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HP Global Citizenship Report  >  Supply chain responsibility

Supplier diversity

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FY07 Global Citizenship Report

» Introduction
» Global citizenship at HP
» Ethics and compliance
» Supply chain responsibility
» Performance
» Audit results
» About HP’s supply chain
» Approach
» Standards
» Assessing conformance
» Collaboration
» Third-party audits
» Case studies
» Goals
» Perspective
» Supplier diversity
» Performance
» Climate and energy
» Product reuse and recycling
» Product innovation
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Our supplier diversity program offers suppliers that would not typically approach HP the opportunity to join our global supply chain. We promote diversity among our suppliers because they bring fresh ideas, offer innovative products and processes, and contribute to the economic strength of their communities.

Reflecting the diversity in our customer base also presents an opportunity to gain a competitive advantage and supports our global citizenship efforts. In 2007, we estimate more than $10 billion in revenue came from customers requiring HP to demonstrate diversity in its supply chain.

Large enterprise customers increasingly have their own citizenship policies and expect HP to demonstrate a commitment to diversity. For example, many public bids for the 2012 Olympics in London require evidence of supplier diversity. Evidence of diversity may be required in requests for proposals as well as in ongoing communication with existing customers. Some companies even request that diversity be included in quarterly reports.

Supplier diversity is mandatory for fulfilling contracts with the U.S. government and with most U.S. states and municipalities. In the United States, the main categories of businesses our supplier diversity program supports are minority-owned, woman-owned and veteran-owned. HP has maintained a Corporate Supplier Diversity Program Office for more than 30 years in the United States and belongs to more than 20 supplier diversity organizations in the United States, Canada and Europe.

 Global supplier diversity

In South Africa, our supplier diversity program is part of our strategy to comply with Black Economic Empowerment regulations. In 2007, HP South Africa announced plans to set up the HP Business Institute (HPBI). Through HPBI, HP will make substantial investments in the skills development of black employees as well as new graduates seeking to enter the information and communications technology industry. The institute will train 1,800 people within seven years and will boost HP’s overall investments in broad-based black empowerment to more than R150m (more than $21 million). Training black graduates who are joining or setting up their own small and medium-size businesses helps provide those companies with the talent needed to succeed and grow.

We continue to expand our supplier diversity program in Canada and Europe, and we are working with governments and others to establish appropriate regional definitions of diversity that reflect local society and culture. In 2007, we continued our financial sponsorship of the Canadian Aboriginal Minority Supplier Council (CAMSC), Supplier Diversity Europe (SDE) and Minority Supplier Development-UK (MSD-UK). We sponsored and actively participated in sourcing events aimed at educating minority businesses about opportunities to do business with HP and at creating a pipeline of qualified potential HP suppliers.

We received a research grant from The Copenhagen Centre to participate in Small Suppliers in Global Supply Chains–Partnerships for Competitive Sustainability, a program funded and sponsored by the EU Commission. HP encourages its supplier relationships to recruit small and medium-size companies in Central and Eastern Europe into the program.

Additionally, HP makes philanthropic grants to nonprofit agencies devoted to supporting microenterprises in underserved communities. Building on the success of community investment programs in the United States and Europe, the Middle East and Africa (EMEA), the HP Microenterprise Development Program supports the growth of small businesses in underserved communities around the world. See the Economic development section for detail.

Diverse supplier events

HP hosts events with local business councils and participates in national events that introduce diverse suppliers to potential customers. In 2007, HP procurement professionals participated in more than 20 such events in Canada, Puerto Rico, the United States and Eastern Europe.

In the United States, HP collaborates with SCORE (Service Corps of Retired Executives) to sponsor the multi-city Business Matchmaking Program. Business Matchmaking offers small businesses the opportunity to participate in governmental and major corporate procurement opportunities. In 2007, HP sponsored and participated in Business Matchmaking sessions in Atlanta, Chicago, Dallas and Little Rock.

In 2007, these events facilitated more than 15,000 meetings, including 300 between potential suppliers and HP. Since its inception in 2003, the Business Matchmaking program has been responsible for more than $800 million in contracts, with more in negotiation. To date, the program has facilitated more than 50,000 face-to-face meetings between small business owners and procurement representatives through a series of regional events, the National Online Network and the Gulf States Business Matchmaking initiative.

HP Connect

HP launched its HP Connect Supplier Diversity Summits in August 2007. These events, to be held twice annually on HP campuses, help open doors for potential qualified suppliers, informing them about opportunities on the horizon.

The summits provide a forum for face-to-face dialogue with HP buyers. In 2007, 120 prescreened minority and woman business owners were selected for 15-minute one-on-one matchmaking sessions with HP commodity managers and HP Tier One suppliers. HP Connect 2007 sessions were held in Houston, Texas, and Aguadilla, Puerto Rico.

Diverse resellers

In addition to promoting diversity in our supply chain, we advance diversity among our resellers through mutually beneficial relationships. Though our HP PartnerONE Diversity network, we provided marketing and sales support to more than 350 diverse resellers in 2007.



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