We measure the social and environmental responsibility (SER) performance of some suppliers using the results of self-assessments, and of others using audits. (See Summary audit results for more information.) We measure the reach of our capability-building programs to increase our impact, and we consider post-program audit results when we assess the performance of those initiatives.
We have also introduced key performance indicators (KPIs) to a number of suppliers. These help HP track performance against areas of ongoing concern, particularly between HP audits. (See Key performance indicators for more information.) HP also shares best-practice examples from successes with suppliers.
A number of third-party organizations, particularly nongovernmental organizations (NGOs), raise concerns regarding specific issues in the electronics industry supply chain, and assess performance through reports and direct contact with companies. This input is an important barometer of current and emerging supply chain issues. HP engages with organizations to better understand their concerns, and to help us develop more successful capability-building programs for suppliers. We partner with some organizations to improve training and conditions for workers at our suppliers. (See a summary of our capability-building initiatives.)
The focus of external organizations in 2010 included:
- Environmental leadership Gartner and WWF produce a low-carbon and environmental leadership assessment for the information and communications technology industry. In 2010, HP ranked number one in supply chain energy efficiency and environmental performance. (See Product manufacturing for more information.)
- River pollution in China A report by 34 Chinese environmental NGOs raised concerns about suppliers to 29 electronics companies polluting rivers with heavy metals in the Pearl River Delta region. The report positively mentioned HP's work to ensure better regulatory compliance to improve conditions in its Chinese supplier factories overall. In 2010, HP joined the Electronic Industry Citizenship Coalition's Asia Water Task Force. The task force worked with Business for Social Responsibility (BSR) on its 2010 report "Electronics Supply Networks and Water Pollution in China."
- Electronics manufacturing in Central Europe makeITfair's Central Europe report analyzed the trend of electronics manufacturing in Central Europe. It highlighted concerns regarding labor conditions, and offered case studies showing where progress is being made, including HP's Central Europe Supplier Responsibility (CESR) project, which focused on small suppliers in the global supply chain.
- Labor Rights in a Time of Crisis CEREAL's third report on conditions in Mexican electronics factories raised concern about employment instability for workers as a result of the economic crisis. The report ranked HP as very good—one of only two companies to achieve that status—based on a low number of worker complaints received, and all or most cases being resolved.
- Supply Chain Ethic and Values Prize The Confederation of Industrial Chambers of Mexico (CONCAMIN) awarded HP the Supply Chain Ethics and Values Prize, presented by the Mexican Secretary of Labor and Social Welfare and the Governor of Veracruz.
- Working hours in China Reports by the U.S. National Labor Committee (NLC) in 2010 alleged that workers at two supplier sites in China were being mistreated. While one report focused mainly on excessive working hours, the other also highlighted labor problems such as child labor, disciplinary wage deductions, and forced overtime. Both suppliers had previously been audited by HP, and following the allegations we initiated investigative audits of both sites. We continue to work with the suppliers to improve working conditions.