Responsible Electronics 2013: Human Trafficking and Bonded Labor

secure connectionsfor a smarter world

SAFEGUARDINGAGAINST TRAFFICKEDAND BONDED LABOR a suPPlier’s PersPectiVe

A SmARTERwORLD


Energy efficiency, connected devices, security and health. These are the market megatrends that will focus the world’s attention for years to come. They are the engines of progress that drive technology ever faster in a smarter world.

The relentless flow of data and information in this smarter world faces the constant threat of corruption or misuse, whether accidental or intentional. Which is why this smarter world, more than ever, requires more secure connections than ever before. This is the driving force behind NXP.

COmpANyOvERvIEw


NXP semiconductors N.V. (NASDAQ: NXPI) creates solutions that enable secure connections for a smarter world. Building on its expertise in high performance mixed signal electronics, NXP is driving innovation in the automotive, identification and mobile industries, and in application areas including wireless infrastructure, lighting, healthcare, industrial, consumer tech and computing. NXP has operations in more than 25 countries, and posted revenue of $4.36 billion in 2012.

HAMBURG (GER)

NIJMEGEN (NL) MANCHESTER

JILIN

SHANGHAI/SUZHOU KAOHSIUNG HONG KONG/GUANGDONG

CABUYAO SINGAPORE

BANGKOK

SITE NAME IN BLUE = JOINT VENTURE

SEREMBAN

BACK END

FRONT END

mANUFACTURINGCApABILITIES



ThE ChALLENGES

culture and PercePtion

use of laBor aGents

aBsence of ProPer leGislation


CULTURE AND pERCEpTION

what is unacceptable to us may seem reasonable to others


miGrant laBor

USE OF LABOR AGENTS

unavoidable in some countries

another added level of complexity

costs pressure driving supply chain


and enforcement tHereof

ABSENCE OF pROpER LEGISLATION

the protection level of workers varies per country

companies may cross those boundaries if risk is minimal

authorities concerned about future investments (attractiveness)


mANAGING CUSTOmER EXpECTATIONS

customer reQuirements

risKs of not addressinG tHe issue

nXP standards


CUSTOmER REQUIREmENTS

nXP has over 300 customer contracts in place that include requirements on social responsibility.

many of these are either eicc based or very close to eicc requirements.

only possibility to manage all these requirements is to have our own internal standard that covers all.


ADDRESSING ThE ISSUES

to make social responsibility really successful, it is not about following customer requirements, it’s about being convinced, as a company, that certain standards have to be maintained, and to set your goals beyond simple compliance.


NXp STANDARDS

over the last year nXP has developed a set of requirements: the auditable standards on social responsibility.

these standards have been deployed through training programs in all our sites.

over 500 employees received an extensive training.

we now have 37 certified eicc lead auditors, another 15 will follow later this year.


SUCCESSES AND ChALLENGES mOvING FORwARD

satisfied emPloYees

laBor aGents

costs

suPPliers and eXternal manufacturers


SATISFIED EmpLOyEES

as they are free from their debt bondage to the labor agents.

this results in lower attrition rates and a more stable and sustainable workforce.

employees are more engaged and feel they are heard and protected by the company.


LABOR AGENTS

challenge will be to retain labor agents or finding labor agents who are willing to partner with nXP as the agency fees are the main source of income for them.

nXP has started a comprehensive audit program of all labor agents to ensure compliance and to mitigate the risk of bonded labor.


COSTScosts will always be challenged.

optimistic about investments pay off.

Good performance should be recognized.


SUppLIERS AND EXTERNAL mANUFACTURERSwe might get into situations where suppliers are not willing to follow our standards and we may be dependent on these suppliers as we may have no alternatives available.

GLOBALCOALITION


To mobilize the power, resources and thought leadership of the business

community in an effort to end human trafficking, including all forms of

forced labor and sex trafficking.

gBCAT is a global coalition of corporations committed to eradicating trafficking in

supply chains, including forced labor and all sex trafficking, notably child prostitution.

gBCAT is a thought leaders’ forum to develop and share best practices for

addressing the vulnerability of businesses to human trafficking in their operations.

gBCAT companies work together across different sectors and regions, each

playing their own part, suited to their sector and comparative competencies.


OUR COmmITmENT

At NXP we make every effort to ensure that our working practices are responsible and sustainable. Our ambition for our worldwide operation is to go beyond compliance and to establish a global benchmark.

We foster ethical principles and respect for the environment, people, and our community while we pursue economic prosperity.

Sustainability is a part of the way we conduct business, the way we manage our company, and the way we interact with society at large.

We commit ourselves to sustainability because we recognize that this is inherent in our drive to create secure connections for a smarter world.

Responsible Electronics 2013: Human Trafficking and Bonded Labor

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Transcript of Responsible Electronics 2013: Human Trafficking and Bonded Labor