Global citizenship at HP Overarching message With HP s global reach comes global responsibility. We take our role seriously by being an economic, intellectual and social asset to the communities in which we do business. As HP has grown to become the world s largest IT company, our commitment to global citizenship has remained integral to our business strategy. Global citizenship at HP is based on a foundation of strong corporate accountability and governance, a commitment to environmental responsibility and active investment in local communities. We conduct our business with uncompromising integrity, protect customer and employee privacy, and support human and labor rights in our workplace and throughout our supply chain. We design our products to be sustainable throughout their life cycles, offer product reuse and recycling solutions, and set high environmental standards in our operations and supply chain. We invest in communities around the globe through contributions and the actions of our employees to help people work, learn and thrive. HP believes that companies, governments and communities need to work together to address common social and environmental challenges. We engage with governments to develop public policy and collaborate with nongovernmental organizations and other stakeholders to address social and environmental concerns. Our Global Citizenship priorities complement our core programs and reflect current issues that are especially important to our customers, our stakeholders and the success of our business. Key focus areas Corporate accountability and governance Environmental responsibility Community investment and involvement 2007 Global Citizenship priorities Corporate accountability and governance Overarching message Keeping the trust and loyalty of those we serve depends on doing business with honesty and uncompromising integrity. HP s values ground our business practices and shape our policies and actions in areas of ethical conduct, personal data protection and responsible supply chain management. We hold our employees, partners and suppliers accountable for their actions in all aspects of our business. HP was founded on the idea that integrity really matters, and we strive to reflect this every day. Key focus areas Ethical leadership Privacy leadership Supply chain (see 2007 Global Citizenship priorities) 1
Ethical leadership HP recognizes that uncompromising integrity and trust above all are vital to good business and solid corporate citizenship. HP s Standards of Business Conduct govern our ethical and legal behavior. Focus area Accountability Risk Impact HP employees are accountable for their actions. HP explores innovation without compromising our standards or risking the business. HP knows any violation of the SBC can harm the company. We value your business. That s why every HP employee is held to a strict set of ethical guidelines at all levels of the company. Every HP employee is responsible for upholding our Standards of Business Conduct, which govern HP s ethical and legal obligations to our stakeholders and partners, while our board of directors sets the tone for ethics and compliance at the top. As HP employees, we all must take SBC training and apply it to everything we do, every day. We pursue innovative ventures to create new products and services that better meet your business needs, without taking ethical risks. We require comprehensive training to cover our Standards of Business Conduct so that every employee understands the risks of unethical behavior. We can take creative risks without risking our business. HP has your best interests in mind. We know that an SBC violation can impact not only our business, but your business and the large number of people who use our products and services every day. We understand that the costs outweigh the benefits of bending the rules and that the impact on share value could harm every one of us. We know any violation of the SBC has the potential to harm us all. Privacy leadership HP considers privacy and data protection to be a human right. We handle personal data with integrity and accountability. We are committed to protecting the privacy of our customers, partners, employees and the contracted individuals who work with us. Focus area Rigorous standards Integration Governance HP s Global Master Privacy Policy outlines the highest standards for privacy. HP safeguards personal data throughout our business operations, from product development to We ensure compliance to our policies and privacy laws. 2
Trust HP to uphold the highest standards in ensuring that your organization s critical data is protected and used responsibly. HP s Global Master Privacy Policy, built upon Safe Harbor privacy principles, governs the collection, storage, transport and use of customer and employee personal data, including information stored on products returned to HP for refurbishing or recycling. We uphold the highest standards for safeguarding employee data. technical support. HP safeguards your critical personal data every step of the way, with privacy features built into our products, online transaction technologies, support, and IT reuse and recycling services. HP s Design for Privacy (DfP) initiative is a global effort to incorporate privacy requirements at the earliest stages of product and service development and throughout the product life cycle and service relationship. We integrate our privacy policies into all aspects of internal operations to ensure your personal data is used responsibly. HP closely guards your privacy by responding to questions and concerns, working with data protection authorities when required by law, conducting assessments of our privacy programs and training our employees at all levels of the business. HP works with governments and privacy professionals worldwide to promote progressive privacy policies and shape legislation to meet the high privacy standards while supporting technology innovation. We adhere to our privacy policies and protect our customers and employees personal information. Environmental responsibility Overarching message HP understands that part of being a leading technology company today means dedicating ourselves to environmental responsibility. And to us, it s not just about getting on the green bandwagon. We ve been focused on environmental stewardship for a very long time. In 1981, we were one of the first technology companies to begin a hardware remarket program, and we have offered product recycling services since 1987. Our Design for Environment strategy, established in 1992, outlines our approach to designing products that are sustainable throughout their entire life cycles. We also set high environmental standards for our own operations as well as for the members of our extensive supply chain. Key focus areas Design for Environment Energy efficiency (see 2007 Global Citizenship priorities) Product reuse and recycling (see 2007 Global Citizenship priorities) Supply chain responsibility (see 2007 Global Citizenship priorities) Environmental awareness (see Community involvement) 3
Design for Environment Our Design for Environment strategy touches on virtually every aspect of our business. This program has helped reduce the amount of energy used by our products, lessen the impact of the materials we use in manufacturing, and make product recycling easy and affordable. As part of the program, we are committed to using all our resources from research and development to our industry, government and client relationships to help find solutions to global climate issues. For us, that means helping our customers, communities and families understand the issues, and providing solutions that make it easy for them to reduce their environmental impact. It also means making investments in research, product development and materials innovation to advance conservation efforts worldwide. We work with industry partners, members of our supply chain and governments across the globe to raise environmental standards in the technology sector and beyond. In addition, our environmental commitment means walking our talk by continuously striving to reduce the environmental impact of our own operations. Focus area Customer simplicity Smart innovation Industry influence Company stewardship We make it practical and easy for customers to go green from desktops to data centers, individuals to enterprises. It s easy and affordable to reduce your environmental footprint with HP s energyefficient technologies and a range of product reuse and recycling options. Our environmental focus is global in reach and scope, making it easy and practical for businesses and individuals worldwide to reduce their impact. We invest in research, product development and materials innovation to help advance conservation efforts worldwide. We are continually developing new energyefficient technologies and materials innovations that can help you reach your environmental goals. As a leading global technology company, we contribute ongoing research and development to help advance conservation efforts worldwide. We work with industry partners, members of our extensive supply chain and governments to raise environmental standards in the technology sector and beyond. We re helping to raise the bar for everyone by contributing to the global effort to create common environmental standards in the technology sector and beyond. We engage with industry partners, members of our extensive supply chain and governments to support strategic climate-change initiatives and help develop common environmental standards and effective We continually strive to reduce our own environmental impact, by integrating energyefficient technologies into our operations and increasing reuse and recycling in our facilities. We incorporate strong environmental practices into our own operations worldwide, which better prepares us to help you meet your conservation goals. We continually strive to reduce our own environmental impact, by integrating energyefficient technologies into our operations and increasing reuse and recycling in our facilities. 4
Our products and services make it easy and affordable for customers to reduce their environmental impact. We re making a difference with innovative research and development that helps advance conservation efforts worldwide. policies. We contribute to the global effort to raise environmental standards in the technology sector and beyond. We empower every employee to play help HP lead the way in environmental stewardship worldwide. Community investment and involvement Overarching message Our founders began a tradition of investing back into the community the first year they made a profit. Today, our commitment to community investment remains integral to our business strategy. We invest in local communities around the globe through product and cash grants, as well as through the actions of our employees. In addition, we are active members of the global community. We engage in dialogue with governments on the development of public policy and with nongovernmental organizations and other stakeholders concerned about social and environmental issues. Key focus area Community investment Public policy Stakeholder relations Community investment We invest in communities around the globe to help people learn, work and thrive. Our goal is to help people use technology to inspire creativity and open doorways into valuable information and global web communities. Our programs focus on three key areas: economic development, education and environment. Through equipment and cash grants, we help nonprofits that support microenterprises in underserved communities and provide technology and teacher support to schools, colleges and universities. In addition, we support research and innovation to advance climate change science and reduce the impact of information technology on the environment. Focus area Environmental sustainability Economic development Educational opportunity 5 HP applies technology and global expertise to advance environmental citizenship, address climate change, and promote energy conservation and recycling. We use our technology and global expertise to tackle environmental issues, such as climate change, HP promotes economic development by providing technology and training to nonprofits that use technology to bolster job skills, enhance employability and foster entrepreneurship. HP helps ignite economic development in communities that need it most by providing resources HP offers education grants designed to transform teaching and increase student success through effective technology integration. HP fosters innovative uses of technology in the classroom to spark educators creativity and help students succeed.
energy conservation and recycling. and technology to nonprofits that help increase job skills and support entrepreneurs. Community investment, continued Focus area Environmental awareness Economic development Educational opportunity HP works with schools and NGOs to promote environmental citizenship, contributing products and services to educate others and advance the study of climate change. HP s Microenterprise Development Program is designed to be locally relevant, addressing unemployment and underemployment in the regions where it is deployed. HP helps integrate technology solutions into classrooms to increase student achievement and help grow a diverse, highly skilled workforce. We are using our technology and global expertise to develop environmental best practices and advance the study of climate change. We re making it easier for people to apply information technologies that spark business development and strengthen local economies. We support student success and help build a high-tech workforce by encouraging the innovative use of technology in the classroom. Public policy Our core values lead us to engage in the global public policy conversation, helping us advance both our global citizenship goals and our business objectives. We meet regularly with government officials, regulators, community leaders and key stakeholders to discuss emerging issues and their potential impacts. In addition, we participate in numerous industry associations in major product and geographic markets to reach government officials more efficiently. Focus area Innovation and competitiveness Access to markets Environment 6 HP supports public policy that encourages entrepreneurship and economic growth, promotes consumer choice, provides incentives for research and development, and increases investment in education. As your technology needs evolve, we help the industry keep pace by supporting policies that encourage product innovation and consumer HP supports efforts to eliminate trade barriers, reduce or remove tariffs, modernize customs procedures and speed delivery of products globally. To make it easier and more affordable to deliver products and services to our customers worldwide, we support policies that eliminate HP supports public policy that promotes energy-efficient technologies and responsible recycling of electronics products. We help you reduce your environmental footprint and cut operations costs by driving policies that promote incentives for use of energy-efficient technologies
choice. We re concerned with issues where the technology industry and communities intersect. We support policy that encourages entrepreneurship and economic growth, increases investment in education, strengthens the Rule of Law * in developing countries and rewards good citizenship. trade barriers, reduce or remove tariffs, and modernize customs procedures. We support comprehensive and progressive multilateral, bilateral and regional trade agreements that make global trade more efficient, level the playing field for the IT industry through common standards, and promote transparency in government procurement and liberalization of IT services. and support responsible recycling of electronics products. HP believes corporations, governments and organizations around the world need to work together to address the environmental issues our planet is facing. That s why we support public policy to promote energy-efficient technologies and responsible recycling of electronics products. Public policy, continued Our strategic involvement in key public policy debates helps us offer customers more innovative choices and supports economic growth in the communities where we do business. Because more than 60 percent of our revenue comes from sales outside the United States, open trade policies are vital to our growth and success. Customers increasingly are looking for and giving preference to companies that combine positive contributions to the environment with business leadership. We support policies that help to reduce environmental impact because customers demand it and because it s the right thing to do for our business and for the planet. Stakeholder relations HP works directly with each of our stakeholder groups to better understand their unique needs and to recognize trends and opportunities. Stakeholder engagement is an integral part of our global citizenship objective, contributes to HP's business success and strengthens our brand. Communities HP strives to be an economic, intellectual and social asset to every community in which we do business. To meet this goal, we invest our time, expertise, technologies and money to help people around the world learn, work and thrive. Customers We strive to create innovative technology solutions that make people s lives richer. To that end, we work closely with our customers to understand their evolving needs. We regularly seek feedback through customer loyalty surveys, and representatives are available to respond quickly to inquiries and commercial requests for proposals (RFP). 7
Employees Investors Legislators and regulators Industry analysts and media Nongovernmental organizations Suppliers HP collects employee input through the @hp web portal, ongoing employee surveys, networking groups, briefings, meetings and appraisals. The Open Door policy allows every employee s voice to be heard and fosters open communication among all levels at HP. In addition to statutory and other disclosures and reporting, HP holds an annual stockholder meeting and engages with investment firms to address stockholder concerns that may affect our business. We meet regularly with government officials, regulators, community leaders and other key stakeholders to discuss emerging issues and their potential impacts. In addition, we participate in numerous industry associations in major product and geographic markets to reach government officials more efficiently. We work directly with industry analysts and media representatives to provide interviews, attend meetings, hold briefings and collaborate on articles and books. HP collaborates with nongovernmental agencies to address global social and environmental issues of mutual concern. We work with suppliers to build awareness and strengthen capabilities in social and environmental responsibility throughout the IT industry s global supply chain. In addition, we collaborate with other industry leaders and their suppliers to streamline the procurement management process for everyone. Footnote * HP defines the Rule of Law as a country s governance structure pursuant to its laws, in accordance with its legitimate, established and transparent regulatory procedures. 8
2007 Global Citizenship priorities Our Global Citizenship priorities support our business goals. In addition, they reflect issues that are especially important to our customers, our stakeholders and the communities in which we conduct business. We reevaluate these priorities regularly to assess progress, and as new issues emerge, we may shift our focus. Priorities Energy efficiency Product reuse and recycling Supply chain responsibility Energy efficiency We focus on conservation. HP s energy-efficient products and services save money and reduce our customers as well as our own environmental impact. Focus area Products/services Operations HP designs energy-efficient products and services. HP continues to improve the energy efficiency of its global operations. Reduce energy consumption and your TCO with the energy-saving intelligence built into HP products and services. Let HP help you integrate energy efficiency into your business facilities. We ve become energy experts by focusing on reducing consumption in our own operations. HP recognizes that our greatest impact on the environment is through our products. That s why we continuously strive to create products and services that are more energy efficient. We design our products to consume less energy, from manufacture and distribution to customer use. HP is committed to reducing carbon dioxide emissions and our impact on climate change through increased energy efficiency in our operations. We operate our facilities in an energy-efficient manner. 9
Product reuse and recycling In 1987, we were pioneers when we began recycling IT equipment. We re still leading the industry with more global recycling programs than any other IT vendor and an innovative approach to product design that makes recycling easier. Focus area Convenience Design for recycling HP offers a range of convenient reuse and recycling HP designs products that are easy to disassemble and recycle. options worldwide. Easily and affordably dispose of your IT products at the end of their life cycle with HP s worldwide product reuse and recycling options, including trade-in, asset recovery and leasing. Reduce your environmental impact with HP technology products, designed using fewer and more innovative materials for easier recycling. HP offers customers a variety of convenient product reuse and recycling services around the world and audits recycling processes to ensure they are conducted responsibly. We help reduce environmental waste by making it easy for people to recycle their computing products and supplies. HP develops products that can be easily disassembled and recycled sustainably through our Design for Recycling (DfR) program. We make it easier to recycle HP products by designing them to be recyclable from the start. Supply chain responsibility Accountability doesn t stop at our doors. With one of the largest supply chains in the IT industry, we re raising labor and environmental standards by working with suppliers, conducting audits and building local capabilities. Focus area Supplier engagement Capabilities building Diversity Our suppliers must meet strict requirements regarding human rights, labor, health and safety, the environment and ethics. We work with our suppliers to build their capabilities in social and environmental responsibility. HP fosters a diverse supply chain that includes small and large companies, as well as businesses owned by underrepresented groups. Sector) Feel confident about your HP products. We work with our suppliers to ensure that they meet our strict social and environmental standards Our suppliers are learning how to sustain socially and environmentally responsible practices in their own operations through HP training Our diverse group of regional suppliers helps us better serve you, our customers, and meet your specific needs. 10
throughout the manufacturing, shipping and recycling process. HP ensures that our environmental, health and safety, labor and human rights, and ethics standards are upheld throughout our supply chain with regular supplier assessments and audits. We protect the environment and workers worldwide by upholding rigorous standards for responsible practices throughout our supply chain. events. HP provides training and support to help build capabilities in social and environmental responsibility throughout the IT industry s supply chain. We help our suppliers succeed by offering capabilities-building programs in social and environmental responsibility. HP meets many public and private diversity requirements worldwide and supports a range of businesses that are minority-, women- and veteran-owned, through our Corporate Supplier Diversity Program. Our diverse regional suppliers reflect the needs of our customer base and provide us with fresh ideas, innovative products and processes, and wide-ranging capabilities. 11