Audit findings
In 2009, HP conducted 104 supplier site audits, bringing our total since 2005 to 590. Seventy-eight of our 2009 audits were follow-up audits to measure progress in reducing nonconformances found during initial reviews.
| Rate of nonconformance in sites audited: | |||||||||
0% |
0% | 1-10% |
1-10% | 11-25% |
11-25% | 26-50% |
26-50% | 51%+ |
51%+ |
| EICC provisions | Nonconformances* | ||
|---|---|---|---|
| General | Major | Minor | Trend** |
| EICC awareness | 0% |
1-10% |
decreasing |
| Compliance with laws | 0% |
1-10% |
no change |
| Supplier management program | 1-10% |
11-25% |
decreasing |
| Labor | Major | Minor | Trend |
| Freely chosen employment | 1-10% |
1-10% |
no change |
| Child labor avoidance*** | 1-10% |
11-25% |
no change |
| Working hours | "26-50% |
1-10% |
decreasing |
| Wages and benefits | 11-25% |
11-25% |
decreasing |
| Humane treatment | 1-10% |
1-10% |
no change |
| Nondiscrimination | 1-10% |
1-10% |
decreasing |
| Freedom of association | 1-10% |
1-10% |
no change |
| Labor management system | Major | Minor | Trend |
| Overall | 11-25% |
1-10% |
no change |
| Health and safety | Major | Minor | Trend |
| Occupational safety | 1-10% |
11-25% |
decreasing |
| Emergency preparedness | 11-25% |
11-25% |
decreasing |
| Occupational injury and illness | 1-10% |
11-25% |
decreasing |
| Industrial hygiene | 11-25% |
11-25% |
decreasing |
| Physically demanding work | 1-10% |
11-25% |
decreasing |
| Machine safeguarding | 1-10% |
1-10% |
no change |
| Dormitory and canteen | 1-10% |
11-25% |
decreasing |
| Environmental health and safety management | Major | Minor | Trend |
| Overall | 1-10% |
1-10% |
no change |
| Environmental | Major | Minor | Trend |
| Environmental permits and reporting | 1-10% |
1-10% |
decreasing |
| Pollution prevention and resource reduction | 0% |
1-10% |
no change |
| Hazardous substances | 11-25% |
11-25% |
decreasing |
| Wastewater and solid waste | 1-10% |
1-10% |
no change |
| Air emissions | 1-10% |
1-10% |
decreasing |
| Product content restrictions | See Materials section |
||
| Ethics | Major | Minor | Trend |
| Business integrity | 1-10% |
1-10% |
no change |
| No improper advantage | 0% |
1-10% |
no change |
| Disclosure of information | 0% |
1-10% |
no change |
| Intellectual property | 1-10% |
1-10% |
no change |
| Fair business, advertising and competition | 1-10% |
1-10% |
no change |
| Protection of identity | 0% |
1-10% |
no change |
| Community engagement | 0% |
1-10% |
no change |
| * | These data reflect the results of HP’s last site audit and do not show supplier corrective actions not yet validated by HP through a follow-up audit. Sites with follow-up audits tend to have higher initial levels of nonconformance than other audited sites. |
| ** | Increases are generally caused by auditing additional suppliers or facilities. |
| *** | A major nonconformance in the underage worker provision of HP’s Electronic Industry Code of Conduct does not necessarily indicate the presence of child labor. For example, an auditor may uncover inappropriate working conditions for young workers (16–18 in China), or insufficient management systems and age checks to prevent child workers from being employed. These would be considered a major nonconformance, but do not necessarily signify the presence of workers under the legal minimum (16 in China). While there were instances of underage worker nonconformances uncovered in 2009, the child labor zero tolerance provision was not triggered. |
Asia Pacific findings
| Location | Initial audits | Follow-up audits | Workers at site audited |
|---|---|---|---|
| Indonesia | 0 | 2 | 3,000 |
| Malaysia | 2 | 1 | 4,000 |
| Philippines | 4 | 1 | 4,000 |
| Singapore | 1 | 3 | 1,000 |
| Thailand | 2 | 5 | 45,000 |
| Total | 9 | 12 | 57,000 |
In 2009, we conducted nine initial and 12 follow-up audits at 21 sites in Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam, and our first audit in India. The major issues identified during our audits included working hours, emergency preparedness and hazardous substances handling. Incidences of these have, however, greatly diminished since prior audits of the facilities.
Other improvements have come in the areas of occupational safety and nondiscrimination. For more information on HP’s work to address nondiscrimination, particularly with regard to labor migration issues, see Proactive engagement.
Working hours
Audits in 2009 showed substantial improvements in the incidences of working hours nonconformances, but the problem remains one of the most common in our audits in Asia Pacific. In 2010, we will expand our key performance indicators to suppliers that have a nonconformance in this provision, allowing us to better track their situation and to work with them to address this challenge. For more on our key performance indicators, see Proactive engagement.
| Rate of nonconformance in sites audited: | |||||||||
0% |
0% | 1-10% |
1-10% | 11-25% |
11-25% | 26-50% |
26-50% | 51%+ |
51%+ |
| EICC provisions | Nonconformances* | ||
|---|---|---|---|
| General | Major | Minor | Trend** |
| EICC awareness | 0% |
1-10% |
decreasing |
| Compliance with laws | 0% |
1-10% |
no change |
| Supplier management program | 1-10% |
11-25% |
decreasing |
| Labor | Major | Minor | Trend |
| Freely chosen employment | 1-10% |
11-25% |
no change |
| Child labor avoidance | 0% |
1-10% |
no change |
| Working hours | 11-25% |
11-25% |
decreasing |
| Wages and benefits | 0% |
1-10% |
decreasing |
| Humane treatment | 0% |
1-10% |
decreasing |
| Nondiscrimination | 1-10% |
1-10% |
decreasing |
| Freedom of association | 0% |
0% |
no change |
| Labor management system | Major | Minor | Trend |
| Overall | 1-10% |
0% |
decreasing |
| Health and safety | Major | Minor | Trend |
| Occupational safety | 1-10% |
11-25% |
decreasing |
| Emergency preparedness | 11-25% |
1-10% |
decreasing |
| Occupational injury and illness | 1-10% |
11-25% |
decreasing |
| Industrial hygiene | 1-10% |
11-25% |
decreasing |
| Physically demanding work | 1-10% |
11-25% |
no change |
| Machine safeguarding | 1-10% |
1-10% |
no change |
| Dormitory and canteen | 0% |
11-25% |
decreasing |
| Environmental health and safety management | Major | Minor | Trend |
| Overall | 1-10% |
0% |
no change |
| Environmental | Major | Minor | Trend |
| Environmental permits and reporting | 0% |
0% |
decreasing |
| Pollution prevention and resource reduction | 0% |
0% |
decreasing |
| Hazardous substances | 11-25% |
11-25% |
decreasing |
| Wastewater and solid waste | 1-10% |
1-10% |
no change |
| Air emissions | 0% |
1-10% |
no change |
| Product content restrictions | See Materials section |
||
| Ethics | Major | Minor | Trend |
| Business integrity | 0% |
0% |
no change |
| No improper advantage | 0% |
0% |
no change |
| Disclosure of information | 0% |
0% |
no change |
| Intellectual property | 0% |
0% |
no change |
| Fair business, advertising and competition | 0% |
0% |
no change |
| Protection of identity | 0% |
0% |
no change |
| Community engagement | 0% |
0% |
no change |
| * | These data reflect the results of HP’s last site audit and do not show supplier corrective actions not yet validated by HP through a follow-up audit. Sites with follow-up audits tend to have higher initial levels of nonconformance than other audited sites. |
| ** | Increases are generally caused by auditing additional suppliers or facilities. |
Greater China
| Location | Initial audits | Follow-up audits | Workers at site audited |
|---|---|---|---|
| China | 7 | 44 | 208,000 |
| Taiwan | 1 | 0 | 12,000 |
| Total | 8 | 44 | 220,000 |
In 2009, we conducted seven initial and 44 follow-up audits at 52 sites in Greater China. The major issues identified during the most recent audits included working hours, emergency preparedness, wages and benefits, industrial hygiene, labor management systems, and hazardous substances handling, although this last provision was also among the most improved. We also found improvements in dormitory and canteen provisions, Electronic Industry Code of Conduct awareness, and supplier management program.
See Perspectives of an HP auditor 
for more information on these provisions, and insight into how HP auditors find and address these problems.
Working hours
Working hours continue to be the most common social and environmental responsibility challenge among suppliers in China. Several sites began 2009 with reduced working hours. However, the economic recovery throughout the year meant many suppliers were short of staff as their business began to rapidly increase.
In 2009, HP piloted key performance indicators for 11 sites that had major nonconformances against the working hours provision. The pilot aims to better track, understand and address the problem. See Proactive engagement for more information.
| Rate of nonconformance in sites audited: | |||||||||
0% |
0% | 1-10% |
1-10% | 11-25% |
11-25% | 26-50% |
26-50% | 51%+ |
51%+ |
| EICC provisions | Nonconformances* | ||
|---|---|---|---|
| General | Major | Minor | Trend** |
| EICC awareness | 0% |
11-25% |
decreasing |
| Compliance with laws | 0% |
1-10% |
no change |
| Supplier management program | 1-10% |
26-50% |
decreasing |
| Labor | Major | Minor | Trend |
| Freely chosen employment | 1-10% |
1-10% |
no change |
| Child labor avoidance*** | 11-25% |
26-50% |
no change |
| Working hours | 51%+ |
1-10% |
increasing |
| Wages and benefits | 26-50% |
26-50% |
decreasing |
| Humane treatment | 11-25% |
1-10% |
no change |
| Nondiscrimination | 11-25% |
11-25% |
no change |
| Freedom of association | 1-10% |
1-10% |
no change |
| Labor management system | Major | Minor | Trend |
| Overall | 26-50% |
11-25% |
increasing |
| Health and safety | Major | Minor | Trend |
| Occupational safety | 11-25% |
11-25% |
no change |
| Emergency preparedness | 26-50% |
26-50% |
no change |
| Occupational injury and illness | 11-25% |
26-50% |
no change |
| Industrial hygiene | 26-50% |
26-50% |
no change |
| Physically demanding work | 11-25% |
26-50% |
decreasing |
| Machine safeguarding | 1-10% |
11-25% |
no change |
| Dormitory and canteen | 11-25% |
26-50% |
decreasing |
| Environmental health and safety management | Major | Minor | Trend |
| Overall | 11-25% |
1-10% |
increasing |
| Environmental | Major | Minor | Trend |
| Environmental permits and reporting | 11-25% |
1-10% |
no change |
| Pollution prevention and resource reduction | 0% |
1-10% |
no change |
| Hazardous substances | 26-50% |
26-50% |
decreasing |
| Wastewater and solid waste | 1-10% |
1-10% |
no change |
| Air emissions | 1-10% |
1-10% |
decreasing |
| Product content restrictions | See Materials section |
||
| Ethics | Major | Minor | Trend |
| Business integrity | 1-10% |
1-10% |
no change |
| No improper advantage | 0% |
1-10% |
no change |
| Disclosure of information | 0% |
1-10% |
no change |
| Intellectual property | 1-10% |
1-10% |
no change |
| Fair business, advertising and competition | 1-10% |
1-10% |
no change |
| Protection of identity | 0% |
1-10% |
no change |
| Community engagement | 0% |
1-10% |
no change |
| * | These data reflect the results of HP’s last site audit and do not show supplier corrective actions not yet validated by HP through a follow-up audit. Sites with follow-up audits tend to have higher initial levels of nonconformance than other audited sites. |
| ** | Increases are generally caused by auditing additional suppliers or facilities. |
| *** | A major nonconformance in the underage worker provision of HP’s Electronic Industry Code of Conduct does not necessarily indicate the presence of child labor. For example, an auditor may uncover inappropriate working conditions for young workers (16–18 in China), or insufficient management systems and age checks to prevent child workers from being employed. These would be considered a major nonconformance, but do not necessarily signify the presence of workers under the legal minimum (16 in China). While there were instances of underage worker nonconformances uncovered in 2009, the child labor zero tolerance provision was not triggered. |
Central Europe
| Location | Initial audits | Follow-up audits | Workers at site audited |
|---|---|---|---|
| Czech Republic | 1 | 4 | 3,000 |
| Hungary | 0 | 4 | 2,000 |
| Poland | 1 | 1 | 2,000 |
| Total | 2 | 9 | 7,000 |
In 2008, we conducted two initial and nine follow-up audits at 11 sites in the Czech Republic, Hungary, the Netherlands and Poland. The major issues identified during the most recent audits included emergency preparedness, which also showed the most improvement from prior audits, and occupational safety. We also found substantial improvements relating to physically demanding work, for which there were no major nonconformances.
| Rate of nonconformance in sites audited: | |||||||||
0% |
0% | 1-10% |
1-10% | 11-25% |
11-25% | 26-50% |
26-50% | 51%+ |
51%+ |
| EICC provisions | Nonconformances* | ||
|---|---|---|---|
| General | Major | Minor | Trend** |
| EICC awareness | 0% |
11-25% |
decreasing |
| Compliance with laws | 0% |
1-10% |
no change |
| Supplier management program | 1-10% |
11-25% |
decreasing |
| Labor | Major | Minor | Trend |
| Freely chosen employment | 0% |
0% |
no change |
| Child labor avoidance | 0% |
0% |
no change |
| Working hours | 0% |
0% |
decreasing |
| Wages and benefits | 0% |
0% |
decreasing |
| Humane treatment | 0% |
0% |
no change |
| Nondiscrimination | 0% |
0% |
no change |
| Freedom of association | 0% |
0% |
no change |
| Labor management system | Major | Minor | Trend |
| Overall | 0% |
0% |
decreasing |
| Health and safety | Major | Minor | Trend |
| Occupational safety | 11-25% |
26-50% |
no change |
| Emergency preparedness | 11-25% |
26-50% |
decreasing |
| Occupational injury and illness | 0% |
1-10% |
no change |
| Industrial hygiene | 11-25% |
11-25% |
increasing |
| Physically demanding work | 0% |
26-50% |
decreasing |
| Machine safeguarding | 1-10% |
1-10% |
increasing |
| Dormitory and canteen | 0% |
1-10% |
no change |
| Environmental health and safety management | Major | Minor | Trend |
| Overall | 0% |
0% |
decreasing |
| Environmental | Major | Minor | Trend |
| Environmental permits and reporting | 0% |
0% |
no change |
| Pollution prevention and resource reduction | 0% |
1-10% |
decreasing |
| Hazardous substances | 1-10% |
26-50% |
no change |
| Wastewater and solid waste | 0% |
0% |
no change |
| Air emissions | 0% |
0% |
no change |
| Product content restrictions | See Materials section |
||
| Ethics | Major | Minor | Trend |
| Business integrity | 0% |
0% |
no change |
| No improper advantage | 0% |
0% |
no change |
| Disclosure of information | 0% |
0% |
no change |
| Intellectual property | 0% |
0% |
no change |
| Fair business, advertising and competition | 0% |
0% |
no change |
| Protection of identity | 0% |
0% |
no change |
| Community engagement | 0% |
0% |
no change |
| * | These data reflect the results of HP’s last site audit and do not show supplier corrective actions not yet validated by HP through a follow-up audit. Sites with follow-up audits tend to have higher initial levels of nonconformance than other audited sites. |
| ** | Increases are generally caused by auditing additional suppliers or facilities. |
Latin America
| Location | Initial audits | Follow-up audits | Workers at site audited |
|---|---|---|---|
| Brazil | 4 | 7 | 7,000 |
| Mexico | 3 | 6 | 11,000 |
| Total | 7 | 13 | 18,000 |
In 2009, we conducted seven initial and 13 follow-up audits at 20 sites in Mexico and Brazil. The major issues identified during the most recent audits included labor management systems, emergency preparedness, working hours and hazardous substances handling. We found the biggest improvements in occupational safety, physically demanding work, supplier management program, and occupational injury and illness.
In 2010, we will expand our working hours key performance indicators pilot to this region and work with suppliers that have a nonconformance to better track, understand and address the problem. See Proactive engagement for more information on the pilot in China.
| Rate of nonconformance in sites audited: | |||||||||
0% |
0% | 1-10% |
1-10% | 11-25% |
11-25% | 26-50% |
26-50% | 51%+ |
51%+ |
| EICC provisions | Nonconformances* | ||
|---|---|---|---|
| General | Major | Minor | Trend** |
| EICC awareness | 0% |
1-10% |
no change |
| Compliance with laws | 0% |
1-10% |
no change |
| Supplier management program | 1-10% |
26-50% |
decreasing |
| Labor | Major | Minor | Trend |
| Freely chosen employment | 0% |
0% |
no change |
| Child labor avoidance | 0% |
11-25% |
no change |
| Working hours | 26-50% |
11-25% |
increasing |
| Wages and benefits | 0% |
1-10% |
no change |
| Humane treatment | 0% |
1-10% |
no change |
| Nondiscrimination | 1-10% |
1-10% |
increasing |
| Freedom of association | 0% |
1-10% |
no change |
| Labor management system | Major | Minor | Trend |
| Overall | 26-50% |
1-10% |
no change |
| Health and safety | Major | Minor | Trend |
| Occupational safety | 1-10% |
26-50% |
decreasing |
| Emergency preparedness | 26-50% |
11-25% |
no change |
| Occupational injury and illness | 1-10% |
26-50% |
decreasing |
| Industrial hygiene | 1-10% |
11-25% |
decreasing |
| Physically demanding work | 0% |
26-50% |
decreasing |
| Machine safeguarding | 11-25% |
11-25% |
no change |
| Dormitory and canteen | 1-10% |
1-10% |
increasing |
| Environmental health and safety management | Major | Minor | Trend |
| Overall | 11-25% |
11-25% |
no change |
| Environmental | Major | Minor | Trend |
| Environmental permits and reporting | 1-10% |
1-10% |
decreasing |
| Pollution prevention and resource reduction | 0% |
1-10% |
no change |
| Hazardous substances | 26-50% |
11-25% |
increasing |
| Wastewater and solid waste | 0% |
0% |
decreasing |
| Air emissions | 0% |
0% |
no change |
| Product content restrictions | See Materials section |
||
| Ethics | Major | Minor | Trend |
| Business integrity | 0% |
0% |
no change |
| No improper advantage | 0% |
0% |
no change |
| Disclosure of information | 0% |
0% |
no change |
| Intellectual property | 0% |
1-10% |
no change |
| Fair business, advertising and competition | 0% |
0% |
no change |
| Protection of identity | 0% |
11-25% |
no change |
| Community engagement | 0% |
0% |
no change |
| * | These data reflect the results of HP’s last site audit and do not show supplier corrective actions not yet validated by HP through a follow-up audit. Sites with follow-up audits tend to have higher initial levels of nonconformance than other audited sites. |
| ** | Increases are generally caused by auditing additional suppliers or facilities. |