Strengthening our communities and enabling
the sustainable development of society.
CA Transparency in Supply Chains Act of 2010
On January 1, 2012, the California Transparency in Supply Chains Act of 2010 (SB 657) went into effect. This law seeks to increase the quantity of information made available by manufacturers and retailers regarding their efforts, if any, to address the issues of slavery and human trafficking in their supply chains. This in turn allows consumers to make better, more informed choices regarding the products they buy and the companies they choose to support.
Integrity is the foundation of HP Inc.’s global business and our promise to customers and communities. We hold our leadership, employees, suppliers, and business partners to the highest ethical standards and require their compliance with applicable laws and regulations at all times. These expectations are clearly described in HP’s Standards of Business Conduct (SBC) and supported by additional targeted policies and codes of conduct addressing the behavior of our partners and suppliers. HP's Global Human Rights Policy further outlines HP's commitment to and respect for human rights in its operations.
The core expectations for HP suppliers are contained in HP's Supplier Code of Conduct which includes provisions that incorporate international labor and human rights standards. HP requires its suppliers to conform to the standards contained in the HP Supplier Code of Conduct ensuring workers at supplier facilities have: (i) the right to freely chosen employment; (ii) the right, in accordance with local laws, to join labor unions on a voluntary basis, to bargain collectively as they choose and to engage in peaceful assembly; and (iii) the right to a workplace free of harassment and unlawful discrimination.
HP recognizes that certain groups of workers may be more vulnerable than others to risks of forced labor or human trafficking. To address the potential risks to these workers HP has issued two specialized supply chain labor standards. The first was introduced in 2013 to address unique risks for student and dispatch workers at supplier facilities in China. The second was introduced in 2014 to address specific risks related to the recruitment and management of foreign migrant workers.
HP’s efforts to evaluate suppliers’ conformity to our requirements and to prevent risks of forced labor and human trafficking in the supply chain include:
- Evaluation and verification of product supply chains. We work to sense emerging risks in our supply chain at global, regional, and local levels. We analyze information from our supplier-monitoring program, worker engagement, our extensive stakeholder network, and other external sources to proactively look for and address risks such as those related to forced labor and human trafficking.
- Stakeholder engagement: HP engages with a broad range of stakeholders including workers (through interviews, capability building programs, and our ethics concerns reporting system), industry bodies, governments, socially responsible investors (SRIs), and non-governmental organizations (NGOs) to research and better understand risks of forced labor and human trafficking in the supply chain.
- Supplier risk profiling: HP performs assessments of suppliers to analyze potential risks for forced labor and human trafficking including preliminary risk assessments, supplier assessment questionnaires, and in-person specialized assessments.
- External data: We use information from a wide range of external sources to provide context for our supply chain responsibility program design. These sources include research, reports, indices from governments and reputable research institutions, and we monitor eternal sources for new resources as they become available.
We work to sense emerging risks in our supply chain at global, regional, and local levels. We analyze information from our supplier-monitoring program, worker engagement, our extensive stakeholder network, and other external sources to proactively look for and address risks such as those related to forced labor and human trafficking. To evaluate risks related to forced labor or human trafficking in particular, we analyze indicators such as employment of vulnerable worker groups, the use of third party agents in the recruitment or management of workers, and supplier operations in geographic areas with potential for elevated risks for forced labor or human trafficking.
The information received through our risk sensing feeds into our annual audit prioritization process and other program activities, including those intended to address risks of forced labor and human trafficking. We primarily focus our Supply Chain Responsibility program engagement on first-tier suppliers, those with which HP has a direct contractual relationship, including final assembly suppliers as well as strategic commodity suppliers. If we identify specific risks or an opportunity to have a significant impact, we may engage suppliers deeper in our supply chain with the support of our direct suppliers. We also require our direct suppliers to communicate the HP Supplier Code of Conduct to the next tier of suppliers and to monitor those suppliers’ compliance with these requirements (See Supply Chain Responsibility: Our approach for more information.)
Various types of announced assessments are conducted under this program, including comprehensive on-site audits of supplier practices and underlying management systems, specialized assessments, and investigations into supplier-specific allegations. Our comprehensive audits are conducted by independent third-party auditors through the Electronic Industry Citizenship Coalition (EICC) Validated Audit Process
A finding of nonconformance with HP's Supplier Code of Conduct or specialized labor standards related to forced labor or human trafficking does not necessarily indicate that forced labor or human trafficking has occurred, but may indicate a lack of standard operations or procedures to prevent such an occurrence. Following a finding of nonconformance through an audit or specialized assessment, suppliers are required to produce corrective action plans to outline how they intend to resolve the issues, which HP then reviews and approves. HP has zero tolerance for the presence of forced labor or human trafficking. Our auditors are required to escalate any such items immediately. Suppliers must immediately cease any practices contributing to a zero tolerance issue and report their corrective action to HP no later than 30 days after the original audit or specialized assessment. HP or a third party auditor will then re-examine the finding through a site visit to confirm resolution.
(See Audit results in HP’s 2015 Sustainability Report for more information on 2015 audit findings.)1
Although the terms of HP’s Supplier Code of Conduct do not specifically address "materials" that suppliers incorporate into products, HP presents the Code of Conduct as a total supply chain initiative and requires suppliers to certify, at minimum, that they require their next tier suppliers to comply, including compliance with laws regarding forced labor and human trafficking. We also require suppliers to monitor the performance of their next tier suppliers against the requirements of the HP Supplier Code of Conduct.
As part of the requirements of HP’s Supplier Code of Conduct and specialized labor standards we require suppliers to develop appropriate policies, procedures and associated documentation to adhere to our requirements and any applicable laws and regulations, including those prohibiting forced labor and human trafficking. We confirm the existence and maintenance of those management systems through our audit program (see section 2 above).
HP provides multiple channels to report concerns about a potential violation of law, company policy, or HP's Standards of Business Conduct, including those related to forced labor or human trafficking. (See Ethics for more information).
Beyond our employee training, HP also partners with a number of nongovernmental organizations (NGOs) and training partners to raise supplier awareness of and conformance to HP's Supplier Code of Conduct and specialized labor standards, including ways to identify and address the risks of forced labor and human trafficking. HP's supply chain capability building programs have included worker-management communications training, which provides employees access to mechanisms to raise any issues with management or superiors. Since 2008, we have had an ongoing focus on providing training on best practices to prevent risks associated with forced labor or human trafficking in the recruitment and employment of foreign migrant workers. In the past two years we have partnered with other leading IT companies to conduct these training sessions for suppliers and labor agents from Southeast Asia. (See Management Systems under Capability Building for more information.)
Another area of concern for the IT industry is the risk that certain minerals mined in the Democratic Republic of Congo may have directly or indirectly benefitted armed groups engaged in human rights violations. In addition to the efforts described above, HP has been a leader in conducting due diligence of its supply chain, publishing a list of the smelters of these minerals reported by HP’s suppliers, and being a leader in advancing industry programs and tools that enable companies to source conflict free minerals. (See Conflict minerals for more information.)
HP believes partnership with other companies and key stakeholders is critical to eradicating the risks of forced labor and human trafficking in our supply chain. As an EICC member, HP benefits from the opportunity to participate in the identification and sharing of leading practices with other EICC members. This includes evaluation of the EICC Code of Conduct and development of tools and training to help build the capability of EICC suppliers. Other collaborative alliances with Verité, Social Accountability International (SAI), the Global Business Initiative on Human Rights (GBI), and others allow HP to exchange information on issues and coordinate how to best protect workers in our supply chain.
For full details of our Supply Chain Responsibility program, see Supply chain responsibility.
Improving the environment performance of our customers, operations and supply chain
Acting with integrity and respect for human rights around the world
All figures contained on this page are reflective of Hewlett-Packard Company prior to the company’s November 1, 2015 separation. HP Inc. metrics will be introduced to the site on an on-going basis as they become available.
1. As of November 1, 2015.