If an indicator of forced labor is detected through the Devices audit program or Worker Hotline program, the RS Team investigates and works with suppliers to remediate the indicator of forced labor through corrective action, including taking steps to mitigate worker harm, prevent goods manufactured with forced labor from being sold or imported, and actions to suspend or terminate suppliers that use forced labor. The SEA Academy Program supports capacity building among suppliers and Microsoft employees to prevent forced labor issues and drive continuous improvement. In FY22, suppliers were provided online training and capability building to specifically address these issues. p. 9

In FY22, where nonconformances were found, the Devices’ Responsible Sourcing team worked closely with suppliers to develop corrective and preventive action with root cause analysis and, if needed, built

supplier capabilities through training. The FY22 Devices Responsible Sourcing Report provides insight into audit findings for multiple areas.

In cases where our audit findings determined that a factory employee paid recruitment or employment

fees or were underpaid according to legal requirements, we required the nonconformant suppliers to

repay employees for any recruitment or employment fees paid and/or insufficient wages based on local

law and Microsoft requirements. In FY22, suppliers in Microsoft’s Devices repaid $252,367 of recruitment fees and insufficient wages to 13,728 supplier employees, including $62,329 of recruitment fees to 6,888 supplier employees. p 10