Detailed audit findings

In 2012, HP conducted 116 audits of our production suppliers (including initial audits, follow-up audits, and full re-audits). This total number includes one recycling audit (covering SER management systems), the results of which are not included in the charts below because the operations of this supplier are different to those of our productions suppliers and cannot be compared.

Significant findings

Globally, we continue to find the most major nonconformances related to working hours and emergency preparedness. HP found working hours nonconformances in 63% of audits in 2012, compared with 66% in 2011. The majority of these nonconformances were in China, where we are working with the Electronic Industry Citizenship Coalition to address this issue. Emergency preparedness major nonconformances increased to 59% in 2012 from 48% in 2011. We are introducing new programs to address these issues in countries such as China and Brazil, where the 2011 major nonconformance rate was 57%. (Although audits in Latin America found a 14% rate of major nonconformance to this provision, the rate has been significantly higher in previous years so we still believe that we need to introduce programs to resolve this issue.)

Zero tolerance items

In 2012, HP found one zero tolerance item during a third-party audit against HP’s EICC Code of Conduct in China. The item related to working hours, and was considered a zero tolerance item based on the updated EICC system for categorizing working hours nonconformances (see HP’s approach to supply chain responsibility). The supplier subsequently established a corrective action plan to deal with the issue. HP confirmed through a third-party closure audit that this item has been resolved.

Global findings

EICC Code provisions Rate of major and minor nonconformanced in sites audited1
General
EICC Code awareness
Major: 5%
Minor: 16%
Compliance with laws
Major: 0%
Minor: 0%
Supplier management program
Major: 34%
Minor: 16%
Labor
Freely chosen employment
Major: 7%
Minor: 26%
Child labor avoidance2
Major: 0%
Minor: 62%
Working hours3
Major: 63%
Minor: 13%
Wages and benefits
Major: 32%
Minor: 29%
Humane treatment
Major: 3%
Minor: 28%
Non-discrimination
Major: 8%
Minor: 9%
Freedom of association
Major: 1%
Minor: 14%
Labor management system
Overall
Major: 29%
Minor: 0%
Health and safety
Occupational safety
Major: 14%
Minor: 42%
Emergency preparedness
Major: 59%
Minor: 29%
Occupational injury and illness
Major: 11%
Minor: 30%
Industrial hygiene
Major: 28%
Minor: 29%
Physically demanding work
Major: 9%
Minor: 36%
Machine safeguarding
Major: 7%
Minor: 29%
Dormitory and canteen
Major: 29%
Minor: 17%
Environmental health and safety management
Overall
Major: 8%
Minor: 0%
Environmental
Environmental permits and reporting
Major: 4%
Minor: 11%
Pollution prevention and resource reduction
Major: 3%
Minor: 8%
Hazardous substances
Major: 12%
Minor: 58%
Wastewater and solid waste
Major: 3%
Minor: 12%
Air emissions
Major: 4%
Minor: 9%
Product content restrictions
(See Materials section.)
Major: 22%
Minor: 14%
Ethics
Business integrity
Major: 11%
Minor: 9%
No improper advantage
Major: 5%
Minor: 9%
Disclosure of information
Major: 0%
Minor: 1%
Intellectual property
Major: 1%
Minor: 1%
Fair business, advertising, and competition
Major: 11%
Minor: 5%
Protection of identity
Major: 24%
Minor: 8%
Community engagement
Major: 0%
Minor: 0%

1This data reflects the results of HP’s initial audits and full re-audits conducted in 2012. It does not necessarily represent results from the same supplier sites reported on in previous years.

2A major nonconformance in the underage worker provision of HP’s EICC Code does not necessarily indicate the presence of child labor. For example, an auditor may uncover 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, or the minimum age specified by HP’s EICC Code. While there were nonconformances uncovered in 2012, no child labor was uncovered.

3A major nonconformance in the working hours provision of HP’s EICC Code indicates that at least one of the following requirements was not met:

  • The average hours worked in a workweek over the last 12 months at the facility did not exceed 60 hours or the legal limit (whichever is stricter).
  • Workers are allowed mandated breaks, holidays, and vacation days to which they are entitled.
  • Workers are provided with at least 1 day off per 7 workdays on average.

Greater China

The main findings in our China audits are consistent with our global findings, with working hours and emergency preparedness being the main sources of nonconformance. These issues are a key focus of our refreshed programs that will help HP move toward a sustainable supply chain. Although working hours nonconformances decreased globally, the majority of the nonconformances occur in China, which is where our excessive working hours key performance indicators (KPI) program continues to focus. We are asking suppliers to participate in management system assessments and training that will help to identify shortcomings in health and safety areas such as emergency preparedness, and to facilitate mitigation/improvement actions. In addition, we will increase surveillance events for health & safety in Greater China. In addition, we will increase surveillance events for health and safety in Greater China.

Audits conducted in 2012

Location Initial audits Follow-up audits Full re-audits Number of workers at sites audited
China 29 11 13 309,200
Total 29 11 13 309,200
EICC Code provisions Rate of major and minor nonconformances in sites audited1
General
EICC Code awareness
Major: 3%
Minor: 20%
Compliance with laws
Major: 0%
Minor: 0%
Supplier management program
Major: 30%
Minor: 20%
Labor
Freely chosen employment
Major: 8%
Minor: 25%
Child labor avoidance
Major: 0%
Minor: 78%
Working hours2
Major: 85%
Minor: 10%
Wages and benefits
Major: 43%
Minor: 38%
Humane treatment
Major: 3%
Minor: 30%
Non-discrimination
Major: 10%
Minor: 5%
Freedom of association
Major: 0%
Minor: 0%
Labor management system
Overall
Major: 33%
Minor: 0%
Health and safety
Occupational safety
Major: 18%
Minor: 43%
Emergency preparedness
Major: 78%
Minor: 20%
Occupational injury and illness
Major: 15%
Minor: 38%
Industrial hygiene
Major: 45%
Minor: 35%
Physically demanding work
Major: 10%
Minor: 58%
Machine safeguarding
Major: 0%
Minor: 40%
Dormitory and canteen
Major: 45%
Minor: 20%
Environmental health and safety management
Overall
Major: 3%
Minor: 0%
Environmental
Environmental permits and reporting
Major: 8%
Minor: 5%
Pollution prevention and resource reduction
Major: 5%
Minor: 8%
Hazardous substances
Major: 15%
Minor: 60%
Wastewater and solid waste
Major: 3%
Minor: 13%
Air emissions
Major: 3%
Minor: 13%
Product content restrictions
(See Materials section.)
Major: 23%
Minor: 15%
Ethics
Business integrity
Major: 8%
Minor: 8%
No improper advantage
Major: 5%
Minor: 10%
Disclosure of information
Major: 0%
Minor: 0%
Intellectual property
Major: 0%
Minor: 0%
Fair business, advertising, and competition
Major: 3%
Minor: 5%
Protection of identity
Major: 28%
Minor: 3%
Community engagement
Major: 0%
Minor: 0%

1This data reflects the results of HP’s initial audits and full re-audits conducted in 2012. It does not necessarily represent results from the same supplier sites reported on in previous years.

2A major nonconformance in the underage worker provision of HP’s EICC Code does not necessarily indicate the presence of child labor. For example, an auditor may uncover 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, or the minimum age specified by HP’s EICC Code. While there were nonconformances uncovered in 2012, no child labor was uncovered.

3A major nonconformance in the working hours provision of HP’s EICC Code indicates that at least one of the following requirements was not met:

  • The average hours worked in a workweek over the last 12 months at the facility did not exceed 60 hours or the legal limit (whichever is stricter).
  • Workers are allowed mandated breaks, holidays, and vacation days to which they are entitled.
  • Workers are provided with at least 1 day off per 7 workdays on average.

Asia Pacific

In Asia Pacific, the most significant audit findings relate to excessive working hours and emergency preparedness, similar to our China and global findings. These issues are a key focus of our refreshed programs that will help HP move toward a sustainable supply chain. We aim to take the lessons from our excessive working hours KPI program in China and implement them in Asia Pacific to address this issue. We are asking suppliers to participate in management system assessments and training that will help to identify shortcomings in health and safety areas such as emergency preparedness, and to facilitate mitigation/improvement actions.

Audits conducted in 2012

Location Initial audits Follow-up audits Full re-audits Number of workers at sites audited
Australia 0 1 0 200
Japan 1 0 0 1,500
Malaysia 8 7 1 15,600
Philippines 2 2 0 8,300
Korea 0 1 0 7,200
Singapore 3 2 0 4,200
Thailand 2 1 2 22,500
Total 16 14 3 59,500
EICC Code provisions Rate of major and minor nonconformances in sites audited1
General
EICC Code awareness
Major: 11%
Minor: 11%
Compliance with laws
Major: 0%
Minor: 0%
Supplier management program
Major: 37%
Minor: 5%
Labor
Freely chosen employment
Major: 11%
Minor: 32%
Child labor avoidance2
Major: 0%
Minor: 47%
Working hours3
Major: 63%
Minor: 26%
Wages and benefits
Major: 32%
Minor: 26%
Humane treatment
Major: 5%
Minor: 21%
Non-discrimination
Major: 11%
Minor: 11%
Freedom of association
Major: 5%
Minor: 32%
Labor management system
Overall
Major: 37%
Minor: 0%
Health and safety
Occupational safety
Major: 16%
Minor: 37%
Emergency preparedness
Major: 53%
Minor: 21%
Occupational injury and illness
Major: 11%
Minor: 32%
Industrial hygiene
Major: 16%
Minor: 16%
Physically demanding work
Major: 0%
Minor: 5%
Machine safeguarding
Major: 21%
Minor: 21%
Dormitory and canteen
Major: 16%
Minor: 26%
Environmental health and safety management
Overall
Major: 21%
Minor: 0%
Environmental
Environmental permits and reporting
Major: 0%
Minor: 5%
Pollution prevention and resource reduction
Major: 0%
Minor: 11%
Hazardous substances
Major: 11%
Minor: 58%
Wastewater and solid waste
Major: 5%
Minor: 11%
Air emissions
Major: 5%
Minor: 5%
Product content restrictions
(See Materials section.)
Major: 21%
Minor: 5%
Ethics
Business integrity
Major: 16%
Minor: 21%
No improper advantage
Major: 0%
Minor: 5%
Disclosure of information
Major: 0%
Minor: 5%
Intellectual property
Major: 0%
Minor: 0%
Fair business, advertising, and competition
Major: 32%
Minor: 5%
Protection of identity
Major: 26%
Minor: 16%
Community engagement
Major: 0%
Minor: 0%

1This data reflects the results of HP’s initial audits and full re-audits conducted in 2012. It does not necessarily represent results from the same supplier sites reported on in previous years.

2A major nonconformance in the underage worker provision of HP’s EICC Code does not necessarily indicate the presence of child labor. For example, an auditor may uncover 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, or the minimum age specified by HP’s EICC Code. While there were nonconformances uncovered in 2012, no child labor was uncovered.

3A major nonconformance in the working hours provision of HP’s EICC Code indicates that at least one of the following requirements was not met:

  • The average hours worked in a workweek over the last 12 months at the facility did not exceed 60 hours or the legal limit (whichever is stricter).
  • Workers are allowed mandated breaks, holidays, and vacation days to which they are entitled.
  • Workers are provided with at least 1 day off per 7 workdays on average.

Europe

In Europe, audit results show considerably better performance than the global average. Our main findings relate to supplier management programs. We are asking suppliers to participate in management system assessments and training that will help to identify shortcomings in this area, and to facilitate mitigation/improvement actions.

Audits conducted in 2012

Location Initial audits Follow-up audits Full re-audits Number of workers at sites audited
Czech Republic 0 3 0 3,700
Hungary 1 0 1 1,100
Israel 2 0 0 2,100
Netherlands 1 1 0 800
Poland 1 0 1 1,300
Russia 0 0 1 200
Slovak Republic 1 0 0 900
Turkey 1 1 0 400
Total 7 5 3 10,500
EICC Code provisions Rate of major and minor nonconformances in sites audited1
General
EICC Code awareness
Major: 10%
Minor: 10%
Compliance with laws
Major: 0%
Minor: 0%
Supplier management program
Major: 50%
Minor: 30%
Labor
Freely chosen employment
Major: 0%
Minor: 0%
Child labor avoidance
Major: 0%
Minor: 40%
Working hours3
Major: 0%
Minor: 0%
Wages and benefits
Major: 0%
Minor: 10%
Humane treatment
Major: 0%
Minor: 10%
Non-discrimination
Major: 0%
Minor: 30%
Freedom of association
Major: 0%
Minor: 30%
Labor management system
Overall
Major: 10%
Minor: 0%
Health and safety
Occupational safety
Major: 10%
Minor: 40%
Emergency preparedness
Major: 30%
Minor: 60%
Occupational injury and illness
Major: 0%
Minor: 0%
Industrial hygiene
Major: 0%
Minor: 30%
Physically demanding work
Major: 10%
Minor: 10%
Machine safeguarding
Major: 10%
Minor: 0%
Dormitory and canteen
Major: 0%
Minor: 0%
Environmental health and safety management
Overall
Major: 10%
Minor: 0%
Environmental
Environmental permits and reporting
Major: 0%
Minor: 20%
Pollution prevention and resource reduction
Major: 0%
Minor: 10%
Hazardous substances
Major: 0%
Minor: 70%
Wastewater and solid waste
Major: 0%
Minor: 10%
Air emissions
Major: 0%
Minor: 10%
Product content restrictions
Major: 30%
Minor: 10%
Ethics
Business integrity
Major: 20%
Minor: 0%
No improper advantage
Major: 20%
Minor: 20%
Disclosure of information
Major: 0%
Minor: 0%
Intellectual property
Major: 10%
Minor: 10%
Fair business, advertising, and competition
Major: 10%
Minor: 10%
Protection of identity
Major: 10%
Minor: 10%
Community engagement
Major: 0%
Minor: 0%

1This data reflects the results of HP’s initial audits and full re-audits conducted in 2012. It does not necessarily represent results from the same supplier sites reported on in previous years.

2A major nonconformance in the underage worker provision of HP’s EICC Code does not necessarily indicate the presence of child labor. For example, an auditor may uncover 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, or the minimum age specified by HP’s EICC Code. While there were nonconformances uncovered in 2012, no child labor was uncovered.

Latin America

In Latin America, our main findings related to supplier management programs, excessive working hours, and physically demanding work. We aim to take the lessons from our excessive working hours KPI program in China and implement them in Latin America to address this issue. In collaboration with Social Accountability International and the Rapid Results Institute, we are asking suppliers in Brazil to participate in the Brazil Worker Engagement program, which is designed to help Brazilian factories improve health and safety in the workplace.

Audits conducted in 2012

Location Initial audits Follow-up audits Full re-audits Number of workers at sites audited
Brazil 2 6 2 7,600
Mexico 3 1 1 3,800
Total 5 7 3 11,400
EICC Code provisions Rate of major and minor nonconformances in sites audited1
General
EICC Code awareness
Major: 0%
Minor: 14%
Compliance with laws
Major: 0%
Minor: 0%
Supplier management program
Major: 29%
Minor: 0%
Labor
Freely chosen employment
Major: 0%
Minor: 57%
Child labor avoidance
Major: 0%
Minor: 43%
Working hours3
Major: 29%
Minor: 14%
Wages and benefits
Major: 14%
Minor: 14%
Humane treatment
Major: 0%
Minor: 57%
Non-discrimination
Major: 0%
Minor: 0%
Freedom of association
Major: 0%
Minor: 29%
Labor management system
Overall
Major: 14%
Minor: 0%
Health and safety
Occupational safety
Major: 0%
Minor: 43%
Emergency preparedness
Major: 14%
Minor: 57%
Occupational injury and illness
Major: 0%
Minor: 29%
Industrial hygiene
Major: 0%
Minor: 29%
Physically demanding work
Major: 29%
Minor: 29%
Machine safeguarding
Major: 0%
Minor: 29%
Dormitory and canteen
Major: 14%
Minor: 0%
Environmental health and safety management
Overall
Major: 0%
Minor: 0%
Environmental
Environmental permits and reporting
Major: 0%
Minor: 43%
Pollution prevention and resource reduction
Major: 0%
Minor: 0%
Hazardous substances
Major: 14%
Minor: 29%
Wastewater and solid waste
Major: 0%
Minor: 14%
Air emissions
Major: 14%
Minor: 0%
Product content restrictions
Major: 14%
Minor: 43%
Ethics
Business integrity
Major: 0%
Minor: 0%
No improper advantage
Major: 0%
Minor: 0%
Disclosure of information
Major: 0%
Minor: 0%
Intellectual property
Major: 0%
Minor: 0%
Fair business, advertising, and competition
Major: 0%
Minor: 0%
Protection of identity
Major: 14%
Minor: 14%
Community engagement
Major: 0%
Minor: 0%

1This data reflects the results of HP’s initial audits and full re-audits conducted in 2012. It does not necessarily represent results from the same supplier sites reported on in previous years.

2A major nonconformance in the underage worker provision of HP’s EICC Code does not necessarily indicate the presence of child labor. For example, an auditor may uncover 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, or the minimum age specified by HP’s EICC Code. While there were nonconformances uncovered in 2012, no child labor was uncovered.

3A major nonconformance in the working hours provision of HP’s EICC Code indicates that at least one of the following requirements was not met:

  • The average hours worked in a workweek over the last 12 months at the facility did not exceed 60 hours or the legal limit (whichever is stricter).
  • Workers are allowed mandated breaks, holidays, and vacation days to which they are entitled.
  • Workers are provided with at least 1 day off per 7 workdays on average.