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

Fri Feb 8, 2013 7:45am EST

* Reuters is not responsible for the content in this press release.

  PALO ALTO, CA, Feb 08 (Marketwire) -- 
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 tomorrow."

    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

    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

    About HP
 HP creates new possibilities for technology to have a
meaningful impact on people, businesses, governments and society. The
world's largest technology company, HP brings together a portfolio that
spans printing, personal computing, software, services and IT
infrastructure to solve customer problems. More information about HP is
available at http://www.hp.com.

    This news release contains forward-looking statements that involve risks,
uncertainties and assumptions. If such risks or uncertainties materialize
or such assumptions prove incorrect, the results of HP and its
consolidated subsidiaries could differ materially from those expressed or
implied by such forward-looking statements and assumptions. All
statements other than statements of historical fact are statements that
could be deemed forward-looking statements, including but not limited to
statements of the plans, strategies and objectives of management for
future operations; any statements concerning expected development,
performance, market share or competitive performance relating to products
and services; any statements regarding anticipated operational and
financial results; any statements of expectation or belief; and any
statements of assumptions underlying any of the foregoing. Risks,
uncertainties and assumptions include macroeconomic and geopolitical
trends and events; the competitive pressures faced by HP's businesses;
the development and transition of new products and services and the
enhancement of existing products and services to meet customer needs and
respond to emerging technological trends; the execution and performance
of contracts by HP and its customers, suppliers and partners; the
protection of HP's intellectual property assets, including intellectual
property licensed from third parties; integration and other risks
associated with business combination and investment transactions; the
hiring and retention of key employees; assumptions related to pension and
other post-retirement costs and retirement programs; the execution,
timing and results of restructuring plans, including estimates and
assumptions related to the cost and the anticipated benefits of
implementing those plans; the resolution of pending investigations,
claims and disputes; and other risks that are described in HP's filings
with the Securities and Exchange Commission, including HP's Annual Report
on Form 10-K for the fiscal year ended October 31, 2012. HP assumes no
obligation and does not intend to update these forward-looking statements.

    Copyright 2013 Hewlett-Packard Development Company, L.P. The information
contained herein is subject to change without notice. HP shall not be
liable for technical or editorial errors or omissions contained herein.


Editorial contact

Kelli Schlegel
+1 650 857 4443


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