Corporate Social Responsibility at HP


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Case Details:

Case Code : BECG057
Case Length : 19 Pages
Period : 1996-2005
Pub. Date : 2006
Teaching Note :Not Available
Organization : HP
Industry : Electronics - Hardware
Countries : US

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Please note:

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Excerpts Contd...

Materials Innovation

HP sought to reduce the harmful environmental impact of its products by reducing the number of materials; reducing the toxic materials in products and also through product innovations. For instance, one of HP's products All-in-One (AIO) combined a printer, a scanner, a copier and a fax machine into one single unit. This helped the company to reduce the number of materials used in these products by 40%, as some of the components in the individual products were the same...

Design for Recyclability

Since the early 2000s, HP began to design products that could be easily recycled in the future. For instance, HP designed products in such a manner that most components could be removed and separated. Components were molded in such a way that they could be snapped in together doing away with the need for adhesives. Component parts were marked so as to enable identification and separation at the time of recycling. Molded-in colors and finishes were used instead of paints, coatings or plating. As an example, it was earlier a problem to recycle cartridge parts due to the use of an adhesive, which formed a very strong bond between the component parts. By designing snap-in parts, HP increased the recyclability of the cartridges by as much as 25%...

Extending CSR to the Suppliers

HP had a global network of over 7000 suppliers. In 2004, it purchased product material and transportation services worth US$ 52 billion from its suppliers. However, out of these 7000 suppliers, HP purchased about 99% of all its supplies from around 700 suppliers.

Hence, these suppliers were the focus of the company's Supply Chain Social and Environment Responsibility Program (SER) (Refer Table I for HP's SER Policy). The suppliers were required to follow the guidelines laid out in the EICC (Refer Exhibit VII for a brief note on the EICC). In 2003, HP introduced training programs for its managers who interacted with the suppliers. This was done so that the managers could raise awareness of the company's SER program among suppliers, and encourage adherence to the company's policies. HP conducted supplier assessments and audits to understand and gauge the performance of the suppliers. The first step in the auditing process was an annual self-assessment by the supplier...

Exhibits

Exhibit I: HP'S Global Citizenship Framework
Exhibit II: HP'S Segmentwise Revenues and Profits
Exhibit III: HP'S Product Leadership Position (2004)
Exhibit IV: HP e-Inclusion Projects Around the World
Exhibit V: HP'S Education Projects (2004)
EXHIBIT VI: HP Worldwide Donations By Category, Region and Type (2004)
EXHIBIT VII: A Note on the Electronics Industry Code of Conduct (EICC)


 

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