Here are the key steps to engage workers using Labor Link: 1. Define the purpose of the survey and specific questions to ask workers. 2. Identify the factory/farm sites and number of targeted workers. 3. Obtain buy-in from local management to survey employees. 4. Determine the primary languages needed to reach all workers. 5. Set a timeframe to administer the full survey cycle. 6. Consider incentives to motivate high worker response rates. 7. Optionally, include educational content in SMS messages. 8. Agree on the reporting format and frequency of data analysis updates. 9. Analyze responses to draw meaningful conclusions about working conditions. 10.

1. HP 2011 Supply Chain
Social & Environmental
Responsibility
© Copyright 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.

2. Promoting responsible
practices and helping our
suppliers improve social and
environmental performance
HP supply chain SER firsts
2002 First IT company to develop and implement a supplier SER code
2004 One of the first IT manufacturers to perform on-site supplier SER audits
2004 Founding member of the Electronic Industry Citizenship Coalition (EICC)
2007 First electronics company to publish a list of our suppliers
2008 First major IT company to publish its aggregated supply chain greenhouse gas (GHG) emissions
2 © Copyright 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.

3. SC SER Milestones
2000 HP’s supply chain SER program launched
2004 HP’s first supplier audit performed
2005 HP's first supplier SER forum held in China
2006 Capability building program launched
2007 First capability building effort to directly train supplier employees
2008 Comprehensive list of HP suppliers disclosed
2009 Conflict minerals program launched
2010 First joint Validated Audit Process (VAP) audits performed
2011 First HP nonproduction supplier audit performed
3 © Copyright 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.

4. Our approach
Four-phase supplier management system
4 © Copyright 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.

5. Our approach
Risk-based approach to supply chain SER
5 © Copyright 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.

6. Global audits
760 supplier site audits performed, 2005-2011
6 © Copyright 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.

7. Supplier audit performance
Nonconformances reduced by section of HP’s EICC Code, 2005-2011
7 © Copyright 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.

8. Collaboration within our industry and across others
8 © Copyright 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.

9. Capability building
HP works with suppliers to deliver substantial and lasting SER performance
improvements on a broad range of issues
Since 2006, HP has:
• Carried out 19 programs in 9 countries on topics such as antidiscrimination, energy
efficiency, labor rights, and women’s health
• Engaged about 60% of production suppliers (by spend)
• Impacted approximately 2,500 managers and 136,000 workers
• Trained about 150 second-tier suppliers
• Confirmed performance improvements by suppliers engaging in capability building
programs, as verified by audits
9 © Copyright 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.

10. Health Enables Return (HER) project
Addresses the general and reproductive health needs of women
10 © Copyright 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.

11. Worker Management Communications
Helps workers better understand their labor rights and how they can raise grievances
about their working environment
11 © Copyright 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.

12. Moving forward
We are proud of our progress to date, but our work is ongoing
• We continually seek innovative ways to extend the impact of our efforts
• Auditing and capability building will remain central to our approach, but we will continue to
innovate beyond traditional programs to effect lasting change
• We plan to extend our engagement with multi-stakeholder organizations to improve supplier
management systems and worker-manager dialogue
• We expect suppliers to provide increasing levels of transparency
We strive to make our program even more effective in pursuit of our values:
to protect workers’ rights and dignity, to ensure strong health and safety standards,
to reduce environmental impacts, and to uphold the highest standards of business ethics
12 © Copyright 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.

13. Thank you
© Copyright 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.

14. Supply Chain Environmental
Sustainability Scorecard

15. Scorecard Objectives
1. Enhance supply chain collaboration
2. Improve key environmental indicators
3. Encourage the sharing of ideas and capabilities
to deliver more sustainable products and
services to consumers

16. • Show same Filled In Scorecard page but
with a couple NA Measures highlighted

17. Technology Enabled Supply Chain Transparency
Todd Stark, President

18. Global Mobile Penetration 2006
Mobile phone ownership has doubled since
Now more than 6 billion mobile subscriptions globally

19. Direct Communication with Workers
• Spread of mobile
technology means
workers now have
phones
• Enables true two-
way communication

20. Labor Link makes communicating with workers:
Reliable, Affordable, Scalable
SMS Data
IVR Analysis
Step 1: Step 2: Step 3:
Workers place a free phone call. Responses are captured by Information is visualized on a web-
They answer questions using a central server. Data is based interface. Users access the data
their keypad. aggregated and analyzed. from a personal computer.
Collection Analysis Visualization

21. Using LaborLabor Link to engage workers and monitor
Our partners use
Link
their working conditions between audits

22. Business Partner Goals of Labor Link
Increase Retention / • Surveying worker needs and job
Reduce Absenteeism satisfaction
• Sending SMS alerts on worker incentive
Boost Productivity programs, holidays and benefits
• Sending SMS alerts on best practices and
Increase Quality recognizing star performers
• Automating and centralizing the collection of
Satisfy Customers worker data

23. Case Study: Factory
Eileen Fisher is using Labor Link to deliver two
surveys in India that measure…
• Recruitment; worker-mngmt
Working comms; labor standards
awareness; training; job
Conditions satisfaction
• Questions on community needs
• Progress Out of Poverty Index
Livelihoods developed by Grameen Foundation
• Comparison to 44 countries
• 50% response rate on initial surveys
• Deployed in 4 languages

25. Case Study: Community
Level Works is using Labor Link to deliver a
community-based survey in India that measures…
Wages & • Heath & Social Security benefits
• Awareness of minimum wage
Benefits • Number of rupees earned per day
• “How did you find your job?”
Recruitment & • “Why did you choose this job?”
Turnover • “Why did you leave your last job?”
• Targeted 1,000 workers in Tirupur
• 80% response rate on initial survey
• Deployed in 2 languages

26. Worker Turnover
26

27. Case Study: Farm
Fair Trade USA used Labor Link to measure the
impact of a USAID-funded coffee sustainability
program in Brazil on two topics…
• Use of pesticides, herbicides, and
Agrochemical chemical fertilizers
Use • Compared practices in 2012 vs.
2009
Sustainability • Nitrogen fixing and soil analysis -
trusted sources of agronomic
Practices information
• 3,000 farmers targeted in 16 cooperatives
• Deployed in Portuguese

28. 10 Clear Steps to Engagement
1. Survey Purpose & Questions
2. Survey Sites & Number of Targeted Workers
3. Supplier Engagement
4. Languages Required
5. Timeframe for Survey
6. Incentives to Motivate Workers
7. Educational / Informational Content (Optional)
8. Reporting Format & Frequency
9. Conclusions from Data Analysis
10. How to Use Data to Inform Decision-Making

29. Implementation Process is Collaborative
Discussing worker needs and Labor Link posters for the
survey design factory floor
Workers receive a
Then place a free
card with survey
call with their
instructions
mobile phone

30. Data Reporting & Analysis is Tailored On Line

31. Sectors Using Labor Link Mobile Surveys 6. If you have a
problem, is
there someone
other than your
supervisor to
whom you can
Agriculture speak?
Apparel
Artisan
Electronics

32. Additional Opportunities Underway 6. If you have a
problem, is
there someone
other than your
supervisor to
whom you can
speak?
Sporting Goods
Beverages
Toys
Department Stores
- Hardlines

33. Where is Labor Link Operating?
Currently operational in Brazil, China, India and Peru.
Expanding to additional countries like Mexico, Sri Lanka, & Indonesia.