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Results

Audits are only one element of our program. To read more about how we drive continual improvement, see the Strategy section.

Since we began auditing, major nonconformances have been reduced across all of HP’s Electronic Industry Code of Conduct (EICC) sections. EICC provisions with the most and least issues vary substantially from region to region. See Audit findings for our detailed results.

The chart below shows that as suppliers advance through HP’s supply chain social and environmental responsibility (SER) program, their performance improves markedly. We believe this continual improvement is due to our validation system, with its focus on collaborative audits and corrective actions, and our efforts to build our suppliers’ capabilities.

Distribution of findings in all first audits, penultimate audits and most recent audits, 2005–2009*
Stacked column graph
yellow No nonconformances
orange Minors
red Majors
* See a definition of nonconformance types.

The chart below also shows the effectiveness of our validation and improvement process, which involves auditing sites, requiring corrective actions, and re-auditing to verify that nonconformances have been addressed. Across all provisions, nearly 75 percent of major nonconformances identified in initial audits have been subsequently addressed. The chart also demonstrates that nonconformances have been easier to address in some sections of the code than others.

Major nonconformances reduced by EICC section, 2005–2009*
Bar chart
* Based on follow-up audits compared with initial audits at same sites; does not include new items identified.

The chart below shows the distribution of major nonconformances at audited facilities across the provisions of HP’s EICC. It shows that two sections of HP’s EICC account—labor and health and safety—account for the majority of major nonconformances.

Distribution by EICC section of major nonconformances in most recent audits of suppliers worldwide, 2008–2009
pie chart
yellow Health and safety
orange Labor
red Environmental
medblue Labor management system
green General
pink Environmental, health and safety
dark blue Ethics

For details about other issues identified in audits and HP’s response by region, see the Proactive engagement section.