EICC Case-Study: Leadership in Developing a Supply Chain Code of Conduct for the IT Industry

Leadership in Developing a Supply Chain Code of Conduct for the IT Industry

Organisation Name
Hewlett-Packard


Problem
Today, more than 80% of HP’s products are manufactured through alliances and partnerships and the company has taken significant steps to extend its social and environmental standards by introducing the HP Supply Chain Code of Conduct to its supply chain in 2002. It was the first code of conduct in the IT industry and provides an important foundation for HP’s ongoing efforts to ensure compliance with its Supply Chain Social and Environmental Responsibility (SER) Policy. With one of the IT industry’s largest and most complex supply chains also comes responsibility for setting standards in this industry. So in 2004, HP took the initiative to extend the Supply Chain Code of Conduct to the whole industry by playing a leading role in developing an industry-wide standard.


Solution
Since many electronics industry companies share suppliers, an industry-wide supplier code of conduct allows companies to work more effectively with suppliers to ensure compliance. In 2004, HP facilitated collaboration with some of the largest IT organisations, including Dell and IBM and major Electronics Manufacturing Service Providers, to develop a common Electronic Industry Code of Conduct (EICC).


The EICC promotes responsible business practices to improve social and environmental conditions across the global electronic supply chain and it aims to foster responsible management and operational practices in the areas of labour, human rights, environmental, health and safety (EHS) and ethics.


The EICC paves the way for a standards-based approach for monitoring suppliers' performance across several areas of corporate responsibility. Fundamental to adopting the code is the understanding that a business, in all of its activities, must operate in full compliance with the laws, rules and regulations of the countries in which it operates. The code encourages participants to go beyond legal compliance, drawing upon internationally recognised standards in order to advance social and environmental responsibility.


The Electronic Industry Code of Conduct may be voluntarily adopted by a business in the electronics sector and subsequently applied by that business to its own suppliers.


Over the last year, HP has had extensive dialogue with internal and external stakeholders regarding EICC provisions. In coordination with the original EICC founders, the company incorporated several changes into the EICC. The current (October 2005) version added open communication and direct engagement between workers and management.


HP participates in the EICC Implementation Group as the Vice Chair and is a member of the EICC steering committee.


Constraints
•Building consensus in developing an industry code of conduct took time and perseverance in the short run but has long-term benefits.


Benefits

•It was clear that there were advantages to addressing supply chain issues on an industry-wide basis, to develop common assessment, auditing methods and a central database for the technology sector.


•Standardizing SER tools and processes throughout the industry reduces confusion, increases efficiency, avoids duplication of supplier surveys and audit fatigue and increases focus on the core issues.

Period Of Implementation
2004



Place Of Implementation
Global

More Information
http://www.eicc.info/
http://www.hp.com/hpinfo/globalcitizenship/environment/supplychain/compliance.html
http://www.hp.com/hpinfo/globalcitizenship/gcreport/supplychain/supplyapproach.html
http://h41111.www4.hp.com/globalcitizenship/uk/en/bulletin/3/interview.html


Year Of Submission
2006


Themes
Mainstreaming CSR
Business Partnerships


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Reference Link:
http://www.csreurope.org/solutions.php?action=show_solution&solution_id=45