Supplier sustainability

Topics: Audit, External auditor, Auditing Pages: 13 (2138 words) Published: November 27, 2013
Supplier Sustainability
Involvement Program
The Philips Supplier Sustainability Involvement Program is built on five pillars: create commitment by setting out our requirements; getting suppliers to understand our requirements and monitoring identified risk suppliers through audits; working with suppliers to resolve issues; and engaging stakeholders.

Building block 1: Create commitment
In 2012 we updated the Philips Supplier sustainability
declaration in accordance with the updated EICC
Code of Conduct (, and supplemented
the Philips appendix with additional requirements on
Freedom of Association and Collective Bargaining.
This is in keeping with our General Business Principles.
In cases where Freedom of Association and Collective
Bargaining are restricted by law, we look to see if there
are other means of ensuring open communication
between the supplier’s management and workers. The
topics covered in the Declaration include labor and
human rights, health and safety, environmental impact,
ethics, and management systems.

Philips maintains a Regulated Substances List (RSL)
for products which include substances banned by
law or by Philips, substances whose use needs to
be monitored due to regulatory requirements, or
substances which Philips chooses to monitor as a
precautionary measure.
Our Supplier Sustainability Declaration and the
Regulated Substances List form part of the Philips
Terms of Reference for suppliers, and all suppliers are
required to comply with these. The Supplier Sustainability
Declaration requires suppliers to cascade the EICC Code
of Conduct down to their next-tier suppliers.

The updated Declaration includes four entirely new
provisions, and 14 updates to existing provisions. The
new provisions relate to responsible sourcing of minerals,
protection of privacy, non-retaliation, and supplier
responsibility to monitor compliance with the code of
conduct at next-tier suppliers. We will roll out the
updated Philips Supplier Sustainability Declaration via
the purchasing contracts signed with suppliers, and
via all training sessions and audits carried out after
January 2013.

February 2013

Supplier Sustainability Involvement Program


Health and Safety

• Freely Chosen Employment

• Occupational Safety

• Child Labor Avoidance

• Emergency Preparedness

• Working Hours

• Occupational Injury and Illness

• Wages and Benefits

• Industrial Hygiene

• Humane Treatment

• Physically Demanding Work

• Non-Discrimination

• Machine Safeguarding

• Freedom of Association

• Sanitation, Food, and Housing



• Environmental

• Business Integrity

Permits and Reporting

• No Improper Advantage

• Pollution Prevention and

• Disclosure of Information

Resource Reduction
• Hazardous Substances
• Wastewater and Solid Waste

• Intellectual Property
• Fair Business, Advertising

and Competition

• Air Emissions

• Protection of Identity

• Product Content Restrictions

• Responsible Sourcing of

Building block 2: Building understanding
During 2012 we extended our capacity-building initiatives to help raise awareness among suppliers and improve supplier
practices. We organized classroom training sessions, sent
Philips sustainability experts on regular visits to suppliers to provide on-site consultancy and training, and we invited
suppliers to participate in training sessions organized by the EICC. In China and India we held dedicated training sessions about the EICC Code of Conduct, as well as training
sessions on fire safety, electrical and machine safety,
chemicals management, and industrial hygiene. These
training sessions were attended by more than 380
representatives of existing and potential suppliers, as well as by suppliers of recent acquisitions. In Shenzhen, China, we
also hosted a Health and Safety training session that was
developed as a joint effort...
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