HP Global Citizenship

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1 HP Global Citizenship Stanford Global Justice Presentation, 3/13/09 Bonnie Nixon, Director of Environmental Sustainability 2008 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice

2 HP s global citizenship legacy HP s commitment to social and environmental responsibility started with Bill Hewlett and David Packard in the 1930s and continues today Start 1930s 1980s 1990s 2000s Today HP s deep-rooted legacy focused on corporate social and environmental responsibility 1930s Commitment to the community 1950s Global Citizenship objective 1970 First environment control coordinator at HP 1971 Recycling computer print-outs and punch cards Environmental policy to reduce pollution 1975 Energy Conservation Guidelines 1976 Van pools in Bay Area. Focused sustainability programs to drive change, action and leadership 1987 First IT company HW recycling Computer product recycling 1988 Hazardous Waste Minimization Council 1989 PVC removed from DeskJet pkg 1991 Planet Partners Program; Ozone depleting substances eliminated 1992 Design For Environment Program; EPA Energy Star Partner 1993 Instant-On Technology 1998 General Specification for the Environment Innovation to lessen IT s impact and enable the sustainable economy 2001 Bio plastics corn printer shell Supply Chain code of conduct; Bulk Delivery of Volume orders st signatory to have WEF emissions data accepted Co-established pan-european take back and compliance system 2006 Dynamic Smart Cooling International climate change initiative World Wildlife Fund Recycled 1 billions pounds; 1 st E*4.0 PC; 1 st EPEAT Gold PC 2008 RPET from PP used in HP cartridges 2 3/4/2009

3 MISSION POSITIONING HP global citizenship and environmental sustainability mission Global citizenship is HP's comprehensive commitment to hold ourselves to a higher standard of integrity, transparency and accountability. Our values help us balance and align our business goals with our impact on society and the planet. Ethics & compliance Environmental sustainability Human rights & labor practices Privacy Social investment Maintain and enhance a recognized world class ethics and compliance culture Be THE most environmentally responsible information technology company Ensure healthy, safe and positive working conditions in the communities in which we and our suppliers do business Provide world class privacy leadership and build a trusted relationship with customers and stakeholders Address educational and social needs through responsible philanthropic investments 3 3/4/2009

4 HP Supply Chain 4 3/4/2009

5 HP supply chain: broad cross section of products Technology Systems Group Imaging and Printing Group Personal Systems Group 5 3/4/2009

6 Supply chain manufacturing locations HP s suppliers of product materials, components and services Americas Europe & Middle East Asia Pacific & Japan EMEA Americas Asia Pacific/Japan Major locations of HP product materials, components and services suppliers 6 3/4/2009

7 Risky Business in 2008 INTERNATIONAL: Bottom of the Barrel Mar 24, 2008 Millions of Asian workers producing goods sold are trapped in servitude. Strike Hits Vietnam Nike Factory April 1, 2008 Shanghai China: Abusive Child Labor Ring Is Exposed May 1, 2008 Severe labor abuses extended into the heart of its export economy. 7 3/4/2009 Thousands of workers producing 10% of the 75 million pairs of shoes made annually for Nike have shut down a Vietnamese plant demanding higher pay, bonuses and cost of living allowances

8 Program Evolution: Experience of Other Industries Disclosure Transparency Independent Monitoring Industry Collaboration Philanthropy Compliance Training Education Independent Compl. Program Compliance Program ID Supply Chain Assess Risk External Monitoring Internal Monitoring Build Internal Capacity Develop Audit Procedures Education of Expectations Code of Conduct Time 8 3/4/2009

9 Making progress in the supply chain HP s Systems Management Approach Risk based country, site & partnership assessment Partnership oriented engagement & auditing Surface and address root causes Worker voice is critical to success Supplier audit Corrective action Capability building Supplier assessment Corporate policy Code of conduct Low Risk Assessed Audited Not assessed 9 3/4/2009

10 Electronic Industry Code of Conduct Treat employees with dignity & respect Protect the environment Labor Environment Root Cause Analysis is critical to solving problems Health & Safety Management Systems Ethics A management systems approach drives sustainable solutions Evaluate & control exposure to hazards Uphold the highest standards 10 3/4/2009

11 Coalition Members EICC : 11 3/4/ GeSI SCWG: www. gesi.org

12 Global Initiatives & Local Programs Electronic and Multi-Industry Harmonization EICC & Global e- Sustainability Initiatives (GeSI) FIAS China Capability Building Strategy (Shenzhen) Beyond Monitoring & Global Social Compliance Program Climate Change Trainings and Factory Tools (CDP) China & Asia Pacific Factory Programs/Training with NGOs, FISI & HER Project Thailand 2 nd & 3 rd Tier Assessments & Training India Project with US State Dept $ & NGOs Europe, including Central & Eastern Europe Central European Supplier Responsibility (CESR) CSR Laboratory with CSR Europe ILO Tripartite Agreement & NGO Engagement Mexico Industrial Association Training Programs CEREAL Grievance Management & Training HER Project Women s Healthcare in Factories 12 3/4/ March 2009

13 Building a Business Case Metrics are submitted in the following categories; 1. HR & Labor % New Workers Retention Rate (new & old workers) # Complaints & Disciplinary Action (Worker Satisfaction Interviews & Surveys) 2. Productivity Output per hour Production value/hour % of Delay Time 3. Quality Rejection Rate Rework Rate 4. Wages & Hours Average wages Average hourly wage Average working hours per month 5. H&S Accident Incident Rate Lost Workday Rate 13 3/4/2009

14 Thank You For more info, please contact: 14 3/4/2009