Public policy

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Engaging with governments and regulatory bodies is an important and appropriate part of doing business and a natural extension of our core values. Because lawmakers at all levels of government make public policy decisions that affect HP, we seek opportunities to make HP's views known and to influence policy in our areas of expertise.

We build relationships with governments and regulators in the countries and regions where we operate to increase support for our business and global citizenship objectives. We meet regularly with government officials and other key stakeholders to discuss emerging issues and the potential impacts on their region, to understand their thinking, and to describe our own positions.

HP is committed to ensuring that our participation in public policy debate is appropriate and always compliant with applicable laws and our Standards of Business Conduct.

Many areas of public policy are highly relevant to global citizenship. In recent years, numerous laws have been introduced that affect our global citizenship priorities and the ways we address them. Examples include the Waste Electrical and Electronic Equipment (WEEE) directive in the European Union and similar legislation on electronics recycling introduced in several U.S. states.

Before taking a position on a public policy issue, we consider the potential impacts, intentional or unintentional, on all key stakeholders. We strive to ensure that the positions we take do not conflict with our global citizenship objectives in other areas. For example, HP plans to increase business in emerging economies through open trade. Yet there is often little infrastructure in these countries to recycle or safely dispose of end-of-life equipment. We work with governments and industry to support the implementation of suitable regulations, policies and standards in emerging markets. We also adapt our own return and recycling programs to address these countries' needs.

	Policy initiatives in 2007

Our public policy work focuses on the three priority areas summarized below. More detailed information on HP's positions and actions are available in our global issue briefs.

Innovation and competitiveness. We want to continue to develop technology that improves people's lives and work while creating high-quality employment worldwide. To fulfill these goals, HP must remain innovative and competitive. We have global public policies for the following issues:

• Competitiveness. We support policies that encourage entrepreneurship and sustainable growth; promote consumer choice; provide incentives for innovation, research and development; increase investment in education and training; strengthen the Rule of Law¹ in developing countries; and support rather than prevent global competition.
• Intellectual property rights. We believe society is best served by a patent system that encourages rather than obstructs knowledge-based economies, encouraging innovation intended to benefit society.
• Education. We believe technologists, policymakers and educators must collaborate to empower students globally and ensure an appropriate education. We work with educators to create country-led programs that meet students' current and future needs.

Market access. With more than 65 percent of HP's revenues coming from sales outside the United States, open trade policies are vital to our growth and success. We support comprehensive and progressive bilateral and regional trade agreements that include commitments to liberalization and transparency in government procurement, services and standards.

Environment. HP recognizes the environmental impacts of our products, services and operations. We support policies that promote energy-efficient technologies and responsible recycling.

• Climate change. HP believes that companies, governments and people around the world need to work together to address climate change. We support standardized and cost-effective actions by governments in this area, as well as voluntary efforts by the private sector consistent with HP's leadership.
• Energy efficiency. Energy security and costs increasingly affect society and the global economy. We are working to improve the energy efficiency of our products and operations.
• Electronics recycling. Because of rapidly improving technology, electronic equipment is frequently replaced, creating a growing surplus of unwanted electronics. HP accepts the principle that all manufacturers share with governments and customers the responsibility to treat electronic products responsibly at the end of their useful life. We support the concept of individual producer responsibility (IPR), which holds producers responsible for recycling their own products once they have been collected.

	Industry coalitions and association memberships

We often communicate our positions on public policies through industry associations to which we belong in our major markets and locations. These organizations give us a collective voice with our industry partners, enabling us to reach government officials more efficiently. We list the major associations of which we are members on our Government Affairs website.

We also participate in standards bodies and industry coalitions to advance our business and global citizenship objectives. For example, we are collaborating to develop industry standards in areas such as energy efficiency and supply chain responsibility that will create fair competition and raise standards globally.

	Political engagement

We encourage interested employees to participate in public debate through the HP Government Affairs Network. Members of this voluntary employee network receive regular updates on policy issues of importance to HP. In the United States, we encourage members to express their views to their elected officials when important legislation is pending.

In 2007, HP contributed $888,416 to state and local candidates and ballot measure campaigns in the United States. These contributions were consistent with our policy positions and corporate political guidelines.

U.S. law prohibits corporate contributions to federal political candidates. However, eligible employees can make voluntary donations to the HP Political Action Committee (HP PAC). The HP PAC is a separate legal entity that contributes to bipartisan campaigns for congressional candidates who share our policy views. In 2007, the HP PAC contributed $225,300.

HP does not make political contributions outside the United States.

More information is available on our Government Affairs website, including:

• HP's policies for corporate and PAC political contributions
• Our criteria for approving political contributions and the HP employees or departments responsible for doing so
• A list of the candidates who received HP corporate or HP PAC contributions in 2007
• A list of the section 527 organizations² that received contributions from HP in 2007

¹HP's definition of the "Rule of Law" is the governance structure based on a country's laws that are in accordance with legitimate, established and transparent regulatory procedures.
²The term "527 organization" refers to a U.S. political organization that is not regulated by the Federal Election Commission. These organizations are created under Section 527 of the Internal Revenue Code.