secure connections
for a smarter world
SAFEGUARDING
AGAINST TRAFFICKED
AND BONDED LABOR
A SUPPLIER’S PERSPECTIVE
a Smarter
world
secure connections
for a smarter world
Energy efficiency, connected devices, security and health. These ar...
company
overview
secure connections
for a smarter world
NXP semiconductors N.V. (NASDAQ: NXPI) creates solutions that enab...
HAMBURG (GER)
NIJMEGEN (NL)MANCHESTER
JILIN
SHANGHAI/SUZHOU
KAOHSIUNG
HONG KONG/GUANGDONG
CABUYAO
SINGAPORE
BANGKOK
SITE N...
secure connections
for a smarter world
the CHALLENGES
CULTURE AND PERCEPTION
USE OF LABOR AGENTS
ABSENCE OF PROPER
LEGISLA...
secure connections
for a smarter world
CULTURE AND
PERCEPTION 
What is unacceptable
to us may seem reasonable
to others
secure connections
for a smarter world
MIGRANT LABOR
USE OF LABOR
AGENTS
Unavoidable in
some countries
Another added level...
secure connections
for a smarter world
AND ENFORCEMENT
THEREOF
ABSENCE OF
PROPER
LEGISLATION
The protection level
of worke...
secure connections
for a smarter world
MANAGING
CUSTOMER
EXPECTATIONS
CUSTOMER
REQUIREMENTS
RISKS OF NOT
ADDRESSING
THE IS...
secure connections
for a smarter world
CUSTOMER
REQUIREMENTS
NXP has over 300 customer
contracts in place that
include req...
secure connections
for a smarter world
ADDRESSING
THE ISSUES
To make social
responsibility really
successful, it is not
ab...
secure connections
for a smarter world
NXP
STANDARDS
Over the last year NXP
has developed a set
of requirements: the
audit...
secure connections
for a smarter world
SUCCESSES
AND
CHALLENGES
MOVING
FORWARD
SATISFIED EMPLOYEES
LABOR AGENTS
COSTS
SUPP...
secure connections
for a smarter world
SATISFIED
EMPLOYEES
As they are free from
their debt bondage
to the labor agents.
T...
secure connections
for a smarter world
LABOR
AGENTS
Challenge will be to
retain labor agents or
finding labor agents
who a...
secure connections
for a smarter world
COSTS
Costs will always
be challenged.
Optimistic about
investments pay off.
Good p...
secure connections
for a smarter world
SUPPLIERS AND
EXTERNAL
MANUFACTURERS
We might get into situations
where suppliers a...
global
coalition
secure connections
for a smarter world
To mobilize the power, resources and thought leadership of the bus...
secure connections
for a smarter world
OUR
COMMITMENT
At NXP we make every effort to ensure that
our working practices are...
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Responsible Electronics 2013: Human Trafficking and Bonded Labor

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Presentations from the EICC conference Responsible Electronics 2013, Oct 1-3 in California. This is one segment from the session Human Trafficking and Bonded Labor, from Robert Rigby-Hall for NXP Semiconductors.

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Responsible Electronics 2013: Human Trafficking and Bonded Labor

  1. 1. secure connections for a smarter world SAFEGUARDING AGAINST TRAFFICKED AND BONDED LABOR A SUPPLIER’S PERSPECTIVE
  2. 2. a Smarter world secure connections for a smarter world Energy efficiency, connected devices, security and health. These are the market megatrends that will focus the world’s attention for years to come. They are the engines of progress that drive technology ever faster in a smarter world. The relentless flow of data and information in this smarter world faces the constant threat of corruption or misuse, whether accidental or intentional. Which is why this smarter world, more than ever, requires more secure connections than ever before. This is the driving force behind NXP.
  3. 3. company overview secure connections for a smarter world NXP semiconductors N.V. (NASDAQ: NXPI) creates solutions that enable secure connections for a smarter world. Building on its expertise in high performance mixed signal electronics, NXP is driving innovation in the automotive, identification and mobile industries, and in application areas including wireless infrastructure, lighting, healthcare, industrial, consumer tech and computing. NXP has operations in more than 25 countries, and posted revenue of $4.36 billion in 2012.
  4. 4. HAMBURG (GER) NIJMEGEN (NL)MANCHESTER JILIN SHANGHAI/SUZHOU KAOHSIUNG HONG KONG/GUANGDONG CABUYAO SINGAPORE BANGKOK SITE NAME IN BLUE = JOINT VENTURE SEREMBAN BACK END FRONT END MANUFACTURING CAPABILITIES secure connections for a smarter world
  5. 5. secure connections for a smarter world the CHALLENGES CULTURE AND PERCEPTION USE OF LABOR AGENTS ABSENCE OF PROPER LEGISLATION
  6. 6. secure connections for a smarter world CULTURE AND PERCEPTION  What is unacceptable to us may seem reasonable to others
  7. 7. secure connections for a smarter world MIGRANT LABOR USE OF LABOR AGENTS Unavoidable in some countries Another added level of complexity Costs pressure driving supply chain
  8. 8. secure connections for a smarter world AND ENFORCEMENT THEREOF ABSENCE OF PROPER LEGISLATION The protection level of workers varies per country Companies may cross those boundaries if risk is minimal Authorities concerned about future investments (attractiveness)
  9. 9. secure connections for a smarter world MANAGING CUSTOMER EXPECTATIONS CUSTOMER REQUIREMENTS RISKS OF NOT ADDRESSING THE ISSUE NXP STANDARDS
  10. 10. secure connections for a smarter world CUSTOMER REQUIREMENTS NXP has over 300 customer contracts in place that include requirements on social responsibility. Many of these are either EICC based or very close to EICC requirements. Only possibility to manage all these requirements is to have our own internal standard that covers all.
  11. 11. secure connections for a smarter world ADDRESSING THE ISSUES To make social responsibility really successful, it is not about following customer requirements, it’s about being convinced, as a company, that certain standards have to be maintained, and to set your goals beyond simple compliance.
  12. 12. secure connections for a smarter world NXP STANDARDS Over the last year NXP has developed a set of requirements: the auditable standards on social responsibility. These standards have been deployed through training programs in all our sites. Over 500 employees received an extensive training. We now have 37 certified EICC lead auditors, another 15 will follow later this year.
  13. 13. secure connections for a smarter world SUCCESSES AND CHALLENGES MOVING FORWARD SATISFIED EMPLOYEES LABOR AGENTS COSTS SUPPLIERS AND EXTERNAL MANUFACTURERS
  14. 14. secure connections for a smarter world SATISFIED EMPLOYEES As they are free from their debt bondage to the labor agents. This results in lower attrition rates and a more stable and sustainable workforce. Employees are more engaged and feel they are heard and protected by the company.
  15. 15. secure connections for a smarter world LABOR AGENTS Challenge will be to retain labor agents or finding labor agents who are willing to partner with NXP as the agency fees are the main source of income for them. NXP has started a comprehensive audit program of all labor agents to ensure compliance and to mitigate the risk of bonded labor.
  16. 16. secure connections for a smarter world COSTS Costs will always be challenged. Optimistic about investments pay off. Good performance should be recognized.
  17. 17. secure connections for a smarter world SUPPLIERS AND EXTERNAL MANUFACTURERS We might get into situations where suppliers are not willing to follow our standards and we may be dependent on these suppliers as we may have no alternatives available.
  18. 18. global coalition secure connections for a smarter world To mobilize the power, resources and thought leadership of the business community in an effort to end human trafficking, including all forms of forced labor and sex trafficking. gBCAT is a global coalition of corporations committed to eradicating trafficking in supply chains, including forced labor and all sex trafficking, notably child prostitution. gBCAT is a thought leaders’ forum to develop and share best practices for addressing the vulnerability of businesses to human trafficking in their operations. gBCAT companies work together across different sectors and regions, each playing their own part, suited to their sector and comparative competencies.
  19. 19. secure connections for a smarter world OUR COMMITMENT At NXP we make every effort to ensure that our working practices are responsible and sustainable. Our ambition for our worldwide operation is to go beyond compliance and to establish a global benchmark. We foster ethical principles and respect for the environment, people, and our community while we pursue economic prosperity. Sustainability is a part of the way we conduct business, the way we manage our company, and the way we interact with society at large. We commit ourselves to sustainability because we recognize that this is inherent in our drive to create secure connections for a smarter world.

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