Huawei has long stressed the social responsibility standing of its global suppliers and partners. Purchasing with integrity and CSR management in the supply chain has been a consistent commitment supporting two strategic aspirations:
In the area of international guidelines on energy efficiency and environmental protection,Huawei has focused on SA8000, ISO14001, OHSAS18001 and new green concepts to engage our suppliers in terms of strategy, organization, procedure and skills for execution, so as to help them be socially responsible. We have also published the SWSA Guide, which clearly states that Huawei will terminate cooperation with suppliers who fail to meet SWSA requirements within a pre-defined period.
Since 2003, we have revised the supplier certification process by incorporating CSR requirements into our criteria for choosing, certifying and managing suppliers. To facilitate this, we have put into place the supporting regulations, processes and templates.
Over the past six years, we have had extensive dialogues with leading operators around theworld, such as British Telecom and Vodafone, as well as other industry players, and have fully utilized our customers feedback and industry best practices to optimize our supply chain CSR management system.
In 2007, we established a supplier CSR Risk Assessment System and implemented risk-based hierarchical supplier management into our CSR engagements.
In recent years we have implemented a CSR audit and promotion program with our key suppliers. In 2008, 77 of our suppliers improved their CSR management and reduced their CSR risks as a result of Huawei's SCAR tracking management system in 2008.
In a Joint Improvement Program on Supplier CSR Management together with Vodafone between 2007 and 2008, we evaluated, with the support of CSR risk assessment tools, the CSR risks of 300 suppliers and identified the 10 suppliers with the highest CSR risks. Following which, a joint audit and improvement tracking exercise was conducted, and ultimately achieved 190 corrections out of a total of 200 non-compliant items, and an improvement rate of 95%. While thoroughly mitigating the CSR exposure of all 10 CSRrisk suppliers, our capabilities for the CSR audit and risk management have also improved significantly.
In 2008, Huawei was among the first enterprises to sign an Agreement on Green Corporate Purchasing with the Environmental Protection Bureau of the Shenzhen Municipality. As part of this agreement, we are striving to influence and drive more companies to work towards a greener world through Huawei's achievements in green purchasing.
From 2004 to 2008, Huawei conducted six training sessions for our CSR auditors. Currently,140 Huawei engineers have qualified as internal CSR auditors, with 12 of them qualifying as senior CSR auditors. This has significantly improved our capacity to certify and manage our suppliers.
