Business Benefits to Hewlett-Packard Suppliers from Socially and Environmentally Responsible
(SER) Practices in China
A Case Study
November 2008
By: Sonali Rammohan
Socially and Environmentally Responsible Supply Chains Program
Global Supply Chain Management Forum
Stanford Graduate School of Business

Business Benefits to Hewlett-Packard Suppliers from Socially and
Environmentally Responsible (SER) Practices in China
Executive Summary
In recent years, the electronics industry has made important improvements in social and environmental responsibility (SER) conformance among first-tier suppliers, due in part to the standardization of SER practices set forth in the Electronics Industry Code of
Conduct (EICC). Hewlett-Packard (HP), the first company in the industry to implement a Supplier
Code of Conduct, has taken a comprehensive approach
Delta Electronics
Delta Electronics by educating suppliers on how to achieve compliance, conducting individual audits and third-party joint audits, and emphasizing continuous improvement. This approach is being disseminated now to sub-tier suppliers, which should improve standards throughout
HP’s supply chain. What should motivate suppliers to achieve full SER compliance? Are there business benefits to meeting and exceeding minimum standards? This paper explores the business case for SER by looking at the operations of three HP suppliers with significant operations in China — Flextronics, AU
Optronics (AUO), and Delta Electronics.
We conducted research with suppliers through in-person meetings, phone calls, email, document review, and factory visits. All three suppliers are focused on achieving full SER conformance, and two of them,
Flextronics and AUO, have found that certain SER activities have generated business benefits. In particular, improving health and safety practices through better training,