We rely on a global supply chain to conduct business. It is important that our suppliers maintain high standards of quality and ethical business practices. We require a highly skilled labor force that can produce quality finished goods through the use of high tech capabilities and proper equipment. Considering this standard, poor working and manufacturing conditions are unacceptable.
The road to becoming a better corporate citizen requires that we take responsibility for the impacts of our upstream processes. This year, we surveyed our suppliers on their labor rights practices to better understand work conditions across our supply chain. Additionally, we performed an in-person audit of our largest contract manufacturers in Asia to ensure they provide a safe and healthy work environment and treat employees fairly. As our business grows, so will our global supply chain.
Labor Rights Survey
Our top 42 suppliers comprise 84% of our supply chain by dollars of direct materials. We surveyed our top suppliers to obtain a measure of their labor rights performance. Our suppliers provide a wide variety of materials from raw plastic to finished product. Each supplier was asked to self-report on their work conditions, employee health, and risk management. Below are examples of the questions asked with responses:
Human Rights Survey Results (by number of companies reporting)
|During your most recent facility safety check, what were the overall safety conditions?|
|Response||Dangerous||Issues Exist||Acceptable||Very Safe||N/A|
|What is your most frequent occupation accident?|
|Response||Cuts||Muscle Strain||Slips, Trips, Falls|
|What is the maximum hours employees are allowed to work in a shift?|
|Response||8 hrs.||9 hrs.||10 hrs.||12 hrs.|
|Please rank your performance on these topics.|
|Human Rights Practice|
Our vendors have formal processes for quality and environmental management.
- 75% are ISO 9001 certified (quality management)
- 25% are ISO 14001 certified (environmental management)
How our vendors manage their risk:
- 97% provide training on personal protective equipment
- 97% have an emergency response plan in place
- 97% have access to emergency services
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Human Rights Audit
This year, we conducted a more thorough audit of the conditions at our some of our contract manufacturers. The audit included environmental performance and risk management – topics not covered in 2012. Last year’s audit required follow up on about 20% of our questions because of incomplete information. In 2013, all questions were answered satisfactorily, and borderline topics from last year were resolved.
|Human Rights Audit - Topics Covered|
|Topic||Covered 2013||Add in 2014 Audit|
|General work environment|
|Personal Protective Equipment|
|Injury/illness system management|
Our second audit was completed by our manufacturing team during one of their trips to our contract manufacturers. To rate our contract manufacturers' performance we use the scale below.
Green items are all acceptable
Yellow items will be followed up on during next year’s audit
Red items require immediate action
The contract manufacturers were very cooperative with the audit. We were pleased all items were green.
Items Ranked Yellow Last year:
- Equipment safety
- Number of occupational disease
- Knowledge of conflict minerals
|Human Rights Survey|
|Items Ranked Yellow 2012||2013 Results||Notes|
|Sanitation||Green||Areas were cleaner|
|Number of occupational diseases||Green||None|
|Knowledge of Conflict minerals||Green||Tantalite: N/a
Tin: Source China
Gold : Source China
To date, we don’t include Human Rights clauses in our contracts. Our agreements between our long standing contract manufacturers and suppliers are done on a purchase order basis. There is potential for developing contracts with human rights clauses when new agreements are created.
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- Add Human Rights clauses in our contracts
- Audit majority of our contract manufacturers