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Ethics in the ICT Manufacturing Supply Chain

Ethics in the ICT Manufacturing Supply Chain. Balan Shanmuganathan 26 June 2014. Introduction. Seagate: Storage Leader. *For third fiscal quarter ended March 31, 2014, **Includes interns and agency temps. Approximately 51,000 ** employees worldwide.

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Ethics in the ICT Manufacturing Supply Chain

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  1. Ethics in the ICT Manufacturing Supply Chain BalanShanmuganathan 26 June 2014

  2. Introduction

  3. Seagate: Storage Leader • *For third fiscal quarter ended March 31, 2014, **Includes interns and agency temps • Approximately 51,000** employees worldwide • Seagate is the world's leading providerof storage devices • Provides storage for enterprise, desktop, mobile computing, consumer electronics and retail markets • Owns and vertically integrates critical technologies: heads and media

  4. Seagate Global Presence

  5. Seagate Products, Customers and Markets Mobile and Client NAS Enterprise Cloud, Kinetic and Open Safe and Smart Surveillance Consumer Electronics Internal Storage Personal Storage Personal Cloud Storage SMB Storage Wireless Storage Branded Products Services

  6. Supply Chain Code of Conduct

  7. Evolution of the Code of Conduct • Prior to 2004, individual companies had their own supplier code of conduct • In 2004 a number of companies got together and developed a common supply chain code of conduct. The EICC code v1 was released in October 2004 • To support the code implementation, the companies formed a coalition and started developing common assessment questionnaires and audit tools • The coalition has now grown to over 90 companies, reviewing thousands of assessment questionnaire and completing hundreds of audits • The code has undergone multiple revisions and is currently in version 4 with the next version scheduled to be released in January 2015

  8. The EICC has grown over the years

  9. EICC Code of Conduct Labor Treat employees with dignity & respect Environment Protect the Environment Management Systems Management system approach drives sustainable solutions Health & Safety Evaluate & control Exposure to hazards Ethics Uphold the highest standards

  10. What are the drivers for an Ethics code? Labor Treat employees with dignity & respect Environment Protect the Environment Management Systems Management system approach drives sustainable solutions • Creating a level playing field • Setting minimum standards • Complementing company values • Meeting stakeholder expectation • Meeting legal obligation • Brand reputation Health & Safety Evaluate & control Exposure to hazards Ethics Uphold the highest standards

  11. EICC Code of Conduct Labor Treat employees with dignity & respect Environment Protect the Environment • The Ethics section of the code covers, • Business Integrity • No Improper Advantage • Disclosure of Information • Intellectual Property • Fair Business, Advertising & Competition • Protection of Identity • Responsible Sourcing of Minerals • Privacy • Non-Retaliation Management Systems Management system approach drives sustainable solutions Health & Safety Evaluate & control Exposure to hazards Ethics Uphold the highest standards

  12. EICC Code of Conduct Labor Treat employees with dignity & respect Environment Protect the Environment • The Ethics Management System section of the code covers, • Company Commitment • Mgmt. Accountability & Responsibility • Legal & Customer Requirements • Risk Assessment & Risk Mgmt. • Improvement Objectives • Training • Communication • Worker Feedback & Participation • Audits & Assessments • Corrective Action Process • Documentation & Records Management Systems Management system approach drives sustainable solutions Health & Safety Evaluate & control Exposure to hazards Ethics Uphold the highest standards

  13. Ethics and Human Rights • In most Human Right violations there is an element of corruption thus making Human Rights violation an Ethics concern • In recent years stakeholders have approached Human Rights violation as an Ethics violation tying it to the US Foreign Corrupt Practices Act (FCPA) and the UK Anti Bribery Act • These legislation don’t only apply to the company’s practices but also to the supply chain, thus requiring a more comprehensive approach • Soon the Federal Acquisition Regulation (FAR) will be released in support of the Executive Order Against Trafficking in Persons in Federal Contracts requiring additional disclosures in how migrant workers are cared for in the Supply Chain • Companies are now collaborating on various programs and activities to address Human Rights violations in the Supply Chain, e.g. conducting joint training, enhancing audits and verifications

  14. In Summary ETHICS HUMAN RIGHTS Capacity Building WATCH THIS SPACE IT IS EVOLVING Supply Chain Migrant Workers Human Trafficking Bonded Labor Established Code of Conduct Questionnaire Assessment Audit Verification Corrective Action

  15. Thank you for your attention

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