Strengthening our communities and enabling
the sustainable development of society.
Improving workers’ lives is our ultimate objective and we strive to raise social and environmental responsibility (SER) standards across our industry by sharing the experience we gain and challenges we face along the way. Our supply chain responsibility program aims to empower workers and ensure that human rights are respected throughout our supply chain. Together with our suppliers, we collaborate to improve working conditions, enhance environmental performance, and support the workers that make and deliver our products. We are targeted in our approach to capability building and willing to innovate with new methods and partnerships. In collaboration with local and international NGOs, training groups, and other stakeholders, we engage extensively with workers to promote wellness and enhance their skills, empowering them to become leaders in their communities.
Our 2015 capability-building initiatives
Improving supplier practices
Work Stress Prevention
From March 2014 to April 2015, HP partnered with the Hong Kong Worker’s Health Centre for a participatory work stress improvement program aiming to dissect and address the root causes of work related stress. This program took place in a supplier facility in Dongguan, China and included phases for data collection, intervention, and evaluation. Following the initiative, the supplier experienced a 29% decrease in employee turnover and a 33% reduction in sick days. Employees also reported a 10% increase in support from management and a 36% increase in feeling control over their work.
Since 2012, we partnered with experts, including Dr. Kazutaka Kogi, President of the International Commission on Occupational Health (ICOH), and professional industrial hygienists from the Hong Kong Worker’s Health Centre, to train management from 16 suppliers on worker stress prevention and mental health awareness. Managers from 62 additional suppliers attended a webinar focused on preventing combustible dust explosions and fire safety, including suppliers working in metal fabrication several tiers deep in our supply chain. These workshops engage workers and management in self-identifying and solving occupational health and safety (OHS) issues at their workplace.
In 2015, HP and SAI, an international NGO focused on social responsibility standards, launched TenSquared at two of the company’s supplier factories. TenSquared is a workshop that increases dialog between workers and managers and enables them to collaborate and solve an on-site specific health and safety challenge over a 100-day period. One of the suppliers in the program achieved its goal of decreasing evacuation time from 12 minutes to 3 minutes and the other supplier reached their goal of addressing 75% of identified ergonomics risks.
The Sustainable Trade Initiative (IDH) program
HP partnered with the Sustainable Trade Initiative (IDH) in 2012, which seeks to improve the rights and working conditions of 500,000 Chinese factory workers through better worker-management communication and workplace practices. This program also promotes environmental measures at targeted facilities, including reductions in greenhouse gas (GHG) emissions, waste, and water use. In 2013, we nominated seven of our China-based suppliers, representing over 21,000 workers and 210 managers, to join IDH for a two year program where we observed a 10% increase in worker-management trust and communication.
Enhancing knowledge and skills
HP provided peer-to-peer health training to 29 factories in partnership with the Federation of Reproductive Health Associations, the Penang Family Health Development Association in Malaysia, and the Thailand Business Coalition on Aids in Thailand. Since 2007, we have brought this program to suppliers in China, Malaysia, Mexico, and Thailand. These collaborative efforts helped empower more than 46,000 female workers to take ownership of and make decisions about their health.
HP partnered with BSR to launch the “Women in Factories” program in 9 supplier sites in China. Women make up a significant portion of our suppliers’ workforce and we invest in women to overcome gender inequalities such as occupational discrimination, violence, and lack of access to basic education and healthcare. In 2015, this program taught over 17,000 women critical life skills related to communication, hygiene, and reproductive health. The program also builds women’s leadership skills and aims to create a pipeline of high-potential women workers, creating a more inclusive working environment, and furthermore, a more inclusive economy.
HERfinance, also a BSR program, has strengthened the financial capabilities of 1,286 workers at Flex, an HP supplier in Brazil. Through a pilot program, workers received training on topics such as responsible spending, reducing debt, and financial planning. The classes demonstrated positive results, showing a 26% increase in the number of workers who felt comfortable meeting their families’ expected expenses over the next two years, a 42% increase in workers who felt prepared to handle unexpected costs in the next two years, and a six-fold increase in the number of participants able to correctly identify basic financial terminology.
Strengthening supplier management systems
Foreign Migrant Worker Workshops
Partners: Intel, Seagate, Western Digital, Malaysian government
In April 2015, Hewlett-Packard Company hosted three Foreign Migrant Worker management training sessions for suppliers in Malaysia together with Intel, Seagate, Western Digital, and the Malaysian Ministry of Home Affairs. The workshops in Johor, Kuala Lumpur, and Penang provided training on IT companies’ brand requirements and best practices on labor standards and foreign migrant worker management for 90 suppliers, 38 labor agents, and several hostel management companies. These training sessions are part of the implementation phase of our Foreign Migrant Worker Standard. We want to ensure that our suppliers not only understand our expectations but increase their capacity to meet them.
Responsible Student Intern Management Support program
In 2015, HP partnered with the Labour Education and Service Network (LESN) to help two suppliers in Chongqing, China improve their management systems and protect the rights of student workers. Over the course of a year, the suppliers received training using the Electronic Industry Citizenship Coalition (EICC) best practices toolkit, which HP helped develop, and made significant progress by improving recruitment procedures and providing medical examinations, social insurance, and equal and direct payment for student workers. These trainings also expanded suppliers’ understanding of the Student and Dispatch Worker Standard. Over the course of 5 months, the proportion of student workers at one of the supplier’s sites was reduced from 29% to 9%.
Pre-departure Training for Student Workers
We brought pre-departure training to more than 42,000 recent graduate and student workers in 2015, and more than 222,000 at 4 suppliers since 2011. This program informs interns and recent graduates of their labor rights prior to entering the workforce. Similarly, training occurs at vocational schools and human resources departments at supplier sites to create a mutual understanding of student worker standards and policies.
We Support – Line management and parenting training
Partners: CCR CSR, Chongqing government
A partnership with the non-profit Center for Child Rights and Corporate Social Responsibility (CCR CSR) helped to develop and implement innovative training sessions addressing the challenges faced by young workers, their families, and supplier line management in 6 supplier factories in China. Out of 738 managers who underwent the “WeSupport” training, 90% of managers pledged to change the way they communicate with young workers by rewarding good work and reducing negative or condescending language. The program also uses popular social media platforms such as WeChat to engage the younger generation in training modules that build understanding of policies and provide professional development skills.
Protecting the environment
The Energy Efficiency program is intended to use creative methods to reduce energy use and promote conservation and efficiency among our suppliers. Since 2010, we have helped 213 supplier sites in China and Southeast Asia save 380 million kWh of electricity. We invite suppliers to fill out environmental assessments using tools from the Global Social Compliance Programme (GCSP), and use supplier feedback in strategizing future environmental work. We periodically hold environmental summits with various stakeholders including WWF China and the World Resources Institute to report progress, provide trainings, and discuss action plans tailored to suppliers. The next summit will take place in July of 2016.
Improving the environment performance of our customers, operations and supply chain
Acting with integrity and respect for human rights around the world
1. This table includes both company-level and facility-specific data obtained during 2013 and 2014 relating to HP’s first-tier production suppliers. Findings from our 2013 and 2014 audits are limited to those facilities audited during the year and are not representative of all facilities in our supply chain.
2. Based on production-line workers at final assembly and select commodity sites participating in the HP KPI program and audit results. We continue to expand the list of suppliers in the KPI program based on business risk, country risk, and identified nonconformances.
3. 2014 findings relate to emergency preparedness and industrial hygiene. See Audit results on page 35 of the HP 2014 LPR Audit results section.
4. Suppliers represent 95% of HP’s production supplier spend. 2012 is the latest year for which data is available for use in the 2013 reporting year. 2013 is the latest year for which data is available for use in the 2014 reporting year.