The goals in releasing the list are far reaching. First, HP is hoping to increase suppliers' accountability to workers, communities and the environment. Second, HP is hoping the increase in transparency will lead to an increase in collaboration with other IT companies and act as a model for other IT companies to follow.
One of the most important reasons for releasing its suppliers is HP's bottom line. The business case for the HP's supply chain transparency is beyond positive public relations. Working with suppliers to protect the environment and worker safety does help HP's reputation. However, it also creates positive business relationships with suppliers and keeps the supply chain working smoothly. HP also argues that supply chain transparency helps the company be more efficient and decreases costs.
"Each year, as part of HP's annual Global Citizenship Report (GCR), we report publicly on the supply chain SER (Social and Environmental Responsibility) program results," said Judy Glazer, director for HP's Global SER Operations. "This report is critically reviewed by socially responsible investors, non-governmental organizations and other stakeholders. They consistently ask for greater transparency about our suppliers as a mechanism for accelerating the effort to raise standards across the industry. In response, we have decided to publicly release the names of our suppliers."
HP's suppliers list of nearly 100 companies accounts for 95% of their spending on components, manufacturing and components. These suppliers consist of commodity suppliers, contract manufacturers, electronic manufacturing services providers, and original design manufacturers.
Glazer explained: "The expectations we set for suppliers that manufacture HP's parts, components and products, are a key aspect of our social and environmental performance. Beyond product manufacturing, social and environmental impacts also occur during the transport of our products throughout our supply chain. These suppliers are the focus of HP's SC SER Program."
"HP is the first company in the electronic industry to release the list of its top suppliers for materials, manufacturing and assembly," said Rev. David M. Schilling, program director of Global Corporate Accountability, Interfaith Center on Corporate Responsibility (ICCR). "This is an important step in promoting transparency in its supply chain. My hope is that this action will result in HP suppliers taking greater ownership of social and environmental practices that improve the lives of workers on a continuous basis."