This is the eighth consecutive year HP has reported its global citizenship performance, reflecting our ongoing commitment to transparency. Our Global Citizenship Report 2008 describes the company's policies, programs and performance as we strive to balance our business goals with our impacts on society and the planet.
Data and goals dashboard
View the interactive dashboard to track our recent performance, see progress against our 2008 goals and view our targets moving forward.
Create your own report
If you'd like a hard copy of our report, use the custom report tool to generate a PDF with the information that interests you most.
Download our customer report
We developed a version of our report with customers in mind. It features HP solutions and best practices to help enterprises and other organizations address pressing global citizenship issues.
Our five pillars
We focus our global citizenship initiatives on five areas: ethics and compliance, human rights and labor practices, environmental sustainability, privacy, and social investment. Collectively, these areas span our entire business, influencing our priorities, operations, product development and brand differentiation.
Making the business case
Customers are giving global citizenship greater weight in their IT purchasing decisions, making it increasingly important to our business. Global citizenship is also key to responding to new opportunities, increasing the efficiency our operations, strengthening our relationships with stakeholders, and attracting and retaining exceptional employees.
Upholding Standards of Business Conduct
Regardless of tenure, title or responsibilities, everyone at HP is expected to be an ethical leader. Last year, we trained 97% of employees in our Standards of Business Conduct (SBC) and introduced a simpler, values-based version of the SBC in more than 20 languages.
A central hub for compliance
In 2008, we strengthened leadership of our Compliance Office to promote greater consistency across our global organization. The office works with other groups within HP to provide a holistic view of governance, risk and compliance to senior management.
Raising supply chain standards
HP is leading a new approach to strengthening social and environmental standards in the global IT supply chain. We collaborate with local NGOs to train suppliers in building capabilities and making systemic improvements to protect workers and the environment.
Fostering employee success
Our HP culture rewards performance, provides opportunities for training and advancement, and encourages open, honest communications and respect for all. We remain focused on increasing the diversity of our workforce.
Supply chain audit performance
We have made it easy to review in-depth results of our supplier audits—either globally or by region—with an interactive tool that presents data, explains major causes of nonconformance and highlights challenges and HP’s response.
HP unconditionally supports human rights and promotes higher standards in our employment practices and throughout our supply chain. We collaborate with others to share our progress in these areas and raise awareness of human rights issues.
In 2008, we introduced the HP Eco Highlights label, which helps customers understand the environmental attributes of more than 115 products. Through our Design for Environment program, we focus on energy efficiency, materials innovation and design for recyclability.
Climate and energy
HP was the first IT company to report the greenhouse gas emissions of key suppliers, and we are on track to reduce the energy consumption and associated greenhouse gas emissions of our operations and products to 25% below 2005 levels by 2010.
Visit our gallery of sustainable design example—new to this year’s report—highlighting HP solutions that increase productivity and lower costs while improving environmental sustainability.
Reuse and recycling
In 2008, we recovered for reuse 75 million pounds (34,000 tonnes) of hardware units and recycled 265 million pounds (120,000 tonnes) of electronic products and supplies, increases of 16% and 6% compared with 2007.
HP’s accountability model
Our groundbreaking approach to protecting privacy goes beyond legal and industry norms. We review all decisions related to privacy not only for compliance but also for our values, customer expectations and a range of potential business risks, and hold ourselves accountable for our actions.
Collaborating on solutions
HP works with regulators and nongovernmental organizations such as the Asia-Pacific Economic Cooperative and the European Commission to advance thinking and develop new frameworks for protecting the electronic flow of information across borders.
Innovations in education
We believe technology can be a catalyst in addressing inequalities in education and fostering the next generation of skilled workers and entrepreneurs. In 2008, HP invested nearly $20 million in programs that apply technology in creative ways to transform the learning experience, particularly in science, technology and engineering, and math.
HP supports organizations and programs that help cultivate socially minded entrepreneurs, particularly in developing regions. Our goal is to increase the number of entrepreneurs using technology to launch and grow small businesses, crucial to creating jobs and spurring economic growth in local communities.
We employ a risk-based approach to prioritize implementation of our social and environmental responsibility (SER) program with first-tier suppliers (see diagram). Learn more about the risk factors we consider on our program website. We focus on our product materials and manufacturing suppliers’ sites in countries we consider to be of concern for SER risk. We have audited all of these suppliers at more than 250 high-risk factory sites (this number excludes the 45 pilot audits we conducted in 2004). We have also partnered with some of our suppliers to conduct audits with them of their suppliers, to demonstrate how HP conducts the audit process.
Risk based approach to supply chain social and environmental responsibility
Strategic audits are central to our efforts to raise standards in our supply chain. They allow HP to verify conformance with the Electronic Industry Code of Conduct (EICC)1 and ensure the facility’s management has systems in place to promote continued conformance. Audit results also enable HP to focus on the most pertinent issues for specific supplier sites and more generally by type of supplier, country and region. We believe that audits must be collaborative and constructive to maximize success. Experience from other industries shows that achieving cooperation from suppliers is important. We avoid unannounced audits because they conflict with our collaborative audit approach and can damage relationships.
HP frequently collaborates with local NGOs and other local organizations to deliver capability-building initiatives to our suppliers. Capability building is at the heart of our efforts to help our suppliers continually improve their SER performance. We develop programs where audit results and stakeholder concerns highlight a need for improvement. Engaging together with our stakeholders and local training groups helps us maximize our reach, ensures our programs address key local challenges and improves our relationships. By engaging with NGOs, we have learned how to improve our programs and address key challenges in each region.
In 2008, HP launched a worker training program at Chicony, one of our suppliers. Delivered in collaboration with Students and Scholars Against Corporate Misbehavior (SACOM), a Hong Kong-based worker training NGO, and its training partner, the program addresses these three areas:
Labor rights awareness training
Setting up a workers’ hotline
Labor issues resolution and tailor-made training to the workers’ representative committee
We had trained more than 1,800 workers by the end of November 2008, well over half of our goal to train more than 2,500 workers by mid-2009.
To ensure the continued success of the program, HP meets with factory management and the training partner monthly to discuss its progress and to follow up on workers’ inquiries. In 2009, the training partner will launch additional capability-building training for the workers’ representative committee at Chicony. The training will focus on counseling skills, communications and techniques for organizing recreational and communications programs, and will allow the worker representatives to take over the workers’ hotline in mid-2009.
See Chicony and the training partner’s perspectives on this program.
Health Enables Returns project (Mexico)
The Health Enables Returns project (HERproject) was launched by Business for Social Responsibility (BSR) in 2007, based on research funded by the David and Lucile Packard Foundation. The research revealed that the general and reproductive health needs of women working in the electronics industry were going unmet at a time when they had begun to make up a larger proportion of the manufacturing workforce in emerging economies. In 2008, HP joined the project, a health training program that helps female workers monitor their health regularly; we are the first and only company in our industry to do so. HERproject seeks to meet women’s health needs by catalyzing sustainable partnerships between companies, factories and local nonprofit service organizations to improve women’s general and reproductive health awareness and access to services.
HERproject in Mexico is active in two factories owned by HP suppliers Pegatron Technology and Foxconn in Ciudad Juarez. Local HERproject implementing partner Salud y Desarrollo Comunitario de Cd. Juárez, A.C. (SADEC-FEMAP) began by conducting health assessments of 10 percent of female workers in factories, followed by peer educator training for 5 percent of the female workforce. Current activities include factory-based awareness training and peer-to-peer health knowledge sharing. At the conclusion of the yearlong project, BSR and local partner SADEC-FEMAP will measure the impact on factory workers. Results are expected in late 2009.
The initiative is addressing a variety of health needs, including breast cancer, diabetes, hypertension, human papillomavirus, cervical cancer, obesity and nutrition, and family planning and reproductive health education, especially for single mothers.
"By leading companies to augment worker health awareness, HP is giving companies and workers the tools to improve and increase workplace standards and workers’ lives," said Phillip Liu, general manager, Pegatron Technology.
"eCMMS S.A. de C.V., a member of the Foxconn Technology Group, is honored to be a participant in such a collaborative effort with our stakeholders. The key demonstrated objective of this project is to encourage our employees to participate in a comprehensive health awareness program enabling peer to peer interaction," said Hugo Rey, human resources director, eCMMS S.A. de C.V.
HP will partner with BSR to roll out the HERproject in China and other Asian countries in 2009.
Focused Improvement Supplier Initiative (China)
HP started the Focused Improvement Supplier Initiative (FISI) in 2006 with the help of BSR to fill the need for training and guidance for our suppliers in areas with the greatest potential for improved SER performance. In 2008, we ran introductory training in Shenzen and Kunshan for smaller suppliers and initiated an advanced training program for suppliers that participated the previous year. This initiative encouraged and enabled participants to begin the improvement programs in their facilities.
Environment, health and safety
Same as Kunshan introductory training
Productivity and overtime
Positive HR system
To better meet participants’ needs, we enhanced the training programs by adding new modules—including Labor Contract Law, Better Communication with Media, and Cross-department Communication—and improving existing ones. Participants benefited in these five areas:
Fewer risks in factories (for example, the Labor Contract Law module reduced the risk of different interpretations of a contract and subsequent labor disputes)
Better networking through sharing best practices
Increased recognition through participation and improved HP partnerships
Increased customer satisfaction as efforts to conform to the Electronic Industry Code of Conduct (EICC) were demonstrated
Enhanced knowledge and skills, particularly for key factory managers
More than 93 percent of participants across the three courses were satisfied by the training.
We also conducted in-depth studies to review the effectiveness of FISI training at eight factories. The studies found the following:
Of the eight factories surveyed, seven have an EICC management system, an increase from three before the training
All updated their employee handbooks
All updated their labor contract according to new contract law
Six of the eight factories had improved workers’ housing and dining conditions
Success stories from the training programs include:
Employee communication. One participant set up a labor ethics committee during the FISI training course and subsequently launched an employee assistance program to facilitate mutual communication and retain workers. Since introducing the program, the supplier's factory has had a low and stable employee turnover rate.
EICC management system. Some participants have documented their corporate responsibility committee structure and activities, and created an EICC risk analysis.
Productivity enhancement. Two factories have used lean manufacturing principles to increase efficiency by 30 to 50 percent in less than a year.
EHS management. Some participating factories added ergonomics training to their new-hire orientation.
Hard-disk drive supply chain in Southeast Asia
In 2007, the Centre for Research on Multinational Corporations (SOMO), a Dutch NGO, published a report outlining challenges in the hard-disk drive supply chain in Southeast Asia, including overtime, discrimination and the rights of temporary workers. In response, HP helped IDEMA (International Disk Drive Equipment and Materials Association) organize six capability-building training sessions for hundreds of factory managers throughout the region. The training, held in Bangkok, Kuala Lumpur and Penang from May to September 2008, focused on legal requirements relating to labor issues, ways to improve worker communication and feedback, and environmental health and safety management.
Awareness of the EICC has been promoted because of the training, which was the first of its kind for many suppliers (all but a few of the suppliers who attended were sub-tier suppliers to HP). It has also encouraged participants to guide their organizations to full conformance with the code through engagement with upper management.
Bangkok, Thailand (3 sessions)
Kuala Lumpur, Malaysia (2 sessions)
Penang, Malaysia (2 sessions)
CSR Europe Responsible Supply Chain Laboratory
CSR Europe is a network of 70 companies working to incorporate global citizenship into their businesses. As a board member, HP led the 2007 organization of the Responsible Supply Chain Laboratory with Volkswagen, L’Oreal, Titan and the Business for Social Compliance Initiative.
In 2008, participants developed a portal for responsible supply chain management. The portal includes these two components targeting the main issues suppliers face in Central Europe:
Online resources for small and medium enterprises for finding information about global citizenship standards, conventions and codes
Training and reference materials covering topics such as management systems, supplier engagement and corrective action processes
See Awards & honors section for more detail on HP's award for leadership of CSR Europe.
Central Europe Supplier Responsibility (CESR) Project
Together with the Danish Commerce and Companies Agency (DCCA), HP started the Central Europe Supplier Responsibility (CESR) project in 2006. The training and workshops that HP’s small and medium-size sub-tier suppliers took part in as a result of that project formed the basis for HP and DCCA’s 2008 report, Small Suppliers in Global Supply Chains.
All first-tier suppliers that provided feedback reported positive results. Some sub-tier suppliers highlighted strong organic business growth, increased productivity and reduced injuries, lost days, staff turnover, and product reject rate, although the majority reported stable figures in these areas.
"There is a clear link between companies with strong ethics and good performance. This is because customers are increasingly demanding higher standards and decent products. Through this project we have firmly demonstrated what needs to be done in order to promote strong social and environmental standards through the supply chain."
—Carsten Ingerslev, Head of the Danish Centre for CSR, part of the Danish Commerce and Companies Agency
HP is always seeking ways to improve our understanding of the benefits of SER to suppliers and to our own business. In 2008, two world-class institutions, the Stanford Graduate School of Business and the MIT Sloan School of Management, approached HP to research our program. Both institutions have conducted similar research for other companies.
Stanford Graduate School of Business report
Stanford University’s Graduate School of Business reviewed the China operations of three HP suppliers—Flextronics, AU Optronics (AUO) and Delta. Their report focused on the benefits and challenges of implementing HP’s SER program for suppliers.
It found that a good SER program can enhance a supplier’s reputation, helping them become an employer of choice, a supplier of choice and a partner of choice. While long-term environmental investments can be costly in the beginning, there can also be short-term payoffs and profit enhancement opportunities. Some suppliers also believe that SER labor practices such as limiting overtime, paying good wages and providing employee welfare activities will improve retention and employee satisfaction over time.
However, challenges remain in China with regards to SER and consequent program implementation. Orders are awarded based on many factors, and suppliers feel that disclosing SER-related cost-savings data may encourage buyers to request price cuts. As SER standards are more frequently enforced, the number of audits a supplier faces may increase.
Massachusetts Institute of Technology’s (MIT) Sloan School of Management began a study of HP’s worldwide SER program at the end of 2008. The study aims to identify the business case for improvements in working conditions as well as opportunities for improvements to our program. We will report further on this in 2009.