While audits are a core component of our supplier engagement, they are not the only mechanism and do not on their own drive suppliers to fix and prevent issues. Continuous improvement requires deeper engagement through coaching, specialized training, and ongoing data collection and conversations that help suppliers develop robust management systems to address the root causes of supply chain issues. In this regard, we do the following:
Targeted assessments – In addition to comprehensive audits, we target specific risk through focused assessments conducted by HP certified auditors and sustainability experts focused on areas including but not limited to:
- Forced labor
- Student workers
- Fire safety and emergency preparedness
- Process chemicals and PPE
- Benchmarking of fair wages
Key Performance Indicator’s (KPI) collection - High-risk suppliers report weekly metrics which we share with company procurement manager’s monthly and senior executives quarterly. Suppliers report weekly metrics to our team about foreign migrant workers, student workers, working hours, overtime, and day of rest. This regular data source allows for us to understand detailed factors that can influence labor practices such as influx in production, Chinese New Year holiday, and other roots of potential fluctuations in performance. We use this as a platform to communicate to supply chain executives who can then forecast accordingly or engage with suppliers on our behalf.
Supplier Onsite Survey - We are constantly looking for new ways to improve our risk sensing and monitoring capabilities. We have just launched a new pilot initiative that will allow us to obtain real-time information on supply chain issues from the factory floor. HP’s best resource in combatting supply chain labor issues is our people. The SOS App enables folks on the ground to be our eyes and ears, as an extension of supplier responsibility team. The survey walks the user through four categories; fire safety, exit safety, worker safety, and worker’s rights, addressing only the most egregious labor, health and safety concerns that are identifiable.
Conflict Minerals Reporting Template (CMRT) - HP shares global concern over the need for responsible mineral sourcing. We require that suppliers respond to the CFSI’s Conflict Minerals Reporting Template, which gives companies a common data format for sharing information about 3TG sources with business partners and suppliers up and down their supply chain. We request corrective action from suppliers where needed and are now training suppliers to seek information beyond 3TG such as cobalt. If any 3TG supplier reports sourcing from a smelter that triggers one of our potential risk indicators, we work with the supplier to establish whether unverified material is potentially used in HP products. When we identify a risk of this occurring, we request the supplier to remove the smelter from our supply chain.
Capability building - We aim to empower workers so that everyone who helps bring our products to market can thrive. For example, in 2018 we launched our Women in Factories program in China focused on wellness and leadership skills, as part of our ongoing involvement in a BSR initiative in the country. Through peer-to-peer coaching plus direct engagement, our program has reached more than 11,600 female workers across three supplier sites. BSR’s final report revealed satisfaction rates of 93.8% among the peer educators and 83% among workers, while factory management scored the program 9.5 out of 10.