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Global Citizenship Report 2008

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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.

Engaging society

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.

Sustainable design

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.

Showcasing impact

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.

Entrepreneurship education

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.

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HP Global Citizenship Report > Introduction

Economic impacts

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Like all companies, many aspects of HP's day-to-day business affect our stakeholders financially. For example, our financial transactions have direct economic impacts¹ on our:

Suppliers through our purchase of goods and services
Employees through wages paid
Customers through sales and product pricing
Governments through tax payments
Communities through social investment
Investors through dividends and share repurchases

As the money from these transactions circulates through the economy, our activities continue to have an indirect economic impact. In addition, HP products and services increase productivity, potentially boosting companies' profitability and strengthening the wider economy.

Although financial transactions have been regulated for centuries, there is little guidance for measuring overall economic contribution. We quantify some aspects and describe others more generally. The table outlines our direct and indirect economic impacts on each group. (See also the data dashboard and our financial statements.)

HP's economic impacts

Group	HP's direct economic impacts	HP's indirect economic impacts
Suppliers	HP spends money on products, materials, components and services.	Our spending creates jobs in supplier companies. Suppliers and their workers pay taxes and support their local economies. Suppliers may also pay dividends to their investors.
Employees	Compensation and benefits are a significant proportion of HP's expenses. We invest in training and development, which expands employees' opportunities.	Employees pay taxes, and their private spending generates economic activity.
Customers	HP recognized $118.4 billion in revenue from customers in 2008.	Our products and services improve customer productivity, which may increase their contribution to society through business expansion and more taxes paid.
Local, state and national governments	Local, state and national governments benefit from taxes paid by HP and our employees.	Taxes paid enable government spending and programs.
Local, regional and national communities	Social investment ($46.2 million in 2008), support for nongovernmental organizations and employee giving all benefit communities.	These activities in turn support further economic activity.
Investors	Shareholders receive dividends, and the value of their shares may grow. (See the chart in Performance.)	Investors may pay taxes on dividends and on stock gains.

The socioeconomic value of IT

The information technology (IT) sector has wide-ranging benefits for individuals, companies and society. For example:

IT improves access to communications, especially in the developing world. This makes it easier to find, use and share valuable information. This can improve health, welfare and economic prosperity.
Although the IT industry is responsible for about 2 percent of the world's greenhouse gas (GHG) emissions², our products and services also have the potential to help significantly reduce the other 98 percent of emissions. (See Enabling a low-carbon economy. )
IT enables people to work from different locations and join meetings by video or conference calls. This can reduce the cost and environmental impacts of travel and help employees to balance their work and personal lives.
Businesses can use radio frequency identification technology to automatically track items continuously, securely and wirelessly from the warehouse to the checkout, improving efficiency, security and customer service.
Technology has an essential role to play in addressing global inequalities in education. It enables educators to rethink their approach to teaching and students to find, use and share information more broadly, and interact with their peers and teachers.
The Internet and mobile technologies support democracy and expression by giving voice to people who could not easily publicize their views and experiences otherwise.

Many of these services require personal data to be entered and transmitted online. This requires robust procedures to keep data secure. Read more about how HP protects customer privacy.

We must also consider the energy costs and environmental impacts of the infrastructure required to provide these services. (See Climate and energy – Products for more information.)

Performance

The data dashboard summarizes HP's economic performance. (See our financial statements for more detail.)

Compared with FY07, HP's revenue increased by 13 percent in FY08 to $118.4 billion. Non-GAAP diluted earnings per share (EPS) increased 24 percent to $3.62. On a GAAP basis, diluted EPS increased 21 percent to $3.25.

HP's interactive stock chart includes information about the company's share performance.

Please visit our annual report and 10K to view HP revenue by business segment and by region.

¹ Following the GRI G3 Guidelines: Direct economic impacts are often measured as the value of transactions between the reporting organization and its stakeholders, while indirect economic impacts are the results—sometimes non-monetary –—of the transaction. (See PDF, page 13.)
² Gartner: Conceptualizing ‘Green' IT and Data Center Power and Cooling Issues, September 2007.