HP Starts Discussions with GoodElectronics Coalition to Improve Supplier Performance

HP today announced that it is in discussions with the GoodElectronics Coalition, an international network of NGOs, to further improve the social and environmental performance of its second and third tier suppliers in China. 

An example of this relationship is HP´s participation in recent stakeholder events such as “Made in China 2007.” The event, organised by the Dutch Trade Union FNV in co-operation with the Coalition in Amsterdam, discussed the social and environmental responsibility of the electronics industry supply chain. 

“GoodElectronics welcomes HP´s readiness to involve stakeholders”, said Monique Lempers, GoodElectronics Coordinator. “HP was the sole electronics company participating in our event. We expect HP to continue with their leadership role, taking full responsibility of improving the conditions in the entire supply chain and to stick to its commitment.” 

Implementing Standards
Based on feedback and research reports, HP has committed to take action against one of its second tier suppliers, China-based Jiangmen Gloryfaith, where the working conditions were questioned by an NGO based in Hong Kong. Gloryfaith provides small components for calculators to one of HP’s first tier suppliers. 

HP management has been in contact with both the first tier supplier and Gloryfaith on the detailed allegations and the subsequent corrective action plan. There will also be a Third Party audit scheduled along with a follow up meeting in China with all parties, including the NGO. Finally, a potential contract between Gloryfaith and an additional first tier supplier has been placed on hold until corrective measures are in place.

“No matter where our suppliers operate, safe and healthy working conditions are key priorities,” said Bonnie Nixon Gardiner, HP’s Programme Manager for Supply Chain Social & Environmental Responsibility. “HP has some of the most ambitious standards in our industry but suppliers who are not contractually bound to HP make the enforcement of HP’s standards more complex.”

In addition HP requires its first tier suppliers to participate in the Focused Improvement Supplier Initiative, a one year supplier management programme run by Hong Kong and China-based members of the GoodElectronics Coalition. The course is designed to teach suppliers how to monitor and enforce social and environmental responsibility in their respective supply chains. This year 30 suppliers in Northern and Southern China will go through the programme.