[Kuala Lumpur, Malaysia, November 14, 2011]: Huawei, a leading global information and communications technology (ICT) solutions provider, shared its successful approach to supplier corporate social responsibility (CSR) management at the CSR Asia Summit 2011. Alan Aicken, Huawei’s vice president of Global Supplier CSR Management, spoke on a panel titled “Is it worthwhile to source sustainable goods?” and discussed Huawei’s socially responsible sourcing practices and vision to transform the supply chain of the entire telecom industry.
“Huawei’s Supplier CSR Management program seeks to change supplier behavior by enabling suppliers to develop innovative solutions and to be proactive in driving CSR throughout their business as well as the entire supply chain,” said Alan Aicken.
Huawei asks suppliers to sign an agreement in which they commit to at least meeting National law as well as meeting internationally recognized Industry CSR standards on labor occupational safety and health environmental business ethics, CSR management system requirements, and sub-supplier management requirements. Potential suppliers unable to meet Huawei’s CSR requirements are rejected until the meet the proper standard, and existing suppliers who have problems meeting these requirements may be eventually phased out from Huawei’s supply chain if improvements are not forthcoming.
“A supply chain is only as strong as its weakest link. In 2010, Huawei made CSR a prerequisite for new suppliers, and we ensure compliance by conducting regular audit assessments, reviews and random inspections of all our high and medium risk suppliers, and providing potential incentives for positive change. ” explained Mr Aicken.
According to The Ethisphere Institute, a leading international think-tank that ranks the World’s Most Ethical (“WME”) companies, there is a clear correlation between ethical business practices and improved financial performance, as WME companies, if indexed together, have outperformed the S&P 500 by 7.3 percent annually since 2007. Strong corporate social responsibility also enhances a company’s brand and reputation, increases customer loyalty, and lowers employee turnover.
Over the past two years, Huawei has assessed more than 1,300 suppliers and has made substantial progress in creating awareness and effecting change, which has led to improved working conditions for hundreds of thousands of workers around the world.