to Congress, the courts and the regulatory agencies.
• ERISA Industry Committee (ERIC): A trade association, ERIC represents the employee benefits and compensation interests of America's major employers.

• Business Roundtable: The Business Roundtable has been actively engaged in shaping the debate on corporate tax reform, and is supportive of Xerox's goals for reform that will enhance the ability of U.S. companies to compete internationally. We participate in the policy formation and advocacy functions for the Business Roundtable's tax reform efforts. The Roundtable has also focused heavily on developments with the most burdensome of EPA's proposed regulations covering areas such as ozone, carbon emissions and boiler controls, proposing less costly methods of achieving EPA's overall environmental goals.
• DigitalEurope: DigitalEurope is the pre-eminent advocacy group of the European digital economy acting on behalf of the information technology, consumer electronics and telecommunications sectors. They are dedicated to improving the business environment and to promoting industry's contribution to economic growth and social progress in the European Union.
• Information Communication Technology Association of Canada (ITAC): ITAC is Canada's principal advocacy group for the information communications technology industry. As a leading member of ITAC, We play a key planning and development role which includes helping facilitate public-private sector dialogue through platforms such as the World Congress on Information Technology – the world's largest gathering of public and private sector executives in the information communications industry.
• National Governors Association: The National Governors Association (NGA) is the bipartisan organization of the nation's governors. The NGA promotes visionary state leadership, shares best practices and speaks with a collective voice on national policy. Through NGA, governors identify priority issues and deal collectively with matters of public policy and governance at the state and national levels.
• The President's Export Council (PEC): The PEC is the principal national advisory committee on international trade. The Council advises the President of government policies and programs that affect U.S. trade performance; promotes export expansion; and provides a forum for discussing and resolving trade-related problems among the business, industrial, agricultural, labor, and government sectors.
• TechAmerica: TechAmerica is the leading voice for the U.S. technology industry, the driving force behind productivity growth and jobs creation in the United States and the foundation of the global innovation economy. It is the technology industry's only grassroots-to-global advocacy network, with offices and partnerships in state capitals across the country, Washington, DC, Europe, Asia and around the world. TechAmerica was formed by the merger of AeA (formerly the American Electronics Association), the Cyber Security Industry Alliance (CSIA), the Information Technology Association of America (ITAA) and the Government Electronics & Information Technology Association (GEIA).

• The integrity and character of the candidate;
• The candidate's position on significant policy issues of importance to our company;
• The candidate's overall support for our company and industry;
• The candidate's overall support for the free enterprise system and U.S. competitiveness;
• A demonstrated willingness on the part of the candidate to work with our company and industry to achieve responsible public policy solutions;
• The candidate's representation of a state or district in which our company has significant employees or facilities;
• The candidate holds an important committee assignment on a key committee whose actions could affect our business;
• The candidate holds a leadership position within their political party;
• Candidate's electability; and
• Permissibility under applicable law.

In addition, XPAC focuses on contributions that go directly to candidates for office. Special exceptions are required for:

• Out-of-election-cycle contributions;
• Contributions to leadership PACs;
• Contributions to trade association PACs; and
• Contributions to political parties.

XPAC does not permit contributions for:

• Independent expenditure or ballot measure committees;
• Electioneering communications;
• Candidates for judicial office; or
• Presidential candidates at any stage in the campaign process.