Hewlett-Packard is committed to helping its global supply partners, specifically in China, make continuous improvements in their sustainable processes. In recent years HP discovered some disturbing labor practices among its Chinese suppliers. At one Chinese supplier factory workers were taking turns using the same dormitory bed; one worker slept while the other worked. At another factory hundreds of bunk beds were set up for workers in a big hall; the supplier's business had increased but it had not built additional space to house workers recruited from rural areas. At other overseas supplier facilities, chemicals were brought in without being properly evaluated, resulting in skin rashes among workers; in another factory pallets of materials were stacked in front of stairwells, making the exits inaccessible in the event of fires; elsewhere workers were accumulating hours beyond allowable levels and workers' pay was docked as a disciplinary action, plus other unacceptable labor practices. 

Central European suppliers find it difficult to meet occupational safety and emergency preparedness practices while in Latin America, working hours and emergency preparedness are a challenge. However, in today's publicly transparent business climate, how a company like HP conducts itself in terms of its social and environmental responsibility is central to its reputation. HP is constantly under scrutiny from a variety of stakeholders including customers, stockholders, government and non-government agencies, media, and investors. In one recent global survey across a number of countries, 87% of consumer respondents expressed concern about the environmental and social impact of the products they buy. 

The challenge for HP is how to make sure its suppliers in a long and diverse global supply chain meet HP's standards of sustainable conduct that ultimately reflect its own reputation. Most of its electronics suppliers are located in China so its sustainability efforts have been focused there. In dealing with suppliers in China, HP prefers to work with a supplier that is not meeting standards rather than dropping them. HP has implemented an Electronic Industry Code of Conduct and is using audits and supplier business reviews to monitor conformance and it is increasing sustainability weights on supplier scorecards. 

Some suppliers think sustainability only comes at a financial cost, so when possible HP is trying to link it with quality initiatives that reduce costs. In its most recent round of supplier audits 70% of the major nonconformances identified in its initial audits had been resolved, while the average number of major nonconformances per supplier facility decreased by 35% since the first audits were done. In addition HP is making a concerted effort to push its commitment to sustainability further upstream in the supply chain, often partnering with its first-tier suppliers to audit sub-tier suppliers; by 2012 HP expected that suppliers representing 75% of its total purchases will have developed sustainability programs with their own suppliers.

 Question: 

Discuss some of the factors that you think might make it difficult for a large multinational company like HP to get its overseas suppliers to make a commitment to sustainability. minimum 250 words.

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