As a global leading provider of information and communications technology (ICT) infrastructure and smart devices, Huawei adheres to the UN Guiding Principles on Business and Human Rights (UNGP) and attaches great importance to the social and environmental impact of global procurement and global supply chain. Through cooperation with our customers and suppliers, we take effective actions to advance global supply chain sustainability.
Huawei emphasizes CSR as responsible products and services (RPS) and responsible business conduct (RBC) and integrates CSR into value chain activities to enhance cost leadership and differentiation competitiveness through CSR innovation. Huawei also emphasizes CSR as the integral part of broad quality and integrates CSR into the quality first strategy, and drives suppliers to improve CSR standard through “better price for better quality”. Huawei has integrated CSR into global procurement process including material qualification, supplier qualification, selection, evaluation, performance management and procurement fulfillment. Huawei has developed procurement CSR management system based on the OECD Due Diligence Guidance for Responsible Business Conduct and IPC-1401 CSR management system standard, and will benchmark with best practice regularly.
As the bottom line of business cooperation and integral part of procurement agreement, Huawei requires suppliers to comply with all applicable laws and regulations. Huawei encourages supplier diversity and encourages suppliers to adopt internationally recognized industry standards and continually improve CSR capability. Huawei has developed supplier CSR agreement based on the Responsible Business Alliance (RBA) Code of Conduct, and Joint Audit Cooperation (JAC) supply chain sustainability guidelines which include labor standards, health and safety, environmental protection, business ethics and management system. Huawei requires all suppliers to comply with the CSR agreement and cascade the same requirements to sub-tier suppliers throughout the whole supply chain.
Huawei implements a risk based supply chain due diligence and work closely with suppliers in identifying, preventing, mitigating and accounting for CSR risks and opportunities. For those suppliers with better CSR performance, Huawei will increase procurement volume and offer preferential business opportunities. For those suppliers with poor CSR performance, especially those who violated CSR red lines, Huawei will require them to correct within agreed timeframe and at the same time decrease procurement volume, restrict business opportunities, or in the worst case to terminate business relationship.
Huawei participates in industry collaborations through industry associations, and works with upstream and downstream enterprises to promote CSR standardization and continually enhance CSR standards.
