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Welcome

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.

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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.

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Global Citizenship at HP

Our five pillars
Our five pillars

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.

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Making the business case

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.

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Ethics & Compliance

Ethics and compliance
Upholding Standards of Business Conduct

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.

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A central hub for compliance

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.

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Human Rights & Labor Practices

Raising supply chain standards

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.

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Fostering employee success
Fostering employee success

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.

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Supply chain audit performance

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.

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Engaging society
Engaging society

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.

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Environmental Sustainability

Sustainable design

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.

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Climate and energy
Climate and energy

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.

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Showcasing impact

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.

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Reuse and recycling
Reuse and recycling

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.

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Privacy

Privacy
HP’s accountability model

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.

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Collaborating on solutions

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.

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Social Investment

Innovations in education
Innovations in education

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.

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Entrepreneurship education
Entrepreneurship education

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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Introduction
Global citizenship at HP
Ethics & compliance
Human rights & labor practices
Environmental sustainability
Privacy
Social investment
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HP Global Citizenship Report  > Human rights & labor practices  > Supply chain responsibility

Strategy

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Our supply chain social and environmental responsibility (SER) objective is to attain long-lasting improvement. Our strategy is to achieve this through proactive engagement, transparency and results. We require our suppliers to conform to the same rigorous ethical, social and environmental standards to which we hold ourselves. Strengthening the labor, health and safety, and environmental responsibility performance of our suppliers benefits HP. It creates efficiencies, decreases costs, and strengthens partnerships, while also protecting our reputation and keeping our lines of supply open.

About HP’s supply chain

Factory worker

HP uses more than 600 suppliers from more than 1,200 locations worldwide (see map). Companies with a global brand are generally low risk for us, wherever their sites are. Many first-tier suppliers of our product materials, components, and manufacturing and distribution services operate sites in developing countries and do not have well-known brands. These sites present HP with the greatest risk of breaches of labor and environmental standards.

Our long-term relationship with these suppliers places us in a strong position to influence them. We also engage goods and services suppliers.

See Suppliers for more information.

Our program – past, present and future

We launched our SER program in 2000 with a long-term vision to responsibly manage the social and environmental performance of our suppliers. We want to ensure that workers in the electronics supply chain are treated with dignity and respect, and to minimize the environmental impact of the production and distribution of our products. In our vision, the entire supply chain—from end customers to sub-tier suppliers—cooperates to integrate SER practices. We want our SER management example to permeate the supply chain: Our customers hold us responsible for our supply chain SER performance, and we expect our suppliers to do the same with theirs. Achieving this will maximize the value of SER to the whole supply chain.

To make that vision a reality, we need to encourage dialogue throughout our supply chain—from suppliers to customers.

Since 2000, we have made ourselves accountable for our suppliers’ SER performance, built a commitment to SER among our supplier base and begun to tackle the toughest challenges in the supply chain. Our experience has shown that improving supply chain SER performance requires sustained commitment. HP has also been recognized for our work with world-class companies in multi-industry forums, such as the Global Social Compliance Program and Beyond Monitoring, to raise standards in the supply chain.

We expect several important trends to influence our program in the future:

  • Introduction of super codes(the Global Social Compliance Program, for example), which are broader than industry-level codes of conduct
  • Increased focus on SER by retailers
  • Incorporation of SER standards in bilateral and multilateral trade agreements

Internal collaboration and governance

HP integrates social and environmental considerations into core sourcing practices. Our supply chain SER governance system dictates responsibility and reporting across the relevant HP businesses and functions.

All HP businesses sponsor and support our supply chain SER program through the Supply Chain Board, which meets monthly and reports directly to the HP Executive Council. Learn more about our program’s governance model on our program website.

It is imperative that HP's procurement teams understand SER issues and consider them in day-to-day sourcing decisions. These teams receive regular training, and supply chain SER is included in HP's Procurement Management Process.

HP regularly evaluates our suppliers’ performance on five dimensions: business, cost, quality, supply and technology. SER has been a component of the business dimension for four years. In 2008, we more than doubled the weight of the SER component from four to ten percent of the overall evaluation. Additionally, HP has zero tolerance of certain items such as underage child workers (below the legal age for work or apprenticeship), forced labor, health and safety issues posing a risk of immediate danger to life or serious injury, and violation of environmental laws posing a risk of serious and immediate harm to the community. If such an item is uncovered, our zero tolerance policy requires auditors to escalate it immediately and requires the supplier to correct it in a short and agreed-upon timeframe, depending on the nature of the problem. Learn more about the integration of SER into sourcing on our program website.

Supplier management system

Our SER program includes a four-phase supplier management system to promote continual improvement and build suppliers’ capability (see graphic below). Over the past six years, all of our key product materials, components, and manufacturing and distribution services suppliers have completed the first two phases. The introduction and assessment stages now comprise mainly new suppliers to our system. Suppliers move to the validation phase based on risk assessments (see next section for more). Currently, we concentrate our efforts on the validation and continual improvement phases. Learn more about our management system for suppliers on our program website.

Four-phase supplier management system*
Line chart showing four-phase supplier management system

* The gap between introduction and assessment represents sites that are low-risk based on the company or country they are in. The gap between assessment and validation represents sites whose self-assessments indicate they are low risk. Continual improvement converges on validation because we have conducted follow-up audits on nearly all sites that we have audited.


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