Business Benefits to HP Suppliers from Responsible Practices in China

In recent years, the electronics industry has made important improvements in social and environmental responsibility (SER) conformance among first-tier suppliers, due in part to the standardization of SER practices set forth in the Electronics Industry Code of Conduct (EICC). Hewlett-Packard (HP), the first company in the industry to implement a Supplier Code of Conduct, has taken a comprehensive approach by educating suppliers on how to achieve compliance, conducting individual audits and third-party joint audits, and emphasizing continuous improvement. This approach is being disseminated now to sub-tier suppliers, which should improve standards throughout HP’s supply chain. What should motivate suppliers to achieve full SER compliance?