Table of Contents

Letter from our CEO.

At Workday, innovation is at the center of our business. We take great pride in providing our customers with enterprise applications that help them tackle some of today’s most complex business challenges. Additionally, our focus on innovation extends beyond our products and services, as we recognize the transformational role it plays in addressing today’s social and environmental challenges.

Each year, we set ambitious goals that align with our core values to address these challenges. For example, in 2016, we launched Workday’s Belonging and Diversity function, which supports our belief that employee diversity—including different backgrounds, experiences, perspectives, insights, and skills—fuels innovation and creates a broader connection to the world. As part of this program, we signed the White House Equal Pay Pledge because we deeply believe that everyone should be paid fairly for their work.

Additionally, we continued to be recognized globally as a great place to work because of our employee-first culture. This included being named #31 on Fortunes “100 Best Companies to Work For” list in addition to earning the spot as the #1 top workplace in the Bay Area for large companies for the sixth consecutive year by the Bay Area News Group.

The environmental focus at Workday was on reducing our carbon footprint and investing in renewable energy programs. We announced our goal to achieve net-zero carbon emissions by 2021, as well as our continued commitment to use 100-percent renewable energy.

The Workday Foundation’s philanthropic programs evolved and provided support for our communities across the globe. This included increasing our investment in Year Up—an organization that provides technical and soft-skills training to young adults without college degrees with the goal of full-time employment in corporate careers—to $1 million.

At Workday, we measure our success not only in financial terms, but also by how we operate in the community and environment. As we continue to build for the future, we welcome your feedback on how we can improve.


Aneel Bhusri Co-Founder and CEO

Our commitment to sustainable business.

At Workday, each person is more focused on we rather than I, and honesty and integrity are as integral to our success as our innovative products. Our core values help us define what’s important.

In alignment with these core values, Workday has committed to sustainable business practices that go beyond being “green.” While we continue to look for and adopt new ways in which we can proactively address the planet’s environmental challenges, we also believe that making a positive impact in social and economic areas is smart business. We believe that in order to be a responsible corporate citizen, we have to do our part to look after the best interests of the people, businesses, and communities that make up the Workday ecosystem.

We focus on innovative business practices that improve services for customers, affect our communities in positive ways, and minimize our environmental impacts every day.

Our corporate responsibility and sustainability efforts align with our company’s core values, which support our commitments to our stakeholders:

  • Employees
  • Customer service
  • Innovation
  • Integrity
  • Fun
  • Profitability

Who we are.

Workday is a leading provider of enterprise cloud applications for finance and human resources. Founded in 2005, Workday delivers financial management, human capital management, and analytics applications designed for the world’s largest companies, educational institutions, and government agencies. Organizations ranging from medium-sized businesses to Fortune 50 enterprises have selected Workday.

Workday applications include:

  • Workday Financial Management
  • Workday Human Capital Management (HCM)
  • Workday Payroll
  • Workday Time Tracking
  • Workday Recruiting
  • Workday Expenses
  • Workday Grants Management
  • Workday Planning
  • Workday Learning
  • Workday Professional Services Automation
  • Workday Student
  • Workday Inventory

Although Workday applications work seamlessly together, our customers can use the Workday Integration Cloud to integrate with third-party applications. The Workday Integration Cloud is available to all customers as part of their regular Workday subscription.

Since it was founded in 2005, Workday has released 27 updates as of fiscal year-end 2017. Learn more about our applications.

Workday, Inc. is a publicly traded company with shares listed on the New York Stock Exchange under the symbol WDAY. For more information on Workday financial results, including net revenues, total assets, and percentage of ownership of largest shareholders, refer to the Workday Investor Relations site for relevant SEC filings. (These filings include the Workday FY17 10-K Report and S-1 Registration Statement.)

Workday headquarters is in Pleasanton, California; the company’s European headquarters is in Dublin, Ireland. We also maintain Workday offices across North America, EMEA, and APJ. Check the full list of Workday offices.

Who are Workday customers?

As of fiscal year-end 2017, Workday had more than 1,500 customers across several different industries, including education and government, financial services, healthcare, life sciences, manufacturing, retail and hospitality, services, and technology. Workday had more than 200 customers headquartered in Europe and more than 130 of the Fortune 500 had selected Workday as of fiscal year-end 2017. Read this representative list of customers by industry.

How many people does Workday employ?

As of fiscal year-end 2017, Workday had employed more than 6,600 employees in multiple locations worldwide.

Our value chain.

We are a cloud-application provider, so our supply chain is not as materials-based or labor intensive as many industries, such as manufacturing or oil and gas. We have modeled a simplified value chain that illustrates major stages of value creation and have identified key points where our activities, products, or services impact the priority issues identified in our materiality analysis.

No significant changes to the Workday structure, ownership, or supply chain occurred during the reporting period. In 2016, we announced our intention to make certain of our service offerings available through Amazon Web Services (AWS) beginning in 2017. In 2015, Workday acquired two U.S. software companies: Gridcraft, Inc. and MediaCore Technologies, Inc. In 2016, Workday acquired two U.S. software companies: Platfora, Inc. and Zaption, Inc. Further details are provided in our FY16 10-K and FY17 10-K.

Report profile.

Our 2017 report shares Workday’s vision and strategy for sustainable business, celebrates our successes, and identifies areas where we can improve. The following sections describe the Workday sustainable business practices in multiple areas.

Workday’s fourth biennial sustainability report was developed in accordance with the GRI G4 Core guidelines. Standard Disclosures are listed in the GRI Content Index. The reporting period is fiscal years 2016 and 2017 (February 1, 2015, to January 31, 2016, and February 1, 2016, to January 31, 2017) unless otherwise noted with specific data. This report’s scope, unless otherwise indicated in specific sections, covers all Workday, Inc. operations and offices globally. We welcome your questions or comments about this report or our sustainability efforts. These can be directed to global.impact@workday.com.

Workday materiality analysis.

Community Engagement

Programs to engage the local community where the company operates. Includes seeking and incorporating feedback into operating activities.

GRI G4 Material Aspect
Economic Performance, Indirect Economic Impacts

Customer Satisfaction

Programs related to customer satisfaction. Includes customer service, product stewardship, and general customer-relationship management.

GRI G4 Material Aspect
Product and Service Labeling

Belonging & Diversity

Programs related to hiring, developing, and retaining a diverse global workforce; encouraging a culture of belonging; and creating products to help customers build diverse workplace cultures.

GRI G4 Material Aspect
Diversity and Equal Opportunity

Energy and Carbon Footprint

Efforts to measure, manage, and minimize energy use and the resulting greenhouse gas emissions. Includes direct and indirect energy consumption, green building practices, reducing the impacts of Workday’s own IT operations, and efforts to minimize the environmental impacts of transporting employees.

GRI G4 Material Aspect
Energy, Emissions, Products and Services

e-Waste

Efforts and initiatives to responsibly dispose of electronic waste and increase electronics recycling and waste diversion.

GRI G4 Material Aspect
Effluents and Waste

Governance and Ethics

Practices related to corporate governance and operating ethically and with integrity. Includes core values, code of conduct, and governance structure.

GRI G4 Material Aspect
Governance and Ethics*

Health and Safety

Issues relating to standard occupational health and safety performance and policies, employee health and wellness programs, and emergency and disaster preparedness management.

GRI G4 Material Aspect
Occupational Health and Safety

Human Rights and Labor

Related to a range of human rights issues. Includes non-discrimination, child labor, forced labor, indigenous rights, freedom of association, and collective bargaining.

GRI G4 Material Aspect
Human Rights, Labor Practices and Decent Work

Philanthropy and Volunteering

Programs to give back to local communities through philanthropy and volunteerism. Includes supporting employee charitable investments of time and money.

GRI G4 Material Aspect
Indirect Economic Impacts

Privacy and Data Protection

Efforts to safeguard customers’ sensitive business information and data. Includes initiatives to maintain rigorous data-security standards to prevent unauthorized data disclosures.

GRI G4 Material Aspect
Customer Privacy

Public Policy

Participation in public policy development. Includes lobbying efforts and political contributions.

GRI G4 Material Aspect
Public Policy

Stakeholder Engagement

Programs related to how the company engages with stakeholders (including processes for identifying stakeholders, NGOs, and partnerships). Includes stakeholder involvement in environmental and social impact programs.

GRI G4 Material Aspect
Stakeholder Engagement*

Talent & Culture

Initiatives related to employee satisfaction, talent retention, and company culture. Includes employee compensation, benefits, performance-review practices, employee recognition, quality of work environment, culture and values, and commitment to work-life balance.

GRI G4 Material Aspect
Employment, Training and Education

Waste

Efforts and initiatives to minimize solid waste and increase recycling and waste diversion.

GRI G4 Material Aspect
Effluents and Waste

Water Use

Efforts and initiatives to minimize water use.

GRI G4 Material Aspect
Water

Issues Definition GRI G4 Material Aspect

Belonging and Diversity

Programs related to hiring, developing, and retaining a diverse global workforce; encouraging a culture of belonging; and creating products to help customers build diverse workplace cultures.

Diversity and Equal Opportunity

Community Engagement

Programs to engage the local community where the company operates. Includes seeking and incorporating feedback into operating activities.

Economic Performance, Indirect Economic Impacts

Customer Satisfaction

Programs related to customer satisfaction. Includes customer service, product stewardship, and general customer-relationship management.

Product and Service Labeling

Energy and Carbon Footprint

Efforts to measure, manage, and minimize energy use and the resulting greenhouse gas emissions. Includes direct and indirect energy consumption, green building practices, reducing the impacts of Workday IT operations, and efforts to minimize the environmental impacts of transporting employees.

Energy, Emissions, Products and Services

e-Waste

Efforts and initiatives to responsibly dispose of electronic waste and increase electronics recycling and waste diversion.

Effluents and Waste

Governance and Ethics

Practices related to corporate governance and operating ethically and with integrity. Includes core values, code of conduct, and governance structure.

Governance and Ethics*

Health and Safety

Issues relating to standard occupational health and safety performance and policies, employee health and wellness programs, and emergency and disaster preparedness management.

Occupational Health and Safety

Human Rights and Labor

Related to a range of human rights issues. Includes nondiscrimination, child labor, forced labor, indigenous rights, freedom of association, and collective bargaining.

Human Rights, Labor Practices and Decent Work

Philanthropy and Volunteering

Programs to give back to local communities through philanthropy and volunteerism. Includes supporting employee charitable investments of time and money.

Indirect Economic Impacts

Privacy and Data Protection

Efforts to safeguard customers’ sensitive business information and data. Includes initiatives to maintain rigorous data-security standards to prevent unauthorized data disclosures.

Customer Privacy

Public Policy

Participation in public policy development. Includes lobbying efforts and political contributions.

Public Policy

Stakeholder Engagement

Programs related to how the company engages with stakeholders (including processes for identifying stakeholders, NGOs, and partnerships). Includes stakeholder involvement in environmental and social impact programs.

Stakeholder Engagement*

Talent and Culture

Initiatives related to employee satisfaction, talent retention, and company culture. Includes employee compensation, benefits, performance-review practices, employee recognition, quality of work environment, culture and values, and commitment to work-life balance.

Employment, Training and Education

Waste

Efforts and initiatives to minimize solid waste and increase recycling and waste diversion.

Effluents and Waste

Water Use

Efforts and initiatives to minimize water use.

Water

* General Standard Disclosure area.

Understanding what matters most.

Workday regularly identifies a core set of priority issues to guide our corporate responsibility and sustainability strategy as well as our disclosure reporting. These priority issues reflect the topics of highest concern to Workday and our stakeholders.

Our materiality analysis is guided by understanding the impacts of our value chain, our business strategy and corporate responsibility strategy, macro-societal trends, and the interests of our stakeholders.

We completed our first materiality analysis in preparation for our initial report in 2010. We update that analysis periodically and consider industry trends, environmental and societal concerns, shifts in business strategy, and business risks and opportunities.

Top priorities for this report.

Privacy and data protection.

Workday is responsible for safeguarding our customers’ most sensitive information and data. Along with our customers, we must also adhere to data privacy regulatory concerns as well. A privacy or data security breach could severely impact both Workday and our customers’ brands, and we maintain rigorous data-security standards to ensure the absolute safety of our customers’ business information. Learn more about how Workday ensures data security and privacy in “Customer Success.

Customer satisfaction.

We are fiercely loyal to our customers and Workday co-founder Dave Duffield is also known as Chief Customer Advocate. Customer satisfaction is a key metric for Workday. We measure it throughout the year with efforts to retain our existing customer base and attract new customers. Learn more about how Workday promotes customer satisfaction in “Customer Success.

Talent and culture.

Workday believes that happy, productive employees lead to customer loyalty and a prosperous business. That’s why at Workday, employees are our most valuable resource and we pride ourselves on being a great place to work. Learn more about Workday employee programs in “A Better Place to Work.”

Belonging and diversity.

Diversity plays an integral part in maintaining our position as a “best place to work.” By helping recruit and retain top diverse talent, we can maintain a culture where everyone feels valued. Learn more about Workday diversity programs in “A Better Place to Work.”

Philanthropy and volunteering / community engagement.

A healthy, thriving community is an important ingredient for business success. The Workday Foundation focuses on creating career pathways that maximize human potential aims to end the cycle of generational poverty. We do this by empowering people facing barriers to employment with skills that will help them succeed in securing thriving-wage employment. We go beyond the check through skills-based volunteering and offer a wide variety of programs to support and encourage employee engagement in the community. Learn more about Workday community outreach programs in “Social Impact.”

Energy and carbon footprint.

We recognize the impact that greenhouse gas emissions have on the climate. A healthy environment provides the foundation for our economy, and ultimately, for economic opportunity and the future quality of life for our global citizens. We look for new ways in which we can positively address the planet’s sustainability challenges including investing in renewable energy projects where feasible, and providing carbon-efficient products for our customers so they can minimize their impact on the planet. Learn more about our approach to environmental sustainability in “Sustainability in the Cloud.”

Our approach to identifying priority issues.

Our materiality analysis helps define content for our report and identifies priority issues and impacts that we recognize as key to our stakeholders. Our process was based on the Global Reporting Initiative (GRI) “Principles for Defining Report Content” and included the following steps:

  • After identifying our key stakeholders, we marked the priorities for each stakeholder and plotted them on a materiality matrix. Issues that had both significant interest to stakeholders and significant impact to Workday, or that Workday significantly impacted, were identified as high priority.
  • We surveyed stakeholders at our Workday Rising conferences, a user conference where each primary stakeholder group can interact in person. We received input from customers, partners, prospective customers, and employees. In 2016, we heard from over 1,500 stakeholders on the key issues that affect them.
  • We reviewed and refined our existing set of issues to incorporate relevant aspects, indicators, and topics from the GRI “G4 Sustainability Reporting Guidelines.” We also considered material sustainability issues identified in the Sustainability Accounting Standards Board (SASB) Technology and Communications sector guidance.
  • We reviewed customer feedback and prospective customer inquiries, and considered external sustainability research published by nongovernment organizations and sustainability rating agencies.
  • We analyzed the input from steps 1 through 4 against our value chain impacts and strategic corporate initiatives to refine our materiality matrix and determine our priority issues.

Our 2017 update resulted in the following material changes:

  • Employee Satisfaction and Talent Retention were combined and renamed to Talent and Culture
  • Belonging and Diversity was added as a priority issue

The results of our materiality analysis helped guide the content development for this report. High-priority issues received more coverage within this report, while lower-priority topics are included in the report as applicable.

Supporting the United Nations Sustainable Development Goals.

As part of the Workday reporting process for this period, we considered the sustainability context around our priority issues and the United Nations Sustainable Development Goals (SDGs), which were issued after our 2015 “Global Impact Report.” Below, we highlight the goals that align with Workday corporate responsibility and sustainability strategic objectives.

At the United Nations Sustainable Development Summit in September 2015, world leaders adopted the 2030 Agenda for Sustainable Development, which includes a set of 17 Sustainable Development Goals (SDGs) to end poverty and fight inequality and injustice.

Workday directly supports the following goals:

UN SDG: 2017 Global Impact Report area
4. Quality Education Social Impact
5. Gender Equality Belonging and Diversity
7. Affordable and Clean Energy Sustainability in the Cloud
8. Decent work and Economic Growth Social Impact
10. Reduced Inequalities Belonging and Diversity
13. Climate Action Sustainability in the Cloud

We indicate how our activities support the SDGs in the relevant sections of this report per the table above. For more information on the SDGs, please visit the UN’s Sustainable Development Knowledge Platform.

Stakeholder engagement.

Stakeholders are individuals or entities that are affected by an organization’s business activities or that affect that organization’s business activities. These include customers, employees, partners, and the communities in which we operate. Our business model includes engaging with stakeholders to better understand their priorities and react more quickly to business trends that impact our customers.

Workday’s stakeholder engagement philosophy.

Stakeholders, as defined by Global Reporting Initiative (GRI), are individuals or entities that can reasonably be expected to be significantly affected by the organization’s business activities, products, and services, and whose actions can reasonably be expected to affect the ability of the organization to successfully implement its strategies and achieve its objectives. At Workday, we view our stakeholders as part of an interconnected network of partnerships that promote mutual cooperation and success. That’s why building relationships with our stakeholders and engaging in collaborative, rather than competitive, strategies are a critical foundation to our business.

Here are a few examples of ways in which Workday engages with our stakeholders:

  • Customers—We collaborate with our customers in Workday Community, a website where these important stakeholders can “brainstorm” around best practices and product features. They can also ask questions of Workday product experts, vote for new features, receive product-update information, and share assets such as reports and integrations.
  • Leadership—The Workday Leadership team regularly hosts internal “Ask Us Anything” online chats between company leadership and our employees. Any employee can ask questions and provide feedback directly to our senior management. We also have direct lines of communication open to our CEO through email and our CHRO regularly asks for feedback on our culture.
  • Workday Rising—Each year, we host Workday Rising, a user conference where many of our primary stakeholders—senior management, employees, customers, prospective customers, and consulting partners—can engage with each other. We conducted a survey to solicit direct feedback on our corporate citizenship strategy at both our 2015 and 2016 Workday Rising conferences, gathering feedback from over 1,500 stakeholders in 2016.
  • Giving & Doing—We inspire our employees to give back through our Giving & Doing program. Known as Giving & Doing Local Leaders, employees around the world take on a leadership role to champion volunteering and giving at 28 of the largest Workday offices. Local Leaders bring our community programs to life in their areas, seeking out local volunteer opportunities for teams and giving every employee a chance to participate in company-wide initiatives. All employees are encouraged to support the causes that are most important to them through our Giving & Doing program. We offer volunteer grants to organizations where employees donate their time, and we match employee charitable donations. We regularly invite employees to submit the names of charities to the Workday Foundation for grant consideration.
  • Green Teams—We engage our employees through our Workday Green Teams program. Green Teams across 19 of our largest offices consist of passionate employees who volunteer to help Workday assess and improve sustainable business practices. Green Teams provide a platform for engagement and empower employees to introduce meaningful practices at Workday that will reduce our negative environmental impact. Employees suggest sustainability practices that are considered for enterprise-wide implementation.
  • Openness—Our first corporate sustainability report was released in 2010, providing a foundation for transparent and open dialogue with our stakeholders about corporate citizenship topics most important to them and Workday. We report every two years and this is our fourth report since 2010.

Any Workday stakeholder can provide direct feedback to us at global.impact@workday.com.