HP project develops blueprint for sustainability through supply chains

HP today published a set of guidelines for multinational companies to promote social and environmental responsibility throughout their global supply chains. Based on a report written with the Danish Commerce and Companies Agency (DCCA), the guidelines highlight the role of multinationals in improving standards in small and medium-sized suppliers down the supply chain.

The report, “Small Suppliers in Global Supply Chains”, highlighted that multinationals can have a huge impact on the standards in the supply chain, especially if their direct suppliers are fully engaged. Integrating management systems in business operations, following up on written requirements through audits, maintaining dialogue, engaging in industry-wide initiatives and engaging small and medium-sized enterprises (SMEs) in capability-building activities are all crucial to achieving high social and environmental standards.

The guidelines were drawn up by HP and the Danish Commerce and Companies Agency. This followed an exhaustive study of HP’s working practices, on-site assessments of 15 of HP’s suppliers based in the Czech Republic, Hungary and Poland and the organisation and assessment of capability-building activities.
 
“There is a clear link between companies with strong ethics and good performance.” said Carsten Ingerslev, Head of the Danish Centre for CSR part of the Danish Commerce and Companies Agency. “This is because customers are increasingly demanding higher standards and decent products. Through this project we have firmly demonstrated what needs to be done in order to promote strong social and environmental standards through the supply chain.”

HP, together with industry experts, provided training and advice to first and second tier suppliers. This equipped suppliers with the necessary tools to link corporate social responsibility with their general business objectives and provided a basis for developing a set of guidelines for other multinationals.

“HP has one of the largest and most complex supply chains in the technology sector.” said Karl Daumueller, programme manager for global procurement at HP “This project is about equipping our direct suppliers with the tools to meet the highest environmental and social standards, enabling them to project these standards on to their suppliers. We hope these guidelines will be used by other multinationals to boost sustainability in their supply chains.” 

The project, funded by the European Commission, involved a number of initiatives designed to help small and medium-sized suppliers more effectively assess themselves. This included on-site assessments, management and worker interviews, and the development of a forum to create a supplier community to share best practices and help each other with problem solving. 

By following these guidelines multinationals will be able to better equip their suppliers to effectively compete in the global market while maintaining and improving their environmental and social standards. The report also highlights the crucial role that can be played by first tier suppliers to multinationals in promoting corporate responsibility to SMEs further along the supply chain.

HP focuses on simplifying technology experiences for all of its customers – from individual consumers to the largest businesses. With a portfolio that spans printing, personal computing, software, services and IT infrastructure, HP is among the world’s largest IT companies, with revenue totaling $104.3 billion for the four fiscal quarters ended Oct. 31, 2007. More information about HP (NYSE: HPQ) is available at www.hp.com.

The Danish Commerce and Companies Agency (DCCA) is an Agency under The Ministry of Economic and Business Affairs. The DCCA is the official place of registration for Danish Businesses. In parallel the DCCA administers legislation regulating Businesses. DCCA plays an important role in the national effort to reduce the administrative burden. In recent years, the agency has taken up the corporate social responsibility agenda. More information is available at www.eogs.dk

© 2007 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. The only warranties for HP products and services are set forth in the express warranty statements accompanying such products and services. Nothing herein should be construed as constituting an additional warranty. HP shall not be liable for technical or editorial errors or omissions contained herein.
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