2005 Global Citizenship Report

1825 users shared this document! click

2005 Global Citizenship Report Table of contents 1. Global citizenship at HP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 HPs global citizenship priorities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Letter from Debra Dunn . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
HP profile . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Global citizenship . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Economic value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 2. Governance and ethics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .14 Corporate governance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .15
Business ethics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .16 3. Product environmental impacts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 Design for environment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
Energy efficiency . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
Materials innovation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
Design for recyclability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
Packaging . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
Product end-of-life alternatives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 4. Operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 Managing environmental impacts and ensuring employee safety . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34
Climate change . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
Energy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
Ozone-depleting substances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
Water . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
Waste . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41
Emissions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
Compliance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44
Remediation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45 5. Supply chain . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46 Logistics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53
Human rights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54
Supplier diversity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55 6. Privacy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56
7. Employees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60 Labor practices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61
Diversity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64
Human rights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67
Healty, safety and wellness . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68 8. Customer engagement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72 Customer experience management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74
Accessibility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76 9. Social investment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78 e-inclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80
Education . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86
Employee giving and community engagement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88 10. Public engagement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90 Public policy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91
Stakeholder engagement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 94 11. Moving forward . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 96
12. Summary data table . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97
13. Glossary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 98 About this report Scope
This report describes HPs
global citizenship activities
worldwide. It charts HPs
progress in fiscal year 2004. Reporting year
All data are for HPs fiscal year
2004 (ending October 31,
2004), unless otherwise noted. Currency and measurement
All $ references in this
document are U.S. dollars,
unless otherwise noted.
Measures used in the report
are metric, except where
stated. Throughout this report,
tonnes refers to metric tonnes. Joint ventures
Joint venture company data
are excluded from this report. GRI guidelines
Where appropriate, HP uses
the Global Reporting Initiative
(GRI) guidelines as a basis
for reporting. The online GRI
index provides easy reference
of GRI items. Previous reports
HP published its 2004 Global
Citizenship Report (which
covered 2003 data) in June
2004. Past global citizenship
reports are available on the
Downloads page on the full
report site. GRI indicators* 2.11-2.13, 2.15 3.19 1.1-1.2 2.1-2.8, 3.7, EC1-EC3, EC6, EC8 1.1, 3.19 EC13 3.1-3.2, 3.4, 3.6, 3.8 3.7, HR10, SO2, SO7, PR9 3.19, EN14 3.16-3.17, PR6 3.7 EN19 3.7, EN15 2.15-2.16, 2.19, 3.19 3.6-3.7, 3.14, 3.17, 3.20 3.14, EN8, EN19, EN30 EN3-EN4, EN17 EN9 EN5, EN22 EN11 EN10, EN12 EN16 3.6-3.7, 3.16-3.17, 3.19, EN33, HR2-HR3, HR5, HR8 EN30, EN34 3.14, HR1, HR5-HR7 3.16 3.7, 3.14, 3.19, PR3 3.19 3.7, LA9, LA12, LA17, HR10 3.7, LA1, LA10-LA11, HR4, HR10 3.14, HR1, HR5-HR7 3.2, LA5-LA8, LA14 3.19 3.7, PR8 3.7 3.19, EC10 SO1 SO3, SO5 3.14-3.15 2.9, 3.10-3.12, 3.15 *References to the Global Reporting
Initiative (GRI) indicators. See
http://www.globalreporting.org/
guidelines/2002.asp.
Some are fully reported, some
partially. For a comprehensive list,
see http://www.hp.com/go/report. Key:
EC economic indicator
EN environmental
LA labor practices
HR human rights
SO society
PR product responsibility Global citizenship
at HP This report describes the
management systems,
policies and practices we
use to meet our global citizenship
objectives and summarizes our
performance during 2004. 3 2005 HP Global Citizenship Report Global citizenship at HP 4 2005 HP Global Citizenship Report Global citizenship at HP HPs global citizenship
priorities Global citizenship at HP encompasses a wide range
of issues, illustrated by the contents of this report.
Nonetheless, we focus on three priorities that reflect
stakeholder interests and HPs unique capabilities. Addressing electronic waste. Customers, governments
and the public are paying increasing attention to
issues surrounding the disposal of electronic waste.
HP addresses these issues throughout the product life
cycle. HPs efforts to design for recyclability create
products that are easier to upgrade and recycle. The
HP Planet Partners take-back program covers the return
and recycling of computer hardware and HP print
cartridges at the end of those products useful lives. We
made progress towards our goal of recycling 1 billion
pounds of electronic products and supplies by the end
of 2007. In 2004, we recycled more than 120 million
pounds of electronic products and supplies and
collaborated with leading retailers and non-governmental
organizations (NGOs) to further extend the reach of our
programs. Finally, HPs company-wide program to reduce
the number of substances and the amount of potentially
hazardous materials in our products has progressed
significantly. This reduction in turn facilitates recycling
and may increase the value of reclaimed materials.
For more information, including performance targets,
see Materials innovation and Product end-of-life
alternatives. Raising standards in HPs global supply chain. With
the largest supply chain in the information technology
industry, we have significant opportunitiesand take
responsibilityto extend our social and environmental
standards throughout our product supply chain. In 2004,
we co-developed and continue to play a leadership role
in the evolution of the Electronic Industry Code of Conduct
(EICC). The Code provides an important foundation for
HPs ongoing efforts to ensure compliance with our
Supply Chain Social and Environmental Responsibility
(SER) Policy and to build continuous improvement into
manufacturing facilities throughout our industry. For
more information, including performance targets, see
Supply chain. Increasing access to information technology. Fewer than
20% of the worlds population has access to a personal
computer and the benefits associated with access to the
Internet. Access to information and communication
technology (ICT) can play a role in addressing social
and economic inequality in underserved communities and
developing countries. In 2004, we had projects under
way in 53 countries across six continents, touching
hundreds of communities that would otherwise be
excluded from the benefits of the information revolution.
Together with key partners from the government and
community, we are deploying ICT solutions to assist
individuals in areas including education, healthcare,
microfinance and micro enterprise business development.
For more information, including specific project
accomplishments, see Social investment. 5 2005 HP Global Citizenship Report Global citizenship at HP Letter from Debra Dunn In his memoirs, Dave Packard recalled an industry
conference he was invited to address in the 1940s.
He took the opportunity to assert his belief that building
long-term shareowner value didnt simply require focusing
on making a profit, but making a contribution. That
as a business, HP had important responsibilities to its
employees, its customers, its suppliers, and to the welfare
of society at large, which in turn would help build a
stronger company that would help drive financial
performance. To his surprise and disappointment, most
of the others disagreed with him. Six and a half decades later, the idea that companies
can build shareowner value by striving to make both
a profit and a contribution is not just a cornerstone of
good corporate citizenship; it is still the foundation
of everything we do at HP. Whether its upholding
high standards of transparency and accountability,
vigorously managing our performance in environmental
sustainability and human rights, or using technology to
provide opportunity in underserved markets, it is our goal
to build trust by leaving each community in which we do
business better for our presence. Some see this work as charity, philanthropy, or an
allocation of resources that could better be donated by
shareowners themselves. But to us, it is a vital investment
in our future, essential to our top-line and bottom-line
business success. What we have learned over time is that
the work we are doing around the world to advance
social and economic development and environmental
sustainability is not separate from our long-term business
goals, but fundamental to them. In the 21st Century,
global citizenship is not just a corporate responsibility, but
also a prime business opportunity to grow our company
in new ways. Last year presented us with many unique opportunities to
demonstrate this connection between our long-term
business goals and our commitment to global citizenship.
This report documents progress against our priorities
established in 2004: addressing electronic waste, raising
global supply chain standards and increasing access to
information technology in underserved markets. In 2004, we partnered with leading retailers in the
United States and Europe to launch the first free, in-store
electronics recycling program, which helped us to recycle
more than 120 million pounds of electronic products and
supplies during the year. These efforts propelled us
towards our goal of recycling 1 billion pounds of
electronic products and supplies by the end of 2007. In 2003, we worked with our largest 50 suppliers to
improve social and environmental conditions across our
global supply chain. In 2004, we completed assessments
with 213 suppliers, far exceeding our goal of 100
suppliers. We also realized that raising social and
environmental standards and performance is an industry
challenge that requires cooperation, not competition.
Thus, working together with numerous suppliers and
technology companiesincluding our principal
competitorswe championed the Electronic Industry
Code of Conduct. We increased access to technology in 53 countries
across six continents through our e-inclusion and
education initiatives. In early 2005, we will announce
a new e-inclusion program designed to accelerate
enterprise and entrepreneurship, and thereby stimulate
economic growth. Our long-standing commitment to global citizenship
began with our founders and has been reinforced by
each CEO that has led the company. We are focused
on making progress towards our goals, trying new
approaches, and collaborating with others committed
to environmental and social responsibility. HP remains
committed to making a profit and to making a difference
for our shareowners and our global community. Sincerely, Debra Dunn
Senior Vice President of Corporate Affairs
and Global Citizenship Additional financial data,
fiscal year 2004 [Million $U.S.,
except per share amount] Reinvested in HP
Investment in property, plant
and equipment: $2,126
Research and development:
$3,506 Shareholders
Cash dividends declared
per share: $0.32
Dividend payments: $972 Supply chain
Supplier spend (approximate):
$52,000
U.S. small, minority- and women-
owned businesses: see Supplier
diversity Governments
Provision for taxes: $699 Communities
Philanthropy: $61.6 6 2005 HP Global Citizenship Report Global citizenship at HP Revenue and earnings (loss) from operations by segment
(As reported in the 2004 Annual Report on Form 10K) [Million $U.S.] HP profile HP is a leading technology solutions provider to
consumers, businesses and institutions globally. Millions of
people around the world use HP technology every day
technology that ranges from printers, cameras and
handheld PCs to some of the worlds largest and most
powerful supercomputers. Our offerings span IT
infrastructure, personal computing and access devices,
global services and imaging and printing. We are the
worlds largest consumer information technology (IT)
company, the largest small- and medium-size business
(SMB) IT company and a leading enterprise IT company.
We focus on helping people apply technology in
meaningful ways to their businesses, personal lives and
communities. In a world where processes and content are becoming
increasingly digital, mobile, virtual and personal, we
are making the necessary investments to ensure we
can accelerate progress in a way thats simple and
manageable for our customers. This shift has impacted the way people take photographs, how governments
serve and protect citizens, how large organizations
keep teams of widespread employees connected and
productive and how disadvantaged communities pursue
economic development. HPs core values HPs values have shaped the companys history and will
continue to define what HP aspires to achieve in the
future. HPs values are central, enduring and a reminder
that how we do things is as important as what we do. We are passionate about customers. We have trust and respect for individuals. We perform at a high level of achievement and contribution. We achieve our results through teamwork. We act with speed and agility. We deliver meaningful innovation. We conduct our business with uncompromising integrity. Corporate summary Chief Executive Officer and
President, as of April 1, 2005:
Mark Hurd Employees: Approximately 151,000 Ownership: HP is incorporated in
Delaware, United States. HP is
listed on the New York Stock
Exchange, Nasdaq, and the Pacific
Exchange, with the ticker symbol
HPQ. As of December 31, 2004,
there were approximately 158,246
stockholders of record. Countries of operation: 178 Headquarters: Palo Alto,
California, United States Regional Headquarters:
Americas: Houston, Texas, United States Europe/Middle East/Africa: Geneva, Switzerland Asia Pacific, including Japan: Singapore United States 37% Americas (excluding US) 6% Europe/Middle East/ 41% Africa
Asia Pacific 16% (including Japan) Revenue overview by region
[% of total, fiscal year 2004] ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ 0 5,000 10,000 15,000 25,000 20,000 30,000 Enterprise Storage and Servers
HP Services
Software Imaging and Printing Group
Personal Systems Group
HP Financial Services
Corporate Investments Elimination of intersegment net revenue and other Corporate and unallocated costs,non-operating income
and expense and eliminations Total HP consolidated before taxes Earnings (loss) from operations 12 months ended October 31 Net revenue Net revenue Earnings (loss) from operations Earnings (loss) from operations Total segments Technology Solutions Group 2003 2004 $14,593 ) $142 ) $15,152 ) $173 ) 12,357 ) 1,362 ) 13,778 ) 1,263 ) 774 ) (190) 992 ) (145) 27,724 ) 1,314 ) 29,852 1,291 ) 22,569 ) 3,596 ) 24,199 ) 3,847 ) 21,210 ) 22 ) 24,622 ) 210 ) 1,921 ) 79 ) 1,895 ) 125 ) 344 ) (161) 449 ) (178) 73,768 ) 4,850 ) 81,017 ) 5,295 ) (707) ) (1,112) ) ) (1,962) ) (1,099) $73,061 ) $2,888 ) $79,905 ) $4,196 ) 7 2005 HP Global Citizenship Report Global citizenship at HP Corporate objectives HPs corporate objectives were adopted in 1957, and the
inclusion of global citizenship was an innovation at the
time. Together with our core values, HPs corporate
objectives were written to serve as a day-to-day guide for
management decisions. These objectives have remained
essentially unchanged for more than 45 years. Customer loyalty. To provide products, services and
solutions of the highest quality and the greatest possible
value to our customers, thereby gaining and holding their
respect and loyalty. Profit. To achieve sufficient profit to finance company
growth, create value for our shareholders and provide the
resources we need to achieve our other corporate
objectives. Market leadership. To grow by continually providing
useful and significant products, services and solutions to
markets we already serve and to expand into new areas
that build on our technologies, competencies and
customer interests. Growth. To view change in the market as an opportunity
to grow, and to use our profits and our ability to develop
and produce innovative products, services and solutions
that satisfy emerging customer needs. Employee commitment. To help HP employees share
in the companys success that they make possible, we
provide people with employment opportunities based
on performance. We create with them a safe, exciting
and inclusive work environment that values diversity
and recognizes individual contributions. Leadership capability. To develop leaders at every level
who are accountable for achieving business results and
exemplifying our values. Global citizenship. Good citizenship is good business.
We live up to our responsibility to society by being an
economic, intellectual and social asset to each country
and community in which we do business. Operational structure HPs business groups and corporate functions implement
our strategy to achieve our objectives. As of February 2005, HPs business groups are as
follows: Customer Solutions Group Imaging and Personal Systems Group Technology Solutions Group HP corporate functions include Finance & Administration,
Human Resources, Global Operations & Information
Technology, Global Marketing, the Office of Strategy &
Technology/HP Labs and Corporate Affairs. Research and innovation HP has a long history of invention and innovation. We
pioneer new technologies, solutions, business models and
processes to help people have richer, more personalized
experiences in their lives and in their work. By innovating
in areas such as mobility, security, rich digital media and
management software, we seek to address emerging
customer needs and provide opportunities to capitalize on
the shift to increasingly digital, mobile, virtual, and
personal processes and content. In 2004, we introduced innovations such as the HP Multi-
user 441 Desktop Solution, an inexpensive Linux-based
computer that can accommodate four simultaneous
users. It was launched in schools in our Mogalakwena
i-community in South Africa, but has the potential for
wide-reaching application. We invest in areas where we can have a significant
impact and create value for our customers, and we
capitalize upon the innovation of our partners for the
rest. In 2004, we broadened our research relationships
with industry leaders such as DreamWorks, leading
universities including MIT and Bristol University in the
UK and global scientific consortia such as CERN. HP invested $3.5 billion on research and development in
fiscal year 2004. We closed the year with over 25,000
patents in force worldwide, up from 21,000 at the end of
fiscal year 2003. This equates to approximately 11 new
patents each day. 8 2005 HP Global Citizenship Report Global citizenship at HP Global citizenship As our operations and customers have expanded to over
170 countries worldwide, we recognize that with global
reach comes global responsibility. We are deeply aware
that we live in a world where close to half the population
lives on less than $2 a day, where 1 billion people
cannot read or write, where less than 20% of the world
has access to information technology 1 and where 52 of the largest 100 economies in the world are corporations.
As a global corporation, we have the responsibility
to use our economic power and reach to positively
impact the world. As we pursue customer loyalty, profit, market leadership
and growth, we are equally focused on dedication to our
people, our standards and values, and the reach and
depth of our commitment to global citizenship. We have chosen to align our global citizenship priorities
and strategy with our business strategy to maximize
the impact of our investments. We are collaborating
across our industry and with multilateral organizations,
governments and non-governmental organizations
(NGOs) to understand how corporations can help
solve some of the worlds toughest challenges, such as
economic development, environmental sustainability
and poverty alleviation. HP is delivering on our commitment to global
citizenship by: Conducting business with uncompromising integrity Engaging with a variety of external stakeholders from local communities to the United Nations Providing resources to improve access to technology and educational opportunities Developing products and services that are environmentally sustainable Protecting the privacy of our customers, partners and employees 1 Sources: ClickZ Network and CIA World Factbook. Global citizenship timeline 1939
HP founded
1940
HP records its first charitable donation: $5 to local charities 1955
Matching gift program started for cash donations by employees to four-year
colleges and universities; HP matched
employee amount up to $2,000 per year,
per school 1957
Citizenship objective established by William Hewlett and David Packard 1959
Bill Hewlett and local community business and labor leaders create the Santa Clara
County United Fund 1961
HP Core Values established
1976
HP starts company-sponsored vanpool program 1979
Launch of HP Standards of Business Conduct The Hewlett-Packard Company Foundation is founded 1987
Product recycling launched internally
1991
HP Planet Partners LaserJet print cartridge return and recycling program started First environmental report published
1992
Launch of Design for Environment program 1993
Domestic partner benefits introduced
1994
First packaging management system created Telecommuting policies are formalized, making HP one of the first companies
worldwide to encourage telecommuting 1995
Employee Privacy Policy updated
1997
HP Planet Partners inkjet print cartridge return and recycling program launched 1998
First online privacy statement published
1999
Accessibility Program Office created
Better Business Bureau OnLines Privacy Seal Program initiated, with HP as a
founding sponsor 2000
Accessibility Policy published
e-inclusion program launched
First Digital Village founded in East Palo Alto, CA 2001
HP self-certified to EU Safe Harbor Privacy Principles 2002
First combined HP Social and Environmental Responsibility Report
published Supply Chain Code of Conduct released
UN Global Compact endorsed 19
4
0 19
5
0 196 0 19
7
0 19
8
0 19
9
0 2000 HPs commitment to global
citizenship dates to our
companys founding. It has
been a constant in the way we
operate, from uncompromising
business ethics to investing in
communities to managing our
impact on the environment. This
report documents our priorities,
efforts and performance in
2004, and complements our
recently released financial
results. The information
contained in this report
illustrates our past and future
commitment to being a good
corporate global citizen. Bob Wayman
Chief Financial Officer 9 2005 HP Global Citizenship Report Global citizenship at HP A corporate objective HPs goal is to connect our corporate commitment to
being a good global citizen with the day-to-day running
of the HP business. Our strategy is to choose areas where
we can make a valuable contribution and support those
commitments not only with money, but more importantly,
with our people and our products. We have identified
strategic focus areas for our global citizenship agenda
that are both important to our business and to the
technology industry. To make these connections clear to our employees and
other stakeholders, we developed a global citizenship
framework to guide our strategic planning and priority
setting. This framework is connected to HPs leadership
framework through our corporate objectives, as
illustrated below. Leadership framework Global citizenship framework Privacy Philan thropy Policy leadership Co mm uni cati ons Environment e-inclusion
& education Ethics & governance Community engagement Corporate objectives Strategy Our corporate objectives Our corporate strategy
Our value proposition Customer loyalty Profit Market leadership Growth Employee commitment Leadership capability Global citizenship Values and
behavior Our shared values
Our standards of conduct Metrics, results
and rewards Our balanced scorecard Structure and
processes Our operating model Leadership and global citizenship frameworks 2003
Master Privacy Policy published
HP recycled plastic included in first hardware product Supply Chain Social and Environmental Responsibility (SER) program rolled out
to top 50 suppliers Global Citizenship Policy and Human Rights and Labor Policy adopted Half a billion pounds of electronic products and supplies recycled 2004
Thirty-four e-inclusion projects managed, in 19 countries on five continents Baltimore Digital Village and Southern California Tribal Digital Village
celebrated third anniversaries HP Multi-user 441 Desktop Solution launched Electronic Industry Code of Conduct (EICC)
co-developed by HP Self-assessments with 213 high priority suppliers completed Forty-five supplier manufacturing site audits in China, Mexico, Southeast Asia
and Eastern Europe completed Business Leaders Initiative on Human Rights (BLIHR) joined First nationwide in-store electronics recycling pilot program in the United
States offered with Office Depot Envelope-in-the-box inkjet cartridge return and recycling program extended
to 13 countries throughout Europe Select HP goals: 2005
Reduce emissions of specified PFCs by 10% from 1995 levels Add Supplier Code of Conduct to all product materials supplier contracts Eliminate lead, mercury, cadmium and hexavalent chromium in 50% of electronic
products sold worldwide, as defined
by the EUs RoHS Directive Complete SER self-assessments with 100 additional suppliers Audit a minimum of 75 supplier sites
Increase HPs e-inclusion presence to 50 countries 2006
Eliminate lead, mercury, cadmium and hexavalent chromium in 100%
of electronic products sold worldwide,
as defined by the EUs RoHS Directive 2007
Recycle 1 billion pounds of electronic products and supplies Complete SER self-assessments with a total of 700 suppliers 200 3 200 5 201 0 10 2005 HP Global Citizenship Report Global citizenship at HP Leadership and global citizenship
frameworks Core. At the core of our global citizenship framework
is our commitment to operate our business with
uncompromising integrity and to engage with a variety
of communities. These range from local communities
where we live and work, to our supply chain, to external
stakeholders trying to improve social and economic
conditions around the globe. The HP Standards of
Business Conduct and Supplier Code of Conduct were
created to ensure that our business practices and those
of our suppliers are consistent with our values. These
documents embody the fundamental principles that
govern HP employee and supplier obligations to the
company. Strategic initiatives. HP has chosen to focus our global
citizenship agenda on environment, privacy, and
e-inclusion and education. We selected these areas
based on their strategic importance to our business, the
information technology sector and society. Each strategic
initiative has specific priorities, objectives and programs
that teams across HP execute every day. Enablers. Philanthropy, public policy and communications
play a critical role in supporting and enabling the success
of our strategic initiatives. As our understanding of global citizenship is constantly
evolving, based on engagements with stakeholders
regarding the role of corporations in society, our
framework keeps our company focused to ensure
progress is made. Global citizenship strategy HPs yearly strategic business planning involves assessing
customer needs and trends, benchmarking our
performance against other companies, and ultimately
realigning priorities and resources based on those factors.
This same planning rigor is applied to the development of
our global citizenship strategic plan. Teams from the Corporate Affairs organization, business
units and corporate functions create strategic business
plans based on our global citizenship framework.
Representatives from the business organizations and key
corporate functions are responsible for integrating the key
aspects of each plan into their respective organizational
plans. The global citizenship strategic plan is presented to the
Executive Council as part of the companys overall
business planning and review process, and relevant
aspects of the global citizenship strategy are then
presented as part of the business plans for the other
business groups and functions. Global citizenship issues management
Arrows indicate flow of information Awards Worldwide
Rated #8 of G-100 companies,
#1 in U.S. and #1 in sector, in the
AccountAbility Rating. Rated #10 globally, #1 in North
America and #1 in the Technology
Equipment category, in Risk &
Opportunity: Best Practice in
Non-Financial Reporting, a
benchmark survey of the worlds
top 50 sustainability reports
conducted by SustainAbility, in
partnership with the United Nations
Environment Programme and
Standard & Poors. Executive Council HPs senior business strategy team Corporate Affairs & Global Citizenship The role of Corporate Affairs is to manage global citizenship issues and mitigate risk, utilizing the cross-business, cross-geography councils below: Horizontal Issues Management Teams Environmental Strategies and Sustainability Council Supply Chain Council Standards of Business Conduct Compliance Team Global Privacy Board Stakeholder Groups Groups that affect, and are affected by, HP Customers Shareholders Employees Communities Governments Non-Governmental Organizations Suppliers/Business Partners Ethics Committee HP B u
sine s
s Gr o
u
p
s 11 2005 HP Global Citizenship Report Global citizenship at HP Implementation
To implement the global citizenship strategy, the
Corporate Affairs organization provides leadership
across the company. Governance structures link the
business organizations with the Corporate Affairs team
and are essential to managing the execution of the
strategy on a day-to-day basis, monitoring current trends
and key stakeholders perspectives and escalating issues
to the next level of executive management when needed. For example, our Environmental Strategies and
Sustainability Council is comprised of representatives
from each business unit, each geography and relevant
corporate functions such as supply chain and operations.
The Council applies customer research regarding
environmental attributes into new product planning,
considers marketing techniques related to environmental
performance and works with employees in HP Labs to
understand future technologies and how they can be
made more environmentally sustainable. Similar councils or teams exist for privacy, ethics, and
social and environmental responsibility in HPs supply
chain. These councils/teams establish goals, ensure
integration of the strategy into the running of the
business and measure our progress. Issues management
HP addresses global citizenship issues using a structured
approach (see chart, page 10). Issues are identified
through engagement with various stakeholder groups,
such as customers, employees, business partners,
suppliers, NGOs, communities and governments. HPs
business groups may also raise issues. Issues are then
addressed by the appropriate HP Issues Management
team. Corporate Affairs works with these teams to bring
issues to the attention of the Executive Council, to identify
opportunities and mitigate risk. Measurement
HP measures performance using the balanced scorecard
method, which expands on traditional financial metrics.
The Corporate Affairs balanced scorecard includes
goals and metrics in the following categories: customers
and stakeholders, finance, employee, and operations.
Performance is then tracked against these metrics on a
quarterly basis at the company level. Some of our most
important performance metrics and goals are included
throughout this report. Economic value Time-tested formulas enable analysts and accountants to
arrive independently at similar figures for a companys
financial value. No such formulas exist for measuring a
companys overall economic contribution to society. Thus
the data listed in the HP profile section of this report offer
only part of the story. Other dimensions of HPs economic
impact include: Community investmentHP adds to the capacity of local communities through philanthropic investments,
public policy dialogue and employee volunteerism.
HP employees apply unique skills and interests to help
solve issues facing communities. Job creationJob creation extends beyond the number of people a company directly employs. Studies
document the multiplier effect in local economies
caused by employment at large firms, estimating that
more than two new jobs are created for every job at a
firm such as HP. This includes additional jobs inside HP
as well as service and support jobs in the community. TaxesCompanies help fund essential government services through taxes. In many jurisdictions, HP pays
taxes on its income, payrolls and properties, and on
goods purchased in the course of business. HPs
suppliers, employees and the many businesses that
support the employees in their daily lives pay taxes as
well. These indirect taxes may exceed HPs direct taxes,
thus increasing our economic impact significantly. 12 2005 HP Global Citizenship Report Global citizenship at HP Socially responsible investing HP integrates global citizenship into investor
communications. This work contributes to shareholder
value, builds our brand and leads to increased revenue
and reduced risks. Socially responsible investment (SRI) analysts and non-
governmental organizations (NGOs) are vital to this
process. They serve as proxies for other HP stakeholders,
including customers, investors, employees, and community
members. Socially responsible investors consider the social,
environmental and ethical impacts of a companys
practices and products. SRI-managed assets in the United
States grew from $529 billion in 1997 to $2.15 trillion in
2003 2 , according to the Social Investment Forum. HP continues to engage with SRI firms through direct
discussion, completion of questionnaires and at investor
conferences. HPs performance is evaluated regularly and
meets the criteria of many SRIs, including: Calvert Asset Management Company Citigroup Asset Management Citizens Securities F&C Asset Management (formerly ISIS) Green Century Capital Management MMA Capital Management Morgan Stanley Investment Advisors Morley Fund Management Progressive Investment Management Corporation Trillium Asset Management UBS Global Asset Management Walden Asset Management In 2004, HPs performance was recognized by the
following SRI indices and benchmarks: The Dow Jones Sustainability Index (DJSI) again includes HP in 2004. The DJSI assesses the
sustainability performance of the largest 2,500
companies globally and selects the top 10%. Because
DJSI standards are increasingly demanding, remaining
on the list requires continuous improvement. HP ranks
as the leading technology hardware and equipment
company. The FTSE4Good Index lists HP on all four of its market series (U.S., Global, UK and Europe). FTSE, a leading
index provider, uses these indices to rate the
performance of companies meeting globally recognized
corporate responsibility standards and to facilitate
investment in those companies. KLD, a leading provider of social research for institutional investors, includes HP in its KLD Select
Social Index and the Domini 400 Social Index. Innovest Strategic Value Advisors, Inc., a leading independent research firm for the SRI community,
ranked HP first of 10 companies in the computer and
peripherals industry for intangible value analysis
reportingincluding governance, human capital
and emerging market issues. HP ranked fifth for
environmental reporting. Core Ratings ranks HP with an A+ for management of investment risks arising from material, environmental,
social, employment and ethical impacts. See the table on the next page for a summary of
HP assessment by a number of SRI organizations. 2 See www.socialinvest.org/areas/research/trends/
sri_trends_report_2003.pdf, page 5. Case study: Engaging with socially responsible investment (SRI) organizations HP values our relationships with SRI organizations. These organizations provide third-party evaluation and
feedback, help educate investors about HPs social and environmental performance, and identify emerging issues. In 2004, HP engaged in discussions with 28 leading U.S. and European SRI firms, including ABN AMRO,
Barclays, Boston Common Asset Management, Citigroup, Domini, F&C Asset Management (formerly ISIS), Green
Century, Henderson Asset Management, HSBC, Innovest, KLD Research & Analytics, State of Connecticut Pension
Fund, State Street Global Advisors, Trillium Asset Management, UBS Asset Management, and Walden Asset
Management. HP plans expanded SRI outreach in 2005. Dialogue will focus on our product recycling, e-inclusion and supply
chain social and environmental responsibility programs and performance. In addition to deepening current
relationships, we will target other groups who track our sector, as well as institutional investors. Stakeholder perspective How is HP doing?
We consider HP a leader among
its peer group, particularly because
of its emphasis on leveraging
sustainability to enhance value
for the company, its myriad
stakeholders and, importantly,
HP shareholders. The companys
initiatives in a variety of areas
development of stakeholder capital,
commercialization of sustainable
products and improvement of
environmental performanceare all
characterized by an understanding
that pursuing leadership in these
areas can translate into enhanced
competitiveness and financial
value. How would you like to see
HP improve in this area?
Producer responsibility. e-Inclusion.
Supply chain risks. These are just
a few of the business-critical
sustainability issues that the entire
Computers & Peripherals sector
is grappling with. While HP is
leading the way towards early-
stage solutions to these problems,
the ultimate solutions will most
certainly require some quantum
leaps forward from current thinking.
HPs corporate spirit of innovation
should be harnessed to help find
these next-generation solutions
not only because its the right
thing to do but also because its
shareholders will benefit. Devin Crago
Senior Research Analyst
Innovest Strategic Value Advisors 13 2005 HP Global Citizenship Report Global citizenship at HP Name Carbon Disclosure Project (global) CoreRatings (Europe) Corporate Knights & Innovest
Sustainable 100 companies (global) Dow Jones Sustainability Index
(DJSI) (global) F&C Asset Management
(formerly ISIS) (Europe) FTSE Group (Global) GES Investment Services (Europe) OEKOM Research (Europe) Report on Business (Canada) Reputex (Australia) SVTC (U.S.) This table summarizes HPs recent performance, according to a number of SRI and other organizations. Published Feb-04 Oct-03 Jan-05 Sep-04 Jan-04 Sep-04 Apr-04 Jan-05 Mar-04 Nov-04 May-04 Measures Greenhouse gas policy &
emissions from the 500
largest companies in the
world Corporate responsibility Global Sustainable 100
companies Economics, social and
environmental responsibility Supply chain management Social & environmental
responsibility Environmental responsibility
and human rights Social & environmental
responsibility Corporate responsibility Corporate responsibility Computer hardware
environmental responsibility HP 2004 Score No score provided A+ HP in top 100 global
sustainable firms HP ranked #1 in technology
hardware & equipment
industry group HP listed as a leader for both
labor standards and
environmental management HP on all FTSE4Good
Indices Environment: A
Human rights: A Overall Score: B
Social: B
Environment: B Overall score: 75/100.
Other scores include:
community & society 69;
corporate governance 71;
customers 63;
employees 77;
environment 83;
human rights 69 AA 54.5/100 Comments HP was reported as having
the most complete
greenhouse gas program
(policy, emission reduction
targets, and reporting) in the
Computer and Peripherals
industry group. Scale A+ to D. HP is the only company from
the Computer and
Peripherals sector. This is second consecutive
year HP is on the DJSI and
#1 in our industry group.
Other companies on index in
technology hardware &
equipment include Canon,
Fujitsu, Ricoh, Dell. Labor standards: leaders
were HP and Nokia;
Environmental management:
leaders were Dell, HP,
Nokia, Sharp. This is second consecutive
year HP is on the
FTSE4Good Indices. Rated HP highly in
environment and human
rights. HP received an A
in environment and an A
in human rights. A is the
highest grade, C is the
lowest. HP rated 4th of 13
companies in IT/
Computer Sector. HP Canada ranked #1 in
Technology sector. HP Australia received an
AA rating (scale AAAD)
in the RepuTex 2004 Social
Responsibility Ratings,
placing HP in the top 10 for
best practices in corporate
governance, workplace
practices, environmental
and social impact. HP had the highest score.
Even though HP was
number 1, SVTC remarked
we have a long way to go. Governance and ethics A company cannot be a good
global citizen without running
its daily business responsibly.
This involves a commitment to
corporate governance and
business ethics, and putting
that commitment into practice. 14 2005 HP Global Citizenship Report Governance and ethics Corporate governance Oversight and management Board of Directors
The Boards role is to govern HP to benefit its
shareowners. HP also considers other stakeholders,
including employees, customers, suppliers and the
communities in which we work and live. Strong corporate
governance and ethics are essential to business success. Our corporate governance standards as well as our ethics
and compliance programs are set at the highest level,
starting with the Board of Directors. HPs Board of Directors has ten members, with Patricia
Dunn serving as the Non-executive Chairman of the
Board. Mark Hurd became Chief Executive Officer
and President of HP on April 1, 2005 at which time
he also joined the companys Board of Directors.
Robert P. Wayman, member of the Board since
February 2005, also serves as Chief Financial Officer.
The remaining eight members have no material
relationship with HP under HPs director independence
standards, which incorporate the director independence
standards established by the U.S. Securities & Exchange
Commission and those of the New York Stock Exchange
and NASDAQ, on whose exchanges HPs shares are
traded. Executive sessions of independent directors are held at
least three times per year. Board committees, each led by an independent director,
are responsible for review and oversight of company
strategy and practices. These include: Acquisitions
Committee, Audit Committee, Human Resources and
Compensation Committee, Nominating and Governance
Committee, and Technology Committee. In early 2004, HP established a mechanism for all
stakeholders to communicate directly with the Board using
e-mail (bod@hp.com) if they have a concern they would
like directors to address. Ethics Committee
The Ethics Committee consists of Senior and Executive
Vice Presidents from Human Resources, Legal, Finance,
and Corporate Affairs. It provides regular reports to the
Audit Committee and is charged with overseeing the
development and enforcement of the companys ethical
guidelines, known as the Standards of Business Conduct
(SBC), and reviewing major allegations of violations of
the Standards of Business Conduct. Executive Team
Our executive team consists of 16 company officers. They
include Senior and Executive Vice Presidents from our
business divisions and the heads of Corporate Affairs,
Finance, Global Brand and Communications, HP Labs,
Human Resources and Workforce Development, Investor
Relations, Global Operations and IT, Legal, Global
Marketing, and the Office of Strategy and Technology.
The Executive Team has the responsibility to ensure that
HPs culture of ethics and compliance is encouraged
across the company. Internal Audit
Internal Audit provides regular reports to the Audit
Committee of the Board. Internal Audits primary role is
to assess risks throughout the company and to evaluate,
monitor and improve the effectiveness of controls and
governance processes in support of corporate objectives.
Internal Audit performs financial and operational reviews
across the company and, where appropriate, of third
parties doing business with HP. Audits are conducted in
all regions where HP operates. Aspects of the Standards
of Business Conduct and ethical business practices are
regularly included in the audit process. 15 2005 HP Global Citizenship Report Governance and ethics Awards Australia
AA rating (high) in the RepuTex
Social Responsibility Rating for
2004, placing HP in the top 10. Mexico
HP Mexico received the award
Ethics and Values in the Industry
from the President of Mexico,
Vicente Fox. (Confederation of
Industrial Chambers of the Mexican
United States [CONCAMIN]). United States
Ranked 8th on Business Ethics
magazines list of 100 Best
Corporate Citizens, making the
top 10 list all five years of the lists
publication. 16 2005 HP Global Citizenship Report Governance and ethics Business ethics HP has historically emphasized ethics and
uncompromising integrity, keeping them integral
to the way we conduct business. At HP, promoting an open culture in which employees
feel free to raise concerns without the fear of retaliation is
essential. This open culture is vital to ensuring employees
understand that no one acting on HPs behalf may use
bribes, kickbacks or other corrupt practices in conducting
HPs businesseven if the practice is assumed to be
culturally appropriate. Consistency in implementation will always be a
challenge, given the global scope of our company. In
2004, following earlier work on promoting greater
awareness of the Standards of Business Conduct and
specific ethical business practices, HP provided guidance
tools to employees to enable them to work through various
ethical business decisions. These reflect the different
cultural interpretations of certain terms and values. Standards of Business Conduct Consistent with HPs longstanding values and standards,
all directors, officers and employees are expected
to display the highest standards of ethical behavior.
HPs Standards of Business Conduct guide us in our
actions, behaviors and decisions. The Standards apply
globally and are translated into more than 12 languages.
The Standards were enhanced in early 2003 to reflect
changing perspectives on ethical behavior and modified
slightly in early 2004 to align with changing regulations. Additional policies and guidelines, including, for
example, our Global HR Policies, complement the
Standards of Business Conduct. Implementing our standards Training and resources
Regular ethics training is designed to ensure our
employees understand and comply with our Standards
of Business Conduct. All employees and managers have access to interactive,
web-based training and are required to take business
ethics training classes. Managers are expected to
conduct regular discussions about the Standards of
Business Conduct with their teams, while Vice Presidents
are provided ethical leadership training and materials
to engage in dialogue with staff. In 2004 as well,
HP provided training regarding Sarbanes-Oxley
reporting requirements to management and employees
in relevant roles. Standards of Business Conductkey elements Embodying HP standards. Every member of the HP
community (including directors, executives, managers,
employees and business partners) must adhere to the
highest standards of business ethics and comply with
all applicable laws. Conducting HP business. While working for the best
interests of HP, we must be ethical and lawful in our
dealings with customers, partners, suppliers,
competitors and fellow employees. Serving HP customers. We must deal fairly and
truthfully with our customers. Working with channel partners. We select and
manage channel partners in accordance with the law
and HP channel policies. Relating to our competitors. Our interactions with HP
competitors must be fair and respect the law. Dealing with suppliers. When buying products and
services, we interact with suppliers fairly and in
compliance with applicable laws and HP policies. Avoiding conflicts of interest. Employees must avoid
situations in which their interests conflict with HPs. Handling sensitive information. HP safeguards its
business and technical information, and that of others,
and uses it exclusively for HP business purposes. Safeguarding HP assets. We must use HP assets,
tangible and intangible, only for legitimate business
purposes and protect those assets from loss and
unlawful, improper or unauthorized use. Safeguarding
assets includes behavior regarding expense
recognition, political contributions and use of assets for
personal gain. Respecting HP colleagues and the community. HP is
committed to creating and maintaining a diverse and
inclusive work environment based on respect for the
individual and to being a leading corporate citizen
everywhere we conduct business. 17 2005 HP Global Citizenship Report Governance and ethics HP conducts focus groups and audit surveys with
employees to determine their awareness of ethics
resources. These activities, and analysis of alleged
ethics infractions, help to shape the direction of future
ethics programs. Reporting and seeking guidance
Employees have several mechanisms to raise ethical
concerns. HP encourages use of the Open Door Policy
(see Labor practices), for employees to talk with their
manager or their managers management. Alternatively,
employees can submit concerns to compliance experts
or SBC Liaisons (see the section on Monitoring). There are formal, structured communications channels,
managed by HPs Office of Business Practices, for
employees and other stakeholders to confidentially
and anonymously report potential violations of law,
company policy or the Standards of Business Conduct. These formal vehicles include: Telephone. A confidential 24-hour resource line, called
The GuideLine, is available globally. In the US, contact
1-800-424-2965. E-mail. Corporate.compliance@hp.com Postal mail.
HP Office of Business Practices
PO Box 692015
Houston, TX 77269-2015
United States Additionally, in January 2004, HPs Audit Committee
finalized its policy and procedures for complaints of
questionable accounting, internal accounting controls
and auditing matters, as required by Section 301 of the
Sarbanes-Oxley Act of 2002 and Regulation 10A-3(b)(3)
of the Securities Exchange Act of 1934. If the employee requests, issues submitted via any of these
mechanisms may be addressed directly to the Board. In 2004, 378 separate inquiry and allegation items
were reported through the formal reporting mechanisms
managed by the Office of Business Practices (see
pie chart). All items raised are actively reviewed and
addressed. HP is committed to promptly and properly
investigating all allegations related to SBC violations and
ensuring that they are concluded by taking appropriate
actions. Monitoring
HP leverages a cross-functional team of senior
representatives from the compliance functions, called
the Standards of Business Conduct Compliance Team,
to oversee and monitor investigations of significant
concerns or complaints on an independent and objective
basis. This team focuses on proactive measures to fix
systemic issues that may arise from these investigations.
The team is charged with ensuring that remedial actions
are consistently and appropriately applied across HP,
and provides regular reports to the Ethics Committee
and the Audit Committee. The Standards of Business Conduct Liaisons, specifically
identified senior individuals in each of the business
groups and regions, champion the SBC and provide
another interface to employees on SBC-related issues.
SBC Liaisons help identify and monitor key concerns,
allegations or complaints, and key learning experiences.
They engage directly with senior regional and business
management teams to improve communication,
recommend action plans, and interface with compliance
functions to ensure that localized issues are surfaced and
addressed. 1 Note: these numbers only include inquiries and allegations received through
the Office of Business Practices using the formal reporting mechanisms. Items
raised to other compliance functions or the Board are not included. Total is
less than 100% due to rounding. Items reported to the Office of Business Practices 1 , 2004 Outside activities/
employment 12% Employee relations 15% Discrimination/
harassment 7% Misuse of company
resources 13% Contract compliance 5% Total number of items 378 Customer/supplier
relations 35% Gifts/entertainment 5% Handling sensitive
information 1% Antitrust 3% Other 3% Product environmental impacts Environmental impacts can occur
at every stage of the product life
cycle: from product design, through
manufacturing and transport, to use
by customers and, finally, disposal
at the end of a products life. 18 2005 HP Global Citizenship Report Product environmental impacts 19 As one of the worlds largest IT companies, HPs largest
impact on the environment is through our products. HP
is committed to providing products and services that are
environmentally sound throughout their life cycles. This
chapter describes our efforts in product design,
packaging and recycling. Environmental impacts can occur at every stage of
the product life cycle: from product design, through
manufacturing and transport, to use by customers
and, finally, disposal at the end of a products life. Minimizing these impacts is a complex challenge, as well
as an opportunity. We are applying design expertise to
create innovative products and services with reduced
environmental impact. This aligns with our customers
expectations of high performance, low cost and minimum
environmental impact, and provides HP a potential source
of competitive advantage. For example, materials-efficient
and energy-efficient laptops are replacing desktop PCs
for many customers, and the transition to flat panel
displays helps reduce energy consumption. HP ensures
environmental design does not compromise other product
requirements such as quality, reliability and price. Challenge A key element of HPs global citizenship is to
design products and services that are socially and
environmentally responsible throughout the products
life cycle. We must achieve this while meeting customer
needs and maintaining quality and reliability. Delivering
value on social, environmental and financial dimensions
is challenging for several reasons. Central to this challenge is managing product design
to meet various regulations that affect the design of our
products. These regulations can be inconsistent from one
jurisdiction to another, may not always be clearly defined,
or may not easily accommodate design lead times.
HP actively works with governments, industry partners
and other stakeholders to attempt to harmonize these
regulations and achieve our shared environmental goals
in a manner that is consistent with technological
innovation. Another aspect of this challenge is the need to design
products with materials that will have value and be easily
recycled in the future. This is difficult to predict, and many
materials preferred by customers today are not
economically feasible to recycle, such as painted plastic
bezels and product skins. HP considers multiple recycling
scenarios and incorporates basic design rules that make
product disassembly and recycling easier, such as
reducing the variety of plastics used in products and
minimizing the use of paint and adhesives. We are
engaging the recycling industry to understand and
potentially influence how recycling technologies will
evolve over time for increased customer and
environmental benefit. HP strives to deliver environmentally sound products and
services while recognizing that many customers are not
willing to pay more for such features. A number of the
environmental design features described in this section,
such as some of our packaging innovations, have
resulted in cost savings, while others have increased
costs. We continue to work toward a balance between
environmentally responsible design, customer needs
and cost. 2005 HP Global Citizenship Report Product environmental impacts 20 2005 HP Global Citizenship Report Product environmental impacts Design for environment Our Environmental, Health and Safety Policy commits us
to provide products and services that are environmentally
sound throughout their life cycles. It states that we will
seek to design our products to be safe to use, to
minimize their use of energy and natural resources,
and to enable their end-of-life recycling. We initiate
environmental efforts with innovation during the product
design stage. To meet the objectives of our Environmental, Health and
Safety Policy, HP established its Design for Environment
(DfE) program in 1992, with the following three priorities: Energy efficiencyreduce the energy needed to manufacture and use products Materials innovationreduce the amount of materials used in our products and develop materials that have
less environmental impact and more value at end-of-life Design for recyclabilitydesign equipment that is easier to upgrade and/or recycle HPs Environmental Strategies and Sustainability (ESS)
Council coordinates the implementation of our DfE
strategy. This group includes representatives from each
global business unit and sales region, as well as supply
chain, operations and other corporate functions. HPs DfE initiatives are incorporated into product
development by the Product Stewardship Network that is
integrated into design and development teams to identify,
prioritize and recommend environmental innovations. The
Product Stewardship Network establishes company-wide
environmental design standards to incorporate into new
products. These standards address design requirements
that encompass the entire product life cycle. Global support teams address major initiatives that have
broader implications for HP. Examples of these teams
include the End-of-Life team that addresses product
recycling; the Restricted Materials team that focuses on
requirements for reducing or eliminating restricted
materials from HP products (see Materials restrictions);
and the Product Design Process Improvement team that
evaluates and optimizes current DfE processes. Inkjet printer environmental
innovations, 19891997 The history of HPs inkjet printer
product line illustrates the impact
of innovation on the entire product
life cycle. 1989
Polyvinyl chloride (PVC) removed from all HP inkjet product-
packaging materials. 1994
First multi-function inkjet product developed, designed to use less
power and reduce materials use
by 30%. HP inkjet printing process redesigned to allow quality
printing on recycled paper. 1997
HP inkjet print cartridge recycling program launched in the United
States. Reducing environmental impacts and engaging with stakeholders across the product life cycle Our products have environmental impacts throughout the product life cycle and our programs are designed to improve environmental performance at each stage, from design through end-of-life. Design Design for Environment (DfE) features allow products to meet eco-labels that
demonstrate conformance with international
environmental expectations and green
procurement criteria DfE increases materials efficiency and energy efficiency Recycled content is used, when feasible Design for Recyclability (DfR) features facilitate disassembly and recycling Raw materials Materials reduction and use of recycled materials decrease virgin materials use Reduction in the number of materials used potentially adds value at end-of-life Reduction in product size uses fewer resources Recycled plastics are used in some scanner products Restricted substances are reduced or eliminated Manufacturing Award-winning environmental management at HP inkjet cartridge manufacturing facilities Supplier Code of Conduct ensures suppliers address key HP environmental
requirements including General
Specification for Environment (GSE) DfR features allow for easier product assembly Efficient operations reduce emissions and waste from manufacturing operations Global ISO 14001 certification ensures effective environmental
management processes Communities Customers Employees Investors Legislators/ 21 2005 HP Global Citizenship Report Product environmental impacts Inkjet printer environmental
innovations, 19992004 1999 HP DeskJet 970c became the first inkjet printer on the market to
receive Blue Angel qualification
(see Eco-labels). First HP inkjet printer with two- sided printing capability
developed, reducing paper
consumption. 2001
Award-winning thermoformed clamshell packaging used for
HP inkjet printer products, cutting
waste and reducing costs. 2003
Postage paid return-for-recycling envelopes included with many
new inkjet print cartridges in
the United States and parts of
Europe (see Product end-of-life
alternatives). 2004
Nearly 12 million HP inkjet print cartridges returned and recycled
globally since 1997. Eco-labels Increasingly, customers include environmental criteria in
their purchasing decisions. In 2004, we received more
than $6 billion in requests for quotations (RFQs) that
required information on HPs commitment to social and
environmental responsibilityan increase of 95%
compared to 2003 and 660% compared to 2002. This increase in customer interest has led us to evaluate
the environmental features of our products against
recognized standards for environmental performance.
Eco-labels help customers choose products that meet
or exceed certain criteria that are indicative of positive
environmental performance. HP advocates selective
ecolabels that span multiple jurisdictions, and supports
harmonized, international, voluntary and consensus-
based standards. Eco-labels are intended to facilitate
customer choice, promote competition and encourage
innovation. We believe they should complement existing
standards, be recognized broadly and be self-certifying.
Many HP products carry eco-labels, the most common
of which include: Blue Angel. A German eco-label based on product
design, energy consumption, chemical emissions,
acoustics, recyclability and take-back programs.
More than 30 series of HP printing systems and three
HP PCs are currently qualified by Blue Angel. ENERGY STAR

Comments