Audit findings

In 2013, HP conducted 123 audits of our production suppliers, 13 non-production supplier audits, two SER management systems audits of recycling facilities, and 34 SER assessments targeting specific risks uncovered through audits, KPIs and external stakeholder feedback. Our production and nonproduction supplier initial audits reached as many as 67,0001 workers this year. The results of our nonproduction supplier and recycling audits as well as our SER assessments are not included in the charts below because the operations of these suppliers or scope of the assessments are different to those of traditional audits and cannot be compared.

Global findings

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Distribution of major nonconformances by section of HP’s EICC Code of Conduct, 2012 - 20132

Health and safety
Health and safety 30%
Labor
Labor 25%
Management system
Management system 21%
Ethics
Ethics 12%
Environmental
Environmental 12%
General
General 0%

In 2013, our monitoring results were mixed for several reasons. First, we extended the scope of auditing to include both new and existing suppliers that were not previously monitored under our SCR program which uncovered some gaps in the SER management systems at these suppliers. In addition, together with the EICC, we added new requirements to encourage continual improvement, requesting additional proof of conformance, and using more rigorous scoring criteria. As a result, we have seen an increase in nonconformances in some areas. However, we believe that these changes will lead to improved outcomes for workers in the long term.

This year’s report includes further clarification of audit findings reported under three specific audit provisions: forced labor, child labor, and nondiscrimination. We have separated findings in these critical areas to distinguish between audit results showing a deficiency in policy, procedures, and management systems and audits that identify cases of forced labor, child labor, or discrimination.

Zero tolerance items

In 2013, HP found six zero tolerance instances against HP’s EICC Code of Conduct. For more detailed information please see Supply chain responsibility, Zero tolerance.

Greater China

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Distribution of major nonconformances by section of HP’s EICC Code of Conduct, 2012 - 20132

Health and safety
Health and safety 33%
Labor
Labor 26%
Management system
Management system 17%
Ethics
Ethics 12%
Environmental
Environmental 12%
General
General 0%

HP’s supplier audit results vary by region due to inherent differences in local contexts. We tailor our risk identification methods, policies, assurance approach and capability building programs to the unique risks in each region. To learn more about our approach see Supply chain responsibility: our approach. To find out more about HP’s programs see Capability building.

Audits conducted in 2013

Location Initial audits Follow-up
audits
Full re-audits
China 33 33 12
Total 33 33 12

*These data reflect the results of HP’s initial audits and full re-audits conducted in 2013. They do not necessarily represent results from the same supplier sites reported on in previous years.

Asia Pacific

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Distribution of major nonconformances by section of HP’s EICC Code of Conduct, 2012 - 20132

Health and safety
Health and safety 25%
Labor
Labor 26%
Management system
Management system 32%
Ethics
Ethics 7%
Environmental
Environmental 9%
General
General 1%

HP’s supplier audit results vary by region due to inherent differences in local contexts. We tailor our risk identification methods, policies, assurance approach and capability building programs to the unique risks in each region. To learn more about our approach see Supply chain responsibility: our approach. To find out more about HP’s programs see Capability building.

Audits conducted in 2013

Location Initial audits Follow-up
audits
Full re-audits
Malaysia 5 6 0
Philippines 2 1 0
Singapore 4 3 1
Thailand 2 0 1
Vietnam 2 0 0
Total 15 10 2

Europe

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Distribution of major nonconformances by section of HP’s EICC Code of Conduct, 2012 - 20132

Health and safety
Health and safety 13%
Labor
Labor 7%
Management system
Management system 33%
Ethics
Ethics 20%
Environmental
Environmental 27%
General
General 0%

HP’s supplier audit results vary by region due to inherent differences in local contexts. We tailor our risk identification methods, policies, assurance approach and capability building programs to the unique risks in each region. To learn more about our approach see Supply chain responsibility: our approach. To find out more about HP’s programs see Capability building.

Audits conducted in 2013

Location Initial audits Follow-up
audits
Full re-audits
Czech Republic 0 1 3
Turkey 0 0 1
Israel 0 1 0
Poland 2 1 0
Total 2 3 4

Americas

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Distribution of major nonconformances by section of HP’s EICC Code of Conduct, 2012 - 20132

Health and safety
Health and safety 14%
Labor
Labor 14%
Management system
Management system 37%
Ethics
Ethics 16%
Environmental
Environmental 19%
General
General 0%

HP’s supplier audit results vary by region due to inherent differences in local contexts. We tailor our risk identification methods, policies, assurance approach and capability building programs to the unique risks in each region. To learn more about our approach see Supply chain responsibility: our approach. To find out more about HP’s programs see Capability building.

Audits conducted in 2013

Location Initial audits Follow-up
audits
Full re-audits
Brazil 0 2 5
Mexico 1 0 1
Total 1 2 6

1Number of workers as of the date of the site visit per the production and nonproduction supplier initial audit reports, rounded to the nearest thousand.

2These data reflect the results of HP’s initial audits and full re-audits conducted in 2013. They do not necessarily represent results from the same supplier sites reported on in previous years.

3According to SAI’s Extrapolated Market Basket methodology a living wage is one which is sufficient to provide food and the remaining basic needs for the worker and the average number of dependents per wage earner in an average household, with an additional 10% added on for discretionary income.