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© 2008 Hewlett-Packard Development Company, L.P.The information contained herein is subject to change without notice
HP Global Citizenship
Stanford Global Justice Presentation, 3/13/09
Bonnie Nixon, Director of Environmental Sustainability
2 3/4/2009
HP’s global citizenship legacyHP’s commitment to social and environmental responsibility started with Bill Hewlett and David Packard in the 1930s and continues today
Start 1930s 1980s –1990s 2000s – Today
Focused sustainability programs to drive change, action and leadership1987 First IT company HW recycling.1987 Computer product recycling1988 Hazardous Waste Minimization
Council1989 PVC removed from DeskJet pkg 1991 Planet Partners Program; Ozone
depleting substances eliminated1992 Design For Environment Program;
EPA Energy Star Partner1993 Instant-On Technology1998 General Specification for the
Environment
HP’s deep-rooted legacy focused on corporate social and environmental responsibility1930s Commitment to the community1950s Global Citizenship objective1970 First environment control
coordinator at HP 1971 Recycling computer print-outs and
punch cards.1973 Environmental policy to reduce
pollution1975 Energy Conservation Guidelines 1976 Van pools in Bay Area.
Innovation to lessen IT’s impact and enable the sustainable economy2001 Bio plastics corn printer shell. 2002 Supply Chain code of conduct;
Bulk Delivery of Volume orders2003 1st signatory to have WEF
emissions data accepted.2004 Co-established pan-European take
back and compliance system2006 Dynamic Smart Cooling.2006 International climate change
initiative World Wildlife Fund. 2007 Recycled 1 billions pounds; 1st
E*4.0 PC; 1st EPEAT Gold PC2008 RPET from PP used in HP cartridges
3 3/4/2009
HP global citizenship and environmental sustainability mission
Global citizenship is HP's comprehensive commitment to hold ourselves to a higher standard of integrity, transparency and accountability. Our values help us balance and align our business goals with our impact on society and the planet. PO
SITIO
NIN
GM
ISSIO
N
Ethics & compliance
Maintain and enhance a recognized world class ethics and compliance culture
Human rights & labor practices
Ensure healthy, safe and positive working conditions in the communities in which we and our suppliers do business
Privacy
Provide world class privacy leadership and build a trusted relationship with customers and stakeholders
Social investment
Address educational and social needs through responsible philanthropicinvestments
Environmental sustainability
Be THE most environmentally responsibleinformation technology company
4 3/4/2009
HP Supply Chain
5 3/4/2009
HP supply chain: broad cross section of products
Technology Systems Group
Imaging and Printing Group
Personal Systems Group
6 3/4/2009
Supply chain manufacturing locationsHP’s suppliers of product materials, components and services
Americas
EMEA
Asia Pacific/Japan
Major locations of HP product materials, components and services suppliers
Americas Europe & Middle East Asia Pacific & Japan
7 3/4/2009
Risky Business in 2008
Strike Hits Vietnam Nike Factory April 1, 2008
Thousands of workers producing 10% of the 75 million pairs of shoes made annually for Nike have shut down a Vietnamese plant demanding higher pay, bonuses and cost of living allowances
INTERNATIONAL: Bottom of the Barrel
Mar 24, 2008 Millions of Asian workers producing goods sold are trapped in servitude.
Shanghai China: Abusive Child Labor Ring Is Exposed May 1, 2008
Severe labor abuses extended into the heart of its export economy.
8 3/4/2009
____________________________________________________________ Disclosure Transparency
_______________________________________________ Independent Monitoring
_______________________________________________ Industry Collaboration
_______________________________________________ Philanthropy Compliance
_______________________________________________ Training Education
_______________________________________________ Independent Compl. Program
_______________________________________________ Compliance Program
_______________________________________________ ID Supply Chain
_______________________________________________ Assess Risk
_______________________________________________ External Monitoring
_______________________________________________ Internal Monitoring
_______________________________________________ Build Internal Capacity
_______________________________________________ Develop Audit Procedures
_______________________________________________ Education of Expectations
_______________________________________________ Code of Conduct
Program Evolution: Experience of Other Industries
Time
9 3/4/2009
Corporate policy
Code of conduct
Supplier assessment
Supplier
audit
Corrective action
Capability building
Making progress in the supply chain
HP’s Systems Management Approach
– Risk based country, site & partnership assessment
– Partnership oriented engagement & auditing
– Surface and address root causes
– Worker voice is critical to success
Low Risk
Assessed
Audited
Not assessed
10 3/4/2009
Root Cause Analysis is critical to solving problems
A management systems approach drives sustainable solutions
Labor
Health & Safety
Environment
Ethics
ManagementSystems
Uphold the highest standards
Evaluate & control exposure to hazards
Treat employees with dignity & respect
Protect the environment
Electronic Industry Code of Conduct
11 3/4/2009
EICC : www.eicc.info
GeSI SCWG: www. gesi.org
Coalition Members
12 3/4/200912 4 March 2009
Electronic and Multi-Industry Harmonization• EICC & Global e- Sustainability Initiatives (GeSI)• FIAS China Capability Building Strategy (Shenzhen) • Beyond Monitoring & Global Social Compliance Program• Climate Change Trainings and Factory Tools (CDP)
China & Asia Pacific • Factory Programs/Training with NGOs, FISI & HER Project• Thailand 2nd & 3rd Tier Assessments & Training• India Project with US State Dept $ & NGOs
Europe, including Central & Eastern Europe• Central European Supplier Responsibility (CESR)• CSR Laboratory with CSR Europe• ILO Tripartite Agreement & NGO Engagement
Mexico • Industrial Association Training Programs • CEREAL Grievance Management & Training• HER Project – Women’s Healthcare in Factories
Global Initiatives & Local Programs
13 3/4/2009
Building a Business Case
2. Productivity
Output per hour
Production value/hour
% of Delay Time
4. Wages & Hours
Average wages
Average hourly wage
Average working hours per month
5. H&S
Accident Incident Rate
Lost Workday Rate
3. Quality
Rejection Rate
Rework Rate
1. HR & Labor
% New Workers
Retention Rate (new & old workers)
# Complaints & Disciplinary Action
(Worker Satisfaction – Interviews & Surveys)
Metrics are submitted in the following categories;