HP Introduces New Responsible Supplier Guidelines for Student, Dispatch Workers in China

HP Introduces New Responsible Supplier Guidelines for Student, Dispatch Workers 
in China 
Company Launches Industry-First Initiative to Protect High-Risk
Workers, Promote Responsible Workforce Practices 
PALO ALTO, CA -- (Marketwire) -- 02/08/13 --  In an effort to
proactively address the significant increase in the use of student
and dispatch workers -- such as temporary, auxiliary and substitute
workers -- in manufacturing facilities across China, HP (NYSE: HPQ)
today issued new guidelines and measurement processes for its
suppliers with operations in that country.  
The guidelines are a first for the information technology industry. 
HP's new guidelines for student and temporary workers, developed in
consultation with key stakeholders such as China's Center for Child
Rights and Corporate Social Responsibility, reinforce regulatory
requirements while introducing additional "beyond regulatory"
expectations for suppliers.  
"HP has a history of leadership in proactively addressing labor
issues and driving supply chain improvements," said Tony Prophet,
senior vice president, Worldwide Supply Chain Operations, HP. "We
have worked closely with leading Chinese stakeholders to develop our
new student and temporary worker guidelines to ensure the highest
standards of ethical workforce management."  
In addition to mandating fair remuneration and social insurance, HP's
guidelines focus on the following:  

--  All work must be voluntary: Student and temporary workers shall be
    free to leave work at any time upon reasonable notice without negative
    repercussions, and they must have access to reliable and reprisal-free
    grievance mechanisms.
--  Local regulations must be reinforced or exceeded: All regulations
    regarding legal working age, work environment, working hours, and
    contractual and term limits for student and temporary workers will be
    reinforced. Additionally, HP guidelines limit student working hours to
    below the legal limit.
--  Number of student workers must be limited: HP's guidelines specify the
    acceptable levels of student workers to ensure the direct labor force
    in manufacturing facilities is composed primarily of full-time
--  Student work must complement the primary area of study: Student
    workers should only engage in work activities that complement the
    primary degree they are seeking to obtain.

Suppliers are being asked to comply with these guidelines immediately
and will be measured through ongoing social and environmental
responsibility (SER) audits as well as HP's key performance indicator
(KPI) program, which regularly collects key SER performance
information on suppliers.  
Moving forward, HP will collect KPI information from suppliers on a
more frequent basis to manage supplier performance against these
expectations and to address other persistent supply chain issues,
such as excessive working hours. In addition, HP is concurrently
implementing a new industry-standard audit protocol and collection
tool based on recent Electronic Industry Citizenship Coalition (EICC)
provisions that have a "zero tolerance" policy for the worst cases of
nonconformity to working-hours standards.  
"Student and temporary workers are two very vulnerable groups within
the Chinese workforce. They are often entering the workplace with
limited experiences and support," said Sanna Johnson, executive
director, Center for Child Rights and Corporate Social
Responsibility. "These guidelines are a clear recognition of HP's
commitment to see its workforce as both a resource of today and
These initiatives are a part of HP's larger Supply Chain Social and
Environmental Responsibility program and underscore its leadership in
managing its supply chain to the highest ethical standards.  
HP has one of the industry's most extensive supply chains, comprising
more than 1,000 production suppliers, tens of thousands of
nonproduction suppliers, and spanning more than 45 countries and
territories. The company has developed guidelines and trainings for
the management of migrant workers and conducts regular audits of its
suppliers to evaluate compliance with its SER standards program,
performing more than 898 audits on behalf of more than 813,000
employees since the program's launch.  
Worldwide, HP continues to work with suppliers to deliver substantial
and lasting social and environmental performance improvements on a
broad range of topics, including labor and ethics, health and safety,
environment, and management systems.  
Additional information on HP's commitment to supply chain
responsibility is available at
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information contained herein is subject to change without notice. HP
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Editorial contact 
Kelli Schlegel
+1 650 857 4443
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