HP Introduces New Responsible Supplier Guidelines for Student, Dispatch Workers in China

PALO ALTO, Calif. — In aneffort to proactively address the significant increase in the useof student and dispatch workers—such as temporary, auxiliary andsubstitute workers—in manufacturing facilities across China, HPtoday issued new guidelines and measurement processes for itssuppliers with operations in that country.

The guidelines are a firstfor the information technology industry.

HP’s new guidelines forstudent and temporary workers, developed in consultation with keystakeholders such as China’s Center for Child Rights and CorporateSocial Responsibility, reinforce regulatory requirements whileintroducing additional “beyond regulatory” expectations forsuppliers.  

“HP has a history ofleadership in proactively addressing labor issues and drivingsupply chain improvements,” said Tony Prophet, senior vicepresident, Worldwide Supply Chain Operations, HP. “We have workedclosely with leading Chinese stakeholders to develop our newstudent and temporary worker guidelines to ensure the higheststandards of ethical workforce management.”

In addition to mandatingfair remuneration and social insurance, HP’s guidelines focus onthe following:

  • All work must be voluntary: Student and temporary workers shallbe free to leave work at any time upon reasonable notice withoutnegative repercussions, and they must have access to reliable andreprisal-free grievance mechanisms. 
  • Local regulations must be reinforced or exceeded: Allregulations regarding legal working age, work environment, workinghours, and contractual and term limits for student and temporaryworkers will be reinforced. Additionally, HP guidelines limitstudent working hours to below the legal limit. 
  • Number of student workers must be limited: HP’s guidelinesspecify the acceptable levels of student workers to ensure thedirect labor force in manufacturing facilities is composedprimarily of full-time workers.
  • Student work must complement the primary area of study: Studentworkers should only engage in work activities that complement theprimary degree they are seeking to obtain.

Suppliers are being askedto comply with these guidelines immediately and will be measuredthrough ongoing social and environmental responsibility (SER)audits as well as HP’s key performance indicator (KPI) program,which regularly collects key SER performance information onsuppliers. 

Moving forward, HP willcollect KPI information from suppliers on a more frequent basis tomanage supplier performance against these expectations and toaddress other persistent supply chain issues, such as excessiveworking hours. In addition, HP is concurrently implementing a newindustry-standard audit protocol and collection tool based onrecent Electronic Industry Citizenship Coalition (EICC) provisionsthat have a “zero tolerance” policy for the worst cases ofnonconformity to working-hours standards.

“Student and temporaryworkers are two very vulnerable groups within the Chineseworkforce. They are often entering the workplace with limitedexperiences and support,” said Sanna Johnson, executive director,Center for Child Rights and Corporate Social Responsibility. “Theseguidelines are a clear recognition of HP’s commitment to see itsworkforce as both a resource of today and tomorrow.”

These initiatives are apart of HP’s larger Supply Chain Social and Environmental Responsibility programand underscore its leadership in managing its supply chain to thehighest ethical standards.

HP has one of theindustry’s most extensive supply chains, comprising more than 1,000production suppliers, tens of thousands of nonproduction suppliers,and spanning more than 45 countries and territories. The companyhas developed guidelines and trainings for the management of migrant workers and conducts regular audits of its suppliers toevaluate compliance with its SER standards program, performing morethan 898 audits on behalf of more than 813,000 employees since theprogram’s launch.

Worldwide, HP continues towork with suppliers to deliver substantial and lasting social andenvironmental performance improvements on a broad range of topics,including labor and ethics, health and safety, environment, andmanagement systems.

Additional information onHP’s commitment to supply chain responsibility is available at www.hp.com/hpinfo/globalcitizenship/society/supplychain.html.

This news release containsforward-looking statements that involve risks, uncertainties andassumptions. If such risks or uncertainties materialize or suchassumptions prove incorrect, the results of HP and its consolidatedsubsidiaries could differ materially from those expressed orimplied by such forward-looking statements and assumptions. Allstatements other than statements of historical fact are statementsthat could be deemed forward-looking statements, including but notlimited to statements of the plans, strategies and objectives ofmanagement for future operations; any statements concerningexpected development, performance, market share or competitiveperformance relating to products and services; any statementsregarding anticipated operational and financial results; anystatements of expectation or belief; and any statements ofassumptions underlying any of the foregoing. Risks, uncertaintiesand assumptions include macroeconomic and geopolitical trends andevents; the competitive pressures faced by HP’s businesses; thedevelopment and transition of new products and services and theenhancement of existing products and services to meet customerneeds and respond to emerging technological trends; the executionand performance of contracts by HP and its customers, suppliers andpartners; the protection of HP's intellectual property assets,including intellectual property licensed from third parties;integration and other risks associated with business combinationand investment transactions; the hiring and retention of keyemployees; assumptions related to pension and other post-retirementcosts and retirement programs; the execution, timing and results ofrestructuring plans, including estimates and assumptions related tothe cost and the anticipated benefits of implementing those plans;the resolution of pending investigations, claims and disputes; andother risks that are described in HP’s filings with the Securitiesand Exchange Commission, including HP’s Annual Report on Form 10-Kfor the fiscal year ended October 31, 2012.  HP assumes noobligation and does not intend to update these forward-lookingstatements.

© 2013 Hewlett-PackardDevelopment Company, L.P. The information contained herein issubject to change without notice. HP shall not be liable fortechnical or editorial errors or omissions contained herein.

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