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
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* |
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* 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.